Monthly Archives: May 2013

Tech Dirt
Internet Association Hits Back At RIAA’s Desire To Wipe Away DMCA Safe Harbors
Posted: Wed, May 29th 2013 @ 1:33pm

On Friday, we wrote about how the RIAA has already started pitching the terrible idea that we should do away with the important DMCA safe harbors, which make sure that liability for infringement is properly applied to those actually infringing, rather than tools and services. The RIAA, however, thinks that it should be everyone else’s responsibility to prop up their increasingly obsolete business model, so they want to do away with the safe harbors and make every internet service liable if anyone uses their service for infringement. Of course, what this would do is stifle innovation broadly, because companies would avoid any kind of user generated services, because the liability would be super high. Sure, some of the big players would stick around, because they’ve got enough money and lawyers, but new startups would be few and far between.

Thankfully, some are already pushing back against the RIAA’s crazy desires, and the Internet Association has pointed out that this move by the RIAA highlights the industry’s real end goal with SOPA: to make the internet responsible for propping up their business model.

“The DMCA provides a framework that appropriately balances the interests of copyright owners with the rights of users and the development of new and innovative products and services. The RIAA’s statement that it wants to change the DMCA lends support to those who suspected that SOPA’s stated objective of targeting offshore websites was really a stalking horse to achieve the RIAA’s true objective — to amend the DMCA by having Internet companies police user activities,” Internet Association CEO Michael Beckerman said in a statement to MT. “Congress should reject the RIAA’s invitation to amend the DMCA.”

Of course, a reasonable argument could be made that the DMCA’s safe harbors are already too far tilted towards copyright holders, considering the number of bogus takedowns we talk about regularly. A much more reasonable system would be a true notice and notice system, in which those accused of infringement would be given an opportunity to respond to a takedown notice before the content itself is taken down. That simple change would help prevent the all too common case of the DMCA being used for censorship.

Separately, the RIAA’s end goal goes way beyond just making internet companies police user activities. They want nothing less than to have the internet re-crafted in their own image, protecting an obsolete business model while limiting any competition and disruption they don’t like.

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To read the original article, click here.

Tech Zone 360
Industry Organizes Renewed Effort to Prevent Abuses by Patent Trolls
Posted: May 23, 2013 14:36

The Coalition for Patent Fairness is continuing to draw attention to the many problems presented by patent trolls in the United States. Recently, the organization held a conference which attracted many industry representatives – ranging from those representing small businesses and larger companies.

“These organizations – large and small – are fed up. They’re sick and tired of patent assertion entities (PAEs), more commonly known as patent trolls, and their often baseless but costly attacks,” Alan Schoenbaum, general counsel at Rackspace, said in a recent blog post. “It’s a drain on innovation, a plague to all of technology and a drag on the economy.”

Among those most at risk from such litigation are small business end-users because hiring lawyers is difficult for them.

“Protecting end-users from suits will limit the options for PAEs, forcing them to pursue the manufacturers or providers of common products or services, rather than their customers,” Schoenbaum added.

While President Barack Obama had spoke about the patent troll issue in a Google+ hangout not too long ago, U.S. Senator Charles Schumer (D-NY) plans to push for legislation to strengthen the America Invents Act to prevent related litigation without merit.

In a recent public statement, Obama commented, “Efforts at patent reform only went about halfway to where we need to go. What we need to do is pull together additional stakeholders and see if we can build some additional consensus on smarter patent laws.”

“We expect the Coalition for Patent Fairness, our host of the big tent meeting, to contribute and help pass a list of excellent and fair proposals designed to work together to knock out the most egregious abuses of the patent system,” Schoenbaum added. “The Internet Association will also weigh in with strong and thoughtful legislative proposals.”

The concern about the patent system – and trolls – is also a worry among industry watchers.

“Whether it be Google v. Oracle, Apple v. Samsung or NTY v. HPL, the current patent process is clearly broken and we are all the worse for it because of delayed innovation, lack of access potentially to useful products and higher prices,” TechZone360’s Peter Bernstein wrote last year.

For instance, patent trolls cost the U.S. economy $29 billion during 2011 – not including lost innovation, the coalition said.

Even with the progress made on this front with the America Invents Act “it stopped short of fixing a number of significant flaws – flaws that continue to stifle innovation, limit economic growth, and keep American entrepreneurs on the sidelines,” the coalition adds.

“We need to foster an environment where innovation and entrepreneurship are free to grow, without fear of patent trolls gaming the system in order to profit off the innovative work of others,” the coalition said in a recent statement. “The simple truth is that these patent trolls profit off the market innovation of others, and they are lining their pockets because of loopholes in the laws.”

The following organizations took part in the recent conference organized by the coalition: The American Association of Advertising Agencies (4A), National Association of Broadcasters (NAB), Food Marketing Institute (FMI), National Grocers Association (NGA), American Hospital Association (AHA), Retail Industry Leaders Association (RILA), and National Retail Federation (NRF). Also, the National Restaurant Association (NRA), Financial Services Roundtable (FSR), The Securities Industry and Financial Markets Association (SIFMA), American Bankers Association (ABA), Newspaper Association of America (NAA), Entertainment Software Association (ESA), and Engine Advocacy. In addition others present were Public Knowledge, Internet Association, Internet Infrastructure Coalition, Business Software Alliance, Consumer Electronics Association, Computer & Communications Industry Association (CCIA), Information Technology Industry Council (ITI), and Software & Information Industry Association (SIIA).

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To read the original article, click here.

WASHINGTON, D.C. – The Internet Association President & CEO Michael Beckerman issued the following statement in response to Senator Cornyn’s introduction of the Patent Abuse Reduction Act of 2013 (S.1013):

“The Internet Association applauds Senator Cornyn’s introduction of the Patent Abuse Reduction Act of 2013. Internet companies are targeted daily by patent assertion entities far more interested in exploiting litigation costs than in promoting innovation. Senator Cornyn’s bill appreciates the need to reform a system made unacceptably inefficient by vague accusations of patent infringement, imbalanced and excessive litigation costs, and a lack of even basic transparency. With thoughtful proposals on pleading requirements, joinder, and other issues, the bill makes a valuable contribution to the ongoing discussion about how best to put an end to abusive patent litigation practices and to promote, rather than burden, real innovation in today’s Internet economy.”

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All Things D
As Immigration Reform Bill Heads to the Senate Floor, the ZuckerPAC Gets a Win
Posted: MAY 21, 2013 AT 6:44 PM PT

Chalk up a win for tech industry talent-seekers.

In a bipartisan vote reached on Thursday evening, the Senate Judiciary Committee approved a bill that aims to radically overhaul much of current U.S. immigration policy, which could ultimately increase the number of highly skilled tech industry workers allowed visas to work inside of the U.S.

The bill, which passed through the committee by a vote of 13 to five, is now headed to the floor for debate, where it is expected to be deliberated upon through the summer.

It is, in particular, the first small victory for FWD.us, the political action group formed by Facebook CEO Mark Zuckerberg and supported by a cadre of such tech industry luminaries as LinkedIn’s Reid Hoffman and famed venture capitalist John Doerr.

To be sure, Zuckerberg’s group is far from the only lobbyist group aiming for immigration policy reform in Washington, nor should it be solely credited for swaying the final decision. But in Silicon Valley at the moment, it is perhaps the most visible.

“With its 13-5 vote to support comprehensive immigration reform, the Senate Judiciary Committee has taken another crucial step forward to growing a knowledge economy,” Joe Green, FWD.us founder and president, said in a statement to AllThingsD. “This comprehensive bipartisan legislation contains the key principles we support, and its passage is another important step in the right direction.”

“It’s clear that the momentum continues to build in favor of commonsense immigration legislation — and FWD.us will continue to advocate for comprehensive, bipartisan reform that will attract innovators, build prosperous neighborhoods with strong families and good jobs, and ensure the U.S. continues to lead the world in the growth of the knowledge economy,” Green said.

Facebook did not respond to a request for comment.

In a grand mission statement published on the editorial page of the Washington Post when FWD.us launched, Zuckerberg reasoned that the need for his group was to create change in areas like education, long-term economic issues and, most of all, immigration issues.

“We have a strange immigration policy for a nation of immigrants,” Zuckerberg wrote in the Post article. “And it’s a policy unfit for today’s world.”

Since launching the group in April, FWD.us has spent its money lobbying aggressively for immigration reform in particular, backing lawmakers who have expressed support for changes in the current legislation.

Though not all of FWD.us’s supporters were comfortable with the group’s lobbying tactics. After it came out earlier this month that FWD.us had bankrolled ads for immigration-reform-friendly legislators who also supported controversial environmental policies like Arctic oil drilling and the building of the Keystone XL pipeline, FWD.us lost two high-profile supporters; Tesla CEO and green energy proponent Elon Musk withdrew support, along with Yammer founder David Sacks.

The immigration policy changes FWD.us is pushing for in particular would ultimately benefit many high-tech companies who want better access to recruiting foreign engineering talent, much of which is currently restricted by the number of H1-B visas granted to foreign workers on an annual basis.

“This is about jobs. Period,” Michael Beckerman, president and CEO of the Internet Association, told AllThingsD in a statement. “A highly skilled workforce helps Internet companies grow here at home and hire more Americans. For each worker an Internet company hires under an H1-B visa program, they are able to bring on as many as 12 American workers. … This is a win for the knowledge economy and we look forward to this process moving forward.”

The legislation was held up in the Senate Judiciary Committee until Sen. Patrick Leahy (D., Vt.) and Sen. Charles Schumer (D., N.Y.) agreed with dissenting members of the committee to hold off on adding an amendment to the bill which would have allowed certain provisions for gay couples.

Sen. Leahy told the New York Times that he withheld his amendment “with a heavy heart.”

The efforts of Sen. Orrin Hatch (R., Uah) in particular were instrumental in including a last-minute amendment that would benefit the tech industry. His amendment, which the Times said was agreed upon late in the deliberations, would increase the minimum number of high-tech H1-B visas allowed annually.

The office of Sen. Hatch did not immediately respond to a telephone request for comment.

“Thanks to the leadership of Chairman Leahy and a bipartisan group of eight Senators, the legislation that passed the Judiciary Committee with a strong bipartisan vote is largely consistent with the principles of commonsense reform I have proposed and meets the challenge of fixing our broken immigration system,” President Barack Obama said in a statement issued on Tuesday evening.

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To read the original article, click here.

Fox News PowerPlay
Power Play 5/21/2013- Michael Beckerman on Fox News: Immigration Reform
Posted 5/21/13

White House changes story on IRS scandal. Immigration package nears key vote. Are high skill workers complicating the immigration deal?

Watch the video here.  (Interview with Michael Beckerman begins at 18:39)

WASHINGTON, D.C. – The Internet Association released the following statement on the passage of H.R. 1580 by the U.S. House of Representatives:

This week, the House of Representatives took an important step to protect Internet freedom by preserving the Internet’s multi-stakeholder governance model as official U.S. policy. This legislation sends a strong signal to the international community that the United States is committed to promoting a global Internet free from government control.

Protecting a free Internet for all people is essential to the preservation of political and economic liberty. The Internet Association supports the flow of information free from government control. We applaud the House Energy and Commerce leadership on this issue and appreciate the broad bipartisan support of this bill.

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PPI STUDY HIGHLIGHTS JOB GROWTH IN CALIFORNIA’S CENTRAL VALLEY AND ACROSS THE STATE

WASHINGTON, D.C. – Today, The Internet Association President & CEO Michael Beckerman issued the following statement in response to the results of a study released by the Progressive Policy Institute. The study highlights recent encouraging signs of job growth in the Internet and tech sector in California that could help lift the state out of its economic doldrums, including hard-hit areas such as the Central Valley.

“The PPI study demonstrates the fact that the Internet Economy has moved to Main Streets across California, highlighting the profound impact the Internet has on jobs, economic growth, innovation, and prosperity.

“Elected officials from every corner of California must recognize that Internet jobs are no longer just in Silicon Valley and businesses in every economic sector are benefitting from Internet technologies. The Internet is the future of our economy here in California and nationwide. The Internet powers non-tech businesses in communities across the country.

“The Internet Association will continue to work with policymakers to ensure economic growth without burdensome regulations. No matter how well-intentioned, laws hastily enacted and without consideration of the full impact on a dynamic industry could create lasting, negative consequences for California entrepreneurs and innovators as well as for consumers.”

The report is authored by PPI’s chief economic strategist Dr. Michael Mandel and the research was conducted in partnership with The Internet Association. The report can be found on PPI’s website here.

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The Hill- Blog
Top tech groups press for changes to Gang of Eight bill ahead of markup
Posted: May 13, 2013 10:11PM EDT

In particular, the industry groups say lawmakers should rethink some of the provisions in the bill that would require companies to follow new rules when they apply to hire top foreign talent via the H-1B and L visa programs. They say lawmakers should carefully consider whether those measures would prevent companies from using the visas to grow their U.S. workforce and expand their businesses.

“As with any ambitious legislation that would create a new set of requirements for U.S. employers, it is essential to closely examine the new mechanisms proposed for the H-1B and L-1 visa programs and ensure that unintended consequences are anticipated and avoided,” the letter reads.

The U.S. Chamber of Commerce, Information Technology Industry Council, Internet Association, Silicon Valley Leadership Group and TechNet, among others, signed the letter. Those trade groups represent some of Silicon Valley’s top tech companies, including Facebook, Google, Intel and Microsoft.

Tech companies use the H-1B program to hire skilled workers such as computer programmers, scientists and engineers. The L visa allows American companies to transfer workers from one of its affiliated offices abroad to work in the U.S.

“Skilled immigration reform is long overdue,” the letter reads. “The U.S. economy is struggling to reach its full potential in large part because the demand for highly skilled professionals exceeds the supply; a knowledge gap which will only continue to grow.”

The groups cite concern with proposed recruiting requirements in the bill that they say “would force many employers to have each hiring decision subjected to government-imposed hiring standards” and open them up to potential lawsuits. They contend the rules must be flexible to allow companies to secure “the most qualified candidates to work in the U.S.”

They also take issue with the language in another measure aimed at protecting American workers from being displaced by a foreign worker. Under the bill, a company must attest that a new H-1B hire did not or will not replace a U.S. worker doing the same type of job 90 days before and after their visa application is filed.

The business groups say this measure would conflict with their ability to “make strategic business decisions.” They argue that the fast-paced nature of the industry makes it difficult for them to predict potential layoffs, or closures and mergers of certain business divisions three months ahead of time.

“We are concerned that the non-displacement requirements in S.744 would disrupt essential business efforts, such as acquisitions, investments in new lines of business, or research and development, particularly during times when other projects or divisions are being closed due to the natural evolution of business operations,” the letter states.

The trade groups also call on the committee to lift a restriction in the bill that would authorize spouses of visa holders to work in the U.S. only if their home country provides reciprocal treatment to Americans living there. The State Department should be in charge deciding whether to apply that restriction, they say.

“Such a blanket restriction effectively punishes talented individuals for the actions of their home country’s government,” the groups argue in the letter.

These H-1B and L provisions highlighted by these business groups would be tightened even further under a set of amendments filed by Sen. Charles Grassley (R-Iowa). In a separate letter, the Information Technology Industry Council, which counts IBM and Intel as members, called on the committee members to oppose these amendments, particularly ones that would tack on extra recruitment and non-displacement requirements to the visa programs.

Tech lobbyists are privately fighting against Grassley’s amendments, while encouraging members to back ones from Sen. Orrin Hatch (R-Utah).

The industry groups lauded the Gang of Eight for adding a measure that would increase the number of H-1B visas available to highly skilled and educated workers to 110,000 from 65,000. This has been a top policy agenda item for tech companies over the years.

In the letter, the business groups pressed the committee members to go a step further and adopt a measure from Hatch’s (R-Utah) Immigration Innovation Act. The measure proposes to add a new mechanism to the system that would allow the H-1B visa cap to rise above 110,000—depending on the market demand during a given year.

But those calls are facing opposition from a prominent group that represents U.S. engineers. IEEE-USA issued a statement ahead of the markup urging Judiciary members to reject any amendments that would increase the H-1B visa cap and water down the new requirements proposed to the H-1B program.

IEEE-USA President Marc Apter says these extra rules and requirements are safeguards that protect American workers and prevent their jobs from being outsourced abroad. In effect, Apter argues the high-tech provisions in the bill should stand as is.

“Efforts to destroy the balanced compromise that went into crafting the legislation will make it more difficult to enact into law,” Apter said in a statement.

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Excerpt: As you and your colleagues consider S. 744, the Border Security, Economic Opportunity, and Immigration Modernization Act of 2013, we wanted to share our views on this critically important legislation, and provide several recommendations to ensure the many important reforms perform as intended. We applaud the bipartisan sponsors of S. 744 for collaborating together over the past few months, resulting in a comprehensive bill that would truly modernize a broken and outdated immigration system. We strongly believe many reforms in S. 744 that impact high skilled immigration will enable employers of all sizes in every state to recruit and retain the world’s best talent, as well as help reinvigorate U.S. business sectors ranging from energy and manufacturing to medicine and engineering. These reforms are investments in the US economy that support the future of economic growth.

To view the letter, click here.

Excerpt: The Internet Association appreciates the opportunity to provide written comments regarding its view on the proposed United States (U.S.) and European Union (EU) trade agreement, known as the Trans-Atlantic Trade and Investment Partnership (TTIP).  As the United States Trade Representative works with U.S. government agencies and consults with Congress in developing a strategic proposal for the TTIP agreement, we hope our comments will serve as a guide for USTR to ensure that this agreement includes 21^st century provisions that promote innovation, jobs, and democratic discourse.

To read the Internet Association’s comments, click here.