Technology continues to grow. I look forward to hearing from our witnesses in how to address these challenges and i yield back the balance of my time. Thank you, mr. Adler. Thank you, mr. Chairman. Today were here to learning more about the internet of things. It has the ability to not only improve the more mundane aspects of our lives, but transform health care and Information Technology industries. This is of particular interest to the Judiciary Committee considering our longstanding jurisdiction when it comes to intellectual property Cloud Computing and digital trade. The internet of things refers to machines containing sensors that transmit data to other connected devices and the internet. Dramatic in Cloud Computing the past several years has helped to enable the technology to reach its full potential. Without the ability for data from an enter is net of things device to be analyzed in realtime, the data itself would certain little valuable. The a ability to access through mobile apps or even our cars makes these internet of things devices a key tool to finding Creative Solutions for many of the problems of daily life in the 21st century. Smart agriculture will help us grow more food and prevent waste. Smart transportation will help prevent traffic jams but can also be used to monitor Road Conditions and structural components of bridges and overpass toss detect problems immediately. New wearables not only monitor the number of steps we take but can include sensors that can catch and alert taos potential medical emergencies before it actually becomes one. As this committee continues to study this new technology, it is important for us to keep in mind the full scope of the internet of things and be cognizant of policies today and in the future. In particular, we need to examine the privacy and security implications of this technology and look into the Security Privacy measures they are building now and as they plan to implement as open standards are to develop. I am hoping it helps fuel prosperity and creativity. I think we have a fantastic panel assembled today. I know all the witnesses and i look forward to hearing from them about this exciting new area of technology. Thank you, mr. Chairman. On behalf of the Ranking Member, the gentlelady from washington First District will make a short opening statement. Thank you. I want to thank my cochair on internet of things caucus as well as the Ranking Member for calling this hearing on this important subject. When we examine the way products and sensors are being used and whats called the internet of things from Home Appliances to personal wearables it might be easy to conclude it is only by american ingenuity. We have an emerging set of challenges for innovators and consumers. To start, we need to make sure we update existing laws to reflect the way the world works today and where we are headed in the future. That means, for example, updating the Electronic Communications privacy act to make sure data on a server is the same as the documents in the file cabinet. For the multibillion dollar internet of things to be successful, we need to be responsible stewards of policy. They must feel their devices can be secure and private, not vulnerable to hacking or spying. Forging a path to adoption of uniform, preferably international standards. Regulatory agencies must find ways to strike the right balance between encouragingen know vacations and upholding their duty in the realm of protected cars. All of these collect unprecedented amounts of adult, they hold great things like health research. Provide individuals with control over their own data. Again, i want ta thank the chair and the Ranking Member for calling todays important hearing and setting the stage for a productive and informative series of hearings on the role that congress and our committee can play and create an environment where internet of things innovation can prosper and Consumer Protection is at the forefront. Thank you, mr. Chair. And i yield back. I thank you. And thank you for your leadership on this issue. It is now my pleasure to introduce our distinguished panel. The witnesses have written statements and have been entered into the record and will be placed in their entirety. And i would ask witnesses to summarize in about five minutes. Their statements so we can leave time for lots of questions. But before i introduce the witnesses formally pursuant to the committee rules, i ask that all witnesses stand to take the oath. Customarily raising your right hand. Do you solemnly swear or affirm that the testimony you are about to give will be the truth the whole truth and nothing but the truth. Please be seated. Let the record reflect that all witnesses answered in the affirmative. Today our witnesses including mr. Gary shapiro, president and ceo of Consumer Electronics association. Mr. Dean garfield, president and ceo of the Technology Industry council. Baywall, president and ceo of a alliance of automobile manufacturers. And mr. Morgan reid, executive director of act, a. C. T. , act association. Before i go down the road for the witnesses, i have to a little bit of a personal privilege. The other three know it. Mr. Shapiro and i go back a long time. We were there at the berth of the modern Consumer Electronics association. And i once worked for him on an unpaid highly compensated by unpaid position as the chairman. So if today i rough him up, remember, get back. It takes a while. And with that, mr. Shapiro. Thank you, chairman. This is indeed a historic moment in my life. I have been referring to you as boss for 25 years. And you as chairman oversaw a good portion of our freedom and our growth. And thank you Ranking Member adler, chairman goodin and other members as well. It represents 2,000 Technology Companies. We own and produce the ces which is held each january in las vegas and is the Worlds Largest innovation event. The internet of things is a big part of the ces. It is so big that 900 of our 3,600 exhibitors had related products in our recent show. And the other thing you should know exist because of smartphones. Over a billion smartphones have been sold. And they contain something called micro electronics mechanical systems mems. They measure things like pressure, temperature, location movement, and other valuable information. And because of the billions of these devices in phones they cost now just pennies to piece. They use very little energy. They hook up the internet. From garden soil to Baby Monitors and wearables like smart catches thermostats and lights, household products. They are using them to stay healthy, increase efficiency to be secure. And to make better decisions. You have heard the estimate ises of how these are going to grow. And they are estimates. I swore to tell the truth so i cant say theyre factual. There is definite growth. We grew 32 in the United States alone in terms of the connected home devices. It is almost a billion dollar marketplace in the United States. It allows consumers to mount security systems, manage heating and cooling and lighting systems. And they also increase home efficiency and cut bills. They can learn patterns over time. They can adjust temperatures. And maximize efficiency even when no one is home. While they save time and money for ordinary americans, there is an opportunity here to care for our aging population, as well as the 56 million americans with disabilities. The technology has been customized and costly. And professional novel interface like voice control. Smoke detectors can be through lighting control. It can light up the whole house for a safe excite. They are life changing and sustaining for many americans. Think about our older loved ones. We have limited caregivers in an aging population. They will help seniors live independently and comfortably, maintain their quality of life and they can do this with remote, with caregivers watchly remotely at the same time Older Americans will retain their privacy and share just what they are comfortable sharing is. It requires spectrum. Wireless is the platform in which most connect. We need an additional licensed and unlicensed spectrum. It is changing what skills we need to maintain our competitive advantage. We dont have enough skilled workers. Thats why we are pushing for highly skilled integration reform. Third, it requires government restraint. It does require us to consider new challenges. Legitimate concerns about safety privacy, security. Who actually owns the data. Stakeholders, including government can and should be discussing these today. As we said in our filing with the ftc it hinges on building trust. I just heard that again congresswoman. Its up to manufacturers and manufacturing to make good decisions about privacy and security. We are a passion a doing our best to protect consumers. But we recognize and respect the legitimate role of transparency, clarity. 30 standard making operations, activities that produce anti certified standards. Focusing on technical aspects of the internet of things. And of course its just beginning. And we have to be careful of overprescripted because that could stimy the growth of things. Any Government Action should be very now and focus on real harm. The Internet Things thing is huge. We will Work Together to make sure it supports growth in this dynamic sector. Thank you. And i look forward to answering your questions. Thank you, mr. Shapiro. Mr. Garfield . Ranking member adler, members of the committee. On behalf of 61 of the most dynamic and Innovative Companies in the world, we thank you for hosting this hearing. We thank you as well for the context which is outside pending legislation. As well, mr. Chairman and congresswoman for your leadership in creating the internet of things caucus. Sit our firm view that the internet of things has the poe to be one of the most Technological Innovations in history. That is with the right policy involvement to make sure i am not accused of hyperbolic. Our humble recommendations on how congress can be helpful. As to the first, the internet of things is the digitization of the connected world with computing systems. One may sound similar has the potential to be seismic in the creation of new industries. Whether were talking about watches that have the potential to not only help you to be more fit, but as well to prevent Catastrophic Health incidence through monitoring your heart rate. Or were talking about windshield wipers that have the ability to communicate with other windshield wipers and alert your car to an impending storm or an Autonomous Vehicle to a Construction Zone soon arriving. There has been much discussion of the home and personal manifestations of things. It is important, however, not to ignore the commercial deployment. They are real, tangible, and have huge potential economic benefit. Whether it is the demyment of centers in our energy grid to ensure greater resiliency and reliance, the deployment of sensors in Transportation Systems to allow more efficient delivery. Or to ensure safety for workers. The Economic Impact, much of the Economic Impact will come from the deployment which by 2030 is expected to be almost 7 trillion. So what are we doing to ensure that is the case . Were focused on a multifaceted approach that is heavily emphasized security, privacy standards as well as investment in infrastructure. With regard to security and privacy or we are working innovating around those issues. Making sure they are developed by design so they are part of our forethought rather than afterthought. We are developing solution toss ensure that both security and privacy are tailored to the particular environment. And as well we are investing in innovation because consumers demand high security and privacy and increasing transparency. Its in our interest and its the right thing to do to meet the consumer demand. As well we are moving forward on Global Standards that are really privately better driven by the sector. And as well that are open standards to ensure that we have high inter opability as well as scaleability. Finally, we are invested in the infrastructure. Mr. Shapiro noted the need for broadband, band and wireless as well as ensuring that spectrum is available. The use of speck truck is growing on mobile date by 55 each year. With the internet of things and digitizization it will only grow more expeditiously. So spectrum will be increasingly important. In addition to doing those things we intend and need to partner with congress and the administration to make sure that policy is smartly in focus. One is we need a National Strategy around the internet of things. Much in the same way that a broadband, having a natural strategy will be incredibly helpful. Second, we need more spectrum as mr. Shapiro and i pointed out earlier. The u. S. Government is the largest holder of spectrum and has the greatest ability to impact spectrum and we hope to make it more efficient. Finally, we need the exercise of restraint. It is in stages. In order to grow to reach its full potential it is important that we avoid mandates that put the thumb on the scale of particular technologies versus others. I look forward to your questions and the testimony of my colleagues. Thank you. Thank you. You only have to deal with all the questions set up in the opening statements. So i look forward to your five minutes. A piece of cake. Chairman, members of the committee, thank you for the opportunity to testify this morning. A wore a different hat the last time i was here. Another industry that was engaging with the challenge of technology. During my time, it access began to replace ownership. The model transformed. Now the last four years instead of fighting with gary shapiro, i mostly team up with him. Its easier. Thats a good thing. Only in washington. Yeah, right. I represent the detroit three, six major european manufacturers, and three major japanese manufacturers as well. For us the impact of technology is every bit of profound but not threatening. Technology and connectivity are ushering in a new era. Some may say a golden age of mobility. We have seen enormous safety and environmental gains. Striking the numbers and emissions as well as increases in mpg. The next generation of progress will come from iot based technologies. Ownership patterns may evolve somewhat as ride sharing becomes more prevalent. But the truly Material Impact of technology is the convergence of environmental safety productive and life quality benefits that arise from connectivity of an iot world. When it comes to cars, safety and objective conflicted. Heavy and safe or light and green. Every parent struggled with the choice for their teenagers. Strategies for safety centered on surviving crashes. It harmonizes safety in green, crash avoidance. Manages the car better than a human can fosters more efficient mobility because there will be fewer crashes on congestion. It translates into more economic productivity, more personal time fewer injuries fewer fatalities and fewer emissions and less wasted fuel. Getting to the future as fast as we can is critical. 95 of all traffic fatalities results in human error or environmental conditions. Vehicle factors account for just a fraction. Technology is so powerful because it offers the promise of mitt gating human error. As todays innovation automatic breaking adaptive lighting blind spot warnings. And Tomorrows Technology is going to be and ultimately selfdriving vehicles. It must be embraced and seen as the answer, not the problem. That means working proactively with privacy and cyber security. Last year auto manufacturers began the first in the iot, nonpure play internet sector to adopt a comprehensive set of policies and principles. The principles have a strong lineage. The Consumer Product bill of rights and suggestions from privacy advocates. Transparency, respect for contacts. That is security. The most sensitive types of information needed for some technologies geo location where youre going. How fast youre going. Biometrics. Clear and prominent notice. The purposes of why it is collected and the entity with which it can be shared. Similarly, the industry is working to stay ahead of the threat posed by malicious hackers. We announced the formation of auto isac. For sharing information existing or potential cyber threats. The Alliance Security bills in the house that would facilitate the public and private sectors while protecting individual security. We hope the senate is acts soon to move the bill to the present. The next 20 years the evolution of the internet is enormously exciting. Strengthening the quality of life, the environment and our economy. We look forward to working with you to realize the benefits of innovation and address the challenges that come along the way. Thank you. Mr. Reid . Chairman Ranking Member adler, distinguished members of the commute, i thank you for holding this important hearing on the internet of things. It represents 5,000 companies and Technology Firms around the globe making the software and the a apps you love. We are spearheading an effort to clarify outdated Health Regulation and remote patient monitoring and ensuring in which patients and consumers can see an improvement in the health. Key stakeholders in congress. Fda, h