e‐G8FORUM

e‐G8ForumSummaryParis,May24‐252011WorkshopsIIISession1:TheDisrupters:ExtremeInnovation

KeyFindings

*TheInternetisthriving;letitgrow.”Donoharm”isthebestgovernmentpolicy.*Manyparticipantsarguethatsoftwarepatentsshouldbemodifiedoreveneliminated*PromoteuniversalaccesstotheInternet*HarmonizeregulatorylawsamongcountriestoflattenbarriersandcreatearealEuropeanframework.

Synopsis

Newtechnologyhasdramaticallydisruptedtraditionaltelecommunications,news,music,andotherindustries.Thisdisruptionhasbeenfueledbystartupsthatappeartocomefromnowhereyetcausesuddenandmajorchangesinhowpeoplecommunicate,getinformation,andconsumeentertainmentandservices.Today,thewaypeoplemakenewfriendsandevenmanageloverelationshipsarebeingdisruptedbymedialikeFacebookandBlackberryMessenger. Increasinglytech‐savvygenerationswillbecomeanimportantcatalysttotheemergenceofdisruptivetechnologies.Childreneverywherehaveanewrelationshiptotechnology.Disruptersthereforedon’tonlylookfornewproductsandservicesfortoday’spopulation,butformoretechnologicallyfluentgenerationstocome.Thiscreatesaspiralofincreasinglyyoungerdisruptiveentrepreneurs. Executivesatemergingtechnologycompaniesidentifyvariousmarketconditionsthatfuelthegrowthoftheirdisruptiveproductsandservices.Theyencouragecountriestocreateenvironmentsthatfosterproductivedisruptionsintomorrow’seconomies.Aboveall,theyimploreregulatorsto"keeptheirhandsofftheInternet.”PastdisruptionshavesucceededbecausetheearlycommercialInternetgrewformanyyearsbeforeregulatorsevenunderstoodthephenomenon.A

policyof”donoharm”freesdisruptivecompaniestoforgetheirownpathwithoutadditionalbusinessburdens. Accordingtoseveralparticipants,softwarepatentspresentanespeciallydifficultobstacletothespreadofdisruptivetechnologies.Theneedtoobtainpatentsforemergingtechnologiespreoccupiescompanieswithresource‐wastingpatentbattles.Manydisruptiveentrepreneurswouldliketoseesoftwarepatentseliminated. GovernmentsarestronglyencouragedtopromoteuniversalaccesstotheInternet.Additionally,entrepreneursareeagerformoreharmonizationofbusinesslawsamongcountries,toflattenbarriersandcreateaworkableEuropeanframework.Theseconditionsmakeiteasierforinexperienced,minimallyresourcedstartupstogrow.Also,whenmakinglawsthatwillaffectemergingdisruptivebusinessmodels,legislatorsshouldconsiderthelongterm,withlawsthatwillstillberelevantinyearstocome.Constantlychangingregulationsareanobstacleforthesuccessofdisruptivetechnologies. Today’sdisruptersfacecompetitionfromemergingmarkets.CountrieslikeChinahaveproducedcompetitorsinAmericanandEuropeanmarkets,whileChina'sdomesticInternetaccessisclosedorcontrolledforpoliticalandcommercialreasons.Thisisabarrierforforeigncompaniestryingtocompete.However,inpreviouslyclosedMiddleEasterncountries,Internetmarketsarebeginningtoopen.TheArabSpringrevolutionsrepresentauniqueopportunityforthedisruptivebusinessmodeltosucceedinnewlyopenmarkets.

SessionPanelistsLarsBjork,CEO,QlikTechJacques‐AntoineGranjon,CEOandFounder,vente‐privee.comBrentHoberman,Co‐Founder,mydeco,made.com,PROfoundersCapitalPierreKosciusko‐Morizet,Co‐FounderandCEO,PriceMinister,partoftheRakutenGroupXavierNiel,FounderandChairman,IliadMarcSimoncini,FounderandCEO,MeeticYossiVardi,Chairman,InternationalTechnologiesMartinVarsavsky,Founder&CEO,FONWireless,Ltd.Moderatedby:LoicLeMeur,Founder,SeesmicandLeWebParisMay24‐25,2011Theviewexpressedarethoseofcertainparticipantsinthediscussionanddonotnecessarilyreflecttheviewsofallparticipantsorofthee‐G8Forumasawhole.Copyright2011eG8ForumWednesdayMay25,2011

e‐G8FORUM

e‐G8ForumSummaryParis,May24‐252011WorkshopsIIISession2:SharingValue:Howtodividethedigitalbountyamongcreators,distributors—andgovernments?

KeyFindings

*IntheInternet,allvaluecreation,economicorsocial,dependsoncollectivecommitmenttomaintainacommonmedium.

*Elementsthatcurrentlyattractinvestorsaredynamicsearchengines,socialnetworks,ordevicecompaniessuchasApple

*Themarketalonewillnotorganizeitselfinthebestwaypossibletoreachouttolessdenseareas.

Synopsis

AccesstotheInternet'sdataiseasy,andinthismarketitcouldbesaidthat90%oftheeffortofmakingmoneyisjustshowingup.Youarenotcreatingaproductorevennecessarilysellingaproduct.Simplycollectingdatacan,inandofitself,createvalue—jobsorrevenue.Moreover,itisn’tnecessarytocaptureanentiremarket,justasegment,andaggregatefromthere.Thereislittlecontrolorsupervisionbyeithercountriesorcompanies,partlybecausetheInternetbecameacommonmediumforreasonsofhistoricaccidentandwasdrivenbynon‐profitimpulses.

IntheInternet,allvaluecreationdependsonthecollectivecommitmenttomaintainacommonmedium.Ifthiswerenotthecase,novalue—eithereconomicorsocial—wouldbecreatedforanybody.Todaypreferredsectorsforinvestmentaredynamicsearchengines,socialnetworks,anddevicenetworks.Thismaychange.

Today,intheworld’s100largestcitiesthereare400smartphonespersquarekm.By2016thatnumberispredictedtoclimbtoatleast13,000.BythenthepriceofsmartphoneswillhavesubstantiallydecreasedandinAfricaeventhepoorwillhaveaccesstothem.That’sasignaltomanyindustryinsidersthatsomethinginthecurrentvaluechainneedstochange.

Onerecentchangehasbeenthereemergenceofgovernment,specificallyinprovidingInternetservicetoareasnotcurrentlycovered.IntheUS,forexample,billionsofgovernmentdollarsare

beingspenttoprovideInternettonon‐accessareas.That’sbecausethemarketalonewillnotorganizeitselfinawaythatwillreachouttothelessdenseareas.

e‐G8ForumSummaryParisMay24‐25,2011SessionPanelists

FrankEsser,CEOandChairman,SFRGabrielleGauthey,ExecutiveVicePresident,GlobalGovernment&PublicAffairs,AlcatelReedHundt,Chairman,AspenInstituteIDEAconferenceAlainMinc,President,AMConseilEzraSuleiman,IBMProfessorinInternationalStudies,PrincetonUniversityModeratedby:GillesBabinet,Entrepreneur,ChairmanoftheFrenchConseilNationalduNumeriqueTheviewexpressedarethoseofcertainparticipantsinthediscussionanddonotnecessarilyreflecttheviewsofallparticipantsorofthee‐G8Forumasawhole.Copyright2011eG8ForumWednesdayMay25,2011

e‐G8FORUM

e‐G8ForumSummaryParis,May24‐252011WorkshopsIIISession3:TheDataDilemmaSocialmediaandtheexplosionofdataaredrivingtheInternet’sgrowth,andraisingimportantquestionsaboutprivacyanddatasecurity

KeyFindings

• Consumersshouldbeabletocontroltheirpersonaldataandwhohasaccesstoit.That'swhatprivacyis.

• Weneedonlinesystemstoensurethatconsumerswhowanttoprotectpersonaldatacandoso.Educationregardingimplicationsofunprotecteddataisvital.

• Globalleadersshouldworkondefiningwhatisacceptablepersonal‐dataminingandwhatisarealsecuritythreat.

• Withoutsecurityandtrusttherecanbenoprivacy:theroleofgovernmentshouldbetosetupminimalrulesandenforcethem,notover‐regulate.Excessiveprivacylawsmaycurbfreespeech.

• Competitionbetween“privacyregimes”shouldstop;weneedmorecooperation.

Synopsis

TheInternetcontinuestoevolveandisenteringastagethatexpertscall“Web3.0.”Inthisphaseofdevelopmentsearchenginesusekeywordstoaggregatedatawhileadditionalonlinetoolscollectuserinformation.Protectinguserprivacyandguardingsensitivedatahasbecomeagrowingconcern.TheInternetriskslosingusersunlesstheseprivacyconcernsareaddressed.

Expertsagreethatprivacysignifiesanindividual’sabilitytoaccessandcontroldataabouthim/her.SophisticatedInternetusersareawarethatadvertisingcompanies,socialnetworkingsites,andgovernments(amongothers)areactivelymininginformationaboutthemwhilethey’reonline.Theseusersknowhowtonavigatethevirtualworldsafelyandprotecttheirpersonalinformation.But“ordinary”,“average”Internetusersareunaware

thatvariousentitiesareculling,storing,andfrequentlysellinginformationaboutthemwhiletheyusetheInternet.

IndustryleadersagreethattheaverageInternetusermustbeeducatedandempoweredtohelpmaintainprivacyonline.Consumersshouldbeabletodecidehowmuch,orlittle,informationtheyrevealaboutthemselveswhileusingtheInternet;itshouldnotbeablindprocess.Further,technologistsshouldbeencouragedtodeveloponlinesystemsandtoolssothatInternetuserswhoareinterestedinprotectingtheirpersonaldatacandoso.Onekeyrecommendationistogivepeopletheabilitytooptinoroutoftrackinganddatagatheringprocesses.Globalleadersshouldalsoworktodistinguishbetweenonlinedataminingthat’sacceptableversusthatwhichisanactualsecuritythreat.IfInternetusersbegintofeeltheyarebeing“stalked”byonlineparties,theirtrustinthevirtualworldwillbecompromisedandInternetusagewilldrop.

Thegovernment’sroleshouldberegulateandenforcerulesabouthowtoprotectprivacyandmaintaindatasecurity.However,policy‐makersshouldbemindfulofthepossibleunintendedconsequencesthatprivacylawsmighthaveonfreedomofspeech.Technologistslikewisewarnthatregulatorsshouldbecautiousnottoover‐regulateordemonizeexcitingemergingtechnologies.

Givingpeoplecontroloftheirdatacouldbealong‐termsolutiontoprotectinguserprivacy.ManyInternetdon’twanttorevealinformationabouttheirprivateliveswhentheygoonline.AstheWeb3.0worldmovesin,globalleadersandindustryexpertsneedmoredialogueaboutpossibletechnologicalsolutionstothisproblem.

SessionPanelistsAlainLévy,CEO,WeboramaJeffJarvis,BuzzmachineChristopherWolf,Partner,HoganLovellsMitchellBaker,Chair,MozillaChristianMorales,VP&GeneralManagerEMEA,IntelAndrewKeen,Author,DigitalVertigoSteveBaker,AuthorTheNumeratiandFinalJeopardyDaveMorgan,Founder&CEO,Simulmedia

Moderatedby:CurtHecht,VivakiNerveCenter

ParisMay24‐25,2011Theviewexpressedarethoseofcertainparticipantsinthediscussionanddonotnecessarilyreflecttheviewsofallparticipantsorofthee‐G8Forumasawhole.Copyright2011eG8ForumWednesdayMay25,2011