Cybersecurity Lobby Surges as Congress Considers New Laws

From: Bloomberg

By Eric Engleman & Jonathan D. Salant

The determination by Congress and President Barack Obama’s administration to protect networks of critical U.S. industries from hackers and cyberspies is creating an explosive growth opportunity — for lobbyists.

There were 513 filings by consultants and companies to press Congress on cybersecurity by the end of 2012, up 85 percent from 2011 and almost three times as many as in 2010, according to U.S. Senate filings. Twelve firms have submitted new registrations this year on behalf of companies includingGoogle Inc. (GOOG)’s Motorola Mobility unit, Symantec Corp. (SYMC), United Parcel Service Inc. (UPS) and Ericsson Inc., the U.S. subsidiary of Stockholm-based Telefonaktiebolaget LM Ericsson.

“Cybersecurity is a lobbyist’s dream,” Rogan Kersh, provost at Wake Forest University in Winston-Salem, North Carolina, who researches political influence, said in an interview.

Washington’s plan to fight attacks had Raytheon Co. and Lockheed Martin Corp., which want to sell security products, lobbying on cyber bills and appropriations. Sectors targeted by hackers, such as banking and energy, have their trade groups pushing for liability protection for sharing threat information. Verizon Communications Inc. told lawmakers it wants “greater cybersecurity without technology mandates or prescriptive rules.”

Companies want to discuss issues including what kind of impact government-issued security practices will have on corporate supply chains, said Avivah Litan, Washington-based cybersecurity analyst at technology research firm Gartner Inc.

“This is going to be a titanic clash, and when that kind of industry power is aligned against each other, lobbyists start sharpening their knives and forks,” Kersh said.

Executive Order

The interest in influencing cybersecurity policy tracks more urgent warnings by the administration and Congress that more action is needed to stop Chinese online espionage and potential digital sabotage of vital infrastructure such as power grids.

Obama issued an executive order in February directing the government to develop voluntary cyber standards for privately-held assets considered critical to national security, and to increase sharing of cyber attack information with companies.

Companies “used to think they could ignore this issue or sweep it under the rug,” Mark Warner, a Virginia Democrat who sits on the Senate Commerce and Intelligence committees, both of which have considered cyber bills, said in an interview.

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