In this update, we detail the key legislative developments in the second quarter of 2021 related to artificial intelligence (“AI”), the Internet of Things (“IoT”), connected and automated vehicles (“CAVs”), and federal privacy legislation. As we recently covered on May 12, President Biden signed an Executive Order to strengthen the federal government’s ability to respond to and prevent cybersecurity threats, including by removing obstacles to sharing threat information between private sector entities and federal agencies and modernizing federal systems. On the hill, lawmakers have introduced a number of proposals to regulate AI, IoT, CAVs, and privacy.
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FCC Set to Ease Rules that Have Limited Pre-Sales and Other Marketing of Some New Electronic Devices
Last Thursday, the Federal Communications Commission (“FCC”) announced that it will consider a Report and Order at its June 21, 2021 open meeting that would permit the importation and conditional sale of radiofrequency (RF) devices prior to obtaining equipment authorization in some circumstances. The consumer electronics industry has advocated for this rule change, which will facilitate pre-sales and other marketing of new devices in the marketplace.
If adopted, the Report and Order would afford manufacturers and developers of RF devices significant flexibility in conducting pre-sale activities and potentially reduce the time required to deliver devices to market. These revisions represent a significant change to the FCC’s equipment and marketing rules and bring the FCC’s equipment marketing and pre-sales regime in line with many other industries.
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Final Countdown to POPIA Compliance: Five Critical Steps to Take Before July 1st, 2021
In Episode 12 of our Inside Privacy Audiocast, together with special guest Advocate Pansy Tlakula, Chairperson of the Information Regulator of South Africa, we discussed the Information Regulator’s mandate and the implementation of data protection legislation in South Africa. Now, with less than a month to go before South Africa’s Protection of Personal Information Act, 2013 (“POPIA”) takes full effect on July 1, 2021, it is critical for organizations operating in South Africa to ensure that they are ready, if and when the Information Regulator comes knocking.
It is only when organizations start their POPIA journey that they realize just how wide the POPIA net is cast, and that very few businesses fall outside of its reach. The road to POPIA compliance should be viewed as a marathon, and not a sprint. While implementing and maintaining an effective POPIA compliance program will take continued effort and resources well beyond the July 1, 2021 go-live date, here we outline five steps to which companies subject to POPIA should give their attention in the short term.
FCC Announces New Efforts to Block “Insecure Devices” from the U.S. Market
Acting Chairwoman Jessica Rosenworcel has announced that at its next monthly public meeting on June 17, the Federal Communications Commission (“FCC”) will kick off a process to change its equipment authorization rules and competitive bidding procedures to address national security threats.
The draft Notice of Proposed Rulemaking (“NPRM”), released Thursday, proposes changes to the FCC’s rules on equipment authorization that could restrict and revoke the authorization of devices determined to pose a threat to national security—effectively banning them from the U.S. marketplace. The NPRM also proposes updates that would effectively require parties bidding for spectrum licenses or FCC broadband funding to certify that they will not rely on financial support from entities designated by the FCC as a national security threat.
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President Biden Signs Executive Order Aimed at Improving Government Cybersecurity
On May 12, the Biden Administration issued an “Executive Order on Improving the Nation’s Cybersecurity.” The Order seeks to strengthen the federal government’s ability to respond to and prevent cybersecurity threats, including by modernizing federal networks, enhancing the federal government’s software supply chain security, implementing enhanced cybersecurity practices and procedures in the federal government, and creating government-wide plans for incident response. The Order covers a wide array of issues and processes, setting numerous deadlines for recommendations and actions by federal agencies, and focusing on enhancing the protection of federal networks in partnership with the service providers on which federal agencies rely. Private sector entities, including federal contractors and service providers, will have opportunities to provide input to some of these actions.
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UK Court Rules on Copyright over Software Developed Whilst Working at Home
In Penhallurick v MD5 Ltd [2021] EWHC 293 (IPEC) the Court held that the copyright in various literary works relating to software Mr. Penhallurick created during his tenure with former employer MD5 belonged to MD5. The Court found that the works were created in the course of Mr. Penhallurick’s employment with the result that MD5 was deemed the owner of the works (under the Copyright, Designs and Patents Act 1988), despite the fact that some of the work was done from Mr. Penhallurick’s home, outside normal office hours and using his own computer.
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Strategic Technology Transactions in Europe – Considerations for U.S. and Global Companies
Over the last year we have seen increasing interest from our global client base in investing in strategic, transformational technology transactions with European counterparties. These transactions often facilitate access to key technologies, geographies and, of course, data. In this note we set out 6 key points to keep in mind when planning, negotiating and executing these types of transactions across Europe.
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European Commission Publishes Draft UK Adequacy Decisions
On February 19, 2021, the European Commission published two draft decisions finding that UK law provides an adequate level of protection for personal data. The first would allow private companies in the EU to continue to transfer personal data to the UK without the need for any additional safeguards (e.g., the Commission’s standard contractual clauses), while the second would allow EU law enforcement agencies to transfers personal data subject to Directive 2016/680 — the Data Protection and Law Enforcement Directive (LED) — to their UK counterparts.
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Look for Voluntary Open Data Practices to Follow Other Open IP Trends
A foundation of intellectual property rights (IPR) is that authors and inventors are entitled to some level of exclusivity over their works in the form of copyrights and patents to incentivize innovation; that’s written into the Constitution. However, various voluntary open innovation practices have emerged, highlighting that developers also can benefit by choosing to widely share certain intellectual property in ways that also can help foster innovation.
While there is no “one size fits all approach,” with the growth of artificial intelligence (AI), there has been a trend to similarly facilitate more voluntary data sharing. Especially considering how AI is being used to address the COVID-19 pandemic and other important needs, voluntary open access to data could have a significant impact in the immediate future. However, practices for voluntarily sharing or providing open access to data are still developing and vary widely (in part because of the state of IPR protection for data). These evolving practices create some challenges for data contributors and users alike. However, the challenges often can be overcome by carefully selecting contract terms to govern the data sharing arrangement that factor in the goals and needs of the participants and relevant legal principles.
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AI Update: USPTO Releases Report on Growth of Artificial Intelligence Applications
The USPTO issued a Report in October 2020 titled Inventing AI: Tracing the diffusion of artificial intelligence with U.S. patents, along with supplementary material that describes the methodology and scope of patent related data used in the Report. Following a first report also issued in October 2020 that pertains to AI and IP