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.

SIIA Digital Policy Roundup: SIIA Brief Defends Online Info. Service from Tax, White House Supports Industry Piracy Effort and Key Cyber Draft Circulated in Senate

SIIA Legal Brief Defends Digital Information Services from Sales Tax

Last week, SIIA filed an Amicus Curiae Brief in support of Thompson Reuters in its appeal to the Treasury Department of the state of Michigan. At issue in the case is whether an information service, accessed online via the Internet, is subject to Michigan use tax. In the brief, SIIA concurs with Thomson Reuters’ assertion that providing an information service online does not constitute delivery of tangible personal property, different from providing a service either via CD-Rom or some other tangible form, and is thus immune to Michigan’s use tax. Read more on SIIA’s Digital Discourse Blog.

White House Supports Industry Effort to Combat Online Piracy

On Monday, U.S. Intellectual Property Enforcement Coordinator Victoria Espinel offered praise for the recently unveiled industry-developed best practices to keep online ads off websites that illegally offer pirated content and counterfeit products. Espinel lauded the effort as a good example of how the public and private sector can work to combat piracy and counterfeiting and highlighted that this effort is an important component of a comprehensive approach to the problems associated with online infringement, including increased law enforcement, educational awareness, and increased cooperation with our trading partners in order to promote innovation, support jobs, increase exports, and maintain our global competitiveness.

New Cybersecurity Legislation Introduced in Senate

Last week, Senate Commerce The Senate Commerce, Science and Transportation Committee Chairman Jay Rockefeller (D-WV) announced cybersecurity legislation to improve cybersecurity research, education and public awareness, while also tasking the National Institute of Standards and Technology (NIST) to develop voluntary cyber standards and best practices for critical infrastructure, as they have been doing at the direction of the President’s Executive Order earlier this year. In addition to circulating the discussion draft, Chairman Rockefeller reiterated that the Committee will consider the legislation prior to the August recess.

Mobile Privacy Code on Hold for Another Week

For those of you sitting on the edge of your seats waiting to learn about the outcome of the last scheduled meeting for the multistakeholder draft code of conduct on mobile privacy, the meeting was postponed until July 25 because of a scheduling conflict for the Administration. This meeting will be a very important one where the code may see a vote for final approval. We’ll keep you posted!

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 Legal Brief Defends Digital Information Services from Sales and Use Tax in MI

On Wednesday, SIIA filed an Amicus Curiae Brief in support of Thompson Reuters in its appeal to the Treasury Department of the state of Michigan. At issue in the case is whether an information service, accessed online via the Internet, is subject to Michigan use tax. 

In the brief, SIIA concurs with Thomson Reuters’ assertion that providing an information service online does not constitute delivery of tangible personal property, different from providing a service either via CD-Rom or some other tangible form, and is thus immune to Michigan’s use tax.  Drawing on our technical knowledge about online services, and our experience speaking on behalf of the software and digital content industries, SIIA’s brief demonstrates that the MI Treasury Department’s tax treatment of CheckPoint is based on a fundamental misunderstanding of the nature of online services.

As highlighted in the brief, SIIA provides education about the fundamental physical and conceptual distinctions between various operations such as selling software, providing online services, or providing digital content.  It is critical that law impacting online services be developed and implemented with a full understanding of the Internet’s function as a platform for selling products and for providing services. Tax law surrounding information services should be interpreted in a way that is uniform, consistent and constitutional.

The next step in the case will be oral argument before a panel of three judges, which is generally scheduled 9-12 months after the last brief is filed.


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 @SIIAPolicy.

SIIA Says TTIP Negotiators Must Recognize Importance of Digital Trade; Create Trade Agreement as Model for 21st Century

SIIA today called on U.S. and EU negotiators to lower barriers to digital trade as part of the Transatlantic Trade and Investment Partnership (TTIP).

Together America and the EU account for around $30 trillion in annual output, almost half the world total. Of that production, Digital services are a growing, and increasingly essential, part of both the U.S. and EU economies, and they play a huge role in supporting job creation and economic growth worldwide. For these economic benefits to continue, software and information companies must have the ability to easily move data across borders and to locate computer facilities where it is most economically feasible. We urge negotiators to recognize this important high-tech reality and to lower barriers to trade in digital services.

SIIA believes that a primary goal of the ongoing negotiations should be to establish a trade agreement, between the world’s two largest digital services economies, that can serve as a model for 21st Century trade agreements. Preventing restrictions on cross-border data flows and technology localization infrastructure requirements are absolutely critical to the reality of a trade environment that spurs digital trade and allows countries to prepare all of its citizens and enterprises for the global 21st Century economy.

SIIA also wants the TTIP to ensure that digital products, regardless of their classification as a good or service, receive market access, national treatment, most favored nation treatment, and other benefits of open markets. And finally, we urge negotiators to recognize that intellectual property protection is crucial element to enable digital trade in services.


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 @SIIAPolicy.

Digital Policy Roundup: NIST Releases Draft Cyber Framework, Holds Workshop, U.S.-EU Trade Talks Begin and Bill Introduced to Exempt USPTO from Sequestration

NIST Releases Draft Cyber Framework, Holds Workshop this Week

As part of its efforts to develop a voluntary framework to improve cybersecurity for the Nation’s critical infrastructure, the National Institute of Standards and Technology (NIST) on July 2nd released a draft outline of the document to invite public review and gather comments. The draft results from the President’s Executive Order issued earlier this year, and is intended to reflect responses to a February 2013 Request for Information, discussions at two workshops and other forms of stakeholder engagement. According to NIST, the framework is designed to help business leaders evaluate how prepared their organizations are to deal with cyber threats and their impacts. The draft proposes a core structure for the framework and includes a user’s guide and an executive overview that describes the purpose, need and application of the framework in business. NIST is currently welcoming comments and holding a Workshop to gather input this week.

U.S.-EU Trade Talks Begin on Heels of EU Resolution on Data Transfer

The first round of negotiations of the Transatlantic Trade and Investment Partnership (TTIP) began in Washington this week, presenting the opportunity for increased economic and job growth for both economies. The discussions are the beginning of what will be a long process, with a target deadline of November 2014. On Wednesday, the Office of the U.S. Trade Representative (USTR) will hold a stakeholder event bringing together 50 presenters from a wide range of interests, including environmentalists and business and agriculture groups, as well as non-governmental organizations. SIIA previously submitted comments in support of TTIP and pledged to help advance the agreement. Last week, the European Parliament passed by a strong majority a resolution calling on the European Commission to conduct a “full review” of an agreement that allows a number of U.S. companies — including those allegedly complicit in the National Security Agency’s PRISM program — to transfer data about EU citizens to the jurisdiction of the United States. While the resolution does not formally affect the TTIP discussions, there is broad speculation about the potential for additional challenges in the wake of new privacy concerns.

Bill Introduced to Exempt USPTO from Sequestration

On June 28th, Rep Honda (D-CA), introduced the “Patents and Trademarks Encourage New Technology (PATENT) Jobs Act” (H.R. 2582). The bill, which is co-sponsored by two other fellow Californians — Reps. Lofgren and Eshoo (D-Calif.) — would exempt the U.S. Patent and Trademark Office (USPTO) from about $150 million in budget cuts from sequestration. Because the USPTO is funded entirely by user fees its spending is different from spending by other government agencies. SIIA voiced its concerns about the effect of sequestration on the USPTO. The bill provides that states that “the budgetary resources sequestered under [the President's March sequester] order with respect to the United States Patent and Trademark Office shall be available for obligation for the same purpose and in the same manner as if such order had not been issued.” The bill would also add the USPTO to the list of government programs exempt from sequestration from 2014 to 2021.

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.

Admin Unveils IP Strategy, Mobile Privacy Code Final Soon?, and SIIA Cautions about Cybercrime Legislation

Administration Unveils IP Enforcement Strategy

Last Thursday, the Obama Administration released its Intellectual Property (IP) Enforcement Strategy, which addresses a wide range of IP enforcement issues, offering numerous specific actions by federal agencies aimed at helping to protect and advance creativity and innovation. In response, SIIA praised the Plan’s call for software compliance throughout the federal government, while expressing our disappointment that it does not address digital content compliance, which is an equal challenge for SIIA members. SIIA also welcomed greater involvement by the Administration in the expansion of domain names by ICANN, which will have far reaching implications for businesses, brands and consumers. Read more on SIIA’s Digital Discourse Blog.

Mobile Privacy Code of Conduct Could Be Finalized Soon

Just around the corner after the July 4th break, the Department of Commerce (DOC) is hopeful to conclude the year-long process to develop a voluntary code of conduct for mobile app privacy. The effort is the first of the multistakeholder initiatives launched by the DOC in 2012 as a major component of a new effort to develop a flexible privacy regime. SIIA is very supportive of the voluntary, multistakeholder approach to privacy because it is more nimble and less prescriptive than a legislative or regulatory approach. To that end, we have been leading participants in the multistakeholder discussions and are hopeful to reach a final code that will serve as an effective model for companies that provide consumer apps to develop “short form” privacy notices for users. Stay tuned!

SIIA Cautions about Scope of New Cybercrime Legislation

Last week, legislation was introduced in the House and Senate that would weaken the Computer Fraud and Abuse Act (CFAA), a long standing law that is critical to software and digital content companies to protect their networks and the intellectual property in their products and services. While the bill is well intended and seeks to address real concerns, SIIA reiterated our concerns with CFAA reform proposals that the proper fix is to clarify the prosecutorial guidelines, not a wholesale rewriting and weakening of the underlying statute. SIIA believes that the better way forward for Congress is to wait a Supreme Court clarification and then see if further legislative revisions are necessary. In the meantime, the Justice Department can address any concerns about prosecutorial overreach through improved guidelines. Read more on SIIA’s Digital Discourse Blog.

FTC Joins the Fight against Patent Trolls as Lawsuits Expand Beyond Tech

Also last week, FTC Chairwoman Edith Ramirez declared in a speech that, “PAE lawsuits are no longer filed primarily against IT firms. Retailers and financial services providers that incorporate software into their products and services are now common targets.” Ramirez went on to explain that the FTC is “on the watch for PAEs that target small businesses with false claims made to induce the payment of illegitimate licensing fees. This would include telling a small business that it owes money to a PAE for a patent license when the PAE has no ownership interest in, or standing to assert, any patent rights; has only an expired patent; or makes false threats of litigation.” The Chairwoman’s remarks are a welcome sign that the FTC remains committed to the battle against patent trolls, and this is a valuable reminder that they have an integral role to play.


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.

Now is Not the Time to Weaken the Nation’s Cybercrime Laws

Today, legislation is being introduced in the House and Senate that would weaken the Computer Fraud and Abuse Act (CFAA), a long standing law that is critical to software and digital content companies to protect their networks and the intellectual property in their products and services.  The intent of the proposal is to reign in the possibly overzealous use of this statute by U.S. prosecutors in some recent cases, including the case that led to the tragic suicide of Aaron Swartz.  While the bill is well intended and seeks to address real concerns, the proper fix is to clarify the prosecutorial guidelines, not a wholesale rewriting and weakening of the underlying statute.

U.S. companies and law enforcement agencies use the CFAA as the primary Federal anti-hacking law to protect billions of dollars of research and development that is under constant threat from hackers, organized criminal syndicates, and theft from competitors and foreign governments.  Other statutes are difficult to enforce and simply do not provide the same level of legal protection.

The weakening of the statute is especially problematic at this point because of the uptick in attacks on computer systems of U.S. corporations with the aim of stealing valuable intellectual property.  In fact, Booz Allen Hamilton recently provided a report revealing that “corporate IP is under constant assault.” Achieving substantial international consensus and coordination to fight this has become a matter of significant U.S. diplomacy.  Why at this crucial point would Congress want to cut back on the legal weapons we use to combat this plague?

Of course, there are different court interpretations of the statute. The ninth district reads it one way; the fourth district reads it another way.  Sooner or later, the different judicial outcomes will have to be sorted out by the Supreme Court, but none of the court decisions gut the statute in the way that the bill introduced today would.

The better way forward for Congress is to wait for this Supreme Court clarification and then see if further legislative revisions are necessary.  In the meantime, the Justice Department can address any concerns about prosecutorial overreach through improved guidelines.  But wholesale weakening of the Act takes U.S. cybercrime policy in the opposite direction, as it gives the green light to criminal at a time when we should be united in the stand against international computer crimes.


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.