International Law

Impact on IP: What Effect Will The US-China “Phase 1” Trade Deal Have

Ian Sannes, MJLST Staffer

After 18 months of intense negotiations, the US and China finally reached an agreement with many provisions covering a wide variety of topics. Although the agreement has a focus on tariffs, it also addresses intellectual property (IP) rights both in China and the US. This deal is referred to as “Phase 1” and went into effect last week. In part, the deal is meant to increase and facilitate the ability of US businesses to operate in China.

From the US point of view, this deal strengthens IP rights of US patents in China. In fact, this strengthening of IP rights is arguably the most significant part of the entire deal. However, China also benefits from this because, as the previous deputy director of the National Economic Council Clete Willems said, “better intellectual property protection means more investment in China.” This makes sense, if US products are protected in China, then US companies will want to invest heavily to develop those products in a country that has more purchasing power than any other country in the world.

So, what changes to IP protections have been made?

The cornerstones of the IP protections implemented in the deal are wide-ranging. They include increasing trade secret protections, increasing pharmaceutical IP protections, extending patent terms, combating counterfeits, reforming trademark provisions, and improving judicial enforcement in IP cases. Some of these changes are discussed in more detail below.

The deal also put a stop to “forced technology transfers” that require US firms to share technology with Chinese companies to compete in their market. However, some are concerned that since this provision requires a wronged company to file a complaint with the Office of the US Trade Representative that may depend on other Chinese government approvals, this provision may be hard to enforce in practice.

Many US companies believe certain judicial proceedings in China are a pretext to force them to disclose valuable trade secrets. Phase 1 prohibits any proceeding from forcing such unauthorized disclosure of information. The deal also shifts the burden to the defendant in a trade secret case to prove their innocence after the plaintiff survives dismissal of the case. The deal brings the Chinese definition of trade secret more in line with the definition used in the US by expanding it to include “electronic intrusion and breach of confidentiality.”

The deal also increases patent terms for pharmaceuticals “to compensate for unreasonable delays” made in granting the pharmaceutical patents. This makes it easier for US drugs that took many years to make it through the Chinese patent system to recoup the development costs and to turn a profit. The deal allows for up to five years of extension to patent terms. Furthermore, the deal includes provisions for “effective and expeditious” actions against “counterfeit medicines and biologics, including active pharmaceutical ingredients, bulk chemicals, and biological substances.”

Finally, the deal also increases the severity of punishments for stealing or infringing IP rights. Besides improvements to detect and stop infringing counterfeits, audits may also be used to show that the Chinese government itself only uses licensed software.

These are just some of the many provisions included in Phase 1. The deal helps to make the US and Chinese IP systems “further aligned” and this can create efficiencies in standardization, improve clarity, and promote cooperation. This deal strengthens both the US and China economies and promotes trade and investment in each country while protecting IP. Furthermore, a Phase 2 trade deal is likely in the future. Hopefully, this new deal will include more IP protections for both countries and strengthen the economic bond between the countries even more.


Keeping Pace with Crimes in Space

Katherin Nixon, MJLST Staffer

At the end of August, something peculiar happened. Something extraterrestrial. No, NASA did not discover aliens on Mars (although that would have been peculiar and extraterrestrial too). Instead, the first crime was allegedly committed in Space—by a human being. Anne McClain was on a six-month mission aboard the International Space Station (“ISS”) when she accessed her estranged spouse’s bank account using NASA’s computer network. McClain has since been accused of identity theft and improper access to private financial records. Regardless of her innocence or guilt, this raises two important issues for law-oriented earthlings: (1) what laws govern Space; and (2) who has jurisdiction?

Among the laws that govern Space, two are especially noteworthy in this case. According to Article VIII of the Outer Space Treaty of 1967, “A State Party to the Treaty on whose registry an object launched into outer space is carried shall retain jurisdiction and control over such object, and over any personnel thereof, while in outer space or on a celestial body.” This would seem to suggest the United States maintains jurisdiction in this case. But, it is important to remember the crime was committed aboard the ISS. On January 29, 1998, fifteen governments came together to sign the International Space Station Intergovernmental Agreement (“IGA”). As the name indicates, this agreement governs all things ISS. Article 22 of the IGA states, “Canada, the European Partner States, Japan, Russia, and the United States may exercise criminal jurisdiction over personnel in or on any flight element who are their respective nationals.” Since McClain is a United States citizen—and the alleged crime was committed against another United States citizen—the United States has jurisdiction over this case.

However, what if the crime was committed against say—a Japanese citizen or a Russian citizen? This is the entry point for a black hole. Consider this hypothetical offered by Michelle Hanlon, professor of air and space law at the University of Mississippi: “Astronaut A from Country A stole a watch from Astronaut B from Country B, and it happened in a part of the ISS that belonged to Country C.” (Doesn’t this feel like the Space version of Civil Procedure?) In that situation, the IGA would require the different countries to come together in order to discuss their prosecutorial interests. Assuming the three countries could come to an agreement on whose jurisdiction governs, there would not be much of an issue.

Traveling further down the black hole, what happens when Space tourism takes off? With Space tourism, the discussion would involve private citizens and private companies instead of government employees and government entities. As noted by Loren Grush and The Verge, “[I]f someone from the U[nited] S[tates] gets hurt on a private Japanese space hotel, along with other passengers from Spain and Singapore, it’s unclear exactly how to proceed.” The Outer Space Treaty would likely be the start. Yet, countries with companies interested in Space tourism should come together to discuss a new agreement. The new agreement could be modeled after the IGA, but should include an added level of specificity.

As it turns out, keeping pace with crimes in space will be no easy task. Luckily, this will not be a pressing issue anytime in the near future. For now, it is an interesting thing to ponder as our presence in Space grows. The McClain case—despite its relative simplicity—serves as a preview for the more complicated cases that will eventually come.


Practical Results of Enforcing the GDPR

Sooji Lee, MJLST Staffer

After the enforcement of the European Union’s(“EU”) General Data Protection Regulation (“GDPR”), Facebook was sued by one of its shareholders, Fern Helms, because its share price fell more than “20 percent” in July 27, 2018. This fall in stock price occurred because the investors were afraid of the GDPR’s potential negative impact on the company. This case surprised many people around the world and showed us how GDPR is sensational regulation that could result in lawsuits involving tremendous amounts of money. This post will articulate what has occurred after enforcement of this gigantic world-wide impacting regulation.

Under GDPR, regulated entities (data controllers and data processors) must obtain prior “consent” from their users when they request customers’ personal data. Each member country must establish Data Protection Authority (“DPA”) to comply with the GDPR. This regulation has a broad applicable range, from EU corporations to non-EU corporations that deal with EU citizens’ personal data. Therefore, after the announcement of this regulation, many United States based global technology corporations which conduct some of their business in European countries, such as Google and Facebook, commenced processes to comply with the GDPR. For example, Facebook launched its own website which explains its effort to comply with GDPR.

Surprisingly, however, despite the large-scale preparation, Google and Facebook were sued for breach of the GDPR. According to a report authored by IAPP, thousands of claims were filed within one month the GDPR’s enforcement date, May 25, 2018. This fact implies that it is difficult to abide by GDPR for current internet-based service companies. Additionally, some companies that are not big enough to prepare to comply with the GDPR, such as the Chicago Tribune and the LA Times, temporarily blocked EU users from its website and some decided to terminate its service in the EU.

One interesting fact is that no one has been fined under GDPR yet. A spokesperson for the United Kingdom’s Information Commissioner’s Office commented “we are dealing with the first GDPR cases but it’s too early to speculate about fines or processing bans at this stage.” Experts expect that calculating fines and processing bans could take another six months. These experts foresee that once a decision is rendered, it could set a standard for future cases which may be difficult to change.

The GDPR, a new world-wide impacting regulation, just started its journey toward proper consumer data protection. It seems many of the issues involved with the GDPR are yet to be settled. For now, no expert can make an accurate prediction. Some side-effects seem inevitable. So, it is time to assess the results of the regulation, and keep trying to make careful amendments, such as expanding or restricting the scope of its applicable entities, to adjust for arising problems.


The International Whaling Commission Sans Japan: What it Means for the Whales

Allie Jo Mitchell, MJLST Staffer

On December 25, 2018 Japan announced that it would withdraw from the International Convention for the Regulation of Whaling (“ICRW”) and leave the international whaling commission (“IWC”) in order to resume commercial whaling.  A statement by Japan’s Chief Cabinet Secretary explained that the decision to withdraw was based on the failure of the IWC to take into account all stated objectives of the ICRW, including the “orderly development of the whaling industry” and the creation of sustainable commercial whaling. Citing the cultural and economic significance commercial fishing has played in Japan, the country rested its decision on its determination that commercial whaling could resume without negatively impacting cetacean resources.

International condemnation over Japan’s decision was swift, with Greenpeace Japan questioning the health of Japan’s whaling stock and calling the decision “out of step with the international community, let alone the protection needed to safeguard the future of our oceans and these majestic creatures.” The UK’s environment secretary tweeted that “[t]he UK is strongly opposed to commercial whaling and will continue to fight for the protection and welfare of these majestic mammals” and a diplomat of Norway called the decision to break away from the global agreement “dangerous.” On January 14, 2019 the IWC issued a statement that it had received notification from Japan that it would withdraw from the ICRW in 2019.  Recognizing the role Japan had played, the chair of the IWC specifically mentioned the controversy surrounding commercial whaling within its member group, offering hope that the IWC would continue to work on a variety of issues in which there was common ground.  

Now that Japan has left the IWC, it will begin the commercial hunting of whales in July of 2019 within its territorial seas and exclusive economic zone that exists within 200 miles of Japan’s coasts. Japan will also remain an observer of the IWC and “continue to contribute to the science-based sustainable management of resources.” Importantly, without it’s permit to kill whales for research under the ICW, Japan will now cease the taking of whales in the high sea, including the Antarctic Ocean and the Southern Hemisphere, as required by international law. Japan had previously killed whales in the Antarctic Ocean under the auspicious guise of research. In fact, in 2014 the International Court of Justice found that Japan’s whale research program was violating the IWC’s moratorium on commercial whaling because Japan was using lethal methods where none were required. Despite this holding, in 2016 a Japanese “research” expedition in the Antarctic killed 333 whales (207 of which were pregnant) with the meat from the whales sold on the commercial market.

But what does all this really mean for the whales of the world? There are some positives that may come from Japan withdrawing from the IWC, but these could easily be outweighed by the negatives. Because Japan will have to limit its commercial whaling to 200 miles within Japanese coasts, whales outside of this region, particularly whales in the Antarctic and southern hemisphere, will be in luck. However, whales within Japan’s territorial sea and economic zone, where studies suggest stock levels are low, won’t fare so well.

Furthermore, Japan may not only shift its catch to Japanese waters but could actually increase the number of whales it kills each year with little to no oversight from the international community. This could severely impact whale species, both endangered and non-threatened, and deplete whale stocks within Japan’s territorial sea. As Astrid Fuchs, program lead of the Whale and Dolphin Conservation explained, “[t]he oversight that the IWC was having over Japan’s whaling will now be lost. We won’t know how many whales they are catching, we won’t know how they will report it. It might spell doom for some populations.”

Perhaps the greater danger lies in what Japan’s withdrawal from the IWC may signal to other countries. As Japan stated in its public announcement, “Japan hopes that more countries will share the same position to promote sustainable use of aquatic living resources based on scientific evidence, which will thereby be handed down to future generations.” Fuchs is worried about the precedent this might set, particularly in countries with an interest in commercial whaling and whale meat including South Korea and other Pacific and Caribbean island nation states.

On the bright side, decreasing interest and consumption of whale meat may play a bigger role in protecting whales from commercial hunting than Japan’s involvement with the IWC. Demand for whale meat is the lowest in Japan since WWII, with the average consumption of whale just one ounce per person a year. A recent poll also showed that only 11% of Japanese people strongly support the whaling industry. If the economics of commercial whaling are not as strong as imagined, commercial whaling my peter out on its own in Japan.

The world will likely have to wait and see what the real effect of Japan’s withdrawal from the IWC is on the health and vitality of whale species and whale stocks. In the meantime, there are a myriad of other human caused dangers to whales from bycatch, plastic pollution, noise pollution, oil & chemical pollution, marine traffic, and climate change. Humans have a history of driving whale species to extinction, wreaking havoc on whaling stocks, and threatening the very survival of whales for their personal use and consumption. Despite Japan’s withdrawal from the IWC, it will be necessary for all nations to look beyond commercial whaling and address the continual threats humans pose to whales and other marine life.


Who Gets to Speak for Earth? Thoughts on the Anniversary of the Arecibo Message

Will Dooling, MJLST Staffer

November 16th marks the 43rd anniversary of the Arecibo message, an attempt to broadcast a powerful radio signal from the Arecibo Radio Telescope in Puerto Rico to the heart of the Messier 13 galaxy, more than 25,000 light years away. The Arecibo message was largely ceremonial, or experimental, no one seriously expects to hear back. However, the experiment posed interesting questions about how, exactly, humans ought to go about broadcasting messages to extraterrestrials, and who gets to speak for humanity.

If these questions seem far-fetched, that is only because we, as a society, have grown less ambitious in our hopes for space exploration. In the heady days of the early space race, these questions were seriously considered by NASA and the UN. The Arecibo Message was not a lone experiment: both the Pioneer and Voyager space probes, launched at about the same time as the Arecibo message, carried plaques designed to be easily deciphered by whoever, or whatever, would happen upon them in the future. Four decades later, well into the 21st century, we have the first signs of a robust private space industry and serious proposals in place for mining asteroids and lunar tourism but we still have not resolved the questions posed by the Arecibo Message. Who gets to speak for humanity? Should we even be broadcasting right now?

Currently, several large-scale projects are in place with the primary purpose of locating extraterrestrial life in solar systems beyond our own. By far the most ambitious are the continuing efforts of the SETI (Search for Extraterrestrial Intelligence) Institute. SETI is a United States nonprofit organization funded almost entirely by private charitable donations. Some of its largest donors include tech giants William Hewlitt, David Packard, and Paul Allen. SETI largely devotes its time to hunting for radio signals using telescope arrays all over the world. SETI uses this approach because it is relatively easy to hunt for unusual radio signals. A few nations have tried more direct attempts: NASA’s space-based Kepler telescope, and a related French mission called COROT, both launched in part to analyze the chemical composition of planets in nearby solar systems, to see if they could detect chemical compounds that could only form on planets with complex biospheres. FAST (the Five-hundred-meter Aperture Spherical Telescope), completed in 2016, is the largest conventional radio receiver on earth, it was built by China in part to hunt for extraterrestrial radio sources in a manner similar to the US’s SETI.

All these are attempts to locate extraterrestrial life. What should we do if we find any, and should we be sending any more messages in the meantime? The past few years have seen a renewed interest in actively contacting extraterrestrials via Arecibo-like radio broadcasts. (See for example 2017’s Tromsø broadcast from a radio observatory in Norway to the nearby red dwarf star GJ 273). There have even been proposed commercial broadcasts where customers could pay for the novel experience of having personal messages broadcast into space. This increased interest in broadcasting has provoked some controversy: In 2016, a group of prominent “futurists” including astronomer Lucianne Walkowicz and Tesla CEO Elon Musk signed and circulated a letter objecting to any active attempts to contact extraterrestrial life. The letter expressed concern that the content of any deliberate communications should result from international consensus not “a decision based upon the wishes of a few individuals with access to powerful communications equipment.” The letter called for “vigorous international debate by a broadly representative body prior to engaging further in this activity.” It opened with an even more dire observation: “We know nothing of ETI’s [Extraterrestrial Intelligence’s] intentions and capabilities, and it is impossible to predict whether ETI will be benign or hostile.”

Ultimately, active communication with extraterrestrial life is an issue rather like the militarization of space and climate change. It is an international problem that requires international regulatory solutions. Individual actors have little incentive to self-regulate: the presence of any single unregulated actor makes the regulation ineffective. Neither the United Nations Committee on the Peaceful Uses of Outer Space nor the United Nations Office for Outer Space Affairs has taken a position on attempts to broadcast to extraterrestrial civilizations, though they could,and perhaps they should.

It is possible this is not an issue worth considering. It is possible that we are alone in the universe and there is nothing out there to hear us, through this would raise troubling questions of its own. It would mean humanity was a freak exception in an otherwise empty universe. It would mean that every other planet, around every other star, was completely devoid of life. It would be, in a word, weird. The alternative, only slightly less weird, is that something out there has the potential to hear us someday.  In the meantime, perhaps we should engage in “vigorous international debate” on this issue while it is still merely speculative.


In Space We Trust: Regulate the Race

By: Hannah Payne, MJLST Staffer

In 1999, the UN General Assembly launched “World Space Week,” an annual celebration observed from October 4th (the date of Sputnik’s launch in 1957) to October 10th (the day The Outer Space Treaty entered into force in 1967). This year’s theme was “Space Unites the World.” The UN said the theme “celebrates the role of space in bringing the world closer together.” Unfortunately, the words ring hollow in light of the U.S.’s Space Force plans, as well as the recent escalation of inter-planetary militarization by China, Russia and the EU. Additionally, activities of SpaceX and others raise concerns about privatization, space pollution and the plans of the uber-wealthy to leave the world behind. These forces threaten to marginalize the awe-inspiring exploration of space into a scheme concerned only with war, profit, and advancing inequality. The dominance of such interests calls for a coherent system of global space regulation.

Some have observed that many recent activities violate the 1967 Outer Space Treaty, which declared: “The exploration and use of outer space . . . shall be carried out for the benefit and in the interests of all countries, irrespective of their degree of economic or scientific development, and shall be the province of all mankind.” The treaty also states that space and all celestial bodies are unowned and open to exploration by all. The U.S. and over 100 countries signed and ratified it, and America did not reserve the right to alter its obligations, as it often does in agreements. However, with no real international enforcement mechanism and our ceaseless profit-seeking, countries have—and will continue to—disregard the goals of the 1967 agreement. Last year, Ted Cruz expressed excitement that “the first trillionaire will be made in space.” He proposed amending the treaty to foster commercialization – and correct its erroneous assumption that worthy goals exist besides wealth and power. His motive seems to be formalistic, as was Congress’ in 2015 when it declared in the Commercial Space Launch Competitiveness Act that “the United States does not, by enactment of this Act, assert sovereignty . . . exclusive rights . . . or ownership of, any celestial body[,]” but in the same act granted U.S. citizens the right to own and sell any “space resource.” Though the U.S. track record of treaty violations makes their disregard of the agreement perhaps unsurprising, the serious consequences of space militarization and privatization call for critical advancement in space regulation.

From an environmental law perspective, the language of the 1967 treaty evokes the seldom-used Public Trust Doctrine (PTD). Traced back to the Roman era, the Public Trust Doctrine is described as “requir[ing] government stewardship of the natural resources upon which society . . . depends for continued existence.” The PTD places the government/sovereign as the trustee, obligated to protect the rights of the public/beneficiary in the trust, which is comprised of things like navigable waterways. It has mostly been applied to water rights, and successfully reclaimed property for the “public good” in Illinois and California. However, in 2012 the Supreme Court suggested that the PTD is no stronger than state common law. Even so, the doctrine should be remembered by those who think the privileged cannot, by right, hoard or destroy resources – including those in space. In the 1970s, Joseph Sax argued for the PTD’s use as sweeping environmental common law. Some have since theorized about the extension of the PTD to space. These scholars identify issues such as the lack of a sovereign to act as trustee. That problem would not likely be solved by allowing every country to exert self-interested sovereignty in space. At least no one has been so bold as to outright claim the moon – yet.

The PTD is just one tool that may be useful in designing a peaceful move forward. The Expanse, a near-future science fiction series in which humanity has colonized the solar system, offers a thought-provoking look ahead. Earth and the moon are governed by the UN. Mars is a sovereign as well, and the asteroid belt a colonial structure with fractured governance. Space is highly commercialized and militarized, and personal opportunity is hard to come by – but humanity has avoided self-destruction. Their global governance allows for some cooperation between Earth and Mars in space. Depending on one’s dreams of the future, the situation represents an overpopulated, inefficiently run hellscape – or a less-bad option out of the possibilities that now seem likely. It begs the question – how do we expand while avoiding astronomical inequality and self-destruction?

Perhaps it is nearly impossible, but Earth needs real, global regulation of outer space. A weak U.N. cannot do it; private companies and wealthy countries should not be given free reign to try. Last month, the U.N. held the First United Nations Conference on Space Law and Policy.  It’s good to see the international community ramping up these discussions. Hopefully, the PTD’s underlying philosophy of equitable preservation will be central to the conversation. Done right, the exploration of space could be the most inspiring, community-building, and even profitable experience for humanity. If approached thoughtfully, inclusively, carefully –  we could have much more than just a Space Force.


The Great Minnesota Divide: Can a Solution to Address the Urban/Rural Split Over Copper-Nickel Mining Come from Conservation Efforts Abroad?

Allie Jo Mitchell, MJLST Staffer

Two different companies are attempting to undertake copper-nickel mining projects in the Superior National Forest on watersheds that feed Lake Superior and the Boundary Waters Canoe Area (the nation’s most popular national wilderness area). Copper-nickel mining would be new to the Iron Range, a region in Northeastern Minnesota that has long been mined for taconite, or iron ore. Support or opposition over copper-nickel sulfide mining in Minnesota tends to trend along the urban-rural divide.

For instance, a survey conducted by a pro-mining group found that 57% of voters in the Iron Range, support copper-nickel mining. Compare this with a poll paid for by Save the Boundary Waters that showed statewide 70% of Minnesota voters opposed this new type of mining in the state. This urban-rural divide is not an unheard of phenomenon. The New York Times published an in depth article in 2017 exploring the rift between the “working class” and “progressive activists” as played out in the fight over these new mining proposals in Northern Minnesota.

Both sides of the argument tend to paint in broad brush strokes. Advocates of the mines want the freedom to earn a steady income in a region where their family has– often– been living for generations. They see new mining projects as a way to provide economic development and stability to a region reeling from decades of job losses and a shrinking population. They also believe copper-nickel mining can be done without jeopardizing the environment. However, Minnesota’s regulations have not been updated since the 1990s and are not adequately adapted for this new type of mining. Furthermore, copper-nickel sulfide mines have been the cause of devastating environmental disasters in British Columbia and Chile.

Opponents, on the other hand, believe that the BWCA watershed, Lake Superior, and Superior National Forest contain some of Minnesota’s most pristine waters and wild areas. They fear that the destructive impacts of copper-nickel mining could destroy some of Minnesota’s greatest treasures. Opponents also contend that ecotourism and a growing market for outdoor recreation can revitalize the slumped region and replace an economy centered around mining. Despite these claims, ecotourism jobs tend to be seasonal and are unlikely to replace the high-wage jobs mining offers. As pointed out in the NYT article, there’s also a hypocrisy to “elitists” living in urban centers dictating what rural Northern Minnesotan’s can and cannot do with the land while benefiting from metals produced from mining.

Perhaps this harsh dichotomy doesn’t have to exist. Minnesota’s BWCA and Lake Superior offer some of the world’s most abundant and pristine fresh water resources. In an era rife with water shortages/crises, extreme heat, and rampaging wildfires, the immense value of these resources shouldn’t be taken for granted. The BWCA also provides an escape for many from a loud, noisy, and interconnected world.

One possible solution is to look outside the United State’s borders at successful programs centered around payments for environmental services (“PES”). These programs can “encourage projects that enhance restoration, production, and rural development.” An example is the UN REDD+ program which creates financial value for carbon stored in forests by offering incentives for developing countries to reduce carbon emissions from deforestation/degradation. The Guardian has compared PES programs to a public utility that generates electricity, “[j]ust as we pay for electricity services, and thus ensure their continuing provision, so . . . should [we] pay for the climate service that tropical forests provide.” In fact, carbon offset credit markets now exist where individuals can pay for carbon reduction/eliminating services to  offset their carbon footprint.

While the resources the BWCA, Lake Superior, and the Superior National Forest offer are distinct from carbon sequestration services of forests in tropical regions, the fundamental principles behind PES can still be applied. Because the proposed mines would sit on public lands, payments for land preservation would need to be returned to communities with a focus on economic stimulation of the region. While direct payments have worked in other contexts (e.g. giving money directly to residents of neighboring communities that would be harmed by a moratorium on mining), this would not negate the social/cultural need many have to work a steady job. Furthermore, if the state attempted to transfer payments to Iron Range residents through the tax system, it could face equal protection challenges. See Zobel v. Williams, 457 U.S. 55 (1982) (holding that a taxation scheme wherein residents were paid a graduated rebate based on how many years they had lived in-state violated the equal protection clause).

Ultimately, a PES program in Minnesota would raise significant legal and cultural implications. But if 70% of Minnesotan’s oppose copper-nickel mining in Northern Minnesota, maybe they’d be willing to pay to keep that wilderness wild.


New Data Protection Regulation in European Union Could have Global Ramifications

Kevin Cunningham, MJLST Staffer

 

For as long as the commercial web has existed, companies have monetized personal information by mining data. On May 25, however, individuals in the 28 member countries of the European Union will have the ability to opt into the data collection used by so many data companies. The General Data Protection Regulation (GDPR), agreed upon by the European Parliament and Council in April 2016, will replace Data Protection Directive 95/46/ec as the primary law regulating how companies protect personal data of individuals in the European Union. The requirements of the new GDPR aim to create more consistent protection of consumer and personal data across the European Union.

 

Publishers, banks, universities, data and technology companies, ad-tech companies, devices, and applications operating in the European Union will have to comply with the privacy and data protection requirements of the GDPR or be subject to heavy fines (up to four (4) percent of annual global revenue) and penalties. Some of the requirements include: requiring consent of subjects for data processing; anonymizing collected data to protect privacy; providing data breach notifications within 72 hours of the occurrence; safely handling the transfer of data across borders; requiring certain companies to appoint a data protection officer to oversee compliance of the Regulation. Likewise, the European Commission posted on its website that a social network platform will have to adhere to user requests to delete photos and inform search engines and other websites that used the photos that the images should be removed. This baseline set of standards for companies handling data in the EU will better protect the processing and movement of personal data.

 

Companies will have to be clear and concise about the collection and use of personally identifiable information such as name, home address, data location, or IP address. Consumers will have the right to access data that companies store about the individuals, as well as the right to correct false or inaccurate information. Moreover, the GDPR imposes stricter conditions applying to the collection of ‘sensitive data’ such as race, political affiliation, sexual orientation, and religion. The GDPR will still allow businesses to process personally identifiable information without consumer consent for legitimate business interests which include direct marketing through mail, email, or online ads. Still, companies will have to account

 

The change to European law could have global ramifications. Any company that markets goods or service to EU residents will be subject to the GDPR. Many of the giant tech companies that collect data, such as Google and Facebook, look to keep uniform systems and have either revamped or announced a change to privacy settings to be more user-friendly.


Privatizing the ISS, Deregulating Space Travel, and Making Money

Jon Watkins, MJLST Staffer

 

To many, space feels more exciting than it has been in years. SpaceX launched the Falcon Heavy recently to great fanfare and YouTube’s second-biggest live stream ever; the stream peaked at over 2.3 million concurrent viewers. In a move which is perhaps intended to ride the coattails of this popularity, the Trump administration recently announced a new policy intended to bolster the domestic space industry through deregulation and commercialization. While information discussing what the administration specifically wants to do is somewhat limited, some clues do exist. One of these clues is a NASA internal document which allegedly contains a proposal to turn the International Space Station over to private ownership by 2024.

Coverage of the ISS proposal tends to fall along predictably partisan lines- National Review is head-over-heels for the proposal, while Vox is strongly against it. However, both accounts fail to discuss whether the proposal would actually be legal. National Review suggests that private companies that pay the U.S.’s share of operations on the space station would automatically be permitted to conduct research on board. However, this is anything but clear. The ISS is governed by an inter-governmental agreement (IGA) that each of the fifteen governments involved in the ISS are signatories; Memoranda of Understanding (MOUs) between NASA and each other Space Agency in addition to several contractual and non-contractual agreements between space agencies. The UN Outer Space Treaty and other documents are incorporated into the IGA.

Articles 5 and 9 of the IGA vindicate National Review to some extent- utilization rights and jurisdiction are indeed derived from the provision of goods to the ISS. Article 9(3)(a) of the IGA in particular also seems to imply that private entities selected by partners (like NASA) may use “user elements” of the ISS, even though other private entities would not be able to do so. This probably makes it possible for NASA to transfer their use rights to a private entity, at least insofar as NASA has use rights over a portion of the ISS. However, NASA hasn’t actually provided that much of the ISS– while Russia owns the Zvezda, Pirs, Polsk, and Rassvet modules, NASA only owns the Zarya module outright, and shares ownership of the Destiny, Kibo, and Columbus modules with other agencies. This means that NASA has exclusive rights over a tiny portion of the ISS, and any private entity which purchased NASA’s rights would be forced to share all systems on the station in the same way NASA does currently.

Limiting the user rights to the portions owned by NASA isn’t the only limitation which would be faced by a private entity which were to purchase NASA’s rights in the ISS- the IGA and MOUs are filled with fairly detailed restrictions on behavior and research on the ISS, of which one of the most important is Article 9(5): “Each Partner shall assure access to and use of its Space Station elements to the other Partners in accordance with their respective allocations.” This is essentially an anti-monopolization provision, which is reasonable in the context of an international cooperative project, but may be a highly unappealing provision for a private entity. As another example, Article 11.6 of the MOU between NASA and the Russian Space Agency states that “the entire crew will operate under a single timeline for performance of all operations and utilization activities.” This is a similarly unappealing provision for a private entity which is interested in operating on its own schedule and performing its own research. It is unclear what private entity would want to operate under these restrictions, and no private entity has yet stated that they intend to do so.

Additionally, in what is likely a minor technicality, Article 16.3 of the MOU between NASA and the Russian Space Agency states that “the Parties undertake to grant high priority to their Space Station programs in developing their budgetary plans.” The Trump Administration’s allegedly expressed intent to eliminate government funding for the ISS may violate this provision of the MOU, since it means ISS funding is clearly not a “high priority.”

To be completely fair to the Trump Administration, the path they’ve chosen here is at least predictable. Much of the discussion of permits for switching launchpads in the announcement was referenced earlier in Gwynne Shotwell’s speech in October at the National Space Council, and the general trajectory of the space industry since the second Bush administration has been towards deregulation and commercialization. The Bush administration stated in the NASA Authorization Act of 2005 that NASA should “develop a sustained human presence on the Moon . . . as a stepping stone,” which has more than a facial similarity to the Trump administration’s refocus on developing a lunar base. The Obama administration was likely forced to defund some of these more expensive projects with the NASA Authorization Act of 2010 right after a major recession, but the Obama administration’s 2010 space policy purported to “[lean] farther forward in support of U.S. business interests than any previous space policy,” and recommended that the Federal Government “Minimize, as much as possible, the regulatory burden for commercial space activities.”

Deregulation and commercialization of the American space industry are therefore clearly nothing new. However, what is new are fairly aggressive proposals to use private rockets to get human payloads into space. Private rockets, an external safety report states, are insufficiently safe and an optimistic proposal to privatize NASA’s share of the ISS, a proposal which is likely legal under the international agreements governing the ISS.


Made in China: How IP Theft Became a Norm in China

Tiffany Saez, MJLST Staffer

 

While discussions regarding North Korea and trade have comprised much of President Trump’s tour around Asia insofar, the President has yet to arrive in China – China is the third stop of his Asia tour. This has left many speculating as to what will result from the President’s visit to Beijing. This may be since Trump advocated a stronger stance against China during his campaign and has taken no significant action with respect to China’s economic policies during his presidency.

 

In light of the President’s visit, however, some are already urging him to crack down on China’s human rights violations. Others are asking President Trump to confront China about North Korea’s nuclear threats. China’s rampant intellectual property theft is one issue that has long been overlooked by political agendas but deserves more attention. IP theft by China continues to present a serious threat to the US economy. Annual cost currently exceed $225 billion in counterfeit goods, pirated software, and theft of trade secrets; this figure is expected to reach $600 billion.

 

Chinese IP theft has slowly made its way into the spotlight following the release of the HiPhone in 2008. The HiPhone is a cheap Chinese knock-off of Apple’s iPhone. The HiPhone was just the beginning of a series of IP disputes between China and both American and European businesses. Many businesses have accused Chinese nationals of illegally reproducing their creations and then misleading consumers into thinking that they are purchasing authentic products.

 

With a weak IP regime that has done little to curb a growing copycat culture among Chinese businesses and individuals alike, it is no wonder that China has become the leading country for IP theft. The Chinese intellectual property and manufacturing policies in place are largely to blame for the increase in IP theft.

 

Boasting a population of 1.38 billion, China has become one of the world’s largest markets for companies looking to expand their marketplace. The country is not only full of potential consumers but it has also demonstrated its ability as a manufacturing powerhouse. Doing business in China, however, has proven to be rather problematic since a stake in one of China’s industries often entails a trade-off in terms of technology. That is because foreign firms that wish to do business in one of China’s industries are required to enter into joint ventures with local partners or share their technologies with the state’s regulatory agencies. Such partnerships often lead to IP theft by Chinese companies

 

The United States’ intellectual property disputes with China represent only a fraction of a much larger debate over IP rights in the global context. Proponents of IP rights insist that stronger rights are needed to foster innovation and encourage individuals to participate in research and development by ensuring they will be economically rewarded for their contributions. Meanwhile critics of stronger IP rights argue that such rights favor wealthier countries over developing ones. Even so, US companies, such as Apple and IBM, – who are often the first to be impacted by Chinese IP theft – are hoping that the Trump administration will capitalize on the trip to Beijing and finally take stronger measures against China’s lax IP laws.