On March 11, 2019, a bipartisan group of lawmakers including Sen. Mark Warner and Sen. Cory Gardner introduced the Internet of Things (IoT) Cybersecurity Improvement Act of 2019. The Act seeks “[t]o leverage Federal Government procurement power to encourage increased cybersecurity for Internet of Things devices.” In other words, this bill aims to shore up cybersecurity requirements for IoT devices purchased and used by the federal government, with the aim of affecting cybersecurity on IoT devices more broadly.

To accomplish this goal, the Act puts forth several action items for the Director of the National Institute of Standards and Technology (“NIST”) and the Office of Management and Budget (“OMB”). Details of these action items and their deadlines are discussed below.

Continue Reading Senate Reintroduces IoT Cybersecurity Improvement Act

There are currently three major cybersecurity-related bills pending in the 114th Congress that address information sharing among private entities and between private entities and the federal government: the Protecting Cyber Networks Act (PCNA), H.R. 1560, the National Cybersecurity Protection Advancement Act of 2015 (NCPAA), H.R. 1731, and the Cyber Security Information Act of 2015 (CISA), S. 754. Some of the key issues that need to be resolved across these bills include: which agency will be designated as the lead as a clearinghouse for cyber threat information, what liability protections will be granted to those companies that do share information, and whether the structures established under any of these bills will also facilitate greater sharing of government threat information with the private sector. Although the bills all provide that existing reporting requirements will not be disturbed, such as those for Department of Defense “(DOD”) contractors, it remains unclear how these different reporting schemes will interact. Similarly, these bills do not address a provision in the House version of the 2016 National Defense Authorization Act that would provide liability protection to certain DOD contractors for properly reporting cyber incidents on their networks and information systems.

Restrictions on the sharing of cyber threat and vulnerability information are often raised as significant barriers to effective cybersecurity. But the sharing of such information is not without risk. In particular, private entities have raised concerns about how the government would use this information and whether such disclosures could result in antitrust, privacy or other legal complications. These bills look to increase incentives for cooperation between the government and the private sector in fending off cyber-attacks by encouraging private companies to voluntarily share information about the particular traits of cyber-attacks—what the bills refer to as “cyber threat indicators”—that they have previously encountered. In response to some of the concerns previously voiced by industry, these bills provide civil suit immunity for private entities that elect to share their information with each other and with the government. The bills also contain liability protection for contractors who monitor government computer systems. What follows is a brief comparison of all three major bills and why their different approaches may or may not benefit government contractors.

Continue Reading Competing Bills Focus on Cybersecurity Information Sharing But Final Language and Ultimate Passage Remain Unknown

Washington policymakers are criticizing corporate “inversions”—i.e., U.S. companies that reincorporate abroad under lower corporate income tax rates—and contractors should take note.  Currently, U.S. law bars an inverted domestic corporation (“IDC”) from receiving funds under a prime U.S. contract.  See Consolidated Appropriations Act of 2014 (H.R. 3547); see also FAR 9.108-2.  On July 29,