P2P....not enough warning to users about file sharing....More Federal Data Breach Laws on their way

Posted by: Jeffrey Neu

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Lawmakers are growning increasingly frustrated with the file sharing networks and their constituents.  Lost taxes, more lawsuits, and overall, a complete upheaval fo our current structure.  When lawmakers are frustrated, they do what they do best, make laws in hopes of fixing the problem.  "The file-sharing industry has shown that it is unable or unwilling to ensure users' safety, and it is now time to put a referee on the field to ensure they play by the rules," said Edolphus Towns (D-N.Y.), chairman of the House Committee on Oversight and Government Reform.

At a House of Representatives hearing examining inadvertent file-sharing over peer-to-peer networks, lawmakers told Mark Gorton, chairman of Lime Group LLC, that his company's efforts to protect users from inadvertent sharing have thus far been inadequate. Lime Group LLC operates the LimeWire P2P file-sharing service.

This is the second time in two years that the committee has called on LimeWire to protect users from inadvertent disclosures of sensitive information.

"Despite hearings and investigations, it is very clear that little has changed," observed Rep. Darrell Issa (R-Calif.), ranking Republican member of the committee.

Towns said he plans to introduce a bill that would ban the use of P2P networks on government and government contractors' computers and networks, and to meet with FTC Chairman Jon Leibowitz to request an investigation into whether file-sharing companies are engaging in unfair trade practices.

There are two bills pending in the House that would address data breaches through P2P networks. The House Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection held a hearing on those bills May 5.

The Data Accountability and Trust Act (H.R. 2221), sponsored by Rep. Bobby Rush (D-Ill.), would establish national data security breach notification rules. The bill, as introduced, would expressly preempt state data breach notification laws to create a national disclosure standard. The bill was forwarded to the full committee June 3.

Rep. Mary Bono Mack's (R-Calif.) Informed P2P User Act (H.R. 1319) would require P2P services to provide "clear and conspicuous" pre-installation notices that P2P programs permit files on users' computers to be searched and copied by other users.