A European Commission plan on artificial intelligence and data strategies envisions regulations to unlock business-to-business data; rules on data access and sharing; better infrastructure and platforms to run the data; and sector-specific actions in areas such as healthcare and cities, said European Internal Market Commissioner Thierry Breton Wednesday at a Brussels briefing. "The battle for industrial data starts now," said Breton. Europe missed the first wave of the data economy -- the use by big U.S. and Chinese platforms of people's personal data -- but it's well-placed to lead the world in trustworthy AI and the data economy because it has the largest, strongest industrial base, he said. Platforms must adapt to Europe, not vice versa, Breton warned: Soft law and shared governance are preferable, but the EC won't hesitate to regulate if platforms don't play ball. A white paper on AI sets out an approach based on excellence and trust,and stresses that high-risk AI systems, such as those involving the healthcare and police systems, must be transparent and under human control. The EC also plans to launch an EU-wide debate on the use of remote biometric identification (facial recognition). Legislation in the form of a digital services act and a European democracy action plan are expected later this year. Comments on the AI white paper are due May 19, and an esurvey on the data strategy is here. Stakeholders generally praised the strategies, with some reservations. The American Chamber of Commerce to the EU urged the EU to "collaborate with like-minded partners and remain open to foreign investors that share European values." ITI urged a "collaborative approach to regulation" and avoiding prescriptive policies that could stifle innovation. The European Telecommunications Network Operators' Association, GSMA, Computer and Communications Industry Association and BSA also commented. Privacy advocates and one think tank were more cautious. Consumers can benefit if the EU makes data access for companies easier, but "this must not lead to a race to the bottom and consumers must remain in control of what happens with their personal data," said the European Consumer Organisation. Europe must not allow deployment of mass surveillance and identification technologies without fully understanding their impacts on people, said European Digital Rights. The EU "has chosen the right goal but the wrong tactics," said the Center for Data Innovation. Among other "fundamental flaws," the concept of creating "European data spaces" fosters data localization and other protectionist measures; and the call for a new legislative framework for AI would impose additional regulatory costs on businesses using it, it said.

Discussions within the Commerce Department to expand U.S. export control jurisdiction over foreign exports to Huawei would have a chilling effect on the U.S. semiconductor industry, said Semiconductor Industry Association President John Neuffer. Current U.S. export restrictions on Huawei are already hurting the industry’s ability to sell to China, said Neuffer during an Information and Technology Innovation Foundation workshop Tuesday. China is about 35 percent of U.S. semiconductor sales, and more restrictions would further alienate Chinese customers who are weary of being added to Commerce’s Entity List, he said: “Some of them are afraid they’re next.” Neuffer said the semiconductor industry remains uncertain about the U.S. approach toward Huawei and China. He warned the Trump administration against further revisions to the U.S. export control system. “We think that’s not necessary,” Neuffer said, adding the U.S. shouldn’t place controls on nonsensitive products with no national security nexus, such as smartphone chips. “There have been some confused waters for us in terms of understanding exactly what the U.S. government intends on doing with Huawei and the China market generally,” Neuffer said.

Big U.S. accomplishments at the 2019 World Radiocommunication Conference include getting various millimeter wave bands identified for 5G, rules allowing coordination of geostationary and non-geostationary orbit satellites in the V band, and setting up a regulatory framework for NGSO mega constellations, said WRC-19 U.S. Ambassador Grace Koh in a Technology Policy Institute podcast released Thursday. Koh said a disappointment was failure to get the world to go along with higher power usage for outdoor Wi-Fi. She said Russia, China and Europe raised climate change issues in discussions about 5G use in the 24 GHz band and possible impacts to weather satellites, with those regions championing stringent protection values for those scientific services. Ultimately, the out-of-band emission power level adopted was "a political decision [but still] a good outcome," splitting the difference between what the various parties were advocating, she said.

As Foreign Investment Risk Review Modernization Act rules take effect Thursday, FIRRMA’s definition for critical technologies remains unclear due to a lack of Commerce Department proposed rules on emerging and foundational technologies, trade lawyers said. FIRRMA expands jurisdiction of the Committee on Foreign Investment in the U.S. to review some investments involving critical tech (see 2001150018). Commerce “has really issued just one set of regulations that could possibly cover emerging and foundational technologies,” said Vinson & Elkins' Dave Johnson, referencing an interim final rule to restrict exports of geospatial imagery software released by Commerce in January: “There's a lot of work they have to do in this area.” Johnson, speaking alongside Vinson & Elkins' Damara Chambers at a Tuesday panel hosted by the law firm, said the scope of businesses affected by FIRRMA’s regulations that deal in critical tech could be significant. Voluntary declarations may be very helpful, Chambers said. “For benign transactions that ... aren’t complicated for CFIUS to get their arms around, those should move very quickly under this voluntary filing process,” she said. “I’m very excited about the concept.” The Commerce Department didn't comment Wednesday.

The Trump administration's "biggest focus" in its trade relations with China is implementing the phase one deal that takes effect Friday, Treasury Secretary Steve Mnuchin told a Senate Finance Committee hearing Wednesday on the administration's proposed fiscal 2021 budget. Implementing phase one has "slowed down" amid the coronavirus epidemic, said Mnuchin, a top negotiator in the phase one talks with China. Implementing phase two could come gradually, he said. President Donald Trump "doesn't want to set arbitrary timelines," he said. That the administration has left "significant tariffs" in place on Chinese imports gives the Chinese incentive to work with the U.S. on phase two, he said. When Sen. Ben Sasse, R-Neb., expressed skepticism that China would follow through on its phase one commitments on forced technology transfer or intellectual property reforms. Mnuchin replied, "The difference here is this agreement has real enforcement."

China, India and the EU are among the regions tech and intellectual property groups recommended the Office of the U.S. Trade Representative monitor for international IP infractions. Public comments were due Friday for USTR’s 2020 Special 301 Review (see 1902080063). USTR has a Feb. 26 hearing. The Internet Association cited the EU’s new “onerous systems of copyright liability for internet services,” specifically the copyright directive. It “directly conflicts with U.S. law and requires a broad range of U.S. consumer and enterprise firms to install filtering technologies, pay European organizations for activities that are entirely lawful under the U.S. copyright framework, and face direct liability for third-party content,” IA said. IA didn’t recommend any specific countries for USTR’s priority watch list or watch list, raising concerns about China, India, Vietnam, Chile, Japan, Hong Kong and many others. BSA|The Software Alliance recommended USTR include Chile, China, India, Indonesia and Vietnam on its priority watch list; Argentina, Brazil, Korea, Mexico and Thailand on its watch list; and the EU as a region of concern. BSA cited measures that create market access barriers in the EU. The Computer & Communications Industry Association didn’t offer specific recommendations for the priority watch list or watch list. CCIA cited the EU’s recently enacted Copyright Directive and policies India is pursuing, which “pose significant negative consequences for the digital economy and depart from global norms.” Any “discriminatory practices under the guise of intellectual property that target U.S. exports should be identified and discouraged by USTR,” CCIA said. The International Intellectual Property Alliance recommended Argentina, Chile, China, India, Indonesia, Mexico, Russia, South Africa, Taiwan, Ukraine and Vietnam for the priority watch list. It recommended Brazil, Canada, Colombia, Ecuador, Peru, Switzerland, Thailand and UAE for the watch list. IIPA suggested the U.S. engage trading partners to “remove discriminatory and restrictive trade barriers in those countries that harm exports of U.S. creative goods and services.”

The Commerce Department seeks comment by April 6 on information collection for the “Technology Letter of Explanation,” said Thursday's Federal Register. The letter provides a description of the technology proposed for export to allow the Bureau of Industry and Security technical staff to evaluate the impact on the national security and foreign policy of approving a license.

The Commerce Department doesn’t have a timeline for releasing its next set of controls on emerging technologies and its advance NPRM for foundational technologies, despite expectations from top officials both would be published before 2020 (see 1912110040), a Bureau of Industry and Security official said Tuesday. “I would have thought that they would be out earlier,” said Hillary Hess, director of BIS’ regulatory policy division, at a Sensors and Instrumentation Technical Advisory Committee meeting. “I think everybody would like to see them come out, but I’m not sure how long it’s going to take. I’m having trouble getting a bead on it myself.” Interagency working groups are reviewing the proposed emerging technology controls, which include potential restrictions on exports of artificial intelligence and robotics items, Hess said. Although BIS published a January interim final rule that placed export controls on geospatial imagery software, that rule stemmed from existing export administration regulations process in place since 2012, Hess said. “None of [the working group] rules have been published yet.” Hess said the ANPRM for foundational technologies is in internal review.

Sony is “very concerned about the spread” of the coronavirus (see 2002040063), said Chief Financial Officer Hiroki Totoki in scripted remarks to analysts in Tokyo, mirroring others. “It is difficult to fully grasp what is going on, but we are exerting all efforts to gather information and assess the situation, and we are taking action where possible.” Sony extends “our condolences to the families of the people who have passed away, and our thoughts are with those who have been infected,” he said. The company reported quarterly results Tuesday for the three months ended Dec. 31. Concerns mounted last week the virus could affect U.S. tech and other supply chains (see 2001310052).

Plug-in devices that connect to Wi-Fi and allow users to operate other devices by controlling whether electrical current flows from the wall outlet differ from wearable smart devices for classification purposes, Customs and Border Protection said in a Jan. 21 ruling, released last week. SDI Technologies argued the “SmartPlugs” deserve a similar classification as Fitbit fitness trackers that connect to mobile phones through Bluetooth. The Fitbit trackers were classified in heading 8517 due to the data transmission functions, but the plugs provide for different functions. “To the extent that data is transmitted from the application to the SmartPlug, it is in service of the primary function of controlling the electrical current to the connected appliance,” the agency said. “The transmission of data is not a function of the SmartPlugs,” it said, concluding the devices “provide electric control of electrical devices connected to them and thus are properly classified under heading 8537.” The applicable subheading, 8537.10.9, includes a 2.7 percent duty rate, and is subject to Section 301 tariffs on China, the agency said.