 iiiiiiii  iiiiiiiii aa               INFORMATION POLICY ONLINE
    ii         ii    aaa                An Internet Newsletter
    ii         ii     aaa
    ii         ii      aaa                published by the 
    ii         ii   aaaaaaa           Information Industry Assoc.
    ii         ii        aaa                555 New Jersey
    ii         ii         aaa         Washington, DC 20001
    ii         ii          aaa      Internet: <iia.ipo@his.com>
 iiiiiiii   iiiiiiii  aaaaaaaaa   
                                            Volume 1, Number 7
(Part 2 of 2)                             August/September 1994
*****************************************************************
IN THIS ISSUE:

Part 1:

[1]   TELECOM LEGISLATION ADVANCES 
[2]   U.S. ADVISORY COUNCIL ON THE NII
[3]   IIA TESTIFIES  AT CLINTON ADMINISTRATION  IITF HEARING
[4]   LC BILL SEES DAYLIGHT
[5]   FEDERAL DISSEMINATION POLICY BILL BACK ON TRACK?
[6]   CONFEREES REACH AGREEMENT ON DMV RECORDS BILL 
[7]   FIRST BURNETT MEMORIAL SCHOLARSHIP AWARDED
[8]   NUMBER PAY-PER-CALL-SERVICES UNDER FIRE
*****************************************************************
Part 2:

[9]   DIGITAL TELEPHONY LEGISLATION INTRODUCED IN HOUSE & SENATE
[10]  ADMINISTRATION DRAFT REPORT HIGHLIGHTS COPYRIGHT ISSUES
      IN NII
[11]  MARY BETH PETERS NAMED REGISTER OF COPYRIGHTS
[12]  CAN CANTWELL CLIP CLIPPER?
[13]  PERILS & POSSIBILITIES & PUBLIC POLICY:
      IIA'S ANNUAL CONVENTION HOSTS INFORMATION POLICY GURUS
[14]  IIA TESTIFIES ON THE GLOBAL INFORMATION INFRASTRUCTURE
[15]  JUSTICE DEPARTMENT UNVEILS INTELLECTUAL PROPERTY LICENSING
      GUIDELINES
[16]  ABOUT INFORMATION POLICY ONLINE AND THE INFORMATION 
      INDUSTRY ASSOCIATION 
*****************************************************************
[9]  DIGITAL TELEPHONY LEGISLATION INTRODUCED IN HOUSE AND SENATE

Senator Patrick Leahy (D-VT) and Representative Don Edwards (D-CA) jointly
introduced the long-awaited digital telephony legislation which would
permit law enforcement officials to require the redesign of
telecommunications networks to facilitate authorized law enforcement
wiretapping. Although the legislation is broadly applied to all
telecommunications carriers, rather than simply common carriers, the
legislation explicitly exempts online services and similar entities from
coverage. In hearings on August 11th, the legislation was supported by law
enforcement and government officials concerned with maintaining the
government's ability to wiretap calls subject to call forwarding and other
advanced services. Although many carriers have questioned the cost aspects
of the legislation, there is significant support for passage this
session.

Both the Senate legislation, S. 2375, and the companion House bill, H.R.
4922, would require that telecommunications carriers configure their
networks to facilitate law enforcement wiretaps. The legislation would
provide approximately $500 million to cover some costs of adjustments to
the network. Although the legislation defines a telecommunications carrier
as anyone engaged in the transmission or switching of communications, it
explicitly excludes information service providers. Information services
are defined broadly in the legislation to include electronic publishing
and other services involving generation, storage, processing and retrieval
of information. The Senate staff summary unambiguously states that the
legislation is not intended to apply to online services.
*****************************************************************
[10]  ADMINISTRATION DRAFT REPORT HIGHLIGHTS COPYRIGHT ISSUES
      IN NII

On July 7, an interagency federal task force released its long-awaited
report on "Intellectual Property Issues and the National Information
Infrastructure." The task force, headed by Commissioner of Patents and
Trademarks Bruce Lehman, sent a strong message about the importance of
effective copyright protection. "The potential of the NII will not be
realized if the information and entertainment products protectable by
intellectual property laws are not protected effectively when disseminated
via the NII," the report warned. "Owners of intellectual property rights
will not be willing to put their interests at risk if appropriate systems
are not in place to permit them to set and enforce the terms and
conditions under which their works are made available in the NII
environment. Likewise, the public will not use the services available on
the NII and generate the market necessary for its success unless access to
a wide variety of works is provided under equitable and reasonable terms
and conditions, and the integrity of those works is assured."

The Lehman task force report makes recommendations in three areas: law,
technology, and education. It calls for "minor clarifications and
amendments" to the Copyright Act to facilitate its application in the new
networked environment. It recognizes the importance of technological
solutions to manage intellectual property, and suggests making it a
copyright infringement to seek to circumvent protective technologies. It
notes that "effective education of the public about intellectual property
rights is crucial to the successful development of the NII."

The Task Force report issued July 7 is a "preliminary draft" or "green
paper" on which the Administration seeks public comment by September 7.
The Task Force will also be holding public hearings around the country on
the draft report, on the following schedule: September 14, Chicago;
September 16, Los Angeles; September 22-23, Washington, DC. A final report
is expected around the end of the year, with legislative recommendations
to be embodied in a bill for consideration in the 104th Congress in 1995.

The Lehman report has put on the radar screen the issue of protecting the
intellectual property of information companies in the advanced National
Information Infrastructure. Industry has a vital stake in seeing that the
issue is constructively discussed and resolved.

MAIN RECOMMENDATIONS OF THE LEHMAN REPORT ON INTELLECTUAL PROPERTY AND THE
NII

LEGAL ISSUES:

* Amendments to copyright exclusive rights:

1. Clarify that unauthorized transmission of a work (e.g., through a
computer network) violates the copyright owner's exclusive right to
distribute the work (as well as the exclusive right to copy it).

2. Broaden the definition of "publication" to include distribution through
transmission (e.g., of an online database).

3. Clarify that the recipient of a work through transmission (e.g., by
downloading from a network) is not free to copy and pass it on without
permission.

4. Create an exclusive right in public performance of sound recordings in
digital formats.

5. Don't create any new compulsory licenses.

* Technology amendments:

1. Create criminal and civil liability for importing, manufacturing or
distributing technology aimed at circumventing encryption, scrambling, or
other copy protection techniques.

2. Add criminal penalties for fraudulently creating, removing or altering
electronic copyright management information (e.g., a header or software
envelope that identifies ownership of intellectual property rights).

* Fair use:

1. Convene a conference of copyright owner and user interests to develop
guidelines for fair use of copyrighted works by and in public libraries
and schools.

* International:

1. Work for strong national treatment (i.e., no discrimination against
foreign copyright owners) and enforcement of exclusive rights under
copyright.

TECHNOLOGY ISSUES:

1. No recommendation on establishing encryption or copyright management
technical standards, except to allow an owner of intellectual property
rights involved in the standards to veto use of its property in the
standard.

EDUCATION ISSUES:

1. Convene a conference to develop curricula on intellectual property
education, including dissemination of the fair use standards developed by
the fair use conference.
*****************************************************************
[11]  MARY BETH PETERS NAMED REGISTER OF COPYRIGHTS

On July 29, Librarian of Congress James Billington announced the
appointment of Mary Beth Peters as Register of Copyrights. The selection
concluded a nearly year-long search for a successor to Ralph Oman. During
most of that time, former Register Barbara Ringer has served as the acting
head of the Copyright Office, which is part of the Library of Congress.

Peters is a 28-year veteran of the Copyright Office staff, where she has
served as a policy planning adviser since 1983. As head of the Copyright
Office, Peters will be a key policy maker on issues such as copyright
registration for databases, mandatory deposit requirements, and
international copyright standards. She participated actively in the
Intellectual Property Rights Working Group of the Information
Infrastructure Task Force, and, as the Librarian's announcement noted,
"has specialized in copyright issues relating to the electronic
environment." Billington said he expects the Copyright Office, under
Peters' leadership, "to take a clear leadership role in addressing the
intellectual property issues associated with the new electronic age."
*****************************************************************
[12]  CAN CANTWELL CLIP CLIPPER?

The Administration's Clipper Chip initiative " aimed at establishing a de
facto standard for encryption of telephony with a key escrow system under
government control " does not require any legislative approval.
Nevertheless, most of the action on Clipper this summer has taken place on
Capitol Hill.

That's because federal export control policy is under more direct control
from Congress and export control is an essential ingredient of the Clipper
strategy. Clipper-based encryption is exportable, but most other
encryption technology is not allowed to be sold overseas. That policy may
help promote acceptance of Clipper, but it also shuts U.S. companies out
of lucrative foreign markets. Naturally, when Rep. Maria Cantwell (D-WA),
with strong industry support - including from IIA - introduced
legislation, H.R. 3627, to allow more exports of non-Clipper encryption
technology, the Administration strongly opposed it, even threatening a
veto because of the risk that strong encryption would be abused by
international criminals and terrorists. One House committee approved
Cantwell's proposal, but another nixed it, creating an impasse that stood
until July 20. On that date, Vice President Gore, in a letter to Rep.
Cantwell, agreed that the Administration would study the claim that export
controls hurt U.S. companies because foreign suppliers of similar
technology dominate foreign markets. Gore's letter also reiterated that
the Clipper proposal applies only to voice telephony, and pledged the
Administration would work with industry on a more flexible, unclassified,
exportable escrowed encryption standard for e-mail, data communications,
and other applications.

What does Gore's letter mean? That depends on whom you ask. Some Clipper
opponents hailed it as a major concession to widespread public opposition
to Clipper, predicting the "death of Clipper" if it is restricted to voice
telephony. The Administration, on the other hand, called the letter a
restatement of existing policy, pointing out that it had never finally
concluded to extend Clipper-type encryption to other types of
communications. Also in the "no news" camp was Sen. Patrick Leahy (D-VT),
who, as a senior member of the Appropriations Committee, made sure that a
committee report directed the Justice and Commerce Departments to answer a
series of probing questions about the costs and plans for Clipper.
Meanwhile, as one possible step toward exerting closer Congressional
control of encryption policy, the staff of the House Science Committee
circulated a discussion draft of an Encryption Standards and Procedures
Act .
*****************************************************************
[13]  PERILS & POSSIBILITIES & PUBLIC POLICY:
      IIA'S ANNUAL CONVENTION HOSTS INFORMATION POLICY GURUS

IIA's 1994 Annual Convention agenda has several sessions focusing on the
hottest information topics in public policy today. What's more, some of
the most influential and knowledgeable information policy officials have
agreed to participate in these sessions.

On Monday, October 24, IIA will host its own Town Meeting on the
Information Age. Sally Katzen, the Administrator of the Office of
Management and Budget's (OMB) Office of Information and Regulatory Affairs
(OIRA) has agreed to participate. As Administrator of OIRA, Ms. Katzen has
been responsible for implementing such important Federal Government
information dissemination policies as Circular A-130 and has been
influential in the process of reauthorizing the Paperwork Reduction Act
which would make many of the provisions of A-130 law. She also heads the
Clinton Administration's National Information Infrastructure Task Force
(NIITF) Committee on Information Policy. This committee and its working
groups have issued reports on intellectual property and the NII, privacy
principles and have held conferences on legal information services and a
government information locator service.

Also on Monday, Ms. Katzen will participate in a session on the National
Information Infrastructure. In addition, Bruce Lehman, Commissioner of the
Office of Patent and Trademarks and the Chair of the NIITF Intellectual
Property Working Group (IPWG) will participate. The Patent and Trademark
Office is one of the most active agencies in electronic dissemination of
information. Mr. Lehman as Chair of the IPWG is also the primary architect
of the working Group's recently released "Green Report" on Intellectual
Property and the NII.

On Tuesday, October 25, there will be public policy sessions on
intellectual property and on privacy issues. Both the past and present
chairs of the NIITF Privacy Working Group will participate in the privacy
session as will the author of a recently completed study comparing U.S.
and European privacy protections. For the intellectual property session,
IIA is fortunate to have recognized experts from our own member
companies.

In addition to these excellent public policy sessions, such information
heavyweights as Robert Allen of AT&T; Robert Frankenberg of Novell, Inc.;
Mike Maples of Microsoft Corporation; and Joe Dionne of McGraw-Hill, Inc.
will address participants. The convention will be held at the Plaza Hotel
in New York City from October 23 to 26. Make ;you reservations now. See
you in New York! To register, contact Carol Madden at the IIA (202)
626-1145.
*****************************************************************
[14]  IIA TESTIFIES ON THE GLOBAL INFORMATION INFRASTRUCTURE

The Clinton Administration - and Vice President Al Gore in particular -
began emphasizing the value of establishing a National Information
Infrastructure (NII) even before taking office in 1993. IIA has been
involved in the debates on the myriad issues entailed in establishing an
effective NII from the start. Therefore, the Association was well prepared
when Vice President Gore first proposed expanding discussions to a Global
Information Infrastructure (GII) in a speech before the International
Telecommunications Union this past spring and when President Clinton
formalized similar discussions at the G-7 meeting in Italy this summer.

As a result of these policy forays, the Administration's Information
Infrastructure Task Force (IITF) established a Working Group on
International Telecommunications under the auspices of the Department of
Commerce. The Working Group held two days of public hearings in Washington
on July 27 and 28 to gather comments from the private sector on the
possibility of establishing a global information infrastructure. IIA was
the only representative of information providers and distributors to
testify.

IIA was a founding member of the Global Alliance of Information Industry
Associations (GAIIA) over six years ago. The testimony centered largely on
the fifteen public policy principles known as the GAIIA Guiding Principles
which the Alliance adopted in 1992. These Principles set out general
guidelines for national and international entities to follow when shaping
laws and regulations affecting the flow of information, whether on a
national or international basis. IIA feels that the principles could apply
easily to the GII, particularly since its GAIIA counterpart associations
throughout much of the rest of the world have also endorsed them. The
principles cover intellectual property, private-public partnerships,
development of networks, and privacy.

IIA told the IITF Working Group that IIA believes strongly that the main
role of government should be to foster competition in all facets of the
information marketplace. In regard to intellectual property, the testimony
noted, this goal can best be accomplished by maintaining strong
protections for copyrighted materials. In this context, IIA tackled a
particularly crucial facet of the Administration's vision of both the NII
and the GII- namely the creation of so-called "digital libraries" as a
means of guaranteeing universal service. IIA's testimony stated concern
that government officials begin making a clear distinction between
providing universal access to facilities an issue which is itself subject
of some controversy - as opposed to guaranteed access to information
services. IIA has special concerns about whether the continued use of
terms like "digital libraries," is likely to further development and
innovation of information services in either the NII or the Global
Information Infrastructure.

IIA explained that interaction between private industry and government in
disseminating government information is crucial in considering the design
of either the National Information Infrastructure or the GII. Precisely
because government is itself such a large supplier and user of information
products and services, it must be cautious not to exert undue control over
its information nor to displace private sector providers who benefit
society at large by offering a diversity of sources for government
information.
*****************************************************************
[15]  JUSTICE DEPARTMENT UNVEILS INTELLECTUAL PROPERTY
      LICENSING GUIDELINES

The activist leadership of the Justice Department's Antitrust Division has
released new draft guidelines on the licensing and acquisition of
copyrights, patents and trade secrets. The draft guidelines, released
August 8, are intended to outline Justice's general policy on when it may
challenge a particular licensing arrangement as anticompetitive.

The guidelines embody three general principles, according to the Antitrust
Division: (1) intellectual property is "essentially comparable" to any
other form of property, for antitrust purposes; (2) an owner of
intellectual property does not necessarily have "market power," that is,
the ability to maintain higher prices or lower output than what would
occur through competition; (3) licensing of copyrights and other
intellectual property can promote competition. The 25-page draft expands
on these general statements and discusses ten hypothetical cases, most of
which involve patent licensing.

The Justice Department is seeking public comments on its draft guidelines,
within 60 days of their publication in the Federal Register (i.e., about
October 10).
*****************************************************************
[16]  ABOUT "INFORMATION POLICY ONLINE"

IIA-IPO is an online newsletter published on the Internet by the
Information Industry Association and distributed free of charge. The
purpose of the Newsletter is to inform readers of events and activities
affecting information policy, and to present an information industry
viewpoint concerning these events and activities.

IIA-IPO is copyrighted by the Information Industry Association; however,
IIA-IPO is distributed without charge and may be freely reproduced and
redistributed. Please acknowledge IIA-IPO as the source of the information
when quoting or redistributing the newsletter.

TO SUBSCRIBE TO IIA-IPO:
Send the message "subscribe" to <iiaipo-request@his.com>.

ARCHIVES. IIA-IPO is archived. To get archived copies, ftp to
<ftpmail@his.com> with the message "GET FILENAME." Individual monthly
issues are archived with file names "iia0394.zip" for March 1994,
"iia0494.zip" for April 1994, etc....

ABOUT THE INFORMATION INDUSTRY ASSOCIATION

THE INFORMATION INDUSTRY ASSOCIATION represents leading organizations
involved in the generation, processing, distribution and use of
information. IIA is home base for businesses offering the innovative
products and services that make up the information marketplace.IIA fosters
a responsive and responsible forum for promoting a competitive and growing
information marketplace.

President of the IIA: Kenneth B. Allen
Editor of Information Policy Online: Alden Schacher, IIA

For messages to IIA-IPO: <iia.ipo@his.com>
Voice: (202) 639-8262. Fax: (202) 638-4403.

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