Washington, DC: The House Judiciary Committee today passed the Internet Spyware (I-SPY) Prevention Act of 2004, H.R. 4661, which was introduced by Representative Bob Goodlatte. This bipartisan legislation addresses the most egregious activities that are conducted via spyware and make those activities criminal offenses.

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 without the consumer’s consent, or asserts control over a computer without the consumer’s knowledge.” In April, the Federal Trade Commission testified before a House Subcommittee that “spyware appears to be a new and rapidly growing practice that poses a risk of serious harm to consumers

Goodlatte’s legislation, HR 4661, the “Internet Spyware (I-SPY) Prevention Act of 2004,” would make the following criminal offenses:

Intentionally accessing a computer without authorization, or intentionally exceeding authorized access, by causing a computer program or code to be copied onto the computer and using that program or code to -Further another federal criminal offense (punishable by fine or imprisonment for up to 5 years)

-Intentionally obtain or transmit “personal information” with the intent of injuring or defrauding a person or damaging a computer (punishable by fine or imprisonment for up to 2 years)

-Intentionally impair the security protections of a computer (punishable by fine or imprisonment for up to 2 years)

The legislation includes language to preempt States from creating civil remedies based on violations of this act.

“I a encouraged by the passage of this legislation through the Judiciary Committee,” Goodlatte said. “By imposing criminal penalties on these bad actors, this legislation will help deter the use of spyware, and will thus help protect consumers from these aggressive attacks. At the same time, the legislation leaves the door open for innovative technology developments to continue to combat spyware programs.

Spyware encompasses several potential risks including the promotion of identity theft, by harvesting personal information from consumers’ computers. Additionally, it can adversely affect businesses, as they are forced to sustain costs to block and remove spyware from employees’ computers, not to mention the potential impact on productivity.

There is also a growing concern that persistent computer security vulnerabilities may expose U.S. critical infrastructure and government computer systems to cyber attacks, which would ultimately jeopardize national security and the economy.

Additionally, H.R. 4661 authorizes $10 million to the Department of Justice to combat spyware and phishing scams. “Phishing” scams typically involve the use of fake e-mail messages and websites to lure consumers into providing bank account information, credit card numbers and other personal information. These fake e-mail messages and websites are often indistinguishable from the real ones and often request account information from consumers.

Goodlatte has long been a leader in the high-tech community serving as co-chair of the Congressional Internet Caucus, and Chairman of the House Republican High-Tech Working Group. He also serves on the House Judiciary Subcommittee on Crime, Terrorism, and Homeland Security and as Vice Chairman of the Courts, the Internet, and Intellectual Property Subcommittee. The I-SPY bill will be referred to the full House of Representatives for a vote.