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«Anil Dagar, Yasuhiro Endo, Abhay Gupta, Yan Li, Kuldip Pabla, Sridhar Ramaswamy, Ikhlaq Sidhu College of Engineering University of California, ...»

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3) Additional security tools will also be necessary, as publisher websites will be audited more closely. They will need tools to detect and address vulnerabilities on their websites. There will be need for additional tools for the auditing and reporting. And last but not least, end users will need tools to protect their private data over and above that which is provided by #2.

5.1. New Ecosystem The government will recognize these auditing companies, similar to its relationship with auditing companies in the finance industry. This will allow the government to create healthy regulations, which will help the Internet Industry grow without compromising the privacy of end users.

Independent auditors will keep service providers accountable to end users. This will allow end users to manage their information easily, privately and consistently.

Today’s security solutions are designed to widen the gap between the consumers and web publishers, because they are either Pro-consumer or Pro-business. In the new ecosystem, tools would be designed to close the gap instead of increasing it.

–  –  –

Figure 6: Value net of possible opportunities Using this description, with our proposed opportunity in the center of the value chain, we see the


Small and medium publishers will be the customers. They will benefit because they will be • able to stay competitive without violating privacy regulations. Just as the finance industry uses internal auditors, these publishers will be able to stay compliant. With certification from external auditors, they will be able to prove compliance to the government and to end users.

A strong partnership will be built with government privacy regulators. The government sees • auditors as trusted partners who help created balanced regulations, and rely on the auditors to ensure publishers are compliant.

Big publishers will not use this company’s services in the beginning, probably because they • believe they can successfully remain independent. They will lobby for privacy regulations on their own. However, we believe that big publishers will realize that lobbying is not core to their business and can be easily outsourced.

Companies that provide tools and services to enhance privacy will be the new suppliers. Their tools will help protect publisher websites, which will make it easier to audit and certify these companies.

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6. Conclusion Interest groups have long considered online privacy a priority. The actions that the government takes to enable Internet users to control the amount of data they share and how the share it will undoubtedly have a profound effect in the online data ecosystem. As identified in this report, the government must create balanced regulations and monitor publishers’ compliance to these regulations. The end users need to feel more comfortable sharing their information online to enjoy a better user experience without compromising privacy.

In the Opportunities section, this report identified three areas in which there are significant gaps in the existing ecosystem. New services and solutions in these areas will help create a healthy ecosystem, without which the $9B Internet economy, growing at 18 percent, will be severely impacted. This is obvious from the comparison of the US and EU economies, where costly and restrictive rules have impacted the competitiveness of Europe’s digital companies.

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1. Internet Advertising Revenues Hit Historic High in Q3 2012 [http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_re lease/pr-121912]

2. The Value of Behavioral Targeting [http://www.networkadvertising.org/pdfs/Beales_NAI_Study.pdf]

3. Stricter Privacy Regulations for Online Advertising Will Harm the Free Internet.

4. Net benefits:How to quantify the gains that the internet has brought to consumers;

Economist March 9th, 2013

5. https://www.privacyrights.org/online-information-brokers-list, Mar 2013 6. (http://businesstoday.intoday.in/story/do-not-track-tools-could-choke-interneteconomy/1/192141.html) 7. “The What They Know” series (http://online.wsj.com/public/page/what-they-know-digitalprivacy.html ), the Wall Street Journal (WSJ)

8. http://www.stanfordlawreview.org/online/privacy-paradox/right-to-be-forgotten

9. http://www.emarketer.com/newsroom/index.php/digital-ad-spending-top-37-billion-2012market-consolidates/

10. http://en.wikipedia.org/wiki/Equifax.

11. 1970 Fair Credit Reporting Act (http://en.wikipedia.org/wiki/Fair_Credit_Reporting_Act

12. http://www.ftc.gov/bcp/workshops/privacyroundtables/personalDataEcosystem.pdf

–  –  –

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Acknowledgement: This paper was created in an open classroom environment. There should be no proprietary information contained in this paper. No information placed in this paper is intended to affect or influence public relations of any firm affiliated with any of the authors.

The Coleman Fung Institute for Engineering Leadership, launched in January 2010, prepares engineers and scientists – from students to seasoned professionals – with the multidisciplinary skills to lead enterprises of all scales, in industry, government and the nonprofit sector.

Headquartered in UC Berkeley’s College of Engineering and built on the foundation laid by the College’s Center for Entrepreneurship & Technology, the Fung Institute combines leadership coursework in technology innovation and management with intensive study in an area of industry specialization.

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