COPPA Rulemaking Goes Far Beyond Congressional Intent; Will Harm American Innovation

SIIA today filed comments with the Federal Trade Commission regarding its notice of proposed rulemaking on the Children’s Online Privacy Protection Act (COPPA). SIIA expressed significant concern that the FTC is creating a burdensome regulatory framework that goes well beyond congressional intent.

The FTC’s proposed COPPA rulemaking takes the effort to protect online privacy and turns it into a harmful barrier to American innovation. For years, we’ve worked closely with industry and government to advance online privacy and security. We’re confident that, with smart regulation and public-private cooperation, both the goal of protecting online privacy of children and the goal of business innovation can be served. Unfortunately, what we’re currently seeing from the FTC is an overly broad and unworkable regulatory framework for implementing COPPA.

To read SIIA’s full comments, please click here. In its comments, SIIA states:

“We are supportive of the goals of the Commission to protect children from third-party plug-ins, social networks and any other third party service that collects personal information.

“However, the inappropriately broad expansion of the statute’s definition of personal information, combined with the increasingly broad definitions of ‘operator’ and ‘web site or online service directed to children’… create a broad regulatory framework that dramatically exceeds the scope of COPPA and will most certainly stifle innovative Internet-based offerings-not just for sites and services directed at children under 13, but much more broadly.”

SIIA addresses six specific areas of concern:

1. Expansion of “Personal Information” to include persistent identifiers creates an unworkable regulatory construct.

2. Modification to the rule’s definition of “operator” is overly-broad, and it places an unworkable responsibility on operators of sites and services well beyond the scope of COPPA.

3. Proposal to make third parties qualify as “operators” under COPPA by creating a “reason to know” standards is an inappropriately broad expansion of the statute and impractical.

4. Requirement for operators of “child-friendly mixed audience sites” to take an affirmative step to attain actual knowledge of child users would inappropriately expand the scope of COPPA.

5. Application platforms should not be characterized as “operators” under COPPA, but the Revised NPRM leaves this unclear.

6. The broad regulatory construct proposed in the Revised NPRM is likely to challenge application of COPPA to Internet-based educational materials and services.


Ken WaschKen Wasch is President of SIIA.

SIIA Applauds Senate Resolution Against International Internet Regulation

SIIA applauds the Senate Foreign Relations Committee today for its unanimous passage of a bipartisan Senate Resolution (S. Con. Res. 50) urging the Obama administration to oppose a United Nations proposal that would bring the Internet under unnecessary international governmental control.

Giving the U.N. unprecedented power over Internet governance will open the door for repressive regimes to undermine today’s reality of Internet freedom. It’s no surprise that China and Russia, two countries that have taken extreme steps to tighten governmental control over the Internet, are among those leading the charge to bring the Internet under unnecessary international governmental control. Granting this proposal will hurt individuals and the global economy by granting undue power to governments that seek to undermine Internet freedom and international trade.

We applaud Sen. Marco Rubio and this bipartisan group of senators for vocalizing these concerns. They join esteemed colleagues in the House and industry groups across the country in urging Administration officials to continue working vigorously in opposition to efforts to enact harmful Internet governance reforms at the World Conference on International Telecommunications this December.

We must put the full weight of the United States behind efforts to maintain a global Internet free from unnecessary international governmental control. It is imperative to preserve the successful multi-stakeholder model that governs the Internet today – not only to maintain Internet freedom for the United States but for countries around the world.


Ken WaschKen Wasch is President of SIIA.

SIIA Teams Up with UK Anti-Piracy Organization to Strengthen Global Campaign Against Software Piracy

SIIA today announced that it has forged a new alliance with the Federation Against Software Theft (FAST). The partnership agreement will strengthen anti-piracy operations throughout Europe and the U.S. as SIIA and FAST work together to shut down software pirates and address global intellectual property concerns.

Software piracy is a worldwide epidemic that requires a coordinated and aggressive global solution. SIIA and FAST will work together not only to shut down copyright infringers, but to promote better intellectual property regulation and enforcement.

SIIA conducts the software industry’s most aggressive campaign against software piracy. In the U.S., our work has led to large settlements, convictions and even jail time. With this partnership, SIIA and FAST will gain new resources for fighting software piracy that extends beyond the borders of each group’s home country. Just as software pirates do not operate within traditional geographic borders, neither should the organizations working to put them out of business.

SIIA and FAST have signed a Memorandum of Understanding to formalize their partnership. According to the terms of the agreement, the two organizations will:

• Work together to promote better intellectual property regulation, sharing best practices between the two countries to influence government and policy.
• Support more effective enforcement against those that infringe copyright and IP ownership, with FAST assisting SIIA with corporate and Internet anti-piracy matters taking place within the U.K. or Europe, and SIIA assisting FAST with corporate and Internet anti-piracy matters taking place within the United States.
• Work together with government officials and other policymakers on intellectual property policy matters.
• Collaborate on research and studies that will help identify and shut down software piracy operations worldwide.

The SIIA Anti-Piracy Division conducts a comprehensive, industry-wide campaign to fight software and content piracy. The proactive campaign is premised on the notion that one must balance enforcement with education in order to be effective. The SIIA Internet and Auction Litigation Program aims to educate online buyers and sellers regarding the risks and harm of buying and selling illegal software, while the Corporate Anti-Piracy Program investigates and stops software and content piracy occurring within an organization.

During the last four years, SIIA has filed more than 100 lawsuits in the U.S. against illegal online sellers dealing in counterfeit, OEM, academic, region-specific and other illegal software and publications, as well as organizations illegally using software and content. Defendants have paid millions of dollars in damages, and, in some cases, criminal charges were pursued and defendants sentenced to jail time.

Sources in the U.S. and in Europe can contact SIIA about a company, Web site or online auction seller’s suspicious business practices in three ways:

• E-mail: piracy@siia.net
• Telephone: +1-800-388-7478
• Online: www.siia.net/piracy/report


Ken WaschKen Wasch is President of SIIA.

SIIA Applauds Senate Resolution Opposing International Internet Regulation

SIIA today announced its support of the recent introduction of a bipartisan Senate Resolution (S. Con. Res. 50) opposing efforts to bring the Internet under unnecessary international governmental control.

We applaud Senator Rubio (R-FL) and the bipartisan group of Senators for defending the Web from control by intergovernmental bodies that could threaten today’s reality of Internet freedom. Expanding the control of Intergovernmental bodies could give undue power to governments that seek to undermine Internet freedom and international trade. We need to maintain a global Internet free from unnecessary international governmental control.

Specifically, several countries have offered misguided, potentially harmful Internet governance proposals to be considered at the 2012 World Conference on International Telecommunications that could fundamentally and adversely alter the operation of the Internet. It is imperative to preserve and advance the successful multistakeholder model that governs the Internet today – not only to maintain Internet freedom for the United States but for countries around the world.


Ken WaschKen Wasch is President of SIIA.

SIIA Says Trans-Pacific Partnership Should Promote Cross-Border Flow of Information & Data

SIIA today announced its support for promoting cross-border data flows in the Trans-Pacific Partnership (TPP), which is currently being negotiated. SIIA joined today with the National Foreign Trade Council and other trade associations representing a broad range of U.S. companies in a statement of support and a letter to US Trade Representative Ron Kirk, regarding this major priority for the digital economy.

The Trans-Pacific Partnership presents a vital opportunity to facilitate global e-commerce in the region while improving international efforts to enforce intellectual property rights. As the TPP undergoes its latest round of negotiations, the U.S. should work to ensure that international markets, enterprises and individuals can move and maintain data and information across borders in a reliable and secure manner.

Allowing data to flow seamlessly across borders gives countries the power to fully utilize cloud computing’s potential for cost savings and innovation,” continued Wasch. “We believe that by giving cloud computing room to thrive while also ensuring the effective protection of intellectual property rights, the TPP can enrich the broader regional economy.

Specifically, SIIA urges Ambassador Kirk to prioritize these legally binding commitments as the TPP is negotiated:

• Permit cross-border information flows, while ensuring that privacy and intellectual property rights are protected.
• Allow business enterprises from the TPP parties to transact business through e-commerce platforms without establishing a commercial presence in each country.
• Prohibit localization requirements that call for the use of local computing infrastructure, such as servers, as a condition for doing business or investment in a TPP country or engaging in e-commerce or cross-border trade.


Ken WaschKen Wasch is President of SIIA.

SIIA Applauds House Committee Passage of Legislation Opposing U.N. Regulation of the Internet

SIIA commends today’s unanimous, bipartisan committee passage of a House Resolution (H. Con. Res. 127) opposing efforts to bring the Internet under unnecessary international governmental control.

We applaud the House Energy and Commerce Committee for defending the Web from control by international bodies that could threaten today’s reality of Internet freedom. Expanding U.N. control over the Internet could give undue power to governments that seek to undermine Internet freedom and international trade. We need a global Internet free from unnecessary international governmental control.

Last year, Russia, China, Uzbekistan and Tajikistan proposed a U.N. code of conduct stating that policy authority for Internet-related public issues is the sovereign right of states. While many government agencies, especially law enforcement and national security departments, would agree that their jurisdiction extends to actions on the internet, the real worry is how governments and international agencies that are hostile to Internet freedom could interpret and apply these broad principles. The proposed code of conduct could be used to limit the ability of individuals and firms to exchange legitimate Internet traffic across borders and create significant digital trade barriers.

All countries have benefited from the open, transparent nature of the Internet, and will continue to do so under the current multi-stakeholder approach to Internet governance.


Ken WaschKen Wasch is President of SIIA.

SIIA Welcomes Beginning of NTIA Multistakeholder Privacy Process

SIIA offers its enthusiastic support for the first multistakeholder privacy meeting, announced today by the National Telecommunications and Information Administration (NTIA). The meeting will take place on July 12 and the goal will be to develop a code of conduct to provide transparency in how companies provide applications and interactive services for mobile devices.

Today’s announcement marks the beginning of a multistakeholder process that can contribute significantly to the continuation of interoperable data privacy regimes, including the European Union’s proposed data protection regulations.

SIIA concurs with the Department of Commerce that voluntary, enforceable codes of conduct are the appropriate approach for data privacy protections because they develop faster and provide more flexibility than legislation or regulation.

Continued growth and innovation in the vibrant mobile marketplace depends on consumer confidence in the privacy protections provided by mobile application providers. For this reason, SIIA has been actively working to develop best practices that can help protect personal information while encouraging continued growth and innovation in the mobile marketplace.

In establishing this first multistakeholder process, NTIA was wise to focus on a definable area where stakeholders have begun to collaborate to develop practices, and we look forward to actively participating on behalf of our members and the industry broadly.

View comments SIIA made to NTIA in April here.


Ken WaschKen Wasch is President of SIIA.