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How Digital Technology is Shaping
the Future of Humanity
An American Legal Perspective
MARTHA BUYER
MARCH 1, 2017
LAW OFFICES OF MARTHA BUYER, PLLC
WWW.MARTHABUYER.COM
1
2
4
Incredible convenience and efficiencies
create incredible vulnerabilities
 Would you want your emails read?
 What steps do you take to keep your private
information private?
5
Who is responsible? 6
Another (very!) Important Consideration
technical expertise
security expertise
7
In the U.S., 4 critical entities
 NTIA – U. S. Department of Commerce
 FTC – Federal Trade Commission
 FCC – Federal Communications Commission
 States
8
9
Viviana Gonzalez AGATE
10
NTIA – U.S. Department of Commerce
 Not a regulator
 Multiple stakeholders process
 Continuing open standards process
 To continue to be a strong and active user of devices
to learn from the staff’s own experiences
11
Federal Trade Commission
 An enforcement agency
12
FTC (con’t)
 Same basic principles of software security apply to
IoT
 Making sure that the right people are in charge and
actively managing security issues
 Having a written plan in place
13
FTC (enforcement focus)
 Conducting risk assessments and addressing the
identified risks
 Oversight of service providers
A continuous process
 The “reasonableness” in enforcement, not strict
liability
14
Quantifiable Harm
 FTC’s pursuit of “deception” will continue
 Industry-specific statutes will continue to be used in
enforcement
 FTC will be looking at harm.
When there’s a failure of an IoT device, there can
be numerous harms
15
FCC 16
FCC
 FCC’s privacy rules, which are scheduled to take effect this
Thursday, require broadband providers (ISPs) to keep
customer information confidential.
 FCC’s vote gave consumers control, with mandated disclosure
and opt-in requirements for sensitive data, as well as data
security protections, he added.
17
State Law 18
Managing Increased Connectivity
A Legal Perspective
IoT has many new players who haven’t had to
consider security in the same way that other
information technology providers have.
19
3 key challenges to managing IoT
devices
 1. Ubiquitous data collection
 2. Unexpected uses of consumer data
 3. Heightened security risk, as devices can be easily
compromised.
20
Two categories of devices
 Those with privacy implications
 Those without privacy implications
21
IoT Device Management
 Current operation
 Ongoing maintenance and support
 Knowledge about how IoT-generated
information is being shared, and with whom
22
One more thing…
 Sometimes the information that’s being collected
becomes its own product with its own generated
income stream.
 Whose information is it?
 Who is benefiting from its sale?
23
Whose Responsibility is it?
 Manufacturer
 Seller/Distributor
 Consumer
 Software patches
 Security updates
 Ongoing maintenance
 Knowledge of product life cycle
24
IoT = Increased Vulnerability 25
Every lawyer’s favorite question…
Where is the risk?
Risk in communications to and from
IoT device(s)
Risk to the integrity of the device
itself.
26
IoT Trivia
 Large number of IoT devices with factory default
passwords that have never been changed
 Personal devices
 Industrial devices with broad reach
27
Cybersecurity Considerations
1. “Mature” manufacturers of newly connected
devices may have little, if any experience in
managing the collection, security and protection
of consumer data
28
Cybersecurity Considerations (con’t)
2. Challenge of the manufacturer and
distributor of getting the product to
market v. getting the product to market
safely
29
Cybersecurity Considerations (con’t)
3. Threats and vulnerabilities are constantly
evolving. Best practices must continue to evolve
too!
30
Cybersecurity Considerations (the last
one)
4. There is no one single best
solution
31
OK…one more consideration
Security failures are more likely to occur
when security is not a consideration
throughout the concept and design
processes
32
Data Minimization
 The collection and retention of large amounts of data
increases the harms associated with a breach
Larger stores of data are more valuable to hackers
than are small ones
33
 If the company collects and retains large
amounts of data, there is a risk that the data
will be used in a way that departs from
consumers’ reasonable expectations of how
that data will be used
34
Pre-IoT Purchase Questions
1. Does the hardware contain built-in safeguards?
a. What authentication tools exist?
2. Is a complete testing protocol in place?
a. The keyword here is “complete.”
3. How can security practices be communicated to customers, relevant regulators
and the public?
4. How often will the system be upgraded or patched? Is there a regular schedule
35
Regulation
Industry should regulate itself
Regulation stifles innovation
Industry is too young to be regulated
(yet)
Industry cannot regulate itself
36
Key Regulatory Considerations
 Privacy
 Security
 Transparency
Notice
Consent
 Intellectual Property
37
Who Will Regulate? 38
Questions?
39
Thank you!
40

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How digital technology is shaping the future of marthab

  • 1. How Digital Technology is Shaping the Future of Humanity An American Legal Perspective MARTHA BUYER MARCH 1, 2017 LAW OFFICES OF MARTHA BUYER, PLLC WWW.MARTHABUYER.COM 1
  • 2. 2
  • 3.
  • 4. 4
  • 5. Incredible convenience and efficiencies create incredible vulnerabilities  Would you want your emails read?  What steps do you take to keep your private information private? 5
  • 7. Another (very!) Important Consideration technical expertise security expertise 7
  • 8. In the U.S., 4 critical entities  NTIA – U. S. Department of Commerce  FTC – Federal Trade Commission  FCC – Federal Communications Commission  States 8
  • 9. 9
  • 11. NTIA – U.S. Department of Commerce  Not a regulator  Multiple stakeholders process  Continuing open standards process  To continue to be a strong and active user of devices to learn from the staff’s own experiences 11
  • 12. Federal Trade Commission  An enforcement agency 12
  • 13. FTC (con’t)  Same basic principles of software security apply to IoT  Making sure that the right people are in charge and actively managing security issues  Having a written plan in place 13
  • 14. FTC (enforcement focus)  Conducting risk assessments and addressing the identified risks  Oversight of service providers A continuous process  The “reasonableness” in enforcement, not strict liability 14
  • 15. Quantifiable Harm  FTC’s pursuit of “deception” will continue  Industry-specific statutes will continue to be used in enforcement  FTC will be looking at harm. When there’s a failure of an IoT device, there can be numerous harms 15
  • 17. FCC  FCC’s privacy rules, which are scheduled to take effect this Thursday, require broadband providers (ISPs) to keep customer information confidential.  FCC’s vote gave consumers control, with mandated disclosure and opt-in requirements for sensitive data, as well as data security protections, he added. 17
  • 19. Managing Increased Connectivity A Legal Perspective IoT has many new players who haven’t had to consider security in the same way that other information technology providers have. 19
  • 20. 3 key challenges to managing IoT devices  1. Ubiquitous data collection  2. Unexpected uses of consumer data  3. Heightened security risk, as devices can be easily compromised. 20
  • 21. Two categories of devices  Those with privacy implications  Those without privacy implications 21
  • 22. IoT Device Management  Current operation  Ongoing maintenance and support  Knowledge about how IoT-generated information is being shared, and with whom 22
  • 23. One more thing…  Sometimes the information that’s being collected becomes its own product with its own generated income stream.  Whose information is it?  Who is benefiting from its sale? 23
  • 24. Whose Responsibility is it?  Manufacturer  Seller/Distributor  Consumer  Software patches  Security updates  Ongoing maintenance  Knowledge of product life cycle 24
  • 25. IoT = Increased Vulnerability 25
  • 26. Every lawyer’s favorite question… Where is the risk? Risk in communications to and from IoT device(s) Risk to the integrity of the device itself. 26
  • 27. IoT Trivia  Large number of IoT devices with factory default passwords that have never been changed  Personal devices  Industrial devices with broad reach 27
  • 28. Cybersecurity Considerations 1. “Mature” manufacturers of newly connected devices may have little, if any experience in managing the collection, security and protection of consumer data 28
  • 29. Cybersecurity Considerations (con’t) 2. Challenge of the manufacturer and distributor of getting the product to market v. getting the product to market safely 29
  • 30. Cybersecurity Considerations (con’t) 3. Threats and vulnerabilities are constantly evolving. Best practices must continue to evolve too! 30
  • 31. Cybersecurity Considerations (the last one) 4. There is no one single best solution 31
  • 32. OK…one more consideration Security failures are more likely to occur when security is not a consideration throughout the concept and design processes 32
  • 33. Data Minimization  The collection and retention of large amounts of data increases the harms associated with a breach Larger stores of data are more valuable to hackers than are small ones 33
  • 34.  If the company collects and retains large amounts of data, there is a risk that the data will be used in a way that departs from consumers’ reasonable expectations of how that data will be used 34
  • 35. Pre-IoT Purchase Questions 1. Does the hardware contain built-in safeguards? a. What authentication tools exist? 2. Is a complete testing protocol in place? a. The keyword here is “complete.” 3. How can security practices be communicated to customers, relevant regulators and the public? 4. How often will the system be upgraded or patched? Is there a regular schedule 35
  • 36. Regulation Industry should regulate itself Regulation stifles innovation Industry is too young to be regulated (yet) Industry cannot regulate itself 36
  • 37. Key Regulatory Considerations  Privacy  Security  Transparency Notice Consent  Intellectual Property 37