E-Commerce Law Week, Issue 374

FAR Council Issues Cybersecurity Requirements For Government Contracts
In the wake of the recent flood of data security breaches and network vulnerabilities, the private sector has been holding its breath, waiting to see what, if any, new cybersecurity standards the federal government plans to hold it to.  While the government is still in the "mulling" stage when it comes to general cybersecurity requirements for industry, it has now spoken a bit more clearly when it comes to companies that provide information technology (IT) services for the government.  On September 30, the Federal Acquisition Regulations (FAR) Council issued an interim rule outlining new steps that federal acquisition workers must take in order to ensure that IT security is incorporated into all purchases of "goods and services" from the private sector.  Among other things, the rule stipulates that contracting officers must include cybersecurity requirements in acquisition planning.  Although currently only relevant to companies performing government contracts, the rule may also provide a clue as to the shape of any further federal efforts to impose cybersecurity standards on the private sector.  The new rule took effect immediately, but the FAR Council will accept public comment until November 29.

The Police and the Politics of European Data Protection
On October 4, the European Commission made a proposal for a framework decision ("Decision") by the EU Council of Ministers regarding data protection rules that would apply to international cooperation by police and judicial bodies in criminal matters.  This proposal has a fairly narrow scope, and the plausible aims of making international law enforcement operations in Europe (which are outside existing data protection rules) subject to rules similar to those that apply to European citizens and businesses and of harmonizing rules across Europe among law enforcement agencies that share personal data.  Such a proposal makes sense given the increasing international exchanges of data by law enforcement in the fight against terrorism.  But we suspect that there is also more going on, and that this is as much about politics as it is about data protection.

Microsoft Settles Another One
Microsoft announced on October 5 that its antitrust dispute with RealNetworks Inc. ("Real") in the U.S. will end.  Pursuant to the settlement agreement, Microsoft will pay Real $761 million in cash, and create a new partnership going forward.  Prior to the development of Windows Media Player ("WMP") in 2000, Windows had featured Real’s media player.  Now Microsoft will promote Rapsody, Real’s subscription service for online music, and ensure that Real’s media player operates seamlessly with the Windows operating system, a core issue in Real’s civil antitrust suit against Microsoft.  Real and Microsoft will also collaborate to produce online games to be featured on MSN and on Microsoft’s Xbox Live arcade.  In exchange, Real has agreed to withdraw as a party to the ongoing appeal of the European Commission's March 2004 Decision  which requires Microsoft to offer a version of Windows without WMP, in an effort to promote Real’s and other companies’ media players.  The Decision is currently on appeal in the Court of First Instance in Luxembourg, and will not be affected by the Real settlement.  Arguments on the appeal are expected later this year, or in early 2006.  Real has also agreed to drop its involvement in an antitrust investigation of Microsoft conducted by the Korean Fair Trade Commission.

Steptoe IP Teleconference Series Debuts on November 17
Steptoe & Johnson LLP, in partnership with IP Law and Business magazine, is pleased to introduce a new quarterly teleconference series highlighting important intellectual property issues that a company might face.  The first teleconference will be on Thursday, November 17, 2005, from 1:00 pm until 2:00 pm EDT.  Please join Steptoe & Johnson patent attorneys and other recognized experts as they discuss the details and implications of the proposed Patent Reform Act of 2005:  If enacted, what are the implications?  What changes are envisioned for injunctions, inequitable conduct law, and post-grant patent procedures?  How will a "first to file" system change patent practice?  Will the proposed changes really fix the problems?

The teleconference is toll-free, and there is no charge to participate.  For additional information or to register, please contact Alycia Polley (telephone 202.457.5436).

Questions and comments about E-Commerce Law Week are always welcome.  Please send your feedback to Sally Albertazzie.