Source: http://actonline.org/statements/
Timestamp: 2019-04-23 23:56:55+00:00

Document:
“The App Association welcomes the new licensing agreement between Apple and Qualcomm and the end to all the litigation between the two companies. The Apple v. Qualcomm litigation has always been a distraction from the core of Qualcomm’s anticompetitive business model and the vast impact it has on companies large and small throughout the economy, from precision agriculture to autonomous cars to connected health.
Open standards like 4G and 5G are set to provide the connective tissue and the foundation for competition in the modern economy and regulators and policymakers must ensure that every company, not just the largest ones, are safe from Qualcomm’s anticompetitive and discriminatory patent schemes.
The Federal Trade Commission must continue fighting to ensure Qualcomm lives up to its commitments to license its standard-essential patents to any willing licensee under fair, reasonable, and non-discriminatory terms. The U.S. Patent and Trademark Office must also reaffirm its commitment to the 2013 Policy Statement to protect companies from Qualcomm’s abusive patent litigation tactics.
About the App Association: ACT | The App Association represents more than 5,000 app makers and connected device companies in the mobile economy. Organization members leverage the connectivity of smart devices to create innovative solutions that make our lives better. ACT | The App Association is the leading industry resource on market strategy, regulated industries, privacy, and security.
(WASHINGTON, DC) December 7, 2018– Today, ACT | The App Association released a statement from president Morgan Reed regarding remarks by U.S. Assistant Attorney General Makan Delrahim regarding the Antitrust Division’s withdrawal from the 2013 Policy Statement on Remedies for Standards-Essential Patents (SEP) Subject to Voluntary F/RAND (Fair, reasonable, and non-discriminatory) Commitments.
“Today’s FCC approval to streamline rapid deployment of 5G is a huge step forward for American innovation and continued growth of the networked economy. Just 10 years ago, wireless networks enabled app developers to completely reshape the way we live and work, growing an app economy that is currently valued at $950.6 billion and employs 4.7 million Americans.
“The National Telecommunications and Information Administration (NTIA) takes a thoughtful approach in its privacy principles, appropriately recognizing that desired outcomes are not always reached most effectively through regulation. We are especially pleased that these principles recommend that Congress adopt a single, national framework that is driven by consumer experiences and designed to prevent concrete harms. Read More.
ACT | The App Association supports the Subcommittee on Regulatory Reform, Commercial and Antitrust Law’s goal of ensuring that foreign countries develop and enforce antitrust laws that promote competition and maximize consumer welfare. We believe the Subcommittee is right to examine the practices of foreign antitrust authorities because a strong global economy depends on the even-handed protection of competitive forces. Full Article.
Washington, D.C. – Today, The Supreme Court of the United States ruled that the government required a warrant to collect cellphone users’ location data. ACT | The App Association President Morgan Reed offered the following statement in response to the announcement.
“We applaud the Supreme Court decision to require warrants to collect location data from cell phone users. In our modern age, mobile phones have become the ubiquitous keepers of consumers’ private and personal data – holding that data to a different warrant standard would undermine the privacy rights afforded to American citizens and the businesses entrusted with their sensitive data.
“We have long argued that law enforcement should be required to obtain warrants to access communications data in all cases, regardless of where or how long the data is stored. This Supreme Court action marks a step in the right direction.
Washington, D.C. – Today, the Supreme Court of the United States announced their decision to hear the Apple v. Pepper antitrust case. In September 2017, ACT | The App Association submitted an amicus brief to the Supreme Court in support of Apple, and App Association President Morgan Reed issued the following statement in response to the Supreme Court’s announcement.
“We applaud the Supreme Court’s decision to review the case of Apple v. Pepper. Federal antitrust law must reflect the dynamic relationship between platforms and developers. Pepper’s attempt to change developers’ relationship with customers harms tens of thousands of small businesses that currently make apps and impedes their ability to compete and innovate.
“We know the important role platforms play in providing a place for developers to sell apps to a wide range of consumers. However, by altering the definition of a direct purchaser to include consumers, Pepper places the true ownership of an app with the platform that hosts them not with the thousands of small businesses across America that make them. Apps remain the product of developers’ ingenuity, and developers maintain autonomy over how the apps are sold.
To view ACT | The App Association’s amicus brief, please click here.
Washington, D.C. – Today, ACT | The App Association member RapidSOS announced a partnership with Apple to improve emergency first responders’ ability to locate and serve users who dial 911. App Association President Morgan Reed offered the following praise in support of the new partnership.
“We’re thrilled to see our member RapidSOS partner with Apple to support the important work of emergency first responders. Smartphones have become ubiquitous in our lives, and precise location and rich emergency data from the RapidSOS mobile technology will help first responders reach and help people when they need it most.
“Policymakers have long sought to provide first responders the ability to locate a person in distress while receiving rich data about his or her condition – the partnership between RapidSOS and Apple is a key step in making this important effort a reality.
Washington, D.C. – Today, Representatives Ted Lieu (D-CA), Mike Bishop (R-MI), Suzan DelBene (D-WA), and Jim Jordan (D-OH) reintroduced the Ensuring National Constitutional Rights for Your Private Telecommunications (ENCRYPT) Act. The legislation, first introduced in 2016, proposes a uniform, national policy for state and local government’s treatment of encryption technology.
ACT | The App Association supports strong technical protection methods and has been a vocal advocate of end-to-end encryption as a means to protect data and prevent crime. App Association president Morgan Reed offered the following statement in response to the reintroduction of the ENCRYPT Act.
“The ENCRYPT Act is a necessary step to ensure Americans can use encrypted technologies to protect themselves and their data, regardless of where they live. Encryption protects our most valuable information from nefarious cyber criminals – securing everything from private healthcare data to financial transactions, proprietary business information to the countless interactions that occur throughout the $950 billion global app ecosystem.
Washington, D.C. – A Washington Post article and subsequent letter from Senator Ron Wyden revealed the Federal Bureau of Investigations (FBI) overstated the number of phones that were inaccessible due to technical protection methods currently available on modern smartphones. ACT | The App Association President Morgan Reed offered the following statement in response to the news.
“Strong encryption protects Americans from criminals that seek to do us harm. We are incredibly disappointed that the FBI would mislead the American people. The FBI’s disingenuous statements put Americans at risk by driving us away from the very technology that protects our valuable data.
“Last year alone more than 15 million Americans were the victims of identity theft, and these crimes cost our nation more than $16 billion. Strong technical security methods like end-to-end encryption help prevent data from entering the wrong hands. The FBI’s willingness to distort the reality around encryption to meet a political agenda not only jeopardizes the agency’s credibility, but also our security.
On April 17, the United States Supreme Court dismissed the ongoing United States vs. Microsoft privacy case, citing the passage of the Clarifying Lawful Overseas Use of Data (CLOUD) Act. ACT | The App Association has long believed it is the role of Congress to update the laws governing law enforcement access to data, and welcomes the decision from the Supreme Court.
ACT | The App Association President Morgan Reed offered the following statement on the Supreme Court action.
“We are pleased by the Supreme Court’s decision to dismiss the United States v. Microsoft case. This case highlighted the challenging conflicts in law enforcement access to data, many of which placed American innovators and small businesses between conflicting legal regimes and requirements. Thankfully, the newly passed CLOUD Act provides an important framework for governments to address contested legal questions around law enforcement access to data, while providing law enforcement the tools to keep their citizens safe.
Washington, D.C. – Today, the Federal Communications Commission (FCC) voted to streamline efforts to deploy next-generation 5G networks across the United States. ACT | The App Association President Morgan Reed issued the following statement in support of the vote and the benefits 5G deployment will bring the app and internet of things (IoT) ecosystem.
To learn more about the benefits 5G deployment will bring app developers and IoT innovators, please click here.
Today, FCC Commission Brendan Carr delivered remarks about their most recent wireless infrastructure proceeding and efforts to support 5G deployment. ACT | The App Association President Morgan Reed issued the following statement.
Today, the European Commission introduced a new Communication to outline guidance to create a fair and balanced system for standard essential patents (SEP). Morgan Reed, President of ACT | The App Association, issued the following statement in response.
Announcement underscores urgency for Congress to update lawful access to data laws.
Today, the U.S. Supreme Court granted the Department of Justice’s request to review the Second Circuit’s recent ruling on warrants for data stored overseas. The ruling recognized that U.S. law enforcement could not issue search warrants to compel American companies to hand over the emails of foreign citizens when their data was stored overseas. The Supreme Court’s decision to grant the Department of Justice’s request for review occurs while Congress is still debating updates to the laws outlining law enforcement’s proper access to stored digital data. ACT | The App Association President Morgan Reed issued the following statement in response to the Supreme Court’s announcement.
“As Americans, business owners, and innovators, we are disappointed by the Supreme Court’s decision to grant cert, which could reverse the Second Circuit’s recent ruling on extraterritorial warrants for data. Granting law enforcement access to foreign citizens’ data stored overseas would allow other nations to demand the same access to U.S. citizens’ data, even when that data is stored within the United States. This environment could complicate the free flow of data on which so many American businesses depend. Congress must act, or else American companies will continue to face challenges and missed opportunities when presented with legal ambiguities in requests for data stored abroad.
Judge Lucy Koh of the U.S. District Court’s Northern District of California denied Qualcomm’s motion to dismiss the Federal Trade Commission v. Qualcomm Incorporated case regarding standard essential patents (SEPs). In May, ACT | The App Association filed an amicus brief to outline the threat posed by the abuse of SEP licensing to innovation, competition, and interoperability. App Association President Morgan Reed issued the following statement on the decision.
Today, the U.S. Department of Justice asked the Supreme Court to review of the 2nd Circuit ruling that U.S. law enforcement warrants cannot extend to data stored abroad. ACT | The App Association President Morgan Reed issued the following statement in response to the decision.
“Today, the Department of Justice requested Supreme Court review of the 2nd Circuit ruling that U.S. warrants for data stored abroad do not extend overseas. The request provides important attention to this issue, but even a Supreme Court decision would not offer a comprehensive solution to the legal ambiguities American app developers and tech companies face when they receive requests for data stored abroad.
“We believe Congress must act to update antiquated digital data laws to not only protect people’s rights and support American businesses, but ensure U.S. law enforcement can effectively access data to conduct their investigations. Our businesses and law enforcement bodies deserve clarity. We will continue to push Congress to move legislation modeled after the International Communications Privacy Act (ICPA) to set clear rules and expectations for accessing electronic communications. America’s leadership in technology and integrity in international investigations hinges on legislative action to make this right.
Yesterday, the Centers for Medicare and Medicaid Services (CMS) released updated rules pertaining to the Medicare Access and CHIP Reauthorization Act (MACRA), legislation passed by Congress in 2015. Following rules released in October 2016, ACT | The App Association’s Connected Health Initiative (CHI) provided lengthy comments and feedback encouraging CMS to recognize and incorporate telehealth solutions into MACRA rules.
“CHI welcomes CMS’ stated goal to enhance the ability of Medicare caregivers to utilize connected health technology. However, in our initial review of the document’s more than 1,000 pages, we are concerned that the new MACRA rules inadequately account for the proven benefits of connected health technologies – telehealth, remote monitoring, and beyond – for American patients, doctors, and healthcare providers.
“The MACRA rules make minimal meaningful changes to reimbursement policies for telehealth or remote monitoring services, which is a disincentive to doctors and healthcare providers to leverage current, and future, innovations provided by app developers and telehealth companies.
To view the App Association letter for the record, please click here.
“Unless Congress updates the archaic Electronic Communications Privacy Act (ECPA), America’s innovative small businesses will face increasing uncertainty in the global marketplace. This lack of clarity could have devastating consequences for small app developers who rely on cloud computing to serve the 95 percent of consumers who live outside the United States.
ACT | The App Association President Morgan Reed released the following statement on Apple’s manufacturing grant to Kentucky-based glass manufacturer Corning.
ACT | The App Association President Morgan Reed released a statement following the cancellation of the Senate Judiciary Subcommittee on Crime and Terrorism hearing on law enforcement access to data.
ACT | The App Association is disappointed by the cancellation of today’s Senate Judiciary hearing on law enforcement access to data stored overseas. Delays like this are frustrating. Failure to act and clarify when and how law enforcement may access data stored abroad disadvantages American companies operating in the cloud and impedes the protection of consumer privacy. We have repeatedly urged congressional action to address the ambiguity under current law, and today’s delay slows hard-fought momentum to find a solution that supports law enforcement needs and helps ensure the protection of consumer data stored overseas.
We encourage Congress to introduce and act on legislation modeled after the International Communications Privacy Act (ICPA), and we will continue to push Congress to ensure this issue receives the timely attention it deserves.
“This executive order unjustly swept up our neighbors, our co-workers and our family members, and the Appeals Court decision is a win for our industry but most importantly for American values. There are many ways the immigration system can be improved and vetting enhanced, but we must do so without sacrificing our core values or encroaching on the rights of the men and women who help make America the world’s leader.
“A significant number of software companies, including those that make apps, rely on the best and brightest workers from overseas. Teaming with American engineers, these talented workers help drive the innovative products and services that define the robust app economy, which in turn creates more high-paying American jobs.
The House of Representatives today approved the Email Privacy Act (H.R. 387) to protect Americans’ privacy and public safety in the digital age.
“We applaud the House for passing the Email Privacy Act earlier today. Americans rely on the internet to store their most sensitive data including medical records, financial records, and private information. The Electronic Communications Privacy Act (ECPA) was enacted before the commercial internet took shape and simply doesn’t reflect modern realities or provide the American public the confidence they deserve in the privacy of their data.
Today the Court of Appeals for the Second Circuit denied the government’s request for an en banc rehearing of the Circuit’s landmark Microsoft vs. United States decision, which affirmed that U.S. law enforcement cannot arbitrarily demand access to data stored overseas by American companies outside of established international legal norms. ACT | The App Association filed an amicus brief in support of Microsoft’s position and applauds the Second Circuit’s confirmation of its historic decision today.
“Today’s decision assures that U.S. law enforcement must work with American companies to follow the laws of other countries when striving to comply with demands for cloud data stored abroad. The Second Circuit’s refusal to rehear the case en banc reaffirms international rule of law as well as what most Americans already believe —documents stored digitally should be treated the same as documents stored in a filing cabinet.
“Today’s decision by the Second Circuit also validates our view that the U.S. government’s reliance on the 1986 Electronic Communications Privacy Act (ECPA) — a law enacted five years before anyone browsed the web – cannot be applied to today’s world, which is powered by mobile technology with consumer data typically stored remotely in data centers. Congress is better positioned than ever to remedy this controversy and pass legislation to modernize U.S. laws. We must meet consumers’ expectation of privacy, while ensuring that all nations respect each other’s borders. Finally, law enforcement must have the tools it needs to make the MLAT process work for everyone.
“The Korea Fair Trade Commission (KFTC) has, after an extensive investigation, decided to significantly fine, and impose a corrective order on, Qualcomm Incorporated for systematically violating the commitments the company made to license its standards essential patents under fair, reasonable and non-discriminatory (FRAND) terms. FRAND abuse is an anticompetitive danger that poses a serious threat to the future of mobile computing and the Internet of Things.
The App Association welcomes this effort by the Energy and Commerce Committee to modernize areas of the FTC. Representing startups and app companies across the Unites States, we frequently hear frustrations in navigating the regulatory process. Greater clarity and transparency can help small companies develop innovative new solutions that make our lives better.
This is an issue at the government-to-government level. While the tech industry suffers collateral damage, there are ways to continue our work without a disruption in core services.
Where this breakdown between governments will be felt most is with the small companies driving the app industry. Nearly 80 percent of the top-earning app companies are startups and new entrants that don’t possess the resources of large corporations.
In our mobile economy, businesses and consumers rely upon the services app makers provide. With the recent developments at the ECJ, app users are the ones losing out to government discord.
The Department of Justice claims it possesses the authority to access data stored abroad — and belonging to a foreign citizen — as long as it is held by an American company. Furthermore, DOJ has claimed in court that it is reasonable to sacrifice our citizens’ private information to any country in the world so that the U.S. can avoid complying with other nation’s privacy protections. This is simply outrageous and something the American public would view as a betrayal.
For American tech companies to remain global leaders, we must be clear with our trading partners that their citizens can store data in their home country with a U.S. company and retain the privacy protections provided by their sovereign government. The bipartisan, bicameral LEADS Act would clarify the law around DOJ’s extraterritoriality claim and address the international question left unresolved by ECPA. This is important for U.S. companies competing in overseas markets — and even more so for every American who doesn’t want rogue nations to have access to their personal information.
We’re proud to see ACT | The App Association member company AirStrip take to Apple’s big stage today and demo its incredible technology for the Apple Watch. Radically transforming the medical messaging world, patients and physicians can send encrypted, HIPAA-compliant messages with the AirStrip One and AirStrip Sense4Baby apps.
The apps take advantage of the powerful sensors packed inside the Watch, providing doctors with live data on patient vitals – from anywhere. This remote access to data is especially helpful in monitoring newborns.
With AirStrip Sense4Baby on the Apple Watch, an expectant mother and her physician can monitor her heart rate, the fetus’ heart rate, and contractions. The Sense4Baby system allows doctors to monitor mothers-to-be remotely, and give up-to-date information throughout her pregnancy.
AirStrip’s technologies demonstrate how mobile health solutions lead to better care and improved patient outcomes. We look forward to our continued work with this extraordinary company.
We are disappointed in Senator Franken’s response to Apple’s new music offerings. Senator Franken is out of sync when he asserts that the company’s entrance into the music streaming market is anticompetitive. The mobile app marketplace is one of the most vibrant ecosystems in the world, and the introduction of Apple Music does nothing to make it less competitive. Further, while app makers make more money on Apple’s platform, it occupies a relatively small share of the global market.
As a recent article headline pointed out, “Spotify can’t pay an artist. But they can pay 6 different lobbying firms.” The company’s aggressive lobbying seems disingenuous given that Spotify has already crushed competitors like Sony Music Unlimited, Simfy and is making rapid gains on Pandora. Spotify is playing the defenseless ingenue when it’s really a foreign competitor worth billions. We understand that Spotify is upset that they have a new competitor, but that’s a good thing for consumers.
Senator Franken’s focus on the competitiveness question misses the larger goal – protecting consumers. By requiring all apps sold in Apple’s App Store to abide by the same rules, Apple aligns itself with consumers by taking responsibility for the transactions on its platform. Within the Apple ecosystem, if an in-app purchase or subscription doesn’t work, you can go to Apple to get a refund.
Apple provides a safe, secure marketplace for app makers to thrive. With a strong commitment to privacy, customers trust that their payment information and other sensitive data is kept safe and secure. The company’s move into the streaming music market simply allows them to occupy a moderately-sized space alongside other established services. We plan to provide Senator Franken and others with further guidance on this issue.
ACT | The App Association is proud to have nominated Amy Gleason for this honor. Her work and personal experience exemplify the qualities for which Champions of Change and the Precision Medicine Initiative were created. We look forward to our continued work with Amy to help improve patient access to their own critical health data.
ACT | The App Association Executive Director Morgan Reed issued the following statement upon news of FCC Chairman Tom Wheeler’s intention to regulate privacy through the Net Neutrality Order.
FCC Chairman Tom Wheeler announced on Friday his intention to address privacy issues through the net neutrality order. Given the scores of legal challenges the order faces, it is a curious area for the Commission to expend its limited resources. Without a background in privacy enforcement, the Commission risks sowing confusion and uncertainty at a time when capital investment in our communications infrastructure is urgently required.
The wearables explosion has created an incredible opportunity for innovators in the space. These devices not only have the potential to improve users’ fitness and lifestyle – they’re also novel, fun, and expanding beyond the health and wellness market. It’s now up to industry to ensure we’re providing these products in a way that is appropriate and meets consumers’ expectations.
The pending transition is an opportunity for Congress, together with the ICANN community, to provide effective oversight and proper guidance. It’s a final chance to ensure the right accountability mechanisms are in place that will allow small companies to have a more substantial role in ICANN processes.
The booming mobile economy is dominated by startups and small tech companies that are innovating and creating jobs in every state and district of the country. Our members are traveling to D.C. to make the case for a government approach to technology policy that fosters innovation and promotes growth in our communities.
This morning Reps. Tom Marino and Suzan DelBene introduced the Law Enforcement Access to Data Stored Abroad Act (LEADS Act) in the House of Representatives. This legislation shows that there is a bipartisan, bicameral commitment to assure the future of American tech companies that operate abroad.
ACT | The App Association strongly supports the bipartisan introduction of the LEADS Act in the House of Representatives. We have long looked to Reps. Marino and DelBene for leadership on issues facing the tech community and applaud their commitment to improving privacy protections and cross-border data flows.
Cloud computing is essential to global commerce and has revolutionized how we communicate and access content. American technology companies are leaders in cloud services, both at home and abroad. Yet, our European allies are threatening to ban U.S. cloud providers over concerns that their citizens’ data isn’t safe when stored by companies within reach of the U.S. government.
Alert to these concerns, the LEADS Act requires law enforcement to treat digital information the same as physical goods: through warrants and information exchange treaties that comply with the law of the country where it resides. The LEADS Act effectively balances the needs of investigators and prosecutors with individual privacy protections. We thank Reps. Marino and DelBene for their leadership and commitment to find a solution for this critical issue.
Today Senator Orrin Hatch announced he will introduce the Law Enforcement Access to Data Stored Abroad Act (LEADS Act). This legislation is critical for the future of American companies that provide or use cloud services abroad.
“We applaud Senator Hatch for his leadership on issues facing the tech community and are proud to lend strong support for the LEADS Act. The legislation brings long overdue clarity to the treatment of stored communications, and goes a long way to protect individual privacy rights on a global scale.
“Cloud computing is at the heart of the digital revolution, vastly improving the way we handle information technology, conduct business, and consume media. American technology companies are leaders in cloud services, both at home and abroad. Yet, our European allies are threatening to ban American cloud service providers over concerns that their citizens’ data isn’t safe when stored by companies within reach of U.S. law enforcement. The LEADS Act prevents this from happening.
“ACT | The App Association thanks Chairman Goodlatte for his continued commitment to our country’s innovators and entrepreneurs. The Innovation Act is critical to our members and is a major step in dealing with bad actors who abuse the patent system.
“Our members face daily attacks from patent trolls who create fear and uncertainty in the app ecosystem. The Innovation Act includes strong measures to ensure transparency in patent ownership, clarify what is and what is not infringement, and allows defendants to recover legal costs from meritless cases.
Access letter of support: here.
“The App Association is pleased that Congress is strongly committed to the success of mobile health innovation. Our companies are using mobile connectivity from smartphones and tablets to give consumers greater access to healthcare providers and more control over their health information.
“We are committed to providing a safe and secure environment for our consumers with strong privacy protections. Unfortunately, we are working in a regulatory environment that has not kept pace with the rapid growth of technology.
“It is clear from today’s actions that the court is out of step with global privacy concern. This has the potential to undermine the mobile app industry for which the cloud is critical.
“Consumers and business customers around the world are questioning whether data stored by a U.S. company will ever be beyond the reach of the American government. Sadly, today’s District Court decision reinforces those fears and serves as an engraved invitation for our trading partners to discriminate against U.S. companies. It is also a green light for unscrupulous foreign entities seeking to seize the private communications of American companies and citizens living abroad.
“To obtain documents and information for the purpose of enforcing laws, governments use a mutual legal assistance treaties (MLAT) to facilitate that exchange. However, in this case, the U.S. government is trying to circumvent that process by saying a warrant issued in the U.S. is sufficient to make Microsoft copy that information in Ireland and turn it over to authorities in the U.S.
“American companies now face an international backlash as a result of the court’s decision. The European Union and countries around the world are considering measures to prevent U.S. businesses from providing cloud services within their borders. Nearly every app maker in the world sells their products through cloud services provided by Amazon, Apple, Google, and Microsoft. Without U.S. cloud providers, there would be no app stores leaving our $68 billion industry imperiled. If access to foreign markets is restricted, revenues will fall and hundreds of thousands of jobs will be affected.
“Today’s action by the FTC gives platforms and app makers more guidance in areas where confusion has persisted. With the Commission now providing a better explanation of the regulatory landscape, we expect innovation and investment in children’s education apps to grow markedly.
The FTC guidance specifically includes improved methods of verifiable parental consent, definitions involving internet operator, and clarifications around the liability exposure of platforms.
“Today’s draft guidance continues the FDA’s strong push towards innovation-friendly policies. This clarification will help provide a clearer path for new entrants to the field.
ACT | The App Association executive director Morgan Reed issued the following statement in response to today’s Supreme Court ruling in Riley v. California requiring a warrant for law enforcement access to smartphone data of an arrested suspect.
Today’s Supreme Court ruling establishes critical privacy protection standards for mobile device users. Consumers will have confidence in the security of their smartphones and tablets knowing that law enforcement needs a warrant to access their data.
Today’s decision also provides a clear indication of where the court sees the boundaries of government surveillance. The tech industry is united behind legislation to provide a similar warrant standard to all online data. Congress should not dither while the opportunity exists to extend these privacy protections to all users.
ACT | The App Association executive director Morgan Reed issued the following statement on today’s Supreme Court decision on Alice Corporation Pty. Ltd. v. CLS Bank International addressing the patentability of abstract ideas.
Today’s Supreme Court decision is good news for software patents. It clarifies what is patentable, removes some of the uncertainty, and confirmed what we all know to be true: abstract business methods don’t deserve patent protection. Today’s decision reaffirms the validity of software patents, which are a valuable tool for small company innovators.
ACT | The App Association executive director Morgan Reed issued the following statement on today’s WWDC event where Apple unveils its new line of products for the coming year. A licensed iOS developer, Morgan Reed is the leading authority on the intersection of the app industry and government with a particular focus on health and education. Reed is also the Legal and Policy Chair of the mobile health IT organization mHIMSS and serves as education apps advisor to the 1700 members of Moms With Apps.
ACT | The App Association executive director Morgan Reed issued the following statement on Apple’s announcement of its new HealthKit. Reed also serves as the Legal and Policy Chair of the mobile health IT organization mHIMSS.
“ACT | The App Association applauds Senators Lee and Leahy, and Congressmen Polis and Yoder for their commitment to data privacy. When ECPA was drafted in 1986, email was hardly in use and the World Wide Web – which we now recognize as the public internet – was still five years away. Back when people didn’t store data online, the authors thought it was reasonable to search electronic communications after 180 days without probable cause. But today we store financial records, personal data, and private information electronically, and ECPA no longer meets consumers’ expectations of privacy.
ACT | The App Association president Jonathan Zuck issued a statement on today’s news that Senate Judiciary Committee Chairman Patrick Leahy has been moved patent reform off the agenda.
ACT | The App Association is disappointed with the news that patent reform is no longer on the Senate agenda. It is regrettable that the inability of Congress to advance widely supported legislation will expose many small companies to predatory litigation. Patent trolls use bogus patents to shakedown startups and smaller companies with limited legal resources. We must put an end to the business model that is based on abusing the patent system. Failing to act on this issue may profoundly impact the innovation we are seeing through small businesses and new entrants in the mobile economy.
ACT | The App Association executive director Morgan Reed issued the following statement in response to the FTC enforcement action against mobile app Snapchat.
ACT has been closely monitoring FTC’s enforcement of privacy violations in the mobile app ecosystem. It is good for the industry when consumers have confidence that their personal information is safe. Effective enforcement actions against bad actors provide a disincentive to bad behavior.
It was surprising, however, when the FTC levied the same punishment against Snapchat that others received after committing violations of a far greater scale: twenty years of audits, but no admission of wrongdoing. This cookie cutter solution begs the question: what is the FTC hoping to achieve?
The Commission may not be delivering its intended message. Snapchat’s privacy and security shortcomings don’t measure up to the repeated violations of industry giants. Yet, when the punishment rarely changes and never seems to fit the offense, the likeliest outcome is that emerging tech companies will approach FTC enforcement as nothing more than the cost of doing business.
Association for Competitive Technology executive director Morgan Reed issued the following statement in response to today’s request by six Senators for more clarity on FDA’s regulation of mobile medical apps. Earlier this year, Mr. Reed toured the country speaking to app makers and venture capitalists about opportunities in the mHealth field.
“We are pleased to see the House pass the STEM Education Act of 2015 with overwhelming bipartisan support. The bill adds computer science to the definition of STEM education for federal purposes, meaning federal education programs will be better aligned with the needs of the booming tech industry in the United States.
“FCC Chairman Wheeler has publicly stated that’s a question of when, not if, the transition to IP networks will occur. Today’s FCC decision is an indication that this transition is coming soon and the app industry is encouraged by this development.
“Mobile apps and smartphones have leveraged wireless data to change the way we communicate and access information. We are now seeing new innovations in mobile medicine enabled by advancing wireless technology that allow users to better manage chronic disease and interact with their physicians. Dependable and more robust communications networks are essential for patients to benefit from these new advances in medical technology.
“The tech industry has been deeply troubled by revelations of expansive government surveillance. NSA attempts to disable security measures protecting the communications infrastructure of American companies is a threat to our consumers in the U.S. and abroad. International response to these actions puts our access to global markets at risk.
“The nation’s law enforcement and intelligence services should implement transparency measures and come clean with citizens around the world about the requests it makes of American tech companies. The next five years of innovation in the mobile marketplace will require significantly greater consumer trust than the last five years. Our future depends on consumer confidence in cloud services.
“Schools across the country are taking advantage of cloud-based services that allow teachers and administrators to better serve students and their families. Homework can be assigned and completed online where it is unlikely to be eaten by the family dog. Using cloud services, parents and teachers can better monitor their students’ progress to help them reach higher academic achievement.
“ACT’s members, specifically those in the Moms with Apps Know What’s Inside™ program, continue to look to the FTC’s FAQs for guidance when building innovative and cutting-edge technologies. We’re thankful that the FTC continues to listen to the concerns of our membership and are hopeful for additional updates that clarify COPPA for app developers around the world.
“We’re pleased the FTC took steps to define actual knowledge. This guidance provides much needed clarity for both operators and third party service providers wanting to comply with the law that went into effect on July 1. In addition, the FTC acknowledged the industry’s work on developing technological measures that could be used to signal an app is child directed, thereby allowing third party services to manage data differently.
“It’s unfortunate, however, that the FTC still seeks to deputize third parties as COPPA cops. Under this guidance, if a third party operator is presented with screenshots purporting to show that an application is directed at children, but the app maker disputes this claim, the FTC is requiring the third party to perform as judge, jury and ultimately executioner. We believe determining child directedness is the responsibility of the operator and, ultimately, the FTC. We will continue to work on this issue, and are hopeful that other solutions mentioned in the FAQ will obviate the need to turn third party operators into the police.
Association for Competitive Technology President Jonathan Zuck issued the following statement accompanying the tech companies’ letter to House Judiciary Members on the Innovation Act.
The undersigned companies applaud the introduction of the Innovation Act (H.R. 3309) for responding to the need to improve the patent system. While we support the intent of the bill, we are concerned that the proposed extension of the transitional program for covered business method (CBM) patents will have a significant and negative impact on small technology companies.
Morgan Reed, Legal and Policy Chair of the world’s largest mobile health organization, mHIMSS, today issued the following statement in response to the FDA’s issuance of its final mobile health guidelines.
“We’ve long awaited the FDA’s issuance of final guidelines affecting mobile medical apps. Regulatory certainty is essential for the mobile health industry to realize its potential. Many innovative apps that use mobile devices to help users monitor their health and bring patients closer to caregivers have been shelved until developers and investors better understand FDA’s plans to regulate. We are hopeful that today’s announcement provides the clarity we seek.
“Serving as executive director within the world’s leading mobile app organization while chairing the Legal and Policy Task Force at the world’s largest mobile health organization provides an excellent opportunity to advance the priorities of the mobile health community. I will marshall the resources of ACT and mHIMSS to explore the details of the FDA guidance and ensure developers are well informed about their requirements. We will also continue to work with the FDA to assist with technical expertise as our industry continues to grow and innovate.
“App developers are working to bring new products to market to take advantage of the latest features in Apple’s newest iPhones. The iPhone 5S includes a new chipset and features that makes possible an incredible range of mobile services. The M7 chip and CoreMotion API will usher in a wave of innovation in the mobile health marketplace. Measuring movement in an entirely new way, the M7 chip uses contextual awareness to monitor a wide range of user activities. The potential for this device to bring patients closer to physicians while providing detailed measurements of vital statistics and activity will have a profound impact on health care delivery in the United States. Mobile health app makers are excited about the opportunities this new technology offers.
“The iPhone 5S will also provide users with an added level of security. Touch ID fingerprint sensor will measure sub-epidermal skin layers to verify user identity and ensure that App Store purchases are made by account owners. This latest feature adds to the confidence that iPhone users have long had regarding the security of their data on the iOS platform.
Executive Director of the Association for Competitive Technology, Morgan Reed, issued the following statement welcoming the news that Microsoft is acquiring the business and mobile units of Nokia. While Nokia will retain its networking services with Siemens, its mobile mapping product Here, and its patent portfolio, Microsoft will acquire the Finnish company’s mobile devices and services businesses.
“Microsoft’s proposed acquisition is great news for app development companies. It will provide developers the opportunity to market products and services to another integrated mobile platform with a rapidly expanding user base. ACT’s members are focused on enterprise, health, education, and government – lucrative sectors of the app economy. Products developed for these areas require a mobile platform that consumers trust with the safety and security of their data. This latest effort is aimed at those important marketplace developers.
Association for Competitive Technology Executive Director Morgan Reed today released the following statement in response to recent media reports that Apple’s new iTunes service options will allow children under the age of thirteen to sign up for education accounts.
“The new update to iTunes allowing preteens to sign up for education accounts will dramatically improve the learning environment for schoolchildren,” said ACT Executive Director Morgan Reed. “The interactivity of the iPad’s touchscreen keeps children engaged in the classroom. Its intuitive interface is simple for even the youngest students to grasp. A curated education platform for kids is the responsible way to allow those under thirteen to benefit from these learning tools.
“Requiring verifiable parental consent means that parents are able to give their children access to the resources of Apple devices with a clear understanding of what data Apple collects from their children and how it is used. This allows classroom instruction to be more productive while providing a framework for the growing education app marketplace.
ACT has witnessed the success of tablet education firsthand as over 1500 of its members have combined to form Moms With Apps. Working within ACT, this group has spearheaded the Know What’s Inside™ initiative.
Jay McPhail, Riverside Unified’s director of instructional technology, said 90.5 percent of students using iPads are testing as proficient or above on benchmark tests, compared with 60 percent in other classes.
At the end of the school year, 83% of students read above their grade level using the iPads in the classroom. This was a dramatic increase from the previous year when that figure was 39% without iPads.
Pilot staff reported that the use of the iTechnology in their classrooms has been highly successful. Found students to be more motivated and on task with the iPad. Most students were easily able to access the iPad, even those who experience difficulty with physically accessing other tools.
– Carrie F. De La Cruz, Ph.D.
“It’s a bit surprising that the FTC sought to pursue a case against a company that had already offered a refund to every consumer who registered a complaint. This agreement clarifies that the modifications Apple made to its in-app transaction process ensures greater consumer awareness at the moment of purchase. We respect the FTC’s ability to go after bad actors, and hope the Commissioners will focus their enforcement action on those who are not providing the level of transparency consumers require.
“In light of today’s action, ACT announces that it will provide parents, teachers, and healthcare professionals with resources about in-app purchases through Moms With Apps. Apple already has many features available that allow for parental control when it comes to in-app purchases and other app features. Knowing how to use these restrictions puts parents in control of what their child can and cannot do on a device. Education on device restrictions, parental controls, and app transparency will help parents understand the rapidly changing innovations in the technology space.

References: v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v.