Americans are insecure about tomorrow. Our economy is not undergoing a downturn. It is undergoing massive transformation. It is like the Industrial Revolution happening every five years. The question we must answer is are we going to embrace it or are we going to ignore it, fight against it, and get left behind. In the absence of our leadership, which you leave behind as a vacuum. America never asked for this job of being the global leader. For some reason we dont fully understand, fate has given it to us. We either accepted or the world will become a darker more difficult place to live in. The chaos that follows makes the world more dangerous and less profitable. With that inspirational closing i think we should let senator rubio get on with his day. Will everybody please stay standing . Fair and balanced. Thank you every much thank you very much. Them political has put together 199 quotes from donald trump, calling it the most donald trump thing donald trump has ever said. A couple of them on nbc in july the President Shall candidate said, i will with the latino vote because i will create jobs. The latinos will have jobs they didnt have created another quotes, i will be phenomenal to to help women. That is live at 7 10 eastern here on cspan. Hearing on new technology called the internet of things from the house judiciary subcommittee. This is an hour and 40 minutes. Today we welcome everyone for a hearing on the internet of things. Short history the internet has been transformative and a powerful tool. It has shaped communication commerce worldwide. Technology has proven to advance that only moores law describes, with the doubling of that about quickly the time you have run out of your short warranty you in fact have a product that can outperform the one on your desk. The internet of things as a brolly affects interconnected the vices with each other and across existing internet infrastructure is a newer portion of what now becomes the of our lives and communication in the 21st century. It is estimated by 2020 there will be 25 billion connected things. 2020 there will be more connected things. By embedding devices with , we in factensors have smart devices. Those smarter devices already include, if you choose, every light switch in your home, the and productsr, throughout the home, whether they be speakers to hear from or in fact sensors to control climate to a portion of every room. Data driven technology is improving the way we understand health care. Prevent, detect, and treat any number of afflictions. A generation ago the insulin today its not only could but it soon will. The same time, when we talk about your home, your lighting, and messaging, your voice, your health and actual biological function, issues like privacy and Data Security for these interoperable technologies not just something to talk about, but an area in which we in Congress Played a large and potentially destructive role in the development of these technologies. Every day in america somewhere someone is being hacked. They are finding out the personally identifiable information has been compromised. Too often it is in fact government we hear it from, the government to controls whether or not you can further secure your internet of things products or not. Witheration ago i stood one of our witnesses at a time a which a member of congress, former fbi agent, was trying to prevent 256 encryption. The fbi needed to be able to quickly crack the bad guys transmissions. He needed to be able to unbundle a floppy disk information in a they wereseconds if going to deter organized crime. Quickly duplicating it and denying them millions or billions of dollars. It took a number of years for congress to realize that official control was not only circumvent double by exporting to other countries, but it was ludicrous because the bad guys were not going to limit their unlicensed spectrum within the internet of things is going to be talked about again and again today. I hope my witnesses will feel free to talk about the benefits of greater spectrum. Atould remind my panelists the fcc is not in our primary jurisdiction. To bundle these and other things will take a coordination between committees that do control spectrum, those of us who control a great deal of privacy requirements and the overseeing of government allows. A report that followed months of stakeholder roundtables that focused on private security. Broad and made a nonbinding recommendation about how the company should address these issues from the onset and laid the groundwork for future ftc involvement in the internet of things. The first question we receive is usually the internet of things and why does the Congress Care . We played down a number of those in my Opening Statement today. Enforcing breaches and security wall providing little guidance. Exampleyet another where we can come in with the heavy hand of government, but seldom with the safe haven. Today we look forward to a hearing with stakeholders. Further opportunities to deal with the challenges that and those ings which we can bring relief. I look for to our witnesses and i recognized the Ranking Member, a gentleman from new york, for his Opening Statement. The internet of things is the next revolution in our increasingly wired world. Everything from Household Appliances to Transportation Systems can harness the power of the internet to increase productivity and consumer choice. We must also consider privacy and security that are inherent in any system with Wireless Connection at massive data collection. The internet of things is experiencing explosive growth in recent years. There are already 25 billion connected devices today. In five short years there may be as many as 50 million. We have only seen many innovative uses. For example, according to one study in 2020, up to 90 of , less than 10 in 2013. The safety of their driving and even the fuel efficiency. As the New York Times described last week, researchers are able to track internet to track internet. Blinkers. D off their in some cases, control their brakes and steering. So card smart cities are incorporating the internet of things into their Transportation Energy and even Waste Management systems. Streetlamps can conserve energy by telling them no one is around. Imagine the garbage can talking to the sanitation department. Sec tech such technology has the potential to revolutionize the infrastructure. Unless the citys integrate Strong Security measures with employment technology, their infrastructure could be vulnerable from hackers looking to do mischief. In addition to security concerns, the internet raises a host of privacy implications, particularly with respect to consumer device. The technologybt can improve the consumers experience in ways large and small. The thermostat can be controlled remotely. Has introduced the button. Withdo these companies to massive amounts of data . And what choice did consumers have about how their information is used . These are all questions that must be considered to expand its reach. Millions of americans where devices that track physical activity and other health indicators. They demonstrate a healthy lifestyle. Beyond encouraging healthy behavior, it is not clear how Insurance Companies may seek to use this information in the future. Will it be used in a discriminatory manner . In its examination of these important questions the federal trade commission made an important number of recommendations that we must consider. They also recommended that they monitor connected devices throughout their expected lifestyle lifecycle. Urged companies to protect Consumer Privacy by engaging in data minimization as well as providing notice and choices to consumers as to how their data may be used. Although no specific legislative recommendations, we should consider the congressional actions. Should we seek solution to these concerns that are specific to the internet of things, or will there be legislation on these topics . The internet of things have led to important breakthroughs. It has the potential to spur tremendous information. We must find a proper balance of funds information in ensuring as itivacy is protected continues to grow. I look for to hearing from witnesses that have to address these challenges. , i now recognize the gentleman from virginia, the chairman of the full committee, mr. Goodlatte, for his Opening Statement. Then i believe this has the ability to transport the to transform the health care industries. This is of particular interest to the judiciary committee, considering her loans jurisdiction considering our longstanding jurisdiction. Internet of things refers to machines containing sensors that connect and transmit data to other connected devices and the internet. Growth in Cloud Computing over the past several years has helped enable this technology to reach full potential without the ability for data from the internet of things device to be analyzed in real time. The ability to access this information through mobile apps makes these internet of things device is a key tool to finding a creative solution for many of the problems in daily life of the 21st century. Smart agricultural will help us promote less waste. To monitor be used Road Conditions and structural components of bridges and overpasses. New wearables not only monitor the number of steps we take, they can also include sensors before it actually becomes one. As this committee continues to study this new technology, it is important for us to keep in mind the full scope of the internet of things and because this it of its effects on Public Policy today and in the future. In particular we need to examine the privacy and security in and look into the privacy and security measures the industry is building now. Im hopeful the new technology will help fuel the engine of american innovation, prosperity, and creativity. I think we have a fantastic panel assembled today. I look forward to hearing from witnesses about this exciting area of technology. A short Opening Statement. Thank my cochair on the internet of things caucus, as well as the Ranking Member calling this hearing on this important subject. What is called the internet of things from whole appliances to personal wearables, it might be easy to conclude the promise of the internet of things is limited by american ingenuity. To start we need to make sure we update existing laws and where we are heading in the future. That means updating the privacy communication act, protected by the same warrant standard. Multibilliondollar internet of things, for the economy to be successful we need to be stewards of policy. Vulnerable to hacking or spying. Devices should be able to talk to each other. That means an adoption of uniform, preferably international standards. And firmly upholding their duty to protect the Public Health and safety. We must work with stakeholders to create a privately create a privacy landscape that provides individuals with control of their own data. Setting the stage for what i that be abe an productive and informative series of hearings that our economy and committee can play. Thank you, i yield back. It is now my pleasure to introduce our distinguished panel. They will be placed in their entirety. I will ask witnesses to summarize in about five minutes. Before i introduce the witnesses pursuant to the Committee Rules i would ask all witnesses stand to take the oath. White ly racing your your right hand. Do you solemnly swear or affirm the testimony you are about to give is the whole truth and nothing but the truth. Please be seated. Let the record reflect all witnesses answered in the affirmative. Today our witnesses include mr. , mr. Deaniro garfield, president and ceo of the Information Technology industry consul, mr. Mitch a from thesident and ceo alliance of automobile manufacturers, and mr. Morgan read. Before i go down the road with the witnesses i have to take a point of personal privilege. The other three know it. Mr. Shapiro and i go back a long time. The birth of at the modern Consumer Electronics association. I once worked for them with a highly unpaid position as the chairman. ,f today i can rough him up remember it takes a while. This is a historic moment in my life. Chairman over a good portion of our freedom and you rankingk members. The Consumer Electronics association represents 2000 Technology Companies and we produce the ces, which is held every january in las vegas. It is so vague that 900 of our exhibitors had internet of things products to show creative over a ilion smartphones have been sold. They contain microelectronic mechanical systems. These are tiny devices that actually move in a measure all. Hings like temperature now cost pennies apiece. And smart innovators are putting it together in very clever ways. To connected thermostats and the like, from Household Appliances to connected cars. Consumers are using this device to stay healthy, create efficiency, stay secure, and make better decisions. You heard the estimates of how these are going to grow. I cant say they are factual. There is definite growth. See it in ourselves. We can did you 2 in terms of connected home devices. It is already a billiondollar marketplace. These home control systems allow to manage security systems, turn on appliances, manage cooling and interlining systems. Temperaturesst even when no one is home. There is an opportunity to care for our aging population, as well as the 56 million americans with disabilities. Provide novel interface like Voice Control to help people reduce mobility and dexterity. Smart detectors can be connected to lighting control and they can light up the whole house for a safe exit. Think about our older loved ones. Retain their quality of life and they can do this with caregivers. Will retainericans privacy and share what they are comfortable sharing. It does face impediments. First it requires a spectrum. Wireless spectrum is a platform in which you devices connect. The internet of things is changing what skills we need to retain our nations competitive advantage. Internet of things require government restraint. Legitimate concerns about safety, privacy, security. Stakeholders can and should be discussing these things today. It is up to manufacturers and Service Providers to make good decisions. We are passionate Industry Solutions are best while protecting consumers. Theecognize and respect legitimate roles of government and transparency, clarity, and experimentation. Activities that produce standards focusing on technical aspects of the internet of things. Of course it is just beginning. Growth of stymie the the internet of things. Any Government Action should be narrow and specific and focus on real harm. We look forward to working with this committee to make sure the Government Policies and growth ins support this dynamic sector and i look forward to answering your questions. Thank you members of the committee. On behalf of 51 of the most dynamic and Innovative Companies in the world we thank you for hosting this hearing. It is our firm view that the internet of things has the potential to be one of the most transformative technological into technological innovations. To ensure i am not accused of myaging in ever violent we think that is the case. What we are doing to enable it, and third hour limitations in congress. Internet of things is essentially the physical world through connecting sensors into a network of computing systems. What may sound simple has the and thel to be creation of new industries as well as the destruction of existing ones. Aboutr were talking watches that have the potential to not only help you, but how then can you help, or whether it were thereld wipers and Autonomous Vehicle to the potential to a construction zone. There has been much discussion of the home and personal manifestations of the internet of things, which are truly exciting. It is important not to ignore the potential of commercial deployment. Those commercial to appointments are real, and have huge economic benefits. Whether it is the diplomat of sensors in our energy grid to ensure greater said that greater , to sensors and Transportation Systems to allow more efficient delivery, or to allow safeties of workers, the will come from those deployments, by which 2030 is expected to be 7 trillion. What are we doing to ensure that they hope they emphasize Security Privacy standards as well as an investment infrastructure. We are working and innovating around those issues. They are part of forethought rather than afterthought. We are developing solutions to ensure both security and privacy are tailored to the particular iron meant. And we are investing in innovation. It is the right thing to do. We are moving forward on global that are driven by the and are open standards to ensure we have high interoperability as well as scalability. Finally we are investing on the infrastructure. Mr. Shapiro noted the need for ensuringas well as that spectrum is available. The use of spectrum is growing with thech year disposition of physical things. It will only grow more expeditiously. Spectrum will be increasingly important. In addition to doing those we need to partner with congress and the administration to ensure policies are smartly developed. We need a National Strategy around the internet of things. The National Broadband pl