Corporate Money and Politics

The fact that corporate money is seeking to influence public policy is nothing unusual. From the different ways of how private money helps to shape politics the first, and most familiar is direct campaign contributions to political candidates and parties, which is especially widespread in the United States. While the second great river of money goes to underwrite lobbying apparatus in diverse state capitals, the third form of attempts to influence public policy making is less well-known, but nearly as wide and deep as the two others - it is money which underwrites a vast network of public policy think tanks and advocacy groups. Although tried to be labeled in another way, unmistakably, these donations are naked attempts by corporations and other donors, to influence the political process.

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The Microsoft Case

Shortly after Microsoft was faced with federal antitrust charges, full-page newspaper ads supporting Microsoft's claim of innocence were run by the Independent Institute. The ads took the form of a letter signed by 240 academic experts and purported to be a scholarly, unbiased view of why the government had gone overboard in its case against the company. According to an article published in the New York Times, Microsoft had not paid for the ads, but was in fact the single largest donor to the Independent Institute, a conservative organization, that has been a leading defender of the company since it first came under fire from federal prosecutors.

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Examples of Mainly Corporate Funded Think Tanks: Cato Institute

Founded in 1977 the Cato Institutes 1998 budget made up US$ 11 million. Its funding consists of corporate and private donations (especially from corporations and executives in the highly regulated industries of financial services, telecommunications and pharmaceuticals industries) and sales of publications.

Catos corporate donors include tobacco firms: Philip Morris (Rupert Murdoch sits on Philip Morris board of directors) and R.J. Reynolds. Financial firms: American Express, Chase Manhattan Bank, Chemical Bank, Citicorp/Citibank, Commonwealth Fund, Prudential Securities and Salomon Brothers. Energy conglomerates: Chevron Companies, Exxon Company, Shell Oil Company and Tenneco Gas, as well as the American Petroleum Institute, Amoco Foundation and Atlantic Richfield Foundation. Furthermore the Cato Institute is funded by pharmaceutical firms: Eli Lilly & Company, Merck & Company and Pfizer, Inc., foundations, like Koch, Lambe and Sarah Scaife and companies from the telecommunications sector: Bell Atlantic Network Services, BellSouth Corporation, Microsoft, NYNEX Corporation, Sun Microsystems and Viacom.

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Abolition of Resale Price Maintenance

The London-based Institute for Economic Affairs (AEI) from its beginning undertook an extensive publishing program to push forward its free-market ideology. Among its publications was one particular paper, which had a direct and immediate political impact. Published in 1960 "Resale Price Maintenance and Shoppers' Choice" by Basil Yamey argued for the abolition of Resale Price Maintenance, which by fixing prices in shops prevented large stores from necessarily under-cutting smaller shops. Yamey argued that a free market in shop prices would save the shoppers £180,000,000 a year, and prices would fall by five percent.

The publication of Yamey's paper was timed to coincide with a period of public debate on the subject to ensure maximum impact, and Yamey's suggestions were taken up by the incumbent Conservative Government. Although the Abolition of Resale Price Maintenance by Edward Heath in 1964, can not only be attributed to Yamey's paper, it for sure had a substantial impact.

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Examples of Mainly Corporate Funded Think Tanks: Manhattan Institute

The Manhattan Institute, founded by William Casey, who later became President Reagan's CIA director, besides subsidies from a number of large conservative foundations has gained funding from such corporate sources as: The Chase Manhattan Bank, Citicorp, Time Warner, Procter & Gamble and State Farm Insurance, as well as the Lilly Endowment and philantropic arms of American Express, Bristol-Myers Squibb, CIGNA and Merrill Lynch. Boosted by major firms, the Manhattan Institute budget reached US$ 5 million a year by the early 1990s.

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Chevron

Chevron is a U.S. petroleum corporation formed in 1926 with the merger of Standard Oil Company of California and Pacific Oil Company. Headquartered in San Francisco, it operates today in more than 90 countries, either directly or through affiliates.

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Merck & Co., Inc.

Merck & Co. is a research-driven pharmaceutical company that discovers, develops, manufactures and markets a broad range of human and animal health products, and provides pharmaceutical benefit services through Merck-Medco Managed Care LLC. The Company is comprised of two operating segments. Merck-Medco primarily includes sale of non-Merck products and Merck-Medco pharmaceutical benefit services, principally manages prescription drug programs and programs to help manage patient health. Merck-Medco sells its services to corporations, labor unions and insurance companies. Merck Pharmaceuticals consists of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The Company's human health products are sold to drug wholesalers and retailers, hospitals, clinics, government agencies, and managed care providers.

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R.J. Reynolds

American manufacturer of tobacco products. The origins of the R.J. Reynolds Tobacco Company date to the post-Civil War era, when Richard Joshua Reynolds (1850-1918) began trading in tobacco, first in his native Virginia and then in Winston, N.C., where in 1875 he established his first plug factory. The company began to diversify in the 1960s, acquiring chiefly food and oil concerns, and the tobacco concern became a subsidiary of R.J. Reynolds Industries, Inc., in 1970.

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CIA

CIA's mission is to support the President, the National Security Council, and all officials who make and execute U.S. national security policy by: Providing accurate, comprehensive, and timely foreign intelligence on national security topics; Conducting counterintelligence activities, special activities, and other functions related to foreign intelligence and national security, as directed by the President. To accomplish its mission, the CIA engages in research, development, and deployment of high-leverage technology for intelligence purposes. As a separate agency, CIA serves as an independent source of analysis on topics of concern and works closely with the other organizations in the Intelligence Community to ensure that the intelligence consumer--whether Washington policymaker or battlefield commander--receives the adaequate intelligence information.

http://www.cia.gov

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Merrill Lynch & Co., Inc.

American financial-services holding company whose principal subsidiary, Merrill Lynch, Pierce, Fenner & Smith Inc., is the largest retail brokerage house in the United States. Headquarters are in New York City. In the 1970s, under Chairman Donald T. Regan (later treasury secretary under President Ronald Reagan), the firm moved aggressively into such other financial services as insurance and established the nation's largest money-market mutual fund. The holding company was created in 1973. Under Merrill Lynch International, it has several international operations, including Smith New Court PLC, a British securities firm acquired in 1995.

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Electronic Data Interchange (EDI)

EDI is an international standard relating to the exchange of trade goods and services. It enables trading partners to conduct routine business transactions, such as purchase orders, invoices and shipping notices independent of the computer platform used by the trading partners. Standardization by EDI translation software assures the correct interpretation of data.

EDI might become increasingly important to electronic commerce.

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Leonard M. Adleman

Leonard M. Adleman was one of three persons in a team to invent the RSA public-key cryptosystem. The co-authors were Adi Shamir and Ron Rivest.

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Core copyright industries

Those encompass the industries that create copyrighted works as their primary product. These industries include the motion picture industry (television, theatrical, and home video), the recording industry (records, tapes and CDs), the music publishing industry, the book, journal and newspaper publishing industry, and the computer software industry (including data processing, business applications and interactive entertainment software on all platforms), legitimate theater, advertising, and the radio, television and cable broadcasting industries.

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Technological measures

As laid down in the proposed EU Directive on copyright and related rights in the information society technological measures mean "... any technology, device, or component that, in the normal course of its operations, is designed to prevent or inhibit the infringement of any copyright..." The U.S. DMCA (Digital Millennium Copyright Act) divides technological measures in two categories: 1) measures that prevent unauthorized access to a copyrighted work, and 2) measures that prevent unauthorized copying of a copyrighted work. Also the making or selling of devices or services that can be used to circumvent either category of technological measures is prohibited under certain circumstances in the DMCA. Furthermore the 1996 WIPO Copyright Treaty states that the "... contracting parties shall provide adequate legal protection and effective legal remedies against the circumvention of effective technological measures that are used by authors..."

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