House Communications Subcommittee Chairman Greg Walden, R-Ore., and Rep. Yvette Clarke, D-N.Y., asked the GAO to study the FCC’s set-top box proposal. “We are concerned that the agency’s efforts do not include a meaningful assessment of the effects on independent and diverse networks, whose business models may be greatly threatened and undermined by the FCC’s proposed rules,” they said in a letter to the GAO Friday. “The FCC must proceed with a better understanding of how their proposed rules could limit diversity and inclusion on our nation’s shared media platforms.” The GAO should assess the “impact of the FCC’s proposal to change the rules regarding cable set top boxes on small, independent, and multicultural media programmers and content providers,” they said. Clarke had asked the Congressional Research Service to assess the issue (see 1603220053).

A new House bill would amend the All Writs Act so it doesn't apply to encryption, taking aim at FBI use of the 1789 statute as a way to force Apple to help the bureau gain access to an iPhone used by one of the San Bernardino, California, mass shooters. "Contrary to the FBI’s assertion, should they get their way, the safety and security of everyday Americans’ data will be compromised. We cannot allow this to happen," said Rep. Matt Salmon, R-Ariz., who introduced HR-4839 Wednesday, in a statement. The bill, called the Protect Our Devices Act, would "clarify that the text of the All Writs Act .. does not apply to encryption," the release said. Federal Magistrate Sheri Pym of the U.S. District Court in Riverside, California, granted DOJ a postponement of a hearing Tuesday when both Apple and the government were going to argue whether the company could be forced to help the FBI under the 18th century law (see 1603220009). Citing an Israeli newspaper, Reuters reported Wednesday that a company called Cellebrite is now helping the FBI try to get access to the phone, which is the reason the government sought a delay. That company didn't immediately comment to us.

Apple and the federal government are headed for a closely watched showdown in U.S. District Court in Riverside, California, Tuesday over an order to compel the company to help FBI investigators get access to an iPhone used by one of the shooters in the Dec. 2 San Bernardino mass shooting (see 1602170068). Federal Magistrate Judge Sheri Pym will hear the case -- scheduled for 1 p.m. PDT -- that may have wider international implications. Apple wants Pym to dismiss the case, saying the government is misapplying the All Writs Act to force Apple to create new software that would help investigators break into the device (see 1603160060) and would set a precedent to permit the government to create back doors for all devices. DOJ and the FBI have argued the act has been "regularly invoked" and have mostly said it wouldn't set a precedent (see 1603110010). But FBI Director James Comey acknowledged earlier this month at a congressional hearing that any decision could be "potentially precedential," though not binding (see 1603010013). Some who expect the case would head to the 9th Circuit Court of Appeals and possibly up to the Supreme Court (see 1602220026) have said the case could have reverberations across the world and affect millions of people (see 1603040023). “The outcome of this case could not be more important for the future of privacy and security in the digital age," American Civil Liberties Union staff attorney Alex Abdo said Monday in a statement. "If the FBI wins, it will have gained the power to force the tech companies to hack their customers. This is a reckless pursuit that threatens to undermine the security of all our devices, not just the one phone at issue in the case.” But Sen. Tom Cotton, R-Ark., wrote in a Time opinion piece Thursday that "Apple is not fighting for privacy; it's fighting for profit." The FBI's request isn't different from other Fourth Amendment approved searches and wouldn't affect Americans' privacy, he said.

Two House committees formed a joint bipartisan working group to analyze the complex legal and policy issues of encryption and identify potential solutions, the panels' Republican and Democratic leaders said in a news release Monday. The announcement was by House Commerce Committee Chairman Fred Upton, R-Mich., and ranking member Frank Pallone, Jr., D-N.J., and House Judiciary Committee Chairman Bob Goodlatte, R-Va., and ranking member John Conyers, D-Mich. "Members will work toward finding solutions that allow law enforcement agencies to fulfill their responsibility without harming the competitiveness of the U.S. technology sector or the privacy and security protections that encryption provides for U.S. citizens," they said in a joint statement. Working group members are: Reps. Yvette Clark, D-N.Y., Suzan DelBene, D-Wash., Darrell Issa, R-Calif., Bill Johnson, R-Ohio, Joe Kennedy, D-Mass., Adam Kinzinger, R-Ill., Zoe Lofgren, D-Calif., and Jim Sensenbrenner, R-Wis. Bipartisan, bicameral legislation was also introduced in late February to create a congressional blue ribbon panel on encryption (see 1602290074).

Industry groups sought to correct the record as they saw it after FCC Chairman Tom Wheeler’s Tuesday testimony before House appropriators (see 1603150066), slamming how Wheeler characterized his set-top box proposal and the broadcaster repacking process. “It’s disappointing and troubling that Chairman Wheeler continues to dodge basic questions about his set-top box proposal,” said the Future of TV Coalition, which has NCTA and USTelecom among its members. “Dozens of programmers, content creators, lawmakers, and community leaders have spoken clearly about the devastating impact this rule will have on the programming marketplace, and particularly on the independent networks serving communities of color. They deserve honest answers -- not dismissals and dodges.” NAB referred to exchanges that Wheeler had with appropriators regarding the length of time required in the broadcaster repacking process set to follow the broadcast TV incentive auction. “It’s disappointing and disingenuous for Chairman Wheeler to suggest that NAB’s repacking advocacy supports the FCC’s arbitrary 39-month deadline,” an NAB spokesman said. “As he well knows, when the FCC initially pushed to repack the country in 18 months, NAB responded in 2013 that it would take at least 30 months to repack the then-expected 400 or so broadcasters. A year and a half later, the FCC first revealed that it might repack as many as 1,300 TV stations. Given the FCC’s decision not to minimize the scope of repacking, the transition will likely require significantly more time.”

Data breaches occurred 10 years ago, but are much more common today, said Michael Stawasz, Department of Justice deputy chief-computer crime, during a panel Thursday sponsored by FCBA. When people think of data breaches, they think of Target and the theft of personal information, he said. “We do a lot of those cases,” Stawasz said. “But today, the model is changing. The market is saturated with people’s information,” the price of stolen data has decreased and cyberthieves are looking for other ways to make money, he said. “Their new business model is. 'I’m just going to mess with you and get you to pay me to stop,'” he said. “Ransomware” has become easier to do and it’s easier to profit from virtual currencies, he said. “Virtual currencies allow them to scale that model to a much larger degree and now you see mass market ransomware.” There has been an “evolution” in the kinds of risks companies face on data breaches, said privacy lawyer Colleen Brown of Sidley Austin. The playing field has changed significantly in recent years, she said. Who is behind the threats, the kind of data targeted and motives have all changed, she said. “Now we have those hacktivists, who aren’t necessarily motivated by financial concerns,” she said. “You have the disgruntled insiders. … The people you’re up against are increasingly sophisticated. They’re increasingly better resourced. … Sometimes these can be very, very large groups of organized individuals.” The threat isn’t domestic, with many perpetrators living in other countries and some even state-sponsored, she said. “This is a very different playing field and there are different fronts to the war.”

A Donald Trump administration likely wouldn't stake out positions too far removed from the Republican norm on communications issues, New Street Research said in a note to investors. “Even without classical campaign position papers, we think Trump will likely be supportive of the general GOP direction in telecommunications policy,” the firm said. “For example, we suspect he would favor reversing current FCC efforts on pre-empting state municipal broadband bans, Set-Top Boxes, Special Access, and Privacy, while being more sympathetic to consolidation than the [Department of Justice] and FCC have been in recent years.” But New Street conceded there’s not a lot to go on. Trump has presented himself as an anti-establishment candidate. “As with most Trump policy pronouncements, we only discern two consistent elements: adjectives and deal making,” New Street said. “That is, the policy will be great, believe me. It will make America winning winners. Further Trump will appoint the smartest people and they will strike great deals. Stated differently ... nothing to date on the campaign trail provides much of a hint on real policy direction on telecom and media.”

Bipartisan legislation to establish an independent blue ribbon panel that addresses encryption and privacy was introduced by a group of congressional lawmakers led by Sen. Mark Warner, D-Va., and Rep. Michael McCaul, R-Texas. The bill (see 1602240056) would create the 16-member National Commission on Security and Technology Challenges with members chosen from different areas such as cryptography, civil liberties, law enforcement and technology. The panel would provide an interim report within six months. In addition to Warner, a member of the Senate Intelligence Committee, and McCaul, who chairs the House Homeland Security Committee, there are 22 co-sponsors including Sens. Brian Schatz, D-Hawaii, and Susan Collins, R-Maine, and Reps. Will Hurd, R-Texas, Dave Reichert, R-Wash., Jim Langevin, D-R.I., and Kathleen Rice, D-N.Y.

The standoff between Apple and the FBI will be the focus of a House Judiciary Committee hearing Tuesday with FBI Director James Comey as the sole witness on the first panel and Bruce Sewell, Apple general counsel, testifying with others on a second panel (see 1602220026). "Americans have a right to strong privacy protections and Congress should fully examine the issue to be sure those are in place while finding ways to help law enforcement fight crime and keep us safe," said Committee Chairman Bob Goodlatte, R-Va., and ranking member John Conyers, D-Mich., in a joint statement. They added that they want law enforcement to operate effectively without also harming the competitiveness of U.S. encryption providers. Lawmakers are expected to unveil a bill next week to establish a panel that will examine the encryption issue in more depth (see 1602240056). Other scheduled witnesses include Manhattan District Attorney Cyrus Vance and Worcester Polytechnic Institute professor Susan Landau, who's an expert in cybersecurity, national security, law and policy. The hearing is scheduled for 10 a.m. in 2141 Rayburn.

Two of the main sponsors of the Permanent Internet Tax Freedom Act (HR-235) -- House Judiciary Committee Chairman Bob Goodlatte, R-Va., and House Communications Subcommittee ranking member Anna Eshoo, D-Calif. -- jointly lauded enactment of the Trade Facilitation and Trade Enforcement Act. HR-644 included HR-235’s language in its conference version (see 1602110056). President Barack Obama signed HR-644 into law Wednesday (see 1602240069). PITFA “will help prevent unreasonable cost increases that hurt consumers and slow job creation, innovation and the spread of knowledge,” Goodlatte said in a statement. “The last thing the American people need is another tax on their doorstep.” Allowing Internet access taxes “would stifle the countless benefits and opportunities the Internet offers, including access to health care, education, commerce and communications tools,” Eshoo said. “This law will ensure that Americans can permanently access all the powerful resources of the Internet, tax free.”