Articles by Adam Thierer 
Senior Fellow in Technology & Innovation at the R Street Institute in Washington, DC. Formerly a senior research fellow at the Mercatus Center at George Mason University, President of the Progress & Freedom Foundation, Director of Telecommunications Studies at the Cato Institute, and a Fellow in Economic Policy at the Heritage Foundation.
It’s my pleasure to welcome Carl Gipson as our latest contributor to the Technology Liberation Front.
Carl is the Director for the Center for Small Business, Technology and Telecommunications at Washington Policy Center where he regularly writes about current technology policy issues. He’s also the author of The Fallacy of Network Neutrality, RFID: Balancing Technology and Privacy, Restrict VOIP Regulations to Federal Standards
and more. Carl is also is a voting member of the Telecommunications and I.T. Task Force with the American Legislative Exchange Council. He holds a degree in Political Science from Western Washington University.
We look forward to Carl’s contributions to the TLF and we welcome him to our merry band of cyber-liberty loving radicals!
P.S. You can follow Carl on Twitter here.
The left-leaning Air America Media radio network announced it was ceasing operations immediately today. It had been struggling for many years and appeared headed under many times before before being bailed out by various people. No doubt, many conservatives will rush to claim that the death of Air America is a sign that the political right is resurgent in America and that progressive viewpoints no longer have an audience. But I would beg to differ.
Don’t get me wrong, I was no fan of Air America. But the reality is that over-the-air terrestrial radio is an aging media platform that generally appeals to a more conservative-leaning and religious-oriented audience. That’s the primary reason conservative pundits like Rush Limbaugh and Sean Hannity are so dominant on the dial. Meanwhile, however, progressive voices have flocked to cyberspace and established a strong foothold here with an amazing array of blogs and websites dedicated to advancing their vision. Although conservatives have made some amazing strides online in recent years, they are still struggling to catch up with the likes of The Huffington Post, Daily Kos, and so on.
So, while many on the Right will be licking their chops today giddy with delight about the demise of Air America, the real question is: will they be able to catch up to the Left in cyberspace? Because Rush, Sean and talk radio ain’t gunna be around forever.
Of course, as a libertarian who has never once voted for a Democrat or Republican in my life, I really don’t give a damn who wins. We fans of
real freedom — across-the-board economic and personal freedom, that is — have no media platform to call our own.
This morning at the Newseum in Washington, DC, U.S. Secretary of State Hillary Rodham Clinton delivered remarks on Internet freedom and the future of global free speech and expression. [Transcript is here + video.] It will go down as a historic speech in the field of Internet policy since she drew a bold line in the cyber-sand regarding exactly where the United States stands on global online freedom. Clinton’s answer was unequivocal: “Both the American people and nations that censor the Internet should understand that our government is committed to helping promote Internet freedom.” “The Internet can serve as a great equalizer,” she argued. “By providing people with access to knowledge and potential markets, networks can create opportunities where none exist.”
Unfortunately, however, “the same networks that help organize movements for freedom… can also be hijacked by governments to crush dissent and deny human rights.” Echoing Winston Churchill’s famous “iron curtain” speech, Sec. Clinton argued that “With the spread of these restrictive practices, a new information curtain is descending across much of the world.” She noted that virtual walls are replacing traditional walls in many nations as repressive regimes seek to squash the liberties of their citizenry. That’s why the Administration’s bold stand in favor of online freedom is so essential.
Importantly, Sec. Clinton made it clear that the Obama Administration is ready to commit significant resources to this effort. She said that, over the next year, the State Department plans to work with others to establish a standing effort to promote technology and will invite technologists to help advance the cause through a new “innovation competition” that will promote circumvention technologies and other technologies of freedom. Sec. Clinton also challenged private companies to stand up to censorship globally and challenge foreign governments when they demand controls on the free flow of information or digital technology.
That is particularly important because Secretary Clinton’s speech comes on the heels of the recent news that Google and at least 30 other Internet companies were the victims of cyberattacks in China, which raises profound questions about the future of online freedom and cybersecurity. Sec. Clinton’s remarks will make it clear to online operators that the U.S. government stands prepared to back them up when they challenge the censorial policies of repressive foreign regimes.
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Over this past week, a lot of people were making hay over this recent ReadWriteWeb story, “Facebook’s Zuckerberg Says The Age of Privacy is Over.” Seems that some people were taking issue with Facebook founder Mark Zuckerberg’s suggestion that Facebook’s recent site policy changes, which generally encouraged more sharing or information, were in line with public expectations. Most people put words in Zuckerberg’s mouth and accused him of saying that “privacy is over” or that he claimed he “is a prophet,” neither of which he actually said. But let’s ignore the fact that some people made stuff up and get back to the point: What set people off about Facebook’s recent site changes and Zuckerberg’s rationalization of them?
I think it goes back to the fact that a lot of people want to have their cake and eat it too. “It is the paradox of the cyber era,” notes
Washington Post
columnist Michael Gerson: We are “a nation of exhibitionists demanding privacy.” Indeed, that’s true, but there’s a good reason why this so-called “privacy paradox” exists. As Larry Downes, author of the brilliant new book,
The Laws of Disruption, argues:
People value their privacy, but then go out of their way to give it up. There’s nothing paradoxical about it. We do value privacy. It’s just that we’re willing to trade it for services we value even more. Consumers intuitively look at the information being requested and decide whether the value they receive for disclosing it is worth the cost of their privacy. (p. 80)
That’s exactly right. When confronted with
real world choices about privacy and information sharing, we often are willing to accept some trade-offs in exchange for something of value. But when we are asked about this process we are loathe to admit that we would willingly engage in such privacy-for-services trade-offs even if we do it every day of our lives. As Michael Arrington of TechCrunch rightly points out:
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Can the Federal Communications Commission (FCC) just do anything it wants? If it wants to bring the entire Internet under its thumb, or regulate any speech uttered over electronic media, can it just do so on a whim? The agency’s recent actions on the Net neutrality and free speech fronts seems to suggest that the agency thinks so.
I don’t need to rehash here what the FCC has been up to on the Net neutrality front. Most everyone is familiar with how the agency has essentially been trying to invent its authority to regulate out of thin air. If you want the whole ugly history of how this charade has unfolded over past few years, I encourage you to read these amazing comments filed today in the FCC’s net neutrality NPRM proceeding by my PFF colleague Barbara Esbin. Barbara simply demolishes the FCC’s argument that it can do anything it wants under the guise of its “ancillary jurisdiction.” As Barbara argues in her comments, the FCC’s position “is akin to saying that the FCC can regulate if its actions are ancillary to its ancillary jurisdiction, and that is one ancillary too many.” She notes that:
The proposed rules regulating the services and network management practices of broadband Internet providers must rest, if at all, on the Commission‘s implied or ancillary jurisdiction and the NPRM fails to provide a basis upon which the exercise of such jurisdiction can be considered lawful.
She shows how farcical it is for the FCC to concoct its supposed authority to regulate from provisions of the Communications Act that have nothing whatsoever to do with Net neutrality or even expanding regulation in general. Specifically, the agency’s reliance on sections 230(b) and 706(a) of the Telecommunications Act of 1996 is completely outlandish. Anyone who knows a lick about telecom law and the nature of those two sections understands they were never intended to serve as the basis of an expansive new regulatory regime for the Internet. As Barbara puts it:
This exercise—searching for snippets and threads of regulatory authority over a communications medium as significant as the Internet in multiple, unrelated statutory provisions—should signal to the Commission that no credible source of authority to regulate Internet services exists.
All I have to say is, thank God for checks and balances. I believe the courts will put a stop to this nonsense, but it will take some time. Until then, I suppose the FCC will continue to act like a rogue agency, hell-bent and tossing the constitution to the wind and concocting asinine theories about why they should be allowed to do anything they want. But there
are signs that the courts are ready to start holding the FCC more accountable. Continue reading →
by Adam Thierer & Berin Szoka, Progress Snaphot 6.1
Stephanie Clifford of the
New York Times posted a very interesting article this week summarizing a recent “on-the-record chat” the Times staff had with Federal Trade Commission (FTC) chairman Jon Leibowitz and FTC Bureau of Consumer Protection chief David Vladeck. The interview [discussed by Braden here] is profoundly important in that it reveals an alarming disconnect regarding the relationship between “privacy” regulation and the future of media, which were the subjects of their discussion with Times staff. Namely, Leibowitz and Vladeck apparently fail to appreciate how the delicate balance between commercial advertising and journalism is at risk precisely because of the sort of regulations they apparently are ready to adopt. Because the value of online advertising depends on data about its effectiveness and consumers’ likely interests, and because advertising is indispensable to funding media, what’s ultimately at stake here is nothing short of the future of press freedom.
The “Day of Reckoning” Is Upon Us
Leibowitz and Vladeck spend the first half of
The Times interview wringing their hands about “privacy policies,” the declarations made by websites and advertising networks about their data collection and use practices (for which the FTC can and must hold them accountable). But the two feel that privacy policies don’t adequately inform consumers. Chairman Leibowitz claims that online companies “haven’t given consumers effective notice, so they can make effective choices.” And Mr. Vladeck states that advise-and-consent models “depended on the fiction that people were meaningfully giving consent.” But he and the FTC seem ready to abandon the notice and choice model because the “literature is clear” that few people read privacy policies, Vladeck told the Times. He and Leibowitz continue:
“Philosophically, we wonder if we’re moving to a post-disclosure era and what that would look like,” Mr. Vladeck said. “What’s the substitute for it?” He said the commission was still looking into the issue, but it hoped to have an answer by June or July, when it plans to publish a report on the subject. Mr. Leibowitz gave a hint as to what might be included: “I have a sense, and it’s still amorphous, that we might head toward opt-in,” Mr. Leibowitz said.
This clearly foreshadows the regulatory endgame we have long suspected was coming. When the FTC released its “Self-Regulatory Principles for Online Behavioral Advertising” eleven months ago, we asked: “What’s the Harm & Where Are We Heading?” Their answers to both questions have become clearer with each new calculated comment—all apparently intended to slowly “turn up the heat” on the advertising industry so that the proverbial frog will stay in the pot until the water finally boils. Leibowitz’s FTC has simply dodged the “harm” question with a four-part strategy: Continue reading →
Today I appeared on CNBC [video here and embedded down below] to discuss concerns about emerging “smart-sign” technology, which could give rise to a new generation of interactive retail advertising and marketing efforts. This is in the news because, as Don Clark and Nick Wingfield report today in The Wall Street Journal (“Intel, Microsoft Offer Smart-Sign Technology: Retailers, Product Marketers Could Discern Viewer, Make Choices on What to Display and Transfer Coupons Via Phone“), Intel and Microsoft have announced that:
they will collaborate to help companies create and use new forms of digital signs. By exploiting Intel chips and Microsoft software, the companies hope to bring more interactivity to such devices and help retailers customized marketing offers to consumers.
Signs equipped with cameras and specialized software could recognize the age, gender and height of people in front of them, and tell what products and images received the most attention, the companies said. By gathering information about which messages are more effective, they add, traditional retailers could develop marketing approaches that better counter Web-based competitors. “Every year retailers lose more ground to online [sellers], and they have to do something about that,” said Joe Jensen, general manager of Intel’s embedded computing division.
Down below, I have jotted down a couple of thoughts about the rise of “digital signage” and more targeted forms of retail marketing, only a few of which I was able to get across in this short TV spot. I think it’s an exciting new development for both retailers and consumers for the reasons I explain down below:
http://plus.cnbc.com/rssvideosearch/action/player/id/1383744249/code/cnbcplayershare
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Connect Safely, which is great parenting and online child safety resource run by my friends Anne Collier and Larry Magid, has just released some excellent “Virtual World Safety Tips for Parents of Teens.” Tons of good advice in there worth checking out, especially the thing I always focus on in all my online safety work—talk to your kids!! Here’s Anne and Larry on that point:
Talk with your teens about the virtual worlds they use – ask them to show you around. See what their avatars look like and what screen names they’ve chosen to represent themselves. What do their profiles and the appearance of their avatars say about them? Try to hold back snap judgments (long-term guidance usually works better than control if the goal is learning rather than short-term compliance – see this). Are their virtual-world profiles linked to social-network ones, and how much do those linked-up profiles together reveal about them – too much? Are their in-world friends mostly friends they know in real life? If not, do they know that they can’t really know who people are online unless they know them offline?
It’s about getting a dialogue going with your kids. That is so absolutely essential and it would help head off about 90% of the problems that develop online today with kids. Kids need mentoring, whether its in meatspace or cyberspace. But make sure to read all the Connect Safely tips. They are excellent.
Incidentally, I talked about some of these issues when I did a virtual guest lecture in Second Life last October hosted by Metanomics. The show was called “Live Free and Prosper: Government’s Place in Virtual Worlds and On-line Communities,” and I posted all the video clips here. I also encourage those of you interested in these issues to check out these recent TLF guest posts by Joshua Fairfield an Associate Professor of Law at Washington & Lee University School of Law. He recently posted and interesting essay entitled, “Virtual Paternalism” as well as a summary and discussion of the recent “FTC Report on Kids and Virtual Worlds.” Worth reading.
“It was then, and is now, the largest merger in American business history,” notes Tim Arango of the New York Times about the AOL-Time Warner mega-merger, which happen ten years this month. And yet, as he points out in his essay, “How the AOL-Time Warner Merger Went So Wrong,” things didn’t end up going so well for this marriage:
The trail of despair in subsequent years included countless job losses, the decimation of retirement accounts, investigations by the Securities and Exchange Commission and the Justice Department, and countless executive upheavals. Today, the combined values of the companies, which have been separated, is about one-seventh of their worth on the day of the merger.
To call the transaction the worst in history, as it is now taught in business schools, does not begin to tell the story of how some of the brightest minds in technology and media collaborated to produce a deal now regarded by many as a colossal mistake.
Arango goes on to interview several of the principals involved in the deal to get their take on why things unfolded so miserably and, ultimately, came to an end this year. I highly recommend the essay because it should serve as a cautionary tale to those worrywarts who are constantly predicting that the sky is going to fall if we allow a truly free media marketplace–including freedom for firms to structure themselves as they wish. Reality usually plays out quite differently. As I argued in my recent paper, “A Brief History of Media Merger Hysteria: From AOL-Time Warner to Comcast-NBC,”
The point here is not that media mergers are inherently good or always make sense. Indeed.. mergers sometimes prove to be huge blunders. But the hysteria sometimes heard before media mergers are consummated rarely bears any relationship to reality once the deals move forward. Media markets are extremely dynamic and prone to disruptive change and technological leap-frogging. Mergers are often one response to that turbulence… Given how difficult it is to predict the future course of events in this chaotic sector, humility—not hubris—is the sensible disposition when it comes to media merger policy.
I was on CNBC today live from the floor of the CES show in Vegas debating the question of whether allowing Internet access in cars and other in-vehicle digital technologies was a good idea. I was up against Nicholas Ashford, an MIT technology & law professor. In-vehicle communications and entertainment technologies are a major theme of this year’s show, especially with Ford’s announcement of some very cool new technologies.
I argued that education, not regulation, was the answer. We should educate drivers about safe and sensible use of in-vehicle technologies. We should also encourage the technology providers to continue to give us more voice-activated tools so we can interact with these technologies safely. Ford’s new systems, for example, have some very impressive voice-activated features. Finally, our law enforcement officials should continue to enforce “distracted driver” laws that penalize drivers who are a threat to others for any reason. That is the better approach compared to trying to ban these technologies.
You can find the video of the debate here.
http://plus.cnbc.com/rssvideosearch/action/player/id/1379655947/code/cnbcplayershare
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.