The Office of the U.S. Trade Representative should defend U.S. interests against intellectual property threats in the EU, China and various countries, tech groups commented through Thursday night. USTR collected comments for its Special 301 report on international IP practices. Copyright safe harbors included in the Digital Millennium Copyright Act and exceptions like fair use are critical, the Internet Association said, citing IP threats from the EU, China and others. Efforts to chip away at the safe harbor framework “threaten the ability of internet companies to expand globally by eliminating” copyright certainty, IA said. BSA|The Software Alliance cited “digital protectionism and isolationism.” Restrictions on “cross-border data transfers; coercive technology transfer; and discrimination against foreign companies, products, and technologies” are counter to U.S. interests, BSA said. The Computer & Communications Industry Association asked USTR to recognize that Europe is attempting to weaken liability protections and enact “copyright policies that will likely have significant negative consequences for the digital economy” like “snippet taxes.” Counterfeiting and piracy in China “remain at epidemic levels,” the U.S. Chamber of Commerce said. Ongoing trade negotiations offer opportunity for the U.S. and China to address IP protection and technology transfer issues, the chamber said. Theft and infringement in China continue to put the software industry at risk, ACT|The App Association said, recommending China remain on the priority watch list. Algeria, Argentina, India, Indonesia, Kuwait, Russia and Ukraine also should remain on the list, ACT said. Public Citizen raised concerns about Malaysia, which hasn't been on the watch list since 2012.
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
Offices of attorneys general in Connecticut, North Carolina and Illinois confirmed involvement Friday in a multistate investigation of Facebook’s Cambridge Analytica privacy breach. Connecticut AG William Tong (D), North Carolina AG Josh Stein and Illinois AG Kwame Raoul (D) are helping lead the probe, their offices said. Bloomberg reported Pennsylvania also is involved. The office for AG Josh Shapiro (D) didn’t comment. AGs in New York, New Jersey, Massachusetts and Washington, D.C., previously announced investigations. Facebook has had “productive conversations” with AGs from various states, a spokesperson emailed: “Many officials have approached us in a constructive manner, focused on solutions that ensure all companies are protecting people’s information, and we look forward to continuing to work with them.”
Verizon would “very much like to see federal privacy legislation passed in 2019,” said Vice President-Public Policy Melissa Tye Thursday at an FCBA event. Director-Regulatory Affairs Rachel Sanford Nemeth also pledged CTA’s support for federal legislation to avoid a patchwork of state regulations.
Despite doomsday scenarios about artificial intelligence, useful data doesn’t exist to determine if the technology would harm U.S. jobs, GAO Chief Scientist Tim Persons told us Friday. “We’re worried about it taking over the world and still can’t answer some basic questions about it,” Persons said after speaking at a Software & Information Industry Association event.
Facebook's plan to integrate messaging services WhatsApp, Instagram and Facebook Messenger raises privacy concerns, Sen. Ed Markey, D-Mass., said Friday. “We need more than mere assurances from the company that this move will not come at the expense of users’ data privacy and security,” Markey responded to reports. Emailed a Facebook spokesperson: "We're working on making more of our messaging products end-to-end encrypted and considering ways to make it easier to reach friends and family across networks ... There is a lot of discussion and debate as we begin the long process of figuring out all the details of how this will work.” The FTC should fine Facebook more than $2 billion for violations in the Cambridge Analytica breach, groups wrote Chairman Joe Simons Thursday. Electronic Privacy Information Center, Color of Change, Government Accountability Project and Open Market Institute alleged FTC Act violations. Such infractions can result in a $41,000 fine per offense, the groups wrote, and Facebook said as many as 70 million Americans were affected. “Even generously assuming that each affected person was subject to only one violation of the order, a thousand dollar fine per violation would necessitate a $70 billion fine. Our point is not to argue for a fine of this scale, but to underscore the authority the FTC possesses to impose consequential fines,” they wrote. The agency should also require Facebook to “unwind” its acquisitions of WhatsApp and Instagram, the groups said, citing failures to protect WhatsApp user data. The commission didn’t comment. Facebook declined comment on the investigation.
It’s unclear why DOJ sued to block AT&T’s buy of Time Warner, Attorney General nominee William Barr told Congress Tuesday. He had concerns the Antitrust Division wasn't engaging with some TW arguments. In Tuesday's Senate Judiciary Committee confirmation hearing, Barr again committed to recusing himself from lawsuit proceedings (see 1901110028) because he was on TW's board during the deal.
Between $50 and $100 is a reasonable price when faced with a legitimate claim for using a copyright-protected image, IP lawyer-experts agreed Friday at an FCBA event. Not all claims should be considered legitimate, said Fletcher Heald's Kevin Goldberg, NPR Senior Associate General Counsel Ashley Messenger and Ballard Spahr's Adrianna Rodriguez on “copyright trolls.” With a legitimate claim, a settlement is infringer's first thought, Goldberg said, and the object is to come to conclusion as quickly and painlessly as possible. Speakers stressed the importance of rigorous record-keeping to ensure online publishers know when they’re using content legally. Rodriguez suggested something as simple as an Excel spreadsheet with rights information. Messenger said NPR handles about one claim per month, and it’s usually the result of a good-faith editorial-staff mistake. The $100 range for a photo is reasonable, she said. Goldberg agreed.
The Commerce Department shouldn’t support overly strict export controls on new technology like artificial intelligence that could harm tech innovation and bolster bad actors like China, industry groups commented. The Bureau of Industry and Security published an advance NPRM in November, seeking comment by Thursday on potentially tighter export controls in docket 2018-25221. The department is exploring technology for conventional weapons, intelligence collection and weapons of mass destruction, including AI and machine learning (ML), microprocessors, advanced computers, data analytics, quantum computing, robotics and advanced surveillance.
The FTC has funding to operate through 11:59 p.m. EST Friday, a spokesperson said Thursday. The agency previously said it would operate through at least mid-day Friday if there were a lapse in funding (see 1812210048). The agency’s latest contingency plan shows it operating at about 23 percent in a shutdown. Employees working Friday can complete shutdown responsibilities before the end of the work day, the spokesperson said.
This week’s revelations about Facebook’s alleged data abuse (see 1812190039) spurred bipartisan fervor for addressing privacy issues in 2019. Incoming leadership for the Senate Commerce Committee, where the chamber’s privacy debate has centered (see 1812070039), told us to expect data privacy in the spotlight, with additional hearings.