Press Releases
Pre-Election Survey Shows Strong Support for a National Data Privacy Law & Other Small Business Priorities
Nick Rozzo2024-10-28T13:41:31-04:00October 24th, 2024|
Empowering Global App Innovation: ACT | The App Association and Shtudy Join Forces to Champion Diversity and Advance Tech Entrepreneurship Policy Awareness
Karen Groppe2024-02-08T10:53:42-05:00February 8th, 2024|
ACT | The App Association Report Illuminates Small Businesses’ Impact in AI, Urges Policy Inclusivity
Karen Groppe2024-07-09T12:01:15-04:00December 6th, 2023|
6/23/2023–Digital Innovators Request an Opt-In from FTC for Further Discussion on the Negative Option Rule
Karen Groppe2023-06-23T17:34:12-04:00June 23rd, 2023|
4/27/2023–Consumer Privacy Expert Morgan Reed Recommends to Congress to Implement Comprehensive Privacy Law
Karen Groppe2023-04-27T16:10:00-04:00April 27th, 2023|
Ask Your Senator to Protect Your Privacy and Support Small Business
Karen Groppe2022-06-17T17:34:31-04:00June 13th, 2022|
(WASHINGTON, DC) September 8, 2022 –Today, ACT | The App Association’s membership outlined their top legislative priorities for the remainder of the 117th Congress.
App Association members urge congressional action on the following topics:
Broadband. Members urge Congress to ensure that investment incentives for deployment, spectrum purchases, and access remain strong while ensuring high-speed broadband is available on an equitable basis to Americans across the nation.
Telehealth and Digital Health Coverage. Members urge the Senate to pass the House’s additional two-year extension. They also encourage both chambers to continue to move the Medicare system to value-based care arrangements that enable patients and caregivers to leverage covered digital health services.
Cryptocurrency. Members support Congress’ recent attention to crypto-asset markets and believe the Responsible Financial Innovation Act (S. 4356) should move forward. As Congress debates the various pieces of this bill in the coming months and into the 118th Congress, they seek to be a resource for and supporters of the relevant committees’ work.
Privacy. Members urge Congress to move legislation forward and ensure that any measure passed by both chambers sets a high bar on privacy while substantially preempting state laws.
Tax Policy. Members urge Congress to undo a change that went into effect in 2021 and reinstate the ability for companies to deduct the entire cost of research and development in the year in which it is incurred.
Workforce Development and Education. Members urge Congress to enhance resources at all levels of workforce development, including advancing the Computer Science Education for All Act (H.R. 3602) and prioritizing computer and coding skills in Workforce Innovation and Opportunity Act (WIOA) programs.
Intellectual Property. Members urge Congress to oppose measures that would diminish the strength of copyright protections for software and content creators and develop policies to discourage anticompetitive conduct involving standard-essential patents.
About ACT | The App Association: The App Association represents more than 5,000 app makers and connected device companies in the mobile economy. Our members leverage the connectivity of smart devices to create innovative solutions that make our lives better. The App Association is the leading industry resource on market strategy, regulated industries, privacy, and security.
June 8, 2022 — Today, ACT | The App Association and its members sent a letter to House and Senate leadership urging their opposition to the Open App Markets Act (S. 2710/H.R. 7030) and American Innovation and Choice Online Act (S. 2992/H.R. 3816). App Association members reiterated that the future of their business growth is at risk if privacy and security concerns take a backseat in proposals to take on tech companies.
How the Open App Markets Act and the American Innovation and Choice Online Act would limit small business growth:
- Consumer trust is built through trusted marketplaces. Small businesses rely heavily on trusted marketplaces, which give clients and customers a safe and secure place to access digital products and services. The bills’ prohibitions on performing management functions, including stopping malware, fraud, and other harmful content, limit the security and safety of the marketplaces of choice for small businesses.
- Increasing consumer costs starts with hobbled distribution channels. The bills would mandate that software platforms stop providing certain services that benefit small app companies, forcing App Association members to source safety and security in-house or at much greater costs. Consumers ultimately bear those costs and turn to larger competitors instead for key digital solutions.
- Protected consumers lead to successful growth. The bills would create new opportunities for cyber attackers to successfully infect mobile devices while making it much harder for consumers to protect themselves, which would seriously threaten prospects for small businesses and consumer safety and security.
About ACT | The App Association: 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. The App Association is the leading industry resource on market strategy, regulated industries, privacy, and security.
May 20, 2022—ACT | The App Association is pleased to announce Global AppCon’22 taking place Monday, May 23 through Wednesday, May 25. App Association members from around the globe are scheduled to discuss issues surrounding competition and privacy in digital marketplaces. In-person attendees are scheduled to participate in congressional meetings, a business showcase, and policy briefings.
Why small business owners participate:
“As a small business owner, the policies coming from the federal government have huge impact on our day-to-day operations, and it can be difficult to have our small business voice heard when we’re up against some of the largest players in the app economy.
“The App Association gives me and my fellow members a platform to be better informed and to have greater influence on supporting good governance and smart policies to create a level playing field for everyone. It is an honor to be back in DC in person for this year’s AppCon, and I can’t wait to see the positive influence that will happen when passionate and talented people come together for good!” – Chris Sims, CEO, CAVU
The value of Global AppCon‘22:
“AppCon, the annual member fly-in hosted by ACT | The App Association, has facilitated opportunities for small business owners like me to speak with lawmakers and their staff to drive positive change in the app economy. Over the years, AppCon has given small businesses in the app economy the opportunity to advocate for policies that have allowed for the widespread implementation of connected health technologies and have led to better patient outcomes.
“I’m excited to return to D.C. to continue our advocacy for AppCon’22 as our industry continues to lead connected health solutions.” – Sandeep Pulim, MD Medical Director, Biofourmis
Raising awareness (and excitement) for entrepreneurs:
“As a former 100k mile a year traveler, it’s super exciting to begin traveling again and especially for an event like AppCon! This has been one of my favorite annual professional events for several years, so it’s only fitting that it is my first professional event since start of the COVID-19 pandemic!
“The App Association is dedicated to helping us each tell our stories to raise awareness around policies and laws that impact our businesses and, as small business owners, us personally. Beyond our advocacy, AppCon has become personal, with lasting friendships that transcend a shared interest in innovative tech solutions and sharing our voices with policymakers.”
– Julie Yack, Founder and COO, 365.Training & Colorado Technology Consultants, Inc.
About ACT | The App Association: 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. The App Association is the leading industry resource on market strategy, regulated industries, privacy, and security.
National poll indicates voters are strongly supportive of innovation, manufacturing, and efforts to free up supply chains, all of which will be helped by fair and non-discriminatory standards for licensing patents.
(WASHINGTON, DC) February 1, 2022– Today, ACT | The App Association released results from a nationwide poll of registered voters to determine viewpoints on protecting innovation, the role patents play in delivering innovation, and voter expectations of how the federal government should set guidelines for patent guidelines.
According to the poll, conducted by Impact Research in January 2022, American voters:
Prioritize manufacturing
► More than 80 percent of Americans (82 percent) believe supporting manufacturing in the United States should be a top or very important priority.
► Making sure supply chains are working is an even higher priority, with 90 percent of American voters rating supply chains as a top or very important priority.
► Supporting innovation and new technology is a top or very important priority for more than two-thirds of American voters (68 percent).
Believe standard-essential patents should be licensed to all
► Nearly three-quarters of American voters (71 percent) believe it’s important that manufacturers can license standard-essential patents in a way that’s fair, reasonable, and non-discriminatory. Voters are strongly supportive of innovation, manufacturing, and efforts to free up supply chains, all of which will be helped by fair and non-discriminatory standards for licensing patents.
► Voters believe it’s important for manufacturers to be able to license standard-essential patents.
► While 71 percent say it’s extremely / very important for manufacturers to be able to license standard-essential patents in a way that is fair, reasonable, and non-discriminatory, just 23 percent say it’s only somewhat or not too important.
Favor the federal government setting guidelines to protect patents
► This is not a partisan issue – more than two-thirds of Democrats (74 percent), Republicans (67), and Independents (76percent) believe this is important. Voters believe this fight affects them and want the federal government to set clear guidelines.
► More than 60 percent of voters favor the federal government setting clear guidelines on what fair, reasonable, and non-discriminatory terms are for standard-essential patents (61 percent favor / 32 percent oppose).
► More than 60 percent of voters think that disagreements between innovators that rely on standards and standard-essential patent owners have an impact on the devices they use in their everyday lives (61 percent say it affects them a lot or some / 26 percent say it affects them not too much or not at all).
► Voters believe these issues affect them, even though only 10 percent of voters say they know “a lot” about intellectual property rights. Innovation, manufacturing, and supply chains are critical priorities for Americans (and more important than protecting the rights of patent owners).
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Contact: Karen Groppe
ACT | The App Association
[email protected]
(240) 855-8947
Ashley Durkin-Rixey
ACT | The App Association
[email protected]
+1 (202) 420-7488
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.
2021 Press Releases
(WASHINGTON, DC) June 11, 2021– Today, the United States House Judiciary Subcommittee on Antitrust, Administrative, and Commercial Law introduced five bills aimed at regulating “Big Tech” after a year-plus investigation of competition in digital markets. While these bills may address perceived harms associated with platforms other than software platforms (such as social media, search, or retail), key provisions will upset the dynamic interplay between the small businesses ACT | The App Association represents and software platforms.
“Once again Congress moves in a direction that could hurt the same small businesses it wants to protect,” said Morgan Reed, president of the App Association. “As drafted this legislation does nothing to lower competitive barriers for new entrants and small businesses and instead rewards the top one percent of the app economy by prohibiting benefits that our members and consumers rely on for privacy protection, trust, and more.”
On June 14, App Association members will take place in a virtual fly-in to discuss competition issues with lawmakers in both the House and Senate.
“For too long Congress has talked about competition and small business without talking to our members, the companies bringing digital medicine, productivity, and the internet of things (IoT) to smart devices. We plan to highlight how the House bills and other policy proposals could do more harm than good,” said Reed.
The legislative proposals that could negatively impact App Association members include:
- A separation of platforms from complementary businesses could prevent software platforms from providing important complementary services that App Association members use now;
- A regime requiring “equal terms for equal products and services” would inevitably require the government to define what constitutes “equal,” in a process that more well-resourced companies on the platform are likely better able to take advantage of than smaller companies;
- A prohibition on self-preferencing could diminish software platform offerings that App Association members leverage now, such as the native camera app, e-mail, messaging, and similar functions software developers interoperate with to offer new products and services.
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U.S. Contact: Ashley Durkin-Rixey
ACT | The App Association
[email protected]
+1 (202) 420-7488
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.
2020 Press Releases
(Brussels) 15 December 2020 – Today, the European Commission (EC) released its Digital Markets Act (DMA) and the Digital Services Act (DSA) aimed at guiding the future of digital sovereignty in the European Union (EU) by addressing topics such as content regulation, competition, and market practices. Both proposals outline several reforms intended to address the market power of global tech giants and the perceived harms associated with platforms (such as social media, search, or retail). Taken together, the proposals could certainly impact the markets in which App Association members compete.
“We appreciate the EC’s concern for European small and medium-sized enterprises (SMEs) competing with larger global players,” said Mike Sax, chairperson and founder of ACT | The App Association. “However, the DMA proposal will only level the playing field for gatekeepers but not for small companies. App makers will suffer from the ripple effects this legislation will have on the whole ecosystem, making it more difficult to reach consumers and compete against big brands.”
Among the recommendations in the DMA that could negatively impact App Association members are:
- The combination of ex–ante rules and the market investigation tool could duplicate existing EU competition law provisions. The app economy is thriving and helping thousands of EU companies find success, even during a pandemic. The Commission’s commitment to preserving competition is commendable but responding to potential problems without evidence of actual harm is the wrong approac
- The creation of a list of prohibited practices (blacklist) and obligations (whitelist) for large online platforms is concerning. The white–, gray–, and blacklists only address a snapshot of the current economy. They will be outdated a few months from now. For example, forcing multiple app stores on devices would only fragment the market and increase costs, especially for smaller app makers with limited resources. We prefer a model like the core principles in the E-Commerce Directive, defining what’s truly important and what should guide competition policy moving forward.
- Rather than taking an ex–ante approach that tries to anticipate problems, the App Association believes the best way to safeguard competition is to continuously look for evidence of actual harm and put mechanisms in place that can address it with swift remedies.
Regarding the DSA, the App Association welcomes the EC’s proposal, and a number of the suggested remedies will benefit SMEs in the app economy including:
- Expanding the Single Market for Digital Services and clarifying the responsibilities of online intermediaries.
- Maintaining the core principles of the E-Commerce Directive such as limited liability, prohibition on general monitoring, and country of origin. The core principles of the E-Commerce Directive enabled the remarkable growth of European digital services and still fit the intended purpose
As this proposal passes through the legislative process, we encourage policymakers to continue to ensure that the new obligations minimize unintended consequences that would disadvantage smaller companies.
“We look forward to working with legislators towards the creation of a flexible, adaptive, and proportionate framework fit for the emerging challenges of the digital world,” said Sax. “It is imperative we continue to create new opportunities for European app developers and other digital SMEs.
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EU Contact: Morgane Taylor
ACT | The App Association
[email protected]
+32 (0) 4 84 41 82 58
U.S. Contact: Ashley Durkin-Rixey
ACT | The App Association
[email protected]
+1 (202) 420-7488
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) October 7, 2020– The majority staff report from the United States House Judiciary Subcommittee on Antitrust, Administrative, and Commercial Law’s investigation into competition in digital markets outlines several proposed reforms to U.S. competition law to address the market power of Facebook, Amazon, Google, and Apple. Many of these proposals may address perceived harms associated with platforms other than software platforms (such as social media, search, or retail), but could certainly impact the markets in which App Association members compete.
“The proposals taken together would install the federal government as the manager of what is now a dynamic app ecosystem,” said Morgan Reed, president of the App Association. “Government intervention on behalf of larger players with more bargaining power would distort competition and lead to higher costs for small developers. The app ecosystem works because everyone is part of it.”
The App Association agrees with the report’s findings that note a need for more dedicated resources for U.S. competition authorities, like the Federal Trade Commission and the Department of Justice, to enforce competition law. However, there are a few recommendations that could negatively impact App Association members including:
- A separation of platforms from complementary businesses could prevent software platforms from providing important complementary services that App Association members use now;
- A regime requiring “equal terms for equal products and services” would inevitably require the government to define what constitutes “equal,” in a process that more well-resourced companies on the platform are likely better able to take advantage of than smaller companies;
- A prohibition on self-preferencing could diminish software platform offerings that App Association members leverage now, such as the native camera app, e-mail, messaging, and similar functions software developers interoperate with to offer new products and services.
“We appreciate the unprecedented amount of work the majority staff put into this report and will review the companion reports from the minority staff once released,” stated Reed. “We will continue work to make sure Congress and regulators hear the voice of small app makers, and not just big brands, so companies of all sizes can continue to thrive in the app economy.”
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Contact: Ashley Durkin-Rixey
ACT | The App Association
[email protected]
(202) 420-7488
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.
New Economic Analysis Shows 5G Deployment Will Add 8.5 Million Jobs to the U.S. Over Next Five Years
(WASHINGTON, DC) March 3, 2020– Today, ACT | The App Association released a new economic analysis showing the deployment of the 5G wireless network will create 8.5 million jobs in the United States over the next five years, at a rate of 1.2 million per year. The report titled “An Economic Analysis of 5G Wireless Deployment: Impact on U.S. and Local Economies”, examines the potential of 5G as a general-purpose technology to unleash improvements in economic productivity, employment, and consumer value.
“The broadest impact on the labor market comes from new employment opportunities through the way 5G will enable new applications, services, ways of doing business, and general growth of businesses,” said James E. Prieger, the economist who conducted the analysis on behalf of the App Association. “These workers will earn more than $560 billion during that time, create $1.7 trillion in additional output, and add over $900 billion to U.S. GDP.”
Businesses and consumers will also benefit from 5G networks. The Internet of Things (IoT) and 5G will be a major source of productivity improvements and competitive advantage for businesses. The true promise of 5G and IoT for consumers lies in doing completely new things using mobile and fixed wireless and IoT technology devices, such as healthcare devices, autonomous vehicles and traffic management systems, the smart grid for revolutionizing energy management, smart home technology, and wearable devices.
“The next generation of internet connectivity will pay huge dividends to the American workforce and open new opportunities for our members in the dynamic app developer community and internet of things (IoT) innovators,” said Morgan Reed, president of the App Association.
“Apps provide the vital interface and “middleware” for IoT devices, and our members are driving new capabilities in connected healthcare devices, connected cars, precision farming, and more,” added Reed. “With billions of IoT-related devices entering our market, we will need a variety of deployment schemes to manage network access and mitigate network congestion.”
In addition to the national analysis, the report includes case studies on four cities (Los Angeles, New York, Pittsburgh, and Roanoke) showing even the direct economic impacts from deploying the 5G network are large. Employment created by economic expenditures associated with 5G deployment is expected to create about 250,000 jobs in Los Angeles, up to about 120,000 jobs in New York City, about 22,000 jobs in Pittsburgh, and about 2,700 jobs in Roanoke.
The full report is available via the App Association by clicking here.
Editor’s Note: James E. Prieger is an economist and professor of public policy at Pepperdine University. He specializes in regulatory economics, industrial organization, and applied econometrics. Previously, he was an assistant professor of economics at the University of California, Davis. Prieger spent a year as Senior Economist at the Federal Communications Commission‘s Office of Strategic Plans and Policy. He received his Bachelor of Arts degree from Yale University and his PhD from the University of California, Berkeley.
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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.
ACT | The App Association Commends FCC on Vote in Support of Greater Rural Broadband Deployment
(WASHINGTON, DC) February 28, 2020– Today, ACT | The App Association applauds the Federal Communications Commission’s (FCC) approval of targeted changes to rules that govern the use of white space devices in TV bands, also known as television white spaces (TVWS). The unanimous vote by the Commission brings to life another tool for closing the digital divide by proposing rules of the road for innovators to leverage the TV band to bring reliable broadband to rural and underserved portions of the United States.
“One of our top priorities in Washington is to ensure policymakers are putting all options on the table to close the nation’s digital divide,” said Morgan Reed, president of ACT | The App Association. “Time and time again our members have expressed that they want to build their companies outside of traditional tech hubs, but broadband access remains a pain point. Today’s vote enables an efficient use of spectrum and forward-looking investments that will have meaningful outcomes for our small business members and the consumers they serve.”
The App Association’s 5,000 plus member companies build the products and services that bring the internet of things (IoT) and smart devices to life. Some are white label software companies, others are device makers, and they span virtually every industry vertical from smart agriculture to digital health. Additionally, our members represent all 435 congressional districts, many of which have rural or underserved urban areas without reliable broadband access. What they all have in common is their dependence on fast, ubiquitous, and reliable broadband connectivity to enable their innovative technologies.
“TVWS solutions can allow more consumers to access critical services like digital health and education and career platforms dependent upon strong broadband connections at an efficient cost point for taxpayers,” continued Reed. “Under the leadership of FCC Chairman Ajit Pai, the Commission is making significant strides in realizing a connected future for all Americans no matter where they live.”
The App Association plans to file comments on the notice of proposed rulemaking.
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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.
2019 Press Releases
August 21, 2019–ACT | The App Association Brings Free Public Workshop on STEM Education and Coding Skills to Marshall University Campus
Huntington Mayor Steve Williams Will Deliver Keynote at Workforce ReVolution: Building Skills, Building Minds
(WASHINGTON, DC) August 21, 2019– ACT | The App Association, in partnership with Marshall University,will hosta free, one-day public workshop in Huntington, WV, to explore the benefits of workforce development and computer science education. Workforce ReVolution: Building Skills, Building Mindswill take place on Thursday, September 5, at theBrad D. Smith Foundation Hallon the Marshall University campus.
This workshop will bring together policymakers, educators, students, and workforce development experts to discuss current STEM and coding programs in the state as well as ways to address the transformation of the local economy through computer science. Huntington Mayor Steve Williams will deliver an opening keynote titled, “You Can Get There From Here.”
“In just over 10 years, the app economy grew from a handful of app developers to a $1.3 trillion industry across the United States, including in West Virginia. There is still tremendous potential for growth in the state, but we are facing a shortfall of skilled workers,” said Morgan Reed, president, ACT | The App Association. “We look forward to convening this group of thought leaders to discuss what is already happening in the state to address opportunities forthe existing workforceand students.”
“Each of us has to decide if we are going to compete,” said Mayor Steve Williams, Huntington, WV. “If we decide that we are, we must ask ourselves if we fully understand that our competition does not come from down the road or in our own local market area, rather that we compete in a worldwide market place and therefore must plan accordingly.”
“There are currently over half a million computing jobs that are unfilled in the United States. The College of Information Technology and Engineering(CITE)at Marshall University assists graduating students with the skill sets required to meet regional, national,and global needs,” said Dr. Wael Zatar, CITE dean at Marshall University. “We are mission-driven and committed to providing some of the best educational experiences in these fields of study.”
“I’m absolutely over the moon to partner with such experts bringing opportunities for world-class workforce development and computer science education to our kids,” said state Del. Sean Hornbuckle (D-WV16).“This conference will be a huge step in making sure our students are the cream of the crop for the new wave of jobsand holding it at Marshall University makes it even sweeter.”
In addition to the panels, attendees will also participate in hands-on workshops led by educators to introduce the tools and skills used in coding. The workshops are:
- Existing Workforce Track: Focus on apprenticeships and on-the-job training to complement existing skills or vocational training and other efforts. The workshop will highlight App Association member company Bit Source and give participants an opportunity to participate in an introductory workshop led by a Bit Source representative.
- K-12 Track: Focus on the benefits associated with taking computer science courses, participation in coding and programming clubs, and finding mentors to help in their journey. The workshop will be a first look at a coding class/coding 101 led by Tamara Westfall.
Interested attendees can view the full agenda and RSVP for the free event at https://www.eventbrite.com/e/workforce-revolution-tickets-68609202973
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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.
(Brussels) June 12, 2019–Fifty six organizations from a diverse range of industries, up and down the innovation value chain, are pleased to announce today the publication of a set of guidelines on the licensing of standard essential patents (SEPs) which will help support the rollout of the internet of things (IoT) in Europe and elsewhere.
The guide, entitled ‘Core Principles and Approaches for SEP Licensing’, has been developed within the framework of a European Standards Organizations CEN and CENELEC Workshop Agreement (CWA) with support of the Deutsches Institut für Normung (DIN).
The guide, also known as ‘CWA2’, includes a set of six principles outlined below that companies, courts and other stakeholders are invited to consider when assessing whether SEP licensing terms are Fair, Reasonable and Non-Discriminatory (FRAND).
The ACT | The App Association and the Fair Standards Alliance (FSA) worked with DIN to steer the CWA2 to conclusion, and all parties hope that this guide will help avert the litigation and antitrust problems already experienced over the past decade in the smartphone sector, and more recently in the automotive sector.
The advent of 5G networks in Europe means that the number of devices and applications requiring connectivity offered by technologies that utilize technical interoperability standards will increase dramatically in the coming years.
Participants and supporters of the CWA2 include organisations of all sizes, from all over the world, and across a wide range of industries including automotive, broadcasting, telecom, technology and others. Europe’s largest automobile manufacturers association, ACEA, and industry group IP2Innovate, also expressed their support for the principles in the CWA2 guide.
“We are extremely pleased that so many industry players have come together in a spirit of compromise and created such a useful document,” said Robert Pocknell, Chairman of the FSA Board. He added: “We trust that companies involved in the development and sale of products in 5G and the IoT will find the CWA informative and useful and we hope that it will become an important reference document for all companies involved in the licensing of SEPs. Creating this CWA has been a tremendous amount of work and we would like to thank all of the companies and people involved, including CEN/CENELEC and DIN”.
“The FRAND promise lies at the heart of the SEP licensing process. Abusive SEP licensing practices will make it harder for small businesses to innovate in the IoT, ultimately slowing down adoption of the new technologies in Europe in both the consumer and business-to-business contexts,” said Mike Sax, Founder and Chairperson of ACT | The App Association.
A full list of the endorsers can be found in the guidelines. The link to the guidelines above will be active from today, June 12th 2019.
While stakeholders, including signatories to the CWA, always remain free to conduct SEP licensing negotiations as they determine on a case-by-case basis, the CWA provides six core principles that can help to foster a FRAND outcome:
- Injunctions: A FRAND SEP holder must not threaten, seek or enforce an injunction (or similar de facto exclusion processes) except in exceptional circumstances and only where FRAND compensation cannot be addressed via adjudication, e.g. lack of jurisdiction or bankruptcy. Parties should seek to negotiate FRAND terms without any unfair “hold up” leverage associated with injunctions or other de facto market exclusion processes.
- License availability: A FRAND license should be made available to anybody that wants one to implement the relevant standard. Refusing to license some implementers is the antithesis of the FRAND promise. In many cases, upstream licensing can create significant efficiencies that benefit the patent holder, the licensee and the industry.
- Court FRAND methodologies: SEPs should be valued based on their own technical merits and scope, not based on downstream values or uses. In many cases this will involve focusing on the smallest component that directly or indirectly infringes the SEP, not the end product incorporating additional technologies. As noted by the European Commission, SEP valuations “should not include any element resulting from the decision to include the technology in the standard.” Moreover, “[i]n defining a FRAND value, parties need to take account of a reasonable aggregate rate for the standard.”
- Patent bundling: While in some cases parties may mutually and voluntarily agree to a portfolio license (even including some patents subject to disagreements), no party should withhold a FRAND license to patents that are agreed to be essential based on disagreements regarding other patents within a portfolio. This approach can allow parties to identify areas of agreement within a patent portfolio despite other areas of disagreement. For patents that are not agreed upon, no party should be forced to take a portfolio license, and if there is a dispute over some patents, a SEP holder must meet its burdens of proof on the merits (e.g., to establish that the alleged SEP is infringed and requires payment, and to establish the FRAND rate).
- NDAs and fairness: Neither party to a FRAND negotiation should seek to force the other party into overbroad secrecy arrangements. Some information, such as patent lists, claim charts identifying relevant products, FRAND licensing terms, aspects of prior licensing history and the like are important to the evaluation of potential FRAND terms, and public availability of those materials can support the public interest in consistent and fair application of FRAND. A patent holder should not seek to exploit its information advantage regarding the patents or prior licenses to interfere with the potential licensee’s ability to effectively negotiate.
- Patent transfers: FRAND obligations remain undisturbed despite patent transfers, and patent sales transactions should include express language to that effect. Patent transfers likewise should not alter value sought or obtained for particular patents. Where SEP portfolios are broken up, the total royalties charged for the broken-up parts (and the remaining part of the portfolio) should not exceed the royalties that would have been found to be FRAND had the portfolio been retained by a single owner, or that were charged by the original owner. And patent transfers should not be used to defeat a potential licensee’s royalty “offset” or similar reciprocity rights.
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ACT | The App Association represents more than 5,000 app makers and connected device companies around the world. Organisation members leverage the connectivity of smart devices to create innovative solutions that make our lives better. The App Association is committed to preserving and promoting innovation while developing robust standards and a balanced intellectual property system to accelerate the growth of technology markets.
The Fair Standards Alliance is a not-for-profit organisation formed to strengthen the voice in Europe of companies which believe that the licensing of SEPS required in so many modern products today should be done on FRAND basis. This is important because industry standards are part of our everyday lives ensuring that there is compatibility and interoperability of components and products we all use, all of the time (i.e. smartphones, tablets, cars etc.). These standards also allow for the innovation which will be behind turning the IoT into a reality for millions of people across Europe and the world. www.fair-standards.org
Media Contacts
Fair Standards Alliance:
Evelina Kurgonaite: + 32 479 830 413, [email protected]
ACT | The App Association
Paul Meller: +32 497 322 966, [email protected]
(WASHINGTON, DC) June 11, 2019–Today, on behalf of its more than 5,000 small business app maker and connected device manufacturer members, ACT | The App Association filed an amicus brief with the U.S. District Court in opposition to Qualcomm’s request for a stay of Judge Koh’s decision and remedies pending appeal. In the brief, the App Association argues that not only are Qualcomm’s claims of potential harm dubious, but they are also far outweighed by the irreparable harm associated with allowing Qualcomm to continue its standard-essential patent (SEP) abuse during this critical stage of 5G market development.
“The App Association’s interest in this case is about much more than one company. Small business tech developers need reasonable and reliable access to technical standards to innovate and compete. Allowing Qualcomm to continue abusing its SEPs and its wireless chipset monopoly any longer will irreparably harm opportunities for small businesses in the app and internet of things (IoT) marketplace and would encourage further abusive behavior in SEP licensing widely” said App Association President Morgan Reed.
“Further, Qualcomm’s argument that a stay is required is belied by the fact the Court’s Order does nothing to prevent Qualcomm from developing 5G technology or getting full and fair prices for its cellular chips and SEP licenses.”
Key arguments the App Association makes in the amicus include:
Ensuring fair, reasonable, and non-discriminatory (FRAND) behavior in SEP licensing is particularly time-sensitive as the industry is evolving toward implementation of next–generation 5G networks and devices.
“In key segments of the global economy, from agriculture to retail to healthcare, the rise of IoT is demonstrating substantial efficiencies. … For proper market functioning as the connected economy develops, it will be critical to all market actors that FRAND licensing practices are followed and that abusive assertions are prevented.”
Harm to the market that will occur if the order were stayed substantially outweighs dubious allegations of harm alleged by Qualcomm.
“The Association agrees that entrenchment of monopoly power, and the market distortions that SEP abuse engenders, threaten to irreparably harm the marketplace at this critical stage when 5G markets are just now developing.”
Qualcomm’s allegations of harm are substantially overstated.
“More importantly, none of Qualcomm’s assertions about 5G are tied to Qualcomm’s alleged need for a stay. Nothing in the Court’s Order restricts Qualcomm from developing 5G technology, selling its 5G devices for a fair price, or licensing its 5G patents on FRAND terms. Qualcomm’s premise that compliance with the Order would somehow prevent Qualcomm’s participation in the 5G marketplace is simply false. “
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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) May 22, 2019– U.S. District Judge Lucy Koh sided with the Federal Trade Commission(FTC) in the FTC’s antitrust case against Qualcomm regarding its smartphone licensing practices.
“Judge Koh’s ruling is not only a rebuke of anticompetitive and discriminatory licensing practices, but it’s also a clear victory for innovation, consumers, and America’s 5G ambitions,” said Morgan Reed, president of the App Association. “We appreciate the FTC’s commitment to fight this case to the end and to establish this precedent for all stakeholders.”
“Most importantly, the ruling forces Qualcomm to finally live up to its voluntary fair, reasonable, and non-discriminatory (FRAND) licensing commitments, and they will no longer be able to refuse to license its standard-essential patents (SEPs) to competitors. Additionally, the court banned Qualcomm’s harmful ‘no license, no chips’ practices.”
“When honored, the FRAND promise is essential to a well-functioning standards system and allows small and mid-size companies like our members to fully participate in the technology marketplace and advance competition.”
In its filings on the case, the App Association noted that small business innovators cannot afford to have a vital standards system disrupted, and a settlement between the FTC and Qualcomm would create uncertainty that would deter these companies from participating in the innovation economy.
ACT |The App Association urged the FTC not to pursue a settlement in the case stating a court decision would provide much-needed legal clarity to the SEP licensing stakeholder community and reinforce FRAND practices.
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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.
ACT | The App Association Applauds FCC Vote to Open TV White Space Spectrum for Use in Rural Broadband Access
(WASHINGTON, DC) March 20, 2019– Today, ACT | The App Association released a statement from president Morgan Reed regarding the Federal Communications Commission (FCC) vote on an Order that is a necessary first step to open unused television white space (TVWS) spectrum for unlicensed wireless broadband connectivity:
“We are excited to see the Commission using its authority to remove regulatory barriers so that every American can participate in the digital economy. Today’s action furthers the FCC’s unfettered commitment to bridging the digital divide and will better position the United States as a leader in the networked economy.
Our membership represents small to medium-sized app developers across all 435 congressional districts. In particular, many of our members are located in rural areas that traditional networks cannot reach. TVWS-enabled wireless connectivity, along with all the Commission’s work related to wireless infrastructure deployment, will allow these small businesses to grow and contribute to local economies.
Although the FCC’s action today is a great step, it is imperative that the Commission continue to vote on items related to these proceedings expeditiously, so we are one step closer to getting quality and reliable broadband for every app innovator, irrespective of where they choose to start their business”
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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.
FTC Commissioner Noah Phillips to Deliver Keynote at 2019 Patents in Telecoms and IoT Public Workshop
ACT | The App Association Hosts Inaugural Public Workshop on Standard-Essential Patents on March 20 in Washington, DC
(WASHINGTON, DC) March 5, 2019– Today, ACT | The App Association announced Federal Trade Commission Commissioner Noah Joshua Phillips will deliver the keynote address at its 2019 Patents in Telecoms and Internet of Things (IoT) public workshop on March 20, 2019, which will take place at George Washington University’s Jack Morton Auditorium in Washington, DC.
Commissioner Phillips’ keynote will highlight the importance of balancing intellectual property rights and competition law policies to fostering innovation and economic growth.
The one-day public workshop will feature thought leaders from across industry, academia, and government who will explore the latest legal and policy developments related to standard-essential patents (SEPs), fair, reasonable, and non-discriminatory (FRAND) obligations, relevant venues, and the impacts policymakers should take into consideration.
“As wireless communications and cutting-edge technologies are present in more sectors, the ability to realize the potential of the internet of things will hinge on the development and use of consensus-driven standards,” said Morgan Reed, president of the App Association. “These standards represent key technical protocols, such as Wi-Fi and LTE, that ensure interoperability and promote competition.”
“Moving forward, technical standards will underlie the development of an increasingly seamlessly connected world enabled by 5G networks. The App Association is excited to bring together a diversity of viewpoints to advance the public discussion on solutions that will ensure the success of standards and drive competition towards realizing the internet of things.”
Tickets are available on a first come, first served basis at no cost to attendees. This event is open to members of the press and complies with ethics guidelines. To reserve your ticket, please visit the Eventbrite page for the workshop.
The full program is as follows:
Keynote Remarks
Federal Trade Commission Commissioner Noah Joshua Phillips
Where are We and How Did We Get Here?
This panel will provide an overview and background on standards, patents, competition, and their interplay.
– Tim Muris, Senior Counsel, Sidley Austin LLP (moderator)
– Michael Carrier, Distinguished Professor, Rutgers Law School
– Harry First, Charles L. Denison Professor of Law; Co-Director, Competition, Innovation, and Information Law Program, New York University School of Law
– Michael Lindsay, Partner, Dorsey & Whitney LLP
– John Yun, Associate Professor of Law and the Director of Economic Education at the Global Antitrust Institute, Antonin Scalia Law School ∙ George Mason University
Issues and Lessons Learned From the “Smartphone Wars”
This panel will provide the state of play on established and developing SEP law and policy issues using lessons learned through the smartphone context.
– Jay Jurata, Leader, Antitrust & Competition Group, Orrick, Herrington & Sutcliffe (moderator)
– Renata Hesse, Partner, Sullivan & Cromwell LLP
– Paul Zeineddin, Principal, Zeineddin PLLC
SEPs and New Verticals: The Auto Use Case
This panel will discuss how SEP laws and policies are affecting, and are expected to continue affecting, verticals past the well-known smartphone and telecom context – namely, the auto industry.
– Dave Djavaherian, Senior Partner & Founder, PacTech Law LLP (moderator)
– Kent Baker, Head of IP Strategy & Licensing, u-blox Inc.
– Charles Hawkins, Associate General Counsel, Intellectual Property & Litigation, Volkswagen Group of America, Inc.
– Heather Roberts, Senior Director, Global Licensing & Software, Harman
SEP Abuse and Its Impact on Small Business Innovators
This panel will discuss how SEP laws and policies pose unique opportunities and challenges for small businesses and startups.
– Brian Scarpelli, Senior Global Policy Counsel, ACT | The App Association (moderator)
– Emily Hart, Marketing Director, MotionMobs
– Chris Sims, President and CEO, Sigao Studios
– Jad Meouchy, Founder, BadVR
Closing Remarks
Morgan Reed, President, ACT | The App Association
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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.
Internet of Things and 5G Patent Licsensing Principles and Approaches- Consultation
App Association Members Will Demonstrate Artificial Intelligence and Machine Learning Based Applications
January 29, 2019–
A large and diverse group of companies are proud to announce a draft document setting out core principles and approaches to the licensing of standard essential patents (SEPs) in 5G devices that will lie at the heart of the Internet of Things (IoT).
The document – titled Core Principles And Approaches for SEP Licensing – has now been put forward for public consultation.
The guide includes a set of six principles that courts and other stakeholders may wish to consider when interpreting FRAND commitments. The signatories hope that this guide will help SEP licensors and licensees to negotiate and, ultimately, to avoid lawsuits.
The principles and approaches were drafted in a workshop organized within the framework of the European Standards Organizations CEN and CENELEC, with the support of the Deutsches Institut für Normung (DIN), and jointly chaired by industry groups, the Fair Standards Alliance and ACT | The App Association.
The workshop included companies of all sizes, from all over the world, at different levels in the supply chain, and across a wide range of industries including automotive, broadcasting, telecom, technology and others.
The document is now open for consultation. Anyone who is interested can provide comments by 28 March. The draft and response template are available on CEN CENELEC’s website: https://www.cencenelec.eu/news/workshops/Pages/WS-2019-001.aspx
A final version of the guide will be published by CEN-CENELEC once the consultation and review process is completed.
Morgan Reed, President of ACT | The App Association, said: “The FRAND promise is essential to a functioning standards system and allows SMEs to fully participate in the technology marketplace, advancing competition. The growth of the global innovation economy depends upon this promise. We wholeheartedly support this approach to ensure transparency in licensing discussions, facilitate the negotiations of licenses for SEPs and support compliance with FRAND commitments.”
Work on the agreement began in February 2018 with large and small businesses that all share an interest in developing the next generation of connected devices – to ensure the viability of future innovation in 5G and IoT in Europe and beyond.
Robert Pocknell, Chair of the Fair Standards Alliance, said: “Innovation is at the forefront of the many businesses who have been working hard to prepare these draft FRAND licensing principles. We hope that the document will provide useful guidance for industry players, courts and policy stakeholders that are reflecting on the future for IoT and SEP licensing. We look forward to receiving comments and engaging with various stakeholders to make this a true industry-based document.”
While companies, including signatories to the CWA, always remain free to conduct their negotiations as they determine on a case-by-case basis, the CWA provides six core principles and approaches that seek to foster a FRAND outcome:
- Injunctions: A FRAND SEP holder must not threaten, seek or enforce an injunction (or similar de facto exclusion processes) except in exceptional circumstances and only where FRAND compensation cannot be addressed via adjudication, e.g. lack of jurisdiction or bankruptcy. Parties should seek to negotiate FRAND terms without any unfair “hold up” leverage associated with injunctions or other de facto market exclusion processes.
- License availability: A FRAND license should be made available to anybody that wants one to implement the relevant standard. Refusing to license some implementers is the antithesis of the FRAND promise. In many cases, upstream licensing can create significant efficiencies that benefit the patent holder, the licensee and the industry.
- Court FRAND methodologies: SEPs should be valued based on their own technical merits and scope, not based on downstream values or uses. In many cases this will involve focusing on the smallest component that directly or indirectly infringes the SEP, not the end product incorporating additional technologies. As noted by the European Commission, SEP valuations “should not include any element resulting from the decision to include the technology in the standard.” Moreover, “[i]n defining a FRAND value, parties need to take account of a reasonable aggregate rate for the standard.”
- Patent bundling: While in some cases parties may mutually and voluntarily agree to a portfolio license (even including some patents subject to disagreements), no party should withhold a FRAND license to patents that are agreed to be essential based on disagreements regarding other patents within a portfolio. This approach can allow parties to identify areas of agreement within a patent portfolio despite other areas of disagreement. For patents that are not agreed upon, no party should be forced to take a portfolio license, and if there is a dispute over some patents, a SEP holder must meet its burdens of proof on the merits (e.g., to establish that the alleged SEP is infringed and requires payment, and to establish the FRAND rate).
- NDAs and fairness: Neither party to a FRAND negotiation should seek to force the other party into overbroad secrecy arrangements. Some information, such as patent lists, claim charts identifying relevant products, FRAND licensing terms, aspects of prior licensing history and the like are important to the evaluation of potential FRAND terms, and public availability of those materials can support the public interest in consistent and fair application of FRAND. A patent holder should not seek to exploit its information advantage regarding the patents or prior licenses to interfere with the potential licensee’s ability to effectively negotiate.
- Patent transfers: FRAND obligations remain undisturbed despite patent transfers, and patent sales transactions should include express language to that effect. Patent transfers likewise should not alter value sought or obtained for particular patents. Where SEP portfolios are broken up, the total royalties charged for the broken-up parts (and the remaining part of the portfolio) should not exceed the royalties that would have been found to be FRAND had the portfolio been retained by a single owner, or that were charged by the original owner. And patent transfers should not be used to defeat a potential licensee’s royalty “offset” or similar reciprocity rights.
Notes to Editors
ACT | The App Association represents more than 5,000 app makers and connected device companies around the world. Organisation members leverage the connectivity of smart devices to create innovative solutions that make our lives better. The App Association is committed to preserving and promoting innovation while developing robust standards and a balanced intellectual property system to accelerate the growth of technology markets.
The Fair Standards Alliance is a not-for- profit organisation formed toward the end of 2015 to strengthen the voice in Europe of companies which believe that the licensing of standards-essential patents (SEPS) required in so many modern products today must be done on a fair, reasonable and non-discriminatory basis (FRAND). This is important because industry standards are part of our everyday lives ensuring that there is compatibility and interoperability of components and products we all use, all of the time (i.e. smartphones, tablets, cars etc.). These standards also allow for the innovation which will be behind turning the Internet of Things into a reality for millions of people across Europe and the world.
2018 Press Releases
ACT | The App Association to Participate in AI and Machine Learning Forum at FCC
App Association Members Will Demonstrate Artificial Intelligence and Machine Learning Based Applications
WASHINGTON, DC November 28, 2018– Today, ACT | The App Association announced members’ participation in a Federal Communications Commission’s (FCC) Artificial Intelligence (AI) and Machine Learning Forum, taking place on Friday, November 30.
According to a news release by the FCC, “The forum will convene experts in the AI and machine learning fields to discuss the future of these technologies and their implications for the communications marketplace. The event will also include demonstrations to enable the public to see these emerging technologies in action.”
The FCC invited a group of App Association members in the connected health space to take part in the demonstration, showcasing digital health tools that use on AI and machine learning.
“AI and machine learning technology is at the forefront of transforming everything from healthcare to transportation, and small business developers are driving these new and innovative services,” said Morgan Reed, president, ACT | The App Association. “Our members’ products demonstrate the value these technologies have in enhancing and upgrading digital health tools, both for the patient and provider. We thank Chairman Pai and the FCC for this opportunity and bringing together experts for this important open dialogue on the opportunities and challenges facing widespread use of AI and machine learning”
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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, D.C. – Today, ACT | The App Association joined the Alliance of Automobile Manufacturers, the Computer & Communications Industry Association (CCIA), the High Tech Inventors Alliance (HTIA), the National Retail Federation, and the Software & Information Industry Association (SIIA) in sending a white paper to Department of Justice Assistant Attorney General for Antitrust Makan Delrahim.
The paper, titled Standards, Licensing, and Innovation: A Response to DOJ AAG’s Comments on Antitrust Law and Standard Setting was sent in response to recent speeches and comments by AAG Delrahim on standard development, patent licensing, and antitrust. In more than four speeches throughout his tenure, Makan Delrahim has asserted that standard essential patent abuse is not an antitrust concern, and outside the scope of competition law. The industry groups, representing innovators and SEP holders across the technology, auto manufacturing, and retail sectors, argue that AAG Delrahim’s rhetoric conflicts with well-established legal precedent in the United States and a growing global consensus of regulators and courts. This month, seventy-seven academics and former Department of Justice antitrust and enforcement officials sent a similar letter to AAG Delrahim challenging his policy stance on the treatment of SEPs.
This new legal analysis outlines the interplay between standards development, intellectual property, and competition law, and demonstrates the inconsistencies between AAG Delrahim’s public remarks on SEPs, and a global legal consensus on the issue.
You may read a complete version of Standards, Licensing, and Innovation: A Response to DOJ AAG’s Comments on Antitrust Law and Standard Setting here.
For more information about the white paper authors, please see below.
ACT | The App Association represents more than 5,000 small business software developers and high-tech companies across the United States and the world. The App Association’s All Things FRAND initiative works to preserve and promote innovation and accelerate the growth of tech markets through robust standards development and a balanced intellectual property system. For more information, please visit: http://www.actonline.org/ or https://allthingsfrand.com.
The Auto Alliance is a trade association representing twelve automakers. The Auto Alliance’s mission is to promote policies that allow automakers the freedom and control to build cars and light trucks that are safe, reliable, energy-efficient, clean and smart — all so customers can enjoy greater peace of mind as they go about their daily lives. For more information, please visit:www.autoalliance.org.
The Computer & Communications Industry Association (CCIA) is an international nonprofit association representing a broad cross section of computer, communications and Internet industry firms. CCIA members employ more than 750,000 workers and generate annual revenues in excess of $540 billion. CCIA remains dedicated, as it has for over 40 years, to promoting innovation and preserving full, fair and open competition throughout our industries. For more information, please visit: www.ccianet.org.
The High-Tech Inventors Alliance (HTIA) is dedicated to advancing a patent system that promotes and protects real investments in technologies and American jobs. Collectively, HTIA’s members employ nearly 500,000 U.S. employees, spent $63 billion last year alone on research and development, hold more than 115,000 U.S. patents, and have a market capitalization of more than $2 trillion. For more information, please visit: https://www.hightechinventors.com.
The National Retail Federation is the world’s largest retail trade association. Based in Washington, D.C., NRF represents discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and internet retailers from the United States and more than 45 countries. Retail is the nation’s largest-private sector employer, supporting one in four U.S. jobs – 42 million working Americans. For more information, please visit: https://nrf.com.
The Software & Information Industry Association (SIIA) is the principal association for the software and digital content industries. SIIA provides global services in government relations, business development, corporate education and intellectual property protection to the leading companies that are setting the pace for the digital age. For more information, please visit:www.siia.net/policy.
Paris – The French Minister of the Economy, Mr. Bruno Le Maire, announced this morning his intent to pursue major mobile application platforms before the Commercial Court of Paris.
Far from improving the situation of application developers, this announcement will create an atmosphere of anxiety that risks negatively impacting the bond of mutual trust and positive interactions between application developers and mobile platforms.
“We are concerned that the Minister’s statement misses the fact that these platforms enable virtuous interdependencies with app developers and innovators. In modern app stores apps from the smallest companies stand as equal to those from the largest companies in the world because of the rules that govern them,” said Olivier Benoist of ACT | The App Association.
“Where would French unicorns be today without the platform model that allows them to reach audiences anywhere around the world at any time?” asks Benoit. “Platforms have helped lower barriers of entry and allowed tens of thousands of small businesses to flourish. Every household and professional service now uses applications to innovate and grow for tomorrow.”
ACT | The App Association insists on the important role of the French authorities in preserving the attractiveness of the French and European market for app developers who have benefited from quality services that ensure their competitiveness on a global scale.
To view this release in French, please click here.
2017 Press Releases
Washington, D.C. – ACT | The App Association President Morgan Reed testified today before the House Small Business Committee hearing on Promoting Greater Information Sharing for Stronger Cybersecurity about the role of small businesses in responding to the cybersecurity threat landscape and ways government can better support their efforts. Morgan noted:
“In our current environment, cybersecurity threats can seem incomprehensibly vast and inevitable, especially for small businesses that do not have the luxury of dedicated cybersecurity teams or expansive budgets to hire outside consultants. Government must recognize these realities and adapt existing programs and strategies to better meet the needs of America’s small businesses and entrepreneurs.
“First, we need the federal government to improve its information sharing activities; second, the federal government should take steps to make cybersecurity frameworks and best practices more workable for SMEs; and third, the federal government should ensure a legal and policy environment that enhances SMEs’ ability to adequately manage dynamic cybersecurity risks.”
“We urge Congress to provide small businesses with legal and policy certainty in this environment by passing legislation like the International Communications Privacy Act (ICPA) to clarify liability in data requests.”
Speaking on behalf of the App Association’s more than 5,000 small and medium-sized app developers and tech innovators, Morgan detailed these three key ways in which the federal government can help small businesses combat cyber threats and attacks. The federal government can improve information sharing activities to be more timely, accessible, and useful to small businesses. Second, he encouraged the government to make cybersecurity frameworks and best practices more user-friendly for small businesses, citing the value of the NIST Cybersecurity Framework. Lastly, Morgan called on the federal government to ensure a legal and policy environment that enhances small businesses’ ability to manage cyber security risks.
To read Morgan Reed’s full testimony to the House Small Business Committee, please click here.
To watch a livestream of the hearing, please click here.
Representatives Doug Collins (R-GA-09) and Hakeem Jeffries (D-NY-08) introduced H.R. 3718, International Communications Privacy Act (ICPA), which will help provide clear rules outlining law enforcement access to data stored overseas. With a membership base that relies on digital data flows and cloud computing to access and store data for users around the world, the introduction of this legislation is a significant step for ACT | The App Association’s members.
App Association President Morgan Reed released the following statement in support of the legislation.
“The House introduction of ICPA legislation is an important step for app developers, tech innovators, and American companies supported by the flow of data overseas. We applaud Representatives Collins and Jeffries for their attention and dedication to this crucial issue. Legal uncertainty regarding law enforcement access to data can have crippling effects on our members and American innovators at large. We have long advocated for a clear legal framework to remove conflicts between U.S. and other sovereign data access laws to support law enforcement, bolster consumer confidence in data privacy, and enable data-driven businesses to succeed. We look forward to working with Congress as this legislation moves forward.”
Senators Orrin Hatch and Chris Coons have introduced the International Communications Privacy Act (ICPA) to bring much-needed clarity to the rules defining law enforcement access to data stored overseas. The legislation is a priority issue for American app developers and tech innovators, many of whom use cloud computing technology to access and store data for users around the globe. ACT |The App Association President Morgan Reed released the following statement in support of the legislation.
“We applaud Senators Hatch and Coons for their introduction of ICPA legislation, which serves as a long-awaited acknowledgement of serious challenges that ambiguous data access laws bring to app developers and law enforcement officers. The App Association has been an advocate for a clear legal framework that upholds law enforcement’s mission, upholds consumer confidence in the privacy of their data, and allows app innovators and entrepreneurs to succeed. Our members rely on the free flow of data to provide the apps and innovations that drive our connected, mobile economy. This legislation is a significant step to define law enforcement access to data stored overseas and support our members, their livelihoods, and the consumers who have entrusted data to them.”
This legislation will have meaningful impact on the more than 5,000 app developers and technology firms that the App Association represents. App Association members from across the country and industry sectors have lent their voices to elicit congressional attention to and urge congressional action on this issue.
Jeff Hadfield, founder of Salt Lake City based tech consultancy 1564B, firmly supports the introduction of ICPA legislation. In a recent op-ed featured in the Deseret News, he wrote:
“As every company becomes a software company, we need legislation that supports our companies’ ability to store data overseas, protects our individual privacy rights, and helps U.S. law enforcement do its important job. Utah’s tech renaissance, and the success of cloud-driven companies across our country, depends on it.”
From a cybersecurity perspective, CyberSimpleSec owner Charlotte Tschider notes the financial, and geopolitical, implications of ambiguity in outdated lawful access legislation. She wrote in support of ICPA legislation, noting:
“I believe a bipartisan agreement on this issue is vital to the success of businesses in Minnesota and across the country, as well as our nation’s relationship with foreign governments. Congress cannot ignore this opportunity to protect American businesses, improve our relationships with foreign governments, and support law enforcement’s ability to keep us safe.”
To learn more about the newly introduced ICPA legislation, please click here. To explore the importance of this issue for app developers and tech innovators around the country, please visit www.ICPA.us.
Washington, D.C. – Today, thirteen tech associations, including ACT | The App Association, BSA | The Software Alliance, Computer & Communications Industry Association, CompTIA, Entertainment Software Association, Information Technology Industry Council, Internet Association, National Association of Manufactures, NetChoice, Reform Government Surveillance, TechNet, Telecommunications Industry Association, and the U.S. Chamber of Commerce sent a letter to House Judiciary Committee Chairman Bob Goodlatte and Ranking Member John Conyers in support of their hearing on Lawful Access and Privacy Protection.
The hearing provides a timely opportunity to discuss the need to update American laws and establish a modern legal process regarding law enforcement access to data stored abroad.
“We value the House Judiciary Committee’s attention to this crucial issue impacting app developers and technology companies across the country,” said ACT | App Association President Morgan Reed. “Our members provide apps and platforms for the 2.5 quintillion bytes of data shared across the globe daily. Without clear guidelines defining law enforcement access to data stored overseas, we jeopardize their success in international markets and the faith of consumers who have entrusted data to them.”
“If we continue to use outdated legal frameworks to address modern realities, we risk the consequences of data localization, conflicts of law, and retaliation from our trading partners. Congress has an opportunity to act,” he continued. “We hope today’s hearing lays the groundwork for legislation similar to the International Communications Privacy Act (ICPA) introduced last Congress, providing certainty for American businesses, facilitating law enforcement needs, and establishing a durable legal framework that avoids unnecessary conflicts of law.”
To read the complete letter, please click here.
Today, the United States Supreme Court ruled in favor of TC Heartland LLC in its case against Kraft Foods Group Brand LLC, strengthening the rules outlining where patent lawsuits may be filed and securing a win for app developers across the country. In February, ACT| The App Association filed an amicus curiae brief with the Supreme Court to outline the importance and significant impacts of this case to small business members and patent owners, who are particularly vulnerable to these abuses. The justices ruled in an 8-0 decision that patent infringement cases must be filed in the state in which the company is incorporated.
“The Supreme Court’s unanimous decision is a significant victory for the software developers who drive the $143 billion app ecosystem, as well as patent holders across the country. Small business innovators need a fair and predictable U.S. patent system they can rely on to protect their intellectual property,” said ACT | The App Association President Morgan Reed. “Under previous Federal Circuit findings, app developers faced uncertainty and the burdensome costs of being hauled across thousands of miles to face patent litigation in courts that disadvantage innovative small businesses. We applaud the Supreme Court for agreeing with our amicus assessment that Congress never endorsed the VE Holding case, and establishing clear guidelines about where app developers can expect to defend themselves against patent infringement allegations.”
The Supreme Court decision will help set fair standards for patent litigation by clarifying that alleged patent infringers may only be sued in the state where the defendant company is incorporated, rather than in any state where the defendant is subject to personal jurisdiction. The latter effectively represents any court in the United States, due to the distributed nature of internet commerce.
To read more about this case, and its impacts on the app economy, please click here.
Today, ACT | The App Association filed an amicus brief with the U.S. District Court’s Northern District of California in Federal Trade Commission v. Qualcomm Incorporated. The brief highlights the threat posed by the abuse of standard essential patent (SEP) licensing to innovation, competition, and interoperability, particularly for small businesses and startups.
Technological standards drive innovation across industries by enabling products to work together while enhancing competition. When SEP holders renege on their promise to voluntarily provide licenses in a fair, reasonable, and non-discriminatory (FRAND) manner, small businesses and their ability compete suffer.
“Startups and small companies rely far more heavily on open standards than the industry giants who dominate this conversation,” said App Association president Morgan Reed. “If SEP holders can refuse licenses or charge obscene royalties to smaller innovative companies, it could have a devastating effect on their ability to innovate and compete.”
The actions alleged within the FTC complaint, which include the refusal to license suppliers, engaging in abusive licensing practices, and demanding royalties based on value created by downstream innovators; pose a dire threat to the 5,000 small and medium sized app developers the App Association represents.
App developers of all sizes rely upon technical standards— shared protocols, common infrastructure technologies, and the interoperability they provide— to support innovations throughout the industry. A fair standards ecosystem provides businesses with a foundation for innovation and a safeguard for fair competition. FRAND abuses are particularly harmful to small businesses innovators that lack the legal and financial means to prevent, challenge, or seek redress through onerous litigation, which significantly limits their ability to grow and create jobs.
While the App Association takes no position on the merits of case, it is imperative that the court allow both parties to present their case. The App Association believes strongly in the value of intellectual property, but is concerned that the foundation for the open standards system will collapse if SEP abuses continue. The FTC filing outlines the detriments SEP abuse places on companies throughout the supply chain, and the small technology companies that drive innovation throughout our economy.
ACT | The App Association, alongside the Alliance for Telecommunications Industry Solutions (ATIS), Cellular Telecommunications Industry Association (CTIA), and USTelecom, recently released the Robocall Strike Force Report, which outlines a variety of solutions to target and eliminate unlawful robocalls. Within the report, the App Association advocates for the critical role app developers play in educating and empowering consumers to manage unwanted robocalls.
As part of the Robocall Strike Force, the App Association is educating its 5,000 member companies about opportunities to develop robocall control apps and created a webpage that outlines technical information and recommendations for developers interested in creating solutions. In addition, the App Association has made available an online workshop to educate developers about technical and policy considerations when creating and releasing new robocall control apps.
“The adoption of innovative technical solutions will be absolutely vital to addressing unwanted robocalls,” said Brian Scarpelli, the App Association’s senior policy counsel. “Apps already play an important role in mitigating robocalls, and we are proud to collaborate with the Strike Force to encourage developers, consumers, and stakeholders to continue driving effective solutions to this issue.”
To view the Industry Robocall Strike Force Report, please click here.
To view the App Association Robocall webinar, please click here.
For more information on the work the App Association is doing to mitigate unwanted robocalls, please visit: https://actonline.org/2017/03/28/robocalls-app-developers/
Washington, D.C. – Today, ACT | The App Association announced several staff additions and leadership shifts within the organization. As the app economy plays an increasingly integral role in our society, the App Association is strengthening its team to match this growth, and advocate for the array of policy priorities and opportunities in the dynamic app ecosystem.
Recognizing the crisis in global unemployment, in which tech has played a significant role, Jonathan Zuck will step down after 19 years as App Association president to assume the role of executive director at Innovators Network Foundation (INF), the App Association’s longstanding non-profit organization dedicated to innovative solutions to unemployment and entrepreneurship. He will be joined by Melissa Lee, an 11-year veteran at the App Association, who will take on the role of INF’s chief of staff. The Innovators Network Foundation will use research, education, and innovative pilot programs to explore the future of work, and the role technology may play in addressing global unemployment and expanding entrepreneurship around the world.
Continuing the mission of the App Association, Morgan Reed will take on the role of president, and Chelsea Thomas will be promoted to executive director. Together they will lead efforts to promote an economic and regulatory environment that supports and rewards small and medium sized app developers, while providing a wealth of expertise and resources to raise capital, create jobs, and support innovation throughout the industry.
“Following the rapid development of the app economy, growing our staff will allow the App Association to continue to drive the issues, raise awareness, and contribute expertise on the important policies that impact small and medium sized app developers across our country,” said App Association president Morgan Reed. “The ecosystem is evolving, and our team provides the knowledge and expertise to help all players within the app economy thrive and grow.”
The App Association has also added new members to the government affairs and communications offices, who will support greater advocacy on behalf of the association’s 5,000 members. Graham Dufault has been named director of government affairs, following positions as counsel on the House Committee on Energy and Commerce, as well as telecom counsel and energy and commerce advisor for Congressman Lee Terry. Roya Stephens has joined the App Association as director of communications, after serving as deputy press secretary at the U.S. Trade Representative during the Obama Administration.
As the newest members of the App Association staff, their shared knowledge of telecom and international trade issues will help as they drive engagement with congressional and administration officials, lead outreach to members of the press, and support relationships with a variety of companies and organizations, to better address the policy issues that impact app developers and information technology firms across America.
The App Association is pleased to have a comprehensive and robust team as they prepare for their annual fly-in, the App Economy Conference (AppCon), on April 23rd. AppCon will bring 50 tech executives from App Association member companies to Washington, D.C. to engage with Members of Congress, committee staff, and administration officials to discuss an array of issues that impact American app developers, including cross border data flows, tax reform, and job growth.
To learn more about ACT | The App Association, please visit our website at www.actonline.org.
To learn more about the Innovators Network Foundation, please visit www.innov8rs.org/
For more information about AppCon, please visit www.appcon17.com.
Yesterday, Kansas Rep. Kevin Yoder (R) reintroduced the Email Privacy Act in the U.S. House of Representatives. The bill, which was previously passed by the House 419-0 in April before stalling in the Senate Judiciary Committee, would require law enforcement to get a warrant before searching emails and online communications stored for more than 180 days or saved in a cloud storage service.
In response, Morgan Reed, executive director of ACT | The App Association, released the following statement:
Our electronics communications policy has not kept up with technology. The current law was passed in 1986, before the internet revolution. Consumers now expect documents stored in online folders to have the same privacy rights as those stored in a filing cabinet.
The overwhelming vote in the Judiciary Committee and House of Representatives in 2016 reflected broad support in Congress and throughout the country to modernize outdated data protection laws. It is time we finish the job and update the law
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