The Hill fight over music licensing boils down to golden oldies vs. New Wave, speakers told a Progress & Freedom Foundation event Fri. on licensing questions raised by new satellite radio functionality. The music and Internet radio industries see new devices from XM as exploiting lower performance royalty rates for functionality better classified as iTunes-like distribution. But satellite radio and CE industries counter that current law is clear on the new devices’ legality, and that XM and Sirius already pay tens of millions of dollars to labels and artists yearly. The labels are suing XM for copyright infringement, based on the new devices’ features (CD May 18 p9).

The Bureau of Census' (Census') April 2006 AES Newsletter contains an article that states that the publication date for the final rule on the full mandatory filing of export information in the Automated Export System (AES) is unclear due to two comments raised by the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) related to (1) grandfathering in currently approved U.S. Principal Parties in Interest (USPPIs) under the Postdeparture Program (previously referred to as AES Option 4) and (2) sharing of confidential export information from AES with foreign governments.

Amid fears that lawmakers lacked a complete grasp of net neutrality’s implications, the House Judiciary Committee approved 20-13 its leadership’s Internet Freedom & Nondiscrimination Act (HR-5417). The legislation, sponsored by Chmn. Sensenbrenner (R-Wis.) and Ranking Member Conyers (D-Mich.), would amend the Clayton Act regarding “competitive and nondiscriminatory access to the Internet.” A manager’s amendment to clarify that nothing in the bill restricts broadband networks from offering controls to protect against objectionable content or manage their networks in a nondiscriminatory manner was also approved by the committee.

The House Judiciary Committee swiftly approved its own data security bill Thurs. The Cybersecurity Enhancement & Consumer Protection Act would add computer crimes and data theft to the Racketeer Influenced & Corrupt Organization (RICO) law and permit authorities to start looking into data breaches before consumers are notified. The bill would also make hiding data breaches to impede govt. investigations a federal crime. The measure (HR-5318), sponsored by Chmn. Sensenbrenner (R-Wis.), got out of subcommittee this month (WID May 19 p8). The Business Software Alliance (BSA) welcomed the committee’s approval of HR-5318. “Cyber criminals are becoming increasingly sophisticated and organized, and law enforcement officials are in a constant race against time,” BSA Pres. Robert Holleyman said: “This bill will help close cyber loopholes in the criminal code, encourage early notification to law enforcement, and provide the necessary tools to find and prosecute online criminals.” Members also approved the House Commerce Committee’s Data Accountability & Trust Act (HR-4127), to which they were granted sequential referral. While Sensenbrenner said he had “serious concerns” about the bill, he told the committee it should report HR-4127 favorably. A speedy approval by the Judiciary Committee would allow a comprehensive data security bill to be crafted with the Judiciary Committee’s views “well represented in the process,” he said. HR-4127 requires the FTC to set reasonable security practices to secure computerized data containing personal information, and provides for nationwide breach notification. It also contains a preemption provision that purports to create a uniform national standard for handling breaches. Sensenbrenner said he feared the FTC “has virtually no expertise in the area of financial data regulation” and called this attempt at expanding its jurisdiction unwarranted. HR-4127’s allowance for state attorneys general to bring enforcement actions against financial institutions, rather than leaving regulation and enforcement to federal financial regulators, is a mistake, he added. There’s a place for AGs in enforcing violations but the Commerce Committee’s bill goes too far, he said. Although HR-4127 calls for national standards, it expressly protects state consumer protection laws and doesn’t preempt any law relating to fraud, Sensenbrenner said. “These broad exceptions raise questions about whether business entities will be subject to conflicting state and federal laws and regulations, undermining the goal of a nationwide standard,” he said. Amendments by Reps. Wexler (D-Fla.) and Scott (D-Va.) for both bills inserted special notification requirements for federal agencies, presumably created in response to the Dept. of Veterans Affairs’ massive data security breach. Those amendments were also approved by the committee.

It’s a safe bet that the controversy over the Internet Gambling Prohibition Act (HR-4777) hasn’t ended with the House Judiciary Committee’s 25-11 approval of the measure by Reps. Goodlatte (R-Va.) and Boucher (D-Va.) Thurs. In a markup session full of gambling puns and raised voices, the committee approved DoJ-requested changes to the bill and shot down a slew of Democratic amendments to remove horse racing- specific provisions and punish individual gamblers. Goodlatte invoked states’ rights in opposing Democratic amendments. Rep. Leach’s (R-Ia.) Unlawful Internet Gambling Enforcement Act (HR-4411), targeted toward civil regulatory restrictions and criminal enforcement, also passed with an amendment clarifying that all wagers now illegal under any law would remain so.

The FCC must rely on documentation -- not rhetoric -- in considering telco arguments to remove municipalities from video franchise oversight, Comr. Copps said. He told a news briefing he'll rely on “the record” in the review and wants a further study of media ownership, which he linked to network neutrality. The FCC should provide Congress “options papers,” Copps said: “I want this Commission to be as active as it can be… teeing up options, especially for our friends in Congress.”

Net neutrality proponents are starting their battle in the Senate with a bill (S-2917) endorsed by Senate Commerce Committee Co-Chmn. Inouye (D-Hawaii). The bill, introduced by Sens. Snowe (R-Me.) and Dorgan (D-N.D.), would bar broadband providers from blocking or degrading Internet content. The bill goes further than a provision in Chmn. Stevens’ (R-Alaska) bill calling for an FCC study on net neutrality.

Net neutrality proponents are starting their battle in the Senate with a bill (S-2917) endorsed by Senate Commerce Committee Co-Chmn. Inouye (D-Hawaii). The bill, introduced by Sens. Snowe (R-Me.) and Dorgan (D-N.D.), would bar broadband providers from blocking or degrading Internet content. The bill goes further than a provision in Chmn. Stevens’ (R-Alaska) bill calling for an FCC study on net neutrality.

The Supreme Court’s slap at the U.S. Appeals Court, Federal Circuit, in eBay v. MercExchange (WID May 16 p1) should be welcomed as tough love toward the court that handles patent appeals, veteran judges and lawyers said Fri. The decision answered what is now a “stupid question” -- does the high court even care about patents? -- said John Whelan, Patent & Trademark Office (PTO) gen. counsel-intellectual property, to laughter at the Federal Circuit’s annual judicial conference. But some speakers cautioned the Federal Circuit that the Supreme Court’s newfound interest in patent cases -- and the appeals court’s idiosyncratic legal traditions -- shouldn’t affect how judges handle cases. Also Fri., Cal. congressmen introduced legislation to educate district courts on patent law.

GameZnFlix is on track to achieve various goals this year, including opening several new distribution centers by the holiday season, executives of the online game and DVD rental service told investors in a Web conference. They said the company, meanwhile, is eagerly awaiting the arrival of Blu-ray movies, and PS3 and Wii videogames as it eyes possible expansions into additional platforms and markets as well.