Legislative And Industry Trends

Anthony LasseBrian Moy

Jason WalshMarcus Yabuta

Steve St John

Laws that govern the production and implementation of technology◦ Regulations◦ Standards

What Legislation Means In IT

Monopoly

A monopoly is a market situation in which there are many buyers but just one company that is selling a product or service.

Monopolies are unfavorable because they can cause the supplier to take advantage of consumers by charging unfair prices or by artificially decreasing supply.

What Is It?

1890 - Sherman Anti-trust Act prevented the formation of trusts, monopolies, and any other threat to free trade.

1914 - Creation of the FTC, the Federal Trade Commission, which was charged with enforcing the policies of the Sherman Anti-trust Act.

2000- Microsoft was ruled as committing monopolization, attempted monopolization, and of violating Sections 1 and 2 of the Sherman Anti-trust Act.

Microsoft would later appeal and in 2001 a federal appeals court overturned the rulings. The Department of Justice required that Microsoft share its APIs with third-party companies and allow a panel of three to have access to their source code.

Past Legislation

Google has a dominant place in the search market and provides services such as Google Maps, Google Mail, Google Docs, Google Books and many others.

New products such as Google Chrome, Chrome OS, and Android have further caused question as to whether or not Google has a monopoly.

When performing Google searches for services that Google has a product for, the results are listed higher for their service in comparison to others. For example, searching email will bring Gmail as the top hit even though it is the third most popular service. Google Maps results are shown when typing an address but results for MapQuest are non-existent.

Future Legislation

Telecommunications

Different Lines Of Communications◦ Telegraph◦ Phone◦ Dial Up◦ Cable/Broadband◦ Fiber◦ Cell/Wireless/Satellites

What Is It?

Telecom Acts

Communications Act of 1934 Consent Decree w/ AT&T 1956 Communications Satellite Act 1962 Modified Final Judgment 1982 (the AT&T

buster) Cable Communications Policy Act 1984 Telecomm Law 1996 Increased powers of the FCC

◦ Comcast/NBC merger

Examples

More actions similar to FCC/Comcast ◦ Less laws◦ More regulation on a deal by deal basis

“Killswitch”?◦ Egypt◦ Nationalized ISP’s

What The Future Holds

Privacy

Privacy is …

The right of privacy

What Is It?

Privacy Software◦ Password Safe◦ Locked folders◦ Anti-virus◦ Firewall

Protecting Your Privacy

Garbage

◦ In Wisconsin, police can search the garbage without a warrant.

◦ Credit card, social security..

◦ There are records of a company went through other company’s garbage to collect customer information and corporate strategies.

Personal Privacy

Business Privacy

◦ Customer/Employee information

◦ E businesses privacy

◦ Company is responsible for private information collected when it comes to disposing or securing.

◦ Phone number sharing to third party companies.

Public Privacy

HIPAA

The Health Insurance Portability & Accountability Act of 1996 (HIPAA)

Privacy Rule & Security Rule Enforced in 2003 Secretary of the U.S. Department of Health and Human

Services develop regulations To improve health insurance in group and individual

markets Reduces fraud, waste and abuse in health care and health

insurance Reduces costs and increases efficiency and effectiveness Ensure protection of American privacy Can Disclose protected information without authorization

What Is It?

First time national standards for protection of certain health information.

Office for Civil Rights (OCR) responsible for enforcing Privacy Rule

Main Goal is to assure individuals health information is protected properly as the information can also be allowed to flow smoothly to create high quality health care

Information linked to an individual is protected

Privacy Rule

Moving away from paper Standards to protect electronic health information Designed to be flexible and scalable Ensure confidentiality Protect against anticipated threats and users Ensure compliance by the workforce

Security Rule

HITECH

Health Information Technology for Economic and Clinical Health

Part of the American Recover and Reinvestment Act of 2009 Increases the civil and criminal enforcement of the HIPPA

rules “Breached Information” Must notify individuals if their information is exposed

◦ More than 500 individuals the media is also informed Makes covered entities and business associates

accountable

What Is It?

Kind Of Breach HIPAA (2003) HIECH (2009)

Reasonable Cause(not willful neglect)*

$100 a violationMax: $25,000

$1000 a violation       Max: $100,000

Willful Neglectcorrected

$100 a violationMax: $25,000

$10,000 a violationMax:  $250,000

Willful Neglect   Not corrected

$100 a violationMax: $25,000

$50,000 a violationMax: $1,500,000

Violations

Statistics 2003

Statistics 2009

Makes it easier for those who need it, harder for those who don’t

More security of personal health information Allows information to be disclosed without authorization

from the individual Presidential for covered hospitals during natural disasters

Affects of Today

Software Trends

Constantly Growing Industry Software is only as powerful as hardware can handle

What Is It?

IBM◦ Analytics◦ Data Management◦ Security

Operating Systems◦ Networking

Microsoft◦ Operating Systems◦ Personal Applications◦ Business Applications

Google◦ Web Applications◦ Operating Systems

Leaders Of 2010

Piracy

Copyright

Patent◦ The U.S. Patent Act, 35 U.S.C. §§ 1 et seq.

Plagiarism◦ Copy of an idea or close imitation from another

author/person.◦ Carroll University Handbook◦ http://www.dustball.com/cs/plagiarism.checker/

What Is It?

◦ Extremely Common

◦ Most countries have copyright laws which apply to software, but the degree of enforcement varies. – Bill Gates

◦ Microsoft has admitted that piracy of its Windows operating system has helped give it huge market share in China that will boost its revenues when these users "go legit."

◦ Bill Gates said, "It's easier for our software to compete with Linux when there's piracy than when there is not."

Software

◦ $12.5 billion of economic losses every year

◦ 71,060 U.S. jobs lost◦ Loss of $2.7 billion in

workers' earnings◦ Loss of $422 million in tax

revenues◦ $291 million in personal

income tax ◦ $131 million in lost

corporate income and production taxes.

Music

◦ Hacking

Unauthorized use of computer and network resources

Cracking software

Extending software expiration date.

Invasion of privacy

Stealing information/document

Damage operating system

Cyber Crime

Net Neutrality

“The idea that all Internet users should have unrestricted access to all legal content, services, and sites on the web.” “[It] is essentially a battle over how much control Internet providers should have”

ISPs should not have the ability to influence the speed or availability of sites or services.

The opposition says that competition should and does ensure that the net is already neutral. It is in their best interest to provide the full web experience.

Both claim to foster the best climate for innovation.

What Is It?

In 2005, Madison River Communications blocked access to Vonage.

When the FCC stepped in, the case never went to trial and MRC settled for $15,000.

The power to do so was based off of the 1997 Supreme Court Case Turner Broadcasting System, Inc. v. F.C.C. which allowed the FCC to enforce “must-carry” regulations.

In 2006, the House debated two bills, H.R 5417, which essentially enforces strict net neutrality policies, and H.R. 5252, which gives the FCC the legal right to enforce FCC Policy Statement 05-151.

Past Legislation

Dec. 21st, 2010 - The FCC passes a vote which will:◦ Force ISPs to be open about how

they handle network congestion◦ Prohibit the blocking of services

on wired networks◦ Outlaw “unreasonable”

discrimination on those networks However, on Feb. 17, 2011- the

House passes a bill that prevents any funding to allow the FCC to carry this out. The bill must now pass to the Senate where it will be voted on again. This is part of the budget, which needs to be enacted by March 4th.

Current Legislation

In the near future, it is expected that there will be a lot of legislation regarding Net Neutrality.

The Rules that the FCC has just enacted have yet to receive funding, which may cause them to receive the funding, be rewritten, or be removed altogether.

There will also be increasing emphasis on net neutrality as it applies to wireless access as mobile usage is increasing rapidly, but the infrastructure in place is not as equipped to handle the bandwidth as wired is.

Future Legislation

http://www.youtube.com/watch?v=l9jHOn0EW8U

Net Neutrality Video

Sarbanes-Oxley

Enacted on July 30, 2002 Public Company Accounting Reform and Investor Protection

Act◦ Corporate scandals◦ Caused collapse

Regulation of records◦ Paper copies◦ Electronic copies◦ Stored for at least 5 years◦ Cost effective

What Is It?

Enron◦ Unreliable financial statements◦ Modifications to the balance sheets◦ Led to bankruptcy

WorldCom◦ Bernard Ebbers

Underreported line costs Inflating revenues

Why It Was Enacted

Hardware Trends

New industries have new demands for hardware Current technological industries

◦ Computers◦ Servers◦ Mobile Phones◦ Televisions

Moore’s Law

What Is It?

Semiconductors◦ Intel – 30 Million◦ Toshiba- 10 Million◦ Texas Instruments – 9 Million

Computer Sales◦ Compaq – 10%◦ IBM – 8.6%◦ NEC – 6%

Who Is Winning (2000)

Semiconductors◦ Intel – 40 Million◦ Samsung -28 Million◦ Toshiba – 13 Million

Computer Sales◦ Dell – 15.9%◦ HP – 15.9%◦ Lenovo – 7%

Mobile Phone◦ Nokia◦ RIM◦ Apple

Who Is Winning (2010)

Moore’s Law New technological innovations Stricter Regulations

What The Future Holds

Every time I touch my code, I give birth to ten new bugs

Something Fun

Any Questions?

http://www.aicpa.org/InterestAreas/InformationTechnology/Resources/Privacy/PrivacyServices/DownloadableDocuments/9568A395_USprivacy.pdf

http://www.law.louisville.edu/library/collections/brandeis/node/225http://bits.blogs.nytimes.com/2010/07/26/part-i-answers-to-questions-about-internet-privacy/http://www.rbs2.com/privacy.htmhttp://www.scholarware.com/piracy.htmhttp://news.cnet.com/2100-1023-212942.htmlhttp://www.riaa.com/physicalpiracy.phphttp://www.plagiarism.org/plag_article_what_is_plagiarism.htmlhttp://www.crime-research.org/news/05.05.2004/241/http://157.166.255.31/2009/TECH/04/17/sweden.piracy.jail/index.html

Sources

http://www.dhmh.state.md.us/hipaa/whatishipaa.htmlhttp://whatishipaa.org/http://www.ehow.com/about_5448842_history-hipaa.htmlhttp://www.medscape.com/viewarticle/506843_5http://www.unc.edu/~leesl/inls187/future_forcast.htmhttp://www.hhs.gov/ocr/privacy/hipaa/understanding/index.htmlhttp://www.hhs.gov/ocr/privacy/hipaa/understanding/coveredentities/breachnotificationifr.htmlhttp://www.hhs.ghttp://theweek.com/article/index/201590/what-is-net-neutralityhttp://www.engadget.com/2007/03/29/net-neutrality-and-the-fcc-whats-being-done-to-preserve-it/http://www.wired.com/epicenter/2010/12/fcc-order/http://online.wsj.com/article/BT-CO-20110217-718244.htmlhttp://www.google.com/search?hl=en&defl=en&q=define:monopoly&sa=X&ei=fV5rTf7qJIOClAfrxKH_AQ&ved=0CB0QkAE

http://law.jrank.org/pages/12520/Monopolies-Antitrust-Law.htmlhttp://www.justice.gov/atr/cases/f200400/200457.pdfhttp://www.ritholtz.com/blog/2010/10/is-google-a-monopoly/http://www.scores.org/graphics/monopoly/ov/ocr/privacy/hipaa/understanding/special/emergency/index.html

Sources