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Lobbying
Web Entrepreneurs Bring Their Voice To Washington
by Andrew Noyes
Members of Congress soon will have another high-tech trade group competing for their attention. The Internet Commerce Association, which gives a voice to the growing list of entrepreneurs who buy and monetize Web space, is ratcheting up its lobbying efforts.
The organization's founding members include Internet REIT, a Houston-based firm that owns 300,000 Web properties; Sedo.com, a major buyer and seller of Internet addresses; and the domain-name developers Name Administration, Oversee.net and Straat Investments.
Bob Martin, the group's president and CEO of Internet REIT, said the key issues for ICA include making sure domains are recognized as valuable assets, with clear protective rights for owners, and advocating for higher standards for domain-name challenges by trademark holders.
ICA wants to participate in discussions on domain-name pricing, Internet governance and the future role of the Internet Corporation for Assigned Names and Numbers. Martin's group also hopes to help fight "click fraud," a scam where advertisers are wrongly charged for fraudulent clicks on their online ads.
The multibillion-dollar industry that ICA represents "had not had a voice in industry or in Washington before now," Martin said. Lawyer and lobbyist Phil Corwin of Butera and Andrews will be the group's megaphone on Capitol Hill.
Corwin, who lobbied for the domain-name reseller Pool.com during last year's feud over VeriSign's continued control of the .com Internet address, said the total annual value of the sector he is now representing is in the $5 billion to $10 billion range.
"That figure is expected to grow to a great extent over the next decade, particularly as the value of domain names grows," Corwin said. Major advertisers, who utilize ICA member-owned domains, "are just beginning to invest in online ads," he noted.
Since its inception last year, ICA has filed comments on ICANN's proposals for running domain suffixes like .info, .biz and .org. The group also supported ICANN's internal campaign for greater transparency and accountability.
"We have concerns with the way ICANN is creating new policy precedence in private negotiations with registries with little or no input from the community," he said. Comment periods are virtually meaningless "when 99 percent [of respondents] oppose something and ICANN adopts it anyway."
On Monday, ICA plans to file comments on ICANN's reconsideration of a plan for designating Web addresses for pornographic material. ICA has not taken a position on the viability of the suffix itself. The group is more concerned with language "that would put ICANN in the rating and classification business," Corwin said.
Corwin said the group may pursue domain retailing giants like GoDaddy and Network Solutions, which share a similar perspective on net governance, to become members. Search companies like Google and Yahoo also are logical partners, he added, because "they derive a significant portion of their revenue from the pay-per-click ads on sites owned by our members."
One Internet industry executive warned that wooing seemingly like-minded stakeholders may not be as easy as it seems. "We're kindred spirits on one issue, but we may be adversaries on another," the official said.

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Editor’s note: The following three stories are part of a series on the key technology players and issues before the committees of the 110th Congress. The series concludes today.
On The Hill
Data-Security Turf Fight May Hinder Panel's Agenda
by Heather Greenfield
Even before taking the reins as House Financial Services Committee chairman this year, Barney Frank tried to head off a committee turf battle over data security.
The Massachusetts Democrat wrote a letter to House Speaker Nancy Pelosi, D-Calif., asking to create a special task force to help build consensus among different panels with jurisdiction, including his panel, Energy and Commerce, Judiciary, and Ways and Means.
"There is strong reason to adopt legislation to protect the security and confidentiality of sensitive personal financial information," Frank said. "Consumers deserve protection from harm or inconvenience in the event of a data-security breach." He noted that jurisdictional battles among the committees prevented legislation from passing in the 109th Congress.
The technology industry applauded the idea of a task force. "That's something we're very optimistic about and would encourage," said Kevin Richards, a lobbyist for Symantec. Liz Gasster, executive director of the Cyber Security Industries Alliance, added that "it's important to try to find creative ways to gather people together on this issue to put the country first and not jurisdiction."
But Frank's idea has met with opposition from Energy and Commerce Chairman John Dingell, D-Mich. In his own letter to Pelosi, Dingell noted his committee's turf compared to Financial Service. He said data security is a priority for him, too, and he plans to review past legislation and report those bills "early in the 110th Congress."
But he closed the letter by arguing against a task force. "At this time, I do not see a need to subjugate the legitimate committee process to a task force unless regular order fails to produce responsible legislation," Dingell wrote.
Frank spokeswoman Heather Wong said Frank plans to draft a bill that would exempt companies from disclosing data breaches as long as they have taken steps like encryption to make the data unusable.
Another of his priorities as chairman is to hold retailers more accountable for security breaches. The latest big security breach, which was reported last month, involved retailers like Marshalls and T.J. Maxx whose parent company is based in Massachusetts.
A committee packed with 10 freshmen will help Frank tackle data security and other efforts involving banking, insurance and real estate. The newcomers are: Michele Bachmann, R-Minn.; Joe Donnelly, D-Ind.; Keith Ellison, D-Minn.; Paul Hodes, D-N.H.; Ron Klein, D-Fla.; Tim Mahoney, D-Fla.; Christopher Murphy, D-Conn.; Ed Perlmutter, D-Colo.; Peter Roskam, R-Ill.; and Charlie Wilson, D-Ohio.
Committee ranking Republican Spencer Bachus of Alabama will lead plenty of ambitious Republicans who have recently run for leadership posts. They include: Marsha Blackburn of Tennessee, Patrick McHenry of North Carolina and Adam Putnam of Florida.
Active tech favorites on the GOP side include Deborah Pryce of Ohio and Christopher Shays of Connecticut, both of whom faced tough re-election battles, as did Melissa Bean, D-Ill. Bean took the lead last year on data security.
Also returning to the committee is Judy Biggert, R-Ill., who outside of her committee work just led successful efforts to boost basic research funding for fiscal 2007.
The chairman and ranking Republicans on the subcommittees are:
-- Paul Kanjorski, D-Pa., and Pryce at Capital Markets;
-- Carolyn Maloney, D-N.Y., and Ohio Republican Paul Gillmor at Financial Institutions and Consumer Credit.
-- And Luis Gutierrez, D-Ill., and Texas Republican Ron Paul at International Monetary Policy, Trade and Technology.

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On The Hill
The Senate's Wait-And-See Approach To Data Security
by Heather Greenfield
Last Congress, the Senate Banking Committee was criticized by other committees for doing too little, too late rather than trying to dominate data-security legislation. People hoping for action this year see time and attention as the biggest obstacles to committee debate under Democrats.
Connecticut Democrat Christopher Dodd, the new chairman, also is running for president. During a speech last month before the U.S. Conference of Mayors, Dodd said his principle focus will be economic fairness, noting the "lack of access that millions of Americans have to mainstream financial services, products and capital."
But spokesman Marvin Fast said data security is on Dodd's radar screen. "Chairman Dodd has long believed that our nation should do more to protect the privacy and security of consumers' most sensitive financial data," Fast said "This issue is important to consumers' ability to achieve greater financial prosperity and security. It is also important to the ability of businesses to expand and [to] our nation's economic growth."
Liz Gasster, executive director of the Cyber Security Industry Alliance, said members of the panel "are interested in it [data security] and they care about it, but it's not the first thing they are going to work on." She predicted that the Banking Committee likely will do what it did last year -- release its legislation after other panels hold hearings so they know what areas are controversial.
Panel members Bob Bennett, R-Utah, and Tom Carper, D-Del., could take the lead on data security again this Congress. However, Carper may be a bit busy with his new role as chairman of the Economic Policy Subcommittee.
Last year, the two introduced the committee's long-awaited bill, S. 3568, in June. The legislation would have required financial services institutions to notify consumers of data breaches only if the companies themselves determined that access to the sensitive personal information would result in substantial harm.
The American Bankers Association, U.S. Chamber of Commerce and National Association of Federal Credit Unions applauded the bill, but consumer groups questioned whether it would have protected victims of data breaches.
Gasster said a "wait and see" approach by the Banking Committee this session may make sense so lawmakers don't devote staff resources to the issue, only to see it stall in the House.
Richard Shelby of Alabama, the panel's former chair and now ranking Republican, held hearings on data security last session, but his staff says he will not press Dodd to consider the matter. Spokesman Jonathan Graffeo said Shelby is "open to examining the issue if Dodd moves forward on it." "It's something he wants to see done correctly and carefully," Graffeo said.
A clue to what Shelby means by that likely can be found in his previous, S. 1461. It would not have required consumer notification when sensitive data is lost, but it would have allowed consumers freeze their credit reports and then limit access to specific third parties.
Bennett, who ranked just below Shelby in seniority last Congress, does not have a lead role on any subcommittee. Chuck Hagel, R-Neb., will be the ranking Republican on the Financial Services Subcommittee, which Bennett chaired last session.
Dodd is joined on the Democratic side by three freshmen who won high-profile races against GOP incumbents: Sherrod Brown of Ohio, Robert Casey of Pennsylvania and Jon Tester of Montana. Tester will hold the second-most senior spot on the Financial Institutions Subcommittee led by Sen. Tim Johnson, D-S.D., who is recuperating from brain surgery.
Evan Bayh, D-Ind., will chair the International Trade and Finance Subcommittee.

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On The Hill
House Chairman Eyes Actions Of Tech Firms Abroad
by Winter Casey
The new chairman of the House Foreign Affairs Committee is concerned that U.S. technology companies are supplying China's law enforcement with software and communications devices that can be used for political repression.
Chairman Tom Lantos, D-Calif., also is concerned that companies such as Google, Microsoft and Yahoo have complied with requests by the Chinese government to censor information, track criminals and pursue cyber dissidents. The congressman once again could introduce legislation on the subject this year and is reviewing other proposals as he crafts his agenda, a House staffer said.
BusinessWeek has reported that companies, including Cisco System and Oracle, have supplied China's police with technology that could be supporting anti-democratic ends.
Florida's Ileana Ros-Lehtinen is the ranking Republican on House Foreign Affairs.
The panel will have some new faces this year, including Lynn Woolsey, D-Calif. Along with a handful of fellow House Democrats, she sent a letter to Justice Department Inspector General Glenn Fine last month to request an expanded internal investigation of the Bush administration's anti-terrorism wiretapping program within the United States.
Also new to the Foreign Affairs panel is Oregon Democrat David Wu, who has been appointed as chairman of the Technology and Innovation Subcommittee at the House Science and Technology panel. Wu represents the Portland high-tech corridor.
On the Senate side, new Foreign Affairs Committee Chairman Joseph Biden, D-Del., also is a 2008 presidential candidate. He officially declared this week. Biden's committee press office did not respond by deadline to press inquiries about potential tech-related topics on his agenda.
A representative for committee ranking Republican Richard Lugar of Indiana said energy alternatives top his boss' agenda this year.
Last year, Lugar helped lead the push to get the Council of Europe Convention on Cybercrime ratified. The treaty, which dates back to 1997, is considered the main multilateral pact to support cooperation in the investigation and prosecution of computer crimes. Lugar noted the gravity of possible attacks on U.S. computer systems.
Other members of the committee include former presidential candidate John Kerry, D-Mass.; and current presidential candidates Christopher Dodd, D-Conn., and Barack Obama, D- Ill. Obama announced his bid for the White House in a taped video message on his Web site.

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On The Hill
Democrats To Seek Closer Scrutiny Of Nanotechnology
by Winter Casey
The House Science and Technology Committee will press the Bush administration this year to increase its efforts on the environmental, health and research front as more nanotechnology products hit the marketplace.
To stay competitive in the field, which focuses on matter at the atomic and molecular levels, Chairman Bart Gordon, D-Tenn., said the United States "needs to invest in an infrastructure that facilitates innovation and commercialization."
This year, an aide said the committee plans to review the effectiveness of efforts under the National Nanotechnology Initiative, a federal research and development program established to coordinate multi-agency efforts in nanoscale science, engineering, and technology. The goal is to encourage the transition of research results into products and processes.
Some lawmakers are already looking ahead to the need to reauthorize funding for nanotech research, according to a Senate staffer. In 2003 the president signed into law a bill that authorizes programs for nano programs through fiscal 2008. The measure also required the government to implement a national nanotech program and establish a National Nanotechnology Coordination Office.
Reauthorization may not happen until next year, according to the Senate staffer.
Gordon said "the [United States] needs to invest in an infrastructure that facilitates innovation and commercialization." An aide for House committee member Eddie Bernice Johnson, D-Texas, said the congresswoman also is a strong supporter of nanotech research.
Gordon, Science and Technology ranking Republican Ralph Hall of Texas and Sens. Ron Wyden, D-Ore., and Richard Burr, R-N.C., said this week that the Congressional Nanotechnology Caucus will start the 110th Congress with a lecture series focused on educating staffers on the benefits of nanotechnology.
"I believe it is important for communities to support research and development of nanotech advancements. And government should be a friend to economic growth and more jobs, not an obstacle," Burr said in a statement. "Nanotech will have a very real practical effect on our healthcare system, the way we do business and how we live."
Some researchers, such as Andrew Maynard, the chief scientist from the Project on Emerging Nanotechnologies, have said that while the country should embrace the science and its huge potential impact on economic growth, more government attention, collaboration and oversight should be placed on the consequences of the emerging technology.
Nanotechnology is expected to have a significant impact on information technology, health and homeland security, among other fields. Estimates of the "potential annual global market for products that apply nanotechnology exceed $2 trillion by 2014, and projections indicate that 2 million workers are likely to be needed to support nanotechnology industries worldwide," according to a committee release.
However, the science committee found during hearings last year that agencies are moving very slowly in terms of developing an adequately funded research plan that would give regulatory agencies the information they need to make informed judgments about the potential harm of manufactured nano-materials, according to the committee aide.

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Security
Senate's 9/11 Bill Stalls Amid Cross-Chamber Talks
by Chris Strohm
Work on a Senate bill to implement unfulfilled recommendations of the commission that investigated the Sept. 11, 2001, terrorist attacks has been delayed as House and Senate lawmakers try to resolve differences over several major issues.
One of the main snags is that the House included provisions in its version that were not recommended by the 9/11 Commission, such as requiring that all air and sea cargo be scanned for weapons of mass destruction. The House bill also would authorize the creation of a fund to improve airport security checkpoints using aviation-related fees, which was not specifically recommended by the commission.
"This is about the recommendations; it's not about attaching all sorts of riders," a Senate Democratic aide said.
An industry source noted that the language used by the 9/11 Commission left the door open for lawmakers to insert their own interpretations. "The 9/11 Commission's report is all in the eye of the beholder, and it's vague enough that you could drive any truck you want through its various rhetoric," the source said.
Senate Homeland Security and Governmental Affairs Committee Chairman Joseph Lieberman, D-Conn., said three weeks ago that he hoped to debate a bill in his committee by the end of January. That timeline has slipped to next week or the week after, according to aides and sources. One aide described the talks between House and Senate leaders as "tender" and changing daily.
Another matter of contention is how to change the funding formula for distributing homeland security grants. Under the House bill, all states would receive 0.25 of state homeland security grants, urban-area security grants and law enforcement terrorism-prevention grants. States that have an international border would receive 0.45 percent of those grants.
The Homeland Security Department could distribute the remainder of funds based on risk and threat assessments. The Senate panel, however, has approved legislation in the past that would have guaranteed states at least 0.55 percent of those grants.
"We've had several preliminary discussions, and I am hopeful that as the process moves forward, any differences we have can be worked out," House Homeland Security Committee Chairman Bennie Thompson, D-Miss., said of negotiations over the grants formula. An aide added: "I think it's fair to say that we'll probably come up somewhere in the middle."
An aide to Lieberman said he is trying to produce legislation with broad bipartisan support.
"For two years, Sen. Lieberman has worked to come to an agreement on a comprehensive approach that would provide more risk-based funding to first responders while maintaining a guaranteed base level of preparedness funding," the aide said. "He remains optimistic an agreement will be reached."
Another contentious issue is that the House bill would grant collective bargaining rights to Transportation Security Administration screeners. Such a provision has far less support in the Senate. The industry source added, however, that senators are likely to offer many amendments in the Senate. "I think you'll see a Christmas tree on the floor," the source said.

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On The Hill
New Bills Tackle E-Voting, Sex-Offender Registry
by Theresa Poulson
Lawmakers this week introduced several technology-related bills, including those that would set regulations for e-voting and require sex offenders to register their online addresses.
Rep. Earl Pomeroy, D-N.D., introduced a measure, H.R. 719, that would require sex offenders to register their e-mail and instant message addresses. The bill also would make it a crime for anyone older than 18 to misrepresent their ages online in order to engage in criminal sexual conduct with a minor.
Social-networking sites would get contact lists from the registry to cross-check against their users. Pomeroy said that would be "one more tool to help keep our children safe from dangerous predators on the Internet."
A Senate companion bill, S. 431, also was introduced.
Another new House measure, H.R. 756, would require the development of voluntary standards for electronic poll books, which would allow election officials to use electronic means to determine voter eligibility. "This bill is a common-sense solution to help elections run more smoothly," said sponsor Diana DeGette, D-Colo.
Sens. Hillary Rodham Clinton, D-N.Y., Bill Nelson, D-Fla., and Olympia Snowe, R-Maine, filed a bill designed to ensure that people using voice-over-Internet protocol can make emergency calls. The legislation, S. 428, would enable dispatchers to trace the locations of the 911 calls.
"Innovation and technological advances should improve the lives of Americans, not endanger them," Snowe said. "VoIP subscribers should not be susceptible to substandard emergency service simply because they are on the cutting edge of in-home telecommunications technology.
New House and Senate companion bills, meanwhile, would mandate that Mexican nationals with laser-based visas be given the same length-of-stay opportunities as Canadian visitors. Both measures, H.R. 702 and S. 422, would increase permissible stays from 30 days to six months.
Senate bill sponsor John Cornyn, R-Texas, stressed that in the implementation of the US-VISIT technology program to track foreigners, travels should be facilitated and input from the border communities should be considered.
House sponsor Henry Cuellar, D-Texas, sees the bill as a step toward equal treatment. "Mexican nationals that hold laser visas have already undergone a rigorous vetting and screening process and are screened again as they enter the United States," he said. "To treat them differently than our Canadian visitors, who do not undergo such a vetting process, would be unfair."
Rep. Anna Eshoo, D-Calif., filed a bill, H.R. 743, that would make permanent the moratorium against taxing Internet access. "Because of the tremendous value [the Internet] brings to all aspects of our lives," she said, "we need to encourage its usage and do everything we can to ensure that Internet access is universal."
Other tech-related measures introduced this week were: H.R. 740, which aims to prevent the spoofing of caller-identification services; and H.R. 752, which would direct federal agencies to donate extra electronic equipment to small towns, counties, schools nonprofits and libraries.

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Health
Senators Criticize HHS Over Data Security Of Patients
by Aliya Sternstein
The Health and Human Services Department drew criticism at a Senate subcommittee hearing Thursday afternoon for rejecting a government auditor's recommendation that HHS craft a comprehensive approach for protecting patient data within a national health information system.
A Jan. 10 report by the Government Accountability Office stated that the department has not yet created a plan for addressing key privacy principles or outlined milestones for integrating the results of HHS' multiple, ongoing privacy-related assessments. GAO officials advised action on those issues.
HHS disagreed with the recommendations in a letter, stating that the department "believes that the tightly scripted milestones GAO recommends would impede our processes and preclude necessary public-private dialogue."
At Thursday's Senate Homeland Security Government Management Subcommittee hearing, Chairman Daniel Akaka, D-Hawaii, said he was "surprised" to learn of the department's protest. As businesses, physicians and insurance carriers accelerate their health information technology activities, he said, "I fear that privacy suffers while HHS takes time to decide how to implement privacy protection."
The subcommittee convened to focus on health IT privacy matters related to the Office of Personnel Management's benefits program. It is the country's largest employer-sponsored health insurance program, covering about 8 million federal employees, retirees and their families.
Akaka asked an OPM official if current circumstances could result in an insurance plan developing an electronic health record that would not be protected under the Health Insurance Portability and Accountability Act.
Dan Green from OPM's employee and family support policy center said no, adding that he is "convinced" that contract requirements protect enrollees from inappropriate misuse of electronic health information.
Akaka highlighted arguments by witness Mark Rothstein, the chairman of an HHS advisory panel on privacy and confidentiality. Rothstein said private-sector health IT initiatives, like the system being devised by Wal-Mart and other big employers, are "usually not subject to any federal or state regulation." Rothstein, who is also director of the Institute for Bioethics, Health Policy and Law at the University of Louisville, stressed that he was giving his personal views.
Witness Rob Kolodner, the interim HHS national coordinator for health IT, said there are private entities not covered by HIPAA, adding that two HHS advisory bodies have started to consider whether certain entities not subject to the law now should be held accountable.
Subcommittee ranking Republican George Voinovich, R-Ohio, asked Kolodner if the stopgap spending bill that covers HHS for the rest of fiscal 2007 had harmed the department's progress in safeguarding privacy. Kolodner said his office has not been forced to slow in any way.
In further testimony, Rothstein recommended that Congress "condition continued appropriations" for developing a nationwide health information network on HHS "demonstrating significant progress" in resolving privacy issues.
"The health benefits of electronic health-record networks will never be realized unless the American public has a high degree of trust in network privacy protections," he said. "We can't build the network and then build the trust."

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Today's Feature:
Executive Summary
For months, Democratic lawmakers have hinted that Republican FCC Chairman Kevin Martin would face a grilling before Congress, and this week they delivered.
Every Friday, read the Executive Summary by K. Danny Glover.
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E-briefs


Budget: House Speaker Nancy Pelosi and Majority Leader Steny Hoyer say the biggest thing they will look for when President Bush submits his fiscal 2008 budget Monday will be whether it is balanced. In a statement released to reporters Friday, the Democratic leaders noted that over the past six years, the Bush administration has replaced a budget surplus with a deficit of nearly $3 trillion. They said that during an earlier State of the Union address, Bush promised the deficit would be small and short-lived. Pelosi, D-Calif., and Hoyer, D-Md., said the fiscal 2008 budget proposal is an opportunity to put those words into action. They blame the deficit in part on "fuzzy math" in earlier Bush spending requests, and asked that the new budget be free of financial gimmicks and provide a credible accounting of expected costs. Democratic leaders also expressed concern about cuts to programs like Medicare and Medicaid.
Civil Liberties: The House Judiciary Committee chairman told the Justice Department on Friday that the full 39-member panel needs access to documents pertaining to the Bush administration's anti-terrorism surveillance program. The agency previously agreed to let the chairman, Michigan Democrat John Conyers, and ranking Republican Lamar Smith of Texas, review the files. Twenty-one committee members also signed the letter to Attorney General Alberto Gonzales. The committee is still awaiting a response to a Jan. 19 letter that requested a classified briefing for all committee members and selected staff with appropriate security clearance, Conyers said. "Important questions regarding the [Foreign Intelligence Surveillance Act] program remain unanswered, and responses to our requests are critical" for the panel's proper evaluation of the efficacy and legitimacy of the spying initiative, the letter said.
Telecom: A telemarketer charged with making tens of millions of illegal, automated calls agreed to pay a $1 million civil penalty under a settlement reached with the FTC and the Justice Department. Florida-based Broadcast Team's automated phone-dialing service allegedly called and hung up on more than 64 million people, a million of whom were listed on the national "do not call" registry against unwanted telemarketing. The government sued the company in an Orlando, Fla., federal court. In other news, a Chicago judge stopped a Canadian telemarketer that targeted U.S. consumers, falsely claiming it could reduce their credit-card interest rates. According to the FTC's complaint, Select Personnel Management of Ontario engaged in caller-identification "spoofing," which involves hiding one's true identity to solicit personal information for fraudulent purposes. The court issued a temporary restraining order and froze the company's assets, and Canadian authorities issued search warrants to further investigate the scam.
Education: This week, Virginia high school students from Forest Park's Center for Information Technology got a behind-the-scenes glimpse into the lives of federal IT chiefs as part of Junior Achievement's job-shadowing program. Michael Carleton, the chief information officer at the General Services Administration, and Mary Mitchell, the deputy associate administrator at GSA's tech strategy office, were among the government IT professionals who helped teenagers see the connection between learning and earning. The event was sponsored by JA, the Association for Federal Information Resources Management, and the Federal Chief Information Officers Council.
Lobbying: A new advocacy group dedicated to fighting "domain-name tasting" has launched with the hopes of influencing the new Congress. The tactic in question involves individuals who leverage the five-day grace period to register and drop Internet addresses at virtually no cost. The Coalition Against Domain Name Abuse, which is run by the Internet consulting firm FairWinds Partners, estimates that 2 million names are tasted daily. As many as 32 million names currently are being sampled, and roughly half infringe on the rights of trademark owners, the group said. Nearly all tasted domains point to pay-per-click sites, which means known brands could experience customer confusion and increased expenses for keyword clicks on search engines, CADNA said. The organization will press lawmakers to schedule hearings on the topic and urge safeguards against the practice. CADNA Director Josh Bourne cited "strategic reasons" for keeping the group's member list secret for now.
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