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Friday, June 22, 2007
Executive Summary
Week Of June 18, 2007
by K. Daniel Glover
Lobbying
Senate Energy Debate Grabs Attention Of Techies
More technology industry groups have identified energy as an issue with an impact on U.S. competitiveness that is worth following. Higher energy prices, the war in Iraq and the 2003 power blackout in New York are among the reasons that CEOs say they are now watching what Congress does about fuel efficiency and boosting alternative energy sources. The Senate passed a measure this week that could require the average car to get nearly 46 miles per gallon and the average light truck to reach 39.2 mpg by 2025. Some tech companies are the innovators of energy-saving technology, while others care about energy costs required to both produce and run their products. TechNet has added energy issues to its lobbying portfolio, and the Council on Competitiveness has plans to release a report next month. Techies also lauded a House committee's approval of a draft bill to increase the energy efficiency of computer servers.
Exports
'Dual Use' Telecom, Software Sales To China Restricted
The U.S. government has issued new licensing requirements that place restrictions on U.S. companies selling telecommunications, radio, software-related equipment and other items to China. The changes, announced by the Commerce Department's Bureau of Industry and Security, are among several significant updates to the policy for exporting "dual use" technologies -- those with both commercial and military uses. The United States also will remove individual licensing requirements for certain authorized customers in China. The rules were in the making for two years. National Foreign Trade Council President Bill Reinsch said in a statement that although the plan "is a significant improvement over the version that was proposed a year ago, it is still defective because it is unilateral and because it will impose a significant liability and compliance burden on companies far larger than BIS estimates without an equivalent improvement in our security."
Trade
Caribbean Nation Seeks $3.4 Billion Over E-Gambling
The Caribbean nation of Antigua and Barbuda announced that it wants $3.4 billion in sanctions from the United States because of its ban on Internet gambling. The request follows a World Trade Organization ruling that the ban violates U.S. commitments to WTO nations. Antigua requested the sanctions on the grounds that the United States has failed to comply with the WTO ruling concerning cross-border gambling and betting services. The Caribbean nation informed the WTO that it plans to ask for the concessions "primarily through the suspension of Antigua's [WTO] obligations in respect of copyrights, trademarks, industrial designs and patents." A spokeswoman from the Office of the U.S. Trade Representative said, "We will continue to work with Antigua and Barbuda to try to find a mutually satisfactory resolution to this dispute."
Intellectual Property
Senate Panel Tweaks But Doesn't Finish Patent Bill
The Senate Judiciary Committee approved minor changes to a bill that would overhaul the U.S. patent system. The tweaks won unanimous approval, but the measure's more controversial issues were taken off the table until a later date. Panel Chairman Patrick Leahy, D-Vt., and ranking Republican Arlen Specter of Pennsylvania were present alongside GOP co-sponsors Orrin Hatch of Utah and John Cornyn of Texas, plus several other Democrats. Republican senators who do not support portions of the measure, S.1145, did not attend. They want to stop any changes that they believe could thwart innovation and increase frivolous litigation, such as post-grant opposition of patents and broad Patent and Trademark Office rulemaking authority. Deliberations are expected to continue next week and perhaps after the congressional recess for July 4.
Security
Chertoff Delays Passport Rules But Not For Long
Homeland Security Secretary Michael Chertoff announced that new document requirements for U.S. citizens and foreigners to enter the United States will be slightly delayed but still take effect next year. Chertoff announced that requirements of the Western Hemisphere Travel Initiative will be delayed at land and sea ports until Jan. 31, 2008, and then fully phased in about six months later. Under a new regulation, travelers will have to present government-issued documents, such as new passports, birth certificates or driver's licenses, beginning Jan. 31. About six months later, entrance will require new government-approved passports or passport-like cards. The move comes as Congress considers delaying the requirements until at least June 2009. Lawmakers say they have lost faith in the ability of the Homeland Security and State departments to orderly implement the rules. Chertoff warned that backers of the longer delay "are gambling with the security of this country."
Security
House GOP's Border Bill Emphasizes Worker Checks
A handful of House Republicans introduced border security legislation in an apparent attempt to get in front of House Democrats on the issue and halt momentum for the Senate's immigration package. The GOP lawmakers argued that the Senate bill would give illegal immigrants a path to citizenship. "It's as logical to give amnesty at the beginning of an immigration reform to stop illegal immigration as it would be to drill a hole in the bottom of a boat to let the water out," one Republican said. The new GOP legislation emphasizes stronger border security and increased enforcement against U.S. employers that hire illegal workers. Government agencies would have to coordinate their databases for verifying people's identities, improve information-sharing practices, and validate identification documents. Also this week, Technology Daily noted the differences between the House and Senate versions of proposed Homeland Security Department spending for fiscal 2008.
Intellectual Property
Web Radio Plans 'Day Of Silence' To Protest Rates
Some webcasters are planning to silence their audio streams Tuesday to protest a planned hike in music royalties that they believe could harm their industry. Santa Monica, Calif.-based KCRW was among the first to embrace the "day of silence." The station will pre-empt its online channels to loop a one-hour special about dangers posed by the Copyright Royalty Board's ruling. The rate hike takes effect July 15. Protestors will trumpet a bill introduced by Rep. Jay Inslee, D-Wash., to reverse the decision. The protest "will give Americans a small taste of what could happen if we don't pass legislation or have the parties negotiate a solution," Inslee said. A spokesman for the royalty collector SoundExchange said "jilting consumers by shutting down their businesses for a day does nothing to change the fact that artists and labels should be fairly paid by webcasters."
Television
DTV Views Of FCC Chairman, Lawmakers Clash
An exchange of letters between congressional Democrats and FCC Chairman Kevin Martin, a Republican, has exposed sharp disagreements over which agency should supervise the digital television transition and how much money should be spent on consumer education. At issue is whether the FCC or the National Telecommunications and Information Administration has the primary role and if the FCC has requested enough money for outreach. In a June 18 correspondence to Reps. John Dingell, D-Mich., and Edward Markey, D-Mass., Martin said Congress tasked NTIA as the lead agency. But Dingell, chairman of the House Energy and Commerce Committee, and Markey, head of its Telecommunications and the Internet Subcommittee, see things differently. "It is the commission that has primary responsibility among federal agencies for the overall digital television transition," they wrote in a letter to the FCC.

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