http://www.charlotte.com/click/wiretech/pub/039334.htm

                       U.S. House panel
                       approves Internet
                       copyright protections

                                  By HEATHER FLEMING
                                     Bloomberg News

                       Washington -- The U.S. House Commerce
                       Committee unanimously approved
                       legislation designed to protect books,
                       music, computer software, and other
                       copyrighted works from Internet pirates,
                       pushing the measure closer to becoming
                       law.

                       ``Action today by the House Commerce
                       Committee is critical to the industry's
                       ongoing battle to combat piracy in the
                       digital age,'' said Robert Holleyman,
                       president of the Business Software
                       Alliance. The legislation is ``an anti-crime
                       bill that establishes uniform standards for
                       online copyright laws and levels the playing
                       field for those who merchandise in the
                       digital marketplace,'' he said.

                       Entertainment companies such as Time
                       Warner Inc., software developers such as
                       Microsoft Corp., and book publishers
                       would benefit from the legislation as the
                       popularity of electronic commerce takes
                       off, and online pirates proliferate. The bill
                       would also shield telephone companies,
                       such as BellSouth Corp., and online
                       service providers, such as America Online
                       Inc., from liability in certain circumstances
                       when a customer illegally transmits or
                       posts copyrighted works on a network.

                       The House committee approved the
                       legislation after the Hollywood creative
                       community, electronic equipment
                       manufacturers, and representatives of
                       schools and libraries struck a compromise
                       on whether schools and libraries would be
                       able to make copies of digital copyrighted
                       works for educational and other legitimate
                       purposes, just as they are allowed to do
                       today. This side-issue held up the bill for
                       weeks, even though the bulk of the
                       legislative issues involved had been
                       thrashed out earlier.

                       The Senate approved similar legislation in
                       May. Once the House passes its version of
                       the bill, the Senate and House measures
                       will need to be reconciled before being sent
                       to President Bill Clinton for his signature.

                       ``This is perhaps the most important
                       piece of legislation relating to electronic
                       commerce that this Congress will
                       consider,'' said House Commerce
                       Committee Chairman Thomas Bliley, a
                       Virginia Republican.

                       The legislation marks a compromise
                       involving the telephone industry, online
                       service providers, and the Hollywood
                       creative community. The competing
                       intersts had been haggling for more than a
                       year over the issue of when, and under
                       what circumstances, a company would be
                       liable for copyright infringement.

                       The bill would implement 1996 World
                       Intellectual Property Organization treaties
                       extending copyright laws to materials
                       online, and other copyright law changes.
                       Other countries have been waiting for the
                       U.S. to act on the WIPO treaty before
                       taking steps to implement the agreement.

                       The House panel initially planned to vote
                       on the measure Thursday morning. The
                       meeting was delayed twice, and finally
                       postponed until Friday as negotiations
                       continued over the copying of digital
                       copyrighted works for educational and
                       other legitimate purposes.

                       The American Library Association raised
                       concerns that language in the bill
                       preventing the use or manufacture of
                       devices to break the electronic wrapping
                       used to protect copyrighted materials
                       could gut the existing ``fair use'' principal
                       in copyright law. Copyright holders, on the
                       other hand, said the law includes special
                       protections to ensure that libraries and
                       other such institutions can continue to
                       obtain and provide access to copyrighted
                       works.

                       In the end, the panel adopted an
                       amendment directing the Secretary of
                       Commerce to issue regulations after two
                       years to prohibit the circumvention of
                       these technological copyright protections.
                       In the two-year time period, the Secretary
                       of Commerce will conduct a rule making
                       proceeding, soliciting comments on
                       whether users of copyrighted works have
                       been or are likely to be ``adversely
                       affected'' by putting the technological
                       protections measure in place. If the
                       Secretary of Commerce decides the
                       measure could limit access to copyrighted
                       works, he'll issue a waiver for certain
                       classes of copyrighted works.

Suzanne Stephens, Stephens Design; Ashland, Oregon
541-552-1192  http://www.KickassDesign.com/
CyberCircus Grand Prize Winners http://www.thecybercircus.com/
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