September 2000

MEDIA & SOCIETY
Open Access and Mergers: Public Concerns and Preferences (MAP)
Two Parties Share Soapbox in Hearing To Scold Hollywood (NYT)
Commercialism In U.S. Schools Is Examined In New Report (NYT)
TV Show Takes Aim At Ethnic Prejudice (USA)
EPIC Ends Ties with Amazon.com (EPIC)
Speech: Reflections and Challenges (FCC)

MERGERS
Inktomi to Buy FastFoward In $1.3 Billion Stock Swap (NYT)
FCC Enters Debate on Internet Access (WP)

INTERNATIONAL
China May Impose Restrictions On Operating in Internet Sector (WSJ)
English Without Tears, Thanks to TV (NYT)

LEGISLATION
Markup Sessions (House)

MEDIA & SOCIETY

OPEN ACCESS AND MERGERS: PUBLIC CONCERNS AND PREFERENCES
Issue: Media & Society
The Digital Media Forum sponsored a study of national public opinion that
demonstrates Americans have clear preferences with respect to
telecommunications offerings. This study was conducted independently by
Professor Dhavan Shah, University of Wisconsin-Madison. It was designed to
generate rich, yet objective, data about the opinions, behaviors, and media
access patterns of the American public. Because of the systematic and
rigorous nature of the study's design, the results accurately represent the
public's preferences and practices concerning digital media. The DMF is
releasing the data included in this study regarding mergers and open access
on cable broadband networks. In general, this portion of the study shows
that Americans are skeptical of media mergers, believe strongly in choice
among ISPs, and do not want Internet search engines to favor their
affiliated advertisers. Additional data from the study will be released in a
series of reports in
the coming months.
Specifically, the study reveals:
* 70% of Americans believe media companies are getting too big.
* Nearly 60% of Americans do not believe that mergers between media
companies produce better content and services.
* 86% of the public express at least a moderate level of concern about media
mergers -- with 46% expressing a high level of concern.
* An overwhelming majority of individuals -- almost 90% -- does not want to
be required to use the Internet service provider affiliated with their cable
company.
* A vast majority of the public, 78%, does not want to pay a premium for the
option of selecting an alternate Internet service provider.
* 65% of the public believe that search engines should not give preferred
placement to their advertisers.
* 64% of the public believe that search engines should not speed up access
to their advertisers.
* Each of these opinions are widely shared across several demographics,
including age, income, political party affiliation, and Internet usage.
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/whats_new/DMF913.PDF)

TWO PARTIES SHARE SOAPBOX IN HEARING TO SCOLD HOLLYWOOD
Issue: Media & Society
Republicans and Democrats seem to agree on one thing: the entertainment
industry should be taken to task for marketing violent movies, music and
video games to children. Lynne Cheney, former chairwoman of the National
Endowment for the Humanities and wife to vice presidential nominee Dick
Cheney, went even further at a Senate Commerce Committee hearing yesterday:
"There is a problem with the product they market, no matter how they market
it." Mrs Cheney suggests community pressure on entertainment companies
instead of government regulation. At the same hearing, Sen Joseph Lieberman,
VP Gore's running mate, promised that if elected, the two would take action
against entertainment companies if they persist in marketing to children.
The industry was defended by longtime Washington insider Jack Valenti who
conceded that "some marketing people" have "stepped over the line" -- such
as test marketing violent films on focus groups of 10 and 12 year-olds. But
Valenti suggested Congress should be proud of the daily contributions the
movie and TV industries make to the nation's art and commerce. Danny
Goldberg, president of Artemis Records, defended popular culture noting that
there was no one at the hearing representing youth and/or music fans. He
suggested that the reason young people are disaffected by politics and
politicians is because the same politicians -- and academics -- have no real
understanding of their culture and make sweeping generalizations about their
entertainment. [To read more about the hearing, see
http://www.senate.gov/~commerce/issues/telco.htm#Hearings]
[SOURCE: New York Times (A1), AUTHOR: David Rosenbaum]
(http://www.nytimes.com/2000/09/14/politics/14VIOL.html)
(requires registration)

COMMERCIALISM IN U.S. SCHOOLS IS EXAMINED IN NEW REPORT
Issue: Media & Society
Recognizing that the nation's 47.2 million students are an increasingly
lucrative target market for consumer product companies, school districts are
often willing to join with corporations. A new report to be released by the
General Accounting Office today begins: "In-school marketing has become a
growing industry. Some marketing professionals are increasingly targeting
children in schools, companies are becoming known for their success in
negotiating contracts between school districts and beverage companies, and
both educators and corporate managers are attending conferences to learn how
to increase revenue from in-school marketing for their schools and
companies." About 25 percent of the nation's middle schools and high schools
now show Channel One, a broadcast of news features and commercials, in their
classrooms, and about 200 school districts have signed exclusive contracts
with soft-drink companies to sell their beverages in schools. And in at
least one case, students using computers in classrooms were offered
incentives to enter personal data -- names, addresses, information on
personal habits -- which would then be sold to advertisers.
[SOURCE: New York Times (C1), AUTHOR: Constance Hays]
(http://www.nytimes.com/2000/09/14/business/14SCHO.html)
(requires registration)
See Also:
EDUCATORS BUY INTO SELLING KIDS ON ADVERTISING TRUTHS
[SOURCE: USAToday (1D), AUTHOR: Karen Thomas]
(http://www.usatoday.com/usatonline/20000914/2642022s.htm)

TV SHOW TAKES AIM AT ETHNIC PREJUDICE
Issue: Media & Society
A report to be released this weekend finds that an American-conceived
television show has produced a dramatic reduction in ethnic hatred among the
Macedonian children who watched the first season. "Our Neighborhood," funded
in part by the U.S. Agency for International Development, is aimed at 7- to
11-year-olds and was made in collaboration with Sesame Workshop, producer of
the long-running children's series Sesame Street. Gil Kulick, spokesman for
Search for Common Ground, which oversees the show's production company, says
Macedonia was chosen for the television show precisely because its ethnic
mix is similar to that which led to war in Croatia, Bosnia and Kosovo after
the breakup of Yugoslavia in 1991. "This was an opportunity to get to the
roots of the stereotypes and prejudice before they lead to violence," he
said. After seeing eight episodes of the show, which stars a half-dozen
children from different ethnic groups who live in or near a high-rise
building, the percentage of ethnic Macedonians who said they would invite
home an Albanian child went from 30% to 60%.
[SOURCE: USAToday (22A), AUTHOR: Barbara Slavin]
(http://www.usatoday.com/usatonline/20000914/2642106s.htm)

EPIC ENDS TIES WITH AMAZON.COM
Issue: Privacy
EPIC has sent a letter to its subscribers notifying them that we will no
longer have a formal relationship with Amazon.com due that company's recent
changes to its privacy practices. The EPIC Bookstore has been part of the
Amazon Affiliates program since 1996 as part of our efforts to make our
publications as widely available as possible. The recent changes in Amazon's
privacy policy indicate that the online retailer can no longer guarantee
that the its customers' personal information will not be disclosed to third
parties. See the press release
(http://www.epic.org/privacy/internet/amazon/letter_pr.html) for more details.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

SPEECH: REFLECTIONS AND CHALLENGES
Issue: Ownership
Chairman Kennard's Remarks before the National Association of Black Owned
Broadcasters.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/2000/spwek020.html)

MERGERS

INKTOMI TO BUY FASTFOWARD IN $1.3 BILLION STOCK SWAP
Issue: Mergers
Internet infrastructure specialist Inktomi will buy FastFoward, developer of
software technology for the distribution and management of live Webcasts, in
a stock swap for $1.3 billion. Inktomi's network service products are aimed
at improving Web performance through the more efficient distribution of
content, and are typically bought by large Internet service providers. The
company's core product, Traffic Server, is a Web cache and adding
FastFoward's technology "added the intelligence to put the content into the
caches in an intelligent way and keep it up to date," said an industry analyst.
[SOURCE: New York Times (C6), AUTHOR: Lawrence Fisher]
(http://www.nytimes.com/2000/09/14/technology/14NET.html)
(requires registration)

FCC ENTERS DEBATE ON INTERNET ACCESS
Issue: Open Access
Today, the FCC is scheduled to launch an inquiry into the complex question
of whether cable television systems - an increasingly popular conduit for
high-speed Internet access - must share their wires with rivals that want to
ride them into homes. The issue has become unavoidable as a result of the
debate over America Online's pending $183 billion merger with Time
Warner. Competitors of the two companies have complained that they
could be shut out from substantial portions of the marketplace if federal
regulators allow AOL, the nation's largest Internet service provider, to
combine with cable and programming giant Time Warner. The FCC will begin to
gather comment on whether consumer choice and evolving competition require
federal rules giving Internet providers the right to connect to customers
over all cable networks, much the same way they now have access to local
telephone systems. Consumer advocates and industry proponents for an
open-access policy derided the new FCC proceeding as too late. They noted
that it is likely to continue for months, and no rules can be enacted before
the launch of another proceeding - a formal rulemaking. Meanwhile, the
dominant companies will grow stronger. FCC officials said their reluctance
to regulate does not amount to doing nothing. They have watched keenly as
the market has produced a multitude of high-speed ways to reach the Internet
- cable; DSL (digital subscriber line), a technology that rides over
telephone lines; plus emerging wireless and satellite connections. FCC
Chairman Bill Kennard has argued that new rules might discourage cable
companies from rolling out
the new services, depriving consumers of choice. Though the draft order
launching the FCC inquiry is mostly a long list of questions, it seeks to
put to rest the argument over the technicalities.
[SOURCE: Washington Post, (E1) AUTHOR: Peter S. Goodman]

INTERNATIONAL

CHINA MAY IMPOSE RESTRICTIONS ON OPERATING IN INTERNET SECTOR
Issue: International
Although China pledged to open its Internet sector in preparation for it's
entry to the World Trade Organization last November, it is now discussing
draft laws that could impose draconian restrictions on who can operate in
the country's promising Internet sector. The Internet sector is arguably the
most promising part of the Chinese economy to foreign investment. In the
absence of clear laws, foreign investment banks, venture-capital firms and
technology concerns have taken big stakes in leading electronic-commerce
firms in China. A draft of new telecom law calls for anyone seeking to
operate "Internet and multimedia network services" to apply for a license
from authorities under the State Council,
China's cabinet. The most troubling obstacle would require any foreign
investor in a joint venture engaged in "Internet and multimedia network
services" to have $10 billion in annual revenue over the past two years. The
Chinese partner in such ventures would have to be state controlled, with a
permit to operate in telecommunications and more than $360 million in annual
revenue over the past two years. That would rule out almost every company
currently operating in China's Internet sector, the entire revenues of which
don't approach the $10 billion mark by a long shot.
[SOURCE: Wall Street Journal (A21), AUTHOR: Leslie Chang]
(http://interactive.wsj.com/articles/SB968868084756723036.htm)
(Requires subscription)

ENGLISH WITHOUT TEARS, THANKS TO TV
Issue: International
MovieTalk is a series of CD-ROMs that convert popular American television
shows, like Beverly Hills 90210, into interactive English lessons. The CDs
are being given away by L'Espresso magazine, hoping to sell magazines by
capitalizing on Italians' thirst to improve their English. MovieTalk, a
system designed by the American software company, Softrade International,
has already been marketed in Germany and Japan using episodes of "Beverly
Hills 90210," "Columbo," "Murder, She Wrote," and "Star Trek."
[SOURCE: New York Times (A4), AUTHOR: Alessandra Stanley]
(http://www.nytimes.com/2000/09/14/world/14ROME.html)
(requires registration)

LEGISLATION

MARKUP SESSIONS
Issue: Legislation
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a markup for Wednesday, September 13, 2000, and subsequent days if
necessary, at 3:00 p.m. or 20 minutes after the conclusion of the Health and
Environment Subcommittee hearing in 2123 Rayburn House Office Building. The
Subcommittee will be considering:
(1) H.R. 3011, the Truth in Telephone Billing Act of 1999; and
(2) H.R. 4445, the Reciprocal Compensation Adjustment Act of 2000
The Full Committee will meet in OPEN MARKUP SESSION at 10:00 a.m. on
Thursday, September 14, 2000, and subsequent days if necessary, in 2123
Rayburn House Office Building, to consider the following measures:
1. H.R. 3100, the Know Your Caller Act;
2. H.R. 3850, the Independent Telecommunications Consumer Enhancement
Act of 2000;
3. H.R. 2346, to authorize the enforcement by State and local
governments of certain Federal Communications Commission regulations
regarding use of citizens band radio equipment.
Additional legislation may be noticed for this markup in conformity with
House Rules.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/)

--------------------------------------------------------------

MEDIA & SOCIETY
Disney Bans R-Rated Movie Ads Before 9 P.M. on ABC Network (NYT)
FCC to Examine TV Sex, Violence (WP)
Selling Violence to Children (WP)
...WITH LINKS TO MUCH MORE

POLITICAL DISCOURSE
Bush Says Rats Reference In Ad Was Unintentional (NYT)
Subliminal Headache for Mr. Bush (NYT)

INTERNET
Teenagers Lag Well Behind Adults In Time Spent Online, Study Says (WSJ)
Report Faults Federal Web Sites on Privacy (NYT)
Report: Computers in schools do more harm than good (Merc)
Pennsylvania Launches Competition for 'Digital School
District' Funding (CyberTimes)
Napster's Legal Strategy Relies On 1984 Sony Betamax Ruling (WSJ)
Speech: Internet Telephony: America Is Waiting (FCC)

MERGERS
FCC Proposes Opening AOL's Messaging To Rivals as Part of
Time Warner Deal (WSJ)
FCC Chairman Criticizes AT&T Attempt To Raise Limit on
Cable-TV Ownership (WSJ)

LEGISLATION
Markup Sessions (House)

NTIA
Strategic Plan for 2000-2005 (NTIA)

MEDIA & SOCIETY

DISNEY BANS R-RATED MOVIE ADS BEFORE 9 P.M. ON ABC NETWORK
Issue: Media & Society
The Walt Disney Company announced that it will no longer accept ads for
R-rated movies during the first hour of prime time on its ABC television
network. Disney released comprehensive guidelines for the company in regard
to its marketing practices, many of which were restatements of existing
policies, said John Dreyer, the company's corporate spokesman. The ban on
commercials for R-rated movies on the Disney-owned ABC network is an
extension of an existing policy, Mr. Dreyer said, "but previously there had
been exceptions." He added, "From now on there will be no exceptions."
According to figures from Competitive Media Reports, which tracks television
advertising, movie studios spent $668 million on the four big broadcast
networks last year. For the first half of 2000, the figure has grown to $418
million. For ABC, the figures were $148 million from movie advertising in
1999 and $115 million for the first half of 2000.
[SOURCE: New York Times (A15), AUTHOR: ]
(http://www.nytimes.com/2000/09/13/national/13DISN.html)
(requires registration)

FCC TO EXAMINE TV SEX, VIOLENCE
Issue: Media & Society
Following a Federal Trade Commission report released Monday charging
the entertainment industry with aggressively marketing violent images to
children, the Federal Communications Commission has announced that it
will examine the effects of "sexually explicit and violent" television
programming on children. The agency also said it will look into
broadcasters' advertising practices, including "the promotion of
programming that may not be appropriate for children" at times when
children are most likely to be watching television. Today, both the
Democratic vice presidential nominee, Sen Joseph Lieberman (D-CT), and Lynne
Cheney, wife of Republican vice presidential nominee, will testify at a
Senate Commerce Committee hearing on the FTC's report. During it's 15-month
investigation, the agency found "pervasive and
aggressive marketing of violent movies, music and electronic games to
children."
[SOURCE: Washington Post (E3), AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A58692-2000Sep12.html)
See Also:
MARKETING VIOLENCE TO CHILDREN
The Full Committee hearing on Marketing Violence to Children will be in Room
216 of the Hart Senate Office Building. The hearing is scheduled for
Wednesday, September 13, at 9:30 a.m. Senator John McCain (R-AZ) will preside.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-208.htm)

SELLING VIOLENCE TO CHILDREN
Issue: Media & Society
[Editorial] The year-long study released Monday by the Federal Trade Commission
documents how the movie, recording and video-games industries have
deliberately undermined their own voluntary ratings systems by
continuing to market adult content to children. Of 44 movies studied,
marketing plans for 28 specifically cited children younger than 17 as
part of the target audience. In light of these findings, the
entertainment industry seems hypocritical in its long time assertion
that it is the parent's job to determine what movies or music or video
games are suitable for their children. It seems that until the industry
stops pitching material to children that they themselves have identified
as not appropriate, parents will not have the chance to do assert their
control.
[SOURCE: Washington Post (A34), AUTHOR: Washington Post Editorial Staff]
(http://washingtonpost.com/wp-dyn/articles/A60139-2000Sep12.html)
See Also:
I WILL WORK WITH INDUSTRY
[SOURCE: USAToday (23A), AUTHOR: Gov George W. Bush (TX)]
(http://www.usatoday.com/usatonline/20000913/2637039s.htm)
I AIM TO SUPPORT PARENTS
[SOURCE: USAToday (23A), AUTHOR: Vice President Al Gore]
(http://www.usatoday.com/usatonline/20000913/2637043s.htm)

POLITICAL DISCOURSE

BUSH SAYS RATS REFERENCE IN AD WAS UNINTENTIONAL
Issue: Political Discourse
Answering questions about RATS in Republican TV ads attacking Vice President
Gore, Gov George Bush said: "Conspiracy theories abound in American
politics," Mr. Bush said early this morning at an airport news conference in
Orlando, Fla., trying to make light of the situation. But, he added, "I am
convinced that this is not intentional." "One frame out of 900 is hardly a
conspiracy, it seems like to me," Gov Bush said. Bush's aides then tried to
turn the tables, pointing to a Democratic ad released a week ago that they
considered misleading. That advertisement, which criticized Mr. Bush over
health care in Texas, used a headline from The New York Daily News in such a
way that made it look as if it were on the front page when in fact the
article ran inside the paper. "I would say that this is a case of somebody
doing something that was a) deliberate and b) clearly designed to mislead,"
said Mr. Bush's chief media adviser, Mark McKinnon. "Because of that the
D.N.C. ad should be subject to much greater scrutiny."
[SOURCE: New York Times (A17), AUTHOR: Frank Bruni]
(http://www.nytimes.com/2000/09/13/politics/13BUSH.html)
(requires registration)
See Also:
SUBLIMINAL HEADACHE FOR MR BUSH
[Editorial] Subliminal messages are regarded as unethical by the ad industry
and unfairly deceptive by the Federal Communications Commission, so Gov
Bush, the Times suggest, should do more than to just pull the "RATS" ad in
question, especially since Alex Castellanos, who produced the commercial for
the Republican National Committee, has not kept his story straight. Mr.
Castellanos originally told Richard Berke of The Times that the use of the
word was "purely accidental." Yesterday he said he was using a "visual
drumbeat designed to make you look at the word bureaucrats." That sounds to
us like a declaration of intent to use subliminal techniques by Mr.
Castellanos, who is known as a creator of attack ads. If Mr. Bush really
means that such techniques are not acceptable to his campaign, perhaps he
should sever his connection with Mr. Castellanos.
[SOURCE: New York Times (A30), AUTHOR: NYT Editorial Staff]
(http://www.nytimes.com/2000/09/13/opinion/13WED3.html)
(requires registration)
GRILLED OVER RATS
Maureen Dowd's humerous look at RATS in the ads; complete with subliminal
messages of its own.
[SOURCE: New York Times (A31), AUTHOR: Maureen Dowd]
(http://www.nytimes.com/)
(requires registration)

INTERNET

TEENAGERS LAG WELL BEHIND ADULTS IN TIME SPENT ONLINE, STUDY SAYS
Issue: Internet
New research from Jupiter Communications and Media Metrix finds that
teenagers spend far less time online than adults. Teens from 12 to 17 years
old spent an average of 303 minutes online during the month of June 2000,
the most recent month for which Media Metrix data were available when the
research was conducted. They logged on eight of the 30 days in the month.
Young adults 18 to 34 spent an average of 656 minutes online and logged on
13 days. Adults 35 to 49 spent an average of 804 minutes and logged on 15
days. The Media Metrix data include time spent online at home and at work,
but not in school. Jupiter analysts attributed teenagers' comparatively
lower Internet use to a number of factors, including schedules crowded with
school and after-school activities and the need to share computer time at
home with other family members. In addition, the research indicated that
teens see the Web mainly as a medium for entertainment and communication,
not as the productivity tool that adults see. Teens are early online
adopters and tend to experiment with new and innovative online products. The
top three online activities were the same for boys and girls: receiving and
sending e-mail, using a search engine and using an instant-messaging
service.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Melinda Patterson
Grenier]
(http://interactive.wsj.com/articles/SB96879717236076668.htm)
(Requires subscription)

REPORT FAULTS FEDERAL WEB SITES ON PRIVACY
Issue: Privacy
As reported by the Wall Street Journal yesterday, a new General Accounting
Office study (http://www.gao.gov/whatsnew.htm) reports that most federal Web
sites do not meet Federal Trade Commission privacy standards.
[SOURCE: New York Times (A19)]
(http://www.nytimes.com/2000/09/13/technology/13PRIV.html)
(requires registration)
See Also:
On September 12, the General Accounting Office (GAO) published its study of
privacy policies posted on government websites. The study found that
ninety-seven percent of government agency websites failed to address
principles of Fair Information Practices in privacy statements. The Privacy
Act guarantees all citizens with certain rights with respect to their
personal information collected and stored by government agencies, even if
not mentioned in a privacy policy.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

REPORT: COMPUTERS IN SCHOOLS DO MORE HARM THAN GOOD
Issue: EdTech
According to a new report by the Alliance for Childhood, there should be an
immediate moratorium on adding computers to classrooms so the presumed
benefits and hazards can be studied in depth. The report, "Fools Gold: A
Critical Look at Computers in Childhood," claims that computers pose hazards
to young children such as eyestrain and obesity and deprives them of
necessary creativity, human relationships and hands-on learning. The report
also contends that the billions spent on equipping and wiring classrooms is
fueled more by parent fears and corporate sales pitches than any real
evidence of computers helping children learn. "To speak against computers is
considered blasphemous, not only in Silicon Valley but around the country,"
said Lowell Monke, an alliance founding member and assistant professor of
education at Wittenberg University in Ohio. "It's time for a few heretics to
stand up and say we need to look at this more closely. We can't just sit on
this bandwagon charging down the road with our public funds and our
children." While the benefits of computers may not have scientific support,
University of California-Berkeley psychologist Alison Gopnik, author of "The
Scientist in the Crib," said neither do the claims of the alliance. Still,
she said, "Playing with building blocks is more profound intellectually than
anything a child could do in front of a computer." Sun Microsystems Vice
President Kim Jones denies that profit is the sole motivation for corporate
involvement in schools. She said her company made no money by organizing
Netday, a volunteer effort in 1996 to wire 12,000 California schools to the
Internet. But she says rather than eliminating technology, the industry
needs to make it simpler to use. "I agree 100 percent that technology has
not been very effective in the classroom," said Jones, who oversees global
education and research. "I would tend to agree with them that probably
studies should be done."
[SOURCE: San Jose Mercury News, AUTHOR: Katherine Corcoran]
(http://www.mercurycenter.com/svtech/news/top/docs/comp091300.htm)

PENNSYLVANIA LAUNCHES COMPETITION FOR 'DIGITAL SCHOOL DISTRICT' FUNDING
Issue: EdTech
Pennsylvania's department of education is holding a competition aimed at
getting schools to develop innovative plans which move beyond traditional
uses of technology in education. "There are a lot of virtual schools out
there, or distance learning," said John Bailey, director of the state
education department's Office of Educational Technology. "We're trying to do
more than that, where everything in the school is digitized. How can we
think completely differently?" School district officials must file a 10-page
summary of their vision by next month, after which state officials will
select 20 districts. Each of those districts will then be required to
prepare a more comprehensive plan by December, when six top districts will
be picked. Those finalists will be required to provide an even more
extensive plan detailing how their plans would work. The two winning
districts will split $4 million, using the additional funding to implement
their projects. An additional $1 million will be used to promote the two
model digital districts.
[SOURCE: CyberTimes, AUTHOR: Rebecca Weiner (rweiner ( at )nytimes.com)]
(http://www.nytimes.com/2000/09/13/technology/13EDUCATION.html)
(requires registration)

NAPSTER'S LEGAL STRATEGY RELIES ON 1984 SONY BETAMAX RULING
Issue: Intellectual Property
In its attempt to reverse a ruling by a district-court judge requiring it to
stop listing copyright-protected music on its Web site, Napster is pinning
its courtroom hopes on a 1984 Supreme Court decision. That decision not
only legitimized Sony's Betamax VCR, but also provided legal
groundwork for future clashes between copyright law and a new technology.
The high court's 5-4 decision 16 years ago in favor of the Sony Betamax is
one of the pillars of Napster's defense as it heads toward an Oct. 2 hearing
before the Ninth U.S. Circuit Court of Appeals in San Francisco. In the Sony
case, the high court ruled that a technology that might be used for piracy
and other copyright violations cannot be banned -- as long as it was also
capable of "substantial noninfringing uses" that were legal. The court was
saying, in effect, that society shouldn't be deprived of a potentially
useful new technology just because of a few bad apples. Napster is citing
the Sony case to say that even if the downloading of copyright songs is
illegal, the company should prevail. The Web music trading company argues
that other parts of its site are legal, such as its promotion of works by
unknown artists who have consented to have their songs listed on the site
for downloading.
[SOURCE: Wall Street Journal (B1), AUTHOR: Lee Gomes]
(http://interactive.wsj.com/articles/SB968799927780857734.htm)
(Requires subscription)

SPEECH: INTERNET TELEPHONY: AMERICA IS WAITING
Issue: Telephony
Chairman Kennard's Remarks before the Voice Over Net Conference. "Treating
incumbents and newcomers in a market the same would only result in creating
barriers to new entrants and killing innovation." He said it would not be
fair to treat start-up same as 100-year-old incumbent that owned 96% of
local market: "It just doesn't make sense to apply 100-year-old regulations
meant for copper wires and giant switching stations to the IP networks of
today." Goal is not to saddle new technology with regulation, even if it
would appear to create regulatory symmetry.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/2000/spwek019.html)

MERGERS

FCC PROPOSES OPENING AOL'S MESSAGING TO RIVALS AS PART OF TIME WARNER DEAL
Issue: Merger
The Federal Communications Commission's staff has proposed that America
Online be forced to open its popular instant-messaging service to rivals as
a condition of approving its acquisition of Time Warner. Consequently, Time
Warner could be forced to open its high-speed cable lines to competitors
beyond the extent to which the companies already have consented. The
companies have said they intend to open their cable lines to competitors and
will eventually open their instant-messaging services, but have fought some
of the conditions now under consideration at the FCC and the Federal Trade
Commission, which is conducting its own review. The FCC staff proposals are
only a first step in the merger review, which will continue for another
month before it goes to the full commission for a vote. The FCC's main
concern has been to have the merging companies give rival Internet service
providers access to Time Warner's high-speed cable lines. The proposals by
the FCC staff show the initial thinking of regulators who could make or
break the deal.
[SOURCE: Wall Street Journal (A3), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB968800353474056920.htm)
(Requires subscription)

FCC CHAIRMAN CRITICIZES AT&T ATTEMPT TO RAISE LIMIT ON CABLE-TV OWNERSHIP
Issue: Mergers
Federal Communications Commission Chairman William Kennard has
denounced AT&T's effort to change a law it had agreed to abide by when its
merger with cable company MediaOne Group was approved by the agency in
June. AT&T is lobbying to attach language to an appropriations bill that
would raise the cap on cable-TV industry ownership, which now stands at
facilities reaching 30% of cable viewers. AT&T has been fighting the rule in
court. "With the ink hardly dry on the merger order, AT&T is trying to undo
its obligations," Mr. Kennard said in an interview late Tuesday. AT&T
confirmed that it is trying to change the rule but staunchly denied it is
trying to do so to get out of conditions placed on its MediaOne merger. Mr.
Kennard said such attempts to rewrite laws "in the dead of night" exclude
the public from matters that directly affect them. "We wake up the next
morning and find the law has been changed," he said.
[SOURCE: Wall Street Journal (A12), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB96880982444665989.htm)
(Requires subscription)

LEGISLATION

MARKUP SESSIONS
Issue: Legislation
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a markup for Wednesday, September 13, 2000, and subsequent days if
necessary, at 3:00 p.m. or 20 minutes after the conclusion of the Health and
Environment Subcommittee hearing in 2123 Rayburn House Office Building. The
Subcommittee will be considering:
(1) H.R. 3011, the Truth in Telephone Billing Act of 1999; and
(2) H.R. 4445, the Reciprocal Compensation Adjustment Act of 2000
The Full Committee will meet in OPEN MARKUP SESSION at 10:00 a.m. on
Thursday, September 14, 2000, and subsequent days if necessary, in 2123
Rayburn House Office Building, to consider the following measures:
1. H.R. 3100, the Know Your Caller Act;
2. H.R. 3850, the Independent Telecommunications Consumer Enhancement
Act of 2000;
3. H.R. 2346, to authorize the enforcement by State and local
governments of certain Federal Communications Commission regulations
regarding use of citizens band radio equipment.
Additional legislation may be noticed for this markup in conformity with
House Rules.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/)

NTIA

STRATEGIC PLAN FOR 2000-2005
Issue: NTIA
The Draft Department of Commerce Strategic Plan for 2000-2005 is available
for review and comment at http://www.doc.gov/bmi/budget/strtgc/2001sp.pdf .
By September 15, please provide your comments to Bill Tatter
(BTatter( at )doc.gov). There will also be a Department of Commerce Stakeholders
meeting on September 19 from 3 to 4:30 PM in B841A of the Herbert Hoover
Building, 14th and Constitution Aves., N.W., Washington, DC 20230 in Room
B841A.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/new.html)

--------------------------------------------------------------

MEDIA & SOCIETY
Disney Bans R-Rated Movie Ads Before 9 P.M. on ABC Network (NYT)
FCC to Examine TV Sex, Violence (WP)
Selling Violence to Children (WP)
...WITH LINKS TO MUCH MORE

POLITICAL DISCOURSE
Bush Says Rats Reference In Ad Was Unintentional (NYT)
Subliminal Headache for Mr. Bush (NYT)

INTERNET
Teenagers Lag Well Behind Adults In Time Spent Online, Study Says (WSJ)
Report Faults Federal Web Sites on Privacy (NYT)
Report: Computers in schools do more harm than good (Merc)
Pennsylvania Launches Competition for 'Digital School
District' Funding (CyberTimes)
Napster's Legal Strategy Relies On 1984 Sony Betamax Ruling (WSJ)
Speech: Internet Telephony: America Is Waiting (FCC)

MERGERS
FCC Proposes Opening AOL's Messaging To Rivals as Part of
Time Warner Deal (WSJ)
FCC Chairman Criticizes AT&T Attempt To Raise Limit on
Cable-TV Ownership (WSJ)

LEGISLATION
Markup Sessions (House)

NTIA
Strategic Plan for 2000-2005 (NTIA)

MEDIA & SOCIETY

DISNEY BANS R-RATED MOVIE ADS BEFORE 9 P.M. ON ABC NETWORK
Issue: Media & Society
The Walt Disney Company announced that it will no longer accept ads for
R-rated movies during the first hour of prime time on its ABC television
network. Disney released comprehensive guidelines for the company in regard
to its marketing practices, many of which were restatements of existing
policies, said John Dreyer, the company's corporate spokesman. The ban on
commercials for R-rated movies on the Disney-owned ABC network is an
extension of an existing policy, Mr. Dreyer said, "but previously there had
been exceptions." He added, "From now on there will be no exceptions."
According to figures from Competitive Media Reports, which tracks television
advertising, movie studios spent $668 million on the four big broadcast
networks last year. For the first half of 2000, the figure has grown to $418
million. For ABC, the figures were $148 million from movie advertising in
1999 and $115 million for the first half of 2000.
[SOURCE: New York Times (A15), AUTHOR: ]
(http://www.nytimes.com/2000/09/13/national/13DISN.html)
(requires registration)

FCC TO EXAMINE TV SEX, VIOLENCE
Issue: Media & Society
Following a Federal Trade Commission report released Monday charging
the entertainment industry with aggressively marketing violent images to
children, the Federal Communications Commission has announced that it
will examine the effects of "sexually explicit and violent" television
programming on children. The agency also said it will look into
broadcasters' advertising practices, including "the promotion of
programming that may not be appropriate for children" at times when
children are most likely to be watching television. Today, both the
Democratic vice presidential nominee, Sen Joseph Lieberman (D-CT), and Lynne
Cheney, wife of Republican vice presidential nominee, will testify at a
Senate Commerce Committee hearing on the FTC's report. During it's 15-month
investigation, the agency found "pervasive and
aggressive marketing of violent movies, music and electronic games to
children."
[SOURCE: Washington Post (E3), AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A58692-2000Sep12.html)
See Also:
MARKETING VIOLENCE TO CHILDREN
The Full Committee hearing on Marketing Violence to Children will be in Room
216 of the Hart Senate Office Building. The hearing is scheduled for
Wednesday, September 13, at 9:30 a.m. Senator John McCain (R-AZ) will preside.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-208.htm)

SELLING VIOLENCE TO CHILDREN
Issue: Media & Society
[Editorial] The year-long study released Monday by the Federal Trade Commission
documents how the movie, recording and video-games industries have
deliberately undermined their own voluntary ratings systems by
continuing to market adult content to children. Of 44 movies studied,
marketing plans for 28 specifically cited children younger than 17 as
part of the target audience. In light of these findings, the
entertainment industry seems hypocritical in its long time assertion
that it is the parent's job to determine what movies or music or video
games are suitable for their children. It seems that until the industry
stops pitching material to children that they themselves have identified
as not appropriate, parents will not have the chance to do assert their
control.
[SOURCE: Washington Post (A34), AUTHOR: Washington Post Editorial Staff]
(http://washingtonpost.com/wp-dyn/articles/A60139-2000Sep12.html)
See Also:
I WILL WORK WITH INDUSTRY
[SOURCE: USAToday (23A), AUTHOR: Gov George W. Bush (TX)]
(http://www.usatoday.com/usatonline/20000913/2637039s.htm)
I AIM TO SUPPORT PARENTS
[SOURCE: USAToday (23A), AUTHOR: Vice President Al Gore]
(http://www.usatoday.com/usatonline/20000913/2637043s.htm)

POLITICAL DISCOURSE

BUSH SAYS RATS REFERENCE IN AD WAS UNINTENTIONAL
Issue: Political Discourse
Answering questions about RATS in Republican TV ads attacking Vice President
Gore, Gov George Bush said: "Conspiracy theories abound in American
politics," Mr. Bush said early this morning at an airport news conference in
Orlando, Fla., trying to make light of the situation. But, he added, "I am
convinced that this is not intentional." "One frame out of 900 is hardly a
conspiracy, it seems like to me," Gov Bush said. Bush's aides then tried to
turn the tables, pointing to a Democratic ad released a week ago that they
considered misleading. That advertisement, which criticized Mr. Bush over
health care in Texas, used a headline from The New York Daily News in such a
way that made it look as if it were on the front page when in fact the
article ran inside the paper. "I would say that this is a case of somebody
doing something that was a) deliberate and b) clearly designed to mislead,"
said Mr. Bush's chief media adviser, Mark McKinnon. "Because of that the
D.N.C. ad should be subject to much greater scrutiny."
[SOURCE: New York Times (A17), AUTHOR: Frank Bruni]
(http://www.nytimes.com/2000/09/13/politics/13BUSH.html)
(requires registration)
See Also:
SUBLIMINAL HEADACHE FOR MR BUSH
[Editorial] Subliminal messages are regarded as unethical by the ad industry
and unfairly deceptive by the Federal Communications Commission, so Gov
Bush, the Times suggest, should do more than to just pull the "RATS" ad in
question, especially since Alex Castellanos, who produced the commercial for
the Republican National Committee, has not kept his story straight. Mr.
Castellanos originally told Richard Berke of The Times that the use of the
word was "purely accidental." Yesterday he said he was using a "visual
drumbeat designed to make you look at the word bureaucrats." That sounds to
us like a declaration of intent to use subliminal techniques by Mr.
Castellanos, who is known as a creator of attack ads. If Mr. Bush really
means that such techniques are not acceptable to his campaign, perhaps he
should sever his connection with Mr. Castellanos.
[SOURCE: New York Times (A30), AUTHOR: NYT Editorial Staff]
(http://www.nytimes.com/2000/09/13/opinion/13WED3.html)
(requires registration)
GRILLED OVER RATS
Maureen Dowd's humerous look at RATS in the ads; complete with subliminal
messages of its own.
[SOURCE: New York Times (A31), AUTHOR: Maureen Dowd]
(http://www.nytimes.com/)
(requires registration)

INTERNET

TEENAGERS LAG WELL BEHIND ADULTS IN TIME SPENT ONLINE, STUDY SAYS
Issue: Internet
New research from Jupiter Communications and Media Metrix finds that
teenagers spend far less time online than adults. Teens from 12 to 17 years
old spent an average of 303 minutes online during the month of June 2000,
the most recent month for which Media Metrix data were available when the
research was conducted. They logged on eight of the 30 days in the month.
Young adults 18 to 34 spent an average of 656 minutes online and logged on
13 days. Adults 35 to 49 spent an average of 804 minutes and logged on 15
days. The Media Metrix data include time spent online at home and at work,
but not in school. Jupiter analysts attributed teenagers' comparatively
lower Internet use to a number of factors, including schedules crowded with
school and after-school activities and the need to share computer time at
home with other family members. In addition, the research indicated that
teens see the Web mainly as a medium for entertainment and communication,
not as the productivity tool that adults see. Teens are early online
adopters and tend to experiment with new and innovative online products. The
top three online activities were the same for boys and girls: receiving and
sending e-mail, using a search engine and using an instant-messaging
service.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Melinda Patterson
Grenier]
(http://interactive.wsj.com/articles/SB96879717236076668.htm)
(Requires subscription)

REPORT FAULTS FEDERAL WEB SITES ON PRIVACY
Issue: Privacy
As reported by the Wall Street Journal yesterday, a new General Accounting
Office study (http://www.gao.gov/whatsnew.htm) reports that most federal Web
sites do not meet Federal Trade Commission privacy standards.
[SOURCE: New York Times (A19)]
(http://www.nytimes.com/2000/09/13/technology/13PRIV.html)
(requires registration)
See Also:
On September 12, the General Accounting Office (GAO) published its study of
privacy policies posted on government websites. The study found that
ninety-seven percent of government agency websites failed to address
principles of Fair Information Practices in privacy statements. The Privacy
Act guarantees all citizens with certain rights with respect to their
personal information collected and stored by government agencies, even if
not mentioned in a privacy policy.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

REPORT: COMPUTERS IN SCHOOLS DO MORE HARM THAN GOOD
Issue: EdTech
According to a new report by the Alliance for Childhood, there should be an
immediate moratorium on adding computers to classrooms so the presumed
benefits and hazards can be studied in depth. The report, "Fools Gold: A
Critical Look at Computers in Childhood," claims that computers pose hazards
to young children such as eyestrain and obesity and deprives them of
necessary creativity, human relationships and hands-on learning. The report
also contends that the billions spent on equipping and wiring classrooms is
fueled more by parent fears and corporate sales pitches than any real
evidence of computers helping children learn. "To speak against computers is
considered blasphemous, not only in Silicon Valley but around the country,"
said Lowell Monke, an alliance founding member and assistant professor of
education at Wittenberg University in Ohio. "It's time for a few heretics to
stand up and say we need to look at this more closely. We can't just sit on
this bandwagon charging down the road with our public funds and our
children." While the benefits of computers may not have scientific support,
University of California-Berkeley psychologist Alison Gopnik, author of "The
Scientist in the Crib," said neither do the claims of the alliance. Still,
she said, "Playing with building blocks is more profound intellectually than
anything a child could do in front of a computer." Sun Microsystems Vice
President Kim Jones denies that profit is the sole motivation for corporate
involvement in schools. She said her company made no money by organizing
Netday, a volunteer effort in 1996 to wire 12,000 California schools to the
Internet. But she says rather than eliminating technology, the industry
needs to make it simpler to use. "I agree 100 percent that technology has
not been very effective in the classroom," said Jones, who oversees global
education and research. "I would tend to agree with them that probably
studies should be done."
[SOURCE: San Jose Mercury News, AUTHOR: Katherine Corcoran]
(http://www.mercurycenter.com/svtech/news/top/docs/comp091300.htm)

PENNSYLVANIA LAUNCHES COMPETITION FOR 'DIGITAL SCHOOL DISTRICT' FUNDING
Issue: EdTech
Pennsylvania's department of education is holding a competition aimed at
getting schools to develop innovative plans which move beyond traditional
uses of technology in education. "There are a lot of virtual schools out
there, or distance learning," said John Bailey, director of the state
education department's Office of Educational Technology. "We're trying to do
more than that, where everything in the school is digitized. How can we
think completely differently?" School district officials must file a 10-page
summary of their vision by next month, after which state officials will
select 20 districts. Each of those districts will then be required to
prepare a more comprehensive plan by December, when six top districts will
be picked. Those finalists will be required to provide an even more
extensive plan detailing how their plans would work. The two winning
districts will split $4 million, using the additional funding to implement
their projects. An additional $1 million will be used to promote the two
model digital districts.
[SOURCE: CyberTimes, AUTHOR: Rebecca Weiner (rweiner ( at )nytimes.com)]
(http://www.nytimes.com/2000/09/13/technology/13EDUCATION.html)
(requires registration)

NAPSTER'S LEGAL STRATEGY RELIES ON 1984 SONY BETAMAX RULING
Issue: Intellectual Property
In its attempt to reverse a ruling by a district-court judge requiring it to
stop listing copyright-protected music on its Web site, Napster is pinning
its courtroom hopes on a 1984 Supreme Court decision. That decision not
only legitimized Sony's Betamax VCR, but also provided legal
groundwork for future clashes between copyright law and a new technology.
The high court's 5-4 decision 16 years ago in favor of the Sony Betamax is
one of the pillars of Napster's defense as it heads toward an Oct. 2 hearing
before the Ninth U.S. Circuit Court of Appeals in San Francisco. In the Sony
case, the high court ruled that a technology that might be used for piracy
and other copyright violations cannot be banned -- as long as it was also
capable of "substantial noninfringing uses" that were legal. The court was
saying, in effect, that society shouldn't be deprived of a potentially
useful new technology just because of a few bad apples. Napster is citing
the Sony case to say that even if the downloading of copyright songs is
illegal, the company should prevail. The Web music trading company argues
that other parts of its site are legal, such as its promotion of works by
unknown artists who have consented to have their songs listed on the site
for downloading.
[SOURCE: Wall Street Journal (B1), AUTHOR: Lee Gomes]
(http://interactive.wsj.com/articles/SB968799927780857734.htm)
(Requires subscription)

SPEECH: INTERNET TELEPHONY: AMERICA IS WAITING
Issue: Telephony
Chairman Kennard's Remarks before the Voice Over Net Conference. "Treating
incumbents and newcomers in a market the same would only result in creating
barriers to new entrants and killing innovation." He said it would not be
fair to treat start-up same as 100-year-old incumbent that owned 96% of
local market: "It just doesn't make sense to apply 100-year-old regulations
meant for copper wires and giant switching stations to the IP networks of
today." Goal is not to saddle new technology with regulation, even if it
would appear to create regulatory symmetry.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/2000/spwek019.html)

MERGERS

FCC PROPOSES OPENING AOL'S MESSAGING TO RIVALS AS PART OF TIME WARNER DEAL
Issue: Merger
The Federal Communications Commission's staff has proposed that America
Online be forced to open its popular instant-messaging service to rivals as
a condition of approving its acquisition of Time Warner. Consequently, Time
Warner could be forced to open its high-speed cable lines to competitors
beyond the extent to which the companies already have consented. The
companies have said they intend to open their cable lines to competitors and
will eventually open their instant-messaging services, but have fought some
of the conditions now under consideration at the FCC and the Federal Trade
Commission, which is conducting its own review. The FCC staff proposals are
only a first step in the merger review, which will continue for another
month before it goes to the full commission for a vote. The FCC's main
concern has been to have the merging companies give rival Internet service
providers access to Time Warner's high-speed cable lines. The proposals by
the FCC staff show the initial thinking of regulators who could make or
break the deal.
[SOURCE: Wall Street Journal (A3), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB968800353474056920.htm)
(Requires subscription)

FCC CHAIRMAN CRITICIZES AT&T ATTEMPT TO RAISE LIMIT ON CABLE-TV OWNERSHIP
Issue: Mergers
Federal Communications Commission Chairman William Kennard has
denounced AT&T's effort to change a law it had agreed to abide by when its
merger with cable company MediaOne Group was approved by the agency in
June. AT&T is lobbying to attach language to an appropriations bill that
would raise the cap on cable-TV industry ownership, which now stands at
facilities reaching 30% of cable viewers. AT&T has been fighting the rule in
court. "With the ink hardly dry on the merger order, AT&T is trying to undo
its obligations," Mr. Kennard said in an interview late Tuesday. AT&T
confirmed that it is trying to change the rule but staunchly denied it is
trying to do so to get out of conditions placed on its MediaOne merger. Mr.
Kennard said such attempts to rewrite laws "in the dead of night" exclude
the public from matters that directly affect them. "We wake up the next
morning and find the law has been changed," he said.
[SOURCE: Wall Street Journal (A12), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB96880982444665989.htm)
(Requires subscription)

LEGISLATION

MARKUP SESSIONS
Issue: Legislation
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a markup for Wednesday, September 13, 2000, and subsequent days if
necessary, at 3:00 p.m. or 20 minutes after the conclusion of the Health and
Environment Subcommittee hearing in 2123 Rayburn House Office Building. The
Subcommittee will be considering:
(1) H.R. 3011, the Truth in Telephone Billing Act of 1999; and
(2) H.R. 4445, the Reciprocal Compensation Adjustment Act of 2000
The Full Committee will meet in OPEN MARKUP SESSION at 10:00 a.m. on
Thursday, September 14, 2000, and subsequent days if necessary, in 2123
Rayburn House Office Building, to consider the following measures:
1. H.R. 3100, the Know Your Caller Act;
2. H.R. 3850, the Independent Telecommunications Consumer Enhancement
Act of 2000;
3. H.R. 2346, to authorize the enforcement by State and local
governments of certain Federal Communications Commission regulations
regarding use of citizens band radio equipment.
Additional legislation may be noticed for this markup in conformity with
House Rules.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/)

NTIA

STRATEGIC PLAN FOR 2000-2005
Issue: NTIA
The Draft Department of Commerce Strategic Plan for 2000-2005 is available
for review and comment at http://www.doc.gov/bmi/budget/strtgc/2001sp.pdf .
By September 15, please provide your comments to Bill Tatter
(BTatter( at )doc.gov). There will also be a Department of Commerce Stakeholders
meeting on September 19 from 3 to 4:30 PM in B841A of the Herbert Hoover
Building, 14th and Constitution Aves., N.W., Washington, DC 20230 in Room
B841A.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/new.html)

--------------------------------------------------------------

MEDIA & SOCIETY
Gore Takes Tough Stand on Violent Entertainment (NYT)

POLITICAL DISCOURSE
Important Questions Facing All of America This Election Year (SJM)
A Close Race Deserves Close Look at TV Coverage (USA)

MERGERS
AOL-Time Warner Rivals Preparing for Interactive TV Fight (NYT)

ECOMMERCE
Entertainment Web Sites Facing Failures and Cuts (NYT)
EU Antitrust Regulators List Concerns Over AOL, Time Warner,
EMI Deal (WSJ)

INTELLECTUAL PROPERTY
New E-Book Technology Helps Protect Copyrights (WSJ)
U.S. Copyright Office Rejects the Defense Offered by Napster,
Says Law Is Violated (WSJ)

LEGAL ISSUES
When the Judge Can't Really Judge (NYT)

WIRELESS
Cell Phones: Facts, Fiction, Frequency (FCC)

MEDIA & SOCIETY

GORE TAKES TOUGH STAND ON VIOLENT ENTERTAINMENT
Issue: Media & Entertainment
In an appeal to women voters in children, Vice President Gore said that if
the entertainment industry does not stop marketing violent films, recordings
and video games to children he and Sen Lieberman (D-CT) would propose
legislation or new regulatory authority allowing the federal government to
sanction the industry. With a nod to the First Amendment, VP Gore is saying
he would encourage the Federal Trade Commission to move against the industry
by using its power to prohibit false and deceptive advertising. Gore's
remarks come on the eve of the release of a trade commission report that is
expected to harshly criticize the entertainment industry for marketing
violent, adult-rated entertainment to young people. The report concludes
that despite voluntary rating and labeling systems adopted over the years,
the makers of films, recordings and video games routinely use marketing
strategies to entice young consumers into buying products that the
manufacturers themselves deem inappropriate. The commission study, which
relies on internal marketing documents provided by the industry, found that
the companies did this largely by placing advertising in publications and
television broadcasts that appeal to young people. Their will be a Senate
hearing on the report on Wednesday.
[SOURCE: New York Times (A1), AUTHOR: Kevin Sack]
(http://www.nytimes.com/2000/09/11/politics/11GORE.html)
(requires registration)
See Also:
MARKETING VIOLENCE TO CHILDREN
Senator John McCain (R-AZ), Chairman of the Committee on Commerce, Science,
and Transportation, and Senator Fritz Hollings (D-SC), Ranking Democrat,
today announced the witnesses for the Full Committee hearing on Marketing
Violence to Children. Members of the Committee will examine a report to be
released by the Federal Trade Commission that reviews self regulation and
industry practices in the motion picture, music recording and electronic
game industries.
The hearing is scheduled for Wednesday, September 13, at 9:30 a.m. in room
253 of the Russell Senate Office Building. Senator McCain will preside.
[See the URL below for the long witness list]
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-205.htm)

POLITICAL DISCOURSE

IMPORTANT QUESTIONS FACING ALL OF AMERICA THIS ELECTION YEAR
Issue: Political Discourse
Although you may hear politician using the word "technology" a lot this
political season, they'll only be talking about the small stuff, not what
matters most. In fact, most of the rhetoric is either sound candy without
plans or a play for constituent support. Dan Gillmor, technology columnist
for the San Jose Mercury, lists the technology issues that aren't talked
about, because they can't fit a 30 second soundbite: 1) Intellectual
property - the industry grip on copyright, the insanity of trademark
concerns, domain name allocations and a mismanaged patent system approving
virtually every tech application that crosses its desk. 2) Political
Authority - "Digital technology is turning borders into suggestions, and
moving power away from governments to corporations, non-governmental
organizations and individuals." 3) Capital - Current industrial policies
favor Internet merchants over Main Street merchants, eroding local tax
bases. 4) "McWorld" - The preponderance of an American-flavored,
English-based Internet mocks the value of locals culture and cuisine. 5)
Economic dislocation - An economy that values minds over muscles can be
displaced by a smarter, better educated economy. With entrepreneurial
strength and educational achievement moving forward in other parts of the
world, America could see itself become irrelevant in a digital world. 6) The
control of community assets - Remember when Congress gave the _public's
airwaves_ to broadcasters? Remember how the broadcasters fought and nearly
crushed community low-powered radio stations to protect "their" resource? 7)
Checks on the Economy - Antitrust enforcement promotes competition. But it's
effectively under attack. What will be the final social product of the rash
of mergers in the communications/technology industry?
[SOURCE: San Jose Mercury, AUTHOR: Dan Gillmor]
(http://www.mercurycenter.com/svtech/columns/front/docs/dg091000.htm)

A CLOSE RACE DESERVES CLOSE LOOK AT TV COVERAGE
Issue: Political Discourse
From now until the election, USAToday will join with researchers the
Brookings Institution and the Center for Media and Public Affairs to analyze
major network television network coverage of the presidential contest. They
will be looking at whether TV helps voters prepare to cast an informed
ballot. One question will be, how much coverage is there? TV reporting of
the presidential race dropped 45% from 1992 to 1996. So far, the Center for
Media and Public Affairs found that network campaign coverage has fallen 33%
from the same period in 1996. In addition to measuring the amount of
content, USAToday will also look at the TV's coverage of the presidential
race with an eye toward what content?; how negative?; and, how objective?
[SOURCE: USAToday (18A), AUTHOR: Stephen Hess]
(http://www.usatoday.com/usatonline/20000911/2629145s.htm)

MERGERS

AOL-TIME WARNER RIVALS PREPARING FOR INTERACTIVE TV FIGHT
Issue: Mergers
"I think there are $10 billion to $15 billion in incremental profit from
interactive television," said Steven Heyer, the president of Time Warner's
Turner Broadcasting unit. "The traditional relationships between cable
operators, programming networks and set-top box manufacturers is being
reinvented and there is no equilibrium with how the profits will be shared."
Now, as part of the government's review of the America Online/Time Warner
merger, the battle over interactive television is receiving more attention.
Consumer groups and competitors fear that the combined AOL Time Warner,
which would run television networks, own cable systems and control nearly
half of the consumer market for Internet access, would be so powerful it
could stifle other would-be providers of interactive television. Early
examples of interactive television have let viewers chat online while
watching episodes of "Survivor," use their remote controls to play along
with "Wheel of Fortune," buy the CD of whatever band is playing on "The
Tonight Show," check stock quotes while watching CNBC and order a $1 coupon
for Clorox Bleach while watching a commercial.
[SOURCE: New York Times (C1), AUTHOR: Saul Hansell]
(http://www.nytimes.com/2000/09/11/technology/11TUBE.html)
(requires registration)

EU ANTITRUST REGULATORS LIST CONCERNS OVER AOL, TIME WARNER, EMI DEAL
Issue: Merger
To appease European competition regulators, AOL and Time Warner has offered
a raft of business-conduct promises and pledged to distance itself from
German media giant Bertelsmann AG, and has also promised not to discriminate
against third-party music companies that would like to distribute their
products through AOL. But EMI Group PLC has yet to submit formal proposals
to salvage its troubled plans to link up with Time Warner's music business,
according to the European Commission. EMI had so far proposed nothing
concrete to alleviate antitrust concerns over its planned joint venture with
Time Warner, according to the Commission. The deal would reduce the pool of
major recording labels from five to four and exacerbate the problem of
"collective dominance" in the music business. The commission's regulators
are worried that after combining a major content company with an online
powerhouse, Time Warner and AOL would be able to cut out their competitors
from their sweeping distribution channels. The commission will rule on both
mergers in early October.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Philip Shishkin]
(http://interactive.wsj.com/articles/SB968619445392004422.htm)
(Requires subscription)

ECOMMERCE

ENTERTAINMENT WEB SITES FACING FAILURES AND CUTS
Issue: Ecommerce
Shockwave.com, one of the most frequently visited entertainment sites on the
World Wide Web, announced last week that it will be laying off 15 percent of
its workforce. Then Pop.com, a project of some of Hollywood's most famous
names, announced it was shutting down before it ever opened for business,
causing concern about the online future of entertainment sector. This year,
the industry discovered the difficulty of selling enough online advertising
to defray the unexpectedly high costs of producing and maintaining an
entertainment-only site. It is also discovering that Web surfers may be more
interested in entertainment that exploits the medium's inherent
interactivity, like games and virtual communities, than in traditional
entertainment fair. "In my view, the Web is not about repurposing content
that works in other media," said Lawrence Levy, Shockwave's chairman. "It's
about leveraging the powers of this medium, and that's what we're focusing
on now. To me, the fact that we are having this kind of shakeout is no
surprise at all."
[SOURCE: New York Times (C17), AUTHOR: Rick Lyman]
(http://www.nytimes.com/2000/09/11/technology/11POP.html)
(requires registration)

INTELLECTUAL PROPERTY

NEW E-BOOK TECHNOLOGY HELPS PROTECT COPYRIGHTS
Issue: Intellectual Property
Behold the VitalBook, a book that demands payment while being read and self
destructs if not paid proper homage. With file-sharing, Napster-like
technologies threatening traditional copyright guarantees, it was only a
matter of time before someone would figure out how to use the same
technologies to protect intellectual property. In this case a new e-book
isn't actually purchased, it's rented. "We totally blow away the current
book-distribution model," says Robert T. Watkins, the founder and president
of Vital Source Technologies. A dentist by training, Dr Watkins persuaded
some big dental-textbook publishers to give his e-book approach a try. The
VitalBook is a system for storing books on DVDs. The disk is portable, and
schools can tailor it to fit their program, including course notes and video
clips, all indexed by a powerful search engine. But,
more importantly, students no longer purchase books, they become licensees
of a recurring yearly fee. The associated technology (and new phrase of the
week) is "digital rights management" or DRM. DRM technology promises that
publishers of books, music and movies will not be exposed to copying, while
guaranteeing that only someone who has paid for material can access it. DRM
technologies also make it possible to affix new charges to the written word.
Take the concept of "pay-per-view" and now apply it to books and music.
[SOURCE: Wall Street Journal (B1), AUTHOR: Thomas E. Weber]
(http://interactive.wsj.com/articles/SB968628058279978062.htm)
(Requires subscription)

U.S. COPYRIGHT OFFICE REJECTS THE DEFENSE OFFERED BY NAPSTER, SAYS LAW IS
VIOLATED
Issue: Intellectual Property
Napster received a stunning blow in a ruling by the federal government that
said the company isn't protected under a significant copyright law. The
U.S. Copyright Office, in a brief to the 9th U.S. Circuit Court of Appeals,
said Napster has "no possible defense" against claims by the recording
industry that it facilitates widespread copyright infringement. Thus, the
agency sided with U.S. District Court Judge Marylin Hall Patel, who in July
ruled for the industry, finding Napster contributing to copyright
infringement in violation of the 1992 Audio Home Recording Act. Napster
cites the same law, and claims that the Audio Home Recording Act provides
its users with immunity from liability for copyright. "The District Court
was correct to reject that defense," government lawyers wrote. Napster
allows 22 million users to swap music online. The same court spared Napster
from an order that would have shut down the site pending the outcome of the
trial. In issuing the stay, the panel said "substantial questions" had been
raised about the merits and form of the injunction.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Associated Press
(http://interactive.wsj.com/articles/SB968620586145434647.htm)
(Requires subscription)

LEGAL ISSUES

WHEN THE JUDGE CAN'T REALLY JUDGE
Issue: Legal Issues
As part of its appeal in the antitrust case, Microsoft has suggested that
Judge Thomas Penfield Jackson was unable to comprehend the complex
technological issues at stake. The state of Maryland is considering whether
their should be a special court for high-tech trials. "The idea of it is to
have a judge who tries nothing but business and technology cases," said
Wilbur D. Preston Jr., chairman of the Maryland study group, which is known
as the Business and Technology Division Task Force. Its report is scheduled
for Dec. 1. [There's much more at the URL below]
[SOURCE: New York Times (C4), AUTHOR: Michael Brick]
(http://www.nytimes.com/2000/09/11/business/11JUDG.html)
(requires registration)

WIRELESS

CELL PHONES: FACTS, FICTION, FREQUENCY
Issue: Wireless
A new brochure from the Federal Communications Commission. Cell phones, or
more accurately, wireless phones, have received a great deal of attention
lately. Here are some Facts you should know, Fiction you