MediaTech Law

By MIRSKY & COMPANY, PLLC

Protecting Children’s Privacy in the Age of Siri, Echo, Google and Cortana

“OK Google”, “Hey Cortana”, “Siri…”, “Alexa,…”

These statements are more and more common as artificial intelligence (AI) becomes mainstream. They serve as the default statements that kick off the myriad of services offered by Google, Microsoft, Apple and Amazon respectively, and are at the heart of the explosion of voice-activated search and services now available through computers, phones, watches, and stand-alone devices. Once activated, these devices record the statements being made and digitally process and analyze them in the cloud. The service then returns the search results to the device in the form of answers, helpful suggestions, or an array of other responses.

A recent investigation by the UK’s Guardian newspaper, however, claims these devices likely run afoul of the U.S. Children’s Online Privacy Protection Act (COPPA), which regulates the collection and use of personal information from anyone younger than 13. If true, the companies behind these services could face multimillion-dollar fines.

COPPA details, in part, responsibilities of an operator to protect children’s online privacy and safety, and when and how to seek verifiable consent from a parent or guardian. COPPA also includes restrictions on marketing to children under the age of 13. The purpose of COPPA is to provide protection to children when they are online or interacting with internet-enabled devices, and to prevent the rampant collection of their sensitive personal data and information. The Federal Trade Commission (FTC) is the agency tasked with monitoring and enforcing COPPA, and encourages industry self-regulation.

The Guardian investigation states that voice-enabled devices like the Amazon Echo, Google Home and Apple’s Siri are recording and storing data provided by children interacting with the devices in their homes. While the investigation concluded that these devices are likely collecting information of family members under the age of 13, it avoids conclusion as to whether it can be proven that these services primarily target children under the age of 13 as their audience – a key determining factor for COPPA. Furthermore, according to the FTC’s own COPPA FAQ page, even if a child provides personal information to a general audience online service, so long as the service has no actual knowledge that the particular individual is a child, COPPA is not triggered.

While the details of COPPA will need to be refined and re-defined in the era of always-on digital assistants and AI, the Guardian’s claim that the FTC will crack down harshly on offenders is not likely to happen, and the potential large fines are unlikely to materialize. Rather, what will likely occur is the FTC will provide guidance and recommendations to such services, allowing them to modify their practices and stay within the bounds of the law, so long as they’re acting in good faith. For example, services like Amazon, Apple and Google could update their services to request on installation the age and number of individuals in the home, paired with an update to the terms of service requesting parental permission for the use of data provided by children under 13. For children outside of the immediate family who access the device, the services can claim they lacked actual knowledge a child interacted with the service, again satisfying COPPA’s requirements.

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HTML5 Unintended Consequence? Getting Around Apple In-App Sales Restrictions.

One unintended consequence of the accelerating popularity of HTML5 for mobile app development is an ability to skate past Apple’s App Store restrictions on in-app sales.  So I put this question to Piotr Steininger of Tapangi Consulting:

There’s talk out there about being able to use HTML5 to get around Apple’s App Store ban on charging for in-app purchases.  In other words (I think), somehow HTML5 allows content producers to get around this problem by making apps (and other things) downloadable directly through web browsers.  So … how is it that HTML5 allows getting around this issue?

Some background: Apple announced a policy change earlier this year, specifically in Section 11.14 of its App Store guidelines,

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Apple Changes App Store Guidelines, Developers Seek End-Around

Kate Tummarello is a Research and Social Media Intern with Mirsky & Company and a reporter at Roll Call/Congressional Quarterly.  Follow Kate on Twitter @ktummarello.

Apple’s App Store is full of subscription-based content providers. Whether you’re watching a movie on the Netflix app, reading a book through the Kindle app or streaming a TV show using the Hulu Premium app, you’re probably used to paying for the app and then paying more for the content.

But that’s changing, thanks to Apple’s new policy, which will prohibit developers from requiring users to make a second purchase to access content once they have purchased the app itself.

Apple rumor website MacWorld reported earlier this summer that Apple was planning on this new policy. The article quoted Section 11.14 of Apple’s App Store guidelines:

Apps can read or play approved content (specifically magazines, newspapers, books, audio, music, and video) that is subscribed to or purchased outside of the app, as long as there is no button or external link in the app to purchase the approved content. Apple will not receive any portion of the revenues for approved content that is subscribed to or purchased outside of the app.

Previously, developers could charge one price for the app and then offer more content for a second price within the app. Unlike purchases made through the app store, where Apple receives 30 percent of the profit, profits made from purchases within the app itself would go entirely to the developer. In eliminating the possibility for in-app purchases, Apple is ensuring that it retains its 30 percent.

But developers are looking to find ways around this policy. According to MacWorld, Netflix has found a loophole in instructing users to “visit Netflix.com” without providing a button for users to do so.

Others are turning to the much anticipated HTML5. According to Piotr Steininger, co-founder of Tapangi Consulting [http://tapangi.com/] based in Washington, DC, HTML5 may open floodgates for apps that are accessed through a device’s web browser rather than through an app store.  Or in other words, “Rather than buying an app in the app store you just go to a URL and you’ve got an app to go,” Steininger says. “You load it once on the iPad and download a book locally, and you’re good to go.”

Amazon has already unveiled an HTML5-based Kindle app that works within a device’s browser, including on the iPad. The app synchronizes with a user’s Kindle library, and users can shop for Kindle content within the app. According to many reports, other content providers, including Wal-Mart, are similarly attempting to use HTML5-based apps to avoid the Apple App Store and its rules and fees.

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Trademarks: Apple Still Fighting “Video Pod”

Sector Labs, a California company that makes a smartphone-size video projector, filed a federal trademark registration in 2003 for the name “video pod”.

Apple, Inc. challenged the registration, filing an opposition to Sector Lab’s registration with the U.S. Patent and Trademark Office.  Apple claimed (among other things) that Sector Labs’ “video pod” “is extremely similar to Apple’s [“iPod” trademarks]”, “consists in part of a significant portion of [iPod] and the entirety of POD, which consumers use as an abbreviation to identify and refer to Apple’s iPod mark and products”, and that Video Pod “covers a device that is or will be used to transmit video for entertainment and other purposes” – much like Apple’s iPod.

Apple’s legal position is that Sector Labs registration would cause source confusion, namely a likelihood of confusion among consumers as to the source of the two companies’ products, and trademark dilution.  Or in other words, “video pod” would dilute the value of Apple’s iPod franchise by reducing the exclusive association in the marketplace of “pod” with Apple and its ubiquitous iPod.

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