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                   ACM WASHINGTON UPDATE

             U.S. Office of Public Policy of the
                  Association for Computing

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                   September 8, 1997
                        Volume 1.6

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CONTENTS
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INTRODUCTION

USACM ACTIVITIES

        California Assembly Unanimously Endorses "SAFE" Legislation
        USACM and Six Groups Sign Letter Opposing Floor Statement
        USACM Comments on Certificate Authorities and Digital Signatures

POLICY BRIEFS

        Cryptography Export Controls Ruled Unconstitutional
        Communications Decency Act "Dead"
        Proposed Regulations To Regulate Encryption Software Downloads
        Proposed Digital copyright legislation
        The "Internet Tax Freedom Act."
        DOE Announces Supercomputer Partnerships with Universities
        Next Generation Internet (NGI) Is Revised
        Nominations and New Appointments

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INTRODUCTION
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The Association for Computing is an international professional society
whose 75,000 members (60,000 in the U.S.) represent a critical mass of
computer scientists in education, industry, and government. The USACM
provides a means for promoting dialogue on technology policy issues with
United States policy makers and the general public. The WASHINGTON UPDATE
will report on activities in Washington which may be of interest to those
in the computing and information policy communities and will highlight
USACM's involvement in many of these issues.

To subscribe to the ACM WASHINGTON UPDATE send an e-mail to
listserv@acm.org with "subscribe WASHINGTON-UPDATE" (no quotes) in the body
of the message. Back issues are available at http://www.acm.org/usacm

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USACM ACTIVITIES
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CALIFORNIA ASSEMBLY UNANIMOUSLY ENDORSES "SAFE" LEGISLATION

On Friday night, September 5, the California Assembly passed a
resolution 79-0 which would encourage the California delegation to the U.S.
Congress to support the Goodlatte Bill, HR 695 (which calls for the removal
of export controls on forms of cryptography that are already widely
available outside the U.S.)  The California Senate had previously passed
the resolution unanimously.  The Resolution sets forth the Legislature's
vigorous disagreement with the Administration's cryptography export policy.
SJR29 (Vasconcellos - D. San Jose) is a resolution, as opposed to a piece
of legislation which is neither legally binding nor does it require the
governor's signature. The bill has been endorsed by a number of high-tech
companies that are located in California.

On August 26, USACM Chair Barbara Simons spoke promoting SJR29 before a
committee of the California Senate that deals with international trade;
the focus was on the loss of jobs in California. Also participating at the
Committee hearing were Whit Diffie from Sun, Kelly Blough from PGP,
Jack Wilson of ACL Datacom, Chuck Marson representing the California Internet
Industry Alliance (Netscape, Microsoft, AOL, CompuServe and Netcom),
and a representative of the Software Publishers Association. Undersecretary
of Commerce Reinsch wrote a letter opposing the resolution.

The resolution, authored by Sen. Vasconcellos, passed the committee
unanimously. It concludes, "Whereas There are pending in the United States
Congress Sen. No. 377 and H.R. 695, both of which would substantially ease
or eliminate current federal export controls on American cryptographic
products, and other legislation related to cryptography and export controls
is being introduced and considered in the Congress; now, therefore, be it
Resolved by the Senate and Assembly of the State of California, jointly,
That the Legislature of the State of California respectfully memorializes
to Congress and the President of the United States to take immediate action
to revise the current federal export controls on the export by American
companies of cryptographic products; and be is further Resolved, That the
Secretary of the Senate transmit copies of this resolution to the President
and Vice President of the United States, to the Speaker of the United
States House of Representatives, and to each Senator and Representative
from California in the Congress of the United States.
http://www.sen.ca.gov/


USACM AND SIX GROUPS SIGN LETTER OPPOSING FLOOR STATEMENT

On July 29, Representative Coble, Chairman of the Subcommittee on Courts
and Intellectual Property introduced implementing legislation for the WIPO
Copyright and Performances and Phonograms Treaties. In his accompanying
remarks, he stated that "This bill presents a reasonable compromise which
achieves these goals and reflects agreement among the traditional content
and software communities as well as many of the leading American members of
the consumer electronic and computer industries and user interests."

After a close reading of the legislation USACM found that this legislation
did not reflect USACM's perspective. On August 4th, USACM joined CCIA
(Computer and Communications Industry Association), ACIS (American
Committee for Interoperable Systems), DFC (Digital Futures Coalition), HRRC
(Home Recording Rights Coalition), and CEMA (Consumer Electronics
Manufacturers Association) in sending a letter to Chairman Coble. The
letter stated, "The undersigned represent many of the leading American
members of the consumer electronic and computer industries and user
interests. We regret to inform you that you have been misinformed regarding
our views on H.R. 2281, which we strongly oppose in its present form."
http://www.acm.org/usacm/copyright/coble_letter_897.html


USACM COMMENTS ON CERTIFICATE AUTHORITIES AND DIGITAL SIGNATURES

On July 16, USACM sent comments to the Director, Information Technology
Laboratory at the National Institute of Standards and Technology regarding
"Public Forum on Certificate Authorities and Digital Signatures." The
comments first defined the functional role of digital signatures and
certificate authorities in a public key infrastructure, then discussed a
technological concern about the performance of an infrastructure that would
couple the implementations of certificate authorities and a key recovery
system and our concerns about user expectations in this area. Finally, it
presented a summary of USACM's recommendations.

The conclusion stated, "private signature keys should not be deposited with
a key recovery agent not under the direct control of the key owner. For
this reason, we recommend that the public key infrastructure should
decouple any implementation of a key recovery system from the role
conventionally associated with CAs. We also recommend that the Department
explore means to protect consumers from the fraudulent use of keys. We also
believe that the Department should look specifically at the question of how
to apply the OECD privacy guidelines to the development of digital
signature and certification authority services."
http://www.acm.org/usacm/crypto/usacm_digsigs.html

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POLICY BRIEFS
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CRYPTOGRAPHY EXPORT RESTRICTIONS RULED UNCONSTITUTIONAL

On Aug. 25, U.S. District Judge Marilyn Hall Patel ruled that U.S.
government regulations on the export of encryption software are
unconstitutional She said licensing requirements for the export of
encryption software and related devices were an unconstitutional prior
restraint on First Amendment free speech rights. Patel also issued a
permanent injunction barring the government from enforcing the regulations
against plaintiff Daniel Bernstein or anyone who sought to use, discuss or
publish his encryption program. The decision was the second ruling in favor
of Daniel Bernstein, an Illinois math professor and cryptographer who
attempted to publish his Snuffle encryption program on the Internet.

Another legal challenge to export controls on cryptography is likely to
move forward in federal court in Washington, DC. In that case,
cryptographer Phil Karn is seeking approval to export a diskette containing
a verbatim copy of the source code printed in the book "Applied
Cryptography" (which is widely available and freely exportable). After
being litigated under the previous State Department export regulations,
Karn's case was remanded for reconsideration under the new Commerce
Department regulations. Commerce issued its ruling on August 22, finding
that certain programs on the diskette were classified as controlled
encryption items, and subject to prior licensing before export.

Until this issue is resolved, export controls on encryption software remain
in place. Individuals or companies wishing to export encryption software by
any means must continue to adhere to applicable export licensing controls
on such software before exporting it abroad. Additional information on the
Bernstein case is available at:
http://www.eff.org/pub/Privacy/ITAR_export/Bernstein_case/ and on the Karn
case at: http://people.qualcomm.com/karn/export/index.html

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COMMUNICATIONS DECENCY ACT "DEAD"

The Department of Justice agreed to convert the preliminary injunction in
ACLU v. Reno awarded last June to a permanent injunction. ACLU and ALA
attorneys submitted the injunction to the three-judge panel in
Philadelphia, who signed it.

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PROPOSED REGULATIONS TO REGULATE ENCRYPTION SOFTWARE DOWNLOADS

The Clinton Administration has circulated draft rules which would regulate
Web servers which enable users to download encryption software. The
proposed set of rules, currently in the form of an interagency draft
circulated by the Commerce Department, is a document designed to give other
agencies, like the Federal Bureau of Investigation or the National Security
Agency, the chance to comment on them. The Commerce Department has refused
to comment until the new rules are published in the Federal Register,
according to the New York Times.

The sites that would be affected are those which distribute encryption
software by directly downloading it onto the users computer. These sites
include those operated by Netscape, Pretty Good Privacy, and Microsoft.
Under the proposed rules, access to such sites would be more tightly
controlled or could disappear altogether in the future.

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PROPOSED DIGITAL COPYRIGHT LEGISLATION

Digital copyright legislation will be very important this Congressional
session. The Administration has sent the Copyright treaties passed by the
World Intellectual Property Organization to the Senate for ratification.
However accompanying legislation, which must be passed by both Houses is
necessary to enact the treaty. The Administration's implementing
legislation was introduced as H.R. 2281 and S. 1121. The bill bans
"technology" (including both hardware and software) that has few uses other
than "circumventing a technological protection measure." The bill also
tends to change the balance of power between copyright holders and users in
other ways. This legislation is supported by Rep. Henry Hyde (full
committee chair), Rep. Howard Coble (subcommittee chair), and Rep. Barney
Frank (ranking Democrat on the subcommittee).

On September 3, Senator Ashcroft introduced alternative implementing
language. The "Digital Copyright Clarification and Technology Education Act
of 1997 " would not ban the development and sale of devices which can be
used to circumvent copyright protection, but would link liability to using
such devices unlawfully.  It also addresses issues of fair use, library
preservation, distance education, and temporary reproduction. Its section
discussing on-line service provider liability guarantees that both
commercial and not-for-profit providers of Internet access will not be held
liable for activities of which they have no knowledge or over which they
have no control.

Also, the "On-Line Copyright Liability Limitation Act," (H. R. 2180) was
introduced by Rep. Coble and Rep. Henry Hyde on July 17. Under this
legislation, Internet service providers generally would not be liable for
their customers' copyright infringements. The House Judiciary Committee
will hold hearings on the OSP/WIPO legislation on Sept. 16 and 17. The
hearing on Sept. 16 will address OSP issues.

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THE INTERNET TAX FREEDOM ACT

On July 17, Senator Ron Wyden (D-Ore.) introduced the "Internet Tax Freedom
Act." The bill would prohibit Internet-specific taxes (introduced in
Connecticut), double-taxation ( introduced in Texas) and new Internet taxes
(introduced in Minnesota). The bill calls for a moratorium on such taxes,
during which the administration is directed to bring together state and
local governments, business and consumer groups to develop policy
recommendations for Congress on Internet taxation. According to Wyden's
floor statement, "Under the bill, there will be no more tax the Internet
first, ask questions later. The Internet is a new technology. It is
changing the way that we communicate, the way that we obtain information,
the way that we do business.  Electronic commerce holds tremendous
potential for small business, people living in rural America, the elderly
and the disabled. It simply does not fit into the existing geographical
mold of state and local taxation. Instead of trying to fit a brand-new
square peg into a decades-old round hole, government should take the time
to figure out the right way to regulate commerce on the Internet before
allowing a taxation feeding frenzy that could doom this still-developing
technology." 
http://thomas.loc.gov/cgi-bin/query/D?c105:1:./temp/~c10557dQ::

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DOE ANNOUNCES SUPERCOMPUTING PARTNERSHIPS WITH UNIVERSITIES

On July 31, Energy Secretary Federico Pena announced that five universities
have been selected to participate in DOE's Academic Strategic Alliances
Program (ASAP). Under this 10-year, $250 million program, the universities
will be given access to approximately 10 percent of the time on the
Department's three most powerful computers. Pena said this initiative would
create "a revolution in how science is conducted in the U.S." The program
will "change the way scientists solve complex problems," he said, while
making progress toward developing the simulations necessary to maintain the
stockpile and producing people with the needed expertise. The universities
will be Centers of Excellence, DOE says, which will "accelerate advances in
solving key science and engineering applications of national importance
while validating high-confidence simulation as a crucial scientific
methodology."

With the Administration's decision to end nuclear testing, DOE must rely on
computer modeling and simulation to certify the weapons' safety and
reliability. At its weapons labs, DOE has the most powerful computer in the
world, and two even faster ones under construction, and now needs to
develop skills and techniques for using this computing power to maintain
the stockpile. Noting that developing "an unprecedented level of simulation
capability requires strategic alliances with leading research
organizations," DOE has turned to the universities.

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NEXT GENERATION INTERNET INITIATIVE REVISED

At the end of July, the Clinton Administration released its revised plan
for the Next Generation Internet (NGI) initiative. The major critique of
the first plan  cited a lack of detail in defining the objectives of NGI
and in how the six government agencies slated to receive funding would
coordinate their research activities. The most notable aspect of the new
NGI plan is the reordering of priorities. Where the old version focused on
increasing the speed of the network infrastructure, the new plan puts
"experimental research for advanced network technologies" as its number one
goal. By emphasizing research above network infrastructure, the NGI team
appears to be promoting the practical applications Congress (and the
private sector) can understand.

The National Library of Medicine has committed $5 million to the program.
The major issue facing NGI right now is whether Congress will appropriate
the funds necessary to support the program. Currently, the House has
appropriated twice the amount of funding as the Senate. It appears likely
Congress will be appropriate less than the $100 million originally
requested by the Administration. The new plan has generated interest in
Congress. House Science Committee Chairman Jim Sensenbrenner (R-Wis) has
tentatively scheduled a hearing on NGI for September 10. http://www.ngi.gov

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NOMINATIONS AND NEW APPOINTMENTS

*       President Clinton announced his intent to designate William E.
Kennard to be Chair of the Federal Communications Commission (FCC) upon his
confirmation by the Senate as a Member of the FCC. Kennard, of California,
currently serves as General Counsel of the Federal Communications
Commission, a position he has held since December, 1993. Prior to serving
as General Counsel, Mr. Kennard was a partner and member of the Board of
Directors of the District of Columbia law firm Verner, Liipfert, Bernhard,
McPherson and Hand.

*       President Clinton announced the nomination of Michael K. Powell as
a Member of the Federal Communications Commission (FCC). Powell, of Fairfax
Station, Virginia, is currently the Chief of Staff of the Antitrust
Division, U.S. Department of Justice, where he has served since December
1996. Prior to this position, Mr. Powell served as an Associate from 1994
to 1996 with O'Melveny & Myers where he practiced in the areas of
telecommunications law, antitrust, regulatory affairs, and general
litigation.

*       President Clinton announced his intention to nominate Duncan T.
Moore as the Associate Director for Technology in the Office of Science and
Technology Policy, Executive Office of the President. Dr. Moore, of
Rochester, New York, is the Dean of the School of Engineering and Applied
Science at the University of Rochester. He has also served at the Institute
of Optics at the University of Rochester since 1974 as Assistant Professor,
Associate Professor and presently as the Kingslake Professor of Optical
Engineering. Dr. Moore has an extensive background in science and
technology policy, both in scientific research and industrial applications
of technology.

*       President Clinton announced his intent to nominate former Senator
Sam Nunn as Co-Chair of the Advisory Committee to the President's
Commission on Critical Infrastructure Protection, and three other Committee
Members: David Campbell, Charles Lee, and Elvin Moon. Senator Nunn, of
Georgia, is a senior partner in the Atlanta law firm of King & Spalding.
Senator Nunn was elected to the United States Senate from Georgia in 1972
and served for four terms. During his tenure in the U.S. Senate, he served
as chairman of the Senate Armed Services Committee and the Permanent
Subcommittee on Investigations. Senator Nunn also served on the Senate's
Intelligence and Small Business Committees.  David N. Campbell, of
Massachusetts, is President of BBN Technologies, a principal busness unit
of BBN Corporation which is a subsidiary of GTE Corporation. Previously, he
served as Chairman of Computer Task Group, an information Technology
Services Company.  Charles R. Lee, of Connecticut, became Chairman and the
Chief Executive Officer of GTE Corporation in 1992. Mr. Lee previously
served as President, Chief Operating Officer, and as Director of the
corporation. He joined GTE from Columbia Pictures Industries Inc., where he
was Senior Vice President of Finance.  Elvin Moon, of California, is
President of E.W. Moon Engineering & Construction Management Industries.
Mr. Moon's experience includes 15 years in management with corporations
including Hughes Aircraft, Rockwell International, Bechtel Inc. and
Weyerhauser. He currently serves as a Director on the Board of the Federal
Home Loan Bank of San Francisco.
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Washington Update is a biweekly publication of the U.S. Public Policy
Office of the Association for Computing http://www.acm.org/usacm 666
Pennsylvania Ave., SE, Suite 302B, Washington, DC 20003. 202/298-0842
(tel), 202/547-5482 (fax).
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