#Mobile #Privacy Continues to Challenge Marketers, Developers & Lawmakers

The rapid growth and expansion in the mobile market presents a number of privacy and security issues for mobile software and hardware developers, platform operators, advertisers and marketers who collect, store, use and share consumer information. As awareness of privacy risks grow among consumers, legislators and regulators are increasing scrutiny of mobile privacy and privacy policies in mobile apps.

Businesses operating in the mobile industry are facing a widening array of Regulatory compliance issues. Staying abreast of legal risks and issues can be daunting. How can mobile operators and application developers spot trends and adjust strategies to start competitive? First, keep an eye on FTC activity. Second, monitor new bills coming up in Congress. Third, follow this blog, adlerlaw.wordpress.com.

FTC Privacy Enforcement Actions

Earlier this year, the FTC expanded mobile privacy obligations beyond software to include hardware makers when it announced a settlement with HTC America over charges that HTC failed to use adequate “security by design” in millions of consumer mobile devices. As a result, the company is required to patch vulnerabilities on the devices which include #Smartphones and #Tablets. The settlement, the first action involving a mobile device manufacturer and the new “Privacy By Design” guidelines, sheds some light on the legal risks for mobile device manufacturers and, to some extent, mobile application developers.

Congressional Privacy Laws, Bills & Initiatives

Not surprisingly, federal legislators are taking up the mantle of Consumer Privacy in the area of Mobile Applications. In January 2013, U.S. Rep. Hank Johnson, introduced his mobile privacy bill, The Application Privacy, Protection and Security Act of 2013, or the “APPS Act,”. The bill focuses on transparency, user control and security, mandating that an application 1) provide the user with notice of the terms and conditions governing the collection, use, storage, and sharing of the personal data, and 2) obtain the consent of the user to the terms and conditions. Significantly, the privacy notice is required to include a description of the categories of personal data that
will be collected, the categories of purposes for which the personal data will be used, and the categories of third parties with which the personal data will be shared.

The Bill also requires that application developers have a data retention policy that governs the length for which the personal data will be stored and the terms and conditions applicable to storage, including a description of the rights of the user and the process by which the user may exercise such rights in addition to data security and access procedures and safeguards.

App developers unaware of the data protection requirements may face significant risks and potential harm to their reputation among users of smart devices. If you have concerns about what key data protection and privacy legal requirements apply to mobile applications and the types of processing an app may undertake contact us for a mobile app legal audit. Vague or incomplete descriptions of the ways which a mobile app handles data or a lack of meaningful consent from end users before that processing takes place can lead to significant legal risk. Poor security measures, an apparent trend towards data maximisation and the elasticity of purposes for which personal data are being collected further contribute to the data protection risks found within the current app environment.

Learn more David M. Adler here.

World #Tech #Startup News Roundup

Canadian Tech Startups More Focused on Revenue than a Big Exit

Techvibes (blog)
According to a PwC report released last week, fewer Canadian tech startups are looking for buyers in order to exit the market, choosing instead to find ways to reach their next growth stage and generate revenue in Canada.

Ben Franklin Technology Partners helps startups arrive.

Lehigh Valley Business
CyOptics, once a startup that received funding and help from Ben Franklin, is just one success story, according to Laura S. Eppler, director of marketing for Ben Franklin Northeastern Pennsylvania.

7 startup lessons from the film industry

Ventureburn
At first glance you might not think there is much in common between the film industry and tech startups. I’m here to tell you differently. Both industries have their own set of challenges, whether you’re starting out, or refining your craft/company.

Database Startup Clustrix Builds Up its Bankroll

Wall Street Journal (blog)
Tech watchers once considered the database market pretty stagnant, at least in terms of new technology and new entrants. Suddenly it is anything but that, with Clustrix a prime example.

1871 anniversary spotlights Chicago startup growth

Techli
Leaders of the Chicago startup community released figures Friday regarding the city’s start-up growth coinciding with the first anniversary of 1871, one of the city’s start-up incubators. “Over the last year, the tech community has really come together.

Biz Stone’s new mystery startup Jelly nabs ex-Twitter veteran Kevin Thau

The Next Web
Rumors about the move have been circulating since late last month and follows the announcement that Ben Finkel is also involved at Jelly as Christopher Isaac “Biz” Stone’s fellow co-founder and Chief Technology Officer.

A start-up’s cool solution to manage heat – The Business Times

Business Times (subscription)
Thermal management solutions for lithium-ion batteries are also exactly what Gcorelab, a local clean tech startup, specialises in. Gcorelab is developing what it calls a “small liquid-based thermal management system” for electric vehicles.

Bowei Gai: A Worldwide Crusade to Connect the Global Startup Community

Tech in Asia
Gai When you’ve been co-founder and CEO of Snapture Labs, held the same titles at CardMunch, Inc. and are currently founder and chief ambassador at World Startup Report, you tend to attract attention when you enter the tech and startup community.

Tech Startup Develops Two-Click Checkout. – Yahoo! Finance

Finance: ALBUQUERQUE, N.M., May 2, 2013 /PRNewswire/ — Tech start-up @ Pay released its first public Application Programming Interface (API) today.

Silicon Valley based high tech start up in the Golf business, developing a cool product, is looking to expand its team in different disciplines including R&D.

Texas House Votes To Extend #Privacy Over Personal Emails

AUSTIN, Texas — A divided House vote provides momentum for Texas employees who wish to shield personal text messages, email passwords under a bill backed by Democratic State Rep. Hellen Giddings and given preliminary approval Thursday.

Proponents say Texas workers need the same social media protections provided in several other states. The bill prohibits employers from asking job applicants or employees for passwords to access their Facebook, Twitter or other personal accounts. Opponents argue it will provide “safe harbor” for employees to steal proprietary information at the workplace through their personal accounts.

No specific penalties are spelled out for employers who would violate the law.

The Texas law is another reminder of the ongoing evolution of Social Media law and regulation as legislators and private businesses struggle to understand how these technologies affect everyone’s rights, obligations and remedies.

If you or your business is concerned about social media legal and regulatory compliance, contact David Adler at Leavens, Strand, Glover & Adler. 866-734-2568 dadler@lsglegal.com.