Articles Posted in Technology

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Part I: DMV Sale of Personal Information

A group has investigated and allegedly found that the California Department of Motor Vehicles has earned more than $50 million by selling personal information of drivers to third parties without consent. This data may include names, addresses, and registration information. The DMV claims on its website that it does not sell information to advertisers or marketers for advertising or direct marketing purposes. It also claims that:

Most information acquired by the DMV is subject to public inspection under Vehicle Code Section 1808. Other statutes, regulations or laws governing subpoenas, discovery for litigation, Public Records Act requests, and commercial requestor requester accounts also apply to information gathered at this website. However, various provisions of law do prohibit or restrict the disclosure of certain electronically transmitted information such as social security numbers, residence addresses, and credit card accounts numbers. DMV also uses the information gathered on this website to help improve this website. For example, by tracking the number of website visitors, the date of visit, and the pages visited, DMV can balance resources so that the maximum number of visitors can obtain needed information. Additionally, by tracking what visitor software is being used (e.g. browser) DMV can avoid using features that visitors can not view or use.

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Quantum computing technology will be affecting most of us in a direct or indirect way. We have stated in a prior article that: “A quantum computer is a highly-advanced computer system that works exponentially faster than today’s conventional computers. Quantum computing is the practice of studying quantum computers and their potential. This practice is growing and has caused the rapid decrease in the size of computers at the same time as these systems are rapidly increasing in their capability.”

Now, quantum computing has become a reality and technology companies have launched projects in order to compete in this sector. The question is how quantum computers will affect us.

First, since quantum computers are faster than conventional computers, they can break passwords or decrypt encryptions in a shorter time. This has caused concern over privacy and security which has forced companies to invest in quantum resistant cryptography. This technology and its potential ramifications on encrypted networks will also affect EU’s General Data Protection Regulation (GDPR) which outlines the rules and regulations for protecting unauthorized access. The United States government has also reacted and Congress has passed H.R. 6227 in order to implement the National Quantum Initiative Act that states as follows:

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Internet spam violations have increased in the past years. For example, the spammers use the interconnected network of computers that links us together in the world to disseminate malware. The spammers also use the internet to send junk email that fills up email accounts and can be used to commit online fraud – e.g., identify theft.

Robocall violations have also increased in the past years. For example, the robocallers use the telephone systems to continuously call without proper authorization. They do not state their personal or business organization’s names. They call before or after the permissible time periods (i.e., before 8:00 am/after 9:00 pm). They call by using artificial voices or recordings. They may also use automated telephone equipment to make the phone calls.

What are the legal remedies?

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There have been cases where spammers have transmitted spam via email and text messages. These messages can include improper content, propaganda, hidden messages, and malware (e.g., virus, trojan, ransomware, adware, spyware). The spammers use the Internet Service Provider’s and user’s bandwidth to disseminate spam which results in bandwidth saturation, lost productivity, and other complications.

What is spam?

Spam is unsolicited commercial email advertisement that is sent towards recipients by third parties. An “unsolicited commercial email advertisement” means a commercial email advertisement that: (1) The recipient has not provided direct consent to receive advertisements from the advertiser; and (2) The recipient does not have a preexisting or current business relationship with the advertiser.

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Laws against forgery of documents have existed for almost as long as writing itself has existed. For most of that time, forgery techniques did not change very much. However, modern digital technology has significantly expanded opportunities for people to create fraudulent documents. Real estate transactions are making increasing use of “paperless” applications, but most areas of real estate remain firmly rooted in paper. This is particularly true of public real property records. While the media in California might report on how blockchain and other digital tools are changing the real estate business, yet real estate forgery is still mostly rooted in creating documents that could be printed onto paper.

Forgery Laws in California

California’s forgery statute, found in California Penal Code § 470 covers a broad range of activities. In addition to signing another person’s name to various documents without authority, the statute makes it a crime to intentionally “alter, corrupt, or falsify any record of any … conveyance” which includes real estate documents like grants or deeds. Under California Penal Code § 115, a person commits a felony when they knowingly file “any false or forged instrument” with a government agency, such as a county recorder’s office. State law allows county recorders to accept “digitized images, digital images, or both” of a recordable document for filing.

In fact, Section 502(c)(1) prohibits altering or deleting data stored on another person’s computer or computer network as part of “any scheme or artifice to defraud, deceive, or extort.” This can include attempts to falsify or forge digital documents affecting real estate transactions.
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The world is growing increasingly “paperless” as more documents move into digital spaces. People born in this decade might only know terms like “sign on the dotted line” and “before the ink is dry” as something their grandparents would explain. Without hard copies of important documents, though, our legal system needs new ways to indicate that a person has agreed to a contract. Now, electronic signatures (a/k/a “digital signatures” or “e-signatures”) provide evidence of assent without the need for a pen and printer. Federal and state laws, such as the Electronic Signatures in Global and National Commerce (E-SIGN) Act, establish standards for proving the legitimacy of electronic signatures. In real estate transactions, electronic signatures are allowed in any situation where the law does not specifically require otherwise.

What Is an “Electronic Signature”?

The E-SIGN Act defines an electronic signature as any “electronic sound, symbol, or process” that meets the following criteria:

1. It is “attached to or logically associated with” a document (e.g., contract); and
2. The person who “executes or adopts” it intends to do so.

Electronic signatures are possible with hardware, such as the signature pads at many retail checkout counters; and software, such as the signature features in applications like Adobe Acrobat or services like DocuSign. The signature must meet the standards set by federal or state laws and an electronic signature must be acceptable for that document.
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Internet of Things is more extensive than the Internet itself. It constitutes the combination of all electronic devices that are connected on the web and are able to communicate with each other. It is different from the Internet because it is essentially governed by information that is stored by electronic devices without human intervention. Now, smart devices can be connected through complex network systems and embedded sensors. These smart devices include, phones, refrigerators, thermostats, automobiles, or pills that allow medical professionals monitor a patient’s health status. These technological advancements enable smart devices to communicate in real time and promote the process of developing a more intelligent environment.

Artificial Intelligence is the intelligence demonstrated by machines in contrast to the natural intelligence displayed by humans and other animals. It allows machines to learn from experience, adjust to new inputs, and perform human-like tasks.  It relies heavily on deep learning and natural language processing. It uses neural networks which are a combination of software and hardware devices that are designed to emulate the operation of neurons in the human brain.

Smart Dust is a system of tiny microelectromechanical systems (MEMS) such as sensors or robots that detect light, temperature, vibration, magnetism, or chemicals. They are usually operated on a computer network wirelessly and distributed over an area to perform tasks by sensing through radio-frequency identification. This technology is able to collect and transmit data which can be uploaded to the cloud or other remote location.

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Virtual reality (VR) is an experience taking place within simulated and immersive environments that can be similar to or completely different from the real world. It can be used for educational and entertainment purposes.  Also, augmented reality or mixed reality are other types of this technology.

The current systems use some kind of device (e.g., headsets or multi-projected environments) to create images, sounds, or other sensations in order to take the user into the virtual environment. The users can submerge themselves into the virtual environment and interact with the virtual features as if they are real.  The effect is generated by special headsets that yield a head-mounted display with a tiny screen before the eyes, but can also be created through specially designed rooms with big screens. This technology includes visual and auditory feedback, and can also permit other types of senses or feedback through haptic technology.

What are the potential legal issues?

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Smart Dust is a system of tiny microelectromechanical systems (MEMS) which include sensors or robots that are able to detect light, temperature, vibration, magnetism, or chemicals. They are usually operated on a computer network wirelessly and are distributed over an area to perform tasks by sensing through radio-frequency identification.

The concept for this technology came from the Research and Development Corporation (RAND) and a series of governmental studies for potential military applications. This technological advancement was influenced by science fiction authors who mentioned microrobots, artificial swarm intelligence, or necroevolution. Now, this new technology is capable of collecting and transmitting data to and from specific locations. These tiny electronic devices, which are also known as motes, can detect light, vibration, and temperature. Also, the data that is collected by these devices can be uploaded to the Cloud or other remote location for processing.

Smart Dust v. Internet of Things

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The Internet of Things is a relatively new development that has changed the world. However, the laws were either non-existent or archaic. Now, it’s important to inform our readers that Jerry Brown has signed a cybersecurity law covering “smart” devices. The bill, SB-327, was introduced last year and states in relevant part that:

Existing law requires a business to take all reasonable steps to dispose of customer records within its custody or control containing personal information when the records are no longer to be retained by the business by shredding, erasing, or otherwise modifying the personal information in those records to make it unreadable or undecipherable. Existing law also requires a business that owns, licenses, or maintains personal information about a California resident to implement and maintain reasonable security procedures and practices appropriate to the nature of the information, to protect the personal information from unauthorized access, destruction, use, modification, or disclosure. Existing law authorizes a customer injured by a violation of these provisions to institute a civil action to recover damages.

This bill, beginning on January 1, 2020, would require a manufacturer of a connected device, as those terms are defined, to equip the device with a reasonable security feature or features that are appropriate to the nature and function of the device, appropriate to the information it may collect, contain, or transmit, and designed to protect the device and any information contained therein from unauthorized access, destruction, use, modification, or disclosure, as specified.

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