Labor
Techies 'Disappointed' By Immigration Bill's Demise
     The technology industry is, in a word, "disappointed" with the immigration bill being pulled from the Senate floor this week after supporters failed to get the 60 votes needed to limit debate on the measure. The vote was 46-53. Pamela Passman of Microsoft said the vote "will likely result in the collapse of comprehensive immigration reform that is desperately needed to address the shortage of highly skilled talent." Information Technology Association of America President Phil Bond added: "Our own immigration system is restricting America's ability to compete, to grow and to prosper. Congress must find a way to remove this chokehold" on H-1B visas for skilled foreigners and green cards for workers. Software and Information Industry Association President Ken Wasch also said his group's members are "profoundly disappointed" at the news from the Senate. Arizona, meanwhile, may move to impose its own system to keep businesses from hiring illegal workers.

Lobbying
Blogs Badger And Berate Senators Over Immigration
     Conservative bloggers were as happy about the setback for the Senate immigration bill as techies were disappointed in the development. Bloggers this week unleashed a major campaign against the measure, as they did earlier in the month when the legislation stalled the first time. John Hawkins of Right Wing News asked his readers to contact their own senators and Republican campaign committees to say they would not support any senator for re-election in 2008 who backs what the critics see as amnesty for illegal immigrants. He said there is no such thing as a "good" Republican who supports the legislation. The grassroots lobbying also involved online videos aimed at senators who support the bill. Hot Air produced a video against Sen. Lindsey Graham, R-S.C., that ended with gang members thanking Graham for his help in getting them into America.

Trade
Techies Worry About Impact Of Expired Trade Power
     Many technology industry representatives fear that if Congress lets the Bush administration's trade-negotiating authority expire as scheduled Saturday, it could send the wrong message to countries considering future deals with the United States. The law lets the president submit trade agreements to Congress for up-or-down votes only. Without the authority, supporters said countries will be reluctant to negotiate trade deals that could be modified by Congress. "With no plans in Congress to extend trade-promotion authority before it expires this week, we're concerned that this Saturday could be remembered as Doomsday for anyone hoping to expand America's access to foreign markets," Information Technology Association of America President Phil Bond said in a statement. Also on the trade front this week, lawmakers created the Congressional Services Caucus to focus on the contribution of telecommunications, technology and other parts of the services sector to U.S. competitiveness in the global economy.

Intellectual Property
Royalty Collector Offers New Deal For Webcasters
     SoundExchange, a collector of digital music royalties, offered a compromise to Internet radio providers whose payments to artists and recording labels are slated to increase next month. The proposal coincided with the first congressional hearing on the controversy. Under the deal, a $2,500 cap would be placed on the $500 minimum charge proposed by the Copyright Royalty Board for each streaming station operated by large webcasters like America Online and Yahoo. Many Web sites offer thousands of channels, and critics of the board's March ruling said the compounded fees would put them out of business. Jonathan Potter, executive director of the Digital Media Association, would not comment on the offer because he had not formally received it. The proposal was made after a "Day Of Silence" earlier in the week, in which Internet radio stations stopped streaming to protest the royalty hike.

Budget
House, Senate Appropriators Cool To Health IT Funding
     In the first glimpse of how much federal money may go toward health information technology in fiscal 2008, the House and Senate appear divided on the budget for building a nationwide electronic system that can securely manage medical records. Both the House and Senate Appropriations subcommittees that oversee health IT approved spending bills this month. The Senate bill would provide $71 million, a 15.8 percent increase but 40 percent less than the president's $118 million request. The House proposal was flat at $61 million -- 48 percent less than the requested amount. Some Democrats think privacy protections are not strong enough to support a digitized healthcare system, according to a policy adviser to House subcommittee member Patrick Kennedy, D-R.I., who also co-chairs the House 21st Century Health Care Caucus. Opposition to the Bush administration's e-government projects, meanwhile, has persisted under Democratic control of Congress.

Intellectual Property
Judge Hints At Compromise To Keep Vonage Alive
     A federal appeals judge indicated that a compromise may be needed to prevent the Vonage Internet telephone firm from going out of business due to a legal battle with Verizon Communications. "Shouldn't that be a consideration in framing the injunction?" Judge Timothy Dyk asked during oral arguments in an intellectual property dispute involving the companies. He was referring to an injunction handed down in March by a U.S. district judge in Alexandria, Va., stating that Vonage had infringed on three Verizon patents. "I'm just wondering if there's some middle ground," Dyk said at the Federal Circuit Court of Appeals. He further suggested that the lower court might want to give Vonage time to develop solutions that sidestep the patents. But Richard Taranto, the attorney representing Verizon, responded that an "open deadline" should not be permitted because it would result in "continued harm" for his client.

Antitrust
With Judge Satisfied, Microsoft Awaits A Decision
     The federal judge charged with overseeing Microsoft's 2002 antitrust settlement, as well as lawyers for the Justice Department and state attorneys general involved in the case, seemed largely satisfied with the software company's market concessions to date. U.S. District Judge Colleen Kollar-Kotelly said at a quarterly status conference on the deal that work done between the parties in the last few months has resulted in "a productive report and a productive period." Kollar-Kotelly offered no position on Google's new allegation that Microsoft may have violated the antitrust settlement because its new desktop computer search tool disadvantages Google's similar application. She said she would wait until all briefs are filed on the matter before deciding whether Google could officially intervene in the settlement. In other news, the Supreme Court issued a ruling that some legal experts said could impact American students' ability to speak freely on the Internet.

E-Government
Rep. Miller Starts Interactive Web Campaign On Iraq
     Online social networks have become virtual mouthpieces for candidates this year but have rarely been used by elected officials to follow through on promises once elected -- until now, that is. Californian George Miller, who is chairman of the Democratic Policy Committee, recently received permission from the technology shop at the House to start an Internet "campaign" against the Iraq war using Facebook, video-sharing Web sites, blogs, a video podcast and other new media platforms. The "Ask George" initiative collects all questions submitted to the so-called Web 2.0 sites and tagged with the subject "askgeorge." The keyword lets staffers easily retrieve questions from across the Web universe with one search query. Miller plans to respond weekly, through his video podcast "MillerTV," to questions and comments about what actions the Democrats are taking to end the war.