How to Keep the World Safe for Data Driven Innovation and Cross Border Data Flows

In a major address to the German Marshall Fund yesterday, outgoing Commerce Department General Counsel Cameron Kerry brought some refreshing clarity to the current discussions of privacy and government surveillance.

He started in the right place with a ringing endorsement of the progressive use of big data as a tool for economic and social improvement.  He referred favorably to “breakthroughs in medical research from aggregated health care records that can produce information far more robust than the limited populations of medical trials,” and cited a recent example:    

“The drug Herceptin was developed through identification of the HER-2 oncogene from records of 9,000 breast cancer patients. IBM is working with hospitals and the IBM-WATSON natural language system to collect anonymized medical records in ways that protect privacy and analyze unstructured data applying the power of new analytic technologies across many different text-based medical records previously unintelligible to computers.”

As SIIA noted in a recent whitepaper, the seamless flow of data across borders is important to the growth of data-driven innovation and the global economy. Kerry underscored the economic importance of cross-border data flow:

 “Trans-border trade – and especially transatlantic trade – now relies on the continued open flow of data, and cutting off these flows would cause significant and immediate economic damage. Moreover, it would lead to loss of competitiveness on both sides as other economies around the world that embrace open Internet architectures and freedom to experiment with data analytics offer havens for innovators. Our economic future is at stake in our international engagement.”

Then he noted the importance to transatlantic trade of the Safe Harbor arrangement that has governed transfers of information from the European Union to the United States for well over a decade. He warned of the dangers a weakening of this framework would pose to transatlantic trade:

“Today, more than 4,000 companies have subscribed to the Safe Harbor Framework. Many of these are U.S. subsidiaries of EU companies that also rely on the framework…Safe Harbor is a fundamental building block of the trade relationship between the United States and Europe…Any step back from Safe Harbor would send the trading relationship between the U.S. and the EU backward.”

This worry about a threat to the Safe Harbor Framework is not idle. On July 19, 2013 Viviane Reding, European Commission Vice President, issued a statement  saying, “The Safe Harbour agreement may not be so safe after all.” On July 24, 2013, a statement from the Conference of German Data Protection Commissioners indicated that it would examine whether transatlantic data transfers “should be suspended on the basis of the Safe Harbour framework.” 

The basis for this threat to the Safe Harbor in both cases is the NSA revelations regarding government surveillance–but this is mixing up apples and oranges.

The EU Data Protection Directive and the Safe Harbor both provide an exception for national security purposes.  In the US and EU regime, the law, regulation, and policy considerations that relate to protecting consumer privacy in a commercial context are completely different from the law and policy and constitutional considerations that govern government surveillance. 

Moreover, putting onerous burdens on the commercial transfer of information as a backdoor way to control government surveillance is self-defeating and counterproductive.  It distracts from real measures that might protect citizens from overly intrusive government surveillance and it puts an unnecessary burden on commerce that is not justified by the need to preserve and protect consumer privacy in a commercial context.

Kerry’s remarks yesterday show he grasps these issues clearly.  It might have been his last public statement before leaving his current post at the Commerce Department, but it sets a promising roadmap for Obama administration policy in this area.


Mark MacCarthy, Vice President, Public Policy at SIIA, directs SIIA’s public policy initiatives in the areas of intellectual property enforcement, information privacy, cybersecurity, cloud computing and the promotion of educational technology. Follow the SIIA Public Policy team on Twitter at @Mark_MacCarthy

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.

ATP Tour Uses Big Data to Draw More Fan Interest in Tennis

As any sports fan can tell you there are thousands of statistics about their favorite players, sports, and tournaments.  These statistics are used to tell a story throughout the course of a season or career to help them justify to their friends why Jerry Rice is not only the best wide receiver ever but rather the best player in NFL history or how LeBron James is a better player than Michael Jordan or why the Ohio State Buckeyes were a better team than the University of Alabama last college football season even though Alabama won the National Championship.   Another term that could be used instead of statistics to prove these points is data. 

Over the past decade you have seen sports such as baseball and the success of “Moneyball” where teams used large amounts of data to find undervalued players and sign them in order to compete more successfully against teams with more money.  Over this time many professional sports leagues have used types of data analytics to increase and maintain fan support of the league by making their sport more exciting and interactive to fans because they are now able to explain the why of how a specific team or player is better and not just the what using math and patterns.  Now the Association of Tennis Professionals (ATP) Tour is getting in on the action by partnering with IBM at their Grand Slam tournaments

The ATP and IBM are doing this by creating an analytics tool called SlamTracker, which allows for 8 years of data and 41million data points per match to be used and analyzed.  This information is available for players, coaches, broadcasters, and fans to use to help them figure out where they need to improve their game, what are the most important things to determining who will win a match, or why a specific player is better and not just that they are.  According to the data SlamTracker has collected the reason Rafael Nadal is so dominant on clay is because his serve to the ad side on that surface is the single hardest shot to hit (based on the math) in all of tennis due to the small window there is for an opponent to return it.  At the same time the reason Novak Djokovic had the best possible chance at beating Nadal of the entire field is because he is the best at hitting a high bouncing back hand return.  Look for SlamTracker to again be used during Wimbledon later this month.  By using SlamTracker and all of the data that is accumulated during matches the ATP is able to enhance the experience of the sport for both the players and fans and is an excellent example of the real world uses of Data Driven Innovation (DDI).

Ken WaschDenys Emmert is the Public Policy intern at SIIA. He has a degree in marketing and political science from Florida State University.

Data Driven Innovation Case Study: Intuit-Empowering Small Businesses with Data

Data-Driven Innovation (DDI) benefits all sectors of our economy, increases efficiency, saves money and resources, and improves quality of life. From safety and security, to the environment and infrastructure, to health and education, the opportunities for DDI to improve our lives are boundless. In SIIA’s recent whitepaper, Data-Driven Innovation A Guide for Policymakers: Understanding and Enabling the Economic and Social Value of Data, we explored the ways our member companies are leveraging data to provide cutting edge solutions. Here’s one case study, from Intuit.

Running a small business is a lonely job at times. Key business decisions are too often made in a vacuum, without access to pertinent data. In this new era of big data, Intuit is working to give small businesses powerful, data-driven insights once only available to much larger businesses.

The Trends feature in Intuit’s QuickBooksOnline empowers small businesses to benefit from the power of their own data as well as the collective wisdom of fellow Intuit customers. Trends anonymously aggregates customer data, allowing small businesses to see how their income and expenses stack up against similar businesses. For example, a roofer in Philadelphia grossing $250,000 a year can compare results with other roofers in the area or across the country. Is that revenue good or bad? Is five percent growth normal or better than companies in your area like you? With Intuit Trends, small businesses can now answer those questions in seconds.

An Intuit customer in Illinois uses Trends to see how his consulting firm’s expenses compare to others in his industry. The business can easily recognize if it needs to continue to increase its profit margins and reduce costs to stay competitive. Trends make it easy for them to stay aware of what is going on in the industry and make key business decisions.

Data Driven Innovation Case Study: University of Ontario Institute of Technology-Leveraging Data to Improve Patient Outcomes

Data-Driven Innovation (DDI) benefits all sectors of our economy, increases efficiency, saves money and resources, and improves quality of life. From safety and security, to the environment and infrastructure, to health and education, the opportunities for DDI to improve our lives are boundless. In SIIA’s recent whitepaper, Data-Driven Innovation A Guide for Policymakers: Understanding and Enabling the Economic and Social Value of Data, we explored the ways our member companies are leveraging data to provide cutting edge solutions. Here’s one case study, from the University of Ontario Institute of Technology.

The rapid advance of medical monitoring technology has done wonders to improve patient outcomes. Today, patients are routinely connected to equipment that continuously monitors vital signs such as blood pressure, heart rate and temperature. The equipment issues an alert when any vital sign goes out of the normal range, prompting hospital staff to take action immediately, but many life-threatening conditions do not reach critical level right away. Often, signs that something is wrong begin to appear long before the situation becomes serious, and even a skilled and experienced nurse or physician might not be able to spot and interpret these trends in time to avoid serious complications.

Project Artemis, part of IBM’s First-of-a-Kind pro-gram which pairs IBM’s scientists with clients to explore how emerging technologies, can solve real-world business problems. The system captured the data stream from bedside monitors and processed it using algorithms designed to spot the telltale signs of nosocomial infection. The truly significant aspect of the Project Artemis approach is how it brings human knowledge and expertise together with device-generated data to produce a better result. The system’s outputs are based on algorithms developed as collaboration between the clinicians themselves and programmers. The algorithm concept is the essential difference between the Artemis system and the existing alarms built into bedside monitors.

The flexibility of the platform means that in the future, any condition that can be detected through subtle changes in the underlying data streams can be the target of the system’s early-warning capabilities. Also, since it depends only on the availability of a data stream, it holds the potential for use outside the ICU and even outside the hospital. For example, the use of remote sensors and wireless connectivity would allow the system to monitor patients wherever they are, while still pro-viding life-saving alerts in near-real time.

Data Driven Innovation Case Study: Scripps Health-Assessing Patient Data to Improve Emergency Rooms

Data-Driven Innovation (DDI) benefits all sectors of our economy, increases efficiency, saves money and resources, and improves quality of life. From safety and security, to the environment and infrastructure, to health and education, the opportunities for DDI to improve our lives are boundless. In SIIA’s recent whitepaper, Data-Driven Innovation A Guide for Policymakers: Understanding and Enabling the Economic and Social Value of Data, we explored the ways our member companies are leveraging data to provide cutting edge solutions. Here’s one case study, from Scripps Health.

Scripps Health, a nonprofit community health system, innovative and patient-focused process that has virtually eliminated wait times and has changed the way the hospital delivers care to patients seeking treatment in the emergency department at multiple campuses. Scripps is changing its culture from one in which quality is measured almost entirely by the performance of physicians, to one in which quality is measured by the performance of the processes, systems and teams that support them. They don’t want physicians to be exclusively responsible for quality, but for quality to be measured by the team.

To inform its approach to these changes, Scripps collected and analyzed variation data, or information about whether a particular process was in control. For example, in anticipation of re-engineering its emergency room procedures, Scripps collected and analyzed massive amounts of data on wait times and cross-referenced the information against the type of injury, tests that were ordered and how long it took to discharge the patient. Then they did extensive simulation of our processes using real-life data, modeling how new and different processes might work.

Scripps found that the triage process added an unnecessary and wasteful step in getting patients from the door to a doctor. It was adding time and cost to the system, and not adding significant value. So the company eliminated it. They reduced the critical door-to-doctor time, add capacity to our emergency rooms and improve the quality of our service. As they build a new hospital, Scripps Health is looking into whether they even need to build a waiting room in the ER.

Data Driven Innovation Case Study: Memphis PD-Policing Smarter, Not Harder

Data-Driven Innovation (DDI) benefits all sectors of our economy, increases efficiency, saves money and resources, and improves quality of life. From safety and security, to the environment and infrastructure, to health and education, the opportunities for DDI to improve our lives are boundless. In SIIA’s recent whitepaper, Data-Driven Innovation A Guide for Policymakers: Understanding and Enabling the Economic and Social Value of Data, we explored the ways our member companies are leveraging data to provide cutting edge solutions. Here’s one case study, from the Memphis PD.

Blue CRUSH (Criminal Reduction Utilizing Statistical History) is a data analytical initiative that provides the Memphis Police Department (MPD) the ability to gain an advantage through insight and agility. At the heart of it is a predictive model that incorporates fresh crime data from sources that range from the MPD’s records management system to video cameras monitoring events on the street. In the realm of crime-fighting analytics, there’s a fine line between the “interesting” and the actionable. It is strength in the latter that makes Blue CRUSH stand out from its predecessors. Blue CRUSH lays bare underlying crime trends in the way that promotes an effective fast response, as well as a deeper understanding of the longer-term factors (like abandoned housing) that affect crime trends. It happens at the precinct level. Looking at multilayer maps that show crime hot spots, commanders can see not only current activity levels, but also any shifts in such activities that may have resulted from previous changes in policing deployment and tactics.

At each weekly meeting, commanders go over these results with their officers to judge what worked, what didn’t and how to adjust tactics in the coming week. They might see, for example, how burglaries are down in one ward, but up another, or where thieves are stealing cars in one ward and dumping them in another. What’s striking, says MPD Chief Godwin, is the granularity. “We’re catching this immediately and we’re doing it every day,” he explains. “On short notice, we’re able to shift officers to a particular ward, on a particular day, right down to the shift level. It’s a bit like a chess match and it’s enabling us to make arrests we never could have before.”