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The United States on Friday criticized proposals to build a European communication network to avoid emails and other data passing through the United States, warning that such rules could breach international trade laws. In its annual review of telecommunications trade barriers, the office of the U.S. Trade Representative said impediments to cross-border data flows were a serious and growing concern.It was closely watching new laws in Turkey that led to the blocking of websites and restrictions on personal data, as well as calls in Europe for a local communications network following revelations last year about U.S. digital eavesdropping and surveillance."Recent proposals from countries within the European Union to create a Europe-only electronic network (dubbed a 'Schengen cloud' by advocates) or to create national-only electronic networks could potentially lead to effective exclusion or discrimination against foreign service suppliers that are directly offering network services, or dependent on them," the USTR said in the report.

Germany and France have been discussing ways to build a European network to keep data secure after the U.S. spying scandal. Even German Chancellor Angela Merkel's cell phone was reportedly monitored by American spies.The USTR said proposals by Germany's state-backed Deutsche Telekom to bypass the United States were "draconian" and likely aimed at giving European companies an advantage over their U.S. counterparts.Deutsche Telekom has suggested laws to stop data traveling within continental Europe being routed via Asia or the United States and scrapping the Safe Harbor agreement that allows U.S. companies with European-level privacy standards access to European data. (www.telekom.com/dataprotection)"Any mandatory intra-EU routing may raise questions with respect to compliance with the EU's trade obligations with respect to Internet-enabled services," the USTR said. "Accordingly, USTR will be carefully monitoring the development of any such proposals."

U.S. tech companies, the leaders in an e-commerce marketplace estimated to be worth up to $8 trillion a year, have urged the White House to undertake reforms to calm privacy concerns and fend off digital protectionism.

US Trade Representative Michael Froman is drawing fire from Congressional Democrats for the Obama adminstration’s continued imposition of secrecy surrounding the Trans-Pacific Parternship. (Photo: AP file) Democratic lawmaker says tightly-controlled briefings on Trans-Pacific Partnership deal are aimed at keeping US constituents ignorant about what’s at stake Lawmakers in Congress who remain wary of the Trans-Pacific Partnership (TPP) trade agreement are raising further objections this week to the degree of secrecy surrounding briefings on the deal, with some arguing that the main reason at least one meeting has been registered “classified” is to help keep the American public ignorant about giveaways to corporate interests and its long-term implications.

Among its other critics, Sen. Elizabeth Warren has slammed the idea of ISDS provisions as a surrender of democratic ideals to corporate interests. According to Warren, ISDS would simply “tilt the playing field in the United States further in favor of big multinational corporations.” By having unchallenged input on secretive TPP talks, Warren argued last month, these large companies and financial interests “are increasingly realizing this is an opportunity to gut U.S. regulations they don’t like.” According to Grayson, putting Wednesday’s ISDS briefing in a classified setting “is part of a multi-year campaign of deception and destruction. Why do we classify information? It’s to keep sensitive information out of the hands of foreign governments. In this case, foreign governments already have this information. They’re the people the administration is negotiating with. The only purpose of classifying this information is to keep it from the American people.”

“I’m not happy about it,” Rep. Alan Grayson (D-Fla.) told the Huffington Post, referring to the briefing with Froman and Labor Secretary Thomas Perez on Wednesday. The meeting—focused on the section of the TPP that deals with the controversial ‘Investor-State Dispute Settlement’ (ISDS) mechanism—has been labeled “classified,” so that lawmakers and any of their staff who attend will be barred, under threat of punishment, of revealing what they learn with constituents or outside experts. According to the Huffington Post: ISDS has been part of U.S. free trade agreements since NAFTA was signed into law in 1993, and has become a particularly popular tool for multinational firms over the past few years. But while the topic remains controversial, particularly with Democrats, many critics of the administration emphasize that applying national security-style restrictions on such information is an abuse of the classified information system. An additional meeting earlier on Wednesday on currency manipulation with Froman and Treasury Secretary Jack Lew is not classified.

Europe’s highest court on Tuesday struck down an international agreement that allowed companies to move digital information like people’s web search histories and social media updates between the European Union and the United States. The decision left the international operations of companies like Google and Facebook in a sort of legal limbo even as their services continued working as usual.The ruling, by the European Court of Justice, said the so-called safe harbor agreement was flawed because it allowed American government authorities to gain routine access to Europeans’ online information. The court said leaks from Edward J. Snowden, the former contractor for the National Security Agency, made it clear that American intelligence agencies had almost unfettered access to the data, infringing on Europeans’ rights to privacy. The court said data protection regulators in each of the European Union’s 28 countries should have oversight over how companies collect and use online information of their countries’ citizens. European countries have widely varying stances towards privacy.

Data protection advocates hailed the ruling. Industry executives and trade groups, though, said the decision left a huge amount of uncertainty for big companies, many of which rely on the easy flow of data for lucrative businesses like online advertising. They called on the European Commission to complete a new safe harbor agreement with the United States, a deal that has been negotiated for more than two years and could limit the fallout from the court’s decision.

Some European officials and many of the big technology companies, including Facebook and Microsoft, tried to play down the impact of the ruling. The companies kept their services running, saying that other agreements with the European Union should provide an adequate legal foundation.But those other agreements are now expected to be examined and questioned by some of Europe’s national privacy watchdogs. The potential inquiries could make it hard for companies to transfer Europeans’ information overseas under the current data arrangements. And the ruling appeared to leave smaller companies with fewer legal resources vulnerable to potential privacy violations.

EU-U.S. Privacy Shield Program Overview The EU-U.S. Privacy Shield Framework was designed by the U.S. Department of Commerce and European Commission to provide companies on both sides of the Atlantic with a mechanism to comply with EU data protection requirements when transferring personal data from the European Union to the United States in support of transatlantic commerce. On July 12, the European Commission deemed the Privacy Shield Framework adequate to enable data transfers under EU law (see the adequacy determination). The Privacy Shield program, which is administered by the International Trade Administration (ITA) within the U.S. Department of Commerce, enables U.S.-based organizations to join the Privacy Shield Framework in order to benefit from the adequacy determination. To join the Privacy Shield Framework, a U.S.-based organization will be required to self-certify to the Department of Commerce (via this website) and publicly commit to comply with the Framework’s requirements. While joining the Privacy Shield Framework is voluntary, once an eligible organization makes the public commitment to comply with the Framework’s requirements, the commitment will become enforceable under U.S. law. All organizations interested in joining the Privacy Shield Framework should review its requirements in their entirety. To assist in that effort, Commerce’s Privacy Shield Team has compiled resources and addressed frequently asked questions below. ResourcesKey New Requirements for Participating Organizations How to Join the Privacy ShieldPrivacy Policy FAQs Frequently Asked Questions

Much has been written, at least in the alternative media, about the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), two multilateral trade treaties being negotiated between the representatives of dozens of national governments and armies of corporate lawyers and lobbyists (on which you can read more here, here and here). However, much less is known about the decidedly more secretive Trade in Services Act (TiSA), which involves more countries than either of the other two. At least until now, that is. Thanks to a leaked document jointly published by the Associated Whistleblowing Press and Filtrala, the potential ramifications of the treaty being hashed out behind hermetically sealed doors in Geneva are finally seeping out into the public arena.

The leaked documents confirm our worst fears that TiSA is being used to further the interests of some of the largest corporations on earth (…) Negotiation of unrestricted data movement, internet neutrality and how electronic signatures can be used strike at the heart of individuals’ rights. Governments must come clean about what they are negotiating in these secret trade deals. Fat chance of that, especially in light of the fact that the text is designed to be almost impossible to repeal, and is to be “considered confidential” for five years after being signed. What that effectively means is that the U.S. approach to data protection (read: virtually non-existent) could very soon become the norm across 50 countries spanning the breadth and depth of the industrial world.

If signed, the treaty would affect all services ranging from electronic transactions and data flow, to veterinary and architecture services. It would almost certainly open the floodgates to the final wave of privatization of public services, including the provision of healthcare, education and water. Meanwhile, already privatized companies would be prevented from a re-transfer to the public sector by a so-called barring “ratchet clause” – even if the privatization failed. More worrisome still, the proposal stipulates that no participating state can stop the use, storage and exchange of personal data relating to their territorial base. Here’s more from Rosa Pavanelli, general secretary of Public Services International (PSI):

Congress is about to introduce a bill to fast track a secret deal that could lead to global censorship. It’s called the Trans-Pacific Partnership (TPP). We think Internet users everywhere should have a say in decisions that affect the Internet — but if “Fast Track” legislation passes, there is no chance that the public will see the text before the deal is approved. Join the Internet Vote on April 23rd and let’s make it clear to DC how we’re voting: against Fast Track and against Internet censorship. (Learn More)

Senator Ron Wyden may hold the future of the Internet in his hands. Let's call on him to fix the secretive process that has led to trade deals carrying extreme copyright and digital privacy provisions.

As Senate Finance Committee Chair, Senator Wyden is under pressure to fast track trade agreements like the Trans-Pacific Partnership (TPP) agreement. But he has another option: to finally bring these deals out into the open. We call on him now to continue to stand up to big private interests and help ensure that our digital rights are protected.

Talks on the TPP, which would create a massive free trade zone encompassing some 40 percent of global output, have long been stalled due partly to bickering between Japan and the United States -- the biggest economies in the TPP framework -- over removal of barriers for agricultural and automotive trade. The biggest sticking point has been Tokyo's proposed exceptions to tariff cuts on its five sensitive farm product categories -- rice, wheat, beef and pork, dairy products and sugar -- and safeguard measures it wants to introduce should imports of the products surge under the TPP, which aims for zero tariffs in principle. It is uncertain how much closer the two sides can move given that their recent working-level talks saw little progress, negotiation sources said.

A summit meeting of the Asia-Pacific Economic Cooperation forum scheduled for November in Beijing that Obama and leaders from other TPP countries are slated to join is seen as an occasion for concluding the TPP talks, which have entered their fifth year. But the odds on an agreement depend on whether Japan and the United States can bridge their gaps before that.

Hiroshi Oe, Japan's deputy chief TPP negotiator, has admitted that talks with his counterpart Wendy Cutler, Froman's top deputy, earlier this month in Tokyo made very little progress. One negotiation source said the hurdle for solving the outstanding bilateral problems is "extremely high," suggesting it is still premature to bring the talks to the ministerial level. Amari himself had been reluctant to hold a one-on-one meeting with Froman with the working-level negotiations failing to see enough progress. But he apparently decided to ramp up efforts in response to strong calls from Washington for arranging a meeting with Froman, who has said the two sides are "now at a critical juncture in this negotiation."

Offering a first glimpse of the secret 12-nation “trade” deal in its final form—and fodder for its growing ranks of opponents—WikiLeaks on Friday published the final negotiated text for the Trans-Pacific Partnership (TPP)’s Intellectual Property Rights chapter, confirming that the pro-corporate pact would harm freedom of expression by bolstering monopolies while and injure public health by blocking patient access to lifesaving medicines. The document is dated October 5, the same day it was announced in Atlanta, Georgia that the member states to the treaty had reached an accord after more than five years of negotiations. Aside from the WikiLeaks publication, the vast majority of the mammoth deal’s contents are still being withheld from the public—which a WikiLeaks press statement suggests is a strategic move by world leaders to forestall public criticism until after the Canadian election on October 19. Initial analyses suggest that many of the chapter’s more troubling provisions, such as broader patent and data protections that pharmaceutical companies use to delay generic competition, have stayed in place since draft versions were leaked in 2014 and 2015. Moreover, it codifies a crackdown on freedom of speech with rules allowing widespread internet censorship.

Today, 13 November 2013, WikiLeaks released the secret negotiated draft text for the entire TPP (Trans-Pacific Partnership) Intellectual Property Rights Chapter. The TPP is the largest-ever economic treaty, encompassing nations representing more than 40 per cent of the world’s GDP. The WikiLeaks release of the text comes ahead of the decisive TPP Chief Negotiators summit in Salt Lake City, Utah, on 19-24 November 2013. The chapter published by WikiLeaks is perhaps the most controversial chapter of the TPP due to its wide-ranging effects on medicines, publishers, internet services, civil liberties and biological patents. Significantly, the released text includes the negotiation positions and disagreements between all 12 prospective member states.

The TPP is the forerunner to the equally secret US-EU pact TTIP (Transatlantic Trade and Investment Partnership), for which President Obama initiated US-EU negotiations in January 2013. Together, the TPP and TTIP will cover more than 60 per cent of global GDP. Read full press release here Download the full secret TPP treaty IP chapter as a PDF here WikiLeaks Release of Secret Trans-Pacific Partnership Agreement (TPP) Advanced Intellectual Property Chapter for All 12 Nations with Negotiating Positions (August 30 2013 consolidated bracketed negotiating text)

The Supreme Court granted a petition for writ of certiorari on Dec. 6 in a case challenging software method and system patent eligibility under 35 U.S.C. §101, in Alice Corp. Pty. Ltd. v. CLS Bank Int'l ( U.S., No. 13-298, review granted, 12/6/13).The question presented by the patent owner in the case is:Whether claims to computer-implemented inventions--including claims to systems and machines, processes, and items of manufacture--are directed to patent-eligible subject matter within the meaning of 35 U.S.C. §101 as interpreted by this Court? 

The CLS Bank case is controversial because the U.S. Court of Appeals for the Federal Circuit, sitting en banc, failed to reach enough agreement on patent eligibility of computer-related claims to supply precedential jurisprudence. CLS Bank Int'l v. Alice Corp. Pty. Ltd., 717 F.3d 1269, 2013 BL 124940, 106 U.S.P.Q.2d 1696 (Fed. Cir. 2013) (en banc) (92 PTD, 5/13/13).Alice Corp. asserted four patents (U.S. Patent Nos. 5,970,479; 6,912,510; 7,149,720; and 7,725,375) directed to the formulation and trading of risk management contracts against alleged infringer CLS Bank International.The en banc court was 7-3 against patent eligibility of the method claims and 5-5 as to the system claims. Since the lower court had ruled that the system claims were ineligible, that judgment stands and all of Alice's claims are ineligible unless the Supreme Court overturns the decision. Eight members of the en banc court said that method and system or media claims should rise or fall together, but not for the same reasons.

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.

(AP) -- Federal regulators are urging consumers to go through their phone bills line by line after they accused T-Mobile US of wrongly charging customers for premium services, like horoscope texts and quirky ringtones, the customers never authorized. The Federal Trade Commission announced Tuesday that it is suing T-Mobile in a federal court in Seattle with the goal of making sure every unfairly charged customer sees a full refund. The lawsuit, the first of its kind against a mobile provider, is the result of months of stalled negotiations with T-Mobile, which says it is already offering refunds. "It's wrong for a company like T-Mobile to profit from scams against its customers when there were clear warning signs the charges it was imposing were fraudulent," FTC Chair Edith Ramirez in a statement.

The practice is called "cramming": A third party stuffs a customer's bill with bogus charges such as $10-per-month horoscopes or updates on celebrity gossip. In this case, the FTC said, T-Mobile was working with third-party vendors being investigated by regulators and known to be the subject of numerous customer complaints. T-Mobile then made it difficult for customers to notice the added charge to their bill and pocketed up to 40 percent of the total, according to the FTC.

The FTC told reporters in a conference call Tuesday that it had been in negotiations with T-Mobile for months in an attempt to guarantee refunds would be provided to customers but that the two sides couldn't reach an agreement. T-Mobile appears to have been laying the groundwork to head off the federal complaint. Last November, the company announced that it would no longer allow premium text services because they were waning in popularity and not all vendors had acted responsibly. In June, it announced it would reach out to consumers to provide refunds. But the FTC says that in many cases, the refunds are only partial and T-Mobile often refers customer complaints to the third-party vendors.

Facebook is in early talks with the US Federal Trade Commission over settling an investigation into privacy violations that could result in a record fine for the technology company, according to several people familiar with the situation. The US watchdog is investigating whether the social network broke a consent order that it signed with the FTC in 2011, which required it to be clear with users about how their data were being shared with third parties.According to two people familiar with the talks, negotiations over a settlement have started although no monetary figure has been agreed.The FTC opened its investigation into the social network’s privacy practices in March last year following the Cambridge Analytica scandal, in which the data of 87m users was improperly accessed by a third party. David Vladeck, a former FTC director who oversaw the 2011 agreement with Facebook, said he expected a major financial penalty. “I think it’s highly unlikely the FTC would impose a civil penalty under a billion dollars,” he said.