Month: July 2019

Internet Governance

Facebook Under Further FTC Scrutiny: After it was granted authority last month to investigate Facebook for antitrust violations, it was confirmed this week that the FTC formally opened an antitrust investigation of the social network.

Privacy

Facebook, SEC, Reach Settlement Over Disclosures About Risks Of User Data Misuse: Facebook will pay a $100 million fine for allegedly presenting the risk of misuse of user data as hypothetical when it knew user data had actually been misused; in the wake of its settlement with the FTC over privacy violations, Facebook also announced this week that a bug in its code allowed partners access to limited friend data, even though Facebook purportedly cut off such access late last year.

New York City Bill Proposes Ban On Sale Of Location Data: The bill would prohibit cellphone companies and mobile app developers from sharing location data collected within the five boroughs; if the legislation passes, New York would become the first city to ban the sale of geolocation data to third parties.

Information Security & Cyberthreats

Equifax Data Breach Investigations To Settle For $700 Million: Equifax is close to reaching a settlement with federal and state regulators over a 2017 data breach that exposed the personal information of more than 147 million Americans; the proposed settlement amount is the largest ever for a U.S. data breach and includes a restitution fund of up to $425 million to compensate affected individuals.

Intellectual Property

PTAB Invalidates Patent Claims On Electronic Messaging: The Board found that media company TriPlay’s patent for a cross-platform electronic messaging system, which TriPlay alleged WhatsApp to have infringed, was invalid for obviousness in light of three examples of prior art.

Free Expression & Censorship

Tinder Announces New LGBTQ Safety Feature: The dating app will notify LGBTQ users when they open the app in an area that criminalizes same-sex consensual activity and will hide the users’ profiles by default; users will then have the option to make their profile public.

Practice Note

PTAB Releases New Edition Of Trial Practice Guide: The new edition offers guidance for filing multiple petitions challenging the same patent, addresses the practice of patent owners submitting testimonial evidence in their responses to petitions, and emphasizes the importance of prompt adjudication.

On the Lighter Side

Hoverboard Channel Crossing Attempt Fails After Ten Minutes: A Frenchman sought to cross the English Channel on a jet-powered hoverboard that reached an average speed of 87 miles per hour, but the attempt failed halfway through the planned 20-minute crossing.

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

Tom Norton
Executive Director, Fordham CLIP

Alison Gordon
Editorial Fellow

Internet Governance

House And Senate Committees Hold Antitrust Hearings On Amazon, Apple, Facebook And Google: The tech companies’ market power and Facebook’s proposed cryptocurrency, Libra, were the main focus of this week’s hearings; G7 leaders and Treasury Secretary Mnuchin have also expressed skepticism about Libra, and a draft bill targeting the cryptocurrency, the Keep Big Tech Out Of Finance Act, is circulating in the House Financial Services Committee.

Privacy

FaceApp Revives In Popularity Despite Privacy Concerns: The Russian photo-editing app, which allows users to upload photos and make their subjects appear older or younger, is being criticized because uploaded photos are processed in the cloud rather than on local devices; the app can also access photos on Apple devices even where the user’s photo permission setting would prevent any access.

FTC Proposes $5 Billion Fine For Facebook’s Role In Cambridge Analytica Scandal: The fine follows an investigation into whether Cambridge Analytica’s accessing of approximately 87 million Facebook users’ data violated an earlier consent decree; while the fine is the largest ever proposed by the FTC against a tech company, and its largest ever for a privacy violation, some Senators have labeled it “woefully inadequate.”

Information Security & Cyberthreats

Bulgarian Tax Agency Hack Exposes Bulgarian Taxpayers’ Personal And Financial Data: A 20-year-old cybersecurity worker has been arrested in connection with the hack, which is believed to have exposed the data of the majority of Bulgaria’s adult population; depending on the extent of the breach, the tax agency may face a fine of up to 20 million euros.

Intellectual Property

Qualcomm, DOJ, Seek Temporary Pause In Patent Licensing Litigation: The chipmaker is asking the Ninth Circuit to stay a May District Court ruling which found that Qualcomm broke antitrust law by charging cellphone makers high fees for rights to its wireless equipment; the government has requested a pause in the proceedings due to national security interests stemming from Qualcomm’s position as a supplier of 5G technology.

Free Expression & Censorship

Facebook Granted “Shadowbanning” Patent: The patent covers the process by which moderators can demote or hide comments in online forums without the commenter’s knowledge; although the feature is designed to manage offensive content, it stokes concern about social media companies’ control over speech, as reflected in a letter from two Republican Senators to the FTC this week asking it to investigate technology companies’ alleged censorship practices.

Practice Note

USPTO Announces New Rule Requiring All Foreign Trademark Applicants, Registrants And Parties To Be Represented By U.S. Counsel: The rule, announced earlier this month, takes effect on August 3 and is expected to affect tens of thousands of foreign-domiciled participants to USPTO proceedings; the rule is a response to a recent surge in fraudulent, inaccurate, and bad faith submissions.

On the Lighter Side

Uber Passengers Inadvertently Charged 100 Times The Advertised Price: The glitch, which triggered fraud alerts and maxed out customers’ credit cards, affected passengers in San Diego and Washington, with one rider charged $9,672 for a $96.72 fare.

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

Tom Norton
Executive Director, Fordham CLIP

Robert Chislett
Alison Gordon
Editorial Fellows

Internet Governance

FCC Preempts San Francisco Broadband Ordinance: The Commission voted three to two to block an ordinance prohibiting building owners from denying ISPs access to a building’s existing wiring; opponents of the FCC’s proposed order criticize its potentially anticompetitive effect.

Privacy

FBI, ICE Use Facial Recognition Software To Search Driver’s License Databases: Facial recognition technology-assisted searches designed to identify suspects, witnesses, and bystanders that are reportedly conducted without warrants or court orders face scrutiny following a House Homeland Security Committee hearing this week; the Privacy and Civil Liberties Oversight Board has also announced it will investigate the use of facial recognition software in aviation security.

Victim Of Electric Scooter Hit-And-Run Seeks User Data From Chicago Scooter Companies: A cyclist injured in the collision petitioned ten scooter companies for data on all riders in the area at the time of the incident; the case tests companies’ promises to protect riders’ privacy and data.

Information Security & Cyberthreats

British Airways And Marriott Face Record GDPR Fines For Data Breaches: The U.K. Information Commissioner’s Office has proposed fines on British Airways and Marriott of $230 million and $124 million, respectively, in response to data breaches discovered in 2018.

Intellectual Property

Patent Rejected For Smartphones-As-Remote Controls: The Federal Circuit upheld the PTAB’s rejection of smart home technology manufacturer Universal Electronics’ patent for connecting smartphones to televisions for use as remote controls on the basis that the invention was obvious based on a combination of earlier inventions.

Free Expression & Censorship

Federal Court Rules President Trump’s Twitter Blocking Unconstitutional: The Second Circuit affirmed a district court ruling that the President’s blocking of Twitter users amounts to an unconstitutional restriction of speech under theFirst Amendment’s public forum doctrine; the public’s right to criticize politicians online has spurred two lawsuits filed by New York politicians against Rep. Ocasio-Cortez for similar management of her official Twitter account.

Practice Note

California Senate Committee Amends Three Of Five CCPA Bills Now Pending Final Approval: Three of five business-backed bills were pushed forward with consumer-friendly amendments that, among other things, increase the transparency of employer surveillance practices and provide greater information for consumers who wish to contact online businesses regarding data use.

On the Lighter Side

Tesco Supermarkets Soon To Implement Cashierless Stores: Cameras and sensors powered by artificial intelligence will detect products selected by customers and automatically charge customers as they leave the store.  

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

Tom Norton
Executive Director, Fordham CLIP

Robert Chislett
Alison Gordon
Editorial Fellows