[Congressional Record (Bound Edition), Volume 153 (2007), Part 10]
[House]
[Pages 13487-13490]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1130
            INTERNET SPYWARE (I-SPY) PREVENTION ACT OF 2007

  Mr. CONYERS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1525) to amend title 18, United States Code, to discourage 
spyware, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1525

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet Spyware (I-SPY) 
     Prevention Act of 2007''.

     SEC. 2. PENALTIES FOR CERTAIN UNAUTHORIZED ACTIVITIES 
                   RELATING TO COMPUTERS.

       (a) In General.--Chapter 47 of title 18, United States 
     Code, is amended by inserting after section 1030 the 
     following:

     ``Sec. 1030A. Illicit indirect use of protected computers

       ``(a) Whoever intentionally accesses a protected computer 
     without authorization, or exceeds authorized access to a 
     protected computer, by causing a computer program or code to 
     be copied onto the protected computer, and intentionally uses 
     that program or code in furtherance of another Federal 
     criminal offense shall be fined under this title or 
     imprisoned not more than 5 years, or both.
       ``(b) Whoever intentionally accesses a protected computer 
     without authorization, or exceeds authorized access to a 
     protected computer, by causing a computer program or code to 
     be

[[Page 13488]]

     copied onto the protected computer, and by means of that 
     program or code--
       ``(1) intentionally obtains, or transmits to another, 
     personal information with the intent to defraud or injure a 
     person or cause damage to a protected computer; or
       ``(2) intentionally impairs the security protection of the 
     protected computer with the intent to defraud or injure a 
     person or damage a protected computer;

     shall be fined under this title or imprisoned not more than 2 
     years, or both.
       ``(c) No person may bring a civil action under the law of 
     any State if such action is premised in whole or in part upon 
     the defendant's violating this section. For the purposes of 
     this subsection, the term `State' includes the District of 
     Columbia, Puerto Rico, and any other territory or possession 
     of the United States.
       ``(d) As used in this section--
       ``(1) the terms `protected computer' and `exceeds 
     authorized access' have, respectively, the meanings given 
     those terms in section 1030; and
       ``(2) the term `personal information' means--
       ``(A) a first and last name;
       ``(B) a home or other physical address, including street 
     name;
       ``(C) an electronic mail address;
       ``(D) a telephone number;
       ``(E) a Social Security number, tax identification number, 
     drivers license number, passport number, or any other 
     government-issued identification number; or
       ``(F) a credit card or bank account number or any password 
     or access code associated with a credit card or bank account.
       ``(e) This section does not prohibit any lawfully 
     authorized investigative, protective, or intelligence 
     activity of a law enforcement agency of the United States, a 
     State, or a political subdivision of a State, or of an 
     intelligence agency of the United States.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 47 of title 18, United States Code, is 
     amended by inserting after the item relating to section 1030 
     the following new item:

``1030A. Illicit indirect use of protected computers.''.

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       In addition to any other sums otherwise authorized to be 
     appropriated for this purpose, there are authorized to be 
     appropriated for each of fiscal years 2008 through 2011, the 
     sum of $10,000,000 to the Attorney General for prosecutions 
     needed to discourage the use of spyware and the practices 
     commonly called phishing and pharming.

     SEC. 4. FINDINGS AND SENSE OF CONGRESS CONCERNING THE 
                   ENFORCEMENT OF CERTAIN CYBERCRIMES.

       (a) Findings.--Congress makes the following findings:
       (1) Software and electronic communications are increasingly 
     being used by criminals to invade individuals' and 
     businesses' computers without authorization.
       (2) Two particularly egregious types of such schemes are 
     the use of spyware and phishing scams.
       (3) These schemes are often used to obtain personal 
     information, such as bank account and credit card numbers, 
     which can then be used as a means to commit other types of 
     theft.
       (4) In addition to the devastating damage that these 
     heinous activities can inflict on individuals and businesses, 
     they also undermine the confidence that citizens have in 
     using the Internet.
       (5) The continued development of innovative technologies in 
     response to consumer demand is crucial in the fight against 
     spyware.
       (b) Sense of Congress.--Because of the serious nature of 
     these offenses, and the Internet's unique importance in the 
     daily lives of citizens and in interstate commerce, it is the 
     sense of Congress that the Department of Justice should use 
     the amendments made by this Act, and all other available 
     tools, vigorously to prosecute those who use spyware to 
     commit crimes and those that conduct phishing and pharming 
     scams.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Michigan (Mr. Conyers) and the gentleman from Florida (Mr. Keller) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Michigan.
  Mr. CONYERS. Mr. Speaker, I yield myself as much time as I may 
consume.
  Software and electronic communications are increasingly being used by 
criminals to invade individuals and businesses' computers without 
authorization. These practices undermine consumer confidence in the 
integrity and security of the Internet itself. Two particularly 
egregious examples involve the use of spyware and phishing scams.
  Spyware is a form of software that helps gather information about an 
individual or organization without their knowledge. It also can be used 
to take control of someone else's computer and surreptitiously send 
information stored in that computer, such as the individual's personal 
information and passwords, to another entity where it can then be 
redirected for criminal purposes, including fraud, larceny, theft or 
other cybercrimes.
  According to a survey last year by the FBI, computer security 
practitioners say that spyware is among the most critical threats to 
the security of our Nation's computer systems.
  Phishing is another form of cybercrime. It is a scheme by which a 
criminal creates a Web site or sends e-mails that copy a well-known, 
legitimate business in an attempt to deceive Internet users into 
revealing personal information. Through phishing, for example, a 
criminal can trick an Internet user into revealing his bank account 
numbers or passwords.
  Pharming is a version of phishing, and that involves the fraudulent 
use of domain names. In pharming, hijackers hijack a legitimate Web 
site's domain site and redirect traffic intended for the Web site to 
their own Web site where users may unknowingly provide personal 
information to the hacker.
  This measure before us, H.R. 1525, aims to put a stop to these kinds 
of crimes that invade our privacy. It amends title 18 of the United 
States Code to impose criminal penalties, including up to 5 years in 
prison, on those who intentionally engage in spyware-related behavior 
in furtherance of other Federal criminal offenses.
  Another thing the bill does is impose fines and imprisonment up to 2 
years for anyone who engages in such practices with the intent to 
defraud or injure a person.
  Finally, this measure authorizes $10 million per each fiscal year, 
2008 through 2011, to help the Department of Justice combat these 
crimes.
  I want to lift up the names of two of our Judiciary Committee 
members, Congresswoman Zoe Lofgren of California, and of course, Bob 
Goodlatte of Virginia, both of whom have put this legislation together 
and shepherded it through the hearing and the processes of the 
Judiciary Committee. I'd like to commend them for hard, effective work 
in developing and moving this bill on a bipartisan basis.
  This is a targeted measure, ladies and gentlemen, that protects 
consumers by providing appropriately strong penalties for egregious 
behavior. I urge my colleagues to join us in support of it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. KELLER of Florida. Mr. Speaker, I yield myself as much time as I 
may consume.
  Mr. Speaker, spyware is a serious and growing problem. This software 
allows criminals to hack into a computer to alter the user's security 
setting, collect personal information to steal a user's identity or 
commit other crimes.
  H.R. 1525, the Internet Spyware Prevention Act of 2007, is bipartisan 
legislation that imposes criminal penalties on computer hacking 
intrusions and the use of spyware. A maximum term of 5 years 
imprisonment can be imposed for a hacking violation in which an 
unauthorized user accesses a computer.
  In addition, a maximum of 2 years imprisonment can be imposed for 
anyone who uses spyware to break into a computer and alter the security 
settings or obtain the user's personal information.
  This bill also authorizes $10 million for fiscal years 2008 through 
2011 for the Department of Justice to increase Federal prosecutions of 
these new offenses.
  I congratulate Congresswoman Lofgren and Congressman Goodlatte for 
their leadership and dedication on this issue. I also thank Chairman 
Conyers and Crime Subcommittee Chairman Scott for their support of this 
legislation.
  I urge my colleagues to vote ``yes'' on this bill, and I reserve the 
balance of my time.
  Mr. CONYERS. Mr. Speaker, the gentlelady from California, Zoe 
Lofgren, is the principal mover of this bill, and I'm pleased now to 
yield her as much time as she may consume.
  Ms. ZOE LOFGREN of California. Mr. Speaker, I rise in support of H.R. 
1525, the Internet Spyware Prevention Act of 2007. I'm very pleased 
that my first stand-alone bill that will be passed in this House under 
the new Democratic majority is one that both protects

[[Page 13489]]

Americans on the Internet and fosters continued technological 
innovation. I thank my friend, Congressman Bob Goodlatte, for working 
with me once again on this legislation to combat spyware.
  Spyware is becoming one of the biggest threats to consumers on the 
Internet. Thieves are using spyware and key loggers are harvesting 
personal information from unsuspecting Americans. It also affects the 
business community that is forced to spend money to block and remove it 
from their systems.
  Experts estimate that as many as 80 to 90 percent of all personal 
computers are infected with spyware. In short, it's a very real problem 
that's endangering consumers, damaging businesses and creating millions 
of dollars of additional costs.
  This is a bipartisan measure that identifies the truly unscrupulous 
acts associated with spyware and subjects them to criminal punishment. 
This bill is the right approach because it focuses on behavior, not 
technology. It targets the worst forms of spyware without unduly 
burdening technological innovation.
  The bill imposes tough criminal penalties on those who use spyware in 
furtherance of another Federal crime or to defraud or injure consumers. 
It also funds the Attorney General to find and prosecute spyware 
offenders and phishing scam artists.
  Focusing on bad actors and criminal conduct is preferable to an 
approach that criminalizes technology or imposes notice-and-consent-
type requirements. You know, bad actors don't comply with requirements. 
The more notices Internet users receive, in fact, the less likely they 
are to pay attention to any of them. Seventy-three percent of users 
don't read agreements, privacy statements or disclaimers on the 
Internet.
  In 2005, the Pew Internet and American Life Project proved this 
point. A diagnostic site included a clause in one of its user 
agreements that promised $1,000 to the first person to write in and 
request the money. The agreement was downloaded more than 3,000 times 
before someone finally claimed the reward.
  We don't want to overregulate user experience. We must avoid 
interfering with increasingly seamless, intuitive and interactive 
online environments. Regulation of technology is almost always a bad 
idea because technology changes faster than Congress can legislate; and 
what we attempt to regulate will morph into something else and render 
useless the regulatory scheme we adopt.
  Legislation that attempts to control technology can also have the 
pernicious effect of chilling innovation by chilling investment into 
prohibited technological arenas. H.R. 1525 avoids these pitfalls by 
focusing on bad conduct, and that's why it has the broad support in my 
district in Silicon Valley, California.
  What we're doing here today is important for consumers, for 
businesses. It's also important for the future of our high-tech 
economy.
  I urge my colleagues on both sides of the aisle to vote in favor of 
this crucial legislation.
  Mr. KELLER of Florida. Mr. Speaker, I yield as much time as he may 
consume to the gentleman from Virginia (Mr. Goodlatte), who is the lead 
Republican cosponsor of this important legislation.
  Mr. GOODLATTE. Mr. Speaker, I rise in strong support of H.R. 1525, 
the Internet Spyware or I-SPY Prevention Act.
  I was pleased to join with my colleague from California, 
Representative Zoe Lofgren, to reintroduce this legislation. This 
bipartisan bill will impose tough criminal penalties on those that use 
software for nefarious purposes without imposing a broad regulatory 
regime on legitimate online businesses. I believe that this targeted 
approach is the best way to combat spyware.
  Spyware is software that provides a tool for criminals to secretly 
crack into computers to conduct nefarious activities such as altering a 
user's security settings, collecting personal information to steal a 
user's identity or to commit other crimes. A recent study done by the 
National Cybersecurity Alliance revealed that over 90 percent of 
consumers had some form of spyware on their computers, and most 
consumers were not aware of it.
  The I-SPY Prevention Act would impose criminal penalties on the most 
egregious behavior associated with spyware. Specifically, this 
legislation would impose up to a 5-year prison sentence on anyone who 
uses software to intentionally break into a computer and uses that 
spyware in furtherance of another Federal crime.
  In addition, it would impose up to a 2-year prison sentence on anyone 
who uses spyware to intentionally break into a computer and either 
alter the computer's security settings or obtain personal information 
with the intent to defraud or injure a person, or with the intent to 
damage a computer. By imposing stiff penalties on these bad actors, 
this legislation will help deter the use of spyware and will thus help 
protect consumers from these aggressive attacks.
  Enforcement is also crucial in combating spyware. The I-SPY 
Prevention Act authorizes $10 million for fiscal years 2008 through 
2011 to be devoted to prosecutions involving spyware, phishing and 
pharming scams, and expresses the sense of Congress that the Department 
of Justice should vigorously enforce the laws against these crimes.
  Phishing scams occur when criminals send fake e-mail messages to 
consumers on behalf of famous companies and request account information 
that is later used to conduct criminal activities.
  Pharming scams occur when hackers redirect Internet traffic to fake 
sites in order to steal personal information such as credit card 
numbers, passwords and account information.
  This form of online fraud is particularly egregious because it is not 
as easily discernible by consumers. With pharming scams, innocent 
Internet users simply type the domain name into their Web browsers and 
the signal is rerouted to the devious Web site.
  The I-SPY Prevention Act is a targeted approach that protects 
consumers by imposing stiff penalties on the truly bad actors, while 
protecting the ability of legitimate companies to develop new and 
exciting products and services online for consumers.
  The I-SPY Prevention Act also avoids excessive regulation and its 
repercussions, including the increased likelihood that an overly 
regulatory approach focusing on technology would have unintended 
consequences that could discourage consumer use of the Internet, as 
well as the creation of new technologies and services on the Internet. 
By encouraging innovation, the I-SPY Prevention Act will help ensure 
that consumers have access to cutting-edge products and services at 
lower prices.
  In addition, the approach of the I-SPY Prevention Act does not 
interfere with the free market principle that a business should be free 
to react to consumer demand by providing consumers with easy access to 
the Internet's wealth of information and convenience. Increasingly, 
consumers want a seamless interaction with the Internet, and we must be 
careful to not interfere with businesses' ability to respond to this 
consumer demand with innovative services. The I-SPY Prevention Act will 
help ensure that consumers, not the Federal Government, define what 
their interaction with the Internet looks like.

                              {time}  1145

  Finally, by going after the criminal behavior associated with the use 
of spyware, the I-SPY Prevention Act recognizes that not all software 
is spyware and that the crime does not lie in the technology itself but 
rather in actually using the technology for criminal purposes. People 
commit crimes; software doesn't.
  H.R. 1525 is an effective, targeted approach to combating spyware, 
and I urge my colleagues to support this important legislation.
  Mr. CONYERS. Mr. Speaker, I am now pleased to yield such time as he 
may consume to the chairman of the Subcommittee on Crime of the 
Judiciary Committee, the gentleman from Virginia, Mr. Bobby Scott.

[[Page 13490]]


  Mr. SCOTT of Virginia. I thank the chairman for yielding.
  Mr. Speaker, I rise in support of H.R. 1525, the Internet Spyware (I-
SPY) Prevention Act of 2007. I would like to commend Congresswoman 
Lofgren and Congressman Goodlatte for developing the legislation and 
moving the bill on a bipartisan basis. Earlier this month the 
Subcommittee on Crime, Terrorism, and Homeland Security held a hearing 
and markup on the bill and reported it favorably to the full committee.
  The bill amends title 18, U.S. Code, to impose criminal penalties on 
those who use spyware to perpetrate identity theft and numerous other 
privacy intrusions on innocent Internet users. The bill also provides 
resources and guidance to the Department of Justice for the prosecution 
of these offenses.
  The bill is narrowly aimed at the practices of using ``spyware'' and 
``phishing'' to harm consumers. Recent studies estimate that 80 percent 
of computers are infected with some form of spyware and that 89 percent 
of consumers are unaware of the fact that they have spyware. The 
greatest security and privacy challenges posed by spyware relate to 
technologies such as keystroke logging programs that capture a user's 
passwords, Social Security, or account numbers. This information can 
then be redirected for criminal purposes including fraud, larceny, 
identity theft, or other cyber crimes.
  This bill combats spyware by clarifying that it is a crime, 
punishable for up to 5 years in prison, to intentionally access a 
computer without authorization by causing a computer program or code to 
be copied onto a computer and then using that program or code in 
furtherance of another Federal criminal offense. The bill also provides 
fines or imprisonment up to 2 years for anyone who, through means of 
that program or code, intentionally obtains, or transmits to another, 
personal information with the intent to defraud or injure a person.
  The bill also authorizes funds to combat ``phishing.'' Phishing is a 
general term for using what appears to others to be either the Web site 
of, or e-mails from, well-known, legitimate businesses in an attempt to 
deceive Internet users into revealing their personal information. 
Phishing is adequately covered by the criminal code under existing 
Federal wire fraud or identity theft statutes, but additional funds are 
needed to prosecute the crime. This bill would authorize $10 million 
for each of the fiscal years 2008-2011 to combat phishing and spyware.
  I would also like to note that the Energy and Commerce Committee is 
considering a bill on this subject as well. But that bill lacks the 
criminal penalty enforcement mechanism in this bill and in its place 
imposes a regulatory scheme which focuses on the uses of technology 
rather than the perpetrators of crimes. My concern is such a regulatory 
regime may unavoidably sweep in legitimate uses of the technology.
  The I-SPY Prevention Act is a strong bill that protects consumers by 
providing criminal penalties for egregious behavior. Accordingly, I 
urge my colleagues to support this legislation.
  Mr. KELLER of Florida. Mr. Speaker, I yield back the balance of my 
time.
  Mr. CONYERS. Mr. Speaker, this is a very important measure. We are 
finally dealing with those spyware crimes that invade our financial 
privacy, and I commend all of the actors on the Judiciary Committee 
that played a role in bringing this to our attention. Mr. Ric Keller 
has done an excellent job as well.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, as a proud original co-sponsor 
of the legislation before us, I speak in strong support of H.R. 1525, 
the ``Internet Spyware (I-SPY) Prevention Act of 2007.''
  H.R. 1525 amends the federal computer fraud and abuse statute to make 
it unlawful to access a computer without authorization or to 
intentionally exceed authorized access by causing a computer program or 
code to be copied onto the computer and using that program or code to 
transmit or obtain personal information (for example, first and last 
names, addresses, e-mail addresses, telephone numbers, Social Security 
numbers, drivers license numbers, or bank or credit account numbers).
  Further, H.R. 1525 discourages the practice of phishing, another 
scourge of the Internet. ``Phishing'' is a general term for using what 
appears to be either the Web sites of, or e-mails that appear to be 
sent from, readily identifiable and legitimate businesses. These 
fraudulent Web sites and e-mails are designed to deceive Internet users 
into revealing personal information that can then be used to defraud 
those same users. The `phishers' take that information and use it for 
criminal purposes, like identity theft and fraud. Phishing is 
adequately covered by the criminal code, but additional funds are 
needed to prosecute the crime. This bill would authorize 10 million 
dollars for each of the fiscal years 2008 to 2011 to combat phishing 
and spyware.
  Mr. Speaker, as we all know too well, spyware is quickly becoming one 
of the biggest threats to consumers on the information superhighway. 
Spyware encompasses several potential risks, including the promotion of 
identity theft by harvesting personal information from consumer's 
computers. Additionally, it can adversely affect businesses, as they 
are forced to sustain costs to block and remove spyware from employees' 
computers, in addition to the potential impact on productivity.
  Spyware has been defined as ``software that aids in gathering 
information about a person or organization without their knowledge and 
which may send such information to another entity with the consumer's 
consent, or asserts control over a computer with the consumer's 
knowledge.'' Among other things, criminals can use spyware to track 
every keystroke an individual makes, including credit card and Social 
Security numbers.
  Some estimates suggest 25 percent of all personal computers contain 
some kind of spyware while other estimates show that spyware afflicts 
as many as 80-90 percent of all personal computers. Businesses are 
reporting several negative effects of spyware. Microsoft says evidence 
shows that spyware is ``at least partially responsible for 
approximately one-half of all application crashes'' reported to them, 
resulting in millions of dollars of unnecessary support calls.
  The last point I wish to make, Mr. Speaker, is that H.R. 1525 is 
substantially similar to the bipartisan H.R. 744, introduced in the 
109th Congress, which passed the House by a vote of 395-1 and H.R. 
4661, which passed the House during the 108th Congress by a vote of 
415-0. H.R. 1525 is supported by numerous industry groups and privacy 
coalitions, including the Business Software Alliance, the Software & 
Information Industry Association, the U.S. Chamber of Commerce, and the 
Center for Democracy and Technology.
  Mr. Speaker, I strongly support H.R. 1525 and urge all my colleagues 
to do likewise.


                             General Leave

  Mr. CONYERS. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days to revise and extend their remarks and 
include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. CONYERS. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Michigan (Mr. Conyers) that the House suspend the rules 
and pass the bill, H.R. 1525, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________