-Caveat Lector-

Why, Hello, Mr. Chips
By Julia Scheeres

1:35 p.m. April 4, 2002 PST

http://wired.com/news/print/0,1294,51575,00.html

The Federal Drug Administration has ruled that an implantable microchip used
for ID purposes is not a regulated device, paving the way for the chip's
immediate sale in the United States, the manufacturer announced today.

For the past several weeks, Applied Digital Solutions has worked to get its
VeriChip -- a biochip containing personal data that is similar to devices used
to identify lost pets -- classified as a non-regulated device. On Thursday, the
company's wish was granted.

"They inquired about the use of the product for non-medical, identification
purposes," said FDA spokeswoman Sharon Snider. "If it's a non-medical use, the
FDA doesn't regulate it."


Because the VeriChip won't be subject to the agency's rigorous safety tests,
ADS will be able to launch the product over the next three months, said ADS
president Scott Silverman, first in the company's headquarters of Palm Beach
County, Florida, and then nationwide.

In the United States, the VeriChip has been marketed as a medical aid which
would allow hospital workers to access patients' health records with a simple
wave of the wand, or reader. While the FDA has not approved storing medical
information on the chip, the device's ID could be cross-referenced with a
computer database holding the patient's records.

In South America, the device has been bundled with a GPS-unit and sold to
potential kidnapping victims. (The company is developing a separate implantable
GPS product for kidnapping targets that should be completed in a year,
Silverman said.) The company hasn't decided yet if it will sell or freely
distribute the scanner needed to read the chip's 125-kHz signal to hospitals.
The scanner is expected to cost between $1,000 and $3,000.

ADS has been inundated with inquiries from teenagers and other technophiles who
are impatient to get the device.

"We'll start the rollout with people who want it for medical concerns and
Generation Y people who want to get chipped because they think it's cool,"
Silverman said.

ADS plans to charge $200 for the chip (insertion would be free at certified
clinics) and an annual $40 service fee for maintaining the users' database. The
chip, which is slightly larger than a grain of rice, is inserted under local
anesthesia during a quick outpatient procedure.

The VeriChip has fanned the fear among certain Christians who believe it may be
the dreaded "Mark of the Beast" described in Biblical lore.

Privacy advocates are also concerned about the chip's involuntary implantation
or the possibility of using the technology to track government
dissidents in the future.

Among the first people to receive the VeriChip will be a Palm Beach County
family called the Jacobs. The Jacobs family -- Leslie, Jeffrey, and
their son Derek -� are interested in the chip for a variety of health, security
and technolust reasons.

Jeffrey Jacobs, the father, suffers from multiple degenerative diseases and
needs 10 medications a day to control pain and other problems. He believes the
chip could save his life during an emergency if he were unable to communicate
with health workers. His 12-year-old son fantasizes about the merging of man
and machine. And Jacobs' wife, Leslie, believes the chip could become a tamper-
proof way to identify people in an increasingly insecure world.

"We are so thrilled to be part of this," Leslie Jacobs said, scoffing at
privacy and religious concerns. "When they find out what this is really about,
and that it can save people's lives, they'll change their minds."

------------------------
"In little more than a year we have gone from enjoying peace
and the most prosperous economy in our history, to a nation
plunged into war, recession and fear. This is a nation being
transformed before our very eyes."

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