I participated last week in a Techdirt webinar titled, “What IT needs to know about Law.”  (You can read Dennis Yang’s summary here, or follow his link to watch the full one-hour discussion.  Free registration required.)

The key message of  The Laws of Disruption is that IT and other executives need to know a great deal about law—and more all the time.  And Techdirt does an admirable job of reporting the latest breakdowns between innovation and regulation on a daily basis.  So I was happy to participate.

Legally-Defensible Security

Not surprisingly, there were far too many topics to cover in a single seminar, so we decided to focus narrowly on just one:  potential legal liability when data security is breached, whether through negligence (lost laptop) or the criminal act of a third party (hacking attacks).  We were fortunate to have as the main presenter David Navetta, founding partner with The Information Law Group, who had recently written an excellent article on what he calls “legally-defensible security” practices.

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For the past month, online companies have considered the privacy legislation discussion draft from Rep. Boucher and Stearns. The legislation is a broad attempt to set privacy defaults for the collection, use and sharing of information on the Internet.

Last Friday, NetChoice submitted comments to Rep. Boucher and Stearns.

While there are some aspects of the bill to like (eg. no private right of action), we’re worried that the bill does too much, too soon, to set opt-in or opt-out defaults. We explored in a previous post why flexibility in setting user defaults is important for continued social network innovation.

Fortunately, open and thoughtful consideration of this matter can continue without undue pressures to find a quick fix for privacy. Because while there have been state legislative proposals on privacy, there is not now a patchwork of state laws creating unworkable compliance challenges for interstate e-commerce. In other words, we can take our time and get this right.

Our comments discuss how the draft bill would interfere with four commonplace scenarios for collecting and using information. Here’s one of ’em:

1. The Operational Purpose exemption in this draft legislation is too narrow, in that it does not permit use of covered information for marketing or advertising to existing customers.

Case 1: A consumer buys a new washer and dryer and writes her email address on a product registration card. That’s an Operational Purpose, so no consent is required to collect the info.

But if the retailer later wants to send an email offering an extended service contract, he has to first obtain consent to send the email, since that’s a use of covered information for marketing purposes.

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Nicholas Carr, bestselling author who writes on the social, economic, and business implications of technology, discusses his new book, The Shallows: What the Internet Is Doing to Our Brains.  Carr posits that the internet is changing not only they way we consume information but also the biological and neurological workings of our brains.  He addresses the internet’s effect on attention span and the ability to think deeply, neuroplasticity, multitasking, reading books v. snippets, Google, commonplaces, and much more.

Related Readings

Do check out the interview, and consider subscribing to the show on iTunes. Past guests have included Gina Trapani and Anil Dash on crowdsourcing, James Grimmelman on online harassment and the Google Books case, Michael Geist on ACTA, Tom Hazlett on spectrum reform, and Tyler Cowen on just about everything.

Coming up in next two episodes we’ll have Nick Carr and Clay Shirky discussing their new books. So what are you waiting for? Subscribe!

State governments are getting bolder about diverting funds intended to maintain and modernize 911 emergency calling systems for other uses.

As states face greater budget gaps spurred by reckless spending and unsustainable obligations to the public sector employees, legislatures have been turning everywhere for extra cash. The 911 surcharge that appears on most consumer phone bills is no exception.

Originally, 911 fees were supposed to be used exclusively to fund 911 calling centers and the training of operators, the primary rationale behind the decision to assess the fees on phone bills. Instead, 911 money is being funneled elsewhere, sometimes for other law enforcement needs like weapons, vehicles and uniforms; sometimes for cost and services that arguably should be funded from general revenues. In New York State, for instance, of the $600 million collected from 911 fees in the past 15 years, just $84 million—14 percent—was used for municipal 911 center operation, according to a Buffalo News report cited by Emergency Management magazine.

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I spend a lot of time here trying to debunk media “moral panics,” “techno-panics,” or unfounded hysteria over the impact of commercialism in general on kids. To believe what some politicians and regulatory agitators have to say, today’s youth always seem at the precipice of the moral abyss.  Our misguided youth are seemingly all going straight to hell and they dragging our culture and society down with them.

Except they’re not. It’s all the same old tripe we’ve heard one generation after another.  As the late University of North Carolina journalism professor Margaret A. Blanchard once noted: “[P]arents and grandparents who lead the efforts to cleanse today’s society seem to forget that they survived alleged attacks on their morals by different media when they were children. Each generation’s adults either lose faith in the ability of their young people to do the same or they become convinced that the dangers facing the new generation are much more substantial than the ones they faced as children.” And Thomas Hine, author of The Rise and Fall of the American Teenager, argues that: “We seem to have moved, without skipping a beat, from blaming our parents for the ills of society to blaming our children. We want them to embody virtues we only rarely practice. We want them to eschew habits we’ve never managed to break.”

Anyway, I was reminded of this again today as I was finally reading through a report published last year by the U.K.’s Department for Children, Schools and Families and the Department for Culture, Media and Sport. It’s entitled “The Impact of the Commercial World on Children’s Wellbeing” and it is very much worth your attention. Several people had recommended I check it out in recent months, but I’m ashamed to say I am only now getting around to it as I prepare an amicus brief for the Supreme Court’s review of a California video game law.  But this U.K. report is not to be missed. Here are a few of the choice bits from the study: Continue reading →

The Contract From America is a very interesting political document, seeking to rally people around a set of policies that—unlike the Contract With America from years ago—was generated from the bottom up.

On the WashingtonWatch.com blog, I’ve been assessing the ten items in the Contract From America. The Tea Party movement stands for a lot of ideas in a lot of people’s minds. Here’s a chance to see what substantive policies are important to a large cross-section of this political movement.

Don Kellogg, Senior Manager, Research and Insights/Telecom Practice at The Nielsen Company, has a interesting essay up over at the Nielsen Wire about smartphone competition. (“iPhone vs. Android“)  It includes some updated quarterly data about the state of the mobile marketplace and, once again, I am just blown away at the continuing degree of operating system (OS)-level competition.

As I have noted here before, this war among Apple, Google, Microsoft, RIM (Blackberry), Palm, Symbian, and others has actually forced me to ask if we have “Too Much Platform Competition” in this arena. App developers must now craft their offerings for so many platforms that it has become a significant developmental hassle and expense. But hey, from a consumer perspective, this is great!  (For more details, see Berin’s post on “The Fiercely Competitive Mobile OS & Device Markets.”)

Regardless, it’s still more proof that all the hand-wringing here in Washington about the state of wireless innovation is completely unfounded.  It is shocking that we have this many developer platforms in play in the smartphone sector and I am still of the belief that things will eventually shake out to just 3 major OSs. So I don’t expect this degree of competition to last.  But that’s OK, we can still have plenty of competition and innovation with fewer OSs.

The Online Safety and Technology Working Group (OSTWG) has just released its final report to Congress entitled, “Youth Safety on a Living Internet.”  As I mentioned here last year, this government task force was established by the “Protecting Children in the 21st Century Act,” (part of the ‘‘Broadband Data Improvement Act’,’ Pub. L. No. 110-385) and its mission was to review and evaluate:

  • The status of industry efforts to promote online safety through educational efforts, parental control technology, blocking and filtering software, age-appropriate labels for content or other technologies or initiatives designed to promote a safe online environment for children;
  • The status of industry efforts to promote online safety among providers of electronic communications services and remote computing services by reporting apparent child pornography, including any obstacles to such reporting;
  • The practices of electronic communications service providers and remote computing service providers related to record retention in connection with crimes against children; and,
  • The development of technologies to help parents shield their children from inappropriate material on the Internet.

The task force included over 30 experts from academia, industry, advocacy groups, and think tanks. It was my great honor to be a member of OSTWG and to serve as the chair of 1 of the 4 subcommittees. The four subcommittees addressed: data retention, child pornography reporting, educational efforts, and parental controls technologies. I chaired that last subcommittee on parental controls.

Our conclusions will not be surprising to those who have read previous online safety task force reports, which I have summarized in 2009 white paper, “Five Online Safety Task Forces Agree: Education, Empowerment & Self-Regulation Are the Answer.”  Generally speaking, we concluded that there is no silver-bullet technical solution to online child safety concerns. Instead – and again in agreement with previous research and task force reports – we have concluded that a diverse toolbox and a “layered approach” must be brought to bear on these problems and concerns. Here’s how we put it in the report:

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Companies often promote consistent and reliable customer experiences. KLM touts itself as “the reliable airline” while Michelin touts its dependability “because so much is riding on your tires.” And now we have Yahoo, who announced that it will be increasing the social networking functionality in Yahoo Mail. Yahoo has the ability to promote consistency in determining user defaults for sharing information.

But social networking is a product much different than most – it is participatory. Passengers can’t fly airplanes and drivers don’t design tire tread, but social networking users control what and with whom they share information.

So what happens when a social networking service changes functionality or adds new features? How does a company be consistent in carrying-over a user’s preference from the prior version to the new one? What assumptions should it make on user privacy preferences for new features?

These considerations matter whenever an online service tries to increase its social networking functionality. Last week, Facebook unveiled new privacy controls, and we blogged that it was a welcome response to clear-up confusion. In the coming weeks Yahoo will change how status updates work in Yahoo Mail. Michael Arrington’s TechCrunch article describes it well:

[C]urrently to see status updates for others in Yahoo Mail, you have to have a mutual follow, meaning both people have agreed to be “friends.” You can then see that user’s Yahoo status updates as well as updates on third party services that they have added to their Yahoo profile as well. In the new version there will no longer be a requirement for a mutual follow. So, like on Twitter, users can follow whomever they choose. This isn’t actually a dramatic change for Yahoo, since users can follow others in this way already on Yahoo Messenger.

Like Google and Facebook before it, Yahoo is adding features to make its service more “social.” And because of the scrutiny over the changes by Google and Facebook, Yahoo seems to be going out of its way to assure users that they can rely and depend on Yahoo. According to the Yahoo Corporate Blog: Continue reading →

As I’ve noted here before, the Federal Trade Commission (FTC) has an ongoing proceeding asking “How Will Journalism Survive the Internet Age?” The agency has hosted two workshops on the issue and a third is scheduled for June 15th at the National Press Club. Recently, the FTC released a 47-page staff discussion draft entitled “Potential Policy Recommendations to Support the Reinvention of Journalism,” which outlines dozens of proposals that have been set forth in recent years to “save journalism,” “reinvent media,” or support various forms of so-called “public interest programming.”  [I’ve embedded the document down below.] Although the FTC makes it very clear on the first page of the discussion draft that it “does not represent final conclusions or recommendations by the Commission or FTC staff [and] it is solely for purposes of discussion,” the document is drawing scrutiny and raising concern since it might foreshadow where the FTC (and Obama Administration) could be heading on this front.

Some of those raising a stink about the FTC draft include: Jeff Jarvis (“FTC Protects Journalism’s Past“); Rob Port (“Federal Government Considering “iPad Tax” To Subsidize Journalism“); Mark Tapscott: “(Will Journalists Wake up in Time to Save Journalism from Obama’s FTC?”); and Andrew Malcolm of the Los Angeles Times (“Obama’s FTC Plan to Reinvent America’s News Media“), who says, “this FTC study is rated R for anyone who thinks the federal government, the object of copious news coverage itself, has no business deciding which sectors of the private media business survive and thrive through its support, subsidies and encouragement with things like tax incentives. Yet that’s what this Obama administration paper is suggesting as another of the ex-community organizer’s galactic reform plans.”   Ouch!

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