The UCLA Medical Center employee who allegedly pried into the private medical records of the governor's wife and 60 others in a burgeoning scandal was a low-ranking administrative specialist who told The Times on Tuesday that "it was just me being nosy." [LA Times]

Opponents of a federal ban on Internet gambling said during a congressional hearing that it would be wiser to legalize and regulate betting than prohibit it. Friday's hearing included witnesses from companies that process online payments. In general, they echoed the arguments once used in favor of ending alcohol prohibition and that are now being invoked to decriminalize marijuana: It's better to legalize, tax and carefully regulate an industry than let it flourish with far less oversight in the black market. CNET News

The House of Representatives passed legislation that would impose new requirements on software companies and advertisers to protect computer users from spyware. House lawmakers approved an anti-spyware bill that would require software distributors to clearly notify and obtain consent from consumers before programs can be loaded onto a computer. The legislation is opposed by the software industry, which argues that new regulatory requirements could hurt innovation and technology investment. Reuters

A federal appeals panel struck down the government policy that allows stations and networks to be fined if they broadcast shows containing obscene language. The decision, by a divided panel of the United States Court of Appeals for the Second Circuit in New York, was a sharp rebuke for the F.C.C. and for the Bush administration. Under President Bush, the F.C.C. has expanded its indecency rules, taking a much harder line on obscenities uttered on broadcast television and radio. The New York Times

News Corp.'s MySpace filed a request in a Pennsylvania state court to seek guidance on how it can legally provide local authorities with the private e-mails of convicted sex offenders who had lurked on its service. A federal law prevents Internet service providers such as MySpace from turning over a user's electronic communications without a search warrant. The request comes after some U.S. state authorities began seeking more information on convicted sex predators. Reuters

A U.S. House of Representatives panel said it will hold a hearing on Friday to look at Internet gambling, which is effectively banned in the United States. The hearing will examine whether Internet gambling can be regulated to protect consumers and the payments system, said the House Financial Services Committee. Committee Chairman Barney Frank introduced a bill in April that would repeal an effective ban on online gambling imposed last year by Congress. Reuters

A federal appeals court largely upheld a requirement that Internet phone companies like Vonage pay taxes into a fund to subsidize rural telephone service, but voice over Internet protocol representatives said the ruling isn't all bad. Wireline and wireless carriers already are required to pay 10.9 percent of their long-distance revenues into the so-called Universal Service Fund. CNET News

The popular online dating service eHarmony was sued for refusing to offer its services to gays, lesbians and bisexuals. A lawsuit alleging discrimination based on sexual orientation was filed in Los Angeles Superior Court on behalf of Linda Carlson, who was denied access to eHarmony because she is gay. Lawyers bringing the action said they believed it was the first lawsuit of its kind against eHarmony, which has long rankled the gay community with its failure to offer a "men seeking men" or "women seeking women" option. Reuters