Internet: an Overview of Key Technology Policy Issues Affecting Its Use and Growth
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Order Code 98-67 STM CRS Report for Congress Received through the CRS Web Internet: An Overview of Key Technology Policy Issues Affecting Its Use and Growth Updated December 29, 2004 Marcia S. Smith, John D. Moteff, Lennard G. Kruger, Glenn J. McLoughlin, Jeffrey W. Seifert, and Patricia Moloney Figliola Resources, Science, and Industry Division Congressional Research Service ˜ The Library of Congress Internet: An Overview of Key Technology Policy Issues Affecting Its Use and Growth Summary The growth of the Internet may be affected by a number of issues being debated by Congress. This report summarizes several key technology policy issues. 1. Internet privacy issues encompass concerns about information collected by website operators and by “spyware,” and about the extent to which law enforcement officials are allowed to monitor an individual’s Internet activities. Congress has passed several laws already, but continues to debate what other legislation may be needed. 2. Concerns about computer and Internet security are prevalent in both the government and private sectors. Issues have also been raised about the vulnerability of the nation’s critical infrastructures (e.g. electrical power supply) to cyber attacks. Issues for Congress include oversight and improvement of the protection of federal computer systems and cooperation with and between the private sectors. 3. Broadband Internet access gives users the ability to send and receive data at speeds far greater than current Internet access over traditional telephone lines. With deployment of broadband technologies beginning to accelerate, Congress is seeking to ensure fair competition and timely broadband deployment to all sectors and geographical locations of American society. 4. Since the mid-1990s, commercial transactions on the Internet — called electronic commerce (e-commerce) — have grown substantially. Among the issues facing Congress are encryption procedures to protect e-commerce transactions, extension of the three-year tax moratorium on domestic e-commerce taxation, the impact of the USA PATRIOT Act, and how the policies of the European Union and the World Trade Organization (WTO) may affect U.S. e-commerce activities. 5. The new federal anti-spam law, the CAN-SPAM Act, permits, but does not require, the Federal Trade Commission (FTC) to create a “do not e-mail” list similar to the National Do Not Call list for telemarketers. Whether to require the FTC to establish such a list, and the extent to which the new law will actually reduce the amount of spam, remain congressional issues in the wake of the law’s enactment. 6. The administration and governance of the Internet’s domain name system (DNS) is currently under transition from federal to private sector control. Congress is monitoring how the Department of Commerce is managing and overseeing this transition in order to ensure competition and promote fairness among all Internet constituencies. 7. The evolving role of the Internet in the political economy of the United States continues to attract congressional attention. Among the issues are information technology research and development, the provision of online services by the government ( “e-government”), and availability and use of “open source” software. Contents Introduction ......................................................1 Legislation Passed by the 108th Congress ...............................1 Internet Privacy: The Intelligence Reform and Terrorism Protection Act (P.L. 108-458) ............................................1 Broadband Internet Access: Commercial Spectrum Enhancement Act (P.L. 108-494) ............................................1 E-Commerce: Internet Tax Non-Discrimination Act (P.L. 108-435) ......2 Spam: The CAN-SPAM Act (P.L. 108-187) .........................2 Domain Names: The PROTECT Act (P.L. 108-21), and The Fraudulent Online Identity Sanctions Act (P.L. 108-482) ....................2 Internet Privacy ...................................................3 Collection of Data by Website Operators and Fair Information Practices...3 Commercial Websites ......................................3 Federal Websites ..........................................4 Monitoring of E-Mail and Web Activity............................5 By Government and Law Enforcement Officials..................5 By Employers.............................................6 By E-Mail Service Providers.................................6 Spyware.....................................................6 Computer and Internet Security.......................................7 Broadband Internet Access .........................................12 Easing Restrictions and Requirements on Incumbent Telephone Companies..............................................13 Unbundling and Resale ....................................13 Provision of InterLATA Services ............................14 Federal Assistance for Broadband Deployment......................15 Electronic Commerce..............................................15 Background .................................................15 The E-Commerce Industry ......................................16 Issues for the Bush Administration and Congress....................17 Protection and Security Issues...............................17 E-Commerce Taxation.....................................17 The EU and WTO ........................................18 “Spam”: Unsolicited Commercial Electronic Mail.......................19 Internet Domain Names............................................20 Background .................................................21 Issues ......................................................22 Top Level Domains.......................................22 Protecting Children on the Internet ...........................22 Governance .............................................23 Trademark Disputes.......................................23 Government Information Technology Management ......................24 Internet Infrastructure: NTIA’s Role..............................24 Information Technology R&D ...................................24 Electronic Government (E-Government)...........................25 Open Source Software.........................................27 Appendix A: List of Acronyms......................................29 Appendix B: Legislation Passed by the 105th - 107th Congresses............32 Legislation Enacted in the 105th Congress..........................32 Legislation Enacted in the 106th Congress..........................34 Legislation Enacted in the 107th Congress..........................36 Appendix C: Related CRS Reports...................................39 Internet: An Overview of Key Technology Policy Issues Affecting Its Use and Growth Introduction The continued growth of the Internet for personal, government, and business purposes may be affected by a number of issues being debated by Congress. Among them are Internet privacy, access to broadband (high-speed) services, electronic commerce (e-commerce), the impact of “spam,” Internet domain names, and government information technology management. This report provides short summaries of those issues, plus appendices providing a list of acronyms, a discussion of related legislation passed in the 105th - 107th Congresses, and a list of other CRS reports that provide more detail on these topics. Legislation Passed by the 108th Congress The 108th Congress passed several laws related to the topics covered in this report. A brief summary of the new laws follows. Internet Privacy: The Intelligence Reform and Terrorism Protection Act (P.L. 108-458) The Intelligence Reform and Terrorism Protection Act (P.L. 108-458) was passed largely in response to recommendations from the 9/11 Commission, which investigated the September 11, 2001 terrorist attacks. Among its many provisions, the act creates a Privacy and Civil Liberties Oversight Board, composed of five members, two of whom (the chairman and vice-chairman) must be confirmed by the Senate. The Board’s mandate is to ensure that privacy and civil liberties are not neglected when implementing terrorism-related laws, regulations, and policies. The 9/11 Commission had recommended creation of such a Board because of concern that the USA PATRIOT Act, enacted soon after the attacks, shifts the balance of power to the government. Broadband Internet Access: Commercial Spectrum Enhancement Act (P.L. 108-494) The Commercial Spectrum Enhancement Act (Title II of H.R. 5419, P.L. 108- 494) seeks to make more spectrum available for wireless broadband and other services by facilitating the reallocation of spectrum from government to commercial users. CRS-2 E-Commerce: Internet Tax Non-Discrimination Act (P.L. 108- 435) Facing the expiration of an existing moratorium on Internet taxes, the 108th Congress passed S. 150, the Internet Tax Non-Discrimination Act. President Bush signed the bill into law on December 3, 2004 (P.L. 108-435). Among its provisions, the act: 1) extended the e-commerce tax moratorium for four years, from November 1, 2003 through November 1, 2007; 2) expanded the definition of Internet access to include both providers and buyers of Internet access; 3) grandfathered through November 1, 2007, Internet access taxes enforced before October 1, 1998; 4) similarly grandfathered through November 1, 2005 Internet access taxes enforced before November 1, 2003; and 5) excluded Voice Over Internet Protocol (VoIP) and similar voice services. Spam: The CAN-SPAM Act (P.L. 108-187) P.L. 108-187 (S. 877), the CAN-SPAM Act,