Diminishing software copyright by overbroad applications of fair use or denial of protection would be a “step in the wrong direction,” Copyright Alliance CEO Keith Kupferschmid said Tuesday at an FTC hearing. The software industry would be forced to retrench to a closed model, no longer sharing code and instead relying on proprietary contracts to keep code protected, he said. He repeated his organization’s support for HR-3945, which would establish a voluntary small claims tribunal in the Copyright Office. Public Knowledge Policy Counsel Meredith Rose urged the FTC to collaborate with the Copyright Office on the overlap between copyright and competition, which increased with IoT technology. Hearings on copyright continue Wednesday (see 1810110056).
Karl Herchenroeder
Karl Herchenroeder, Associate Editor, is a technology policy journalist for publications including Communications Daily. Born in Rockville, Maryland, he joined the Warren Communications News staff in 2018. He began his journalism career in 2012 at the Aspen Times in Aspen, Colorado, where he covered city government. After that, he covered the nuclear industry for ExchangeMonitor in Washington. You can follow Herchenroeder on Twitter: @karlherk
NTIA officials organized private meetings this summer with at least 14 different groups representing tech, telco and other industry interests to discuss the Trump administration’s privacy principles (see 1810100057), according to documents we obtained through a Freedom of Information Act request. Of the 21 groups included in some 60 NTIA documents, four were consumer or privacy advocates. Industry representatives and a former senior-level FTC official defended the gatherings. Consumer groups said the process was skewed.
Big-tech acquisitions of startup competitors are harmful because startups usually deliver the “paradigm shifting innovations,” FTC staffer Lina Khan said at Wednesday’s competition policy hearing (see 1810160062). Antitrust enforcers should be wary of seemingly harmless acquisitions like Facebook’s 2013 buy of VPN provider Onavo, argued Khan, a staffer for Commissioner Rohit Chopra and fellow at Columbia University Law School. Onavo grants users heightened security, but it allows the social network to track in “extremely close detail” which rival apps are diverting attention from Facebook, she said. This allows the platform to detect which startups are the biggest competitive threat, shaping acquisition strategy and leading to purchases of apps like tbh and Moves, Khan said. These types of acquisition might not directly affect competition in the digital market, but they improve Facebook’s position and strengthen its leverage as incumbent, she said. It’s unclear how much competition is the right amount to produce a healthy amount of innovation, argued University of California-Berkeley economist Steven Tadelis. Companies need market power to reap the benefits of innovation, he said. Tadelis is convinced current antitrust tools guided by solid economic thinking are adequate, and each case should be evaluated on its own merits. Former FTC General Counsel Willard Tom, now at Morgan Lewis, agreed existing antitrust tools are adequate. Early stage entry is now extremely cheap and easy, given cost reductions with cloud computing, Tadelis said.
Antitrust action against Microsoft in the late 1990s enabled an explosion of innovation, allowing platforms like Google, Facebook and Amazon to solidify dominant positions, academics said Tuesday at FTC hearings (see 1810150052). Microsoft let companies use the internet as a development platform and expand using HTML protocol, said Columbia University Law School professor Tim Wu.
The FTC needs a better understanding of “mass data surveillance” to decide whether current rules distort the competitive process, Commissioner Rohit Chopra said Monday during the agency’s third policy hearing (see 1810020061). Differing views were heard on the state of competitive tech markets.
Administrator David Redl said Friday he's hopeful comments on NTIA’s privacy principles (see 1810100057) will show privacy and innovation can be maximized under a new federal privacy framework. NTIA met with more than 60 companies, groups and individuals before the comment solicitation, he said. One message the agency heard from the tech industry is that privacy and innovation are “not mutually exclusive goals,” Redl told the Brookings Institution.
The thrust of a forthcoming privacy bill from Sen. Ron Wyden will be a “different brand” of tech sector transparency with “consequences” for transgressing companies, the Oregon Democrat told us. Also Thursday, Senate Commerce Committee leadership hammered Google for not disclosing sooner its recent Google+ vulnerability (see 1810100066), given the company’s chief privacy officer testified months after the issue reportedly was discovered (see 1809260050).
Sen. Richard Blumenthal, D-Conn., told us Tuesday he would call for a full FTC investigation of Google’s recently disclosed Google+ privacy vulnerability (see 1810090056). He repeated that demand Wednesday during a Senate Commerce Committee hearing in which lawmakers discussed policy and FTC authority with privacy experts.
A point of contention between industry and consumer groups will be how lawmakers define FTC rulemaking authority when crafting privacy legislation, experts and witnesses told us. The Senate Commerce Committee holds a hearing Wednesday (see 1810040040) on legislation (see 1809260050), this time with privacy witnesses, after questioning an all-industry panel in the first round.
The Senate Commerce Committee has a staff briefing scheduled this week with Facebook to discuss the recent hack (see 1810020046), a committee aide said Friday. A House Commerce Committee aide said leadership will pursue follow-up briefings with Facebook after a preliminary phone conversation with staff Thursday. Questions remain about the impact on third-party apps from the breach, the House Commerce aide said. The House Judiciary Committee, which didn’t comment, also requested a briefing from the platform. Facebook didn’t comment.