The bipartisan Internet of Things (“IoT”) Cybersecurity Improvement Act of 2020 (S. 734, H.R. 1668) has passed the House and the Senate and is headed to the President’s desk for signature.  The bill was sponsored in the House by Representatives Hurd (R-TX) and Kelly (D-IL), and in the Senate by Senators Warner (D-VA) and Gardner (R-CO).  President Trump is expected to sign the measure into law.

According to Senator Warner (D-VA), the bill would “harness the purchasing power of the federal government and incentivize companies to finally secure the [internet-connected] devices they create and sell.”

The IoT Cybersecurity Improvement Act will require the National Institute of Standards and Technology (“NIST”) to develop minimum cybersecurity standards for internet-connected devices purchased or used by the federal government.  The bill sets forth the following requirements:

  • NIST must develop standards and guidelines for the appropriate use and management of all IoT devices owned or used by the federal government.
  • These standards must include minimum security requirements for managing cybersecurity risks for IoT devices and should take into account:
    • secure development,
    • identity management,
    • patching, and
    • configuration management.
  • The Comptroller General would be required to brief Congress on the increasing convergence of IoT devices and traditional information technology devices, networks, and systems, and make certain reports about security vulnerabilities available to the public.
  • The Director of NIST must also publish guidelines for the reporting, coordinating, publishing, and receiving of information about security vulnerabilities relating to agency information systems, including IoT devices, and resolution of such security vulnerabilities. To develop these guidelines, the Director of NIST may consult with researchers and private-sector experts, as the Director deems appropriate.
  • Federal agencies would be prohibited from procuring or obtaining, renewing a contract to procure or obtain, or using an IoT device if their Chief Information Officer determines that the use of the device prevents compliance with the NIST guidance.  The head of the agency may waive this prohibition under certain circumstances.

In commenting on the bill, Senator Gardner noted that “Most experts expect tens of billions of devices operating on our networks within the next several years as the . . . [IoT] landscape continues to expand.  We need to make sure these devices are secure from malicious cyber-attacks as they continue to transform our society and add countless new entry points into our networks, particularly when they are integrated into the federal government’s networks.”

Representative Kelly (D-IL), another of the bill’s sponsors, reflected that “IoT devices are more and more common and fulfill greater and greater functions in our government, especially in this largely digital work environment created by COVID-19 . . . .  By establishing some baseline standards for the security of these devices, we will make our country and the data of American citizens more secure.”

This bill may be of particular interest to manufacturers of IoT devices, in particular with respect to any standards ultimately developed by NIST under this law.

Regular updates on developments related to IoT and cybersecurity can be found on Covington’s Internet of Things website.

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Photo of Jayne Ponder Jayne Ponder

Jayne Ponder provides strategic advice to national and multinational companies across industries on existing and emerging data privacy, cybersecurity, and artificial intelligence laws and regulations.

Jayne’s practice focuses on helping clients launch and improve products and services that involve laws governing data privacy…

Jayne Ponder provides strategic advice to national and multinational companies across industries on existing and emerging data privacy, cybersecurity, and artificial intelligence laws and regulations.

Jayne’s practice focuses on helping clients launch and improve products and services that involve laws governing data privacy, artificial intelligence, sensitive data and biometrics, marketing and online advertising, connected devices, and social media. For example, Jayne regularly advises clients on the California Consumer Privacy Act, Colorado AI Act, and the developing patchwork of U.S. state data privacy and artificial intelligence laws. She advises clients on drafting consumer notices, designing consent flows and consumer choices, drafting and negotiating commercial terms, building consumer rights processes, and undertaking data protection impact assessments. In addition, she routinely partners with clients on the development of risk-based privacy and artificial intelligence governance programs that reflect the dynamic regulatory environment and incorporate practical mitigation measures.

Jayne routinely represents clients in enforcement actions brought by the Federal Trade Commission and state attorneys general, particularly in areas related to data privacy, artificial intelligence, advertising, and cybersecurity. Additionally, she helps clients to advance advocacy in rulemaking processes led by federal and state regulators on data privacy, cybersecurity, and artificial intelligence topics.

As part of her practice, Jayne also advises companies on cybersecurity incident preparedness and response, including by drafting, revising, and testing incident response plans, conducting cybersecurity gap assessments, engaging vendors, and analyzing obligations under breach notification laws following an incident.

Jayne maintains an active pro bono practice, including assisting small and nonprofit entities with data privacy topics and elder estate planning.

Photo of Jennifer Johnson Jennifer Johnson

Jennifer Johnson is a partner specializing in communications, media and technology matters who serves as Co-Chair of Covington’s Technology Industry Group and its global and multi-disciplinary Artificial Intelligence (AI) and Internet of Things (IoT) Groups. She represents and advises technology companies, content distributors…

Jennifer Johnson is a partner specializing in communications, media and technology matters who serves as Co-Chair of Covington’s Technology Industry Group and its global and multi-disciplinary Artificial Intelligence (AI) and Internet of Things (IoT) Groups. She represents and advises technology companies, content distributors, television companies, trade associations, and other entities on a wide range of media and technology matters. Jennifer has three decades of experience advising clients in the communications, media and technology sectors, and has held leadership roles in these practices for more than twenty years. On technology issues, she collaborates with Covington’s global, multi-disciplinary team to assist companies navigating the complex statutory and regulatory constructs surrounding this evolving area, including product counseling and technology transactions related to connected and autonomous vehicles, internet connected devices, artificial intelligence, smart ecosystems, and other IoT products and services. Jennifer serves on the Board of Editors of The Journal of Robotics, Artificial Intelligence & Law.

Jennifer assists clients in developing and pursuing strategic business and policy objectives before the Federal Communications Commission (FCC) and Congress and through transactions and other business arrangements. She regularly advises clients on FCC regulatory matters and advocates frequently before the FCC. Jennifer has extensive experience negotiating content acquisition and distribution agreements for media and technology companies, including program distribution agreements, network affiliation and other program rights agreements, and agreements providing for the aggregation and distribution of content on over-the-top app-based platforms. She also assists investment clients in structuring, evaluating, and pursuing potential investments in media and technology companies.

Photo of Micaela McMurrough Micaela McMurrough

Micaela McMurrough serves as co-chair of Covington’s global and multi-disciplinary Technology Group, as co-chair of the Artificial Intelligence and Internet of Things (IoT) initiative. In her practice, she has represented clients in high-stakes antitrust, patent, trade secrets, contract, and securities litigation, and other…

Micaela McMurrough serves as co-chair of Covington’s global and multi-disciplinary Technology Group, as co-chair of the Artificial Intelligence and Internet of Things (IoT) initiative. In her practice, she has represented clients in high-stakes antitrust, patent, trade secrets, contract, and securities litigation, and other complex commercial litigation matters, and she regularly represents and advises domestic and international clients on cybersecurity and data privacy issues, including cybersecurity investigations and cyber incident response. Micaela has advised clients on data breaches and other network intrusions, conducted cybersecurity investigations, and advised clients regarding evolving cybersecurity regulations and cybersecurity norms in the context of international law.

In 2016, Micaela was selected as one of thirteen Madison Policy Forum Military-Business Cybersecurity Fellows. She regularly engages with government, military, and business leaders in the cybersecurity industry in an effort to develop national strategies for complex cyber issues and policy challenges. Micaela previously served as a United States Presidential Leadership Scholar, principally responsible for launching a program to familiarize federal judges with various aspects of the U.S. national security structure and national intelligence community.

Prior to her legal career, Micaela served in the Military Intelligence Branch of the United States Army. She served as Intelligence Officer of a 1,200-member maneuver unit conducting combat operations in Afghanistan and was awarded the Bronze Star.