http://www.popularmechanics.com/technology/military/news/why-the-nsa-prism-program-could-kill-us-tech-companies-15564220?click=pm_latest
****
Why the NSA Prism Program Could Kill U.S. Tech Companies****

*Within 24 hours, the leak of two documents* has revealed a vast network of
National Security Agency (NSA) surveillance operations that were authorized
by FISA (Foreign Intelligence Surveillance Act) courts with the oversight
of the U.S. Congress. The first document, which Popular Mechanics detailed
yesterday<http://www.popularmechanics.com/technology/military/news/why-the-nsa-wants-all-that-verizon-metadata-15562288?click=pm_news>,
was a FISA court order demanding all telephony metadata from Verizon
Business Network Services over a three-month period, though it hinted at a
much broader program of call log data mining. The second document referred
to a different—and apparently much larger—program aimed at real-time
analysis of web traffic from nine large technology firms, including
Microsoft, Yahoo, Google, Apple, and ("coming soon") Dropbox. Details are
still murky, but it's clear that this was not some clandestine sniffing
effort—it was done with the full cooperation of the companies involved
(though many of the companies have
denied<http://thenextweb.com/us/2013/06/07/facebook-apple-google-microsoft-dropbox-and-yahoo-deny-participation-in-us-government-spying-program-prism/>that
this represents an automatic backdoor into their servers).

According to the document, a bizarrely low-budget internal PowerPoint from
the 
NSA<http://www.washingtonpost.com/wp-srv/special/politics/prism-collection-documents/>,
this Prism surveillance program could give the NSA access to email, video
chat, VoIP conversations, photos, and stored data from the participating
companies. Unlike the call data collection program, this program focuses on
mining the *content* of online communication, not just the metadata about
them, and is potentially a much greater privacy intrusion. James Clapper,
the director of national intelligence, said in a statement that the Prism
program "could not be used to intentionally target any U.S. citizen"—a
statement that, given the nature of how data mining is done, should do
little to allay the fears of civil libertarians.

Let's say we take Clapper at his word: How much should we worry about a
program that is aimed at monitoring the digital communications of
foreigners? We should worry quite a bit, because this issue goes far beyond
just respecting the civil liberties of non-Americans.

Think for a second about just how the U.S. economy has changed in the last
40 years. While a large percentage of our economy is still based in
manufacturing, some of the most ascendant U.S. companies since the 1970s
have been in the information technology sector. Companies such as
Microsoft, Apple, and Google are major exporters of information services
(if you can think of such a thing as "exportable") through products such as
Gmail, iCloud, Exchange, and Azure. Hundreds of millions of people use
these services worldwide, and it has just been revealed to everybody
outside the U.S. that our government reserves the right to look into their
communications whenever it wants.

If you lived in Japan, India, Australia, Mexico, or Brazil, and you used
Gmail, or synced your photos through iCloud, or chatted via Skype, how
would you feel about that? Let's say you ran a business in those countries
that relied upon information services from a U.S. company. Don't these
revelations make using such a service a business liability? In fact,
doesn't this news make it a national security risk for pretty much any
other country to use information services from companies based in the U.S.?
How should we expect the rest of the world to react?

Here's a pretty good guess: Other countries will start routing around the
U.S. information economy by developing, or even mandating, their own
competing services. In 2000, the European Union worked out a series of
"Safe Harbor" regulations mandating privacy protection standards for
companies storing E.U. citizens' data on servers outside of the E.U. For
U.S. companies, that means applying stronger privacy protection for
European data than for our own citizens' data. And now there is considerable
reason to 
believe<http://gigaom.com/2013/06/07/nsa-spying-scandal-fallout-expect-big-impact-in-europe-and-elsewhere/>that
Prism violated our Safe Harbor agreements with the E.U.

Has it come to this? Are we really willing to let the fear of terrorism
threaten one of the most important sectors of the U.S. economy? Frankly, I
expect the Prism program to fall apart on its own, not because of public
outcry but because the companies that participated will now see it as a
toxic association that could threaten their status in fast-growing foreign
markets. If U.S. intelligence agencies try to compel participation through
the courts, I expect companies such as Apple and Google to start putting up
a legal fight—not just because Prism is bad public relations, because it's
bad for business. ****


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