While most Washingtonians were eagerly awaiting the Supreme Court's decision on the health care law, the Senate Commerce Committee held a sparsely attended hearing on the need for consumer privacy protections that showed that Democrats are not giving up on their push for privacy legislation any time soon. The FTC and Obama administration have both outlined voluntary industry practices, such as the implementation of Do Not Track options on Web browsers, but they've also said that further legislation would be necessary. Sen. John Kerry, D-Mass., used his opening statement to argue that industry self-regulation would not be enough to protect consumers' privacy.
Of course, privacy legislation is a scary proposition for some of the Internet's largest companies — including Facebook and Google — which is why they have been lobbying furiously on the issue. Any change in how companies can collect and use consumer information would have significant implications for social media firms, many of which are banking on being able to monetize the large amount of user data they have collected. Stories like the recent report of online travel agency Orbitz steering Apple users to more expensive hotels will likely continue to emerge and may add to the call for new privacy regulations.
But Democrats face an uphill battle to pass a bill, with stiff opposition expected from both Silicon Valley and the GOP. Given the current political landscape, industry self-regulation looks like the only realistic option for Kerry and other privacy advocates in the short-term.
Quotable: "Still, we believe that even under the best self-regulatory proposals, industry is still not granting the individual real control and real choices. Some in industry have agreed not to use a person’s information to target advertising to them, but they still fully intend to track consumers and their behavior and draw conclusions about them. They still intend to use that information with or without people’s consent for purposes unrelated to any specific transaction or service." — Kerry Cyberbullying Grant Program Expanded: The House Judiciary Committee approved a bill (HR 6019) on Thursday that would reauthorize and expand a federal grant program to address occurrences of bullying, including cyberbullying. The legislation attracted bipartisan support, though several Democrats complained that the amount of funding ($40 million) was too low. Bullying has become a hot topic in recent years; undoubtedly children have always been cruel to one another, but a combination of societal changes and increasing tolerance for diversity have resulted in less acceptance of the behavior, particularly with regard to race or sexual orientation. The emergence of the Web and social media also means that such persecution may now take place in a public forum, where the evidence is more easily reproduced and punished than schoolyard taunts. FCC Releases Tentative July Agenda: The FCC on Thursday released its tentative agenda for the July 19 open meeting, headlined by a pair of items addressing the growing demand for broadband Internet access. The Wireless Bureau and Office of Engineering and Technology will present a progress report on the use of white spaces — the unused airwaves between TV channels — to free up more spectrum for broadband. A significant chunk of spectrum was freed up for use as white space during the transition from digital to analog TV; some of that spectrum will likely be unlicensed, allowing any commercial firm to build a device that leverages it. There is hope that new super WiFi technology based on white space could eventually spawn wireless networks that cover entire towns and cities.The FCC will also hear a presentation on the Measuring Broadband America 2012 report, which attempts to gauge the speed and performance of U.S. broadband providers. Last year's inaugural edition of the study found that ISPs were largely living up to their promised speeds; this year's report will expand into more regions and include more types of data. Considering the recent controversies over data caps and throttling, we expect the result to draw swift criticism if any ISPs are found to be underperforming. Finally, the FCC will hear a presentation on next-generation mapping technology at the agency.
Officials Say IP Losses Harming Economy: The growing threat of intellectual theft, or economic espionage, is costing the U.S. billions of dollars every year, according to officials at Thursday's hearing in front of the House Homeland Security Subcommittee on Counterterrorism and Intelligence. A representative from the FBI said foreign nations have discovered it is cheaper to steal U.S. technology via digital attacks and malware than to develop their own. Countries such as China and Russia even have policies encouraging such theft, which has specifically targeted industries and areas including the Research Triangle in North Carolina, Boston's biotech sector and Silicon Valley.While quantifying the amount companies lose to digital piracy and theft is very difficult, there is little doubt that other nations are increasingly targeting firms that develop cutting-edge research and technology for digital attacks. Two possible remedies are including stronger intellectual property protection measures in U.S. trade pacts and passing some form of cybersecurity legislation that would give the government the authority to block or prevent such attacks.
Speaking of IP, here's the full transcript of the House Judiciary Subcommittee on Intellectual Property's recent hearing on IP Enforcement.
Bill Would Ban Multiple Taxes on Digital Goods: The House Judiciary Committee approved a bill (HR 1860) on Thursday that would prohibit states and localities from imposing multiple taxes on the sale of digital goods, including books and music. States and local authorities have opposed the measure (PDF) and argued it could eliminate potential tax revenue when it is most needed, but the bill appears to have momentum as it heads to the floor. The legislation also would bar states and localities from taxing digital goods at a different rate than similar tangible goods. Wireless carriers praised the announcement. Senators Join Forces Over International Control of Web: Sens. Claire McCaskill, D-Mo., and Marco Rubio, R-Fla., introduced a strengthened version of a resolution this week aimed at preventing the United Nations or foreign governments from regulating the Internet. At least eight Senators backed the resolution (PDF), which makes it clear that the U.S. is firmly against taking control of the Web away from the group of nonprofits that currently oversee it. Foreign nations including Russia and China are expected to push for greater international control of the Internet at December's meeting of the U.N.'s telecommunications body in Dubai. U.S. lawmakers and the White House are united against any such efforts; a similar resolution was recently approved by a House panel. Warrantless Surveillance Bill Moves Forward: The House Intelligence Committee unanimously approved the extension of a controversial law on Thursday that allows the warrantless surveillance of foreign targets, including those communicating with U.S. citizens. The bill (HR 5949) would extend the law through 2017. A similar measure (S 3276) is stalled in the Senate thanks to a hold from Sen. Ron Wyden, D-Ore. Verizon Boss Backs Law of Sea Treaty: Verizon Communications CEO Lowell McAdam joined other industry leaders in arguing that the Law of the Sea Convention would help improve trade and create jobs in the U.S. Verizon and other telecom companies run billions of dollars in submarine cables along the ocean floor to transmit international traffic, giving them a significant interest to protect. McAdam said the uncertainty regarding the cables adds to companies' costs. In addition, manufacturers are backing the treaty because of their interest in mining rare-earth minerals, which are crucial to creating electronic devices. The minerals are often found in the deep seabed. Quotable: “Once the U.S. is a party to the convention, Verizon and other U.S. telecommunications companies can work with the appropriate U.S. agencies to enforce, when necessary, the freedoms to lay and repair cables on the continental shelf and the EEZ — saving millions of dollars over the life of a cable system, improving the reliability of our critical infrastructure and putting U.S. companies on a level playing field for operating international cable systems. If the Congress fails to act to ratify the convention, U.S. companies will continue to operate at a disadvantage vis-a-vis our global counterparts, indeed having to work through our international providers and their respective governments to seek protection of their submarine cable infrastructure under the Convention.” — McAdam