Order Code 98-67
CRS Report for Congress
Received through the CRS Web
Internet: An Overview of
Key Technology Policy Issues
Affecting Its Use and Growth
Updated December 20, 2005
Marcia S. Smith, John D. Moteff, Lennard G. Kruger, Angele A. Gilroy,
Jeffrey W. Seifert, and Patricia Moloney Figliola
Resources, Science, and Industry Division
Rita Tehan
Knowledge Services Group
Congressional Research Service ˜ The Library of Congress

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Internet: An Overview of Key Technology Policy Issues
Affecting Its Use and Growth
Summary
In the decade between 1994 and 2004, the number of U.S. adults using the
Internet increased from 15% to 63%, and by mid-2005, stood at 72%. From
electronic mail to accessing information to online purchasing (“electronic
commerce”), the Internet touches almost every aspect of modern life. The extent to
which use of the Internet continues to grow, however, may be affected by a number
of technology policy issues being debated in Congress.
First is the availability of high-speed — or “broadband” — Internet access.
Broadband Internet access gives users the ability to send and receive data at speeds
far greater than Internet access over traditional telephone lines. With deployment of
broadband technologies accelerating, Congress is seeking to ensure fair competition
and timely broadband deployment to all sectors and geographical locations of
American society.
Next are a range of issues that reflect challenges faced by those who do use the
Internet, such as security, privacy (including spyware and identity theft), unsolicited
commercial electronic mail (“spam”), protecting children from unsuitable material
(such as pornography), and computer security, including the vulnerability of the
nation’s critical infrastructures to cyber attacks.
Other issues include the governance of the Internet’s domain name system
(DNS), which is administered by a U.S.-based nonprofit corporation called the
Internet Corporation for Assigned Names and Numbers (ICANN). With the
Department of Commerce currently exercising legal authority over ICANN, and in
reaction to calls for greater international control over the Internet, the 109th Congress
has expressed its support for maintaining U.S. control over the domain name system.

The evolving role of the Internet in the political economy of the United States
also continues to attract congressional attention. Among the issues are what changes
may be needed at the Federal Communications Commission in the Internet age,
federal support for information technology research and development, provision of
online services by the government ( “e-government”), and availability and use of
“open source” software by the government.
A number of laws already have been passed on many of these issues. Congress
is monitoring the effectiveness of these laws, and assessing what other legislation
may be needed. Many bills are pending in the 109th Congress, particularly on
broadband deployment and Internet privacy (including identity theft). This report
identifies that legislation, but does not track the status of the bills. Other CRS reports
referenced in this document do track legislation, and the reader should consult those
reports, which are updated more frequently than this one, for current information.
This report is updated quarterly.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Background: Internet Usage and E-Commerce Statistics . . . . . . . . . . . . . . . . . . . 1
Internet Usage in the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Number of Users . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Geographic Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
International Internet Usage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
E-Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Broadband Internet Regulation and Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Computer and Internet Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Internet Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Collection of Data by Website Operators and Fair Information Practices . . 10
Commercial Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Federal Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Spyware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Identity Theft and “Phishing” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Monitoring of E-Mail and Web Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
By Government and Law Enforcement Officials . . . . . . . . . . . . . . . . . 13
By Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
By E-Mail Service Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
“Spam”: Unsolicited Commercial Electronic Mail . . . . . . . . . . . . . . . . . . . . . . . 14
Protecting Children from Unsuitable Material . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Internet Domain Names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Protecting Children on the Internet . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Trademark Disputes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Government Information Technology Management . . . . . . . . . . . . . . . . . . . . . . 22
The Federal Communications Commission . . . . . . . . . . . . . . . . . . . . . . . . . 22
Information Technology R&D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Electronic Government (E-Government) . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Open Source Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Appendix A: List of Pending Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Broadband Internet Regulation and Access . . . . . . . . . . . . . . . . . . . . . . . . . 29
Computer and Internet Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Internet Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Protecting Children . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

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Internet Domain Names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Government IT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Appendix B: List of Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Appendix C: Legislation Passed by the 105th-108th Congresses . . . . . . . . . . . . . 37
Appendix D: Related CRS Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

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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 technology policy issues being debated by
Congress. Among them are access to and regulation of broadband (high-speed)
Internet services, computer and Internet security, Internet privacy, the impact of
“spam,” concerns about what children may encounter (such as pornography) when
using the Internet, management of the Internet Domain Name System, and
government information technology management.
This report provides overviews of those issues, plus appendices providing a list
of pending legislation, a list of acronyms, a discussion of legislation passed in
earlier Congresses, and a list of other CRS reports that provide more detail on these
and related topics. Other issues that are not directly related to technology could also
affect the use and growth of the Internet, such as intellectual property rights. They
are not addressed in this report, but the list of CRS products in Appendix D includes
reports on related topics.
Because this report is updated only quarterly, it does not attempt to track
legislation. For more timely information, see the other CRS reports identified in the
following sections and in Appendix D.
Background: Internet Usage and
E-Commerce Statistics1
According to the Pew Internet & American Life Project, the percentage of adults
(age 18 or older) in the United States using the Internet increased from approximately
15% in 1994, to 72% (or 213 million) in mid-2005.2 It also found that 87% of
teenagers (age 12-17) use the Internet.3 On a typical day in 2005, the Pew report
shows, about 70 million American adults logged onto the Internet to use e-mail, read
1 By Rita Tehan, Knowledge Services Group.
2 Pew Internet and American Life Project. September 2005 Tracking Survey, September,
2005. See [http://www.pewinternet.org/trends/User_Demo_12.05.05.htm].
3 Pew Internet and American Life. Teens and Technology: Youth are Leading the Transition
to a Fully Wired and Mobile Nation, July 27, 2005. See [http://www.pewinternet.org
/PPF/r/162/report_display.asp].

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CRS-2
news, access government information, buy merchandise, and engage in countless
other activities.4
Internet Usage in the United States
Trends. Fifth Study of the Internet by the Digital Future Project Finds Major
New Trends in Online Use for Political Campaigns5 highlights the major findings
in the Annenberg School’s Digital Future Project, which is studying the impact of the
Internet on Americans. Among the findings are:
! Internet access has risen to its highest level ever. In 2005, 78.6% of
Americans go online.
! The number of hours spent online continues to increase, rising to an
average of 13.3 hours per week.
! Almost two-thirds of Americans (66.2%) use the Internet at home in
2005, a substantial increase from the 46.9% of users who reported
home Internet access in 2000.
! Belief that the Internet can be a tool for learning about the political
process continues to increase, with 60.4 % of users and 34.6% of
non-users agreeing that by using the Internet, people can better
understand politics.
! E-mail again tops the list of the most popular online activities. The
top 10 for 2005 are: e-mail, general Web surfing, reading news,
shopping, entertainment news (searching and reading), seeking
information about hobbies, online banking, medical information
(searching and reading), instant messaging, and seeking travel
arrangements and travel information.
Number of Users. The Federal Communications Commission (FCC) issues
biannual reports on broadband Internet access service.6 In its July 2005 report, the
FCC reported that during the year 2004, high-speed lines serving residential, small
business, larger business, and other subscribers increased by 34%, to 37.9 million
lines. High-speed lines serving residential and small business subscribers increased
4 Pew Internet and American Life Project. Internet: the Mainstreaming of Online Life,
January 25, 2005. See [http://www.pewinternet.org/pdfs/Internet_Status_2005.pdf].
5 USC Annenberg School, Center for the Digital Future. Fifth Study of the Internet by the
Digital Future Project Finds Major New Trends in Online Use for Political Campaigns,
D e c e m b e r 7 , 2 0 0 5 . S e e [ h t t p : / / w w w . d i g i t a l c e n t e r . o r g / p d f /
Center-for-the-Digital-Future-2005-Highlights.pdf].
6 For the purposes of the FCC report, broadband means high-speed lines that deliver services
exceeding 200 kilobits (kb) per second in at least one direction. Broadband Internet issues
are discussed later in this report.

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CRS-3
by 36% during 2004, to 35.3 million lines.7 Additional demographic information on
Internet users is compiled by MRI Cyberstats.8
Geographic Distribution. A Nation Online: Entering the Broadband Age
is the sixth report released by the U.S. Department of Commerce examining
Americans’ use of computers, the Internet, and other information technology tools.9
The report also examines the geographic differences in broadband adoption and the
reasons why some Americans do not have high-speed service. According to the
September 2004 report, although the rate of Internet penetration among rural
households (54.1%) was similar to that in urban areas (54.8%), the proportion of
Internet users with home broadband connections remained much lower in rural areas
than in urban areas.
International Internet Usage
According to a November 2005 estimate from the Computer Industry Almanac,
the worldwide number of Internet users is 1.08 billion.10 A more detailed report in
September 2004 concluded that there is little Internet-user growth in developed
countries, but over the next five years, many Internet users in developing countries
are expected to supplement computer-based Internet access with access via wireless
devices. The Almanac also found that Internet use is growing strongly in China, and
surpassed Japan for second place in 2003.11
Broadband subscribers in the Organisation for Economic Cooperation and
Development (OECD) member countries12 reached 137 million by the first half of
2005, adding 18 million broadband subscribers since January 2005. The OECD
7 FCC. Federal Communications Commission Releases Data on High-Speed Services for
Internet Access. Press release, July 7, 2005. Available at [http://www.fcc.gov/Bureaus/
Common_Carrier/Reports/FCC-State_Link/IAD/hspd1204.pdf].
8 MRI Cyberstats, Internet Access and Usage in the U.S., Spring 2005. See
[http://www.infoplease.com/ipa/A0908398.html]
9 U.S. Department of Commerce. A Nation Online: Entering the Broadband Age. September
2004. See [http://www.ntia.doc.gov/reports/anol/index.html]. Rural/urban geographic
distribution figures are on pp. 15-19.
10 ClickZ Stats, Population Explosion!, November 3, 2005. See [http://www.clickz.com
/stats/sectors/geographics/article.php/5911_151151]. See also: Worldwide Internet Users
will Top 1 Billion in 2005. Computer Industry Almanac, September 3, 2004. See
[http://www.c-i-a.com/pr0904.htm].
11 Computer Industry Almanac, Worldwide Internet Users will Top 1 Billion in 2005.
September 3, 2004. See [http://www.c-i-a.com/pr0904.htm].
12 OECD member countries include include Australia, Austria, Belgium, Canada, the Czech
Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy,
Japan, Korea, Luxembourg, Mexico, The Netherlands, New Zealand, Norway, Poland,
Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom, and the
United States.

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CRS-4
broadband penetration rate reached 11.8 subscribers per 100 inhabitants in June
2005, up from 10.2 subscribers per 100 inhabitants in December 2004.13
E-Commerce
The U.S. Census Bureau releases quarterly retail e-commerce statistics. On
November 22, 2005, its estimate of U.S. retail e-commerce sales for the third quarter
of 2005, adjusted for seasonal variation and holiday and trading-day differences, but
not for price changes, was $22.3 billion, an increase of 5.7% from the second quarter
of 2004. Total retail sales for the 3rd quarter of 2005 were estimated at $957.9
billion, an increase of 1.8% from the 2nd quarter of 2004.14 E-commerce sales in the
third quarter accounted for 2.3% of total sales.
Nearly a fifth of the online buying population, or 18%, accounts for nearly half,
or 46%, of total online spending. These buyers, dubbed “Most Valuable Purchasers”
(MVPs) by Nielsen//NetRatings, spend more dollars online and make more purchases
on the Internet than the rest of the online buying population.15
Broadband Internet Regulation and Access16
Broadband Internet access gives users the ability to send and receive data at
speeds far greater than conventional “dial up” Internet access over existing telephone
lines. Broadband technologies — cable modem, digital subscriber line (DSL),
satellite, wireless Internet, and fiber — are currently being deployed nationwide by
the private sector. While President Bush has set a goal of universal broadband
availability by 2007, some areas of the nation — particularly rural and low-income
communities — continue to lack full access to high-speed broadband Internet
service. In order to address this problem, the 109th Congress is considering the scope
and effect of federal broadband financial assistance programs (including universal
service), and the impact of regulatory policies and new technologies on broadband
deployment.
Some policymakers, believing that disparities in broadband access across
American society could have adverse economic and social consequences on those left
behind, assert that the federal government should play a more active role to avoid a
13 OECD Broadband Statistics, June, 2005. See [http://www.oecd.org/document/16/
0,2340,en_2649_34449_35526608_1_1_1_1,00.html].
14 U.S. Census Bureau. Quarterly Retail E-commerce Sales, 3r Quarter 2005, November
22, 2005.. See [http://www.census.gov/mrts/www/ecomm.html].
15 Nielsen//NetRatings press release, “Heaviest Online Buyers Represent 18 Percent of
Buyers, but Drive 46 Percent of Online Spending, According to Nielsen/Netratings,”
December 2, 2005. See [http://www.nielsen-netratings.com/pr/pr_051202.pdf].
16 By Lennard G. Kruger and Angele A. Gilroy, Resources, Science, and Industry Division.
See also CRS Issue Brief IB10045, Broadband Internet Access: Background and Issues,
by Angele A. Gilroy and Lennard G. Kruger, which is updated more frequently than this
report.

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“digital divide” in broadband access. One approach is for the federal government to
provide financial assistance to support broadband deployment in underserved areas
and in the 109th Congress, legislation has been introduced to provide financial
assistance (including loans, grants, and tax incentives) to encourage broadband
deployment. For more information on federal assistance for broadband deployment,
see CRS Report RL30719, Broadband and the Digital Divide: Federal Assistance
Programs, by Lennard G. Kroger and Angele A. Gilroy. Others, however, question
the reality of the “digital divide,” and argue that federal intervention in the broadband
marketplace would be premature and, in some cases, counterproductive.
The debate over access to broadband services has prompted policymakers to
examine a range of other issues to ensure that broadband will be available on a timely
and equal basis to all U.S. citizens. One facet of this debate focuses on whether
present laws and subsequent regulatory policies are needed to ensure the
development of competition and its subsequent consumer benefits, or conversely,
whether such laws and regulations are overly burdensome and discourage needed
investment in and deployment of broadband services. The regulatory debate focuses
on a number of issues including the extent to which legacy regulations should be
applied to traditional providers as they enter new markets, the extent to which legacy
regulations should be imposed on new entrants as they compete with traditional
providers in their markets, and the treatment of new and converging technologies.
For example, present law requires all incumbent local exchange (telephone)
carriers (ILECs), such as Verizon or SBC, to open up their networks to enable
competitors to lease out parts of the incumbent’s network. These unbundling and
resale requirements, which are detailed in Section 251 of the Telecommunications
Act of 1996, were enacted in an attempt to open up the local telephone network to
competitors. Whether such “open access” regulations should be applied to ILECs
when they offer new non-dominant services such as broadband connections, or to
new market entrants such as cable television companies when they offer services
(such as voice and broadband) remains under debate. Equally contentious is the
debate over whether legacy regulations, such as the requirement that cable television
companies obtain a local franchise as a prerequisite for offering video service, be
extended to other entrants, such as telephone companies, if they choose to enter the
video market. A third and related debate surrounds the appropriate regulatory
framework that should be imposed on new technologies such as voice over Internet
Protocol (VoIP) and other Internet Protocol services as well as bundled service
offerings.
The regulatory treatment of broadband technologies — whether offered by
traditional or emerging providers, or incumbent or new entrants — remains a major
focus of the policy debate. Cities, counties, and states have taken up the issue of
whether to mandate open access requirements on local cable franchises. In June
1999, a federal judge ruled that the city of Portland, Oregon had the right to require
open access to the Tele-Communications Incorporated (TCI) broadband network as
a condition for transferring its local cable television franchise to AT&T. On March
14, 2002, the FCC adopted a Declaratory Ruling which classified cable modem
service as an “interstate information service,” subject to FCC jurisdiction and largely
shielded from local regulation. After a series of conflicting court decisions the US
Supreme Court in a June 27, 2005 action (National Cable and Telecommunications

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CRS-6
Association v. Brand X Internet Services), ruled that the FCC should be given
deference in its decision that cable broadband service should be classified as an
“interstate information service.” The classification of cable modem service as an
“interstate information service” will result in FCC treatment under the less rigorous
Title I of the 1934 Communications Act. Similarly, in an August 5, 2005 action, the
FCC ruled that the regulatory treatment of wireline broadband services will be
granted regulatory parity. The FCC ruled that, subject to a one-year transition period,
wireline broadband Internet access services (commonly delivered by DSL
technology) are defined as information services, thereby placing telephone company
DSL services on an equal regulatory footing with cable modem services. What
response the Congress will have to this decision and subsequent FCC actions is yet
to be determined.
Finally, emerging broadband technologies — such as fiber, wireless (including
“3G”, “wi-fi” and “Wimax”), and broadband over power lines (BPL) — continue to
be developed and/or deployed, and have the potential to affect the regulatory and
market landscape of broadband deployment. Congress and the FCC will likely
consider policies to address the emergence of these and other new broadband
technologies. In addition, how and to what extent “social regulations” such as 911
requirements, disability access, law enforcement obligations, and universal service
support, should be applied to emerging technologies is also under debate. A related
issue, the emergence of municipal broadband networks (primarily wireless and fiber
based) and the debate over whether such networks constitute unfair competition with
the private sector has become a significant policy issue (for more information on
municipal broadband, see CRS Report RS20993, Wireless Technology and Spectrum
Demand: Advanced Wireless Services, by Linda K. Moore).
Computer and Internet Security17
On October 21, 2002, all 13 of the Internet’s root Domain Name System servers
were targeted by a distributed denial of service attack. While the attack had little
overall effect on the performance of the Internet, a more sophisticated and sustainable
attack might have had a more deleterious impact. As use of the Internet grows, so
has concern about security of and security on the Internet. A long list of security-
related incidents that have received wide-ranging media coverage (e.g. Melissa virus,
the Love Bug, and the Code Red, Nimda, Slammer, and Blaster worms) represents
the tip of the iceberg. More recently, some of the news reports of the loss of credit
card numbers and other personal identifying information has been due to
unauthorized computer intrusion. Every day, persons gain access, or try to gain
access, to someone else’s computer without authorization to read, copy, modify, or
destroy the information contained within. These persons range from juveniles to
disgruntled (ex)employees, to criminals, to competitors, to politically or socially
motivated groups, to agents of foreign governments.
The extent of the problem is unknown. Much of what gets reported as computer
“attacks” are probes, often conducted automatically with software widely available
17 By John D. Moteff, Resources, Science, and Industry Division.

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CRS-7
for even juveniles to use. But the number of instances where someone has actually
gained unauthorized access is not known. Not every person or company whose
computer system has been compromised reports it either to the media or to
authorities. Sometimes the victim judges the incident not to be worth the trouble.
Sometimes the victim may judge that the adverse publicity would be worse.
Sometimes the affected parties do not even know their systems have been
compromised. There is some evidence to suggest, however, that the number of
incidents is increasing. According to the Computer Emergency Response Team
(CERT) at Carnegie-Mellon University, the number of incidents reported to it has
grown just about every year since the team’s establishment — from 132 incidents in
1989 to over 137,000 incidents in 2003. Since many attacks are now coordinated and
cascade throughout the internet, CERT no longer tracks the number of incidents
reported to them. While the total number of incidents may be rising exponentially,
it is interesting to note that, according to the Computer Crime and Security Survey,
the percentage of respondents that reported unauthorized use of their computer
systems over the last 12 months has steadily declined over the last four years.18
The impact on society from the unauthorized access or use of computers is also
unknown. Again, some victims may choose not to report losses. In many cases, it
is difficult or impossible to quantify the losses. But social losses are not zero. Trust
in one’s system may be reduced. Proprietary and/or customer information (including
credit card numbers) may be compromised. Any unwanted code must be found and
removed. The veracity of the system’s data must be checked and restored if
necessary. Money may be stolen from accounts or extorted from the victim. If
disruptions occur, sales may be lost. If adverse publicity occurs, future sales may be
lost and stock prices may be affected. Estimates of the overall financial losses due
to unauthorized access vary and are largely speculative. Estimates typically range in
the billions of dollars per major event like the Love Bug virus or the series of denial-
of-service attacks of February 2000.19 Similar estimates have been made for the
Code Red worms. Estimates of losses internationally range up to the tens of billions
of dollars. In the 2004 Computer Crime and Security Survey, 269 responders (out
of a total of 494) estimated financial losses of $141 million in the previous 12
months. The 2004 survey found for the first time that the majority of those reporting
18 The Computer Crime and Security Survey is conducted by the Computer Security Institute
(CSI) in cooperation with the San Francisco Federal Bureau of Investigation’s Computer
Intrusion Squad. The CSI/FBI Survey, as it has become known, has been conducted
annually since 1996, and surveys U.S. corporations, government agencies, financial and
medical institutions and universities. The Survey does not discuss the reasons for this
decline; i.e. whether it is do improved security, non-reporting, attacks that go unnoticed, or
fewer attacks. The CSI/FBI survey does not represent a statistical sampling of the nation’s
computer security practitioners. The survey can be found at [http://www.gocsi.com] . This
website was last viewed on April 11, 2005. A different survey conducted by CSO
Magazine, in cooperation with the U.S. Secret Service, and CERT (2004 E-Crime Watch
Survey), released in May 2004, reported that 43% of its respondents reported an increase in
e-crimes or intrusions committed against their organization. E-crimes include any crime in
which electronic media has been used in its commission. The unit of measure in these two
surveys are not the same.
19 This refers to the series of attacks, in February 2000, directed at online giants Yahoo,
eBay, Amazon, E Trade, DATEK, Excite, ZDNEt, buy.com, and CNN.

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losses attributed them to viruses and denial of service attacks, versus the loss of
proprietary information and fraud, which had been identified as the primary cause
for losses in previous surveys. For more discussion on the economic impact of
attacks against computer systems, and the difficulties in measuring it, see CRS
Report RL32331, The Economic Impact of Cyber-Attacks, by Brian Cashell, Will D.
Jackson, Mark Jickling, and Baird Webel.
Aside from the losses discussed above, there is also growing concern that
unauthorized access to computer systems could pose an overall national security risk
should it result in the disruption of the nation’s critical infrastructures (e.g.,
transportation systems, banking and finance, electric power generation and
distribution). These infrastructures rely increasingly on computer networks to
operate, and are themselves linked by computer and communication networks. In
February 2003, the President’s Critical Infrastructure Board (established by President
George W. Bush through E.O. 13231 but later dissolved by E.O. 13286) released a
National Strategy to Secure Cyberspace. The Strategy assigned a number of
responsibilities for coordinating the protection of the nation’s information
infrastructure to the Department of Homeland Security. Most of the Department’s
efforts in cybersercurity are managed by the National Cyber Security Division
(NCSD) within in the Information Analysis and Infrastructure Protection Directorate.
As part of the Strategy, the NCSD has assumed a major role in raising awareness of
the risks associated with computer security among all users, from the home user to
major corporations, and to facilitate information exchange between all parties. To
this end numerous cooperative and coordinating groups and fora have been
established. One such activity is U.S.-CERT, a cooperative effort by the National
Cyber Security Division and Carnegie Mellon’s CERT, which among other services
and activities, produces alerts of new and existing attacks and guidelines for
preventing or responding to them.

Congress has shown, and continues to show, a strong interest in the security of
computers and the Internet. Over the years this interest has been manifested in
numerous hearings by a multitude of committees and subcommittees, in both the
House and the Senate. Legislation has also been passed. The federal Computer
Fraud and Abuse statute (18 U.S.C. 1030) was initially added as part of the
Comprehensive Crime Control Act of 1984 (P.L. 98-473). This act, as amended,
makes it a federal crime to gain unauthorized access to, damage, or use in an illegal
manner, protected computer systems (including federal computers, bank computers,
computers used in interstate and foreign commerce).20 Legislation specifically
requiring system owners/operators to take actions to protect their computer systems
has been confined to executive federal agencies (most recently, the Federal
Information Security Management Act of 2002, P.L. 107-347, Title III). Other
legislation is primarily aimed at protecting privacy by protecting certain personal
information held by government and private sector entities and affects computer
security indirectly. For example, the Gramm-Leach-Bliley Act (P.L. 106-102, Title
V) and the Health Insurance Portability and Accountability Act of 1996 (HIPPA, P.L.
20 Some of the penalties under this statute have been increased by both the USA PATRIOT
Act (P.L. 107-56, Section 814) and the Homeland Security Act of 2002 (P.L. 107-296,
Sectiom 225(g)).

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104-191, Title II, Subtitle F) require that entities have in place programs that protect
the financial and health-related information, respectively, in their possession. The
Sarbannes-Oxley Act of 2002 (P.P. 107-204) also indirectly affects private sector
computers and networks, by requiring certain firms to certify the integrity of their
financial control systems as part of their annual financial reporting requirements. To
the extent that this information resides on computer systems, these requirements
extend to those systems. Congress also supports a number of programs that help
develop computer security education, training, and research at selected universities.
For an overview of federal legislation and other federal documents associated with
computer and internet security, see CRS Report RL32357, Computer Security: A
Summary of Selected Federal Laws, Executive Orders, and Presidential Directives,
by John Moteff.
It is not clear how these efforts have affected the overall security of the Internet.
Given the perceived rise in security threats and attacks, there is a general sense that
more must be done. Aside from the inherent vulnerabilities associated with highly
interconnected information networks, two major sources of vulnerabilities exist:
software, and network configuration and management. Operating systems and
applications developers say they are paying greater attention to designing better
security into their software products. But it is still common to have vulnerabilities
found in products after they have been put on the market. In some cases, patches
have had to be offered at the same time a new product is brought onto the market.
Although patches typically are offered to fix these vulnerabilities, many system
administrators do not keep their software/configurations current. Many intrusions
take advantage of software vulnerabilities noted many months earlier, for which fixes
have already been offered.
There are as yet no agreed upon industry standards for determining how secure
a firm’s computer system should be or for assessing how secure it is in fact. Some
observers speculate that it is only a matter of time before owners of computer systems
are held responsible for damage done to a third-party computer as a result of
inadequately protecting their own systems.21 Nor are there any agreed upon standards
on how secure a vendor’s software product should be. The federal government, in
cooperation with a number of other countries, has developed a set of International
Common Criteria for Information Technology Security Evaluation, to allow certified
laboratories to test security products and rate their level of security for government
use. These criteria may evolve into industry standards for certifying security
products. Some in the security community feel that security will not improve without
some requirements imposed upon the private sector. However, both users and
vendors of computer software suggest that the market is sufficient to address security
in the most cost-effective manner. The Bush Administration, as the Clinton
Administration before it, has chosen to use engagement and not regulation to
encourage the private sector to improve security. However, both Administrations did
not rule out the use of regulation if necessary. For a discussion of the difficulties
associated with setting standards, see CRS Report RL32777, Creating a National
Framework for Cybersecurity: An Analysis of Issues and Options, by Eric A. Fischer.
21 See “IT Security Destined for the Courtroom,” Computerworld, May 21, 2001, vol. 35,
no. 21, pp. 1, 73.

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So far in the 109th Congress, legislation has been introduced that, again,
primarily addresses privacy issues with indirect impact on computer security. In light
of recent large losses of personal information through fraud, lost records, and
unauthorized access, a number of bills have been introduced that extend the
requirements to safeguard and protect personal information, similar to that found in
Gramm-Leach-Bliley and HIPPA, to “information brokers” and/or require any
organization engaged in interstate commerce holding personal information to inform
consumers of any security breach that may have compromised their information.
Bills commonly referred to as “Spyware” legislation have also been introduced.
These topics are discussed in the next section of this report.
Internet Privacy22
Internet privacy issues encompass a range of concerns. One is that the Internet
makes it easier for government and private sector entities to obtain information about
consumers and possibly use that information to the consumers’ detriment. That issue
focuses on the extent to which website operators, or software that has been
surreptitiously installed (“spyware”), collect personally identifiable information (PII)
and share that information with third parties, usually without the knowledge or
consent of the people concerned. Another aspect is the extent to which Internet
activities such as electronic mail (e-mail) and visits to websites are monitored by
government or law enforcement officials, employers, or e-mail service providers.
Collection of Data by Website Operators
and Fair Information Practices
One aspect of the Internet privacy issue is whether commercial websites should
be required to adhere to four “fair information practices” proposed by the Federal
Trade Commission (FTC): providing notice to users of their information practices
before collecting personal information, allowing users choice as to whether and how
personal information is used, allowing users access to data collected and the ability
to contest its accuracy, and ensuring security of the information from unauthorized
use. Some add enforcement as a fifth practice. In particular, the question is whether
industry can be relied upon to regulate itself, or if legislation is needed.
Commercial Websites. Although the FTC and the Clinton Administration
favored self regulation, in 1998, frustrated at industry’s slow pace, the FTC sought
and Congress passed the Children’s Online Privacy Protection Act (COPPA, part of
P.L. 105-277). Many bills have been introduced since that time to extend protection
to others, but the only ones that have passed involve federal government websites
(see below). Industry has taken steps to demonstrate that it can self regulate. One
example is the establishment of “seals” by groups such as the Better Business Bureau
and TRUSTe. To display a seal, a website operator must agree to abide by certain
privacy principles, a complaint resolution process, and to being monitored for
22 By Marcia S. Smith, Resources, Science, and Industry Division. See also CRS Report
RL31408, Internet Privacy: Overview and Pending Legislation, by Marcia S. Smith, which
is updated more frequently than this report.

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compliance. Another approach is using software called “P3P” (Platform for Privacy
Preferences Project) that gives individuals the option to allow their Web browser to
match the privacy policies of websites they access with the user’s selected privacy
preferences. Advocates of self regulation argue that these efforts demonstrate
industry’s ability to police itself. Advocates of further legislation argue that while
these efforts are useful, they do not carry the weight of law, limiting remedies for
consumers whose privacy has been violated. They also point out that while a site
may disclose its privacy policy, that does not necessarily equate to having a policy
that protects privacy. For the status of legislation pending in the 109th Congress, see
CRS Report RL31408, Internet Privacy: Overview and Pending Legislation, by
Marcia S. Smith.
Federal Websites. In June 2000, controversy erupted over the privacy of
visitors to government websites. The issue concerned federal agencies’ use of
computer “cookies”(small text files placed on users’ computers when they access a
particular website) to track activity at their websites. Federal agencies had been
directed by President Clinton and the Office of Management and Budget (OMB) to
ensure that their information collection practices adhere to the Privacy Act of 1974.
A September 5, 2000 letter from OMB to the Department of Commerce further
clarified that “persistent” cookies, which remain on a user’s computer for varying
lengths of time (from hours to years), are not allowed unless four specific conditions
are met. “Session” cookies, which expire when the user exits the browser, are
permitted.
In June 2000, however, it became known that contractors for the Office of
National Drug Control Policy (ONDCP) were using cookies to collect information
about those using ONDCP’s website during an anti-drug campaign. The White
House directed ONDCP to cease using cookies, and OMB issued a memorandum
reminding agencies to post and comply with privacy policies and detailing the limited
circumstances under which agencies should collect personal information. Congress
has included provisions in the Treasury-General Government (or Treasury-
Transportation) Appropriations Acts every year since FY2001 prohibiting agencies
from collecting, reviewing, or creating aggregate lists that include PII about an
individual’s access to or use of a federal website, or enter into agreements with third
parties to do so, with exceptions. Congress also passed the E-Government Act (P.L.
107-347) which requires federal websites to provide a privacy notice about their
information practices, and to translate their privacy policies into a standardized
machine-readable format, enabling P3P to work, for example.
Spyware
Spyware is another focus of congressional concern. There is no firm definition
of spyware, but one example is software products that include a method by which
information is collected about the use of the computer on which the software is
installed, and the user. When the computer is connected to the Internet, the software
periodically relays the information back to the software manufacturer or a marketing
company. Some spyware traces a user’s Web activity and causes advertisements to
suddenly appear on the user’s monitor — called “pop-up” ads — in response.
Typically, users have no knowledge that the software they obtained included spyware
and that it is now resident on their computers. A central point of the debate is

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whether new laws are needed, or if industry self-regulation, coupled with
enforcement actions under existing laws such as the Federal Trade Commission Act,
is sufficient. Several bills are pending in the 109th Congress. See CRS Report
RL32706, Spyware: Background and Policy Issues for Congress, by Marcia S.
Smith, for more information and status of the legislation.
Identity Theft and “Phishing”
The growth in the number of cases of “identity theft,” where one individual
assumes the identity of another to commit fraud, is alarming to many consumers,
including many Members of Congress. Despite widespread public perception that
the Internet is a major contributor to the rise in identity theft, surveys indicate that
comparatively few individuals who know how a thief acquired their personally
identifiable information (PII) cite the Internet. Some attribute the rise in identity theft
instead to carelessness by businesses in handling PII, and by credit issuers that grant
credit without proper checks.
The Internet may play a role, however. Today, attention is focused on a
relatively new scam called “phishing.” Phishing refers to a practice where someone
misrepresents their identity or authority in order to induce another person to provide
PII over the Internet. Some common phishing scams involve e-mails that purport to
be from a financial institution, ISP, or other trusted company claiming that a person’s
record has been lost. The e-mail directs the person to a website that mimics the
legitimate business’ website and asks the person to enter a credit card number and
other PII so the record can be restored. In fact, the e-mail or website is controlled
by a third party who is attempting to extract information that will be used in identity
theft or other crimes. The FTC issued a consumer alert on phishing in June 2004.23
Several laws restrict the disclosure of consumer information and require
companies to ensure the security and integrity of the data in certain contexts —
Section 5 of the Federal Trade Commission Act, the Fair Credit Reporting Act
(FCRA), and Title V of the Gramm-Leach-Bliley Act. Congress also has passed
several laws specifically related to identity theft: the 1998 Identity Theft and
Assumption Deterrence Act; the 2003 Fair and Accurate Credit Transactions (FACT)
Act; and the 2004 Identity Theft Penalty Enhancement Act. Those laws are
summarized in CRS Report RL31919, Remedies Available to Victims of Identity
Theft, by Angie A. Welborn. At a March 10, 2005 Senate Banking Committee
hearing, FTC Chairwoman Majoras referred to the “complicated maze” of laws that
govern consumer data, based on the type of company or institution involved, the type
of data collected or sold, and the purpose for which it will be used. A number of bills
are pending the 109th Congress that are related to identity theft, and hearings have
been held. See CRS Report RS22082, Identity Theft: The Internet Connection, by
Marcia S. Smith, for more on the role the Internet may play in this crime. For
information on pending legislation, see CRS Report RL31919, Remedies Available
to Victims of Identity Theft, by Angie A. Welborn.
23 FTC. “How Not to Get Hooked by a ‘Phishing’ Scam.” June 2004. See
[http://www.ftc.gov/bcp/conline/pubs/alerts/phishingalrt.pdf].

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Monitoring of E-Mail and Web Activity
By Government and Law Enforcement Officials. In the summer of
2000, it became known that the FBI, with a court order, was installing software on
ISP’s equipment to intercept e-mail and monitor an individual’s Web activity. The
extent to which that software program, originally called Carnivore (later renamed
“DCS 1000”), could differentiate between e-mail and Web activity involving a
subject of an FBI investigation and other people’s e-mail and Web activity was of
considerable debate, with critics claiming that Carnivore violated the privacy of
innocent users. The 21st Century Department of Justice Authorization Act (P.L. 107-
273) required the Justice Department to report to Congress on its use of DCS 1000
or any similar system at the end of FY2002 and FY2003. The reports were obtained
by the Electronic Privacy Information Center (EPIC) through the Freedom of
Information Act in 2005. According to the reports, the FBI no longer uses
Carnivore/DCS 1000, but uses commercially available software instead.
The overall environment for debating privacy issues changed substantially after
the September 11, 2001, terrorist attacks. Congress passed the USA PATRIOT Act
(P.L. 107-56), which expands the ability of government and law enforcement
authorities to monitor Internet activities. The Internet privacy-related provisions of
the USA PATRIOT Act are discussed in CRS Report RL31289, The Internet and the
USA PATRIOT Act: Potential Implications for Electronic Privacy, Security,
Commerce, and Government, by Marcia S. Smith, et al. One of the more
controversial provisions is Section 212, which allows ISPs to divulge records or other
information (but not the contents of communications) pertaining to a subscriber if
they believe there is immediate danger of death or serious physical injury or as
otherwise authorized, and requires them to divulge such records or information
(excluding contents of communications) to a governmental entity under certain
conditions. As amended in 2002 (by Section 225 of the Homeland Security Act), it
also allows an ISP to divulge the contents of communications to a Federal, state, or
local governmental entity if it has a good faith belief that an emergency involving
danger of death or serious physical injury requires disclosure of the information
without delay. The amended version of the language lowered the threshold for
permitting ISPs to divulge contents. Privacy advocates are concerned about the
revised language. EPIC notes, for example, that allowing an ISP to disclose the
contents of a communication to any governmental entity (instead of a “law
enforcement agency” as had been stated in the original Act) not only poses increased
risk to personal privacy, but also is a poor security strategy.
Several of the Internet-related sections of the USA PATRIOT Act, including
Section 212, are covered by a “sunset” clause under which they will expire on
December 31, 2005 unless Congress extends or abolishes the sunset clause.
Legislation is pending to extend the sunset clause to additional sections, or abolish
it entirely (thereby making all the provisions in the law permanent). Under H.R.
3199 as reported from conference (H.Rept. 109-333) and passed by the House, none
of the Internet-related sections of the USA PATRIOT Act would expire.
By Employers. Another issue is whether employers should be required to
notify their employees if e-mail or other computer-based activities are monitored.
The public policy concern appears to be less about whether companies should be able

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to monitor activity, but whether they should notify their employees of that
monitoring.
By E-Mail Service Providers. In what is widely-regarded as a landmark
ruling concerning Internet privacy, a U.S. Circuit Court of Appeals ruled in 2004 that
an e-mail service provider did not violate the Wiretap Act (18 U.S.C. §§ 2510-2522)
when it intercepted and read subscribers’ e-mails to obtain a competitive business
advantage. The case involved an e-mail service provider that sold out-of-print books.
The company used software to intercept and copy e-mail messages sent to its
subscribers (who were dealers looking for buyers of rare and out-of-print books) by
a competitor so company officials could read the e-mails and obtain a competitive
advantage. The case turned on the distinction between the e-mail being in transit, or
in storage (and therefore governed by a different law, the Stored Communications
Act, 18 U.S.C. §§ 2701-2711). Privacy advocates expressed deep concern about the
ruling. The Department of Justice is appealing the case. H.R. 3503/S. 936, the E-
Mail Privacy Act, would amend the Wiretap Act to clarify that it covers situations
such as that in the Councilman case.
“Spam”: Unsolicited Commercial Electronic Mail24
One aspect of increased use of the Internet for electronic mail (e-mail) has been
the advent of unsolicited advertising, also called “unsolicited commercial e-mail
(UCE),” “unsolicited bulk e-mail,” “junk e-mail, “or “spam.” Complaints focus on
the fact that some spam contains or has links to pornography, that much of it is
fraudulent, that it is a nuisance, and the volume is increasing.
In 2003, Congress passed a federal anti-spam law, the CAN-SPAM Act (P.L.
108-187), which became effective on January 1, 2004. The act preempts state laws
that specifically address spam but not state laws that are not specific to e-mail, such
as trespass, contract, or tort law, or other state laws to the extent they relate to fraud
or computer crime. It does not ban unsolicited commercial e-mail. Rather, it allows
marketers to send commercial e-mail as long as it conforms with the law, such as
including a legitimate opportunity for consumers to “opt-out” of receiving future
commercial e-mails from that sender. It does not require a centralized “do not e-
mail” registry to be created by the Federal Trade Commission (FTC), similar to the
National Do Not Call registry for telemarketing. The bill requires only that the FTC
develop a plan and timetable for establishing a “do not e-mail” registry and to inform
Congress of any concerns it has with regard to establishing it. The FTC reported to
Congress in June 2004 that without a technical system to authenticate the origin of
e-mail messages, a Do Not Email registry would not reduce the amount of spam, and,
in fact, might increase it. Authentication is a technical approach that could be used
to control spam that is under study by a number of groups, including ISPs, who are
attempting to develop a single authentication standard for the industry.
24 By Marcia S. Smith, Resources, Science, and Industry Division. See also CRS Report
RL31953, Spam: An Overview of Issues Concerning Commercial Electronic Mail, by
Marcia S. Smith, which is updated more frequently than this report.

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Many argue that technical approaches, such as authentication, and consumer
education, are needed to solve the spam problem — that legislation alone is
insufficient. Nonetheless, there is considerable interest in assessing how effective
the CAN-SPAM Act is in reducing spam. The effectiveness of the law may be
difficult to determine, however, if for no other reason than there are various
definitions of spam. Proponents of the law argue that consumers are most irritated
by fraudulent e-mail, and that the law should reduce the volume of such e-mail
because of the civil and criminal penalties included therein. Skeptics counter that
consumers object to unsolicited commercial e-mail, and since the bill legitimizes
commercial e-mail (as long as it conforms with the law’s provisions), consumers
actually may receive more, not fewer, unsolicited commercial e-mail messages.
Thus, whether “spam” is reduced depends in part on how it is defined.
In December 2005, the FTC submitted a report to Congress, as required under
the CAN-SPAM Act, on the act’s effectiveness and enforcement, and whether any
changes are needed.25 Based on information from ISPs, the general public, e-
marketers, law enforcers, and technologists, the report concluded that the act has
been effective in two areas: legitimate online marketers have adopted the “best
practices” mandated by the act, and the act provides an additional tool for law
enforcement officials and ISPs to bring suits against spammers. However, it also
concluded that some aspects of the spam problem have not changed, such as its
international dimension. It also reported on a number of “troubling” changes in the
e-mail landscape, such as the inclusion of malicious content (“malware”) in spam
messages. The report outlined three steps to further improve the effectiveness of the
act: passage of pending legislation (S. 1608, the US SAFE WEB Act) to improve the
FTC’s ability to trace spammers and sellers who operate outside U.S. borders;
continued consumer education; and continued improvement in anti-spam
technologies, especially domain-level authentication.
Although consumers are most familiar with spam on their personal computers,
it also is becoming an issue in text messaging on wireless telephones, pagers, and
personal digital assistants (PDAs). The CAN-SPAM Act included a provision
requiring the FCC to establish regulations to protect wireless consumers from spam.
The FCC issued those rules in August 2004. See CRS Report RL31636, Wireless
Privacy and Spam: Issues for Congress, by Marcia S. Smith, for more on wireless
privacy and wireless spam.
Protecting Children from Unsuitable Material26
Preventing children from encountering unsuitable material, such as
pornography, as they use the Web has been a major congressional concern for many
25 FTC. “Effectiveness and Enforcement of the CAN-SPAM Act: A Report to Congress. “
December 2005. See [http://www.ftc.gov/reports/canspam05/051220canspamrpt.pdf].
26 By Marcia S. Smith, Resources, Science, and Industry Division. See also CRS Report
RS21328, Internet: Status Report on Legislative Attempts to Protect Children from
Unsuitable Material on the Web, by Marcia S. Smith; and CRS Report 95-804, Obscenity
and Indecency: Constitutional Principles and Federal Statutes, by Henry Cohen.

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years. Several laws have been passed. They are summarized in CRS Report
RS21328, Internet: Status of Legislative Attempts to Protect Children from
Unsuitable Material on the Web, by Marcia S. Smith.
The laws include the 1996 Communications Decency Act (CDA), the 1998
Child Online Protection Act (COPA), and the 2000 Children’s Internet Protection
Act (CIPA). Federal courts ruled, in turn, that certain sections of CDA, COPA and
CIPA were unconstitutional. All the decisions were appealed to the Supreme Court.
The Supreme Court upheld the lower court decision on CDA in 1997. It heard
COPA twice, in 2002 and 2004, and each time remanded the case to a lower court.
The Supreme Court upheld CIPA in 2003. CIPA requires schools and libraries that
receive federal funding to use filtering technologies to block minors’ access to Web
pages that contain material that is obscene, child pornography, or “harmful to
minors” (as defined in CIPA). It also requires libraries receiving federal funds to
block websites containing obscene material or child pornography from access by
adults.
Congress also passed the “Dot Kids” Act (P.L. 107-317), which creates a kid
friendly space on the Internet, and the “Amber Alert” Act (P.L. 108-21) which, inter
alia, prohibits the use of misleading domain names to deceive a minor into viewing
material that is harmful to minors. Under the latter law, anyone found guilty of
knowingly using a misleading domain name to deceive a minor into viewing material
that is harmful to minors shall be fined, or imprisoned for no more than four years,
or both. Legislation is pending in the 109th Congress to amend that law to increase
the sentence and make imprisonment mandatory. H.R. 2318/S. 956 would increase
the maximum sentence to 10 years. H.R. 3132, which passed the House in
September 2005, would impose a minimum sentence of 10 years and a maximum of
30 years.
Congressional attention on protecting children initially focused on the Web as
the potential source of unsuitable material, but concern is rising about the availability
of pornography on “peer-to-peer” (P2P) networks. These networks use file-sharing
software to allow individual users to communicate directly with each other via
computer, rather than accessing websites. Such file-sharing programs are perhaps
best known because of their widespread use for downloading copyrighted music,
raising concerns about copyright violations.27 P2P networks can be used for sharing
any type of files, however, not only music. A 2003 GAO report found that “When
searching and downloading images on peer-to-peer networks, juvenile users face a
significant risk of inadvertent exposure to pornography, including child
pornography.”28 Then-Attorney General Ashcroft announced the results of a major
law enforcement effort against P2P networks that distribute child pornography in
27 For more on these issues, see CRS Report RL31998, File-Sharing Software and Copyright
Infringement: Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd.
28 U.S. General Accounting Office. File-Sharing Programs: Peer-to-Peer Networks Provide
Ready Access to Child Pornography. GAO-03-351. February 2003. p. 3.

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May 2004.29 Legislation was introduced, and hearings were held, in the 108th
Congress, but no bill passed.
Congressional interest in P2P networks is continuing in the 109th Congress. A
May 2005 GAO report for the House Government Reform Committee restated
GAO’s earlier finding that pornographic images are easily shared and accessed on
P2P networks and juveniles are at risk of inadvertent exposure to them.30 Focusing
of three of the most popular P2P programs — Warez, Kazaa, and Morpheus — GAO
tested filters offered by two of them (Kazaa and Morpheus) designed to block access
to objectionable material. GAO found that the Kazaa filter was effective in blocking
pornographic and erotic images, but the Morpheus filter was largely ineffective.
In the 109th Congress, legislation has been introduced (H.R. 3479/S. 1507) that
would impose a 25% tax on the amounts charged by “regulated pornographic
websites” (as defined in the bill). The proceeds would be used to pay for
enforcement of the act, for federal government programs such as Cyber Tip-line and
the Internet Crimes Against Children Task Force, and other purposes related to
protecting children who use the Internet. It would also set requirements on those
sites to verify that anyone viewing the site is over 18. It appears that such a tax likely
would be found unconstitutional, however. A 1987 Supreme Court decision
(Arkansas Writers’ Project, Inc. v. Ragland, 481 U.S. 221, 230) concluded that
“official scrutiny of the content of publications as the basis for imposing a tax is
entirely incompatible with the First Amendment’s guarantee of freedom of the press.”
Separately, S. 1633 would allow law enforcement officials to represent themselves
as minors on the Internet as part of investigations concerning online sexual predators.
For the status of legislation on this topic, see CRS Report RS21328, Internet: Status
Report on Legislative Attempts to Protect Children from Unsuitable Material on the
Web, by Marcia S. Smith.
As discussed in the next section, on June 1, 2005, the organization that manages
assignment of Internet domain names (ICANN) announced that it had entered into
negotiations with a registry company to operate a new “.xxx” domain for use by
websites offering adult content. The extent to which a separate domain for such
websites will reduce access to objectionable content by minors is unclear.
Registering as a .xxx domain is completely voluntary, and there is no requirement
that adult website operators discontinue their existing sites. Use of the new domain
may make it easier to use filters to block .xxx websites, but similarly could make it
easier to find adult-oriented material. ICANN has delayed consideration of final
approval of the .xxx domain name at the request of the Department of Commerce and
others. The Family Research Council, for example, opposes the idea because it
might “do more harm than good” [http://www.frc.org/get.cfm?i=PR05F01].
A c c o r d i n g t o t h e D e c e m b e r 2 , 2 0 0 5 E C o m m e r c e T i m e s
29 Department of Justice. Departments of Justice, Homeland Security Announce Child
Pornography File-Sharing Crackdown. Press release, May 14, 2004.
[http://www.usdoj.gov/opa/pr/2004/May/04_crm_331.htm]
30 U.S. Government Accountability Office (formerly the General Accounting Office). File
Sharing Programs: The Use of Peer-to-Peer Networks to Access Pornography. GAO-05-
634.

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[http://www.ecommercetimes.com/story/47649.html], ICANN has tabled the issue
indefinitely.
Internet Domain Names31
The 109th Congress continues to monitor issues related to the Internet domain
name system (DNS). Internet domain names were created to provide users with a
simple location name for computers on the Internet, rather than using the more
complex, unique Internet Protocol (IP) number that designates their specific location.
As the Internet has grown, the method for allocating and designating domain names
has become increasingly controversial.
Background
The Internet originated with research funding provided by the Department of
Defense Advanced Research Projects Agency (DARPA) to establish a military
network. As its use expanded, a civilian segment evolved with support from the
National Science Foundation (NSF) and other science agencies. No formal statutory
authorities or international agreements govern the management and operation of the
Internet and the DNS. Prior to 1993, NSF was responsible for registration of
nonmilitary generic Top Level Domains (gTLDs) such as .com, .org, and .net. In
1993, the NSF entered into a five-year cooperative agreement with Network
Solutions, Inc. (NSI) to operate Internet domain name registration services. With the
cooperative agreement between NSI and NSF due to expire in 1998, the Clinton
Administration, through the Department of Commerce (DOC), began exploring ways
to transfer administration of the DNS to the private sector.
In the wake of much discussion among Internet stakeholders, and after extensive
public comment on a previous proposal, the DOC, on June 5, 1998, issued a final
statement of policy, Management of Internet Names and Addresses (also known as
the “White Paper”). The White Paper stated that the U.S. government was prepared
to recognize and enter into agreement with “a new not-for-profit corporation formed
by private sector Internet stakeholders to administer policy for the Internet name and
address system.” On October 2, 1998, the DOC accepted a proposal for an Internet
Corporation for Assigned Names and Numbers (ICANN). On November 25, 1998,
DOC and ICANN signed an official Memorandum of Understanding (MOU),
whereby DOC and ICANN agreed to jointly design, develop, and test the
mechanisms, methods, and procedures necessary to transition management
responsibility for DNS functions to a private-sector not-for-profit entity.
The White Paper also signaled DOC’s intention to ramp down the government’s
Cooperative Agreement with NSI, with the objective of introducing competition into
the domain name space while maintaining stability and ensuring an orderly transition.
During this transition period, government obligations will be terminated as DNS
31 By Lennard G. Kruger, Resources, Science, and Industry Division. See also CRS Report
97-868, Internet Domain Names: Background and Policy Issues, by Lennard G. Kruger,
which is updated more frequently than this report.

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CRS-19
responsibilities are transferred to ICANN. Specifically, NSI committed to a
timetable for development of a Shared Registration System that permits multiple
registrars to provide registration services within the .com, .net., and .org gTLDs. NSI
(now VersiSign) will continue to administer the root server system until receiving
further instruction from the government.
Significant disagreements between NSI on the one hand, and ICANN and DOC
on the other, arose over how a successful and equitable transition would be made
from NSI’s previous status as exclusive registrar of .com, org. and net. domain
names, to a system that allows multiple and competing registrars. On November 10,
1999, ICANN, NSI, and DOC formally signed an agreement which provided that NSI
(now VeriSign) was required to sell its registrar operation by May 10, 2001 in order
to retain control of the dot-com registry until 2007. In April 2001, arguing that the
registrar business is now highly competitive, VeriSign reached a new agreement with
ICANN whereby its registry and registrar businesses would not have to be separated.
With DOC approval, ICANN and VeriSign signed the formal agreement on May 25,
2001. On September 17, 2003, ICANN and the Department of Commerce agreed
to extend their MOU until September 30, 2006. The MOU specifies transition tasks
which ICANN has agreed to address. ICANN will implement an objective process
for selecting new Top Level Domains; implement an effective strategy for multi-
lingual communications and international outreach; and develop a contingency plan,
consistent with the international nature of the Internet, to ensure continuity of
operations in the event of a severe disruption of operations.
On June 30, 2005, Michael Gallagher, Assistant Secretary of Commerce for
Communications and Information and Administrator of the National
Telecommunications and Information Administration (NTIA), stated the U.S.
Government’s principles on the Internet’s domain name system. Specifically, NTIA
states that the U.S. Government “intends to preserve the security and stability” of the
DNS, and that “the United States is committed to taking no action that would have
the potential to adversely impact the effective and efficient operation of the DNS and
will therefore maintain its historic role in authorizing changes or modifications to the
authoritative root zone file.”32 The NTIA statement also says that governments have
legitimate interests in the management of their country code top level domains, that
ICANN is the appropriate technical manager of the DNS, and that dialogue related
to Internet governance should continue in relevant multiple fora.
Issues
Congressional Committees (primarily the Senate Committee on Commerce,
Science and Transportation and the House Committee on Energy and Commerce)
maintain oversight on how the Department of Commerce manages and oversees
ICANN’s activities and policies. In response to proposals at the World Summit on
the Information Society for international control of the domain name system, the
109th Congress has expressed its support for maintaining U.S. control over ICANN.
32 Gallagher, Michael, Assistant Secretary of Commerce for Communications, Remarks to
the Wireless Communications Association, June 30, 2005. Available at
[http://www.ntia.doc.gov/ntiahome/domainname/USDNSprinciples_06302005.pdf].

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On November 16, 2005, the House unanimously passed H.Con.Res. 268, which
expresses the sense of the Congress that the current system for management of the
domain name system works, and that “the authoritative root zone server should
remain physically located in the United States and the Secretary of Commerce should
maintain oversight of ICANN so that ICANN can continue to manage the day-to-day
operation of the Internet’s domain name and addressing system well, remain
responsive to all Internet stakeholders worldwide, and otherwise fulfill its core
technical mission.” A similar resolution, S.Res. 323, was passed by the Senate on
November 18, 2005, and calls on the President to “continue to oppose any effort to
transfer control of the Internet to the United Nations or any other international
entity.”
Governance. The United Nations (UN), at the December 2003 World
Summit on the Information Society (WSIS), debated and agreed to study the issue of
how to achieve greater international involvement in the governance of the Internet
and the domain name system in particular. The study was conducted by the UN’s
Working Group on Internet Governance (WGIG). On July 14, 2005, the WGIG
released its report, stating that no single government should have a preeminent role
in relation to international Internet governance, calling for further internationalization
of Internet governance, and proposing the creation of a new global forum for Internet
stakeholders. Four possible models were put forth, including two involving the
creation of new Internet governance bodies linked to the UN. Under three of the four
models, ICANN would either be supplanted or made accountable to a higher
intergovernmental body. The report’s conclusions were scheduled to be considered
during the second phase of the WSIS held in Tunis in November 2005. U.S. officials
stated their opposition to transferring control and administration of the domain name
system from ICANN to any international body.
The European Union (EU) initially supported the U.S. position. However,
during September 2005 preparatory meetings, the EU seemingly shifted its support
towards an approach which favored an enhanced international role in governing the
Internet. Conflict at the WSIS Tunis Summit over control of the domain name
system was averted by the announcement, on November 15, 2005, of an Internet
governance agreement between the U.S., the EU, and over 100 other nations. Under
this agreement, ICANN and the U.S. will remain in control of the domain name
system. A new international group under the auspices of the UN will be formed —
the Internet Governance Forum — which will provide an ongoing forum for all
stakeholders (both governments and nongovernmental groups) to discuss and debate
Internet policy issues. The Internet Governance Forum is slated to run for five years
and will not have binding authority. The group is expected to hold its first meeting
in Athens in mid-2006.
Protecting Children on the Internet.
In the 107th Congress, legislation
sought to create a “kids-friendly top level domain name” that would contain only age-
appropriate content. The Dot Kids Implementation and Efficiency Act of 2002 was
signed into law on December 4, 2002 (P.L. 107-317), and authorizes the National
Telecommunications and Information Administration (NTIA) to require the .us
registry operator (currently NeuStar) to establish, operate, and maintain a second
level domain within the .us TLD that is restricted to material suitable for minors.

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In the 108th Congress, P.L. 108-21/S. 151 (PROTECT Act) contains a provision
(Section 108: Misleading Domain Names on the Internet) which would make it a
punishable crime to knowingly use a misleading domain name with the intent to
deceive a person into viewing obscenity on the Internet. Increased penalties are
provided for deceiving minors into viewing harmful material. In the 109th Congress,
the Children’s Safety Act of 2005 (H.R. 3132), passed by the House on September
14, 2005, would further increase criminal penalties for using misleading domain
names to direct children to harmful material on the Internet.
Meanwhile, on June 1, 2005, ICANN announced that it had entered into
commercial and technical negotiations with a registry company to operate a new
“.xxx” domain, which would be designated for use by adult websites. Registration
by adult websites into the .xxx domain would be purely voluntary, and those sites
would not be required to give up their existing (for the most part, .com) sites.
Announcement of a .xxx domain has proven controversial. With the ICANN Board
scheduled to consider final approval of the .xxx domain on August 16, 2005, the
Department of Commerce sent a letter to ICANN requesting that “adequate
additional time” be provided to allow ICANN to address the objections of
“individuals expressing concerns about the impact of pornography on families and
children and opposing the creation of a new top level domain devoted to adult
content.”33 ICANN’s Government Advisory Committee has also requested more
time before a final decision is made. ICANN has agreed to the delay and will
possibly make a final decision on the issue during the first quarter of 2006.
Trademark Disputes. The increase in conflicts over property rights to
certain trademarked names has resulted in a number of lawsuits. The White Paper
called upon the World Intellectual Property Organization (WIPO) to develop a set of
recommendations for trademark/domain name dispute resolutions, and to submit
those recommendations to ICANN. At ICANN’s August 1999 meeting in Santiago,
the board of directors adopted a dispute resolution policy to be applied uniformly by
all ICANN-accredited registrars. Under this policy, registrars receiving complaints
will take no action until receiving instructions from the domain-name holder or an
order of a court or arbitrator. An exception is made for “abusive registrations” (i.e.,
cybersquatting and cyberpiracy), whereby a special administrative procedure
(conducted largely online by a neutral panel, lasting 45 days or less, and costing
about $1000) will resolve the dispute. Implementation of ICANN’s Domain Name
Dispute Resolution Policy commenced on December 9, 1999. Meanwhile, the 106th
Congress passed the Anticybersquatting Consumer Protection Act (incorporated into
P.L. 106-113, the FY2000 Consolidated Appropriations Act). The act gives courts
the authority to order the forfeiture, cancellation, and/or transfer of domain names
registered in “bad faith” that are identical or similar to trademarks, and provides for
statutory civil damages of at least $1,000, but not more than $100,000, per domain
name identifier.
33 Letter from Michael Gallagher, Assistant Secretary for Communications and Information,
Department of Commerce, to Vinton Cerf, ICANN Board Chairman, August 11, 2005.
Available at [http://www.icann.org/correspondence/gallagher-to-cerf-15aug05.pdf]

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CRS-22
Privacy. Any entity who registers a domain name is required to provide
contact information (phone number, address, email) which is entered into a public
online database (the “WHOIS” database). Over the past several years, registrants
who wish to maintain their privacy have been able to register anonymously using a
proxy service offered by some registrars. In February 2005, the National
Telecommunications and Information Administration (NTIA) — which has authority
over the .us domain name — notified Neustar (the company that administers .us) that
proxy or private domain registrations will no longer be allowed for .us domain name
registrations, and that registrars must provide correct WHOIS information for all
existing customers by January 26, 2006. According to NTIA, this action will provide
an assurance of accuracy to the American public and to law enforcement officials.
The NTIA policy is opposed by privacy groups and registrars (such as Go Daddy)
who argue that the privacy, anonymity, and safety of people registering .us domain
names will be needlessly compromised.
In a related development, during the 108th Congress, the Fraudulent Online
Identity Sanctions Act was incorporated as Title II of H.R. 3632, the Intellectual
Property Protection and Courts Amendments Act of 2004, signed by the President on
December 23, 2004 (P.L. 108-482). The act increases criminal penalties for those
who submit false contact information when registering a domain name that is
subsequently used to commit a crime or engage in copyright or trademark
infringement.
Government Information Technology Management34
The evolving role of the Internet in the political economy of the United States
continues to attract increased congressional attention to government information
technology management issues. Interest has been further heightened by national
information infrastructure development efforts, e-government projects, and homeland
security initiatives. Although wide-ranging, some of the most significant information
technology management challenges facing the federal government include FCC
regulation of converging technologies, funding for information technology research
and development, ongoing development and oversight of electronic government (e-
government) initiatives, and the growing use of open source software by federal
agencies.
The Federal Communications Commission35
34 See also CRS Report RL30661, Government Information Technology Management: Past
and Future Issues (the Clinger-Cohen Act), by Jeffrey W. Seifert.
35 By Patricia Moloney Figliola, Resources, Science, and Industry Division. For more
information, see CRS Report RL32589, The Federal Communications Commission: Current
Structure and its Role in the Changing Telecommunications Landscape, by Patricia
Moloney Figliola; and CRS Issue Brief IB10045, Broadband Internet Access: Background
and Issues by Angele A. Gilroy and Lennard G. Kruger, both of which are updated more
frequently than this report.

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CRS-23
One of the most significant issues facing the FCC is the evolution of the
communications industry towards an all-digital, broadband world that has blurred the
distinctions between services, also called “convergence.” The FCC has restructured
over the past few years to better reflect the realities of convergence, but the agency
is still required to adhere to the statutory requirements of its governing legislation,
the Communications Act of 1934. Thus, while convergence has made distinguishing
among types of data increasingly difficult, the FCC must continue to differentiate
among services based on the distinctions drawn in the 1934 Act. Unfortunately,
when all data looks the same and functionally similar services are provided by
companies governed by different titles of the 1934 Act, questions of fairness and
competitive advantage may arise. As newer technologies and services are developed
and deployed, applying legacy regulations to them may begin to appear more
strained.
The FCC has addressed two issues directly related to convergence during the
109th Congress: the proper regulatory classification of services via the Internet
protocol (e.g., Voice over Internet Protocol [VoIP]) as well as law enforcement’s
ability to conduct wiretaps effectively (i.e., using the Communications Assistance for
Law Enforcement Act [CALEA]). These issues are — and will continue to be —
extremely important in reshaping the regulatory environment for telecommunications
and information services.
The FCC will also remain focused on broadband deployment. The agency will
continue to monitor its policies to encourage new providers to roll out new services
(e.g., power companies will be deploying broadband over powerlines [BPL]) as well
as continue to promote deployment to underserved areas and populations, i.e., rural
and low-income communities, through universal service and other programs (e.g., the
E-Rate).
One of the difficulties in addressing the issues facing the FCC is that so many
of them now intersect. So many of the broadband issues are inter-related that it is
often difficult to sort out where one issue ends and another begins. For example,
VoIP, CALEA, and BPL are all tied to the concept of broadband convergence and
reliance on the Internet for information, and it becomes difficult, if not impossible,
to discuss one without touching on the others. Effectively addressing these types of
issues may well be the greatest challenge facing both the FCC and Congress in the
near future.
Information Technology R&D36
At the federal level, almost all of the funding for information science and
technology and Internet development is part of a single government-wide initiative,
the Networking and Information Technology Research and Development program
(NITRD). This program was previously (1997-2000) called the Computing,
36 By Patricia Moloney Figliola, Resources, Science, and Industry Division. See also CRS
Issue Brief IB10130, The Federal Networking and Information Technology Research and
Development Program; Funding Issues and Activities, by Patricia Moloney Figliola, which
is updated more frequently than this report.

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CRS-24
Information, and Communications program (CIC) and, prior to that (1992-1997), the
High Performance Computing and Communications program (HPCC). The NITRD
is an interagency effort to coordinate key advances in information technology (IT)
research and leverage funding into broader advances in computing and networking
technologies. Under the NITRD, participating agencies receive support for high-
performance computing science and technology, information technology software
and hardware, networks and Internet-driven applications, and education and training
for personnel.
The FY2006 NITRD Program budget is approximately $2.155 billion, a 4.5%
decrease from FY2005. (Because the NITRD Program does not receive explicit
funding, the final budget figure is not yet available; it will be included in the FY2007
budget request document.) A significant part of this decrease can be attributed to the
reduction in funding for NITRD activities within the National Aeronautics and Space
Administration (NASA). Also, within the NITRD Program, funding for high-end
computing research and development (R&D) is down 6%, due in part to a decrease
in funding for these activities at the Office of Science within the Department of
Energy (DOE). The FY2005 budget provided $2.256 billion for the NITRD
Program, a 4% decrease from FY2004. An in-depth overview of FY2004 and
FY2005 NITRD activities, Guide to the NITRD Program, was released in December
2 0 0 4 ( T h i s d o c u m e n t i s a v a i l a b l e o n l i n e a t
[http://www.nitrd.gov/pubs/2006supplement]).
Research emphases are focused on eight program component areas (also called
PCAs): High-end Computing (HEC) Interagency Working Group (IWG), with two
PCAs, HEC Infrastructure and Applications (I&A) and HEC Research and
Development (R&D); Cyber Security and Information Assurance (CSIA) IWG;
Human Computer Interaction and Information Management (HCI&IM); Large Scale
Networking (LSN); Software Design and Productivity (SDP); High Confidence
Software and Systems (HCSS); and Social, Economic, and Workforce Implications
of IT and IT Workforce Development (SEW). Key issues facing congressional
policymakers include whether or not NITRD is accomplishing its goals and
objectives to enhance U.S. information technology research and development;
whether the funding level is appropriate or if it should be changed to reflect changing
U.S. priorities; and defining the private sector’s role in this initiative.
Electronic Government (E-Government)37
Electronic government (e-government) is an evolving concept, meaning
different things to different people. However, it has significant relevance to four
important areas of governance: (1) delivery of services (government-to-citizen, or
G2C); (2) providing information (also G2C); (3) facilitating the procurement of
goods and services (government-to-business, or G2B, and business-to-government,
or B2G); and (4) facilitating efficient exchanges within and between agencies
37 By Jeffrey W. Seifert, Resources, Science, and Industry Division. See also CRS Report
RL31057, A Primer on E-Government: Sectors, Stages, Opportunities, and Challenges of
Online Governance, by Jeffrey W. Seifert, which is updated more frequently than this
report.

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CRS-25
(government-to-government, or G2G). For policymakers concerned about e-
government, a central area of concern is developing a comprehensive but flexible
strategy to coordinate the disparate e-government initiatives across the federal
government.
The movement to put government online raises as many issues as it provides
new opportunities. Some of these issues include, but are not limited to: security,
privacy, management of governmental technology resources, accessibility of
government services (including “digital divide” concerns as a result of a lack of skills
or access to computers, discussed earlier), and preservation of public information
(maintaining comparable freedom of information procedures for digital documents
as exist for paper documents). Although these issues are neither new nor unique to
e-government, they do present the challenge of performing governance functions
online without sacrificing the accountability of, or public access to, government that
citizens have grown to expect. Some industry groups have also raised concerns about
the U.S. government becoming a publicly funded market competitor through the
provision of fee-for-services such as the U.S. Postal Service’s now-discontinued
eBillPay service, which allowed consumers to schedule and make payments to
creditors online [http://www.usps.com/paymentservices/ops_discontinued.htm].
E-government initiatives vary significantly in their breadth and depth from state
to state and agency to agency. Perhaps one of the most well-known federal examples
is the FirstGov website [http://www.firstgov.gov], which first went online on
September 22, 2000. FirstGov is a Web portal designed to serve as a single locus
point for finding federal government information on the Internet. The FirstGov site
also provides access to a variety of state and local government resources. Another
example is the Grants.gov initiative [http://www.grants.gov/], which is designed to
provide a single portal for all available federal grants, enabling users to search,
download applications, and apply for grants online. At the Department of Treasury,
the Internal Revenue Service (IRS) administers the Free File initiative
[http://www.irs.gov/efile/article/0,,id=118986,00.html], which has partnered with
industry to provide free online tax preparation and electronic filing services for
eligible taxpayers.
Pursuant to the July 18, 2001, OMB Memorandum M-01-28, an E-Government
Task Force was established to create a strategy for achieving the Bush
Administration’s e-government goals.38 In doing so, the Task Force identified 23
interagency initiatives designed to better integrate agency operations and information
technology investments. These initiatives, sometimes referred to as the Quicksilver
projects, are grouped into four categories; government-to-citizen, government-to-
government, government-to-business, and internal effectiveness and efficiency.
Examples of these initiatives include an e-authentication project led by the General
Services Administration (GSA) to increase the use of digital signatures, the eligibility
assistance online project (also referred to as GovBenefits.gov) led by the Department
of Labor to create a common access point for information regarding government
benefits available to citizens, and the Small Business Administration’s One-Stop
Business Compliance project, being designed to help businesses navigate legal and
38 See [http://www.whitehouse.gov/omb/inforeg/egovstrategy.pdf].

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CRS-26
regulatory requirements. A 24th initiative, a government wide payroll process project,
was subsequently added by the President’s Management Council. In 2002 the e-
Clearance initiative, originally included as part of the Enterprise Human Resources
Integration project, was established as a separate project, for a total of 25 initiatives.
Since that time, the Bush Administration has reclassified the e-Authentication
initiative as “a separate initiative that provides secure and robust authentication
services to the 24 [i]nitiatives,” bringing the official tally again to 24 initiatives.39
As the initial round of e-government projects continue to develop and become
fully operational, OMB has stated it plans to focus attention on initiatives that
consolidate information technology systems in six functional areas, or Lines of
Business (LoB). These include financial management, human resource management,
grants management, case management, federal health architecture, and information
security. These initiatives were chosen, in part, because they represent core business
functions common to many departments and agencies, and/or have the potential to
reap significant efficiency and efficacy gains. These LoB initiatives are anticipated
to create $5 billion in savings over 10 years.

On December 17, 2002, President Bush signed the E-Government Act of 2002
(P.L. 107-347) into law. The law contains a variety of provisions related to federal
government information technology management, information security, and the
provision of services and information electronically. One of the most recognized
provisions involves the creation of an Office of Electronic Government within OMB.
The Office is headed by an Administrator, who is responsible for carrying out a
variety of information resources management (IRM) functions, as well as
administering the interagency E-Government Fund provided for by the law.
For the 109th Congress, continued oversight of the Quicksilver projects, the
implementation of the E-Government Act, and the development of the second
generation Lines of Business e-government initiatives are the primary oversight
issues. Other issues include ongoing efforts to develop a federal enterprise
architecture, which serves as a blueprint of the business functions of an organization,
a n d t h e t e c h n o l o g y u s e d t o c a r r y o u t t h e s e f u n c t i o n s
[http://www.whitehouse.gov/omb/egov/a-1-fea.html]; the recruitment and retention
of IT managers, at both the chief information officer (CIO) and project manager
levels; and balancing the sometimes competing demands of e-government and
homeland security.
Open Source Software40
The use of open source software by the federal government has been gaining
attention as organizations continue to search for opportunities to enhance their
information technology (IT) operations while containing costs. For the federal
government and Congress, the debate over the use of open source software intersects
several other issues, including, but not limited to, the development of homeland
39 See [http://www.whitehouse.gov/omb/egov/c-presidential.html].
40 By Jeffrey W. Seifert, Resources, Science, and Industry Division. See also CRS Report
RL31627, Computer Software and Open Source Issues: A Primer, by Jeffrey W. Seifert.

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CRS-27
security and e-government initiatives, improving government information technology
management practices, strengthening computer security, and protecting intellectual
property rights. In the 109th Congress, the debate over open source software is
anticipated to revolve primarily around information security and intellectual property
rights. However, issues related to cost and quality are likely to be raised as well.

Open source software refers to a computer program whose source code, or
programming instructions, is made available to the general public to be improved or
modified as the user wishes. Some examples of open source software include the
Linux operating system and Apache Web server software. In contrast, closed source,
or proprietary, programs are those whose source code is not made available and can
only be altered by the software manufacturer. In the case of closed source software,
updates to a program are usually distributed in the form of a patch or as a new
version of the program that the user can install but not alter. Some examples of
closed source software include Microsoft Word and Corel WordPerfect. The
majority of software products most commonly used, such as operating systems, word
processing programs, and databases, are closed source programs.

For proponents, open source software is often viewed as a means to reduce an
organization’s dependence on the software products of a few companies while
possibly improving the security and stability of one’s computing infrastructure. For
critics, open source software is often viewed as a threat to intellectual property rights
with unproven cost and quality benefits. So far there appear to be no systematic
analyses available that have conclusively compared closed source to open source
software on the issue of security. In practice, computer security is highly dependent
on how an application is configured, maintained, and monitored. Similarly, the costs
of implementing an open source solution are dependent upon factors such as the cost
of acquiring the hardware/software, investments in training for IT personnel and end
users, maintenance and support costs, and the resources required to convert data and
applications to work in the new computing environment. Consequently, some
computer experts suggest that it is not possible to conclude that either open source
or closed source software is inherently more secure or more cost efficient.
The official U.S. federal government policy regarding the use of open source
software by government agencies is described in a July 2004 Office of Management
and Budget (OMB) memorandum on software acquisition, M-04-16 Memoranda for
Senior Procurement Executives, Chief Information Officers, Software Acquisition.
The memorandum states that the policies guiding government information
technology investment decisions are “technology and vendor neutral” and that
agencies’ technology choices “must be consistent with the agency’s enterprise
architecture and the Federal Enterprise Architecture.”41 Agencies are also instructed
to take into account a number of other merit-based factors, including information
security, licensing requirements, and total cost of ownership. Implicit in these
requirements is an expectation that agencies will also make choices based on the
quality of the product.
41 For more information about enterprise architectures generally, and the Federal Enterprise
Architecture (FEA) specifically, see CRS Report RS22194, Federal Enterprise Architecture
and Information Technology Management: An Overview, by Jeffrey W. Seifert.

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The growing emphasis on improved information security and critical
infrastructure protection overall, will likely be an influential factor in future decisions
to implement open source solutions. The rapidly changing computer environment
may also foster the use of a combination of open source and closed source
applications, rather than creating a need to choose one option at the exclusion of
another.

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CRS-29
Appendix A: List of Pending Legislation
Following is a list of legislation pending before the 109th Congress on the topics
covered in this report. The format is: bill number, sponsor, title, date introduced,
and committee(s) of referral. This report does not track the legislative status of the
pending legislation. For more information, see the CRS reports cited in the text of
the relevant section of this report (and in Appendix D).
Broadband Internet Regulation and Access
H.R. 144, McHugh, Rural America Digital Accessibility Act, 1/4/05 (Energy &
Commerce, Ways & Means)
H.R. 146, McHugh, “to establish a grant program to support broadband-based
economic development efforts,” 1/4/05 (Transportation & Infrastructure,
Financial Services)
H.R. 214 Stearns, Advanced Internet Communications Services Act of 2005, 1/14/05
(Energy &Commerce)
H.R. 1479, Udall, Rural Access to Broadband Services Act, 4/5/05 (Ways & Means,
Science, Energy & Commerce)
H.R. 2418, Gordon, IP-Enabled Voice Communications and Public Safety Act of
2005, 5/18/05 (Energy & Commerce)
H.R. 2726, Sessions, Preserving Innovation in Telecom Act of 2005, 5/26/05
(Energy & Commerce)
H.R. 3146, Blackburn, Video Choice Act of 2005, 6/30/05 (Energy & Commerce)
S. 14, Stabenow, Fair Wage, Competition, and Investment Act of 2005, 1/24/05
(Finance)
S. 497, Salazar, Broadband Rural Revitalization Act of 2005, 3/2/05 (Finance)
S. 502, Coleman, Rural Renaissance Act, 3/3/05 (Finance)
S. 1063, Nelson, Bill, IP-Enabled Voice Communications and Public Safety Act of
2005, 5/18/05 (Commerce)
S. 1147, Rockefeller, Amends the Internal Revenue Code of 1986 to provide for the
expensing of broadband Internet access expenditures, 5/26/05 (Finance)
S. 1294, Lautenberg, Community Broadband Act of 2005, 6/23/05 (Commerce)
S. 1349, Smith, Video Choice Act of 2005, 6/30/05 (Commerce)
S. 2113, DeMint, Digital Age Communications Act of 2005, 12/15/2005
(Commerce)
Computer and Internet Security
H.R. 29, Bono, Spy Act, 1/4/05 (Energy & Commerce)
H.R. 744, Goodlatte, I-SPY Act, 2/10/05 (Judiciary)
H.R. 1069, Bean, Notification of Risk to Personal Data Act, 3/3/05 (Energy &
Commerce, Government Reform, Financial Services)
H.R. 1080, Markey, Information Protection and Security Act, 3/3/05 (Energy &
Commerce)
H.R. 1263, Stearns, Consumer Privacy Protection Act, 3/10/05 (Energy &
Commerce, International Relations)

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H.R. 3140, Bean, Consumer Data Security and Notification Act of 2005, 6/30/2005
(Financial Services)
S. 500, Bill Nelson, Information Protection and Security Act, 3/3/05 (Commerce)
S. 687, Burns, SPY BLOCK Act, 3/20/05 (Commerce)
S. 751, Feinstein, Notification of Risk to Personal Data Act, 4/11/2005 (Judiciary)
S. 768, Schumer, Comprehensive Identity Theft Prevention Act, 4/12/2005
(Commerce)
S. 1004, Allen, Enhanced Consumer Protection Against Spyware, 5/11/2005
(Commerce)
S. 1216, Corzine, Financial Privacy Breach Notification Act of 2005, 6/9/2005
(Banking)
S. 1332, Specter, Personal Data Privacy and Security Act of 2005, 6/29/2005 (no
referral listed)
S. 1408, Smith, Identity Theft Prevention Act, 7/14/2005 (Commerce)
Internet Privacy
General
H.R. 84, Frelinghuysen, Online Privacy Protection Act, 1/4/05 (Energy &
Commerce)
H.R. 1263, Stearns, Consumer Privacy Protection Act, 3/10/05 (Energy &
Commerce, International Relations)
H.R. 1310, Maloney, Protection of Civil Liberties Act, 3/15/05 (Government
Reform, Judiciary, Homeland Security, Intelligence)
H.R. 1526, Otter, Security and Freedom Ensured Act (SAFE Act), 4/6/05 (Judiciary,
Intelligence)
H.R. 3199, Sensenbrenner, USA PATRIOT and Terrorism Prevention
Reauthorization Act, 7/11/05 (Judiciary, Intelligence)
H.R. 3503, Cannon, E-mail Privacy Act, 7/28/05 (Judiciary)
H.R. 4506, Conyers, to extend certain provisions of the USA PATRIOT Act for three
months, 12/13/05 (Judiciary)
S. 737, Craig, Security and Freedom Ensured Act (SAFE Act), 4/6/05 (Judiciary)
S. 936, Leahy, E-Mail Privacy Act, 4/28/05 (Judiciary)
S. 1389, Specter, USA PATRIOT Improvement and Reauthorization Act, 7/13/05
(Judiciary)
S. 2082, Sununu, to extend certain provisions of the USA PATRIOT Act for three
months, 12/12/05 (Judiciary)
Spyware
H.R. 29, Bono, Spy Act, 1/4/05 (Energy & Commerce)
H.R. 744, Goodlatte, I-SPY Act, 2/10/05 (Judiciary)
S. 687, Burns, SPY BLOCK Act, 3/20/05 (Commerce)
S. 1004, Allen, Enhanced Consumer Protection Against Spyware, 5/11/05
(Commerce)

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CRS-31
S. 1608, Smith, Undertaking Spam, Spyware, and Fraud Enforcement With
Enforcers Beyond Borders (U.S. SAFE WEB) Act, 7/29/05 (Commerce)
Identity Theft and Related Topics
H.R. 82, Frelinghuysen, Social Security On-line Privacy Protection Act, 1/4/05
(Energy & Commerce)
H.R. 92, Frelinghuysen, to permit people to use an identification number other than
a Social Security number for Medicare to deter identity theft, 1/4/05 (Ways &
Means)
H.R. 220, Paul, Identity Theft Prevention Act, 1/4/05 (Ways & Means, Government
Reform)
H.R. 1069, Bean, Notification of Risk to Personal Data Act, 3/3/05 (Energy &
Commerce, Gov Reform, Financial Services)
H.R. 1078, Markey, Social Security Number Protection Act, 3/3/05 (Energy &
Commerce, Ways & Means)
H.R. 1080, Markey, Information Protection and Security Act, 3/3/05 (Energy &
Commerce)
H.R. 1099, Hooley, Anti-Phishing Act, 3/3/05 (Judiciary)
H.R. 1653, Markey, SAFE-ID Act [Safeguarding Americans from Exporting
Identification Data], 4/14/05 (Energy & Commerce)
H.R. 1745, Shaw, Social Security Number and Identity Theft Prevention Act, 4/20/05
(Ways & Means, Financial Services, Energy & Commerce)
H.R. 3140, Bean, Consumer Data Security and Notification Act, 6/30/05 (Financial
Services)
H.R. 3374, LaTourette, Consumer Notification and Financial Data Protection Act,
7/21/05 (Financial Services)
H.R. 3375, Pryce, Financial Data Security Act, 7/21/05 (Financial Services)
H.R. 3501, J. Carson, Consumer Access Rights Defense Act, 7/29/05 (Energy &
Commerce, Government Reform, Financial Services)
H.R. 3804, McCarthy, Identity Theft Relief Act, 9/15/05 (Ways & Means)
H.R. 3997, LaTourette, Financial Data Protection Act, 10/6/05 (Financial Services)
H.R. 4127, Stearns, Data Accountability and Trust Act (DATA), 10/25/05 (Energy
& Commerce)
H.R. 4244, Hooley, Regional ID Theft Task Force Act, 11/7/05 (Judiciary)
S. 29, Feinstein, Social Security Misuse Prevention Act, 1/24/05 (Judiciary)
S. 115, Feinstein, Notification of Risk to Personal Data Act, 1/24/05 (Judiciary)
S. 116, Feinstein, Privacy Act of 2005, 1/24/05 (Judiciary)
S. 472, Leahy, Anti-Phishing Act, 2/28/05 (Judiciary)
S. 500, Bill Nelson, Information Protection and Security Act, 3/3/05 (Commerce)
S. 751, Feinstein, Notification of Risk to Personal Data Act, 4/11/05 (Commerce)
S. 768, Schumer, Comprehensive Identity Theft Prevention Act, 4/12/05 (Commerce)
S. 810, Clinton, SAFE-ID Act [Safeguarding Americans from Exporting
Identification Data], 4/14/05 (Judiciary)
S. 1326, Sessions, Notification of Risk to Personal Data Act, 6/28/05 (Judiciary)
S. 1332, Specter/Leahy, Personal Data Privacy and Security Act, 6/29/05 (Judiciary)
S. 1336, Pryor, Consumer Identity Protection and Security Act, 6/29/05 (Commerce)
S. 1408, Smith, Identity Theft Protection Act, 7/14/05 (Commerce)
S. 1461, Shelby, Consumer Identity Protection and Security Act, 7/21/05 (Banking)

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S. 1594, Corzine, Financial Privacy Protection Act, 7/29/05 (Banking)
S. 1789, Specter, Personal Data Privacy and Security Act, 9/29/05 (Judiciary)
Protecting Children
H.R. 2318, Mark Green, Protection Against Sexual Exploitation of Children Act,
5/12/05 (Judiciary)
H.R. 3479, Matheson, Internet Safety and Child Protection Act, 7/27/05 (Energy &
Commerce, Ways & Means, Judiciary, Education & Workforce, Financial
Services)
H.R. 3132, Children’s Safety Act of 2005, Sensenbrenner, 6/30/2005 (Judiciary)
S. 956, Grassley, Jetseta Gage Prevention and Deterrence of Crimes Against
Children Act, 4/28/05 (Judiciary)
S. 1507, Lincoln, Internet Safety and Child Protection Act, 7/27/05 (Finance)
S. 1633, Talent, Stop Online Predators (STOP) Act, 9/8/05 (Judiciary)
Internet Domain Names
H.R. 2318, Mark Green, Protection Against Sexual Exploitation of Children Act,
5/12/05 (Judiciary)
H.R. 3132, Children’s Safety Act of 2005, Sensenbrenner, 6/30/2005 (Judiciary)
H.Con.Res 268, Doolittle, Expressing the sense of the Congress regarding oversight
of the Internet Corporation of Assigned Names and Numbers, 10/18/05 (Energy
& Commerce)
S. 956, Grassley, Jetseta Gage Prevention and Deterrence of Crimes Against
Children Act, 4/28/05 (Judiciary)
S. 1086, Hatch, To improve the national program to register and monitor individuals
who commit crimes against children or sex offenses, 5/19/2005 (Judiciary)
S.Con.Res 64, Burns, Expressing the sense of the Congress regarding oversight of
the Internet Corporation of Assigned Names and Numbers, 11/9/05 (Commerce)
S.Res. 317, Burns, Expressing the sense of the Senate regarding oversight of the
Internet Corporation of Assigned Names and Numbers, 11/16/05 (Commerce)
S.Res. 323, Coleman, Expressing the sense of the Senate that the United Nations and
other international organizations should not be allowed to exercise control over
the Internet, 11/18/2005 (Foreign Relations)
Government IT
FCC
H.R. 214, Stearns, Advanced Internet Communications Services Act, 1/4/2005
(Energy & Commerce)
H.R. 2982, Wynn, FCC Reorganization Act, 6/17/2005 (Energy & Commerce)

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CRS-33
Information Technology R&D
H.R. 6, Barton, Energy Policy Act, 4/18/2005 (Energy& Commerce; Education & the
Workforce; Financial Services; Agriculture; Resources; Science; Ways &
Means; Transportation & Infrastructure)
H.R. 28, Biggert, High-Performance Computing Revitalization Act, 1/4/2005,
(Science)
S. 10, Domenici, Energy Policy Act, 6/9/2005 (Energy & Natural Resources)

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CRS-34
Appendix B: List of Acronyms
Alphabetical Listing
B2B
Business-to-Business
B2G
Business-to-Government
BOC
Bell Operating Company
CIO
Chief Information Officer
DMA
Direct Marketing Association
DNS
Domain Name System
DOC
Department of Commerce
DSL
Digital Subscriber Line
FBI
Federal Bureau of Investigation
FCC
Federal Communications Commission
FTC
Federal Trade Commission
G2B
Government-to-Business
G2C
Government-to-Citizen
G2G
Government-to-Government
GAO
Government Accountability Office (formerly General
Accounting Office)
GSA
General Services Administration
gTLD
generic Top Level Domain
ICANN
Internet Corporation for Assigned Names and Numbers
ILEC
Incumbent Local Exchange Carrier
IP
Internet Protocol
ISP
Internet Service Provider
IT
Information Technology
LATA
Local Access and Transport Area
LEC
Local Exchange Carrier
MOU
Memorandum of Understanding
NGI
Next Generation Internet

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CRS-35
NIST
National Institute for Standards and Technology (part of
Department of Commerce)
NSI
Network Solutions, Inc,
NSF
National Science Foundation
NTIA
National Telecommunications and Information
Administration (part of Department of Commerce)
OMB
Office of Management and Budget
OPA
Online Privacy Alliance
OSS
Open Source Software
SSN
Social Security Number
TLD
Top Level Domain
UCE
Unsolicited Commercial E-mail
WIPO
World Intellectual Property Organization
Categorical Listing
U.S. Government Entities
DOC
Department of Commerce
FBI
Federal Bureau of Investigation
FCC
Federal Communications Commission
FTC
Federal Trade Commission
GAO
Government Accountability Office (formerly General
Accounting Office)
GSA
General Services Administration
NIST
National Institute of Standards and Technology (part of
Department of Commerce)
NSF
National Science Foundation
NTIA
National Telecommunications and Information
Administration (part of Department of Commerce)
OMB
Office of Management and Budget
Private Sector Entities
BOC
Bell Operating Company

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CRS-36
DMA
Direct Marketing Association
ICANN
Internet Corporation for Assigned Names and Numbers
ILEC
Incumbent Local Exchange Carrier
ISP
Internet Service Provider
LEC
Local Exchange Carrier
NSI
Network Solutions, Inc.
General Types of Internet Services
B2B
Business-to-Business
B2G
Business-to-Government
G2B
Government-to-Business
G2C
Government-to-Citizen
G2G
Government-to-Government
Internet and Telecommunications Terminology
CIO
Chief Information Officer
DNS
Domain Name System
DSL
Digital Subscriber Line
gTLD
generic Top Level Domain
IP
Internet Protocol
IT
Information Technology
LATA
Local Access and Transport Area
NGI
Next Generation Internet
OSS
Open Source Software
TLD
Top Level Domain
UCE
Unsolicited Commercial E-mail
Other
MOU
Memorandum of Understanding
SSN
Social Security Number
WIPO
World Intellectual Property Organization

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CRS-37
Appendix C: Legislation Passed
by the 105th-108th Congresses
During the years that this report has been published (since the 105th Congress),
various topics have been covered based on congressional interest and action. Some
of those issues continue to be of interest to Congress and are discussed in this edition
of the report. Others, however, appear to be resolved from a congressional point of
view, and therefore are not discussed in the main text. Nevertheless, it appears useful
to retain information about legislation that passed on those subjects. Following is
such a summary of all laws that have been tracked in this report over the years, by
topic. Tables showing which laws were passed in each Congress appear at the end of
this section.
Broadband Internet Access
The Farm Security and Rural Investment Act of 2002 (P.L. 107-171, Section
6103) authorizes the Secretary of Agriculture to make loans and loan guarantees to
eligible entities for facilities and equipment providing broadband service in rural
communities. The National Science Foundation Authorization Act of 2002 (P.L.
107-368, Section 18(d)) directs the National Science Foundation to conduct a study
of broadband network access for schools and libraries.
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.
Computer Security
The Computer Crime Enforcement Act (P.L. 106-572) establishes Department
of Justice grants to state and local authorities to help them investigate and prosecute
computer crimes. The law authorizes the expenditure of $25 million for the grant
program through FY2004. The FY2001 Department of Defense Authorization Act
(P.L. 106-398) includes language that originated in S. 1993 to modify the Paperwork
Reduction Act and other relevant statutes concerning computer security of government
systems, codifying agency responsibilities regarding computer security.
Internet Privacy (Including Identity Theft)
The Identity Theft and Assumption Deterrence Act (P.L. 105-318) sets
penalties for persons who knowingly, and with the intent to commit unlawful
activities, possess, transfer, or use one or more means of identification not legally
issued for use to that person.
Language in the FY2001 Transportation Appropriations Act (P.L. 106-246)
and the FY2001 Treasury-General Government Appropriations Act (included as
part of the FY2001 Consolidated Appropriations Act, P.L. 106-554) addresses website
information collection practices by departments and agencies. Section 501 of the
FY2001 Transportation Appropriations Act prohibits funds in the FY2001 Treasury-

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General Government Appropriations Act from being used by any federal agency to
collect, review, or create aggregate lists that include personally identifiable
information (PII) about an individual’s access to or use of a federal website, or enter
into agreements with third parties to do so, with exceptions. Section 646 of the
FY2001 Treasury-General Government Appropriations Act requires Inspectors
General of agencies or departments covered in that act to report to Congress within
60 days of enactment on activities by those agencies or departments relating to the
collection of PII about individuals who access any Internet site of that department or
agency, or entering into agreements with third parties to obtain PII about use of
government or non-government websites.
The Internet False Identification Prevention Act (P.L. 106-578) updates
existing law against selling or distributing false identification documents to include
those sold or distributed through computer files, templates, and disks. It also requires
the Attorney General and Secretary of the Treasury to create a coordinating committee
to ensure that the creation and distribution of false IDs is vigorously investigated and
prosecuted.
The USA PATRIOT Act (P.L. 107-56), passed in the wake of the September
11, 2001 terrorist attacks, inter alia expands law enforcement’s authority to monitor
Internet activities. The Cyber Security Enhancement Act, included as section 225
of the Homeland Security Act (P.L. 107-296), amends the USA PATRIOT Act to
further loosen restrictions on Internet Service Providers (ISPs) as to when, and to
whom, they can voluntarily release information about subscribers.
Prior to the terrorist attacks, concern had focused on the opposite issue —
whether law enforcement officials might be overstepping their authority when using
a software program named Carnivore (later renamed DCS 1000) to monitor Internet
activities. Although the USA PATRIOT Act expands law enforcement’s authority to
monitor Internet activities, Congress also passed a provision in the 21st Century
Department of Justice Authorization Act (P.L. 107-273, section 305) requiring the
Justice Department to notify Congress about its use of Carnivore or similar systems.
The E-Government Act (P.L. 107-347), inter alia, sets requirements on
government agencies as to how they assure the privacy of personal information in
government information systems and establishes guidelines for privacy policies for
federal websites.
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 (Section 1061), 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.

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CRS-39
Spam: Unsolicited Commercial E-Mail
The CAN-SPAM Act, P.L. 108-187, sets civil or criminal penalties if senders
of commercial e-mail do not provide a legitimate opportunity for recipients to “opt-
out” of receiving further commercial e-mail from the sender, if they use deceptive
subject headings, if they use fraudulent information in the header of the message, if
they “harvest” e-mail addresses from the Internet or use “dictionary attacks” to create
e-mail addresses, if they access someone else’s computer without authorization and
use it to send multiple commercial e-mail messages, or engage in certain other
activities connected with sending “spam.” Spam is variously defined by participants
in the debate as unsolicited commercial e-mail, unwanted commercial e-mail, or
fraudulent commercial e-mail. The CAN-SPAM Act preempts state laws that
specifically regulate electronic mail, but not other state laws, such as trespass,
contract, or tort law, or other state laws to the extent they relate to fraud or computer
crime. It authorizes, but does not require, the Federal Trade Commission to establish
a centralized “do not e-mail” list similar to the National Do Not Call list for
telemarketing. The FTC has concluded that a do not e-mail list is not feasible at this
time.
Internet Domain Names
The Next Generation Internet Research Act (P.L. 105-305) directs the
National Academy of Sciences to conduct a study of the short- and long-term effects
on trademark rights of adding new generation top-level domains and related dispute
resolution procedures.
The Anticybersquatting Consumer Protection Act (part of the FY2000
Consolidated Appropriations Act, P.L. 106-113) gives courts the authority to order
the forfeiture, cancellation, and/or transfer of domain names registered in “bad faith”
that are identical or similar to trademarks. The act provides for statutory civil
damages of at least $1,000, but not more than $100,000 per domain name identifier.
The Dot Kids Implementation and Efficiency Act of 2002 (P.L. 107-317)
directs the National Telecommunications and Information Administration of the
Department of Commerce to require the .us registry operator to establish, operate, and
maintain a second level domain that is restricted to material suitable for minors.
The PROTECT Act (P.L. 108-21) contains a provision (Sec. 108, Misleading
Domain Names on the Internet) that makes it a punishable crime to knowingly use a
misleading domain name with the intent to deceive a person into viewing obscenity
on the Internet. Increased penalties are provided for deceiving minors into viewing
harmful material. (CRS Report RS21328, Internet: Status Report on Legislative
Attempts to Protect Children from Unsuitable Material on the Web, by Marcia S.
Smith, provides further information on this and other legislative efforts to protect
children from unsuitable material on the Internet.)
The Fraudulent Online Identity Sanctions Act (Title II of the Intellectual
Property Protection and Courts Amendments Act of 2004, P.L. 108-482) increases
criminal penalties for those who submit false contact information when registering a

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CRS-40
domain name that is subsequently used to commit a crime or engage in copyright or
trademark infringement.
Protecting Children from Unsuitable Material
and Predators on the Internet
The Child Online Protection Act, Title XIV of Division C of the FY1999
Omnibus Appropriations Act, P.L. 105-277), made it a crime to send material over
the Web that is “harmful to minors” to children. Similar language was also included
in the Internet Tax Freedom Act (Title XI of Division C of the same act). Called
“CDA II” by some in reference to the Communications Decency Act that passed
Congress in 1996, but was overturned by the Supreme Court, the bill restricted access
to commercial material that is “harmful to minors” distributed on the World Wide
Web to those 17 and older. This act also was challenged in the courts. See CRS
Report 98-670, Obscenity, Child Pornography, and Indecency: Recent Developments
and Pending Issues, by Henry Cohen, for a summary of court actions.
The Children’s Online Privacy Protection Act (Title XIII of Division C of the
FY1999 Omnibus Appropriations Act, P.L. 105-277), requires verifiable parental
consent for the collection, use, or dissemination of personally identifiable information
from children under 13.
The Protection of Children from Sexual Predators Act (P.L. 105-314) is a
broad law addressing concerns about sexual predators. Among its provisions are
increased penalties for anyone who uses a computer to persuade, entice, coerce, or
facilitate the transport of a child to engage in prohibited sexual activity, a requirement
that Internet service providers report to law enforcement if they become aware of child
pornography activities, a requirement that federal prisoners using the Internet be
supervised, and a requirement for a study by the National Academy of Sciences on
how to reduce the availability to children of pornography on the Internet.
The Children’s Internet Protection Act (Title XVII of the FY2001 Labor-HHS
Appropriations Act, included in the FY2001 Consolidated Appropriations Act, P.L.
106-554) requires most schools and libraries that receive federal funding through Title
III of the Elementary and Secondary Education Act, the Museum and Library Services
Act, or “E-rate” subsidies from the universal service fund, to use technology
protection measures (filtering software or other technologies) to block certain websites
when computers are being used by minors, and in some cases, by adults. When
minors are using the computers, the technology protection measure must block access
to visual depictions that are obscene, child pornography, or harmful to minors. When
others are using the computers, the technology must block visual depictions that are
obscene or are child pornography. The technology protection measure may be
disabled by authorized persons to enable access for bona fide research or other lawful
purposes.
E-Government
The E-Government Act of 2002 (P.L. 107-347) amends Title 44 U.S.C. by
adding Chapter 36 — Management and Promotion of Electronic Government

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CRS-41
Services, and Chapter 37 — Information Technology Management Program, which
includes a variety of provisions related to information technology management and
the provision of e-government services. Among its provisions, the law establishes an
Office of Electronic Government in the Office of Management and Budget to be
headed by an Administrator appointed by the President. It also authorizes $345
million through FY2006 for an E-Government Fund to support initiatives, including
interagency and intergovernmental projects, that involve the “development and
implementation of innovative uses of the Internet or other electronic methods, to
conduct activities electronically.” Additionally, the law includes language that re-
authorizes and amends the Government Information Security Reform Act (GISRA),
establishes an information technology worker exchange program between the federal
government and the private sector, promotes the use of Share-In-Savings procurement
contracts, and establishes coordination and oversight policies for the protection of
confidential information and statistical efficiency (the Confidential Information
Protection and Statistical Efficiency Act of 2002).
Intellectual Property
Congress passed the Digital Millennium Copyright Act (P.L. 105-304)
implementing the World Intellectual Property Organization (WIPO) treaties regarding
protection of copyright on the Internet. The law also limits copyright infringement
liability for online service providers that serve only as conduits of information.
Provisions relating to database protection that were included by the House were not
included in the enacted version and are being debated anew in the 106th Congress.
Since database protection per se is not an Internet issue, it is not included in this report
(see CRS Report 98-902, Intellectual Property Protection for Noncreative Databases,
by Dorothy Schroder and Robin Jeweler.).
Electronic and Digital Signatures
The Government Paperwork Elimination Act (Title XVII of Division C of
the Omnibus Appropriations Act, P.L. 105-277)directs the Office of Management and
Budget to develop procedures for the use and acceptance of “electronic” signatures
(of which digital signatures are one type) by executive branch agencies.
The Millennium Digital Commerce Act (P.L. 106-229) regulates Internet
electronic commerce by permitting and encouraging its continued expansion through
the operation of free market forces, including the legal recognition of electronic
signatures and electronic records.
Electronic Commerce
The Internet Tax Nondiscrimination Act (P.L. 107-75) extended the Internet
tax moratorium through November 1, 2003. Facing expiration of that moratorium,
Congress passed the Internet Tax Non-Discrimination Act of 2003 (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

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CRS-42
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.

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CRS-43
Table 1. Summary of Legislation Passed by the 105th Congress
Title
Public law number
FY1999 Omnibus Consolidated and Emergency
P.L. 105-277
Supplemental Appropriations Act
Internet Tax Freedom Act
Division C, Title XI
Children’s Online Privacy Protection Act
Division C, Title XIII
Child Online Protection Act
Division C, Title XIV
Government Paperwork Elimination Act
Division C, Title XVII
Protection of Children from Sexual Predators Act
P.L. 105-314
Identity Theft and Assumption Deterrence Act
P.L. 105-318
Digital Millennium Copyright Act
P.L. 105-304
Next Generation Internet Research Act
P.L. 105-305
Table 2. Summary of Legislation Passed by the 106th Congress
Title
Public law number
Millennium Digital Commerce Act
P.L. 106-229
Computer Crime Enforcement Act
P.L. 106-572
FY2001 Transportation Appropriations Act, section 501
P.L. 106-246
FY2001 Treasury-General Government Appropriations Act,
P.L. 106-554
section 646 (enacted by reference in the FY2001
Consolidated Appropriations Act)
Internet False Identification Prevention Act
P.L. 106-578
Children’s Internet Protection Act (Title XVII of the FY2001
P.L. 106-554
Labor-HHS Appropriations Act, enacted by reference in the
FY2001 Consolidated Appropriations Act)
Anticybersquatting Consumer Protection Act (enacted by
P.L. 106-113
reference in the FY2000 Consolidated Appropriations Act)

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CRS-44
Table 3. Summary of Legislation Passed by the 107th Congress
Title
Public law number
Uniting and Strengthening America by Providing
P.L. 107-56
Appropriate Tools to Intercept and Obstruct Terrorism
(USA PATRIOT) Act
Internet Tax Nondiscrimination Act
P.L. 107-75
Farm Security and Rural Investment Act (Section 6103)
P.L. 107-171
Cyber Security Enhancement Act (Section 225 of the
P.L. 107-296
Homeland Security Act)
21st Century Department of Justice Authorization Act
P.L. 107-297
(Section 305)
Dot Kids Implementation and Efficiency Act
P.L. 107-317
E-Government Act
P.L. 107-347
National Science Foundation Authorization Act of 2002
P.L. 107-368
(Section 18d)
Table 4. Summary of Legislation Passed by the 108th Congress
Title
Public law number
PROTECT Act (Section 108, Misleading Domain
P.L. 108-21
Names on the Internet)
CAN-SPAM Act
P.L. 108-187
Internet Tax Non-Discrimination Act of 2003
P.L. 108-435
Intelligence Reform and Terrorism Protection Act
P.L. 108-458
(Section 1061)
Fraudulent Online Identity Sanctions Act (Title II of the
P.L. 108-482
Intellectual Property Protection and Courts Amendments
Act of 2004)
Commercial Spectrum Enhancement Act (Title II of the
P.L. 108-494
ENHANCE 911 Act)

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CRS-45
Appendix D: Related CRS Reports
Broadband Internet Access
CRS Issue Brief IB10045, Broadband Internet Access: Background and Issues, by
Angele A. Gilroy and Lennard G. Kruger.
CRS Report RL30719, Broadband Internet Access and the Digital Divide: Federal
Assistance Programs, by Lennard G. Kruger.
CRS Report RL32421, Broadband over Powerlines: Regulatory and Policy Issues,
by Patricia Moloney Figliola.
CRS Report RL32949, Communications Act Revisions: Selected Issues for
Consideration, by Angele A. Gilroy.
CRS Report RL32985, Defining Cable Broadband Internet Access Service:
Background and Analysis of the Supreme Court’s Brand X Decision, by Angie
A. Welborn and Charles B. Goldfarb.
CRS Report RL30018, Long Distance Telephony: Bell Operating Company Entry
Into the Long Distance Market, by James R. Riehl.
CRS Issue Brief IB98040, Telecommunications Discounts for Schools and Libraries:
the “E-Rate” Program and Controversies, by Angele Gilroy.
CRS Report RS20993, Wireless Technology and Spectrum Demand: Third
Generation (3G) and Beyond, by Linda K. Moore.
Computer and Internet Security
CRS Report RL32357, Computer Security: A Summary of Selected Federal Laws,
Executive Orders, and Presidential Directives, by John D. Moteff.
CRS Report RL32777, Creating a National Framework for Cybersecurity: An
Analysis of Issues and Options, by Eric A. Fischer.
CRS Report RL30153, Critical Infrastructures: Background, Policy, and
Implementation, by John D. Moteff.
CRS Report RL32331, The Economic Impact of Cyber-Attacks, by Brian Cashell,
William D. Jackson, Mark Jickling, and Baird Webel.
CRS Report RL31289, The Internet and the USA PATRIOT Act: Potential
Implications for Electronic Privacy, Security, Commerce, and Government, by
Marcia S. Smith, Jeffrey W. Seifert, Glenn J. McLoughlin, and John Dimitri
Moteff.

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CRS-46
Internet Privacy
CRS Report RL31289, The Internet and the USA PATRIOT Act: Potential
Implications for Electronic Privacy, Security, Commerce, and Government, by
Marcia S. Smith, Jeffrey W. Seifert, Glenn J. McLoughlin, and John Dimitri
Moteff.
CRS Report RL31408, Internet Privacy: Overview and Pending Legislation, by
Marcia S. Smith.
CRS Report 98-326, Privacy: An Overview of Federal Statutes Governing
Wiretapping and Electronic Eavesdropping, by Gina Marie Stevens and Charles
Doyle.
CRS Report RS22078, Privacy and Civil Liberties Oversight Board: 109th Congress
Proposed Refinements, by Harold C. Relyea.
CRS Report RS21851, Privacy Protection: Mandating New Arrangements to
Implement and Assess Federal Privacy Policy and Practice, by Harold C.
Relyea.
CRS Report RL32706, Spyware: Background and Policy Issues for Congress, by
Marcia S. Smith.
CRS Report RL31377, The USA PATRIOT Act: A Legal Analysis, by Charles Doyle.
CRS Report RL32186, USA PATRIOT Act Sunset: Provisions that Expire on
December 31, 2005, by Charles Doyle.
Identity Theft
CRS Report RS22082, Identity Theft: The Internet Connection, by Marcia S. Smith.
CRS Report RL32535, Implementation of the Fair and Accurate Credit Transactions
(FACT) Act of 2003, by Angie A. Welborn and Grace Chu.
CRS Report RL31919, Remedies Available to Victims of Identity Theft, by Angie A.
Welborn.
CRS Report RL33199, Personal Data Security Breaches: Context and Incident
Summaries, by Rita A. Tehan.
“Spam”
CRS Report RL31953, “Spam”: An Overview of Issues Concerning Commercial
Electronic Mail, by Marcia S. Smith.
CRS Report RL31488, Regulation of Unsolicited Commercial E-Mail, by Angie A.
Welborn.

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CRS-47
Protecting Children
CRS Report RS21328, Internet: Status of Legislative Attempts to Protect Children
from Unsuitable Material on the Web, by Marcia S. Smith.
CRS Report 98-670, Obscenity, Child Pornography, and Indecency: Recent
Developments and Pending Issues, by Henry Cohen.
Internet Domain Names
CRS Report 97-868, Internet Domain Names: Background and Policy Issues, by
Lennard G. Kruger.
Government Information Technology Management
CRS Report RL31627, Computer Software and Open Source Issues: A Primer, by
Jeffrey W. Seifert.
CRS Report RL31594, Congressional Continuity of Operations (COOP): An
Overview of Concepts and Challenges, by R. Eric Petersen and Jeffrey W.
Seifert.
CRS Report RL31857, Continuity of Operations (COOP) in the Executive Branch:
Background and Issues for Congress, by R. Eric Petersen.
CRS Report RS21140, Emergency Electronic Communications in Congress:
Proposals and Issues, by Jeffrey W. Seifert and R. Eric Petersen.
CRS Report RL30914, Federal Chief Information Officer (CIO): Opportunities and
Challenges, by Jeffrey W. Seifert.
CRS Issue Brief IB10130, The Federal Networking and Information Technology
Research and Development Program: Funding Issues and Activities, by Patricia
Moloney Figliola.
CRS Report RL31103, House of Representatives Information Technology
Management Issues: An Overview of the Effects on Institutional Operations, the
Legislative Process, and Future Planning, by Jeffrey W. Seifert and R. Eric
Petersen.
CRS Report RL32597, Information Sharing for Homeland Security: A Brief
Overview, by Harold C. Relyea and Jeffrey W. Seifert.
CRS Report RL31289, The Internet and the USA PATRIOT Act: Potential
Implications for Electronic Privacy, Security, Commerce, and Government, by
Marcia S. Smith, Jeffrey W. Seifert, Glenn J. McLoughlin, and John Dimitri
Moteff.

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CRS-48
CRS Report RL31057, A Primer on E-Government: Sectors, Stages, Opportunities,
and Challenges of Online Governance, by Jeffrey W. Seifert.
Related Topics
Copyright and “Fair Use”
CRS Report RL31626, Copyright Law: Statutory Royalty Rates for Webcasters, by
Robin Jeweler.
CRS Report RL31827, “Digital Rights” and Fair Use in Copyright Law, by Robin
Jeweler.
CRS Report RL32035, Digital Rights Management Legislation in the 107th and 108th
Congresses, by Robin Jeweler.
CRS Report RS21206, “Fair Use” on the Internet: Copyright’s Reproduction and
Public Display Rights, by Robin Jeweler.
Electronic Commerce
CRS Report RS21596, EU Tax on Digitally Delivered E-Commerce, by Martin A.
Weiss and Nonna A. Noto.
CRS Report RL31929, Internet Taxation: Issues and Legislation, by Steven Maguire
and Nonna A. Noto.
CRS Report RL31289, The Internet and the USA PATRIOT Act: Potential
Implications for Electronic Privacy, Security, Commerce, and Government, by
Marcia S. Smith, Jeffrey W. Seifert, Glenn J. McLoughlin, and John Dimitri
Moteff.
CRS Report RL31252, State and Local Sales and Use Taxes and Internet Commerce,
by Stephen Maguire.
CRS Report RS21537, State Sales Taxation of Internet Transactions, by John Luckey.
Medical Records, Financial, and Other Privacy Issues
CRS Report RL30677, Digital Surveillance: The Communications Assistance for Law
Enforcement Act, by Patricia Moloney Figliola.
CRS Report RS20500, Medical Records Privacy: Questions and Answers on the
December 2000 Federal Regulation, by C. Stephen Redhead.
CRS Report RS20185, Privacy Protection for Customer Financial Information, by M.
Maureen Murphy.

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CRS-49
CRS Report RL31636, Wireless Privacy and Spam: Issues for Congress, by Marcia
S. Smith.
Other Related Topics
CRS Report RL32232, Bundling Residential Telephone, Internet, and Video Services:
Issues for Congress, by Charles B. Goldfarb.
CRS Report RS21647, Facsimile Advertising Rules Under the Telephone Consumer
Protection Act of 1991: Background and Status, by Patricia Moloney Figliola.
CRS Report RL31642, Regulation of the Telemarketing Industry: State and National
Do-Not-Call Registries, by Angie A. Welborn.
CRS Report RL30763, Telemarketing: Dealing with Unwanted Telemarketing Calls,
by James R. Riehl

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