December 2011

Weitzner: White House privacy paper imminent

White House Deputy Chief Technology Officer for Internet Policy Daniel Weitzner said that the White House’s long-awaited white paper on online privacy will be released "in a matter of weeks," a development that could reinvigorate the debate in Washington over the hot-button issue.

He said that the school of thought about online privacy has evolved over time and "now we need some substantive privacy rules written into statute." With the release of the white paper forthcoming, Weitzner argued that the U.S. is not behind Europe in crafting online privacy regulations — as one member of the audience alleged. The White House aide also called for a consumer privacy bill of rights. "We are more or less exactly on the same schedule as Europe, he said. "It remains to be seen who will finish first."

House Passes Bill Amending Video Privacy Law

The House passed legislation that supporters say would update a 1988 law designed to protect the privacy of consumers' video viewing records to reflect the changing ways people watch movies and television shows. The legislation, passed on a 303-116 vote, would amend the 1988 Video Privacy Protection Act, enacted after a newspaper published the video rental records of failed Supreme Court nominee Robert Bork.

The proposed changes offered in legislation from Rep. Bob Goodlatte (R-VA), chairman of the Judiciary Intellectual Property, Competition, and the Internet Subcommittee, would allow companies such as Netflix to obtain one-time consent to share consumers' video rental information with others. "This bill ensures the law related to the handling of videotape rental information is updated to reflect the realities of the 21st century," Chairman Goodlatte said. Netflix in particular has been pushing Congress to make changes that would allow its users to connect their Netflix accounts to Facebook so they can share with their Facebook friends what they are watching on the video service. When it announced it was launching the Facebook service in September, Netflix said it was only rolling it out in Canada and Latin America because the video privacy law barred it from introducing the service in the United States. But critics argue that the bill has not been properly vetted and that it would weaken the video privacy law by allowing companies to seek blanket approval from individuals to share their video rental history.

Facebook Flaw Exposes Its CEO

A security vulnerability in Facebook's social-networking site exposed by some users sent the company scrambling for a fix after Chief Executive Mark Zuckerberg's private photos were published online.

In a Nov. 27 post on the Web forum Bodybuilding.com, an anonymous writer listed step-by-step instructions on how to access photos uploaded by other Facebook members, even if the images had been marked as private. The process involved a Facebook feature that lets users identify pornographic or inappropriate images on the site. The forum post showed that by flagging another user's profile, one Facebook member was able to gain access to the other's private images. A blogger reported on the security flaw, and used it to publish a photo from Zuckerberg's private collection. Others then used the flaw to publish further photos from Zuckerberg's collection, including images of the Facebook CEO preparing food in a kitchen and distributing candy to Halloween trick-or-treaters. It wasn't immediately clear how long the Facebook security flaw was available on the Web, or how many of the site's more than 800 million users were affected. But the company attributed the problem to a recent revision of its software.

Patrick Leahy and Lamar Smith: We'll shepherd piracy bill through like patent law

Judiciary Committee Chairmen Sen. Patrick Leahy (D-VT) and Rep. Lamar Smith (R-TX) said they intend to use the same method to push online piracy bills through Congress that they used to successfully pass the first major overhaul of the U.S. patent system in six decades.

The two lawmakers, named POLITICO and POLITICO Pro's Technology Policymakers of the Year, said the proliferation of online piracy causes serious risks to public safety and costs American jobs. "Stealing is stealing. I don’t care if it’s on the Internet or you're breaking into a warehouse somewhere — it’s theft," Chairman Leahy said at POLITICO and POLITICO Pro's Policy+Politics event. But the PROTECT IP Act in the Senate and Stop Online Piracy Act in the House are no strangers to controversy. Major Web companies — including Google, Twitter and Facebook — have argued the bills would hamper future innovation online and encourage censorship on the Internet. Chairman Smith said he's working to address these concerns with SOPA before the bill is marked up next week. But his goal to is make "70 percent" of people happy with the final product. "We think we can address these concerns, but not all of these concerns," Chairman Smith said.

A Moment in the Sun for Television

Video content — regardless of the type of screen on which it is watched — has been basking in a bright spotlight. Companies that own and operate other forms of media are making presentations, but television looks to be having a moment, in large part because marketers remain keen on buying commercial time during video programming despite the uncertain outlook for the economy.

Spending on television ads around the world next year will increase 6.7 percent from 2011, said Vincent Létang, executive vice president and director for global forecasting at the Magnaglobal unit of Mediabrands, part of the Interpublic Group of Companies. He predicted that gain even as he reduced his estimate for growth next year in ad spending in all media, to 5 percent from a previous forecast that called for an increase of 6.5 percent. Among all media in 2012, Mr. Létang said, only online ads will register a greater percentage gain in worldwide ad spending than TV, at 11.2 percent. Another forecaster, Steve King, chief executive at the ZenithOptimedia division of the Publicis Groupe, predicted that from 2011 to 2014, television would increase its share of worldwide ad spending to 40.3 percent, from 40.2 percent. The rising tide for TV seems to be lifting all boats, even the venerable ship known as broadcast network television. It has never been healthier, said Leslie Moonves, president and chief executive at the CBS Corporation, at least for his eponymous network.

Trade groups proliferate, vie for influence

When a member of Congress wants to know what the oil industry thinks, a single call to the American Petroleum Institute usually does the trick. Same goes for PhRMA, the umbrella group for pharmaceutical companies. But good luck getting an easy answer from the tech industry: Groups claiming to represent one slice of the sector or another are sprouting so fast that even tech insiders have trouble keeping up.

At least half a dozen trade groups cater specifically to technology companies in Washington. Another half-dozen represent the major telecom firms. And a smattering of coalitions stands for clusters of companies on narrower issues such as patent and immigration reform. “It can be hard keeping them all straight,” a Senate aide said. Now the NetCoalition group is trying to expand its efforts to speak for Internet companies — such as Facebook, Google, Amazon and eBay — on issues unique to the Web: privacy, copyright and online taxes. Yet another coalition is being spearheaded by AT&T and Verizon to help promote smart grid technology. Some Silicon Valley execs privately complain that there is now such a patchwork of associations that they have to hire a consultant just to manage all their memberships and juggle conference calls. They often feel pressured to join coalitions just to keep tabs on what their competitors are doing. The proliferation of lobbying arms reflects the tech industry’s maturing operations in Washington. And unlike, say, Hollywood movie studios, tech companies take a wide range of positions that often are at odds, so no single group can claim to speak for all. The downside of that diversity, though, is real: Diluting the message of a growing sector that has struggled to find its voice inside the Beltway.

Postal Service Cutbacks Add New Light to Netflix Saga

The announcement by the United States Postal Service that it plans to eliminate next-day delivery for first-class mail could provide another explanation for why Netflix CEO Reed Hastings decided to accelerate Netflix’s shift towards streaming.

As Steven Greenhouse pointed out in an article on the cost-cutting efforts by the postal service, the changes could create problems for Netflix, which has long provided next-day delivery of DVDs swaddled in its signature red envelopes, as long as customers ordered the movies the preceding morning. An increase in delivery delays to two or three days would be a significant blow to the convenience of Netflix’s DVD rental service, which could explain why Netflix wanted to carve out a separate brand for that business. It isn’t clear yet, though, whether delivery of Netflix movies is going to get a lot slower. Steve Swasey, a Netflix spokesman, said the company had a longstanding relationship with the Postal Service and would “work with them to ensure a minimal effect on Netflix DVD members.” Mr. Swasey wouldn’t say how Netflix planned to do that. The company has long bypassed portions of the mailing process, by presorting its DVD mailers by ZIP code and shipping them directly to postal processing centers. Patrick Donahoe, the postmaster general, told The New York Times on Monday that there would still be opportunities for companies to receive next-day delivery and that Netflix officials had told him they planned to do this to ensure many next-day deliveries.

Sites using .xxx go live

More 100,000 Web sites using the .xxx domain hit the Web, heightening debate over the new top-level Internet designation.

The International Corporation for Assigned Names and Numbers approved .xxx in March, and the domain went up for general sale Dec 6. According to a release from ICM, the registry responsible for overseeing all .xxx sites, the action offers a “responsible alternative” for sites that offer adult content, since it clearly identifies the kind of site that users can expect to see when they click on a link. Debate over the new domain has been fierce, with both the adult industry and anti-porn activists criticizing the move. Anti-porn groups such as Morality in Media have argued that .xxx will make it easier to find Web sites with pornographic material and would “increase, not decrease” access to pornographic Web sites. On the other hand, while some adult entertainment companies have embraced the new designation, others say that the move is anticompetitive.

Sen Klobuchar: Cameras won’t turn Supreme Court into ‘Judge Judy’

Supporters of televised Supreme Court arguments said there’s no reason for the Justices to fear broader public access to their hearings — including the landmark case over President Obama’s healthcare law.

Senators from both parties have been pushing for decades to allow cameras into the Supreme Court’s chambers. But many of the justices fear their dense, aggressive questioning would be taken out of context, and that cameras would foster the public grandstanding often seen in Congress and the executive branch. “I’m trying to picture Ruth Bader Ginsburg turning into Judge Judy. I just don’t think it’s going to happen,” Sen. Amy Klobuchar (D-MN) said during a hearing on the subject.

Lawmakers tell FCC to preserve local media ownership rules

Ten House Democrats wrote to the Federal Communications Commission urging the agency to preserve the rules that ensure competition and diversity among local media outlets.

"As the Commission reviews its existing media ownership limits, we urge you to protect the public interest by promoting rules that encourage competition, localism, and diversity in all local media markets," wrote Reps. Mike Doyle (D-PA), Anna Eshoo (D-CA), Edward Markey (D-MA) and others. The letter cites protections like the newspaper-broadcast cross-ownership rule and the radio-television cross-ownership for ensuring there is competition among local news outlets by preventing one firm from buying its competitors. It also expresses concern about the impact of the Web on local outlets. "Protecting localism is a critical and longstanding goal of the Federal Communications Commission’s media ownership rules. However, today’s media marketplace reflects a troubling decline in the level of local journalism," the letter states.