CLIP-ings: June 8, 2018

Internet Governance

SEC Appoints First-Ever Digital Currency Specialist: Monday saw SEC veteran Valerie A. Szczepanik named the commission’s first Senior Advisor for Digital Assets and Innovation; in her new role, Szczepanik will be responsible for coordinating all SEC efforts regarding the application of US securities laws to digital asset technologies as well as classifying and understanding technologies which don’t always fit into traditional frameworks.

Putting Theory into Practice: Following humanitarian concerns regarding the possible application of security technologies displayed last month at China International Big Data Expo, comes a study by the Economist shedding light on how China uses such tools to suppress dissent in its Xinjiang Province; featured prominently is the government’s Integrated Joint Operations Platform (IJOP), which uses machine-learning, cameras, smartphones, financial records, and electricity bills to generate lists of subjects for detention.

Working Remotely? Come to Vermont: The Green Mountain State continues to lead State-driven initiatives to promote population connectivity and boost its tax revenue; with a small and rapidly aging population, Vermont has signed into law $10,000  grants to cover relocation expenses, including work space, computer, and internet access, for the first 100 out-of-state employees to become full-time residents on or after January 1, 2019.

Privacy

Another Strike for Facebook: Facebook said it has been sharing user data with four Chinese device makers, including Huawei, a company that US intelligence agencies have described as a security threat, fueling further concern about Facebook’s privacy and information security policies; Facebook defended itself by saying that the partnerships were forged several years ago “when mobile phones were less powerful and app stores did not yet exist,” and stated that the partnership with Huawei will shut down this week.

Smile! You’re on Camera: DHS is launching a test of a facial recognition system that scans people entering and leaving the country through the US/Mexico border by capturing an image of the people inside the car; this test is part of a larger biometric data project currently going through a pilot program at eight U.S. airports and raised concerns in ACLU lawyers about the rise in the sophistication of surveillance technology used by the federal government.

Information Security and Cyberthreats

#ThatHappened: Gizmodo reported that new FCC emails obtained by advocacy group American Oversight casts further suspicion on the FCC’s claim that the outage of a comment system regarding net neutrality rules in 2017 was caused by a DDoS attack rather than heavy traffic generated by citizens attempting to comment; Separately, the New York State Attorney General’s Office is currently investigating fraud in the net neutrality comments process and has accused FCC Chairman Ajit Pai of withholding necessary information.

Credit card security, “priceless”: Last Friday witnessed an unprecedented hardware failure in Visa’s payment system across Europe, preventing many of today’s plastic-dependent consumers from purchasing goods and services; the company has since dispelled any hacking or data breach concerns and stated that its payment system is now operating at full capacity.

Intellectual Property

He Said What? Researchers at Stanford and other renowned technology institutes have submitted a paper to SIGGRAPH titled “Deep Video Portraits” that describes a refined method of generating highly convincing videos that reproduce the facial expressions and motions of a person by using the face of another; “Deepfakes,” videos that insert faces of celebrities into pornography and other videos have already been a topic of controversy this year–Jordan Peele raised awareness about this technology with a viral video in April.

Public’s Right of Access to Patent Briefs: This week, Electronic Frontier Foundation sent a letter to the Federal Circuit asking the court to allow public access to patent briefs pending review by the Clerk’s Office; the current practice of disabling public access until the briefs are accepted sometimes burdens those who submit amicus briefs because they are unable to read the brief and so prevent duplicating arguments.

Free Expression and Censorship

To Filter or To Not Filter: Youtube is being accused of discrimination because its automated filtering algorithm has been found to demonetize or remove videos with LGBT content in addition to failing to prevent anti-LGBT advertisements appearing before such videos; having recently faced similar criticisms about discrimination and abuse of discretion, Spotify and Valve officially announced this week that they are rolling back their policy of blocking undesirable content.

When Saying Less is More: In the signal-driven world which drives capital markets, a single Tweet may have grave consequences; whereas disagreement exists over the impact of President Trump’s preemptive post “Looking forward to seeing the unemployment numbers at 8:30 this morning,” multiple economists assert that the act violates custom and, perhaps, federal regulation – the reality is that many trading firms already track social media traffic in the hope of anticipating events.

Practice Note

Back to Contracts 101: Dismissal of TWiT LLC’s trademark lawsuit against Twitter Inc in the Northern District of California, alleging that the latter violated a “coexistence” agreement, serves as a sobering reminder that, where required elements of a contract are absent, there is no contract.

On The Lighter Side

Alternative Diplomacy: As the likelihood of a Trump-Kim summit in Singapore becomes an ever-greater reality, let us not forget the original North Korean relations trailblazer – Dennis Rodman; the retired basketball star, who has actively promoted digital currency PotCoin in the past, is reportedly seeking funding from the startup for his new peace mission.


Joel R. Reidenberg
Stanley D. and Nikki Waxberg Chair and Professor of Law
Founding Academic Director, Fordham CLIP

N. Cameron Russell
Executive Director, Fordham CLIP

Mindy Nam
William Ioas
Editorial Fellows, Fordham CLIP

CLIP-ings: June 1, 2018

Internet Governance

Grace Period Ends — GDPR Enforcement Begins: The EU’s General Data Protection Regulation (GDPR) is in effect as of May 25, 2018, giving teeth to the union’s asserted fundamental right to data protection by expanding the scope of what companies must consider personal data, increasing EU residents’ personal control over their data, and extending liability to any company collecting, storing, or processing personal data; fines are steep (up to 4 percent of a company’s global revenue), and privacy advocate noyb.eu has already filed four complaints against Google, Facebook, Instagram, and WhatsApp.

You Can Have Your Lights On and Cryptos Too: Striking a balance between residences, businesses, and cryptocurrency miners, Quebec’s government will lift its moratorium on the sale of electricity to miners during off-peak grid hours – an approach lauded for its balancing of social and technological interests at a time when miners are relocating from increasingly crypto-skeptical China to energy rich Quebec.

Making a List Of The Listmakers: Vermont passed a first-of-its-kind law that requires data brokers to register with the State, make disclosures to consumers and meet a minimum security standard; until this law, data brokers have been operating unregulated for years, quietly selling personal information to a variety of industries from advertising to banking.

Privacy

Email Privacy Act: The House of Representatives approved a bill containing the Email Privacy Act which codifies the 6th Circuit decision in Warshak that provides warrant protections for emails, chats, and online traded messages that the government requests from service providers; however, the future of the bill is uncertain as the Senate Republicans have been resistant to the Email Privacy Act in the past.

Getting Good With Faces: In a purported effort to prevent school shootings, the Lockport school district in New York has joined the new trend of schools deploying face recognition technology many believe to be ineffective while creating the risk of surveillance on students which could hinder the students psychologically and may disparately impact students of color; in a similar vein, Orlando Police Department confirmed this week that three surveillance cameras in downtown Orlando are equipped with face recognition technology to ACLU’s vehement disapproval.

Information Security and Cyberthreats

“The Current Situation Is Untenable”: OMB has found that nearly three-quarters of federal agencies lack even basic cybersecurity capabilities such as detecting cyber-intrusions, which may be difficult to remedy due to the unstandardized array of IT systems currently used; two weeks prior to the release of the OMB report, the White House eliminated the top cyber policy role in an effort to “streamline authority.”

Can Zou Hear Mich? Developed by a group of Austrian scientists, sonic firewalls respond to acoustic cookies’ (a.k.a. ultrasound beacons) use of covert audio signals to track ads and communicate silently with other devices without the owner’s knowledge; sonic firewalls do so by playing their own inaudible sound over any others with an option for creating exceptions.

Intellectual Property

Yo Soy Boricua Pa’ Que Tú Lo Sepas: “I’m Puerto Rican just so you know.” When a 1996 hit refrain turns into a popular expression, the line between copyrightable subject matter and fair use may become obfuscated; this is the problem Joel Bosch faces in his suit against Sony Music for use of his lyrics as a title for its 2014 album compiling hits from multiple Puerto Rican artists.

Google v. Oracle: Google filed a petition for an en banc rehearing on the copyrightability of an API naming system after the Federal Circuit, in March, found that Google infringed on Oracle’s copyright by copying  the names, organization, and functionality of the Java APIs in the Android OS; Google is arguing that API naming systems are systems of operation and thus not entitled to copyright protection and that the use of API declaration in a new context is protected by the fair use doctrine.

Free Expression and Censorship

Can’t Block This: Rejecting the view that tweets are not state action because they simply utilize a functionality available to all Twitter users, the SDNY’s Judge Buchwald ruled on Summary Judgment that the President’s use of Twitter constitutes (1) an official use of a public forum, (2) subject to government control, (3) where blocking users, constitutes an impermissible violation of the First Amendment’s protection of political speech.

No Politics Please: Facebook blocked divisive ads from foreign sources relating to Ireland’s Abortion Referendum in order to showcase their ability to curtail foreign meddling in political affairs in the aftermath of the 2016 election (Google also blocked all referendum-related spots); Facebook has also rolled out a new policy in the US that imposes heightened authorization requirements on those seeking to promote political content but its tendency to flag false positives and the general vagueness on what constitutes a “political ad” have infuriated many advertisers.

Practice Note

Get Off My Domain! UDRP permits the transfer of a domain name from a cybersquatter to the complainant if the complainant can prove that the disputed domain infringes on their trademark and was registered in bad faith; the factors that influence the complainant’s chances of prevailing in a WIPO arbitration includes the uniqueness of their trademark, the scienter of the respondent and the content of the webpage under the domain.

On The Lighter Side

Not Your Kid’s Kinda Muppets: Alleging that upcoming puppet crime-comedy film The Happytime Murders’ marketing campaign causes brand confusion and tarnishes the name of Sesame Street, the company’s parent filed suit in the SDNY against STX Productions; the Court said on Wednesday that STX may continue to use the tagline “No Sesame. All Street,” the turf war goes on.


Joel R. Reidenberg
Stanley D. and Nikki Waxberg Chair and Professor of Law
Founding Academic Director, Fordham CLIP

N. Cameron Russell
Executive Director, Fordham CLIP

Mindy Nam
William Ioas
Editorial Fellows, Fordham CLIP