IP: Washington Update 3-02-98

[Dave Farber <farber () cis upenn edu>]

> FARNET'S WASHINGTON UPDATE --- MARCH 2, 1998=20
>
> FARNET (<http://www.farnet.org>http://www.farnet.org) is a non-profit=
 public
> interest=20
> Internetworking organization with a primary focus on the education,
research=20
> and related communities.=20
>
> IN THIS ISSUE:=20
>
> HOUSE JUDICIARY SUBCOMMITTEE SPLIT ON WHETHER THE UNIVERSAL SERVICE FUND
IS A
> TAX=20
>
> NEW TECHNOLOGIES MAY PROVIDE GREATER PROTECTION FOR COPYRIGHT OWNERS, BUT
> QUESTION OF FAIR USE REMAINS=20
> __________________________________________________________________________
> _______=20
>
>
> HOUSE JUDICIARY SUBCOMMITTEE SPLIT ON WHETHER THE UNIVERSAL SERVICE FUND
IS A
> TAX=20
>
> February 27 - Is the Universal Service Fund a system of discounts, or a=
 tax
> in disguise? The House Judiciary Subcommittee on Commercial and
> Administrative Law heard testimony last Thursday on that topic from=
 citizen
> advocacy groups and state utility commission administrators.=20
>
> The FCC's Universal Service Order requires the collection of approximately
> $2.25 billion annually from telecommunications companies for the Universal
> Service Fund. Congress has already scaled back that figure, limiting it to
> $625 million for the first six months of 1998. The presence of USF
charges on
> consumer telephone bills has also been a source of controversy.=20
>
> Committee Republicans and a taxpayer group testifying before the committee
> described the USF as an "implicit tax" which, because enacted by the FCC,
the
> general public was never given the opportunity to debate. Committee
Democrats
> and a state public utility commissioner took issue with that assessment.
> Ranking minority member Jerrold Nadler (D-NY) stated that the USF is a
> "discount system", and "should not be misinterpreted as a tax." Julia
> Johnson, Chair of the Florida Public Service Commission and member of the
> Federal-State Joint Board on Universal Service, noted that the definition=
 of
> POTS (plain old telephone service) has expanded, countering arguments that
> the new USF is different than the subsidies established for POTS under the
> Telecommunication Act of 1934. She further stated the USF process "is not=
 a
> tax, but a methodology of discounts."=20
>
> The "tax" issue isn't the only source of contention concerning the=
 Universal
> Service program. As reported in the January 20 issue of the Washington
Update
> (<http://www.farnet.org/contents/update/1998/19980120.html>http://www.farn
> et.org/contents/update/1998/19980120.html), the FCC is evaluating whether
> Internet Service Providers should be reclassified as "telecommunications
> carriers", possibly requiring them to pay into the Fund. ISP's are=
 currently
> considered "enhanced service providers". As such, they rely on
> telecommunications carriers and typically contribute to the end-user
revenues
> of telecommunications carriers, but do not pay directly into the Fund.=A0=
 (The
> FCC is to issue a report to Congress on this and other issues by April 4.)=
=20
> Despite the controversy surrounding the USF on many fronts, the Schools=
 and
> Libraries program is moving forward. The Schools and Libraries Corporation
> has received over 19,000 applications since its website became
operational on
> January 30, and procedures are now in place to match up applicants and
> potential vendors.=20
>
> For more information on the hearing:
> <http://www.house.gov/judiciary/5.htm>http://www.house.gov/judiciary/5.htm=
=20
> NEW TECHNOLOGIES MAY PROVIDE GREATER PROTECTION FOR COPYRIGHT OWNERS, BUT
> QUESTION OF FAIR USE REMAINS=20
>
> March 2 - The elusive "technological fix" in the attempt to protect
copyright
> owners in the digital age may be a bit closer. The Association of American
> Publishers in conjunction with the Corporation for National Research
> Initiatives has developed an electronic identification system for=
 materials
> on the Internet.=20
>
> Known as the Digital Object Identifier (DOI)
> (<http://www.doi.org/>http://www.doi.org/) system, it works like this: The
> Directory Manager assigns a prefix code to any publisher willing to pay=
 the
> initial registration fee of $1000 plus an annual maintenance charge of=
 $.01
> per DOI prefix. Publishers may assign the prefix to any size item (book,
> article, abstract) and file type (text, audio, video). A central database
> directs users who click on a DOI to the proper web site, where the=
 publisher
> or distributor will present conditions for purchasing the content itself=
 (or
> licenses for its use).=20
>
> Still in the prototype stage, DOI has been used by over a dozen U.S. and
> European publishers to link article abstracts to availability of full=
 texts
> and for ordering books and CD-ROMs on-line.=20
>
> While the DOI does provide a means for tracking copyright ownership,=
 acting
> alone it does not prevent unauthorized copying of content once it is
> obtained. However, several companies have recently introduced technology
> that, in conjunction with a DOI-type system, may well serve the interests=
 of
> copyright holders in the digital age. Intel Corp. and four consumer
> electronics companies developed a system where a user may purchase a=
 limited
> license for the use of digital material (one viewing of a movie, for
> instance). The license, stored on the user's computer after purchase,
> contains a "key" to unlock the scrambled, copyrighted content. The user=
 may
> then make use of the material according to the license purchased.
>
> (<http://www.intel.com/pressroom/archive/releases/con21998.htm>http://www.
> intel.com/pressroom/archive/releases/con21998.htm).=20
>
> With the introduction of new technologies such as these, some in the
> education sector are asking if and how educational fair use rights will be
> guaranteed. Mark Stefik, a scientist at the Palo Alto Research Center, has
> suggested creating "fair-use licenses" that would permit teachers and
> students to make a limited amount of copies. (The Washington Post, p. 5
> (Business Section) - Feb. 23, 1998)=20
>
> __________________________________________________________________________=
=20
> Written from FARNET's Washington office, "FARNET's Washington Update" is a=
=20
> service to FARNET members and other interested subscribers. We gratefully=
=20
> acknowledge EDUCOM's NTTF and the Coalition for Networked Information=
 (CNI)=20
> for additional support. If you would like more information about the=
 Update=20
> or would like to offer comments or suggestions, please contact Garret Sern=
=20
> at garret () farnet org.=20






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