April 2012

House to debate changes to cybersecurity bill

The House will vote on 16 amendments to the Cyber Intelligence Sharing and Protection Act (CISPA) based on the terms of debate set by the Rules Committee.

Five of the amendments approved for debate are backed by the bill's authors, Reps. Mike Rogers (R-MI) and Dutch Ruppersberger (D-MD). The amendments would tighten limitations on how the government can use the information it collects and would narrow the definition of "cyber threat information." The changes would also restrict the scope of liability protections for companies that turn over data to the government. The amendments aimed to address the concerns of privacy groups, who have warned the bill could lead companies to hand over their consumers' private information to the government. But the changes were not enough to win over privacy groups or the White House. Another amendment, offered by Rep. Darrell Issa (R-CA), would ensure that the Freedom of Information Act would still apply to regulatory information shared as part of the bill.

Providence Said Selling Hulu Stake at $2 Billion Value

Hulu owners Walt Disney, Comcast and News are close to buying out Providence Equity Partners’ stake at a price that values the company at $2 billion, said two people with knowledge of the matter. Providence is selling its 10 percent share in Hulu for $200 million after investing $100 million when the venture began in 2007. The companies will also allow employees of Hulu, including Chief Executive Officer Jason Kilar, to sell some shares of the closely held online TV service.

FCC Proposes to Allow NCE Stations to Conduct Third-Party Fundraising

The Federal Communications Commission (FCC) invited comment on whether to allow public broadcasters to spend a modest amount of their total annual broadcast time – up to one percent, or about 88 hours per year – to conduct on-air fundraising activities for charities and other nonprofits. This proposal is a recommendation of The Information Needs of Communities report, which was released in June 2011. The proposal gives viewers of public broadcasting the opportunity to raise funds for non-profit organizations in their communities and around the world. The Notice of Proposed Rulemaking (NPRM) is another step in the FCC’s effort to review existing regulations and reduce unnecessary burdens.

Under longstanding FCC policy, noncommercial educational (NCE) public broadcast stations can only conduct fundraising activities for the benefit of the station itself. Fundraising activities for third-parties is prohibited if fundraising activities conducted on-air would substantially alter or suspend regular programming. The policy reflects concerns that public stations are licensed to meet their mission of public service to local audiences through noncommercial and educational programming, not through fundraising activities for other organizations.

Reps Waxman and Eshoo Call for Hearing on Spectrum Transactions

House Commerce Committee Ranking Member Henry Waxman (D-CA) and Communications and Technology Subcommittee Ranking Member Anna Eshoo (D-CA) sent a letter to Committee Chairman Fred Upton (R-MI) and Communications and Technology Subcommittee Chairman Greg Walden (R-OR) requesting a hearing on recently announced spectrum transactions involving Verizon’s proposed acquisition of Advanced Wireless Services (AWS) spectrum licenses from several cable companies as well as Verizon’s conditional sale of the company’s 700 MHz A and B block licenses. The pair said they have not taken any position on the deals, but said it was important to hear testimony and consider the policy implications of the transactions, which Verizon says will free up unused spectrum for the benefit of consumers and critics say will increase concentration and decrease competition among cable and wireless companies.

Google tries to destroy Oracle's case, asks for judgment on Java copyrights

With the first phase of the blockbuster Oracle/Google case nearly headed to the jury, Google asked the court for a judgment that would invalidate at least a portion of the copyrights Oracle claims over Java APIs.

Google's motion asks for a "judgment as a matter of law that the names and declarations from the 37 API (application programming interface) packages that appear in the Android source code are not copyrightable." Google criticized "Oracle claims that Google’s implementing source code is a derivative work of Oracle’s English-language descriptions because Google’s source code does the things that the English descriptions describe." Google argued that the source code and object code for implementing Oracle's APIs are not derivative works of the copyrighted work as a whole. Further, Google said the alleged copying of Java code is "de minimus," or insignificant, and "thus non-actionable."

New Report Says Streaming Hurts Kids, Off-Net Programs

A new report indicates that the availability of programming through streaming services such as Netflix is affecting traditional television networks that show kids programming and off-network reruns.

Sanford Bernstein & Co. analyst Todd Juenger, a former TiVo research executive, used TiVo set-top box data to analyze differences in viewing behavior between streaming home and non-streaming homes. Juenger found that "streamers' viewing choices have changed over time, indicating Netflix is increasingly influencing their behavior. Kids, syndicated TV and sports have lost; broadcast, movies, general entertainment originals and news have gained." He also found that "streamers have natural skews in TV preferences based on different household demographics (streamers are more likely to have kids) and pre-dispositions (streamers like movies, comedy, and "smart" entertainment).

Bill Puts Pressure on Federal Spectrum Users

Two members of the House Commerce Committee offered legislation that would put pressure on the Administration to do more than just talk about meeting President Obama's pledge to free up 500 megahertz of spectrum over the next decade.

The bill, offered by Reps. Cliff Stearns (R-FL) and Doris Matsui (D-CA), would require the administration to auction off a chunk of spectrum coveted by the wireless industry that is now used by federal agencies. The bill would require that the 1755-1780 megahertz block of spectrum be paired with the 2155-2180 band, which the Federal Communications Commission already has available, and be auctioned to wireless providers. The Stearns-Matsui bill would give the Pentagon and other federal agencies five years to relocate from the 1755 band and authorize funding to pay for the costs associated with that move.

The Victory Lap That Won't End

The tech industry found another occasion night to cheer its victory in defeating controversial online anti-piracy legislation at the Consumer Electronics Association's annual Digital Patriot's Dinner.

CEA's turn came a month after the Center for Democracy and Technology used its annual "tech prom" to applaud efforts to defeat the anti-piracy bills known as the Stop Online Piracy Act in the House and the Senate's Protect IP Act. Even though both bills enjoyed strong support from Washington heavyweights like the Motion Picture Association of America and the U.S. Chamber of Commerce, congressional leaders sidelined the measures in January after an unprecedented protest from tech firms, civil libertarians and Internet activists against the two bills. Opponents argued that the legislation, aimed at curbing piracy and counterfeiting on foreign websites, would stifle innovation and online free speech.

Civil Liberties Groups Renew Opposition To House Cybersecurity Bill

Civil liberties groups are back actively opposing a cybersecurity bill that the House is scheduled to consider.

The Center for Democracy and Technology and the Constitution Project never really dropped objections to the Cyber Intelligence Sharing and Protection Act, but after discussions with the bill's sponsors, the groups said on April 24 they would not actively oppose the bill and focus on amendments instead. But on April 25, the House Rules Committee shot down 22 of 43 submitted amendments to the bill, known as CISPA. All but one Republican amendments were made in order, while four out of 19 Democratic amendments and four with 10 bipartisan support made the cut. Five amendments were withdrawn. "In issuing a rule excluding amendments on two of the major privacy and civil liberties issues remaining in CISPA -- the flow of information to the National Security Agency and the authority to use information for non-cybersecurity purposes -- the House leadership has squandered an opportunity to achieve balanced cybersecurity legislation," CDT said in a statement.

Phantom 'Cyber 9/11' Haunts Cybersecurity Debate

Imagine trying to make travelers go through current onerous airport security before the terror attacks of Sept. 11, 2001. That's the situation lawmakers say they are in as they seek to pass legislation to combat cyberattacks.

"There is a great divide between what American people know and understand about this threat and reality," Sen. Richard Blumenthal (D-CT) said at an event sponsored by Politico. Sen Blumenthal joined Rep. Mary Bono Mack (R-CA) in noting that not only is much of what is known about cyberthreats classified, but there are no widely accepted examples of truly catastrophic or deadly cyberattacks. While there are millions of various cyberattacks or breaches each year, they're rarely scary enough to make a lasting impression on the average voter, or even lawmakers for that matter. Even the most glamorous and oft-cited cyber worm, Stuxnet, simply did its damage by making nuclear centrifuges spin too fast. The dire warnings haven't really registered for many Americans, said Rep Bono Mack, who is developing legislation to prevent data breaches. "It's somewhat difficult because we're not really hearing about it from people back home," she said.