Congress Returns Next Week With A Tech-Heavy Agenda

Snapchat Goes Hard At Coachella With New Dynamic FiltersCongress is back from a recess this week, and with lawmakers we’ll see the return of some familiar issues.
We will see Congress address patent reform and cybersecurity in the coming weeks. Once lawmakers finish with cybersecurity, it’s possible we could even see legislation related to National Security Agency (NSA) phone record collection before the end of the month.
These are all issues Congress has tried and failed to address before. Patent reform died in the Senate last spring, controversial cybersecurity legislation never saw a floor vote last year and a NSA reform bill could not pass a Senate procedural vote last December.
As these issues return to the Hill, we’ll also be tracking challenges to net neutrality. The Federal Register will likely publish the Federal Communication Commission’s rulemaking on Monday, making it officially open season for telecoms and other opponents to file lawsuits against the agency.
Patent Reform
Patent reform is up first, with a House legislative hearing on Tuesday. This session, we’ve seen House bills addressing patent reform introduced. We’ll see a another introduced on the Senate side this week.
In the last session, we saw Congress grapple with patent reform for about a year before it was killed last spring by Democrats and trial lawyers. Reform is aimed at limiting patent trolls, patent holders who file broad patents and then attempt to extort money from American businesses through expensive lawsuits.
With the net neutrality fight behind them, tech companies represented by groups like the Internet Association are rallying around the Innovation Act. The Innovation Act aims to reduce patent trolls by requiring lawsuits to include more detailed information about what kind of infringement is occurring and streamlining the discovery process.
For years tech companies have faced off against pharmaceutical companies, trial lawyers and higher education when it comes to the issue of patent reform.  Republicans blamed Democrats for blocking patent reform last year. Now that Republicans are controlling both chambers, could we see progress for tech? (There’s a sentence you don’t write that often when talking about the tech lobby)
Cybersecurity
In a memo to members, the Republican House majority leader said the House will likely see a vote on cybersecurity the week of April 21.
CISA, the Cybersecurity Information Sharing Act, faced sharp criticism from privacy advocates last year. They argued that the bill, which allows companies to share information about cyber threats with other companies and the federal government, would result in further overreach of the American intelligence apparatus. The White House said it would not sign the bill into law, and it never saw a Senate vote.
But this year, CISA is back, and in the wake of high profile breaches in the private sector and government, there is increasing political pressure for Congress to act. An amended version of CISA passed the Senate Intelligence Committee last month, with only one dissenting vote from the ardent privacy advocate Ron Wyden. Another cybersecurity bill passed the House Intelligence Committee unanimously last month. Obama’s chief of staff Denis McDonough said with the amendments, the Senate bill would likely have the White House’s support. But privacy advocates said recent hacks are causing legislators to “recklessly” push through cybersecurity legislation too quickly.
Surveillance Reform
Republicans have maintained that they must first address cybersecuirty before turning their attention to the NSA. But with cybersecurity legislation likely to receive a vote in two weeks, it’s possible we could see NSA surveillance legislation before the end of the month.
It’s not a second too soon. Congress is approaching an important deadline, the June 1 sunset of Section 215 of the Patriot Act. The provision allows the NSA to collect records of Americans phone calls in bulk. But despite that looming deadline, we’ve seen little action on the Hill to either reauthorize, reform or kill the program.
The issue has gotten a boost this week from a viral John Oliver sketch on HBO that made the issue of surveillance reform more accessible. A group of privacy advocates also reignited calls for reform, campaigning for an end to the bulk phone metadata collection program.
As we watch these issues return, it’s important to not forget the many obstacles tech faced last year in pushing its agenda on the Hill. Although the new lay of the land in Congress could work in tech’s favor on issues like patent reform, privacy advocates face an uphill battle when it comes to cybersecurity policy and surveillance reform.

By: Unknown On 00:18

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Congress Presses Uber And Lyft On Driver Background Checks

One Small Step For Unbundling, One Big Leap For HBORide-sharing companies are not strangers to Congressional inquiries. This week a group of Congressional Democrats hit the CEOs of Uber, Sidecar and Lyft with another letter, this time demanding the companies conduct more comprehensive background checks on their drivers to better protect customers from sexual assaults.
Although these companies conduct internal screenings, the cohort of lawmakers do not believe they go far enough. The representatives called on the companies to adopt fingerprint-based background checks for drivers, both new and existing. The representatives believe a change to the policy is needed following the alleged string of sexual assaults by ride-share drivers in San Francisco, Chicago, Boston, Los Angeles and Washington, D.C.
Representatives from Uber, Lyft and Sidecar all countered that their companies’ screening processes were actually more safe than those of existing transportation options.
“Safety improvements are one of the main reasons that consumers are choosing Lyft. In addition to using independent experts to screen potential drivers, Lyft also provides consumers with in-app photos of drivers and vehicles, real-time ride tracking, digital receipts, two-way rating systems, and an around-the-clock Trust and Safety team,” Lyft wrote in a statement. “The benefits for passengers are clear.”
The Internet Association, a lobbying group that represents these companies in Washington, also expressed the same sentiment.
“Safety is a top priority for ride-sharing platforms and is built into the service,” said Noah Theran, the association’s spokesman. “Ride-sharing platforms conduct extensive background checks and also feature end-to-end GPS tracking of rides along with a two-way ratings system that provides safety and accountability to both riders and drivers.”
CALinnovates, a group that has been an active participant in the ride-sharing discussion, said that the number of signees of the letter (8) “proves how little support this letter received from Congress and fails to account for the innovations in transparency and accountability brought forth by the app-driven economy.” CALinnovates’ Mike Montgomery says in a statement that the letter is a “political favor for an entrenched industry” and that the “fingerprint issue isn’t a silver bullet, it’s a red herring.”
It’s fair to say that the ride-share systems enable riders to give feedback in real time in a way that wasn’t possible when they were riding in cabs. But the issue at stake is about preventing a driver with a criminal record from ever picking a rider up, not allowing a rider to give negative feedback once he or she has had a bad experience.
Uber also said its system brought “unprecedented accountability and transparency” to the industry. Both Uber and Sidecar cited multilayered background searches they believe are more extensive than criminal background checks with a fingerprint.
But even with these extensive background checks, the suggestion made by members of Congress would prevent potential drivers from using false identities or aliases in these screenings. A biometric identifier is stronger than searching a name.
Uber itself was recently caught in hail storm of controversy after one of its executives floated the idea of doing opposition research into journalists that were critical of its operations.
Following the incident, members of Congress have sent inquiries to ride-share companies regarding customer data, particularly related to tools that allow Uber employees to view passengers’ ride routes.
This is also not the first time Uber has come under fire for failing to adequately screen drivers. The company introduced new screening processes in India following the rape of a woman by a driver who had previously been convicted of sexual assault. The company also introduced a panic button for riders in the country.
But in the United States, progress has been slower.
In related news, a state bill in California has been proposed that would increase the depth of background checks that ride-sharing drivers undergo. The proposed legislation, Assembly Bill 24, would require ride-share drivers to take part in what an official summary called a “DOJ finger print background check [sic].”
The California proposal underscores the point that, while Uber, Lyft and Sidecar have done a quick job at muscling their way into markets that have strong incumbent taxi lobbies, there remains a number of questions regarding their collective business model. Certainly, no service that puts its end users at risk can maintain the situation without change.
Uber and Lyft and Sidecar would certainly like to control the eventual settling of the situation in-house, but given government interest at every level, they may not get the chance.
The missive from the Congressional leaders is just a letter. It gives Uber, Sidecar and Lyft the opportunity to get ahead of this before they fall into yet another public relations crisis for not ensuring the safety of their riders.
Also such a shift seems to be in their best interests commercially. For riders, especially female riders like me (Cat Zakrzewski), the practice could add an extra sense of security when using these apps. Usually, taking an Uber or Lyft at night seems like the responsible and safe way to get home, but most of my friends and I can think of times when drivers have said things that have made us uncomfortable. Uber drivers have catcalled me as I exited their cars, and one who showed me an article in the newspaper about an Uber sexual assault in my city and told me to be careful. Knowing that extra precautions have been taken in hiring these drivers would make me feel much better about taking one of these services home.

By: Unknown On 02:45

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An Investor’s Take On The Mobile World Congress

What I’ve Learned About Deal SourcingEditor’s Note: Joe Medved joined SoftBank Capital in 2005 and has been investing in digital media companies for over nine years, from seed through growth stage, with special interests including consumer and enterprise mobile, gaming, and social marketing.
Mobile World Congress in Barcelona has become the world’s largest mobile conference. The colorful city that Gaudi built provides a perfect backdrop for showcasing innovation and this year’s event drew 93,000 attendees representing every major mobile market on the planet.
Startup and Advertising Representation on the Rise
The conference is dominated by mobile operators, device manufacturers and related technology vendors. They’re primarily a suit and tie crowd, but the jacket and jeans contingent is growing.
As part of that jacket-and-jeans sartorial growth, the startup community has become increasingly engaged, culminating this year with 4YFN. The 4FYN event is a sub-conference held to connect startups from all over the world with investors and corporations. MWC has become a valuable forum to meet with mobile hardware and software innovators, many of which are exhibiting with large partners at the show or behind closed doors as they seek new avenues to access markets.
The conference reinforces the global influence of Android.
MWC, like CES, has also become a destination for the advertising community, with increasing attendance from agencies and brands. Agencies take their key clients on tours of the conference and connect them with emerging mobile vendors. The overwhelming size of the event helps drive home the point that mobile must be taken seriously as an advertising medium.
Android’s Global Presence
With Apple skipping MWC each year, the conference reinforces the global influence of Android. It highlights Android’s biggest manufacturing partners, a number of which have forked their own versions of the operating system and built proprietary app stores, particularly in the Chinese market.
Samsung is typically the dominant handset maker at the show, and the unveiling of their Galaxy S6 garnered plenty of attention. However, you could sense the growing influence of Chinese manufacturers and the stylish designs they are bringing to the Android device landscape, including Huawei, which has become the third largest smartphone player, and Xiaomi, whose loyal followers in China match the fervent adoration of Apple fanboys.
Huawei had a big presence at the show, where it unveiled its luxurious smartwatch, which is rumored to retail at $1,000. Xiaomi did not have the same physical presence, but their Global VP, former Googler Hugo Barra, spoke on stage about the international strategy for its beautiful but affordable handsets and accessories. The US will be in their long term plans.
Less Focus on New Health Trackers…
Fitbit (a SoftBank portfolio company) has maintained a dominant position within the health-centric wearables space. In last year’s show, there appeared to be a new health tracker at every turn. While most major manufacturers now have a health tracker as a staple in their product suite, there appeared to be far less floor space dedicated to the segment than last year.
…With Shift to Smartwatches
R&D for health trackers appears to have shifted to more fully functioning smartwatches, which were one of the most noticeable rising trends at the show. While most of the new watches looked better in the marketing materials than they felt or functioned, you can see smartwatch design progressing towards the mainstream. The form factors are improving, including luxurious materials and an aesthetic more akin to traditional watches.
R&D for health trackers appears to have shifted to more fully functioning smartwatches, which were one of the most noticeable rising trends at the show.
Once you click through the traditional watch face, the navigation around smart apps still feels like a stunted experience, but it is improving. The Apple Watch will push the envelope around navigation and design within the smartwatch interface. We should see a critical mass of smartwatch penetration within the near term that will open up opportunities for startups on the platform. A number of top mobile developers at the show were already working on smartwatch extensions of their apps. I expect to see an emergence of wrist first developers over the next few years.
Connected Cars Driving the Show
Alongside the rise in smartwatches this year was the introduction of connected car platforms. Every hall seemed to have connected vehicles, from Fords to Maseratis. Functionality ranged from wifi access to full app stores embedded in the dashboard. Until those app stores have significant penetration on the road, which is likely many years away, innovation within the connected car will be fueled primarily by larger corporations as opposed to startups.
Typical hardware startups face a big enough challenge finding traditional shelf space, but innovators in the connected car space need the patience and capital to work their way into a 5+ year manufacturing cycle within an oligopoly system. One opening for startups could be via aftermarket devices, providing stopgap functionality as Garmin and TomTom did before GPS became a practical standard with new vehicles.
Virtual Reality Headsets Galore
If there is one thing that MWC proved about Virtual Reality, it is that VR has an opportunity to be the dominant exhibition tool at conferences. There were people lined up in nearly every hall not only to demo the VR platforms themselves, but to use the headsets to take visual tours of other new products, such as the inner workings of network infrastructure.
The prevalence of the helmets would suggest, as with smartwatches, that the platform could open up in the next few years for startup developers. However, smartwatches will be built primarily on two, or possibly three platforms, with Android, iOS and potentially Samsung’s Tizen. The variety of VR platforms, many of which are new to the market, will take longer to educate a broad base of developers.
The form factor will also need to improve to help mainstream users get over the odd social dynamic of experiencing the devices in public. Vanity has become an advantage for smartwatches given advances in design, whereas it is still clearly a detriment to VR headsets. VR is most likely to be utilized in early days by premium game developers and content creators.
Candidates for Next Year’s Emerging Trends
A few categories popular in the startup community that were shown more behind closed doors than at exhibits included i) smart home applications, which were present but not as prominent as you would expect based on the buzz in the startup community, ii) next generation wearables that are moving beyond the wrist, iii) enterprise-centric wearables, including smartglasses, and iv) robotics, which could become more of a connected platform over the long term.

By: Unknown On 00:00

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