December 2013

NSA spying hurts business of large US hardware makers

[Commentary] With evidence mounting that National Security Agency spying has damaged the business of some of the largest US technology companies, the question now is how long it will take them to win back the trust of overseas customers. Without any changes in U.S. law that restrict the agency's ability to use tech for surveillance, the answer may be "never."

That may be the case in China, where IBM, Microsoft, Hewlett-Packard and, most notably, Cisco Systems have reported substantial drops in sales since the NSA surveillance program came to light. Yet sales are falling for several of these giants not only in China but in other parts of Asia and in other developing economies, too, and the trend may have as much to do with privacy concerns as with the pace of global economic growth. If China's new rulers believe U.S. hardware and software makers are helping a strategic rival to spy on it, US companies will likely see sales there continue to fall. And if the same concerns grip other overseas customers and governments, American tech executives may have a tough time convincing them otherwise.

McAfee, Symantec adapt to changing cybersecurity landscape

Silicon Valley has rediscovered cybersecurity. The last time it was this focused on the field was in the 1990s. Two giants emerged from that generation: McAfee and Symantec. These may well be the two security companies that remain the most recognizable household names, thanks to their traditional firewall and anti-virus products. Now they find their turf being encroached from two sides. From one side comes tech giants like Hewlett-Packard and Cisco Systems, which see new revenue opportunity in cybersecurity. From the other side comes a rush of start-ups backed by large chunks of venture capital.

Shedding light on what your app is up to: 3 lessons for developers

Goldenshores Technologies’ “Brightest Flashlight Free” is an incredibly popular Android app downloaded by tens of millions of consumers. But did those people know that when they used the app, it would transmit their precise location and unique device identifier to third parties, including ad networks? According to a lawsuit filed by the Federal Trade Commission, Goldenshores didn’t give people the straight story about how their information would be used and then compounded the problem by making them think they could exercise a choice about it -- a “choice” that proved ineffective. The lawsuit charges that by failing to adequately disclose those material facts to consumers, Goldenshores and Erik M. Geidl violated the FTC Act.

The terms of the proposed settlement apply just to Goldenshores, but what can app developers take from the case?

  1. Geolocation, geolocation, geolocation. If your app collects and shares sensitive information, it’s smart to explain what’s going on up front, using language consumers will understand. What's more, get people’s express approval before going forward.
  2. Button, button. Who’s got the button? By featuring ACCEPT or REFUSE or similar buttons, you’re conveying to consumers they have a choice -- and that you’ll abide by it.
  3. The best things in life are free. Many app developers adopt a business model that allows for the distribution of their apps for free. That can be great for consumers, of course, but it doesn’t change app developers' legal obligation to abide by well-established truth-in-advertising and privacy principles.

Progress on Adoption of Electronic Health Records

As of October 2013, 85 percent of eligible hospitals and more than six in 10 eligible professionals had received a Medicare or Medicaid EHR incentive payment. Moreover, nine in 10 eligible hospitals and eight in 10 eligible professionals had taken the initial step of registering for the Medicare or Medicaid EHR Incentive Programs as of October 2013.

The Centers for Medicare & Medicaid Services (CMS) proposed a new timeline for the implementation of meaningful use for the Medicare and Medicaid EHR Incentive Programs and the Office of the National Coordinator for Health Information Technology (ONC) proposed a more regular approach to update ONC’s certification regulations. Under the revised timeline, Stage 2 will be extended through 2016 and Stage 3 will begin in 2017 for those providers that have completed at least two years in Stage 2. The goal of this change is two-fold: first, to allow CMS and ONC to focus efforts on the successful implementation of the enhanced patient engagement, interoperability and health information exchange requirements in Stage 2; and second, to utilize data from Stage 2 participation to inform policy decisions for Stage 3. This new proposed timeline tracks ongoing conversations we at CMS and ONC have had with providers, consumers, health care associations, EHR developers, and other stakeholders in the health care industry. This timeline allows for enhanced program analysis of Stage 2 data to inform the improvements in care delivery outcomes in Stage 3.

The Meaning of China’s Crackdown On the Foreign Press

[Commentary] The Chinese government is threatening to expel nearly two dozen foreign correspondents, working for the New York Times and Bloomberg News, in retaliation for investigations that exposed the private wealth of Chinese leaders. It is the Chinese government’s most dramatic attempt to insulate itself from scrutiny in the thirty-five years since China began opening to the world.

We won’t know if it’s prepared to follow through on the threat for another week or two, when correspondents’ annual visas begin to expire. So far, it has declined to renew them. Unless the government changes course, reporters and their dependents will be required to leave the country before the end of 2013. But following through is only part of the point. The real purpose is intimidation: to compel foreign news organizations to adopt a more compliant posture in their daily decisions, small and large. In attempting to shield themselves from the gaze of the world, the new generation of Chinese leaders has unwittingly provided one of the clearest views yet into their thinking, and their self-perception, as they confront the challenges that will define China’s future.

AT&T: We don't have to disclose NSA dealings

AT&T, under fire for ongoing revelations that it shares and sells customers' communications records to the National Security Agency and other US intelligence offices, says it isn't required to disclose to shareholders what it does with customers' data.

In a letter to the Securities and Exchange Commission, AT&T said it protects customer information and complies with government requests for records "only to the extent required by law." AT&T's letter was a response to a shareholder revolt sparked on Nov 20 by the New York State Common Retirement Fund, the ACLU of Northern California and others. The groups are demanding that AT&T and Verizon be more transparent about their dealings with the NSA. In the letter, AT&T said information about assisting foreign intelligence surveillance activities is almost certainly classified. The company said it should not have to address the issue at its annual shareholders meeting in the spring of 2014. Nicole Ozer, technology and civil liberties policy director at the ACLU of Northern California said AT&T has overstepped its bounds. "It's outrageous that AT&T is trying to block the shareholder proposal," she said. "Customers have a right to know how often their private information is ending up in the government's hands."

More than 3.7 million visited HealthCare.gov this week

More than 3.7 million people visited HealthCare.gov since the website was upgraded, the Centers for Medicare and Medicaid Services said. Also, CMS communications director Julie Bataille said, the percentage of duplicate or incorrect forms from the website to insurers has dropped from 25% to 10%. "This week, the site remains stable and experienced no unexpected downtime," Bataille said. There may have been as many as one in four incorrect or duplicate forms going to insurers between Oct 1 to Nov 30, she said.

One in ten forms sent to insurers still have errors, says Healthcare.gov spokesperson

The Administration has finally announced the error rate for “834 transmissions”, the data sent to insurance companies after applicants fill out their information on the Healthcare.gov marketplace. It's not good: one in ten forms contain errors, a spokesperson said. 834 is short for "834 Electronic Data Interchange Transmissions" or "834 EDI Transactions," the files that get passed to insurance companies so new enrollees can be added to their systems. This is a critical function of the federal marketplace: if it doesn't correctly communicate with insurers, people won't get the coverage they think they've signed up for.

Apple Wants Samsung to Pay $15 Million of Its Legal Tab, Now Over $60 Million for Current Case

In court filings, Apple asked a federal judge to order Samsung to pay more than $15 million in legal fees, an amount it says is a fraction of the more than $60 million in outside legal bills it has racked up in the current San Jose (CA) case.

It also wants $6 million in other miscellaneous costs, such as copying and electronic filings. Apple says it has paid or expects to pay lead law firm Morrison & Foerster approximately $60 million and also expects to pay $2 million to a second law firm, Wimer Hale.

FCC Targets Sinclair Sidecar Deals In 3 Markets

The Federal Communication Commission’s Media Bureau has alleged that the sidecar transactions that Sinclair Broadcast Group has proposed in three markets -- Charleston (SC), Birmingham (AL), and Harrisburg (PA) -- as part of its $985-million pending acquisition of Allbritton Communications would violate agency ownership rules.

Under the deals at issue, Sinclair is proposing to take over the Allbritton ABC affiliates in those markets, spin off one of its existing stations in the markets to sidecar companies, in transactions that would give Sinclair some control over at least some operations of multiple TV stations in each market. In a letter to Sinclair, however, FCC Video Division Chief Barbara Kreisman said the way the deals were structured, Sinclair would lose grandfathered protections that it previously had that allow it to operate more than one TV station in each market through local marketing agreements (LMAs). LMAs, which essentially allowed broadcasters to operate multiple stations in a market completely, are no longer legal. “In three of the markets -- Charleston, Birmingham and Harrisburg -- the proposed transactions would result in the elimination of the grandfathered status of certain local marketing agreements and thus cause the transactions to violate our local TV ownership rules,” Kreisman said in her letter. Kreisman also asked Sinclair to provide the agency with financial data showing that its sidecar partners in the three markets are genuinely running the programming operations of the stations.