The U.S. Department of Commerce has announced the commencement of a comprehensive review of the nexus between privacy policy and innovation in the Internet economy.  Through a Notice of Inquiry (NOI) published in the Federal Register [75 Fed. Reg. 21226 (April 23, 2010)], the Department seeks comment from all Internet stakeholders “on the impact of current privacy laws in the United States and around the world on the pace of innovation in the information economy.  The Department seeks to understand whether current privacy laws serve consumer interests and fundamental democratic values.” 

“Because of the vital role the Internet plays in driving innovation throughout the economy, the Department has made it a top priority to ensure that the Internet remains open for innovation while promoting an environment respectful of individual privacy expectations,” said Commerce Secretary Gary Locke.

The Commerce Department has created an Internet Policy Task Force whose mission is to identify key public policy issues in the Internet environment, including consumer and commercial perspectives.  The Task Force is comprised of staff members from the National Telecommunications and Information Administration (NTIA), the International Trade Administration (ITA), the National Institute of Standards and Technology (NIST) and the Patent and Trademark Office (PTO), and will be coordinated through the Commerce Department’s Office of Policy and Strategic Planning, which reports to the Commerce Secretary.   In addition to privacy and innovation, the Task Force will examine “cyber security, global free flow of information goods and services and online copyright protection, as well as other issues. 

The Task Force is currently seeking comment on the impact of the current privacy framework on commerce and innovation, as well as possible improvements to foster innovation.  Specifically, the Task Force is seeking input on the hurdles businesses face in complying with different state and international laws concerning privacy and data protection and the possible harmonization of such laws.  The Task Force also discusses and seeks comment on the challenges posed by cloud computing models in determining where data is stored and who has jurisdiction over the data.

On May 7, 2010, the Department of Commerce will hold a public meeting to discuss stakeholder views and facilitate public discussion on privacy policy in the United States. Comment submissions are due by June 7, 2010.  After analyzing public comments, the Department of Commerce will issue a report aimed at contributing to the Administration’s domestic and international policy in the area of Internet privacy.