Lobbying
Welcome Back, Now Get To Work On Trade Policy
     When Congress returned from the holiday break this week, lawmakers were greeted with 3,000 e-mails from people who attended the annual Consumer Electronics Show. The letters are part of a big push by the Consumer Electronics Association to educate lawmakers and the public about the connection between free trade and American jobs. But Sage Chandler, who handles trade issues for CEA, admits the industry might need to use some new high-tech speakers to get heard above anti-global elements in Congress. In an election year, Chandler said a story of someone losing a job is compelling. But no one typically writes a lawmaker when they make an international sale and says thanks for keeping markets open. "It is politics of fear," said Ralph Hellman, a lobbyist for the Information Technology Industry Council. "There are elements of both parties that want to be able to point to someone hurting America's prosperity."

On The Hill
Speculation Grows Over Berman's Future On Judiciary
     Speculation is growing about who will lead the House Judiciary subcommittee that oversees copyright and patent law, technology, and the U.S. court system if its chairman, Howard Berman of California, leaves to preside over the House Foreign Affairs Committee. Foreign Affairs Chairman Tom Lantos, D-Calif., announced this month that he will not seek re-election after being diagnosed with cancer. Berman is the next Democrat in line and has expressed interest in the post. On Berman's watch, the Judiciary Courts, the Internet and Intellectual Property Subcommittee has been focused on patent reform, international piracy and IP protection, and music royalties, among other issues. Copyright Alliance Executive Director Patrick Ross said Berman has been "a superb chairman." If he leaves the post, Virginia Democrat Rick Boucher -- who has routinely infuriated the content community -- would be next in line for the chairmanship. Copyright reform advocates are gleeful at the prospect of having Boucher at the helm.

Courts
High Court Blocks Investor Suits Against Third Parties
     The Supreme Court decided that fraud claims are not permitted against third parties that did not directly mislead investors but were business partners with those who did. Stoneridge Investment v. Scientific Atlanta involved allegations that Motorola and Scientific Atlanta, makers of cable television set-top boxes, engaged in sham transactions that inflated Charter Communications' revenue. The vote was 5-3; Justice Stephen Breyer, who reportedly owns stock in Cisco Systems, Scientific Atlanta's parent company, abstained. Experts have said the ruling could help decide the fate of a multibillion-dollar lawsuit brought by investors in the Enron energy firm, which collapsed in 2001. Parties in that action are awaiting a decision from the high court about hearing the case. Stephen Shapiro, who argued the case on Motorola and Scientific-Atlanta's behalf, said the Stoneridge decision will "likely be the end of Enron [litigation]." The court also heard arguments in a case over "patent exhaustion."

Spectrum
The Bidding Roster Is Set For Airwaves Auction
     This month's government auction of spectrum will include bids from giants of the cable, Internet and telecommunications industries. In all, 214 companies will vie for 1,099 licenses covering 62 megahertz in the 700-MHz band to offer wireless, high-speed Internet service, according to FCC data. Alltel, AT&T Mobility, Google, Qualcomm and Verizon Wireless are cleared to participate, along with EchoStar Communications, which will bid under the moniker Frontier. Cable industry participants include Advance/Newhouse, Cablevision, Cox Wireless and Vulcan Spectrum. The frequencies are considered to have exceptional propagation characteristics for covering long distances and penetrating obstacles, such as walls and foliage. The auction had been expected to raise up to $20 billion for the U.S. treasury. But some observers are now lowering estimates to between $10 billion and $15 billion after last week's collapse of Frontline Wireless, which was a startup backed by Silicon Valley investors and venture capitalists.

Telecom
FCC Members Debate Role Of Private Equity Firms
     The impact of television, radio and telecommunications properties shifting from public to private ownership has emerged as another point of contention between Republicans and Democrats at the FCC. "There's no particular problems that have arisen as they relate to private equity versus other kinds of private and public company ownership of both media and telecom company assets," Republican Chairman Kevin Martin told reporters. He said he sees no reason for the agency to devote extra resources to examining these structures. But Michael Copps, one of two Democrats at the five-member agency, said he is worried that too many media outlets are moving beyond the FCC's regulatory authority as private equity firms increasingly buy them. "Some of these deals may be good. Some of them may be bad. We don't know," Copps said. If the economy continues to slide, he warned that some firms may begin dumping media properties to cut their losses.

Crime
MySpace, Prosecutors Draft Guide For Online Safety
     The social-networking firm MySpace and attorneys general from 49 states and the District of Columbia issued guidelines for keeping kids safe on the Internet. The recommendations call on all online social networks to be able to scan images and video uploaded to their servers and to ensure that the profiles of young teenagers are not publicly available. Site-design principles include steps that MySpace already has taken and ones the News Corp.-owned company soon will implement. MySpace makes profiles of 14- and 15-year-old users private and will up the age to 17, its chief security officer said. MySpace will continue to delete registered sex offenders from its virtual community and will strengthen the technology that enforces the minimum age of 14. A handful of attorneys general announced the formation of a MySpace-led task force that will explore "all new technologies that can help make users more safe and secure."

Security
Chertoff Says New Border Rules Will Go Forward
     Homeland Security Secretary Michael Chertoff said new border-crossing requirements will take effect at the end of the month, despite opposition from Congress and concerns from state officials that commerce and tourism will be disrupted. Chertoff said the department plans to begin phasing in new requirements under the so-called Western Hemisphere Travel Initiative. "On Jan. 31 of this year, we'll be making some changes at the land border," Chertoff told a border-security advisory panel. The rules will apply to travelers at land crossings from Canada, Mexico and the Caribbean. Border inspectors no will longer accept oral declarations of citizenship. Chertoff said the department also will begin preparations to limit the types of documents that can be used to prove citizenship. Border inspectors currently accept about 8,000 different documents, many in the form of different birth certificates. Another Homeland Security, meanwhile, defended new rules on standardized driver's licenses.