Technology-Related Legislation of the 105th Congress

Technology-Related Legislation of the 105th Congress
(as of November 3, 1998) Note: Bills that did not pass are in bold type I. PROTECTION OF INTELLECTUAL PROPERTY
A. H.R.2281 (S.2037): WIPO Copyright Treaties Implementation Act (Digital Millennium Copyright Act)

Status: SIGNED INTO LAW (10/28/98, P.L. 105-304)

Relevant Provisions:

Summary: Title I on the Act implements the World Intellectual Property Organization ("WIPO") Copyright Treaty and the WIPO Performances and Phonograms Treaty. The Senate ratified both treaties 10/21/98. Title II protects Internet service providers from monetary liability for infringements caused by online parties using their services, if the Internet services providers' activities fall within a list of safe harbors. Title III also amends current copyright law to make it clear that computer repair services can activate computer software while servicing a computer without infringing the software owner's copyright. Title IV clarifies the Register of Copyright's role in formulating policy, creates a licensing scheme for transmission of copyrighted material over the Internet, and preserves certain contractual obligations for downstream transfers of rights in motion pictures.

Title I
(1) Prohibits circumvention of technology (i.e. descrambling or decrypting) that controls access to a copyrighted work.

Exemptions:

People may circumvent technologies to achieve interoperability of an independently created computer program with other programs.

Good faith encryption research (requirements include good faith effort to obtain authorization before circumvention).

person can circumvent technology when the technology or underlying work it protects, contains personally identifying information reflecting the online activities of the person.

Security testing is permitted.

(2) Prohibits manufacturing, importing, offering, or providing any technology, product, service, device, or component that is primarily produced for circumventing a technological measure (i.e. descrambling or decrypting) that controls access to a copyrighted work. (3) Prohibits manufacturing, importing, offering or providing any technology, product, service, device or component that is primarily designed for the purpose of circumventing technology (i.e. avoiding, bypassing, removing, deactivating) that protects a right of a copyright owner.

Exemptions for above provisions:

libraries, archives and educational institutions

law enforcement investigations

(4) Prohibits providing or distributing false copyright management information (i.e. information set forth in a copyright and other identifying information) with the intent to induce, enable, facilitate, or conceal infringement (5) Prohibits intentionally removing or altering any copyright management information, without authority of the law or permission of the copyright owner. Prohibits distributing copyright management information knowing that the information has been removed or altered illegally. Prohibits distributing or performing copies of works or phonorecords knowing that copyright management information has been illegally removed or altered.

Exemptions:

analog transmission via a broadcast station or cable system where avoiding liability is not technically feasible and the transmitter did not intend to participate in infringement.

misplaced copyright management information in a digital transmission.

Willful violations of the above two subsections for purposes of commercial advantage or private financial gain are punishable by fines and/or imprisonment.

Title II
(1) Internet service provider ("ISP") is not liable for copyright infringement for transmitting, routing, or providing connections for infringing material if the ISP is acting merely as a conduit for information. (2) ISP is not liable for copyright infringement based on intermediate and temporary storage of infringing material on a network if the storage is part of the regular transmission process (subject to several conditions). (3) ISP is not liable for copyright infringement based on storing infringing material at the direction of a user if the ISP does not know or have reason to know that the material is infringing, does not receive a financial benefit directly from the infringing activity and removes the material upon notification of infringement. (ISP must have a designated agent to receive notification of claimed infringement). (4) ISP not liable for copyright infringement based on referring or linking users to an online location containing infringing material or activity or by using information location tools (i.e. a directory,, index, reference, pointer or hypertext link) if ISP does not know or have reason to know about infringing activity, does not receive a direct financial benefit from the infringing activity, and removes the material upon notification of infringement. (5) ISPs are not liable for good faith disabling of access to, or removal of, allegedly infringing material or activity, regardless of whether the material or activity is ultimately determined to be infringing. (6) A copyright owner may request a district court clerk to issue a subpoena to an ISP for identification of an alleged infringer. (subject to conditions)

Title III
(1) Permits the owner or lessee of a machine to make a copy of a computer program if the copy is made solely by activating the machine, for purposes only of maintenance or repair of the machine. The copy must be destroyed immediately after maintenance or repair is completed.

Title IV
(1) Register of Copyrights shall report to Congress how to promote distance education through digital technologies with consideration given to balancing the rights of copyright owners and the needs of users of copyrighted works. (2) Sound Recordings provision was amended to reflect a deal between Internet radio stations and the recording industry. Broadcasters will be subject to a statutory licensing arrangement. Broadcasters will not be liable for infringement when creating temporary phonorecords or copies of the sound recordings on a server during a broadcast.

Title V
(1) Creates a new IP right in the original design of boat hulls. It will expire in 2 years. At that time Congress will study its effectiveness.

II. YEAR 2000 ("Y2K")
A. S. 2392: Year 2000 Information and Readiness Disclosure Act

Status: SIGNED INTO LAW (10/19/98, P.L. 105-271) (as part of Omnibus Appropriations Act of 1988)

Relevant Provisions:

Summary: Encourages the disclosure and exchange of Y2K information.

For purposes of the Act, a Y2K Disclosure is: (1) any written Y2K Statement that is clearly marked on its face as a Y2K Disclosure; (2) inscribed on a tangible medium or stored in an electronic or other medium and retrievable in perceivable form; and (3) issued or published by or with the approval of a person or entity responsible for the Y2K processing of that person or entity or of products or services offered by that person or entity.

A Y2K Statement is any communication concerning an assessment, projection or estimate of Y2K processing capabilities of an entity, product or service; plan, objectives or timetables for implementing, verifying or testing Y2K processing by products or services; or reviewing, commenting on or otherwise directly or indirectly relating to Y2K processing capabilities.

A Y2K Statement does not include statements in documents or materials filed with the Securities and Exchange Commission or with any federal bank regulatory agencies or in disclosures accompanying securities offerings.

No Y2K Statement is admissible against the speaker unless (1) the disclosure serves as the basis for a claim for anticipatory breach, repudiation of a contract or a similar claim against the maker; or (2) the court in any covered action finds, in its discretion, that the Statement amounts to bad faith or fraud, or is otherwise beyond what is reasonable to achieve the purposes of the Act.

Publication of a Y2K Statement does not invoke liability unless the Y2K Statement is material; made with actual knowledge that it is false, inaccurate or misleading; and made with an intent to deceive or mislead or with reckless disregard as to its accuracy.

Republication of a Y2K Statement does not invoke liability unless the statement is material; made with actual knowledge that it is false, inaccurate or misleading, or without notice in that Y2K Statement that the maker has not verified the contents of the republication, or the maker is not the subject of the republication and that the Statement is based on information supplied by a third party.

To be adequate, notice must be in a commercially reasonable manner and for a commercially reasonable duration. The posting of notice on a Y2K Internet website in a commercially reasonable manner and time will generally be considered adequate notice so long as it is not contrary to express prior representations, or materially inconsistent with the parties' regular course of dealing. Permitting website notification does not (1) alter any federal or state law or regulation requiring a Y2K related notice by a different means; (2) create a duty to provide a Y2K processing notice; (3) preclude or suggest the use of another means of posting notice or require the use of an Internet website; or (4) mandate the content or timing of Y2K processing notices.

In defamation or trade disparagement actions, the maker of the Y2K Statement is not liable unless the Y2K Statement was made with knowledge that it was false or made with reckless disregard as to its truth or falsity.

Provides that in any covered action, a Y2K Statement shall not be interpreted or construed as amending or altering a contract or warranty unless the parties otherwise agree.

Permits Federal entities to expressly designate a request for Y2K information as a special Y2K data gathering request. Each such request must specify the entity to gather responses to the request. Y2K data gathering requests shall (1) be exempt from disclosure under the Freedom of Information Act; (2) not be disclosed to any third party; and (3) not be used by any third party in any civil action.

Exempts the facilitating, communicating or disclosing of Y2K information from the antitrust laws from the date of enactment to July 14, 2001. The exemption does not apply to conduct that involves or results in an agreement to boycott any person, to allocate a market, or to fix prices or output.

Does not apply to Y2K Statements expressly made to a consumer in a solicitation to that consumer by a seller, manufacturer or provider of a consumer product. The Act also does not apply to a Y2K Statement concerning a Y2K remediation product or service unless during the course of the offer the party making the offer provides a form of notice specified in the Act.

Applies to Y2K Statements made on or after July 14, 1998, through July 14, 2001, and Y2K Disclosures made after the date of enactment of the Act through July 14, 2001.

Provides a safe harbor disclosure provision. Namely, where a party has issued or published a Y2K Statement after January 1, 1996, and before the date of the enactment of the Act, that party may designate the Y2K Statement as a Y2K Disclosure if the Y2K Statement met the Act's requirements when made and if within 45 days after enactment the party provides individual notice or prominently posts on its Y2K website a notice that states that the Y2K Statement that is the subject of the notice is a Y2K Disclosure and includes a copy of the Y2K Statement with a legend labeling the statement as a "Year 2000 Readiness Disclosure." Under certain circumstances, however, retroactive disclosures are not covered under the Act.

Authorizes General Services Administration ("GSA") to create a Y2K web site to provide information and services about Y2K.

B. H.R. 4328: Department of Transportation and Related Agencies Appropriations Act, 1999

Status: SIGNED INTO LAW (10/21/98 - P.L. 105-277)

Select Provisions:

Summary: Includes $3.4 billion in emergency funds to ensure that federal computer systems are Y2K compliant.

C. S. 2384: Year 2000 Enhanced Cooperation Solution

Status: Referred to committee

Select Provisions:

Summary: Suspends antitrust laws to allow businesses to share information about the Y2K computer problem.

D. S. 2372: The Small Business Year 2000 Readiness Act

Status: Referred to committee

Select Provisions:

Summary: Establishes a limited-term program for which the Small Business Administration would guarantee 50% of the principal amount of each loan made by a private lender to help small businesses with Y2K computer problems.

E. S. 1518 - Year 2000 Computer Remediation and Shareholder Protection Act of 1997

Status: Referred to committee

Select Provisions:

Summary: Requires all publicly traded corporations to make specific disclosures in their initial public offering statements and quarterly reports, describing the progress made in completing five specified phases of remediating Year 2000 computer problems.

F. H.R. 4756: Year 2000 Preparedness Act of 1998

Status: Passed the House (10/13/98)

Relevant Provisions:

Summary: Enhances Congressional oversight of Government Y2K remediation efforts by requiring that all federal agencies submit status reports to Congress.

Requires all federal agencies to report to Congress about Y2K computer problems.

Encourages President Clinton to take a stronger leadership role in resolving Y2K problems.

G. NEWS:

The Department of Justice has issued business review letters stating that proposals to share Y2K-related information would not run afoul of antitrust laws.

On 7/29/98, the SEC issued an interpretive release to public companies on making clear disclosures to shareholders about Y2K problems.

The SEC announced on 10/20/98 that it has charged 37 broker-dealers with failing to report adequately on their readiness to meet the Y2K problem. The National Association of Securities Dealers Regulation Inc. announced on the same day that it has charged 59 member firms for late filing of the necessary information.

III. ELECTRONIC AUTHENTICATION
A. S. 2107: Government Paperwork Elimination Act

Status: SIGNED INTO LAW (10/21/98) (as part of Omnibus Appropriations Act of 1988)

Select Provisions:

Summary: Authorizes the use of electronic signatures for government forms and government-related online payments.

Directs the Assistant Secretary to provide to the Director accepted technical standards that: (1) are compatible with standards and technology for digital signatures used in commerce and industry and by State governments; (2) do not inappropriately favor one industry; and (3) are technology neutral.

Directs Director to issue guidelines as to the manner in which agencies may accept certificates verifying digital signatures from an agency or from a trusted third party that is licensed or accredited and insured against negligent issuance of certificates. Directs Secretary of State to determine from which foreign countries agencies may accept certificates.

B. S.1594: Digital Signature and Electronic Authentication Law (SEAL)

Status: Hearings held March 11, 1998. (Companion H.R. 3472 referred to subcommittee)

Select Provisions:

Summary: Permits financial institutions to use and sell digital authentication technology to verify the identities of parties to electronic transactions.

C. H.R. 2937: Electronic Financial Services Efficiency Act

Status: Referred to subcommittee 3/31/98

Select Provisions:

Summary: Requires that all forms of electronic authentication complying with standards set out in the bill have parity with traditional handwritten signatures, unless a state expressly provides otherwise. Goal: Prevent emergence of a number of different state electronic authentication laws.

D. NEWS:

Bank Consortium. On 10/21/98, a group of 8 multinational banking organizations announced a joint venture creating a global network of financial institutions authorized to certify the identities of businesses conducting electronic commerce over the Internet. Digital certificates issued by participants will provide businesses with a single digital identity based on universal specifications that can be used for all Internet activities.

IV. TAXATION
A. H.R. 4105 (S. 442): Internet Tax Freedom Act

Status: SIGNED INTO LAW (10/21/98; P.L. 105-277) (as part of Omnibus Appropriations Act of 1988)

Select Provisions:

Summary: Imposes a 3 year moratorium on certain state and local taxes on Internet access, as well as multiple or discriminatory taxes on electronic commerce. Expresses the sense of Congress that no new Federal taxes similar to those described above shall be enacted during the moratorium period. Creates a temporary Advisory Commission and directs the President to work with international bodies for the establishment of the Internet as a global free trade zone.

Bars states and their political subdivisions from imposing taxes on Internet access, unless such tax was generally imposed and actually enforced prior to 10/1/98. Prohibits multiple or discriminatory taxes on electronic commerce. "Electronic commerce," as defined in the bill, includes transactions conducted via the Internet that comprise the sale, lease, license, offer, or delivery of property, goods, services, or information, whether or not for consideration, and includes provision of Internet access.

States that comparable federal taxes will not be enacted during the moratorium period.

The moratorium runs from 10/1/98, until three (3) years after the date on enactment of the Act, 10/21/98.

New Internet-specific tax liability for consumers and vendors may not be enacted. Web search taxes, email surcharges, and other taxes that target the Net are not permitted. Tax collection requirements that discriminate against out-of-state Web sites are barred.

Creates a temporary Advisory Commission on Electronic Commerce to study trade barriers, the impact of collection of consumption taxes on electronic commerce on the global economy, and model state legislation that addresses electronic commerce concerns. The Commission is to report back to Congress within eighteen (18) months of the enactment of the Act.

Directs the President to work with international bodies to assure that electronic commerce is free from tariff and nontariff barriers, burdensome or discriminatory regulations, and discriminatory taxation.

The Act does not supercede current laws pertaining to taxation that are otherwise permissible, nor does it affect ongoing litigation relating to those laws.

Does not apply to those engaged in interstate or foreign Interstate sales or transfers of material that is harmful to children under seventeen (17) years of age.

V. CHILDREN
A. H.R. 3783: Child Online Protection Act

Status: SIGNED INTO LAW (10/21/98; P.L. 105-277) (as part of Omnibus Appropriations Act of 1988)

Select Provisions:

Summary:Amends part I of Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.) to require persons who are engaged in the business of distributing, by means of the World Wide Web, material that is harmful to minors to restrict access to such material by minors.

Prohibits the knowing distribution over the World Wide Web, of materials harmful to minors where the distribution is (1) for commercial purposes, and (2) available to minors.

Defines minor as an individual under seventeen (17) years old.

Harmful material includes any communication, picture, image, graphic image file, article, recording, writing, or other matter of any kind that is obscene or that the average person would find is designed to pander to the purient interests of minors. Material that, taken as a whole, lacks serious literary, artistic, political, or scientific value for minors also is considered harmful.

Provides for civil penalties not to exceed $50,000 for each violation and criminal penalties not to exceed over six (6) months imprisonment. Each day of violation constitutes a separate violation.

Excepted from the Act are the following parties:

telecommunications carriers;

Internet access service providers;

Internet information location tool providers; and

persons otherwise engaged in merely transmitting or storing third-party communications.

Affirmative defenses to the Act are that the Defendant, in good faith, has restricted access by minors to material that is harmful to minors by requiring the use of a verified credit card, debit account, adult access code, adult personal identification number, digital certificate that verifies age, or any other reasonable method.

Includes privacy protection requirements that prohibit covered commercial distributors from disclosing any information collected for purposes of complying with the Act and requires them to take such actions as are necessary to prevent unauthorized access to the information. Disclosure would be allowed only if it is necessary to make the communication or conduct legitimate business activity relating thereto.

Requires interactive computer service providers to notify new customers that parental control protections are available to limit access to materials harmful to minors.

Establishes a Commission on Online Child Protection to study methods to reduce children's access to harmful material on the Internet.

B. H.R. 3494: Protection of Children From Sexual Predators Act of 1998

Status: SIGNED INTO LAW (10/21/98)

Select Provisions:

Summary: Requires electronic communication service and remote computing service providers to report as soon as reasonably possible to law enforcement circumstances from which a violation of specified offenses involving child pornography is apparent.

Authorizes Attorney General to subpoena a provider and require it to disclose the name, address, local and long distance telephone toll billing record, telephone number or other subscriber number or identity, and length of service of a subscriber to or customer of such services and the type of services the subscriber utilized which may be relevant to investigation.

C. S. 2326: Children's Online Privacy Protection Act of 1998

Status: SIGNED INTO LAW (10/21/98) (as part of Omnibus Appropriations Act of 1988)

Select Provisions:

Summary: Requires Federal Trade Commission ("FTC") to regulate privacy of personal information collected for and about children on the Internet in order to provide greater parental control over use of such information.

Requires FTC within one year to proscribe regulations requiring commercial website operators to follow fair information practices in connection with the collection and use of personal information from children.

Specifically, the regulations are to require any website that is directed to children and that collects information from children to:

provide clear, prominent, understandable notice of the information collection and use practices of the website operator.

obtain verifiable parental consent for the collection, use, or disclosure of personal information from children who are under the age of thirteen (13).

use reasonable efforts to provide parents with notice and an opportunity to prevent the collection or use of personal information collected from children between the ages of twelve (12) and seventeen (17).

provide a parent access to the personal information of the child collected by that website and the opportunity to refuse or permit further use of such information.

Require commercial website operators to establish and maintain reasonable procedures to ensure confidentiality of information.

Certain safe harbors are provided.

VI. IDENTITY THEFT
A. H.R. 4151 (S. 512): Identity Theft and Assumption Deterrence Act of 1998

Status: SIGNED INTO LAW (10/21/98) (as part of Omnibus Appropriations Act of 1988)

Relevant Provisions:

Summary: Prohibits identity fraud; requires restitution for victims.

Amends the Federal criminal code to make it unlawful to knowingly obtain, possess, or transfer five or more means of identification; or use one or more means of identification. Means of identification is defined as any name or number that may be used to assume the identity of another.

Provides criminal penalties and requires mandatory restitution be paid to fraud victims. Restitution may include attorney's fees, costs incurred in clearing a credit history or rating, costs in connection with any proceeding to satisfy a debt, lien, or other obligation arising from the identity fraud.

Directs the Federal Trade Commission to establish procedures to log complaints, provide information to complaining individuals, and refer complaints to the appropriate entities, including law enforcement agencies.

VII. PRIVACY
A. H.R. 2369: The Wireless Privacy Enhancement Act

Status: Passed House; referred to Senate committee

Select Provisions:

Summary: Strengthens prohibitions and enforcement against eavesdropping on communications sent via wireless communications.

B. H.R. 4478: Depository Institution Customers Financial Enhancement Act; H.R. 4479: Securities Investor Privacy Enhancement Act

Status: Referred to committee

Select Provisions:

Summary: Requires financial service institutions to give customers notice of the gathering and use of information about them. Requires financial service institutions to obtain express written consent of customer prior to the sale or transfer of the information to a third party.

C. H.R. 4470: Personal Data Privacy Act of 1998

Status: Referred to committee

Select Provisions:

Summary: Prohibits agencies and private entities from transferring, selling, or disclosing personal data with respect to an individual, agency, or entity without express written consent.

D. H.R. 4425: Personal Privacy Protection Act (S.2103)

Status: Referred to committee

Select Provisions:

Summary: Amends criminal code to prohibit and penalize persistent following/chasing of anyone in the United States ("U.S.") for the purpose of obtaining a visual image, sound recording, or other physical impression of that person for commercial use in commerce where the individual had a reasonable expectation of privacy and had a reasonable fear that following/chasing would result in death/bodily injury.

E. H.R. 3747: Stalking Prevention and Victim Protection of 1998

Status:Referred to committee

Select Provisions:

Summary: Makes criminal the use of electronic mail for the purpose of stalking an individual.

F. H.R. 3551: Identity Piracy Act of 1998

Status:Referred to Judiciary Subcommittee on Coast Guard and Maritime Transportation

Relevant Provisions:

Summary: Prohibits identity fraud; authorizes restitution for victims.

Prohibits knowingly transferring, possessing, or using another's personal information, another's personal identifier, any identification device, or assuming another person's identity, with the intent to deceive or defraud.

Authorizes the court to order restitution for violation of Act.

G. H.R. 4321: Financial Information Privacy Act of 1998

Status:Reported to House Committee on Commerce (9/25/98)

Relevant Provisions:

Summary: Increases protection of private financial information.

Prohibits obtaining or soliciting customer information from a financial institution relating to another person under false pretenses.

Requires federal government to review and monitor threats to privacy of financial information.

H. H.R. 4388: Consumer Financial Privacy Protection Act of 1998

Status: Referred to Banking and Financial Services Subcommittee on Financial Institutions and Consumer Credit (8/5/98)

Relevant Provisions:

Summary: Places affirmative duty on financial institutions to protect confidential information about customers.

Declares that financial institutions have an affirmative and continuing obligation to respect the privacy of their customers and the security of customers' financial and personal information.

Subjects financial institutions to civil liability for harm resulting from noncompliance with this Act.

I. NEWS:

European legislation: The EU Directive on Data Protection

Status: Came into effect 10/25/98 in the European Union ("EU"). The EU member states, however, have agreed to a "standstill" of any interruption of data transfer to and from U.S. firms during negotiations between the EC and the U.S. as to data privacy.

Summary: Prevents companies operating in the 15-nation EU from transmitting data electronically to third countries, including the United States, unless those countries provided "adequate" protection of personal information including medical records and credit ratings.

U.S. Position: Secretary of Commerce David L. Aaron said that the U.S. would like (1) a SAFE HARBOR for U.S. firms adhering to certain privacy principles; (2) a grace period for compliance; and (3) recognition that U.S. on-line privacy services provide adequate privacy protections.

The FTC has set a 12/31/98 deadline for INDUSTRY SELF-REGULATION of privacy on-line including that dealing with children and otherwise.

The Commerce Department plans to issue general guidance on what sort of data-privacy principles it would like U.S. businesses to adhere to. The guidelines would be voluntary and would not have the force of regulation.

VIII. JUNK E-MAIL
A. S. 1618; H.R. 3888: Anti-Slamming Amendments Act

Status: Passed Senate.

Selected Provisions:

Summary: Requires senders of unsolicited commercial e-mail to identify themselves and inform recipient of right to request removal from e-mail mailing list. Authorizes the FTC to enforce the requirements with fines. Provides a civil cause of action for interactive computer service providers adversely affected by violations of the bill.

B. H.R. 1748: Netizens Protection Act of 1997

Status: Referred to House Committee on Commerce, Subcommittee on Telecommunications, Trade and Consumer Protection (6/2/97)

Selected Provisions:

Summary: Completely prohibits junk e-mail, unless there is a prior relationship between the sender and the recipient or the sender provides identifying information in the e-mail.

C. H.R. 4176: The Digital Jamming Act

Status: Referred to House Subcommittee on Telecommunications, Trade, and Consumer Protection (7/9/98)

Selected Provisions:

Summary: Requires senders of unsolicited commercial email to identify themselves. Permits e-mail service providers the right to fine users who violate their policy on unsolicited email.

D. H.R. 4124: The E-Mail User Protection Act

Status: Referred to House Subcommittee on Telecommunications, Trade, and Consumer Protection (7/2/98)

Selected Provisions:

Summary: Prohibits use of fictious return addresses and other deceptive practices in the transmittal of unsolicited email.

IX. GAMBLING
A. S. 474: Internet Gambling Prohibition Act

Status: Passed by the Senate (7/23/98)

Relevant Provisions:

Summary: Makes it illegal to place bets or transmit wagering information over the Internet.

B. H.R. 2380 (revised version is H.R. 4427): Companion Legislation to S. 474

Status: House Judiciary Subcommittee on Crime held hearings (2/4/98). A revised version of the bill was introduced 8/6/98 -H.R. 4427 (forwarded by Judiciary Subcommittee to Full Committee 9/14/98)

Relevant Provisions:

Summary: Makes it illegal to place bets or transmit wagering information over the Internet. Requires interactive computer service provider to cut off gambling sites when alerted by law enforcement that gambling is occurring. Provides immunity for providers acting in compliance with the bill.

C. H.R. 4350: Companion Legislation to S. 474

Status: Referred to Judiciary Subcommittee on Crime (8/6/98)

Provisions relating to Internet Gambling:

Summary: Makes it illegal to place bets or transmit wagering information over the Internet. Exempts state lotteries, racing, and Indian gambling.

X. SECURITY AND ENCRYPTION
A. S. 909: The Secure Public Networks Act

Status: In Senate Commerce Committee (6/19/97)

Select Provisions:

Summary: Limits government's authority to require the escrow of an encryption key where the communications are between private persons within the U.S. Establishes criminal penalties for acts relating to encryption and decryption. Grants Secretary of Commerce jurisdiction over exports of commercial encryption products and the duty to issue export licenses. Requires President to negotiate with other countries for mutual recognition of key recovery agents, and certificate authorities, to safeguard privacy, and prevent commercial espionage.

B. H.R. 695: Security & Freedom Through Encryption (SAFE) Act

Status: Reported to House from the Committee on Commerce (9/29/97)

Selected Provisions:

Summary: Limits Government's access to encrypted communications. Prohibits the use of encryption in connection with a federal felony. Liberalizes export laws for situations where software is generally available to the public. Requires the President to enter into international agreements for the promotion of encryption products and services.

C. S. 2067: Encryption Protects the Rights of Individuals from Violation and Abuse in Cyberspace (E-PRIVACY) Act

Status: Referred to Judiciary Subcommittee on Technology, Terrorism, Government (10/13/98)

Selected Provisions:

Summary: Liberalizes federal laws restricting the export of encryption products and establishes legal standards for the interception of electronic communications and stored data by the Government. Extends privacy protections to remotely stored information. Bans government-mandated key escrow and establishes a center to provide technical assistance to law enforcement in obtaining the plain-text of communications otherwise inaccessible.

D. NEWS:

The Commerce Department published proposed encryption export regulations that permit U.S. software companies to export nonrecoverable encryption products to banks, brokerage firms, credit card companies, and securities firms in 45 countries after a one-time review by the government.

The Clinton Administration intends to add health, medical and insurance companies and online merchants to the list of entities eligible to export powerful encryption under the new liberalized export policies.

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