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Intellectual Property
Deadline Looms As Web Radio Talks Continue
by Andrew Noyes
The feuding Internet radio and music industries seem to have made some progress during a closed-door meeting on Capitol Hill late Thursday, but a final deal on webcaster royalties has yet to surface.
The planned fee increase, set by the Copyright Royalty Board in March, is slated to take effect Sunday. Online radio providers large and small have argued that the payment plan is too high, and will diminish their offerings and put some services out of business.
The digital royalty collector SoundExchange, which unsuccessfully offered a compromise to webcasters last month, reportedly is circulating a revised plan to cap the annual $500 minimum per-channel charge for large webcasters through 2010.
In exchange for the $50,000 ceiling, the group wants a commitment from webcasters to accurately report details about the music they play. SoundExchange also requested that the industry improve technologies that prevent users from pirating music streams.
"The parties are working very hard to negotiate and are very motivated," SoundExchange spokesman Richard Ades said. "We'll be working closely with webcasters to grow the medium and get music out there."
Because the rate hike will apply retroactively to 2006, several online radio services already have sent "true up" payments to SoundExchange to cover the discrepancy in what they paid under the old rules and the new ones, Ades said.
There also were developments on the non-commercial webcaster front, National Public Radio spokeswoman Andi Sporkin said. SoundExchange previously attempted a truce with NPR, as well as college and religious broadcasters, but it was rejected.
On Friday, NPR and the Corporation for Public Broadcasting had a "productive meeting" with SoundExchange and "reached agreement on some elements that will lead to resolution," Sporkin said. Details were not released by deadline.
SoundExchange also presented a lower fee proposal to small commercial webcasters in late May. That preliminary offer, which is still being negotiated, would extend a 2002 law that would let them pay royalties on a percentage-of-revenue basis.
New York Democrat Nydia Velazquez, who chairs the House Small Business Committee, and ranking Republican Steve Chabot of Ohio introduced a bill to postpone the implementation of the new royalty rates while negotiations continue. The measure, H.R. 3015, would delay the hike for two months.
The duo sent letters to the leadership of the House Judiciary Committee urging adoption of the bill. A separate letter was sent to SoundExchange and the Digital Media Association, advising the groups to use the 60 days to make earnest negotiations if the bill passes.
"We must find a solution that will satisfy both sides of this issue, and a little more time may be all that is necessary," Velazquez said in a press release. "It is critical that we take steps to ensure that small Internet webcasters continue to thrive."
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Intellectual Property
Opposing Groups Run Dueling Ads About Patent Law
by Andrew Noyes
A group of major technology and media firms that supports broad changes to the U.S. patent system has shifted its tone to combat mounting criticism from various intellectual property players who oppose the moves.
Representatives of the Coalition for Patent Fairness, which represents Apple Inc., Cisco Systems, Microsoft, Time Warner and others, said they have grown tired of the "sky is falling" rhetoric from opponents.
The House and Senate Judiciary committees are currently considering a pair of bills -- H.R. 1908 and S.1145 -- that would revamp the patent process, to the chagrin of the pharmaceutical and biotechnology sectors, as well as other interests.
The coalition ran a full-page advertisement in Thursday's Roll Call challenging detractors' accusations that the legislation would harm the American economy. Ominous predictions being made about the impact of the reform "could not be further from the truth," the ad said.
"Claims that innovation will be halted are simply false" and doomsday forecasts by opponents have been wrong before, Intel Chief Patent Counsel David Simon said. For example, some said the Supreme Court's 2006 ruling in eBay v. MercExchange would eviscerate injunctions and that has not happened, he said. In that case, the high court reversed a long-time precedent, ruling that trial courts must not automatically impose an injunction for patent infringement.
Simon, whose company is a member of the Coalition for Patent Fairness, pledged to "keep working to educate the Hill" to show lawmakers that reform advocates "are not out to destroy the patent system" as the bills' foes would have them believe.
"We decided the best way to refute this is to say, 'Look at what they've been saying because in some cases, they are literally saying the sky is falling,'" Simon said. "There's no basis for it other than the fact that they don't like the [proposed] changes in the law because the law currently works well for them."
In addition to the Pharmaceutical Research Manufacturers of America and the Biotechnology Industry Association, the bills have been slammed by small tech firms represented by the Innovation Alliance and giants like Eli Lilly, General Electric and Motorola, which created the Coalition for 21st Century Patent Reform.
Those groups have run some ads as well. One-pagers from the opposing coalition have appeared in various publications, including CongressDaily, National Journal and The Politico.
Its latest, which ran in Thursday's Roll Call, tells Congress to "reward innovation, not imitation." The group argues that the bills currently under consideration would weaken monetary damages for infringement and permit unnecessary appeals.
The Innovation Alliance has run ads twice in Roll Call that depict a light bulb exploding under the pressure of a giant clamp. The text below the picture reads: "Getting patent reform wrong will shatter innovation. That's a price America can't afford to pay."
PhRMA has not spent money on anti-patent reform promotions, but the biotech group has. A series of ads in The Hill, The Politico and Roll Call ask: "What's at stake if Congress passes the wrong patent reform bill? The next great biomedical breakthrough."
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Security
Most Key Tech Jobs At Homeland Security Are Filled
by Chris Strohm
The Homeland Security Department is trying to fill key counterterrorism and intelligence-related positions as criticism mounts in Congress that it has too many vacancies, but top technology-related divisions have fewer vacancies.
Criticism was ignited this week when the Democratic majority of the House Homeland Security Committee released a report finding that 138 out of 575 senior leadership positions -- about 25 percent of the department total -- were vacant as of May 1. The 11-page report concluded that the void "directly impairs our homeland security and our readiness."
Department spokesman Russ Knocke disputed that the department is unprepared. He said it would be a "misimpression" if lawmakers believe that the necessary work isn't being done when positions are vacant.
A closer look at vacancies in key counterterrorism, intelligence and operational positions reveals a mixed bag. For example, vacant positions within the intelligence and analysis office include the senior executive for counterintelligence programs; director of the state and local fusion center division; and principal deputy director for the Terrorist Screening Center.
But Knocke said one or more candidates have been selected and are being vetted for each slot. He added that those positions, along with 70 others, were only created in April -- intentionally by the department -- to generate career-level leaders that will help smooth the transition when a new administration takes over in January 2009.
He called it "disingenuous" and "misleading" for lawmakers to criticize the department for not filling positions that it willingly created less than four months ago. "I think the report is more a politically skewed and perhaps even a politically motivated characterization of apolitical efforts for transition," he said.
Operational positions that are technically vacant include the director of anti-terrorism and chief of the national targeting center for Customs and Border Protection, along with the director of intelligence for Immigration and Customs Enforcement and chief of staff for the operations coordination office. But Knocke said those positions either have acting chiefs or are being filled.
Vacancies appear to be having less of an impact at two agencies that deal with sensitive technology, according to government and industry officials. Vacant senior positions within the science and technology directorate include the chief of the explosives division, head of the infrastructure and geophysical division, and a chief science adviser, according to data compiled for the Democrats' report. Key vacancies at the domestic nuclear-detection office include a chief engineering adviser and assistant director of systems engineering and architecture.
Homeland Security officials said both agencies will be at full staffing by the end of the year.
Industry officials said they have not had major problems dealing with either division because of vacancies. One official, however, said science and technology has too many contractors. He said some problems have surfaced when contractors test new technologies that, if accepted, could halt their projects.
Officials also said some people who would be qualified to work at the department either resist doing so because the Bush administration only has 18 months left or they are having problems getting security clearances.
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Intellectual Property
Broadcom's Free Patent Offer May Ease Concerns
by Winter Casey
Broadcom has announced a plan to grant free licenses for its patented wireless technology that could lessen the possibility of the Bush administration protesting an International Trade Commission ruling, according to a former ITC official. But public-safety representatives who stand to benefit from the plan are not convinced that it will help them.
Last month, the ITC barred the import of new cellular telephone models that include certain chips made abroad by Qualcomm, a Broadcom competitor. The Office of the U.S. Trade Representative is reviewing the ITC's decision, but Broadcom's offer on Tuesday to grant free licenses for its technology to state and local agencies and private nonprofits could head off any protest.
David Dull, Broadcom's general counsel, said in a statement that the ITC's order eliminates any meaningful impact the import ban could have on public safety. But "to remove any remaining doubt," he added, the company will freely license its patent toward imported "cellular phones for use in public health, safety and emergency-response applications."
Former ITC Vice Chairman Ronald Cass called the decision a "smart move" because it will mean the administration is much less likely to overturn the ITC's decision. He added, however, that the offer demonstrates that Broadcom is concerned about the administration's view of the patent spat.
USTR is evaluating the ITC decision and theoretically could protest the order before Aug. 6. While USTR is considering the case, interested parties are free to provide information for review, according to an agency spokeswoman.
Some observers have voiced concern that the ITC's decision could have a large impact on the U.S. economy. However, Cass said that for the administration to intervene, a significant case must exist on how the ruling would threaten the nation's security and welfare. The case concerns "what is the maximum disruption to the economy" with the minimal consequence to the patent holder, Cass added.
While Cass said Broadcom's announcement erases the argument that the ITC's decision could interfere with the public-safety abilities of state and local governments, two representatives in public safety disagree.
Robert LeGrande, deputy chief technology officer for the District of Columbia, sent a letter Thursday to USTR's Susan Schwab that criticizes Broadcom's proposal for a royalty-free licensing arrangement.
"[P]ublic-safety organizations do not import the handsets," he wrote. "They buy them after they are imported. There will be nothing to buy if the federal government bans the importation of this equipment. ... The adjusted ruling will still result in a total import ban, as it eliminates any incentive to manufacture devices."
The Association of Public-Safety Communications Officials said in a statement Friday that while the group appreciates Broadcom's "apparent recognition of the very real impacts on public safety, the offer of patent licensing to public-safety agencies does not provide an adequate remedy."
Qualcomm also questioned the value of Broadcom's offer. Company Vice President Jonas Neihardt said, "Broadcom's attempt to address public-safety needs only reaffirms the damage the ITC's decision will have on public safety and consumer interests."
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Education
Science, Tech Advocates Urge More Federal Focus
by Aliya Sternstein
Six months into 2007, education in the areas of science, technology, engineering and mathematics, or STEM education, is finally getting much needed attention in Washington, education advocates and lawmakers say.
"The budget request contained the first meaningful increase for the National Science Foundation's education programs in many years, something the STEM ed community has really made a high priority," said James Brown, co-chairman of the STEM Education Coalition.
Aside from the president's actions, House and Senate appropriators are supporting substantial funding increases for NSF's STEM education programs this budget season, he said. The funding would go partly toward a math and science professional development program that produced measurable improvements in student proficiency at the elementary, middle- and high-school levels over a three-year period.
And Brown said it looks possible that the House and Senate will reach an agreement on major competitiveness legislation this summer, which would bring "a badly needed shot in the arm" to the NSF programs. Also looming over the horizon is reauthorization of the signature 2002 education law known as the No Child Left Behind Act.
Despite many promising developments in Washington, students and teachers are still struggling in the STEM fields, according to Brown. "I am hopeful that these positive actions in Congress will soon be translated into real progress on the ground," he said.
Betty Shanahan, executive director and CEO of the Society of Women Engineers, said she is optimistic that recent grants awarded by the Education Department will assist under-represented members of the population in pursuing STEM careers.
On June 29, the department awarded $22 million in grants to universities, state and local educational agencies, and nonprofits to devise strategies for tapping highly qualified individuals who do not have teaching credentials to teach core subjects, such as math, science and special education in high-need school districts.
That same day, the department gave 25 predominantly minority universities $3.5 million to better prepare ethnic minorities, especially minority women, for jobs in science and technology.
Sen. Michael Enzi of Wyoming, the top Republican on the Health, Education, Labor and Pensions Committee, said Tuesday that "it is critical" that Congress reauthorize a comprehensive higher education bill this year, as well as No Child Left Behind, to enhance America's technological and economic competitiveness. Enzi said the competitiveness legislation is expected to be "signed into law before the end of the year."
A spokeswoman for HELP Committee Chairman Edward Kennedy, D-Mass., said current federal efforts include grants, which Kennedy helped craft, that encourage students to pursue STEM majors. Legislative proposals backed by the committee would increase access to the grants, she said.
Democrats and Republicans on the House Science and Technology Committee noted that the panel has passed several measures aimed at boosting the quality and quantity of STEM teachers in the United States.
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Labor
Scholarship Program Set To Help Fill Federal Jobs
by Aliya Sternstein
In the spirit of the prestigious Rhodes Scholar program at Britain's Oxford University, a new U.S. scholarship has been proposed to fill highly needed government positions like the thousands of information technology slots expected to open over the next two years.
The nonprofit Partnership for Public Service on Thursday announced plans to establish a Roosevelt Scholars program, which would pay the tuition for graduate students studying areas of critical interest to the federal government. Recipients would have to commit to serving the government for two years after obtaining their advanced degrees.
The program is named for President Theodore Roosevelt, who served as U.S. civil service commissioner before becoming president and is regarded as the father of the federal civil service system. As commissioner, he probed fraud and political abuse in government and exposed corrupt officials. During his presidency, the competitive merit system surpassed the spoils system in terms of percentage of civil service jobs -- for the first time.
The Roosevelt Scholars initiative was unveiled at the partnership's annual summer intern meeting, where about 2,000 Washington youths met with federal recruiters from various agencies. The event was emceed by House Majority Leader Steny Hoyer, D-Md., and political commentator Cokie Roberts, whose parents were members of Congress.
According to the partnership's July 3 report on federal job openings, the government needs to hire IT experts for at least 11,562 positions.
During a press briefing before Thursday's festivities, Partnership President Max Stier said: "We need to find a way to make government service a premier job choice. In our country today, unfortunately, many Americans no longer think of government service as public service."
Hoyer said in a statement Friday to Technology Daily: "As more and more federal employees are eligible to retire, it is critical that the government can attract quality employees with the necessary skills to serve American taxpayers and help move our country forward. I applaud the Partnership for Public Service's efforts to encourage educated young people to enter public service."
Over the next two years, agencies project that they will need nearly 193,000 new workers for mission-critical jobs, particularly in security and enforcement, public health, science, engineering and accounting.
The partnership's hope is that young technology students will choose government careers if they have a financial incentive. There is no money for the scholarships yet, nor is there a timeline for awarding them, Stier said. The partnership is hoping that congressional support will expedite funding and rollout.
Stier said the goal is not just filling federal positions but creating a talent base capable of serving the nation as a whole. "Our belief is that a scholarship of this sort will encourage new talent to enter these fields." The government would get first dibs at job prospects, but the workers could choose to extend their careers at companies or nonprofits later.
The number of scholarships granted each year would depend on the level of need within the government.
"Almost everyone knows about the Rhodes Scholars," Stier said. "The hope is that everyone will know about the Roosevelt Scholars."
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On The Hill
Health IT, Telecom Are Popular Topics In New Bills
by Theresa Poulson and Sarah Myers
Legislation introduced this week would create a market-based program to implement health information technology and would give control of electronic health records to patients. The bill, H.R. 2991, is one of several new technology-related measures.
Rep. Dennis Moore, D-Kan., introduced the measure, which would establish a nationwide health IT network of independent health-record trusts that would compete for patient business. "This forward-looking plan would utilize market forces to drive the creation of a fully interoperable, nationwide HIT network while also taking additional steps to protect the privacy of sensitive medical information," Moore said.
The bill would allow patients the option to enter medical information into a database run by a trust, and patients would be able to manage their electronic records to control physician access.
In the Senate, meanwhile, broad new legislation to revamp the healthcare system, S. 1783, also would support the adoption of health IT.
On the telecommunications front, new bills seek to increase consumer protections and public safety. One measure, S. 1769, aims to facilitate the portability of telephone numbers from one service provider to another. (See separate story).
A new resolution, H. Res. 537, also would designate National 911 Education Month to build awareness of emergency telephone services. (See separate brief) Another measure, H.R. 2972, would require wireless phone carriers to provide access to the emergency telephone number in subterranean subway stations located within their coverage area.
A fourth piece of legislation, H.R. 3003, would provide tax incentives to encourage diversity in owning telecommunications businesses. And another bill, H.R. 2953, aims to increase eligibility for the Agriculture Department's rural, high-speed Internet program by reducing legal and financial barriers.
Other tech-related bills introduced this week were:
-- H.R. 3015, which would delay the implementation of higher royalty rates for webcasters; (See separate story)
-- S. 1780, which would require the FCC to enforce regulations about "indecent" television programming by maintaining a policy that a single word or image may be considered indecent; (See separate summary and story)
-- H.R. 2954, which aims to strengthen enforcement of immigration laws and achieve operational control over borders;
-- H.R. 2960, which proposes steps to increase the number of people processing passports;
-- S. 1775, which would reauthorize the 2002 education law called the No Child Left Behind Act;
-- H.R. 3040, which would provide additional educational assistance to veterans pursuing a degree in science, technology, engineering or math;
-- H.R. 3021, which would authorize grants and low-interest loans to modernize public primary and secondary educational facilities;
-- H.R. 2958, which would direct the FTC to review the videogame ratings of the Entertainment Software Ratings Board, and direct the Government Accountability Office to study the impact of videogames on children and young adults;
-- And H.R. 3027, which would require the electronic recording of custodial interrogations in federal criminal cases.
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Today's Feature:
Executive Summary
The Electronic Industries Alliance, which has operated in some form since 1924, is closing and selling its assets.
Every Friday, read the Executive Summary by K. Daniel Glover.
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E-briefs
Trade: Lawmakers need to start discussing U.S. free-trade proposals with Colombia, Panama, Peru and South Korea, Senate Finance Committee Chairman Max Baucus said in a blog entry Thursday. "It is time for Congress to begin its deliberations on pending agreements," the Montana Democrat wrote. "I expect the Peru and Panama agreements to garner wide congressional support. I strongly support both and expect the Senate Finance Committee to begin to review the Peru agreement shortly." However, Baucus said to pass the Colombian agreement, the nation must address "concerns related to violence against trade unionists and effective prosecution of such crimes." Baucus said he won't move the Korea agreement "until Korea follows international scientific standards and lifts its unjustified ban on all U.S. beef products." The U.S. Chamber of Commerce and other business organizations, meanwhile, sent a letter to congressional leaders in support of the pending trade plans.
Civil Liberties: The Justice Department and FBI on Friday unveiled a series of measures aimed at enhancing national security oversight and compliance at the agencies. One measure would create an oversight section within the Justice Department's national security division, while a separate proposal would establish an office of integrity and compliance at the FBI. "The top priority of the department is to protect the nation from terrorist attack," Attorney General Alberto Gonzales said in a statement. "At the same time, we have an important obligation to make sure the tools we use to prevent terrorism also protect the civil liberties of our citizens." Expanded compliance reviews will cover all national security activities, including the FBI's use of the Foreign Intelligence Surveillance Act authorities and secret anti-terrorism subpoenas called national security letters.
E-Commerce: Caribbean nations have expressed support of U.S. legislative efforts to regulate Internet gambling instead of banning it. The 15-country membership of the Conference of the Caribbean Community praised Rep. Barney Frank, D-Mass., for authoring a bill that would require domestic and foreign online gambling operators to obtain licenses and impose safeguards against underage and compulsive e-gambling. The nations also said they would continue backing Antigua and Barbuda in its quest for compensation from the United States for World Trade Organization violations involving Internet gambling. "Rather than face billions in trade sanctions for WTO violations, we hope that members of Congress will instead regulate Internet gambling in order to comply with the WTO, better protect consumers and generate billions of dollars for important government programs," said Jeffrey Sandman, a spokesman for the Safe and Secure Internet Gambling Initiative.
E-Government: A California court has tentatively dismissed the results of a 2004 vote on a ballot initiative to ease restrictions on the use of medical marijuana. Alameda County Superior Court Judge Winifred Smith on Thursday nullified the results of the contest, which was conducted on touch-screen machines manufactured by Diebold Election Systems, and ordered a new vote. Smith previously ruled that election officials broke the law by refusing to provide voting data to Americans for Safe Access, a group that sought a recount. The county allegedly sent the machines back to Diebold without preserving relevant information. "Without examining the redundant data, audit logs and chain-of-custody records, no one can confirm whether any of the reported malfunctions were ever resolved or whether vote data was manipulated or lost," Electronic Frontier Foundation Staff Attorney Matt Zimmerman said in a release.
Intellectual Property: The Motion Picture Association of America on Thursday filed a federal lawsuit on behalf of major Hollywood movie studios against ShowStash.com, claiming that the Internet site facilitates copyright infringement. According to MPAA, ShowStash identifies, posts, organizes and indexes links to unauthorized content. "ShowStash is a one-stop shop for copyright infringement and the operators' sole purpose is to disseminate content that has been illegally reproduced and distributed," John Malcolm of the MPAA said in a statement. "Sites like ShowStash are breaking the law, and our goal is to put these movie theft 'entrepreneurs' out of business for good." According to ShowStash's Web site, it does not advocate piracy. "If you enjoy the videos, purchase them from your local electronics dealer," the site's FAQ section says. "We support the MPAA."
E-Government: A rise in online secrecy has obscured the activities of the U.S. government over the last six years, according to a report released Friday by OpenTheGovernment.org and People for the American Way Foundation. The report states that thousands of pages were "abruptly removed from federal Web sites" after the Sept. 11, 2001, terrorist attacks. Today, government sites are complex and often self-serving, with many formatted in a way that restricts access to raw data. But simultaneously, the Web has allowed entities like the Federation of American Scientists, the liberal activists group MoveOn and the YouTube video-sharing site to unmask government doings. Foundation President Ralph Neas stated, "At a time when technology should make it easier than ever to promote openness in government, George W. Bush and Dick Cheney have taken unprecedented steps to cloak themselves in secrecy."
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Editor in Chief -- Louis Peck, 202-739-8481
Editor -- K. Daniel Glover (bio)
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