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TELEVISION
Broadcast Hues (ChiTrib)
The Outer Limits (WP)
TV Guide May Sign Accord with TCI on Digital Service (WSJ)
CBS Renews Half of Prim-Time Shows, Seeking Advantage in
Ad competition (WSJ)

EDTECH
Universities Grapple With Computer Use Policies (CyberTimes)

INTERNET
AtHome to Offer Web Access Via TV (WP)

ELECTRONIC COMMERCE
AT&T May Tap AOL to Sell Long Distance (SJ Merc)
Microsoft To Unveil Internet Commerce Strategy (SJ Merc)

PRIVACY
A Growing Compatibility Issue in the Digital Age: Computers and
Their Users' Privacy (NYT)

LIFESTYLE
Failure: Ticket to Success (WP)

TELEVISION

BROADCAST HUES
Issue: Diversity
A look at the diversity of the faces that deliver local broadcast news in
Chicago. Following a trend seen around the country, the principal newscasts
of the five largest stations here include at least one African American. In
the 60's, Chicago anchors were primarily white men. The gender gap started
closing in the 70's and stations started using more minority reporters
during the social unrest of the 60's and 70's. Minority anchors started to
appear in Chicago in the late 70's and early 80's. Although many station
executives claim that anchor selection is based on merit, Marvin Kalb,
director of the Sorenstein Center on Press and Politics at Harvard and a
30-year veteran correspondent said, "But is it not a coincidence that at
every single station all over the country it is the exact same pattern
repeating itself time and time again? And that pattern is consistent with
the economic interests of the station, and consistent with the societal
interests of the community?"
[SOURCE: Chicago Tribune (Sec 5, p.1), AUTHOR: Allan Johnson]
http://chicagotribune.com/

THE OUTER LIMITS
Issue: Television
The Christian Action Network (CAN) has proposed labeling gay and lesbian
representations on prime-time TV with an "HC" for homosexual content. CAN
president, Martin Mawyer, says producers of the shows should have no problem
with the label unless they're trying to promote some, "secret agenda." Federal
Communication Commission Chairman Bill Kennard has not responded to CAN's
proposal. People for the American Way said the proposal
is "outrageous." David Crane, "Friends" executive producer asks, "What's next,
JC for Jewish content and BC for black content?" The Gay & Lesbian Alliance
Against Defamation (GLAAD) website, keeping track of prime-time gay, bisexual,
and transgendered prime-time characters, has a list of 25 characters this
season. Mark Zakarin, executive producer of Showtime, says it's his
responsibility to reflect the world as it is. De Moraes notes that "the
world as it is" also includes Hispanics, Asians and fat people, and where are
they on prime-time? Warren Littlefield, former head of NBC programming, says
although producers' motivations may be noble, it's really about the "copycat
factor" referring to the 36.2 million audience of "Ellen's" outing. "Now there's
a rush to tap into this unmined storyline," Littlefield says. Now that
advertisers see that it's attracting viewers, it is not longer a taboo topic:
"it's really about an effort to find something fresh that's not been seen
before," Crane says.
[SOURCE: Washington Post (C1), AUTHOR:Lisa de Moraes ]
http://www.washingtonpost.com/wp-srv/WPlate/1999-03/03/049l-030399-idx.html

TV GUIDE MAY SIGN ACCORD WITH TCI ON DIGITAL SERVICE
Issue: Digital TV
In a deal closed yesterday, News Corp. sold TV Guide
Magazine to United Video, a Tulsa Oklahoma company controlled by TCI. With the
deal, United Video has changed its name to TV Guide and is expected to announce
a 10-year deal with TCI to offer interactive digital service to
TCI digital cable-TV subscribers. The service, called TV Guide Interactive,
bundles content to subscribers: "offers a supplementary package to subscribers
including more channels, extended pay-per-view options, and even music
transmission," Bounds reports. The proposed deal is "broad in scope by
cable-industry standards" and would attract other cable-TV operators.
TV Guide Interactive is used by 1.5 million subscribers now, and will
grow to 4.5 million when the TCI deal is closed.
[SOURCE: Wall Street Journal (B9), AUTHOR: Wendy Bounds ]
http://wsj.com/

CBS RENEWS HALF OF PRIME-TIME SHOWS, SEEKING ADVANTAGE IN AD CAMPAIGN
Issue: Advertising/Television
For the first time in five years, CBS has beat NBC in ratings for the overall
season, although NBC won in the February "sweeps" period. In an attempt to bank
on this success, CBS is locking in their programming schedule for the fall
earlier than usual -- a move that is usually made in late spring. By
setting the schedule early, CBS hopes to close pricier deals with
advertisers. "We are sort of laying down the gauntlet that we are going to be
stable next season," said Leslie Moonves, CBS Television President. The other
big networks, critical of the CBS move, are expected to revamp their schedule
in the midst of lower ratings: "I don't believe you can change the way
advertising has been bought, " said Scott Sassa, NBC Entertainment President.
[SOURCE: Wall Street Journal (B10), AUTHOR: Kyle Pope]
http://wsj.com/

EDTECH

UNIVERSITIES GRAPPLE WITH COMPUTER USE POLICIES
Issue: EdTech
A student at the Southern Utah University was recently kicked out of the
school's computer lab for violating the campus computer use policy, which
bars students from using computers to view "objectionable" material. Junior
Michaun M. Jensen, who felt that the vaguely-worded policy threatens
academic freedom, was asked to leave the campus's lab after looking at sites
that contained sexually explicit material and a picture of Adolph Hitler and
Benito Mussolini. The Southern Utah University, which is now looking to
re-draft the policy, is not the only school which is facing these issues.
According to Majorie Hodges Shaw, co-director of Cornell University's
Computer Policy and Law Program, "This is an issue that comes up regularly
around the table -- How do you deal with offensive material in labs?"
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/99/03/cyber/education/03education.html

INTERNET

ATHOME TO OFFER WEB ACCESS VIA TV
Issue: Internet/Broadband
Internet service provider AtHome plans to offer Internet service to
televisions sets using cable TV lines later this year. The new service,
priced about $15/month, is a basic service aimed at people just getting
into the Internet and will allow people to access the Internet without a
computer. Ken Goldman, chief financial officer for AtHome, said the company
would introduce set top boxes for the new service as early as the third
quarter of this year. AtHome aims to expand its subscriber base to one
million homes by the end of the year.
[SOURCE: Washington Post (Online), AUTHOR: Reuters]
http://www.washingtonpost.com/wp-srv/business/daily/march99/athome2.htm

ELECTRONIC COMMERCE

COUNTIES AND CITIES TO SUE TO STOP INTERNET TAX PANEL
Issue: E-Commerce
The National Association of Counties and the US Conference of Mayors have
announced that they will file a lawsuit to block a Congressionally appointed
panel charged with studying taxation on the Internet from meeting.
Local officials are upset by an imbalance in the membership of Advisory
Commission on Electronic Commerce, which is currently composed of nine
representatives from industry and only six from local government. "The
actions of the Congressional leaders exemplify an arrogant disregard of a
law that clearly calls for state and local representation equal to that of
business interests," said Tom Cochran, executive director of the U.S.
Council of Mayors. The commission, which was created as part of the Internet
Tax Freedom Act, was supposed to begin meeting in December, but controversy
over the panel's makeup has prevented the group from convening. The
Advisory Commission on Electronic Commerce will study if, and how, a
national framework for taxing electronic commerce might take shape.
[SOURCE: New York Times (A1), AUTHOR: John Markoff]
http://www.nytimes.com/library/tech/99/03/cyber/articles/03tax.html

AT&T MAY TAP AOL TO SELL LONG DISTANCE
Issue: Long Distance
AT&T and America Online are discussing a marketing agreement. The fact that
they are talking underscores how the Internet is changing the sales,
pricing, billing and fundamental economics of long distance communications.
The deal apparently would allow AT&T to sell its long distance servICE via
AOL's market-leading online service and would permit consumers to sign up
for AT&T phone service and pay their AT&T bills on AOL. Presently Tel-Save
has exclusive rights to market long distance phone service on AOL so AT&T or
another long distance company appears locked out until July 2000. Online
billing and sales cut costs for carriers and create lower prices at the
retail level. To its AOL subscribers Tel-Save sells long distance service
for 9 cents a minute.
[SOURCE: San Jose Mercury News, AUTHOR: Steve Rosenbush (USA Today)]
http://www.mercurycenter.com/svtech/news/breaking/merc/docs/047335.htm

MICROSOFT TO UNVEIL INTERNET COMMERCE STRATEGY
Issue: Electronic Commerce
Microsoft intends to change the perception that the computer software group
has lagged in efforts to grab a piece of the enormous electronic commerce
opportunity. At a Thursday meeting Microsoft Chairman Bill Gates and
President Steve Ballmer are expected to unveil a strategy to help companies
do business over the Internet. The company will roll out a new set of
software and services based on its msn.com Internet portal site and the
forthcoming Windows 2000 system. For its MSN Marketplace, Microsoft will get
a running start from its $265 million acquisition last year of Link
Exchange, which offers ad placement, transaction capability and other
features to a network of some one million businesses. Vernon Keenan of
Keenan Vision says Microsoft will offer services that undermine its core
Windows franchise by supporting businesses without requiring them to invest
in the platform. "What they're hoping to do is get people hooked into the
services business with MSN Marketplace in the hopes that they will graduate
to Windows 2000."
[SOURCE: San Jose Mercury News, AUTHOR: Martin Wolk (Reuters)]
http://www.mercurycenter.com/svtech/news/breaking/internet/docs/199717l.htm

PRIVACY

A GROWING COMPATIBILITY ISSUE IN THE DIGITAL AGE:
COMPUTERS AND THEIR USERS' PRIVACY
Issue: Privacy
The rapid development of communications technologies is accompanied by a
growing concern about privacy in the Information Age. The recent skirmish
between Intel and privacy advocates over embedded serial numbers in its new
microprocessors illustrates America's struggle between anonymity and the
drive for technological advancement. Computer industry executives and
engineers explain that technologies need to be able to identify their users
to allow programs to work together and across networks. Privacy advocates,
like Lauren Weinstein, editor of the Privacy Forum, are not appeased by
these explanations. "Once information becomes available for one purpose
there is always pressure from other organizations to use it for their
purposes," she argues. Industry officials appear to be increasingly less
responsive to many privacy concerns. "You already have zero privacy -- get
over it," Scott McNealy, chairman and chief executive of Sun Microsystems,
said at the launch of Jini, new software intended to interconnect virtually
all types of electronic devices.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
http://www.nytimes.com/library/tech/99/03/biztech/articles/03privacy.html

LIFESTYLES

FAILURE: TICKET TO SUCCESS
Issue: Lifestyles
[Op-Ed] David Ignatius takes a light-hearted look at the difference between
the culture of the high tech industry and that of Washington, DC. His
question to himself as he visited some of Silicon Valley's hottest companies
last week: "What is it that makes the high-tech world feel so alive and
bursting with energy at a time when the culture of official Washington seems
so dead?" He found a possible answer at Cisco Systems. "If you hit five out
of five, you won't do well here," explained Dan Scheinman, a Cisco vice
president."People like that aren't taking enough chances. If you hit eight
out of 10, that's the Cisco way." Ignatius observes that Washington is "a
city of five-out-of-five people, driven by an ingrained intolerance of
failure. In our world, any screw-up, misjudgment, misstatement or
inconsistency makes you instantly subject to second-guessing from members of
Congress, consumer watchdogs, independent counsels -- and yes, from the
20-20 hindsight brigade in the press." And the high tech industry? "Part of
what makes Silicon Valley so different is that people don't have time for
finger-pointing and recrimination. The technology world is simply moving too
fast." And the future? "Perhaps the best thing you can say about Washington
is that it's slowly being infected by the spirit of Silicon Valley."
[SOURCE: Washington Post (A23), AUTHOR: David Ignatius]
http://www.washingtonpost.com/wp-srv/WPlate/1999-03/03/176l-030399-idx.html

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INFOTECH/INNOVATION
Home Smart Home (ChiTrib)
Speech: Capitalizing on the Power and Promise of
Technological Innovations (NTIA)

REGULATION
No Consumer Per Minute Charges To Access ISP's (FCC)
Illinois Regulators to Meet with Ohio's About Phone Deal (ChiTrib)

INTERNET & TV
US West Combines Phone, TV (SJ Merc)
In Hopes Nothing Succeeds Like Access (WP)

JOURNALISM
Web Publications Break Away From Print (NYT)
Journalism's Greatest Hits: Two Lists of a Century's Top Stories

JOBS
Jackson Says Silicon Valley Companies Discriminate

PRIVACY
Exploiting and Protecting Personal Information (NYT)

ANTITRUST
Issue of Harm to Consumers a Key Question (WP)
Does the Microsoft Trial Verdict Really Matter? (NYT)

INFOTECH/INNOVATION

HOME SMART HOME
Issue: InfoTech
One word sums up the future, Benjamin: ubiq. No, those Headliners haven't
let a typo get past them again -- it's shorthand for ubiquitous computing:
computer chips embedded and interconnected to appliances and intelligent
devices -- each designed to perform a different task as part of a master
network. Already on the market are gadgets (sorry, that's gizmo in
layperon's terminology) that turn your home electrical system into a local
area network (LAN), Rio -- the device that replaces a CD by allowing you to
download songs directly from the Internet, and a 4-ounce Palm Pilot that
shares information with computers via the Internet. Ubiq offers, some argue,
the fundamental changes to people's lives that computer consumers have
always wanted. "We're in the middle of a digital explosion, and a growing
number of Americans are discovering the convenience and safety of home
systems," said Gary Shapiro, president of the Consumer Electronics
Manufacturers Association (CEMA). "Home-security system sales are projected
to be $1.65 billion in 1999, a 49 percent increase over the past five years.
Other home-system products are showing even stronger sales growth." "Home
networking means a lot of different things," argued David Coursey, an
Internet journalist and columnist for Upside magazine, as he sat in his
Digital Living Room Exhibit. "To Compaq, home networking is sharing an
Internet connection among
three or four computers, all of which are just plugged into the phone
line--and they're not using the dial tone to do it. For the home-automation
environment, it means having your security system come on, turning on the
lights when you're away, having your energy automatically monitored. "The
home-automation equipment is just one component of a home network, which
also might include computers, printers, your cable box and your DBS
(satellite television) system. As bandwidth increases, and as the power of
computing increases, it is going to show up in people's homes."
[SOURCE: Chicago Tribune (Sec 4, p.1), AUTHOR: James Coates & Gary Dretzka]
http://chicagotribune.com/textversion/article/0,1492,ART-24054,00.html

SPEECH: CAPITALIZING ON THE POWER AND PROMISE OF
TECHNOLOGICAL INNOVATIONS
Issue: Arts & Tech
Larry Irving's speech delivered at the Rocky Mountain Arts & Technology
Conference: At NTIA, we track new developments in the technology field, and
there is no doubt that new technologies are having an impact on most people
and professions. The role that new technologies can play in the arts is --
in my mind -- one of the most exciting outgrowths of this technological
revolution....The impact of technology on the arts is particularly exciting
and significant because it is opening new opportunities for artists, and for
those who love the arts. Artists are able to use new technologies to expose
their work to the world, often at just the click of a key. New technologies
are also enabling artists to market directly to galleries or buyers -- not
only in remote communities in America, but in Milan, Morocco, or Mauritius.
And finally, and perhaps most importantly, artists are using new
technologies to engage with people and communities that have not previously
had exposure to, or involvement with, the arts. New technologies are
allowing children to view the Da Vinci's works (other than the Mona Lisa!)
for their first time, and are
enabling tribal communities in the Southwest to preserve and promote their
own native crafts. As a result, arts are now more accessible and more
central to the lives of Americans.
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/speeches/rockymtn.htm

REGULATION

NO CONSUMER PER MINUTE CHARGES TO ACCESS ISP'S
Issue: Internet Access/Regulation
A new fact sheet from the FCC: "provides information in response to
erroneous reports that the FCC is planning to impose per-minute usage
charges on consumer access to Internet Service Providers (ISPs). It also
discusses the FCC's February 25, 1999 decision
[http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99038.txt]
relating to dial-up traffic bound for ISPs. The bottom line is that the FCC
has no intention of assessing per-minute charges on Internet traffic or
changing the way consumers obtain and pay for access to the Internet."
Also see these links: Comments from Chairman Kennard
http://www.fcc.gov/Bureaus/Common_Carrier/Factsheets/faq_recp.html and the
News Release and Comments on the order
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9014.html
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/Factsheets/nominute.html

ILLINOIS REGULATORS TO MEET WITH OHIO'S ABOUT PHONE DEAL
Issue: Mergers
Illinois Commerce Commission Chairman Richard Mathias wants to learn more
about the deal struck in Ohio that won the state's public utilities staff's
approval of the proposed SBC-Ameritech merger. He will invite Ohio
regulators to spend a day at the ICC to discuss the deal. "We want to
understand the substance of the proposed stipulated order (in Ohio) for
information purposes only," Chairman Mathias said. "The meeting won't be
part of the official record or part of our official decisional process in
Illinois." Some at the ICC think the meeting is a waste of time -- two of
five commissioners voted against extending the invitation to Ohio
regulators. Chairman Mathias is hoping to arrange an open session with the
Ohio Commission sometime in mid-March.
[SOURCE: Chicago Tribune (Sec 4, p.3), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9903010020,00.html

INTERNET & TV

U S WEST COMBINES PHONE, TV
Issue: Telephony
US West is putting their own spin on convergence, one that may have people
talking to their television sets. One of the planned features in the
mid-year rollout of their own interactive-TV experiments in selected markets
is linking the phone's caller ID feature to the TV so it is displayed giving
couch potatoes the option of deciding to take the call or continue watching
"Ally McBeal." In general the package of services will allow people to use
their TV sets to display phone and Internet activity. The services will be
delivered through a set-top box equipped with a speakerphone, wireless
keyboard and software for integrating the Internet into TV programs. The US
West set-top box will connect to the Internet through a dial-up modem or
dedicated high-speed phone line connection. Analyst Meredith Rosenburg
concluded that US West is going after homes without personal computers, the
same audience that WebTV has been winning over. Prices for the services and
the set-top box have not been set.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
http://www.mercurycenter.com/svtech/news/indepth/docs/uswest030199.htm

IN HOPES NOTHING SUCCEEDS LIKE ACCESS
Issue: Internet
Two-and-a-half year old Road Runner provides 200,000 subscribers in more
than two dozen markets speedy Internet access through cable TV wires. It
also provides glitz multimedia content that other online users can't easily
retrieve, all for $50 to $60 a month. Trying to establish itself as a
leading national player in the emerging market for high-speed Internet
access, Road Runner is a joint venture owned principally by two bickering
cable owners, Time Warner and MediaOne Group. Seeking to double growth in
1999, the company faces a lot of competition. Groups such as ( at )Home Network,
which offers a similar service, and Bell Atlantic Corp., which is beginning
to install ultra-fast digital subscriber line technology, are effective
rivals. Presently Road Runner's bottom-of-the-line fees are $40 per month.
Company officials are counting on the adoption of open technical standards
for cable modems to make high-speed data a cheaper, more popular service.
Stephen Van Beaver, senior VP of money-losing Road Runner, said, " We spent
1998 kind of setting up things. Now it's a matter of executing."
[SOURCE: Washington Post (WB10), AUTHOR: Alan Breznick]
http://www.washingtonpost.com/wp-srv/business/daily/march99/roadrunner01...

JOURNALISM

WEB PUBLICATIONS BREAK AWAY FROM PRINT
Issue: Journalism/Publications
The fifth annual Media in Cyberspace Study focused on two key credibility
issues in the relationship between print and electronic media: the status of
Web publications as full partners in relation to print counterparts and the
willingness of journalists to use Web and e-mail information in reporting. The
survey completed by 192 newspaper editors and 170 magazine editors, found that
the percent of websites for these publications grew from 25% in 1995 to 58% in
1998. Don Middlebury, chief executive of Middleburg & Associates, the marketing
agency who conducted the study, says that original content on the web has
increased too. Instead of websites replacing print delivery, they are being
used as a new medium close to a third of respondents said their sites integrate
multimedia material into Web articles. The majority of editors say journalists
are using the Internet for contact information, but still prefer to see a face
or hear a voice in evaluating trustworthiness of sources. After the initial
contact, e-mail is the preferred method of contact over phone calls or face to
face meetings.
[SOURCE: New York Times (13), AUTHOR: Matthew J. Rosenberg]
http://www.nytimes.com/library/tech/99/03/biztech/articles/01talk.html

JOURNALISM'S GREATEST HITS: TWO LISTS OF A CENTURY'S TOP STORIES
Issue: Journalism
Last week, some journalist voiced their opinions about the best stories and
writers of the 20th Century. The Freedom Forum came out with a list of the
top 100 new events of the past century, which was followed by the release of
New York University's Journalism Department rankings of the best
journalistic endeavors of the past one hundred years. The atomic bomb topped
both lists, with the Freedom Forum choosing the dropping of the bomb on
Hiroshima as the story of the century, and John Hersey's "Hiroshima"
appearing at the top of NYU's list. Mitchell Stephens, chairman of NYU's
Journalism department, says the value of such lists lie in their ability to
help people recognize journalism's role in shaping our perceptions of
ourselves. "You can seen the 20th century understanding itself though its
journalism," he said.
[SOURCE: New York Times (C1), AUTHOR: Felicity Barringer]
http://www.nytimes.com/yr/mo/day/news/financial/journalisms-best.html
See also:
AMERICAN JOURNALISM'S TOP 100
[SOURCE: New York Times (C1)]
http://www.nytimes.com/yr/mo/day/news/financial/journalisms-best-list.html

JOBS

JACKSON SAYS SILICON VALLEY COMPANIES DISCRIMINATE
Issue: Jobs
In a visit to Silicon Valley this weekend, the Rev. Jesse Jackson called for
a greater representation of women and minorities in decision-making
positions in high-tech firms. Rev. Jackson also said that investment capital
needs to be more accessible to historically underrepresented groups. To this
end Jackson founded the Wall Street Project, a program aimed at improving
the availability of capital for women and minorities. The Wall Street
Project also plans to purchase stock in 50 Silicon Valley companies to
encourage those firms to change discriminatory practices by engaging in
shareholder activism.
[SOURCE: CyberTimes, AUTHOR: Matt Ritchel]
http://www.nytimes.com/library/tech/99/03/cyber/articles/01jackson.html

PRIVACY

EXPLOITING AND PROTECTING PERSONAL INFORMATION
Issue: E-commerce
Caruso outlines the current debate on privacy on the Internet from multiple
perspectives: the consumer, privacy advocates, companies, and lawmakers. The
crux
of the two decade-old debate: companies want to use and distribute people's
information as they please -- yet a 1997 Georgia Tech survey found that 87% of
people online want "complete control" of their information. Consumers have won
in recent cases, to a limited degree. For example, privacy advocates couldn't
get Intel, who's Pentium III chips contain electronic serial numbers that could
track a person's movement on the Internet, from removing this function. They
did succeed in getting Intel to provide software that would hide this ability,
however. Still, cashing in on people's information continues and Rich Le Fugy,
chairman of the Internet Advertising Bureau, said that advertisers haven't even
begun to tap into the Internet's potential. He says advertisers are stuck in a
hard place between their clients and consumers with very different interests.
Le Furgy says, "It would be a beautiful thing for consumers to control their
personal data especially it if meant avoiding legislation and regulation. The
California Legislature is considering over a dozen privacy laws,
dealing with restriction of information over the Internet. Le Furg would like
companies to take on this regulation as "infomediaries" and allow consumers to
get paid for giving up their information. "Infomediaries keep a percentage for
themselves for providing the security mechanisms by which consumers can control
exactly who buys their personal data and for what purpose," Caruso reports.
[SOURCE: New York Times (C4), AUTHOR: Denise Caruso]
http://www.nytimes.com/library/tech/99/03/biztech/articles/01digi.html

ANTITRUST

ISSUE OF HARM TO CONSUMERS A KEY QUESTION
Issue: Antitrust
Did Microsoft actually harm consumers? That important question continues to
underpin the government's antitrust case against computer giant Microsoft
Corp. In two months of defense testimony that ended Friday, Microsoft
argued strongly that however rough the company's tactics against rival
Netscape Communications Corp. might seem, they resulted in both companies
give away millions of browsers, the Internet navigation programs that are at
the heart of the case. Was consumer welfare hurt in the form of higher
prices, less choice or poorer service? William E. Kovacic, a George
Washington University professor, said, "The government has not introduced
that much evidence to demonstrate that consumers are suffering grievous harm
today at the hands of Microsoft." People familiar with the government case
say the government may argue in formal "Conclusions of Law" that will be
submitted to the judge this spring that some of Microsoft's actions are per
se violations of antitrust law that do not require a showing of consumer
harm. The trial now goes into a six week recess that will allow both sides
to prepare their rebuttal arguments.
[SOURCE: Washington Post (A8), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm

DOES THE MICROSOFT TRIAL VERDICT REALLY MATTER?
Issue: Antitrust
[Op-ed] As both sides finish presenting their cases in the US Government's
antitrust suit against the world's most valuable company, one essential
question lingers: what to do with Microsoft? The government has not clearly
articulated its goals for Microsoft. Mr. Norris predicts that the software
giant's monopoly will eventually end, but not due to any government action.
Like all other dominant companies in American history, Microsoft will
eventually be beaten by competition.
[SOURCE: New York Times (A24), AUTHOR: Floyd Norris]
http://www.nytimes.com/yr/mo/day/editorial/01mon3.html

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We're marching in like a lion.

E-COMMERCE/INFOTECH
Amazon Buys Stake In Upstart Drugstore.Com (WSJ)
Sites Find New Ways to Profit (WP)
Privacy Concerns Aside, Consumers and Schools Rush to Get Free PCs (NYT)

MERGER
Phone Merger Blasted by ICC Staff ChiTrib)

TELECOMMUNICATIONS/REGULATION
Speech: Moving On (FCC)
Speech: Furchtgott-Roth at the Federal Communications
Bar Association (FCC)

SATELLITE TV
DirecTV, Congress Scramble To Avoid Network Cutoff (WSJ)

BUDGET ISSUES
U.S. Lawmakers Want Permanent Research Tax Credit (SJM)

POLITICS
High-Tech Entrepreneurs Dive Into California Politics (CyberTimes)

ANTITRUST
Microsoft Officials Deny Sabotage (WP)

E-COMMERCE/INFOTECH

AMAZON BUYS STAKE IN UPSTART DRUGSTORE.COM
Issue: E-Commerce
Amazon.com bought 40% of Drugstore.com, a 7-month-old online company that wants
to sell everything from toothpaste to Prozac, Anders reports. Amazon's CEO,
Jeffrey Bezos said the U.S. pharmaceutical market is six times greater than the
book business and there are similarities between what people want in books and
what they want in drugs that makes it a good duo: "Customers want selection,
convenience, price, and information." Amazon will share management tips with
Drugstore.com and lead Amazon customers to the drug retailer through their
website. Bezos says further Amazon investments in other retail websites are
likely. The Seattle-based online drug seller does not hold inventory and has
contracted with two Texas distributors. Peter Neupert, Drugstore.com's CEO says
they have hired 35 pharmacists to oversee the prescription process. Doctors must
fax in prescriptions in line with state regulations. He also says the company
won't host web ads on its site, for fear that customers will not be trusting of
the site's information.
[SOURCE: Wall Street Journal (B1), AUTHOR: George Anders]
http://wsj.com/
See also:
Drugstores Next for Internet
[SOURCE: San Jose Mercury News, AUTHOR: Charlie McCollum]
http://www.mercurycenter.com/svtech/news/indepth/docs/drugs022599.htm
PRESCRIPTION FOR SUCCESS: THE SMART WAY TO SHOP FOR DRUGS ONLINE
http://www.anchordesk.com/a/adt0225ba/3131

SITES FIND NEW WAYS TO PROFIT
Issue: Electronic Commerce
Internet companies are devising clever new methods for wheedling money out
of visitors to their websites. Most of the Internet has been left out of the
financial bonanza of Web advertising. Of last year's projected $2 billion in
Web advertising revenue, 70 percent went to the Internet's top 10 sites,
according to the Internet Advertising Bureau. Most Web content is handed out
for free; only a few sources, usually with financial information (the Wall
Street Journal) or sex, can ask for a premium price for everything. Efforts
at finding advertising generally fall between the two extremes. Often they
mix free content with time-based, event-based and a la carte payment
systems. Microsoft's Slate stopped charging for their site when editor
Michael Kinsley noted the "spreadsheet wizards" convinced him that the extra
traffic and advertising from a free site would more than exceed Slate's lost
subscription fees. He learned that "Web readers surf" and "are unlikely to
devote a continuous half-hour or more" to a single site.
[SOURCE: Washington Post (E1), AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-srv/business/feed/biztop919945605056.htm

PRIVACY CONCERNS ASIDE, CONSUMERS AND SCHOOLS RUSH TO GET FREE PCS
Issue: Privacy/Access
Over one million people have signed up to receive free computers from
Free-PC, the company that announced it would give away 10,000 computers to
people who agree to watch adds and disclose personal information. Almost
6,000 schools have signed up for a similar offer from Zap It, which has
already given 55 schools computers with satellite-based Internet
connections. The Zap It computers display advertising in the left-hand
corner on the screen. While these deals seem popular with schools and
consumers, they make privacy advocates a little uncomfortable. These free
PCs will have the ability to closely monitor user habits as well as simply
displaying advertising. "You're letting a surveillance device into your
home," says Jason Catlett, president of an organization that opposes
intrusive marketing. Some school officials have responded just as negatively
to the Zap Me offering, "arguing that their mission is to educate, not act
as an advertising conduit," writes Richtel. Ted Maddock, technology
coordinator for one of the schools that has Zap It computers, doesn't see
things that way. "Someone offered us $70,000 worth of computers," Maddock
said. "It's been working well."
[SOURCE: New York Times (E7), AUTHOR: Matt Richtel]
http://www.nytimes.com/library/tech/99/02/circuits/articles/25free.html

MERGER

PHONE MERGER BLASTED BY ICC STAFF
Issue: Mergers
The staff of the Illinois Commerce Commission has filed a "broad and
stinging denunciation" of the proposed SBC-Ameritech merger. The staff
concludes that the merger would stifle competition [who would have guessed
that] and hurt residential phone service. The staff report may scuttle hopes
of a compromise as seen in Ohio earlier this week. ICC's staff attorney's,
led by Darryl Reed, warn that the merged company would require tight state
regulation -- regulation that would be much more difficult than it has been
to supervise Ameritech: "Approval of the merger will delay, perhaps
indefinitely, the transition from regulated telecommunications markets to a
greater
reliance on competition, even if conditions are attached to the merger," Mr.
Reed and his colleagues wrote. "As a result, a merged SBC/Ameritech will
require greater regulatory oversight. Simply put, approval of the merger is
a statement for regulation over competition." Based on SBC's own statements,
the staff report says, "the proposed merger will diminish Ameritech's
ability to provide adequate, reliable, efficient, safe and least-cost public
utility service" as Illinois law requires. Obviously in denial, Ameritech
Chairman Richard Notebaert said, "Our merger is gaining momentum," in a
reference to the deal with the Ohio utility commission's staff. While he
cautioned that the Ohio commissioners themselves must still vote on
approving the merger, Mr. Notebaert said he is encouraged the SBC/Ameritech
merger will ultimately win regulatory approval. [I mean, what else is he
going to say?]
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-24009,00.html

TELECOMMUNICATIONS/REGULATION

SPEECH: MOVING ON
Issue: Telecommunications
Chairman Kennard's Remarks before the NARUC Winter Meeting in Washington,
DC: Like you, I feel enormously privileged to be involved with the telecom
industry now as we begin these historic transformations from an analog age
to a digital one; from a world of monopoly to a world of competition; and
from an era of basic services to an era of convergence. This technological
transformation began in our nation's labs and universities. It began with
the hard work and vision of people willing to take risks on new ideas and
new technologies. And it began because government created the opportunities
for scientists and entrepreneurs to take these chances. Indeed, our
contribution to this communications revolution has been our privilege, our
responsibility to follow through on the wishes of Congress in implementing
the Telecommunications Act of 1996. In drafting this bill, the foundational
document for the competitive, high-tech world to come, Congress reached back
to one our oldest values: choice.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Kennard/spwek909.html

SPEECH: FURCHTGOTT-ROTH AT THE FEDERAL COMMUNICATIONS BAR ASSOCIATION
Issue: FCC/Regulation
Commissioner Furchtgott-Roth's Remarks to the Federal Communications Bar
Association: Most Americans, though, do not understand Washington beyond the
passing images of a few famous people on television. Most have never been to
Washington, or even know anyone in Washington. It is a very distant city.
These Americans have never heard of the FCC or the FCBA. When they have a
communications problem, they don't call you or me. They don't know we exist.
They may not know that some communications problems are created and solved
in Washington. Or to the extent they know, they may believe that they have
no capacity to be listened to in Washington beyond
the anonymity of a phone call, letter, or e-mail to an unknown recipient in
Washington. But these ordinary Americans, these mere citizens, have voices.
Voices that can get angry at times.... I
would like to give that answer. Begin by saying that the FCC is an agency
that simply follows the federal communications law as written by Congress.
More specifically , the FCC should follow the law narrowly as it is written
in statute, consistent with the Constitution and with court decisions. We at
the FCC are law-followers, not lawmakers. We are merely regulators with
limited power conferred by statute. Moreover, we do not even make "policy."
Congress sets federal telecommunications policy. It is our duty to follow
it....If we at the FCC lack the specific authority to force an individual,
company, or industry to do something in one area, we must
not threaten action in a different area where we actually do have power, in
order to achieve the same result. All too often, I have seen the threat of
regulation in one area used to influence decisions in another area. In my
view, this is outside the law. I don't believe that the ordinary American
could fathom how a police officer in their home town could decide whether to
give a car a parking ticket based on whether or not the owner was appealing
an unrelated speeding ticket. The Commission must also abide by the
Administrative Procedure Act and its requirements for open and transparent
rulemakings: No decisions behind closed doors; An agency open and
transparently visible to all Americans; An agency with no secret documents
or secret rules. Open process is something ordinary Americans understand....
How should we explain discretion to
ordinary Americans? First, have humility about the power of regulation.
Second, keep it simple and predictable. Third, where there is discretion,
let governmental decisions be made as close to the people as possible.
Fourth, where regulation is required by law, try to make sure that benefits
significantly exceed the costs. Fifth, view new technology as an opportunity
to reduce, not to expand, regulation.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Furchtgott_Roth/sphfr901.html

SATELLITE TV

DIRECTV, CONGRESS SCRAMBLE TO AVOID NETWORK CUTOFF
Issue: Broadcast/Satellite TV
In order to avoid the court ordered shut-off of satellite signals of network
broadcasting to viewers, Rep. John Dingell (D-MI) will introduce a bill this
week that would allow satellite-TV viewers to continue receiving the network
signal until the Federal Communication Commission can decide on a fair standard
in determining eligibility. The battle began when CBS and Fox complained that
PrimeTime 24, a satellite-TV carrier, was illegally packaging their broadcasts
and sending them to viewers. Miami federal court ordered a shut-off for 700,000
subscribers by this Sunday and another 1.5 by April 30. In other legislation,
to avoid the shut-off, the Senate Judiciary Committee is likely to approve a
bill today that would resolve the copyright problem facing satellite-TV
servers. Senate Commerce Committee is set to vote on a bill next Wednesday,
introduced by Chairman John McCain (R-AZ), that would allow satellite carriers
to retransmit network signals locally. Meanwhile, DirecTV, the largest
satellite-carrier in the country is trying to avoid the court-ordered shut-off
by no longer using PrimeTime 24, but providing network programs themselves. A
DirecTV spokesman said, "That way, we are no longer under the court order,
which applies only to PrimeTime 24." Not so fast--four major networks plan on
asking the court to impose a temporary restraining order against the move.
[SOURCE: Wall Street Journal (B2), AUTHOR: Kathy Chen]
http://wsj.com/
See also:
SATELLITE TV BATTLE RAGES
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
http://www.mercurycenter.com/svtech/news/indepth/docs/dbs022599.htm

BUDGET ISSUES

U.S. LAWMAKERS WANT PERMANENT RESEARCH TAX CREDIT
Issue: Competition, Employment
A bipartisan coalition of US lawmakers Wednesday proposed legislation to
encourage high-technology companies to invest billions of dollars more in
research and development to create US jobs and keep foreign competitors at
bay. The bill would make the federal Research and Development Tax Credit
permanent, with an estimated cost of $2.5 billion per year. Congress has
pass nine extensions to the law since its inception in 1981. A Coopers and
Lybrand study concluded that permanent extension of the tax credit would
lead to a $41 billion increase in US research and development spending
through 2010. The bill was introduced by Representative Nancy Johnson (R-CT)
and co-sponsored by 90 lawmakers.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/180969l.htm

POLITICS

HIGH-TECH ENTREPRENEURS DIVE INTO CALIFORNIA POLITICS
Issue: Democracy/Technology
In Silicon Valley, some high-tech entrepreneurs have begun to show an
interest in politics. They are finding, however, that the political process
moves forward at a much different rate than the rapidly evolving technology
industry they are used to. Tim Draper, a venture capitalist, discovered this
democratic reality when he attempted to use the Internet to collect
signatures for a school choice initiative in California. Electronic
signatures, he learned, are not legal on California petitions. Silicon
Valley is easily frustrated a political system in which change can only
occur as a result of painstaking consensus regardless of technological
realities. "The whole deliberative system just seems like a waste of time to
the technologists," said Bruce Cain, a political scientist at the University
of California at Berkeley. He became aware of this perspective when students
asked him why they could not just eliminate government and vote on policy
issues from their laptops.
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
http://www.nytimes.com/library/tech/99/02/cyber/articles/25politics.html

ANTITRUST

MICROSOFT OFFICIALS DENY SABOTAGE
Issue: Antitrust
In testimony at the Microsoft antitrust trial yesterday Erik Engstrom, a
Microsoft engineer, said that his company wanted Apple Computer not to
distribute multimedia software that competed with a Microsoft product, but
he denied that Microsoft sabotaged its product after Apple balked. His
testimony disagreed with that of Apple executive Avadis Tevanian who
testified as a government witness earlier in the trial. Later in the day
Joachim Kempin, a Microsoft senior vice president, defended limits the
company placed on the way personal computer makers can alter Microsoft's
dominant Windows operating system. He said the company did not want anyone
to tamper with the "good design" of its products. The pace of the trial has
picked up this week in hopes that the company's defense can conclude by
Friday to permit a recess of several weeks.
[SOURCE: Washington Post (E3), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/feed/biztop919945618816.htm
See also:
EXECS DENY PRESSURING APPLE, GATEWAY
[SOURCE: San Jose Mercury News, AUTHOR: David L. Wilson]
http://www.mercurycenter.com/business/microsoft/trial/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

TELEVISION
Public Access Feeds Democracy in Raw,Televised Form (ChiTrib)
A Sweeping Look at Local News 'Specials' During the
All-Important Ratings Period (ChiTrib)

UNIVERSAL SERVICE/TELEPHONE
Statement of Commissioner Harold Furchtgott-Roth on Recommendation
of Schools and Libraries Committee of USAC (FCC)
Chairman Kennard's Statement on Funding of Rural Schools
and Libraries (FCC)
A Pro-Consumer, Pro-Competition Agenda (FCC)
Bells, GTE Ask Court To Further Delay FCC Price Rules (SJ Merc)

INTERNET
Proposal on Internet Names Favors Corporate Interests (CyberTimes)
Upgrade Begins on National Network (LA Times)
Junk E-Mail Filters Spawn a Suit Against Microsoft (CyberTimes)
Excite Pulls Adult Ads From Kid-Safe Site (SJ Merc)

PRIVACY
After Intel Chip's Debut, Critics Step Up Attack (CyberTimes)

ANTITRUST
Compaq Discloses It Feared Microsoft Retaliation (WSJ)
Linux Gaining Serious Momentum (SJ Merc)

TELEVISION

PUBLIC ACCESS FEEDS DEMOCRACY IN RAW,TELEVISED FORM
Issue: Public Access
With an annual budget of $1.9 million -- approximately the cost of a
30-second ad during the Super Bowl -- Chicago Access Network Television (CAN
TV) has delivered 60 hours -- in just this month -- of coverage of the
upcoming City of Chicago election. CAN TV is a nonprofit organization which
reaches 36% of the homes in Chicago and is supported by cable franchise
fees. It operates five channels and helps 270 nonprofit groups get their
message out to the community. "We are a conduit for all sorts of diverse
viewpoints. Too many people are being shut out, stereotyped and otherwise
minimalized. Commercial television just does not do people justice," said
Barbara Popovic, executive director of Chicago Access Corp., the non-profit
group that runs CAN TV channels and services. "This is about education, not
packaging products. This is not the purview of an elite, trained corps."
Bunnie Riedel, executive director of the Alliance for Community Media, the
Washington-based group representing some 2,000 similar operations around the
country, said public access channels are paying attention to what is no
longer economically viable for most commercial stations. "We're not about
bells and whistles. We're about content, and we don't have to worry about
ratings," Riedel said. "They (commercial TV) give us the World Wrestling
Federation and the 5,000th rerun of `Dr. Quinn, Medicine Woman,' but they
forget to tell us what goes on in our own community."
[SOURCE: Chicago Tribune (p.1), AUTHOR: Tim Jones]
http://chicagotribune.com/news/printedition/article/0,1051,SAV-9902190136,0
0.html

A SWEEPING LOOK AT LOCAL NEWS 'SPECIALS' DURING THE ALL-IMPORTANT RATINGS PERIOD
Issue: Television/Journalism
The "On Television" column looks at the special reports of local news
outfits during sweeps weeks. Johnson finds that newscasts are pandering to
an audience -- " not at the louts who foam at the mouth over any image of a
woman in her skivvies, but rather at women themselves." So here we've news
special segments on skin moisturizers, diapers, and the use of public
transit when school buses are not available.
[SOURCE: Chicago Tribune (Sec5, p.1), AUTHOR: Steve Johnson]
http://chicagotribune.com/leisure/tempo/printedition/article/0,1051,SAV-990
2190122,00.html

UNIVERSAL SERVICE/TELEPHONE

STATEMENT OF COMMISSIONER HAROLD FURCHTGOTT-ROTH ON RECOMMENDATIONS OF
SCHOOLS AND LIBRARIES COMMITTEE OF USAC
Issue: Universal Service
I have received word from Cheryl Parrino, the President of the Universal Service
Administrative Company (USAC), that the Schools and Libraries Committee of
the USAC Board
has recommended changes to internal procedures to enable USAC to provide
sufficient funds to
cover all of the requests for schools with discounts of between 70% and 76%.
I am relieved that
these schools, which were not included in recent distributions, but should
have been, will now
receive funding as well and commend the Schools and Libraries Committee for
making this
change. The inclusion of these schools in the 70%-76% range --
particularly those rural schools
at the 70% discount level -- is what the Commission had envisioned.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr907.txt

CHAIRMAN KENNARD'S STATEMENT ON FUNDING OF RURAL SCHOOLS AND LIBRARIES
Issue: Universal Service
Statement in full: Discounts to support services to schools and libraries
are an important part of the universal service mandate in the Communications
Act -- the discounts that connect classrooms to the Internet today will
produce jobs and opportunities in the economy of our future. The Universal
Service Administrative Company (USAC) has done an excellent job implementing
all of the universal service provisions of the Telecommunications Act of
1996. The Schools and Libraries Division of USAC has sent out tens of
thousands of letters committing funds to eligible schools and libraries. To
date, $1.08 billion in funding for internet access, telecommunications
services, and internal connections has been committed. Letters committing an
additional $250 - $300 million will be issued on February 20. USAC hopes to
send out all commitment letters by February 28. Although not all schools and
libraries will receive all of the funding they requested, all applications
for telecommunications services and Internet access from eligible schools
and libraries will be funded. In addition, funds are available to support
internal connections for all the schools and libraries qualifying for 70%
discounts. USAC has asked the Common Carrier Bureau staff for authorization
to take the steps necessary to fund these internal connections. I have
directed the Bureau to respond quickly so that funding will not be delayed.
All of these funds have been and will continue to be distributed consistent
with our rules which ensure that support for internal connections goes to
the schools and libraries that have the most need for support.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Kennard/Statements/stwek912.html

A PRO-CONSUMER, PRO-COMPETITION AGENDA
Issue: Regulation/Competition/Universal Service
Commissioner Ness' Speech before the Florida Communications Policy
Symposium: At the threshold of the 21st century, the FCC is committed to:
promote competition, deregulate as competition develops, protect consumers,
ensure broad access to communications services, foster innovation, and
advance competitive goals worldwide. These goals -- pillars of the
Telecommunications Act of 1996 -- are not mutually exclusive....We are in
the midst of an extraordinary transition between monopoly and competitive
provision of telecom and video services. The velocity of change is stunning.
Convergence has blurred the regulatory definitions and jurisdictional
boundaries that for so long have structured the marketplace. And
technological innovations are creating new headaches and solutions at the
same time. It's the regulatory equivalent of Hurricane Georges!
Established companies are expanding their offerings and adapting to a new
environment. New entrants are sprouting up to serve real or perceived
"niches." New business alliances are being announced every day. Policymakers
need to keep pace. We, too, need to change. We need to be prepared to act
swiftly, whether the action needed is a surgical intervention or a retreat
from a regulation that is no longer needed. We need to bury the
jurisdictional hatchets that have
split us in the past. At all times, our focus must be on the consumer.
Whether we be legislators or regulators, whether we serve at the state or
federal level, we need to work together to ensure that the inclusive,
pro-competitive, deregulatory vision of the Telecommunications Act is
realized for all Americans.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Ness/spsn905.html

BELLS, GTE ASK COURT TO FURTHER DELAY FCC PRICE RULES
Issue: Telephony
Four regional Bell operating companies and GTE Corp. asked a St. Louis
Appeals Court to continue to prevent Federal Communications Commission rules
intended to open the local telephone market from taking effect. They said
they intend to press other parts of their lawsuit. The Supreme Court last
month rejected most of the group's earlier challenges to the rules which had
been written by the FCC to carry out the 1996 Telecommunications Act. The
Supreme Court held that the FCC had authority to issue the pricing rules.
SBC Communications Corp., Ameritech Corp., Bell Atlantic Corp., US West and
GTE said Thursday they intend to challenge the pricing rules as an
unreasonable action by the FCC and asked that the rules of state authorities
remain in effect until their latest challenge is decided. AT&T and MCI
WorldCom representatives said their companies would oppose the request to
further delay the FCC rules.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/161201l.htm

INTERNET

PROPOSAL ON INTERNET NAMES FAVORS CORPORATE INTERESTS
Issue: Internet
New rules being drafted by the World Intellectual Property Organization
(WIPO) http://www.wipo.org, an arm of the United Nations, for the Internet
Corporation for Assigned Names and Numbers (ICANN) http://www.icann.org
would favor trademark holder's in disputes over Internet domain names. Some
fear that the proposal would ultimately stifle free expression on the
Internet and give governments and corporate interests the power to
intimidate everyday Internet users into relinquishing addresses to which
they have already laid rightful claim. [Damn those governments and corporate
interests!] The proposal, WIPO said, "does not suggest the creation of new
intellectual property rights, but, rather, recommends ways in which
existing, multilaterally agreed standards for intellectual property
protection can be given expression in cyberspace." A. Michael Froomkin
http://www.law.tm/, a law professor at the University of Miami, said WIPO
had overstepped its charge and tried to "solve every imagined intellectual
property problem related to domain names, instead of concentrating on the
trademark-related issues that most urgently need solution....There are no
safe harbors," Froomkin writes. "A person might register his own name, only
to find that someone in another country who has a trademark on the same word
believes he should be entitled to claim the domain. In the U.S., trademark
infringement requires commercial use, and ordinarily requires a risk of
customer confusion as well. But under WIPO's plan, one cannot rely on the
protection of national law, because the WIPO rules tell the arbitrator to
pick and choose 'principles' from among the legal systems of the world. If
the complainant wins, the registrant may have to pay the complainant
thousands of dollars in expenses. My fear is that only the most wealthy
would undertake the risk of arbitration on these conditions, and that many
ordinary people with perfectly legitimate domain name registrations will
feel compelled to surrender without a fight." See also
http://www.law.miami.edu/~amf, Froomkin's critique of WIPO's proposal.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/99/02/cyber/articles/19wipo.html

UPGRADE BEGINS ON NATIONAL NETWORK
Issue: Infrastructure
MCI WorldCom has begun a major upgrade of the National Science Foundation's
nationwide network for testing next-generation Internet technologies. The
vBNS circuit (very-high-speed Backbone Network Service), which is operated
by MCI WorldCom under a five year contract, will quadruple the network's
data-carrying capacity from its present speed of 2.5 gigabits of data per
second. The circuits are used mainly by government and academic researchers
and will allow more precise modeling. Officials say the upgrade will be
completed without laying any new fiber-optic lines.
[SOURCE: Los Angeles Times (Online), AUTHOR: Karen Kaplan]
http://www.latimes.com/HOME/BUSINESS/t000015524.1.html

JUNK E-MAIL FILTERS SPAWN A SUIT AGAINST MICROSOFT
Issue: E-Commerce/Spam
Can Microsoft get into anymore trouble? Filtering software created by the
company has been found to block the email of legitimate businesses -- like
Blue Mountain Arts http://www.bluemountain.com/ greeting cards. The result
is a lawsuit that is pitting the rights of a software company to innovate
freely against the rights of a company that says its business was disrupted
because its notices were labeled as junk e-mail, Kaplan writes. You probably
didn't expect this, but one wrinkle to the case is allegations that
Microsoft engaged in illegal tactics to protect its own virtual greeting
card business http://insider.msn.com/greetings/ECards-010699/default.asp.
"This is an early lawsuit in what will become a classic grievance," said
Blake Bell, a lawyer who specializes in Internet issues at the New York
office of Simpson Thacher & Bartlett. "Filters of all kinds will
increasingly have a substantial impact on a company's ability to conduct
e-commerce, and the [blocked] company will have a desire to assert legal
claims in order to secure an unfettered ability to compete." Also see Blue
Mountain's litigation page
http://www2.bluemountain.com/home/ImportantNotice.html?020399 and
Microsoft's litigation page http://www.microsoft.com/presspass/bluemt/ --
could take awhile to load this one.
[SOURCE: CyberTimes, AUTHOR: Carl S. Kaplan kaplanc( at )nytimes.com]
http://www.nytimes.com/yr/mo/day/tech/indexcyber.html

EXCITE PULLS ADULT ADS FROM KID-SAFE SITE
Issue: Internet/Advertising
Green meant go for The Register, a British publication that found porn ads
showing up on a kid-safe search engine. An Excite feature called "Green Light"
is supposed to display search results that excludes adult-oriented content.
But, on Wednesday, The Register, a British publication reported raunchy banner
ads were popping up over search results. An Excite spokesperson said Thursday
that running the ads were an "oversight." This slip happened in the midst of
legal
troubles -- Playboy and Este Lauder are targeting Excite for illegally selling
advertisements that show up after these names are entered as key-word searches.
[SOURCE: San Jose Mercury News, AUTHOR: Matthew Broersma]
http://www.zdnet.com/zdnn/stories/news/0,4586,2212112,00.html

PRIVACY

AFTER INTEL CHIP'S DEBUT, CRITICS STEP UP ATTACK
Issue: Privacy
The Electronic Privacy Information Center (EPIC) has stepped up efforts to
oppose the Pentium III chip and its controversial identification system.
Junkbusters Inc. and Privacy International have convinced the Center for
Media Education and the Privacy Rights Clearinghouse to sign letters they
are preparing to send to computer manufacturers and to the Federal Trade
Commission. The letters to computer manufacturers will ask for information
on whether the companies plan to ship the new chips, and if so, how and if
they will disable the identification function. "The organizers are
considering extending the boycott to major PC manufacturers who ship Pentium
III systems in a configuration that would significantly damage consumer
privacy," the draft letter states. "We request your assistance in providing
us with information on your company's intentions, so that we can determine
our organization's boycott policy regarding your company and any individual
consumer products" that contain such a processor serial number. In the
letter to the FTC, the groups "ask the Commission to consider what action it
might take to reduce the harms to consumer privacy and e-commerce identified
here, including any means to compel the company to disable the feature and
order a recall, whether directly or through PC manufacturers." Here are some
URL's to help you follow the action: Intel http://www.intel.com, EPIC
http://www.epic.org, Junkbusters Inc. http://www.junkbusters.com,
Privacy International http://www.privacyinternational.org/, Center for
Media Education http://www.cme.org, Privacy Rights Clearinghouse
http://www.privacyrights.org, FTC http://www.ftc.gov.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/99/02/cyber/articles/19intel.html

ANTITRUST

COMPAQ DISCLOSES IT FEARED MICROSOFT RETALIATION
Issue: Antitrust
"How retaliatory could they get?" -- a Compaq slide presentation made prior to a
1993 meeting with Microsoft lists 12 ways Microsoft could hurt Compaq if they
didn't use their software -- was disclosed in the Microsoft antitrust trial. The
presentation was made before Compaq signed a five-year agreement to get
Microsoft software at a price better than any other PC maker. John Rose, Compaq
senior vice president testified that although Compaq has an exclusive contract
with Microsoft and its Internet browser and it is the first thing that shows up
on the screen, "Netscape's browser can also be used at the click of a mouse."
Being that Rose's testimony conflicted with earlier testimony by other Compaq
officers, Judge Thomas Penfield Jackson questioned Rose's authority to speak
for the company. Rose replied, "I as an officer of the company speak for the
company."
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke and Keith Perine ]
http://wsj.com/
See also:
Judge Sharply Questions Microsoft
[SOURCE: Washington Post (E3), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm

LINUX GAINING SERIOUS MOMENTUM
Issue: Antitrust
Linux is no cartoon character. The fast-growing operating system will sell
1,300 computers to Burlington coat factory, beating out Microsoft.
International Business Machines Corp. announced Thursday they plan to sell
computers pre-loaded with Linux. The company, created by a Finnish student in
the early 90's, Linus Torvalds, made up 17 percent of the software shipped for
running business machines last year. Users praise its resistance to crashing
and its price. It can be downloaded free from the Internet or bought from
distributors for about $50. Unlike Microsoft, it shares its code with the Web
so programmers can easily make improvements. While many corporate managers
remain loyal to Microsoft, this spark of competition is welcome news to
Microsoft in light of the antitrust trial. A Microsoft spokesperson said, "We
are happy to compete head-to-head with Linux on the merits of the technology
and the business model."
[SOURCE: San Jose Mercury News, AUTHOR: AP]
http://www.mercurycenter.com/svtech/news/breaking/merc/docs/078261.htm

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...and we are outta here. Have a great weekend. Hey, did anyone notice that
Clemens deal? The rich just get richer.