| House Votes for Extension
                  of Export Administration Act | 
               
              
                7/30. The House passed HR 2602 by a voice vote. This bill
                  would extend the Export Administration Act, which is set to
                  expire on August 20, until November 20. The extension would
                  provide the Congress more time to work on replacement
                  legislation to update the current export control regime.
                   
                  The Senate Banking
                  Committee passed S 149,
                  the Export Administration Act of 2001, sponsored by Sen. Mike Enzi (R-WY), on
                  March 22 by a vote of 19 to 1. That bill is supported by
                  the Bush administration, but opposed by several Republican
                  Senators who assert that it would jeopardize national
                  security. S 149 would ease restraints on the export of
                  most dual use products, such as computers and software. It
                  would end export controls on high performance computers based
                  upon MTOPS.
                  However, it would increase penalties for remaining violations.
                  There are several bills pending in the House; the House
                  International Relations Committee has held several hearings. | 
               
             
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                | Senate Judiciary Committee
                  Begins Mueller Hearing | 
               
              
                7/30. The Senate
                  Judiciary Committee held the first day of hearings on the
                  nomination of Robert Mueller to be Director of the
                  Federal Bureau of Investigation. Sen. Patrick Leahy (D-VT),
                  Chairman of the Committee, said in his opening
                  statement that "The American public has lost some
                  confidence in the Bureau. This is not just a PR problem. This
                  erosion of public trust threatens the FBI's ability to perform
                  its mission." See also, opening
                  statement of Sen. Orrin Hatch (R-UT), the ranking
                  Republican.
                   
                  Mueller stated in his prepared
                  testimony that "Waco, Ruby Ridge, the FBI lab, Wen Ho
                  Lee, Robert Hanssen, and the McVeigh documents – these
                  familiar names and events remind us all that the FBI is far
                  from perfect and that the next Director faces significant
                  management and administrative challenges." He also stated
                  that "while new technologies create new possibilities for
                  the global economy, they also present new opportunities for
                  enterprising criminals. Here, as well, the FBI is responsible
                  for ensuring the security of our technological infrastructure
                  and for bringing cybercriminals to justice."
                   
                  The hearing continues on July 31 at 10:00 AM in Room 216 of
                  the Hart Building. | 
               
             
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                | More News | 
               
              
                7/30. eBay filed a
                  complaint in U.S. District Court (NDCal)
                  against BidBay alleging trademark
                  infringement.
                   
                  7/30. BellSouth filed
                  a request with the Tennessee
                  Regulatory Authority seeking an endorsement for a Section
                  271 application to the FCC for permission to provide in region
                  interLATA services. See, BS
                  release.
                   
                  7/30. The Florida Public
                  Service Commission began hearings on the petition by
                  AT&T, TCG South Florida, and MediaOne for structural
                  separation of BellSouth Telecommunications into two
                  distinct wholesale and retail corporate subsidiaries. The
                  Regional Bell Operating Companies (RBOCs) oppose structural
                  separation. See, BellSouth
                  release and Verizon
                  release. | 
               
             
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                | Code Red | 
               
              
                7/30. Officials from government agencies, groups and
                  Microsoft held a press conference to request that companies
                  and others running servers with Microsoft's Internet
                  Information Services (IIS) install a patch provided by
                  Microsoft that prevents the Code Red worm from infecting
                  servers. See, Microsoft
                  release.
                   
                  The FBI's National
                  Infrastructure Protection Center (NIPC) explained the
                  threat: "The worm scans the Internet, identifies
                  vulnerable systems, and infects these systems by installing
                  itself. Each newly installed worm joins all the others causing
                  the rate of scanning to grow rapidly. This uncontrolled growth
                  in scanning directly decreases the speed of the Internet and
                  can cause sporadic but widespread outages among all types of
                  systems. Code Red is likely to start spreading again on July
                  31st, 2001 8:00 PM EDT and has mutated so that it may be even
                  more dangerous. This spread has the potential to disrupt
                  business and personal use of the Internet for applications
                  such as electronic commerce, email and entertainment."
                  See, NIPC
                  Alert 01--016 (7/29). | 
               
             
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                | About Tech Law Journal | 
               
                Tech Law Journal is a free access web site
                  and e-mail alert that provides news, records, and analysis of
                  legislation, litigation, and regulation affecting the computer
                  and Internet industry. This e-mail service is offered free of
                  charge to anyone who requests it. Just provide TLJ an e-mail
                  address. 
                   
                  Number of subscribers: 1,899. 
                  Contact: 202-364-8882; E-mail. 
                  P.O. Box 15186, Washington DC, 20003. 
                  Privacy
                  Policy 
                  Notices
                  & Disclaimers 
                  Copyright 1998 - 2001 David Carney, dba Tech Law Journal. All
                  rights reserved. | 
               
             
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                | FTC NPRM on GLB Standards
                  for Security of Customer Financial Data | 
               
              
                | 7/30. The FTC published in its web
                  site a copy of a notice
                  of proposed rule making (NPRM) to be published in the
                  Federal Register on the subject of standards relating to
                  administrative, technical, and physical information safeguards
                  for financial institutions subject to the FTC's jurisdiction.
                  The Gramm Leach Bliley (GLB) Act, passed during the last
                  Congress, requires the FTC and other agencies to promulgate
                  rules establishing standards for the protection of customers'
                  financial data. See also, FTC release. | 
               
             
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                | Court Affirms Injunction of
                  Unlicensed Broadcaster | 
               
              
                7/30. The U.S.
                  Court of Appeals (6thCir) issued its opinion
                  in USA
                  v. Szoka, a case involving an unlicensed FM
                  radio micro broadcaster. Of course, the FCC ordered him to
                  stop, the local District Court granted the FCC an injunction,
                  and the Appeals Court affirmed. However, the Appeals Court's
                  reconciliation of the issuance of an injunction with the First
                  Amendment and the law of injunction makes interesting reading.
                   
                  Jerry Szoka. The appellant broadcasted dance music, and
                  news and information for gays and lesbians, in Cleveland,
                  Ohio, on empty frequency (96.9 FM) at a low power
                  (48.8 watts). He did not have a license from the FCC. He
                  did not seek a license. He just started broadcasting.
                   
                  FCC Licensing. The National Radio Act of 1927
                  nationalized spectrum, and created a National Radio Commission
                  to issue licenses in the "public interest". The
                  Communications Act of 1934 continued this framework, and
                  transferred licensing and regulatory authority to the FCC,
                  which licenses spectrum to this day. The Supreme Court
                  declined to extend First Amendment protections afforded other
                  media to broadcast media in the landmark decision, NBC v.
                  FCC, 319 U.S. 190 (1943). The Court reaffirmed this
                  holding in Red Lion v. FCC, 395 U.S. 367 (1969).
                   
                  Low Power FM. The FCC recently instituted a program for
                  licensing non-commercial low power FM broadcasters -- over the
                  strenuous objections of commercial broadcasters and National
                  Public Radio. However, this program does not extend to those
                  who have violated FCC licensing rules in the past. Hence,
                  Szoka is not eligible.
                   
                  Legal Proceedings. The FCC moved to shut Szoka down.
                  There is a separate proceeding in Washington DC. The FCC
                  issued a cease and desist order. An administrative law judge
                  rejected Szoka's First Amendment arguments. Szoka has
                  petitioned for review by the U.S. Court of Appeals (DCCir).
                  Oral arguments are next month. However, Szoka ignored the
                  cease and desist order, so the FCC also filed a complaint in
                  U.S. District Court (NDOhio)
                  against Szoka seeking an injunction. It is the issuance of a
                  permanent injunction by the District Court in Cleveland that
                  is the subject of the present appeal.
                   
                  Public Interest. Szoka raised the obvious, but futile,
                  argument that the FCC's use of the courts to obtain an
                  injunction of his broadcast operation implicates the First
                  Amendment, to no avail. Szoka (through his attorney, Mark
                  Wallach, of the Cleveland law firm of Calfee Halter &
                  Griswold) also argued that for the government to obtain an
                  injunction, it had to satisfy not only the Communications Act
                  of 1934, but also the equitable standards for issuance of an
                  injunction -- likelihood of success on the merits, irreparable
                  injury, absence of substantial harm to others, and public
                  interest in issuance of the injunction. The government argued
                  against application of equitable standards to the FCC. Thus,
                  it argued that in managing spectrum in the public interest,
                  the FCC could not actually be held to a public interest
                  standard. The Court of Appeals agreed, and so held.
                   
                  The District Court, while granting the FCC its injunction, had
                  stated in dicta that "the Court is inclined to agree that
                  the FCC's non-commercial low-power broadcasting ban smacks of
                  favoritism towards wealthier interest groups who do not wish
                  to share the airwaves with non-commercial stations." It
                  also wrote that the FCC's ban on low-power stations would run
                  "contrary to the FCC's obligation to distribute the
                  airwaves in a manner that furthers the 'public interest' and,
                  thus, would be inconsistent with the First Amendment." | 
               
             
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                | Court Upholds First
                  Amendment Right of Unlicensed Printer | 
               
              
                | 7/30. The U.S.
                  Court of Appeals (8thCir) issued its opinion
                  [PDF] in Steele
                  v. Bemidji. This is another first Amendment
                  case involving the government licensing of speech -- in this
                  case, print speech. Steele filed a complaint in U.S. District
                  Court (DMinn)
                  against the City of
                  Bemidji, city officials, and others, seeking relief from
                  actions by Bemidji to prevent him from distributing his
                  newspapers. He did not have a solicitation permit, an
                  obstruction permit, or post a bond. The district court granted
                  summary judgment to the defendants. The Appeals Court reversed
                  as to Steele's First Amendment claims. | 
               
             
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                | Tuesday, July 31 | 
               
              
                10:00 PM. The Senate
                  Judiciary Committee will continue its hearing on the
                  nomination of Robert Mueller to be Director of the FBI.
                  Location: Room 216, Hart Building.
                   
                  POSTPONED. 10:00
                  AM. The House
                  Commerce Committee's Subcommittee on Oversight and
                  Investigations will hold a hearing for titled "How Secure
                  is Sensitive Commerce Department Data and Operations? A Review
                  of the Department's Computer Security Policies and
                  Practices."
                   
                  10:00 AM. The House
                  Commerce Committee's Subcommittee on Commerce, Trade, and
                  Consumer Protection will hold a hearing titled Current
                  Issues Before the Financial Accounting Standards Board.
                  Location: Room 2322, Rayburn Building.
                   
                  10:00 AM. The House
                  Government Reform Committee's Technology and Procurement
                  Policy Subcommittee will hold a hearing titled "Public
                  Service for the 21st Century: Innovative Solutions to the
                  Federal Government's Technology Workforce Crisis".
                  Location: Room 2154, Rayburn Building.
                   
                  10:00 AM. The House
                  Transportation Committee's Highways and Transit
                  Subcommittee will hold a hearing on red light cameras.
                  Location: Room 2167, Rayburn Building.
                   
                  10:00 AM. The Senate
                  Finance Committee will hold a hearing on several pending
                  nominations, including Rosario Marin to be Treasurer of
                  the United States and Jon Huntsman to be a Deputy U.S.
                  Trade Representative. Location: Room 215, Dirksen Building.
                   
                  10:00 AM. Ronald Dick, Director of the FBI's National Infrastructure Protection
                  Center, will speak on the NIPC's efforts to detect, deter,
                  warn of, respond to and investigate malicious acts, both
                  physical and cyber, that threaten critical
                  infrastructures.Location: Zenger Room, National Press Club, 529 14th
                  St. NW, 13th Floor, Washington DC.
                   
                  2:00 PM. The House
                  Science Committee's Research Subcommittee will hold a
                  hearing titled "Innovation in Information Technology:
                  Beyond Faster Computers and Higher Bandwidth." Location:
                  Room 2318, Rayburn Building.
                   
                  2:30 PM. The Senate
                  Commerce Committee's Communications Subcommittee will hold
                  a hearing on spectrum management and third generation
                  wireless systems. The scheduled witnesses are William
                  Hatch (NTIA), Julius Knapp (FCC), Linton Wells (DOD), Denny
                  Strigl (Verizon Wireless), Carroll McHenry (Nucentrix
                  Broadband Networks), Mark Kelly (Leap Wireless), Martin Cooper
                  (ArrayComm), Thomas Wheeler (CTIA).  Location: Room 253,
                  Rayburn Building. | 
              
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                | Wednesday, August 1 | 
               
              
                9:30 AM. The Senate
                  Commerce Committee will hold a hearing on trade
                  issues. Location: Room 253, Russell Building.
                   
                  10:00 AM. The Senate
                  Finance Committee will hold a hearing on whether to extend
                  the existing Internet tax moratorium, and whether to
                  allow state and local governments to impose sales taxes on
                  remote sellers, including Internet retailers. The scheduled
                  witnesses are Tom Woodward (Congressional Budget Office),
                  Frank Shafroth (National Governors Association), David
                  Bullington (Wal-Mart), Frank Julian (Federated Department
                  Stores), Michael Grieve (American Enterprise Institute),
                  Steven Rauschenberger (National Conference of State
                  Legislatures), and Jeff Friedman (KPMG). Location: Room 215,
                  Dirksen Building.
                   
                  10:00 AM. The Senate
                  Banking Committee will hold a meeting to mark up
                  legislation and to vote on nominations. The agenda includes
                  the nominations of Michael Garcia to be Assistant
                  Secretary of Commerce for Export Enforcement and Henrietta
                  Fore to be Director of the Mint. Location: Room 538,
                  Dirksen Building.
                   
                  10:00 AM - 12:00 NOON. The U.S. International
                  Telecommunication Advisory Committee Telecommunication
                  Development Sector (ITAC-D) will hold a public meeting. 48
                  hour pre-clearance is required. See, notice
                  in Federal Register, July 16, 2001, Vol. 66, No. 136, at Pages
                  37086 - 37087. Location: Room 2533A, Department of State, 2201
                  C Street, NW, Washington DC.
                   
                  10:15 AM. The House
                  International Relations Committee will meet to mark up
                  several bills, including HR
                  2581, the Export Administration Act of 2001,
                  sponsored by Rep.
                  Benjamin Gilman (R-NY). Location: Room 2172, Rayburn
                  Building.
                   
                  10:30 AM. The House
                  Education Committee will meet to mark up several bills,
                  including HR
                  1992, the Internet Equity and Education Act of 2001,
                  sponsored by Rep.
                  Johnny Isakson (R-GA). The bill would make it easier to
                  obtain federal financial aid for web based education programs.
                  Location: Room 2175, Rayburn Building.
                   
                  12:30 PM. Carl Yankowski, CEO of Palm will speak at an NPC
                  Luncheon. For more information, call 202-662-7501 or e-mail pnelson@press.org.
                  Location: National Press Club,
                  529 14th St. NW, 13th Floor, Washington DC.
                   
                  2:30 PM. The Senate
                  Commerce Committee will hold a hearing on several pending
                  nominations, including Nancy Victory to be Assistant
                  Secretary of Commerce for Communications and Information.
                  Location: Room 253, Russell Building. | 
              
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