10 Radio Frequency Identification
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7544/07
+ ADD1
COM(07) 96
| Commission Communication: Radio Frequency Identification (RFID) in Europe: steps towards a policy framework
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| Legal base | — |
| Document originated | 15 March 2007
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| Deposited in Parliament | 21 March 2007
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| Department | Trade and Industry
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| Basis of consideration | EM of 16 April 2007
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| Previous Committee Report | None
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| To be discussed in Council | To be determined
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| Committee's assessment | Politically important
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| Committee's decision | Cleared; relevant to any debate on electronic communications networks and services
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Background
10.1 "The radio is 110 years old this year and the microprocessor
just under 50. As these two technologies move ever closer together,
with wireless capabilities now being put on computer chips, something
exciting is happening. All the benefits of the computing world
— innovation, short development cycles and low cost —
are being extended to wireless communication".[29]
One of the main driving forces is "Moore's Law" —
named after Robert Moore, a co-founder of the chip maker Intel,
who first noted that the processing power of chips doubles about
every two years.
10.2 Radio-frequency identification (RFID)
is a collective term
for technologies that allow the attachment of a unique identifier
and other information to an object using a microchip, which can
be read through a wireless device. It is an
automatic identification method, relying on storing and remotely
retrieving data using devices called RFID tags or transponders.
An RFID tag is an object that can be attached to or incorporated
into a product, animal, or person for the purpose of identification
using radio waves. Chip-based RFID tags contain silicon chips
and antennas. Current uses include passports, transport payments,
product tracking, the automotive industry, inventory systems,
human implants, animal identification and libraries.
The Commission Communication
10.3 This document sets out the conclusions of the
Commission's public consultation on Radio Frequency Identification
(RFID), the results of which are contained in the accompanying
Commission Staff Working Document — "The RFID Revolution:
Your voice on the Challenges, Opportunities and Threats".
The Communication proposes
steps to increase take-up of RFID to the benefit of society and
the economy, incorporating privacy, health and environmental safeguards.
It is fully and helpfully summarised by the Minister of State
for Industry and the Regions (Margaret Hodge) in her 16 April
2007 Explanatory Memorandum as follows:
Why RFID matters: the social contribution of RFID
"The Commission notes that RFID has the potential
to improve patient safety (through better patient identification,
automated medication conflict/allergy alerts); to reduce stock
shortages and to combat counterfeiting and theft. It can be used
to manage product recalls efficiently and could support sustainable
development through better recycling. RFID readers in mobile phones
(already available) could allow consumers access to better product
information and allow partially sighted consumers to listen to
product descriptions.
Industrial innovation and growth potential
"The Commission believes that wider use of RFID
could underpin the role of information and communication technologies
(ICT) as a driver for innovation and the economy. Europe is a
leader in RFID-related research and development, in both the underlying
electronics and the more innovative applications. European companies,
of all sizes, are active in RFID markets. The market in Europe
is growing at around 45% annually, somewhat less than the 60%
global growth rate.
The need for legal certainty for both users and
investors
"The Commission believes that a clear and predictable
legal and policy framework is required to make RFID more acceptable
to users across Europe as a whole. This framework, consistent
within the Internal Market, should address ethics, protection
of privacy and security, RFID database governance, radio spectrum
availability; harmonised international standards, health and environmental
aspects.
Public consultation
"The Commission conducted a public consultation
between July and September 2006. There were 2190 respondents (around
four times the usual level for this type of exercise). Over 1400
'interested citizens' responded. There were 942 responses from
Germany, 534 from France and 104 from Belgium. There were 102
responses from the UK. Around 80 responses were received from
non-European countries including the US, Japan, Korea, India and
China.
Data protection, privacy and security
"Privacy was the principal issue raised by respondents
to the Commission consultation, perhaps due to the high number
of responses from 'interested citizens'. 55% favoured RFID-specific
legislation. RFID data can become personal data. Some tags (e.g.
passports, smartcards) do hold personal data.
"The Commission notes the protection of personal
data including from RFID is already covered by the general Data
Protection Directive. The ePrivacy Directive applies to publicly
available electronic communications networks but is too narrowly
drawn to catch all RFID systems. Under those directives, Member
States have to ensure that RFID applications comply with relevant
data protection legislation. The Commission suggest it may be
necessary to provide detailed guidance on the practical implementation
of RFID and notes both directives foresee the drawing up of Codes
of Practice which can be reviewed at national level by competent
authorities (Office of the Information Commissioner in the UK)
and at European level by the 'Article 29 Working Party' (consisting
of national data protection authorities and the European Data
Protection Supervisor).
"The Commission notes the need to increase understanding
of security, especially threats to RFID systems. It envisages
the development of design principles (taking in organisational
and business processes) to guard against major disruption of deployed
RFID systems. The varying nature of RFID systems suggests a 'case
by case' approach with cost/benefit and risk analyses before system
selection and deployment.
"The Commission suggests that awareness and
information campaigns will be needed so that the public can form
balanced judgements on the use and risks of RFID.
Governance of resources in the future "Internet
of Things"
"The Commission notes the future potential of
the Internet to connect not just personal computers and communications
devices but also more day-to-day objects, such as clothes or consumer
goods. 86% of respondents expressed a preference that the systems
underpinning this "Internet of Things" should be interoperable,
open and non-discriminatory. It should be safeguarded against
interests that may use it for its own commercial, security or
political ends. The Commission believes public policy principles,
developed in the World Summit on the Information Society (WSIS),
are relevant.
Radio spectrum
"Unlicensed spectrum has been available for
RFID in most Member States and the Commission adopted a Decision
in November 2006 to harmonise RFID in the ultra high frequency
(UHF) band. Respondents believed that the current allocation would
be adequate for up to ten years. The Commission notes a need to
monitor demand as RFID use increases.
Standards
"The Commission notes that the streamlined adoption
of international standards is essential for an open market in
e-services. It refers to International Organisation for Standardisation
(ISO) work on RFID tags and readers. The consultation exercise
suggests an active stance for the Commission in ensuring European
influence in developing global RFID standards.
Environmental and health issues
"RFID meets the definition of electrical and
electronic equipment for purposes of the Waste Electrical and
Electronic Equipment (WEEE — although tags are exempt if
used as part of the packaging) and Restriction of the Use of Certain
Hazardous Substances (RoHS) Directives.
"The Communication outlines the Commission regime
for monitoring the health effects of electromagnetic fields (EMF).
It notes that RFID EMF are generally low and well below current
limits. Mindful of the increase in wireless devices generally
it suggests the Commission and/or Member State monitor the situation
and support research and review of the cumulative effects of EMF
exposure from different sources.
Actions at European level
"The Commission identifies the need for European
level activity on security and privacy, governance, radio spectrum
and standards. It will spend the next two years analysing options
and pursuing on-going activities in cooperation and dialogue with
stakeholders. It will establish a RFID Stakeholder Group for that
purpose. The Group will assist the Commission in raising awareness
of RFID at Member State and citizen level. The Commission will
strengthen contacts in the United States and Asia to promote global
interoperability.
RFID security and privacy
"The Commission will support the development
of codes of practice and good practice guidance, in line with
the strategy for a Secure Information Society (COM(2006)251).
It will also issue Recommendations to the Member States on the
data protection and privacy aspects of RFID by the end of 2007,
preparing these with the relevant authorities of the Member States
and taking account of the views of the Stakeholder Group it is
setting up and the Article 29 Working Party.
Radio spectrum
"The Commission may use the Radio Spectrum Decision
(676/2002/EC) to identify additional harmonised spectrum, if needed.
Research and innovation policy
"The Communication notes a number of areas of
research, including materials science and fabrication techniques,
needed to reduce the cost of commonly used RFID tags to below
one euro-cent each. This price point is seen as the gateway to
mass application. The need for additional research into devices,
cryptography, active networking, sensors and power management
is also highlighted.
"RFID features in a number of current 7th Framework
Programme challenges. In the future, the Commission will stimulate
research on techniques to enhance RFID security and privacy; encourage
large scale pilots, evaluation and dissemination activities.
Standardisation
"The Commission notes work done by the European
Committee for Standardisation (CEN), the European Telecommunications
Standards Institute (ETSI) and the ISO. It calls on European standardisation
bodies to ensure that international and European standards meet
European requirements and provide an appropriate framework for
the development of future RFID standards.
"The Commission will complement standardisation
activities though international dialogue with counterparts in
the US and Asia. This will determine the need for international
cooperation on standards in areas such as sea and air transport,
counterfeiting and pharmaceuticals.
Conclusion
"The Commission asks the European Parliament
and the Council to endorse the steps outlined in the Communication".
The Government's View
10.4 The Minister says that "The UK leads Europe
in the use of RFID, notably in public applications, and has already
rehearsed many of the arguments set out in the Communication",
and was "closely involved in helping the Commission determine
the direction of its RFID policies in discussions during the consultation
exercise". She continues as follows:
"The Government has supported R&D in RFID
for business applications in the logistics, supply chain and retail
sectors, new materials including polymers and the ICT systems
needed to handle the vast volumes of data generated under the
Next Wave Technologies and Markets programme in 2002. The crime
reduction benefits of RFID (anti-counterfeiting, theft prevention)
were convincingly demonstrated by the 'Chipping of Goods' programme
in 1999. The focus in the 7th Framework Programme, looking to
introduce RFID to other sectors, is welcome.
"The Government, working with relevant trade
associations, has been raising awareness of the business benefits
of RFID for the last decade. It continues to do so with a recently
established RFID Business Benefits Action Group that includes
representatives from industry, technology suppliers and standards
bodies and is chaired by the DTI. The Communication's proposal
for awareness and dissemination activities is welcome and in line
with the UK's approach.
"Consumers' concerns over privacy are recognised.
A stakeholder group drawn together under the National Consumer
Council in 2003 recognised that the public's attitude to RFID
is key to acceptance of the technology. The RFID Council, formed
after those discussions, published a Code of Practice in 2005.
"The Government discussed the nature of data
produced by RFID tags with the Office of the Information Commissioner
in 2005, determining that it is 'personal' data when associated
with information that identifies individuals. In those cases,
the terms of the Data Protection Act (DPA) apply. The need for
additional measures is not recognised currently, but developments
are kept under review. The work of the Article 29 Working Group
may be helpful.
"OfCOM made UHF spectrum available license free
for RFID purposes in 2006 in line with the CEN/ETSI harmonisation
recommendation. It continues to follow technology developments
and spectrum requirements.
"RFID standards are best developed within the
market. The Electronic Product Code appeared as a de facto standard
in retail logistics in 2005, promoted by the business led GS1
consortium. The EPC standard is converging with, and becoming
part of, the relevant ISO standards. The Government supports this
convergence. It believes standards need to be global and would
not like to see specific European ones developed".
10.5 The Minister says that interested groups were
encouraged to contribute to the Commission's consultation exercise,
and that the Department of Trade and Industry will approach the
Commission to ensure UK companies, trade associations and other
groups are represented on the proposed Stakeholder Forum.
10.6 No Regulatory Impact Assessment has been produced,
as the current proposals have no impact on the costs on UK business.
10.7 Nor are any new financial implications associated
with any of the actions proposed in the Communication: "The
costs of what the Commission proposes will be met from the 7th
Framework Programme for Research and Technological Development
(FP7) and from the Competitiveness and Innovation Programme (CIP)".
10.8 Finally, looking ahead, the Minister says that
the proposals have been circulated to the Council, the European
Parliament and the Economic and Social Committee; the German Presidency
is hosting a conference on RFID on 25th and 26th
June 2007; and there will be a further Communication in 2008.
Conclusions
10.9 We have no questions to put to the Minister,
but are reporting this Communication to the House because of the
importance of the subject, some wider, related aspects of which
we consider elsewhere in this Report.[30]
10.10 We now clear the Communication, which we
consider relevant to any debate on electronic communications networks
and services.
29 See "A World of Telecoms": a special report
on telecoms in the 28 April 2007 issue of "The Economist",
from which this quotation is taken. Back
30
See paragraphs 9 and 11 of this report. Back
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