When Simon arrived in Greenwich, Joseph Schrap brought some unwelcome news.
The latest draft of the Digital Copyright Act, aimed at improving internet copyright protection, was once again rejected during its second reading in the House of Representatives.
The main point of contention was the "Safe Harbor Clause."
Opponents argued that this clause could be abused, leading to rampant online piracy.
According to the US legislative process, a bill must pass through both the House and the Senate twice, gain majority support, and be signed by the President to become law. The President can refuse to sign certain bills, but Congress can override this with a two-thirds majority vote, thereby forcing the bill through.
Most US bills get stalled in the review process, sometimes dragging on for five or six years and undergoing seven or eight reviews before possibly passing.
The final voting stage, however, usually isn't as suspenseful.
Once a bill reaches the voting stage, it often indicates that it has undergone extensive negotiation and compromise to gain the majority support needed.
"According to our lobbying team's feedback, the Senate shouldn't be a problem because the Majority Leader is Gore. But we need at least 20 more votes to pass the House."
The Senate has 100 seats, but the number of seats in the House is periodically adjusted based on the US population, currently totaling 434 seats. Therefore, at least 218 votes are needed to secure a majority, and securing 20 more votes is no small feat.
Currently, the Democrats and Republicans hold 256 and 178 seats in the House, respectively. As a supporter of the Democrats, it might seem easy for the Westeros system to pass a bill, but this is far from the truth. The Democratic Party isn't a monolith, and the Westeros system isn't welcomed by all Democrats.
It's easy to imagine that those Democrats backed by traditional media groups wouldn't support the Westeros system and would oppose the growth of Eaglet.
Seeing Simon silently reading the document he had brought, Schrap continued, "Representative David Melrose of Connecticut, along with several other congressmen, is pushing for an Internet Media Regulation Act," Schrap said, flipping through the documents in front of Simon. "Here it is. So, to pass the Digital Copyright Act, we'll likely need to make some trade-offs. Additionally, many Congress members from both parties are also seeking to relax the 'cross-media ownership ban,' which could be an opportunity for us."
Although everyone understood that platforms like Eaglet Portal had media attributes, Eaglet positioned its news and information department as a content publisher, not a media company. The key distinction lay in the differing regulatory requirements between these two fields.
The US publishing industry enjoys considerable freedom, while the media industry, because of the constitutional provision for freedom of speech, faces strict regulation.
The cross-media ownership ban, enacted in the 1960s, was one of the main constraints on traditional media, with many media giants lobbying for its relaxation since Nixon's time.
To prevent media manipulation of public opinion, the cross-media ownership ban's main provisions include that a media group cannot own more than two newspapers in the same area, cannot simultaneously own a newspaper and a television station in the same area, cannot own more than 12 local TV stations, and major public TV networks cannot exceed a 35% audience market share, among others.
Over the past few years, the Westeros system has built considerable political capital, able to mobilize 17 House votes and 6 Senate votes in crucial moments. Though these numbers may seem small, they represent a significant political force and a bargaining chip, as Schrap indicated.
Simon's memory served him well.
David Melrose, the Connecticut congressman, was introduced to him by William Hearst III at a Hearst family party. Given the current tension between the Westeros system and traditional media, it was no surprise that Melrose was spearheading the Internet Media Regulation Act.
Relaxing the cross-media ownership ban was a move by traditional media groups to protect their industry status amid the burgeoning internet industry.
Groups like Hearst, Condé Nast, and The New York Times had substantial congressional influence, likely more than the Westeros system. If an agreement could be reached, securing the additional 20 House votes needed to pass the Digital Copyright Act would be easy.
Clearly, the main obstacle to passing the Digital Copyright Act was the traditional media groups.
As Simon processed this information, he looked up at Joseph Schrap with a hint of a smile, "Is someone looking to make peace?"
Joseph Schrap was taken aback, having been carefully considering how to broach the topic. He hadn't expected Simon to guess it so quickly.
Aware of his boss's personality and the current relationship between the Westeros system and traditional media, Schrap was very cautious about conveying certain messages. His family and related interests highly valued their current position within the Westeros system and didn't want Simon to doubt his loyalty.
Even before the internet boom, the American print media industry had been declining under the pressure of a burgeoning television industry.
Groups like Hearst and Condé Nast sought to expand into television. Hearst's acquisition of 20% of ESPN from Daenerys Entertainment was part of this strategy.
However, as traditional media struggled to transition to television, the internet's explosive growth posed an even greater threat.
Initially, the old media sought to block and counteract the internet.
But now it was clear that this strategy wasn't working.
Trying to suppress Daenerys Entertainment to force the Westeros system to compromise had backfired, with Daenerys Entertainment releasing one blockbuster after another. Reducing ad spending in traditional media and expanding internet marketing only made things worse for print media.
Meanwhile, in less than four years, internet adoption in the US had reached 30% of the population, far outpacing the growth of television. In another decade, internet penetration could rival that of TV networks.
Since resistance was futile, adapting to the trend was the smartest choice.
Schrap chose his words carefully, "The New York Times plans to launch an electronic version soon. You know, Simon, without support from Eaglet Portal to drive traffic, they wouldn't have much chance to develop."
There was more to this.
For The New York Times' electronic version to establish itself online, it would directly compete with Eaglet's news service.
Given the similarity in their offerings, users would likely prefer Eaglet's free portal over paid electronic newspapers, creating an inevitable conflict of interest. Any reconciliation and cooperation would require Eaglet to make some concessions.
Despite its established status, Eaglet's news division was still relatively weak.
In terms of staff, The New York Times alone employed over 1,600 people worldwide, while Eaglet's news team had just reached 500.
To mislead competitors, Simon prioritized news for Eaglet, but in reality, news was never Eaglet's core focus. If traditional media groups had granted Eaglet online news rights, Simon wouldn't have invested heavily in building his own news team.
Therefore, concessions in this area might seem to outsiders as compromising Eaglet's core interests, but that wasn't the case.
Digitizing content from established media like The New York Times would greatly enrich the online content pool, benefiting Eaglet's search engine development.
Although Simon intended to let Eaglet grow aggressively, he wouldn't mind reconciling with some major print media.
Having more friends is always better than having more enemies.
Joseph Schrap's hint was clear. Simon thought for a moment and asked, "The Sulzberger family behind The New York Times?"
Currently, most major American newspapers were controlled by old families, such as the Hearsts with Hearst Corporation, the Sulzbergers with The New York Times, the Grahams with The Washington Post, and the Newhouses with Condé Nast.
Joseph Schrap nodded, "Simon, if you have the time, Arthur Sulzberger Jr. of The New York Times would like to meet with you."
Simon didn't immediately agree.
His previous interactions with the Hearst family were far from pleasant, and even Rupert Murdoch, whom he had a decent relationship with, was a crafty old fox. Responding too eagerly now could lead to unpredictable outcomes with the Sulzberger family.
After some thought, Simon said, "I need to return to Los Angeles this afternoon. If he's willing, he can come to the West Coast. I can host him anytime."
Understanding Simon's hesitation, Joseph Schrap nodded. The stalemate with the Hearst family hadn't eased, and he had witnessed the arrogance of old media families. Since the Westeros system held the upper hand, it was only natural for the other party to make the first move.
They discussed other matters, including the ongoing 1994 midterm elections, the Capital Gains Tax Reform Act, the lifting of media consolidation bans, and the Clinton administration's proposed Telecommunications Act. By noon, after having lunch together, Simon boarded a flight back to Los Angeles at 1 PM.
In the study of the Boeing 767's front cabin.
Once the plane stabilized, Allison came in to report on the arrangements made regarding the British documents from the morning. She ended with, "Boss, the issue with Yulia Shurshekin has been resolved. Should we arrange for her to come to the US?"
Simon, still reading the documents Joseph Schrap had left, looked up in confusion, "Who?"
Allison repeated, "Yulia Shurshekin."
Simon then recalled the ballet teacher for the group of girls in London, a Slavic woman who perfectly fit his image of a fairy.
During a visit to watch the London girls practice ballet with Janet, he had casually ordered a background check after noticing her.
She was an ordinary woman from a tumultuous era, with both advantages and disadvantages, the latter being her beauty.
Yulia Shurshekin, 31, had been married once and had a three-year-old daughter. Two years ago, she followed a British banker to London, only to find out
she had been deceived with false promises of marriage and a green card.
The banker, who already had a family, only wanted to keep her as a mistress, withholding her green card to control her.
Resigned to her fate, Yulia's situation changed when the banker lost everything in the 1992 pound crisis, including his million-pound fortune, his marriage, and his ability to support his Russian mistress. Desperate, he even tried to sell her and her daughter to a London brothel for £150,000.
Simon wasn't particularly moved by this story.
Countless others had suffered more during turbulent times. Having encountered her, he had the destitute banker sent to prison and arranged everything for the mother and daughter.
Of course, Simon made no secret of his possessiveness. He wasn't a saint. Yulia only knew she had become part of the powerful figure behind the London girls, unaware of Simon's true identity.
Simon's collector's habit acted up, but he already had plenty of women around. So, he shook his head, "Let her stay in London to continue teaching the girls ballet. Also, don't have the girls practice pointe. Ballet dancers' toes often end up looking unpleasant."
Allison nodded, then, a bit puzzled, flipped through her folder and found a photo, "No, they're very pretty."
Simon took the photo, which showed Yulia in a ballet pose. Despite the thin white stockings, her small feet appeared delicate and perfect.
Allison added, "I know a bit about this. Many ballet dancers' toes get deformed due to improper training. Yulia is very professional."
Recalling Yulia's teaching, Simon, though not well-versed in ballet, had sensed her professionalism.
Putting the photo aside, Simon said, "Just make sure they don't practice pointe. The girls aren't training to be professional ballet dancers. Also, gather detailed information on the main families behind major US print media groups, starting with the Sulzberger family of The New York Times."
Allison nodded, noting Simon's instructions, and left the study.
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