Internet of Things (IoT)

This update highlights key mid-year legislative and regulatory developments and builds on our first quarter update related to artificial intelligence (“AI”), connected and automated vehicles (“CAVs”), Internet of Things (“IoT”), and cryptocurrencies and blockchain developments.

I. Federal AI Legislative Developments

In the first session of the 119th Congress, lawmakers rejected a proposed moratorium on state and local enforcement of AI laws and advanced several AI legislative proposals focused on deepfake-related harms.  Specifically, on July 1, after weeks of negotiations, the Senate voted 99-1 to strike a proposed 10-year moratorium on state and local enforcement of AI laws from the budget reconciliation package, the One Big Beautiful Bill Act (H.R. 1), which President Trump signed into law.  The vote to strike the moratorium follows the collapse of an agreement on revised language that would have shortened the moratorium to 5 years and allowed states to enforce “generally applicable laws,” including child online safety, digital replica, and CSAM laws, that do not have an “undue or disproportionate effect” on AI.  Congress could technically still consider the moratorium during this session, but the chances of that happening are low based on both the political atmosphere and the lack of a must-pass legislative vehicle in which it could be included.  See our blog post on this topic for more information.

Additionally, lawmakers continue to focus legislation on deepfakes and intimate imagery.  For example, on May 19, President Trump signed the Tools to Address Known Exploitation by Immobilizing Technological Deepfakes on Websites and Networks (“TAKE IT DOWN”) Act (H.R. 633 / S. 146) into law, which requires online platforms to establish a notice and takedown process for nonconsensual intimate visual depictions, including certain depictions created using AI.  See our blog post on this topic for more information.  Meanwhile, members of Congress continued to pursue additional legislation to address deepfake-related harms, such as the STOP CSAM Act of 2025 (S. 1829 / H.R. 3921) and the Disrupt Explicit Forged Images And Non-Consensual Edits (“DEFIANCE”) Act (H.R. 3562 / S. 1837).Continue Reading U.S. Tech Legislative & Regulatory Update – 2025 Mid-Year Update

Four Internet of Things (IoT) related tax relief provisions are due to expire on December 31, 2025.  Two bills were introduced in Brazil’s National Congress to extend these provisions and are currently in debate under a fast-track rule.  Companies that provide and implement IoT projects can engage congressional leaders to…

Continue Reading Brazil’s Internet of Things Tax Relief Due to Expire in 2025

On December 4, 2024, the Federal Communications Commission (the “Commission”) announced that it had selected UL Solutions to serve as the Lead Administrator for its Internet of Things Cybersecurity Labeling Program (the “IoT Labeling Program”).  The Commission also conditionally approved UL Solutions as a Cybersecurity Label Administrator (“CLA”) for the…

Continue Reading FCC Takes Next Step Towards U.S. Cyber Trust Mark

On September 20, 2024, California Governor Newsom signed into law SB 976, the Protecting Our Kids from Social Media Addiction Act (the “Act”). The Act defines and prohibits an “addictive internet-based service or platform” from providing an “addictive feed” to a minor unless the platform has previously obtained verifiable parental consent. The Act will take effect on January 1, 2025, and the California Attorney General will promulgate regulations on age assurance and parental consent by January 1, 2027. This post summarizes the law’s key provisions. The law includes several technical definitions and exceptions, which are explained at the end of this post.Continue Reading California Passes Law to Protect Minors from “Addictive Feeds”

On July 30, 2024, the Federal Register published the Federal Communications Commission (the “FCC”) Report and Order (the “Order”) creating a voluntary cybersecurity labeling program for Internet of Things (“IoT”) devices.  As reported in our blog post issued shortly before the Order was approved on March 14, 2024, this program…

Continue Reading FCC Adopts Order Establishing Voluntary IoT Labeling Program

A new post on the Covington Inside Privacy blog discusses remarks by California Privacy Protection Agency (CPPA) Executive Director Ashkan Soltani at the International Association of Privacy Professionals’ global privacy conference last week.  The remarks covered the CPPA’s priorities for rulemaking and administrative enforcement of the California Consumer Privacy Act…

Continue Reading CPPA Executive Director Remarks on Policy and Enforcement Priorities

Yesterday, the European Commission, Council and Parliament announced that they had reached an agreement on the text of the Cyber Resilience Act (“CRA”). As a result, the CRA now looks set to finish its journey through the EU legislative process early next year. As we explained in our prior…

Continue Reading The EU’s Cyber Resilience Act Has Now Been Agreed

On September 6, Senator Bill Cassidy (R-LA), the Ranking Member of the U.S. Senate Health, Education, Labor and Pensions (HELP) Committee, issued a white paper about the oversight and legislative role of Congress related to the deployment of artificial intelligence (AI) in areas under the HELP Committee’s jurisdiction, including health and life sciences.  In the white paper, Senator Cassidy disfavors a one-size-fits-all approach to the regulation of AI and instead calls for a flexible approach that leverages existing frameworks depending on the particular context of use of AI.  “[O]nly if our current frameworks are unable to accommodate . . . AI, should Congress look to create new ones or modernize existing ones.”  The Senator seeks public feedback on the white paper by September 22, 2023.  Health care and life sciences stakeholders should consider providing comments. 

This blog outlines five key takeaways from the white paper from a health care and life sciences perspective. Note that beyond health and life sciences issues, the white paper also addresses considerations for other areas, such as use of AI in educational settings and labor/employment implications created by use of AI.

5 Key Takeaways for AI in Health Care and Life Sciences

The white paper – entitled “Exploring Congress’ Framework for the Future of AI: The Oversight and Legislative Role of Congress Over the Integration of Artificial Intelligence in Health, Education, and Labor” – describes the “enormous good” that AI in health care presents, such as “the potential to help create new cures, improve care, and reduce administrative burdens and overall health care spending.”  At the same time, Senator Cassidy notes that AI presents risks that legal frameworks should seek to minimize.  Five key takeaways from the white paper include:Continue Reading Framework for the Future of AI: Senator Cassidy Issues White Paper, Seeks Public Feedback

Updated August 8, 2023.  Originally posted May 1, 2023.

Last week, comment deadlines were announced for a Federal Communications Commission (“FCC”) Order and Notice of Proposed Rulemaking (“NPRM”) that could have significant compliance implications for all holders of international Section 214 authority (i.e., authorization to provide telecommunications services from points in the U.S. to points abroad).  The rule changes on which the FCC seeks comment are far-reaching and, if adopted as written, could result in significant future compliance burdens, both for entities holding international Section 214 authority, as well as the parties holding ownership interests in these entities.  Comments on these rule changes are due Thursday, August 31, with reply comments due October 2.

Adopted in April, the FCC’s item proposing the new rules also includes an Order requiring all holders of international Section 214 authority to respond to a one-time information request concerning their foreign ownership. Although last week’s Federal Register publication sets a comment deadline for the proposed rules, the reporting deadline for the one-time information request has not yet been established.  However, because the FCC has fulfilled its statutory obligations regarding the new information collection presented by the one-time reporting requirement, carriers — as well as entities holding an ownership interest in these carriers — should prepare for the announcement of the reporting deadline.

The FCC’s latest actions underscore the agency’s ongoing desire to closely scrutinize foreign ownership and involvement in telecommunications carriers serving the U.S. market, as well as to play a more active role in cybersecurity policy. These developments should be of interest to any carrier that serves the U.S. market and any financial or strategic investor focused on the telecommunications space, as well as other parties interested in national security developments affecting telecommunications infrastructure.

Proposed Rule Changes for International Section 214 Authority

The FCC’s proposed changes to its regulation of international Section 214 authorizations generally concern additional compliance, disclosure, and reporting requirements. The FCC’s proposed rule changes are far-reaching, but the most notable of the proposals concern the following:Continue Reading Comments Due August 31 on FCC’s Proposal to Step Up Review of Foreign Ownership in Telecom Carriers and Establish Cybersecurity Requirements

On July 18, 2023, Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel announced that she has circulated a proposal to the FCC’s commissioners to create “a voluntary cybersecurity labeling program that would provide consumers with clear information about the security of their Internet-enabled devices.”

According to the text of her announcement…

Continue Reading FCC Chairwoman Rosenworcel Announces Proposed Voluntary Cybersecurity Labeling Program for Smart Devices