Update for IT Executives

On May 10^th the House of Representatives passed H.R. 3709, legislation that will extend the current moratorium on new Internet taxes by five years. ITAA called on the lawmakers to apply this momentum to other forward looking Internet taxation issues and urged the Senate to follow suit.

"A rush to judgment rarely leads to enlightened policymaking,” said ITAA President Harris Miller. “Today’s vote helps create the breathing room needed to address thorny issues like taxable presence while sustaining the growth and vitality of the Internet. We hope that as Congress creates a coherent national tax policy in this area, lawmakers will adopt a comprehensive approach which addresses tax simplification, while eliminating the long out of date federal telecommunications excise tax as well as taxes on Internet access.”

Miller urged Senate leaders to build on the successful action of the House vote today by not only passing an Internet tax moratorium in the current session but also addressing this fuller set of taxation concerns. ITAA contact: Lori Ulmer.

House and Senate Pass Overtime Amendment

An amendment to the Fair Labor Standards Act that would prevent stock option profits from being included in overtime pay calculations has been passed unanimously in both the House and Senate this spring. ITAA applauded the bipartisan support of the plan, noting that high tech firms see the granting of stock options as a critical element in employee recruitment and retention.

Earlier this year, ITAA criticized a move by the U.S. Department of Labor that would have hobbled the ability of employers to offer non-exempt employees stock options as compensation. In March, an ITAA member company representative testified before a House Subcommittee looking into the overtime issue and called the calculations involved in implementing such an accounting process “cumbersome, costly and frankly, prohibitive.” ITAA contact: David Colton.

2. ITAA, U.S. Patent and Trademark Office Launch Cooperative Effort

ITAA and the U.S. Patent and Trademark Office (USPTO) recently announced a plan to help the government agency keep pace with the rapid changes in software and related technologies. The cooperative arrangement between ITAA and USPTO is part of the customer partnership efforts recently announced by USPTO Director Q. Todd Dickinson as part of the agency's Business Method Patent Action Plan. ITAA is one of several organizations that will be working with the USPTO to create opportunities for government/industry education and improved technical understanding.

“USPTO Director Todd Dickinson has shown tremendous vision and leadership in reaching out in this way,” said ITAA President Harris Miller. “No industry changes faster than information technology. The best way to stay ahead of the curve is to take frequent marketplace readings, to share plans and ideas with industry, and to acquire constant feedback. The cooperative agreement being announced today will help assure the integrity of the patent process for software and Internet business methods well into the future.”

Starting with a series of roundtables and regular meetings between ITAA members and USPTO executives, the agreement may be expanded to include examiner training in software, Internet and business method areas; examiner site visits to software publisher facilities; and an industry based resource to help examiners answer questions about prior art practices and systems. ITAA contact: Marc Pearl.

3. Capitol Hill Hearings Highlight IT Issues

ITAA President Harris N. Miller recently testified at two hearings before Congress on issues important to association members:

Internet Access Charges

Appearing before the House Commerce Committee’s Subcommittee on Telecommunications, Trade and Consumer Protection, ITAA President Harris Miller said a pair of bills to head off access charges for Internet connections will save hundreds of dollars a year for Internet users. H.R. 1291 and H.R. 4202 would prevent phone companies from applying access charges to a consumer’s utilization of the Internet. Internet access charge proposals would raise the costs of Internet use, slow adoption, contribute to a digital divide in society and unfairly discriminate against information service providers.

“An access charge of even 2 or 3 cents per minute would add $20 to $30 per month to the monthly costs of typical Internet consumers,” Miller said.

Miller said that Internet access charges proposals are difficult to kill but added, “ITAA and our member companies hope that the conclusions drawn from this hearing and the proposed bills in question will be the end of Internet access charge proposals…the useless and regressive third rail of Internet policy.”

ITAA and the Commercial Internet exchange (CIX) also sent a letter to the House Commerce Committee on the bills. ITAA contact: Mark Uncapher.

“Love Bug” Computer Virus

Testifying before the House Subcommittee on Technology on the “Love Bug” computer virus which swept computer systems worldwide last week, Miller told the House Subcommittee that corporations are investigating the motivations of hackers and finding ways to profile hacker behavior in an effort to avoid hiring tech troublemakers. “Whether the motivation is curiosity, ego, competition with fellow hackers, control, “hacktivism,” revenge or greed, there is a subculture out there that is actively plotting its next move,” Miller told the Subcommittee. “Love Bug” can be seen as an evolutionary link in the hacking chain.

“Solutions require responsible engagement across the Internet community. Love Bug was just one more wake up call that corporations, governments, educational institutions and individuals must collaborate to get out in front of the next intrusion, virus or threat,” Miller said, recommending the following steps for slowing the proliferation of destructive viruses like Love Bug:

· Individuals and corporations must avoid being targets by educating employees, suppliers and vendors, and activating proper security technology;

· Law enforcement and industry must work together to overcome barriers to information sharing that is necessary to catch cyber criminals;

· Global awareness and cooperation is key - threats know no boundaries; and

· Teach young people cyber ethics - most kids have a higher level of cyber knowledge than their parents.

Miller described ITAA’s effort s on these fronts which include hosting a Global Security Summit and a conference on teaching cyber ethics both in October; a CyberCitizen Campaign targeting young users in collaboration with the U.S. Department of Justice, and the development of an IT industry mechanism for information sharing. ITAA contact: Douglas Sabo.

4. Global InfoSec Summit Set for October

ITAA and the World Information Technology and Services Alliance (WITSA) will hold the first Global InfoSec Summit bringing together 300-400 senior industry and government representatives on October 16 and 17, to create a global industry/government partnership to address InfoSec issues, opportunities and policy.

A limited number of sponsorship opportunities are available for the event. Sponsors will enhance their international prominence as InfoSec leaders, help shape the format and content of the event, and gain visibility through conference materials. For more information about sponsorships, see the "Sponsorship Opportunities" page on the Summit's web site: http://www.itaa.org/infosec/summitsp.htm.

A "Call for Papers" will be issued after the Summit's Conference Committee finalizes the agenda for the event. ITAA Contact: Douglas Sabo.

5. Cybercitizen Information Security Resource Directory to Issue Second Edition: Listing Free to ITAA Members

A second edition of the Cybercitizen Information Security Resource Directory, which will contain listings of assurance/security experts and company advertisements, will publish in May. Approximately 15,000 copies of the Directory will be distributed to: the United States Department of Justice for distribution to state and local law enforcement facilities; attendees at all ITAA events and conferences throughout the year including the Global InfoSec Summit and E-Commerce Conference; international members of WITSA; and various vertical associations (retail, finance, government, health). The Directory will also be posted on the ITAA InfoSec web site, which currently averages 60,000 visitors/year. See the current edition at: http://www.itaa.org/infosec/vendor.htm. Directory listing is free to all ITAA members. Limited advertising opportunities are available on a first come, first served basis. Advertisement placement reservations deadline is May 15, 2000. ITAA contact: Kimberley Moorehead.

6. World Congress on IT to Focus on IT for a Better World

The 2000 World Congress in Taipei is approaching on June 11-14. Themed “IT for a Better World”, the event will bring together at least 1500 industry leaders and feature Bill Gates, Governor Jim Gilmore, Carly Fiorina and John Chambers as keynote speakers.

The World Congress on Information Technology (WCIT) is WITSA’s trade-mark policy event. Following a tradition that goes back more than twenty years, including previous meeting locations such as Barcelona, Copenhagen, Tokyo and Paris, the 1998 event -which took place at George Mason University in Fairfax County, Virginia on June 21-24, 1998- was the most successful World Congress ever. 1,900 senior executives and government officials from 93 countries attended the event, which included 63 speakers and 239 media representatives covering the World Congress. Participants included world leaders such as Margaret Thatcher and Mikhail Gorbachev as well as visionaries in the IT sector such as Lawrence J. Ellison, Chairman/CEO of Oracle Corporation and James L. Barksdale, formerly President/CEO of Netscape Communications Corporation.

More information can be found on their web site at http://www.worldcongress2000.org/. Following WCIT2000 in Taipei, the Australian Information Industry Association (AIIA) will host the World Congress in Adelaide in February 2002. WITSA Contact: Anders Halvorsen.

7. Regional Meetings Focus on Application Service Providers (ASP) - The New Business Model

ITAA has announced a series of regional educational and networking opportunities focusing on the rapidly growing Application Service Provider (ASP) industry. These events will help CEOs, COOs, CIOs, and others in and out of the IT industry discover the drivers behind this market, who are the leaders, and how they can "play to win" in the new arena. According to IDC, ASP spending will grow to $7.8 billion by 2004. This surge in spending translates to a 92% compound annual growth rate from 1999 to 2004.

The ASP Industry provides some of the most cutting-edge software and services available via the Internet. As more companies take advantage of this unique delivery system for software and services packaging, ASPs will become an important force in the IT industry.

ITAA's Regional ASP Meetings are available to a limited number of participants on a "first-come, first served" basis. By offering these low-cost, one-day meetings on a regional level, ITAA offers many of its member and non-member companies the opportunity to network with other busy officials that are unable to attend national conferences typically extending over several days.

Registration fees for each meeting are $100/person for ITAA Member and host CRITA Member Companies, and $200/person for Non-member Companies. ITAA contact: Nathan Ridnouer

8. ITAA Files Comments with FCC

ITAA last week filed with the FCC opposing Bell Atlantic and GTE’s proposal to use "contingent option arrangement" for the disposition of GTE’s inter-LATA Internet backbone operations (Genuity). Bell Atlantic is currently attempting to merge with GTE, but is prohibited from being in the Internet "backbone" business until after it meets the market opening requirements of the Telecommunications Act of 1996, allowing it to go into the long distance business. ITAA said that the proposal was nothing more than an elaborate artifice to evade compliance with the Communications Act. ITAA said that Bell Atlantic and GTE have set the "bar shamelessly low" for allowing the merged company to regain control of GTE’s Internet backbone operations. ITAA contact: Mark Uncapher.

9. “Broadband Relief” Measures Opposed

ITAA sent a letter to members of the House Judiciary Committee opposing H.R. 1685 and 1686, sponsored by Representatives Robert Goodlatte and Rick Boucher. ITAA said "We ask that you to oppose the so-called “broadband relief” measures contained in H.R. 1685 and 1686 and to support the growth and innovation that is just starting to benefit every American. These bills would harm telecommunications competition by releasing the incumbent telephone companies from the market opening requirements of the Telecommunications Act of 1996 under the guise of “broadband relief.”

ITAA told the Committee it rejects the claims made by some large incumbent telephone carriers that the pro-competitive regulatory requirements contained in the Telecommunications Act have deterred them from deploying broadband services necessary to provide high-speed access to the Internet and other information services. The simple reason for the incumbent local carriers' failure to deploy advanced telecommunications services is that, in the absence of competition, they lack the incentive to do so. The best means to promote the deployment of advanced services, therefore, is to promote market based competition in the local market.

The Goodlatte-Boucher legislation would allow the Bells into interLATA markets before they opened their local bottlenecks to competitors. The consequence would be to strengthen their local chokeholds and expand their monopolies into the Internet market. Contrary to its stated intention, the legislation would hurt competition by destroying the incentives to open up the “last mile” bottleneck that were built into the 1996 Act and reduce incentives for investment in competitive providers. ITAA contact: Mark Uncapher.

10. National Cyber Ethics Conference at Marymount University To Address Teaching Responsible Use of Technology

A national conference on Cyber Ethics: Teaching Responsible Use of Technology will be held October 6-8, 2000, at Marymount University in Arlington, VA. Marymount will organize the conference in cooperation with the Cybercitizen Partnership Project, a joint venture of ITAA and the United States Department of Justice.

The Cyber Ethics conference will bring together educators, as well as key government and business leaders, to address PK-16 curriculum development that will enable young people to become good cybercitizens.

A comprehensive cyber ethics curriculum for pre-kindergarten through college would enable children to grow up learning how to be responsible cybercitizens. The October conference at Marymount University will initiate the process for developing the appropriate curriculum for each age group. Marymount’s Center for Ethical Concerns and School of Education and Human Services are working with the Cybercitizen Partnership Project on this event.

U.S. Attorney General Janet Reno has been invited to give the opening keynote address. Other invited participants include the Honorable Donald W. Upson, Virginia Secretary of Technology; the Honorable James P. Moran, U.S. Representative, VA; Dr. Jeffrey Hunker, director of Infrastructure Protection, National Security Council; Mr. John McClurg, executive security director, Lucent Technologies; and Mr. Tom Longstaff, manager of Research and Development, CERT. ITAA Contact: Pete Smith

11. ITAA Initiates E-Mentoring Program

ITAA’s work with technology Techworld Public Charter School in Washington, DC., a public charter school that works with bright and talented students and prepares them for future careers in IT, has prompted the creation of an E-Mentoring program to provide students with positive role models from the industry to answer questions or to offer guidance about launching a tech career.

E-mentoring is an easy, convenient, cost-free way for students to interact with IT professionals via email both in the DC area or in another part of the country. Techworld students are interested in pursuing future careers in IT and need the guidance and direction of professionals already in this prosperous industry.

ITAA member companies such as SRA International and TRW have already agreed to participate in this worthwhile program, and additional E-mentors are needed. ITAA contact: Marjorie Bynum.

12. ITAA to Join US Delegation at G8 Summit on Cybercrime

ITAA will join a US delegation of industry and government representatives next week at a G8 Summit on Cybercrime. The event, taking place in Paris and co-presided over by Japan and France, will focus on issues facing industry and law enforcement in combating cybercrime. The two major themes of this Summit, which precedes the annual meeting of the G8 leaders in Japan, are "Common Problems and Challenges of High Tech Crime" and "Toward New Solutions." The official Summit Web site is: http://www.g8parishightech.org/index.htm. Joining ITAA from industry on the US delegation are such companies as Intel, AT&T, HP, 3Com, Symantec, Novell, Motorola, Mastercard, and Worldcom. The G8 consists of Japan, the United States, Britain, Germany, France, Italy, Canada and Russia. Contact: Douglas Sab

13. Global Internet Project to Co-sponsor “From Regulation to Competition … the Path to Broadband” in London

As the EU enters into increased telecommunications competition, there are many questions and issues being raised by incumbents and new entrants to the market alike. Many see the scope of telecom regulation as expanding and becoming more intrusive on the players, despite competition. Governments do not appear to have an explicit policy to transition from sector specific regulation to general competition policy. In order to sort through the issues, the Global Internet Project will co-sponsor an important and timely conference at London Business School entitled, “From Regulation to Competition…the Path to Broadband,” which is being hosted by the London Business School and the Global Communications Consortium. The EU transition mechanism will be explicitly addressed in the context of the move to broadband and the impacts of regulatory intervention will be discussed including the impact on the development of the Internet itself. ITAA / GIP contact: Shannon Kellogg.

14. Upcoming Webcast Offerings

Smart Alliances: A Practical Guide to Repeatable Success

The Software Division announces a new webcast series: Smart Alliances: A Practical Guide to Repeatable Success. The next webcast is scheduled for Wednesday, May 31st at 2:00 (ET) and will feature John Harbison, author of the best selling book, "Smart Alliances: A Practical Guide to Repeatable Success". Harbison, VP at Booz Allen and Hamilton, will detail an eight-step road map for establishing successful alliances. To register, visit www.itaa.org/software. ITAA contact: Lori Comeau.