Tuesday, December 21, 2010

US backs net traffic regulations

US regulators have approved new rules meant to prohibit broadband companies from interfering with internet traffic.

The Federal Communications Commission (FCC) voted 3-2 on the principle known as net neutrality; a tenet that ensures all web traffic is treated equally.

The rules have been criticised for setting different standards for fixed line broadband and mobile operators.

Officials said the regulations are "the first time the commission has adopted enforceable rules" to govern the web.

The FCC's three Democrats voted to pass the regulations, while the agency's two Republicans opposed them, arguing that they were unnecessary.

Tuesday's vote is the culmination of five years of fighting over how best to ensure the free flow of information in all its forms over the internet.

The FCC vote also comes at a time when consumers are increasingly accessing the web via smart phones and turning to the internet to watch TV shows.

'Rules of the road'

The commission's ability to regulate the internet was thrown into doubt following an appeals court decision earlier this year that said the agency lacked the authority to stop cable firm ComCast from blocking bandwidth-hogging applications.

The FCC said the vote addressed "basic rules of the road to preserve the open internet as a platform for innovation, investment, competition and free expression".

That is a view backed by chairman Julius Genachowski.

"We're adopting a framework that will increase certainty for businesses, investors and entrepreneurs," Mr Genachowski said in remarks prior to the vote.

"We're taking an approach that will help foster a cycle of massive investment, innovation and consumer demand both at the edge and in the core of our broadband networks."

Michael Copps, a Democrat, said in a written statement ahead of the vote that rules represented "an important milestone in the ongoing struggle to safeguard the awesome opportunity-creating power of the open internet".

The regulations are expected to be challenged in court.

'Squandered'

A number of interested parties including internet providers, developers and companies like Google have said the rules could provide some regulatory certainty going forward. Many have acknowledged that the regulations could have been much worse.

"Start Quote

I think today is a tremendously important day in the fight to preserve a free and open internet"

End Quote Aparna Sridhar Free Press

The new rules prohibit telecommunications companies that provide high-speed internet service from blocking access by customers to any legal content, applications or service.

But, for the first time, there is now a policy that will allow for what has been termed "paid-prioritisation", where companies will be able to pay for a faster service.

The FCC regulations place tougher restrictions on wired services from cable and phone companies than on wireless carriers, which have more limited bandwidth.

The vote comes amid increases in the amount of smart phones and tablet devices that are being used to access the web and watch TV shows.

The rules allow mobile firms to block access to sites or applications that specifically compete with a carrier's voice or video services.

Supporters of net neutrality feel the new regulations should have gone further and have slammed them as "fake net neutrality".

"I think today is a tremendously important day in the fight to preserve a free and open internet," Aparna Sridhar of advocacy group the Free Press, told BBC News.

"Chairman Genachowski has completely squandered a golden opportunity to make this vote meaningful. Until now we have had a certain amount of regulatory uncertainty, and the carriers have had an incentive to stay on their best behaviour.

Ms Sridhar added that the rules endorse "bad practices in the wireless space".

In an opinion piece for the Huffington Post, Al Franken, US Senator for Minnesota, earlier called the FCC vote "the most important free speech issue of our time".



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Patent spat threatens photo sites

The fallout from a patent dispute between Kodak and web photo site Shutterfly could embroil many online image sites, says patent experts.

Kodak claimed it owns patents regarding the display of online images that is being infringed by Shutterfly.

The photo-sharing site disputes these claims and has launched a counter suit.

But the landmark case could have ramifications for other popular online photo sites such as Yahoo's Flickr and Google's Picassa.

The past two years have seen a number of cases launched that claim online photo sites have breached patents.

But this is the first time such a large, established technology company has sought to assert its rights over online images, said Deborah Bould, a specialist in intellectual property at law firm Pinsent Masons.

Genuine innovation

Kodak's decision to start legal proceedings against Shutterfly will have put scores of web-based photo companies such as Flickr and Google, on high alert, she told BBC News.

"The patents Kodak holds are incredibly broad, effectively covering images that are stored centrally and can be ordered online," she said.

That's likely to mean Kodak will go after other online image sites it believes also infringe its patents, she added.

Kodak said it has over 400 similar patents.

"We are committed to protecting these assets from unauthorised use," it said in a statement.

Given the expense of patent cases, many smaller firms may choose to licence Kodak's technology rather than fight claims, said Theo Savvides, head of intellectual property at Osborne Clarke.

But firms such as Google and Yahoo "have deep pockets" that would allow them to challenge Kodak's claims, he added.

Such challenges would likely focus on the validity of Kodak's patents, said Ms Bould.

The case may hinge on Kodak's ability to show that when it filed the patents they covered technology that was genuinely innovative, she added.

Kodak has been hit hard by the shift towards digital photography, but has recently shown a greater willingness to assert its rights for technology it believes impinge on its patents.

Earlier this year Kodak said it would sue Apple and BlackBerry maker, Research in Motion, over technology used in their handsets.



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