© 2003 Spoke Software, Inc.

Privacy – California Dreamin’?A Brief Look at the Privacy Landscape in California

Spoke Software, Inc.Confidential

2© 2003 Spoke Software, Inc.

Privacy & Security

Privacy and security are two sides of the same coin.Everybody wants them, knows they’re needed – and in some cases, legally required.Not everybody focuses on sorting out what they mean, and the implications for identifying them as key values.

Spoke Software, Inc.Confidential

3© 2003 Spoke Software, Inc.

Privacy

Brandeis & Warren, “Right to be let alone,” but more modern phrasing is control of personal dataUsual context is personal data that could be easily misused

• Financial data• Medical data• Internet surfing history

General expectation that surveillance and sale/trading of data will be limited

Spoke Software, Inc.Confidential

4© 2003 Spoke Software, Inc.

Security

Security is focused on protection against unauthorized access to dataUsed most commonly in the context of protection against hacking, etc.Critical consideration for businesses with sensitive (or perceived-as-sensitive) data.

Spoke Software, Inc.Confidential

5© 2003 Spoke Software, Inc.

Common Ground

Privacy and security are about protection of data flows – a critical issue for our interconnected global economyPrivacy expectations limit the willful exchange of data (e.g., banks should not sell information on medical transactions to health insurers)Security expectations limit porousness of data transfer (e.g., transfer of sensitive data to off-site archival storage should not be done unencrypted on the open Internet, employee data should not be in an unprotected computer)

Spoke Software, Inc.Confidential

6© 2003 Spoke Software, Inc.

California Legislative Actions

Cover both privacy and security:• Various anti-identity theft measures• SB1386/AB700 (2002) on Security Breaches• AB68 (2003) on Privacy Policies• SB1 (2003) on Financial Privacy• SB186 (2003) on Spam

• Preempted (partially) by CAN-SPAM

New areas• Gmail• Automotive “black boxes”

Spoke Software, Inc.Confidential

7© 2003 Spoke Software, Inc.

Continued Focus on Online Data

Driven by fear of the new, and of descent into surveillance societyTechnologies not well-understoodRaw political reasons as well – tech industry is insufficiently politically organized

• Powerful financial industry resistance to legislation that would affect its data sharing practices

• Tech industry is getting better organized…