Internet News -- July Through September 1999

Rep. Cox and Sen. Wyden Introduce Internet Tax Resolution. (9/30/99) Rep. Chris Cox and Sen. Ron Wyden introduced a resolution on Thursday, September 30 calling on the United States to support global Internet tax freedom. It calls for a permanent moratorium on global Internet e-commerce tariffs, a ban on multiple, discriminatory, and special Internet taxes, and a condemnation of the U.N. proposal that nations impose a bit tax. See, Cox-Wyden resolution.

Administration Addresses Encryption Reform Proposal. (9/29/99) Four representatives of the Clinton administration discussed the September 16 proposals to liberalize encryption export restraints, and other matters, at a luncheon forum in Washington DC hosted by the Internet Caucus. Administration representatives promised to consult with industry regarding new regulations, to be drafted by December 15. Meanwhile, Rep. Goodlatte said that the SAFE Act is "alive and well." See, transcript.

Rep. Weldon Criticizes Administration Encryption Reversal. (9/29/99) Rep. Curt Weldon harshly criticized the administration's "about face in policy" on encryption at a luncheon forum on Capitol Hill on Tuesday, September 28. Rep. Weldon is a strong supporter of the administration's previous policy.

Rep. Meehan Introduces Bill to Ban Internet Sales of Tobacco to Minors. (9/27/99) Rep. Meehan introduced the Tobacco Free Internet for Kids Act in the House on September 22. The bill bans the sale of tobacco products to minors over the Internet, and gives states the power to obtain injunctions against violators in federal court. See, HR 2914 IH.

FTC Obtains Injunction of Page Jacking and Mouse Trapping Scam. (9/24/99) The Federal Trade Commission obtained a preliminary injunction against several individual and corporate defendants in Australia and Portugal whose web scam to promote pornography sites involved "page jacking" and "mouse trapping." The FTC plead in its complaint that these practices "impair the growth of the Internet as a commercial medium."

How the "Page Jacking" and "Mouse Trapping" Web Scam Works. (9/24/99) Pleadings filed by the Federal Trade Commission in the case FTC v. Pereira reveal some of the details of how a page jacking and mouse trapping scam works. The techniques are remarkable easy and quick to perform, thus enabling the scam artist to build up a large base of bogus web pages which divert traffic into his own web sites.

NTT President Addresses Reorganization and Interconnection Charges. (9/21/99) NTT Corp. President Miyazu addressed NTT reorganization, and deflected criticism about NTT's monopolistic practices, at a lecture in Washington DC on Tuesday, September 21.

Sen. McCain Introduces Bill to Expand the Internet Tax Freedom Act. (9/22/99) Sen. John McCain introduced a bill on Wednesday, September 22, that would make permanent the Internet Tax Freedom Act's three year ban on new Internet taxes, and expand the scope of the act to prohibit sales and use taxes on good and services sold through electronic commerce. See, copy of McCain bill.

Clinton Administration Talks Encryption. (9/17/99) With the House of Representatives close to a vote on the Security and Freedom through Encryption (SAFE) Act, the Clinton administration announced a new set of encryption policy proposals, including liberalization of export restraints.

Reaction to Clinton Encryption Proposals. (9/17/99) The Clinton administration's encryption policy proposals of September 16 won guarded praise from many encryption rights proponents, including Rep. Bob Goodlatte and Rep. Zoe Lofgren, the sponsor and lead co-sponsor of the SAFE Act, and Sen. John McCain and Sen. Conrad Burns, sponsor and cosponsor of the PROTECT Act.

Senate Committee Holds Hearing on Internet Hate Speech. (9/16/99) The Senate Judiciary Committee held a hearing on hate speech on the Internet on Tuesday, September 14. While Senators suggested legislation may be appropriate, Wade Henderson, of the Leadership Conference on Civil Rights, cautioned against government regulation.

Open Access Proponents File Amicus Briefs in Portland Case. (9/15/99) Several entities which support open access to broadband cable Internet facilities filed friend of the court briefs with the U.S. Court of Appeals for the Ninth Circuit on Tuesday, September 14. A brief filed on behalf of several consumer groups argued that free speech interests would be furthered by Portland's open access decision. See, consumer amici brief.

Gephardt, Lofgren and Eshoo Write Clinton on Encryption Bill. (9/14/99) Representatives Richard Gephardt, Zoe Lofgren and Anna Eshoo wrote a letter to President Bill Clinton today urging him to support HR 850, the SAFE Act. See, letter.

Tony Blair Promises No Government Mandated Key Escrow. (9/13/99) British Prime Minister Tony Blair gave a speech on the information economy and Internet policy on Monday, September 13, 1999. He encouraged the British to embrace the Internet, advocated industry self-regulation, outlined government efforts to promote computer literacy, and promised that the government would not mandate key escrow. See, Blair speech.

Secretary Daley Backs Duty Free Cyberspace. (9/13/99) Secretary of Commerce William Daley told the GBDe conference in Paris today that the U.S. will seek a permanent extension of the moratorium on tariffs in cyberspace. He also praised industry self-regulation measures to protect consumer privacy online. See, Daley speech.

Portland Files Opposition Brief in Cable Access Appeal. (9/12/99) The City of Portland, the Oregon Internet Service Providers' Association, and GTE and U S West filed their opposition briefs with the Ninth Circuit in AT&T v. Portland on September 7. AT&T's reply brief, and amicus briefs of open access proponents, are due this week. See, briefs of Portland, ORISPA, and GTE/USWest.

AT&T and Friends File Briefs in the Portland Cable Access Case (9/3/99) News Analysis. AT&T and its supporters have filed their briefs with the Court of Appeals in the Portland cable access case. They predictably argue that the City of Portland does not have authority to mandate "open access" to broadband Internet access provided over cable facilities. However, their legal reasoning includes the argument that the FCC has authority to regulate this form of broadband Internet access as a "cable service", which would add to the FCC's Internet regulatory powers.

Is Broadband Internet Access a Title 47 Cable Service? (9/3/99) News Analysis. There is one thing that almost everyone involved in the Portland broadband cable Internet access case can agree upon -- that the Cable Act is the controlling legal authority in the case. Yet the language of the Act which defines its scope does not include broadband Internet services provided over cable facilities.

The Consequences of the Portland Case for the FCC and the Internet (9/3/99) This is the third news analysis article in a three part series on the Portland cable access case.

FCC Orders Broadcasters to Accept Political Candidates' Ads of Non Standard Length. (9/9/99) The Federal Communications Commission issued an order on September 7 which requires broadcasters to accept advertisements from federal political candidates that are not of standard length. The decision opens the way for candidates to buy five minute slots. On a related note, FCC Chairman Kennard gave a speech on September 2 in which he called Internet audio "broadcast". See, FCC Order and Kennard speech.

FCC CALEA Decision Upsets Industry and Privacy Groups. (8/28/99) The FCC released a summary of its CALEA implementation decision on Friday, August 27. Industry and privacy groups accused the FCC of exceeding its authority under the Communications Assistance for Law Enforcement Act, placing unreasonable financial burdens on industry, and violating the privacy and Constitutional rights of Americans. Janet Reno, Louis Freeh, and the companies that make the affected equipment were pleased.

9th Circuit Rules in Domain Name Trademark Case. (8/25/99) The U.S. Court of Appeals for the Ninth Circuit issued its opinion in the Avery Dennison v. Jerry Sumpton cybersquatting case on Monday, August 23, 1999. The Court held that Sumpton's domain name registration of the trademarked terms "Avery" and "Dennison" did not constitute trademark dilution. See, Appeals Court Opinion.

Free Republic Case Delayed by Discovery Dispute. (8/20/99) A pretrial discovery dispute has delayed the cyber copyright case, LA Times v. Free Republic. On Monday, August 16, the court rescheduled a hearing on cross motions to October 25. The LA Times has sued to stop the Free Republic from republishing its copyrighted news stories.

Court Rules in AOL v. AT&T Trademark Case. (8/17/99) U.S. District Court Judge Claude Hilton ruled on Friday, August 13, that YOU HAVE MAIL, BUDDY LIST, and IM are generic. AOL had sought to enjoin AT&T's use of these marks. See, Order and Opinion.

FCC Files Amicus Curiae Brief in Cable Access Case. (8/16/99) The Federal Communications Commission filed a "friend of the court" brief today with the Ninth Circuit in AT&T v. Portland, an appeal from a trial court decision upholding the City of Portland's open cable access decision. See, FCC Brief.

Sen. Santorum Introduces Filtering Bill. (8/15/99) Sen. Rick Santorum introduced a bill pertaining to the use of filtering software by schools and libraries receiving e-rate subsidies. It would allow schools and libraries far more discretion than the bills sponsored by Sen. John McCain and Rep. Bob Franks. See, S 1545 IS.

Kathleen R. Library Filtering Appeal Proceeds. (8/14/99) Kathleen R. filed her original appeal brief with the Court of Appeal of the State of California on July 16. She is attempting to compel the Livermore Public Libraries to install filtering software on Internet access computers used by children. The attorneys have agreed to an extended briefing schedule that means that the Court will probably not decide the appeal until well into the year 2000. See, Appeal Brief.

Senators Seek More Gov Information on the Internet. (8/8/99) Sen. John McCain and Sen. Patrick Leahy called for the Congress, courts, and federal agencies to put more government information online at a press conference on Capitol Hill on Wednesday, August 5. At the same event the Center for Democracy and Technology and OMB Watch announced a list of the "Ten Most Wanted Government Documents."

Sen. Hollings Introduces Bill to Tax Internet Sales. (8/2/99) Sen. Ernest Hollings introduced a bill on July 26 that would impose a national tax on Internet and direct mail sales. See, S 1433 IS.

Fifth Circuit Upholds FCC's E-Rate Program. (8/1/99) The U.S. Court of Appeals for the Fifth Circuit on Friday, July 30, upheld most of the FCC's order implementing the universal service support provisions of the 1996 Telecom Act, including the schools and libraries program. See, Fifth Circuit Opinion.

Rep. Gordon Promotes E-Signature Guidelines for Federal Agencies. (7/30/99) Rep. Bart Gordon wants Congress to pass a bill that would direct the Commerce Department to establish voluntary guidelines for federal agencies to use in complying with the requirement that they accept electronic signatures by 2003. Interoperability is his main concern. See, Gordon Amendment.

Telecom Subcommittee Marks Up E-Signatures Bill. (7/30/99) The House Telecom Subcommittee amended and approved HR 1714, the E-SIGN Act, on Thursday morning, July 29 by a unanimous voice vote. A dispute between Rep. Bliley and Rep. Eshoo over how much leeway to allow state legislatures was settled by a compromise amendment offered by Rep. Tauzin which allows states four years to act. See, Tauzin amendment.

Telecom Subcommittee Approves Database Bill. (7/30/99) The House Telecom Subcommittee amended and approved HR 1858, a bill regarding database protection, on Thursday, July 29.

Online Privacy Bill Runs Aground. (7/27/99) The Senate Telecom Subcommittee held a hearing on legislation to protect online privacy on Tuesday, July 27. Sen. Burns and Sen. Wyden are cosponsoring S 809, the Online Privacy Protection Act. Earlier this month the FTC issued a report opposing any new legislation at this time.

Rep. Istook Introduces Filtering Bill. (7/25/99) Rep. Ernest Istook again introduced a bill that would require all schools and libraries receiving federal funds to acquire or operate computers to use a filtering technology to protect children from Internet porn. See, HR 2560 IH.

House Finance Subcommittee Approves Database Bill. (7/22/99) The House Finance Subcommittee approved by unanimous voice vote an amended version of HR 1858, a bill pertaining to theft of databases. The Subcommittee amended Title II of the bill, regarding protection of real-time market data. See, Substitute Amendment.

House Finance Subcommittee Approves E-SIGN Act. (7/22/99) The House Finance Subcommittee approved by unanimous voice vote an amended version of HR 1714, a bill providing for the acceptance of electronic signatures. The Subcommittee amended Title III, pertaining to electronic records and signatures used in securities trading. See, Substitute Amendment.

Reaction to FTC Report Opposing Privacy Legislation. (7/16/99) The FTC's July 13 report which opposed enactment of any new online privacy laws at this time has been commended by the administration, and industry groups, but criticized by privacy groups and legislators seeking to pass online privacy bills.

House Panel Holds Hearing on Online Privacy. (7/14/99) Robert Pitofsky, Chairman of the Federal Trade Commission, testified before the House Telecom Subcommittee that "legislation to address online privacy is not appropriate at this time." While most members of the subcommittee agreed, or stated no position, Rep. Ed Markey complained bitterly that legislation is necessary.

FTC Opposes Online Privacy Legislation. (7/13/99) The Federal Trade Commission released a report which concludes that "legislation to address online privacy is not appropriate at this time." It states that online companies have made progress towards self-regulation, as evidenced by new surveys showing increased adoption of privacy policies, and use of online seal programs.

Gov Report Says Internet Use Is Soaring. (7/9/99) The Department of Commerce released a report on Thursday, July 8, which states that "access to computers and the Internet has soared," but that the poor and racial minorities are in danger of being left behind, so the government should facilitate Internet access. See, Falling Through the Net: Defining the Digital Divide.

Economist Says Internet Use Is Limited. (7/9/99) Bruce Owen, President of Economists Incorporated, told an audience at the American Enterprise Institute on July 8 that home Internet use is not growing very fast, and that the government should stay out of subsidizing access to the Internet. He delivered a lecture on his new book, The Internet Challenge to Television.

Tauzin Introduces High Speed Internet Access Bill. (7/5/99) Rep. Billy Tauzin and Rep. John Dingell introduced a bill to deregulate some high speed data services on July 1, 1999. This is just one of a growing number of bills designed to speed the deployment of high speed Internet access to the public. Like many other pending bills, it gives regulatory breaks to the local phone companies to spur the deployment of ADSL service. See, HR 2420 IH.