Alerts and Updates
Vibes
August 2005
Welcome to Vibes, Duane Morris' periodic update on legal developments in information technology, e-commerce and telecommunications.
Recent Developments
Bill Would Extend Universal Service Fund Support to Broadband
On July 29, 2005, Senators Smith, Dorgan and Pryor introduced the Universal Service for the 21st Century Act. The Act is intended to authorize service support for broadband services in unserved areas and to expand the contribution base for the Universal Service Fund. The bill would amend the 1996 Telecommunications Act and the Communications Act of 1934 to immediately include intrastate revenues in the contribution base and direct the FCC to establish a permanent support mechanism that would include two-way voice communications in the base for universal service support. Additionally, the draft bill would establish a separate account of up to $500 million within the Universal Service Fund specifically designed to provide funding to support broadband in unserved areas. The FCC would then establish guidelines to determine who is eligible to receive such funding and distribute the funds to the states at its discretion.
The complete Universal Service for the 21st Century Act may be found at http://www.theorator.com/bills109/s1583.html.
Legality of Wi-Fi Piggybacking Questioned
CNET News.com reports that a Florida man was recently arrested for the unauthorized use of a wireless network when he was found in a residential neighborhood tapping into local wireless networks. This raises several legal questions regarding the legality of using someone else's Wi-Fi connection that is not password protected. The primary law that regulates Wi-Fi access is the Computer Fraud and Abuse Act, written in 1986 when wireless links had not been contemplated. The language is ambiguous when applied to wireless networks. This case will break legal ground in the United States. In the United Kingdom, however, a man was convicted in July of piggybacking the wireless networks of household residents when he was caught in a residential neighborhood using a wireless enabled laptop.
For a complete discussion regarding the legality of using a wireless network that is not password protected, see CNET News.com at http://news.com.com/FAQ+Wi-Fi+mooching+and+the+law/2100-7351_3-5778822.html and http://news.com.com/2061-10789_3-5800637.html.
Anonymous File Sharing Techniques Present New Challenge after Grokster Ruling
The recent Supreme Court decision in Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd. held "that one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties." This problem will begin to take on a new form, testing the Grokster decision, when it becomes more difficult to ascertain who is sharing files. New software expected to be available within the next few months will allow users to digitally share files anonymously through secured networks.
The complete Supreme Court decision in Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd. may be found at http://fairuse.stanford.edu/MGM_v_Grokster.pdf.
Further information regarding anonymous file sharing software may be found at http://www.nytimes.com/2005/08/01/technology/01file.html?ex=1280548800&en=2ab1bf4745b327bc&ei=5090&partner=rssuserland&emc=rss.
VOIP and Internet Broadband Services Must Be Wiretap Ready
On August 5, 2005, the Federal Communications Commission ordered Internet broadband providers and Voice over Internet Protocol (VOIP) providers to accommodate law enforcement wiretaps pursuant to the Communications Assistance for Law Enforcement Act. The deadline for providers to implement such changes is 18 months.
A complete copy of the FCC's news release regarding this order may be found on the FCC's Web site at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260434A1.pdf.
VOIP Provider Appeals FCC E911 Deadline
On August 15, a small VOIP provider filed an emergency appeal regarding the November 28, 2005, deadline for interconnected VOIP providers to implement enhanced 911 (E911) services. If an interconnected VOIP provider is unable to implement E911 service by November 28, they must disconnect subscribers who have failed to acknowledge that they are aware of the VOIP provider's failure to implement E911 services.
A complete copy of the FCC's June 3, 2005, order, adopted on May 19, 2005, may be found on the FCC's Web site at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-116A1.pdf.
Working Group on Internet Governance Makes Recommendations
On July 15, 2005, the United Nation's Working Group on Internet Governance (WGIG) released its final report. The report submitted four recommendations regarding Internet governance:
- Establishment of a Global Internet Council (GIC) consisting of representatives from each region. The GIC would take over the roles performed by the Department of Commerce and replace Internet Corporation for Assigned Names and Numbers (ICANN) and the Governmental Advisory Committee. ICANN would be internationalized and become accountable to the new GIC, which would be anchored in the United Nations.
- No specific oversight organization would be required. ICANN's Governmental Advisory Committee would be enhanced to meet concerns of various governments. A forum would be established to discuss and provide recommendations on certain issues.
- An International Internet Council would be established to deal with policy issues involving national interest as well as certain international public policy issues. An agreement regarding ICANN's new role would be required as well.
- Three new bodies would be established including: a) the Global Internet Policy Council, which would deal with international Internet-related public policy issues and technical standards; b) World Internet Corporation for Assigned Names and Numbers, which would be responsible for developing technical and economic areas of the Internet; and, c) the Global Internet Governance Forum, which would be charged with facilitating coordination (and discussion) of Internet-related public policy issues.
A complete copy of the WGIG's report may be found at http://www.wgig.org/.
About Duane Morris' Information Technologies and Telecom Practice Group
Duane Morris has assembled a dedicated group of lawyers with specific industry knowledge and a multidisciplinary approach to the transactional, finance, regulatory and dispute resolution aspects of structuring and implementing a wide range of information technologies and telecommunications projects. Our goal is to address these technologically and commercially complex challenges in an integrated, strategic and efficient manner.
For Further Information
For more information on the topics discussed in this update or if you have any questions, please contact one of the attorneys of our Information Technologies and Telecom Practice Group or the lawyer in the firm with whom you are regularly in contact.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
