The Senate Intellectual Property Subcommittee will form a bipartisan, bicameral working group to aid the Copyright Office’s modernization effort and introduce related legislation before year-end, Chairman Thom Tillis, R-N.C., said Tuesday. Ranking member Chris Coons, D-Del., and Sens. Marsha Blackburn, R-Tenn., and Mazie Hirono, D-Hawaii, are interested in joining, Tillis told us. House members will be invited.
Karl Herchenroeder
Karl Herchenroeder, Associate Editor, is a technology policy journalist for publications including Communications Daily. Born in Rockville, Maryland, he joined the Warren Communications News staff in 2018. He began his journalism career in 2012 at the Aspen Times in Aspen, Colorado, where he covered city government. After that, he covered the nuclear industry for ExchangeMonitor in Washington. You can follow Herchenroeder on Twitter: @karlherk
Blockchain technology could potentially enhance data privacy using digital identities, digital currency company Circle CEO Jeremy Allaire told the Senate Banking Committee during a hearing Tuesday. But skeptical University of California-Irvine law professor Mehrsa Baradaran said policymakers should rely on the Federal Reserve to offer digital currency options, rather than allowing industry to become a dominant money-making authority.
DOJ Antitrust Division Chief Makan Delrahim met with Senate Antitrust Subcommittee leadership, aides told us Thursday. Delrahim originally was to testify before the panel with FTC Chairman Joe Simons on Tuesday, the same day DOJ announced a broad review of the tech industry (see 1907230057). The oversight hearing was postponed until September (see 1907220047).
Alexa users can delete audio data, but Amazon is still working to remove related transcript data, despite pressure from Sen. Chris Coons, D-Del., in July 2018. Coons in May suggested the company misrepresented the control that Echo smart speaker users have in deleting audio data from interactions with Alexa (see 1905240034). Responding to Coons in a letter dated Friday, the company said transcripts are deleted from Alexa’s primary storage systems, and “we have an ongoing effort to ensure those transcripts do not remain in any of Alexa’s other storage systems.” That leaves open the possibility that transcript data remains stored, despite user requests for deletion, Coons said in a statement Tuesday. He raised concern about how data can be shared with third parties: “The American people deserve to understand how their personal data is being used by tech companies.” Amazon’s letter describes how it retains records of Alexa’s actions in response to users, despite deletion of user audio. Examples include when a customer “subscribes to Amazon Music Unlimited, places an Amazon Fresh order, requests a car from Uber or Lyft, and orders a pizza from Domino’s.” The e-tailer doesn’t anonymize user identity information related to transcripts, which allows customers to review transcripts. Alexa is designed to get smarter every day, the company said, using machine learning to analyze region, dialect, context, environment, age and other details about Echo users. The company didn’t comment further.
Senate Banking Committee ranking member Sherrod Brown, D-Ohio, expects Facebook to testify July 16 about its Project Libra cryptocurrency plans (see 1906180063). The committee announced the hearing for 10 a.m. in 538 Dirksen without listing witnesses. “We expect them to come before the committee,” Brown told us. “The public should know what they’re going to do before they move ahead with this, for sure.” The company didn’t comment. Brown expects the company to argue Project Libra will fill the needs of customers who can’t operate within the traditional banking system. “I think people around here are not particularly trusting of Facebook to look out for them. They’re going to look out for themselves -- no surprise there.” The committee needs “to review it very carefully,” Chairman Mike Crapo, R-Idaho, said, calling the concept “very intriguing.” It’s important to evaluate whether the appropriate regulatory authorities are in place to ensure proper oversight, Crapo told us. American Enterprise Institute Visiting Fellow Jim Harper noted Libra will be a separate entity from the company, and transaction data won’t be available to advertising systems: “Whatever results from stirring the currency and payments pot is likely to be better than what we have now. We might just end up with a secure, privacy-protective internet of money.” The House Financial Services Committee is also seeking a hearing with Facebook on Libra. Brown said the project raises privacy and data security concerns. The Banking Committee hearing will also focus on data privacy. It's time to get moving on privacy legislation to avoid a patchwork of state laws like in California, Senate Majority Whip John Thune, R-S.D., told reporters Tuesday. “My hope would be that we would be able to mark something up before the August break.” It’s unclear if the Senate Commerce Committee privacy group is nearing a draft proposal, he said. It’s going to take a willingness and acceptance of not “getting everything you want,” he added. “Unfortunately, there are some Democrats who are fine with the California law going into effect, and that isn’t going to be helpful obviously if we’re trying to push this through and have a sense of urgency about it.”
The FAA expects to publish an NPRM for drone remote identification by September (see 1805210045), more than a year after the original deadline for issuing a final rule, said Deputy Associate Administrator-Office of Security and Hazardous Materials Angela Stubblefield. Remote ID would allow authorities to identify unmanned aircraft systems (UAS) through device registration.
Big tech companies like Google might need to be broken up because Silicon Valley market power is threatening democracy, three Republican state attorneys general told the FTC Wednesday. During a competition policy hearing, Nebraska AG Doug Peterson (R) urged state enforcers to be fast, thorough and thoughtful in probing the industry: “Once we gather the information necessary, we have to consider whether or not to break things.”
The National Institute of Standards and Technology shouldn’t rush developing artificial intelligence standards and should rely on existing international efforts, stakeholders commented through Monday (see 1905300048). A “rush to impose standards could hamper innovation or lead to standards that quickly become irrelevant as technology advances,” AT&T said. Microsoft said it’s “premature” to develop “sector‐specific vertical standards at this time,” given AI’s continued development. Shift focus to promoting development of “open frameworks, shared definitions, and related tools -- including evaluations, data sets, and metrics,” IBM recommended. “Premature standardization is even more important to avoid given the rapid rate of innovation,” the Information Technology Industry Council said. Rather than creating new standards, “look to existing data standards for acquisition, storage, access and use,” ITI said. The association emphasized existing international standards established by organizations like the International Organization of Standardization/IEC Joint Technical Committee. Microsoft also urged NIST to retain international principles like those from the Organisation for Economic Co‐operation and Development. The agency should address analysis gaps with government, academia and industry, but it needs to avoid “becoming a standards‐setting organization,” the company said. Like Microsoft and ITI, BSA|The Software Alliance backed “robust” U.S. participation in the development of international standards. Global standards “have the added benefit of mitigating the risks that can accompany country-specific standards,” BSA said. Strive for federal standards in the handling and securing AI data, the Center for Democracy & Technology said, and emphasize transparency for AI development. Establish a “uniform vocabulary for describing structures, elements, parameters, hyperparameters, and techniques for developing” machine learning systems, CDT said.
The Senate Judiciary Committee is open to launching an investigation into tech industry competition, mirroring the House Judiciary Committee’s probe announced this week, Chairman Lindsey Graham, R-S.C., told us Tuesday. Sens. Ted Cruz, R-Texas, and John Kennedy, R-La., told reporters they would welcome parallel efforts in the Senate. Sen. Josh Hawley, R-Mo., argued such matters are best handled by DOJ and the FTC.
DOJ initiated formal review of the ASCAP and BMI consent decrees Wednesday, as expected (see 1903010052), requesting comment through July 10. The review’s purpose “is to determine whether the decrees should be maintained in their current form, modified, or terminated,” Justice said. First issued in 1941, the ASCAP consent decree was last modified in 2001 and BMI in 1941. “It is important for the Division to reassess periodically whether these decrees continue to serve the American consumer and whether they should be changed to achieve greater efficiency and enhance competition in light of innovations in the industry,” Antitrust Division Chief Makan Delrahim said. DOJ included several questions in the solicitation: Do the decrees serve important competitive purposes, or are they no longer necessary? Do they effectively protect competition? What modifications would enhance competition and efficiency? Would termination serve the public interest? Would a delayed termination be more beneficial? Are “existing antitrust statutes and applicable case law sufficient to protect competition in the absence of the Consent Decrees”? ASCAP CEO Elizabeth Matthews welcomed the news: “A more flexible framework with less government regulation will allow us to compete in a free market, which we believe is the best way for our music creators to be rewarded for the value of their music.” BMI looks “forward to working with the DOJ, licensees and our other music partners to help ensure a smooth process that safeguards a vibrant future for music.” NAB appreciates the “tone” of DOJ’s inquiry regarding the ongoing importance of the framework, CEO Gordon Smith said: “Absent broader legislative reforms, their preservation is essential to a fully functional music marketplace.” The “modification, elimination or even the possible sunset of the decrees at the present time would lead to chaos for the entire marketplace,” MIC Coalition said, noting the decrees have helped mitigate anticompetitive behavior.