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TOP STORIES FOR FRIDAY, OCTOBER 08, 2004
  Purdy Named Interim Head of Cybersecurity
  Induce Act Stalled in Senate Committee
  Music Industry Files Lawsuits in More Countries
  Music Industry Looks to Supreme Court for Help
  FTC Pursues Spyware Prosecution


PURDY NAMED INTERIM HEAD OF CYBERSECURITY
Andy Purdy has been named interim head of cybersecurity in the U.S.
Department of Homeland Security (DHS), replacing Amit Yoran, who
abruptly resigned from the post after serving just one year. Yoran was
reportedly frustrated with what he saw as the Bush administration's
lack of support for efforts to improve cybersecurity. Yoran and members
of the technology industry had lobbied to have Yoran's position within
DHS elevated, a move that Congress appeared set to make this week.
Under a bill sponsored by Zoe Lofgren (D-Calif.), the position would be
elevated such that the director would report to the undersecretary for
information analysis and infrastructure protection, one step below DHS
Secretary Tom Ridge. In addition, the bill would require government
agencies to demonstrate consideration of security issues when
requesting new technology systems.
Reuters, 7 October 2004
http://www.reuters.com/newsArticle.jhtml?storyID=6444284

INDUCE ACT STALLED IN SENATE COMMITTEE
The controversial Inducing Infringement of Copyrights (Induce) Act has
stalled in the Senate Judiciary Committee, which had scheduled a markup
of the bill this week put postponed that markup after parties involved
in shaping the bill failed to reach a compromise. The entertainment
industry supports passage of the bill, which holds companies liable if
their products or services induce copyright violations among users.
Representatives of technology companies and consumer groups had lobbied
for changes to the language of the bill, saying that as written it
would stifle innovation and penalize technology for the abuses of those
who use it. After opponents of the bill raised objections, Sen. Orrin
Hatch (R-Utah), one of the bill's sponsors, invited parties on both
sides to suggest revisions and work on compromise language. A letter
sent to Hatch from several groups opposed to the bill noted, "We find
ourselves further apart now than at the outset of this process."
Critics of the bill insist that a bill discouraging copyright
violations is acceptable, but they contend that the Induce Act punishes
developers of technology with dual uses, despite a 1984 Supreme Court
ruling--concerning videotape recording--that upheld the legality of
such dual-used technology.
Wired News, 7 October 2004
http://www.wired.com/news/politics/0,1283,65255,00.html

MUSIC INDUSTRY FILES LAWSUITS IN MORE COUNTRIES
The International Federation of the Phonographic Industry (IFPI), a
European music trade group, has filed 459 civil and criminal lawsuits
against file traders for copyright violations. Included in this round
of lawsuits are users in Britain, France, and Austria--countries not
included in previous lawsuits--as well as users in Germany, Italy, and
Denmark. The lawsuits are said to target "uploaders," those who make
music files available for others to download. According to the IFPI,
one of the defendants has 9,000 music files on his system. Other
defendants include a teacher in France who faces three years in jail
under a new French counterfeit law. The IFPI argues that illegal file
trading has cost the music industry significant amounts of money, and
the group said the lawsuits came as a last resort, after an extended
public awareness campaign. In all, 650 users in Europe have been
charged with illegal file sharing since March. In the United States,
the music industry has filed suits against more than 5,700 individuals
since September 2003.
Reuters, 7 October 2004
http://www.reuters.com/newsArticle.jhtml?storyID=6442562

MUSIC INDUSTRY LOOKS TO SUPREME COURT FOR HELP
Officials from the music industry this week asked the U.S. Supreme
Court to consider a lower court ruling that shields makers of P2P
technologies from prosecution for copyright violations. In August, an
appeals court agreed with an earlier ruling that Grokster and
StreamCast Networks are not liable for illegal file trading that takes
place on the applications they develop. Lawyers for the entertainment
industry object to what they call the "immunity" that the Ninth Circuit
Court of Appeals granted to the two companies. The entertainment
industry contends that the emergence of P2P networks--on which the
majority of traffic consists of illegally traded material, according to
analysts--is responsible for a significant decline in music sales.
Wall Street Journal, 8 October 2004 (sub. req'd)
http://online.wsj.com/article/0,,SB109725909513340597,00.html

FTC PURSUES SPYWARE PROSECUTION
The Federal Trade Commission (FTC) has filed charges against Sanford
Wallace, alleging that his companies are guilty of installing spyware
that change browser settings, track users' surfing habits, and open
pop-up ads on their computers. Wallace is further charged with selling
antispyware tools that, according to the FTC, "resolve the specific
problems that the defendants themselves have caused." The FTC has asked
the courts to force Wallace's companies to remove the software they
have secretly installed and to refund consumers for the cost of the
antispyware products they have purchased. The U.S. House of
Representatives this week passed two antispyware bills, despite
comments in April by the FTC that it already had sufficient authority
to investigate and prosecute those accused of installing spyware.
Internet News, 8 October 2004
http://www.internetnews.com/xSP/article.php/3419411

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