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Court Orders Internet Rebroadcaster ivi To Halt Service

WASHINGTON, February 23, 2011 – A federal judge ordered Internet video provider ivi TV to cease rebroadcasting by on Monday, after concluding the provider did not fall under the protection of the Copyright Act.

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WASHINGTON, February 23, 2011 – A federal judge ordered Internet video provider ivi TV to cease rebroadcasting by on Monday, after concluding the provider did not fall under the protection of the Copyright Act.

Ivi captures the over-the-air signal of broadcast stations in Seattle, New York, Chicago and Los Angeles, then streams the programming live over the Internet to subscribers. Ivi previously asserted that its service fell under the compulsory license of the Copyright Act as a cable system and had asked for a declaratory decision to that effect.

Judge Naomi Reice Buchwald of the U.S. District Court in the Southern District of New York found that Ivi’s strategy of paying a fee to the Copyright Office was not enough for Ivi to rebroadcast the video content in compliance with Copyright Act. She found that ivi was not “a cable system for purposes of the Communications Act, and thus it need not comply with the requirements of that Act and the rules of the FCC promulgated thereunder.”  The decision concluded that the video provider is not a cable system the Act, and thus did not reach the question of whether they are governed by the Communications Act as a whole.

The Plaintiffs in the case included Broadcasters  ABC, NBC, CBS, PBS, Fox Television Stations, Cox Media Group, and Major League Baseball .

Ivi TV’s chief executive, Todd Weaver, said in a blog on the company’s website that he was disappointed with the outcome and that the company would “appeal to the Second Circuit Court of Appeals” and “will explore Congressional and Administrative solutions”

Nate Hakken is a native of Washington, DC. As the son of two itinerant academics, Nate spent much of his childhood living in England and Scandinavia. He has a B.A. from Sarah Lawrence College, as well as a J.D. from Vermont Law School, where he studied Internet and technology law. Nate is a jack-of-all-trades, having worked as a sound engineer, teacher, camp director, outdoor adventure guide, and medical researcher. Outside of work, he is an avid cyclist who competes across the Mid-Atlantic and has been known to play the guitar when asked nicely.

Antitrust

Lawmakers And Newsmakers Tackle Google and Facebook Market Power

Sen. Klobuchar, Rep. Cicilline and experts discuss antitrust, big tech and local journalism.

Tim White

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Screenshot of Amy Klobuchar taken from Open Markets Institute event

April 21, 2021 – Google and Facebook pose a serious threat to local journalism and—without that journalism—democracy generally, said panelists at an Open Markets Institute event held Tuesday.

With free market competition as a backdrop, the participants discussed antitrust legislation and regulation, data privacy, and funding for journalism.

Sen. Amy Klobuchar, D-Minnesota, who chairs the Senate judiciary’s subcommittee on antitrust, spoke on the recent tussle between Facebook and Australia over news feeds on the social media platform. “That is the very definition of a monopoly — when you can hold a country hostage simply because they want to make sure the content is paid for from the news,” she said.

Both Google and Facebook face several anti-competitive lawsuits from the Department of Justice, states attorneys general, federal agencies and several news publications that claim the big tech’s behavior has led to a monopoly in the digital space.

Google controls over 90 percent of the search engine market and Facebook has eaten up all of their competitors including Instagram and WhatsApp to maintain a social media monopoly, Klobuchar said. She also looked beyond just the tech industry: “America’s competition problem as well, as you all know, isn’t just limited to digital markets. It’s part of a broader problem that affects our entire economy from cat food to caskets,” she said.

“The consequences of the collapse of local news are catastrophic; it’s hard to overstate how severe a threat this is to democracy,” said Steve Waldman, president at Report for America, a national organization dedicated to supporting local journalism.

“We have two dominant platforms who sit between us and our readers, who extract the value of our content, and then they systematically deliver it to the users—our readers—in a highly predictive way so that the users stay within their walled gardens,” said Danielle Coffey, senior vice president at News Media Alliance.

The platforms continue extracting user data that they use as a currency, then when we do get readers, we only get a small percentage of ad revenue, she said. We get hit on the distribution side and the ad revenue side, she added.

Minnesota’s Attorney General Keith Ellison focused on the importance of information for democracy. People need to have access to information, which primarily comes from news sources, and those news sources need funding, he said. Without funding, news publications will close or change, and it will challenge the very foundation of our society, because we need informed people who can make decisions, he said.

No leverage on big tech

“We see our bargaining power with Google and Facebook as zero,” said Randy Lebedoff, senior vice president at the Minneapolis’ Morning Star publication. The digital advertising we get from the online platforms doesn’t make up for the drop in print advertising, because “someone else is getting paid for marketing our articles,” she said.

Although Klobuchar focused mainly on competition in tech industry, she also expressed concern over misinformation on social media. America needs to use free market capitalism that will foster new companies with “privacy bells and whistles” and better policies to control misinformation, she said.

Social media has impacted consumer readership through “the rise of what people call fake news, which is just really low-quality, click-bait propaganda,” said Julia Angwin, editor-in-chief at the Markup, a news organization that investigates big tech.

Propaganda used to be expensive to produce, but we’ve decentralized that and now it’s cheap and possible to make money from, she said. The tech companies elevate misinformation through news feeds with their algorithms and then take no responsibility for it, she said.

Legislation to address concerns

“It is high time for privacy legislation in the United States to protect consumers, we’re going to need something at the federal level. It’s going to be a patchwork mess if we approach it only at a state level,” Yale University fellow Dina Srinivasan said.

In February, Klobuchar introduced the Competition and Antitrust Law Enforcement Reform Act, S.225, legislation that would target anti-competitive behavior. The bill would increase funding for regulators at the Justice Department’s Antitrust Division and the Federal Trade Commission, and shift the burden of proof in mergers to the company to prove their acquisition does not harm a competitive market, among other things.

Rep. David Cicilline, D-Rhode Island, along with several other members of Congress, introduced the bipartisan Journalism Competition and Preservation Act in March, intended to allow small news publishers to collectively negotiate with online platforms to “protect Americans’ access to trustworthy sources of news online,” read the press release.

The bill would allow coordination by news publishers if it “(1) directly relates to the quality, accuracy, attribution or branding, or interoperability of news; (2) benefits the entire industry, rather than just a few publishers, and is non-discriminatory to other news publishers; and (3) is directly related to and reasonably necessary for these negotiations, instead of being used for other purposes,” said the statement.

But Waldman said the Klobuchar and Cicilline bills would likely not help save local news. America needs to look at other policy steps to help local news, he said. He suggested donations toward local journalism efforts.

If there was a slight shift toward viewing journalism as an important part of a community’s health, it would be transformative, he said. It would take $1 to $2 billion of well-targeted money in local news that would double the number of local reporters, which would only be about half of one percent of philanthropic giving, he said.

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Big Tech

Government’s Reactive Nature Hobbling Tech Regulation, Expert Says

Congress may need another big tech breach to move earnestly on regulation, says consultant.

Samuel Triginelli

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Screenshot of Steve Haro at FiscalNote event

April 12, 2021 – The reactive nature of Congress to data crises means another breach of citizens’ privacy may be needed to spurn the next big legislative move, said a former congressional chief of staff.

“We still have questions to answer how to deal with technology dominance. We are not there yet because, unfortunately, Congress, for the most part, tends to act in response to crisis,” said Steve Haro, who is currently a government affairs consultant and was a former assistant secretary of commerce.

During a discussion sponsored by FiscalNote and CQ Rollcall, experts joined in a conversation on the current state of public policy for the tech industry and how influential Congress and the Biden-Harris admission will be on dealing with big tech.

Among the discussed issues was how the government will deal with intermediary liability provision Section 230.

Lawmakers have wondered whether the provision — which protects platforms from legal liability for posts by their users — offers too much protection to social networks when it comes to content moderation and disinformation. This central premise has spurned calls for a reform of Section 230; a number of Democrats have proposed their own bill to keep much of the protections except for paid posts.

“I do not believe 230 needs change, but that doesn’t mean I don’t have concerns,” Haro said. “I believe there is collective agreement this is still a necessary law, and it has worked. It has allowed the internet to build do what has become, good or bad.”

Haro pointed to the congressional hearings into Facebook’s handling of the Cambridge Analytica scandal three years ago, which saw the scraping of millions of user accounts without their consent. The result did not see substantial progress on regulations. “We might need another crisis to spur Congress into action,” Haro said.

Michael Drobac, principal at the law firm Dentons, said “we are not there, and I would say the thing that has been most present and clear is that in most of these hearings” the members of Congress are still trying to understand the technology to make a meaningful impact.

“The reality is that section 230 is as important today as it was when it was passed,” Haro said.

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Big Tech

Regulatory Commission Needed To Monitor Big Tech Collection Of Consumer Data, Professor Says

Derek Shumway

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Screenshot of Robin Gaster from Henry George School of Social Science

April 8, 2021 — There needs to be a digital regulatory commission created to ensure big tech cannot run wild with consumer data, said Robin Gaster, a George Washington University public policy scholar.

Gaster, who’s also president of Incumetrics, a data and program evaluation consultancy, published a book that was released this month about Amazon’s rise from an online bookstore to everything else.

Gaster sat down with Broadband Breakfast on Wednesday and talked about the e-commerce giant’s reach into industries like healthcare and its rapid collection of more consumer data. The solution, he proposes, is creating a “new digital deal,” which would see a sort-of digital Federal Communications Commission — an entity which has the resources and the person power to match Amazon’s growing force.

Amazon’s reach into health care needs to be met with proper oversight and ethics to ensure it really will protect consumer privacy, he said.

The e-commerce behemoth acquired PillPack, a prescription delivery company, developed the Amazon Halo, a competitor device to Fitbit, and launched Amazon Care, a telehealth app service. Add Amazon’s own Alexa AI platform into the mix and it has a stream of access to valuable data.

“I would absolutely imagine that five years from now, if you sprain your knee, you probably will not go on the Internet and look for things and trying to figure it out. You will say, ‘Alexa,’ I sprained my knee. What should I do?” said Gaster.

Amazon’s breakneck growth into healthcare is concerning because no one knows exactly what could or intends to do with all the data it possesses, Gaster said. With so much aggregated data across its products and services, Amazon needs to be held accountable for its actions so that if something goes wrong, there are ways to fix it that are open and trustworthy.

Gaster said governments and companies alike are playing “privacy theater” – they talk about protecting privacy, but it’s a mere performance put on to make it seem like they care about it, he said.

Alexa takes in all sorts of data from voice-commands and people’s Amazon accounts. It may as well be a virtual doctor someday, but people don’t know how or if they can control their data recorded by Alexa, Gaster said.

The notion that people can control their data is ridiculous, said Gaster. “We are walking across the digital plane naked. We have no clothes!” he said, adding no one can wade through the legalese in the terms and conditions and privacy statements.

Gaster’s book is entitled Behemoth – Amazon Rising: Power and Seduction in the Age of Amazon.

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