SIIA Makes Policy Recommendations to Realize the Economic and Social Value of the Internet of Things

We are at a key inflection point in the history of information technology (IT).  The last decade has brought about significant advances in IT, representing an evolution for IT from a specialized tool into a pervasive influence on nearly every aspect of everyday life.

This new Internet-enabled environment, often referred to as the “Internet of Things,” presents tremendous economic and social value, and is capable of transforming the way we work, communicate, learn and live our lives. Consumers, citizens and society as a whole stand to benefit greatly from innovative uses of data to improve health outcomes, streamlining and enhancing financial services, enhancing education and learning, and improving and maximizing our physical infrastructure.

SIIA proposes the following five recommendations for policymakers to maximize the beneficial outcomes of the Internet of Things:

  1. Policymakers should promote technology neutrality and avoid technology mandates.
  2. De-identification often provides an opportunity way to balance the needs of DDI and privacy protection.
  3. Uniform rules cannot be applied broadly to the role of notice and choice.
  4. The principle of data minimization should be re-interpreted.
  5. The Internet of Things requires a policy framework that provides for an evolving view of privacy rights based on risk and societal benefits.

I will participate in a panel discussion at the National Press Club today about building trust and confidence with regard to the Internet of Things.  The 2013 M2M & Internet of Things Global Summit, hosted by Forum Europe, will take place in Washington DC today and tomorrow.


David LeDuc is Senior Director, Public Policy at SIIA. He focuses on e-commerce, privacy, cyber security, cloud computing, open standards, e-government and information policy. Follow the SIIA public policy team on Twitter at @SIIAPubPolicy.

SIIA Joins Tech Companies, Civil Rights Groups in Support of Surveillance Transparency Legislation

SIIA today joined tech companies and civil rights groups including Google, Apple, Twitter and the ACLU in support of legislation that would improve transparency around government surveillance of the Internet.

In a letter to Senate and House Judiciary Committee leaders, SIIA joined dozens of tech companies and civil rights and technology groups in support of Sen. Al Franken’s (D-MN) Surveillance Transparency Act of 2013, and Rep. Zoe Lofgren’s (D-CA)Surveillance Order Reporting Act of 2013. The bills would clarify that companies have the right to publish basic statistics about government demands for user data that they receive.

The letter states:

“Such transparency is important not only for the American people, who are entitled to have an informed public debate about the appropriateness of that surveillance, but also for international users of U.S.-based service providers who are concerned about privacy and security.”


David LeDuc is Senior Director, Public Policy at SIIA. He focuses on e-commerce, privacy, cyber security, cloud computing, open standards, e-government and information policy. Follow the SIIA public policy team on Twitter at @SIIAPubPolicy.

SIIA Digital Policy Roundup: “Do Not Track” discussions stalled, FTC announces workshop on native advertising, SIIA Comments to FTC on E-Rate, Postal Exigency Rate Still Possible

“Do Not Track” Discussions Stalled, Ability to Reach Consensus Questioned
As the World Wide Web Consortium (W3C) and other stakeholders assess the status of discussions surrounding a browser-based “do not track” solution, the process suffered a significant setback on Tuesday when the Digital Advertising Alliance (DAA) announced that it is withdrawing from future participation in the W3C Tracking Protection Working Group (TPWG). In a letter to W3C CEO Jeff Jaffe, the DAA announced it will convene its own process and forum for evaluating how browser-based signals can be used meaningfully to address consumer privacy. The process reportedly will include browsers manufacturers, consumer groups, advertisers, marketers, agencies and technologists and will be a more practical use of our resources than to continue to participate at the W3C.”In response, past TPWG Chair Peter Swire expressed his agreement that the Working Group does not have a path to consensus that includes large blocs of stakeholders with views as divergent as this group. Regardless of these developments, the W3C is poised to continue the discussions, expected to make an announcement about next steps today. If broad consensus is not reached soon between the divergent stakeholders, it’s likely that members of Congress and the FTC will resume the push for a regulatory approach.

FTC Announces Workshop on Native Advertising
On Tuesday, the Federal Trade Commission announced that it will host a workshop on December 4, 2013, to examine the practice of blending advertisements with news, entertainment, and other content in digital media, referred to as “native advertising” or “sponsored content.” In the announcement, the FTC noted that “increasingly, advertisements that more closely resemble the content in which they are embedded are replacing banner advertisements – graphical images that typically are rectangular in shape – on publishers’ websites and mobile applications. The workshop will bring together publishing and advertising industry representatives, consumer advocates, academics, and government regulators to explore changes in how paid messages are presented to consumers and consumers’ recognition and understanding of these messages.

SIIA’s Comments to FCC Identify 10 Steps for Enhancing the E-Rate Program
In comments submitted Monday to the Federal Communications Commission’s (FCC) proposal to modernize the E-rate Program for schools and libraries, SIIA strongly supported the Commission’s effort to review, modernize and enhance the program and made 10 recommendations. The E-rate program provides schools and libraries with discounts off advanced telecommunications and information services in order to ensure their affordable access. At the core of SIIA’s objectives, robust Internet access through high-speed broadband connectivity is critical to a 21st century education system, and to providing educators and students with access to technology-based tools and resources that are mission critical for teaching and learning in today’s digital age. For more information or to access the comments, visit our Digital Discourse Blog.

Postal Board Defers, but Rate Increases Still Possibly on Horizon
On September 5th the Postal Board of Governors met to consider rate increases, including a possible exigent rate increase on periodicals. The Board deferred a decision on the exigent rate increase until at least its next meeting which is scheduled for next week, September 24th and 25th. Meanwhile, SIIA recently met with members of the Postal Regulatory Commission and congressional leaders on this issue to discuss our concerns with the possible exigent rate increase, as well as other matters potentially impacting our members. While there are a number of moving parts to this discussion, SIIA is continuing to monitor developments related to a possible exigent rate increase and remains engaged with policymakers.As of right now, we continue to believe a potential rate increase of 7-10% is a possibility with a likely exigent filing by USPS and negative rate provisions in the Senate version of postal reform legislation. At this point we expect a CPI increase of approximately 1.8% will go into effect in January.


David LeDuc is Senior Director, Public Policy at SIIA. He focuses on e-commerce, privacy, cyber security, cloud computing, open standards, e-government and information policy. Follow the SIIA public policy team on Twitter at @SIIAPubPolicy.

SIIA Digital Policy Roundup: Draft Cyber Framework Released, GAO Issues Patent Litigation Report, SIIA Promotes Mobile Privacy Code, Highlights Serious Business Challenges Posed by NSA Surveillance

The DPR has been on recess for most of August, we hope you missed us! Here’s a recap of highlights from August, and we will return to our regular weekly schedule next week.

Draft Cyber Framework Released
Heading into Labor Day weekend, the National Institute of Standards and Technology (NIST) released with little fanfare last Thursday a preliminary cybersecurity draft framework outlining standards, best practices and guidance expected to be codified in October as directed by President Barack Obama’s February executive order. The report is a discussion draft intended to generate feedback and discussion NIST’s 4th Cybersecurity Framework Workshop in Dallas on Sept. 11-13.

SIIA Promotes Mobile Privacy Code of Conduct over Regulation
As a follow-up to the mobile privacy code of conduct developed through the Department of Commerce multistakeholder discussions, The Hill published an op-ed from SIIA President Ken Wasch touting the promise of industry self-regulation to provide a trusted environment for mobile device users. Wasch notes that in a time of rapidly evolving technology, this approach is the only way to effectively maintain the right balance between consumer confidence and continued innovation — a balance that government regulation or legislation would most certainly fail to accomplish.

SIIA highlights Serious Business Challenges Posed by NSA Surveillance Revelations
Recent revelations about the National Security Agency’s (NSA) surveillance efforts have clearly changed the privacy landscape for the remainder of 2013, if not much longer. This is a complex policy issue with very broad implications. Importantly for SIIA members, it is one that poses the following serious business challenges: (1) enhanced privacy concerns among customers around the world, (2) policymakers around the world seeking to restrict the cross-border flow of data and enact technology localization requirements, and (3) conflation of private sector data collection with government surveillance as an inseparable public-private partnership that necessitates strict new commercial privacy legislation or regulations.

SIIA has been very engaged in policy debates surrounding this issue for several months, and we expect to remain highly engaged to combat these challenges for months to come. SIIA President Ken Wash attended a meeting at the White House in early August, which was one of several consultations leading up to the President’s call for reforms to NSA programs

GAO Issues Long-Awaited Patent Litigation Report
In late August, The GAO issued its long awaited report on patent abuse litigation. The report examines (1) the volume and characteristics of recent patent litigation activity; (2) views of stakeholders knowledgeable in patent litigation on key factors that have contributed to recent patent litigation; (3) what developments in the judicial system may affect patent litigation; and (4) what actions, if any, PTO has recently taken that may affect patent litigation in the future.

The GAO report documents the existence of a large and growing problem and looks favorably on a number of possible improvements to the patent system such as improved patent quality and limitations on patent litigation discovery. The report identifies numerous concerns with the patent litigation system including but not limited to, the high-cost of patent litigation, the potential for large patent damage awards, poor quality of certain types of patents and recent increases in the amount of patent litigation. While the report notes that various efforts by the courts and the U.S. Patent and Trademark Office have been implemented to try and address these issues it also notes that these concerns still exist. In the report, the GAO also recommended that the PTO consider examining trends in patent infringement litigation and consider linking this information to internal patent examination data to improve patent quality and examination.


David LeDuc is Senior Director, Public Policy at SIIA. He focuses on e-commerce, privacy, cyber security, cloud computing, open standards, e-government and information policy. Follow the SIIA public policy team on Twitter at @SIIAPubPolicy.

Serious Business Challenges Posed by NSA Surveillance Revelations

Recent revelations about the National Security Agency’s (NSA) surveillance efforts have clearly changed the privacy landscape for the remainder of 2013, if not much longer. This is a complex policy issue with very broad implications.

Importantly for SIIA members, it is one that poses the following serious business challenges:  (1) enhanced privacy concerns among customers around the world, (2) policymakers around the world seeking to restrict the cross-border flow of data and enact technology localization requirements, and (3) conflation of private sector data collection with government surveillance as an inseparable public-private partnership that necessitates strict new commercial privacy legislation or regulations—FTC Commission Julie Brill has recently made this connection in an op-ed, which has also come from influential thought-leaders such as former White House Chief of Staff John Podesta.

As a preliminary assessment, the Information Technology Innovation Foundation (ITIF) estimates that the U.S. cloud computing industry alone could lose up to $35 billion over the next three years if foreign customers decide the risks of storing data with a U.S. company outweigh the benefits.

SIIA has been very engaged in policy debates surrounding this issue for several months, and we expect to remain highly engaged to combat these challenges for months to come.  Recently, SIIA President Ken Wash was invited to a meeting at the White House in early August, which was one of several consultations leading up to the President’s call for reforms to NSA programs on August 9.

As a follow-up to the discussion with Administration officials and the SIIA this week joined with other leading technology trade associations in sending a letter to Administration officials urging that discussions about national security must be kept separate from conversations about commercial privacy issues, as the policy considerations in these two areas are distinct. In the letter, SIIA and industry partner organizations made the following recommendations for action that are likely to frame our priorities for the remainder of 2013:

  1. Implement transparency with respect to national security programs – in order to separate fact from fiction regarding the intersection of private sector IT companies and the U.S. Government, it is critical that the Administration enhance transparency and enable companies to share information publicly about the scope and frequency of Government inquiries;
  2. Promote policies that allow for unimpeded cross-border data flows such as the U.S.-EU Safe Harbor Framework – We are already seeing that longstanding and effective cross-border data mechanisms are being questioned in light of the recent disclosures about the U.S. government surveillance programs. For instance, recent statements by government officials in the EU indicate a lack of “trust” in the U.S.-EU Safe Harbor framework, which allows for the transfer of information from the EU to the U.S. for participating companies. This is one of many critical policies that facilitate digital trade for U.S. companies, and it is critical that U.S. government must vigorously engage with the international community to promote cross-border data flows while addressing privacy and civil liberties concerns; and
  3. Support reforming the Electronic Communications Privacy Act (ECPA) to enhance privacy in law enforcement investigations – SIIA has been a leading supporter of ECPA, seeking to update the outdated statue by correcting the double-standard that inappropriately provides for a lower level of privacy for communications stored remotely, or “in the cloud.” Currently, the law provides for a challenging legal environment for industry and a disincentive for customers to embrace hosted information and communications technology solutions as an alternative to on-premise solutions.

SIIA believes that these are critical steps to ensuring that concerns about U.S. Government surveillance do not impose an unnecessary impediment to U.S. information technology businesses.  We are also closely monitoring a range of proposals in Congress that would seek to enhance transparency surrounding U.S. Government surveilance.  The  Surveillance Transparency Act of 2013 (S.1452) was introduced by Senator Al Franken on August 1st, 2013, and the Surveillance Order Reporting Act of 2013 (H.R.3035) was introduced by Congresswoman Zoe Lofgren on August 2nd, 2013.  SIIA has not endorsed any bill at this point, but the Lofgren-Franken approach goes in the right direction by allowing companies to reveal how many national security requests they have received, how many they have complied with and how many users or accounts are affected.

We will continue to focus heavily on this critical issue to promote the ability of U.S. businesses to thrive in the U.S. and markets around the world.  To that end, we will provide further updates regarding new developments.


David LeDuc is Senior Director, Public Policy at SIIA. He focuses on e-commerce, privacy, cyber security, cloud computing, open standards, e-government and information policy. Follow the SIIA public policy team on Twitter at @SIIAPubPolicy.

SIIA Digital Policy Roundup: Commerce Dept. Publishes Copyright Paper, House Commerce Committee Establishes Privacy Working Group, and Patent Litigation Reform Efforts will Resume After Recess

Commerce Dept. Publishes Long-Awaited Copyright Paper:

On July 31st, the U.S. Department of Commerce’s (DOC) Internet Policy Task Force (IPTF) published a green paper, titled “Copyright Policy, Creativity, and Innovation in the Digital Economy,” that discusses the availability, protection, and enforcement of copyrighted works in the online environment. The purpose of the green paper is to review the development of copyright policy in the face of new technologies, assess the current challenges facing copyright law, and provide a set of recommendations to address some of those challenges. With a few minor exceptions, the green paper does not propose any specific legislative changes or any other specific actions.

However, the Paper does set forth a comprehensive plan for conducting future studies in several areas, including studies relating to: (1) accessing the applicability of the first sale doctrine in the digital environment. (numerous licensing issues are identified in the paper, including the increasing tendency of content owners to “structure the transaction as a license rather than a sale, avoiding application of the first sale doctrine.”); (2) improving the operation of the notice-and-takedown system under the Digital Millennium Copyright Act; (3) applying statutory damages to individual file sharers as opposed to large-scale infringers; and (4) determining the appropriate role for the government, if any, to help improve the online licensing environment, including access to comprehensive public and private databases of rights information.

House Commerce Committee Establishes Privacy Working Group

Just prior to adjourning for August recess, House Commerce, Manufacturing, and Trade Subcommittee Chairman Lee Terry (R-NE) and Ranking Member Jan Schakowsky (D-IL) launched a bipartisan Privacy Working Group to examine online privacy concerns and issues. The established goal of the Group is to “examine the complex issues with a balanced approach that recognizes the need to protect personal information online in a manner that preserves growth and innovation.” While it is unlikely that this Group will push legislation in the limited time remaining this session, it remains to be seen whether any bipartisan consensus emerges following months of information gathering.

Patent Litigation Reform Efforts will Resume After Recess

At the outset of the summer, we anticipated that House Judiciary Committee Chairman Bob Goodlatte (R-VA) would release a revised version of his patent litigation abuse discussion draft prior to the August recess and that the draft might possibly be introduced as a bill just prior to the recess. But like many summer blockbusters, this release date too has been pushed back. While this delay should not be considered a step back in the effort to get legislation passed, it is an indication that Chairman Goodlatte plans to proceed more methodically in an effort to ensure that any legislation in this area strikes the right balance and addresses the patent troll problem in an effective and meaningful way without the need to seek additional legislation in the future.

For the latest key policy developments affecting the software and digital content industries, subscribe to the Digital Policy Roundup Newsletter.


David LeDuc is Senior Director, Public Policy at SIIA. He focuses on e-commerce, privacy, cyber security, cloud computing, open standards, e-government and information policy. Follow the SIIA public policy team on Twitter at @SIIAPubPolicy.

SIIA Digital Policy Roundup: Mobile App Privacy Code of Conduct Approved, Cybersecurity Gets a Legislative Boost, E-Rate Expansion and Postal Reform Move Forward

Mobile App Privacy Code of Conduct Approved, Testing is Next Step

At the last scheduled meeting of the Department of Commerce-led multistakeholder initiative on mobile app transparency, SIIA joined a wide range of groups voting in support of the voluntary Code of Conduct, citing it as a useful model for app providers to develop short privacy statements about an apps data collection and sharing practices. After the meeting, DOC Assistant Secretary Larry Strickling lauded the effort, stating “today a diverse group of stakeholders reached a seminal milestone in the efforts to enhance consumer privacy on mobile devices,” and encouraging all the companies that participated in the discussion to move forward to test the code with their consumers. SIIA will be providing additional information in the coming weeks to educate SIIA members about the Code and how they might want to use this as a model for providing enhanced mobile app transparency.

Cybersecurity Gets a Boost from Bipartisan Senate Legislation

Bipartisan cybersecurity legislation, the Cybersecurity Act of 2013 (S. 1353), introduced recently by Senate Commerce Committee Chairman Jay Rockefeller (D-WV) and Ranking Republican John Thune (R-SD), moved quickly through the Cmte. hearing and markup process, being approved today by a voice vote. SIIA supports the legislation because it would accomplish several objectives for protecting the Nation from cyber threats. Although Congress is heading into August recess next week, this legislation revitalizes hope that Congress could enact consensus cybersecurity legislation this year. Meanwhile, discussions are still ongoing among Congressional leaders regarding legislation to enhance cyber information sharing, another critical objective of SIIA that has yet to see significant bipartisan consensus. Expect cybersecurity to be a major issue through the end of the Congressional session.

SIIA Supports E-Rate Expansion as Proposal Moves Forward

Earlier this month, SIIA praised the Federal Communications Commission for approving a new rulemaking aimed at updating and enhancing the E-Rate. The vote follows President Obama’s “ConnectEd” proposal last month to enhance high-speed broadband connectivity for the nation’s schools and libraries, which calls for leveraging the Program within five years connect 99 percent of America’s students through next-generation broadband (at speeds no less than 100Mbps and with a target of 1Gbps), and high-speed wireless within, their schools and libraries. This is still the early stages of E-Rate expansion, but a critical step. Read more on SIIA’s Digital Discourse Blog.

Postal Reform Moves Forward in House, Preserves Periodical Rate

Last week, the House Committee on Oversight and Government Reform voted to approve the The Postal Reform Act of 2013. Importantly for SIIA members, the Postal Reform Act of 2013 maintains the Consumer Price Index-based rate structure and also establishes a common sense timetable to evaluate rates and cost coverage for classes of periodicals and other classes of mail. SIIA hailed the Cmte. vote and legislation as the right approach to get the USPS back on the path to financial stability and to provide a reliable and sustainable delivery service for mailers. Read more on SIIA’s Digital Discourse Blog.

For the latest key policy developments affecting the software and digital content industries, subscribe to the Digital Policy Roundup Newsletter.


David LeDuc is Senior Director, Public Policy at SIIA. He focuses on e-commerce, privacy, cyber security, cloud computing, open standards, e-government and information policy. Follow the SIIA public policy team on Twitter at @SIIAPubPolicy.