Issues

We Need To Talk About Security On The Internet Of Things

By: Tim Sparapani

Some horrifying stories surfaced recently about glaring data security vulnerabilities for the Internet of Things. A company called Shodan, which is a search engine for connected devices, has had no trouble pulling up video camera feeds of sleeping babies, marijuana plants and schoolrooms. The site found insecure connections for everything from traffic lights to ice rinks. Those gaps are a hacker’s playground, and they should worry consumers and companies hoping to capitalize on the market for Internet-connected devices of all kinds.

By collecting data from things like lightbulbs, factories and home appliances, engineers will be able to design endless apps to make things work more efficiently, saving energy and water while preventing equipment failure. That’s the essential promise of the Internet of Things (IoT) era. Thanks to the burgeoning IoT economy, we’re on the verge of having self-driving cars and appliances that tell us that their parts are about to fail.

But right now, that bright future looks a little dim. Security is paramount, and if manufacturers don’t take steps to assure the public that their devices are secure, that revolution will be delayed.

Perhaps because IoT devices are to date opaque — after all, there’s no interface for a lightbulb with sensors embedded in it — consumers haven’t been overly concerned about safety issues. Since this is still a relatively new industry, things like price and convenience have taken priority. We are in a type of technology limbo where we are learning that securing the data collected by these devices is essential, yet too few manufacturers have implemented robust data security protections for these devices.

But it will take just a few high-profile hacks to change that. Say, for example, all of the traffic lights in a big city suddenly went red at the same time and stayed that way. Or all of the lightbulbs linked to a given system went on in the middle of the night. An event like that would be enough to potentially scare people away from the IoT.

Read the full article here. 

Risks in Forcing Apple to Comply With Order to Unlock Phone Linked to San Bernardino Attack

By: Tim Sparapani

A federal judge’s order to help the Justice Department unlock a phone used by a suspect in the San Bernardino, Calif., shootings has put unprecedented pressure on Apple. In a letter to customers detailing the company’s opposition, Apple CEO Tim Cook noted that there are “implications far beyond the legal case at hand.” Yes, the owner of the phone–Syed Rizwan Farook‘s former employer–has given permission to search the device. But those who view the case as a potential means to combat the threat of terrorism are missing its threat to liberty, its potentially dangerous precedent, and the fallout to technological security. Consider:

Apple has said it complied with government search warrants and subpoenas. The Justice Department’s motion for Apple to disable particular security features on the phone presses the company to reformulate its operating software so that U.S. investigators can learn whether Mr. Farook used the iPhone to communicate with others about the November shootings. Forcing companies to create technologies to break their operating systems or override security features creates an after-the-incident forensic tool to figure out what may have happened. This does not actually deter or prevent terrorism. People determined to carry out attacks will continue to do so. They will simply use the encrypted products and devices sold by companies based outside the U.S. or other countries whose governments pry open their devices. At the same time, security protections for all consumers of those products will be weakened.

Such a move would set a dangerous international precedent. If the U.S. government forces Apple to undermine its technology there will be no means for companies to take a principled stand when rogue regimes, dictatorships, oligarchs, and other bad actors around the world make a similar request. One nation’s terrorist is another’s journalist. Or reformer, or freedom fighter, or rights advocate. In the wrong hands, the implications could extend to instances regarding human life, free speech, privacy, and other fundamental human rights around the globe.

In the immediate and long term, there is also a malware risk. Forcing Apple to reformulate its operating system is all but asking for the introduction of a bug, flaw, or defect–those forced upon companies by governments and those introduced through the vulnerabilities created by criminal hackers, identity thieves, and the government-sponsored spies of foreign nations.

Read the full article here. 

U.S. Supreme Court Should Clarify the Law of Design Patents

By: Tim Sparapani

It’s been 120 years since the US Supreme Court last heard a case regarding design patents. Now it has the opportunity to do so again, and it should, because technology has advanced yet the interpretation of laws protecting innovations has become ill fitting and out of date.

Samsung recently agreed to pay $548 million in damages to Apple following several appeals regarding claims that Samsung infringed on some of Apple’s design patents. Samsung has petitioned the U.S. Supreme Court to review the case and address the issues it raises that extend well beyond smartphones.

This legal clash of tech titans over whether Samsung infringed Apple’s design patents spawned extended debate over what is protected by a design patent and may lead – if the dispute is reviewed and precedent set – to a more solid framework for design patent protections and dispute resolution clarity in future cases.

For more than five years, these companies slugged it out concerning the limitations of design patents, how to determine whether patented designs were infringed, and the proper remedies.  The case is notable, not just because of the size and importance of these companies, but also because of the precedents that this case sets for our digital age when hardware and software are merging together in novel and unforeseen ways.

Rarely are cases so well teed up for the Supreme Court to offer crucial guidance in an area of law that has become so muddled.  Given the extensive motions, trials, remands and appeals between Apple and Samsung this case seems primed for Supreme Court review because the legal issues have been highly refined allowing the Court to issue narrow decisions on legal grounds that nevertheless have broad impact.

Read the full article here. 

Raising Music Royalties Takes A Toll On Innovation

By: Mike Montgomery

2016 has started out on a sour note for Live365. The online radio service, which specializes in user-curated music, announced that it has had to lay off a significant portion of its staff and will likely shut down later this year.

The reason: A decision by the Copyright Royalty Board to raise the rates non-interactive Internet streaming services like Pandora have to pay for the right to spin music. In December, the board raised the rate from 14 cents per 100 plays to 17 cents.

Three cents is trivial, right? Not exactly. It might not sound like a lot of money, but for small Internet streamers like Live365, it’s the difference between survival and ruin. It’s hard enough to run a business when 50% or more of a non-interactive streaming company’s revenues go toward royalty payments. It’s even more challenging when what’s left over can’t be reinvested into innovation or marketing in order to enhance the customer experience or grow the listener base through marketing and promotions.

Live365 isn’t the only victim of the CRB’s decision. SmoothJazzChicago, a site run by radio vet Rick O’Dell, is also shutting down. O’Dell cited the new royalty rates as one of the main reason he’s turning off the lights.

While the rate hike certainly harms the bigger players, it’s devastating to a whole tier of streaming companies that either serve niche audiences or were just getting off of the ground. There’s no doubt it’s also affecting the army of entrepreneurs in Silicon Valley and elsewhere who are currently hard at work on the next big thing for Internet music, not to mention the venture capital that will instead go toward startups that don’t have to give away the lion’s share of their revenue in order to avoid collapse.

Read the full article here.

Will two privacy cops on the same block be one too many?

By Tim Sparapani:

Late last year in Washington something of consequence happened: Two federal agencies decided to jointly regulate consumer privacy issues. And just this week, dozens of consumer and privacy advocates are pushing one of those agencies – the Federal Communications Commission – to vigorously enforce consumer privacy rights.

Given the turf-conscious nature of Washington, the success of last year’s unusual agreement is deserving of critical review. There are high stakes for American consumers who expect privacy violations to be policed properly. For businesses in the converging communications, Internet, and app spaces that rely on their ability to use customer data, doubling the number of privacy cops could create significant headaches.

Traditionally, the Federal Trade Commission (FTC) has been the lead agency for consumer privacy issues. The U.S. has a handful of consumer privacy laws that are sector- or industry-specific. For example, there are statutes on the books that provide authority to regulate the data of health care patients, students and minors. For nearly everything else the FTC has a sort of catch-all consumer privacy enforcement authority not authorized by statute but built up principally over the last 25 years through a series of policy pronouncements and enforcement actions against companies. The FTC uses its core power to police unfair or deceptive trade practices when companies do not live up to their own statements concerning, and promises regarding, their collection, sharing, usage and protection of their customers’ personally identifiable information. Unless a separate privacy statute grants regulatory authority to a different federal agency, the FTC has assumed it is the privacy cop on the beat.

Read the full article here.

Two Is Not Better Than One: The FTC And FCC Join Forces On Privacy

By Tim Sparapani:

At the recent Consumer Electronics Show (CES) in Las Vegas, there was plenty of high-tech gadgetry on display — from virtual-reality goggles to the latest incarnation of the hoverboard. But one of the hottest tickets was an hour-long conversation with a couple of D.C. wonks.

CES President Gary Shapiro hosted back-to-back fireside chats with Federal Communications Commission (FCC ) Chairman Tom Wheeler and Federal Trade Commission (FTC) Chairwoman Edith Ramirez to discuss consumer privacy. It’s a topic that has tech executives grinding their teeth in frustration.

Thanks to a recent memorandum of understanding triggered by the Open Internet Order (“Order”) and signed by the two agencies, there are now two cops on the privacy beat.

The order redrew privacy turf when the FCC finalized it this spring. The main purpose of the order was to classify the Internet as a utility under Title II of the Communications Act in the interest of cementing net neutrality. What most of the mainstream press didn’t pick up on at the time was that the order also greatly expanded the FCC’s authority to investigate and enforce perceived privacy violations by broadband companies.

Read the full article here.

TV’s App-Based Future Is At Risk

By: Tim Sparapani

Today, we are closer than ever to that dreamy, sci-fi-ish reality of being able to watch anything we want, whenever we want, wherever we want on the device of our choosing. Services like Netflix NFLX -3.39%, Amazon and Hulu (also known as online video distributors, or OVDs) have made apps the norm for streaming video. And thanks to apps from pay-TV providers, and from programmers like DirecTV’s Sunday Ticket, HBO GO, WatchESPN and FXNOW, many “TV” viewers can use their cable, satellite or IPTV subscriptions to watch shows on any device in any way they like.

So what exactly is broken about this system? Most viewers would say nothing. There’s fantastic content available 24/7, and it’s more convenient than ever to consume. This sounds like a complete win for consumers in an era that is undoubtedly television’s golden age 2.0.

The emergence of the iPhone ushered in the era of the app, which was heartily embraced by consumers. We now live in an app-based society where the majority of our lives happen online. Food delivery via telephone has gone the way of the dodo; today we can push a few buttons and order from Postmates or DoorDash instead. No longer do we need to stand on a street corner and flag a taxi, as Uber and Lyft have got us covered. If you’re a music fan, nearly gone are the days of buying and spinning CDs; today a slew of apps stream your favorite artists or help you discover new ones. And television is becoming no different. There is a way to deliver television content without the need for a box. Even Apple AAPL -2.86%’s Tim Cook calls apps “the future of television.”

Read the full article here.

As the Future of Music Streaming is Decided, Americans Say that Labels and Industry Groups Should Get Smaller Piece of Revenue Pie

SAN FRANCISCO, Dec. 15, 2015 /PRNewswire-USNewswire/ — As the Copyright Royalty Board prepares to weigh in on the future of online music royalty rates, by a 4-1 ratio Americans think that labels and industry groups should get a smaller piece of the revenue pie according to a new CALinnovates survey.

The survey of 1,092 Americans found that 53 percent believe that “labels and industry groups should get a smaller slice of the pie so the artists and streaming companies can make a living.” That is compared to only 12 percent of Americans who said, “streaming companies should be forced to pay more so that the labels and industry groups can keep their share.”

At stake with the pending Copyright Royalty Board is how revenues from online music should be divvied up. Music labels and performing rights organizations have argued that streaming companies should have to pay more, while others have argued that the labels and industry groups should loosen their hold on the industry so that streaming companies can continue to innovate, which will benefit the entire music ecosystem.

One thing is clear: Americans want to see songwriters and artists get paid. 78 percent said musicians should make the most money from the sale of streaming music. They also put the labels and industry groups last in the order of priority: only 9 percent believe they should make the most money from streaming music.

Read the full article here.