July 2011

Los Angeles County starting over on emergency communications system

Los Angeles County leaders put the county at risk of losing hundreds of millions of dollars in federal funds when they voted to scrap years of planning for a vast emergency communications system and restart the search for companies to build the complex project.

The drastic decision came three years after officials from the county and the many independent cities within its borders launched the massive project, which is expected to cost about $700 million to design and build. The communication system is intended to allow the scores of police, fire and other emergency-response agencies in the sprawling county to communicate and share data during major incidents such as an earthquake or terrorist attack. In early June, however, county attorneys raised concerns that the nearly completed contract violated state rules on how contracts for publicly funded projects must be structured and awarded, said Patrick Mallon, the project's executive director.

Online marketers hit hard by California's new online-sales tax

When Gov Jerry Brown (D-CA) signed the state's new online-sales tax law last month, Seattle-based Amazon and other out-of-state Web retailers immediately severed ties with thousands of California affiliates, arguing the move would put them beyond the reach of the state's taxman.

Among the victims: ShoesRUs, Nick Loper's comparison shopping website for shoes, confronting the Livermore entrepreneur with a life-changing reboot. After six years of growing what started as a $200-a-month business into a profitable full-time gig, Loper said he had no choice but to shutter his site, suddenly deprived of 70 percent of the commissions he'd earned sending customers to the big retailers via click-through ads on his site. Loper's site is fairly typical of those of affiliate marketers, who set up a website about fly-fishing, say, blog about the subject to draw readers in, then hope they click on an ad for FlyFishUsa, go to that site, and buy a fly reel, generating a commission of up to 20 percent for the affiliate. The sales-tax crisis has pulled back the curtain on this curious subculture, a corner of the Internet that Loper said was once dominated by "porn and pop-ups" but which has cleaned up its act and last year generated nearly $2 billion in ad revenue in California. Its inhabitants span a colorful spectrum, from advertising rock stars revered by their peers to home-based dreamers who end up losing their shirts.

Feds stonewall on cell phone tracking of Americans

In a letter to two US Senators, the Obama Administration has refused to publicly disclose the extent of government tracking of American citizens -- or even to describe the legal basis on which it is conducting such tracking.

"We will get back to you," the letter says. Sens Ron Wyden (D-OR) and Mark Udall (D-CO) have emerged in recent months as the Senate's leading critics of unfettered government surveillance. In mid-July, they sent a letter to Director of National Intelligence James Clapper seeking information about whether the federal government had "the authority to collect the geolocation information of American citizens for intelligence purposes." They also asked about the number of Americans whose communications have been intercepted (FISA warrants are only supposed to target non-Americans) and details on rumored incidents of intelligence officials failing to comply with the law. In a July 26 letter, Clapper aide Kathleen Turner politely brushed aside all of these questions. She refused to publicly divulge any details about the nature, extent, or legal basis of the government's domestic spying activities. Instead, she directed Wyden and Udall to classified materials the administration had already made available to members of Congress, and offered to discuss the Senators' concerns in greater detail in a classified briefing.

Republicans demand network neutrality documents

The House Commerce Committee pressed the Federal Communications Commission for all documentation of the rulemaking process behind the agency's network neutrality regulations.

Reps Fred Upton (R-MI), Cliff Stearns (R-FL), and Greg Walden (R-OR) requested all communications between June 25, 2009, and December 21, 2010, when the rules were passed, between any FCC staffer and the Obama Administration as well as all memos, analysis and reports related to the network neutrality. The lawmakers also seek all communications regarding the Open Internet conditions attached to the FCC's approval of Comcast purchasing a majority stake in NBC Universal.

The lawmakers cited reports that FCC Chief of Staff Edward Lazarus attended White House meetings where network neutrality rules were debated as evidence the FCC's rules passed in December were politically motivated. The Reps also pointed to an investigation from Judicial Watch that unearthed e-mails from the advocacy group Free Press to aides of FCC Commissioner Michael Copps advocating strongly for network neutrality, which Commissioner Copps supported.
The lawmakers request a response by August 12. The FCC indicated it plans to comply with the request.

Congressional Intent for Set-Top Boxes Unfulfilled, Groups say

A coalition of consumer electronics companies and public interest groups say the cable industry has not demonstrated any progress towards a robust retail market for set-tops and is instead trying to forestall Federal Communications Commission action to create that market. "In fact, they confirm that after a decade and a half of product demonstrations and announcements, the mandate established by Congress in Section 629 remains unfulfilled," said the groups, led by the Consumer Electronics Association.

NAB Runs Full Court Press on Auction Action

The National Association of Broadcasters is cranking up its grassroots lobbying machine out of concern that Congress may vote on a debt reduction package this week that will grant the Federal Communications Commission authority to conduct incentive auctions of broadcast TV spectrum without adequate protections for broadcasters who choose not to participate in the auctions.

"It’s all hands on deck for us,” says NAB spokesman Dennis Wharton. "We think this is about as big a threat as there is in terms of the future of our business. We have one chance to get this right."

The focus of NAB's concern is the debt reduction plan authored by Senate Majority Leader Harry Reid (D-NV). Reid’s proposal, like the pending Senate bill (S.911), would permit the FCC to conduct incentive auctions of TV spectrum and share the proceeds with broadcasters who give up spectrum. But Reid’s proposal is worrisome because, unlike S. 911, it does not contain any "replication or interference protections" for local TV stations that chose not to relinquish their spectrum, according to industry sources familiar with the plan.

Social Media: Federal Agencies Need Policies and Procedures for Managing and Protecting Information They Access and Disseminate

Federal agencies are increasingly making use of social media technologies, including Facebook, Twitter, and YouTube, to provide information about agency activities and interact with the public. While the purposes for which agencies use these tools vary, they have the potential to improve the government’s ability to disseminate information, interact with the public, and improve services to citizens.

However, the widespread use of social media technologies also introduces risks, and agencies have made mixed progress in establishing appropriate policies and procedures for managing records, protecting the privacy of personal information, and ensuring the security of federal systems and information. Specifically, just over half of the major agencies using social media have established policies and procedures for identifying what content generated by social media is necessary to preserve in order to ensure compliance with the Federal Records Act, and they continue to face challenges in effectively capturing social media content as records. Without clear policies and procedures for properly identifying and managing social media records, potentially important records of government activity may not be appropriately preserved. In addition, most agencies have not updated their privacy policies or assessed the impact their use of social media may have on the protection of personal information from improper collection, disclosure, or use, as called for in recent OMB guidance. Performing PIAs and updating privacy policies can provide individuals with better assurance that all potential privacy risks associated with their personal information have been evaluated and that protections have been identified to mitigate them. Finally, most agencies did not have documented assessments of the security risks that social media can pose to federal information or systems in alignment with FISMA requirements, which could result in the loss of sensitive information or unauthorized access to critical systems supporting the operations of the federal government. Without conducting and documenting a risk assessment, agency officials cannot ensure that appropriate controls and mitigation measures are in place to address potentially heightened threats associated with social media, such as spear phishing and social engineering.

To ensure that federal agencies have adequate guidance to determine the appropriate method for preserving federal records generated by content presented on agency social media sites, we recommend that the Archivist of the United States develop guidance on effectively capturing records from social media sites and that this guidance incorporate best practices.

[GAO-11-605]

Subcommittee on Antitrust, Competition Policy and Consumer Rights
Senate Committee on the Judiciary
Wednesday, September 21, 2011
http://judiciary.senate.gov/hearings/hearing.cfm?id=3d9031b47812de2592c3...

Panel I

Eric Schmidt
Executive Chairman
Google Inc.
Mountain View, CA

Panel II

Jeff Katz
Chief Executive Officer
Nextag, Inc.
San Mateo, CA

Jeremy Stoppelman
Co-founder and Chief Executive Officer
Yelp, Inc.
San Francisco, CA

Thomas O. Barnett
Partner
Covington & Burling LLP
Washington, DC

Susan A. Creighton
Partner
Wilson Sonsini Goodrich & Rosati, PC
Washington, DC



Senators introduce data-security bill

Sens. Tom Carper (D-Delaware) and Roy Blunt (R-MO) introduced data security legislation meant to combat identity theft. The Data Security Act would require financial establishments, retailers and federal agencies to protect sensitive information and to notify consumers after a data breach. The measure is similar to one introduced in the House by Rep. Mary Bono Mack (R-CA). The Commerce, Manufacturing and Trade Subcommittee approved her bill last week, and it is currently awaiting a vote from the full Energy and Commerce Committee.

Apple vs. Samsung: the real battle for mobile supremacy

We hear so often that the future of mobile will boil down to an entrenched battle between Apple and Google, or the iPhone and Android. But that’s far too broad a way of looking at things. True, Android has established itself as the dominant smartphone OS, but that includes many smartphones from different companies, compared to just Apple and its iPhone. There is, however, a particular hardware maker making excellent use of Android to take it to Apple on several fronts. That’s Samsung. And how the battle between the two plays out over the next few years is going to be fascinating.

The best illustration of the brewing brouhaha came just last week when Apple announced that between April and June of this year it sold more than 20 million iPhones. Wall Street gossip indicates Samsung may announce somewhere between 19 million and 21 million smartphones sold during the second quarter with its earnings results. In other words, the two are pretty much neck and neck in smartphone momentum right now.