July 2012

On the Goal Line: Senate Cybersecurity Bill

[Commentary] Senate Majority Leader Harry Reid moved to proceed on cybersecurity legislation. Throughout the week, many of the leading Democratic Senators have been calling for the passage of a compromise bill constructed by Sens. Joe Lieberman (D-CT) and Susan Collins(R-Maine) and others. How close is the Senate to actually passing the bill? Well, it is safe to say that it is facing fourth and goal, with eight points needed to tie the game and send it into overtime. The two-point conversion, however, could be another story as Republicans opposed to critical infrastructure regulation, while more open than previously, still may oppose the bill’s compromise voluntary language to create a voluntary certification program using standards created by a council, with industry receiving incentives to participate. In any event, it is clear that cybersecurity will remain a priority for both the House and the Senate going into the lame duck session at the end of the year and, most likely, into 2013.

[Herrera-Flanigan is a partner at the Monument Policy Group, where she focuses on the issues affecting our nation’s security, technology, commerce, and entertainment markets.]

Stockpiling arms against cyberattacks

[Commentary] The global cyber-arms race is a reality.

By deploying a computer worm known as Stuxnet in a covert operation intended to damage Iran’s equipment for enriching uranium, the United States crossed a line. Stuxnet was designed to do physical harm. What if other nations do the same — and do it to us? The U.S. government has revealed little about its offensive activities in this sphere. We think this is shortsighted. Two years ago, the National Research Council found that the government’s policy and legal framework for offensive cyber-programs was “ill-formed, undeveloped and highly uncertain.” Is it any different today?

An open, vigorous debate is needed about the threat of cyberwar and the potential response. We had a decades-long debate about nuclear weapons, and it was healthy for the country and the world. We ought to bring the discussion about offensive cyber-conflict out of the shadows.

Negative Ads Hit at Identity to Shape Race for Presidency

As the presidential campaign has become a clash over a host of issues — from tax cuts to foreign diplomacy to claims of words taken out of context — Mitt Romney, President Barack Obama and their allies have started trading accusations over a much more delicate and personal question: Are you an American like me?

Their choice of words and imagery is a reminder of how powerful undercurrents of identity, wealth, race and religion are shaping this election. These surface in subtle and not-so-subtle ways as two candidates who can have trouble connecting with voters on a personal level try to define each other as detached from mainstream American life. Neither candidate is accusing the other of sending subliminal signals over race or religion. And the language on the campaign trail is a far cry from the overt efforts to make religion a wedge issue — like the campaign by Rep Michele Bachmann (R-MN) and other Republican members of Congress to ferret out what they say is an Islamic extremist influence in government. Rather, the Obama and Romney campaigns seem conscious of the dangers of going too far.

Apple v. Samsung Electronics: The Patent War Claims, Uncut

The gloves have emphatically come off in the patent war between Apple and Samsung Electronics.

A courtroom confrontation, scheduled to begin July 30, is only one of dozens of suits and countersuits around the world involving these two smartphone giants. But this one promises to be more lively than most. It’s a jury trial, set in Silicon Valley, in a federal district court in San Jose, California. The document discovery and deposition-taking by the corps of lawyers on both sides, running for months, will be rolled out in this showdown. The broad themes of the accusations on each side are well known by now. Apple plans to build its case using its Korean rival’s own words against it. An unredacted version of Apple’s trial brief bluntly states that Samsung was well aware that its smartphones and tablets bore a striking resemblance to Apple’s iPhone and iPad and that the issue was one the company discussed internally.

Samsung does have some ammunition of its own. Specifically, some 2006 internal design presentations that outline a mobile UI similar to the one that ultimately debuted on the iPhone, a handy before-and-after-the-iPhone-handset comparison and some internal Apple emails that it claims suggest “Apple’s ‘revolutionary’ iPhone design was derived from the designs of a competitor — Sony.” Add to that Samsung’s claim that Apple’s lawsuit is anticompetitive and its argument that the iPhone maker should pay it for using patented technology, without which it “could not have become a successful participant in the mobile telecommunications industry,” and next week’s trial is shaping up to be a contentious one indeed.

Apple-Amazon War Heats Up

The long-simmering war between Amazon and Apple is starting to boil over.

The two technology giants are going head to head in an increasing number of areas as they move to consolidate their positions as control points to consumers' digital lives. And their battle stands out from other tech rivalries because of the combatants' similar playbooks—from the tight control they exert over software to their secretive corporate cultures to the breadth of their customer data. The latest escalation came earlier this month, when it became clear that Amazon is testing its own smartphone, which would be a direct competitor to Apple's iPhone. The companies already battle one another in tablets and digital music and video, among other businesses. Behind the scenes, a team of Amazon engineers, stationed near Apple's headquarters, is toiling away to make the software that runs the Kindle Fire tablet more powerful, to better take on Apple's iPad. Their efforts include improving the graphics performance, the hardware and software integration and the user interface, which some consumers say still reminds them of an e-book reader, according to a person briefed on the project.

McKinsey Says Social Media Could Add $1.3 Trillion to the Economy

McKinsey Global Institute, the research arm of the business consulting giant, has just published a lengthy study on “unleashing value and productivity through social technologies.” The short version is that things like improved communication and collaboration from social media in four major business sectors could add $900 billion to $1.3 trillion in value to the economy. The value is mostly through added productivity. Improved consumer focus as well as better-functioning teams are two other benefits.

EBay To Target Under-18 Set

EBay is exploring ways to harness an untapped class of buyers: Kids.

The Internet company may allow consumers who are under 18 years old to set up accounts and access the eBay to buy vintage T-shirts, jewelry, school supplies or other products, said Devin Wenig, eBay's president of global marketplaces. To appease privacy concerns, eBay likely will require the accounts have parental authorization. Wenig said minors would be able to buy most items available on the site, but eBay would design ways to shield younger users from viewing or purchasing adult content and products.

In Meetings, US Presses Beijing on Rights

The State Department released its latest sober diagnosis of human rights abuses in China, along with some gentle encouragement to Beijing to do better.

Michael Posner -- the assistant secretary for democracy, human rights and labor – said that in meetings the State Department addressed China’s abuses of free expression on the Internet and in public, its persecution of religious and ethnic minorities, and its inhumane labor practices, among other human rights issues. For their part, Chinese officials raised concerns about the United States’ record on human rights, particularly in areas of discrimination and prison conditions. Critics say that merely raising concerns with the Chinese government, as the United States does in this dialogue each year, is an exercise in diplomatic futility. The State Department insists that the discussions are one facet of a larger strategy.

In Sweden, Taking File Sharing to Heart. And to Church.

People almost everywhere are file sharing these days, using computers to download music, films, books or other materials, often ignoring copyrights. In Sweden, however, it is a religion. Really. Even as this Scandinavian country, like other nations across Europe, bows to pressure from big media concerns to stop file sharing, a Swedish government agency this year registered as a bona fide religion a church whose central dogma is that file sharing is sacred.

Senators meet to move on cybersecurity

A bipartisan group of senators met to discuss how to bridge their differences on cybersecurity legislation.

The meeting comes as the Senate is expected to move to Sen. Joe Lieberman's (I-CT) cybersecurity bill as soon as July 25. The participants in the meeting included Lieberman and the co-sponsors of his bill, as well as Sen. John McCain (R-AZ) and some of the backers of his competing cybersecurity measure. Other participants included senators who have been involved in a compromise effort on the issue. The meeting focused on identifying the specific issues members have with Lieberman's bill, particularly the critical infrastructure section, according to an aide familiar with the meeting. That section proposes to create a voluntary program where operators of critical infrastructure would certify that they meet security standards developed by a government-led council in exchange for incentives.