ITI Asks DOC to Delay Supply Chain Rule; Microsoft Has Alternative

The Department of Commerce should delay implementing an interim final rule on securing the information and communications technology and services (ICTS) supply chain, the Information Technology Industry Council commented Monday in docket 210113-0009. The rule is meant to address foreign adversaries’ exploitation of software and hardware sales and intellectual property theft. Its “breadth coupled with the broad discretion the rule grants to the Secretary continue to cast a cloud of uncertainty over almost all ICTS transactions and could undermine the national security objectives it purports to address, while also hindering U.S. competitiveness,” ITI said. Microsoft recommended an approach that “incentivizes adoption of technology-based best practices to better protect supply chain security and maintain tech leadership.” These incentives, rather than imposing “undue and unpredictable regulatory burdens,” will “better protect supply chain security and help the United States and other democracies maintain tech leadership,” wrote Associate General Counsel-Global Trade Sarah O’Hare.