Intellectual Property Patent Debate Opens With Passion On Both Sides by Andrew Noyes      House floor debate on a bipartisan bill that would overhaul the U.S. patent system was passionate Friday, as lawmakers attempted to inject changes to appease critics on Capitol Hill and in industry. A final vote had not occurred by press time.      Sponsors retooled portions of the bill, H.R. 1908, after extensive input from stakeholders from the technology, pharmaceutical, manufacturing, higher education and other communities.      California Democrat Howard Berman, who chairs the House Judiciary Courts, the Internet and Intellectual Property Subcommittee, said he and his allies are confident that the changes have strengthened the bill and addressed the most pressing issues in patent overhaul.      "The moment is right to move this forward," Berman said on the floor, adding that "serious flaws" in the system have to be fixed to advance American innovation. "We don't claim the bill is perfect, [but] this is one step in the process," he said.      The legislation "favors no industry, no person, no organization and no interest group," Berman said, but some people disagree. Pharmaceutical and biotechnology companies claim the changes would weaken investment in their industry, and others argue that obtaining and defending patents could be made more difficult.      The subcommittee's top Republican, Lamar Smith of Texas, said hostility toward the bill is "mostly a resistance to change, any change." The bill has not been rushed, he said, noting that his panel has heard from more than 40 witnesses in 10 hearings spanning three years.      But Dana Rohrabacher, R-Calif., slammed the bill, calling it "shameful" and "anti-inventor." He argued that the measure would make American creations vulnerable to foreign copycats because it would require that patent applications be published after 18 months regardless of whether the patents have been granted.      Fellow California Republican David Dreier commented that "there is bipartisan support for this bill, but there is also bipartisan opposition." While he intends to vote for the measure, Dreier said lawmakers "must be careful that we don't pick winners and losers in our patent system."      A handful of members were angry with the House Rules Committee's decision to allow debate on only a few amendments. Maine Democrat Michael Michaud also said a multi-pronged "manager's amendment" that the committee approved for floor debate would worsen the bill, particularly with respect to how damages are awarded in patent lawsuits.      Texas Republican Louie Gohmert said the proceeding "isn't fair, it's not good, it's not right and it's not timely to take this up without proper discourse." Mario Diaz-Balart, R-Fla., added that the restrictive rule is an indication that "the majority is not living up to its promises" of transparency and open dialogue.      Former House Small Business Committee Chairman Don Manzullo, R-Ill., said the way the bill made it to the floor is "a disgrace." He urged members -- even those who "lean toward this bill" -- to vote against it "as a matter of free speech."      "The American people are entitled to more debate," he said.

Education Education Bill Takes Shape, But Obstacles Remain by Aliya Sternstein      With all the talk in Washington about the United States' ability to compete globally, action on science and technology education legislation appears to be a priority this fall.      Late Thursday, the House Education and Labor Committee released final portions of draft legislation to reauthorize a 2002 landmark education act, with a stronger focus on science.      The so-called No Child Left Behind Act emphasizes holding schools and teachers accountable through standardized student assessments in reading and mathematics. The draft bill language would add "science" to reading and math in provisions for performance assessments and standards. Another key -- and controversial -- measure would emphasize the use of instructional software and school networking to improve student achievement.      On Monday, the committee will hold a hearing on the draft bill, which began circulating piecemeal last month.      "The fact that they are soliciting comments on a tight turnaround seems to indicate that they want to move quickly," said Mary Ann Wolf, executive director at the State Educational Technology Directors Association.      Committee spokesman Aaron Albright said he expects final legislation will be introduced in the next couple of weeks.      Democrats on the Senate Health, Education, Labor and Pensions Committee, now tied up with higher education legislation, said on Friday that the committee hopes to introduce a bill by the end of the month.      Sen. Michael Enzi of Wyoming, the top Republican on the HELP Committee, said: "Congress must renew and improve the No Child Left Behind Act this year to ensure that America's students, from elementary school through high school, are developing the STEM [science, technology, engineering and math] expertise to be successful in college and in the workplace."      James Brown, co-chairman of the STEM Education Coalition, said the House committee is following a schedule that House Education and Labor Chairman George Miller, D-Calif., sketched out in July, and recent indications point to the HELP Committee being close to a draft bill.      Brown cited "pretty steady progress" in drafting a bill and said "the process has been cordial and nominally bipartisan and very open up to this point," but challenges remain for this fall.      He added that he was encouraged to see the recently passed competitiveness legislation has had a positive influence on the education debate. Various provisions from the act would be core programs, according to the draft bill, he said.      Tony Streit, senior project director with the Education Development Center, said that based on his dealings with educators and those in the after-school world who are trying to integrate technology, "no one is a fan of [the current law] to date and no one holds out great hopes for significant improvement in the reauthorization."      He said a greater focus on STEM education would be welcome, but the bigger problem is the emphasis on standardized testing. "Even if schools focus more on STEM, will they have the freedom to apply recognized hands-on, experiential learning strategies ... or as in the past, will they have to 'teach to the test' and not really hook young people on STEM?"

Television Court Ruling Impacts Senate Plans On TV Violence by David Hatch      Senate Commerce Committee Chairman Daniel Inouye plans to hold additional hearings this year on television violence, the Hawaii Democrat told Technology Daily on Thursday.      But despite Inouye's interest in the subject, fellow Democrat John (Jay) Rockefeller of West Virginia said in an interview moments earlier that his planned legislation to pave the way for the FCC to regulate excessively violent TV scenes has been sidetracked by a recent court decision. Rockefeller spokesman Steven Broderick said two additional hearings may be held, with at least one focusing on the impact of violent media on children.      The issue has been percolating in Washington since April, when the FCC recommended in a report to Congress that gratuitous violence on broadcast stations can be regulated without abridging the First Amendment. Senate Commerce held a June hearing on the topic that Rockefeller officiated.      But his bill has failed to materialize so far. The measure would expand the FCC's authority to fine broadcasters for running afoul of content guidelines now limited to indecency and profanity.      "It's because of the 2nd Circuit," Rockefeller said, referring to the federal appeals court in New York, which in June overturned FCC penalties on Fox for profanities during live broadcasts. "And so we're going to wait until that's resolved, and then we'll proceed," he added. Some observers think the ruling may have undermined the constitutional underpinnings of his approach.      Rockefeller is seeking to resolve the matter with separate legislation approved by Senate Commerce in July that would reinforce the FCC's authority to impose fines for "fleeting" utterances of expletives. The measure, however, has not been scheduled for floor action.      Rockefeller spokeswoman Wendy Morigi said that in the wake of the court ruling, her boss instructed staff to "look at that bill very closely" to make sure that it's "as strong it could be." She added, "Legislation takes time, and I wouldn't call it delayed."      Morigi said Rockefeller does not need a reversal of the court decision to proceed. "That's not plausible," she said. "He's continuing to work on the bill, and when he's ready to introduce the bill, he'll introduce it," she said.      Rockefeller, meanwhile, emphasized that a report issued Wednesday by the Parents Television Council indicates that the problem of televised filth and gore is growing "worse and worse and worse exponentially." The document, titled, "The Alarming Family Hour," concludes that children watching TV during prime-time view profane, sexually explicit or violent content once every 3.5 minutes.      On Sept. 11, a Philadelphia appeals court will hear oral arguments of CBS's appeal of FCC fines levied over the infamous Super Bowl "wardrobe malfunction" involving singer Janet Jackson.

Antitrust What The Experts Say About A Satellite Radio Merger by Andrew Noyes      The Department of Justice could rule on the pending merger between satellite radio giants Sirius and XM sometime in the next 30 to 60 days, but analysts believe the agency's approval of the estimated $13 billion deal is still a toss-up.      A report released earlier this week from RBC Capital Markets said that while FCC timing "is likely to lag DOJ resolution, we think probability of approval also exceeds 50 percent" and could occur before the end of the year.      The firms have complied with Justice's request for additional information, which typically starts a 30-day clock that culminates in a final decision, analyst David Bank wrote. Although the agency can slow the process, "odds don't favor DOJ pushing for prolonged extension," he said.      Justice has "reasonable room" to rule that the merged entity competes in a broader audio market that includes MP3 players, cellular telephones, Internet radio and other devices, which Sirius and XM have argued from the start, sources told RBC.      Stifel Nicolaus analysts also weighed in, saying they do not believe Justice officials "have engaged in the kinds of substantive discussions on the economic analysis that would indicate ... their leanings in this matter." That debate should occur later this month, but it may be mid- to late October before the agency develops its conclusion, they said.      The FCC is unlikely to issue a conflicting ruling, RBC's Bank wrote. Final deliberations likely will focus on enforcing self-imposed merger conditions -- namely a per-channel programming promise that the parties made should the FCC give its blessing.      Some policy watchers have indicated that merger approval is less likely because of their read of the filings in the FCC proceeding on a possible rule or policy change, but Stifel analysts disagree. "Those filings don't go to the core decision at the DOJ, which we believe will ultimately decide the matter," they wrote.      Rep. Rick Boucher, who frequently comments on high-tech issues, became the latest lawmaker to publicly back the merger. In a Tuesday letter to FCC Chairman Kevin Martin, the Virginia Democrat said he believes the move would "lead to significant pro-consumer benefits."      Former FCC Chairman Mark Fowler also endorsed the merger in a New York Sun opinion piece Wednesday. If the two satellite radio companies need to combine to be more effective, "the government should not stand in the way," he said.      Dennis Wharton, a spokesman for the National Association of Broadcasters, which opposes the merger, pointed to Fowler's deregulatory bent: "Our only surprise is that he didn't endorse Comcast being allowed to buy every cable TV company, DirecTV being allowed to buy EchoStar, and Google being allowed to buy Yahoo, Apple and MySpace."      The latest merger resistance was expressed last week in a letter written by Michael Barrera, president of the U.S. Hispanic Chamber of Commerce, to Martin and Assistant Attorney General Thomas Barnett. The Black Leadership Forum, an alliance of civil rights and civic organizations, also recently slammed the proposed union.

Television California City Sues Time Warner Over Cable Service by Michael Martinez      A California city has accused one of the largest cable companies in the United States of operating a cable service without a franchise.      The city of Carlsbad, a suburb of San Diego, sued Time Warner Cable in U.S. district court last month. The city claims that Time Warner has been unlawfully providing cable service there because its franchise is expired in November 2006.      The spat began when Time Warner took over the existing franchise for Adelphia Communications last year. City officials have argued that the deal expired late last year but that Time Warner has continued its business anyway.      Under a law signed by Gov. Arnold Schwarzenegger last year, cable companies in California will be allowed to abrogate their existing contracts with localities in favor of new statewide deals beginning in January. The law is designed to speed the entry of telephone companies into the state's television market.      Time Warner has asserted that the city should have to extend its expired deal until next January, when it is eligible to seek a statewide franchise. The city said in its lawsuit that an extension is not mandated by the law and that Time Warner was unwilling to follow the formal renewal process for the franchise after the law was passed in 2006.      California's cable industry initially opposed the statewide franchising proposal. It withdrew that opposition after the abrogation provision was added to it.      "The city is not required under the Public Utilities Code to extend the now-expired franchise until [January 2008]," according to the complaint. "That section of [the law] authorizes the city to extend a franchise but does not mandate such an extension. As such, [Time Warner] is operating a cable system in the city without a franchise."      Carlsbad wants Time Warner to pay "reasonable compensation" or damages to the city equal to the franchising revenues it was supposed to receive after the deal expired. It also wants to be compensated for Time Warner's use of the city's public rights-of-way to run cable wires.      Time Warner has been given until Oct. 10 to respond to the complaint. A company spokesman would not comment in specifics about the lawsuit, but he said Time Warner believes the city's position is frivolous and the firm has ample authority to operate there under state and federal law.

Security Tech Woes May Delay Planned Virtual Border Fence by Chris Strohm      The Bush administration's program for building a virtual border fence will be delayed at least another month due to problems with integrating technology, prompting Homeland Security officials to consider developing a new plan.      Homeland Security contracted Boeing Integrated Defense Systems to develop SBInet, which is supposed to use technology, personnel and infrastructure to control the borders. Boeing's initial contract is for $20 million.      Under the first phase of the contract, Boeing was supposed to develop an integrated system for 28 miles of land in Arizona by June. But the Homeland Security Department has refused to accept Boeing's solution due to ongoing technical glitches.      "I am not going to buy something with U.S. government money unless I'm satisfied it works in the real world," Homeland Security Secretary Michael Chertoff told lawmakers during a hearing Wednesday. "And if it can't be made to work, I'm prepared to go and find something that will be made to work, although I'll obviously be disappointed."      The United States has about 6,000 miles of border. But a new Government Accountability Office report this week found that only 392 miles -- or 6.5 percent -- was under effective control as of March. Chertoff said individual components of Boeing's system worked well, but the system integration was not satisfactory. He said the department has had a series of "frank and candid conversations" with Boeing officials.      "We said, if this is not going to work, if it's too complicated, we're prepared to go back to the drawing board and do something simpler," Chertoff said. "And they assured us that, in fact, it's not too complicated; this is all proven technology."      Chertoff said the department hopes to begin acceptance testing of the system "in about a month." In separate testimony before a Senate committee Thursday, Homeland Security's undersecretary for management, Paul Schneider, said it will take "four to nine weeks" for Boeing to resolve the problems.      Chertoff also said Boeing retooled its ground team and replaced some managers. Boeing would not comment on statements made by Chertoff and deferred all questions regarding the program's delays to the department.      A company spokeswoman confirmed, however, that the program transitioned to a new management team Aug. 1, including getting a new program manager. She said the transition was planned and is part of Boeing's normal business procedures.      She said the new team is part of a larger organization that can tap more engineers and experts across Boeing.

White House Administration Eyes Eased Access For Foreign Visitors by Winter Casey      The Bush administration is working on ways to make it easier for some foreigners to enter the country, the White House said this week.      In addition to promoting free and open markets during discussions this week in Sydney, Australia, the White House appeared interested in making it easier for some foreigners to visit or go to school in the United States.      Deputy National Security Advisor for International Economic Affairs Dan Price said Friday that President Bush discussed with South Korea's President Roh Muh-hyun the possibility of including South Korea in a program that waives visas for people from U.S.-friendly countries. "We're trying to move forward to include South Korea in that program," Price said.      The White House also drew attention this week to a one-year work-and-travel program between the United States and Australia that is scheduled to take effect Oct. 31. The program will enable American and Australian post-secondary students and recent graduates to work and travel in the countries for that amount of time.      Bush spent a good portion of the week in Australia focused on promoting trade and delivered remarks to the Asia-Pacific Economic Cooperation business summit. The administration reiterated its support for a free trade area of the Asia-Pacific region.      Bush was slated to tell the summit Friday that the United States currently has trade agreements in place with "Australia, Singapore, Canada, Mexico and Chile, and recently we concluded free-trade agreements with two more APEC countries: South Korea and Peru. I will work with the United States Congress to secure approval of these new agreements."      "Today, Asia-Pacific Economic Cooperation economies account for nearly half of all international trade," Bush added. "The total trade in goods by APEC countries has grown by 300 percent since 1990."      According to the White House, U.S. trade with Australia increased by 19 percent over the first two years of the agreement between the nations.      While in Australia, Bush signed a new defense trade cooperation treaty to "reduce barriers to the exchange of defense goods, services and information between Australia and the United States, increasing interoperability and providing our forces with the most effective means to counter new threats."      Bush also addressed economic relations with China during a meeting with Australian Prime Minister John Howard. Bush said "we certainly hope that China changes from a saving society to a consuming society. ... What we want is the government to provide more of a safety net so they start buying more U.S. and Australian products."      The president added that U.S. exports to China are up, and that is positive.      On another front, the administration said this week that it wants Russia in the World Trade Organization, as the country has sought since 1994. The United States "is assisting Russia in the multilateral negotiations," Price said in a White House briefing Friday.      And the White House separately said the United States is supporting increasing its use of technologies and an assessment of how the Association of Southeast Asian Nations is integrating the region's technology sectors.

On The Hill Technology As A Tool To Boost Mine, Bridge Safety by Theresa Poulson      Lawmakers this week introduced bills that would support the use of technology to increase public safety in the wake of several deadly accidents over the summer. They were among the new measures filed as members of Congress returned from their August recess.      Rep. Brad Ellsworth, D-Ind., introduced a bill, H.R. 3486, that would provide tax incentives for improving mine safety following the death of six miners in Utah. The incentives would be awarded to companies that purchase equipment that goes beyond current safety requirements, including electronic tracking devices and communications technology that allows miners to remain in contact with individuals above ground.      "Unfortunately, we can never eliminate all mine accidents, but we can take steps to increase successful rescue efforts when accidents happen," Ellsworth said. The National Mining Association supports the legislation.      A second bill, S. 2021, would authorize $50 billion in transportation funding for states to secure and maintain infrastructure. The legislation comes as officials are trying to improve bridge monitoring and repair efforts after an interstate bridge collapse in Minneapolis killed 13 people.      And a third bill aimed at bolstering public safety would create a national database on gang activity for law enforcers to track and share information. The legislation, H.R. 3474, also would expand the Safe Streets Program to provide more support to gang enforcement teams.      "As gang activity spreads across geographic boundaries, local law enforcement officials need a mechanism to easily share gang intelligence with each other," said bill sponsor Jerry McNerney, D-Calif. "As we've all seen lately the way to make a dent in gang activity is to share information and cooperate across all levels of government. ... This database ensures that law enforcement officers at all different agencies will have access to pertinent, current information."      A new telecommunications bill, H.R. 3482, would enable wireless telephone customers to keep their telephone numbers when switching wireless service providers. A similar number portability measure was approved by the Senate Commerce Committee in July.      On the lobbying front, a new bill, S. 2030, would require additional reporting relating to bundled contributions made by people other than registered lobbyists. The measure would require candidates for Congress and the presidency to disclose all of their largest bundlers and how much those contributors raise.      A separate bill, H.R. 3492, would increase the limits on the amount of contributions that may be made to political committees.      In the privacy arena, a new House measure, H.R. 3488, would require mobile telephones containing digital cameras to make sounds when photographs are taken.      And a new resolution, H. Res. 639, would commend the actions of the German government and its cooperation with U.S. agencies in preventing a large-scale terrorist attack. Surveillance of Internet communications played a role in the arrest of three suspects this week.

Today's Feature: Executive Summary Lawmakers who want to overhaul the patent system had a busy week after their month-long August recess ended. Every Friday, read the Executive Summary by K. Daniel Glover.

E-briefs Budget:   The Senate on Thursday passed two spending bills that would provide billions of dollars for information technology upgrades in government agencies. The bill that covers military construction and the Veterans Administration, passed 92-1, would allocate about $109 billion total, roughly $4 billion more than President Bush requested. The bill, H.R. 2642, would provide nearly $2 billion for VA technology systems, an increase of about $645 million over fiscal 2007 spending. The funding would support the transition of electronic medical records from the Defense Department health system to the VA system. The Senate also passed, 81-12, a bill that would fund foreign aid programs. It would allocate about $304 million for the modernization of the State Department's global IT infrastructure in fiscal 2008. Television:   Two top Republicans on Thursday applauded the cable industry's move to launch a $200 million consumer education campaign on the digital television transition. "We've still got more than a year before the change, but it's important to make certain that all television viewers understand the implications when broadcasters switch from the old analog system to digital TV," Reps. Joe Barton of Texas and Fred Upton of Michigan said in a statement. The initiative, announced Thursday by the National Cable and Telecommunications Association, will run through February 2009. Barton and Upton, ranking GOP members of the Energy and Commerce Committee and its Telecommunications and the Internet Subcommittee, continued: "The transition will do everything from sweeping away the fuzz in your TV signal to unleashing a tidal wave of new services. Most importantly, it will clear additional airwaves so police, firefighters and ambulance crews can better talk to each other in an emergency."

President -- John Fox Sullivan, 202-739-8468 Editor in Chief -- Louis Peck, 202-739-8481 Editor -- K. Daniel Glover (bio) Assistant Editor -- Theresa Poulson Senior Writers -- David Hatch (bio), Heather Greenfield (bio), Andrew Noyes (bio) and Aliya Sternstein (bio) Special Correspondent -- Chris Strohm (bio) Staff Writer -- Michael Martinez Senior Business Affairs Manager -- Chris Hamby Business Affairs Associate -- Anne TeBeest Advertising Sales -- Alex Treadway National Journal's Technology Daily is published every weekday, except holidays, by National Journal Group Inc., 600 New Hampshire Avenue, NW, Washington, DC 20037.   ©2006 by National Journal Group Inc. All rights reserved. Reproduction or transmission in any form of this product by any means—from a retrieval service or any other electronic form or from a photocopy—in whole or part without permission is strictly prohibited. National Journal Group makes no representations or warranties with respect to and is not responsible for the content of World Wide Web sites linked to by this publication but not controlled by National Journal Group. Please read the details of our Privacy Policy. Editorial: 202-266-7197 Fax: 202-266-7094 Subscription Inquiries: 202-266-7264 Customer Service: 202-266-7230 or 1-800-207-8001