Tech Companies Lobby on ECPA, Encryption, Patent Changes, Reports Show
Facebook spent $2.78 million on lobbying spending in Q1, about 14 percent more than what it spent in the same period last year, while Oracle increased outlays for lobbying the federal government for Q1, spending $1.72 million. Both companies lobbied on similar issues, including cybersecurity and intellectual property as well as on House (HR-699) and Senate (S-356) legislation focused on updating the 1986 Electronic Communications Privacy Act (ECPA) (see 1604140010), which the technology industry strongly favors.
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Changes to ECPA, which would update how law enforcement agencies can access electronic communications of people who are targets of investigations, were also issues that firms hired by Google and Microsoft lobbied on. Lobbying disclosure reports for Q1 were available only for a handful of major technology companies, telecom carriers and trade groups by Wednesday, which was the filing deadline. Reports from Apple, Amazon, AT&T, Facebook, Google, Microsoft and Verizon hadn't appeared in the House database as of our deadline, but many lobbying firms hired by the companies had filed their individual reports.
Data security and breach notification was another major issue as was encryption. Although details were sparse in the reports, technology companies are resisting efforts by the federal government to require them to provide keys that would unlock encrypted communications of their customers or force them to create software that would also do that. Fierce Government Relations, which reported receiving $80,000 from Apple, had listed encryption as an issue although the technology company hadn't yet filed its report by our deadline. Google, Amazon and Microsoft also listed encryption as an issue.
Like other tech companies, Facebook lobbied on intellectual property issues, including patent litigation changes such as the Innovation Act (HR-9) (see 1601070062), cybersecurity and data security, more transparency around national security-related orders and the Judicial Redress Act. The act was passed and viewed as an integral part of Privacy Shield, the trans-Atlantic data sharing framework (see 1602240069). Oracle upped its Q1 spending by $430,000, or 33 percent, from the same quarter in 2015. Oracle had hired 11 firms that filed disclosure reports so far, totaling $545,000. Issues generally listed by the firms include cybersecurity, general consumer privacy, technology transfers and export controls, patent legislative changes, Internet and data protection, and several electronic health-related matters. Fierce Government Relations received $90,000, while the Livingston Group was paid $80,000.
Intel's report showed that it spent $1.23 million in Q1, which was about $60,000 more, or 5 percent higher, than in the same period in 2015. The chipmaker lobbied on cybersecurity and customs and trade issues such as trade promotion authority legislation (see 1506120042). Intel also lobbied on cybersecurity, 5G, connected and autonomous vehicles, smart cities and buildings, telehealth expansion and related legislation. A dozen firms so far reported lobbying on Intel's behalf, spending at least $390,000 combined. Issues listed by lobbyists include spectrum policy, intellectual property protection and patent changes such as the Innovation Act (HR-9) (see 1601070062), data breach notification legislation and Internet governance such as the Domain Openness Through Continued Oversight Matters Act (see 1603170051). Firms Kountoupes Denham and McBee Strategic Consulting each received $60,000.
IBM spent $830,000 in Q1, a 17 percent decline from the same period in 2015. The technology company's lobbying issues included electronic health records and other health IT matters, cybersecurity and privacy, intellectual property, data security and breach notification legislation, cloud security, high-skilled immigration and other labor matters, and trade, including the Trans-Pacific Partnership (TPP) agreement. The company had listed only one hired firm so far, paying it less than $5,000.
Sprint lost more lobbying weight this latest quarter, spending $523,041, which is far lower than the $734,927 it spent in the same quarter a year ago, according to its Q1 disclosure report. That also is less than what the fourth-largest carrier spent in each of last year's quarters. In 2015, Sprint spent $747,696 in Q2, $713,843 in Q3 and $635,313 in Q4. Although it employs many lobbying firms, the company itself listed only two lobbyists on its latest form, which mentions lobbying on telecom, copyright, patent overhaul and the Internet tax moratorium. Sprint's 2016 telecom lobbying issues included: special access; 800 MHz rebanding; broadband facility siting; wireless Lifeline/USF; spectrum management; privacy; data security; Mobile Now Act (S-2555); and telecom issues. S-2555 is the spectrum package cleared from the Senate Commerce Committee last month and awaiting action on the Senate floor. The company also lobbied on the wireless buildout of the Washington, D.C., area's mass transit system.
Several companies and trade associations hadn't filed Q1 forms by our deadline. Some entities reported spending more, despite 2016 being a presidential election year with fewer big-ticket priorities on deck. Others, such as the American Cable Association, with $150,000 in quarterly spending, and TracFone Wireless, at $270,000, were flat in their spending. Qualcomm's lobbying spending dropped, from $2.05 million in Q1 2015 to $1.73 million in this year's same quarter. Its lobbying focused on spectrum-related legislation and bills involving patents and intellectual property. Consumers Union spent $70,000 this Q1, or $10,000 less than in the same period last year. It reported lobbying on robocalls and the proposed Charter Communications acquisition deals.
CTA lobbying spending rose to $750,000 this Q1, from $680,000 a year ago. Its lobbyists focused on issues ranging from spectrum to intellectual property to the TPP to drones. ITTA spent more money in Q1: $34,748 this year, up from $20,000 a year ago. ITTA lobbied on changes to the designated market areas (DMAs) for broadcast TV, program exclusivity rules for broadcasters, changes to the USF, municipal broadband, video reform and collection of FCC regulatory fees, which is the subject of a likely amendment at a Senate Commerce Committee FCC reauthorization markup widely seen as on deck for April 27 (see 1604010035). XO Communications' lobbying spending jumped to $160,000, from $110,000 a year ago. Frontier Communications also spent more, $180,000 this year, compared with $140,000 a year ago.
WTA met with FCC and congressional staff to discuss the association's views on what's needed to encourage more video distribution in rural areas and what some of the current problems facing rural video providers are, such as large increases in retransmission consent fees, limited access to affordable video content, small MVPDs' inability to receive adequate broadcast signals and problems with the current designation of DMAs, WTA said in its filing. The association reported it spent $90,000 in Q1, unchanged from last year's Q1. WTA lobbied policymakers in support of the National Tribal Telecommunications Association's tribal broadband factor, which seeks to provide additional USF support to tribally owned telecommunications companies and other telecom companies providing telecommunications and broadband Internet access service on tribal lands.