A recent AAA study revealed that, although the pandemic has resulted in fewer cars on the road, traffic deaths have surged. Speeding, alcohol-impairment, and reckless driving has caused the highest levels of crashes seen in decades, and the National Safety Council estimates a 9% increase in roadway fatalities from 2020.
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EMEA IoT & CAV Legislative and Regulatory Roundup 2021 and Forecast 2022
In 2021, European lawmakers and agencies issued a number of proposals to regulate artificial intelligence (“AI”), the Internet of Things (“IoT”), connected and automated vehicles (“CAV”), and data privacy, as well as reports and funding programs to pursue the developments in these emerging areas. From the adoption of more stringent cybersecurity standards for IoT devices to the deployment of standards-based autonomous vehicles, federal lawmakers and agencies have also promulgated new rules and guidance to promote consumer awareness and safety. While our team tracks developments across EMEA, this roundup focuses on a summary of the key developments in Europe in 2021 and what is likely to happen in 2022.
Part I: Internet of Things
With digital policy being a core priority for the current European Commission, the EU has pursued a range of initiatives in the area of IoT. These developments tend to be interspersed throughout a range of policy and legislative decisions, which are highlighted below.
Connecting Europe Facility and IoT Funding
In July 2021, the European Parliament and Council of the EU adopted a regulation establishing the Connecting Europe Facility (€33.7 billion for 2021-2027) to accelerate investment in trans-European networks while respecting technological neutrality. In particular, the regulation noted that the viability of “Internet of Things” services will require uninterrupted cross-border coverage with 5G systems, to enable users and objects to remain connected while on the move. Given that 5G deployment in Europe is still sparse, road corridors and train connections are expected to be key areas for the first phase of new applications in the area of connected mobility and therefore constitute vital cross-border projects for funding under the Connecting Europe Facility. The Parliament had also called earlier for “stable and adequate funding” for investments in AI and IoT, as well as for building transport and ICT infrastructure for intelligent transport systems (ITS), to ensure the success of the EU’s data economy.
In May 2021, the Council adopted a decision establishing a specific research funding programme (€83.4 billion for 2021-2027) under Horizon Europe. In specifying the EU’s priorities, the decision identified the importance of IoT in health care, cybersecurity, key digital technologies including quantum technologies, next generation Internet, space, and satellite communications.
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Is the U.S. Congress Preparing a “Tech Accountability” Package?
In his State of the Union address last week, President Biden declared that he wants to: “strengthen privacy protections, ban targeted advertising to children, and demand tech companies stop collecting personal data on our children.” This statement comes just a couple of weeks after Senators Richard Blumenthal (D-CT) and Marsha
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NIST Publishes Recommended Criteria for Cybersecurity Labeling for Consumer Internet of Things (IoT) Products
On February 4, 2022, the National Institute of Standards and Technology (“NIST”) published its Recommended Criteria for Cybersecurity Labeling for Consumer Internet of Things (IoT) Products (“IoT Criteria”). The IoT Criteria make recommendations for cybersecurity labeling for consumer IoT products, in other words, for IoT products intended for personal, family, or household use.
The purpose of the publication, as described by NIST, is to identify “key elements of a potential labeling scheme.” The publication makes clear, however, that the scheme would not be established or managed by NIST, but rather “by another organization or program,” referred to in the publication as the “scheme owner.” The identity of the scheme owner is undetermined, but it “could be a public or private sector” entity.
The publication of the IoT Criteria represents another step toward a national cybersecurity labeling scheme for consumer IoT products. We should expect that the framework established by NIST in this publication will serve as a model for these requirements.
IoT Criteria Framework. The IoT Criteria establish recommended considerations for three key aspects of a potential cybersecurity IoT labeling program:
- Baseline Product Criteria
- Labeling
- Conformity Assessments
January 2022 Developments Under President Biden’s Cybersecurity Executive Order
This is the ninth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”). The first blog summarized the Cyber EO’s key provisions and timelines, and the second, third, fourth, fifth, sixth, seventh, and eighth blogs described the actions taken by various government agencies to implement the EO from June through December 2021, respectively.
This blog summarizes key actions taken to implement the Cyber EO during January 2022. As with steps taken during prior months, the actions described below reflect the implementation of the EO within Government. However, these activities portend further actions in February 2022 that are likely to impact government contractors, particularly those who provide software products or services to government agencies.
National Security Memorandum Issued on Application of Cyber EO Requirements to National Security Systems
On January 19, 2022, President Biden signed National Security Memorandum-8, “Memorandum on Improving the Cybersecurity of National Security, Department of Defense, and Intelligence Community Systems” (the NSM). The NSM sets forth requirements for National Security Systems (NSS) that are equivalent to or exceed the cyber requirements for Federal Information Systems set forth in the Cyber EO. The NSM also establishes methods for obtaining exceptions to these requirements for unique mission needs.
Section 1 of the NSM addresses how requirements set forth in the Cyber EO will be applied to NSS. In general, NSS are systems that involve: intelligence activities, cryptologic activities related to national security, command and control of military forces, equipment that is an integral part of a weapon or weapons system, or are critical to the direct fulfillment of military or intelligence missions.[1] The NSM states that Cyber EO Sections 1 (“Policy”) and 2 (“Removing Barriers to Sharing Threat Information”) apply to NSS in their entirety, except that the Director of the National Security Agency (“NSA”) (defined as the “National Manager”) shall exercise with respect to NSS the authorities granted the OMB Director and the Secretary of Homeland Security under Section 2 of the Cyber EO. This means, among other things, that companies that contract with DOD and other national security agencies and whose performance involves NSS, may be subject to the cyber incident reporting and standard contractual clauses promulgated in the Federal Acquisition Regulation pursuant to section 2 of the Cyber EO.
Section 1 of the NSM also requires the Committee on National Security Systems (CNSS) and the national security/intelligence agencies to take several actions to modernize NSS consistent with Section 3 of the Cyber EO. For example, the NSM requires all agencies that own or operate NSS to update their existing plans to use cloud technology and to develop plans to implement Zero Trust Architecture by March 18, 2022. The NSM further requires owners or operators of NSS to implement multifactor authentication and encryption of data-in-transit and data-at-rest on such systems by July 18, 2022. The NSM also requires NSS owners and operators to adhere to the standards for enhancing software supply chain security developed under section 4 of the Cyber EO except where “otherwise authorized by law” or where the National Manager grants an exception. Section 3 of the NSM sets forth the procedures and conditions for granting exceptions to NSS from the requirements of the Cyber EO.
In addition to the requirements described above, the NSM requires national security agencies to adhere to a process to be developed by the Director of NSA to identify and then inventory the NSS under their control according by April 19, 2022. This guidance and inventory will be critical to defining the scope of application of the requirements of the memorandum.
The NSM also requires such agencies to report all known or suspected compromises of or unauthorized access to such NSS to the Director of NSA in accordance with procedures to be developed by the Director of NSA. The NSM authorizes the Director of NSA to issue Emergency Directives and Binding Operational Directives to NSS owners and operators that are similar to the directives that the Cybersecurity and Infrastructure Security Agency (CISA) is authorized to issue to civilian agencies.
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U.S. AI and IoT Legislative Update – Year-End 2021
As 2021 comes to a close, we will be sharing the key legislative and regulatory updates for artificial intelligence (“AI”), the Internet of Things (“IoT”), connected and automated vehicles (“CAVs”), and privacy this month. Lawmakers introduced a range of proposals to regulate AI, IoT, CAVs, and privacy as well as
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November 2021 Developments Under President Biden’s Cybersecurity Executive Order
Overview of South Africa’s Draft National Data and Cloud Policy
If there is a silver lining to most crises, the accelerated move toward digitized commerce globally and in Africa may be one positive outcome of the COVID-enforced lockdown. It is welcome news there that the South African Minister of Communications and Digital Technologies (“Minister”) published the Draft National Data and
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IoT Update: FCC to Open Inquiry into Spectrum Needs for Growth of the Internet of Things
Last week, the office of Acting FCC Chairwoman Jessica Rosenworcel released a draft Notice of Inquiry (NOI) regarding spectrum availability and requirements to support the growth of Internet of Things (IoT). The FCC will consider this NOI, which is intended to collect information and does not propose rules, in its
FCC Set to Ease Rules that Have Limited Pre-Sales and Other Marketing of Some New Electronic Devices
Last Thursday, the Federal Communications Commission (“FCC”) announced that it will consider a Report and Order at its June 21, 2021 open meeting that would permit the importation and conditional sale of radiofrequency (RF) devices prior to obtaining equipment authorization in some circumstances. The consumer electronics industry has advocated for