OVERNIGHT TECH: Privacy groups blast Feinstein’s NSA bill

THE LEDE: Civil liberties advocates slammed a bill from Senate Intelligence Committee Chairwoman Dianne Feinstein (D-Calif.) Thursday, saying it would ratify rather than reform the National Security Agency’s sweeping spying powers.

The FISA Improvements Act, approved by the Intelligence Committee Thursday in an 11-4 vote, sits in stark contrast to the bulk-collection-ending USA Freedom Act, introduced by Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.).

{mosads}Feinstein’s bill “maintains business as usual” rather than listening to Americans’ calls to end the bulk collection, Sen. Ron Wyden (D-Ore.) said in a statement.

The committee “approved a bill that would codify overbroad surveillance practices that infringe on the constitutional rights of law-abiding Americans without making America any safer, he said.  

“I voted against this legislation in committee, and I will strenuously oppose any similar attempts to codify overreaching government surveillance.”

Sen. Mark Udall (D-Colo.) also opposed the bill. Wyden and Udall — along with Sens. Rand Paul (R-Ky.) and Richard Blumenthal (D-Conn.) — recently introduced an NSA reform package that would end the bulk collection.

Privacy groups opposed Feinstein’s bill as well.

Michelle Richardson of the ACLU called the bill “a congressional stamp of approval on gross privacy violations.” The ACLU “will fight this bill for what it is — a way to make the worst abuses of the Patriot Act permanent,” she said.

Greg Nojeim at the Center for Democracy and Technology criticized the bill because it “authorizes bulk collection of phone records and gives the imprimatur of Congress to the bulk collection of Internet metadata as well.”

“The modest improvements it makes are far outweighed by the damage it does to civil liberties,” he said.

But Sen. Jay Rockefeller (D-W.Va.), who voted for the bill, argued the changes “represent real and important corrections to previous versions of these programs in years past.”

Feinstein’s bill would codify existing privacy rules, create criminal penalties for unauthorized access of the phone call database and require more reporting to the public and Congress. 

‘Friends of the court’ amendment approved: While voting on Feinstein’s bill, the Senate Intelligence Committee approved an amendment from Sen. Angus King (I-Maine) that would allow the Foreign Intelligence Surveillance Court to seek independent expertise when considering proposals that would expand surveillance authority.

“The Constitution guarantees the protection of privacy, and consequently the struggle in recent years has become how to properly balance the two,” King said in a statement. By allowing the court to turn to outside experts, “we will take a vital step forward in ensuring the legal and technical implications of these programs are scrutinized appropriately.”

Correction: Yesterday’s Overnight Tech mischaracterized a statement from the Innovation Alliance. The group was criticizing a recent California legislature hearing for failing to include “the important perspective of innovators, entrepreneurs and the general public.”

AT&T warns auction caps will cost billions: Restricting participation in the upcoming spectrum auction could cost the federal government between $13.4 billion and $26.8 billion, according to a study released Thursday by AT&T. 

T-Mobile and Sprint have urged the Federal Communications Commission (FCC) to cap the amount of spectrum that AT&T and Verizon can win in the auction. They warn that without restraints, the two largest carriers could use the auction to gain total dominance over the industry.

The Justice Department’s Antitrust Division has also recommended that the FCC cap Verizon and AT&T to encourage industry competition.

But the study filed with the FCC Thursday warns that even mild participation restrictions could reduce auction revenue by billions of dollars. The federal government is counting on the revenue from the auctions to build a nationwide wireless network for first responders, to pay the TV broadcasters giving up their spectrum and to reduce the deficit. 

T-Mobile has claimed that the auction limits could actually increase revenue by encouraging smaller companies to participate. 

“Such increases in the number of bidders or budgets by existing bidders are implausible,” the AT&T economists wrote.  

FCC applauds in-flight devices decision: Federal Communication Commission Acting Chairwoman Mignon Clyburn applauded the Federal Aviation Administration for allowing the use of electronic devices throughout flights.

“Today, consumers expect to use their wireless devices everywhere, and at all times,” she said in a statement. “Over the past year, the FCC has taken a number of specific actions to improve the ability of consumers to use their Wi-Fi-enabled devices aboard aircraft, and we are continuing to examine how best to promote consumers’ and businesses’ ability to use wireless devices both aboard aircraft and elsewhere.”

IN CASE YOU MISSED IT

Google, Facebook and four other major tech companies announced their support for the surveillance-limiting USA Freedom Act.

Airlines are racing to allow customers to use their portable electronics for the duration of flights.

Some surveillance by U.S. intelligence agencies happened on autopilot, Secretary of State John Kerry said.

Sen. Rand Paul (R-Ky.) questioned whether the NSA’s collection of phone call data includes surveillance of President Obama’s phone.

Senate Commerce Committee Chairman Jay Rockefeller (D-W.Va.) called for caution as airlines allow the use of portable electronics during flights’ takeoffs and landings.

Online ad groups and privacy advocates question the recent decision to continue the process to create a Do Not Track tool.

The National Association of Manufacturers launched a new group Thursday focusing on technology policy issues such as patents, cybersecurity and Internet access. 

Cellphone carriers, represented by CTIA-The Wireless Association, are looking for a new top lobbyist.

The debate over patent reform is driving a wedge in the tech industry.

Please send tips and comments to Brendan Sasso, bsasso@digital-staging.thehill.com, and Kate Tummarello, katet@digital-staging.thehill.com.

Follow Hillicon Valley on Twitter: @HilliconValley, @BrendanSasso, @ktummarello