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Senate Majority Whip John Cornyn (R-Texas) on Tuesday said the upper chamber is unlikely to move on a stalled cybersecurity bill before the August recess.Senate Republican leaders, including Cornyn, had been angling to get the bill — known as the Cybersecurity Information Sharing Act (CISA) — to the floor this month.ADVERTISEMENTBut Cornyn said that there is simply too much of a time crunch in the remaining legislative days to get to the measure, intended to boost the public-private exchange of data on hackers.  “I’m sad to say I don’t think that’s going to happen,” he told reporters off the Senate floor. “The timing of this is unfortunate.”“I think we’re just running out time,” he added.An aide for Senate Majority Leader Mitch McConnell (R-Ky.) said he had not committed to a specific schedule after the upper chamber wraps up work in the coming days on a highway funding bill.Cornyn said Senate leadership will look to move on the bill sometime after the legislature returns in September from its month-long break.

The move would delay yet again what’s expected to be a bruising floor fight about government surveillance and digital privacy rights.“[CISA] needs a lot of work,” Sen. Patrick Leahy (D-Vt.), who currently opposes the bill, told The Hill on Tuesday. “And when it comes up, there’s going to have to be a lot of amendments otherwise it won’t pass.”Despite industry support, broad bipartisan backing, and potentially even White House support, CISA has been mired in the Senate for months over privacy concerns.Civil liberties advocates worry the bill would create another venue for the government’s intelligence wing to collect sensitive data on Americans only months after Congress voted to rein in surveillance powers.But industry groups and many lawmakers insist a bolstered data exchange is necessary to better understand and counter the growing cyber threat. Inaction will leave government and commercial networks exposed to increasingly dangerous hackers, they say.Sen. Ron Wyden (D-Ore.), who has been leading the chorus opposing the bill, rejoiced Tuesday after hearing of the likely delay.

“I really want to commend the advocates for the tremendous grassroots effort to highlight the fact that this bill was badly flawed from a privacy standpoint,” he told The Hill.Digital rights and privacy groups are blanketing senators’ offices this week with faxes and letters in an attempt to raise awareness of bill’s flaws.“Our side has picked up an enormous amount of support,” Wyden said.Wyden was the only senator to vote against CISA in the Senate Intelligence Committee. The panel approved the measure in March by a 14-1 vote and it looked like CISA was barrelling toward the Senate floor.After the House easily passed its companion pieces of legislation, CISA’s odds only seemed better.But the measure got tied up in the vicious debate over the National Security Agency's (NSA) spying powers that played out throughout April and May.“It’s like a number of these issues, in the committee the vote was 14-1, everyone says, ‘oh, Ron Wyden opposes another bipartisan bill,’” Wyden said Tuesday. “And I said, ‘People are going to see that this is a badly flawed bill.’”

David Mao, the Librarian of Congress, has issued new rules pertaining to exemptions to the Digital Millennium Copyright Act (DMCA) after a 3 year battle that was expedited in the wake of the Volkswagen scandal.

Opposition to this new decision is coming from the Environmental Protection Agency (EPA) and the auto industry because the DMCA prohibits “circumventing encryption or access controls to copy or modify copyrighted works.” For example, GM “claimed the exemption ‘could introduce safety and security issues as well as facilitate violation of various laws designed specifically to regulate the modern car, including emissions, fuel economy, and vehicle safety regulations’.” The exemption in question is in Section 1201 which forbids the unlocking of software access controls which has given the auto industry the unique ability to “threaten legal action against anyone who needs to get around those restrictions, no matter how legitimate the reason.” Journalist Nick Statt points out that this provision “made it illegal in the past to unlock your smartphone from its carrier or even to share your HBO Go password with a friend. It’s designed to let corporations protect copyrighted material, but it allows them to crackdown on circumventions even when they’re not infringing on those copyrights or trying to access or steal proprietary information.”

Kit Walsh, staff attorney for the Electronic Frontier Foundation (EFF), explained that the “‘access control’ rule is supposed to protect against unlawful copying. But as we’ve seen in the recent Volkswagen scandal—where VW was caught manipulating smog tests—it can be used instead to hide wrongdoing hidden in computer code.” Walsh continued: “We are pleased that analysts will now be able to examine the software in the cars we drive without facing legal threats from car manufacturers, and that the Librarian has acted to promote competition in the vehicle aftermarket and protect the long tradition of vehicle owners tinkering with their cars and tractors. The year-long delay in implementing the exemptions, though, is disappointing and unjustified. The VW smog tests and a long run of security vulnerabilities have shown researchers and drivers need the exemptions now.” As part of the new changes, gamers can “modify an old video game so it doesn’t perform a check with an authentication server that has since been shut down” and after the publisher cuts of support for the video game.

While there is considerable telecom hubris regarding the 5G rollout and increasing speculation that the next generation of wireless is not yet ready for Prime Time, the industry continues to make promises to Rural America that it has no intention of fulfilling. Decades-long promises to deliver digital Utopia to rural America by T-Mobile, Verizon and AT&T have never materialized.  

In 2017, the USDA reported that 29% of American farms had no internet access. The FCC says that 14 million rural Americans and 1.2 million Americans living on tribal lands do not have 4G LTE on their phones, and that 30 million rural residents do not have broadband service compared to 2% of urban residents.  It’s beginning to sound like a Third World country. Despite an FCC $4.5 billion annual subsidy to carriers to provide broadband service in rural areas, the FCC reports that ‘over 24 million Americans do not have access to high-speed internet service, the bulk of them in rural area”while a  Microsoft Study found that  “162 million people across the US do not have internet service at broadband speeds.” At the same time, only three cable companies have access to 70% of the market in a sweetheart deal to hike rates as they avoid competition and the FCC looks the other way.  The FCC believes that it would cost $40 billion to bring broadband access to 98% of the country with expansion in rural America even more expensive.  While the FCC has pledged a $2 billion, ten year plan to identify rural wireless locations, only 4 million rural American businesses and homes will be targeted, a mere drop in the bucket. Which brings us to rural mapping: Since the advent of the digital age, there have been no accurate maps identifying where broadband service is available in rural America and where it is not available.  The FCC has a long history of promulgating unreliable and unverified carrier-provided numbers as the Commission has repeatedly ‘bungled efforts to produce accurate broadband maps” that would have facilitated rural coverage. During the Senate Commerce Committee hearing on April 10th regarding broadband mapping, critical testimony questioned whether the FCC and/or the telecom industry have either the commitment or the proficiency to provide 5G to rural America.  Members of the Committee shared concerns that 5G might put rural America further behind the curve so as to never catch up with the rest of the country

The recent publication of a leaked video demonstrating American security firm Raytheon’s social media mining tool RIOT (Rapid Information Overlay Technology) has rightly incensed individuals and online privacy groups. In a nutshell, RIOT – already shared with US government and industry as part of a joint research and development effort in 2010 – uses social media traces to profile people’s activities, map their contacts, and predict their future activities. Yet the most surprising thing isn’t how RIOT works, but that the information it mines is what we’ve each already shared publicly.

All existing data sharing agreements between Europe and the US should be revoked, and US web site providers should prominently inform European citizens that their data may be subject to government surveillance, according to the recommendations of a briefing report for the European Parliament. The report was produced in response to revelations about the US National Security Agency (NSA) snooping on internet traffic, and aims to highlight the subsequent effect on European Union (EU) citizens' rights.

The report warns that EU data protection authorities have failed to understand the “structural shift of data sovereignty implied by cloud computing”, and the associated risks to the rights of EU citizens. It suggests “a full industrial policy for development of an autonomous European cloud computing capacity” should be set up to reduce exposure of EU data to NSA surveillance that is undertaken by the use of US legislation that forces US-based cloud providers to provide access to data they hold.

To put pressure on the US government, the report recommends that US websites should ask EU citizens for their consent before gathering data that could be used by the NSA. “Prominent notices should be displayed by every US web site offering services in the EU to inform consent to collect data from EU citizens. The users should be made aware that the data may be subject to surveillance by the US government for any purpose which furthers US foreign policy,” it said. “A consent requirement will raise EU citizen awareness and favour growth of services solely within EU jurisdiction. This will thus have economic impact on US business and increase pressure on the US government to reach a settlement.”

Now the processing power is in the cloud, and very sophisticated applications, from e-mail to tools you need to run a business, can be run by logging onto a Web site, not from pre-installed software. In addition, the way we work (and play) has shifted from P.C.’s to mobile devices—where Android and Apple’s iOS each outsell Windows by more than 10 to 1. Why develop software to run on Windows if no one is using Windows? Why use Windows if nothing you want can run on it? The virtuous circle has turned vicious.

A new study says that the U.S. tech industry is likely to lose more than $35 billion from foreign customers by 2016 because of concerns over government surveillance.“In short, foreign customers are shunning U.S. companies,” the authors of a new study from the Information Technology and Innovation Foundation write.ADVERTISEMENT“The U.S. government’s failure to reform many of the NSA’s surveillance programs has damaged the competitiveness of the U.S. tech sector and cost it a portion of the global market share,” they said.The think tank’s report found that the cost to the tech sector associated with ongoing concerns over surveillance programs run out of the U.S. was likely to “far exceed” $35 billion by 2016, an earlier estimate set by the group.

The group said that lawmakers must enact additional reforms to surveillance policy if they wish to help the tech sector regain the trust of foreign customers. That includes opposing “backdoors,” which allow law enforcement to access otherwise encrypted data, and signing off on trade agreements, including the controversial Trans-Pacific Partnership, that “ban digital protectionism.”The study’s authors found that the revelations about broad U.S. surveillance programs acted as a justification for foreign policymakers to enact protectionist policies aimed at aiding their own domestic technology sectors.Foreign companies have also used the information about U.S. surveillance programs to their advantage.“Some European companies have begun to highlight where their digital services are hosted as an alternative to U.S. companies,” the authors write.

American companies, they found, have lost contracts to foreign competitors over fears about mass surveillance.Earlier this month, President Obama signed the USA Freedom Act, a bill that reformed the three Patriot Act provisions that authorized the bulk, warrantless collection of Americans’ phone records. The bill was widely supported by technology companies, including giants like Apple and Google.

When Israeli Prime Minister Benjamin Netanyahu met with Google chairman Eric Schmidt on Tuesday afternoon, he boasted about Israel’s “robust hi-tech and cyber industries.” According to The Jerusalem Post, “Netanyahu also noted that ‘Israel was making great efforts to diversify the markets with which it is trading in the technological field.'” Just how diversified and developed Israeli hi-tech innovation has become was revealed the very next morning, when the Russian cyber-security firm Kaspersky Labs, which claims more than 400 million users internationally, announced that sophisticated spyware with the hallmarks of Israeli origin (although no country was explicitly identified) had targeted three European hotels that had been venues for negotiations over Iran’s nuclear program.

Wednesday’s Wall Street Journal, one of the first news sources to break the story, reported that Kaspersky itself had been hacked by malware whose code was remarkably similar to that of a virus attributed to Israel. Code-named “Duqu” because it used the letters DQ in the names of the files it created, the malware had first been detected in 2011. On Thursday, Symantec, another cyber-security firm, announced it too had discovered Duqu 2 on its global network, striking undisclosed telecommunication sites in Europe, North Africa, Hong Kong, and  Southeast Asia. It said that Duqu 2 is much more difficult to detect that its predecessor because it lives exclusively in the memory of the computers it infects, rather than writing files to a drive or disk. The original Duqu shared coding with — and was written on the same platform as — Stuxnet, the computer worm  that partially disabled enrichment centrifuges in Iranian nuclear power plants, according to a 2012 report in The New York Times. Intelligence and military experts said that Stuxnet was first tested at Dimona, a nuclear-reactor complex in the Negev desert that houses Israel’s own clandestine nuclear weapons program. While Stuxnet is widely believed to have been a joint Israeli-U.S. operation, Israel seems to have developed and implemented Duqu on its own.

Coding of the spyware that targeted two Swiss hotels and one in Vienna—both sites where talks were held between the P5+1 and Iran—so closely resembled that of Duqu that Kaspersky has dubbed it “Duqu 2.” A Kaspersky report contends that the new and improved Duqu would have been almost impossible to create without access to the original Duqu code. Duqu 2’s one hundred “modules” enabled the cyber attackers to commandeer infected computers, compress video feeds  (including those from hotel surveillance cameras), monitor and disrupt telephone service and Wi-Fi, and steal electronic files. The hackers’ penetration of computers used by the front desk would have allowed them to determine the room numbers of negotiators and delegation members. Duqu 2 also gave the hackers the ability to operate two-way microphones in the hotels’ elevators and control their alarm systems.