By Stephen K. Cooper, CCH Washington Staff Writer

The House of Representatives, in a united display of aggravation toward a growing scourge of the Internet, passed two measures on May 23, 2005, designed to stop the spread of computer spyware--malicious software that can take over a computer and steal a person's identity.

By a vote of 395-to-1, the House passed the Internet Spyware (I-SPY) Prevention Act of 2005. Soon after, it passed the Securely Protect Yourself Against Cyber Trespass Act (SPY Act).

Both measures are aimed at stopping the spread of computer software that causes annoying popup ads, hijacked homepages, keystroke logging and online identity theft. I-SPY was the product of the House Judiciary Committee, while the SPY Act was crafted by the House Energy and Commerce Committee. Experts estimate that as many as 80 to 90 percent of all personal computers contain some form of spyware.

"Congressional efforts to curb spyware and phishing are most likely to succeed if we focus on deterring and prosecuting illegal and abusive online behavior, rather than imposing burdensome requirements upon a medium whose growth can largely be attributed to the refusal of the federal government to heavily regulate it," said Judiciary Chairman James Sensenbrenner (R-Wisc.).

Under I-SPY, approximately $10 million would be appropriated for fiscal years 2006 to 2009 to the U.S. Attorney General's Office for prosecutions needed to discourage the use of spyware and the practices commonly called phishing and pharming.

This legislation would enhance criminal penalties for those who obtain personally identifiable information, including a Social Security number, government-issued identification number, or a bank or credit card number with the intent to defraud a person or damage a protected computer.

Moreover, the legislation would impose up to a five-year prison sentence on anyone who uses software to intentionally break into a computer and uses that software in furtherance of another federal crime.

"We know that innovation goes faster than legislation. It is important that we not try to fix the development of legislation in time," said Rep. Zoe Lofgren (D-Calif.). "Instead, we need to focus on misbehavior, not technology, so that technology innovation can continue to move as rapidly as it does, and yet the American consumer and businesses can be protected."

Under the SPY Act, the Federal Trade Commission may seek civil penalties up to $3 million for people who take control of a computer without the authorization of the owner and up to $1 million for people who steal information from a computer. The legislation prohibits unfair and deceptive practices like home page hijacking, keystroke logging, and Web-based phishing, according to Energy and Commerce Chairman Joe Barton (R-Tex.). The measure also provides for a prominent opt-in for consumers, prior to the collection of any personally identifiable information by the monitoring spyware.

"I believe we need to recognize the right of each consumer to be informed of spying taking place on his or her computer and be able to say no to that spying," Barton said. "I believe that we need to require of ad companies the responsibility to inform consumers and to get their consent before they start installing devices on consumers' computers that keep track of everything that they do, and their children do, on the Internet."

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