Sony is “very concerned about the spread” of the coronavirus (see 2002040063), said Chief Financial Officer Hiroki Totoki in scripted remarks to analysts in Tokyo, mirroring others. “It is difficult to fully grasp what is going on, but we are exerting all efforts to gather information and assess the situation, and we are taking action where possible.” Sony extends “our condolences to the families of the people who have passed away, and our thoughts are with those who have been infected,” he said. The company reported quarterly results Tuesday for the three months ended Dec. 31. Concerns mounted last week the virus could affect U.S. tech and other supply chains (see 2001310052).
Plug-in devices that connect to Wi-Fi and allow users to operate other devices by controlling whether electrical current flows from the wall outlet differ from wearable smart devices for classification purposes, Customs and Border Protection said in a Jan. 21 ruling, released last week. SDI Technologies argued the “SmartPlugs” deserve a similar classification as Fitbit fitness trackers that connect to mobile phones through Bluetooth. The Fitbit trackers were classified in heading 8517 due to the data transmission functions, but the plugs provide for different functions. “To the extent that data is transmitted from the application to the SmartPlug, it is in service of the primary function of controlling the electrical current to the connected appliance,” the agency said. “The transmission of data is not a function of the SmartPlugs,” it said, concluding the devices “provide electric control of electrical devices connected to them and thus are properly classified under heading 8537.” The applicable subheading, 8537.10.9, includes a 2.7 percent duty rate, and is subject to Section 301 tariffs on China, the agency said.
Nearly 140 countries and “jurisdictions,” working through the Organisation for Economic Co-operation and Development, “reaffirmed” their commitment “to reach a consensus-based long-term solution to the tax challenges arising from the digitalisation of the economy,” said OECD Friday. Their goal is to reach an agreement by year's end, it said. Tech groups back obviating the need for France’s digital services tax and similar measures cropping up elsewhere, which they say can harm U.S. interests (see 2001020036). “We continue to support the OECD process as the best way to resolve this important issue and urge all nations to pursue the ongoing negotiations in a spirit of international cooperation,” said the Information Technology Industry Council.
The White House Friday issued an executive order for “ensuring safe and lawful e-commerce.” Officials cited the exploitation of smaller express-carrier or international mail packages “by traffickers to introduce contraband into the United States” and foreign exporters evading customs duties and fees.
The U.S. effort to box out Huawei shows how complex and intertwined the issues are, said the Asia Society Policy Institute president and a former deputy secretary of state. ASPI President Kevin Rudd, a former prime minister of Australia, said many in the U.S. semiconductor industry told him their ability to reinvest at the scale they need to remain dominant in the latest advances “hangs in part on their ability to export to China.” He asked, if the government bans those exports, will it “then step in to supplement on the order of tens of billions each year?” Rudd and ex-U.S. Deputy Secretary of State John Negroponte discussed the U.S.-China relationship at an ASPI event Tuesday. Negroponte said it's revealing that the Pentagon is resisting Commerce Department moves to restrict exports to Huawei. “It’s the Department of Defense finally calling to our attention this issue is more complex than it may seem. This technological war is going to be complicated,” he said. The U.S. makes 45 percent of semiconductors; China, 5 percent. That same day, the U.K. announced it won't bar Huawei from its 5G networks but will ban it from the “core” of those networks (see 2001280074). “Sounds like a great British fudge to me,” said Rudd.
FCC Commissioner Mike O’Rielly said he agrees broadly with calls by President Donald Trump at the World Economic Forum in Davos, Switzerland, last week, for changes in the U.S. relationship with organizations like the World Trade Organization. The same could apply to the ITU and the World Radiocommunication Conference, O’Rielly said. “I defer on trade policy, but @realDonaldTrump & Admin is 100% right that U.S. must demand much, much more out international organizations,” O’Rielly tweeted Tuesday: “My views on the WRC & @ITU are exactly in line with this: WRC/ITU must dramatically improve or U.S. should find new structure.” O’Rielly said he views last year’s WRC as mixed for U.S. interests (see 1912180045).
Veego Software, an Israeli artificial intelligence-based software-as-a-service for ISPs, is looking to expand its brand in the U.S., CEO Amir Kotler told us. Veego’s software provides “self-healing” for a home network, where possible, eliminating truck rolls. As subscribers add connected devices, service issues grow in complexity, he said. In many cases, problems aren’t the fault of the ISP, but are due to complications in the cloud, with other devices or external problems, he said. The Veego SaaS detects Wi-Fi anomalies that affect streaming, browsing, gaming and other services in a smart home, Kotler said. It analyzes the root cause, pinpoints the precise location and reason, and lets subscribers know whom to contact. In some cases, it can fix problems on the spot, he said. The software is compliant with the general data protection regulation, said the executive: It doesn’t store personal information; data sits on the subscriber’s route.
ISPs should “strongly consider joining the Mutually Agreed Norms for Routing Security initiative,” the World Economic Forum said Thursday. “Systemic security issues about how traffic is routed on the Internet make it a relatively easy target for criminals,” WEF Outreach Manager-Asia Pacific Adrian Wan wrote. “MANRS helps reduce the most common routing threats and increase efficiency and transparency among ISPs on peering relationships.”
Vodafone Group has withdrawn from Facebook’s Libra Association (see 1910230063). “We will continue to monitor the development of the Libra Association and do not rule out the possibility of future co-operation” but for now will focus on Vodafone's M-Pesa money transfer service, a spokesperson emailed.
Rep. Jim Banks, R-Ind., filed House companion legislation Tuesday to a bill (S-3153) from Sen. Tom Cotton, R-Ark., targeting Huawei (see 2001080002). The bill would bar the U.S. from sharing intelligence “with any country that permits operation within its national borders” of Huawei-produced 5G equipment. “Huawei is a Trojan Horse for the Chinese Communist Party to spy on and infiltrate other nations,” Banks said. “Our allies must choose: Adopt Huawei and lose access to U.S. intelligence, or remain our trusted partner.” The U.S. is trying to convince the U.K. government not to allow Huawei equipment on the country’s 5G infrastructure. House Republican Conference Chair Liz Cheney of Wyoming, a co-sponsor of Banks’ bill, said that “allowing Huawei into the U.K.’s 5G networks would pose a national security threat that could not be mitigated or contained. Such a decision would necessarily have negative consequences for the U.S./U.K. relationship in many areas, including trade and intelligence cooperation.”