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Politics and Law

Obama names Internet commerce expert to new economic board

President-elect Barack Obama on Wednesday announced the formation of an Economic Recovery Advisory Board, naming an economist with expertise in Internet policy as the board's staff director and chief economist.

The newly established economic advisory board will be expected to regularly brief Obama, Vice President-elect Joe Biden, and their economic team with independent, nonpartisan information and analysis that will help the administration formulate a plan for economic recovery. Obama named former Federal Reserve Chairman Paul Volcker as the board's chairman and Austan Goolsbee as staff director and chief economist of the board.

Goolsbee is an economics professor at … Read more

Change.gov feature jump-starts health care discussion

A new feature called "Join the Discussion" was added Tuesday to President-elect Barack Obama's transition Web site, Change.gov, making the site more interactive for visitors.

The new page allows people to post to comments on a specific topic deemed a top priority by Obama. The page's first discussion focuses on health care and features a video from health care transition team members Dr. Dora Hughes and Lauren Aronson. As of Wednesday morning, more than 1,100 comments had been posted.

"A critical part of our health reform efforts is making sure every American voice … Read more

Senator probes privacy law after Obama phone record breach

In light of the recent breach of President-elect Barack Obama's cell phone records, a senator on Monday sent a letter (PDF) to the Justice Department asking how many investigations or prosecutions the department has undertaken for violations of the Telephone Records and Privacy Protection Act.

Senate Judiciary Committee Chair Patrick Leahy (D-Vt.) sent the letter to Matthew Friedrich, acting assistant attorney general, noting that "data privacy breaches involving the sensitive phone records of ordinary Americans are occurring with greater frequency."

The Telephone Records and Privacy Protection Act, which Leahy sponsored and Congress passed in 2007, prohibits telecommunications … Read more

Firm to buy up patents to ward off 'patent trolls'

A new company is launching with the intent of acquiring patents to shield technology companies from costly patent lawsuits.

RPX, a San Francisco-based start-up, calls itself a "defensive patent aggregator." The company plans to buy available patents to keep them out of the hands of "patent trolls," or firms that obtain patents for the purpose of suing other companies for royalties or licensing fees.

RPX will sell memberships to companies for a fixed annual fee that could range from $35,000 to $4.9 million, depending on the member company's operating income. For the price … Read more

Facebook awarded $873 million in spam case

Facebook has been awarded $873 million in damages against a Canadian man accused of sending spam messages to its members.

The default judgment was issued in federal court in San Jose, Calif., on Friday against Adam Guerbuez, of Montreal, and his company, Atlantis Blue Capital. The ruling also forbids Guerbuez from using Facebook or interacting with its members ever again.

Facebook doesn't expect to necessarily collect the money because "it's unlikely that Geurbez and Atlantis Blue Capital could ever honor the judgment rendered against them," Max Kelly, Facebook's director of security, wrote in a blog postingRead more

Q&A: Amid bailout plans, CEA chief extols free trade

The worsening U.S. economy has elicited a range of responses from lawmakers in recent weeks.

President-elect Barack Obama officially introduced his economic team on Monday, giving more indication that reinvigorating the nation's slumping economy will be his top priority once he is sworn into office. Lawmakers are still considering whether to provide assistance to the auto industry and may put together a new, massive stimulus package.

Meanwhile, President Bush over the weekend continued to press for more free trade--a cause heartily endorsed by the consumer electronics industry.

The chance for Congress to put the Colombia free trade … Read more

Lifestreaming in Obamaland

Barack Obama will be the most shadowed president in history, and it won't be just the Secret Service and press corps surrounding him.

Citizens and paparazzi armed with camera phones and a variety of other multimedia devices will chronicle every movement he makes in public and post it online.

Obama's visit on Friday afternoon to Manny's Cafeteria and Deli in Chicago was treated as a major event. Some footage was recorded by the Associated Press (see below), and in the background you can see employees, as well as a horde of press members, pointing their cameras at … Read more

The key to innovation: Privately owned fiber?

The United States through its history has been the world's leading innovator thanks to a few hobbyists tinkering in their garages. If the U.S. wants to maintain its dominance in the world market, some argue, its policies should encourage innovation through broadband deployment.

While Congress has taken steps to promote universal broadband, a new working paper from the New America Foundation suggests a peculiar route to fostering the nation's next great innovators: allowing consumers to purchase and own their own fiber-optic connection.

In their paper Homes with Tails (PDF), Columbia Law School professor and NAF Fellow Tim … Read more

SEC exempts Facebook from revealing finances for now

Even as it continues to grow, Facebook is facing less pressure to reveal its finances.

The Securities and Exchange Commission in October granted the social-networking site an exemption to part of the SEC Act of 1934, which requires companies to disclose financial information once they have more than 500 stockholders and $10 million in assets.

As BusinessWeek reported, lawyers for Facebook sent the SEC a letter on October 13, asking for an exemption for its distribution of restricted stock. The letter noted that the company could in the future have more than 500 employees with restricted stock. The company currently … Read more

Judge spares E-Gold directors jail time

WASHINGTON--A federal judge decided on Thursday not to impose a prison sentence on the senior directors of E-Gold, an Internet-based digital currency firm, who had previously pleaded guilty to violations of money laundering and running an unlicensed money transmitting business.

The three directors of E-Gold, in addition to its Gold & Silver Reserve parent company, were indicted in April 2007 after federal prosecutors accused the online payment site of being a haven for criminal activity like processing investment scams and payments for child pornography. They said its loose verification standards for users' identity attracted criminals.

The three men and the … Read more

By Stephanie Condon
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