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News, records, and analysis of legislation, litigation, and regulation affecting the computer, internet, communications and information technology sectors

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Tech Law Journal
Daily E-Mail Alert
Sept. 7, 2000
6:30 AM ET.
Alert No. 15.

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News Briefs

9/6. U.S. District Judge Jed Rakoff released his ruling in which found that willfully infringed Universal Music Group's copyrights, and set damages at $25,000 for each compact disk that it digitally copied. The number of such disks has not yet been determined. CEO Michael Robertson promised to appeal. RIAA SVP and General Counsel Cary Sherman stated in a release that "This should send a message that there are consequences when a business recklessly disregards the copyright law. We trust this will encourage those who want to build a business using other people's copyrighted works to seek permission to do so in advance." See also, release.
9/6. Senate Judiciary Committee held a hearing on the FBI's Carnivore e-mail surveillance system. Sen. Orrin Hatch (R-UT) and Sen. Pat Leahy (D-VT) conducted the hearing, along with a brief appearance by Sen. Specter. These Senators did not criticize the Carnivore system as did many members of the House Judiciary Committee at their July 24 hearing. Vint Cerf of WorldCom testified that he is satisfied with Carnivore. See, prepared statements: Sen. Hatch, Sen. Leahy, Donald Kerr (FBI), Kevin DiGregory (DOJ), Vint Cerf (WorldCom), Jeffrey Rosen (GWU), James Dempsey (CDT).
9/6. The House Judiciary Committee's Subcommittee on the Constitution held a hearing on HR 5018, the Electronic Communications Privacy Act of 2000, HR 4987, the Digital Privacy Act of 2000, HR 4908, the Notice of Electronic Monitoring Act. See, prepared statements of witnesses: Kevin DiGregory (DOJ), James Dempsey (CDT), Gregory Nojeim (ACLU), Robert Corn-Revere, (Hogan & Hartson), Marc Rotenberg, (EPIC), Lewis Maltby, (NWI), Kenneth Segarnick (United Messaging), and Michael Overly (Foley & Lardner).
9/6. Rep. Dick Armey (R-TX) released a statement reaffirming his opposition to the Carnivore system.
9/6. The SEC announced 15 enforcement actions against 33 people and companies for Internet securities fraud. All actions involve pump-and-dump stock manipulations in which the defendants spread false information through electronic newsletters, web sites, e-mail messages, and posts on message boards. Previous SEC actions have targeted illegal touting and sale of bogus securities. SEC Director of Enforcement Richard Walker said that "What used to require a network of professional promoters and brokers, banks of telephones and months to accomplish can now be done in minutes by a single person using the Internet and a home computer. Thinly traded microcap stocks are particularly susceptible to online manipulations." See, SEC release.
9/6. The EIA sent a letter to Rep. Dick Gephardt (D-MO) in support of passage of an H1B bill. The TIA sent a letter to Members of Congress and others in support of passage of H1B bills HR 3983 and S 2045.
9/6. RSA Security released the RSA public key encryption algorithm patent into the public domain two weeks before the Sept. 20 expiration of its 17 year term. U.S. Patent No. 4,405,829 is the standard for encryption that secures the majority of the e-business conducted on the Internet. See, RSA release.
9/6. The FTC's Bureau Consumer Protection released a report titled "Consumer Protection in the Global Electronic Marketplace: Looking Ahead." The report's recommendations include convergence of national consumer protection laws, and development of arrangements for cross-border judgment recognition and enforcement. The report discusses, but takes no position on, jurisdiction or choice of law in international consumer e-commerce disputes (i.e., country of origin v. country of destination). See, FTC release.
9/6. The FTC approved the publication of a Federal Register notice describing the submission of proposed self-regulatory guidelines by TRUSTe. The notice addresses the safe harbor requirements of 312.10 of the Children's Online Privacy Protection Act (COPPA), and requests public comments. See, TRUSTe submission [PDF].
Editor's Note: This column includes all News Briefs added to Tech Law Journal since the last Daily E-Mail Alert. The dates indicate when the event occurred, not the date of posting to Tech Law Journal.
New Documents

SEC: Complaint in SEC v. Pridgeon alleging insider trading, 9/1/00 (HTML, TLJ).
EIA: Letter to Rep. Gephardt re H1B bills, 9/6/00 (HTML, TLJ).
TIA: Letter to Members of Congress re H1B bills, 9/6/00 (HTML, TLJ).
FTC: Consumer Protection in the Global Electronic Marketplace: Looking Ahead, 9/6/00 (HTML, FTC).
Sen. Judiciary Comm.: Prepared Statements of Senators and Witnesses at hearing on Carnivore, 9/6/00 (HTML, SJC).
Rep. Armey: Statement opposing Carnivore, 9/6/00 (HTML, TLJ).
FTC: Federal Register notice regarding proposed guidelines for COPPA, 9/6/00 (HTML, FTC).
New and Updated Sections

News from Around the Web (updated daily).
Quote of the Day

"Individuals who use the Internet for personal communications, purchases, and hobbies are justifiably reluctant to allow an Orwellian Big Brother to monitor which web sites they visit or what messages they send through cyberspace." Sen. Orrin Hatch (R-UT) on Carnivore.

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