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legal basis for NSF Support of Internet



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TAXPAYER ASSETS PROJECT - INFORMATION POLICY NOTE
May 4, 1994

       Re: legal basis for NSF Support of the Internet

The following is a memorandum written by attorney Martin
Garthwaite, outlining the current legal basis for NSF funding of
the Internet.  The statutes make for an interesting read, at
least I thought so.  For example, as a result of the 1991 High-
Performance Computing Act, USC 5512 (c)(6) requires NSF to
develop a network that will:

     (6) have accounting mechanisms which allow users or
     groups of users to be charged for their usage of
     copyrighted material available over the Network and,
     where appropriate and technically feasible, for their
     ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
     usage of the Network; 
     ^^^^^^^^^^^^^^^^^^^^

That is to say, the NSF was required under the 1991 HPCA to
develop accounting mechanisms that will allow users to be charged
for network usage (where "appropriate" and "technically
feasible").  Persons interested in what is happening to the
Internet may find a few other interesting items in the
memorandum.  - jamie love (love@essential.org)


      ENABLING LEGISLATION FOR NATIONAL SCIENCE FOUNDATION 
                     SUPPORT OF THE INTERNET
                           May 4, 1994

Martin Spencer Garthwaite
Taxpayer Assets Project
(202/387-8030/martin@essential.org)

     Authority for National Science Foundation (NSF) activities
relating to the Internet is found in 42 U.S.C. 1862, 15 U.S.C.
3707, and 15 U.S.C. 5501 et seq.  The NSF was authorized in 1985
by Public Law 99-159, codified in 42 U.S.C. 1862(a)(4), "to
foster and support the development and use of computer and other
scientific and engineering methods and technologies, primarily
for research and education in the sciences and engineering."  In
executing this grant, 

     the Foundation is authorized to foster and support access by
     the research and education communities to computer networks
     which may be used substantially for purposes in addition to
     research and education in the sciences and engineering, if
     the additional uses will tend to increase the overall
     capabilities of the networks to support such research and
     education activities.  

42 U.S.C.  1862(g).

This language opened up the NSFNET beyond the strict research
environment it had previously served and formed the basis of the
"acceptable use" limitation on use of the NSFNET backbone.  As
far as funding flowing to universities for LANs and to regional
network providers, the NSF was authorized to support "cooperative
research centers" in 1986 by Public Law 99-502, codified in 15
U.S.C.  3707.  It says in paragraph (a), "The National Science
Foundation shall provide assistance for the establishment of
Cooperative Research Centers.  Such Centers shall be affiliated
with a university or other nonprofit institution, or a group
thereof."

     The National High-Performance Computing Program was
established in 1991 and was codified in 15 U.S.C.  5501 et seq. 
The NSF has interpreted this legislation to allow the creation of
a very high-speed Backbone Network Service (vBNS) used only to
link NSF supercomputing centers, to begin the privatization of
backbone service, and to create the Network Access Points (NAPs).

      5512. National Research and Education Network. 
     (a) Establishment. As part of the [High-Performance
     Computing] Program, the National Science Foundation. . . and
     other agencies participating in the Program shall support
     the establishment of the National Research and Education
     Network, portions of which shall, to the extent technically
     feasible, be capable of transmitting data at one gigabit per
     second or greater by 1996. The Network shall provide for the
     linkage of research institutions and educational
     institutions, government, and industry in every State. 

     Though the preceding paragraph would appear to require
access to the vBNS to a broader range of users than just the NSF
supercomputing centers, the following paragraphs of 15 U.S.C.
5512, particularly (c)(4) and (c)(6), appear to sanction such a
limitation as well as possibly sanctioning usage based charges
for backbone service.  Support for NSF plans to role back
subsidization of access to backbone service and to create the
NAPs system may also be found in (c)(3), (c)(4), and (c)(8),
below.
 
     (b) Access. Federal agencies and departments shall work with
     private network service providers, State and local agencies,
     libraries, educational institutions and organizations, and
     others, as appropriate, in order to ensure that the
     researchers, educators, and students have access, as
     appropriate, to the Network. The Network is to provide users
     with appropriate access to high-performance computing
     systems, electronic information resources, other research
     facilities, and libraries. The network shall provide access,
     to the extent practicable, to electronic information
     resources maintained by libraries, research facilities,
     publishers, and affiliated organizations. 
     (c) Network characteristics. The Network shall--
     (1) be developed and deployed with the computer,
     telecommunications, and information industries; 
     (2) be designed, developed, and operated in collaboration
     with potential users in government, industry, and research
     institutions and educational institutions; 
     (3) be designed, developed, and operated in a manner which
     fosters and maintains competition and private sector
     investment in high-speed data networking within the
     telecommunications industry; 
     (4) be designed, developed, and operated in a manner which
     promotes research and development leading to development of
     commercial data communications and telecommunications
     standards, whose development will encourage the
     establishment of privately operated high-speed commercial
     networks; 
     (5) be designed and operated so as to ensure the continued
     application of laws that provide network and information
     resources security measures, including those that protect
     copyright and other intellectual property rights, and those
     that control access to data bases and protect national
     security; 
     (6) have accounting mechanisms which allow users or groups
     of users to be charged for their usage of copyrighted
     material available over the Network and, where appropriate
     and technically feasible, for their usage of the Network; 
     (7) ensure the interoperability of Federal and non-Federal
     computer networks, to the extent appropriate, in a way that
     allows autonomy for each component network; 
     (8) be developed by purchasing standard commercial
     transmission and network services from vendors whenever
     feasible, and by contracting for customized services when
     not feasible, in order to minimize Federal investment in
     network hardware; 
     (9) support research and development of networking software
     and hardware; and 
     (10) serve as a test bed for further research and
     development of high-capacity and high-speed computing
     networks and demonstrate how advanced computers, high-
     capacity and high-speed computing networks, and data bases
     can improve the national information infrastructure. 

     15 U.S.C. 5521, "National Science Foundation activities,"
spells out additional responsibilities of the NSF as well as its
appropriations.

     (a) General Responsibilities. As part of the [High-
     Performance Computing]Program described in subchapter I
     [which includes 5512 cited above] of this chapter -- 
     (1) the National Science Foundation shall provide computing
     and networking infrastructure support for all science and
     engineering disciplines, and support basic research and
     human resource development in all aspects of high-
     performance computing and advanced high-speed computer
     networking; 
     (2) to the extent that colleges, universities, and libraries
     cannot connect to the Network with the assistance of the
     private sector, the National Science Foundation shall have
     primary responsibility for assisting colleges, universities,
     and libraries to connect to the Network; 
     (3) the National Science Foundation shall serve as the
     primary source of information on access to and use of the
     Network; and 
     (4) the National Science Foundations shall upgrade the
     National Science Foundation funded network, assist regional
     networks to upgrade their capabilities, and provide other
     Federal departments and agencies the opportunity to connect
     to the National Science Foundation funded network. 
     (b) Authorization of appropriations. From sums otherwise
     authorized to be appropriated, there are authorized to be
     appropriated to the National Science Foundation for the
     purposes of the Program $213,000,000 for fiscal year 1992;
     $262,000,000 for fiscal year 1993; $305,000,000 for fiscal
     year 1994; $354,000,000 for fiscal year 1995; and
     $413,000,000 for fiscal year 1996. [These amounts may be
     increased by HR 820 to $339,00,000 for 1994 and $404,000,000
     for 1995.]

     15 U.S.C. 5512(g) requires the Director of the Office of
Science and Technology Policy to report to Congress within one
year of 12/9/91 on 

     (1) effective mechanisms for providing operating funds for
     the maintenance and use of the Network, including user fees,
     industry support, and continued Federal investment; 
     (2) the future operation and evolution of the Network; 
     (3) how commercial information service providers could be
     charged for access to the Network, and how Network users
     could be charged for such commercial information services;
     (4) the technological feasibility of allowing commercial
     information service providers to use the Network and other
     federally funded research networks; 
     (5) how to protect the copyrights of material distributed
     over the Network; and 
     (6) appropriate policies to ensure the security of resources
     available on the Network and to protect the privacy of users
     of networks.

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