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New Tech Lobbyists On The Block
by Bara Vaida
Identix, a Silicon Valley-based biometrics company, opened its doors in 1982 but never grabbed the attention of Capitol Hill like firms such as theglobe.com, Yahoo or DoubleClick in the past three years. Since Sept. 11, however, computer security is hot, and companies like Identix, which makes fingerprint software, are significantly increasing their lobbying profile.
Lawmakers interested in the use of technology to increase security have sought input from officials with security-related firms, and many have been asked to testify before committees. "Right now, there is a huge thirst for knowledge on the Hill on computer security," said Matt Tanielian, director of government relations at the Information Technology Industry Council, which represents more than two dozen of the largest IT companies.
In the past two weeks, Senate Republicans and Democrats have held hours-long briefings with dozens of high-tech security experts, and policymakers have held numerous hearings on how the private and public sectors can improve their information security. Meanwhile, the security experts have gained greater prominence than the lobbyists working on privacy, broadband, Internet taxation and other issues that had been dominant tech topics.
"Computer security becomes important when there is a problem but not until then," said Valerie Lyons, executive vice president of sales at Identix, which hired the public affairs firm Hill & Knowlton to boost its visibility on the Hill. "Biometrics ... has been around for 13 years, but it didn't get a lot of visibility. Suddenly, it is a Hill issue."
Toward A More Secure Nation
Information security always has been on the high-tech agenda, but it has been considered a lower priority. As an indication of how little a priority it is to most companies, Forrester Research analyst Frank Pierce said the average company only spends $239 on computer-security products for every $1 million in revenue it produces.
"This is a very small market," said Pierce, who is recalculating his predictions for computer-security spending. Before Sept. 11, Forrester Research predicted the market would grow to $19 billion in 2004, from $5 billion in 2000. Pierce said early indications are that companies do plan to boost their computer-security spending in 2002, but he does not know yet by how much because of the economic downturn.
Meanwhile, the federal government is expected to expand its spending on computer security within agencies, and the slumping high-tech sector could benefit from that boost. It is not clear how much federal money will be allocated for such projects.
Eager for a shot at whatever money is available, more than 100 government contractors from high-tech and other companies attended an October briefing on Govnet, a proposed private, secure intranet for government office buildings across the country. The meeting, convened by White House cyber-security adviser Richard Clarke, was aimed at soliciting ideas on whether such a network was feasible and made no promise for an actual contract. Still, White House officials said they have received "quite a response" from contractors offering proposals.
"The companies that make security products have an interest in seeing security given a higher profile," said Jim Lewis, the director of technology and public policy for the Center for Strategic and International Studies, "because one of the problems has been that people haven't been buying computer-security stuff, and if there is more interest in security, maybe more people will buy their stuff."
The Mission: Educate, Then Legislate
In addition to Identix, lower-profile companies that flocked to the Hill over the past few weeks included Entrust Technologies, Exodus Communications, Internet Security Systems, Iridian Technologies, Tumbleweed Communications, Viisage Technology and Visionics, as well as security teams with big companies such as Cisco Systems, IBM, Microsoft, Oracle, Symantec, TRW and VeriSign.
Officials who attended the meetings said they were mostly there to educate lawmakers on computer security, but the meetings will result in hearing appearances for at least a few of the companies. Senate Commerce Science, Technology and Space Subcommittee Chairman Ron Wyden, D-Ore., asked each company represented at the Democrats' meeting to write a memo on what the government should be doing to protect computer networks, and he plans to hold a hearing on the issue in the next few weeks.
"Obviously the visibility you get from a hearing is always good and getting to know the staffers and hearing about appropriations is useful" for business, said Peter Harter, senior vice president of business development and public policy at Securify, a computer-security company. Harter was a general counsel at Netscape Communications in the mid-1990s when the high-tech community was fiercely lobbying Congress to loosen encryption controls and thus has long understood the connection between public policy and business.
Lewis said computer-security experts lobbying the Hill also might be working to make sure Congress does not pass the wrong kind of security legislation.
"There is also a real concern that left to its own devices, Congress will legislate in haste and do something wrong," said Lewis. "And by wrong I mean in terms of favoring one company over another or locking us into one technology or mandating something that doesn't work."
Looser Lips, Tighter Networks
For companies like Microsoft that have long been lobbying Congress, there is hope that the spotlight on computer security will result in momentum on pending legislation.
For several years, Sen. Robert Bennett, R-Utah, and Reps. Tom Davis, R-Va., and James Moran, D-Va., have been pedaling legislation that would exempt businesses from some Freedom of Information Act and antitrust regulations as a way to encourage companies to share information about cyber-security breaches with the government. Tech officials have been reluctant to let the government know that their computer networks have been breached, however, for fear that the news would lead to negative press and hurt Wall Street perceptions of their companies.
"I can assure you that this simple [FOIA] change will lead many companies to answer the government's urging that they provide much more computer-security data to the government," Microsoft Chief Security Officer Howard Schmidt testified to the House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection last week.
There is also hope that the intense focus will lead government agencies to improve their security measures. Earlier this month, Rep. Steve Horn, R-Calif., gave the federal government a failing grade for protecting its computer networks from attack.
"I would hope that Congress is recognizing that among other things that they need to get their house in order," said Bruce Heiman, executive director of Americans for Computer Privacy, a 100-company organization that lobbies on computer security.
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