June 2014

FTC Approves Final Orders Settling Charges of US-EU Safe Harbor Violations Against 14 Companies

After a public comment period, the Federal Trade Commission has approved final orders that settle charges against 14 companies for falsely claiming to participate in the international privacy framework known as the US-EU Safe Harbor.

Three of the companies were also charged with similar violations related to the US-Swiss Safe Harbor.

The FTC previously announced the settlements in January, February and May of 2014 with the following companies: American Apparel, Apperian, Atlanta Falcons Football Club, Baker Tilly Virchow Krause, BitTorrent, Charles River Laboratories International, DataMotion, DDC Laboratories, Fantage, Level 3 Communications, PDB Sports, d/b/a Denver Broncos Football Club, Reynolds Consumer Products, Receivable Management Services Corporation, and Tennessee Football.

Under the settlements, the companies are prohibited from misrepresenting the extent to which they participate in any privacy or data security program sponsored by the government or any other self-regulatory or standard-setting organization.

Courts may hear challenges to secret cell tracking devices after new ruling

Legal experts say that the landmark Supreme Court decision protecting cell phone privacy does not have any immediate implications for the use of cell tracking devices, known as stingrays.

But the court’s ruling could point the way forward for future judicial consideration.

Relatively little is known about how, exactly, stingrays are used by law enforcement agencies nationwide, although new documents have recently been released showing how they have been purchased and used in some limited instances. Worse still, cops have lied to courts about their use. Not only can stingrays be used to determine location, they can also be used to intercept calls and text messages.

Brian Pascal, a research fellow at the University of California, Hastings, told Ars that he didn’t think that this new ruling would impact metadata gathered via stingrays. FBI spokesperson Christopher Allen sent Ars a recent affidavit outlining the agency's position on why so little information has been publicly disclosed.

Why Americans, like Europeans, should be able to scrub their online search results

[Commentary] Based on the uproar from American Internet and legal experts, I had assumed a privacy ruling by the European Union Court of Justice in May was an assault on free speech and our right to information.

I also assumed it would mostly be sex offenders or hucksters who would ask to have a search term delinked from something they don’t like on the web. But without forgetting, there can’t be much forgiving, Viktor Mayer-Schönberger, author of “Delete: the virtue of forgetting in the digital age" (the book that inspired Europeans to rethink their online privacy policies) points out. And it’s hard to look forward, not back. And many, many people want slivers, or even whole swaths, of their past to be forgotten. [Zomorodi is the host and managing editor of New Tech City on WNYC, a public radio station in New York City]

Reaction to Aereo Decision

After the Supreme Court released its 6-3 decision in American Broadcasting Companies v. Aereo, wonkland responded.

National Association of Broadcasters President and CEO Gordon Smith said, “NAB is pleased the Supreme Court has upheld the concept of copyright protection that is enshrined in the Constitution by standing with free and local television. Aereo characterized our lawsuit as an attack on innovation; that claim is demonstrably false. Broadcasters embrace innovation every day, as evidenced by our leadership in HDTV, social media, mobile apps, user-generated content, along with network TV backed ventures like Hulu. Television broadcasters will always welcome partnerships with companies who respect copyright law. Today's decision sends an unmistakable message that businesses built on the theft of copyrighted material will not be tolerated.”

Aereo CEO and Founder Chet Kanojia said, “Today’s decision by the United States Supreme Court is a massive setback for the American consumer. We’ve said all along that we worked diligently to create a technology that complies with the law, but today’s decision clearly states that how the technology works does not matter. This sends a chilling message to the technology industry. It is troubling that the Court states in its decision that, ‘to the extent commercial actors or other interested entities may be concerned with the relationship between the development and use of such technologies and the Copyright Act, they are of course free to seek action from Congress.’ That begs the question: Are we moving towards a permission-based system for technology innovation?”

“While the court ruled that Aereo had overstepped, invention and innovation are at the heart of America’s global leadership in communications and technology development,” said House Commerce Committee Chairman Fred Upton (R-MI). “This case underscores the mounting need to modernize the 80-year-old Communications Act, which serves as an important, yet outdated, framework for the communications industry. We will continue laying the groundwork toward a #CommActUpdate to bring our laws into the innovation era so that the United States can continue leading the world in developing groundbreaking technologies that drive job creation and support consumer choice, economic growth, and social discourse.”
“The Court’s decision reminds us that the complex communications and technology marketplace is constantly innovating and rapidly changing, and that nuances in the law can have a profound effect on content providers and consumers,” added House Communications and Technology Subcommittee Chairman Greg Walden (R-OR). “Providing consumers with a vibrant and innovative content delivery system in the 21st century is an important objective of our #CommActUpdate. In that effort, we will carefully balance the competing marketplace interests to make sure that this industry continues to innovate, localism is preserved, and consumers ultimately come out on top.”
“The ABC v. Aereo case highlights the regulatory uncertainty that exists in the rapidly evolving video marketplace as a result of our country's outdated communications laws,” said House Communications and Technology Subcommittee Vice Chairman Bob Latta (R-OH). “I look forward to working with Chairmen Upton and Walden in engaging in a comprehensive review of the Communications Act to ensure our policies foster robust investment and innovation in the 21st century digital economy.”

“21st Century Fox welcomes the US Supreme Court’s ruling, a decision that ultimately is a win for consumers that affirms important copyright protections and ensures that real innovation in over-the-top video will continue to support what is already a vibrant and growing television landscape," said Fox.

“We are gratified that the Court’s decision adopted a sensible middle ground, holding that unlicensed retransmission services like Aereo violate the copyright law, while protecting consumer-friendly, cloud-based technologies, such as RS-DVR. The real winner today is the consumer who will continue to benefit from future innovation," Cablevision said.

“Aereo was using technology, in this case thousands of dime-sized antennas, in a blatant attempt to circumvent copyright law and to profit from broadcasters’ content without compensating them," said Media Institute President Patrick Maines. The instituted had filed an amicus brief in support of broadcasters. "The Supreme Court has struck a strong blow in support of our copyright system. The Court has affirmed that technological schemes cannot be used as loopholes to avoid paying for copyrighted content.”

SAG-AFTRA was applauding the protection of its members’ content and business model. "[T]he US Supreme Court’s decision in the Aereo case... sends a clear and strong message that the Court will not permit companies like Aereo to use inconsequential technical workarounds to evade Congress’ intent to protect content creators and owners in the Copyright Act," the union said. "By adopting a practical analysis that recognizes the extraordinary similarity between Aereo and the cable systems Congress expressly regulated in the Act, the Court rightly focuses on the use of copyrighted works and refused to be sidetracked by the inconsequential technical details with which Aereo attempted to cloak itself. But in doing so, the Court properly limited the scope of the decision so that cloud services and other technological innovations are neither inhibited nor limited. This decision gives the creative community greater confidence that copyright law cannot be so simply evaded and restores the proper balance to the system.

“We are disappointed that the Supreme Court today ruled against innovator Aereo," said Consumer Electronics Association President Gary Shapiro, "but are pleased the Court said it favored future innovation and specifically referred to the Sony Betamax principles of fair use as a safety valve for new services and technologies. We especially appreciate Justice Scalia’s powerful dissent describing how innovation is often opposed by incumbents who make false, ‘the sky is falling’ predictions about the future."

"It is very unfortunate for consumers that the Supreme Court has ruled against Aereo, which has provided an innovative service that brings consumers more choices, more control over their programming, and lower prices,” said Public Knowledge President and CEO Gene Kimmelman. "We're concerned that the court's misreading of the law leaves consumers beholden to dominant entertainment and cable companies that constantly raise prices and gouge consumers. This decision, endangering a competitive choice for consumers, makes it all the more important for the Department of Justice and Federal Communications Commission to guard against anti-competitive consolidation, such as the Comcast/Time Warner Cable merger.”

“We’re disappointed that the Supreme Court has ruled to make it harder for consumers to access and watch broadcast television when and where they want," said Ellen Bloom, senior director of federal policy for Consumers Union. "We think Aereo was on to something by filling a need for low cost, flexible viewing options. As cable prices keep skyrocketing, the consumer demand will continue to grow for more personalized, affordable ways to watch television."

“We are greatly disappointed with today’s Aereo ruling and we believe that the majority’s opinion failed to reflect the reality of today’s media landscape," said Parents Television Council President Tim Winter. "This is a ruling for the status quo that hurts consumers. Aereo had the potential to break up the bundled-channel cable TV model that is forcing Americans to pay higher cable bills year after year for channels they don’t want or don’t watch."

Aereo is dead, so what's next for television?

The broadcast industry can breathe again: Aereo -- the startup that streamed broadcast TV over the Internet for cheap -- is dead. Or at least, the incarnation of Aereo that wasn’t paying copyright fees is dead, thanks to a Supreme Court ruling. So what happens now?

A decision in favor of Aereo would have changed things quite a bit for the television industry, but the ruling means back to business as usual. While some have raised fears that the opinion will impact cloud computing services, the court intended for the ruling to apply narrowly to Aereo. "It just means you can expect more of the same," says Michael Greeson, president of The Diffusion Group, a research firm focused on the future of TV. "The broadcasters won the case. There were no caveats, except for that this is a limited case. It would be untenable to extend this decision beyond its limited scope."

Reacting to the news, Aereo CEO Chet Kanojia said that "our work is not done," and that it will "continue to fight for our consumers." Realistically, though, the company is unlikely to survive. "Aereo will go out of business immediately," Greeson says. The fees Aereo is now required to pay broadcasters, which can range from a few cents to a few dollars for every channel, for every subscriber, every month, will make it impossible to continue charging only $8 to $12 a month.

For consumers, the ruling means no change in the high prices from cable companies and limited options for watching TV online or on mobile devices. Cable companies have started to offer streaming online options and mobile apps like Time Warner’s TWC TV app and Comcast’s Xfinity streaming service, but those offerings are expensive, slow to roll out, and tend to be poorly designed.

Advocacy Groups Push Coding as a Core Curriculum for Schools

Technology proponents don’t need to make a case for the role of computer science in tomorrow’s job market. Today, it’s self-evident in the economy and daily life.

Tech advocates, however, are calling on educators to prepare students by institutionalizing computer science in core curriculums.

On the front lines of this campaign is Code.org. The advocacy group, which offers educational tools for teachers and students, lobbies to yoke computer science alongside traditional mathematics and science courses at all grade levels. T

he organization gained notoriety in 2013 with its Hour of Code campaign, which, since its launch in December, has drawn more than 38 million students who’ve participated in the campaign’s coding activities -- with 10 million, its initial goal, in the first three days of the campaign.

Roxanne Emadi, a promotional strategist for Code.org, says despite technology's pervasiveness there is great need for educators to distinguish between computer science, the study of how computers work, from technology training, where students learn software programs to accomplish tasks.

"We think there's a big difference between knowing how to use technology and knowing how to create technology,” Emadi said.

New Initiative Launched to Increase Latino Inclusion in News Coverage

The National Hispanic Media Coalition (NHMC) has launched the Latino Experts Program, funded by the WK Kellogg Foundation and created to increase the visibility of Latino experts in local news coverage.

NHMC president and CEO Alex Nogales training Latino leaders to speak in media. Over a two-year span, NHMC trained more than 100 Latino leaders, representing various fields of expertise and based in 12 television markets, to speak in media.

“Latinos are an integral part of the American social fabric, but you wouldn’t know that from watching the news,” said Alex Nogales, President and CEO of NHMC, a multiple Emmy Award-winning producer who led the trainings. “It’s time for the media to reflect reality. There are thousands upon thousands of Latino experts in their field, working to make this country better for all Americans. Latino views and faces are essential for balanced and responsible coverage, and yet they are still largely excluded. We now have the opportunity to transform this by elevating Latino perspectives on the issues shaping our country.”

NHMC has provided lists of these experts as resources for local television stations to ensure a wider range of viewpoints on their news and public affairs programs.

Twiplomacy Study 2014

World leaders vie for attention, connections and followers on Twitter, that’s the latest finding of Burson-Marsteller’s Twiplomacy study 2014, an annual global study looking at the use of Twitter by heads of state and government and ministers of foreign affairs.

While some heads of state and government continue to amass large followings, foreign ministers have established a virtual diplomatic network by following each other on the social media platform.

For many diplomats Twitter has becomes a powerful channel for digital diplomacy and 21st century statecraft and not all Twitter exchanges are diplomatic, real world differences are spilling over reflected on Twitter and sometimes end up in hashtag wars. More than half of the world’s foreign ministers and their institutions are active on the social networking site. Twitter has become an indispensable diplomatic networking and communication tool.

As of 25 June 2014, the vast majority (83 percent) of the 193 UN member countries have a presence on Twitter. More than two-thirds (68 percent) of all heads of state and heads of government have personal accounts on the social network. As of 24 June 2014, the vast majority (83 percent) of the 193 UN member countries have a presence on Twitter. More than two-thirds (68 percent) of all heads of state and heads of government have personal accounts on the social network.

US President @BarackObama and the @WhiteHouse are the most popular among their peers, followed by 222 and 179 peers respectively. The Venezuelan presidency (@PresidencialVen) has sent close to 50,000 tweets, averaging almost 40 tweets each day. The Foreign Ministry of Venezuela (@vencancilleria) places second with more than 42,000 tweets sent, followed by the Mexican Presidency (@PresidenciaMX) with 38,000 tweets sent. The Mexican presidency is also the most prolific, posting on average 78 tweets each day.

FCC’s Wheeler Quietly Visits Silicon Valley to Talk Net Neutrality

Federal Communications Commission Chairman Tom Wheeler is visiting Silicon Valley to get an earful from the tech community about what they think about his network neutrality proposal.

Chairman Wheeler reportedly met with a group of venture capitalists for a roundtable discussion about net neutrality and is meeting with a group of startups today, according to a person with knowledge of the meetings. Among the attendees, representatives from Y Combinator, Mozilla, Andreessen Horowitz’s (and former DC mayor) Adrian Fenty, Homebrew’s Hunter Walk and Engine Advocacy, the public interest group which has been responsible for whipping up support among startups for net neutrality.

“An Open Internet is an essential foundation for startups to build upon so very glad that Chairman Wheeler is spending time in Silicon Valley meeting with entrepreneurs, tech execs and investors,” Walk said. Many of the people in the meetings represent companies that signed onto a letter raising concerns about Chairman Wheeler’s recent net neutrality proposal, which opens the door to allowing broadband providers to sell fast-lane service to content companies.

Why Aereo Loss Will Discourage Technology Innovation in Hollywood

[Commentary] The decision by the US Supreme Court to back US broadcasters against the upstart service Aereo will send a clear message to innovators: Don't.

It makes a nice short-term win for the broadcasters who have legacy businesses and retransmission fees to protect. But it's a long-term loss for the entertainment industry, which can only survive by embracing change, encouraging innovation and being willing to blow up old business models to win in the brave new world of digital media in which we live. Broadcast television already faces a highly challenged business model.

With overall broadcast ratings declining every year and the fragmentation of audience across basic cable, premium cable and a dizzying number of streaming services, the advertising money that is its lifeblood inexorably diminishes.

As a result this industry desperately needs to understand and work with innovators, not shut them out. Change is coming anyway, Hollywood may as well drive it and maintain some sort of control over the pace and nature of that change.