FARNET's Washington Update 6/23/98

[Jeff Ogden]

FYI
  -Jeff

>Date: Tue, 23 Jun 1998 15:33:58 -0400
>To: legup@farnet.org
>From: Garret Sern <garret@farnet.org>
>Subject: FARNET's Washington Update 6/23/98
>
>FARNET'S WASHINGTON UPDATE --- JUNE 23, 1998
>
>FARNET (http://www.farnet.org) is a non-profit public interest
>Internetworking organization with a primary focus on the education,
>research and related communities.
>
>
>IN THIS ISSUE:
>
>HOUSE COMMERCE SUBCOMMITTEE APPROVES WIPO LEGISLATION WITH AMENDMENTS;
>FURTHER DETAILS TO BE WORKED OUT BEFORE FULL COMMITTEE MARKUP
>
>HOUSE JUDICIARY COMMITTEE APPROVES THREE-YEAR MORATORIUM ON INTERNET TAXES;
>FLOOR VOTE EXPECTED SOON
>
>___________________________________________________________________________
>
>HOUSE COMMERCE SUBCOMMITTEE APPROVES WIPO LEGISLATION WITH AMENDMENTS;
>FURTHER DETAILS TO BE WORKED OUT BEFORE FULL COMMITTEE MARKUP
>
>Legislation authorizing U.S. compliance with the WIPO Copyright Treaties
>moved one step closer to congressional ratification on Thursday as the
>House Commerce Subcommittee on Telecommunications, Trade, and Consumer
>Protection amended and approved H.R.2281. The bill now moves to the full
>House Commerce Committee, with a full committee markup scheduled for
>Wednesday, June 24.
>
>An amendment introduced by Chairman Billy Tauzin (R-La) adopting the
>language and title of the Senate WIPO copyright bill S.2037 (Digital
>Millenium Copyright Act of 1988, which the Senate passed by a 99-0 vote) to
>H.R.2281 was approved by the subcommittee.
>
>A pro-privacy amendment was tentatively approved, with important details to
>be worked out later. The subcommittee also approved three other amendments
>that pertain to the circumvention of technological protection measures
>(TPM's), marketplace promotion of the fair use rights, and protocols for
>future encryption research.
>
>The issue of consumer privacy has come to the forefront during committee
>discourse on this bill. Rep. Edward Markey (D-Ma) introduced an amendment
>that would allow users to bypass technological protection measures in order
>to protect private information. Inspiration for Markey's amendment comes
>from Internet end users' ability to configure web browsers to disable the
>use of "cookies" (data files created by a web server and placed on end
>users' computer), a mechanism by which companies often gather information
>for marketing purposes and an integral part of current and planned
>copyright technological protection measures. Some committee members are
>concerned that Markey's privacy amendment would create a defensive loophole
>for persons attempting to circumvent TPMs. Despite these concerns, however,
>the subcommittee approved the amendment with the agreement that they would
>work on crafting the amendment's language to close any perceived loopholes.
>
>Rep Michael Oxley (R-Oh) introduced an amendment that seeks to guarantee
>that the traditional right of fair use is extended to digital works.
>Oxley's amendment reiterates the right of libraries to loan materials (in
>digital format) that have been legally acquired. It also calls for
>promoting methods and arrangements in the marketplace for making available
>copyrighted works to the public for fair use purposes, and provides for a
>"multi-industry" process for the development and implementation of future
>TPMs. Oxley's amendment also directs the Department of Commerce to review
>the impact of this amendment, in particular the degree to which the public
>is able to access copyrighted works and "the degree to which infringement
>is occurring." The Department of Commerce is to report its findings to
>Congress within one year of implementing the act. Oxley's amendment was
>also approved by the subcommittee.
>
>A third amendment approved by the subcommittee directs the Department of
>Commerce to report to Congress within six months of the act's passage on
>guidelines to ensure proper encryption testing measures. This amendment
>appeals to reverse-engineering and interoperability concerns of the
>manufacturing and software industries.
>
>All of the amendments approved by the subcommittee appear to have the
>support of the content-provider industry; the support of the education and
>research sector is not as apparent.
>
>For more information on H.R.2281, please refer to S.2037, the Senate
>version adopted by House Commerce subcommittee:
>
>http://thomas.loc.gov/cgi-bin/query/z?c105:S.2037:
>
>
>
>For a related Washington Update article:
>http://www.farnet.org/contents/update/1998/19980519.html
>
>
>
>HOUSE JUDICIARY COMMITTEE APPROVES THREE-YEAR MORATORIUM ON INTERNET TAXES;
>FLOOR VOTE EXPECTED SOON
>
>The House Judiciary Committee on Wednesday approved H.R.3529 (Internet Tax
>Freedom Act). Touted as a "pro-consumer, pro-taxpayer" bill by its
>supporters in Congress, this legislation would place a three-year
>moratorium on any new taxes directed toward the provision of Internet
>access and "multiple" or "discriminatory" taxes on Internet commerce. As
>commercial usage of the Internet has risen, an increasing number of states
>and local governments have sought to tax commercial transactions conducted
>over the Internet. Critics fear that such new taxes will inhibit the growth
>of the Internet and electronic commerce.
>
>The moratorium would not create an Internet "duty free zone". The Internet
>Tax Freedom Act would prevent the states and local governments from
>imposing any of the following specified taxes: "(1) taxes on Internet
>access, (2) taxes on online serves, (3) bit taxes, (4) bandwidth taxes, (5)
>multiple taxes on electronic commerce, and (6) discriminatory taxes on
>electronic commerce." Any taxes on Internet access or online services
>enacted prior to March 1, 1998 would be grandfathered, providing that the
>tax rate remains at the level imposed prior to that date. Rep. Bob
>Goodlatte (R-Va) and Committee Chairman Henry J. Hyde (R-Il) are fighting
>to strike this provision from the bill before it goes to the House floor
>for a vote.
>
>The bill calls for the Treasury, State and Commerce departments to
>undertake a study of the international taxation of commercial transactions
>involving the use of the Internet and it requires the President provide
>policy recommendations on this matter to Congress within two years of the
>bill's implementation. It further suggests that President seek multilateral
>and bilateral trade agreements through the auspices of the World Trade
>Organization and regional trade organizations to eliminate any taxes on
>commercial transactions involving the Internet. Closer to home, the bill
>directs the creation of a commission comprised of members representing all
>levels of government and consumer and industry groups. This commission is
>instructed to investigate whether it is possible to enact a uniform system
>of Internet taxation (the rate of which may be zero) that is transparent
>across the country, and to report any recommendations to the President
>within two years of the bill's enactment.
>
>The full House is expected to vote on the measure sometime this week.
>
>For more information:
>
>H.R.3529: http://thomas.loc.gov/cgi-bin/query/z?c105:H.R.3529:
>
>
>_________________________________________________________________________
>
>
>
>Written from FARNET's Washington office, "FARNET's Washington Update" is a
>service to FARNET members and other interested subscribers. We gratefully
>acknowledge EDUCOM'S NTTF and the Coalition for Networked Information (CNI)
>for additional support. If you would like more information about the Update
>or would like to offer comments or suggestions, please contact Garret Sern
>at garret@farnet.org.
>
>
>
>_______________________
>Garret Sern
>FARNET
>(202)331-5365
>garret@farnet.org
>