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3 June 1999



  *********************************
  * E-Commerce Law Week, Issue 54 *
  *********************************

  Week Ending May 29, 1999

  E-commerce Law Week is a free newsletter published by Stewart Baker
and Team Crypto of Steptoe & Johnson LLP.

  - Section 346 of the Department of Defense (DoD) appropriations bill (S.
  1059) currently being considered by the Senate includes a provision that
  would mandate the development and implementation of a smart card pilot
  program in the DoD as early as this fall.  DOD will use the pilot to
  explore the card's potential use as a Public Key Infrastructure (PKI)
  authentication device.

  - (to view please visit
  www.steptoe.com/webdoc.nsf/files/section346/$file/section346.txt)Text of
  Section 346.

  - The Australian Senate has passed the Broadcasting Services (Online
  Services) Bill which will require Internet service providers to control
  access to violent and pornographic material on the Internet.  The bill,
  which has already generated wide protest in Australia,  is expected to
  take effect in January 2000 and includes provisions for a review and the
  opportunity for amendments after two years.

  - Senator John McCain (R-AZ), chairman of the Senate Commerce Committee,
  announced that he will hold hearings regarding online privacy some time
  this summer.  In a letter to Robert Pitofsky, chairman of the Federal
  Trade Commission, Senator McCain noted that the results of the Georgetown
  survey were "encouraging," suggesting that "self-regulation is taking
  hold on the Internet and that further regulation may not be necessary."

  - (to view please visit
www.steptoe.com/WebDoc.NSF/Law++The+Net+All/Senator+John+McCain's+Letter
  +to+Robert+Pitofsky)Text of Senator John McCain's letter to Robert
  Pitofsky.

  - The House Judiciary Subcommittee on Courts and Intellectual Property
  held a hearing on online privacy.  Rep. Bob Goodlatte (R-VA) complained
  that "the bills introduced so far go much further than are necessary."
  Although he did not expressly mention his own privacy legislation --
  Title III of the "Internet Growth and Development Act" (H.R. 1685), which
  he introduced with Rep. Rick Boucher (D-VA) -- Goodlatte clearly views
  his proposal as preempting more drastic regulation.

  - The British Cabinet Office Task Force on Encryption released a report
  outlining its suggestions for how the government ought to cope with the
  proliferation of encryption.  Generally hailed by industry; the report
  was written by the Performance and Innovation Unit (PIU) over the course
  of six weeks, and after discussions with 23 companies and organizations.

  - (to view please visit
  www.steptoe.com/webdoc.nsf/files/UKcryptoreport/$file/ukcabinetofficecryp
  toreport.pdf)Text of the "Encryption and Law Enforcement" report.

  - On Thursday, the Senate Commerce Subcommittee on Communications held a
  hearing on S. 761, "The Digital Millenium Commerce Act."  The hearing was
  a virtual "lovefest" for a bill which, if passed, would grant legal
  recognition to electronic signatures (and preempt inconsistent state
  laws).

  - The Internet Corporation for Assigned Names and Numbers ("ICANN"), held
  its second round of public meetings in Berlin.  One of the more
  significant developments was the Initial Board's endorsement of the World
  Intellectual Property Organization's ("WIPO's") recommendations on the
  management of Internet names and addresses.  Although ICANN ultimately
  referred the WIPO Report and recommendations to the Domain Name Support
  Organization, which has been asked to provide its recommendations no
  later than July 31, 1999, it is apparent that the Board looks to adopt
  the procedures and policies set forth by WIPO.

  Visit http://www.steptoe.com/WebDoc.nsf/Law++The+Net-All/All for details
  on these stories and more.

  ********************************************************************

  E-commerce Law Week summarizes legal and other developments affecting
  electronic commerce and security -- with special emphasis on encryption,
  digital signatures, computer security, privacy, and related issues.

  Copyright 1999 Steptoe & Johnson LLP. Steptoe & Johnson LLP grants
  permission for the contents of this publication to be reproduced and
  distributed in full free of charge, provided that: (i) such reproduction
  and distribution is limited to educational and professional non-profit
  use only (and not for advertising or other use); (ii) the reproductions
  or distributions make no edits or changes in this publication; and (iii)
  all reproductions and distributions include the name of the author(s) and
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