| Bush Issues Executive Order
                  on Cyber Security | 
               
              
                10/16. President Bush issued an executive
                  order titled "Critical Infrastructure Protection in
                  the Information Age". This order creates the
                  "President's Critical Infrastructure Protection
                  Board", yet another executive branch board to coordinate
                  federal efforts and programs to protect information systems.
                   
                  The order provides that "the Board shall recommend
                  policies and coordinate programs for protecting information
                  systems for critical infrastructure, including emergency
                  preparedness communications, and the physical assets that
                  support such systems." The board's responsibilities
                  will extend to information systems and emergency preparedness
                  communications.
                   
                  The order also lists specific responsibilities of this newly
                  created board, including: coordinating outreach to and
                  consultation with the private sector; promoting information
                  sharing with industry, state and local governments, and non
                  governmental organizations; coordinating programs and policies
                  for responding to information systems security incidents;
                  coordinating federal research and development; and promoting
                  cyber crime programs, assisting federal law enforcement
                  agencies in gaining cooperation from executive branch
                  departments and agencies, and supporting federal law
                  enforcement agencies' investigation of illegal activities
                  involving information systems for critical infrastructure.
                   
                  The board will be large, and will be made up of cabinet
                  members and other executive branch officials. The FCC will
                  have one representative on the board.
                   
                  The order also creates a "National Infrastructure
                  Advisory Council", an advisory body made of
                  representatives of the private sector, academia, and state and
                  local government. It "shall provide the President advice
                  on the security of information systems for critical
                  infrastructure supporting other sectors of the economy:
                  banking and finance, transportation, energy, manufacturing,
                  and emergency government services."
                   
                  The order further provides that the new board "shall work
                  in coordination with the Critical
                  Infrastructure Assurance Office (CIAO) and the National Institute of Standards
                  and Technology of the Department of Commerce, the National Infrastructure
                  Protection Center (NIPC), and the National Communications System
                  (NCS)."
                   
                  The order also references technological convergence. It states
                  that "Changes in technology are causing the convergence
                  of much of telephony, data relay, and internet communications
                  networks into an interconnected network of networks. The NCS
                  and its National Coordinating Center shall support use of
                  telephony, converged information, voice networks, and next
                  generation networks for emergency preparedness and national
                  security communications functions assigned to them in
                  Executive Order 12472." EO 12472
                  created the NCS in 1984. | 
               
             
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                | Cyber Terrorism Panels to
                  Meet | 
               
              
                10/16. Cyberterrorism will be the topic of two events in
                  Washington this week. On Wednesday, October 17, at 10:00 AM,
                  the House Science
                  Committee will hold a hearing titled "Cyber Terrorism
                  -- A View From the Gilmore Commission."
                   
                  On Thursday morning, October 18, the Center for Strategic and
                  International Studies (CSIS) will host a half day
                  conference titled "Strengthening Homeland Cyberdefense."
                  Ron Dick, Director of the FBI's National
                  Infrastructure Protection Center, will speak at 9:25 AM.
                  There will be a panel titled "A Policy Agenda for
                  Homeland Cyberdefense," at 9:45 AM, with Sen. Bob Bennett (R-UT)
                  and Rep. Sherwood
                  Boehlert (R-NY). There will be a panel titled "The
                  Private Sector and Homeland Cyberdefense" at 11:00 PM.
                  The panelists will be Steve Blumenthal (Genuity), George
                  Conrades (Akamai), David Langstaff (Veridian), Gail Phipps (CACI
                  International), Ernst Volgenau (SRA International), and John
                  Tritak (Critical Infrastructure Assurance Office). John Hamre,
                  P/CEO of the CSIS, and Harris Miller, P/CEO of the ITAA,
                  will also speak. See also, CSIS notice. | 
               
             
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                | NIPC Issues Report on Cyber
                  Protest Hacking | 
               
              
                | 10/16. The FBI's NIPC
                  released a report
                  [PDF] titled "Cyber Protests: The Threat to the U.S.
                  Information Infrastructure." The report states that while
                  "cyber protests that have occurred thus far have had
                  little impact on U.S. infrastructure ... Cyber protesters are
                  becoming increasingly more organized and their techniques more
                  sophisticated but, most likely, will continue to deface web
                  sites and perform DoS attacks." Tthe report also reviews
                  the history of politically motivated hacking by Chinese,
                  Israeli, Palestinian, Pakistani, Indian, and Japanese hackers. | 
               
             
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                | FCC May Fine SBC $2.52
                  Million for False Statements | 
               
              
                10/16. The FCC announced
                  its intent to fine SBC $2.52 Million for filing inaccurate
                  information in the Section
                  271 proceeding pertaining to Kansas and Oklahoma. The FCC
                  issued a Notice
                  of Apparent Liability and Order and a release
                  [PDF] summarizing the order.
                   
                  The FCC found that SBC submitted affidavits containing false
                  information in support of its request for permission to
                  provide long distance service in Kansas and Oklahoma. However,
                  the FCC found that the conduct was negligent, rather than
                  deliberate.
                   
                  Russell Frisby, President of Comptel,
                  stated in a release
                  that "The fine issued by the FCC this afternoon is the
                  regulatory equivalent of a 'five dollar' parking ticket.
                  CompTel is disappointed that the FCC did not take stronger
                  action and send a message to SBC that the Commission is
                  serious about its role in opening local phone markets and that
                  the accuracy of information filed at the Commission is
                  paramount." | 
               
             
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                | 7th Circuit Rules in Lanham
                  Act 43(a) Case | 
               
              
                | 10/16. The U.S.
                  Court of Appeals (7thCir) issued its opinion
                  in First
                  Health Group v. BCE Emergis, a suit involving
                  Section 43(a) of the Lanham Act. Plaintiff, an intermediary
                  between hospitals and insurers, filed a complaint in U.S.
                  District Court (NDIll) against defendant, another such
                  intermediary, alleging that defendant's use of the term
                  "preferred provider organization" was misleading,
                  and violated Section 43(a)(1)(B) of the Lanham Act, 15
                  U.S.C. § 1125(a)(1)(B). The District Court granted
                  summary judgment to defendant. The Court of Appeals affirmed.
                  Judge Easterbrook wrote: "This entire suit strikes us as
                  one designed to hamstring a competitor whose success reflects
                  its ability to please its trading partners. If the vocabulary
                  of a business such as [defendant] is to be revised, that is a
                  job for legislatures and regulatory agencies, rather than for
                  judges and juries in suits under the Lanham Act and state
                  consumer- fraud statutes." | 
               
             
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                | Anti Terrorism Legislation
                  and Liberty | 
               
              
                10/16. The House and Senate have yet to reconcile the
                  differences between their two anti terrorism bills, S 1510,
                  the USA Act, and HR 2975,
                  the PATRIOT Act.
                   
                  On Thursday, October 18, The New Republic will host a panel
                  discussion titled "Security v. Liberty: Is There a
                  Choice?" The speakers will be James Woolsey (a former CIA
                  Director), Rep. Bob Barr
                  (R-GA), Marc Rotenberg (EPIC), Fred
                  Cate (University of Indiana), and Jeffrey Rosen (The New
                  Republic). This event will be at 6:30 PM at National Press Club.
                   
                  The Cato Institute
                  published a paper
                  [PDF] titled "Watching You: Systematic Federal
                  Surveillance of Ordinary Americans", by Charlotte Twight.
                  See also, executive
                  summary [HTML]. | 
               
             
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                | House Passes Internet Tax
                  Nondiscrimination Act | 
               
              
                10/16. The House passed HR 1552, the Internet
                  Non-Discrimination Act, by a unanimous voice vote. This bill 
                  extends the current moratorium on Internet access taxes, and
                  multiple and discriminatory taxes on Internet commerce, for
                  two years. The current ban expires on October 21. The measure
                  was considered under suspension of the rules, meaning that it
                  could not be amended, and required a two thirds majority for
                  passage. The Senate has yet to pass legislation to extend the
                  ban.
                   
                  Sen. Ron Wyden (D-OR)
                  stated in a release that "Congressman Cox and I have been
                  working together for a long time to ban discriminatory
                  Internet taxes ... I hope his success today in the House will
                  pave the way for the Senate to expeditiously approve a similar
                  two year extension of the moratorium. I'm engaged in a
                  bipartisan full court press to get the Senate to pass a
                  two-year extension before the moratorium expires this Sunday
                  so the Senate can return to its constructive conversations
                  regarding a more permanent solution." | 
               
             
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                | SEC Commissioner Unger
                  Advocates Securities Law Reform | 
               
              
                10/16. SEC Commissioner
                  Laura Unger gave a speech
                  in which she advocated updating securities laws and
                  regulations in light of Internet technologies.
                   
                  She stated that "the current regulatory system was
                  created in a time when technology was not what it is
                  today." She said that some areas "particularly need
                  reform. The first is embracing technology and the Internet in
                  the offering process. Although companies raised more than $400
                  billion in the U.S. private market last year, the Commission's
                  rules constrain companies from taking advantage of low-cost
                  electronic communications to raise capital from potentially
                  qualified investors. Eliminating the 'general solicitation'
                  prohibition in the private market would enable small companies
                  to use the Internet to reach a wider breadth of potentially
                  qualified investors."
                   
                  Second, she advocated reforming "the distinctions between
                  oral and written communications that have become anomalous
                  with advancements in technology. Is streaming video 'oral'
                  until it is archived? The legal distinctions between written
                  and oral communications mostly discourage disclosure - which
                  does not make for an efficient market. For example, to prevent
                  issuers from 'conditioning the market' during an offering,
                  current rules limit how and what issuers communicate to the
                  public." She also addressed the oral versus written
                  distinction in the context of electronic roadshows.
                   
                  Third, Unger stated that "the Internet could speed up the
                  'back office' part of transactions - especially IPO
                  investments. Although technology means that access to an
                  issuer's prospectus can be real time, the Commission continues
                  to insist on brokers satisfying the prospectus 'delivery'
                  obligation. Any new system will have to consider whether and
                  to what extent access may be deemed delivery."
                   
                  Commissioner Unger spoke to the Westchester / Southern
                  Connecticut Chapter of The American Corporate Counsel
                  Association. | 
               
             
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                | Senate Committee Holds
                  Hearing on E-911 | 
               
              
                10/16. The Senate
                  Commerce Committee held an oversight hearing to examine
                  the implementation of the Wireless Communication and Safety
                  Act and the integration of emergency 911 technologies. This
                  hearing had originally been scheduled for September 11.
                  Senators encouraged accelerated implementation. Tom Sugrue of
                  the FCC's Wireless
                  Telecommunications Bureau said that "the Commission
                  is serious about ensuring the deployment of wireless
                  E911."
                   
                  In 1996, the FCC adopted rules which set October 1, 2001 as
                  the deadline for wireless carriers to begin the process of
                  deploying technology to accurately report the location of
                  wireless 911 calls. In 1999, the Congress passed the Wireless
                  Communications and Public Safety Act, which mandated 911 as
                  the universal number for emergency calling and addressed
                  carrier liability protection and privacy issues. Earlier this
                  month the FCC extended the October 1 deadline for five major
                  carriers. See, FCC
                  release.
                   
                  Sen. Ron Wyden (D-OR)
                  and Sen. Daniel Inouye
                  (D-HI) presided at the hearing. Sen. Conrad Burns (R-MT)
                  and Sen. Gordon Smith
                  (R-OR) also participated. Sen. Wyden stated, "I don't
                  want this to become the longest running battle since the
                  Trojan War." Sen. Inouye said to Thomas Sugrue that
                  "September 11 demonstrated to us how important 911 was
                  ... So, I hope you will get out the whip."
                   
                  See also, prepared testimony of witnesses in PDF: Thomas
                  Sugrue (FCC Wireless Telecom Bureau), Michael
                  Amarosa (TruePosition, Inc.), Jenny
                  Hansen (State of Montana), John
                  Melcher (National Emergency Number Assoc.), Brett
                  Sewell (SnapTrack, Inc.), and Thomas
                  Wheeler (CTIA). | 
               
             
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                | FTC Takes Action Against
                  Online Fraud | 
               
              
                10/11. The FTC filed civil
                  complaint in U.S.
                  District Court (WDWash) against Bargains & Deals
                  Magazine and its principal, Michael Casey, alleging that they
                  made misrepresentations over the Internet to induce consumers
                  to purchase merchandise, and then either failed to deliver the
                  merchandise promised or did not send any merchandise. The
                  complaint alleges violation of the FTC Act, 15 U.S.C. § 41
                  et seq., and the FTC's Mail Order Rule. The FTC also obtained
                  a temporary restraining order. See, FTC release.
                   
                  10/11. The FTC filed an administrative complaint
                  against FanBuzz, Inc., alleging that its sold textile products
                  over the Internet without disclosing whether such products
                  were made in the U.S.A., in violation of the FTC Act and the
                  Textile Fiber Products Identification Act. The FTC and FanBuzz
                  also filed an Agreement
                  Containing Consent Order, which prohibits future violations.
                   
                  10/16. The FTC published a notice
                  in the Federal Register of the FanBuzz settlement; this notice
                  also sets November 11, 2001 as the deadline for public
                  comments. See, Federal Register, October 16, 2001, Vol. 66,
                  No. 200, at Pages 52625 - 52626. | 
               
             
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                | Novell v. Microsoft | 
               
              
                10/15. Novell stated
                  that Microsoft "has agreed to stop the dissemination of
                  statements about Novell that are the center of Novell's false
                  advertising lawsuit filed Oct. 1 against Microsoft. Microsoft
                  has also agreed to send a retraction letter along with
                  corrective information ..." See, Novell
                  release.
                   
                  Novell filed a complaint
                  in U.S. District Court (DUtah) against Microsoft alleging that
                  Microsoft made false and misleading statements about Novell's
                  NetWare 6. Novell alleged violation of § 43(a) of the Lanham
                  Act, 15
                  U.S.C. § 1125(b), and violation of the Utah Truth in
                  Advertisings Act. | 
               
             
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                | Transition to Digital TV | 
               
              
                10/16. The House
                  Commerce Committee's Subcommittee on Telecommunications
                  and the Internet will hold a hearing on Thursday, October 18,
                  titled "Transition to Digital Television: Progress on
                  Broadcaster Buildout and Proposals to Expedite Return to
                  Spectrum." The witnesses will be Rick Chessen (Associate
                  Bureau Chief, Mass Media Bureau, FCC), Jim Yager (P/CEO of
                  Benedek Broadcasting Corporation), Michael McCarthy (SVP of
                  Belo Corporation), John Lawson (P/CEO of APTS), Dean Goodman
                  (COO of PAXtv), Paul Crouch (President of Trinity Broadcasting
                  Network), David Donovan (President of MSTV), Michael Petricone
                  (VP of Consumer Electronic Association), Richard Green (P/CEO
                  of CableLabs), and Brian Lamb (P/CEO C-SPAN).
                   
                  10/16. The NCTA
                  submitted a report
                  [PDF] regarding digital must carry requirements to the FCC. It
                  rebuts the NAB's filing
                  [PDF] to the FCC of August 14. | 
               
             
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                | Wednesday, Oct 17 | 
               
              
                The Senate reconvenes at 10:00 AM. It will continue
                  consideration of HR 2506, the Foreign Operations, Export
                  Financing, and Related Programs Appropriations Act for FY
                  2002. The Senate may also take up the conference report to
                  accompany HR 2217, the Interior Appropriations Act for FY
                  2002.
                   
                  9:30 AM. The Senate
                  Banking Committee will hold a hearing on the nominations
                  of Susan Bies and Mark Olson to be members of
                  the Board of Governors of the Federal Reserve System.
                  Location: Room 538, Dirksen Building.
                   
                  10:00 AM - 12:00 NOON. The House Science Committee
                  will hold a hearing titled Cyber Terrorism -- A View From
                  the Gilmore Commission. Location: Room 2318, Rayburn
                  Building.
                   
                  10:00 - 11:30 AM. The Progressive
                  Policy Institute (PPI), a Democratic think tank, will host
                  a forum regarding new technologies for aviation security,
                  such as biometrics and smart cards, and pending aviation
                  security legislation. The speakers will include Rep. Mike Honda (D-CA),
                  Rep. Jim Matheson
                  (D-UT), Rob Atkinson (PPI VP), and industry representatives.
                  See, PPI
                  release. Location: Room 210, Cannon Building.
                   
                  CANCELLED. 10:00
                  AM. The Senate
                  Judiciary Committee will hold a hearing to examine
                  homeland defense matters. Location: Room 106, Dirksen
                  Building.
                   
                  12:15 PM. The Federal
                  Communications Bar Association's (FCBA) Mass Media
                  Practice Committee will host a brown bag lunch. The speakers
                  will be the FCC Commissioners' legal advisors on mass media
                  issues: Susan Eid (Powell), Stacy Robinson (Abernathy), Susana
                  Zwerling (Copps), and Catherine Bohigian (Martin). RSVP to
                  Kathy Dole at kdole@npr.org.
                  Location: National Public Radio, first floor conference room,
                  635 Massachusetts Ave., NW, Washington DC.
                   
                  2:00 PM. The House
                  Government Reform Committee's Subcommittee on Technology
                  and Procurement Policy will hold a hearing titled
                  "Turning the Tortoise Into the Hare: How the Federal
                  Government Can Transition From Old Economy Speed to Become a
                  Model for Electronic Government." Location: Room 2154,
                  Rayburn Building. | 
              
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                | Thursday, Oct 18 | 
               
              
                Day one of a three day conference of the American
                  Intellectual Property Law Association (AIPLA). Location:
                  Crystal Gate Marriott Hotel, 1700 Jefferson Davis Highway,
                  Arlington, Virginia.
                   
                  9:00 AM - 12:30 PM. The Center
                  for Strategic and International Studies (CSIS) will host a
                  half day conference titled Strengthening Homeland
                  Cyberdefense. The speakers will include Sen. Robert Bennett
                  (R-UT), Rep. Sherwood
                  Boehlert (R-NY), Ron Dick (NIPC Director). See, CSIS notice.
                  Location: CSIS, 1800 K Street, NW, B-1 conference level,
                  Washington DC.
                   
                  9:30 AM. The House
                  Commerce Committee's Subcommittee on Telecommunications
                  and the Internet will hold a hearing titled Transition to
                  Digital Television: Progress on Broadcaster Buildout and
                  Proposals to Expedite Return to Spectrum. Rep. Fred Upton (R-MI)
                  will preside. Location: Room 2123, Rayburn Building.
                   
                  9:30 AM. The U.S.
                  Court of Appeals for the District of Columbia Circuit will
                  hear oral argument in Celtronix Telemetry v. FCC, No.
                  00-1400. Judges Ginsburg, Williams and Henderson will preside.
                  Location: 333 Constitution Ave., NW, Washington DC.
                   
                  9:30 - 11:30 AM. The American
                  Enterprise Institute (AEI) will host another program in
                  its Seminar Series in Telecommunications Deregulation. This
                  event is titled "On Refusing to Deal with Rivals."
                  The speaker will be Glen
                  Robinson of the University of Virginia School of Law. The
                  price to attend is $5 (waived for AEI supporters, government
                  employees, and media). Location: AEI Wohlstetter Conference
                  Center, Twelfth Floor, 1150 17th Street, NW, Washington DC.
                   
                  10:00 AM. The House
                  Judiciary Committee's Subcommittee on Courts, the
                  Internet, and Intellectual Property will hold a hearing titled
                  Intellectual Property Litigation. Location: Room 2141,
                  Rayburn Building.
                   
                  12:00 NOON. The Heritage
                  Foundation will host a panel discussion titled Freedom
                  and Security: Preserving Constitutional Liberties in Times of
                  War. The speakers will be Jennifer Neustead (Office of
                  Legal Policy, DOJ), Lee Casey (Baker & Hostettler), Todd
                  Gaziano (Heritage), and Ed Meese (Heritage). Location:
                  Heritage Foundation, 214 Massachusetts Ave NE, Washington DC.
                   
                  2:00 PM. The Senate
                  Judiciary Committee will hold hearings on pending
                  nominations. Location: Room 226, Dirksen Building.
                   
                  2:30 - 4:00 PM. The American
                  Enterprise Institute (AEI) will host a panel discussion
                  titled Trade Promotion Authority -- What's the Bottom Line
                  for Congress? The speakers will be Jagdish Bhagwati
                  (Columbia University), I.M. Destler (University of Maryland),
                  Brink Lindsey (Cato Institute), and Daniel Tarullo (Georgetown
                  University). See, online
                  registration page. Location: AEI Wohlstetter Conference
                  Center, Twelfth Floor, 1150 17th Street, NW, Washington DC.
                   
                  6:30 PM. The New Republic will host a panel discussion titled Security
                  v. Liberty: Is there a choice? Location: Holman Lounge, National Press Club, 529 14th
                  Street, NW, Washington DC. | 
              
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                | Friday, Oct 19 | 
               
              
                Day two of a three day conference of the American
                  Intellectual Property Law Association (AIPLA). Location:
                  Crystal Gate Marriott Hotel, 1700 Jefferson Davis Highway,
                  Arlington, Virginia.
                   
                  9:30 AM. The National
                  Association of State Boards of Education (NASBE) will hold
                  a press conference to release a report titled "Any Time,
                  Any Place, Any Path, Any Pace: Taking the Lead on e-Learning
                  Policy." For more information, contact Dave Griffith at
                  703-684-4000. Breakfast will be served at 9:00 AM. See, NASBE
                  release. Location: Lisagor Room, National Press Club, 529 14th
                  Street, NW, Washington DC. | 
               
             
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                | More News | 
               
              
                10/16. President Bush signed HR 1860, the "Small
                  Business Technology Transfer Program Reauthorization Act of
                  2001," which extends the authority for the Small Business
                  Technology Transfer Program through FY 2009. See, White
                  House release.
                   
                  10/16. USTR Robert Zoellick
                  gave a speech, and answered questions, in Singapore, regarding
                  trade, and a new round of WTO negotiations. See, transcript.
                   
                  10/16. The U.S. Court
                  of Appeals for the District of Columbia Circuit heard oral
                  argument in COMSAT Corp v. FCC, No. 00-1458.
                   
                  10/16. Verizon named Allan Thoms to the newly created
                  position of Vice President - Public Policy and External
                  Affairs for Verizon's Northwest Region. He will be responsible
                  for regulatory, governmental and external affairs for Verizon
                  in Washington, Oregon and Idaho. See, Verizon
                  release. | 
               
             
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                | About Tech Law Journal | 
               
                Tech Law Journal is a free access web site and e-mail alert
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