| OECD Adopts Information
Security Guidelines |
8/7. The Organization for
Economic Cooperation and Development (OECD) announced that
"OECD governments have drawn up" a set of
"guidelines" pertaining to information security.
See, document
[16 pages in PDF] titled "OECD Guidelines for the
Security of Information Systems and Networks: Towards a
Culture of Security". See also, OECD
release.
The OECD Guidelines state that "As a result of increasing
interconnectivity, information systems and networks are now
exposed to a growing number and a wider variety of threats and
vulnerabilities. This raises new issues for security. For
these reasons, these Guidelines apply to all participants in
the new information society and suggest the need for a greater
awareness and understanding of security issues and the need to
develop a ``culture of security´´."
The document states that it was "adopted as a
Recommendation of the OECD Council at its 1037th Session on 25
July 2002." These guidelines are non-specific,
non-controversial, and non-binding.
The nine guidelines are as follows: 1. "Participants
should be aware of the need for security of information
systems and networks and what they can do to enhance
security." 2. "All participants are responsible for
the security of information systems and networks." 3.
"Participants should act in a timely and co-operative
manner to prevent, detect and respond to security
incidents." 4. "Participants should respect the
legitimate interests of others." 5. "The security of
information systems and networks should be compatible with
essential values of a democratic society." 6.
"Participants should conduct risk assessments." 7.
"Participants should incorporate security as an essential
element of information systems and networks." 8.
"Participants should adopt a comprehensive approach to
security management." 9. "Participants should review
and reassess the security of information systems and networks,
and make appropriate modifications to security policies,
practices, measures and procedures."
The fifth principle, regarding democratic society, further
provides that "Security should be implemented in a manner
consistent with the values recognised by democratic societies
including the freedom to exchange thoughts and ideas, the free
flow of information, the confidentiality of information and
communication, the appropriate protection of personal
information, openness and transparency."
Philip Reeker, Deputy Spokesman of the U.S. State Department,
released a statement.
He said that "These new OECD guidelines, which replace
the original guidelines published in 1992, provide a set of
principles to help ensure the security of today's
interconnected communications systems and networks. They are
applicable to all, from those who manufacture, own, and
operate information systems to those individual users who
connect through home PCs. Importantly, the guidelines call for
new ways of thinking and behaving when using information
systems.
The Business Software Alliance
(BSA) praised the guidelines. Robert Holleyman, P/CEO of the
BSA, stated in a release
that "These guidelines build on our continuing efforts to
educate businesses and governments around the world about the
need for an aggressive and cooperative effort to protect our
crucial networks from the growing threat of cyber
attacks".
The OECD is an international organization of 30
industrialized, market economy countries. |
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| FCC Fines Junk Faxer
$5,379,000 |
8/7. The Federal
Communications Commission (FCC) released a Notice
of Apparent Liability (NAL) [19 pages in PDF] finding that
"Fax.com is apparently liable for forfeiture in the
amount of $5,379,000."
The NAL states that Fax.com characterizes itself as a
"fax broadcaster". The NAL states that it sends
unsolicited commercial fax messages in violation of the
Telephone Consumer Protection Act of 1991 (TCPA).
The TCPA amended the Communication Act of 1934. It is codified
within 47 U.S.C.
§ 227. Section 227(b)(1), which pertains to
"Restrictions on use of automated telephone
equipment", provides, in part, that "It shall be
unlawful for any person within the United States ... (C) to
use any telephone facsimile machine, computer, or other device
to send an unsolicited advertisement to a telephone facsimile
machine". See also, Section 64.1200(a)(3) of the FCC's
rules implementing this statute.
The FCC found that Fax.com is apparently liable for $11,000
for each of the 489 fax violations, for a total proposed fine
of $5,379,000.
FCC Commissioner Kathleen
Abernathy wrote a separate statement. She wrote that
"I strongly support this Notice of Apparent Liability and
hope that other fax broadcasters will take notice that the
Commission will strictly enforce the Telephone Consumer
Protection Act. As set forth in detail in the NAL, Fax.com
appears to have founded its business on the practice of
sending unsolicited faxes in flagrant violation of the TCPA."
This action was taken by the FCC's Enforcement Bureau. The FCC
adopted the NAL on August 2, 2002, but did not release it
until August 7. The proceeding is titled "In the Matter
of Fax.com, Inc. Apparent Liability for Forfeiture. This is
File No. EB-02-TC-120. See also, FCC
release. |
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| 8th Circuit Rules on PSLRA |
8/7. The U.S.
Court of Appeals (8thCir) issued its split opinion
[45 pages in PDF] in In
re K-tel International, Inc. Securities Litigation,
a class action securities case involving the heightened
pleading requirements of the PSLRA.
Pasquale Migliaccio and others filed a complaint in U.S.
District Court (DMinn) against K-Tel International, and
some of its officers and directors, alleging securities fraud
in violation of Section 10(b) of the Securities Exchange Act
of 1934, 15 U.S.C. § 78j(b), and Rule 10b5 thereunder.
Plaintiffs alleged failure to make certain accounting
adjustments in compliance with Generally Accepted Accounting
Principles (GAAP), and failure to make a timely disclosure
regarding a NASDAQ delisting letter.
The District Court dismissed the complaint for failure to
state a claim, pursuant to Rule 12(b)(6) of the FRCP. The
Court held that plaintiffs' complaint failed to allege with
sufficient particularity either material misrepresentations or
facts giving rise to a strong inference of scienter, under the
requirements of the Private Securities Litigation Reform Act.
The Appeals Court affirmed, 2-1. |
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| SEC Files Alleges Fraud in
Sale of Securities in IP Telephony Companies |
8/6. The Securities and
Exchange Commission (SEC) filed a series of civil
complaints against defendants engaged in "unregistered
securities offerings and fraudulently diverted the proceeds to
pay exorbitant, undisclosed commissions to telemarketers and
other unregistered brokers who solicited the investors."
See, SEC
release.
In one of these actions, the SEC filed a complaint in the U.S. District Court (EDNY)
against Ephone, Inc., Webphone, LLP, Newera Communications,
LLP, and others alleging violation of federal securities laws
in connection with the fraudulent offer and sale of securities
in companies purportedly formed to establish long distance
telephone service through the Internet. See, SEC
release regarding Ephone. |
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| RIAA to Appeal Webcasting
Rule |
8/7. The Recording Industry
Association of America (RIAA) announced its intent to file
with the U.S. Court of Appeals (DCCir)
a petition for review of the June 20, 2002, final
rule of the Librarian of Congress on royalty rates for
webcasting music. See, RIAA release.
Hilary Rosen, Ch/CEO of the RIAA stated in the release that
"The Librarian's decision was based on a misguided
reading of the record. Not only was improper weight given to
the testimony of Yahoo! but some 140 separate licensing deals
were thrown out by the Librarian. The end result significantly
undervalued the music used by Internet radio companies."
On June 20, 2002, the Librarian of Congress issued his final
rule providing the terms for the statutory license for
eligible nonsubscription services to perform sound recordings
publicly by means of digital audio transmissions, also known
as webcasting, pursuant to 17 U.S.C.
§ 114, and to make ephemeral recordings of sound
recordings for use of sound recordings under the statutory
license set forth in 17 U.S.C.
§ 112. The Librarian followed the recommendations of the
Register of Copyrights, rather than the CARP.
The Librarian also released a summary
stating that he "has accepted the recommendation of the
Register of Copyrights and rejected the rates and terms
recommended by a Copyright
Arbitration Royalty Panel (CARP) ... The most significant
difference between the CARP's determination and the
Librarian’s decision is that the Librarian has abandoned the
CARP's two tiered rate structure of 0.14¢ per performance for
``Internet only´´ transmissions and 0.07¢ for each
retransmission of a performance in an AM/FM radio broadcast,
and has decided that the rate of 0.07¢ will apply to both
types of transmission."
The rule takes effect on September 1, 2002.
On February 2, 2002, the CARP released its report
[143 pages in PDF] recommending that both webcasters and
commercial broadcasters pay a performance fee of 0.07¢ per
performance, and 9% of performance fees due, for simultaneous
Internet retransmissions of over the air AM or FM radio
broadcasts. It recommended that the performance fee be 0.14¢
per performance and 9% of performance fees due for all other
Internet transmissions.
The CARP further recommended that non commercial broadcasters
pay a performance fee of 0.02¢ per performance for
simultaneous Internet retransmissions of over the air AM or FM
radio broadcasts, and 0.05¢ for other Internet transmissions,
including up to two side channels of programming consistent
with the public broadcasting mission of the station.
On May 21 the Librarian of Congress, at the recommendation of
the Register of Copyrights, Marybeth
Peters, issued an order
rejecting the CARP's February 20 determination. |
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| IRS Buys Computers |
8/7. Hewlett Packard (HP)
announced that the Internal
Revenue Service (IRS) will purchase more than 12,300
Compaq desktop computers and more than 11,000 Compaq laptop
computers for a total of more than $35 Million. See, HP
release.
HP stated that the IRS will purchase Compaq Evo D500 desktops.
The HP web site states that individual units sell for as low
as $954. HP stated that the IRS will purchase Compaq Evo N800
laptops. The HP web site states that individual units sell for
as low as $1,719.
The taxpayers will pay, on average, about $1,500 per computer
for the IRS.
Meanwhile, the Treasury
Inspector General for Tax Administration (TIGTA) released
a report
on November 29, 2001, titled "Management Advisory Report:
Review of Lost or Stolen Sensitive Items of Inventory at the
Internal Revenue Service". This report stated that
"For the past 3 years, the IRS reported approximately
2,300 missing computers". The report did not estimate the
number of missing computers, the loss of which went
unreported.
See also, letter
of January 7, 2002, from Sen.
Charles Grassley (R-IA) to Office of Management and
Budget (OMB) Director Mitch Daniels, and story titled
"Sen. Grassley Condemns IRS for 2,300 Missing
Computers" in TLJ
Daily E-Mail Alert No. 342, January 9, 2002. |
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| Bush Talks About Judge
Picking |
8/7. President Bush gave a speech
at a Pickering for Congress event in Jackson, Mississippi. Rep. Chip Pickering
(R-MS) is a member of the House Commerce
Committee and its Telecom and Internet Subcommittee. Bush
stated that "it's important that you're represented by
this good man. He is what we call and up and comer."
Bush also used the occasion to advocate the election to
Republican Senators, to enable him to obtain Senate
confirmation of his judicial appointments. The Democratic
controlled Senate
Judiciary Committee rejected Bush's nomination of Rep.
Pickering's father to be a Judge on the U.S. Court of Appeals
(5thCir).
Bush said this: "And I want to say something as clearly
as I can about why we need to control the United States
Senate. I put a good man up named Judge Pickering for a higher
court and the people who control the Senate maligned this good
man's character. They didn't treat him right. It's not good
for America to have this kind of politics -- take a good
person and not treat him well, not give him the benefit of the
doubt. We need to change the United States Senate, so that we
end this kind of politics on the judiciary and allow good
people, good, honorable judges to serve our nation. The Senate
did wrong by Judge Pickering. I did right by naming him to the
bench." |
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| People and Appointments |
8/6. John Collingwood, the Federal Bureau of Investigation's
(FBI) Assistant Director for the Office of Congressional and
Public Affairs, will retire. See, release.
8/7. Lynne Hunt was named Assistant Director of the
Inspection Division of the Federal
Bureau of Investigation (FBI). The Inspective Division's
mission is to provide independent oversight of all FBI
investigative and administrative operations. Hunt is a long
time FBI employee. See, FBI
release.
8/7. BT appointed Hanif Lalani Chief Financial Officer
of BT Wholesale. He replaces Russ Houlden, who left to
become finance director at the Lovells law firm. See, BT
release.
8/6. Jonathan Miller was named Chairman and Chief
Executive Officer of AOL Time Warner Inc.'s America Online,
Inc. division. He was formerly President and CEO of USA
Interactive's USA Information and Services. See, release. |
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| More News |
8/2. A grand jury of the U.S. District Court
(CDCal) returned indictments against Glenn Cazenave and
Amaya Marinella alleging that they unlawfully conspired to
enter Commerce One's
computer systems and delete a software package that was being
developed for a foreign client. See, CCIPS
release.
8/8. Qwest announced its
financial results for the second quarter of 2002. See, Qwest
release. |
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| About Tech Law Journal |
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are discounts for entities with multiple subscribers. Free one
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subscriptions are available for law students, journalists,
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after writing. See, subscription
information page.
Contact: 202-364-8882; E-mail.
P.O. Box 4851, Washington DC, 20008.
Privacy
Policy
Notices
& Disclaimers
Copyright 1998 - 2002 David Carney, dba Tech Law Journal. All
rights reserved. |
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| Thursday, August 8 |
Day one of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC.
9:00 AM. Qwest Communications
will release its second quarter 2002 results at approximately
6:00 AM EDT. It will host a conference call at 9:00 AM EDT.
The participants will include Ch/CEO Richard Notebaert and
VCh/CFO Oren Shaffer. The event will be web cast.
See, Qwest
release.
9:30 AM. The FCC will hold a
meeting. The agenda
includes three items: (1) consideration of a NPRM regarding
digital broadcast copy protection; (2) consideration of a
Second Report and Order and Second Memorandum Opinion
regarding its policies and rules for conversion of the
broadcast television service to digital technology; this is MM
Docket No. 00-39; and (3) consideration of a Report and Order
regarding various Part 22 rules that have become outdated due
to technological change, increased competition in CMRS, or
supervening rules; this is WT Docket No. 01-108. Press
contact: Maureen Peratino or David Fiske at 202 418-0500. See,
FCC
release.
9:45 AM. The U.S.
District Court (DC) will hold a conference hearing in EPIC
v. DOJ, D.C. No. 2002 cv 0063. The EPIC filed
a complaint
against the Justice Department and Treasury Department,
pursuant to the under the Freedom of Information Act (FOIA),
seeking records pertaining to the federal government's
purchase of personal information of individuals from private
sector database companies. Judge Colleen Kotelly will preside.
Location: 333 Constitution Ave. NW, Courtroom 11.
11:00 AM. The Federal Trade
Commission (FTC) will hold a press conference to announce
a the settlement terms of an undisclosed FTC enforcement
action. FTC Chairman Timothy Muris is scheduled to appear.
Reporters may also listen via teleconference (the number to
call is 1 866 552-7206; the chairperson is Bruce Jennings; and
the confirmation number is 13287196). See, FTC release.
Location: FTC Main, Room 432, 600 Pennsylvania Ave., NW.
Deadline to submit comment to the FCC regarding
the NTIA's
July 23 document
titled "An Assessment of the Viability of Accommodating
Advanced Mobile Wireless (3G) Systems in the 1710-1770 MHz and
2110-2170 MHz Bands". The FCC has incorporated this
viability assessment into its Advanced Wireless Services proceeding
in ET Docket No. 00-258. See, public
notice [PDF]. |
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| Friday, August 9 |
Day two of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC.
9:00 AM - 3:00 PM. The FCC's Spectrum Policy Task Force
will hold a public workshop titled "Spectrum Rights
and Responsibilities". First, Thomas Krattenmaker
(Mintz Levin) will give an historical view of spectrum rights
and responsibilities. Second, there will be a panel titled
"New Technologies and Spectrum Usage Rights". The
moderators will be Charla Rath (Verizon Wireless) and Paul
Kolodzy (FCC); the panelists will be David Farber
(University of Pennsylvania), David
Siddall (Paul Hastings),
Peter Pitsch (Intel),
Victor Tawil (MSTV), Steve
Sharkey (Motorola),
Bruce Fette (General
Dynamics), and Gee Rittenhouse (Lucent). Third, there will
be a panel titled "Modeling Licensed and Unlicensed
Spectrum Usage Rights". The moderators will be Michele
Farquhar (Hogan & Hartson)
and David Furth (FCC); the panelists will be Martin
Cave (Warwick Business School), Tom
Hazlett (Manhattan
Institute), Steve Stroh (Focus On Broadband Wireless
Internet Access), Michael
Calabrese (New
America Foundation), Larry Miller (LMCC/ AASHTO), David
Wye (AT&T Wireless), Michael Kurtis (Kurtis & Associates),
Jennifer Warren (Lockheed
Martin), and Joe Gatusso (NTIA). See, FCC
notice [PDF]. Webcast. Location: FCC, Commission Meeting
Room, 445 12th Street, SW. |
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| Saturday, August 10 |
| Day three of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC. |
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| Sunday, August 11 |
| Day four of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC. |
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| Monday, August 12 |
Day five of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC.
Deadline to submit reply comments to the Federal Communications Commission
(FCC) in response to its Notice of Proposed Rule Making (NPRM)
"regarding the sunset of the statutory requirements under
section 272 imposed on Bell Operating Companies (BOCs) when
they provide in-region, interLATA services and seeks comment
on whether, and if so, under what conditions, the structural
and nondiscrimination safeguards established in section 272
should be extended by the Commission either generally or with
respect to specific states." See, notice
in the Federal Register, June 21, 2002, Vol. 67, No. 120, at
Pages 42211 - 42215. |
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| Tuesday, August 13 |
Day six of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC.
10:00 AM - 12:00 NOON. The State Department's International
Telecommunication Advisory Committee (ITAC) will meet. See, notice
in Federal Register. Location: Room 1105, State Department. |
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| Wednesday, August 14 |
| 1:00 - 5:00 PM. The Department of Commerce's (DOC) National Telecommunications
and Information Administration (NTIA) will host a
roundtable meeting regarding the convergence of communications
technologies, including the Telephone Number Mapping (ENUM)
Protocol that facilitates convergence between the Internet and
the public switched telephone network. See, NTIA
notice and notice
in the Federal Register. For more information, contact Wendy
Lader, NTIA Office of Policy Analysis and Development, at 202
482-1150 or wlader
@ntia.doc.gov. Location: Room 4830, DOC, 1401 Constitution
Ave., NW. |
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Highlights of ABA Meeting
Friday, August 9 |
11:00 AM. Program titled "Justice Department Takes
Action Against Credit Card Companies For Unfair Trade
Practices". Location: Mayflower, Senate Room,
Promenade Level.
2:00 PM. Program titled "Whatever Happened to
Broadband?" Location: Marriott Wardman Park,
Cotillion Ballroom South, Mezzanine Level.
2:30 PM. Program titled "Antitrust and Intellectual
Property for the Transactional Lawyer". Location:
Hyatt Regency, Regency Foyer, Ballroom Level.
3:00 PM. Program titled "Adapting the Legal
Requirements for Electronic Promissory Notes and Electronic
Chattel Paper to Commercial Realities". Location:
Hyatt Regency, Regency A, Ballroom Level.
3:45 PM. Program titled "Information Security: The
Role of Law and Lawyers". Location: Marriott Wardman
Park, Cotillion Ballroom South, Mezzanine Level. |
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