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DISRUPTER SERIES: UPDATE ON IOT 

OPPORTUNITIES AND CHALLENGES 

HEARING 

BEFORE THE

SUBCOMMITTEE ON DIGITAL COMMERCE AND 

CONSUMER PROTECTION 

OF THE

COMMITTEE ON ENERGY AND 

COMMERCE 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED FIFTEENTH CONGRESS 

FIRST SESSION 

JUNE 13, 2017 

Serial No. 115–39 

( 

Printed for the use of the Committee on Energy and Commerce 

energycommerce.house.gov 

COMMITTEE ON ENERGY AND COMMERCE 

GREG WALDEN, Oregon 

Chairman 

JOE BARTON, Texas 

Vice Chairman 

FRED UPTON, Michigan 

JOHN SHIMKUS, Illinois 

TIM MURPHY, Pennsylvania 

MICHAEL C. BURGESS, Texas 

MARSHA BLACKBURN, Tennessee 

STEVE SCALISE, Louisiana 

ROBERT E. LATTA, Ohio 

CATHY MCMORRIS RODGERS, Washington 

GREGG HARPER, Mississippi 

LEONARD LANCE, New Jersey 

BRETT GUTHRIE, Kentucky 

PETE OLSON, Texas 

DAVID B. MCKINLEY, West Virginia 

ADAM KINZINGER, Illinois 

H. MORGAN GRIFFITH, Virginia 

GUS M. BILIRAKIS, Florida 

BILL JOHNSON, Ohio 

BILLY LONG, Missouri 

LARRY BUCSHON, Indiana 

BILL FLORES, Texas 

SUSAN W. BROOKS, Indiana 

MARKWAYNE MULLIN, Oklahoma 

RICHARD HUDSON, North Carolina 

CHRIS COLLINS, New York 

KEVIN CRAMER, North Dakota 

TIM WALBERG, Michigan 

MIMI WALTERS, California 

RYAN A. COSTELLO, Pennsylvania 

EARL L. ‘‘BUDDY’’ CARTER, Georgia 

FRANK PALLONE, JR., New Jersey 

Ranking Member 

BOBBY L. RUSH, Illinois 

ANNA G. ESHOO, California 

ELIOT L. ENGEL, New York 

GENE GREEN, Texas 

DIANA DEGETTE, Colorado 

MICHAEL F. DOYLE, Pennsylvania 

JANICE D. SCHAKOWSKY, Illinois 

G.K. BUTTERFIELD, North Carolina 

DORIS O. MATSUI, California 

KATHY CASTOR, Florida 

JOHN P. SARBANES, Maryland 

JERRY MCNERNEY, California 

PETER WELCH, Vermont 

BEN RAY LUJA ́ N, New Mexico 

PAUL TONKO, New York 

YVETTE D. CLARKE, New York 

DAVID LOEBSACK, Iowa 

KURT SCHRADER, Oregon 

JOSEPH P. KENNEDY, III, Massachusetts 

TONY CA ́ RDENAS, California 

RAUL RUIZ, California 

SCOTT H. PETERS, California 

DEBBIE DINGELL, Michigan 

SUBCOMMITTEE ON DIGITAL COMMERCE AND CONSUMER PROTECTION

ROBERT E. LATTA, Ohio 

Chairman 

GREGG HARPER, Mississippi 

Vice Chairman 

FRED UPTON, Michigan 

MICHAEL C. BURGESS, Texas 

LEONARD LANCE, New Jersey 

BRETT GUTHRIE, Kentucky 

DAVID B. MCKINLEY, West Virgina 

ADAM KINZINGER, Illinois 

GUS M. BILIRAKIS, Florida 

LARRY BUCSHON, Indiana 

MARKWAYNE MULLIN, Oklahoma 

MIMI WALTERS, California 

RYAN A. COSTELLO, Pennsylvania 

GREG WALDEN, Oregon (ex officio) 

JANICE D. SCHAKOWSKY, Illinois 

Ranking Member 

BEN RAY LUJA ́ N, New Mexico 

YVETTE D. CLARKE, New York 

TONY CA ́ RDENAS, California 

DEBBIE DINGELL, Michigan 

DORIS O. MATSUI, California 

PETER WELCH, Vermont 

JOSEPH P. KENNEDY, III, Massachusetts 

GENE GREEN, Texas 

FRANK PALLONE, JR., New Jersey (ex 

officio) 

(II) 

(III) 

C O N T E N T S 

Page 

Hon. Robert E. Latta, a Representative in Congress from the State of Ohio, 

opening statement ................................................................................................ 1 

Prepared statement .......................................................................................... 2 

Hon. Janice D. Schakowsky, a Representative in Congress from the State 

of Illinois, opening statement .............................................................................. 4 

Hon. Frank Pallone, Jr., a Representative in Congress from the State of 

New Jersey, opening statement .......................................................................... 5 

Prepared statement .......................................................................................... 6 

WITNESSES

William S. Marras, Ph.D., Executive Director and Scientific Director, Spine 

Research Institute, The Ohio State University ................................................. 8 

Prepared statement .......................................................................................... 11 

Gary D. Butler, Ph.D., Founder and Chief Executive Officer, Camgian Microsystems Corporation ............................................................................................ 15 

Prepared statement .......................................................................................... 17 

William Kuhns, President, Vermont Energy Control Systems LLC ................... 22 

Prepared statement .......................................................................................... 24 

Cameron Javdani, Director, Sales and Marketing, Louroe Electronics .............. 25 

Prepared statement .......................................................................................... 27 

Mark Bachman, Ph.D., Chief Technical Officer, Integra Devices LLC ............... 31 

Prepared statement .......................................................................................... 33 

Peter B. Kosak, Executive Director, Urban Active Solutions, General Motors 

Company ............................................................................................................... 44 

Prepared statement .......................................................................................... 46 

SUBMITTED MATERIAL

Letter of June 13, 2017, from Marc Rotenberg, President, and Caitriona 

Fitzgerald, Policy Director, Electronic Privacy Information Center, to Mr. 

Latta and Ms. Schakowsky, submitted by Ms. Schakowsky ............................ 73 

(1) 

DISRUPTER SERIES: UPDATE ON IOT 

OPPORTUNITIES AND CHALLENGES 

TUESDAY, JUNE 13, 2017 

HOUSE OF REPRESENTATIVES, 

SUBCOMMITTEE ON DIGITAL COMMERCE AND CONSUMER

PROTECTION, 

COMMITTEE ON ENERGY AND COMMERCE, 

Washington, DC. 

The subcommittee met, pursuant to call, at 10:35 a.m., in Room 

2123, Rayburn House Office Building, Hon. Robert Latta (chairman 

of the subcommittee) presiding. 

Members present: Representatives Latta, Harper, Burgess, 

Upton, Lance, McKinley, Bilirakis, Bucshon, Mullin, Costello, Schakowsky, Ca ́ rdenas, Dingell, Welch, and Pallone (ex officio). 

Staff present: Blair Ellis, Press Secretary/Digital Coordinator; 

Melissa Froelich, Counsel, Digital Commerce and Consumer Protection; Adam Fromm, Director of Outreach and Coalitions; Giulia 

Giannangeli, Legislative Clerk, Digital Commerce and Consumer 

Protection/Communications and Technology; A.T. Johnston, Senior 

Policy Advisor, Energy; Bijan Koohmaraie, Counsel, Digital Commerce and Consumer Protection; Katie McKeough, Press Assistant; 

Alex Miller, Video Production Aide and Press Assistant; Paul 

Nagle, Chief Counsel, Digital Commerce and Consumer Protection; 

Mark Ratner, Policy Coordinator; Madeline Vey, Policy Coordinator, Digital Commerce and Consumer Protection; Evan Viau, 

Staff Assistant; Michelle Ash, Minority Chief Counsel, Digital Commerce and Consumer Protection; Jeff Carroll, Minority Staff Director; Lisa Goldman, Minority Counsel; and Caroline Paris-Behr, Minority Policy Analyst. 

Mr. LATTA. Good morning. I would like to call the Subcommittee 

on Digital Commerce and Consumer Protection to order. And the 

Chair now recognizes himself for 5 minutes for an opening statement. 

OPENING STATEMENT OF HON. ROBERT E. LATTA, A 

REPRESENTATIVE IN CONGRESS FROM THE STATE OF OHIO 

And good morning again. And today we continue the Disrupter 

Series with our focus on the Internet of Things. Most of us just 

came from the Rayburn forum where our panelists and 17 other 

companies and universities showcased the important work they are 

doing in this sector. Members and staff saw firsthand the innovative ways companies and universities are using the Internet of 

Things to better meet consumer demands. 

2 

I want to thank all of you who participated in this event. And 

I also want to thank our hard-working staffs who put this all together, because without their hard work it would not have occurred. 

The Internet of Things, or IoT, loosely refers to a network of connected devices, services, and objects that collect and exchange information. And new devices are being connected all the time. 

Today, for example, C–SPAN is tapping into the Internet of Things 

by testing a new and innovative 360 degree HD camera right here 

in our committee hearing room. While this footage will not be publicly available, this is just one more illustration of how connectivity 

in this day and age is used to collect, share, and exchange data in 

real time. 

These connected devices offer businesses and consumers significant benefits. For businesses, IoT is improving efficiency and increasing productivity for all, while helping to drive down overhead 

costs. For consumers, IoT provides quick, responsive services, enhanced experiences, and convenience. 

We are seeing IoT revolutionize a variety of industries and optimize everything from manufacturing and home appliances to automobiles and healthcare. 

Specifically, in the healthcare industry IoT is being used to both 

enhance preventive measures as well as streamline treatment for 

other health issues. Joining us on the panel today from my home 

State of Ohio is Dr. Marras. And Dr. Marras is Executive Director 

and Scientific Director of the Spine Research Institute at The Ohio 

State University, and plays an important role in the IoT and 

healthcare space. 

His team is using IoT in a variety of ways to help diagnose spine 

disorders, improve effective back treatments, and identify occupational tasks that cause back injury so that businesses adjust those 

tasks to reduce the on-the-job injuries. 

I look forward to hearing more about the work that our panelists 

are doing in the IoT space and how IoT has improved the important work you are all doing. I also look forward to exploring how 

we, as policymakers, can continue to promote IoT and address any 

regulatory obstacles or barriers you foresee that may stifle innovation or otherwise hinder the industry. 

And, again, I want to thank you all for joining us today. 

[The prepared statement of Mr. Latta follows:] 

PREPARED STATEMENT OF HON. ROBERT E. LATTA

Good morning and welcome to the Digital Commerce and Consumer Protection 

subcommittee hearing. Today we continue the Disrupter Series with our focus on 

the Internet of Things. We just came from the Rayburn Foyer where our panelists 

and 17 other companies and universities showcased the important work they’re 

doing in this space. Members and staff saw first-hand the innovative ways companies and universities are using the Internet of Things to better meet consumer demands. I want to thank you all as well as everyone who participated in the showcase. 

The Internet of Things, or IoT, loosely refers to a network of connected devices, 

services and objects that collect and exchange information. And new devices are 

being connected all the time. Today, for example, CSPAN is tapping into the Internet of Things by testing their new and innovative 360-degree HD camera right here 

in this very room. While this footage will not be publicly available, this is just one 

3 

more illustration of how connectivity in this day in age is used to collect, share, and 

exchange data in real time. 

These connected devices offer businesses and consumers significant benefits. For 

businesses, IoT is improving efficiency and increasing productivity all while helping 

drive down overhead costs. For consumers, IoT provides quick responsive services, 

enhanced experiences and convenience. We are seeing IoT revolutionize a variety of 

industries and optimize everything from manufacturing and home appliances to 

automobiles and healthcare. 

Specifically, in the healthcare industry, IoT is being used both to enhance preventative measures as well as streamline treatment for other health issues. Joining 

us on the panel today from my home State of Ohio is Dr. Marras. Dr. Marras is 

the Executive Director and Scientific Director of the Spine Research Institute at The 

Ohio State University and plays an important role in the IoT and healthcare space. 

Dr. Marras and his team are using IoT in a variety of ways to help diagnose spine 

disorders, improve effectiveness of back treatments and identify occupational tasks 

that cause back injuries so that businesses adjust those tasks to reduce on-the-job 

injuries. 

I look forward to hearing more about the work our panelists are doing in the IoT 

space and how IoT has improved the important work you all are doing. I also look 

forward to exploring how we, as policymakers, can continue to promote IoT and address any regulatory obstacles or barriers you all foresee that may stifle innovation 

or otherwise hinder the industry. Thank you all for joining us today. 

Mr. LATTA. And is there anyone on our side wishing to claim my 

additional time? I recognize the gentleman, the vice chairman of 

the subcommittee, for the remaining time. 

Mr. HARPER. Thank you, Mr. Chairman, for calling this hearing 

today on the Internet of Things, or IoT. And I would like to extend 

a warm welcome to Dr. Gary Butler from my hometown of Pearl, 

Mississippi, on the panel this morning. Dr. Butler is the founder, 

CEO, and chairman of Camgian Microsystems, headquartered in 

my district, in Starkville, Mississippi. 

Camgian is driving information and innovation in the industrial 

IoT world and pioneering efforts to use cutting edge solutions to 

help address our growing infrastructure problems in the United 

States. Camgian’s award-winning IoT product Egburt, released in 

October of 2014, is an end-to-end software application specifically 

designed to intelligently manage large volumes of complex sensing 

and processing operations. 

The distributed computing feature of the Egburt design, otherwise known as edge computing or fog computing, utilizes multi-sensor and information processing technologies to deliver real-time, actual intelligence to users for the network’s edge. Egburt was designed to provide commercial and Government customers a broad 

range of services for remote monitoring applications such as smart 

infrastructure and condition-based maintenance. 

As an example, Egburt powers the new intelligent decision support, or IDS, systems for the U.S. Army Corps of Engineers which 

is currently installed on the Markland Lock and Dam on the Ohio 

River. 

I’m looking forward to hearing from each of the witnesses today 

to learn more about how IoT is improving our quality of life, safeguarding the flow of commerce, and strengthening our economy. 

With that, I yield back. 

Mr. LATTA. Thank you. The gentleman yields back. 

At this time the Chair now recognizes for 5 minutes the 

gentlelady from Illinois, the ranking member of the subcommittee. 

4 

OPENING STATEMENT OF HON. JANICE D. SCHAKOWSKY, A 

REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS 

Ms. SCHAKOWSKY. I want to thank Chairman Latta and the committee staff for organizing this morning’s Internet of Things Showcase. I was so excited about what was happening. I was a little bit 

late; I’m sorry. But it was so impressive to see what these young 

people are doing. 

I was especially proud to welcome students from Northwestern 

University, which is located in my congressional district. The Garage at Northwestern is a hub for entrepreneurship and innovation 

that brings together students and faculty across disciplines. In a 

given quarter, The Garage is home to some 60 student-founded 

start-ups and it prepares students to take those start-ups to the 

next level. 

Each year, The Garage holds the venture cap competition where 

students pitch their start-ups. The Northwestern students at our 

Showcase this morning were semi-finalists in the 2017 competition. 

They are not there in the audience yet. I hope they come. 

The PedalCell start-up, founded by Northwestern freshmen 

Vishaal Mali and Christopher Aigner, lets you charge your telephone, your cell phone as you pedal your bike; an energy-efficient 

way to stay connected as you move through the day. 

LifeMotion, founded by mechanical engineering Ph.D. Michael 

Young, is helping oral cancer survivors restore mouth function. It’s 

a wearable rehabilitation device that logs information for the patient and physician to improve health outcomes. 

These are just two great examples of how innovation can benefit 

our country. Research universities like Northwestern are critical to 

the future of innovation in the country. And I am working with my 

congressional colleagues to provide the education and research 

funding necessary to help this innovation to continue. 

Here they are, our students, our innovators for both the 

PedalCell and LifeMotion. 

Our panel today is made up wholly of participants in our IoT 

Showcase. I talked with some of you earlier, and I look forward to 

hearing more about your work. You saw the showcase at the Showcase, the enormous potential for the Internet of Things. I am interested to hear about the challenges our witnesses have faced as we 

are familiar with in the subcommittee the make-up of connected 

devices have to think about user experience, privacy, and security, 

as well as all the issues that other entrepreneurs deal with. 

We value your perspective as we determine how the Federal Government can help consumers realize the full benefit of your technologies. I want to thank you for joining us today. 

And now I yield to Congressman Ca ́ rdenas the remainder of my 

time. 

Mr. CA ́ RDENAS. Thank you, Ranking Member Schakowsky. And 

also thank you, Mr. Chairman, for holding this committee. And I 

would like to thank all of the witnesses for coming here today. It 

is exciting to hear from so many great American companies that 

are providing technology and jobs of today and tomorrow. 

I am especially proud of Cameron Javdani from Louroe Electronics. Came all the way from the San Fernando Valley, my disVerDate Mar 15 2010 11:09 Apr 04, 2018 Jkt 037690 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 I:\115THCONGRESS\115X39IOTUPDATEASKOK040218\115X39IOTUPDATEPDFMADE W
5 

trict, which has been my home my entire life. And thank you for 

representing us here in this hearing. 

Southern California remains to this day one of the great American hubs of innovation in manufacturing. And Louroe Electronics 

from my district not only embodies this legacy but also takes its 

products beyond Los Angeles and actually to the rest of the country 

and to the world. Louroe’s state-of-the-art audio monitoring products are used in almost 60 countries worldwide, and which is especially impressive for a company that is actually a small company. 

And they are constantly evolving to incorporate technologies like 

the integrated network connectivity behind the Internet of Things, 

all to help security professionals keep our communities safe. 

In fact, in 2015, Louroe Electronics received the President’s E 

Award for exports, the highest honor given to a United States exporter corporation. I used to own my own little small business at 

one time, so I know what it is like to be in your shoes. 

I visited Louroe Electronics more than once. I have seen firsthand their commitment to their employees and to our community. 

Louroe’s CEO, Mr. Richard Brent, as a matter of fact I ran into 

him at the airport yesterday, and I said, ‘‘You going to DC?’’ He 

says, ‘‘No. I am going to Dallas.’’ He is a leader not only in our 

community but a perfect example of what it is to be a contributor 

to knowledge and information and innovation, not just for a local 

community but for the country and the world. 

Again, I am also proud to say that Louroe Electronics is here as 

part of the presentation today. 

And with the interests of time, once again, Mr. Chairman Latta, 

thank you so much, and Ranking Member Schakowsky, for holding 

this hearing. I yield back. 

Ms. SCHAKOWSKY. I yield my time. 

Mr. LATTA. Thank you very much. The gentlelady yields back the 

balance of her time. 

The chairman of the full committee is not here at this time. And 

we will recognize the gentleman from New Jersey, the ranking 

member of the full committee, for 5 minutes. 

OPENING STATEMENT OF HON. FRANK PALLONE, JR., A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY 

Mr. PALLONE. Thank you. Today this committee held, is holding 

its second showcase of new and emerging technological products 

connected to the Internet. The Internet of Things encompasses everything from an Internet-connected fitness tracking device that 

counts and records the steps of an exercise-conscious person, to a 

fully autonomous automobile. And today we had the opportunity to 

see a range of products that may help consumers in a variety of 

ways. 

I am particularly interested in some of the products that reduce 

our use of fossil fuels. Some IoT devices are helping homeowners 

ensure their homes are more energy efficient, building owners are 

improving the operational efficiencies of escalators and elevators. 

As we learned at the Smart Committee hearing, cities are using 

smart technologies to save precious water resources and reduce energy usage. 

6 

In my district, the city of Asbury Park is installing sensors that 

can remotely control the boardwalk’s lighting, which the city expects will help save money on its electricity bills. Using less energy 

means using less fossil fuel. 

And as we have discussed throughout the Disrupter Series, technological advances are making financial transactions more convenient and efficient, healthcare more accessible, and our roads more 

safe. The Internet of Things has penetrated all sectors of the economy. And because technological changes have come to all aspects 

of our lives, we are all faced with the challenges of integrating 

technology. And particularly, I must mention the challenge of cybersecurity. 

At last week’s hearing on healthcare cyberthreats, I highlighted 

that our critical healthcare systems are at risk for attack. Our 

health records are part of the Internet of Things, as are many of 

our medical devices. Right now another one of our subcommittees 

is having an informational hearing on cybersecurity risk to wireless 

technologies. And I hope that we, as a committee, will move beyond 

the informational review and start considering real legislative solutions such as the Democratic bills that have been introduced to address these problems. 

After all, it sounds great to have your food delivered by a robot 

or drone, but we do not want that robot or drone hacked. And while 

sometimes these cybersecurity threats sound like they come from 

a science fiction movie, incidents like the Russian hacking and the 

interference in our elections demonstrates that the threat is real. 

Creators and manufacturers of Internet-connected technology must 

take responsibility for mitigating this threat. 

So I implore everyone working in this space, including our distinguished witnesses today, to ensure that cybersecurity and data security are built into your products from day one. That way, consumers will have the confidence to buy and use these products 

knowing protections are in place. 

And also be mindful of consumer privacy. In the age of big data, 

it’s tempting to collect more than you need. The more you collect, 

the more you must secure. And consumers have already repeatedly 

told us that they want control of who has access to their data. 

[The prepared statement of Mr. Pallone follows:] 

PREPARED STATEMENT OF HON. FRANK PALLONE, JR. 

Good morning. Today, this committee held its second showcase of new and emerging technological products connected to the internet. 

The Internet of Things—or IoT—encompasses everything from an internet connected fitness tracking device that counts and records the steps of an exercise-conscious person to a fully autonomous automobile. And today we had the opportunity 

to see a range of products that may help consumers in a variety of ways. 

I am particularly interested in some of the products that reduce our use of fossil 

fuels. Some IoT devices are helping homeowners ensure their homes are more energy efficient. Building owners are improving the operational efficiencies of escalators and elevators. As we learned at the Smart Communities hearing, cities are 

using smart technologies to save precious water resources and reduce energy usage. 

In my district, the city of Asbury Park is installing sensors that can remotely control the boardwalk’s lighting, which the city expects will help save money on its electricity bills. Using less energy means using less fossil fuel. 

As we have discussed throughout the disruptor series, technological advances are 

making financial transactions more convenient and efficient, healthcare more accesVerDate Mar 15 2010 11:09 Apr 04, 2018 Jkt 037690 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 I:\115THCONGRESS\115X39IOTUPDATEASKOK040218\115X39IOTUPDATEPDFMADE W
7 

sible, and our roads more safe. The Internet of Things has penetrated all sectors 

of the economy. 

And because technological changes have come to all aspects of our lives, we are 

all faced with the challenges of integrating technology. In particular, I must mention the challenge of cybersecurity. At last week’s hearing on healthcare cyberthreats, I highlighted that our critical healthcare systems are at risk for attack. Our 

health records are part of the Internet of Things, as are many of our medical devices. Right now, another one of our subcommittees is having an informational hearing on cybersecurity risks to wireless technologies. I hope we as a committee will 

move beyond the informational review and start considering real legislative solutions such as the Democratic bills that have been introduced to address these problems. 

After all, it sounds great to have your food delivered by a robot or drone, but we 

do not want that robot or drone hacked. And while sometimes these cybersecurity 

threats sound like they come from a science fiction movie, incidents like the Russian 

hacking and the interference of our elections demonstrates that the threat is real. 

Creators and manufacturers of internet-connected technology must take responsibility for mitigating this threat. 

I implore everyone working in this space, including our distinguished witnesses 

today, to ensure that cybersecurity and data security are built into your products 

from day one. That way, consumers will have the confidence to buy and use these 

products knowing protections are in place. 

Also, be mindful of consumer privacy. In the age of big data, it is tempting to collect more than you need. The more you collect, the more you must secure. Consumers have also repeatedly told us that they want control of who has access to 

their data. 

Mr. PALLONE. I yield the balance of my time to Mr. Welch. 

Mr. WELCH. Thank you, Mr. Pallone. I want to just welcome Bill 

Kuhns from North Ferrisburgh, Vermont, U.S. world headquarters 

of the Vermont Energy Control Systems. But that is a great company. And you have got your display downstairs and presented it 

to me. 

But Mr. Kuhns has 20 years of experience in aerospace. He started a small company in North Ferrisburgh, Vermont. It’s a small 

company in a small town with a large footprint. This morning I 

saw on display clients using your products from the East Coast to 

the West Coast. And you may have made a new sale, because it 

looks like my wife and I could, you know, take advantage of being 

able to control our thermostat from afar. We don’t like to get home 

to chilly houses in Vermont. 

But it’s an amazing thing to me to see how, what your technology 

allows to be done. You know, it was amazing. First of all, you can 

control your home. But, also, beer makers were able to get precise 

measurements about the malt making process. So there’s no end to 

the benefit of the precision that can come with the use of the Internet. 

And this, Mr. Chairman, you and I started our bipartisan committee. It has got 21 members on it. This is an area of enormous 

potential. And the folks here, we want to hear from you about what 

you did, Bill, with your partner, with Mr. Shepard who’s down 

there, fielding, fielding inquiries, is really tremendous. And we’re 

proud of you in Vermont and look forward to your testimony today. 

I yield back. Thank you, Mr. Chairman. Thank you, Mr. Pallone. 

Ms. SCHAKOWSKY. If I could just have the remaining couple of 

seconds, I wanted to add Adam Hokin and Andrew Brown, who I 

hadn’t mentioned before as part of PedalCell, for the permanent 

record. Thank you. 

8 

Mr. LATTA. Thank you very much. The gentleman’s time has expired. And at this time that will conclude our Members’ opening 

statements. 

The Chair would like to remind Members that, pursuant to committee rules, all Members’ opening statements will be made part of 

the record. 

Again I want to thank all of the witnesses for being with us 

today. We greatly appreciate your time to testify before us at the 

subcommittee. And today’s witnesses will have the opportunity to 

give opening statements, followed by a round of questions from the 

members of the subcommittee. 

Our witness panel for today’s hearing will include Dr. William 

Marras, Executive Director and Scientific Director are the Spine 

Research Institute at The Ohio State University. When they wrote 

my notes up, they didn’t put the ‘‘The’’ in there that I put in. Because in Ohio we do know it is The Ohio State University. 

Dr. Gary Butler, Founder, Chairman, and CEO at Camgian 

Microsystems Corporation. 

Mr. Bill Kuhns, President at Vermont Energy Control Systems 

LLC. 

Mr. Cameron Javdani, Director of Sales and Marketing at Louroe 

Electronics. 

Dr. Mark Bachman, CTO and Co-Founder, Integra Devices. 

And Peter Kosak, Executive Director of Urban Active Solutions 

at General Motors North America. 

We appreciate, again, you all being here today. And we will start 

our panel discussion this morning with Dr. Marras. And you are 

now recognized for 5 minutes. Thank you very much. 

STATEMENTS OF WILLIAM S. MARRAS, PH.D., EXECUTIVE DIRECTOR AND SCIENTIFIC DIRECTOR, SPINE RESEARCH INSTITUTE, THE OHIO STATE UNIVERSITY; GARY D. BUTLER, 

PH.D., FOUNDER AND CHIEF EXECUTIVE OFFICER, CAMGIAN 

MICROSYSTEMS CORPORATION; WILLIAM KUHNS, PRESIDENT, VERMONT ENERGY CONTROL SYSTEMS LLC; CAMERON JAVDANI, DIRECTOR, SALES AND MARKETING, 

LOUROE ELECTRONICS; MARK BACHMAN, PH.D., CHIEF 

TECHNICAL OFFICER, INTEGRA DEVICES LLC; AND PETER B. 

KOSAK, EXECUTIVE DIRECTOR, URBAN ACTIVE SOLUTIONS, 

GENERAL MOTORS COMPANY 

STATEMENT OF WILLIAM S. MARRAS 

Dr. MARRAS. Thank you, Chairman Latta, Ranking Member 

Schakowsky, and members of the subcommittee. Thank you for this 

opportunity to speak about transformational innovations, 

leveraging the Internet of Things occurring at The Ohio State University’s Spine Research Institute. 

My testimony today will highlight the way in which Ohio State 

University’s Spine Research Institute, or SRI, is coordinating the 

communication of advanced sensors, imaging and modeling through 

the Internet to help prevent and better treat spine disorders. 

Spine disorders, worldwide, are the most disabling condition 

known to mankind, are responsible for over 100 million lost workdays per year in the United States alone. The condition affects 80 

9 

percent of the population some time in their lives, and is the second leading cause for physician visits. And we spend over $100 billion a year treating people for low back pain in the U.S. Despite 

increasing treatment costs, the source of the disorder is often difficult to pinpoint, resulting in spine surgeries which are frequently 

unnecessary. 

At the SRI our mission is to quantitatively understand the causal 

pathways for spine disorders and use this information to prevent 

and treat spine disorders. The SRI is unique in that it is a true 

collaboration between engineering and medicine. This collaboration 

has resulted in important breakthroughs, which have contributed 

to the prevention of countless workplace injuries and improved the 

lives of patients. 

The use of innovative technology to collect and exchange data 

through the IoT has made all of this possible. I would like to highlight three specific examples of how we are using technology associated with the IoT to make a positive impact in this important research area. 

First, we have developed smart, wearable sensored devices that 

are capable of quantifying the extent of low back impairment. The 

sensors track the patient’s spine motion patterns and wirelessly 

transfer it to our laboratory servers via the IoT where it is compared to our spine motion databases. This information is then sent 

to the physician to assist in diagnosis and clinical decision-making. 

The test can be repeated after treatment to objectively track the effectiveness of the treatment. 

This system is currently used to evaluate spine patients at the 

OSU Wexner Medical Center and is being tested at the Ohio Bureau of Workers’ Compensation. 

And the second example, we use advanced sensors and biomechanical modeling to prevent spine injuries in the workplace. We 

can simulate work and objectively evaluate occupational risk in our 

laboratory. Workers perform their job while a variety of smart sensors measure how they move, how they activate their muscles, and 

monitors the forces they exert. 

This information communicates with our sophisticated personalized biomechanical models via the IoT. These models allow us to 

understand the forces imposed on the spine tissues during work, 

and help us understand how much exposure to specific work tasks 

is too much exposure. Using this approach, we are able to redesign 

work tasks and objectively evaluate the effectiveness of the interventions. 

We have used this approach to help numerous companies, including Honda, Ford, Toyota, BMW, Boeing, and many others reduce 

low back disorders. In fact, Honda has been recognized by industry 

experts and Forbes magazine for reducing injuries in North America by 70 percent in just over 5 years. A current project with the 

Ohio Bureau of Worker’s Compensation has developed occupational 

pushing and pulling guidelines that will soon be distributed 

throughout the State via the IoT. 

A final example of our use of technology relates to the IoT, involves predicting the outcome of spine surgeries before the surgery 

takes place. By combining IoT data from wireless motion, force, 

and muscle activity sensors with a patient’s own biomedical imagVerDate Mar 15 2010 11:09 Apr 04, 2018 Jkt 037690 PO 00000 Frm 00013 Fmt 6633 Sfmt 6633 I:\115THCONGRESS\115X39IOTUPDATEASKOK040218\115X39IOTUPDATEPDFMADE W
10 

ing data from CT and MRI, we are able to build precise personalized computational models of a patient’s spine. These models can 

be used to better understand the root cause of patient’s injuries 

and help the surgeon choose the best treatment options. The personalized modeling has the potential to improve the current success 

rate for spinal surgeries. 

In addition, this virtual modeling can be made tangible by simply 

sending the data to a 3D printer. We are able to print exact models 

of the patient’s spine and help the surgeon better understand the 

patient’s specific anatomy and explore the use of this technology for 

custom spinal implants. 

Many of these advances have been made possible through the 

compilation of massive amounts of data regarding the unique aspects of the patient’s tissue architecture. However, one of the biggest challenges in this work involves getting access to patient information because of the patient protection laws. While patient identity protections are certainly necessary, they also create significant 

hurdles in attempting to assemble large database of patient outcomes and hamper the effectiveness of machine learning efforts. 

Another significant roadblock is sustainable Federal funding for 

long-term research efforts such as these. Given the lack of certainty 

in Federal research funding in recent years, these and future efforts could be in serious jeopardy. 

I would like to thank the committee again for their time. I look 

forward to the committee’s questions. Thank you. 

[The prepared statement of Dr. Marras follows:] 

11 


Before the House Committee on Energy and Commerce 

Subcommittee on Digital Commerce and Consumer Protection 

Hearing on 

Disrupter Series: Update on lOT Opportunities and Challenges. 

2123 Rayburn House Office Building 

William S. Marras, Ph.D., CPE 

Executive Director & Scientific Director of the Spine Research Institute 

Executive Director of the Center for Occupational Health in Automotive Manufacturing 

Executive Director of the Institute for Ergonomics. 

Honda Chair Professor, Integrated Systems Engineering 

J>rofessor, Physical Medicine & Rehab 

Professor, Orthopaedics 

Professor, Neurological Surgery 

at The Ohio State University 

Chairman Latta, Ranking Member Schakowsky, and members of the subcommittee, thank you for 

this opportunity to speak about the transformational innovations, leveraging the "Internet of Things 

(loT) occurring at The Ohio State University's Spine Research Institute. 

I would like to thank Chairman Latta for his support and leadership. We are fortunate to have 

Chairman Latta, as well as Congressman Bill Johnson, as two champions of innovation 

representing the interests of Ohioans on the House Energy & Commerce Committee 

Ohio State & SRI Overview 

My testimony today will highlight the way in which The Ohio State University Spine Research 

Institute (SRI) is coordinating the communication of advanced sensors, imaging and modeling 

through the internet to help prevent and better treat spine disorders. 

Spine disorders, worldwide, are the most disabling condition known to humankind, and are 

responsible for over I 00 million lost workdays per year in the United States alone. The condition 

will affect 80% of the population at some point in their lives, and is the second leading cause for 

physician visits. We spend over $100 billion a year on low back injuries alone in the U.S. Despite 

increasing treatment costs, the source of the disorder is often difficult to pinpoint resulting in spine 

surgeries, which are frequently unsuccessfuL 

At the SRI our mission is to quantitatively understand the causal pathways for spine disorders and 

to use this information to both prevent and treat spine disorders. The SRI is unique in that it is a 
12 


true collaboration between engineering and medicine. This collaboration has resulted in important 

breakthroughs, which have contributed to the prevention of countless workplace injuries and 

improved the lives of patients. 

The use of innovative technology to collect and exchange data through the loT has made all of this 

possible. I would like to highlight three specific examples of how we are using technology 

associated with the loT to make a positive impact in this important area. 

loT & Innovation at The Ohio State University 

Clinical Lumbar Motion Monitoring (cUvfA1.): First, assessing the degree of impairment associated 

with low back disorders has traditionally used subjective measures that can often lead to 

unnecessary or improper treatments. 

We have developed smart wearable sensing devices that are capable of quantifying the extent of a 

low back impairment. The Lumbar Motion Monitor is an innovative sensor worn on the back while 

the patient essentially plays a video game with their back. The sensor tracks the patient's spine 

motion patterns and wirelessly transfers it to our laboratory servers via the loT where it is 

compared to our spine motion databases. This comparison permits us to quantify the patient's 

spine function and document the degree of impairment. This information is sent to the physician 

to assist in diagnosis and clinical decision-making. The test can be repeated after treatments to 

objectively track the effectiveness of the treatments. 

This system is currently used to evaluate spine patients at the OSU Wexner Medical Center and is 

being tested at the Ohio Bureau of Workers' Compensation. This device has reduced costs by 

preventing unnecessary biomedical imaging, has prevented patients from being reinjured by 

mitigating premature return to work, and has prevented unnecessary surgeries. 

The Biodynamic Workplace Spine Model: In the second example, we use advanced sensors and 

biomechanical modeling to prevent spine injuries in the workplace. We can simulate work and 

objectively evaluate occupational risk in our laboratory. Workers perform their job while a variety 

of smart sensors measure how they move, how they activate their muscles, and monitor the forces 

they exert with their hands and feet. This information communicates with our sophisticated 

personalized biomechanical models via the loT. These models allow us to understand the forces 

imposed on the spine tissues during work and help us understand ''how much exposure to specific 

work tasks is too much exposure." Using this approach, we are able to redesign work tasks and 

objectively evaluate the effectiveness of interventions. 

We have used this approach to help numerous companies including Honda, Ford, Toyota, BMW, 

Boeing and many others reduce back disorders. Our work with Honda has been recognized by 

2 
13 


industry experts and Forbes magazine for reducing injuries throughout North America by 70% 

over just a five-year period. A current project with the Ohio Bureau of Workers• Compensation 

has developed occupational pushing and pulling guidelines that will be soon be distributed 

throughout the State via the loT. 

Personalize Biodynamic Model: A final example of our use of technology related to the loT 

involves predicting the outcome of spine surgeries before the surgery takes place. By combining 

loT data from wireless motion, force, and muscle activity sensors with a patient's own biomedical 

imaging data from CT or MRI, we are able to build precise person-specific computational models 

of a patient's spine. These models can be used to better understand the root cause of a patient's 

injuries and to help the surgeon choose the best treatment options. This personalized modeling 

has the potential to improve the current success rate for spinal surgeries. 

In addition, this virtual modeling can be made tangible by simply sending the data to a 3D printer. 

We are able to print exact models of patient spines to help the surgeon better understand the 

patient's specific anatomy and arc exploring the use of this technology to print custom spinal 

implants. 

How is lOT Helping? 

These are just a few of the many examples of how the SRI has been using advanced sensors and 

modeling enabled by the loT to better diagnose, treat and prevent spine injuries. Improvements in 

sensor technology and internet communication have made all of this work possible and are rapidly 

accelerating the pace of research and development. New developments in mobile computing and 

wearable technologies will connect our work in the laboratory with clinicians and patients in ways 

never before possible, while social media and app development make our research applications 

accessible to the masses where it can help the most people. 

Potential "road-blocks" 

Many of these advancements have been made possible through the compilation of massive 

amounts of data regarding the unique aspects of the patient's tissue architecture. However, one of 

the biggest challenges in this work involves getting access to patient infonnation because of patient 

protection laws. While patient identity protections are certainly necessary, they also create 

significant hurdles in attempting to assemble large databases of patient outcomes and hamper the 

effectiveness of machine learning efforts. 

Another significant roadblock is sustainable federal funding for long-term research efforts such as 

these. While I think it is important to acknowledge and thank Members of this committee for their 

support of robust federal funding of research programs in the recently passed FY20 17 Omnibus 

3 
14 


Appropriations bill, I must state that this type of research is enabled by careful, long-term, 

evidence-based, building of a scientific infrastructure. Given the lack of certainty in federal 

research funding in recent years, tbese and future efforts could be in serious jeopardy. 

How Congress Can Help? 

While we have enjoyed great success in our endeavors, the roadblocks just discussed are a 

significant impediment to further advancements. We see two areas where Congress could help 

advantage the impact of the loT as applied to spine research. First, the HIPAA and patient privacy 

laws bureaucratic burden should be considered in light of advancements that will help patients. A 

process that protects patient's rights yet still enables the efficient creation of large biomedical 

databases based upon anonymous patient data would greatly enhance the discovery process. 

Second, these types of scientifically based advancements are only possible through a long-term 

commitment to research. It is not possible to perform independent objective research without 

consistent funding. Inconsistent Federal support for funding this type of research is a major threat, 

both to this type of research and U.S. competiveness globally, and l urge Congress to consider the 

long-term societal health and financial benefits of funding these types of efforts. 

I would like to thank the Committee again for their time and giving me the opportunity to explain 

how our research can reduce and prevent patient pain and suffering, reduce medical costs, and 

reduce costs to industry. 

!look forward to the Committee's questions. 

4 
15 

Mr. LATTA. Well, thank you very much for your testimony. 

And, Dr. Butler, you are recognized for 5 minutes. Thank you. 

STATEMENT OF GARY D. BUTLER 

Dr. BUTLER. Good morning, Chairman Latta, Ranking Member 

Schakowsky, and members of the subcommittee. Thank you for the 

opportunity to testify today. 

My name is Gary Butler and I am the founder and CEO of 

Camgian Microsystems Corporation, a developer of advanced sensing and analytical processing technologies. Camgian, a Starkville, 

Mississippi based high tech company, has been recognized by leading technology analysts such as Gartner for our product innovation 

in the Internet of Things sector. While much of the attention in IoT 

has been focused around consumer applications, our efforts are addressing the commercial market. Sometimes described as the Industrial Internet of Things, this segment of the IoT space represents a new form of intelligent systems that are optimizing the 

dynamic of humans, data, and machines to drive revolutionary 

gains in productivity and efficiency. 

From maximizing asset utilization to improving safety, industrial 

IoT technologies stand to transform business and drive a new wave 

of global economic expansion. 

To address this opportunity, we developed Egburt, an award-winning IoT software platform built in an edge computing model. 

Egburt performs advanced multi-sensor data processing at the network’s edge to enable efficient and scalable IoT operations with economical utilization of communications resources. 

In partnership with our clients, we are developing industrial IoT 

applications built on Egburt in areas related to condition-based 

monitoring and maintenance of remote, high value assets and 

equipment. Based on our experiences in developing and deploying 

such systems, I would like to offer the subcommittee my perspective on the state of industrial IoT and its future. 

At Camgian, we see IoT as a critical technology trend that 

doesn’t merely connect the physical world, but powers it using advanced computing. That is to say, IoT extends the reach of today’s 

software and data processing technologies far beyond traditional 

Internet boundaries and into the physical world around us. This is 

enabled through a system architectural model where industrial assets are imbued with sensing, processing, software, and communications technologies. The result is the generation of critical insights into the operation and maintenance of industrial systems 

that were previously unavailable. 

Today, such insights are driving better and faster decisions and 

delivering enormous economic business and economic advantages to 

companies and organizations worldwide. 

A case study includes our work in condition-based monitoring 

where we are partnered with clients responsible for managing the 

reliable operations of remote industrial assets. Examples include 

large civil infrastructure systems such as locks and dams, and 

power systems for marine operations such as diesel engines and 

generators. In these cases, downtime due to unscheduled maintenance can represent millions of dollars of economic loss. 

16 

To address this problem, we are leveraging Egburt in the development of new applications that will provide operations and maintenance personnel the ability to remotely and efficiently monitor 

the condition of large numbers of industrial assets across their enterprise. Specifically, this includes the remote collection and analytical processing of large volumes of asset sensor data to identify 

failures before they happen, and drive radical improvements in 

operational reliability and safety. 

The potential value of eliminating unscheduled downtime across 

the industrial sector is enormous, but represents only one example 

of the economic power of this technology trend. Similar IoT enabled 

gains in productivity, cost reductions, and worker safety are emerging in other markets and are now driving the technology’s widespread adoption throughout our society in areas such as transportation, manufacturing, oil and gas, healthcare, power distribution, 

and agriculture, to name a few. Management consultant Accenture 

estimates that industrial IoT technologies could add $14.2 trillion 

to the global economy by 2030, including $7.1 trillion to the United 

States. 

Looking ahead, fueling this growth will be new innovations in 

advanced sensor and analytical processing technologies. With billions of industrial sensors deployed today and growing, exploiting 

the untapped value of the massive data sets generated from these 

devices will be the next big leap in IoT’s technology evolution. 

With Egburt, we are tackling this big data challenge through a 

confluence of innovations in real-time signal processing, data analytics, and machine learning with the aim of transforming today’s 

human-centric IoT models into semi-and fully autonomous intelligent systems. This will include automating the data to decision 

continuum, a tipping point in IoT’s evolution that will spark a 

wave of automation, reinventing industrial processes and transforming the future workforce. 

Thank you. And I will look forward to your questions. 

[The prepared statement of Dr. Butler follows:] 

17 


Testimony of Dr. Gary D. Butler to the Subcommittee on Digital Commerce and Consumer Protection 

United States House of Representatives 

Committee on Energy and Commerce 

June 13, 2017 
18 


SUMMARY OF MAJOR POINTS: 

The Industrial Internet of Things (loT) is a key segment of the loT market for business. 

Industrial loT applications represents a new form of intelligent systems that are driving 

revolutionary gains in business productivity and efficiency. 

Camgian's Egburt is an award winning loT platform that is being used for developing applications 

in areas related to condition based monitoring and maintenance of high value industrial assets. 

Industrial loT system architectures include industrial assets imbued with sensing, processing, 

software and communications technologies. 

Insights from industrial loT systems are driving better and faster decisions and delivering 

enormous business and economic advantages to companies and organizations worldwide. 

Camgian and its partners are leveraging Egburt in the development of new applications for 

managing the reliable operations of remote industrial assets such as civil infrastructure and 

marine power generation systems. 

Industrial loT enabled gains in productivity, cost reductions and worker safety are now driving the 

technology's widespread adoption throughout our society including transportation, 

manufacturing, oil and gas, healthcare, power distribution and agriculture to name a few. 

Fueling the future growth of industrial loT will be new innovations in advanced sensor and 

analytical processing technologies to exploit the untapped value of data from billions of new 

sensors. 

With Egburt, Camgian is tackling loT's big data challenge through a confluence of innovations in 

real-time signal processing, data analytics and machine learning with the aim of transforming 

today's human centric loT models into semi- and fully-autonomous, intelligent systems. 

The United States is positioned to take the lead role as innovator and provider of industrial loT 

technologies to the global economy. 

2 
19 


WRITTEN TESTIMONY: 

Good morning. Chairman Latta, ranking member Schakowsky, and members of the Subcommittee, thank 

you for the opportunity to testify today. My name is Gary Butler and I am the founder and CEO of Camgian 

Microsystems Corporation, a developer of advanced sensing and analytical processing technologies. 

Camgian, a Starkville, Mississippi based high tech company, has been recognized by leading technology 

analysts such as Gartner for our product innovation in the Internet of Things (loT) sector. 

While much of the attention in loT has been focused around consumer applications, our efforts are 

addressing the commercial market. Sometimes described as the Industrial Internet of Things, this 

segment of the loT space represents a new form of intelligent systems that are optimizing the dynamic of 

humans, data and machines to drive revolutionary gains in productivity and efficiency. From maximizing 

asset utilization to improving safety, industrial loT technologies stand to transform business and drive a 

new wave of global economic expansion. 

To address this opportunity, we developed Egburt, an award-winning loT software platform built on an 

edge computing model. Egburt performs advanced multi-sensor data processing at the network's edge 

to enable efficient and scalable loT operations with economical utilization of communications resources. 

In partnership with our clients, we are developing industrial loT applications built on Egburt in areas 

related to condition based monitoring and maintenance of remote high value assets and equipment. 

Based on our experiences in developing and deploying such systems, I would like to offer the 

Subcommittee my perspective on the state of industrial loT and its future. 

At Camgian, we see loT as a critical technology trend that doesn't merely connect the physical world, but 

powers it using advanced computing. That is to say, loT extends the reach of today's software and data 

processing technologies far beyond traditional Internet boundaries and into the physical world around us. 

This is enabled through a system architectural model where industrial assets are imbued with sensing, 

3 
20 


processing, software and communications technologies. The result is the generation of critical insights 

into the operation and maintenance of industrial systems that were previously unavailable. Today, such 

insights are driving better and faster decisions and delivering enormous business and economic 

advantages to companies and organizations worldwide. 

A case study includes our work in condition based monitoring where we are partnered with clients 

responsible for managing the reliable operations of remote industrial assets. Examples include large civil 

infrastructure systems such as locks and dams and power systems for marine operations such as diesel 

engines and generators. In these cases, downtime due to unscheduled maintenance can represent 

millions of dollars of economic loss. 

To address this problem, we are leveraging Egburt in the development of new applications that will 

provide operations and maintenance personnel the ability to remotely and efficiently monitor the 

condition of large numbers of industrial assets across their enterprise. Specifically, this includes the 

remote collection and analytical processing of large volumes of asset sensor data to identify failures 

before they happen and drive radical improvements in operational reliability and safety. 

The potential value of eliminating unscheduled downtime across the industrial sector is enormous, but 

represents only one example of the economic power of this technology trend. Similar loT enabled gains 

in productivity, cost reductions and worker safety are emerging in other industries and are now driving 

the technology's widespread adoption throughout our society in areas such as transportation, 

manufacturing, oil and gas, healthcare, power distribution and agriculture to name a few. Management 

consultant Accenture estimates that industrial loT technologies could add $14.2 trillion to the global 

economy by 2030 including $7.1 trillion for the United States1

• 

Looking ahead, fueling this growth will be new innovations in advanced sensor and analytical processing 

technologies. With billions of industrial sensors deployed today and growing, exploiting the untapped 

value of the massive data sets generated from these devices will be the next big leap in loT's technology 

4 
21 


evolution. With Egburt, we are tackling this big data challenge through a confluence of innovations in 

real-time signal processing, data analytics and machine learning with the aim of transforming today's 

human centric loT models into semi- and fully-autonomous, intelligent systems. This will include 

automating the data to decision continuum, a tipping point in loT's evolution that will spark a wave of 

automation, re-inventing industrial processes and transforming the future workforce. 

As with earlier generations of the Internet, the United States is poised to take the lead role as innovator 

and provider of industrial loT technologies to the global economy. Compared to previous emerging 

technology sectors, the potential financial implications of loT are unprecedented. As such, I would urge 

members to promote the growth of industrial loT through expanded federal research funding, adoption 

within federal agencies and the creation of a friendly regulatory environment. 

Thank you and I look forward to your questions. 

REFERENCES: 

1. Winning with the Industrial Internet of Things: How to accelerate the journey to productivity and 

growth, Accenture 2015. 

5 
22 

Mr. LATTA. Well, thank you for your testimony. 

Mr. Kuhns, you are now recognized for 5 minutes. Thank you. 

STATEMENT OF WILLIAM KUHNS 

Mr. KUHNS. Thank you, Chairman Latta, and Ranking Member 

Schakowsky, and the rest of the committee for inviting us to share 

our perspective. 

I am Bill Kuhns, President and Co-Founder of Vermont Energy 

Control Systems in Vermont. We are a small company and started 

based on an observation that may seem fairly mundane: most 

things don’t work the way they are supposed to. In fact, every 

building we have been in we found out that the systems in that 

building may have been designed well, but they don’t work well. 

And there is an enormous amount of energy, an enormous amount 

of value that is lost from systems just not working the way they 

are supposed to. 

So part of our mission is to provide an open-source, non-proprietary solution that allows people to instrument and understand 

what is happening in the buildings and the systems that they own. 

In pursuit of that, I would like to start by echoing the comments 

of Daniel Castro from the 2015 IoT event: Congress must avoid 

heavy-handed regulations that can stifle innovation. This is an 

area where innovation is really happening at a breakneck pace. 

Just as with the early Internet, there is a lot of chaos. The potential benefits are enormous, but it is not clear exactly what is going 

to happen. It is important that we allow the evolution of this technology to proceed with as few barriers and impediments as possible. 

As a small business owner, I am very much aware of the challenges that small businesses face. According to the Bureau of Labor 

Statistics, the percentage of people employed by small businesses 

in the country has been in decline for decades, and the rate of 

small business start-ups has been in decline for more than 10 

years. This is a problem in the IoT space because small businesses 

are much more able to move quickly and be agile and take advantage of opportunities. 

Every regulation, however well-intentioned, adds to the costs and 

risks of starting a business. Even more critically, it distracts the 

entrepreneur from focusing on the purpose of the business. You 

can’t be innovating when you are filling out regulatory paperwork. 

This might be an expense for a big company, but it can be lethal 

for a small business. 

I would like to give you just a simple example from my own experience. This is more on the economic side than on the IoT technology side. But this month we wanted to hire a part-time college 

intern this summer from the University of Vermont. We discovered 

that in Vermont, even though this would be our first actual payroll 

employee we have to have workers’ compensation insurance. For a 

big company in our industry, that might add 1 or 2 percent to payroll. For us, it added more than 10 percent to our payroll costs. And 

even more importantly, it took a day and a half of my time to figure out how to comply with that regulation. 

As we launch our IoT products, we have plenty of technology 

challenges and security challenges, other things we need to focus 

23 

on. It is important that regulatory compliance does not add another 

layer of costs, delays, and uncertainty. 

A second issue that I want to touch on briefly is radio frequency 

spectrum. We are particularly interested in low frequencies that 

penetrate building structure. And these frequencies don’t support 

high data rates. They are not useful for cell phones and that sort 

of thing, but they work very well through structures, through 

walls, and trees. In the U.S. there is only a small band available, 

and those frequencies are different from what is in use in the rest 

of the world. That means that if you buy a sensor that is built in 

Europe it won’t work in the United States. And it means that ours 

won’t work there. 

It would be helpful to free up additional low-frequency spectrum 

for low-power devices. It would be crippling to sell rights to specific 

frequency bands at auction, as has been done in other auctions of 

the frequency spectrum. Bandwidth is a finite public resource. Selling it to the highest bidder effectively shuts out small businesses. 

Finally, I would like to touch on security. There has been some 

very good points made on security. And it is particularly near and 

dear to our hearts. 

There was a significant breach accomplished recently through a 

compromised building management system installed by one of our 

competitors. As a manufacturer in that space, that got our attention. We are very sensitive to that issue. And every connected device is a risk; if you can connect to it, so can an intruder. 

Physically, I live in a very safe area. I live on a dead-end road 

in Vermont and it is wonderful. On the internet I live in a highcrime district. We see literally hundreds of probes and connection 

attempts every day. It is exactly like having masked men coming 

around my house and trying to open the doors and windows. We 

are doing all we can to make sure the doors and windows are 

locked, but it is obvious to me there is no way we can continue to 

have new and innovative products without also introducing new 

vulnerabilities. We need to figure out a more effective strategy for 

protective measures, deterrents, and law enforcement in this area. 

And with that, I am done. Thank you very much. 

[The prepared statement of Mr. Kuhns follows:] 

24 


I'd like to start by echoing the comments of Daniel Castro from the 2015 lOT event: Congress must avoid 

heavy-handed regulations that could stifle innovation. This is an area where innovation is happening at a 

breakneck pace. Just as with the early Internet, there's a lot of chaos. The potential benefits are enormous. It's 

important that we allow the evolution of this technology to proceed with as few barriers and impediments as 

possible. 

As a small business owner, I'm acutely aware of the challenges that small businesses face. According to the 

Bureau of Labor Statistics, the percentage of people employed by small businesses in this country has been in 

decline for decades and the rate of small business startups has been in decline for more than ten years. This is 

a problem in the lOT space because small businesses are much better able to move quickly and embrace new 

ideas. 

Every regulation, however well-intentioned, adds to the costs and risks of starting a business. Even more 

critically, it distracts the entrepreneur from focusing on the purpose of the business. You can't be innovating 

while you're filling out regulatory compliance paperwork. This is an expense for a big company, but it can be 

lethal for a small business. 

Just a simple example from this month. We wanted to hire a part-time college intern this summer. In Vermont, 

we have to have worker's compensation insurance. For a big company in our industry, that might add one or 

two percent to your payroll costs. For us, it was almost two days of my time, and over 10% of our payroll. 

As we launch our lOT products, we have plenty of challenges on the technical side. It's important that 

regulatory compliance does not add another layer of costs, delays, and uncertainty. 

A second issue is radio frequency spectrum. We're particularly interested in lower frequencies. They don't 

support high data rates, but they work better through walls and trees. In the US, there's only a small band 

available, and those frequencies are different from what's in use in the rest of the world. It would be helpful to 

free up additional low-frequency spectrum for low-power devices. It would be crippling to sell rights to more 

specific bands at auction. Bandwidth is a finite public resource, and selling it to the highest bidder effectively 

shuts out small businesses. 

Finally, I'd like to touch on security. A significant breach was accomplished recently through a compromised 

building management system. As a manufacturer in that space, we're very sensitive to this issue. Every 

connected device is a risk if you can connect to it. so can an intruder. Physically, I live in a very safe area. On 

the Internet, I live in a high-crime district. We see literally hundreds of probes and connection attempts every 

day. It's exactly like having masked men coming around my house and trying to open the doors and windows. 

We're doing all we can to make sure the doors and windows are locked, but It's obvious to me that there's no 

way we can continue to have new and innovative products without also introducing new vulnerabilities. We 

need to figure out a more effective strategy for protective measures, deterrents, and law enforcement in this 

area. 
25 

Mr. LATTA. Well, thank you very much for your testimony today. 

And, Mr. Javdani, you are recognized for 5 minutes. Thank you 

very much for being with us today. 

STATEMENT OF CAMERON JAVDANI 

Mr. JAVDANI. Thank you, Mr. Chairman, Ranking Member Schakowsky. 

I am delighted to appear before the committee today to discuss 

the successes and challenges that Louroe Electronics has experienced with IoT technologies in the security and surveillance industry. We are proud to be an American manufacturer of audio technologies for security systems, and have products used in almost 60 

countries today. Since our founding 1979, our technology has 

evolved from standalone analog devices to a current portfolio of integrated network-connected devices and sensors. 

The benefits of IoT technologies in security applications are numerous. Primarily, networked devices allow security officers to 

monitor larger geographic areas and take advantage of economies 

of scale to reduce the operating costs of a security system. This design allows for faster identification of a security incident, faster response times to a security incident, and the ability to send relevant 

information and evidence to the appropriate authorities in near 

real time. 

Technology growth within the security and surveillance industry 

is largely focused on the analytic capability of a system. Very few 

surveillance devices are monitored in real time, which means that 

IoT devices are data sensors, and not surveillance equipment as 

they are more conventionally thought of. 

The analysis of this data, which is an automated process, will 

alert security officers and staff in the event of an incident. Louroe 

technologies, including vocal aggression detection and gunshot detection, look for certain acoustic patterns that represent security 

threats. Used alongside other networked security technologies, this 

type of system provides for optimization of security resources, as it 

no longer becomes necessary for staff to monitor all areas at all 

times. 

As IoT technologies continue their adoption in the security industry, there are certain risks that present themselves. Unauthorized 

access to data, either stored on recorders or being sent over a network, present challenges to be sure that Americans’ privacy expectations are met. Certain basic security practices, especially in the 

consumer market, can be taken to make sure that unauthorized access is restricted or does entirely not take place. Most notably, it 

is recommended that users of IoT devices, security or otherwise, 

add a password to their devices or change the default username 

and password that comes pre-loaded on an IoT device. 

Without taking appropriate precautions, consumers put themselves at risk of their privacy being violated. Online Web sites and 

communities exist where non-password protected cameras, or cameras that still use factory default login credentials, are streamed 

live over the Internet for anyone to see. Certain malware and viruses scan networks for IoT devices that accept these default credentials, and then compromise these devices for use in large scale 

denial of service attacks. 

26 

Despite these risks, the adoption of IoT devices in the security 

industry continues to accelerate. For Louroe Electronics there are 

two key areas of success I wish to point out for the committee. 

First, since late 2011 we have worked closely with the U.S. Commercial Service within the Department of Commerce to export our 

technology. Thanks to the work of trade administration officials in 

American embassies, and especially the work of the West Los Angeles Export Assistance Center, we have more than doubled the 

number of countries we have exported to. In 2015, we were honored 

to receive the President’s E Award for Export Achievement, the 

highest recognition a U.S. entity may receive for export activity. 

This is an achievement that could not have become reality without 

our partnership from the Commercial Service. 

Second, we have made advantageous use of free trade agreements for international market access. For a small business in 

America, the removal of trade barriers creates new opportunities to 

reach new customers with more affordable products. As the current 

administration has stated their intention to review our trade policies, I urge the Congress to ensure that any change to trade agreements preserves that market access, and that supply chains for 

American small businesses be maintained. Any change that restricts either will reduce exports and increase product prices to the 

detriment of American manufacturers. However, an opportunity exists to update agreements to address IoT industries and technologies, many of which did not exist when the agreements were 

enacted. 

Mr. Chairman, thank you for the invitation to appear today before the committee. I look forward to answering your questions and 

the committee’s questions on IoT opportunities and challenges. 

Thank you. 

[The prepared statement of Mr. Javdani follows:] 

27 


Cameron Javdani 

Lou roe Electronics 

June 13, 2017- Hearing entitled "Disrupter Series: Update on lOT Opportunities and Challenges" 

Subcommittee on Digital Commerce and Consumer Protection 

Summary of Key Points: 

1. lOT technologies in security and surveillance systems reduce operating costs and improve 

security threat identification and response times. 

2. Security technologies and increasingly data driven. Automated analysis of this data reduces the 

workload of security staff. 

3. The risks of compromised lOT devices include, but are not limited to, data theft, data loss, 

violations of privacy, and loss of the device. 

4. Growth opportunities exist for American companies providing lOT technologies in the security 

industry, especially through exports. Trade agreements can be modernized to address lOT 

technologies and industries. 

Written Testimony: 

Thank you, Mr. Chairman, Ranking Member Schakowsky. I am delighted to appear before the 

committee today to discuss the successes and challenges that Lou roe Electronics has experienced with 

loT technologies in the security and surveillance industry. We are proud to be an American 

manufacturer of audio technologies for security systems and have products used in almost 60 countries 

today. Since our founding in 1979, our technology has evolved from standalone analog devices to a 

current portfolio of integrated network connected devices and sensors. 

The benefits of loT technologies in security applications are numerous. Primarily, networked devices 

allow security officials to monitor larger geographic areas and take advantage of economies of scale to 
28 


reduce the operating costs of their security system. This design allows for faster identification of a 

security incident, faster response times to a security incident, and the ability to send relevant 

information and evidence to the appropriate authorities in near real time. 

Technology growth within the security and surveillance industry is largely focused on the analytic 

capability of a system. Very few security devices are monitored in real time, which means that loT 

devices are data sensors, and not surveillance equipment as they are more conventionally thought of. 

The analysis of this data will alert security officers and staff in the event of an incident. Lou roe 

technologies including vocal aggression detection and gunshot detection look for certain acoustic 

patterns that represent security threats. Used alongside other networked security technologies, this 

type of system provides for optimization of security resources as it no longer becomes necessary for 

staff to monitor all areas at all times. 

As loT technologies continue their adoption in the security industry, there are certain risks that present 

themselves. Unauthorized access to data- either stored on recorders or being sent over a network 

presents challenges to be sure that Americans' privacy expectations are met. Certain basic security 

practices, especially in the consumer market, can be taken to make sure that unauthorized access does 

not take place. Most notably, it is recommended that users of loT devices, security or otherwise, ought 

to add a password to their devices or change the default username and password that comes pre-loaded 

on an loT device. 

Without taking appropriate precautions, consumers put themselves at risk of their privacy being 

violated. Online websites and communities exist where non-password protected surveillance cameras, 

or cameras that still use factory default login credentials, are streamed live over the internet for anyone 
29 


to see. Certain malware and viruses scan networks for loT devices that accept default credentials, and 

then use these devices to conduct large scale denial of service attacks. 

Despite these risks, the adoption of loT devices in the security industry continues to accelerate. For 

Lou roe Electronics there are two key areas of success I would like to point out for the committee. 

First, since late 2011 we have worked closely with the with the US Commercial Service within the 

Department of Commerce to export our technology. Thanks to the work of trade administration officials 

in American embassies, and especially the work of the West Los Angeles Export Assistance Center, we 

have more than doubled the number of countries we have exported to. In 2015 we were honored to 

receive the Presidents E Award for Export Achievement, the highest recognition a US entity may receive 

for export activity. This is an achievement that could not have become reality without our partnership 

with the Commercial Service. 

Second, we have made advantageous use of free trade agreements for international market access. For 

a small business in America, the removal of trade barriers creates new opportunities to reach new 

customers with more affordable products. As the current administration has stated their intention to 

review our trade policies, I urge the congress to ensure that any change to trade agreements preserves 

that market access and that supply chains for American small business be maintained. Any change that 

restricts either will reduce exports and increase product prices to the detriment of American 

manufacturers. However, an opportunity exists to update agreements to address loT industries and 

technologies, many of which did not exist when the agreements were enacted. 
30 


Our export success has been recognized by SIA, the Security Industry Association, a trade association of 

which Lou roe is a long-standing member. SIA recently chartered an International Relations Committee 

to deepen industry ties abroad and facilitate exports for American companies. Due in no small part to 

our success with exports, this committee will be chaired by Lou roe's CEO Richard Brent. 

Lou roe's long term strategy of innovation and manufacturing optimization includes an ongoing 

partnership with CMTC, California Manufacturing Technology Consulting. In affiliation with the National 

Institute of Standards and Technology and the Manufacturing Extension Partnership, CMTC has aided 

Lou roe in implementing a product development roadmap and improving our competitiveness. These 

positive contributions have supported the company's growth and long-term outlook. 

Mr. Chairman, thank you for the invitation to appear today before the committee. \look forward to 

answering your and the committee's questions on loT opportunities and challenges. 
31 

Mr. LATTA. And, again, thank you for your testimony. 

And, Dr. Bachman, you are now recognized for 5 minutes for 

your statement. 

STATEMENT OF MARK BACHMAN 

Dr. BACHMAN. Chairman Latta, Ranking Member Schakowsky, 

and committee members, thank you for inviting me today to share 

some thoughts and insights on the opportunities and challenges in 

the Internet of Things. I would especially like to thank Representative Mimi Walters, who represents the University of California 

Irvine in California’s 45th Congressional District, for support of UC 

Irvine. 

For this testimony, I am representing two organizations, the University of California Irvine and Integrate Devices. UC Irvine is a 

world class premier research university, the Orange County campus of the University of California system. UC Irvine promotes IoT 

through research, education, outreach, and tech transfer. Integra 

Devices is a spinout company from UC Irvine that develops smart 

sensing modules for IoT, utilizing unique intellectual property for 

advanced manufacturing, machine learning, and energy harvesting. 

My testimony describes my experiences and perspectives regarding some challenges and solutions for IoT. I can only briefly discuss 

these topics now, but I provide more information in my written testimony that covers overview of IoT, the role of the public university 

in leadership and stimulation of the local IoT economy, and the 

spinning out of my IoT start-up. 

This testimony comes from my direct experience in these topics. 

As a professor and IoT Evangelist, I spent many years studying 

IoT, working with researchers and companies to implement technology for IoT applications. As an entrepreneur, I have brought 

technology out of the university to convert it into commercially viable goods and services. 

The Internet of Things promises to bring dramatic changes to the 

way we do things in our world, bringing large quantities of new 

data and insights about industrial processes and operations, enabling us to do business with greater productivity, efficiency, and 

safety than ever before. There are expected to be 50 billion connected monitoring devices deployed by 2025. And using sophisticated analysis of data from thousands of monitoring units in the 

industrial and civil infrastructure, we can better understand the 

complexities of our operations and identify ways to improve the 

way we do things. 

Most of these improvements will have significant economic benefit. The resulting combined economic impact of IoT is predicted to 

be between $4 to 11 trillion by 2025. Industry and manufacturing, 

transportation, and civil infrastructure represent the largest markets. Home automation and consumer products, while significant, 

represent the smallest of the IoT markets. 

Universities such as UC Irvine have the potential to be a powerful catalyst in leading the effort towards next generation IoT. Research and development in areas such as basic sciences, information sciences, social sciences, and business lead directly to insights, 

technologies, and methodologies that can drive IoT applications, 

services, and products. In Orange County, California, UC Irvine 

32 

provides leadership for our IoT ecosystem through research, training, public outreach, and the stimulation of enterprise. 

UC Irvine provides a common ground for companies, Government, and the public to work together on IoT topics. Several organizations on the UC Irvine campus are active in promoting and 

stimulating the IoT economy in Orange County. These include the 

California Institute for Telecommunications and Information Technology, Calit2, and the UCI Applied Innovation Institute. Calit2 

works with industry and campus researchers across disciplines to 

convert basic research results into technology that is practical and 

of value to industry. UCI Applied Innovation brings campus-based 

inventions and entrepreneurship together with Orange County’s vibrant business community to support job creation and economic 

growth. 

My own company, Integra Devices, is producing IoT products 

based on technology that was developed at UC Irvine over the last 

15 years. We produce highly integrated, wireless smart-sensing 

modules that can be used to monitor industrial and infrastructure 

operations. Our sensing devices are fully self-contained, requiring 

no additional hardware, can be placed on machinery and infrastructure, and can analyze their activity in real time, extracting 

the key features of the signal to send to the cloud. Our devices can 

learn the patterns of machinery, and within a few hours can identify the natural state of machinery and report when it deviates 

from normal behavior, providing key information for predictive 

maintenance and operations. 

Many of our devices can run under zero power conditions, meaning that they do not need to be cabled and they do not need to have 

batteries replaced. This is highly advanced technology that requires 

new manufacturing methods to build our devices. The key manufacturing for our devices is done in the United States. 

Most of the research leading to these products was done at UC 

Irvine. Some of our current development is funded by the National 

Science Foundation. Integra Devices has benefitted greatly from research performed at the University and continues to partner with 

UC Irvine and other public institutions to develop new IoT technologies and applications, and train the next generation of IoT 

leaders. 

Having worked in both public academia and the private sector, 

I am convinced that a strong public-private partnership will stimulate the next generation of technologies, business practices, applications and services, and small companies for IoT, ensuring that the 

United States retains leadership in IoT over the coming years. I 

have worked with and presented to colleagues, business leaders, 

Government agencies, and entrepreneurs in the technology industry in Europe, Asia, and the Americas. The significant degree of cooperation between our public institutions and universities is the 

envy of the world and widely regarded as one of our key advantages for bringing innovative technologies, practices, and enterprises to the market. 

The Internet of Things is probably the most significant tech market of the 21st Century, and is one that the United States can lead, 

if we are committed to doing so. 

Thank you. 

33 

[The prepared statement of Dr. Bachman follows:] 


Testimony before the House of Representatives Committee on Energy and Commerce 

Sub-Committee on Digital Commerce and Consumer Protection (1151

h Congress) 

Disrupter Series: Update on lOT Opportunities and Challenges 

June 13, 2017 10:00 AM, 2123 Rayburn 

Written testimony by: Mark Bachman, Ph.D. 

ChiefTechnology Officer, Integra Devices LLC 

loT Evangelist, California Institute for Telecommunications and Information Technology, UC Irvine 

(Calit2-lrvine) 
34 


------ ---------------------

INE::::GRA DEVICES UCI IT2 ln':..tltute 

for Tc>h.:-:·')tnmiJ'lJc:<'lt:or.s 

'lfld SYSTEMS BEYOND SiliCON 

Chairman Latta, Ranking Member Schakowsky, and Committee members: Thank you for inviting me 

today to share some thoughts and insights on the opportunities and challenges in the Internet of Things 

(loT). I would especially like to thank Representative Mimi Walters, who represents UC Irvine in 

California's 45th Congressional district for her support of UCI. For this testimony, I am representing two 

organizations, the University of California Irvine (UCI) and Integra Devices LLC. UCI is a world class 

premier public research university, the Orange County campus in the University of California system. UCI 

promotes loT through research, education, outreach and tech transfer. Integra Devices is a spinout 

company from UCI that develops smart sensing modules for loT, utilizing unique intellectual property for 

advanced manufacturing, machine learning, and energy harvesting, 

My testimony describes my experiences and perspectives regarding the challenges and solutions for the 

Internet of Things (loT). I shall briefly discuss three topics: (1) overview of loT, (2) the role of the public 

university in leadership and stimulation of the local loT ecosystem, {3) spinning out a startup for loT. 

This testimony comes from my direct experiences in these topics. As a professor and loT Evangelist, I 

have spent many years studying loT, working with researchers and companies to implement technology 

for loT applications. As entrepreneur, I have brought technology out of the university to convert it into 

goods and services. 

loT promises to bring dramatic changes to the way we do things in industry, bringing large quantities of 

new data and insights to industrial processes, enabling us to do operations with greater productivity, 

efficiency, and safety than ever before. There are expected to be 50 billion connected monitoring 

devices deployed by 2025. Using sophisticated analysis of data from thousands of monitoring units in 

the industrial and civil infrastructure, we can better understand the complexities of our operations and 
35 


identify ways to improve the way we do industry. The resulting combined economic impact of loT is 

predicted to be between 4-11 Trillion USD by 2025. Industry (manufacturing), transportation, and civil 

infrastructure ("smart cities") are the largest impacted markets; home automation and human 

wearables, while significant, represent the smallest of the loT markets. [1]. 

Universities such as UC Irvine have the potential to be a powerful catalyst in leading the effort towards 

next generation loT. Research and development in areas such as basic sciences, information sciences, 

social sciences, and business lead directly to practical technologies and methodologies that can drive loT 

applications, services, and products. In Orange County CA, UC Irvine provides leadership for the loT 

ecosystem in OC, through research, training, public outreach, and investment. UC Irvine provides a 

common ground for companies, government, and the public to work together on loT topics. Several 

organizations on the UCI campus are active in promoting and stimulating loT in Orange County. These 

include the California Institute for Telecommunications and Information Technology (Calit2-lrvine) and 

the UCI Applied Innovation Institute. Calit2-lrvine works with industry and campus researchers across 

disciplines to convert basic research results into technology that is practical and of value to industry. UCI 

Applied Innovation brings campus-based inventions and entrepreneurship together with Orange 

County's vibrant business community to support job creation and economic growth. 

My own startup company, Integra Devices, is producing loT products based on technology that was 

developed at UC Irvine over the past 15 years. We produce highly integrated, wireless smart sensing 

devices that can be used to monitor industrial and infrastructure operations. Our sensing devices are 

fully self-contained (requiring no additional hardware), can be placed on machinery and infrastructure, 

and can analyze activity in real time, extracting the key features of the signal to send to the cloud. 

Moreover, our devices learn the patterns of machinery, and within a few hours can identify the natural 

state of machinery and report when it deviates from "normal" behavior, providing key information for 
36 


predictive maintenance and operations. Many of our devices can run under "zero power" conditions, 

meaning that they do not need to be cabled and do not need to have batteries replaced. Most of the 

research leading to these products was done at UC Irvine. Some of current development is funded by 

the National Science Foundation. Integra Devices has benefitted greatly from research performed at the 

University and continues to partner with UCI and other public institutions to develop new loT 

technologies and applications, and train the next generation of loT leaders. 

Having worked in both public academia and the private sector, I am convinced that a strong publicprivate partnership will stimulate the next generation of technologies, business practices, applications, 

services, and small companies for loT, ensuring that the US retains leadership in loT over the coming 

years. loT is probably the most significant tech market of the 21" century and it is one that the U.S. can 

lead, if we commit to doing so. 

[1] Market predictions are taken from this source: "Unlocking the potential of the Internet of Things". By 

James Manyika, Michael Chui, Peter Bisson, Jonathan Woetzel, Richard Dobbs, Jacques Bughin, and Dan 

Aharon, McKinsey Global Institute Report, June 2015. http://www.mckinsey.com/businessfu ncti on s/ dig ita 1-mcki n sey I our-insights/the-internet -of-things-th e-va I u e-of -digitizing-the-p hys i ca 1-worl d 

I. The promise and technology challenges of loT 

loT is the rapidly growing trend to monitor our physical world using installed electronic computing 

devices that send their data to the internet for analysis and tracking. In 2013 the Global Standards 

Initiative on Internet of Things (loT-GSI) defined the loT as "a global infrastructure for the information 
37 


society, enabling advanced services by interconnecting (physical and virtual) things based on existing 

and evolving interoperable information and communication technologies." 

Data collected from installed devices can be used to perform sophisticated analysis or modeling, 

resulting in smart operational or business practices that bring value to stakeholders. Analysis of data will 

drive decisions for predictive maintenance, operations optimization, improved efficiency, and greater 

safety. All of these improvements to current practices promise to bring significant economic benefit, 

with estimates ranging between 4-11 Trillion USD by 2025 [1]. 

A typical loT architecture consists of three main sectors: the "edge", telecommunications "backbone", 

and "cloud". All of these represent opportunities for new businesses, products, and services. At the 

physical edge are small electronic units consisting primarily of sensors (and in some cases, actuators) 

that monitor physical things. These edge devices quantify information about the things they monitor, 

then send this data to the internet via wired or wireless infrastructure (the backbone). The data is 

transported across the telecommunications backbone to server farms, often referred to as the cloud. 

Here the data is analyzed to determine correlations, build models, provide visualizations, and produce 

recommended improvements or changes to machinery or operations. 

In the first generation of loT (the next five years), most of the data will travel one way, primarily starting 

from the sensors in the edge devices and ending at the cloud. Results from cloud analysis will be used to 

modify operations or business practices, but will rarely be used for real-time control of machinery or 

operations. As loT matures, some data will flow back to provide guidance to machinery, and eventually 

may even be used to provide remote control of some operations. For example, today's smart cars can 

report car sensor data and GPS coordinates to a remote cloud service. As cars continue to develop, the 

cloud will send data back to the cars to improve their function, such as recommending driving routes, 

identifying nearest gas stations, or setting alarms for maintenance. Ultimately, smart cars may be 
38 


directed from the cloud in their operations, including driving and optimal use of vehicle resources. The 

final scenario, where machines are controlled by the cloud, will take significant time to develop and face 

significant resistance from decision makers and consumers. Security and integrity of data is one of the 

greatest concerns the public has for loT, and decision-makers are reluctant to allow cloud control of 

critical or dangerous operations. Nevertheless, the value for loT, even in its simplest, first generation 

form, is already dramatically large. 

All three components of the loT architecture (edge, backbone, and cloud) will benefit from and drive 

developments in technology and business practices. Edge devices must be produced at low cost, small 

size, with a high degree of integration. This is driving the microelectronics industry to develop advanced 

manufacturing processes that can build everything in a simple small module, including transducers, 

electronics, memory, computing, power, and telemetry. The industry is tackling this through a 

technology called "heterogeneous integration" which promises to produce "system in a package," 

allowing for next generation loT edge products. Other developments for loT edge products include 

advanced algorithms for sensors and low power techniques for driving sensors and telemetry. 

The telecommunications backbone must likewise upgrade and develop technology to support the wide 

variety of data and the exponential increase in traffic that will result from loT. loT is one of the drivers of 

"5G", the emerging wireless standard that promises to increase wireless bandwidth by more than 100 

times current capability. Communications technology will rely more and more on wireless connectivity 

over cabled (copper or optical). This is especially true in developing regions, which do not have sufficient 

infrastructure to support cabled systems such as fiber, but which can support wireless backhaul much 

more easily. 

Cloud offerings will develop very powerful, yet easy to use, software products for analyzing and 

reporting on large, complex datasets. Ways to integrate data harvesting and analytics into conventional 
39 


enterprise systems must be developed, as well and ways to share data. In addition, cloud services will 

need to educate an entire generation about advanced analytics and how to understand it. 

There are many market verticals for loT, and different analysts. Most analysts identify the following 

markets: Manufacturing, Smart cities, Transportation, Environment, Retail, Health, and Home/Office. In 

general, by 2025, the largest sector is manufacturing (1.4-4.6 T USD), followed by Cities (0.9-1.7 T), 

Transportation (0.8-1.6 T), Retail (0.4-1.1 T), Health (0.2-1.6 T) and Home/Office (0.3-0.5 T) [1]. 

The loT movement faces multiple challenges overall, in addition to specific challenges within each 

component. Challenges to adoption include high cost of entry, large barrier to implementation, and 

unclear value proposition to end users. Concerns about security, privacy and information integrity are 

also major concerns. 

II. The leadership role of the university in the loT ecosystem 

loT will drive the development of new business paradigms and new technologies; this is both an 

opportunity and a challenge. Because it is new, loT brings a number of inherent challenges to adoption, 

especially for small innovative companies wishing to bring new loT products or services to markets. 

Public entities such as research universities have the opportunity to accelerate economic activity in loT. I 

point to UC Irvine (UCI) as a specific example of a California public university that is helping to stimulate 

the local loT ecosystem in Orange County, CA. 

UCI engages in four key activities that serve to stimulate Orange County's loT ecosystem: (1) Research 

and development, (2) Education and training, (3) Public outreach, and (4) Business/investment 

promotion. These efforts demonstrate UCI's commitment to economic development in Southern 

California and leadership in loT. 
40 


Research and development. UCI provides advanced research in areas related to loT through its many 

schools and institutes on campus. Research is performed in the schools of engineering, information and 

computer science, physical sciences, biological sciences, social sciences, medicine, business, etc. Much 

of this research provides key findings or technologies that have immediate impact to companies 

developing products and services for loT. The university actively engages in cross-disciplinary research 

activity, which is of critical importance to emerging loT applications and technologies, and difficult to do 

in the commercial sector, especially for small companies. UCI is a member university of the DoE's Enable 

Clean Energy Smart Manufacturing Innovation Institute (CESMII) which promotes smart manufacturing 

to become the driving, sustainable engine that delivers real-time business improvements in U.S. 

manufacturing. Calit2-lrinve's R&D efforts are advancing loT and mixed reality technologies to empower 

the "smart connected worker" to transform and increase the value of America's manufacturing labor 

force. UCI actively patents much of its research and these inventions are made available to local 

companies and entrepreneurs. As a wellspring of advanced research and technology, the university 

plays a powerful role in providing the raw materials needed for loT companies. 

Education and training. As a premier educational institution, UCI partners with local industry to educate 

the next generation of innovators and leaders for Southern California. UCIIeads the nation in providing 

students a pathway to success, regardless of their backgrounds or financial status. The New York Times' 

College Access Index rates UCI first among U.S. universities based on UCI's commitment to economic 

diversity, doing the most to helping students achieve the "American Dream". UCI is a Hispanic-serving 

institution (one-quarter of undergraduates identify as Latino), as well as an Asian American and Native 

American Pacific Islander-serving institution, demonstrating UCI's ongoing dedication to access, 

diversity, and excellence. In addition, UCI provides numerous training and educational programs for 

working professionals in the areas of technology, engineering, and business to help prepare the 

workforce for loT opportunities. 
41 


Public outreach. UCI is committed to working with the Southern California community in building loT 

opportunities. UCI organizes numerous workshops, conferences, panels, and symposia to bring Southern 

California innovators together, stimulating new ideas, new relationships, and new ventures. In addition, 

the California Institute for Telecommunications and Information Technology (Calit2-lrvine), which is 

located on the UCI campus, helps bring disparate interdisciplinary activities and companies to loT 

challenges, provides significant services in assisting local companies to learn more about loT, connect 

with other loT companies, or prototype new loT technologies. 

Business and investment promotion. UCI assists in the creation of new business entities to drive the loT 

economy. Several institutes on the UCI campus are actively involved in assisting young companies, 

especially UCI spinouts, to attract people, resources, and funding. Calit2-lrvine, UCI's Applied Innovation 

Institute, and the Beall Center of Innovation all provide significant mentoring and incubation programs 

for companies. Several resources are available on campus to encourage students to participate in new 

ventures, including the UCI ANTrepreneur Center. UCI works with many local incubators, industry trade 

groups, and investor groups to assist in building an innovation-friendly ecosystem for loT startups. One 

example acceleration program is the Wayfinder program, part of the Institute for Applied Innovation. 

Wayfinder is a program for UCI-affiliated startups that is designed to accelerate venture development by 

providing teams with space, strategic guidance, and other valuable support resources. Several loT 

startups have recently spun out of UCI, including Integra Devices (smart edge devices and SG systems), 

Flyspan (drone fleet management), FunBand (loT for child safety), and HyperSight (loT for sales and 

marketing). UCI is aggressive in bringing its significant patent portfolio to the public, and provides 

startup-friendly terms for licensing these properties. 

Ill. Integra Devices, a UCI spinout that develops smart edge products 
42 


My own startup company, Integra Devices, spun out of UCI about 18 months ago. Integra Devices is 

currently leveraging three major innovations that were developed at UC Irvine: (1) advanced 

manufacturing techniques for building highly integrated, smart sensor modules, (2) machine learning 

algorithms that can determine the key features of sensor signals and learn the time varying pattern of 

those signals, and (3) low to zero power sensor technologies, enabling the production of remote sensors 

that require no power cables and no batteries. 

Integra Devices builds self-contained, smart edge monitoring devices that can be installed on machinery 

or infrastructure in industrial, civil, transportation, and environmental applications. These devices use 

on-board artificial intelligence (machine learning) to learn the "normal" patterns of the machinery that 

they are monitoring. The edge devices report the key features of the patterns to the cloud for further 

analysis or monitoring, instead of transmitting raw data. By performing this analysis at the edge, Integra 

enables deployment of sensing systems that have dramatically lower bandwidths over conventional 

sensors and can readily scale to hundreds or thousands of monitors in a single application. In addition, 

some of Integra's sensing modules can be installed without then need for power cables or batteries 

since they use techniques to monitor and transmit data that don't require on-board power. One such 

"zero power" technology, dynamic energy harvesting, is currently being developed under funding by the 

National Science Foundation. 

Integra Devices was founded by a UCI professor and two tech industry veterans who live in Orange 

County. The startup company has exclusively licensed two key patents from the University with many 

more in the pipeline. The company has grown to a team of 10 people, employs former UCI students, and 

trains UCI student interns. We build highly integrated micro-electronic products using proprietary 

manufacturing techniques that we share with our US-based manufacturing partners, bringing advanced 

manufacturing to the U.S. We are working closely with a number of key strategic partners (large 
43 


companies) who view our technology as highly innovative and having high value. Integra Devices is a 

perfect example of how a high risk, highly innovative company can be launched with the support and 

partnership of the university and as a result of the U.S. government investment in advanced research. 

Having worked in both public academia and the private sector, I am convinced that a strong publicprivate partnership is needed to stimulate the next generation of technologies, business practices, 

applications, services, and small companies for loT, ensuring that the U.S. retains leadership in loT over 

the coming years. I have worked with colleagues, business leaders, government agencies, and 

entrepreneurs in the technology industry in Europe, Asia and the Americas; the significant degree of 

cooperation between our public institutions and universities is the envy of the world, and widely 

recognized as one of our key advantages for bringing innovative technologies, practices and enterprises 

to market. loT is probably the most significant tech market of the 21" century and it is one that the U.S. 

can lead, if we commit to doing so. 
44 

Mr. LATTA. Thank you very much for your testimony. 

Mr. Kosak, you are recognized for 5 minutes. Thank you for 

being with us. 

STATEMENT OF PETER B. KOSAK 

Mr. KOSAK. Thank you. Good morning, everyone. My name is 

Peter Kosak. And I am Executive Director of Urban Active Solutions and Maven at General Motors. 

I thank you, Chairman Latta, Ranking Member Schakowsky, and 

distinguished members of the subcommittee for the opportunity to 

speak to you today about the new initiatives that General Motors 

has to address changing mobility needs of consumers. 

At GM, disruptive technology developments are unlocking access 

and efficiencies in transportation, resulting in new and improved 

services. I highlight three today. The first is embedded connectivity 

in vehicles. The second is app-based access, and control for consumers. And third, and lastly, data science is enabling efficiency in 

operating systems and services. 

Twenty years ago, recognizing the value and potential of embedded connectivity, General Motors pioneered automotive telematics 

with the creation of OnStar. 

When I first learned about OnSTar back in 1995, I couldn’t imagine the potential of embedded connectivity, although I certainly 

could understand the benefits of safety notifications and a call center that could download directions and destinations to my in-car 

navigation system. It has been fascinating to watch subsequent 

connectivity developments, especially in safety, such as GM working with doctors and first responders to understand how crash telemetry data can prepare first responders for crash events. 

Leveraging the foundation of OnStar and other key technologies, 

General Motors is extending its core business into transportation 

as a service, where embedded connectivity, app-based access, and 

data science are transformative. We have created a new brand 

called Maven, an innovation leveraging GM’s leadership in automotive connectivity. Now in 17 cities, Maven is a platform for ondemand mobility, offering multiple vehicle-sharing products for 

consumers and businesses, such as Maven City, Maven Home, and 

Maven Gig. 

The Maven City and Maven Home car-sharing platforms, which 

launched in February 2016, offer a wide range of vehicles that are 

distributed where people live and work for shared-use. In 15 cities, 

members can rent vehicles by the hour, by the day, week, or 

month. Insurance, fuel, and maintenance are included in rental. 

The entire service, in the entire service your phone is your key fob. 

It’s an entirely keyless experience. 

Maven removes the need to own and keep a car for those who 

cannot own a car or choose not to own a car. And we have also seen 

that the service serves as a mobility alternative or option for current vehicle owners. 

Seventy-five percent of Maven members are Millennials, a hardto-reach target segment for auto makers. Members have driven 

over 350,000 hours nationally, 50,000 in DC, and 50,000 in Chicago, 28,000 hours in LA, launched last October. 

45 

Building on Maven Home and City, we launched an on-demand 

leasing program for rideshare drivers in March 2016, which 

evolved into what we now call Maven Gig. Maven Gig is an enabler 

for the sharing economy. We provide Gig drivers with access to vehicles on a weekly rental basis for as long as they want to work 

for an app-based ridesharing or delivery company like Lyft, 

Instacart, and Grubhub. 

With Maven Gig, a driver can carry commuters in the morning 

and the evening, make deliveries during mid-morning and afternoon, and deliver lunches and dinners at mealtime, while having 

access to a car or crossover for their personal use. Since it’s launch, 

Gig drivers have logged over 140 million miles, providing rides for 

over 17 million customers. In mid-February, we began deploying 

the Chevrolet Bolt Electric Vehicle into San Francisco ridesharing 

applications, starting with 25. We are now up to 80 in San Francisco and San Diego. 

The efficient, flexible Chevy Bolt is uniquely capable for ridesharing, offering 238 miles of all-electric range and DC fast-charge 

capability. In less than four months, we have logged over 550,000 

miles, enabled by over 5,000 DC fast-charge events, and carrying 

over 50,000 riders. Bolt EV drivers are averaging about 130 miles 

a day, which is about four times that of private vehicle owners. Ten 

percent of total days driven among all drivers are over 240 miles, 

making it clear that charging and range limits are not issues. 

Bolt EVs are yielding unprecedented carbon-free miles per vehicle while increasing public exposure to EVs, demonstrating that ondemand ridesharing drivers will use EVs, and while building a 

compelling business case for public charging. 

At the same time, Maven is building new partnerships with 

charging providers and electric utilities. Maven’s Bolt EV deployment provides operational learning and a sound foundation for the 

next step: the creation of autonomous vehicle systems based on 

EVs for ridesharing. 

In fact, General Motors announced this morning the production 

of our next generation of Bolt EV/AV test vehicles at our Orion assembly plant in Michigan. While Maven Home, City, and Gig are 

new, in-market ways for consumers to access automobiles for personal use or as a means to generate income, autonomous or selfdriving technology promises opportunities to make urban, chaotic 

urban environments safely manageable. Maven can seamlessly integrate with mass transit as a coordinated first/last-mile solution, 

and fill gaps between taxis and mass transit systems via dynamic 

shuttles. 

In summary, business model and technology innovations promise 

to transform mobility, affording greater access and improved quality of life for cities. Embedded connectivity, app-based access, and 

data science will yield safer and more robust transportation systems, with more modality and options. GM is making investments 

in connectivity, IT, electrification, and autonomous technologies to 

maintain its leadership position as we all, collectively, drive towards this exciting future. 

Thank you for the opportunity to speak to you today. I will be 

happy to answer questions during testimony. 

[The prepared statement of Mr. Kosak follows:] 

46 


Statement to U.S. House Energy and Commerce Committee 

Subcommittee on Digital Commerce and Consumer Protection 

Peter B. Kosak 

Executive Director, Urban Active Solutions 

General Motors Company 

June 13, 2017 

Disrupter Series: Update on loT Opportunities and Challenges 
47 


Good morning. My name is Peter Kosak, and I am Executive Director of Urban Active 

Solutions at General Motors. 

Thank you Chairman Latta, Ranking Member Schakowsky and distinguished members 

of the Subcommittee for the opportunity to speak to you today about the new initiatives 

by General Motors to address the changing mobility needs of our customers. 

At GM, disruptive technology developments are unlocking access and efficiencies with 

regards to transportation, resulting in new and improved services. I highlight three 

today. One is embedded connectivity in vehicles and devices; another one is app-based 

information, access, and control for consumers; and, lastly, data science that is enabling 

efficiency in operating systems and services. 

Twenty years ago, recognizing the value of and potential for embedded connectivity, 

General Motors pioneered automotive telematics with the founding of OnStar. 

When I first learned about OnStar back in 1995, I couldn't imagine the potential of 

embedded connectivity- although I certainly understood the benefits of safety 

notifications and a call center that could upload directions and destinations to my 

dashboard navigation system. 

2 
48 


It has been fascinating watching subsequent connectivity developments- especially in 

safety, such as GM working with doctors to understand how crash telemetry data can 

help prepare arriving first responders. 

Since introduction in 1996, OnStar has responded to over 1.5 billion customer requests, 

from automatic crash response and stolen-vehicle recovery, to remote door unlock, 

vehicle diagnostics and more. GM now has 12 million OnStar-connected vehicles on 

four continents. 

Leveraging the foundation of OnStar and other key technologies, General Motors is 

extending its core business into the transportation-as-a-service space- where 

embedded connectivity, app-based access, and data science are transformative. 

We've created a new brand called Maven- an innovation leveraging GM's leadership in 

automotive connectivity. Now in 17 cities, Maven is a platform for on-demand mobility, 

offering multiple car-sharing products for consumers and businesses, such as Maven 

City, Maven Home and Maven Gig. 

The Maven City and Home car-sharing platforms, which were launched in February 

2016, offer a range of vehicles that are distributed where people live and work for 

shared-use. In 15 cities, members can 'rent' vehicles by the hour, day, week, or month. 

Insurance, fuel, and maintenance are included in rental. The entire service experience 

is keyless: your phone is your key. 

3 
49 


Maven removes the need to own and keep a car for those who cannot or choose not to 

own. We've also seen that it serves as a mobility alternative for current vehicle owners. 

Nationally, 75% of Maven Members are Millennials- a hard-to-reach and important 

consumer group. Across the U.S., over 350,000 hours have been driven, with 

approximately 50,000 hours driven in Washington, DC, and Chicago. In Los Angeles, 

which was recently launched, drivers have logged approximately 28,000 hours. 

Building upon Maven Home and City, we launched an on-demand leasing program for 

rideshare drivers in March 2016, which evolved into what we now call Maven Gig. 

Maven Gig is an enabler for the sharing economy. We provide Gig drivers access to 

vehicles on a weekly rental basis for those who want to work for an app-based 

ridesharing or delivery company like Lyft, lnstacart, and Grubhub. 

Maven provides drivers with a great deal of flexibility to enter and exit the program- all 

with access to new or low mileage vehicles they may not have otherwise been able to 

access. 

With Maven Gig, a driver can carry commuters in the morning and evening, make 

deliveries mid-morning and mid-afternoon, and deliver lunches and dinners at 

mealtimes- while having access to a car or crossover for personal use. 

4 
50 


Since its launch, Maven Gig drivers have logged over 140 million miles, providing rides 

for over 17 million customers. In mid-February, we began deploying Chevrolet Bolt 

Electric Vehicles (EVs) into San Francisco ride-sharing applications- starting with 25. 

We're now up to over 80 in San Francisco and San Diego. 

The efficient, flexible Chevrolet Bolt EV is uniquely capable, offering 238 miles of allelectric range and DC fast-charge capability. In less than four months, we've logged 

over 550,000 miles enabled by over 5,000 fast-charge events and carrying over 50,000 

riders. Bolt EV drivers are averaging about 130 miles per day, which is about four times 

that of private vehicle miles driven per day. Ten percent of total days driven among all 

drivers is over 240 miles -making clear that charging and range limits are not issues. 

Beyond fueling greater urban mobility and ridesharing access, Maven Bolt EVs are 

yielding unprecedented carbon free miles per vehicle; increasing public exposure to 

electric vehicles; demonstrating that on-demand ride-sharing drivers will use EVs; and 

building a compelling business case for public charging. At the same time, Maven is 

building new partnerships with charging providers and electric utilities. Maven's Bolt EV 

deployment provides operational learning and a solid foundation for the next step- Bolt 

EV-based autonomous ride-sharing. 

Maven Gig and our Bolt EV deployment offer affordable, accessible and integrated 

mobility options for multiple communities. 

5 
51 


While Maven Home, City, and Gig are new, in-market ways for consumers to access 

automobiles for personal use or as a means to generate income, autonomous or selfdriving technology promises opportunities to make chaotic urban environments safely 

manageable. The self-driving technology can improve ridesharing system efficiency and 

reduces traffic congestion. It also seamlessly integrates with mass transit as 

coordinated first/last mile solutions; and, fills gaps between taxis and mass transit via 

dynamic shuttles. 

When combined with active safety technology, the rapid advances in connectivity are 

also providing the foundation for automated vehicles that make driving safer and easier. 

To unlock the potential of autonomous vehicle and system capabilities as soon as 

possible, GM acquired Cruise Automation in San Francisco and has an aggressive 

autonomous vehicle development program underway. Using the Chevy Bolt EV as a 

natural base platform, autonomous development and testing is now underway on public 

roads in San Francisco, CA; Scottsdale, AZ; and Warren MI. The cars feature LIDAR, 

cameras, sensors and other hardware as components of a safe and reliable fully 

autonomous vehicle. 

GM is mass-producing fully electric autonomous test vehicles in Michigan. These 

vehicles will join the 50 test vehicles already deployed in San Francisco, Scottsdale and 

Warren, MI. GM is testing these self-driving cars and collecting and analyzing real-world 

data, ensuring our autonomous vehicles meet the company's strict safety and quality 

standards. 

6 
52 


In summary, business model and technology innovations promise to transform mobility, 

affording greater access and improved quality of life in cities. Embedded connectivity, 

app-based access, and data science will yield safer and more robust transportation 

systems, with more modality options. 

GM is making investments in connectivity, IT, electrification, and autonomous 

technologies to maintain its leadership position as we all, collectively, drive towards this 

exciting future. 

7 
53 

Mr. LATTA. Well, thank you very much for your testimony this 

morning. And that will conclude our statements, opening statements from our witnesses this morning. 

And we will begin with the questions now from the members. 

And I will recognize myself for 5 minutes. 

Dr. Marras, if I could start with my first question to you. In your 

testimony you mentioned that you work with Honda and have been 

recognized by industry experts and Forbes magazine for reducing 

injuries by 70 percent over a 5-year period. Will you speak to how 

IoT enabled you to address this issue and see how, and also to see 

the results so quickly? 

Dr. MARRAS. Yes. The IoT allows us to really leverage massive 

amounts of information. And so we are able to really streamline. 

We could do the testing of the various tasks that were causing the 

problems; we could communicate with our computers back at the 

lab; we could transmit that information back to the people at 

Honda and they could correct these situations very efficiently. So 

the IoT has just enabled us to greatly accelerate and leverage the 

analysis procedures that we typically do. 

Thank you for your question. 

Mr. LATTA. If I just may follow up. When we were over at the 

IoT event, you had different disks on your display showing how 

monitors were set up to actually see how an individual—could you 

maybe walk through that, especially with how workers’ compensation, how you were able to help them to look at those workplace 

injuries that a worker might have? 

Dr. MARRAS. Yes. So one of the, I think you are probably talking 

about our push/pull models—— 

Mr. LATTA. Right. 

Dr. MARRAS [continuing]. That we have been developing. And we 

have known for a long time that lifting is a risk. And we have been 

able to convince industry to control the exposure to lifting so they 

are not injuring workers. 

But what is happening is now people are piling thousands of 

pounds of load on carts and having to push them around and don’t 

understand much about those risks. So we have developed a system 

where we could look at how the body responds as potentially workers are pushing and pulling under different conditions. And we are 

trying to look inside the body to understand exactly how the disks 

are responding and figuring out exactly when the worker is exposed to too much stress, given that task. 

And then we note that, the forces that are in hand, which is 

something you can measure in industry, and that becomes the 

limit. So we are using the Internet of Things to distribute this information through apps and through the Web site all around the 

State, and really all around the country, so people can control their 

workplaces given this information. 

Mr. LATTA. Thank you very much. 

Dr. MARRAS. Thank you. 

Mr. LATTA. Ms. Kosak, if I could turn to you. 

As our vehicles become more connected there is a greater opportunity for the bad actors out there to potentially attack a vehicle. 

Would you discuss what GM and the industry are doing to ensure 

the vehicles are safe from cyber threats and other attacks? 

54 

Mr. KOSAK. Sure. You know, I think that really our work in this 

area dates back to the inception of OnStar that I mentioned in my 

opening statement. OnStar has been embedded connectivity and 

the ability to get information out of the vehicle and control the vehicle. It became an app-based service as well in 2010 when we introduced RemoteLink. 

So, we have a long history with working with embedded 

connectivity. And I, I think that there are three things that have 

evolved since we started. The first is that the team responsible for 

that area has continued to grow, both in size and in capability. And 

our area in Maven we now have three individuals from our chief 

product security officer embedded with our team, working with the 

IT and product teams to ensure that, secondly, and maybe most importantly, cybersecurity is designed into these systems. 

So it is not worked into systems afterward. It really is designed 

in from the outset, with very clear objectives and requirements. 

And then another important area, I think, is sharing information. So, with the Auto ISAC where our chief products security officer is a chairperson on that auto body which shares best practices 

and learnings in this area. I think this is one area everyone agrees 

is so important that you need to share information. There are not 

competitive advantages to be had that we need to share information when attacks occur and they are thwarted, letting other auto 

makers know what kind of attack there was and how it was 

thwarted. 

So, I think the team growth, I think that designing in cybersecurity protection and sharing information carefully, not just within 

the auto industry but with the defense industry and the aerospace 

industry where also, you know, there has been a lot of great work 

done as well. I think these are the three, three areas that make 

me confident that we are addressing what is a fast-changing landscape. 

Mr. LATTA. Well, thank you very much. And my time has expired. 

And the Chair will recognize the gentlelady from Illinois, the 

ranking member of the subcommittee, for 5 minutes. 

Ms. SCHAKOWSKY. Thank you. 

Dr. Marras, I was very interested in your testimony. I have spinal stenosis, and so at some point I may be a consumer of what 

you have been studying and producing. But it sounded to me like 

you were saying that the need for security of private information 

is somehow a barrier to aggregating that information. Did you say 

that? 

Dr. MARRAS. The models that we have in our data to pinpoint 

where the issues are, are predicated on the fact that we can identify what abnormal tissue stressors are within the spine. And so, 

in order to understand abnormal, you have to understand normal. 

And everybody is different. 

And so, one of the things that is unique to our work is we are 

able to build massive databases of what, how the spine responds. 

Ms. SCHAKOWSKY. Right. But can’t you just remove the individual information? 

Dr. MARRAS. Yes, we can. But and that is what we are trying to 

do. But that is becoming quite a barrier. 

55 

For example, some of the studies we have done, it has taken us 

3 years to get by the IRB, just because of the tight restrictions in 

the IRB regulations. So it is a lot more difficult than it sounds, but 

it is not easy to compile this type of information. And you would 

think it would be very easy to just strip away the name and keep 

everything else, but it is not. There are still a lot of barriers to 

doing that. 

Ms. SCHAKOWSKY. Thank you. 

So, Mr. Kosak, I introduced a bill last week called the HOT 

CARS Act. And you talked about how life can be made easier and 

better with IoT and how GM is doing that. It was one of the most 

disturbing events I have ever had, because it was parents, loving 

parents, responsible parents who, as human beings, made a tragic 

mistake and forgot their children sleeping in the backs of their 

cars. Eight hundred children since 1990 have died from heat stroke 

in the back of cars. 

And it seems to me with all the bells and whistles that are on 

our automobiles right now that there has to be a way—and I think 

GM is an innovator here—in making sure that that doesn’t happen, 

that these are preventable, and that we have the technologies, or 

at least they are available, for us to develop to make sure that this 

never, ever happens. 

Can you comment on that? 

Mr. KOSAK. Well, I think the emotion in your voice is justified. 

I mean, I can think of nothing more, you know, grave or senseless 

than the issue that you are describing. 

I think sensing issues, any issue and being creative, I think that 

is what innovation is all about; it is about sensing a problem and 

finding solutions. For that particular case, General Motors has developed a technology that is on many models now that will continue to roll out which senses at the beginning of a trip when either of the rear doors is opened for any reason, and then at the 

completion of that trip simply reminds the driver to check the rear 

seat area to make sure that there is nothing back there, most importantly a child. 

So these kinds of reminders can be very important. And I think 

these kinds of things are increasingly important because people are 

leading such chaotic lifestyles and they are so distracted. And I 

think that is the, that is the most heart-wrenching part in the stories that, you know, you are describing where people were just harried doing things, probably, you know, running around doing things 

for their children, and that is when things can happen. 

Ms. SCHAKOWSKY. So, my legislation would require in all new 

cars that there be this kind of technology. And, you know, my car 

reminds me if I have left my keys in the car. And it seems to me 

that something as important as a child in the car and saving a life 

would be so incredibly important. 

And I would just like to say to my chairman that I am hoping 

that we can explore, explore that. You know, there are not that 

many pieces of legislation that are a matter of life and death and 

give us the opportunity to save lives, and so I would hope that our 

committee can look at that so that this would be standard in automobiles going forward. 

And I yield back my time. 

56 

Mr. LATTA. Thank you very much. The gentlelady yields back the 

balance of her time. 

The Chair now recognizes the gentleman from Mississippi, the 

vice chairman of the subcommittee, for 5 minutes. 

Mr. HARPER. Thank you, Mr. Chairman. And what an incredible 

group of witnesses and excitement that we sense and see where we 

are going on this. 

And so, Dr. Butler, welcome. We are glad to have you here. And 

what year did you start Camgian? 

Dr. BUTLER. Two thousand six. 

Mr. HARPER. OK, 2006. And we are now 2017. Did you envision 

the progress that you would have made to this point when you talk 

about where we are today with the IoT? 

Dr. BUTLER. I didn’t. I think we are making great strides in the 

United States in advancing this technology. I think the opportunity 

for the United States is significant, both domestically in terms of 

operational savings and productivity, but also as a business that 

we can propagate to the rest of the world. 

Mr. HARPER. Let’s talk a minute about what is an important 

issue and ongoing almost crisis, and that is our aging infrastructure that we have in this country. I know the President was in, I 

believe, Ohio recently. And your company, Camgian, along with 

Egburt, your technology that you have, tell us a little bit more 

about how that is impacting, particularly the Markland Lock and 

Dam on Ohio River and what you see as this technology to help us 

with that aging infrastructure. 

Dr. BUTLER. Sure. Our software has been built to provide enterprise with monitoring applications. So, for example, it is very flexible in terms of integrating advanced industrial sensors and then 

also integrating the sensor processing and analytics associated with 

that data. So, we can build very scalable products that can extend 

out to this type of infrastructure. 

Now, when considering the aging infrastructure problem, one of 

the problems that we have in the United States today, a lot of 

these large, critical systems were built more than 50 years ago 

with a 50-year lifespan. So what we are seeing now is that the unscheduled maintenance of these systems is rapidly increasing. 

So, in addition to new innovations in terms of repairs and refurbishment, concrete and steel, it is our thesis that data can bring 

a lot to that market by making these systems intelligent, by imbuing these systems with sensors and communications and analytics 

technologies, can provide both engineers and operations personnel 

real time, valuable insights into the structure health and operational conditions of these systems over time. And so they can use 

that information to make better decisions about how to address 

these problems before they become failures. 

A system like the Markland Lock and Dam, for example, if that 

system goes down it is millions of dollars of economic impact to the 

local economy per day. So it is very important that these systems 

maintain significant up time in their operations. 

Mr. HARPER. And then this, and these sensors and this information that is gathered realtime, it allows you to know when there 

is perhaps a crisis, perhaps a problem that needs immediate conVerDate Mar 15 2010 11:09 Apr 04, 2018 Jkt 037690 PO 00000 Frm 00060 Fmt 6633 Sfmt 6633 I:\115THCONGRESS\115X39IOTUPDATEASKOK040218\115X39IOTUPDATEPDFMADE W
57 

cern and helps them stay on a better maintenance schedule, I assume? 

Dr. BUTLER. That is correct. That is correct. 

Mr. HARPER. You know, you also stated that the industrial Internet of Things applications certainly are driving some amazing revolutionary gains in businesses. So what you are doing there is 

through the Army Corps, U.S. Army Corps of Engineers there at 

Markland. But talk about what you think we are going to see or 

what we should look for as how this really benefits businesses on 

what you’re doing. 

Dr. BUTLER. Sure. I think that same model, when it comes to improving down time and reducing failures in mechanical systems, it 

applies an extrapolates across a number of industrial markets 

today. That includes areas like manufacturing. It also includes 

areas like agriculture. It includes areas like transportation, 

healthcare, energy for example. Any of these industries that rely on 

equipment to drive their business model, these types of efficiency 

gains are enormous in terms of significantly reducing any down 

time in those systems; and also, the aspect of security and safety 

with the failure of these types of systems. 

So the type of work that we are doing with the Corps of Engineers today I think also applies across the industrial industry or 

industrial market and sector in general, and not only applies, obviously, to domestic problems that we are addressing here in the 

United States, but also around the globe. 

Mr. HARPER. So, when we are looking at this, particularly how 

we make sure the Congress doesn’t get in the way, what, do you 

have any, any thoughts as to what we can do to help as we develop 

the industrial IoT? 

Dr. BUTLER. Yes. Good, good question. I—— 

Mr. HARPER. This is your chance to give us advice. 

Dr. BUTLER. Sure. I think, you know, Dr. Bachman said a moment ago that this is the most significant technology trend of the 

21st Century. And I agree with him on that, on that matter. 

This could be an enormous job creator for the United States in 

the sense that the value that can be extracted from industrial IoT 

technologies is enormous across industries, as we, as we have 

heard. So, as it relates to what the Federal Government can do, I 

think really three things: 

Number one is to lay out a national strategy for IoT that is focused on becoming the leader in the world; number two, serving as 

a catalyst to start this market. That has been done previously with 

the Internet, with DoD and the ARPANET. I think we need to do 

the same thing in the industrial IoT. And I think smart infrastructure is a great place to start. Because if we can build and deploy 

systems in that market, that will extrapolate to other markets and 

help us grow, again, both domestically and internationally. 

And if you think about job creation, if I were to, as a high-tech 

company executive, if I think about scaling my business to jobs 

that that would create—our product engineering jobs, jobs for electrical engineers, jobs for mechanical engineers, jobs for industrial 

engineers, computer sciences, service jobs—so there are lots of jobs 

that can be created here. And we can service the world with these 

types of technologies if we decide to take the lead in the market. 

58 

Mr. HARPER. Dr. Butler, I hate to cut you off but I am way over 

on my time. 

Dr. BUTLER. Oh, sorry. 

Mr. HARPER. But thank you so much. Very informative. And with 

that, I yield back. 

Dr. BUTLER. Thank you. 

Mr. LATTA. Thank you very much. The gentleman’s time has expired. 

And the Chair now recognizes the gentlelady from Michigan for 

5 minutes. 

Mrs. DINGELL. Thank you, Mr. Chairman. 

This is an important hearing, a subject that is near and dear to 

me. The Internet of Things is revolutionizing the way we live our 

everyday lives by offering both companies and consumers a wide 

array of benefits. We are especially, and as you have seen in the 

discussion today, the benefits have increased connectivity. We are 

seeing it in the transportation sector in all the ways that we have 

been discussing this morning. 

In my home State of Michigan we are watching the auto industry 

turn into the mobility industry. And this transformation is being 

driven by the development of connected and automated vehicles. So 

I am very pleased that the committee is continuing to focus on this. 

Before I ask my questions, which I won’t have enough time to do 

it, I want to support what my colleague from Illinois, Jan Schakowsky, was talking about in the technology for the HOT CAR 

bills. I am going to be co-sponsoring it with her. And would say to 

all of you we even need to be looking at technology further. That 

is one way. But wouldn’t it even be better if we talked to child seat 

makers about putting technology in the child seat? 

So, I want to commit to work with you, and already started on 

that. So that is how, what we are talking about today, how can innovation make a difference. 

But let me quickly go to General Motors, Mr. Peter Kosak. Your 

testimony talks about GM’s investment in Maven, a ridesharing 

service. It is my understanding that Maven Gig is doing great work 

with ridesharing applications. How transformative will Maven be? 

And where will we see the greatest benefits ultimately down the 

road? 

Mr. KOSAK. Yes, that is a great question. I guess my answer 

would touch on a number of issue and opportunity areas. 

Maven is a platform, and as a sharing platform the objective is 

to have a set of assets that are better utilized, more efficiently utilized overall. And, you know, we are thinking a lot about under 

served communities and serving persons with disabilities, and a variety of different situations where there isn’t sufficient service 

today. 

And you could even imagine, though, a rural environment where 

you have harried parents, you know, frantic to get their kids to 

after school activities, and the need to get elderly to, you know, 

mid-morning doctors’ appointments or out to do errands, or serving 

persons with disabilities. And through the Internet of Things and 

by providing ridesharing services, by linking these things together 

you can get complementary sources of demand, satisfied by a 

shared-use platform that then in the end is economically viable, 

59 

that can serve a number of different cases that it would be difficult 

to justify a service for alone but that now can be integrated. 

And you could even imagine entrepreneurs who have a small 

fleet of autonomous vehicles in their community serving all these 

different use cases. So, I think that the ridesharing platform that 

we have in the form of Maven is foundational to provide for autonomous insertion and for the better utilization of automotive assets 

against a whole variety of use cases, not individually but in combination. 

Mrs. DINGELL. In your testimony you also discuss Maven Gig’s 

deployment of full electric Chevrolet Bolt vehicles in San Francisco 

and San Diego for ridesharing applications. I am concerned if many 

people buy EVs as we would like to see. And I think that everybody 

would like to see it. 

The Chevrolet Bolt EV is the first commercially available mass 

market affordable electric car. How will your deployment of the 

Bolt in ridesharing applications like Maven Gig help lay the 

groundwork for both the deployment of self-driving, but perhaps 

also increase down the road people’s confidence in EVs? 

Mr. KOSAK. Yes, I mean I think the answer is very directly. In 

this application in California, as I mentioned earlier, the number 

of miles covered in these vehicles on average is four times what 

personally owned EVs are covering. And so it is really pushing the 

limit. 

Really there is a chicken and egg problem right now with electric 

vehicles and with charging infrastructure. No one wants to put 

charging infrastructure place until people by EVs, and people don’t 

want to buy EVs until there is electrical charging infrastructure in 

place. And with this deployment we are pushing the boundary. We 

are going to charging station installers and electric utilities. We are 

demonstrating the level of demand that you can generate with a 

ridesharing service. That is an incentive for them to put in place 

charging infrastructure. And then I think privately owned vehicles 

will, will sort of draft in behind that. 

I also think it is a highly visible application of EVs. You know, 

the drivers can’t believe how much they are able to drive. And they 

are able to get 160 miles of charge in just an hour with a charger. 

So we have a lot of cases where people are getting into the back 

of these cars during ridesharing and they are saying, ‘‘What is 

this?’’ And it gets this dialog going around just how capable and 

cool EVs can be. 

So, I think by from both a visibility perspective and then also 

from driving and infrastructure installation perspective it is having 

a direct impact. 

Mrs. DINGELL. Thank you. 

Thank you, Mr. Chairman. 

Mr. LATTA. Thank you very much. The lady’s time has expired. 

The Chair now recognizes the gentleman from Texas, the former 

chair of the subcommittee, for 5 minutes. 

Mr. BURGESS. Thank you, Mr. Chairman, and thank you for having this hearing today. 

Before I get started with my questions I just want to acknowledge the participation of constituents from the district, the good 

60 

folks at Network Thermostat, who participated in our Internet of 

Things Showcase downstairs. 

And, Mr. Chairman, I also have to say I had occasion to be up 

very early this morning and you have had staff who were on the 

job getting things ready at a very early hour. So, congratulations 

to you on motivating your highly efficient staff to be so attentive. 

Dr. Marras, I wasn’t going to ask you this but now I have been 

provoked by one of Ms. Schakowsky’s questions on the issue of data 

collection and data sharing. And this was a big part of another bill 

that this, not this subcommittee but this committee did, called 

Cures for the 21st Century. And this is a way we deal with data 

and the interoperability of data. And you have touched on that in 

your testimony. In fact, I really like the fact that you laid out enumerating how can Congress help with what you have identified as 

a problem. 

So you spoke to it a little bit when you answered Ms. 

Schakowsky’s questions of difficulties you run up against with the 

institutional review boards and data collection, but could you just 

expound upon that a little bit? 

Dr. MARRAS. Yes. Thank you for the question. 

It is very, it is very difficult to get through the burden of the layers and layers and layers and layers of protection that are involved 

with patient data. Now, I fully agree we need patient data. And I 

always thought it was a whole lot easier than what it is to get 

through this to build these databases that we really need to understand spine disorders. 

But, like I said, it has taken us a matter of years to get access 

to the data we need because of the way the laws are set up. 

Mr. BURGESS. So, you are building a database of biometrics and 

biomechanics that could be enormously useful for people who are 

studying in this field, and a database that probably hasn’t existed 

before you put pen to paper to try to create it. And I am sure there 

are other applications in other areas of medicine. But it, it is difficult. 

And I think we, you know, again when we worked on the Cures 

bill we identified some of those difficulties. But it is so massively 

important that the people who are able to accumulate and categorize and the encyclopedia that you build off of biomechanics is 

going to inform future physicians and scientists in a way that is 

almost unimaginable now. 

Dr. MARRAS. Exactly. And, you know, I agree totally with the 

spirit of the law. But the way it is, the way it works and to gain 

access to the data you need to build our databases is just extremely 

burdensome. And as we all know, funding for these types of studies 

is extremely tight. And one has to jump through many, many, 

many, many hurdles in order to get access to the data that we really need. It is not impossible, but it’s just—— 

Mr. BURGESS. Right. 

Dr. MARRAS [continuing]. Extremely difficult. 

Mr. BURGESS. I am glad that there are bright people such as 

yourself that are working on this because the future generations 

will thank you. 

Mr. Kuhns, I just wanted to, first off, acknowledge in your testimony, your written testimony, acknowledge the amount of chaos 

61 

that is in this environment. So that can be a positive thing. And 

some of us live with more or less amounts of chaos in their lives. 

And chaos can be a driving factor in creativity. 

One of the things I really liked about your testimony is you referenced the 2015 hearing that we had on this, on this same subject. 

And I just wanted to take a moment and quote the last concluding 

thought from my opening statement that morning. ‘‘In our examination of privacy and security issues, it is important that we balance these concerns with the creativity and innovation driving this 

market forward. Too much potential for economic progress and consumer welfare is at stake to act without a full appreciation for 

what this market can offer.’’ 

Those words were true 2 years ago; they are true still today. So 

I thank you for reminding me how, the important work that we are 

doing. 

And then, finally, Mr. Kosak, on the issue of the child in the hot 

car. I do want to encourage you. When I first learned about OnStar 

many, many years ago that was one of the first things that crossed 

my mind: here is a technology that if it could detect a life form in 

the car, whether it be a child or a pet or an elderly person who was 

left in the car that now is achieving a temperature that is incompatible with future existence, that something ought to happen, and 

somebody ought to be notified, and either the horn honk, or the 

windows come down or the lights flash. So I have always felt that 

that is something that is technologically within our grasp. 

So, I am grateful that your scientists are working on it. I think 

it is important. And I just don’t recall a problem occurring in the 

1950s and ’60s. Maybe it did and we just weren’t aware of it because it wasn’t reported. Or maybe there is something different 

about the technology we have in our vehicles now that make our 

children more susceptible to this type of accident. 

But I am grateful that you are working on it. I think it is an important concept, and one that really just begs for a solution. And 

now to listen to your thoughts on that. 

Mr. KOSAK. Well, thank you very much for the comment. I agree. 

I mean I think that is a good example where you can demonstrate 

the power of connectivity and then communicating important 

things. 

We have been using, you know, passenger-side occupant sensors 

for some time for not only sensing an airbag, sensing an occupant 

to make sure that seatbelts are worn or to relate to the airbag system itself to judge the size of the occupant and all of that. So, I 

think that identifying these issues and then using the power of 

technology to solve problems is something that we are thinking 

about every day. 

Mr. BURGESS. Thank you, Mr. Chairman. I yield back. 

Mr. LATTA. Thank you very much. The gentleman’s time has expired. 

The Chair now recognizes the gentleman from California for 5 

minutes. 

Mr. CA ́ RDENAS. Thank you very much, Chairman and Ranking 

Member, for having this hearing. 

Mr. Javdani, as you mentioned in your testimony, Louroe Electronics has partnered with the U.S. Commercial Service. Louroe 

62 

has been recognized by the U.S. Department of Commerce, and you 

have also worked with American embassies to bring American 

products to other countries. How has Government investment affected Louroe Electronics’ ability to grow? 

Mr. JAVDANI. Thank you, Congressman. There are a number of 

programs that we take advantage of with Government investment. 

As you mentioned the work with the U.S. Commercial Service, we 

have participated in a handful of trade missions to international 

markets, noticeably to Latin America. And the work that the Commercial Service provides to us in those markets is introducing us 

to potentially interested customers. 

These types of customers are at a very high level. I like to say 

that I could cold call for 10 years and not get these kinds of appointments. And through the influence our embassies have internationally, we get an audience right away. 

Secondly, we work with a group CMTC, California Manufacturing Technology Consulting, to help us optimize our production 

process, our planning process, our innovation process. CMTC is an 

organization with funding from NIST and also MEP, the Manufacturing Extension Partnership. Through our work with them we 

have found ways to reduce the operating costs of manufacturing, 

improve our forecasting methodology so that we have fewer dollars 

tied up in both raw materials and finished goods. And we use those 

dollars then to invest in R&D, in pursuing new IoT-related technologies. 

So, as Dr. Butler mentioned moments ago, when we look at the 

new types of jobs being created, what Louroe Electronics is finding 

is that our investments into R&D increases our need for computer 

scientists or coders or the types of jobs that are specific to IoT 

fields, as opposed to more traditional analog electronics or other 

types of manufacturing. 

Mr. CA ́ RDENAS. Thank you. 

Gentlemen, when it comes to much of what is driving private industry in the Internet of Things, does much of it have to do with 

increasing productivity for the end user, and also increased safety 

for the end user? Are those two driving factors? Because when I 

was out there looking at many of the products around the corner 

here with the displays that are going on, that seemed to be two 

main themes, whether it is vehicles or something with intelligence 

in it. 

Mr. JAVDANI. I can briefly speak to that. What we find is that 

most of the work that goes into an analysis or process can be automated. So productivity can increase because the time that would 

have been needed to conduct review of certain data is now automated. So that frees up worker time for other, other items. 

Mr. KOSAK. If I just—oh, sorry. 

Mr. CA ́ RDENAS. Go ahead. Yes. 

Mr. KOSAK. If I could just add to that, I think maybe the ultimate example of that is autonomous vehicles where, you know, 

they see better and they see more than human drivers. And by networking them together you can create vastly safer systems for personal mobility overall. 

Mr. CA ́ RDENAS. So, efficiency, increased productivity again a common theme; right? 

63 

Mr. KOSAK. Yes. Efficiency in group management and safety, and 

just better sensing and response. 

Mr. CA ́ RDENAS. And, again, safety as well, some two major 

themes. 

And I have a tongue-in-cheek question. Is the Internet of Things, 

does it tend to be a male-dominated environment, gentlemen? What 

does the diversity look like? 

Half the population of this country are women, and yet, at the 

same time when it comes to technology and certain environments, 

or what have you, we find that it seems to be mostly men hanging 

out in that environment. What is the industry doing that you are 

aware of, or what are you involved in directly that is trying to 

make sure you are cognizant of that? 

And matter of fact, I saw something recently where a very famous man, Warren Buffett, said, I have tremendous confidence in 

the U.S. economy. And he was commenting about how his sisters 

are just as smart as him, his sisters are just as capable as him, 

but he was the guy in the family so he was the one that got to rise 

to being this famous, incredible entrepreneur. And yet, he was saying, you know, my sisters are just as capable as me, but the environment nurtured me to be the guy instead of my sisters. And then 

the main point that he made, he said, I have tremendous confidence in the United States economy, because look at what we 

have done with only truly taking advantage of half of our workforce, half of our resources. 

In other words, he is pointing out the fact that if we include 

women and we are cognizant of that, maybe we will be even more 

successful, maybe we will be more innovative, maybe we will advance quicker, faster, better. 

Any comments? 

Dr. MARRAS. I think it is beginning to change. I think it goes 

back to our educational system. You know, I am, my primary appointment is in an engineering college. And, you know, some of 

the—— 

Mr. CA ́ RDENAS. I am an engineer, too. And I remember in those 

classes women, very smart on campus, just weren’t in class with 

me. 

Dr. MARRAS. And there, especially those in biomedical engineering, care more about people. You’re starting to see more and more 

of them. It is just a slow change. 

Mr. CA ́ RDENAS. Well, my time is up. But if you can share sometime today about maybe some activities that are going on to increase that awareness and make that difference. 

Thank you, Mr. Chairman. 

Mr. LATTA. Thank you very much. The gentleman yields back. 

The Chair now recognizes the gentleman from New Jersey for 5 

minutes. 

Mr. LANCE. Thank you, Mr. Chairman. And good morning to the 

panel. Thank you for your testimony. 

Later this afternoon I am meeting with the Christopher and 

Dana Reeve Foundation, located in Short Hills, New Jersey, in the 

district I serve. So I am particularly interested in Dr. Marras’ testimony regarding your fine work at the Spine Research Institute. 

64 

Dr. Butler, can you please explain how connected devices and 

Internet connectivity capability have affected your business? 

Dr. BUTLER. It certainly has put us now in a position to scale our 

business. I think it is a tremendous opportunity, again, across multiple markets. So it allows us to scale in a variety of different industries beyond some core industries that, that we are focused on 

today. 

I think if you look at the make-up of the workforce that we have 

in our company today, again as I mentioned to Congressman Harper earlier, we have product developers, electrical engineers, mechanical engineers, industrial engineers, but we also have software 

developers. We also have service people that support the service 

side of our business and sales, marketing and, of course, finance. 

And I think that over time, as we scale our business we will 

scale in all facets of that business. And so I think in terms of creating more job opportunities in the United States, if we are the 

leader in this industry and we are the provider of these technologies and services to the global economy, we will see job creation 

across that entire spectrum of our workforce. 

Mr. LANCE. And have you seen increases in employment in recent times? 

Dr. BUTLER. Yes. And we are, we are hiring now. We plan to hire 

a number of new engineers as it relates to percentage of our total 

employee base by the end of this year. So we are, we are growing 

on the back of the IoT industry at this point. 

Mr. LANCE. And regarding employment of engineers, is there a 

flow from our graduate schools regarding engineers in this country? 

Dr. BUTLER. Yes. I think for us it is a combination of both: we 

hire new college graduates and we also hire more experienced engineers as well. A lot of times we look to hire experienced engineers 

to take on new project management roles and leadership roles in 

the organization. And then we bring in new college graduates to 

work with those more experienced engineers as part of our product 

development program. So I think it is really a combination of both. 

Mr. LANCE. Thank you. 

Dr. Bachman, can you explain, please, how the collection of data 

from installed devices can be used to optimize business practices 

and operations? 

Dr. BACHMAN. Yes, sir. Most of the operations we do, we really 

don’t know what is going on. We are assuming that our machines 

are working the way they are supposed to work, and so forth. If 

we can monitor them, then we know when things aren’t working 

the way they should. 

And, so, at the very beginning of IoT the value was seen as in 

predictive maintenance and making sure that things are working 

the way they should. But it goes beyond that, because when you 

have that data and you can correlate against other things, things 

that you may not even think are relevant, like the weather, for example, or where the trucks are on the highway, you discover all 

kinds of patterns that we would normally not understand. And you 

can leverage that information to improve your operations, whether 

you are turning your lights off 10 minutes sooner, or maybe you 

are changing which warehouses you are going to be using. 

65 

It is the aggregation of many different types of data from many 

different sources that really brings the true value of IoT. So, when 

I talk to people, the easiest thing we understand is, yes, I can see 

where my pipes are leaking. That is valuable; right? That is a very 

obvious example. 

But the way I describe it, it is like a chess game, you have many, 

many different things going on. And if you have data on all of that 

then you can optimize your chess game and you can do ever greater 

value that way. 

Mr. LANCE. Thank you. 

And, Dr. Bachman, different people in different situations often 

define privacy differently. Do you think that the market is capable 

of addressing concerns related to privacy in the Internet of Things 

market over time? 

Dr. BACHMAN. This is an issue that is continually evolving, so 

there is no silver bullet that you can point to today. So, I think we 

have to recognize that, and recognize that this is going to be continuously a challenge that we are continuously solving. 

I will have to say that it is not just Internet of Things. So we 

get the benefit from the solutions of other industries, such as mobile connectivity or apps and so forth that are also addressed. And 

the biggest markets are in industry where privacy is not so much 

of an issue but security is an issue. And there is going to be a number of developments, of course, that we are all looking at, end-toend encryption and, you know, better authentication and these 

types of things to prevent malicious break-ins. 

But, also, the business models are going to—at least at the beginning people are taking steps where security is less of a concern 

in the sense that they are analyzing data but they are not controlling machinery, for example, at this point. 

Mr. LANCE. Thank you. My time has expired. Thank you, Mr. 

Chairman. 

Mr. LATTA. Thank you very much. 

The Chair now recognizes the gentleman from West Virginia for 

5 minutes. 

Mr. MCKINLEY. And, thank you, Mr. Chairman. I might suggest, 

Mr. Chairman, that along this topic there was a great book published last year, in April of 2016, Stephen Chase wrote called ‘‘The 

Third Wave.’’ And it might be something we might try to encourage 

all the members of our committee to take a look at that to see, because he addressed this issue at least over 2 years ago and finally 

got his book published last year. But it is an excellent book about 

the possibilities that we have in this, ‘‘The Third Wave,’’ if you all 

happen to have read that. 

Mr. Kuhns, I have got a question of you, for you. Do you know 

whether or not the IoT provisions are being included within certification for LEED buildings? Do you know whether or not they have 

creeped into there to be one of those key factors? 

Mr. KUHNS. I don’t know specifically with respect to LEED buildings. One of the problems is that IoT is kind of a general phrase 

that can be applied to almost any Internet-connected device. So 

what we are particularly more interested in is standards or best 

practices that relate to energy efficiency, to systems actually workVerDate Mar 15 2010 11:09 Apr 04, 2018 Jkt 037690 PO 00000 Frm 00069 Fmt 6633 Sfmt 6633 I:\115THCONGRESS\115X39IOTUPDATEASKOK040218\115X39IOTUPDATEPDFMADE W
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ing, regardless of the technology and regardless of whether you 

label that as IoT. 

Mr. MCKINLEY. OK. I just, I just would like to see us move into 

that. 

Mr. KUHNS. Yes. 

Mr. MCKINLEY. I think it is an opportunity for people to get more 

LEED certification and to use our technology, the Internet of 

Things, to be able to do more higher efficiency buildings. 

Let me, just an overall concept of what I have heard all five, six 

of you in your presentation. This proliferation of Internet of Things, 

both in Chase’s book and your own technology and what you have 

seen and how it has grown over the years, it seems like it opens 

the door for a virtual smorgasbord of bad actors and malware being 

developed. Because if, as the article said in USA Today this morning, if we can’t even protect our electric grid, how do we think with 

all these smaller firms, how are we going to prevent someone from 

gaining access to our personal lives, whether it is the telephone or 

our cars or whatever that might be? What role can we do, should 

we be playing to try to correct that? 

Mr. KUHNS. So, let me just take it if I could. That is one of the 

points that I tried to make in my initial testimony. 

From where I sit, we can do as good a job as possible at making 

sure that our devices are secure and that default passwords are 

changed. In fact, we don’t even use default passwords at all for 

that exact reason. But what is missing is if I am in my house and 

somebody is going around rattling the door, I can call the police 

and say, ‘‘Hey, there is a bad guy trying to get in.’’ 

In the Internet people are rattling my doorknob hundreds of 

times per day and there is not really anyone I can call. I feel like 

we need a national or maybe international more effective law enforcement response. We need to have somebody looking at bad guys 

and tracking them down. 

I can give you a list of IP addresses in Ukraine that tried to get 

into our system today, but there is nobody to give it to. So, I see 

that as a, yes, we need both sides. We need to have better door 

locks, but we need to have somebody tracking down the bad guys 

and doing something about it. 

Mr. MCKINLEY. OK, thank you. And I hope the rest of you get 

back to us. I would like to hear from your perspective because if 

our utilities can’t prevent it, I wonder about individual firms that 

don’t have that. 

Mr. Kosak, back to you. Because I really thought Ms. Schakowsky hit a homerun with her question. A second, follow-up question I think would be just as fundamentally is if we believe, if we 

think there is a predicate for using seatbelts, why are we able to 

operate our vehicles without wearing a seatbelt? 

Mr. KOSAK. Do you mean why isn’t it—— 

Mr. MCKINLEY. Why manufacturers not putting a triggering 

mechanism in so that if it is so important why don’t we go so fundamentally as the car can’t start unless someone has a seatbelt on? 

Mr. KOSAK. Well I, you know, I can’t answer the broader societal 

question. I can say that we do a lot to strongly encourage in 

my—— 

67 

Mr. MCKINLEY. A little bell comes on every—I know when my 

wife doesn’t put her seatbelt in the car a little beep goes on. But 

if something is fundamental, if we say that is going to be something we can save lives and save energy and for healthcare if we 

would wear seatbelts, I am just curious why we have not done that. 

Mr. KOSAK. Yes, I am not, I am not sure. But, again, the reminders are pretty relentless. And to some, you know, pretty irritating. 

But I think they have become more pervasive, you know, with we 

have identified more direct ways to communicate that are harder 

to ignore. 

Mr. MCKINLEY. Thank you. My time has expired. 

Mr. LATTA. Thank you. The gentleman’s time has expired. 

And the Chair now recognizes the gentleman from Florida for 5 

minutes. 

Mr. BILIRAKIS. Thank you. I appreciate it, Mr. Chairman. 

Dr. Marras, can you please explain how the use of innovative 

technology in IoT has contributed to the work being done at the 

Spinal Research Institute? And I would like to, if you could tell me 

a little bit on how you have helped maybe possibly veterans, you 

know, that have spinal chord injuries as well with this technology. 

Dr. MARRAS. Yes. So the IoT basically allows us to marry information from wearable sensors that talk about how you move, with 

information from data we could get, for example, of veterans’, like, 

prostheses and things like that and how they hit the floor, with information about how they recruit their muscles. And the IoT marries that information with our models. And our models are distributed amongst many different sources, so we could download anatomy from databases, we could download architecture and reverse 

engineer a person’s spine. 

And it basically allows us to communicate in a very, very efficient way which if you were doing this by hand would take you, 

you know, months compared to what takes now seconds. As a matter of fact, our models used to take months to build, and now we 

can build a model of a person in seconds. And it helps us understand what is unique about that person, how much tissue loading 

is too much tissue loading, and what needs to be done to help fix 

that. 

And I should also say we don’t focus on spinal chords, we focus 

on spines. 

Mr. BILIRAKIS. OK, very good. Thank you. 

Dr. Bachman, can you please speak to how privacy concerns are 

being addressed by industry, especially as we see the number of 

IoT applications increasing rapidly? 

Dr. BACHMAN. So, I think privacy, especially for consumer-facing 

products is a big concern for everyone. And I think what, what I 

am seeing is that there is no single standard way to address that. 

And, in fact, most of the devices that I am familiar with follow 

pretty much the mobile phone model. They basically consider themselves a mobile phone without a front face on it. 

So there is no, there is no single solution other than what is already being done for mobile devices. However, there is a lot of good 

ideas that are being discussed, for example, things like end-to-end 

encryption, things like better authentication. I think we would benVerDate Mar 15 2010 11:09 Apr 04, 2018 Jkt 037690 PO 00000 Frm 00071 Fmt 6633 Sfmt 6633 I:\115THCONGRESS\115X39IOTUPDATEASKOK040218\115X39IOTUPDATEPDFMADE W
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efit greatly from standards that sort of lay out what is considered 

a safe device and what is not considered a safe device. 

Also, we would benefit greatly if we could have independent 

watch dogs, for example, that indicate these products are considered safe and these aren’t; sort of an Energy Star type of certification. I think that would really help, actually, everyone, not only 

the consumers but also the industry because when we have the 

trust of the consumer then we can sell our products to them. But 

if people feel like we are stealing their information, then they are 

not going to buy our products. So, some sort of independent certification or eye on this would actually help us a lot. 

The other thing is I think one last thing I want to mention because this is something that we don’t have any requirement to do, 

but if we were to build an IoT device, we have no requirement to 

disclose what data we are collecting. And I think it would be very 

helpful if there was such a requirement. Because when you buy a 

product, even if it is completely secure and no one can hack in, you 

don’t know how much data it is collecting, when it is collecting, and 

what it is sending to the owner that, to the company that is selling 

you that. They may be selling your information to other people. 

At least in the apps we are used to having to sign an end user 

license agreement, and in devices we don’t have to do that. So I 

think it would be useful to have some sort of requirement of disclosure, even if it’s a voluntary with a star, you know, with a certificate or something like that associated with it. 

Mr. BILIRAKIS. OK, thank you very much. 

Dr. Butler, is there anything we can do as policy makers to promote the growth of industrial IoT? Dr. Butler. 

Dr. BUTLER. Yes, I think there are a few things. I think, number 

one, continue to work with organizations like the IIC and the OIC, 

the consortium, that are today looking at, looking at how to grow 

the industrial IoT space. I think, as I mentioned earlier today, I 

think adoption would be great. I think the opportunity for adoption 

within the Federal space today is significant. And I think if we look 

back historically on how the internet came to pass and its growth, 

the Federal Government was instrumental in that in terms of developing the ARPANET and the NSF funding that went along with 

that to serve as a catalyst. So, I think adoption in certain areas. 

And then I also think funding research and developments in the 

key areas to provide competitive advantage. And I think a light 

regulatory touch to promote innovation. 

Mr. BILIRAKIS. Very good. Thank you. 

Anyone else, I have got, well, got—no, I am over. I am over, Mr. 

Chairman. I yield back. Thank you. 

Mr. LATTA. OK. The gentleman yields back. 

The Chair now recognizes the gentleman from Oklahoma for 5 

minutes. 

Mr. MULLIN. Thank you, Mr. Chairman. And thank you to the 

whole panel for being here today. 

Although I don’t consider myself a tech-savvy individual, I do realize that technology is in a lot of cases making our lives easier and 

saving lives at the same time. We are talking about the new technology of detecting when we leave a child in a car seat. 

69 

I can tell you, my wife and I, we have five kids, and they age 

from right now 13 to 6. But when we had just had our twins, we 

jumped out at church and walked into the church and immediately 

realized we left our 4-year-old daughter in the car seat. I mean, it 

was less than probably 2 minutes and, fortunately, it wasn’t hot 

that day, it was this beautiful fall day, but it can happen. It can 

happen just like that. And any parent that has had young kids 

knows that that can happen quickly. And that is where technology 

comes in. 

And so we appreciate all you all being here. 

Dr. Marr-uss—is that how you say it? 

Dr. MARRAS. Mare-iss. 

Mr. MULLIN. Mare-iss. Dr. Marras, thank you for being here. I 

understand the technology to which you are looking into right now 

is to protect backs, spinal injuries. A question that I have, I come 

from, you know, a very athletic background and fought professionally for a few years. And, ironically, I am limping today. I have 

no idea what I did to my back. But it can happen tomorrow. 

My wife who her and I are going to be celebrating our 20th anniversary tomorrow—I got to throw that in there by the way, Chairman, I have to throw that—you know, 20 years is a big task—— 

Mr. LATTA. Oh, our anniversary is tomorrow. It is 31. 

Mr. MULLIN. Oh, 31, is it? I am not going to say my wife can 

make 31 years with me. I couldn’t have made two. 

But she is very athletic. And she was working out the other day 

and literally just bent over to grab a weight and hurt her back for 

the first time ever. The technology that you are having I know can 

help, you know, diagnose to some degree of what is causing that 

and the movements that cause it. 

Specifically what I wanted to talk about, though, is moving into 

the realm of professional sports, but moving into the realm of even 

the smaller kids, is it possible that this band that you are having, 

I guess that wears on your wrist, is that where you are moving to; 

is that right? 

Dr. MARRAS. Not exactly. It is on the spine. 

Mr. MULLIN. On the spine. 

Dr. MARRAS. Yes. 

Mr. MULLIN. Is it possible for you to build it to detect it in athletes and programs and knowing the pressure, the pressure points? 

Because maybe we can change some of the techniques that we are 

showing that can prevent a lot of this. 

Dr. MARRAS. As a former college athlete I am very sensitive to 

your question. And I have experienced all kinds of problems myself. 

The thing that is unique about the spine is you don’t know when 

damage is occurring. Typically in the spine, when you have serious 

problems it occurs in the disk. And the disk is very atypical because there are not very many what is called nerve endings in the 

disk. You really can’t feel what is going on until it is too late. 

And so with our technology, by bringing people into our laboratory and putting smart sensors on them and building models of 

how they are responding to this, we could pinpoint how much is too 

much exposure to whatever, including sports. As a matter of fact, 

we have had some experience doing this with golfers. And when 

you think about golfing, you are holding a club that weighs just a 

70 

few ounces, yet the loads on the spine can be tremendous. We have 

to get to that level of detail and look inside the body before we understand how much is too much. And that is what we try and offer. 

Mr. MULLIN. So is this, is this more looking towards the period 

of rest that, say, hey, after you do this so long maybe you should 

rest a certain time? 

Dr. MARRAS. Yes, it could be that. But we prefer to look at it as 

maybe you shouldn’t be using that technique that is damaging the 

spine. And there might be better ways to go about doing you work 

or doing your sports. 

Mr. MULLIN. With the technology that you are having, is someone capable of wearing it while they play the sport? And I am not 

saying necessarily golf because that is a sport I don’t even begin 

to try. There is limits to what I am able to do. 

Dr. MARRAS. Yes, so, you know, we are talking about really a variety of technologies here. And some of them, yes, can be worn on 

the field. Other ones you would have to simulate the game in our 

laboratory. But at the end of the day we need to compare it against 

what are normal loads in the spine and what are abnormal loads 

in the spine. And that is how we understand when you are doing 

damage. 

Mr. MULLIN. Well, thank you for the technology you are looking 

into. I think it is going to pay huge dividends and on a lot of professional athletes moving down the road. So, thank you so much. 

Mr. Chairman, I yield back. 

Mr. LATTA. The gentleman yields back. 

The Chair now recognizes the gentleman from Pennsylvania for 

5 minutes. 

Mr. COSTELLO. Thank you. 

I just, Dr. Marras, wanted to follow up on some of the dialog you 

had with Mr. Bilirakis about how the predictability tool would impact healthcare costs. And I understand that is your thing, spines. 

Perhaps you could share how that application might be applied in 

the healthcare realm with other types of surgery. 

And do you ultimately think that it will mean reduced healthcare 

costs or avoided healthcare costs? I would be curious for you to just 

speak on that to the extent that you would like. 

Dr. MARRAS. Well, thank you for that question. It is a great question. 

If you look at healthcare costs associated in the spines, we spend 

more money treating people for spine disorders than we spend 

treating people for cancer. So, we are talking about enormous numbers. And if you look at medicine applied to the spine, it is more 

of an art as opposed to a quantitative science. 

And what we are trying to bring to the table is a way to quantify 

what physicians are facing. We are not trying to do medicine; we 

are trying to give them the tools to make it more quantitative and 

more precise. Because the way it works now when you have a spine 

disorder is, you know, your back hurts. You go see your doctor. 

They are not really sure what is going on. You go see, get an MRI. 

And the MRI might cost you 1,500 bucks, and it has got about a 

10 to 15 percent chance of telling you what is wrong. 

And so then they will send you to physical therapy. And if that 

doesn’t work, then they will send you to, you know, get injections. 

71 

And at the end of the trail are surgeries. But it is trial and error. 

And that gets very, very expensive. 

What we are bringing to the table is the ability to quantify what 

precisely is wrong with that person. And only change what you 

need to change. And in that way we think it is going to be very, 

very cost effective and allow people to get the kind of, go directly 

to the kind of treatment that they want as opposed to this long slog 

of try this, try that, as it is exacerbating over time. 

Mr. COSTELLO. Right. And I found your testimony very compelling. 

Do you have any sense of how you, from an analytical perspective, how much you may be able to reduce the number of types of 

procedures or testing that will be avoided as a result of the application that you could provide? And what about other types of surgeries or ailments that there might be something more preventative or more preemptive that could be done as a consequence of the 

type of application that you have and the type of technology that 

is available? 

Dr. MARRAS. Well, our technology allows us to actually do virtual 

surgeries on people. We could build a model of a particular patient’s spine, along with all their nooks and crannies, and all the 

individual components of their problem, and figure out exactly 

what surgery that person needs. Because right now surgeries are, 

you know, throughout the country probably about effective less 

than 50 percent of the time. And that gets very expensive. 

Mr. COSTELLO. How are insurance companies responding to this? 

Dr. MARRAS. Well, we are—— 

Mr. COSTELLO. Or not responding to this. 

Dr. MARRAS. Yes. They are tightening up on what they are allowing because there has been a lot of abuse of surgery over the years. 

A lot of times people go right to the surgery as opposed to seeing 

exactly what is wrong with the person. And they tend to, for a lot 

of surgeons, they do more surgery than what is necessary. 

Mr. COSTELLO. Dr. Bachman. Thank you. Dr. Bachman, zero 

power technology, National Science Foundation funding. The question that I have is you speak to your involvement with NSF and 

its support, and its role in supporting IoT—couple acronyms 

there—and are you aware of the need or any opportunity to update 

or expand Federal grant funding language as a consequence of the 

emerging role of IoT? 

Dr. BACHMAN. Yes, sir. We are funded by the NSF to develop 

zero power sensing. That means you can create a sensor, put it 

somewhere, and not have to create the batteries or not have to 

hook up to a cable, which is extremely valuable for a lot of remote 

sensing applications. That kind of technology is not something you 

buy off the shelf. It is a very advanced technology, so it requires 

sort of fundamental work. And that is where organizations like the 

National Science Foundation are very helpful. 

I do think it is helpful that they do frame what they are funding 

in the sense of a market such as IoT because it helps guide the research to be a little bit more focused on the application. And that 

has been helpful for me, because otherwise we may just develop 

something that can’t be turned into an actual product. And we actually want to turn these into products to make things better. 

72 

So I do, I do like the fact that we frame the—and certainly NSF 

has helped me do that, frame what they are funding in terms of 

market applications. Although I would hate to lose the spirit of, 

you know, free thought and, you know, truly basic research that 

they support as well. 

Mr. COSTELLO. Thank you. And as my questions, if you have any 

follow-up, anything else comes into mind or any other gentlemen 

on the panel that want to offer any comments on those questions, 

I would certainly encourage you to do so in writing. 

Thank you. I yield back. 

Mr. LATTA. Thank you very much. The gentleman yields back. 

And the Chair recognizes the gentlelady from Illinois. 

Ms. SCHAKOWSKY. Thank you, Mr. Chairman. I just wanted to 

enter unanimous consent to enter into the record a statement from 

the Electronic Privacy Information Center. 

Mr. LATTA. Without objection. 

[The information appears at the conclusion of the hearing.] 

Mr. LATTA. And seeing no other members here to ask questions, 

I want to thank all of our witnesses today for participating. You 

know, when you all were across the hall at the Internet of Things 

Showcase, there is great interest and there is excitement there, 

and I think people really see the future right now today. And when 

we look at the estimate there could be 50 billion devices interconnected out there by 2025, we know where we are heading. 

And so I really appreciate your testimony today. 

And pursuant to committee rules, I remind members that they 

have ten business days to submit additional questions for the 

record. And I ask that the witnesses submit their responses within 

ten business days upon receipt of the questions. 

And before I adjourn the subcommittee, I just want to again 

thank the committee staffs for all the hard work that they did in 

preparing for the Internet of Things Showcase because, again, it 

was a great success, and I appreciate it. 

And without objection, the subcommittee is adjourned. Thank 

you very much. 

[Whereupon, at 12:27 p.m., the subcommittee was adjourned.] 

[Material submitted for inclusion in the record follows:] 

73 


epic.org 

June 13,2017 

The Honorable Robert Latta, Chairman 

Electronic Privacy Information Center 

i718 ConnectiCut Avenue NW, Suite 200 

Washington, DC 20009, USA 

The Honorable Janice Schakowsky, Ranking Member 

U.S. House Committee on Energy and Commerce 

Subcommittee on Digital Commerce & Consumer Protection 

2125 Raybum House Office Building 

Washington, D.C. 20515 

+1 202 4831140 

+1 202 483 1248 

~ @EP!CPrivacy 

https~//eplc.org 

RE: "Disrupter Series: Update on lOT Opportunities and Challenges" 

Dear Chai1man Latta and Ranking Member Schakowsky: 

We write to you regarding the Disrupter Series hearing on "Update on lOT Opportunities 

and Challenges." 1 American consumers face unprecedented privacy and security threats. The 

unregulated collection of personal data and the growth of the Intemet ofThings has led to 

staggering increases in identity theft, security breaches, and financial fraud in the United States. 

Artificial Intelligence implicates a wide range of economic, social, and political issues in the 

United Stales. These issues have a significant impact on the future of cybcrsecurity, and we 

commend the Subcommittee for exploring them. 

EPIC is a public interest research center established in 1994 to focus public attention on 

emerging privacy and civil liberties issues 2 EPIC is a leading advocate for consumer privacy and 

has appeared before the House Energy and Commerce Committee on several occasions, and has 

actively participated in the proceedings of the Federal Trade Commission ("FTC") and the 

Federal Communications Commission ("FCC") 3 

1 Update on JOT Opportunities and Challenges, 115'h Cong. (2017), H. Comm. on Energy & Commerce, 

Subcomm. on Digital Commerce and Consumer Protection, https://cnergycommerce.housc.gov/hearingsand-voteslhearings/disrupter-series-update-iot-opportunitics-and-challengcs (June 13, 20 I 7). 2 See EPIC, About EPIC, https:l/epic.org/epic/about.html. 3 See, e.g, Marc Rotenberg, EPIC Executive Director, Testimony before the House Comm. on Energy & 

Commerce, Subcomm. on Communications and Technology, Examining the EU Sa(e Harbor Decision 

and fmpactsfor Transatlantic Data Flows (November 13, 2015), 

https:llcpic.org/privacylintllschrcms/EPIC-EU-SH-Testimony-HCEC-11-3-final.pdf; Marc Rotenberg, 

EPIC Executive Director, Testimony before the House Comm. on Energy & Commerce, Subcomm. on 

Communications and Technology, Communications Networks and Consumer Privacy: Recent 

Developments (April23, 2009), https:llcpic.orglprivacy/dpi/rotenberg_HouscCom_4-09.pdf: Letter from 

EPIC to the House Comm. on Energy and Commerce on FCC Privacy Rules (June 13, 2016), 

https://epic.orglprivacylconsumeriEPlC-FCC-Privaey-Rulcs.pdf; Letter from EPIC to the Senate Comm. 

on Commerce, Science, and Transportation on FTC Oversight (Sept. 26, 20 16), 

h ttps: I I epic. org/pri vacy I consumer IE PIC-Letter -Sen -Comm -CST-FTC-Oversight. pdf. 

EPIC Statement 

House E&C Committee 

Defend Privacy. Su 

!!!#llll!lllll! 

Internet of Things 

June 13,2017 

A 
74 


The Internet of Things Poses Numerous Privacy and Security Risks 

The Internet of Things (loT) poses significant privacy and security risks to American 

consumcrs.4 The Internet of Things expands the ubiquitous collection of consumer data. This 

vast quantity of data could be used for purposes that arc adverse to consumers, including remote 

surveillance. Smart devices also reveal a wealth ofpcrsonal information about consumers, which 

companies may attempt to exploit by using it to target advertising or selling it directly. Because 

the loT generates data from all aspects of consumers' daily existence, these types of secondary 

uses could lead to the commercialization of intimate segments of consumers' lives. 

Many loT devices feature "always on" tracking technology that surreptitiously records 

consumers' private conversations in their homes. 5 These "always on" devices raise numerous 

privacy concerns, including whether consumers have granted informed consent to this form of 

tracking. Even if the owner of an "always on" device has consented to constant, surreptitious 

tracking, a visitor to their home may not. Companies say that the devices rely on key words, but 

to detect those words, the devices must always be listening. And the key words arc easily 

triggered. For example, several Amazon Echo devices treated a radio broadcast about the device 

as commands6 A San Diego television report about a girl using an Echo to order a $170 

dollhouse and four pounds of sugar cookies triggered Echo devices across the city to make the 

same purchase.7 A recent law enforcement request for Amazon Echo rccordings 8 shows that 

"always on" devices will be much sought-after sources of information by law enforcement, 

foreign and domestic intelligence agencies, and, inevitably, cybercriminals. 

Another significant risk to consumers in the loT is security, of both the users' data and 

their physical person. Many of the same security risks that currently threaten our data will only 

expand in the Internet of Things. The damage caused by malwarc, phishing, spam, and viruses 

will have an increasingly large array of networks in which to spread9 Additionally, not all 

wireless connections in the JoT arc cncrypted10 Researchers who studied encryption within the 

'S'ee Comments of EPIC to NTIA, On the Benefits, Challenges, and Potential Roles(or the Government 

in Fostering the Advancement of the Internet of' Things (June 2, 20 16), 

https://epic.org/apa/comments/EPIC-NTIA-on-IOT.pdf; Internet of Things, EPIC, 

https:l/epic.org/privacy/internct/iot/. 

5 EPIC Letter to DOJ Attorney General Loretta Lynch, FTC Chairwoman Edith Ramirez on "Always On" 

Devices (July I 0, 2015), https://cpic.org/privacy/intcrnet/ftc/EPIC-Lcttcr-FTC- AG-Aiways-On.pdf. 6 Rachel Martin, Listen Up: Your AI Assistant Goes Crazy For NPR Too, NPR (Mar. 6, 2016), 

http://www. npr. org/2 0 16/03/06/469 3 83 3 61 /lis ten-up-your -ai -assistant -goes-crazy-for -npr -too. 7 Carlos Correa, Ne>vs Anchor Sets offA/exa Devices Around San Diego Ordering Unwanted Dol/houses, 

CW6 (Jan. 5, 2017), http://www.cw6sandiego.com/news-anchor-sets-off-alexa- dcvices-around-sandiego-ordering-unwantcd-dollhouses/. 

8 See Christopher Mele, Bid for Access to Amazon Echo Audio in Murder Case Raises Privacy Concerns, 

N.Y. Times (Dec. 28, 20 16), https://www.nytimes.com/20 16/12/28/business/amazon- echo-murder-casearkansas.html. 

9 See EuROPEAN COMM'N, A DIGITAL AGENDA FOR EUROPE, 16-18 (2010), http://eurlex.europa.cu/Lex\J riScrv /Lex U riServ.do'>uri,CO M :20 I 0:024 5 :FIN :EN :PDF. 1

° Federal Motor Vehicle Safety Standards; Event Data Recorders, Docket No. NHTSA-2012-0177 

(Comments of Privacy Coalition), 10 https:i/epic.org/privacy/cdrs/EPIC-Coal-NHTSA-EDR-Cmts.pdf. 

EPIC Statement 

House E&C Committee 

2 Internet of Things 

June 13,2017 
75 


loT found that "many of the devices exchanged personal or private information with servers on 

the Internet in the clear, completely unencrypted." 11 

In addition to data security risks, the loT also poses risks to physical safety and personal 

property. This is particularly true given that the constant flow of data so easily delineates 

sensitive behavior patterns, and flows over networks that are not always secure, leaving 

consumers vulnerable to malicious hackers. For instance, a hacker could monitor Smart Grid 

power usage to determine when a consumer is at work, facilitating burglary, unauthorized entry, 

or worse. Researchers have already demonstrated the ability to hack into connected cars and 

control their operation, which poses potentially catastrophic risks to the public. 12 

It is not only the owners ofloT devices who suffer from the devices' poor security. The 

loT has become a "botnet ofthings"--·a massive network of compromised web cameras, digital 

video recorders, home routers, and other "smart devices" controlled by cybercriminals who use 

the botnet to take down web sites by overwhelming the sites with traffic from compromised 

devices. 13 The loT was largely to blame for attacks in 2016 that knocked Twitter, Paypal, Reddit, 

Pinterest, and other popular websites off of the web for most of a day. 14 They were also behind 

the attack on security blogger Brian Krebs' web site, one of the largest attacks ever seen. 15 

These problems will not be solved by the market. Because poor loT security is something 

that primarily affects other people, neither the manufacturers nor the owners of those devices 

have any incentive to fix weak security. Compromised devices still work fine, so most owners of 

devices that have been pulled into the "botnet of things" had no idea that their IP cameras, 

DVRs, and home routers are no longer under their own control. As Bruce Schneier said in recent 

congressional testimony, a manufacturer who puts a sticker on the box that says "This device 

costs $20 more and is 30 percent less likely to annoy people you don't know" probably will not 

get many sales. 16 We urge the Committee to address these numerous privacy and security 

concerns as it moves forward on legislation related to the Internet of Things. 

'

1 Nick Fcamstcr, Who Will Secure the Internet of Things>, FREEDOM TO TINKER (Jan. 19, 2016) 

https://freedom-to-tinker.com/blog/feamster/who-will-secure-the-internet-of-things/ (emphasis in 

original). 

12 See. e.g., Karl Brauer & Akshay Anand, Braking the Connected Car: The Future of Vehicle 

Vulnerabilities, RSA Conference 2016, 

https :/ iwww .rsaconfcrcncc. com!wri tab lc/prcsen ta lions/file_ up load/ht -til-hacking-the-connected-carthetfuturetof-vehicle-vulnerabilitics.pdf; Fire Eye, Connected Cars: The Open Road for Hackers (2016), 

https://www.firccyc.com/contcnt/dam/firceye-www/scrvices/pdfsiconnccted-cars-the-open-road-forhackcrs.pdf. 

11 See Bruce Schneier, We Need to Save the Internet/rom the Internet of Things, Schneier on Security 

(Oct. 6, 2016), hl1ps:i/www.scbncier.com/cssays/archives/2016/10/we need to save the .html 14 See Scott Hilton, Dyn Analysis Summary of Friday October 21 Atta'Zk, Dy-~.c;:;m (Oct. 26, 2016), 

http:i/dyn.com/blog/dyn-analysis-summary-of~friday-october-21·attack/. 

15 See Brian Krebs, KrebsOnSecurity Hit With Record DDoS, KrebsOnSccurity (Sept. 21, 2016), 

https J /krcbsonsccurity. com/2 0 16/09/krebsonsecurity -hit· with-record-ddosi. 16 Testimony of Bruce Schneier before the House Committee on Energy & Commerce, Understanding the 

Role of Connected Devices in Recent Cyber Attacks, ]14th Cong. (20 16). 

EPIC Statement 

House E&C Committee 

3 Internet of Things 

June 13,2017 
76 

Æ 


We ask that this letter be entered in the hearing record. EPIC looks forward to working 

with the Subcommittee on these and other issues impacting the privacy and security of American 

consumers. 

Sincerely, 

Is! JVlarc 'Rotenberg 

Marc Rotenberg 

EPIC President 

EPIC Statement 

House E&C Committee 

4 

Is! Caitriona Titzgera{d 

Caitriona Fitzgerald 

EPIC Policy Director 

Internet of Things 

June 13,2017