Government Intervention in On-line Privacy Issue Likely

Users to have select rights about when and how data is collected

With growing reports of data harvesting from people’s accounts with and without permission coming out in a constant stream, and many major on-line players only paying lip service to the idea of individual privacy it now looks like state and Federal Governments will intervene to differing degrees.

Google will be changing privacy rules March 1.

From California to Federal level efforts are now being made to rein in the app developers and afford a level of privacy, or at least provide upfront information about information sharing policies prior to purchase and installation.

On the Federal level the Obama administration has proposed Consumer Privacy Bill of Rights, a seven point proposal that will seek to dramatically increase the privacy of users of the Internet that seeks to protect Americans’ privacy as they use the internet.

The core of the Bill of Rights has seven points:
INDIVIDUAL CONTROL: Consumers have a right to exercise control over what personal data companies collect from them and how they use it.
TRANSPARENCY: Consumers have a right to easily understandable and accessible information about privacy and security practices.
RESPECT FOR CONTEXT: Consumers have a right to expect that companies will collect, use, and disclose personal data in ways that are consistent with the context in which consumers provide the data.
SECURITY: Consumers have a right to secure and responsible handling of personal data.
ACCESS AND ACCURACY: Consumers have a right to access and correct personal data in usable formats, in a manner that is appropriate to the sensitivity of the data and the risk of adverse consequences to consumers if the data is inaccurate.
FOCUSED COLLECTION: Consumers have a right to reasonable limits on the personal data that companies collect and retain
ACCOUNTABILITY: Consumers have a right to have personal data handled by companies with appropriate measures in place to assure they adhere to the Consumer Privacy Bill of Rights.

While this is only a guideline it is being proposed as a regulation that would be administered by the Federal Trade Commission after details of each of these is worked out. The White House has said that it will be working with industry groups and web app developers and publishers on this issue.

In at least one case a state is simply enforcing privacy standards that are on its books. In California the State Attorney General Kamala Harris has announced a deal with the state’s six largest mobile web app providers.

The companies, Apple, Google, Hewlett-Packard, Microsoft, Research-in-Motion and Amazon, which according to Harris account for 95% of all mobile apps distributed worldwide, must now adhere to the California Online Privacy Protection Act that was passed in 2004.

Under the agreement, the companies will place prominent and easy to understand privacy disclosures before a user downloads an app. The push will cover both app developers as well as the larger players such as Apple that distribute the apps.

A lot of players have a vested interest in this. Google and Facebook are massive data harvesters and in a number of ways they will remain unaffected. However Google’s recent move to change its privacy policies looks like one of the many events that have helped quickly push this to the forefront.

Another issue was the discovery that a number of apps were downloading users’ cell phone contacts and address books without clearly letting the user know that they were losing that information.

Major Apps Designed to Data Harvest Apple iOS Users

Is there a mole in your iPhone?

Are iPhone apps stealing data off your smartphone?
In a general sense it looks like the answer is yes, even if you as an individual are unaffected. A series of studies has shown that it looks like the market as a whole has not been immune to this problem but it is running rampart and is lead by some of the leading app developers.

While to some it might seem that harvesting data such as contacts is a minor issue consider that may use their smartphones for both work and personal use and there could be a good deal of proprietary information on the phone.

While the current list of offenders comes from the world of corporate app developers the next generation destined to exploit this issue will no doubt be hackers, something that could pose a major issue to all concerned.

A study by VentureBeat comes after a developer called Path was caught in the act harvesting names, numbers and e-mail addresses and storing that information on its servers. Venture Beat found that this is just the tip of the iceberg and that it is very likely that an iPhone user has one or more of the apps involved.

VentureBeat used a program called mitmproxy that is a traffic monitoring utility to observe data traffic and found that a host of applications were uploading personal data from the iPhones, in some cases unencrypted.

A list of some of the players is a who’s who of apps, much over shadowing the much smaller and less popular Path. Included in this list is Facebook, Twitter, Instagram, Foursquare, Foodspotting, Yelp, and Gowalla. They do not all do exactly the same thing but it is an interesting read over at the VentureBeat site.

At the same time it appears that Google has developed work around for safeguards in Apple’s Safari browser that enable Google to place tracking cookies that circumvent Apple’s default privacy settings. The workaround affected not just iPhones but Mac computers, iPads, and iPod Touch.

Google has said that it has disabled the code that enabled the actions and said that it was unintentional. However a complaint has been filed against the company with the FTC.

Apps for the iOS platform from Apple are in violation of Apple’s guidelines, which prohibits the app from sending information about a user without their permission. The company said that it is working to tighten this up in the future, according to Enterprise Mobility Today.

However it is not just iOS apps that are an issue here. The Federal Trade Commission has just issued a warning that smartphone apps can invade a child’s privacy and advocates are calling for greater safeguards. I wonder if this market segment, largely left to its own devices will start to see the advent of more, and increasingly tougher regulations due to the actions of a few developers.

Google/Motorola deal now awaits Chinese Approval

While it looks like a certainty that the Google/Motorola $12.5 billion deal is going through after getting approval from the appropriate regulatory bodies in both the United States and Europe there is still one major hurdle to overcome.

The wildcard is China, which is also taking a look at the deal and wants to have its say in the matter, and when the world’s largest market wants a say it will get one. The Anti-Monopoly Bureau, part of the Chinese Commerce Ministry is examining the deal; a move that it says is just a routine procedure in all acquisitions, according to Reuters.

The issues they are examining are pretty much the same as in the US and the EU; the deal gives Google a huge number of patents in the mobile phone space and the company already has a popular phone operating system in Android and the capabilities to build smartphones.

Google said that it submitted filings on the deal last September and that China has until March 20th to approve the deal or move to another stage of investigation. Everyone is seeking to ensure that with this wealth of resources Google does not seek to price out rivals or even close the door to competitors that have invested in its OS, leaving them out in the cold.

That issue was recently raised by Meg Whitman, Hewlett-Packard’s CEO, who said that there is a possibility that Android will become a close source OS, moving away from its current position. Of course it should be noted that she was also then touting HP’s WebOS as a viable alternative if this should happen.

Chinese officials said that they doubted that their regulatory bodies would find any more issues that their counterparts elsewhere on the globe. However China has had issues with Google in the past and so there could be bad blood between the two.

Motorola/Google Deal Gets OK-With a Warning

The deal gets approval but EU said it is watching

As expected both the EU and the United States Department of Justice have given Google’s $12.5 billion purchase of Motorola Mobility the go-ahead. At the same time the US approved the purchase of Nortel wireless patents by an Apple-Microsoft led consortium.

From the outside it looks like this sets up a battle royal in the patent space as both now are armed with a host of additional patents and the players on both sides have shown a very ready willingness to go to court to enforce them.

Apple has been strongly going after a number of Android smartphone developers, in particular Samsung, HTC and Motorola. Motorola has been returning fire at Apple, with Google’s approval, while https://www.microsoft.com/Presspass/press/2012/jan12/01-12LGPR.mspx has been quietly but efficiently getting developers’ to pay it for select patents.

However hopefully we will not see a yearlong battle in this space, something that could temporarily blunt the strong growth of smartphones and tablets. No one wants what happened in the last years of dial up modems when conflicting technologies made for incompatibility.

According to a careful analysis of the agreements published in Foss Patents, Florian Mueller said that the approvals are not without caveats. The EU said specifically that it will be looking at future and past enforcement of patents by Google and that it is ready, willing, and able to step in if it believes they are being abused.

He said that the end result of these deals will be business as usual, which currently means a series of lawsuits working their way through court. At the same time he notes that just because no action has been taken to date does not mean that none is forthcoming.

From the European Commission’s press release announcing approval is this important paragraph. “Today’s decision does not mean that the merger clearance blesses all actions by Motorola in the past or all future action by Google with regard to the use of these standard essential patents. Our decision today is without prejudice to the legality under EU antitrust law of Motorola’s past and Google’s future actions. However, the question whether Motorola’s or Google’s conduct is compliant with EU antitrust law cannot be dealt with in the context of the merger procedure.”

So while it may be business as usual in the short run, the court cases could result in the addition of another player, and one that has a lot more clout than any of the individual players involved, or all of the players for that matter.

Friday Grab Bag: Microsoft talks Windows 8 Tablet

The top Windows exec at Microsoft, Steve Sinofsky, has published a huge blog entry that details Microsoft’s plans for Windows 8 on low-powered platforms driven by processors built around the ARM processor technology.

Since that is the primary chip technology driving most tablets, this blog entry shows how the company sees the space and what it believes it can bring to the market that its rivals cannot, or are not doing well.

A few of the key talking points are that versions of Windows for ARM platforms will carry a Windows for ARM branding; there will be a special version of Office for this platform and there will be a major effort to have the hardware and software tightly integrated, much like Apple does with the various iOS products.

Phoenix Suns latest to grab tablets as in-game tool
If you happen to watch closely the next time you are viewing a Phoenix Suns game expect to see branded products from Samsung and Verizon Wireless on the sidelines in place of the old school chalkboards.

The team has signed a deal that will provide the players, scouts and coaches with Samsung Galaxy 10.1 Tab tablets and Verizon 4G wireless service. The team plans to use them for a winde variety of tasks including in-game play calling by head coach Alvin Gentry.

While the NFL and Major League Baseball have been very aggressive in developing and deploying tablets as part of a training regime the NBA has lagged behind. This is probably going to be watched very closely and probably imitated by a number of other teams in the off season.

Asus admits bug in Transformer Prime
Asus has released a firmware update that will fix the random boot problem that has plagued some but not all owners of its Eee Pad Transformer Prime Tablets. The move comes after a flow of negative comments on line and at least one retailer, UK’s Clove to cease selling the product.

The tablet has had several flaws since it was debuted last year including simple lack of product available and a GPS accuracy issue. In the past the company has denied that there was a reboot issue but has now finally admitted it.

Patent Wars
Apple continues to battle and seems to be losing ground at a slow and steady rate. Its latest setback was a German court ruling that Samsung Galaxy Tab 10.1, called the Galaxy Tab10.1N in the German market does not appear to be a copycat version of the iPad.

Apple had won an initial ruling preventing Samsung from selling n the German market last September and the 10.1N is a work around that has been found acceptable by the court, reopening the market to the Apple rival.

Apple has been particularly aggressive pursuing Samsung in both the iPad but also iPhone space claiming that it carefully copied its devices. So far its success has been lackluster in courts but that does not seem to have changed Apple’s determined drive in the patent space.

Google’s bid for Motorola Mobility likely to be approved next week
Multiple sources are reporting that the $12.5 billion purchase of Motorola Mobility by Google will get antitrust approval from the United States Justice Department sometime next week. Among other assets that Google will acquire is a patent portfolio that is 17,000 strong in the mobile phone area.

This patent portfolio is likely to be used for both offensive and defensive purposes by the company. It is aggressively seeking huge payments from Apple over all iPhone and other iOS devices, but will likely also be used to simply be leverage in cross patent licensing agreements.

At the same time the Justice Department is likely to approve of the purchase of Nortel by a consortium of Apple, Microsoft Sony, Research in Motion, EMC, and Ericsson AB. This deal will include 6,000 wireless patents.

Does Cisco Have the Inside Sponsor Track for Niners’ New Stadium?

Fair warning: This is all conjecture, and not based on any interviews or inside information. But based on some cognizant observations as well as just sheer geography, it is our guess that networking giant Cisco might have the inside sponsorship track for the new football stadium being considered for the San Francisco 49ers.

Now with $200 million in NFL money in hand, it appears that the Niners’ planned move south to the Silicon Valley burb of Santa Clara is as close to a done deal as possible. For the moment, our question is, what corporate name will grace the concourses of the soon-to-be-built temple of football from among the many choices in cash-rich Silicon Valley?

At the top of the guess list you can put Cisco, whose main corporate campus lies just a few blocks down Tasman Drive from the new stadium site. Though Cisco’s historic bent has been to pursue sponsorship of a new baseball stadium for the Oakland A’s (first a failed attempt to build one in the East Bay town of Fremont, and now with hopeful plans for a new stadium in San Jose), the company’s Connected Stadium business would have some serious egg on its face if it couldn’t win the big deal just down the street. But we haven’t heard any rumors that Cisco is even the front runner, so which other companies might be in the race?

How about cash-rich Apple, which has nearly $100 billion stuffing its corporate wallet, or nearby search king Google? Though neither company has a history of sports sponsorships a “Google Stadium” or an “Apple Field” could be an international jewel of a marketing vehicle, acting as a base for either company to demonstrate devices, applications and other innovations in a setting that would regularly draw lots of foot traffic as well as national media attention.

Other candidates could include Oracle, whose leader Larry Ellison has been more involved than any other Silicon Valley in sports sponsorship — both via Oracle’s existing name sponsorship of Oakland’s Oracle Arena, home of the NBA’s Golden State Warriors, and in Ellison’s out-front leadership in bringing the America’s Cup boat race to San Francisco Bay. And how about the idea of “Facebook Field,” a place where fans could “like” just by showing up. With a huge IPO on the way, Facebook might want to use some of that cash to show up its older Silicon Valley neighbors by sponsoring the Niners’ new home.

What’s your guess? Chime in via the comments. Gratuitous new-stadium video follows.