Congressman Adam Smith Cosponsors Bill to Prevent Unreasonable Fees for Internet Radio

Recently, I heard from several constituents concerned about a Copyright Royalty Board (CRB) decision to raise royalty rates for webcasters, a change that could amount to an increase of 300% to 1,200% depending on the size of the operation. Webcasters in our region would be severely impacted by such a change. In response, I have cosponsored H.R. 2060, originally sponsored by Reps. Inslee (D-Wash.) and Manzullo (R-Ill.), legislation to prevent the economic chokehold of an emerging media forum that 70 million Americans utilize.

The bill would create royalty parity for Internet broadcasters similar to commercial and satellite radio, amounting to an increase of about 7.5%. There are two distinct and important issues we are dealing with in this bill. First, there is an overall idea of fairness, which is at the core of capitalism and competition. Everyone deserves and needs to be on an equal playing field. Second, we as a society do not want to be setting a precedent of stifling any form of expression or communication. The CRB’s decision would be effectively doing just that to internet radio.

I rely on the questions and comments from the residents in our community to stay up to date on issues that affect my constituents. Please stay in touch with me about technology issues, or any other issues of concern to you.

The best way to reach me is through my Tacoma office at 253.896.3775. If you’d like, you may send inquiries about technology issues to: Linda.Danforth@mail.house.gov and for general business concerns or to invite me to visit your business or attend an events it’s best to contact: Roel.vanderLugt@mail.house.gov. I look forward to hearing from you.

Sincerely,

Adam Smith
Member of Congress

Russell Indexes Beef Up Biotech Listings

Forty-six biotechnology research and production firms, including 15 in Washington State, have moved into the broad-market Russell 3000® and/or Russell Microcap® indexes. These stocks replaced other companies that didn't fare as well during a widely positive year on Wall Street.

Most of the deletions from the Russell 3000 dropped into the Russell Microcap, while those leaving the Russell Microcap moved up to the Russell 3000 or disappeared from Russell's U.S. indexes altogether. Final index membership remains in place for one year. The reconstitution process is followed closely by many investors because the Russell indexes currently benchmark $4 trillion in assets and account for an industry-leading 54% of all institutional investment products.

Other industries that gained the most among the 277 additions to Russell's U.S. index universe are computer services (33), banks (32), drugs and pharmaceuticals (21) casualty-property insurance (27) and crude oil producers (20). Similarly, 43 banks currently in the Russell 3000 and Russell Microcap indexes were removed.

Founded in 1936, Russell is a subsidiary of Northwestern Mutual Life Insurance Company and headquartered in Tacoma, with principal offices in Amsterdam, Auckland, Hong Kong, Johannesburg, London, Melbourne, New York, Paris, San Francisco, Singapore, Sydney, Tokyo and Toronto.

CenturyTel Pulling the Plug on Countywide Wireless Internet

CenturyTel's test of wireless Internet in Steilacoom has determined that the technology works, but the limited profit forecast has pretty much killed the effort, The News Tribune has reported. Columnist Dan Voelpel--long a proponent for free, ubiquitous wireless surfing--inked the program's epitaph for this Sunday's edition.

CenturyTel was the winning bidder to a Request for Proposals last year from the Rainier Cable Commission, responding that it could install a countywide system with limited free access, sell long-term access to residents and businesses, provide free services to government and make money. During its presentation to the Tacoma Technology Consortium, however, the telco's business plan seemed sketchy, at best.

Across the U.S., many cities are finding their Wi-Fi projects costing more and drawing less interest than expected, leading to worries that a number will fail, resulting in millions of dollars in tax dollars or grants being wasted.

Spotlight on Business

Mashel Telecom /Rainier Connect recently was awarded a prestigious Spotlight! On Business Award by the Tacoma-Pierce County Chamber.

Through five generations Rainier Connect has evolved from a fledgling telephone company with a wooden switchboard to a thriving operation that offers local phone, long distance, cable television and high-speed internet to over 9,000 residential and commercial customers across Pierce and Lewis Counties.

One of the premier cable, Internet and phone providers in our region, Rainier Connect President Brian Haynes said a good portion of the company's success is thanks to the Tacoma-Pierce County Chamber. "It's the people that make the Chamber," Haynes said. "It's great to have that fellowship." Haynes announced that in celebration of the award, any Rainier Connect subscriber who is also a Chamber member would receive half-off one monthly bill.

Measuring Competitiveness

Ed Morrison, blogger, and founder of I-Open, writes in the Spring 2007 GCX (Global Corporate Expansion), of the evolution of economic development indicators/rankings. Most importantly, he focuses on the third generation of rankings/indicators and why they are important to companies and thereby communities.

In his article, he says the third generation of rankings/indicators are divided into three foci: 1) brainpower, 2) innovation & entrepreneurship and 3) quality connected places. He defines each. Brainpower is the global competition for high quality intellects. For communities, this means attention to K-12 education as well as postsecondary educational attainment.

Innovation & entrepreneurship refers to regions where collaborative networks (and supportive resources) are strong and vibrant. And the third area: quality connected places encompasses quality of life metrics as well as infrastructure connectivity (broadband) and social networks.

Many of our local efforts (competitive broadband, UWT's Institute of Technology, Creative Tacoma), fit this model well.

1954 Popular Mechanics Home Computer Forecast

Pentagon Suffers More

The AP reported this Friday (6-22-07) morning that the Pentagon suffered a cyber-attack on Wednesday that required the shut-down of 1,500 computers. Few details, including what's meant by "computers," considering the range of possibilities, were provided.

Secretary of Defense Robert Gates is referenced as stating that the Pentagon sees hundreds of attacks a DAY. He went on to say this cyber-attack had no adverse impacts on department operations as employees could still use the Blackberries.

Meanwhile, on another "front," Bill Gertz in Inside the Ring, from Washington Times of the same date reports on new intelligence on China's cyber-warfare capabilities. There is a new assessment of China's ability to attack U.S. and allied defense computers. Already, Chinese-origin cyber-attacks are wide-spread and detected (emphasis added) regularly. Richard Lawless, deputy undersecretary of defense for Asia told the House Armed Services Committee (HASC) last week (June 13) about China's strides in cyber-warfare. "They see is as a major component of their asymmetric warfare capability," Lawless said as reported by Gertz.