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E-Commerce Law Week, Issue 348

April 16, 2005

WTO Narrows Review of Online Regulation
Last fall, the tiny Caribbean nation of Antigua and Barbuda achieved an upset victory over the United States in its WTO challenge to U.S. laws that prohibit online gambling and betting services.  In a report issued in November, a WTO panel held that the United States had violated its obligations under the General Agreement on Trade in Services by enforcing a de facto prohibition on online gambling and betting services -- a major industry in Antigua and Barbuda. On April 7, however, the WTO Appellate Body overturned all but a small portion of that decision. The Appellate Body's decision largely confirms the principle that countries may not discriminate against foreign providers of online services solely because those services are provided online. At the same time, the decision recognizes some of the unique regulatory characteristics of the Internet, and gives WTO members more leeway to address those concerns while remaining within their WTO commitments.

NIST Publishes Guidelines on HIPAA Security Rule As Compliance Deadline Approaches
Just in time for the April 21 deadline for complying with the Health Insurance Portability and Accountability Act (HIPAA) Security Rule -- and more than two years after the Security Rule was published -- the National Institute of Standards and Technology (NIST) has issued a compliance guide.  Although it may take some entities until well past April 21 just to read the 137-page guide, much less use it, NIST's guide helpfully summarizes the HIPAA security standards, explains the structure and organization of the Security Rule, and directs readers to other educational material that may assist in proper compliance. The publication, An Introductory Resource Guide for Implementing the Health Insurance Portability and Accountability Act Security Rule , also identifies similarities between the HIPAA Security Rule and the Federal Information Security Management Act of 2002.

Emily Litella Takes on Federal Regulation of VoIP
"Oh. Never mind." So said the California Public Utilities Commission (CPUC), as it withdrew its challenge of a controversial Federal Communications Commission (FCC) decision that preempted state regulation of Voice over IP (VoIP) services. This has left some observers scratching their heads, but the apparent flip-flop has a rather easy explanation -- the membership of the CPUC recently changed. It's unclear how the decision will affect other states' similar appeals. It will likely cause delays and may cause the cases -- which were consolidated in the Ninth Circuit -- to be assigned to another circuit. The CPUC's action -- which comes from regulators in one of the country's largest telecommunications markets -- also marks a significant shift in favor of national VoIP regulation.

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