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Offline MentalTrojan

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Voice-Over Internet Protocol (VoIP) & RFID
« on: April 07, 2005, 08:46:18 AM »
Vol. 3.14: PLI's All-Star Briefing
1. Konrad L. Trope (Trope Law Group) assesses the practical and legal issues yet to be resolved as the world switches to Voice-Over Internet Protocol (VoIP)

2. David Bender (White & Case LLP) explains radio frequency identification devices (RFID)

1. Konrad L. Trope: VoIP is here to stay

PLI: VoIP seems ready to relegate the landline telephone to the ashbin of history. Is there anything that can stop it?

KONRAD L. TROPE: The future of VoIP on one hand is very promising, but on the other hand, it is filled with many uncertainties as evidenced by the conflicting court decisions, the standoff between the FCC and the courts, and even bitter disputes within Congress over its regulatory framework.

On a more practical scale VoIP, technologically, is already experiencing significant developments. For instance, the development of the Internet has long contained a promise of videophones being available. With the implementation of VoIP technology, video telephone calls are now a reality within the grasp of businesses and consumers alike. The Wall Street Journal reported that, as of [last] August 24, videophone units that require broadband access (and are a form of VoIP telephone calls) are available anywhere from $269 per unit to as much as $599 a unit, depending on the features and specifications of the particular user. The only drawback with these systems, at the moment, is that the units only work with each other and one brand's phones are not yet fully designed to integrate with another brand of videophone. So at least in the short term, businesses are required to buy multiple units for branch offices, or individual consumers are required to buy sufficient units for family members who are spread out over vast distances.

Another recent development concerns the adapter technology for linking or connecting a telephone device to a computer device for sending and receiving VoIP. Two leaders in home networking equipment, Netgear and Linksys (a division of Cisco Systems) both recently announced plans to build phone jacks into wired and wireless equipment. The jacks are designed to provide an instant link to the commercial VoIP network developed by Vonage. Furthermore, there are additional products from these companies that allow home system broadband routers to work with the VoIP phone jacks so that multiple computers within the home can participate and enjoy VoIP phone calls with a wireless configuration. Thus, one broadband connection can be shared by all PCs within a household for VoIP usage.

On the negative side, the advent of VoIP technology also means risks, including but not limited to industrial espionage, interception, an additional opening for introduction of viruses into a computer system, as well as the introduction of SPAM. Because VoIP systems are grounded in the TCP/IP protocol of the Internet, the ability to design software programs that make multiple phone calls with pre-programmed announcements and unsolicited sales offers already loom on the horizon and threaten to be as ubiquitous and pervasive as visual SPAM on a computer screen. The development of VoIP Spam filters and other related software protection products will no doubt follow.

VoIP creates an opportunity for designers of viruses to infect computer systems. Therefore, antivirus software will have to be designed to address this threat.

In addition, industrial espionage, the theft of trade secrets, remains a pervasive problem worldwide. Indeed, as companies seek to move to VoIP or seek to implement VoIP as part of wireless networks, the threat to interception by third parties other than law enforcement is a very real risk. Developing proper network security protocols is a constant problem given the plethora of circumvention efforts by programming experts.

Indeed, there are many instances of people driving around looking for WiFi connections for the sole purpose of intentionally or possibly inadvertently intercepting communication between a laptop computer in a coffee shop and an industrial computer system where the communication is unsecured and thus susceptible to interception. These interceptions have at times caused great embarrassment if not damage and expense.

The promise of VoIP is, great as it is, part of the apparently unlimited potential of the Internet and the World Wide Web. Nevertheless, it has risks associated with its deployment, as it is still a nascent technology requiring additional nourishment and development. [I've] highlighted numerous issues that both individuals and companies alike must assess in subscribing to a VoIP service or deploying a VoIP system. Moreover, attorneys advising business and individuals need to be cognizant of these issues as part of their role as business counselors and advisors.

Indeed, the regulatory debate over VoIP is far from over. The debate on the development of VoIP, along with policy debates surrounding its regulation and pending judicial actions, is moving with great rapidity. These events will probably dominate the technological landscape over the next few years as VoIP serves as the medium for the restructuring of America's telecommunication infrastructure.

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2. David Bender: It's an RFID world that we live in

PLI: Privacy advocates have expressed alarm at the potential implications of Radio Frequency Identification (RFID) tags, which are increasingly used in industry and commerce as inventory tracking devices. What is RFID, what are the main concerns and what do advocacy groups want?

DAVID BENDER: A[n] RFID1 chip2 is an electronic transmitting device designed to interact with an electronic reader that notes the chip`s presence at the reader`s location and reads data stored on the chip.3 An RFID system comprises a reader and a tag. The tag comprises a chip (generally made of silicon). The simplest tags have read-only chips that may contain no more than an identification number.4 More sophisticated chips permit writing as well as reading, so as to permit the addition to and modification of data on the chip. The reader contains a transmitter/receiver and an antenna; the tag contains a transmitter/responder and an antenna.

RFID is not a new technology, having been used as far back as WWII to identify aircraft. By the 1980s it was used in such applications as wildlife tracking, and transportation. An area where RFID has more recently been significantly utilized is that of automating the payment of vehicular tolls through the use of tags mounted on windshields or dashboards (e.g., "EZ-Pass" devices).

In many respects an RFID tag is a substitute for a bar code, but it is more versatile. Thus, for example, it might be attached to each unit of goods in a supermarket and would transmit to an appropriate device at the checkout counter. But it would also be used before sale to note all distribution activities from the time of manufacture up through sale. Unlike a bar code, it need not be individually swiped across a reader; an entire shopping cart of goods tagged with RFID chips could be wheeled past the electronic reader without swiping each product individually. And prior to arrival in the store, entire pallet-loads or possibly truckloads of a product would be trackable without the necessity of passing each unit individually past the reader. The chip need not be in physical contact, or even in line of sight, with the reader in order for communication to occur. The earliest uses of RFID in the distribution chain are in tracking quantities of products (e.g., pallets or cases), and thereby helping to curtail the significant amount of waste and theft that presently attends the distribution chain, and to keep shelves stocked. At a somewhat later time, RFID chips will present the opportunity for buyers to wheel a basket of selected items past a chip reader, indicate how they will pay, and be on their way. Post-sale, tags can be used to maintain a sales database facilitating, e.g., returns or recalls. They can also identify stolen items.

Consumer groups are concerned that tracking, the creation of consumer dossiers, and the use of this information for marketing purpose, would also be possible after sale.5 One such consumer group in the United States is CASPIAN (Consumers Against Supermarket Privacy Invasion and Numbering`”see their website at

One demand of these groups is that the device be permanently disabled when it leaves the store. Another is for a law requiring a label announcing the presence of a tag on each device that embodies a tag. The group also sees serious issues in connection with its use at checkout in connection with a `loyalty card` (the small card issued by supermarkets, etc., to consumers that gets them discounts on some items`”and also tells the store who`s buying what). One commentator characterized the fears associated with RFID tags as that "people will be tracked wherever they go, that people`s social networks will be determined through correlation, and that the information will be used for invasive marketing techniques and government spying on citizens."7 In a November 2003 position statement, a group of consumer advocacy groups8 suggested a voluntary moratorium on RFID use pending a technology impact assessment by stakeholders. In particular, the statement called for a framework of fairness under the privacy guidelines of the OECD.

A number of approaches have been suggested for defeating RFID tags.9 In the "kill tag" approach, the tag is simply de-activated at the checkout counter and cannot be read thereafter.10 Another approach is the "Faraday Cage" approach, where a container, made of metal mesh through which radio waves of the applicable frequency will not pass, shields the tag.11 The "active jamming" approach has the consumer carrying a unit that transmits radio signals appropriate for blocking or disrupting the RFID signals.12 The "smart tag" approach relies on using cryptography to cause the tags to protect privacy better, while providing the desired functionality.13 Finally, the "regulation approach` would rely on an "RFID Bill of Rights" providing a framework for use of the tags.14

The Federal Trade Commission held a workshop in June 2004 to discuss consumer uses of RFID, and the associated security and privacy concerns`”especially fear of tracking of users. RFID has begun to attract the attention of legislators. Senator Patrick Leahy (D-VT) has discussed the possibility of federal regulation, and California, Missouri and Utah have bills in their legislatures regarding privacy aspects of RFID.

The Law. There is no body of law in the United States that deals with RFID tags. The EU Data Protection Directive has provisions that will apply where personally identifiable information ("pii") is involved. This would occur where product information on the tag were mixed with such information as a credit card or loyalty tag number. Thus, if a tag being read at a checkout counter were associated with such a number, pii would be involved. The EU Directive provides, with regard to data quality, that pii must be processed fairly and lawfully; collected for specified purposes and not processed in a manner incompatible therewith; relevant and not excessive for the purpose of collection; kept accurate; and kept no longer than necessary. And with regard to processing, pii may be processed only if the data subject has given unambiguous consent; or where processing is necessary for performance of a contract to which he/she is party or at his/her request, for compliance with the controller`s legal obligation, to protect the data subject`s vital interests, or to perform a task in the public interest, or for legitimate interests (where not overridden by fundamental rights of the data subject).

Thus, processing must be relevant and not excessive for the purpose for which the pii was collected. Accordingly, if that purpose was to guard against theft, it may be argued that collection of pii far from the store is unnecessary.15 Moreover, the pii must be collected in a fair and lawful manner. And it may be processed only if one of the processing conditions has been met. In many instances that will mean data subject unambiguous consent, in which case the consent obtained must extend to all the intended processing. One way of seeking this consent might be to print a message prominently informing the purchaser that a tag is present, of the pii that will be collected, and of the purpose for which it will be used, and to obtain written agreement (perhaps on the sales slip) to give that consent. Whatever method is used for obtaining consent, it must be unambiguous.

It is difficult to predict what intrusions into the privacy area will result from the use of RFID tags, because at this time, beyond a few obvious uses such as some of those discussed above, we do not know in general or in particular to what applications these tags will be put. In the business environment, those applications will be determined on the basis of their effect on profit. The use of tags is not cost-free.16 Where the use of tags in a particular application is viewed as improving profit, tags will be used. And where no improvement to the bottom line is seen by using tags in a particular application, they will not be used. The number of applications will grow as the cost of using tags diminishes, in part as a direct result of the falling cost. The least expensive tags are those that are passive and low frequency (and therefore of very short range).

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Re: Voice-Over Internet Protocol (VoIP) & RFID
« Reply #1 on: April 11, 2005, 09:43:31 PM »
Flag to:  Juvenal, NuclearWinter, TomTomKlub, RisingSun, Matrix, bomberpunk, catwoman1809, doomguarder, Ground_Control, Judson, KentuckyWoman, migl22, Mystica, okiejenny

FYI - good information here.
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Offline Matrix

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Re: Voice-Over Internet Protocol (VoIP) & RFID
« Reply #2 on: April 13, 2005, 03:59:24 PM »
Thanks for the flag.  I wonder if this is being used for Internet2.
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