    [Senate Hearing 114-638]
    [From the U.S. Government Publishing Office]

                                                           S. Hrg. 114-638

                          EXPLORING AUGMENTED REALITY

    =======================================================================

                                    HEARING

                                   BEFORE THE

                             COMMITTEE ON COMMERCE,
                          SCIENCE, AND TRANSPORTATION
                              UNITED STATES SENATE

                        ONE HUNDRED FOURTEENTH CONGRESS

                                 SECOND SESSION

                                   __________

                               NOVEMBER 16, 2016

                                   __________

        Printed for the use of the Committee on Commerce, Science, and
                                 Transportation

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           SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                        ONE HUNDRED FOURTEENTH CONGRESS

                                 SECOND SESSION

                       JOHN THUNE, South Dakota, Chairman
    ROGER F. WICKER, Mississippi         BILL NELSON, Florida, Ranking
    ROY BLUNT, Missouri                  MARIA CANTWELL, Washington
    MARCO RUBIO, Florida                 CLAIRE McCASKILL, Missouri
    KELLY AYOTTE, New Hampshire          AMY KLOBUCHAR, Minnesota
    TED CRUZ, Texas                      RICHARD BLUMENTHAL, Connecticut
    DEB FISCHER, Nebraska                BRIAN SCHATZ, Hawaii
    JERRY MORAN, Kansas                  EDWARD MARKEY, Massachusetts
    DAN SULLIVAN, Alaska                 CORY BOOKER, New Jersey
    RON JOHNSON, Wisconsin               TOM UDALL, New Mexico
    DEAN HELLER, Nevada                  JOE MANCHIN III, West Virginia
    CORY GARDNER, Colorado               GARY PETERS, Michigan
    STEVE DAINES, Montana
                           Nick Rossi, Staff Director
                     Adrian Arnakis, Deputy Staff Director
                        Jason Van Beek, General Counsel
                     Kim Lipsky, Democratic Staff Director
                  Chris Day, Democratic Deputy Staff Director
           Clint Odom, Democratic General Counsel and Policy Director

                                C O N T E N T S

                                  ----------
                                                                       Page
    Hearing held on November 16, 2016................................     1
    Statement of Senator Thune.......................................     1
    Statement of Senator Nelson......................................    58
        Prepared statement...........................................    58
    Statement of Senator Wicker......................................    61
    Statement of Senator Peters......................................    63
    Statement of Senator Daines......................................    65
    Statement of Senator Booker......................................    67
    Statement of Senator Blumenthal..................................    72

                                   Witnesses

    Brian Blau, Research Vice President, Gartner.....................     3
        Prepared statement...........................................     4
    Ryan Calo, Lane Powell and D. Wayne Gittinger Assistant
      Professor, University of Washington School of Law, and Faculty
      Co-Director, University of Washington Tech Policy Lab..........    26
        Prepared statement...........................................    27
    John Hanke, Founder and Chief Executive Officer, Niantic, Inc....    41
        Prepared statement...........................................    43
    Brian Mullins, Chief Executive Officer, DAQRI....................    47
        Prepared statement...........................................    49
    Stanley Pierre-Louis, Senior Vice President and General Counsel,
      Entertainment Software Association.............................    52
        Prepared statement...........................................    53

                                    Appendix

    Response to written questions submitted to Brian Blau by:
        Hon. Marco Rubio.............................................    75
        Hon. Joe Manchin.............................................    77
    Response to written questions submitted to Ryan Calo by:
        Hon. Marco Rubio.............................................    78
        Hon. Joe Manchin.............................................    79
    Response to written questions submitted to John Hanke by:
        Hon. Marco Rubio.............................................    80
        Hon. Joe Manchin.............................................    82
    Response to written questions submitted to Brian Mullins by:
        Hon. John Thune..............................................    82
        Hon. Marco Rubio.............................................    88
        Hon. Joe Manchin.............................................    97
    Response to written questions submitted to Stanley Pierre-Louis
      by:
        Hon. John Thune..............................................   100
        Hon. Marco Rubio.............................................   101
        Hon. Joe Manchin.............................................   106

                          EXPLORING AUGMENTED REALITY

                                  ----------

                          WEDNESDAY, NOVEMBER 16, 2016

                                           U.S. Senate,
            Committee on Commerce, Science, and Transportation,
                                                        Washington, DC.
        The Committee met, pursuant to notice, at 3:06 p.m. in room
    SR-253, Russell Senate Office Building, Hon. John Thune,
    Chairman of the Committee, presiding.
        Present: Senators Thune [presiding], Wicker, Fischer,
    Gardner, Daines, Nelson, Klobuchar, Blumenthal, Booker,
    Manchin, and Peters.

                 OPENING STATEMENT OF HON. JOHN THUNE,
                     U.S. SENATOR FROM SOUTH DAKOTA

        The Chairman. Good afternoon. This hearing will come to
    order. I want to thank everyone for coming today to discuss the
    exciting potential of augmented reality technology.
        This past Fourth of July weekend, many Americans began to
    notice an unusual phenomenon: more and more people--far more
    than usual--were going outside. Suddenly, sidewalks, parks, and
    local landmarks were packed with people wandering the great
    outdoors while burying their heads in their smartphones.
        These people, of course, were playing the smash hit mobile
    game, Pokemon GO. But by going out into the real world to find
    and capture digital creatures, they weren't just playing a
    game. They were getting their first exposure to the
    possibilities of augmented reality.
        Many of us have heard of, or experienced, virtual reality,
    which usually involves putting on a headset that covers users'
    eyes, surrounding them in an artificial world. However,
    augmented reality, or AR, is different. AR takes digital
    information and superimposes it onto the real, physical
    environment. Rather than closing the user off from the real
    world, AR adds virtual content on top of the real world.
        Pokemon GO accomplishes this by using a smartphone's camera
    to record the real world while the game displays digital
    characters over the image on the phone's screen. More advanced
    AR headsets, currently in development and in use by industry,
    have mixed reality capabilities that can map the user's
    surroundings in real time and allow virtual content to
    convincingly interact with the physical world.
        These more advanced AR devices and techniques show that the
    potential of this technology goes far beyond smartphone games
    and could one day have a major impact on manufacturing,
    transportation, medicine, and eventually the daily lives of
    average Americans. For example, imagine a worker in a factory
    whose job is to assemble an advanced jet engine for a new
    airliner. With an AR headset, that worker could see step-by-
    step instructions floating above his work station, with the
    exact spot he is supposed to weld being digitally highlighted.
        Or imagine a medical student who can train on a virtual 3D
    model created from scans of a real patient. Or an EMT in a
    rural area who can receive real-time instructions from a
    specialist in a hospital hundreds of miles away on how best to
    stabilize a patient while help is on the way. AR technology
    promises to take all of the information that has been confined
    to the Internet over the past few decades and integrate it into
    the physical world, where such content can be most useful and
    do the most good.
        Advanced manufacturing and other industries have already
    begun using AR for training new workers and have seen great
    improvements in safety and efficiency. We often hear about
    technology replacing workers, but AR provides an opportunity
    for technology to enhance workers instead, by helping them with
    their training and making them more productive.
        In previous hearings this committee has held on new and
    emerging technologies, such as the Internet of Things and
    Autonomous Vehicles, I stressed how important it is for the
    government to avoid jumping in too soon with a heavy-handed
    regulatory approach. AR is no different. While there are
    certainly important policy questions to consider, such as the
    privacy of user data recorded by AR devices, it is essential
    that policymakers not unnecessarily stifle innovation. Instead,
    we should foster an environment that maximizes the potential
    benefits of this promising new technology.
        There may be obstacles, regulatory or otherwise, to
    achieving the full potential of AR. Like a Pokemon trainer, the
    job of this committee is to ``catch them all.''
        Earlier today, the Committee had the great opportunity to
    see AR in action firsthand. DAQRI, Niantic, and the U.S. Army
    Edgewood Chemical Biological Center provided us with a great
    demonstration of the Smart Helmet and a heads-up display for
    automobiles, which gives drivers important information without
    having to take their eyes off the road; Pokemon GO and other
    Niantic apps; and military-focused applications of AR.
        Even though the only reality they could augment was the
    reality of the Russell Building, it was easy to see the
    potential of this new technology for a wide range of
    applications. I want to thank them for making their products
    available to us today.
        I look forward to hearing from all of our witnesses to
    learn more about their experiences with AR and their visions
    for the future of this promising new technology.
        I would say that we would recognize the Ranking Member,
    Senator Nelson, but I know he's on the floor, speaking, at the
    moment. So I think what we'll do when he arrives is give him an
    opportunity to make an opening statement, but proceed with the
    panel.
        I want to welcome all of our witnesses who are here today:
    Mr. Brian Blau is the Vice President of Research for Gartner, a
    technology research and advisory company. Mr. John Hanke is the
    Chief Executive Officer for Niantic, Incorporated, developer of
    Pokemon GO. Mr. Brian Mullins is the Co-Founder and Chief
    Executive Officer of DAQRI. Mr. Stanley Pierre-Louis is the
    General Counsel for the Entertainment Software Association, and
    Mr. Ryan Calo is an Assistant Professor of Law at the
    University of Washington.
        I want to thank you all for being here and for taking the
    time to share the things that are going on in your world with
    us. As I said, we find it very exciting, and seeing firsthand
    some of the things that you all are doing here just a few
    minutes ago was--it's really cool. So we're delighted to have
    you all here. If you could confine your remarks to 5 minutes or
    thereabouts, and then we'll open it up to a few questions.
        I'll start on my left and your right with Mr. Blau. So
    please proceed with your opening statement.

       STATEMENT OF BRIAN BLAU, RESEARCH VICE PRESIDENT, GARTNER

        Mr. Blau. Chairman Thune, Ranking Member Nelson, and the
    members of the Committee, thanks for inviting me to testify
    about augmented reality. I'm Brian Blau, Research Vice
    President at Gartner, the world's leading information
    technology market research company. I'm here today because my
    background in immersive technology spans 25 years, including in
    my current position where I advise technology providers, CIOs,
    businesses, and investors across many industries and
    geographies on aspects of designing, marketing, and using
    personal devices, apps, and services.
        Let me begin by saying that if immersive technologies--and
    by that I mean augmented reality, virtual reality, and mixed
    reality--are to achieve their potential, several important
    issues need to be understood. First, using AR to blend the real
    world and virtual world in a seamless way can have novel and
    beneficial implications across a myriad of industries. This
    nascent technology is about to achieve a critical milestone:
    practical and affordable viewing devices entering the market.
    Now is our unique opportunity to foster its innovation and
    growth.
        Second, the market for AR technologies might be small
    today, but interest, over the long term, remains high and the
    potential for growth is significant. Finally, for AR
    technologies to flourish, innovation needs to be supported and
    accelerated without undue restrictions. The result will be a
    plethora of new computing experiences that drive increased
    productivity across many industries; improved effectiveness of
    individuals in their work; and exciting new developments in the
    leisure, entertainment, and retail sectors.
        The 50-year plus history of computing can't be told without
    including the technology that addresses how humans, using their
    senses, interact with computers, each other, and the world.
    With AR technology, users will perceive the physical world in
    new, richer ways, ones that are visually augmented to whatever
    best suits the needs of its users.
        The technology brought before you today provides a prime
    example of American innovation, invention, and opportunity.
    Augmented reality, virtual reality, and mixed reality follow
    from a taxonomy of visual and sensory display types. AR devices
    are centered around a smart display, a transparent one, which
    can be worn on your head, maybe held in your hand, or even seen
    through a window.
        Business use cases are broad. In coming years, field
    service workers, those that maintain utilities, infrastructure,
    machines, and equipment, will benefit because their work is
    often hands-busy tasks. An AR headset can provide visual
    overlays of diagrams, complex instructions, event recording, or
    enabling ``see-what-I-see'' remote collaboration. Using AR can
    improve workforce productivity by removing time-wasting
    behaviors or improving the efficiency of tasks.
        The market for AR is mainly business today. We estimate the
    number of AR head-mounted displays sold in 2016 to be around
    several hundred thousand. We forecast that in 5 to 10 years,
    there will be hundreds of millions of head-mounted display
    devices in the hands of users, split between see-through
    transparent display devices and those that provide full
    immersion such as VR.
        There are technology vendors competing for this
    opportunity--Microsoft, Google, ODG, Epson, DAQRI, and many
    others. First generation devices are available now. Next
    generations will exceed these capabilities, and improvements
    over the coming years will solve and optimize many perceptual
    computing challenges.
        Not only will there be intense competition in hardware--the
    devices and the headsets--but there is also a great need for
    new core technologies as well as apps, services,
    infrastructure, and components, all of which need healthy
    digital ecosystems and business opportunities to flourish.
        When will consumer AR become common? It may not be far off,
    and it's possible it will come in many form factors, including
    handsets and headsets. Use cases for consumer AR are quite
    compelling because the visual overlay technology can show real-
    time and instant information when we look out into the physical
    world. Imagine turning your backyard into a video game, or
    going to a movie theater that is an individualized
    entertainment experience.
        For the market to grow, it's critical that you carefully
    consider any actions that would restrict or limit AR's
    innovation process. AR needs development and maturity in many
    areas and will for many years to come.
        A particular focus should be around usability, safety, and
    security. The requirements are higher here. AR is the
    experience, and it could falter if the technology is restricted
    in ways that don't allow for experimentation, invention,
    testing, and ultimately broad use in many aspects of the
    consumer and business markets.
        Thank you again for the opportunity to share our knowledge
    and guidance of this exciting application area and for the
    leaders of the U.S. Senate to take such a high level of
    interest.
        [The prepared statement of Mr. Blau follows:]

       Prepared Statement of Brian Blau, Research Vice President, Gartner
        Chairman Thune, Ranking Member Nelson, and the Members of the
    Committee:

        Thank you for inviting me to testify today about augmented reality.
        I'm Brian Blau, Research Vice President at Gartner, the world's
    leading information technology market research company. I'm here today
    because my background in immersive technology spans 25 years including
    in my current position where I advise technology providers, CIOs,
    businesses and investors across many industries and geographies on
    aspects of designing, marketing and using personal devices, apps and
    services.
        Let me begin by saying, if immersive technologies, and by that I
    mean, augmented reality, virtual reality, and mixed reality are to
    achieve their potential, several important issues need to be
    understood.
        First, using AR to blend the real world and virtual world in a
    seamless way can have novel and beneficial implications across a myriad
    of industries. This nascent technology is about to achieve a critical
    milestone--practical and affordable viewing devices entering the
    market. Now is our unique opportunity to foster its innovation and
    growth.
        Second, the market for AR technologies might be small today but
    interest, over the long term, remains high and the potential for growth
    is significant.
        Finally, for AR technology to flourish, innovation needs to be
    supported and accelerated without undue restrictions.
        The result will be a plethora of new computing experiences that
    drive increased productivity across many industries, improved
    effectiveness of individuals in their work, and exciting new
    developments in the leisure, entertainment and retail sectors.
        The 50-year plus history of computing can't be told without
    including the technology that addresses how humans, using their senses,
    interact with computers, each other and the world. With AR technology,
    users will perceive the physical world in new, richer ways, ones that
    are visually augmented to whatever best suits the needs of its users.
        The technologies brought before you today provide a prime example
    of American invention, innovation and opportunity. Augmented reality,
    virtual reality and mixed reality, follow from a taxonomy of visual and
    sensory display types. AR devices are centered around a transparent
    smart display; which can be worn on your head, held in your hand, or
    seen through a wall.
        Business use cases are broad. In coming years, field service
    workers, those that maintain utilities, infrastructure, machines, and
    equipment, will benefit because their work is often ``hands-busy''
    tasks. An AR headset can provide visual overlays of diagrams, complex
    instructions, event recording, or enable ``see-what-I-see'' remote
    collaboration. Using AR can improve workforce productivity by removing
    time-wasting behaviors, or improving the efficiency of tasks.
        The market for AR is mainly business today. We estimate the number
    of AR HMDs (head-mounted display headset) sold in 2016 to be around
    several hundred thousands. We forecast that in 5 to 10 years there will
    be hundreds of millions of HMD devices in the hands of users; split
    between see-through transparent display devices and those that provide
    full immersion such as VR. There are many technology vendors competing
    for this opportunity, Microsoft, Google, ODG, Epson, DAQRI and many
    others. First generation devices are available now. Next generations
    will exceed these capabilities, and improvements over the coming years
    will solve and optimize many perceptual computing challenges.
        Not only will there be intense competition in hardware--the devices
    and headsets--but there is also a great need for new core technologies
    as well as apps, services, infrastructure, and components; all of which
    need healthy digital ecosystems and business opportunities to flourish.
        When will consumer AR become common? It may not be far off, and
    it's possible it will come in many form factors including handsets and
    headsets. Use cases for consumer AR are quite compelling because the
    visual overlay technology can show realtime and instant information
    when we look out into the physical world. Imagine turning your backyard
    into a video game, or going to a movie theater that is an
    individualized entertainment experience.
        For the market to grow it's critical that you carefully consider
    any actions that would restrict or limiting AR's innovation process. AR
    needs development and maturity in many areas and will for many years to
    come. A particular focus should be around usability, safety and
    security. The requirements are higher here; AR -is- the experience and
    it could falter if the technology is restricted in ways that don't
    allow for experimentation, invention, testing, and ultimately broad use
    in many aspects of the consumer and business markets.
        Thank you again for the opportunity to share our knowledge and
    guidance on this exciting application of technology, and for the
    leadership of the U.S. Senate to take such a high level of interest.
                                   Attachment
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

                                     ______

        The Chairman. Thank you, Mr. Blau.
        And I apologize for mispronouncing Mr. Calo's name.
        Mr. Calo, please proceed.
        That's what I get for not wearing my glasses.
        Mr. Calo. No worries.

            STATEMENT OF RYAN CALO, LANE POWELL AND D. WAYNE

              GITTINGER ASSISTANT PROFESSOR, UNIVERSITY OF

     WASHINGTON SCHOOL OF LAW, AND FACULTY CO-DIRECTOR, UNIVERSITY
                     OF WASHINGTON TECH POLICY LAB

        Mr. Calo. Chairman Thune, Ranking Member Nelson, and
    members of the Committee, thank you very much for this
    opportunity to discuss the promise and the perils of augmented
    reality.
        Augmented reality, of course, has many positive
    applications, from training tomorrow's workforce to empowering
    people with disabilities. But the technology also raises novel
    concerns that companies and policymakers must address if
    augmented reality is to be widely adopted and positively affect
    American society.
        The University of Washington Tech Policy Lab, which I co-
    direct, is a unique interdisciplinary research unit at the
    University of Washington that aims to help policymakers develop
    wise and inclusive technology policy. We have studied augmented
    reality and its impact on diverse populations and discuss our
    findings in detail in a white paper entitled Augmented Reality:
    A Technology and Policy Primer, which we made available to the
    Committee.
        Our research suggests that augmented reality raises a
    variety of questions of law and policy, including around free
    speech, privacy, and potentially novel forms of discrimination
    and distraction. So just to give a couple of examples, will the
    constant recording of one's environment give hackers,
    companies, and government unparalleled access to the bedroom,
    the boardroom, and private spaces? Could the superimposition of
    information over reality render AR users, in some instances,
    vulnerable or unsafe? And are there situations, like job
    interviews, where knowing everything about an individual in
    real time could result in discrimination or subject the AR user
    to legal liability?
        So having studied this area, we developed essentially five
    recommendations that are very broad in nature, and I wanted to
    go over them in my remaining time, if I may.
        The first is that we should recognize that augmented
    reality is actually advancing quite rapidly, right? And so law
    and policy, in order to stay relevant, should not assume a
    fixed instantiation of augmented reality over time. I mean, I
    can point to many examples where we've passed measures that
    assumed technology would stay a certain way, but it changed and
    those measures became outdated.
        The second is to conduct threat modeling. Threat modeling
    is a computer science idea that has to do with anticipating
    what adversaries will do with these systems. So we think that a
    careful and thorough model of seeking who might want to
    compromise AR systems without preconceptions--such as no one
    would ever do that--is crucial. And it's especially crucial in
    instances like these, where a compromised system could actually
    cause physical harm to users.
        We think it's important to coordinate with designers.
    Ultimately, technologists need to be aware of the values that
    society holds and that policymakers hold, and policymakers, in
    turn, need an accurate mental model of the technology in order
    to make wise decisions. So this hearing, for example, is a
    great example of the dialog between the designers and the
    manufacturers and policymakers.
        We think it's extremely important to consult with diverse
    stakeholders. People will experience AR quite differently,
    depending on their characteristics, their experiences, and
    their capabilities. So take children, for example. Children
    will experience augmented reality quite differently. People who
    are incarcerated and so forth will experience it quite
    differently. It creates opportunities and dangers, depending on
    the individual.
        And then, finally, we expect that policymakers and
    designers will acknowledge the potential tradeoffs. For
    example, the long-term information storage in cloud processing
    and other advanced data processes may ultimately result in
    faster performance or more complex functionality, but then
    potentially at a cost of privacy. So perfection can be the
    enemy of the good. But, ultimately, it's crucial to understand
    that the architectural decisions that are made, the design
    decisions, have these kinds of policy implications.
        With that, thank you again for the opportunity to testify,
    and I'm happy to hear your questions.
        [The prepared statement of Mr. Calo follows:]

      Prepared Statement of Ryan Calo, Lane Powell and D. Wayne Gittinger
        Assistant Professor University of Washington School of Law, and
         Faculty Co-Director, University of Washington Tech Policy Lab
        Chairman Thune, Ranking Member Nelson, and Members of the
    Committee, thank you for the opportunity to discuss the promise and
    perils of augmented reality.
        Augmented reality (AR) refers to a mobile or embedded technology
    that senses, processes, and outputs data in real time, recognizes and
    tracks real-world objects, and provides contextual information by
    supplementing--or in some cases, replacing--human senses. AR differs
    from so-called virtual reality in that AR users continue to experience
    most of their physical environment. AR has many positive applications,
    from training tomorrow's workforce, to empowering people with
    disabilities. But the technology also raises novel or acute policy
    concerns that companies and policymakers must address if AR is to be
    widely adopted and positively affect American society.
        The UW Tech Policy Lab is a unique, interdisciplinary research unit
    at the University of Washington that aims to help policymakers develop
    wise and inclusive technology policy. We have studied AR and its impact
    on diverse populations and discuss our findings in detail in the
    appended white paper Augmented Reality: A Technology and Policy Primer.
        Our research suggests that AR raises a variety of question of law
    and policy, including around privacy, free speech, and novel forms of
    distraction and discrimination. For example: Will the constant
    recording of a user's environment give hackers, companies, and
    government unparalleled access to the bedroom, the boardroom, and other
    private spaces? Could the superimposition of information over reality
    render the AR user vulnerable or unsafe? And are there situations--such
    as job interviews--where knowing everything about an individual could
    result in discrimination or subject the AR user to legal liability?
    Industry must design AR products with these and many other questions in
    mind.
        Thank you again for the interest in our research and the
    opportunity to appear before the Committee. I look forward to your
    questions.
                                   Attachment
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        The Chairman. Thank you, Mr. Calo.
        Mr. Hanke?

     STATEMENT OF JOHN HANKE, FOUNDER AND CHIEF EXECUTIVE OFFICER,
                             NIANTIC, INC.

        Mr. Hanke. Mr. Chairman, Ranking Member Nelson, and members
    of the Committee, my name is John Hanke. I'm the Founder and
    Chief Executive Officer of Niantic, Inc., a mobile gaming
    company headquartered in San Francisco, California. On behalf
    of the 75 dedicated and innovative professionals at Niantic, it
    is an honor to be here before you today to talk about augmented
    reality, or AR, something we're very excited about.
        We launched Pokemon GO this last summer, and I want to talk
    about that in more detail. But before we discuss Pokemon GO, I
    want to just talk a little bit about the things that led up to
    the development and launch of that product.
        Prior to that, I spent about 7 years at Google heading up
    our maps and geo-location efforts. So this included the
    development and launch of products like Google Earth, Google
    Maps, Street View, and so on. During that time period, the
    iPhone was created and launched, Android was created and
    launched, and we began to think about ways to use that geo-
    location and mapping technology for new kinds of products. At
    the same time, we were anticipating the development of
    augmented reality hardware. We see it as an evolution from the
    cell phones that exist today to wearable computing to the kinds
    of glasses and devices that you saw demonstrated earlier today.
        Our philosophy is to go out and build products for the
    billions of cell phones that exist today and then to gradually
    adopt these new forms of augmented reality hardware as they
    enter the marketplace. We conceived of a group to go out and
    pursue that opportunity called Niantic, and we really had three
    goals for that group.
        The first goal was to create applications using this new
    mobile geo-location AR tech to get people outside and moving
    around. This was a very personal thing for me, as a father of
    three, at the time my eldest son was still at home. He just
    left for college. But he was spending a lot of time playing
    Minecraft. I love Minecraft. It's an amazing application. But,
    you know, we live in California. It's nice outside. There are
    lots of interesting places to go, and I wanted to create an app
    that would have the same kind of draw for him in terms of those
    compelling qualities but to be used outside, and it would be
    something that kids and parents could do outside. So we had
    this goal of encouraging kids and people to go outside.
        The second goal was exploration and discovery of
    information about the places that we live. I'm kind of a
    history buff, and so we had this idea that if we could surface
    historical information about your community or places that you
    visit that it would help people build a connection with the
    town that they live in. It would be informative for kids and
    would just generally be a good thing. So that kind of
    exploration was the second kind of key tenet of our group.
        The third was about encouraging real social interaction
    between people. So we hear a lot about social today, but it's
    usually in the context of social media, which means sending a
    message or a photo to somebody online. With mobile technology,
    we see a huge opportunity to build applications that actually
    encourage people to go outside together and have fun in groups
    and have face-to-face real human social interaction. So
    encouraging that type of behavior was the third major goal for
    the group.
        We launched a couple of applications before Pokemon GO, an
    app called ``Field Trip,'' which I showed some of you earlier
    today, which focuses on historical information. We launched a
    game called ``Ingress,'' which has now been downloaded 20
    million times around the world. It's kind of our cult hit. And
    then this last summer, we launched Pokemon GO.
        So we are 75 people. We worked really hard on that product.
    We felt like it would be successful. But I have to say that we
    were pretty overwhelmed and shocked by the reception that it
    met during this last summer. It was an incredible 2 months for
    us of just watching that unfold, and it was incredibly
    gratifying to see people enjoying the product that we built, to
    see people out in parks in California and New York, Michigan,
    Florida, everywhere in between, and parents and kids playing
    together. We heard all kinds of positive stories from people
    about how the app helped get them outside and helped them have
    fun together with their friends.
        It was an intense amount of work for us to keep that
    product up and running, just to add the number of servers that
    we needed to keep the product functioning, and to deal with the
    fact that, in this day and age, even though we're a 75-person
    startup, we had an international product to deal with, which
    means that we had to deal with interfacing not only with
    policymakers here in Washington and city governments and mayors
    across the United States, but with your equivalents in
    countries around the world.
        So for a small startup company, that's pretty overwhelming.
    You know, we're trying to understand policy. We're trying to
    understand how to communicate with people literally in dozens
    of countries around the world. So we've been working through
    that over the course of the past two months.
        I think because of the kind of frenzy around Pokemon GO,
    there are a lot of issues that came up that are related to
    policy, and I'm happy to have a chance to discuss some of those
    with you today. There are some things that I think we do really
    well that I want to talk about, some misunderstandings, and
    some challenges.
        In terms of things that we do really well, COPPA and COPPA
    compliance is something that I think we are best in industry.
    We went out with a fully COPPA compliant login process. That
    means if you are 13 or under, you have to get parental consent
    to create an account to play the game, and we worked with our
    partners at the Pokemon Company in order to create that, and
    we're very proud of that work. As I mentioned, many of us in
    Niantic are parents, and protecting our children is very
    important to us.
        A misconception has to do with data, and you heard it
    mentioned earlier today. There are people who look at augmented
    reality and assume that vast amounts of data are being vacuumed
    up and stored. It's been our policy to collect only the minimum
    amount of data that is necessary to operate our game.
        So whenever you see Pokemon GO--and we demonstrated it
    earlier today--there's a camera view. You can see the
    background. You see the Pokemon hopping around. There are some
    people that have said, ``Oh, we're collecting all that imagery
    data,'' so if there's a person in the background or something
    in the background, that's all being retrieved and stored on
    Niantic servers. That's not the case. None of that stuff is
    transmitted to us.
        People have said that we're collecting vast amounts of
    personally identifiable information or to sell that to
    advertisers. That's not the case. Our business is about an app
    purchase. It's a very successful business model for us. It does
    not incentivize us to try to collect the kinds of personal
    identifiable information that other people are trying to
    collect. So we collect the minimum amount that we need to
    operate the game, and we do not sell that or provide that to
    third parties.
        An area where we've met some challenges is in the area of
    what I would generally classify as hacking, and that word means
    a lot of things to different people. But we've had many
    individuals and groups around the world try to access our
    servers, to try to steal our intellectual property, to
    basically try to build applications that inappropriately pull
    data from our servers, allow people to cheat in the
    application, and do things that are harmful to our business,
    and we often feel like we're out there alone in trying to fend
    off these attacks.
        It is kind of a Wild West situation. It doesn't always feel
    like there's a sheriff out there to help out, and it's a big
    challenge for us. It consumes a lot of our resources, and for
    small startups out there that are trying to launch applications
    into this environment, it's a very difficult challenge, and
    it's an area where, frankly, I think more help would be
    welcome.
        So we're very excited about AR. I think it's the next major
    transition in technology from the cell phone to AR. That means
    it is not a billion dollar opportunity. It is a hundreds of
    billions of dollars opportunity. It's a great opportunity for
    American companies and for startups.
        So thank you again, Mr. Chairman and Senator Nelson. I'm
    happy to be here to talk to you and to answer your questions.
        [The prepared statement of Mr. Hanke follows:]

    Prepared Statement of John Hanke, Founder and Chief Executive Officer,
                                 Niantic, Inc.
    Introduction
        Mr. Chairman, Ranking Member Nelson, and members of the Committee,
    my name is John Hanke, and I am the founder and Chief Executive Officer
    of Niantic, Inc., a mobile gaming company headquartered in San
    Francisco, California. On behalf of the 75 dedicated and innovative
    professionals at Niantic, it is an honor to be here before you today to
    talk about augmented reality, or ``AR,'' and specifically, the current
    state of AR technology, where it's going, and what lessons we have
    learned that would be of interest to you as policymakers.
        We understand today's hearing may in part be due to the
    extraordinary global response to Niantic's latest mobile app, Pokemon
    GO. We are particularly proud that this game has helped to turn the
    world's attention to the current reality and enormous potential of AR
    for entertainment, education, and community-building.
        With that said, I know I speak for all of my colleagues at Niantic
    when I say that what we experienced following the game's launch in July
    far exceeded our own imaginations. As we rolled out the game, the
    immediate reception was almost surreal. My wife e-mailed to tell me
    that Jimmy Fallon and Stephen Colbert are talking about Pokemon GO.
    Professional athletes and celebrities began tweeting pictures from the
    app of themselves with Pokemon. Thousands signed up for a Pokemon walk
    on the National Mall here in Washington, and a similar walk in San
    Francisco. How this game insinuated itself into everyday conversation
    and pop culture in and outside the United States sparked even greater
    interest and usage.
        Since July, the app has been downloaded over 600 million times, and
    is enjoyed by users in more than 100 countries. And it's just been a
    little more than four months.
        With the unanticipated popularity of the game, we had a couple of
    outages as we scaled up, and of course, hacking was a constant and
    costly nuisance. With help from our former colleagues at Google, we
    quickly arranged for server expansions to keep up with demand. We also
    made critical adjustments to deal with hacking.
        Since early October, things have settled into a more manageable
    pace. After the initial sprint, our team was exhausted, but elated.
    It's been rewarding for all of us to see people young and old enjoy
    something that we worked so hard to create. We've heard and continue to
    hear stories about people getting outside, spending time with their
    friends and family, meeting new people and discovering new places in
    their communities. These stories speak directly to our core mission
    with augmented reality--to use technology to get people off their
    couches and outside to appreciate the wonder of the world around us.
    Augmented Reality and Niantic: The Hidden Story of How We Got Here
        Niantic is focused on using existing mobile technology to augment
    what we see outside before our very eyes. It's important to clarify
    what we mean when we talk about AR. The term ``augmented reality'' was
    first coined by a researcher at Boeing in 1990 to describe a system
    that overlaid graphics onto a display of physical reality. The primary
    early adopters of this technology in the 1990s were in military and
    medicine. By 2002, an article in Popular Science called augmented
    reality the ``killer app in portable computing,'' but back then, to
    recreate what you can now see today through your smartphone required
    twenty-six pounds of off-the-shelf equipment strapped to your back.
        It's often said here in Washington that public policy struggles to
    keep pace with innovation, but when I imagine someone in 2002 walking
    with a heavy backpack of first generation augmented reality gear, it
    reminds me of a simple truth we have in Silicon Valley: Innovation
    struggles to keep up with our own imagination.
        As I look at my own experiences with technology, I've sought to
    bring innovation a little closer to my own imagination. There are a
    number of critical developments in telecommunications and information
    technology, from improved processing power to wireless broadband, that
    helped bring augmented reality to everyday consumers, but two critical
    factors for me in particular were maps and games.
        As I was growing up in Cross Plains, a small town in central Texas,
    I'd read National Geographic and pull the maps out. So it's no surprise
    that I would later combine my fascination with programming with my love
    of maps. In 2000, I was part of a team that started a company called
    Keyhole, which was later acquired by Google and became the foundation
    for Google Earth. At Google, I also led the team that launched Google
    Maps, and other ``Geo'' products and services.
        It was great to be at Google and channel my map and travel-inspired
    imagination from my boyhood to the innovations I was creating as an
    adult. And it led to the creation of ``Field Trip,'' the first
    smartphone app we created at Niantic. Field Trip uses Global
    Positioning System technology and a database of information about
    places to deliver cards containing interesting information about a
    user's immediate surroundings as she walks through the world. The app
    automatically surfaces these bits of educational and historical
    information, including local history, interesting landmarks, and works
    of art and architecture as a user moves through the world.
        If we were walking by the Transamerica Building in San Francisco,
    for example, and passed a historical marker affixed to the building,
    Field Trip would show a card with the origin of our company name: the
    whaling ship, Niantic. This ship brought fortune-seekers to Yerba
    Buena--later renamed San Francisco--during the California Gold Rush in
    1849. Run aground in the harbor and abandoned by its crew, the Niantic
    was converted into a storeship and hotel that would repeatedly catch
    fire and be rebuilt. Today's San Francisco Financial District is where
    the Niantic first ran aground, and remnants of the ship were excavated
    at the foot of the Transamerica Building in 1978. The Niantic serves as
    a wonderful metaphor for the types of hidden stories surfaced through
    our products: The knowledge exists--it just may not be always available
    to us.
        In addition to maps, I've always enjoyed games, and like so many of
    my generation, writing code for games on cassette tapes that could be
    read by a TRS-80 eight-bit computer was a wonderful introduction to
    computer programming. And even before I started Keyhole, I worked on
    several of the first commercially available, Internet-based massively
    multiplayer online games.
        So it seems both logical and linear that my dual passions for
    mapping and multiplayer gaming would result in Niantic's second mobile
    app and first augmented reality game, Ingress. With Ingress, by
    building a game on top of the map data from Google Maps, we could
    combine gaming, walking, and exploring. An added motivation for me in
    developing Ingress and the Niantic platform was to help solve a common
    modern parenting issue with screen time. My oldest son, twelve at the
    time, shares my love of games. I knew that games got me into
    programming and I didn't want to take that away from him, but I also
    wanted him to get out from in front of a game console and see the world
    around him.
        We launched Ingress in November 2012, and today, the Ingress
    community is amazing, and continues to grow as we approach our four-
    year anniversary, with more than one million active players in 4,000
    communities worldwide. In fact, when Pokemon GO launched in the United
    States, I was in Japan for an Ingress event, and it was our largest
    event ever, with more than 10,000 users.
    The Lure, Lore, and Logistics of Pokemon GO
        The popularity of Ingress among the gaming community, particularly
    in Japan, gave rise to the notion of combining the long-cherished
    Pokemon franchise with maps and AR technology.
        If you think about the lore of Pokemon, you can understand why it
    worked well in an AR context. As depicted in the animated series, the
    player (called a ``Trainer'') goes out into the world searching for and
    capturing Pokemon. Through your device--your phone today and perhaps
    some kind of glasses or other devices in the future--you become the
    Trainer and can see this fantastical world of Pokemon overlaid on the
    real world. Pokemon GO is exactly what's depicted in the story of
    Pokemon, and a great example of bringing our innovations a little
    closer to our imaginations.
        Much has been written and discussed about the PokeStops and Gyms
    you see in Pokemon GO, and it's worth sharing briefly how we decided
    their locations, which go back to the origins of Niantic Labs and the
    evolution and development of our earlier products. Many of the
    historical markers and other local landmarks from our first app, Field
    Trip, became significant game locations (``portals'') in Ingress. While
    further developing Ingress, we thought about how to expand this set of
    interesting places that are public, visually recognizable, and
    appropriate places for people to visit. We asked Ingress players to
    submit their ideas for local landmarks they thought would be great
    additions to the game; millions of places were suggested, and a subset
    of those submissions (such as the Children's Museum in Brookings, South
    Dakota and the Kennedy Space Center Visitor Complex in Florida) was
    added to the existing set of points of interest to populate Pokestops
    and Gyms in Pokemon GO.
    Lessons Learned Along the Way
        As with any new technology, the use of AR for gaming applications
    like Ingress and Pokemon GO has sparked many questions that have public
    policy implications here in the United States and globally. I look
    forward to answering your questions shortly, but let me highlight a few
    key areas:

            Children's Online Privacy: Teen and adult players are the
            primary intended player base for Pokemon GO, but we recognize
            that the game will be of interest to some children under the
            age of 13 who have access to a smartphone. For this reason, we
            created a verifiable parental consent mechanism to comply with
            the Children's Online Privacy Protection Act (``COPPA'').
            Consistent with the requirements of COPPA, potential new users
            are asked to enter their birthdate in an age screen prior to
            signing up for the game. Potential players who enter a
            birthdate under age 13 are directed to the Pokemon Trainer
            Club, operated by The Pokemon Company International, and their
            parent is provided an e-mail notice that they are interested in
            getting access to play Pokemon GO. A parent of an under-13 can
            work through the steps of the Pokemon Trainer Club to (1)
            create an online account; (2) provide certain forms of
            information to verify their identity; and (3) accept our Terms
            of Service and Privacy Policy.

            The Pokemon Company International collects certain information
            from parents (such as name, date of birth, and certain
            information, such as a Social Security number) to obtain
            verified consent as required by COPPA. It does not share this
            information with Niantic. Additionally, parents have the option
            to provide certain personal information, such as their child's
            name, to The Pokemon Company International as part of the
            account sign up process; Niantic does not obtain this
            information.

            A parent can always notify us to exercise their right to refuse
            collection, use, and/or disclosure of their child's personal
            information. And if we learn that an under-13 account was
            created without parental consent, that account and all other
            personal information collected in conjunction with that account
            will be deleted.

            Data Integrity: Let me say up front that Niantic does not and
            has no plans to sell Pokemon GO user data--aggregated, de-
            identified or otherwise--to any third party.

            Pokemon GO does collect and store certain information that
            interacts with various settings on the user's mobile device to
            provide core game functionality and improve Niantic's services.
            For example, the app collects and stores certain location
            information in order to show the Trainer on the map, and to
            trigger the resources, such as Pokemon, Pokestops and Gyms that
            appear in her area. If a Trainer chooses to play with ``AR''
            mode turned on, the app accesses the camera viewer in order to
            display the Pokemon ``in real life'' as you may have seen
            during the demonstration prior to the hearing. As you would
            expect, this information about the user's performance and
            activity is stored in connection with a user's account. The app
            also collects certain information to improve our services, and
            to facilitate important quality and stability objectives. For
            example, Niantic collects network provider information to allow
            for better quality geo-location.

            The app collects information when it is open; there is no
            background collection of data in normal play mode. When the
            application is open, it disables the mobile device setting that
            automatically puts the phone to sleep when there has been no
            interaction by the user for a certain period of time. This is a
            key feature needed for Pokemon collection activities while a
            Trainer is moving around. When the user puts the phone to sleep
            manually, however (such as through pressing the power button),
            Pokemon GO goes idle.\1\
    ---------------------------------------------------------------------------
        \1\ A user may operate Pokemon GO in background mode if she has
    paired it with the Pokemon GO Plus wristband peripheral device made
    available by Nintendo. More information about that device is available
    here: http://www.pokemongo.com/es-es/pokemon-go-plus/. When the user
    starts Pokemon GO using the device, she can play even when the app is
    running in the background, and it collects data in the same fashion as
    during normal game play.

            User Safety and Intellectual Property: As I noted earlier,
            since the app was launched, Pokemon GO has been a target of
            numerous hacking efforts, including distributed denial of
            service attacks, unlawful data collection from our services,
            and monetization through the use of botnets and other devices.
            We are concerned about these apps and services because in many
            cases they put our users at risk, and also because of the
    ---------------------------------------------------------------------------
            misuse of our intellectual property.

            For example, a backdoored version of the game was found on a
            file repository service not long after the game was launched.
            Attackers also sought to lure potential Pokemon users to
            malicious sites that mimicked our own site, claiming users
            would be given additional features if they referred friends to
            the site, which led to more spamming. We've also seen strains
            of malware masquerading as Pokemon GO-related apps.

        In these cases, as in others, working internally and with our
    licensors and partners, we've been able to take certain malicious apps
    and sites down, but these challenges raise important questions about
    what technical and legal resources we have to combat efforts to misuse
    if not malign our intellectual property. It certainly underscores the
    need for review of existing laws to allow innovators to protect their
    intellectual property and systems from unauthorized use, particularly
    where the safety and security of users is at stake.
    Conclusion: Where Will Augmented Reality Take Us?
        Mr. Chairman, the most often asked question I now get can be
    expressed in two words: What's next? For us at Niantic, we're working
    on new sets of features for both Ingress and Pokemon GO, and planning
    for future titles. We enjoyed releasing some fun elements of gameplay
    for Pokemon GO tied to the Halloween weekend, and we look forward to
    additional releases to further enhance the game experience.
        For the broader industry, tech leaders ranging from Apple's Tim
    Cook to Microsoft's Satya Nadella share my view that the potential of
    augmented reality far surpasses virtual reality. Indeed, we are already
    seeing the growth of new and interesting applications utilizing AR. An
    AR application (Pocket Patrol) is being piloted in Queensland,
    Australia to provide safety instruction to beach-goers. AR is already
    an education game-changer, with applications to help students learn
    anatomy, chemistry, math, and art. For example, the British Museum
    offers an AR scavenger hunt for kids to collect words and digital
    objects to solve puzzles as they scan specific exhibition objects with
    a mobile device. The Smithsonian Museum of Natural History here in
    Washington has a mobile app that overlays skin onto dinosaur skeletons
    when kids hold a mobile device over the bones.
        AR is also increasingly becoming an important life-saving and -
    enhancing tool for public safety and first responders, and will be of
    even greater use as a dedicated mobile broadband network is built for
    the public safety and first responder communities.
        For us at Niantic, seeing how the public has responded to Field
    Trip, Ingress and Pokemon GO inspires us to move forward to create and
    innovate, so we can continue to chase our imaginations. Similarly, it
    remains important for policy leaders like yourselves to have public
    policy keep pace with innovation. Properly utilized, public policy can
    play a central role in driving innovation as it has in Silicon Valley
    for the past forty years through government-led research and
    development in fields such as semiconductors, aerospace, and the
    Internet.
        Think of it, a mere 14 years ago, a mobile, augmented reality
    program required twenty-six pounds of equipment. Today, we can make it
    work with a smartphone that weighs a little less than half a pound. We
    at Niantic look forward to what the next fourteen years will bring to
    this amazing technology.
        Thank you, again, Mr. Chairman and Senator Nelson, and I look
    forward to answering your questions, and more important, working with
    you to advance public policies that will further advance augmented
    reality.

        The Chairman. Thank you, Mr. Hanke.
        Mr. Mullins?

       STATEMENT OF BRIAN MULLINS, CHIEF EXECUTIVE OFFICER, DAQRI

        Mr. Mullins. Chairman Thune, Ranking Member Nelson, and
    members of the Committee, thank you for the opportunity to
    speak to you on this important topic. My name is Brian Mullins.
    I'm the founder and CEO of DAQRI, a Los Angeles-based
    technology company focused on empowering people with augmented
    reality. In these brief remarks, I'll discuss the power of AR,
    how it is being applied today, and why it represents a shift in
    technology so significant as to rival that of the Internet
    itself.
        I first started working with the technologies that would
    become AR after graduating from the U.S. Merchant Marine
    Academy in 1997 and working at the Department of Transportation
    and later at the Space and Naval Warfare Systems Command. When
    I left the government sector and moved into the field of
    industrial automation and robotics, I learned firsthand how
    technology could dramatically increase workplace efficiency,
    but was dismayed to see workers left behind as factory floors
    were transformed. We needed to leverage technology not just to
    optimize factories, but also to empower the human beings that
    ran them.
        This year, much attention has been focused on AR in the
    entertainment sector. But behind the scenes, less covered by
    the media, practical and valuable applications of augmented
    reality that will positively influence American lives are
    already gaining momentum in other fields. Industry leaders,
    such as General Electric, Boeing, Intel, Huntington Ingalls,
    and countless others, are applying augmented reality in
    training, maintenance, quality control, remote expert
    assistance, construction, defense, and manufacturing
    applications, just to name a few.
        Imagine a worker who wants to transition to a new
    manufacturing facility but lacks formal training for a highly
    skilled manufacturing role. With AR, they can learn and execute
    complex tasks, improve productivity, and quickly gain skills
    and knowledge even in new environments. On the first day at a
    new factory, AR can show step-by-step instructions on top of
    the disassembled wing of an aircraft, showing a worker visually
    how things need to be put together.
        This is no longer just a hypothetical scenario. AR
    technology is already being used to close the skill gap in the
    workforce, the benefits of which are now supported by industry
    and academic studies. In 2015, Boeing and Iowa State University
    published a study comparing the efficacy of traditional work
    instructions with augmented reality work instructions for
    aircraft wingtip assembly. While I would refer you to my
    written testimony and the study itself for specific details,
    the researchers found that the AR instructions enabled workers
    to complete tasks significantly faster, more accurately, and
    with greater enjoyment.
        Technology can take away jobs. It's true, though, that most
    times when it does, it creates new, even better jobs. But,
    unfortunately, this doesn't happen overnight. It can take
    years, and an entire segment of workers can be left in the cold
    trying to reskill when their industry or vocation is no longer
    relevant. Augmented reality helps people to learn and adapt to
    new technologies faster than ever before. It empowers workers
    with an entirely new tool that enables them to keep up with the
    accelerating pace of change in the modern world.
        Analysts predict that sales will grow from $2 billion today
    to over $100 billion by 2022 across both consumer and
    enterprise markets. This hearing is timely, because this
    transition to consumer use is already underway with AR
    applications in cars. Head-up Displays, a technology developed
    for fighter pilots to get the information they need in the
    cockpit without distracting them from their mission, is finding
    itself on the road today.
        The use of HUD in automobiles has been studied extensively
    and has been shown to have a number of significant safety
    benefits, the most important of which is enabling the driver of
    the vehicle to maintain their gaze on the road. You no longer
    have to look down to see your speedometer or turn-by-turn
    directions. That information is available at a glance directly
    in your field of view. DAQRI's own AR technology can already be
    found in hundreds of thousands of vehicles on the road today,
    and the market for AR in cars is expected to grow to over 10
    million vehicles per year by 2022.
        From the beginning of my career, I knew there was something
    special about a technology that centered on people, allowing
    humans to adapt to changes in technology as quickly as
    computers. As AR continues to emerge as one of the most
    important technologies of the modern world, I ask the Committee
    to consider the potential AR has to enhance the American worker
    and create new jobs and opportunities. The use case with
    consumers will be materially different than the use case in
    industrial and automotive, and regulations need to be tailored
    instead of painted with a broad brush.
        I applaud the Commerce Committee for their foresight in
    holding this hearing. I look forward to working with you to
    help support the emergence of this technology, and I welcome
    any questions you may have.
        [The prepared statement of Mr. Mullins follows:]

      Prepared Statement of Brian Mullins, Chief Executive Officer, DAQRI
        Chairman Thune, Ranking Member Nelson, and members of the
    Committee, thank you for the opportunity to speak to you on this
    important topic.
        My name is Brian Mullins. I am the founder and CEO of DAQRI, a Los
    Angeles-based technology company focused on empowering people in our
    everyday lives through Augmented Reality (AR). In these brief remarks,
    I will discuss the power of AR, how it is being applied today, and why
    it represents a shift in technology so significant as to rival that of
    the Internet itself.
        I first started working with AR technologies in 1997 when I started
    my career at the Department of Transportation (DOT) after graduating
    from the U.S. Merchant Marine Academy at Kings Point, New York. First
    at the DOT and later at the Space and Naval Warfare Systems Command, I
    worked with simulation and early mixed reality technologies that
    provided a glimpse of what AR would one day become. The technology was
    early, but I already knew then that it would become the best way to
    transfer knowledge while maintaining situational awareness.
        When I left the government sector and moved into the field of
    Industrial Automation and Robotics, I learned firsthand how technology
    could dramatically increase workplace efficiency, but was dismayed to
    see workers left behind as factory floors were transformed. Drawing
    upon my earlier experiences, I realized that Augmented Reality could
    give people the ability to keep pace with the advancement of automation
    technologies and remain an invaluable part of the loop. We needed to
    leverage technology not just to optimize factories, but also to empower
    the human beings that ran them.
        This year, much attention has been focused on AR in the
    entertainment sector. But behind the scenes--less covered by the
    media--practical and valuable applications of Augmented Reality that
    will positively influence American lives are already gaining momentum
    in other fields.
        AR is similar to Virtual Reality (VR), but while VR is limited to
    interactions within a completely virtual world, AR mixes the real and
    the virtual together, allowing you to enhance what you see, without
    losing the connection to the world around you.
        Today, AR technology allows you to overlay information into the
    real world and rapidly transfer knowledge that empowers people to make
    decisions that would not be possible without it. Augmented Reality
    devices will have a significant impact in the workplace. Gartner's 2016
    forecast cites these business drivers for wearable head-up displays:\1\
    hands free worker productivity and safety, training in simulated
    environments, checklists for quality control, real-time training, and
    remote expert assistance and collaboration.
    ---------------------------------------------------------------------------
        \1\ Gartner Forecast: Wearable Electronic Devices, Worldwide, 2016,
    Analyst(s): Angela McIntyre, Brian Blau, Michele Reitz
    ---------------------------------------------------------------------------
        Industry leaders such as General Electric, Boeing, Intel,
    Huntington Ingalls, and countless others are applying Augmented Reality
    in training, maintenance, operations, construction, defense and
    manufacturing applications. The use of AR in the enterprise can also
    reduce errors, increase efficiency on complex tasks, and contribute to
    significant improvements in worker safety.
        Imagine a worker who wants to transition to a new manufacturing
    facility that opened in her community, but lacks formal training for a
    highly skilled manufacturing role. Through the power of AR, she can be
    empowered to learn and execute complex tasks, improve productivity, and
    quickly gain new skills and knowledge even in environments where she
    has little experience through guided, step-by-step, augmented reality
    work instructions. On her first day at a new factory, using AR, she can
    look at the disassembled wing of an aircraft and see step by step
    instructions right on top of the components that she needs to put
    together.
        This is not a hypothetical scenario. In 2015, Boeing and Iowa State
    University published a study \2\ comparing the efficacy of traditional
    desktop work instructions with augmented reality work instructions for
    aircraft wingtip assembly. The team observed first-time trainees doing
    complex manufacturing tasks, and tracked a few key productivity stats.
    Major increases in efficiency, accuracy, speed, and worker satisfaction
    were found. Here are some highlights:
    ---------------------------------------------------------------------------
        \2\ Fusing Self-Reported and Sensor Data from Mixed-Reality
    Training, (I/ITSEC) 2014, Trevor Richardson, Stephen Gilbert, Joseph
    Holub, Frederick Thompson, Anastacia MacAllister, Rafael Radkowski,
    Eliot Winer Iowa State University, Paul Davies, Scott Terry, The Boeing
    Company

       Accuracy: Trainees utilizing AR instructions made fewer
            errors than those using desktop instructions by a factor of 16-
            to-1 on the trainees' first time completing a task. On the
            second time around, those using AR had perfect performance--
            zero errors. Overall, the AR work instructions improved first
    ---------------------------------------------------------------------------
            time quality by 94 percent.

       Speed: Trainees using AR instructions were able to complete
            tasks significantly faster than their counterparts, reducing
            job completion time by an average of 30 percent and, in some
            cases, as much as 50 percent.

       Greater focus: AR allowed workers to maintain focus on the
            task at hand. Trainees using AR looked at their instructions
            less frequently and for shorter periods of time, demonstrating
            that comprehension was happening rapidly. As the team put it,
            ``The fewer number of looks meant that participants were not
            `bouncing' back and forth between the instructions and the
            physical task.''

       Satisfied workers: How did workers feel about the
            experience? A post-action survey asked participants if they
            would agree with the statement, ``I would recommend work
            instructions like this to a friend.'' The answer was a
            resounding ``Yes,'' at rates roughly 4 times higher than the
            median score for questions like this at more than 400 companies
            in 28 industries.

        The AR instructions in this study enabled workers to complete tasks
    faster, more accurately and with greater enjoyment. Such results
    promise improved outcomes for industrial businesses, while also
    enhancing quality of life for workers.
        Technology can take away jobs. It's true though that most times
    when it does, it creates new, even better jobs. But this doesn't happen
    overnight. It can take years, and an entire segment of workers can be
    left in the cold trying to re-skill when their industry or vocation is
    no longer relevant. Augmented Reality is a technology that helps people
    to learn and adapt to new technologies faster than ever before. It
    empowers workers with an entirely new tool that enables them to keep up
    with the accelerating pace of change in the modern world.
        This year consumer awareness of AR is higher than ever thanks to
    the rise in gaming applications kicked off by the Pokemon Go
    phenomenon, however the adoption of AR has already been underway in the
    enterprise market for some time. Analysts predict that sales will grow
    from $2B today to over $100B by 2022 in combined hardware and software,
    across both consumer and enterprise markets.
        Much like cellular phone technology, I expect AR to continue to
    develop in the enterprise market before it moves to consumers. And as
    it does, it will enter our day to day lives in a way that we haven't
    yet discussed. This hearing is timely because this transition to
    consumer use is already underway with AR Applications in cars.
        Automotive Head-up Displays (HUD), a technology developed for
    fighter pilots to get the information they need in the cockpit without
    distracting them from their mission is finding itself on the road
    today.
        DAQRI's own AR technology can already be found in hundreds of
    thousands of vehicles on the road today, providing drivers with
    critical information in the windscreen, reducing distraction and
    helping drivers to make decisions faster. At the current rate of
    growth, the market for AR in cars is expected to grow to over 10
    million vehicles per year by 2022.
        With a HUD you no longer have to look down to see your speedometer,
    that information is available at a glance, directly in your field of
    view. AR technology is making driving safer by providing information
    like turn by turn directions directly on top of the road. When
    information is in the space around us, it is more intuitive and easier
    to understand.
        The use of HUD in automobiles has been studied extensively
    \3\,\4\ and has been shown to have a number of significant
    safety benefits, the most important of which is enabling the driver of
    the vehicle to maintain their gaze on the road. This reduces the
    ``blind flight'' time, which can equate to a significant distance when
    travelling at speed. Because of this, it is anticipated that the number
    of vehicles fitted with Head Up Displays at build time will increase
    significantly in the near future.
    ---------------------------------------------------------------------------
        \3\ N. J. Ward and A. Parkes, ``Head-up displays and their
    automotive application: An overview of human factors issues affecting
    safety,'' Accident Analysis & Prevention, vol. 26, no. 6, pp. 703-717,
    1994.
        \4\ R. J. Kiefer and A. W. Gellatly, ``Quantifying t he
    Consequences of the `Eyes-on-Road' Benefit Attributed to Head-Up
    Displays,'' p. 960946, Feb. 1996.
    ---------------------------------------------------------------------------
        And now, as cars become more intelligent there is an even greater
    need for information to flow to the driver. A driver assist system can
    communicate to the driver that there is a hazard ahead they might not
    have seen, or perhaps a self-driving car will inform the passengers
    that it is aware of the truck that moved in front of them, and that it
    will be taking action accordingly. A visual connection between the
    vehicle and the driver using AR is one of the most powerful ways to
    improve safety on the road today.
        From the beginning of my career, I knew there was something special
    about a technology that centered around people and allowing humans to
    adapt to changes in technology as quickly as computers. I am honored to
    stand before you and share the amazing possibilities that AR has to
    enhance the American worker and create new jobs and opportunities that
    will fundamentally make a positive impact on the world in years to
    come.
        As AR continues to emerge as one of the most important technologies
    of the modern world, I ask the Committee to consider the
    transformational impact that this technology has on our society. The
    use case with consumers will be materially different than the use case
    in the industrial environment and regulations to support that need to
    be tailored instead of painted with a broad brush.
        I applaud the Commerce Committee for their foresight in holding
    this hearing now to begin to understand these issues and I look forward
    to partnering with the United States Government to help support the
    emergence of this transformational technology.

        The Chairman. Thank you very much, Mr. Mullins.
        Mr. Pierre-Louis?

                   STATEMENT OF STANLEY PIERRE-LOUIS,

               SENIOR VICE PRESIDENT AND GENERAL COUNSEL,

                   ENTERTAINMENT SOFTWARE ASSOCIATION

        Mr. Pierre-Louis. Chairman Thune, Ranking Member Nelson,
    distinguished members of the Committee, we are honored to be
    invited to testify about the exciting developing technologies
    that will transform the way our consumers engage with our
    content. I am Stanley Pierre-Louis, and I serve as Senior Vice
    President and General Counsel of the Entertainment Software
    Association.
        ESA is dedicated to serving the policy and public affairs
    needs of companies that publish computer and video games for
    video game consoles, handheld devices, personal computers, and
    the Internet. Our members are at the forefront of the ongoing
    technological revolution in interactive entertainment.
        It is important to note, however, that the technologies
    that we are addressing today will have applications that
    stretch well beyond the video game industry and beyond the
    entertainment sector more broadly. They will impact sectors as
    varied as education, healthcare, engineering, architecture, and
    national defense, just to name a few.
        My written testimony delves into the distinctions between
    augmented reality, mixed reality, and virtual reality. Today's
    other panelists are more expert than I am in these areas, so I
    will focus my oral testimony on the legal considerations
    arising out of these new technologies and our industry's
    approach to addressing them.
        As technologies have emerged over time, laws have developed
    and evolved to ensure Americans' privacy and data security. Our
    Federal laws and regulations have proven to be sufficiently
    robust to protect consumer interests, while remaining flexible
    enough to allow industries to innovate and deliver products and
    services to customers specified to their needs. And in the
    states and territories, there's no shortage of statutory and
    common laws governing negligence, trespass, privacy, data
    protection, and product liability.
        ESA members are committed to meaningful privacy and data
    security protections and to providing the tools consumers need
    to make informed decisions about the products they plan to buy.
    Our industry has embraced a culture of self-regulation and
    informed consent. To that end, our industry has long adopted
    practices that go well beyond what is required by law to inform
    consumers about our products and privacy practices.
        In 1994, for example, our industry created the
    Entertainment Software Rating Board, a nonprofit, self-
    regulatory body that assigns ratings for games and apps so
    parents can make informed choices. The ESRB rating system
    encompasses guidance about age appropriateness, content, and
    the interactive elements. This program has been lauded by the
    Federal Trade Commission for our industry's compliance with the
    program as well as for providing conspicuous, straightforward,
    and informative disclosures to consumers. More importantly,
    this program has served its ultimate purpose, as consumers
    report being highly aware of the ratings of the products we
    sell.
        Since 1999, our industry has also operated the Privacy
    Certified Program, which provides online privacy solutions to
    address the growing complexity of privacy protection laws.
    Among other things, the Privacy Certified Program enjoys a safe
    harbor status which shields program members from potential
    sanctions or fines from the FTC and from state attorneys
    general when violations of COPPA or other state legislation
    arise.
        When it comes to balancing children's welfare, parental
    responsibility, and the freedom of expression, the technology
    behind augmented reality and mixed reality fit neatly within
    these existing legal frameworks. After all, these are
    technologies that, at their core, are advanced content delivery
    systems.
        Just five years ago, the U.S. Supreme Court recognized in
    Brown v. Entertainment Merchants Association that video games
    are express works that enjoy the same First Amendment
    protections as books, plays, and movies. And as the late
    Justice Antonin Scalia aptly explained in his majority opinion,
    ``whatever the challenges of applying the Constitution to ever-
    advancing technology, 'the basic principles of freedom of
    speech and the press, like the First Amendment's command, do
    not vary' when a new and different medium for communication
    appears.''
        The Court rejected the argument that video games present
    special problems because they are interactive, noting that
    interactivity has always been a feature and a goal of
    expressive works. In effect, the Supreme Court left little
    doubt that our foundational laws governing speech are well
    equipped to address emerging technologies like augmented
    reality and mixed reality.
        We encourage the Committee to give these technologies the
    space they need to grow and to avoid any redundant and
    unnecessary regulation that would have a chilling effect on
    this nascent and promising industry.
        Thank you again for the opportunity to testify today about
    the thrilling new technological developments underway. We look
    forward to working with the Committee and answering any
    questions you may have.
        [The prepared statement of Mr. Pierre-Louis follows:]

     Prepared Statement of Stanley Pierre-Louis, Senior Vice President and
              General Counsel, Entertainment Software Association
        Chairman Thune, Ranking Member Nelson, distinguished Members of the
    Committee, my name is Stanley Pierre-Louis, and I am Senior Vice
    President and General Counsel of the Entertainment Software Association
    (``ESA''). Thank you for inviting me to testify today. ESA is dedicated
    to serving the policy and public affairs needs of companies that
    publish computer and video games for video game consoles, handheld
    devices, personal computers and the Internet. Our members employ
    highly-skilled artists, authors, software programmers, engineers and
    developers who produce a wide array of highly-expressive, interactive
    works, which include audiovisual materials, musical compositions,
    literary works, artistic works and software. Last year alone, the video
    game industry generated more than $23 billion in revenue in the United
    States and entertained hundreds of millions of consumers throughout the
    world. Our members are at the forefront of the ongoing technological
    revolution in interactive entertainment, and I am honored to be invited
    to testify today about the exciting developing technologies known as
    Augmented Reality (or ``AR'') and Mixed Reality (or ``MR'').
    I. Introduction
        AR and MR have some similarities to their better-known cousin,
    Virtual Reality (or ``VR''), but differ in key respects--mainly, how
    the video graphics and digital content integrate with the physical
    world around us. With Virtual Reality, the user typically wears a
    headset or opaque goggles (often accompanied by headphones) and is
    closed off from the ``real world.'' The user is fully immersed in a
    software-generated environment (often termed a ``virtual world'')
    displayed before her eyes. By contrast, Augmented Reality involves
    computer technology that overlays software-generated images, sounds and
    other information over the ``real world.'' Complementary hardware for
    AR can include a visor with transparent (or semi-transparent) lenses, a
    head-mounted display, or a hand-held device, such as a smart phone or
    video game equipment. Pokemon GO, the mobile game that captured the
    attention of millions of users worldwide this summer, is one of the
    best-known examples of AR. That game was released on July 6, 2016, and,
    within a week, as many as twenty-five million U.S. smartphones had
    logged in to play the game.\1\
    ---------------------------------------------------------------------------
        \1\ Future Reality: Virtual, Augmented & Mixed Reality (VR, AR, &
    MR) Primer, Bank of America Merrill Lynch Thematic Investing, Sept. 7,
    2016, at 41 [hereinafter ``Bank of America Report''].
    ---------------------------------------------------------------------------
        Because AR can be used to overlay data on top of ``real world''
    activities, it is versatile in a variety of contexts. One popular use
    of AR technology occurs in broadcasts of National Football League
    games, where a virtual blue line is overlaid across the field to
    represent the ``line of scrimmage'' and a virtual yellow line is
    overlaid across the field to represent the ``first down'' marker.\2\
    Earlier uses of this technology were simulated in several scenes of the
    1977 epic film Star Wars: Episode IV--A New Hope, including when
    Princess Leia sent a pivotal holographic message to General Obi-Wan
    Kenobi.\3\
    ---------------------------------------------------------------------------
        \2\ Brian D. Wassom, Augmented Reality Law, Privacy, and Ethics:
    Law, Society, and Emerging AR Technologies, at 7 (Allison Bishop ed.,
    Syngress, 2015).
        \3\ See http://www.starwars.com/video/help-me-obi-wan-kenobi (video
    of holographic message from Princess Leia).
    ---------------------------------------------------------------------------
        The potential for AR is enormous. Imagine walking through an
    airport and seeing personalized directions to your gate; watching a
    city bus approach and knowing immediately whether it is the bus you
    need or how long you will need to wait for the next bus; walking by a
    restaurant that prompts a menu to ``float'' in front of you; or getting
    turn-by-turn instructions on your windshield while driving.\4\
    ---------------------------------------------------------------------------
        \4\ Ian King and Dana Hull, The Car Windshield is Turning into a
    Computer Screen, Bloomberg (Jan. 22, 2015), https://www.bloomberg.com/
    news/articles/2015-01-22/the-car-windshield-is-turning-into-a-computer-
    screen.
    ---------------------------------------------------------------------------
        Mixed Reality contains elements of both VR and AR. Whereas VR
    immerses you in a simulated world--and whereas AR overlays digital
    information in real-world settings--MR blends 3-D digital content into
    your physical world. Using a transparent lens or goggles, the user can
    see both the real world and a virtual world seamlessly tied together.
    MR differs from AR in that the virtual images and elements overlaid in
    the user's field of vision can interact with and recognize the user and
    are spatially aware of the environment. In MR, virtual objects placed
    in the real world appear real and tangible to the user. The user is
    allowed to move those objects around, observe their minute details, and
    even interact with them using gestures or voice commands. Imagine
    hiking on a nature trail with a virtual companion who cannot only tell
    you where to go, but teach you about your surroundings.\5\ Or, in the
    video game context, imagine defending against a virtual army of flying
    robots that have invaded your home through the living room walls.\6\
    The possibilities of these new technologies are truly limitless.
    ---------------------------------------------------------------------------
        \5\ To be sure, several mobile apps already provide hikers with
    trail directions and information about their surroundings. See http://
    beyond.com/blog/how-augmented-reality-will-make-you-a-smart-hiker/
    (discussing the use of AR in hiking apps); see also http://
    www.atlasandboots.com/best-hiking-apps/ (listing mobile and AR hiking
    apps). However, as MR capabilities advance, the technology will become
    more integrated into the user experience.
        \6\ See RoboRaid video, available at https://www.microsoft.com/
    microsoft-hololens/en-us/apps/roboraid.
    ---------------------------------------------------------------------------
        In many ways, VR, AR and MR are evolutionary: they emerged from
    advancements in existing technologies, such as microchip processing,
    software, razor display screens, GPS, 3-D graphics, wearable computers
    and the mobile Internet. Legal frameworks developed in the context of
    these related technologies have protected the public interest
    throughout those advancements.
        But, these technologies may also prove to be revolutionary. We may
    not yet have George Jetson's flying car, but we do have AR and MR. It
    is no longer science fiction. The public's excitement over the
    entertainment possibilities of VR, MR and AR may be driving the current
    wave of innovation and pushing products to market, but we are only
    beginning to scratch the surface of what these technologies can
    achieve. Indeed, the possibilities for the application of these
    technologies in the fields of education, healthcare, science, business
    and national defense are bountiful. And, they will become more
    interactive, more immersive and more accessible and more affordable
    over time. Goldman Sachs researchers recently estimated that, by 2025,
    VR and AR will constitute at least a $23 billion market and could even
    be as much as a $182 billion market.\7\
    ---------------------------------------------------------------------------
        \7\ Heather Bellini et al., Virtual & Augmented Reality:
    Understanding the Race for the Next Computing Platform, Goldman Sachs
    Global Investment Research, Jan. 13, 2016, at 14 [hereinafter ``Goldman
    Sachs Report''].
    ---------------------------------------------------------------------------
        American technologists and entrepreneurs are leading the way, just
    as they did at the dawn of the Internet. Our members are at the
    forefront of this innovation, but they are by no means alone. As with
    past technological leaps, the government should embrace and empower
    these emerging technologies by allowing them to iterate, grow and
    flourish so they can reach their full potential benefit to the American
    society and economy. I am pleased to be here today to talk about the
    applications emerging in this field, as well as a few of the ongoing
    considerations that are at the forefront of this evolution.
    II. Current and Predicted Applications of these Emerging Technologies
        AR and MR technologies already offer immersive game-playing and
    entertainment experiences. Some examples include using video game
    controllers to play air hockey on a virtual field that is projected by
    the light bars on the controllers (The Playroom, Sony PlayStation 4);
    solving a high-tech crime thriller that uses objects in your physical
    space to create the crime scene and for hiding clues (Fragments,
    Microsoft HoloLens); and a fighting dragon that pops up from an AR
    playing card (Archery, Nintendo 3DS). However, in addition to providing
    entertainment, these technologies will likely serve more broadly as
    platforms for our routine daily tasks. Think of the smartphone. This
    one device, which emanated from the mobile phone, now serves as an e-
    mail and texting hub, a calendar, a to-do list, a health monitor, a
    map, a music player, a weather forecaster and a ride-hailing service,
    to name just a few applications. AR and MR have the potential to fuel
    the next generation of tools to make our daily lives even more
    productive and enjoyable and to connect people who might be miles
    apart. They are poised to dramatically improve many sectors of our
    society and economy. Here are just a few of the sectors that stand to
    be dramatically improved by AR and MR.
        In the Entertainment sector, content creators and consumers are
    teeming with excitement over AR and MR.\8\ Video games have already
    undergone dramatic improvements in user experience, but AR and MR
    present new possibilities. And, as the recent success of Pokemon GO
    suggests, this evolution can have ancillary societal benefits. For
    example, unlike traditional video games that were best played from the
    living room or on PCs, AR and MR experiences can be suited to a variety
    of locations, both indoors and out. Pokemon GO motivates users to
    explore the real world around them: to go outdoors and be active. This
    new and promising evolution of games integrates learning, exploration
    and physical activity like never before.
    ---------------------------------------------------------------------------
        \8\ John Gaudiosi, Why Gamers are Excited about Virtual Reality and
    Augmented Reality, Fortune (Sept. 11, 2015), http://fortune.com/2015/
    09/11/gamers-are-excited-about-vr-ar/ (``Gamers are always looking to
    the next thing, whether it is the next game in a franchise or the next
    hardware platform/capability.'').
    ---------------------------------------------------------------------------
        For video entertainment, AR and MR will be used by artists to
    imagine and bring new worlds to life and to augment our existing worlds
    in ways that once seemed impossible. Peter Jackson, the Oscar-winning
    director of the Lord of the Rings series, serves on the advisory panel
    for Magic Leap, one of ESA's member companies that is at the forefront
    of developing MR technology. Jackson recently told Wired magazine,
    ``[t]his mixed reality is not an extension of 3-D movies. It's
    something completely different. . . . Once you can create the illusion
    of solid objects anywhere you want, you create new entertainment
    opportunities.'' \9\
    ---------------------------------------------------------------------------
        \9\ Kevin Kelly, The Untold Story of Magic Leap, the World's Most
    Secretive Startup, Wired (April 2016), https://www.wired.com/2016/04/
    magic-leap-vr/.
    ---------------------------------------------------------------------------
        Indeed, Magic Leap's MR technology is nothing short of amazing; it
    creates ``mixed-reality objects'' that ``are aware of their
    environment.'' \10\ Advanced hardware ``constantly gathers information,
    scanning the room for obstacles, listening for voices, tracking eye
    movements and watching hands.'' \11\
    ---------------------------------------------------------------------------
        \10\ David M. Ewalt, Inside Magic Leap, The Secretive $4.5 Billion
    Startup Changing Computing Forever, Forbes (Nov. 2, 2016), http://
    www.forbes.com/sites/davidewalt/2016/11/02/inside-magic-leap-the-
    secretive-4-5-billion-startup-changing-computing-forever/#491fca29e83f.
        \11\ Id.
    ---------------------------------------------------------------------------
        Healthcare. AR and MR may prove transformative to the healthcare
    industry. Already today, AR is being used to address the pain
    management and rehabilitation needs of pediatric burn victims.\12\ In
    the future, one could imagine a surgeon wearing AR or MR glasses to
    review a patient's MRI scan results while the scan is overlaid on top
    of the patient. There may be therapeutic uses as well; patients
    experiencing pain could be transported to relaxing destinations. Some
    researchers are even testing the ability of VR to help paraplegics
    learn to walk again.\13\ And still other researchers are examining
    whether these technologies can help treat patients with phobias or
    PTSD, as ``virtual worlds can create artificial, controlled stimuli in
    order to habituate the patient to those environments that cause
    anxiety.'' \14\
    ---------------------------------------------------------------------------
        \12\ Jonathan Mott, et al., The Efficacy of an Augmented Virtual
    Reality System to Alleviate Pain in Children Undergoing Burns Dressing
    Changes: A Randomised Controlled Trial, Burns Journal (September 2008),
    http://www.burnsjournal.com/article/S0305-4179(07)00286-0/abstract;
    Monika Joshi, Pokemon Go Helps Harborview Patients Heal, America's
    Essential Hospitals (Aug. 11, 2016), https://essentialhospitals.org/
    pokemon-go-helps-patients-heal/.
        \13\ Ananya Bhattacharya, Paraplegics are Learning to Walk Again
    with Virtual Reality, Quartz (Aug. 15, 2016), http://qz.com/757516/
    paraplegics-are-learning-to-walk-again-with-virtual-reality/.
        \14\ Goldman Sachs Report at 24.
    ---------------------------------------------------------------------------
        Education. The applications of these technologies to education are
    endless. For example, Microsoft has worked with Case Western Reserve
    University to use the HoloLens for medical student training; medical
    students can view and interact with a holographic human body with
    animated skeletal structure and circulatory system, replacing the need
    for cadavers.\15\ Microsoft is also working with the educational
    publisher Pearson to use the HoloLens to create a number of learning
    tools, including online tutoring and coaching in areas as disparate as
    nursing, engineering and construction.\16\
    ---------------------------------------------------------------------------
        \15\ Kathryn Jeffords, Virtual and Augmented Reality: Changing the
    Game in Healthcare, Science Media Awards Summit in the Hub (June 29,
    2016), http://www.sciencemediasum
    mit.org/blog/virtual-and-augmented-reality-changing-the-game-in-
    healthcare.
        \16\ Mark Coppock, Microsoft and Pearson are partnering to Turn
    HoloLens into an Educational Tool, Digital Trends (Oct. 26, 2016),
    http://www.digitaltrends.com/computing/pearson-hololens-mixed-reality-
    education/.
    ---------------------------------------------------------------------------
        Today, users can download iPhone apps that identify stars,
    constellations and satellites when users direct their iPhones to the
    night sky.\17\ However, one can also imagine a class learning about the
    Civil War and seeing a three-dimensional representation of Abraham
    Lincoln standing before the students, delivering the Gettysburg
    Address. And, one can imagine students being virtually transported to
    the Colosseum in Rome during the Flavian dynasty to experience life as
    a gladiator. According to a professor of education the University of
    Pennsylvania's Graduate School of Education, ``[r]esearch shows that
    interacting with AR alone improves students' understanding of a
    concept.'' \18\
    ---------------------------------------------------------------------------
        \17\ Ci, 5 Superb Augmented Reality Astronomy Apps for iPhone,
    iPhoneness (June 17, 2016), http://www.iphoneness.com/iphone-apps/
    augmented-reality-astronomy-apps/.
        \18\ Susan A. Yoon, The Educator's Playbook: The Role of Augmented
    Reality in a Lesson Plan, Penn GSE Newsroom (2016), http://
    www.gse.upenn.edu/news/educators-playbook/role-augmented-reality-
    lesson-plan.
    ---------------------------------------------------------------------------
        In addition, high-risk professionals would be able to receive
    realistic, hands-on training in a safe environment. AR and MR
    technology will enabling users to tour a new city and immediately learn
    background information about monuments or architecturally significant
    buildings simply by looking at them. And, one day, we might really know
    what it is like to stand in another's shoes, walking through
    simulations designed to help us understand each other better to help
    foster empathy.\19\
    ---------------------------------------------------------------------------
        \19\ Nick Harley, How Augmented Reality and Empathetic Storytelling
    is Changing Audience Engagement, PR Newswire for Journalists (Aug. 31,
    2016), https://mediablog.prnewswire.com/2016/08/31/how-augmented-
    reality-and-empathetic-storytelling-is-changing-audience-engagement/.
    ---------------------------------------------------------------------------
        Business and Engineering. As previously mentioned, Microsoft is
    already selling its MR visor, called HoloLens, to developers. A user of
    the HoloLens will be able to watch ``a live football game on a virtual
    screen `hovering' next to a web browser window, alongside a few other
    virtual screens.'' \20\ These ``hovering'' screens could eventually
    replace the various physical screens we use today at home and at the
    office because they can be summoned into (and out of) your field of
    vision and pinned to the walls and counters of your physical space as
    requested while using AR and MR glasses. The mix of entertainment,
    information and work applications has the potential to improve every
    workspace in America.
    ---------------------------------------------------------------------------
        \20\ Kelly, supra note 9.
    ---------------------------------------------------------------------------
        The applications for architects, builders, designers, artists and
    engineers will be nothing short of transformative. Instead of looking
    at a two-dimensional computer screen rendering a space in 3-D, users
    will be able to stand in the space as they create it before a single
    brick is laid. In fact, Lockheed Martin has collaborated on AR projects
    to speed up the maintenance process for F-22 and F-35 fighter jets:
    ``When an engineer looks at the aircraft using the smart glasses, they
    see digitally displayed plans projected over the physical plane. They
    can then use a tablet to enter any damage or defects.'' \21\
    ---------------------------------------------------------------------------
        \21\ See Augmented Reality and Workplace Training, SpongeUK (June
    19, 2015), http://spongeuk.com/2015/06/augmented-reality-and-workplace-
    training/.
    ---------------------------------------------------------------------------
        This technology also enhances the ability of consumers to become
    more mobile. Have a new job in St. Louis or in Tampa? Instead of
    incurring the expense of flying to look for a new home, take a virtual
    tour of homes from right where you are.\22\ Similarly, vacationers are
    now able to explore possible destinations before committing to a locale
    or a hotel.\23\
    ---------------------------------------------------------------------------
        \22\ See https://www.vrglobal.com/real-estate/ (solutions for
    virtual tours using VR and AR technologies).
        \23\ See http://www.augment.com/blog/augmented-reality-in-tourism/,
    (discussing use of AR technology in tourism).
    ---------------------------------------------------------------------------
        National Defense. The United States military already uses VR to
    train military personnel, including flight and combat simulations.\24\
    As this technology helps create more realistic, immersive simulations,
    this aspect of military training will become increasingly useful and
    effective. It is also not hard to imagine the value of AR or MR glasses
    on the battlefield, where vital information could be placed
    strategically in the user's field of vision, accessible without the
    user having to resort to looking down at a screen or map. Indeed, so-
    called ``heads-up'' displays are now commonplace in our military's
    advanced fighter jets.\25\
    ---------------------------------------------------------------------------
        \24\ Goldman Sachs Report at 26.
        \25\ See Sean Gallagher, ``Magic Helmet'' for F-35 ready for
    delivery, Ars Technica (July 24, 2014), http://arstechnica.com/
    information-technology/2014/07/magic-helmet-for-f-35-ready-for-
    delivery/.
    ---------------------------------------------------------------------------
    III. Legal Landscape
        As technologies have emerged over time, laws have developed and
    evolved to ensure Americans' privacy and data security. Our Federal
    laws and regulations have proven to be sufficiently robust to protect
    consumer interests, while remaining flexible enough to allow industries
    to innovate and deliver products and services to customers specified to
    their needs. Moreover, in each state and territory, there is no
    shortage of statutory and common laws governing negligence, trespass,
    privacy, data protection and product liability.
        ESA's members are committed to meaningful privacy and data security
    protections and to providing the tools consumers need to make informed
    decisions about the products they plan to purchase. Our industry has
    embraced a culture of self-regulation and ``informed consent.'' To that
    end, our industry has long adopted practices that go well beyond what
    is required by law to inform consumers about our products and privacy
    practices. In 1994, for example, our industry created the Entertainment
    Software Rating Board (``ESRB''), a non-profit, self-regulatory body
    that assigns ratings for video games and apps so parents can make
    informed choices. The ESRB rating system encompasses guidance about
    age-appropriateness, content, and interactive elements.\26\ This
    program has been lauded by the Federal Trade Commission (``FTC'') for
    our industry's compliance with the program as well as for providing
    conspicuous, straightforward and informative disclosures to
    consumers.\27\ More importantly, this program has served its ultimate
    purpose, as our consumers are highly aware of the ratings of the
    products we sell.\28\
    ---------------------------------------------------------------------------
        \26\ In 2015, ESRB expanded the use of its ratings to mobile and
    digital storefronts as part of the International Age Rating Coalition
    (``IARC''). Information on IARC available at: https://
    www.globalratings.com/.
        \27\ See FTC Undercover Shopper Survey on Entertainment Ratings
    Enforcement Finds Compliance Highest Among Video Game Sellers and Movie
    Theaters, FTC (March 25, 2013), https://www.ftc.gov/news-events/press-
    releases/2013/03/ftc-undercover-shopper-survey-entertainment-ratings-
    enforcement.
        \28\ See ESRB Survey: Parental Awareness and Use, https://
    www.esrb.org/about/awareness.aspx (``86 percent of parents are aware of
    the ESRB rating system'').
    ---------------------------------------------------------------------------
        Since 1999, the ESRB has also operated the Privacy Certified
    program (formerly the ESRB Privacy Online program), which provides
    online privacy solutions to address the growing complexity of privacy
    protection laws. Among other things, the Privacy Certified program
    enjoys ``safe harbor'' status, which shields program members from
    potential sanctions or fines from the FTC and/or state attorneys
    general when violations of the Children's Online Privacy Protection Act
    (or similar state legislation) arise.\29\
    ---------------------------------------------------------------------------
        \29\ For more information on the ESRB Privacy Certified program,
    see https://www.esrb.org/privacy/faq.aspx#2.
    ---------------------------------------------------------------------------
        When it comes to balancing children's welfare, parental
    responsibility and the freedom of speech and expression, AR and MR
    technologies fit neatly within existing legal frameworks. After all, AR
    and MR are, at their core, advanced content delivery systems. Just five
    years ago, the U.S. Supreme Court recognized in Brown v. Entertainment
    Merchants Association that video games are expressive works that enjoy
    the same First Amendment protections as ``books, plays, and movies.''
    \30\ As the late Justice Antonin Scalia aptly explained in his majority
    opinion, ``whatever the challenges of applying the Constitution to
    ever-advancing technology, `the basic principles of freedom of speech
    and the press, like the First Amendment's command, do not vary' when a
    new and different medium for communication appears.'' \31\ The Court
    rejected the argument that ``video games present special problems
    because they are `interactive,' '' noting that ``interactivity'' has
    always been a feature--and a goal--of expressive works: ``the better it
    is, the more interactive.'' \32\ The Supreme Court left little doubt
    that our foundational laws governing speech are well-equipped to
    address emerging technologies like AR and MR.
    ---------------------------------------------------------------------------
        \30\ 564 U.S. 786, 790 (2011).
        \31\ Id.
        \32\ Id. at 798 (internal quotation marks omitted).
    ---------------------------------------------------------------------------
        History is instructive on other examples of the law's adaptability
    to new technologies. In the late 1990s, during the still-early days of
    the World Wide Web, the FTC believed that many Internet sites did not
    provide consumers with adequate disclosures.\33\ The FTC responded by
    developing guidance (known as the ``Dot Com Disclosures'') to help
    businesses apply established principles of ``clear and conspicuous''
    disclosure to the online context. It has since updated that guidance
    several times as the Internet has evolved.\34\ All of this has occurred
    within existing FTC authority and without the need to amend the FTC
    Act.\35\
    ---------------------------------------------------------------------------
        \33\ See FTC Staff Issues Guidelines on Internet Advertising (May
    3, 2000), https://www.ftc.gov/news-events/press-releases/2000/05/ftc-
    staff-issues-guidelines-internet-advertising.
        \34\ See FTC Staff Revises Online Advertising Disclosure Guidelines
    (March 12, 2013), https://www.ftc.gov/news-events/press-releases/2013/
    03/ftc-staff-revises-online-advertising-disclosure-guidelines.
        \35\ See .com Disclosures: How to Make Effective Disclosures in
    Digital Advertising, FTC (March 2013) at p. 2, https://www.ftc.gov/
    system/files/documents/plain-language/bus41-dot-com-disclosures-
    information-about-online-advertising.pdf (``The FTC Act's prohibition
    on `unfair or deceptive acts or practices' broadly covers advertising
    claims, marketing and promotional activities, and sale practices in
    general. The Act is not limited to any particular medium.'').
    ---------------------------------------------------------------------------
        We encourage the Committee to give AR and MR the space they need to
    grow, and to avoid any redundant and unnecessary regulation that would
    have a chilling effect on this nascent and promising industry.
    IV. Conclusion
        Thank you again for the opportunity to testify today about the
    thrilling new technological developments under way. These are exciting
    times for creators, developers, consumers and our country as a whole.
    AR and MR have tremendous potential beyond entertainment. We should
    encourage continued American innovation and investment in these areas.
    And when issues arise, we should look first to existing legal
    frameworks that have served consumers well in the past. We look forward
    to working with the Committee and answering any questions you might
    have.

        The Chairman. Thank you, Mr. Pierre-Louis.
        We'll proceed to questions, I think.
        Senator Nelson, do you want to submit, or do you want to
    make a statement?

                    STATEMENT OF HON. BILL NELSON,
                       U.S. SENATOR FROM FLORIDA

        Senator Nelson. Mr. Chairman, you're very kind. I'll submit
    an opening statement.
        [The prepared statement of Senator Nelson follows:]

       Prepared Statement of Hon. Bill Nelson, U.S. Senator from Florida
        Chairman Thune, thank you for holding this hearing to explore the
    exciting promises of augmented reality technologies and to spur
    important discussions on the many policy questions that augmented
    reality raises.
        Over the August recess, I took a tour of Magic Leap's facility in
    Dania Beach, Florida. Magic Leap, which will be headquartered in
    Plantation, is one of the leading, cutting-edge AR companies in the
    world.
        And what I saw was truly amazing--not only because this technology
    will change how we interact with the world, but also because of what it
    means for growing Florida's economy and creating well-paying, high-
    skilled jobs.
        And, if I may, Chairman Thune, I'd like to submit for the record a
    recent piece in Wired Magazine on Magic Leap.
        Yes, augmented reality can be used for video games. But it can also
    be used to educate or do business like never before, spurring
    efficiency and convenience. And the technology has the potential to
    break down barriers for those with disabilities and create a safer
    world for consumers.
        One of the big questions is: what does augmented reality mean for
    consumer privacy? AR devices can potentially record, download, and
    store vast amounts of information about the real world, including about
    innocent bystanders who may have no clue they are being recorded. What
    are we going to do to protect their privacy?
        And what must be done to make sure that these devices are secure
    from hackers and cyber-vulnerabilities? For instance, augmented reality
    is being used in cars so drivers can get real-time information on their
    windshields. Will hackers be able to infiltrate that system and, say,
    block the driver's view of a stop sign or a pedestrian crossing the
    street?
        How will we protect children from unsuitable augmented reality
    content? Parents are already struggling to shield their kids from
    adult-oriented and dangerous videos and video games. This could be an
    even bigger problem for parents when it comes to sophisticated AR
    content that may be completely inappropriate for young eyes and brains.
        These are the types of questions I hope our witnesses can shed some
    light on. I share my colleagues' enthusiasm about this exciting,
    ground-breaking technology. And I'm a believer in what this growing
    industry can do for states like mine in creating the jobs of tomorrow.
    But we also must ask some of the tough questions to make sure that
    innovation is taking place in a responsible manner.
        Thank you.

        Senator Nelson. May I just ask one question, because I want
    to give our other members a chance here.
        Cybersecurity--we've seen how you can take over a car. You
    could possibly take over an airplane. So could a hacker make a
    digital flock of birds, if you're using AR in the cockpit, to
    make it look as if it were going to fly through the windshield
    of the airplane? And what can we do about that?
        Mr. Mullins. Senator, thank you for the question. I think
    it's a fantastic question. I think as the technology gets
    better, the simple answer is yes, we could make virtual objects
    that are indistinguishable from the real world. I think the
    underlying question about the security of augmented reality is
    a very serious question that applies to technology in general
    and is one that we need to get out in front of and plan for in
    the products we make and as we develop the technologies.
        There will certainly be new opportunities with augmented
    reality for exploitation by bad actors, as there is with any
    new technology. I think it's questions like this being asked
    today that will help us get in front of those problems as an
    industry and in regulation.
        Mr. Calo. I just want to add to that. One of the
    recommendations that we came up with within the Tech Policy
    Lab--one of my colleagues, who is my co-director of the lab
    actually did the original work showing that you could take over
    a car and cause it to break and do all these different things--
    Tadayoshi Kohno--was that with augmented reality, doing really
    good threat modeling is critically important. By threat
    modeling, we mean that you imagine all the things that people
    might be able to do with it, including--and that's a brilliant
    one--the idea of introducing a fake flock of birds.
        But just think, you know, you could also have it happen
    much more simply, such as just obscuring a stop sign so that
    you don't see it. I remember that my colleague, Tadayoshi
    Kohno, had an app that he was using when he was running to keep
    track of his running, and he looked at it, and he thought that
    he saw a spider on it. So he threw it to the ground, and it
    broke. It actually broke his phone.
        Later, what we pieced together was that an app that was
    tracking his running had allowed an exterminator service to
    take over and do an advertisement, and the advertisement was
    like a shock advertisement to scare him into thinking it was
    a--he really got scared. And as a tort professor, that strikes
    me as being an awful lot like kind of a digital assault.
        So I think that when bones instead of bits are on the line,
    I think that the kind of thing that you're talking about is
    particularly crucial, and I think that it is absolutely
    incumbent on these companies to make sure that they're doing
    very good threat modeling and taking security extremely
    seriously.
        Mr. Hanke. If I could add one thing to that, I'm very glad
    you raised that question. I absolutely think it's incumbent
    upon all of us offering products to have best-of-breed security
    out there. For any company that's trying to operate in today's
    environment, that is a core part of the business. You have to
    invest in it. I think we were kind of lucky at Niantic in that
    we had the benefit of working within Google for many years--
    many of the core members of the team--which has had to deal
    with all kinds of threats, and we knew that we were going to
    have to expect that.
        But to the point I made earlier about sometimes it not
    feeling like there's a sheriff, I would just reemphasize that
    it's a lot to ask of U.S. companies to go out there when
    threats can come flying in, and do come flying in, constantly
    from all over the world, where people essentially can act with
    impunity, and you stop them in one place, and they come back
    somewhere else. There's no real risk to this for the folks that
    are doing it. So we are asking a lot of our companies to play
    whack-a-mole and to just continuously fight off those attacks
    on their own.
        Senator Nelson. By the way, if you're the guy who developed
    Google Earth, thank you. I use it all the time, and I use it to
    see what roads are congested.
        [Laughter.]
        Mr. Hanke. That's great to hear. Thank you.
        Mr. Pierre-Louis. Senator Nelson, Stan Pierre-Louis. In
    answer to your question, one of the interesting things about
    being in the video game industry is that we are dual DNA. We
    are both a content industry, because we create creative works,
    but we're also a software industry, so we're a tech. So we've
    got a lot to think about when we put our products out.
        One is how do we protect our content--very important--and
    we've got security measures there both in terms of the software
    and the consoles or other devices. Second, we need to think
    about how we protect our corporate data, because that's very
    valuable and important, and the third is how do we protect
    consumer data. So the thought process of that protection goes
    very deep into the design of how we create our works and
    distribute those works.
        But more and more, as you're seeing larger threats and as
    you're seeing state actors make those threats, one of the areas
    that obviously has to be taken into consideration is what we do
    about our cybersecurity laws and strengthening them. That's one
    of the areas that we think about. How do we strengthen them to
    make sure that we're all headed toward the same goal and not
    creating opportunities for bad actors? So that's going to be an
    important element of this as well.
        The Chairman. Thank you, Senator Nelson. Echo on the Google
    Earth. I'm a big fan of Google Earth, so well done.
        Senator Wicker?

                  STATEMENT OF HON. ROGER F. WICKER,
                     U.S. SENATOR FROM MISSISSIPPI

        Senator Wicker. I'm sorry I didn't get here in time for the
    demonstrations. But let me ask about what this is going to do
    for job creation in a state like mine. We'll start with Mr.
    Mullins.
        You've got the Smart Helmet. Is this going to create jobs?
    Is it going to replace jobs? And in what ways might this
    encourage some guy that wants to be a welder or is more
    inclined toward the vo-tech type education? Could you expand on
    that? We'll start with you, Mr. Mullins.
        Mr. Mullins. Thank you, Senator. Absolutely, the products
    like the Smart Helmet are designed to create jobs, to empower
    workers with something we call ``knowledge transfer.'' Very
    complex activities, very complex tasks can be broken down and
    shown visually so that they're much easier to comprehend, to
    understand. It allows workers to put on a device like the Smart
    Helmet and be able to perform a task or even work in a job that
    they don't have any prior experience with.
        It's substantiated by independent studies. Elaborating on
    the Boeing and Iowa State study that I mentioned in my
    testimony, they used augmented reality to train workers that
    had never before put together aircraft wings. Those workers,
    using augmented reality, were able to put the wings together,
    although they had no experience doing it, in 30 percent less
    time and with over 90 percent less errors than with any other
    training method.
        What was really fascinating, if you read the study in its
    entirety, is that the second time those workers used augmented
    reality to assemble the wings, the mean error rate was zero.
    They were able to remove human error from the equation
    completely, and these were workers that had never before
    performed those activities, never worked in those jobs.
        You mentioned welding, specifically, in the question. We
    have seen in our own customer base augmented reality used to
    train welders faster than previously possible, far exceeding
    the rates at which a successful welder can be deployed than
    even that in dedicated trade schools for welding. I think the
    opportunity here is actually to not just create jobs, but to
    improve the concept of worker portability, where a worker who
    may have spent a substantial amount of time in their career in
    a job or even an entire segment of industry that may not be
    relevant anymore--to give them the opportunity, without having
    to take multiple years off to reskill and retrain, to enter the
    workforce in a very productive way in a dramatically shorter
    period of time.
        I think that augmented reality has a huge opportunity to
    help us not just create new jobs, but to reshape the workforce,
    and to fill the jobs that we have a very difficult time filling
    today with the workers that wake up in the morning and want to
    make a living. They want to do something and don't have the
    experience today to do it.
        Senator Wicker. In the minute and a half we have left, does
    anyone else want to take a stab at that?
        Mr. Pierre-Louis?
        Mr. Pierre-Louis. Thank you, Senator Wicker. As you were
    speaking, I was thinking of a few things that came to mind. One
    is the fact that a career in video game design, of which there
    are three schools in the city that actually have video game
    design and there's a company there. People often leave that and
    go into many industries, because the skills you learn in
    learning how to make simulations are actually broader and have
    lots of applications, one of which is an exciting technology
    that one of our members, Microsoft, is working on now.
        So they've developed a visor called ``HoloLens,'' and it's
    a visor that's see-through but you can have data input into it.
    They're working with an educational publisher named Pearson to
    develop educational online tutorials, whether it's for nursing,
    construction, engineering, and so you're able to retrain--they
    are working on developing this program now on retraining people
    into various careers, and you're able to do that in a very
    consistent manner. Just as Mr. Mullins discussed, when you have
    consistent training, you can get to a place where all workers
    are learning the same craft in an even-paced way. So a lot of
    exciting technologies.
        Senator Wicker. Mr. Blau?
        Mr. Blau. Thanks. It's a great question, and I just wanted
    to tell you that I have the great opportunity to talk to many
    businesses around the world, both in core business market and
    consumer as well. The inquiries that come to my desk are wide
    ranging, and in terms of creating jobs, we can see
    opportunities in the retail sector, in insurance, in training,
    in science and education, manufacturing, and I could go on and
    on about the list. So we really think that there's an
    opportunity for this technology to be put into businesses for a
    wide variety of use cases.
        I liked your question, though, about how many different
    people could use the technology. We think it could be used from
    children all the way through adults and elders, too, and in
    businesses and the consumer domain, and not only in just the
    United States, but there are a lot of use cases we see in
    foreign countries. I have the great opportunity to travel to
    Asia and to Europe, and I get a lot of questions there about
    how to use the technology.
        So we really think it can be broadly applicable, and we
    think it can create jobs, and not only that, but we think it's
    going to be beneficial to all of these industries that want to
    use it because it's going to improve productivity, maybe give a
    great entertainment experience, and that alone will create a
    lot of jobs in the future.
        Senator Wicker. Well, thank you very much.
        Mr. Chairman, if you'll indulge me for another second or
    two--Mr. Mullins, you thought enough of your alma mater to
    mention it in your opening statement. I'm on the Board at the
    Merchant Marine Academy and very proud to be an active member
    of the Board. Are you a member of the Alumni Association?
        Mr. Mullins. Thank you for the question. I think that I
    will be in the near future. Thank you, Senator.
        [Laughter.]
        Senator Wicker. They could use you, and I would have to
    say--and I think you would agree--that the skills you learned
    as an engineering student have served you well in your chosen
    career.
        Mr. Mullins. Without a doubt. I think that the skills and
    the broad applicability of engineering across the Merchant
    Marine and all the factors involved definitely helped in how I
    conceptualized augmented reality being deployed in the
    workforce.
        Senator Wicker. And that semester at sea made you a well-
    rounded person, don't you think?
        Mr. Mullins. Yes, sir. One of the best experiences of my
    life.
        Senator Wicker. Great. Thank you so much.
        Thank you, Mr. Chairman.
        The Chairman. Senator Wicker, I was just waiting for the
    fundraising pitch there.
        [Laughter.]
        The Chairman. Senator Peters?

                    STATEMENT OF HON. GARY PETERS,
                       U.S. SENATOR FROM MICHIGAN

        Senator Peters. Thank you, Mr. Chairman.
        Fascinating testimony here today, and I had the pleasure of
    seeing some of the applications before the hearing here, and I
    appreciate you bringing some of your applications for us to
    experience.
        But, Mr. Hanke, I want to continue to go down the lines of
    your concerns about cybersecurity, something that I worry a
    great deal about. Being a member of the Commerce Committee here
    and also a member of the Homeland Security Committee, I believe
    that probably our most significant threat that we face is cyber
    threats to industry and to national security issues and, in
    particular, to small businesses.
        Your business--you talked about as you launched the Pokemon
    GO the number of cyber attacks that you had repeatedly. I know
    you're a fairly small company of 75 employees, a startup,
    incredibly successful, but nevertheless not large enough to be
    dealing with all of the whack-a-mole that you deal with, as you
    mentioned in your testimony.
        I actually have introduced bipartisan legislation called
    the Small Business Cyber Security Improvement Act, which we're
    hoping will create more collaboration with small businesses,
    the Department of Homeland Security, SBA, and other ways in
    which small businesses can learn some best practices, perhaps,
    or some things that they need to be aware of. But I'd be
    curious as to some of the lessons that you learned in dealing
    with those cyber attacks, something that might be helpful for
    us as we're thinking about how we assist other small businesses
    who have great ideas but are also potentially exposing not only
    themselves and their customers, but the wider net of potential
    cyber attacks.
        Mr. Hanke. Well, I welcome the opportunity to raise
    awareness for that topic some more, so thank you for bringing
    it up. In terms of what lessons did we learn, the variety of
    attacks and the origin of those attacks is worldwide. It was
    eye-opening to really understand that those attacks are coming
    in from all quarters and the degree of really smart engineers
    out there in many places around the world that perhaps lack
    opportunity to pursue other things and devote themselves to
    these kinds of attacks and formulating them.
        The sophistication of these attacks is impressive, from a
    technology point of view. It is not something I think a company
    that doesn't have experience and doesn't have substantial
    resources is going to be successful in fending off. So the idea
    of best practices and sharing that, I think, is a sound one. It
    takes resources to implement those. It costs money.
        A good place to start might be with the cloud providers
    themselves, Amazon and Google, you know. A lot of people host
    on those services, and I think they do a very good job. But
    that is kind of the first line of defense, and then beyond
    that, there are additional things that companies have to do at
    the corporate network level, as well as at the product level.
    So I'm afraid I don't have a magic solution for you, other than
    just at this point having an expanded appreciation for the
    degree and sophistication of what businesses are up against.
        Senator Peters. Well, I appreciate that. I appreciate that
    we don't have a magic wand, but that's something we obviously
    have to be thinking about every day.
        Mr. Pierre-Louis. Senator Peters, that's a great question.
    One of the things that companies are doing more and more now is
    building in cybersecurity and data security into the design of
    all the applications, and that's as necessary as having a lock
    on your door now, because we know it's a threat. It's been
    reported on, and it happens.
        One of the helpful developments over the past few years has
    been the DOJ and FTC working together to provide some rules
    that allow for information sharing, for example, among and
    between companies so that they can analyze threats and
    sometimes even work with law enforcement, and I guess I would
    encourage lawmakers to continue that encouragement and to
    continue that practice, because you learn a lot by
    collaboration, and knowing that you don't have the threat of
    litigation for doing so or an increased threat of other matters
    is helpful. So I guess I would encourage continued
    collaboration and encouraging that collaboration.
        Senator Peters. Thank you.
        Yes?
        Mr. Calo. Thank you, Senator Peters. One thing I would
    say--and this applies more broadly than augmented reality,
    certainly--is that it's not just the companies by themselves
    that are able to identify issues. It's also researchers. One of
    the problems that we as researchers face is that we worry that
    our reverse engineering or our attempts to figure out what the
    flaws might be with a device will be met with legal challenges,
    so, for example, if you're poking around in the software in the
    firmware that you're violating the Computer Fraud and Abuse
    Act, or perhaps you're violating the anti-circumvention
    provision of the Digital Millennium Copyright Act.
        So I think the one thing that the government can do is to
    make it absolutely crystal clear to researchers that they're
    allowed to look into these products, like Internet of Things
    and augmented reality, to make sure that they are as safe as
    can be and to identify flaws. I think that would be very
    empowering to the research community to help with the
    cybersecurity effort.
        Senator Peters. Right. Thank you. I appreciate it. I'm out
    of time.
        The Chairman. Thank you, Senator Peters.
        Senator Daines, do you want a minute, or do you--I could
    ask some questions in the interim, but if you're ready, go
    ahead.

                    STATEMENT OF HON. STEVE DAINES,
                       U.S. SENATOR FROM MONTANA

        Senator Daines. Thank you, Mr. Chairman. It's just-in-time
    manufacturing here.
        [Laughter.]
        Senator Daines. Speaking of that, prior to my time in the
    Senate, I spent many years helping build software companies and
    so forth in remote places like Montana, believe it or not.
        So for Mr. Pierre-Louis, can you talk about the job
    creation potential in the AR space, particularly in rural
    communities?
        Mr. Pierre-Louis. Sure. What we're seeing with augmented
    reality and what we're seeing with mixed reality is an ability
    to train from afar, communicate from afar, and to collaborate
    from afar, so there are lots of opportunities. I think about
    education, for example. Earlier, I talked about the fact that
    Microsoft was using HoloLens to create online tutorials for a
    number of jobs. Those that have been highlighted are nursing,
    construction, engineering. But in rural communities, you can
    also do a lot of training and a lot of repairs. So I think it
    allows for that collaboration while at the same time providing
    a consistency to that experience.
        Senator Daines. One thing we're seeing is what used to be a
    liability when I was kid growing up north of Yellowstone Park--
    we always thought it was an asset, but the rest of the world--
    it's funny--it's a tremendous quality of life asset, where you
    can have your cake and eat it, too, particularly for the
    digital natives. We can attract and retain truly world-class
    talent. They don't want to go anywhere else, because they don't
    have traffic jams, and they're 15 minutes away from world-class
    skiing and backpacking and so forth.
        Speaking about the next generation, a question I have is
    you think of the AR-VR industry--it's expected to reach
    revenues, my understanding is, of $100 billion kind of numbers
    by the year 2025. What types of skills do you believe younger
    generations need to focus on to fill these new jobs created by
    this industry?
        Mr. Pierre-Louis. Well, there are a couple of different
    things that we've seen in our industry. First, in terms of our
    consumer base, we have a very digital, very active base, and
    they let us know what they think of everything from game plots
    to return policies. So you get a lot of feedback of what's
    important. One of the things that has become very important is
    opportunities not only to play the games, but to learn how to
    make the games. So that ability has led people to lots of other
    things. For example, there are 131 schools in California that
    have video game programs, and those game programs can lead you
    to jobs in aerospace, not just in games. So there are lots of
    opportunities to do that.
        But what we're also seeing is because they want to get into
    game design, they're actually very interested in more STEM, and
    the more STEM you learn, the more you can play in this space,
    because we are becoming a very digital society and you need to
    understand from an early age, not just algebra, but how you put
    it all together. I think it is actually motivating lots of
    younger people, and it's actually having a spike in women and
    minorities wanting to get into these fields because it's much
    more exciting. It's almost a back-door way of getting people
    more into science, generally, because you come in on the game
    end, and you end up making simulations for airliners.
        Senator Daines. Yes. In the time I have left, I want to
    switch over to vehicle safety.
        Mr. Mullins, thank you for the great demo. Montana has the
    second highest rate of vehicle ownership per capita in the
    Nation. We lost over 200 lives last year in Montana on the
    roads. We heard today that AR is one of the most powerful ways
    to improve safety on the road. I don't doubt that at all.
        In rural areas, we drive on gravel roads. We drive in very
    unpredictable conditions. We have elk and deer, sometimes
    bison, crossing the roadways, and we have roads, in fact, that
    don't even register on GPS. A driver could be on the road for
    hours without seeing another car.
        We have folks who come out to Montana from the cities.
    They're frightened when traveling with me in my pickup. They
    won't see another vehicle for many, many--you know, extended
    periods of time during the night, and I tell them, ``We're
    safe. If we break down, there'll be a rancher that'll be here
    and be very kind. He'll take care of us.''
        So how can you explain--or could you explain how these
    safety benefits will translate to rural America where we have a
    disproportionate share of the automobile fatalities in our
    nation?
        Mr. Mullins. Senator, this is an excellent application for
    augmented reality in vehicles, both in newer vehicles and more
    and more with the option to easily upgrade with aftermarket
    products. Cars, through their automated driver systems and more
    and more automation--they have sensors. They have a wealth of
    information to understand some of the problems that you
    described. You know, elk in the road is not a funny issue, and
    it seems like something that we could very easily fix by
    tapping into the sensors that are in the vehicle that
    understand that there's an obstruction, there's something else
    there, and to be able to visually call to the attention of the
    driver in a way--in an amount of time that they can react to it
    and they can respond to it.
        You know, it starts with something seemingly simple like
    that, saving a small number of lives and then expanding and
    looking at how those sensors that are designed for autonomous
    driving in urban environments could be adapted to take that
    same sense of awareness that the vehicle gets and adapting them
    specifically to the hazards of rural driving and the unique
    requirements there that could lead to saving lives.
        Senator Daines. Thank you.
        It's amazing how fast 5 minutes goes by, Mr. Chairman, so
    thank you.
        The Chairman. Thank you, Senator Daines. You asked a number
    of questions that I was going to ask, so I'd like to associate
    myself with the questions from the Senator from Montana.
        And, Mr. Hanke, those roads that don't show up on most
    maps--does Google Earth and Google Maps capture those roads in
    Montana that Senator Daines drives down?
        Mr. Hanke. Well, it sounds like there's some more work to
    do there. I will contact my colleagues at Google and let them
    know that there's room for improvement in their products.
        Senator Daines. Except for that road to my favorite elk
    hunting spot. I want to keep that private.
        [Laughter.]
        The Chairman. He doesn't want that to show up on any map.
        Thank you, Senator Daines.
        So, Senator Booker, have you played Pokemon GO?
        Senator Booker. I refuse to answer that question on the
    grounds it might incriminate me.
        [Laughter.]
        The Chairman. Well, I was hoping that perhaps you could
    counsel Senator Nelson and I about how to do it someday, maybe
    walk us through it.
        But, anyway, Senator Booker is probably one of the highest
    tech Senators we have on our Committee.

                    STATEMENT OF HON. CORY BOOKER,
                      U.S. SENATOR FROM NEW JERSEY

        Senator Booker. Mr. Chairman, you'll have to forgive me,
    because I literally have to dart out, but I didn't want to do
    so without just thanking everybody for being here and thanking
    you for your testimony.
        Mr. Calo, I really appreciated your white paper about a lot
    of the legal issues and a lot of the other concerns. I'm really
    excited about this space. I don't think we even understand
    fully how it can be enhancing life, especially--there are a
    number of us who have gotten together on a bill around the
    Internet of Things--just the potential for health, well-being,
    safety, education, and learning. It's just such an
    extraordinarily exciting world.
        This is a wonderful bipartisan space, because I've been
    very vocal on the Commerce Committee about how our regulations
    are choking a lot of innovations, and we need to make sure that
    we create a nurturing environment where we can continue to be
    the number one exporter of innovation here in America. You
    know, I joked in another hearing about how we had a regulatory
    framework for drones that was so choking and forcing drone
    innovation to go into other countries that, frankly, if that
    kind of regulation was around during the time of the Wright
    brothers, we would have never gotten the airline industry off
    the ground here.
        So I'm very excited about it. But one question I wanted to
    ask before, literally, I sprint out for a meeting is that one
    of the other areas or the problem that we have as a result of
    this--and I really appreciate, Mr. Pierre-Louis, your comments
    about diversification and even a richer pipeline of diversity
    coming into STEM subjects. But I have this continuing concern
    about the fact that we do not have a level playing field in
    terms of access to the Internet right now, access to broadband,
    and what that could mean, especially as these new opportunities
    are coming.
        In terms of a fair playing field, does anybody have any
    ideas about what we should be thinking about in terms of the
    government's obligation to try to make sure, as this
    superhighway is sort of taking people to these new worlds of
    innovation and opportunity, that folks are not being left
    behind? I didn't know if anybody would want to comment on that.
        Mr. Hanke. I would love to comment on that. You know, as
    somebody who grew up in a rural area, in my case, west Texas--
    I'm headed back there to visit my family at the end of the
    week. I will arrive there, and I will not be able to use the
    products that I work on there, because I will be limited to 3G
    service when I arrive.
        I do think it's an important issue, not only to access the
    products that people are bringing to market, but to inspire the
    youth there to know about these things, to be aware of them, to
    pursue careers in that area. Virtually all of our
    communications and much of our learning and access to
    information now is moving to mobile devices, and if one is
    sipping through a narrow straw in terms of the ability to
    consume information, to pursue opportunity there, that does
    feel like a very limiting factor to me.
        I am certainly empathetic to the youth growing up in my
    hometown. I would like for them to discover and be inspired by
    opportunities that will lead them to a happy and prosperous
    future. A lot of those opportunities now are coming through
    that pipe. So if government can broaden it, that strikes me as
    a very good thing for the government to put its weight behind
    and to achieve.
        Senator Booker. Mr. Chairman, with that, I'm going to say
    thank you. I just want to--again, having read the white paper
    that was about a lot of fears and concerns, I hope--when we
    have new innovations going on--that we don't allow a lot of our
    fears of the worst case scenario force us to over-regulate or
    do things that inhibit thinkers and imaginers and innovators
    from doing their work. That's one area I really do think
    there's a lot of bipartisan commitment to. So thank you very
    much, and forgive me for not being able to stay longer.
        The Chairman. Thank you, Senator Booker, and not only on
    that issue, but also on the extension of broadband all over the
    country. There are a lot of places where I come from, too, that
    you can go to where you wouldn't be able to do the things that
    we're talking about here today.
        Senator Booker. In New Jersey, we're very concerned about
    buffalo crossings as well.
        [Laughter.]
        The Chairman. Buffalo and elk and--yes.
        Let me just ask a few questions here as we wrap up.
        Mr. Mullins, one of the major impediments to the successful
    deployment of any technology is consumer adoption, and DAQRI's
    technology is largely designed for industrial applications.
    What barriers do you anticipate with regard to broader consumer
    adoption?
        Mr. Mullins. I think that's a great question. I think one
    of the largest barriers to transitioning to consumer adoption
    is actually the issue of the industry over-promising and under-
    delivering. The consumer expectation is very high, and there
    are the natural price sensitivities. When you roll out a
    technology to the enterprise first, the costs of the technology
    are measured by the return on investment and the value that is
    created in the enterprise.
        I think we expect the augmented reality industry to follow
    the trends of the cellular telephone. Phones didn't start out
    as smartphones. They didn't even start out as the bricks we
    remember. They were first briefcases. They were very expensive
    and had limited coverage. But if they kept you connected and
    allowed you to make a decision, they were worth the investment,
    and that investment from enterprise created the infrastructure
    that ultimately led to consumers.
        Technology moves a lot faster today, so I don't think it
    will take decades. But it will be slow, and I think that both
    regulations and the industry needs to do a good job of setting
    the expectation of consumers and fostering the development of
    augmented reality in the spaces that make a big impact today.
        The Chairman. Mr. Blau, thoughts on the same subject,
    barriers to consumer adoption?
        Mr. Blau. Sure. Thank you for the question. It's a great
    question. The consumers, as Mr. Mullins said, are quite fickle
    and they have a high expectation of quality. And to be honest,
    augmented reality technology, as well as virtual reality, are
    not the same as what we see in video games today, for example,
    or special effects in movies, or even the quality of the apps
    that you have on your smartphone. You could say that the AR and
    VR--the quality of the experience is quite low today.
        So one of the things that we ask you is to provide for an
    opportunity for innovation. Software developers, hardware
    developers must have the opportunity to create these
    exceptionally good experiences, and it won't be until then when
    we are able to put those technologies forward in the consumer
    market.
        Not only that, but there has to be a clear price-to-value
    relationship. That's really critical, and that can't happen
    until the manufacturing is set up to be able to produce these
    devices at a mass market level. We're not talking tens of
    millions. We're talking hundreds of millions or billions of
    devices that need to get into market, and that is when we would
    think that the consumers would be ready for it. So the
    manufacturing is one.
        Part of it has to do with the transparent display that you
    saw in the augmented reality headsets in the demonstrations.
    Those are relatively new inventions, and so those have to be
    developed over the next few years, and when they get good
    enough and, to be honest, to be like my glasses here, that's
    when consumers will think about adopting the headsets.
        But also augmented reality may not come on a headset first.
    It may come in a smartphone or another form factor. So there
    are lots of different ways that augmented reality could come to
    consumers, for example, having a window which you can look
    through and see something on the other side that's augmented in
    a particular way, like an airplane window, for example, or even
    going to a store to try on clothes through something called a
    smart mirror. You stand in front of it, and it's an augmented
    reality experience that can show you different clothes and what
    they would look like rather than having to try them on. So
    those are some of the technologies that have to develop before
    it's really going to hit the consumer.
        The Chairman. Mr. Pierre-Louis, last year, this committee
    held the first congressional hearing on the Internet of Things,
    and we heard input from industry on how lawmakers should or, in
    some cases, shouldn't legislate to foster innovation. Today,
    we're holding another first of its kind hearing on augmented
    reality, which I think is a very exciting and emerging
    technology with tremendous potential.
        What can we as lawmakers do to help this technology
    flourish? Or maybe even more importantly, what should we not do
    so that we don't in any way hinder the innovation that's
    happening out there?
        Mr. Pierre-Louis. That's a terrific question. Let me tell
    you one of the things that our industry has done to meet market
    concerns, and that's a great template for how we develop our
    practices. In the sphere of providing information about games,
    we've got a rating system where we provide age appropriateness
    and some content descriptions to tell parents what's in the
    game. So not only is it E for everyone or T for teen, but what
    are the kinds of things you might see in there, and there's
    comic mischief, mild violence--they'll have different lists of
    things.
        But when you get into the mobile environment, and people
    are moving around, you need different ways of allowing people
    to understand what's happening in the app world because some of
    those games are--and not just games, but other programs are
    getting rated as well, and so the industry created new
    descriptors on interactivity. So it tells you if you are
    sharing your location in a game or if you're on a chat function
    or if there's in-app purchasing.
        So if you were to download the Pokemon GO app on the Google
    Play store, it'll tell you you're sharing your location, and
    there are in-app purchases. What it won't say is there's user
    chat, because there's no chat between users. It's really meant
    for people to play or parents to play with their kids. It's an
    individual game. That allows users to understand in a very
    simple way what they're getting, and that's an innovation that
    developed because consumers wanted to know more about it.
        I think allowing that kind of development to occur makes
    the most sense, because it's meeting consumer demand. There's a
    lot of acceptance, and what we're seeing is 86 percent and
    higher of people not only aware but really appreciative of what
    we provide. And when the FTC comes and looks at the programs
    that we do, they laud them and say, ``You're doing it the right
    way. You're the gold standard,'' both in terms of our ratings
    and also our privacy offerings. So I think allowing that kind
    of market dynamism to grow is the right approach, and then to
    report back what's going on so that regulators and policymakers
    see that the marketplace is working.
        The Chairman. This technology, augmented reality, is on
    track to be a very disruptive technology in a number of
    different markets. Why has America been able to lead the
    effort, and how can America maintain its position as a leader
    in the field as AR technology becomes more prevalent? And I
    guess I would--Mr. Pierre-Louis, Mr. Blau--anybody on the panel
    that would like to respond to that question.
        Mr. Blau. Thanks again for the question. It's a great
    question. I just want to point out that it was the United
    States military that had a big part in the invention of the
    computers, per se. In the 1960s, there was a famous professor,
    Ivan Sutherland, that created the first head-mounted display at
    the University of Utah. In the 1980s, it was American inventors
    that brought forward virtual reality and pioneered computer
    graphics.
        So these are innately American inventions, and I'm not
    saying that there are other parts of the world that haven't
    contributed. But through the great universities and the
    opportunity that we've had as Americans, there has been this
    concentration that's here. But part of the industry today is
    not in the United States. It's in Asia, and that's the
    manufacturing. So part of what these companies are producing--
    they can design them here, but they can't manufacture them
    here, not all of them.
        So it's not an even playing field around the world. If we
    potentially could enable more businesses in the United States
    to make advanced technology in a way that is competitive
    globally, that would be a great help.
        The Chairman. Mr. Calo?
        Mr. Calo. I think that's a great question, Chairman. I just
    want to point out that with respect to one of the previous
    transfers of technology of our time, the Internet, the
    military, once again, was absolutely instrumental in creating
    the Internet, and, as well, the American universities were
    instrumental.
        But one of the reasons why even today, the United States
    remains dominant in terms of the Internet is because in the mid
    1990s, we wisely immunized platforms for what users do on those
    platforms in the form of Section 230 of the Communications
    Decency Act. That immunity allowed the platforms to be open and
    to flourish and to have all kinds of contribution. Getting that
    right first, I think, gave us an enormous competitive
    advantage.
        Here, there may be analogs to make sure we understand where
    liability is distributed, to make sure that we have adequate
    privacy and security to the point that consumers feel
    comfortable, just as they had to once get comfortable with
    banking online. So I understand the need not to impede
    innovation through regulation. At the same time, sometimes we
    can clarify liability and privacy rules in ways that permit the
    technology to flourish.
        Mr. Hanke. I'm glad you're raising that question. I do
    think that AR represents one of those big transitional moments
    in technology. You know, we saw the move from the mainframe
    computer and IBM, and sort of the mantle was inherited by
    Microsoft, and we saw companies like Apple step in and kind of
    inherit the mantle in mobile and Google in web services.
        AR represents one of those transitions, and it means there
    will potentially be new industry leaders, new very large
    companies that emerge. In the past, those have been U.S.
    companies. This time, it's a jump ball. It's not guaranteed
    that the successors are going to be U.S. companies. We operate
    in a global economy. I don't think it necessarily should be our
    expectation that we just naturally inherit that. We're going to
    have to go compete for it. But what we can do is create an
    environment where the companies here do have an equal playing
    field in terms of competing to be those leaders in that next
    generation of technology.
        Having clarity around issues such as privacy with our
    colleagues in Europe so that we actually understand what the
    requirements are for a U.S. company to operate in Europe--
    that's an area where there's some ambiguity at the moment--
    market access in countries in Asia where it is currently very
    difficult or impossible for U.S. companies to offer services--
    those are things that are impediments to the ability of
    American companies to compete in this important market.
        Mr. Pierre-Louis. I'll just also add real quickly that our
    markets really encourage innovation, and that innovation is
    allowed to sprout in all manner of places, and that's the
    beauty of these new technologies. So when we think about new
    technologies and tech spaces, we think of places like Silicon
    Valley; Redmond, Washington; Silicon Alley in New York.
        But then you have a company like Magic Leap, which is one
    of our members, that's creating mixed reality technology.
    They're based in Fort Lauderdale, not a place where people
    really think about as a technology hub. But by having someone
    create an idea and others coalesce around it, they now have
    more than 800 employees here in the U.S., maybe up to 1,000 at
    this point, all around an idea of innovation. So you can create
    new hubs around this idea of innovation and market-driven
    forces. That's what's exciting about what we do here.
        The Chairman. Well, we're waiting for a Silicon Prairie to
    strike in South Dakota. Any time you guys want to bring your
    companies out there, we welcome them. We've got a great
    business climate. The actual climate this time of the year can
    get a little cold.
        Senator Blumenthal has arrived.
        Senator Blumenthal?

                 STATEMENT OF HON. RICHARD BLUMENTHAL,
                     U.S. SENATOR FROM CONNECTICUT

        Senator Blumenthal. Thanks so much, Mr. Chairman. Thanks
    for having the hearing.
        As many of you may know, the incidence of traffic crashes
    and deaths has increased. In fact, according to the National
    Highway Traffic Safety Administration, there were 17,775
    traffic deaths within the first 6 months of 2016, which is an
    increase of 10 percent above 2015. And in 2014, the Department
    of Transportation found that over 3,000 people were killed and
    430,000 injured in car crashes that involved distracted
    drivers.
        An article from just yesterday's New York Times blames the
    new mobile apps, many of them employing augmented reality
    technologies, as major contributors to the rise in traffic
    deaths due to distracted driving. I'm not going to quote from
    the article. You may have seen it. But it indicates that,
    unfortunately, the misuse of such applications has already
    resulted in a lot of deadly disasters.
        So my question is--beginning with Mr. Hanke--how has
    Niantic responded to this dramatic increase in distracting
    driving as a result of your products, most especially--well,
    some of the ones that have been mentioned here so far this
    morning?
        Mr. Hanke. I'm very glad you raised that issue. As a
    parent, you know, I've got teenagers that are learning to
    drive, and just as somebody out on the highways, it's certainly
    an issue that I think is a big one and that we have to wrestle
    with and try to improve the current situation.
        With regard to the New York Times article, I'll take this
    opportunity to correct the statement that they made about
    Pokemon GO players being able to play Pokemon GO while driving.
    We've actually adopted what I think is an industry-leading
    policy to disable operation of the application in terms of
    capturing Pokemon or accessing the Poke stops in the game when
    the person is moving above a speed that is reasonable for a
    person to walk or run. So that is the current state of the
    game, and that's what we've done to try to mitigate this.
        At the same time, I think it is, to some degree, an issue
    of personal responsibility. There are other contributors to
    distracted driving as well. In one of the studies I read
    recently was that consumption of food in the car was actually
    one of the leading causes of traffic accidents. But I do think
    it's an important problem, and we've taken it upon ourselves to
    proactively limit the use of our application in that situation.
        Senator Blumenthal. Why is not the use of Pokemon GO unsafe
    at any speed?
        Mr. Hanke. Well, it is safe when you're walking. Many
    people like to walk and jog to use the application. It's an
    activity that we encourage.
        Senator Blumenthal. But if you're driving at any speed,
    isn't it unsafe?
        Mr. Hanke. It is a question of what we can detect and
    control within the application. We do not have a mechanism to
    detect when somebody is driving, per se. We have the ability to
    detect their speed of movement. Whether they're a driver, a
    passenger, a bike rider, a runner or walker, we don't have a
    definitive way of understanding that. So since we don't have
    perfect information, we use speed as the----
        Senator Blumenthal. So you're saying that the app doesn't
    detect what the activity is that causes the speed.
        Mr. Hanke. That's correct, yes.
        Senator Blumenthal. Why isn't that possible, and why
    shouldn't you then just say anybody who's moving is putting
    themselves or somebody else at risk? And that, until we figure
    out a way to detect the difference between somebody walking,
    jogging, driving, any speed will, in effect, deactivate this
    program? My feeling is someone distracted by this kind of
    activity is unsafe at any speed.
        Mr. Hanke. Well, we've taken a position which, again, I
    think is--I'm not aware of any other applications in the
    industry that are doing what we're doing, which is stopping the
    use of the application above a speed that a human could move
    walking or running. In terms of going even further and
    eliminating the use of the application at any speed whatsoever
    that would inhibit somebody from using it while they're walking
    or jogging, personally, that feels like a step too far to me in
    terms of limitation on the ability to use such an application.
        Senator Blumenthal. Well, my time has expired. This has
    been a very useful and informative session. Again, I thank the
    Chairman for holding it. There are a lot of other questions
    that I have. I'll submit them in writing and look forward to
    your responses, and thank you for being here today.
        The Chairman. Thank you, Senator Blumenthal.
        I also want to echo what the Senator from Connecticut just
    said, and that is that we do appreciate you all being here and
    for sharing your insights about this. This is a really exciting
    field with lots of moving parts, many of which have been
    addressed today, and you've heard some of the concerns
    expressed as well. But we want to be in a position where we're
    enhancing the advancement of these technologies and innovation,
    not getting in the way of it, obviously interested in all the
    safety issues and privacy issues that are associated with any
    discussion of this subject.
        But thank you for the light that you've shed on it today,
    and we'll look forward to continuing the dialog and discussion.
        Senator Blumenthal has additional questions. Perhaps other
    members do as well. We'll ask them to submit them. We'll keep
    the record open for 2 weeks, and during that time, we're asking
    that Senators submit any questions for the record and that the
    witnesses as they receive them, as soon as they can, submit
    those answers back to the Committee.
        So with that, thank you again, and this hearing is
    adjourned.
        [Whereupon, at 4:28 p.m., the hearing was adjourned.]

                                A P P E N D I X

        Response to Written Questions Submitted by Hon. Marco Rubio to
                                   Brian Blau
        Question 1. As we conduct our oversight role as lawmakers, how can
    we ensure that technology start-ups, like Magic Leap, are able to
    continue to advance in the 21st century economy without imposing
    unnecessary red tape?
        Answer. Red tape exists in many forms, and for augmented reality
    technology there are 4 areas that stand out as important when
    considering adding more or removing red tape: (1) purchasing and
    accessing technology components, and then selling technology products
    in the global market, (2) hiring qualified workers, (3) protecting
    intellectually property, (4) technology certifications. Each of these
    areas have established laws, rules, and oversight organizations that
    often times pose obstacles in how a business wants to create technology
    and products. My comments here are not meant as a debate about the
    usefulness of red tape situations, but the one important point to be
    raised about augmented reality is that despite the hype and media
    attention it's a very new technology that needs time, lots of time, to
    mature. Red tape during this critical phase of development for
    augmented reality will only cause its growth to be held back.
        During the next 5-10 years it's imperative that companies, like
    Magic Leap, have the resources necessary to develop and innovate as
    needed and operate unrestricted. Pre-guessing the level of augmented
    realities capabilities in the future to make new laws today, for
    whatever reason, should be carefully considered as these companies
    don't yet know fully how their future products will bring value to
    their customers. I do urge you to monitor, for example, how augmented
    reality would impact topics like privacy and security, but it's still
    too early to determine any new laws will be needed.

        Question 2. In your opinion, would current regulations placed on
    the gaming and computer industry be appropriate to apply to this new
    generation technology?
        Answer. Yes, in general, the existing laws on video games and
    overall computer technology are sufficient today to allow for the
    invention, innovation, product development and sale of augmented
    reality technology. Evidence is the proliferation of American
    technology globally, and our standing in the global technology market
    provides a great example of how a government can effectively help
    businesses flourish. That said, some issues, like repatriation of
    offshore funds and the ability to compete globally should be monitored
    and law subsequently adjusted as optimizing these programs could
    benefit U.S. companies in the future.
        The most valuable way to help augmented reality businesses to
    profit is to promote the value of its technology across the spectrum of
    business operations. Help a business innovate and invent by not adding
    restrictions that hold back any type of early research, development, or
    deployment of products in this area.

        Question 3. Autism is an issue I feel very passionate about and
    have worked on going back to my time in the Florida legislature. Some
    have suggested that augmented reality games can benefit people on the
    autism spectrum in terms of getting them out of the house and
    developing their social skills. Is the industry doing any of its own
    scientific research to determine the actual benefits of augmented
    gaming to people on the autism spectrum?
        Answer. I'm positive that augmented reality technology can help
    those impacted by autism as its been helpful in many areas of medical
    and health fields. Typically, a technology company tends to focus on
    general use cases, and that is what we are seeing with most augmented
    reality technology providers today. Unfortunately, the answer the
    Senators question means that there isn't an industry initiative on
    autism, at least to any large degree. What we do see efforts from the
    medical profession in how augmented reality can impact research,
    diagnosis and treatment of autism. It's appropriate that any
    advancement come from the medical industry given the unique
    requirements for any technology use in healthcare.
        That said, I can imagine (without being a trained medical
    professional) that augmented reality can indeed help in many situations
    with regard to autism. Augmented reality can be used in social
    situations to bring together people who are not physically in the same
    place. It can be used in ``training'', and for autism I can imagine
    this means therapy using techniques like video games and interactive
    media content to stimulate thinking and reasoning. Augmented reality
    will be a great tool for training in scenarios that need to be
    practiced and repeated, or even providing simulations of real
    situations to help prepare those with autism for all types of daily
    life.

        Question 4. What would you say our high schools and universities
    can be doing better in the coming years to ensure that people in
    Florida and in the United States acquire the skills and preparation to
    fill these jobs?
        Answer. The best way to prepare for developing augmented reality
    technology, and what I would tell my own family and children, is to be
    educated. An agenda of learning in science and technology as well as
    business are important base layers for anyone who wants to be part of a
    technology development company. My own experience also mirrors that
    line of thought. I was fortunate to grow up in Orlando Florida where I
    attended Lake Brantley High School in Altamonte Springs, and then I
    received a Bachelor and Masters degrees, both in Computer Science from
    the University of Central Florida. In all three I was given and then
    took the opportunity to advance my interests in technology and it's as
    important as any to support these institutions in the same way they
    supported me.
        Preparing to use augmented reality, vs making the technology, is
    easier. If made well and if designed for optimal use cases, augmented
    reality technology will be easy to master as it's designed with the
    person in mind. Typically, the user interface in augmented reality
    applications is natural and supports human gestures and voice. If done
    well I would expect augmented reality to be more easily adopted than
    even basic PC computers, which required detailed knowledge of a
    keyboard, mouse, and intricate on-screen movements and manipulations.
    For augmented reality the driving use case is the person and their body
    movements, so any training should be focused in the more general use of
    computing in the workplace.

        Question 5. What message would you like to send to educators and
    students alike about the industry's future and the opportunities it
    presents?
        Answer. My message to educators and students on is simple: use and
    develop augmented reality (and its close cousin virtual reality) as it
    represents one of the most important next generation technologies that
    you will need to understand and use over the coming decades.
        This means, focus on science, technology, math and business as a
    way to prepare institutions and individuals as they prepare to be part
    of the next wave of computing. Augmented reality and virtual reality
    are hyper-personal technologies, ones that we have and wear close to
    our bodies and ones that have the ability to mesh with the human
    perceptual system in ways that have never been available. This means
    future technologists will need to better understand the human condition
    and how it reacts to an environment filled with sensors and screens.

        Question 6. The interface created by these new technologies can be
    a tremendous asset to the Department of Defense, especially for
    training. How can the Department of Defense collaborate with innovators
    to push the limits of mixed reality technologies to ensure our men and
    women in uniform continue to be the best trained and equipped fighting
    force on this Earth?
        Answer. In drawing from my own experience attending, and then
    working as a research scientist at the University of Central Florida on
    virtual reality technologies, I observed one of the best methods for
    providing the crossover between military and education.
        In Orlando, at least in the 1980s and 1990s, there was an explicit
    program to transfer core computer technology out of secret military
    programs into the public domain. I was a beneficiary of that program at
    UCF and its Institute for Simulation and Training that the U.S. Navy
    and Army funded. This program in part was based on use of military
    equipment, access to military contractors, direct funding of virtual
    realty projects, and promotion of what was developed into the education
    and science community. As we look back, that technology transfer was is
    now seen a basis for how we all now have advanced real time computer
    graphics today.
        I fully encourage future programs that marry the ability of the
    U.S. military with advanced educational needs as it's a proven method,
    and in fact is one of the reasons that I'm providing these answers to
    you today.
                                     ______

         Response to Written Question Submitted by Hon. Joe Manchin to
                                   Brian Blau
        Question. As a former Governor and in my role as a United States
    Senator, I have remained committed to enhancing the job climate in my
    state so that West Virginians have good paying jobs and the skills to
    compete in the global economy. Part of this job growth is going to come
    from the technology sector. We are beginning to see an uptick in
    technology startups in different parts of the state, but I believe
    there are opportunities for tools such as augmented reality to enhance
    workforce training.
        The technological advancements of the 21st century should not leave
    rural communities behind, and as West Virginia continues to develop its
    technology sector and train its workforce: How can augmented reality be
    used to train workers in the digital economy?
        Answer. This is a great question and one that hopefully can help
    shed light on how augmented reality technology can be used to
    effectively train people in workplace tasks and skills. The core of the
    benefit of augmented reality is its unique approach to delivering
    information by using sophisticated graphics seen through head-mounted
    display (HMD) devices. These devices have the capability to let the
    user see sophisticated computer graphics, they type we are familiar
    with from video games and movies, superimposed over top of real world
    objects. Its this overlay capability that is augmented realities best
    feature and is the one that is at the core benefit of how it can be
    used in workplace training situations.
        Imagine a worker who needs to be trained on various types of
    equipment. That training today can consist of reading manuals, watching
    videos, practicing on mock-ups, or on-the-job training using real
    equipment. But in many cases using the actual equipment, mockups, or
    even the videos are simply not available or sufficient enough to
    effectively train the employee, especially if the tasks require their
    hands to be busy. Augmented reality can help here as when using the HMD
    it can simulate the equipment, show it as matching overlays, and can
    train the worker over many types of situations and scenarios. The
    combination of graphics, step-wise instructions, performance analytics,
    and customizability means augmented reality will be a prime resource
    for many businesses who want to use effective training technology.
        As stated in my prepared testimony the augmented reality market is
    really just getting started in 2016, and within 5 years will we will an
    increasing number of devices come to market. The real benefit, and to
    the point of the Senator's question, is how can the technology not only
    be used for training, but also in the remote locations that are
    prevalent in West Virginia but in many parts of the country. Augmented
    reality is an inherently mobile technology and many of the device and
    system providers have features that let these devices be operated
    anywhere. Even in this early stage in the market development of
    augmented reality some devices are being made robust for environments
    outside of the normal business office or manufacturing facility. This
    mobile capability is an important one as it means augmented reality can
    be used in a wide variety of locations, possibly even ones that don't
    support wireless communications.
        In addition to being mobile, augmented reality will be a great
    communication device, bringing people together that are physically
    located in different places. Sometimes called ``telepresence'', many
    future augmented reality applications will bring people together by
    using audio, video, and combined with computer graphics will enhance
    workers ability to interact with each other and work together even
    though they are not in the same location. One great example is a field
    service technician who's job will be to monitor and repair machines and
    equipment at distant locations. A future worker, wearing augmented
    reality smartglasses, will have technology to let them directly connect
    to other employees at the home office. Not only can the augmented
    reality smartglasses provide instructions and guidance that were
    traditionally delivered in a paper manual or on a flat screen device
    like a tablet, but when connected to others the work can be
    accomplished cooperatively. The technician at the home office can see,
    via live video, exactly what the remote technician is seeing and can
    even enhance the graphics for the remote technician by drawing on their
    virtual field of view, sending additional information via the overlap
    capability, or providing voice feedback.
        The final point to note is that the training scenarios for
    augmented reality are limitless, and as its so early in the development
    of the technology I both urge you and your constituents to investigate,
    learn and invest in augmented reality technology, but to do it in a way
    that allows for and leverages its growth and maturity. Investing in
    augmented reality technology today means gaining knowledge and
    experience and as the devices and systems advance over the next decade.
                                     ______

        Response to Written Questions Submitted by Hon. Marco Rubio to
                                   Ryan Calo
        Question 1. As we conduct our oversight role as lawmakers, how can
    we ensure that technology start-ups, like Magic Leap, are able to
    continue to advance in the 21st century economy without imposing
    unnecessary red tape?
        Answer. I am aware of no augmented reality specific regulations and
    do not anticipate any in the near feature. Indeed, I believe regulating
    AR at this early stage would be unwise. That said, well thought out
    government interventions can sometimes help foster technological
    innovation.
        For example, the early decision of Congress to immunize online
    platforms such as Facebook for almost anything users do or say on the
    social network reduced the threat of litigation and preserved the
    incentives for Facebook to keep its platform relatively open and free.
    In my article Open Robotics, I discuss the potential need to immunize
    hardware providers such as Magic Leap as well insofar as they open up
    their platforms to third party innovation.\1\
    ---------------------------------------------------------------------------
        \1\ See https://papers.ssrn.com/sol3/
    papers.cfm?abstract_id=1706293.
    ---------------------------------------------------------------------------
        Privacy and other consumer protection laws are critical in that
    they help reassure consumers that new products and services are safe
    enough to try. Flexible intellectual property regimes help remove the
    shadow of litigation from new startups and allow for the sharing of
    intellectual resources. Many argue that net neutrality rules preserve
    the ability of new entrants into information service markets by
    prohibiting incumbents from blocking or slowing down competing
    applications on their networks.\2\ And of course the Federal Government
    is in a position to preempt state laws, which can sometimes create a
    patchwork of regulation that makes it difficult for companies to
    operate. Other ways the Federal Government can help companies such as
    Magic Leap include procuring their products and investing in AR basic
    research.
    ---------------------------------------------------------------------------
        \2\ E.g., https://papers.ssrn.com/sol3/
    papers.cfm?abstract_id=1684677.

        Question 2. In your opinion, would current regulations placed on
    the gaming and computer industry be appropriate to apply to this new
    generation technology?
        Answer. My understanding is that most of the issues in gaming law
    deal with intellectual property, rights of publicity, and free speech.
    In addition, the gaming industry has set its own standards around
    safety, violence, privacy, and gaming addiction. I see all of these
    issues applying with equal or perhaps greater force to augmented
    reality. AR is a product and it needs to be safe for its intended use.
    Content within AR is subject to copyright but also fair use and other
    exceptions that protect consumers and innovators. And, importantly, AR
    should enjoy full constitutional protection under the First Amendment
    as does content on the Internet and games in other formats.\3\
    ---------------------------------------------------------------------------
        \3\ See Reno v. American Civil Liberties Union, 521 U.S. 844
    (1997); Brown v. Entertainment Merchants Association, 564 U.S. 786
    (2011).

        Question 3. Autism is an issue I feel very passionate about and
    have worked on going back to my time in the Florida legislature. Some
    have suggested that augmented reality games can benefit people on the
    autism spectrum in terms of getting them out of the house and
    developing their social skills. Is the industry doing any of its own
    scientific research to determine the actual benefits of augmented
    gaming to people on the autism spectrum?
        Answer. Thank you for your important work on autism. The Tech
    Policy Lab at the University of Washington is committed to inclusive
    tech policy. The augmented reality whitepaper I submitted to the record
    discusses the potential for AR to help people with disabilities. We
    consulted with disability experts in the course of our research and
    they told us that AR has enormous potential to help individuals with
    physical and cognitive disabilities.
        We did not engage with the autism research community superficially
    but I am aware of considerable research into the ways AR could be used
    to help autistic children. For example, the Autism Glass project at
    Stanford University uses AR to help autistic children better recognize
    emotional states in others.\4\ Recent research out of Cambridge
    University leverages AR to help draw autistic children into pretend
    play.\5\ There is also an extensive literature suggesting that robotics
    can help clinical scientists study and address autism for similar
    reasons as AR.\6\
    ---------------------------------------------------------------------------
        \4\ Visit http://autismglass.stanford.edu/.
        \5\ See http://ieeexplore.ieee.org/document/7000596/.
        \6\ See https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3223958/
    (collecting studies).

        Question 4. What would you say our high schools and universities
    can be doing better in the coming years to ensure that people in
    Florida and in the United States acquire the skills and preparation to
    fill these jobs?
        Answer. A wide array of skills is needed to work in emerging
    industries such as augmented reality. These include so-called STEM
    skills, but also creative design, entrepreneurship, and the humanities.
    After all, someone has to dream up the narratives, the characters, the
    landscapes, the device design, the user interface, and the other
    aspects of AR that make it a worthwhile and wondrous experience. It is
    also increasingly clear that high schools and especially universities
    should be thinking of ways to break down barriers between disciplines
    and create opportunities for interdisciplinary collaboration. At the
    University of Washington Tech Policy Lab, one of our goals is to
    produce students comfortable speaking across disciplines. We do so in
    part by placing students into interdisciplinary teams like the team of
    computer scientists, information scientists, and lawyers that worked on
    the AR whitepaper I submitted as my written testimony.

        Question 5. What message would you like to send to educators and
    students alike about the industry's future and the opportunities it
    presents?
        Answer. I agree with my fellow panelists that augmented reality is
    already an exciting industry and will only grow, generating many
    opportunities for students with the right set of skills.

        Question 6. The interface created by these new technologies can be
    a tremendous asset to the Department of Defense, especially for
    training. How can the Department of Defense collaborate with innovators
    to push the limits of mixed reality technologies to ensure our men and
    women in uniform continue to be the best trained and equipped fighting
    force on this Earth?
        Answer. The Department of Defense has a long track record of
    fostering new technologies that ultimate become engines of American
    innovation. Augmented reality is one example; robotics and the Internet
    are two others. My hope is that the DOD can continue to fund basic
    research into new technologies to help keep the United States in a
    leadership position globally. Moreover, DOD should remain in dialogue
    with other sectors--such as athletics, medicine, and even the prison
    system--who may use AR for training purposes so that the knowledge that
    is produced in one sector can be shared efficiently across civilian and
    military contexts.
        An important component of both civilian and military use of AR is
    ensuring adequate security. Obviously insecure AR can be physically
    dangerous to the user. I am aware of several ongoing around AR security
    and would be happy to connect your office to relevant researchers if
    useful.\7\
    ---------------------------------------------------------------------------
        \7\ See, e.g., http://ar-sec.cs.washington.edu/research.html.
    ---------------------------------------------------------------------------
                                     ______

         Response to Written Question Submitted by Hon. Joe Manchin to
                                   Ryan Calo
        Question. As a former Governor and in my role as a United States
    Senator, I have remained committed to enhancing the job climate in my
    state so that West Virginians have good paying jobs and the skills to
    compete in the global economy. Part of this job growth is going to come
    from the technology sector. We are beginning to see an uptick in
    technology startups in different parts of the state, but I believe
    there are opportunities for tools such as augmented reality to enhance
    workforce training.
        The technological advancements of the 21st century should not leave
    rural communities behind, and as West Virginia continues to develop its
    technology sector and train its workforce: How can augmented reality be
    used to train workers in the digital economy?
        Answer. Augmented reality and virtual reality enhance workforce
    training by making it easier to teach new skills but also by providing
    a variety of training environments on a single platform. The
    availability of one AR headset could in theory dispense with the need
    for multiple, expensive facilities that may be difficult to maintain in
    rural communities. Thus, an individual could learn how to repair a
    robot or how to assist in a biology experiment using the same device
    and without the need for a mock repair shop or laboratory. For more
    examples--including how AR and VR could help retrain displaced or
    incarcerated workers more efficiently--please see the Tech Policy Lab
    whitepaper I submitted in connection to my testimony.
                                     ______

        Response to Written Questions Submitted by Hon. Marco Rubio to
                                   John Hanke
        Question 1. As we conduct our oversight role as lawmakers, how can
    we ensure that technology start-ups, like Magic Leap, are able to
    continue to advance in the 21st century economy without imposing
    unnecessary red tape?
        Answer. There may have been a time when start-ups in the technology
    sector could get off the ground and scale without having to be
    concerned about the policy and regulatory landscape, but I don't think
    that applies today. In developing both Ingress and Pokemon GO, we had
    to be sensitive to and be compliant with a host of laws and
    regulations, including those regarding data privacy, most notably the
    Children's Online Privacy Protection Act. Our attention to data privacy
    compliance at the early stage of the game's development proved to be so
    critically important because that was the central issue of concern from
    policymakers not long after Pokemon GO's launch.
        While we certainly understand the concerns about the impact of
    regulations on start-up formation and success, there are areas where
    greater enforcement of existing regulations and increased attention to
    cybersecurity could be very useful to a start-up's success. We
    currently face challenges with respect to Pokemon GO, for example, with
    the creation of botnets and other methods that help players advance
    through the game. These services, which violate the integrity of our
    game and threaten the value of our intellectual property, are offered
    on the open market. We have been subject to near-constant hacking
    threats and attempts, to get access to our intellectual property and to
    our user data. The legal mechanisms to combat this kind of activity are
    costly and could be a barrier to a start-up's long term success.

        Question 2. In your opinion, would current regulations placed on
    the gaming and computer industry be appropriate to apply to this new
    generation technology?
        Answer. We do not support efforts to regulate the entertainment
    software industry based on its content. Entertainment software should
    be given the same First Amendment protections given other content-based
    industries, such as books, music, movies, and television programs. That
    said, we do support the work done by the Entertainment Software Ratings
    Board in providing age-based ratings and content descriptions, which
    together help consumers, particularly parents, make informed choices
    about the content they and their children see.

        Question 3. Autism is an issue I feel very passionate about and
    have worked on going back to my time in the Florida legislature. Some
    have suggested that augmented reality games can benefit people on the
    autism spectrum in terms of getting them out of the house and
    developing their social skills. Is the industry doing any of its own
    scientific research to determine the actual benefits of augmented
    gaming to people on the autism spectrum?
        Answer. It has been extremely gratifying to hear from our users and
    through press reports that Pokemon GO was played by and was helpful to
    many people on the autism spectrum. We are not aware of any industry-
    wide supported research on augmented reality and autism at this time,
    but we are aware of a number of research projects that have shown some
    promise in the use of augmented reality to help those on the autism
    spectrum better use and develop their social skills. For example, a
    team at Stanford University has developed and embedded artificial
    intelligence in Google Glass that enables someone with autism spectrum
    disorder to read and understand facial expressions and emotions of
    those around them. We welcome this kind of path-breaking research and
    are hopeful for more advances as the technology advances.

        Question 4. What would you say our high schools and universities
    can be doing better in the coming years to ensure that people in
    Florida and in the United States acquire the skills and preparation to
    fill these jobs?
        Answer. The work we are doing at Niantic, much like in other
    companies in the information technology industry, reinforce the value
    and importance of education in the so-called STEM fields--science,
    technology, engineering and mathematics. We are very much at the early
    stages of grasping the potential of augmented reality as not just an
    entertainment medium, but as a critical tool that can be of value to so
    many sectors of our economy.

        Question 5. What message would you like to send to educators and
    students alike about the industry's future and the opportunities it
    presents?
        Answer. We're very excited about the future of augmented reality
    and look forward to seeing its application in the future in areas that
    we did not anticipate today. One area that is certain to be impacted by
    the development of augmented reality is education and training.
    Augmented reality makes it possible to learn through experience, and in
    context, and that kind of learning has so much potential in fields
    ranging from medicine to construction. But even more fundamental is the
    potential for augmented reality to enhance learning and exploration by
    children at a young age, and not just in the classroom.

        Question 6. The interface created by these new technologies can be
    a tremendous asset to the Department of Defense, especially for
    training. How can the Department of Defense collaborate with innovators
    to push the limits of mixed reality technologies to ensure our men and
    women in uniform continue to be the best trained and equipped fighting
    force on this Earth?
        Answer. Military training is very much focused on building a
    foundation of experiences, and is centered on simulations that attempt
    to recreate various realities, whether that reality is in a fighter jet
    or a combat situation. Augmented reality certainly has the potential to
    enhance and grow the types of simulated environments that are used to
    train our military personnel.

        Question 7. With the development of augmented reality (AR), we are
    allowing these new devices to see our private worlds. Many of these
    technologies transfer and/or retain data to ensure there is a seamless
    user experience. As you are well aware, this new technology opens up
    vulnerabilities which a malicious attacker could take advantage of
    data.
        A. Can you speak to how Niantic worked to mitigate data hacking on
    the Pokemon GO app?
        Answer. Since the app was launched, Pokemon GO has been a target of
    numerous hacking efforts, including distributed denial of service
    attacks, unlawful data collection, or monetization through the use of
    botnets and other devices to help users gain advantages within the
    game.
        For example, a backdoored version of the game was found on a file
    repository service not long after the game was launched. Attackers also
    sought to lure potential Pokemon users to malicious online sites that
    mimicked our own site, claiming users would be given additional
    features if they referred friends to the site, which led to more
    spamming. We've also seen strains of ransomware masquerading as a
    Pokemon GO app.
        In these cases, as in others, working internally and with third
    parties, we've been able to take some of these malicious sites and apps
    down, but these challenges raise important questions about what
    technical and legal resources we have to combat efforts to misuse our
    intellectual property and target our users' data. It underscores the
    need for congressional review of existing laws relating to this area,
    including the Computer Fraud and Abuse Act and the Digital Millennium
    Copyright Act.
        With respect to protecting our networks and data repositories, we
    utilize a number of applications and protocols that together represent
    best practices for our industry. We would be happy to provide
    additional details of these practices offline.

        B. Is the cybersecurity standard found on these systems a threat
    today? How can the data on this app, and others, be protected from
    malicious attacks and abuse without impeding the function of the
    system?
        Answer. One of the most important cybersecurity practices is
    vigilance in protecting our networks. Today's cybersecurity best
    practice is likely tomorrow's vulnerability. For that reason, we not
    only monitor closely the integrity of our networks and systems, but we
    remain conscious of general threats that impact other data-intensive
    companies like ours. We would be happy to provide additional details of
    these practices offline.

        Question 8. Earlier this year, there were reports of people chasing
    Pokemon Go characters in places like the Holocaust Memorial Museum and
    Arlington National Cemetery. What internal controls and self-policing
    is the industry undertaking to ensure that the solemn and sacred nature
    of places like these are respected?
        Answer. It's worth sharing briefly how we decided the locations of
    Pokestops and Gyms, which go back to the origins of Niantic Labs.
    First, the historical markers you can find on our first app, Field
    Trip, became one of the data sets we used to locate PokeStops and Gyms.
    Second, looking at Ingress, we thought about how to expand this set of
    interesting places that are public, visually recognizable, and safe
    places for people to visit. So we asked Ingress players to submit their
    ideas for local landmarks they thought were great places for people to
    visit, such as the Children's Museum in Brookings, South Dakota, or the
    ArtsPark at Young Circle in Hollywood Florida. Millions of places were
    contributed, and a subset of those contributions were included in
    Pokemon GO.
        We recognize that many public places of historic significance may
    not be seen within the community they are located as suitable sites for
    Pokestops and Gyms, and for that reason, we have an online form on our
    website that enables concerned citizens or administrators to request
    removal of Pokestops and Gyms from specific locations.
                                     ______

         Response to Written Question Submitted by Hon. Joe Manchin to
                                   John Hanke
        Question. As a former Governor and in my role as a United States
    Senator, I have remained committed to enhancing the job climate in my
    state so that West Virginians have good paying jobs and the skills to
    compete in the global economy. Part of this job growth is going to come
    from the technology sector. We are beginning to see an uptick in
    technology startups in different parts of the state, but I believe
    there are opportunities for tools such as augmented reality to enhance
    workforce training.
        The technological advancements of the 21st century should not leave
    rural communities behind, and as West Virginia continues to develop its
    technology sector and train its workforce: How can augmented reality be
    used to train workers in the digital economy?
        Answer. Augmented reality is designed to enhance people's daily
    life experiences and help make the things that people do as human
    beings easier, safer, and in the case of Pokemon Go, more fun. The
    technologies that allow Pikachu to roam our neighborhoods by
    superimposing characters on mobile devices also have the potential to,
    among other things, improve the quality of health care by providing
    experience-driven training for doctors and nurses regardless of where
    they're located. Similarly, AR can provide simulations that would
    enable construction workers or miners to learn how best to respond to
    potential workplace hazards, which will provide a cost-effective tool
    to improve workplace safety.
                                     ______

         Response to Written Questions Submitted by Hon. John Thune to
                                 Brian Mullins
        Question 1. In what ways will AR technology improve the
    productivity and safety of the American worker and increase the
    competitiveness of the American workforce?
        Answer. Given the broad interest in this topic across this senate
    committee, we have prepared the following discussion on how Augmented
    Reality (AR) improves the productivity, safety, and competitiveness of
    the workforce and enhances the overall job climate in both
    industrialized and rural areas. AR empowers workers to keep up with the
    increasing pace of technological change by providing an easy and
    intuitive interface that fast-tracks the learning process. AR also
    makes workers safer a variety of ways, including improving error rates
    and reducing cognitive load which have a direct correlation to safety
    on the job.
    I. Augmented Reality-based workforce training will prepare workers,
            across age groups and level of formal education, to compete and
            win in the global economy

        Augmented Reality (AR) is a game-changer for job training and on-
    the-job skill acquisition. Three decades of research supports the
    conclusion that AR improves learning, productivity, accuracy,
    efficiency, and job satisfaction in a variety of contexts including
    manufacturing,\1\,\2\ defense,\3\ aerospace,\4\
    construction,\5\ medicine \6\ and other sectors.
    ---------------------------------------------------------------------------
        \1\ Hou, Lei, et al., ``Using animated augmented reality to
    cognitively guide assembly.'' Journal of Computing in Civil Engineering
    27.5 (2013): 439-451.
        \2\ F. Loch, F. Quint and I. Brishtel, ``Comparing Video and
    Augmented Reality Assistance in Manual Assembly,'' 2016 12th
    International Conference on Intelligent Environments (IE), London,
    2016, pp. 147-150.
        \3\ Henderson, S. J.; Feiner, S. 2009. ``Evaluating the benefits of
    augmented reality for task localization in maintenance of an armored
    personnel carrier turret.'' International Symposium on Mixed and
    Augmented Reality, 2009 (ISMAR 2009). pp 135-144. Orlando, Florida.
        \4\ Caudell, T. P. and Mizell, D. W. 1992, Augmented reality: An
    application of heads-up display technology to manual manufacturing
    processes. Proc. Ieee Hawaii International Conf. on Systems Sciences,
    1992.
        \5\ Webster, Anthony, et al., ``Augmented reality in architectural
    construction, inspection and renovation.'' Proc. ASCE Third Congress on
    Computing in Civil Engineering. 1996.
        \6\ K. Abhari et al., ``Training for Planning Tumour Resection:
    Augmented Reality and Human Factors,'' in IEEE Transactions on
    Biomedical Engineering, vol. 62, no. 6, pp. 1466-1477, June 2015.
    ---------------------------------------------------------------------------
        AR technology empowers experts and novices alike to quickly learn
    new skills or be trained in a new area or sector--a particularly
    important benefit for workers who have lost their jobs and cannot
    easily find work in their current industry. For example, AR-based
    workforce training can assist a laid-off coal miner who went directly
    from high school into his or her career to be rapidly retrained in
    other, even unrelated, sectors without requiring two or four years of
    higher education. This increased efficiency means that job training (or
    re-training) is no longer cost-prohibitive, especially for older or
    less formally-educated workers. This is critically important in states
    like West Virginia where workers have struggled to transition their
    skillsets into other fields in the midst of a decline in traditional
    sectors such as mining and manufacturing.
        As referenced in our written testimony to this committee on
    November 16, 2016, Augmented Reality (AR) work instructions have been
    shown to improve accuracy, speed, focus and worker satisfaction when
    utilized in the training and operation of complex manufacturing tasks
    through visual, step-by-step work instructions overlaid directly on top
    of components to be assembled.\7\ In addition to shorter task
    completion times and less assembly errors, the visual and spatial
    nature of AR enables a lower total task load and a reduction in the
    learning curve of novice assemblers, while increasing task performance
    relevant to working memory.\8\ Compared with video-based work
    instructions, AR produces a significantly reduced number of errors and
    scores better in terms of time and overall mental workload.\9\
    ---------------------------------------------------------------------------
        \7\ Fusing Self-Reported and Sensor Data from Mixed-Reality
    Training, (I/ITSEC) 2014, Trevor Richardson, Stephen Gilbert, Joseph
    Holub, Frederick Thompson, Anastacia MacAllister, Rafael Radkowski,
    Eliot Winer Iowa State University, Paul Davies, Scott Terry, The Boeing
    Company.
        \8\ Hou, Lei, et al., ibid.
        \9\ F. Loch, F. Quint and I. Brishtel. ibid.
    ---------------------------------------------------------------------------
        Today, the majority of learning experiences occur out of context.
    Classroom training, online training modules, and online synchronous
    training are all variations of didactic content presentation. Augmented
    reality will provide learning professionals opportunities to engage
    students and trainees with scalable and effective mechanisms to
    practice new skills in a hands-on manner, while still being supported
    by digital tools. This is especially valuable for workers who may not
    have seen a college or vocational classroom in more than twenty years,
    if at all.
        How does AR improve the speed of knowledge-transfer and improve its
    retention? A key element is AR's ability to combine the real-world
    environment with digital information. When it comes to learning new
    concepts and skills, no training method beats hands-on experience.
    Experiencing the consequences of success and failure in real time helps
    us make neural connections that are much stronger and longer lasting
    than simply consuming content. Wearable head-up displays with AR
    capabilities give the wearer a view that fuses the complexity and
    messiness of the real world with the precision and reliability of a
    digital display, providing access to the real-world scene for the
    hands-on aspect of training, while enhancing it with didactic or
    reference information to keep us on track. It is notably effective in
    enhancing spatial reasoning.
    II. Enhancing the overall job climate

        At a macroeconomic level, Augmented Reality can enhance the job
    climate by increasing productivity, which increases demand, which then
    increases employment. For example, Augmented Reality is likely to
    increase demand for manufacturing jobs due to its ability to directly
    improve manufacturing productivity. Studies show that Augmented Reality
    technology delivers significant improvements in worker productivity in
    the context of manufacturing and assembly.\10\ This higher growth in
    manufacturing productivity, however, does not lead to a decline in
    employment. According to empirical research conducted by Yale Economics
    Professor William Nordhaus, the evidence shows that ``rapid
    productivity growth leads to increased rather than decreased employment
    in manufacturing,'' as increased productivity leads to lower prices,
    thereby expanding demand, which results in increased employment.\11\
    ---------------------------------------------------------------------------
        \10\ Hou, Lei, et al., ibid.
        \11\ Nordhaus, W. The Sources of the Productivity Rebound and the
    Manufacturing Employment. National Bureau of Economic Research, Working
    Paper No. 11354 May 2005. JEL No. O4, E1
    ---------------------------------------------------------------------------
    III. Augmented reality applications for rural areas

        Of course, even if increased demand for manufactured goods results
    in increased manufacturing employment, those jobs may be unavailable in
    some areas, especially in rural states, if there are few or no
    factories located there. But far from leaving rural communities behind,
    some of the strongest use cases for Augmented Reality (AR) are
    specifically tailored to rural industries. As several senators have an
    interest in this topic, we have prepared the following discussion on AR
    applications in agriculture and forestry.
    i. Augmented Reality and Smart Agriculture

        State-of-the-art farm management practices such as precision
    agriculture, site specific crop management, and Internet of Things
    (IoT) farming have reduced costs and improved yields for farmers around
    the world. Augmented Reality (AR) applications can enhance many aspects
    of smart agriculture by providing tools that streamline the measurement
    and collection of inputs, and the delivery of analysis and insights
    that enable data-driven decision making.
        IoT smart agriculture is one of the driving forces that allows the
    United States to produce 7,637 kilograms of cereal per hectare, nearly
    twice the world average in crop yield.\12\ A wide range of sensors are
    now being implemented: BI Intelligence predicts that IoT device
    installations in the agriculture world will increase from 30 million in
    2015 to 75 million in 2020, a compound annual growth rate of 20
    percent.\13\
    ---------------------------------------------------------------------------
        \12\ Cereal yield (kg per hectare). The World Bank. Accessed from:
    http://data.worldbank.org/indicator/AG.YLD.CREL.KG. Accessed 12/18/16.
        \13\ Meola, Andrew. ``Why IoT, Big Data & Smart Farming is the
    Future of Agriculture.'' Business Insider. October 7, 2016. Accessed
    from: http://www.businessinsider.com/internet-of-things-smart-
    agriculture-2016-10. Accessed 12/18/16.
    ---------------------------------------------------------------------------
        Thanks in part to the steady reduction in electronics and data
    storage costs, a wide range of sensors are being utilized across smart
    agriculture including biological, chemical and gas analyzers, water
    sensors, meteorological sensors, weed seekers, optical cameras, Light
    Detection and Ranging (LIDAR), photometric sensors, soil respiration,
    photosynthesis sensors, Leaf Area index (LAI) sensors, range finders,
    Dendrometers, and hygrometers. Whether in unmanned aerial or ground
    vehicles (UAVs or UGVs), or stationed in the field, these IoT sensors
    sample, measure and collect key performance data including soil
    fertility diagnostics, yield as-planted, and as-applied, and water
    utilization. AR technology could provide additional insights into the
    optimization of seed, fertilizer, and chemical input, planting
    prescriptions, profit mapping and analysis and future crop planning.
        An AR interface displayed within devices such as the DAQRI Smart
    Helmet can show this vital information contextually within individual
    management zones, with real-time data like soil moisture levels,
    sunlight cations, projected Nitrogen use, and other advanced analytics
    appearing in the wearable device's view as the farmer traverses the
    ground.
        Augmented reality systems have been proposed for agricultural uses
    across the spectrum including insect identification and pest
    management,\14\ damage level estimation of diseased plant leaves,\15\
    outdoor visualization of agricultural geographic information system
    (GIS) data,\16\ and GPS guidance for agricultural tractors.\17\
    Additional use cases might include visualizing prescriptive planning,
    enabling data collection of variables such as crop yield, terrain
    features and topography, organic matter content, moisture levels,
    nitrogen levels, pH, soil electrical conductivity, magnesium, and
    potassium.
    ---------------------------------------------------------------------------
        \14\ A. Nigam, P. Kabra and P. Doke, ``Augmented Reality in
    agriculture,'' 2011 IEEE 7th International Conference on Wireless and
    Mobile Computing, Networking and Communications (WiMob), Wuhan, 2011,
    pp. 445-448.
        \15\ S. Prasad, S. K. Peddoju and D. Ghosh, ``Mobile Mixed Reality
    Based Damage Level Estimation of Diseased Plant Leaf,'' 2014 Eighth
    International Conference on Next Generation Mobile Apps, Services and
    Technologies, Oxford, 2014, pp. 72-77.
        \16\ G. R. King, W. Piekarski and B. H. Thomas, ``ARVino--outdoor
    augmented reality visualisation of viticulture GIS data,'' Fourth IEEE
    and ACM International Symposium on Mixed and Augmented Reality
    (ISMAR'05), 2005, pp. 52-55.
        \17\ Santana-Fernandez, Javier; Gomez-Gil, Jaime; Del-Pozo-San-
    Cirilo, Laura. 2010. ``Design and Implementation of a GPS Guidance
    System for Agricultural Tractors Using Augmented Reality Technology.''
    Sensors 10, no. 11: 10435-10447.
    ---------------------------------------------------------------------------
        Many other data visualization use cases that improve decision
    making in real-time could be implemented, for example three-dimensional
    on-site visualization of topographic maps and geomatic data such as
    altitude, expected crop yield and actual crop yield.\18\
    ---------------------------------------------------------------------------
        \18\ Goddard, Ted. ``Augmented Reality Farming Geomatics.''
    Accessed from: https://www.youtube.com/watch?v=qrZYb5aa44k. Accessed on
    12/16/16.
    ---------------------------------------------------------------------------
        It is well within the capabilities of AR technology to provide
    farmers push notifications, with a farmer looking out over the field
    and red warning notifications popping up where weed, insect, disease or
    drought pressures pass a given threshold.
        Congress and the Administration, whether through the U.S.
    Department of Agriculture or other Federal agencies, should provide
    seed money and other grants to set up field studies in this area to
    document the outcomes and determine how much benefit the farming
    community may derive from these agricultural applications of AR
    technology.
    ii. Augmented Reality Farm Equipment Repair & Maintenance

        Augmented Reality can enhance farm operations by providing ways to
    improve outcomes and increase efficiency in training, maintenance,
    repair, and part ordering of farm machinery and equipment. Similar
    applications of AR as a facilitator in the maintenance of aircraft have
    resulted in better learning and recall, improving knowledge-transfer
    and training outcomes.\19\ This same use of AR for airplanes can be
    applied to farm equipment to help farm managers monitor machine
    analytics, anticipate problems and analyze breakdowns quickly, reducing
    downtime and helping to keep planting and harvest on schedule.
    Moreover, this technology shows potential in reducing overall use of
    pesticides while targeting problem areas. It may also reduce farmers'
    trips to the field thanks to the increased connectedness it provides.
    ---------------------------------------------------------------------------
        \19\ Valimont, R. B., Gangadharan, S. N., Vincenzi, D. A., &
    Majoros, A. E. (2007). The Effectiveness of Augmented Reality as a
    Facilitator of Information Acquisition in Aviation Maintenance
    Applications. Journal of Aviation/Aerospace Education & Research,
    16(2). Retrieved from http://commons.erau.edu/jaaer/vol16/iss2/9.
    ---------------------------------------------------------------------------
    iii. Augmented Reality Applications in Forestry

        In forestry--another key rural industry--smart IoT techniques are
    being utilized with the aim of controlling parameters of interest such
    as diameter of trees, crown height, bark thickness and other variables,
    such as canopy, humidity, illumination, and
    CO2 transformation.
        The application of wearables in forestry can be used in identifying
    and managing tree populations utilizing the same parameters as used in
    individual management zones with AR in Farming. In addition, wearables
    could provide first rate field training for students and new employees
    in real-time tree identification and other relevant facts.
    IV. Augmented Reality Applications in Mining

        In addition to these examples of Augmented Reality (AR)
    applications in rural areas, there are excellent use cases for AR in
    mining. Increased access to relevant real-time information saves time
    for workers and improves decision-making. This is one of the key
    benefits that AR can provide to mine workers.
        Pervasive sensing--the practice of deploying large numbers of
    sensors and linking them to communication networks in order to analyze
    their collective data--is already being used in the mining industry to
    support remote operations, health and safety, and exploration and
    mapping. The identification and management of ore grade, which is
    relevant across all stages of the mining process, can be provided by
    sensing technologies during exploration, extraction, haulage and
    processing activities.\20\ AR has been proposed as a mechanism to
    visualize sub-surface mining data,\21\ and beyond that depth and
    localization data, 3D ranging and mapping, infrared data, and machine
    condition monitoring data are all examples of information that can be
    displayed in context to workers onsite using Augmented Reality head-up
    displays in order to improve operational efficiency and safety.
    ---------------------------------------------------------------------------
        \20\ M. E. Kiziroglou; D. E. Boyle; E. M. Yeatman; J. J. Cilliers,
    ``Opportunities for sensing systems in mining,'' in IEEE Transactions
    on Industrial Informatics, vol.PP, no.99, pp.1-1.
        \21\ Roberts, Gethin W., et al., ``The use of augmented reality,
    GPS and INS for subsurface data visualization.'' FIG XXII International
    Congress. 2002. APA
    ---------------------------------------------------------------------------
        Augmented Reality can also help reduce mining accidents and lost
    workers. Major safety issues in the mining industry occur when
    personnel are in the field, such as when workers get lost underground
    and can no longer find their way back to the surface, or when miners
    encounter dangerous or explosive gases. Wearable AR devices have the
    additional added benefit of providing worker localization, allowing
    teams to remain in contact when miners lose visual contact with their
    teammates, and enabling the rapid localization of workers when
    emergency attention is needed.
    V. AR in Medical Practice and Training

        Augmented Reality (AR) can help American surgeons provide a greater
    number of procedures faster, more accurately, and more safely. The use
    of Augmented Reality in medicine has the potential to improve surgeon
    performance, reducing errors, rework, and recovery times. AR-assisted
    planning and navigation techniques provide the means to create detailed
    plans of surgical routes and then overlay 3-dimensional patient data
    from CT, MRI and CAT scans directly over the patient's body during the
    operation, guiding the procedure in a highly individualized way. These
    types of techniques make our medical practitioners more globally
    competitive, and can also directly impact the overall health and safety
    of the American workforce and population.
        Augmented Reality has been shown to improve medical training for
    surgeons.\22\ We currently have a gap in the number of surgeons needed
    to adequately serve the population: the ratio of general surgeons per
    100,000 people has dropped by 26 percent in the last 25 years. The
    number of general surgeons needed to adequately serve the population is
    estimated to be at least 7 per 100,000 people. Currently, there are
    about 18,000 active general surgeons in the US, or 5.8 per 100,000
    people. AR can help increase the number of surgeons by making surgical
    training and OR operations more broadly accessible.
    ---------------------------------------------------------------------------
        \22\ Training for Planning Tumour Resection: Augmented Reality and
    Human Factors

        Question 2. In March 2016, FedTech magazine reported that the
    National Security Agency is considering the use of augmented reality
    applications to assist security professionals in monitoring cyber
    threats. How could businesses and educational institutions use similar
    concepts to transform cybersecurity training?
        Answer. As reported by FedTech magazine, NSA is developing a
    prototype of an Augmented Reality (AR) system with the aim of helping
    security professionals to manage the high cognitive workload involved
    in processing a high volume of information flow with frequent changes
    in priority. Dr. Josiah Dykstra, who is leading the initiative,
    envisions utilizing AR to streamline task processing by surfacing the
    most pertinent threats immediately in a wearable, Augmented Reality
    head-up display.
        Such a system would benefit from AR head-up-displays' capacity to
    highlight key information directly in the wearer's field of view,
    separating the signal from the noise. Security analysts responsible for
    areas such as intrusion detection, incident response, situational
    awareness, and digital forensics could benefit from this type of
    Augmented Reality alert. In order to function properly, the AR system
    would require that the most important and immediate threats are
    provided as an input so that they can be displayed to the wearer of the
    head-up display in the form of an appropriately designed AR interface.
    In addition to the AR-specific system components, the creation of such
    a system might entail the development of software algorithms that model
    and prioritize incoming intelligence.
        Thanks to advances in commercially available Augmented Reality
    products, it is now feasible to design this type of overall system
    capable of modeling, analyzing and visualizing threats relevant to the
    given context. Key aspects of cybersecurity could be built into the
    system and highlighted through the AR interface if incidents meet a
    given threshold. The system could also then utilize built-in
    intelligence to suggest next steps or required actions.
        For the purposes of training cybersecurity professionals,
    businesses and educational institutions could recreate the security
    professional's specific work environment and provide interactive real-
    time cyber-threat simulation in that context, while utilizing Augmented
    Reality head-up-displays to direct trainees' attention to what's most
    important in the moment. Either via in-person instructors that can see
    the scenario from behind a one-way mirror, or through pre-programmed
    software simulations, it is possible ramp up the difficulty of the
    simulation as needed. In situations where there are many threats being
    monitored simultaneously, the instructors behind the scenes could
    control what the trainees see and must respond to. If they respond
    incorrectly, a simulated security breach could occur, providing a
    valuable learning opportunity to practice incident response procedures.
        Wearable augmented reality head-up displays used during the
    training to disseminate information about the most critical security
    threats could also provide guidance on follow-up procedures, and enable
    collaboration through process tracking and ticketing tools.
        Augmented Reality (AR) can also be utilized by educational
    institutions earlier on in the process to generate and nurture interest
    from the next generation of cybersecurity professionals. Educational
    serious games utilizing Augmented Reality have been shown to increase
    awareness of cybersecurity vulnerabilities and improve defense
    preparation against ever-present cybersecurity threats including
    identity theft, oversharing, malware, and social engineering. AR in
    this context provides the benefit of making abstract cybersecurity
    concepts more tangible, and thereby allows students to interact with
    them directly.\23\
    ---------------------------------------------------------------------------
        \23\ M. Salazar, J. Gaviria, C. Laorden and P. G. Bringas,
    ``Enhancing cybersecurity learning through an augmented reality-based
    serious game,'' 2013 IEEE Global Engineering Education Conference
    (EDUCON), Berlin, 2013, pp. 602-607

        Question 3. Many of the members of the Commerce Committee represent
    rural states. Are there applications of AR technology that could
    specifically benefit rural industries, such as agriculture?
        Answer.
    I. Augmented Reality and Smart Agriculture

        State-of-the-art farm management practices such as precision
    agriculture, site specific crop management, and Internet of Things
    (IoT) farming have reduced costs and improved yields for farmers around
    the world. Augmented Reality (AR) applications can enhance many aspects
    of smart agriculture by providing tools that streamline the measurement
    and collection of inputs, and the delivery of analysis and insights
    that enable data-driven decision making.
        IoT smart agriculture is one of the driving forces that allows the
    United States to produce 7,637 kilograms of cereal per hectare, nearly
    twice the world average in crop yield.\24\ A wide range of sensors are
    now being implemented: BI Intelligence predicts that IoT device
    installations in the agriculture world will increase from 30 million in
    2015 to 75 million in 2020, a compound annual growth rate of 20
    percent.\25\
    ---------------------------------------------------------------------------
        \24\ Cereal yield (kg per hectare). The World Bank. http://
    data.worldbank.org/indicator/AG.YLD.CREL.KG. Accessed 12/18/16.
        \25\ Meola, Andrew. ``Why IoT, Big Data & Smart Farming is the
    Future of Agriculture.'' Business Insider. October 7, 2016. http://
    www.businessinsider.com/internet-of-things-smart-agriculture-2016-10.
    Accessed 12/18/16.
    ---------------------------------------------------------------------------
        Thanks in part to the steady reduction in electronics and data
    storage costs, a wide range of sensors are being utilized across smart
    agriculture including biological, chemical and gas analyzers, water
    sensors, meteorological sensors, weed seekers, optical cameras, Light
    Detection and Ranging (LIDAR), photometric sensors, soil respiration,
    photosynthesis sensors, Leaf Area index (LAI) sensors, range finders,
    Dendrometers, and hygrometers. Whether in unmanned aerial or ground
    vehicles (UAVs or UGVs), or stationed in the field, these IoT sensors
    sample, measure and collect key performance data including soil
    fertility diagnostics, yield as-planted, and as-applied, and water
    utilization. AR technology could provide additional insights into the
    optimization of seed, fertilizer, and chemical input, planting
    prescriptions, profit mapping and analysis and future crop planning.
        An AR interface displayed within devices such as the DAQRI Smart
    Helmet can show this vital information contextually within individual
    management zones, with real-time data like soil moisture levels,
    sunlight cations, projected Nitrogen use, and other advanced analytics
    appearing in the wearable device's view as the farmer traverses the
    ground.
        Augmented reality systems have been proposed for agricultural uses
    across the spectrum including insect identification and pest
    management,\26\ damage level estimation of diseased plant leaves,\27\
    outdoor visualization of agricultural geographic information system
    (GIS) data,\28\ and GPS guidance for agricultural tractors.\29\
    Additional use cases might include visualizing prescriptive planning,
    enabling data collection of variables such as crop yield, terrain
    features and topography, organic matter content, moisture levels,
    nitrogen levels, pH, soil electrical conductivity, magnesium, and
    potassium.
    ---------------------------------------------------------------------------
        \26\ A. Nigam, P. Kabra and P. Doke, ``Augmented Reality in
    agriculture,'' 2011 IEEE 7th International Conference on Wireless and
    Mobile Computing, Networking and Communications (WiMob), Wuhan, 2011,
    pp. 445-448.
        \27\ S. Prasad, S. K. Peddoju and D. Ghosh, ``Mobile Mixed Reality
    Based Damage Level Estimation of Diseased Plant Leaf,'' 2014 Eighth
    International Conference on Next Generation Mobile Apps, Services and
    Technologies, Oxford, 2014, pp. 72-77.
        \28\ G. R. King, W. Piekarski and B. H. Thomas, ``ARVino--outdoor
    augmented reality visualisation of viticulture GIS data,'' Fourth IEEE
    and ACM International Symposium on Mixed and Augmented Reality
    (ISMAR'05), 2005, pp. 52-55.
        \29\ Santana-Fernandez, Javier; Gomez-Gil, Jaime; Del-Pozo-San-
    Cirilo, Laura. 2010. ``Design and Implementation of a GPS Guidance
    System for Agricultural Tractors Using Augmented Reality Technology.''
    Sensors 10, no. 11: 10435-10447.
    ---------------------------------------------------------------------------
        Many other data visualization use cases that improve decision
    making in real-time could be implemented, for example three-dimensional
    on-site visualization of topographic maps and geomatic data such as
    altitude, expected crop yield and actual crop yield.\30\
    ---------------------------------------------------------------------------
        \30\ Goddard, Ted. ``Augmented Reality Farming Geomatics.'' Retried
    from: https://www.youtube.com/watch?v=qrZYb5aa44k
    ---------------------------------------------------------------------------
        It is well within the capabilities of AR technology to provide
    farmers push notifications, with a farmer looking out over the field
    and red warning notifications popping up where weed, insect, disease or
    drought pressures pass a given threshold.
        Congress and the Administration, whether through the U.S.
    Department of Agriculture or other Federal agencies, should provide
    seed money and other grants to set up field studies in this area to
    document the outcomes and determine how much benefit the farming
    community may derive from these agricultural applications of AR
    technology.
    II. Augmented Reality Farm Equipment Repair & Maintenance

        Augmented Reality can enhance farm operations by providing ways to
    improve outcomes and increase efficiency in training, maintenance,
    repair, and part ordering of farm machinery and equipment. Similar
    applications of AR as a facilitator in the maintenance of aircraft have
    resulted in better learning and recall, improving knowledge-transfer
    and training outcomes.\31\ This same use of AR for airplanes can be
    applied to farm equipment to help farm managers monitor machine
    analytics, anticipate problems and analyze breakdowns quickly, reducing
    downtime and helping to keep planting and harvest on schedule.
    Moreover, this technology shows potential in reducing overall use of
    pesticides while targeting problem area. It may also reduce farmers
    trips to the field.
    ---------------------------------------------------------------------------
        \31\ Valimont, R. B., Gangadharan, S. N., Vincenzi, D. A., &
    Majoros, A. E. (2007). The Effectiveness of Augmented Reality as a
    Facilitator of Information Acquisition in Aviation Maintenance
    Applications. Journal of Aviation/Aerospace Education & Research,
    16(2). Retrieved from http://commons.erau.edu/jaaer/vol16/iss2/9
    ---------------------------------------------------------------------------
    III. Augmented Reality Applications in Forestry

        In forestry--another key rural industry--smart IoT techniques are
    being utilized with the aim of controlling parameters of interest such
    as diameter of trees, crown height, bark thickness and other variables,
    such as canopy, humidity, illumination, and
    CO2 transformation.
        The application of wearables in forestry can be used in identifying
    and managing tree populations utilizing the same parameters as used in
    individual management zones with AR in Farming. In addition, wearables
    could provide first rate field training for students and new employees
    in real-time tree identification and other relevant facts.
                                     ______

        Response to Written Questions Submitted by Hon. Marco Rubio to
                                 Brian Mullins
        Question 1. As we conduct our oversight role as lawmakers, how can
    we ensure that technology start-ups, like Magic Leap, are able to
    continue to advance in the 21st century economy without imposing
    unnecessary red tape?
        Answer. Some regulation and oversight are needed to ensure that
    innovative technologies created by start-ups do not harm the public.
    However, due to the rapid speed of innovation in the technology
    industry, there are many cases where reactive laws attempting to
    regulate emerging technologies have been rendered obsolete in a short
    span of time. Worse, broad brush regulations can have unintended side
    effects and stifle technology development that actually increases
    safety and improves lives. In the case of Augmented Reality (AR)
    technologies, lawmakers should consider and be aware of the wide
    variety of use cases beyond consumer-oriented gaming, social media, and
    entertainment, which will require a very different analysis. For
    example, during the hearing on 11/16/16, a question was posed on
    whether AR technology was unsafe for use in automobiles. While the
    Senator was referring to the playing of interactive games while
    driving--which is clearly unsafe and may warrant regulation--there are
    other uses of AR technology in automobiles which actually increase
    safety, such as head-up displays which project information such as the
    odometer or driving directions directly onto the wind screen so that
    the driver is no longer forced to take his or her eyes off the road,
    even for a second or two.
        As we have expressed in answers to the jobs-related questions from
    this committee, AR provides significant benefits in terms of worker
    safety and productivity in a wide variety of fields. Through the
    minimization of errors and the reduction of cognitive load, AR can
    significantly improve the quality and safety of not just the work
    environment, but also the end products, such as industrial equipment,
    consumer goods, infrastructure and construction projects, and so on.
    These improvements in turn benefit the American public at large, who
    are the beneficiaries, users, and inhabitants of the final outputs of
    the AR-enhanced production process. Currently, the aerospace, energy,
    construction, manufacturing, automotive and utilities industries are
    leading the way in AR implementation on the factory floor and in the
    field, and adoption is on the rise as highly functional and robust AR
    devices are becoming more widely available.
        Augmented Reality applications have safety benefits for both the
    workers that produce and the end users that come into contact with a
    wide range of goods, ranging from aircraft to chemical plants. These
    types of applications require the use of data capture and storage
    technologies, but in industrial rather than consumer contexts. It's
    important to consider the vast differences in AR use for consumers
    versus industry use cases. We posit that lawmakers can protect
    consumers and data privacy through regulations that empower people to
    have control of their own data, while still enabling industrial usage
    that will improve worker safety and American competitiveness.
        Tech start-ups are small businesses. Looking more broadly across
    the start-up ecosystem, we recommend not enacting laws that make it too
    cumbersome to be a small tech company. For example, it might be
    worthwhile to find ways to allow small businesses to enter government
    contracting by either providing case-by-case exemptions to FAR/D-FARS
    or by creating other programs that allow them to participate in
    government grant and research programs. Too many rules and regulations
    create a situation where it is not feasible economically for small tech
    firms to participate in government contracting, preventing the
    government's ability to leverage new innovations. When creating new
    laws, we ask that you consider the potential unintended consequences of
    new regulations on small companies in emerging markets. If you truly
    want to have more diversity and the kind of disruptive innovation
    that's possible with start-ups, the rules of engagement need to allow
    more flexibility and more competition, which will improve the end-
    products that can ultimately support government people, goals, and
    functions. Without start-ups at the table, we will risk getting stuck
    with a glacial pace of change, and inefficient cost-plus models.
    Conversely, government runs the risk of not having a voice in start-up
    driven conversations regarding the most important disruptive
    innovations of the future.
        One issue that affects all technology companies is the scourge of
    patent trolls: bad actors who do not add value to the economy nor
    enhance current technologies but instead distract and slow down the
    real innovators in the marketplace through unwarranted and expensive
    legal action. Regulations that put a stop to patent trolls would be
    welcomed by start-ups and large tech businesses alike.

        Question 2. In your opinion, would current regulations placed on
    the gaming and computer industry be appropriate to apply to this new
    generation technology?
        Answer. States across the U.S. are trying to determine how to
    regulate new technologies that collect data about our health; track our
    movements and monitor our homes or workplaces. Currently, there is a
    patchwork of laws and regulations that attempt to deal with emerging
    technologies. Most focus primarily on safety, and we understand the
    need to design our products and AR experiences to address additional
    concerns about privacy, usability and affordability for all, and
    cybersecurity.
        AR products and services allow data to flow real time between
    users, their environment and data collection. While this type of
    communication allows for enhanced safety, particularly in the
    workplace, we are sensitive to the fact that users need to be made
    aware of what data is collected; how it is collected; how it will be
    used/shared and stored. We have given great thought to this issue to
    ensure our customers understand the flow of data associated with our
    products and ensure they have consented to such collection and use.
        DAQRI's stance is that Augmented Reality (AR) applications for
    industrial, automotive and consumer use should each be treated
    differently. As we've discussed in response to other questions from
    this committee, industrial applications of AR in many industries from
    energy to manufacturing to aerospace have been shown to increase
    safety, productivity and efficiency. These benefits must be weighed
    when considering new regulations that might restrict usage or delivery
    of Augmented Reality in any way.
        In the automotive field, current regulations enable and require
    safety features for driving, an activity that is fundamental to so many
    lives. Head-up-displays have been shown to reduce blind flight time of
    drivers.\32\ Due to the significant safety benefits, lawmakers should
    consider how we can expand the capability and adoption of AR HUDs.
    ---------------------------------------------------------------------------
        \32\ R. J. Kiefer and A. W. Gellatly, ``Quantifying the
    Consequences of the `Eyes-on-Road' Benefit Attributed to Head-Up
    Displays,'' p. 960946, Feb. 1996.

        Question 3. Autism is an issue I feel very passionate about and
    have worked on going back to my time in the Florida legislature. Some
    have suggested that augmented reality games can benefit people on the
    autism spectrum in terms of getting them out of the house and
    developing their social skills. Is the industry doing any of its own
    scientific research to determine the actual benefits of augmented
    gaming to people on the autism spectrum?
        Answer. There have been numerous studies performed over recent
    years on the benefits that augmented reality (AR) technology can
    provide to individuals on the autism spectrum. These studies have
    demonstrated how AR can positively impact their lives by improving
    several aspects of social behavior including but not limited to: the
    frequency and depth of social interactions, the reduction in social
    slipups, more seamless group integration, an increased selective
    attention span, and a boost in overall motivation to engage.\1\
        Many see even greater promise in the potential of AR than in more
    widely adopted computer learning aids for autism, an area that has been
    thoroughly studied and has seen much success over the years. The
    abundant use of engaging visuals offered by mobile AR devices allows
    for real-time feedback in a natural setting, increasing the likelihood
    of generalization. For example, mobile assistance tools, such as the
    Mobile Social Compass (MOSOCO), can offer a variety of interactive
    features to aid in enhancing social and functional skills. MOSOCO was
    deployed during a study at a public school in Southern California and
    through its guidance, children with autism were provided with
    ``interactive features to encourage them to make eye contact, maintain
    appropriate spatial boundaries, reply to conversation initiators, share
    interests with partners, disengage appropriately at the end of an
    interaction, and identify potential communication partners.'' The
    results of the study demonstrated that the AR tool could increase both
    the quantity and quality of social interactions, reduce social and
    behavioral missteps, and enable the integration of children with autism
    into social groups of neurotypical children.\33\
    ---------------------------------------------------------------------------
        \33\ Escobedo, Lizbeth, David Nguyen, LouAnne Boyd3, Sen H. Hirano,
    Alejandro Rangel, Daniel Garcia-Rosas1, Monica Tentori, and Gillian R.
    Hayes. MOSOCO: A Mobile Assistive Tool to Support Children with Autism
    Practicing Social Skills in Real-Life Situations. Gillian Hayes. N.p.,
    Aug. 2012. Web. 19 Dec. 2016.
    ---------------------------------------------------------------------------
        Furthermore, these mobile tools can be tailored to each individual
    case, as individuals fall on different levels of the autism scale and
    need varying levels of support.\34\ Researchers believe that
    educational AR tools, such as MOSOCO, that have prospered within the
    boundaries of the classroom can also provide adequate mobile assistance
    to people on the autism scale in real-life scenarios.\1\
    ---------------------------------------------------------------------------
        \34\ ``DSM-5 Diagnostic Criteria.'' Autism Speaks. N.p., n.d. Web.
    19 Dec. 2016.
    ---------------------------------------------------------------------------
        An additional study titled, Augmented Reality for Rehabilitation of
    Cognitive Disabled Children: A Preliminary Study, demonstrates such
    promise when using an ARVe (Augmented Reality applied to the Vegetal
    field) system as a teaching aid to support a task that involves pairing
    fruits, leaves, stems, and seeds. By overlaying 2D and 3D objects on
    printed-square markers in the form of a book, children were able to
    interact with objects in a non-immersive and intuitive manner. This
    application integrated visual, olfactory, or auditory cues to help
    children carry out the decision making process. Researchers noted that,
    ``in the ARVe application, matching is an activity that the autistic
    children like because their visual aptitude is used for a precise goal,
    with some discovery pleasure and curiosity that are sources of
    motivation for these children.'' Researchers recognized that, ``given
    the possibility of adjusting the task, the AR tool is valuable to offer
    to the cognitive disabled pupils the same training as the other pupils
    of the elementary cycle.'' Parents of the children were supportive as
    well, with 90 percent positively favoring the study, emphasizing that
    the tools could involve their children in a much deeper learning
    process.\35\
    ---------------------------------------------------------------------------
        \35\ E. Richard, V. Billaudeau, P. Richard and G. Gaudin,
    ``Augmented Reality for Rehabilitation of Cognitive Disabled Children:
    A Preliminary Study,'' 2007 Virtual Rehabilitation, Venice, Italy,
    2007, pp. 102-108.
    ---------------------------------------------------------------------------
        What's more, several studies have shown a correlation between the
    adoption of educational AR tools over traditional learning methods and
    an increase in motivation, focus, positive emotion, and sustained
    attention. While using Mobis, a tool that allowed teachers to
    superimpose digital content on physical objects, autistic students
    experienced a 24 percent increase in positive emotion, a 20 percent
    increase in time spent on an individual task, a 62 percent increase in
    selective attention, and a 45 percent increase in sustained
    attention.\36\
    ---------------------------------------------------------------------------
        \36\ Escobedo, Lizbeth, Monica Tentori, Eduardo Quintana, Jesus
    Favela, and Daniel Garcia-Rosas. ``Using Augmented Reality to Help
    Children with Autism Stay Focused.'' IEEE Pervasive Computing 13.1
    (2014): 38-46. Web. 19 Dec. 2016.
    ---------------------------------------------------------------------------
        These are just a few examples of studies demonstrating how AR can
    positively impact the lives of those who are affected with autism. From
    increasing selective attention and motivation to helping to socially
    integrate kids with autism at school, the effects of AR have endless
    possibilities.

        Question 4. What would you say our high schools and universities
    can be doing better in the coming years to ensure that people in
    Florida and in the United States acquire the skills and preparation to
    fill these jobs?
        Answer.
    Augmented Reality systems leverage many technologies

        State-of-the-art Augmented Reality (AR) systems require the
    integration of a wide range of technical disciplines: computer vision
    tracking, high-speed graphical rendering, electronic and optical
    engineering, and low-latency cloud computing to name a few.
    Implementation of an AR solution in a specific context such a factory,
    or integrated into a larger system such as a passenger vehicle,
    requires additional layers of systems engineering and information
    technology expertise, such as networking, data analytics, and
    cybersecurity. In the midst of all this complexity, all sub-systems
    must work together to support the goals of the larger whole. Given this
    context, both deep domain expertise and big picture thinking are
    required for success.
    AR experiences require creative disciplines

        A well-designed AR interface requires the extreme application of
    user-centric design, given the proximity and personalization of an
    interface that sits directly in one's field of view. It is more crucial
    than ever to consider and understand human factors in the design of
    Augmented Reality interfaces, applications, and products. For this
    reason, creative professionals who can create functional designs that
    people love to use are always in very high demand in the AR industry.
    In addition to having a strong skillset in design thinking, creatives
    also need to deeply understand how the underlying technology works, in
    order to be able to innovative and push the boundaries of its
    capabilities.
    The role of educational institutions

        The best thing that educational institutions can do is to integrate
    AR in the classroom in high school and even before. Not only will it
    improve learning outcomes, it will also prepare the next generation to
    work in one of the most exciting industries of our time. If we do not
    take this opportunity, we run the risk of falling behind in a global
    context.
        Furthermore, high schools and universities can and should do more
    to promote STEM and design thinking education in our schools, but that
    alone is not enough. Educators can instill the habit of multi-
    disciplinary thinking bigger in students through the implementation of
    entrepreneurship programs, project-based learning methods, and the
    integration of agile methodologies. When students have the opportunity
    to create end-to-end solutions it more realistically prepares them for
    real-world, provides greater motivation to engage, and enables them to
    keep the bigger picture in mind. Students who have taken a project from
    zero to launch have greater job prospects in a market that is
    increasingly seeking problem solvers with entrepreneurial skillsets.
        AR is inspirational precisely because it is so technically
    challenging across STEM disciplines and so broadly applicable in all
    areas of human activity--from building airplanes and rockets to
    interactive mobile gaming. Teachers and educational institutions can
    engage students more fully by building on the excitement for a subject
    that is so fundamentally cool.

        Question 5. What message would you like to send to educators and
    students alike about the industry's future and the opportunities it
    presents?
        Answer. Augmented Reality is an extremely exciting field for
    students to pursue. Not only is it one of the fastest growing
    technologies in the history of the world, but like the Internet, it has
    the potential to touch every other industry.
        Unlike most industries, our educational system has struggled to
    evolve over time. The setup and structure of classrooms today mirror
    those of 100 years ago. This antiquated design can limit a student's
    ability to express knowledge in creative and innovative ways, forcing
    them to conform to the status quo. It's time that changes. Our high
    schools and universities must provide a student-directed learning
    environment that encourages students to take risks, learn from setbacks
    and failures along the way, and ignore society's limitations. We need
    to ensure students can still dream of a better world if we're to have
    any hope of living in one.
        Futurist Thomas Frey predicts 60 percent of the jobs 10 years from
    now haven't been invented yet \37\ and those that have been invented
    will be drastically different due to technological advances. Our
    schools can prepare students for the future of work by instilling the
    value of lifelong learning; designing curriculum where students learn
    through discovery and creation, not consumption, and provide a culture
    where your results matter just as much as how you treat the people
    around you.
    ---------------------------------------------------------------------------
        \37\ Thomas Frey, futurist. Accessed from: http://
    www.futuristspeaker.com/business-trends/55-jobs-of-the-future/.
    Accessed 12/19/16.
    ---------------------------------------------------------------------------
        The Augmented Reality industry provides students with the exciting
    opportunity to contribute to a new frontier of technology innovation.
    This opportunity will require a workforce that dreams without
    limitations and a passion for pushing the boundaries of the newest
    technologies. Augmented reality will empower students as much as
    computer skills in previous decades, and will prove to be a
    differentiator in the way we experience life.

        Question 6. The interface created by these new technologies can be
    a tremendous asset to the Department of Defense, especially for
    training. How can the Department of Defense collaborate with innovators
    to push the limits of mixed reality technologies to ensure our men and
    women in uniform continue to be the best trained and equipped fighting
    force on this Earth?
        Answer. Augmented Reality (AR) technology can serve as a force
    multiplier in defense training and operations by increasing situational
    awareness, reducing the fog of war, counteracting information overload,
    improving targeting cycle times, and enhancing battlefield
    collaboration.\38\ Airforce fighter pilots have long benefitted from AR
    interfaces in head-up displays that superimpose information from a
    variety of data streams, including targets, navigation waypoints, and
    threats, over their 3D locations. By providing virtual overlays that
    seamlessly merge mission critical information into pilots' field of
    vision, AR allows pilots to keep their eyes on the real environment,
    improving reaction time, and reducing cognitive load.
    ---------------------------------------------------------------------------
        \38\ Livingston, M.; Rosenblum, L.; Brown, G.; Schmidt, G; Julier,
    S.; Baillot, Y.; Swan II, J.; Ai, Z.; Maassel, P. Military Applications
    of Augmented Reality, chapter in Handbook of Augmented Reality pp 671-
    706. Date: 13 July 2011.
    ---------------------------------------------------------------------------
        Our men and women in uniform on land and at sea can benefit from
    the same advantages AR provides to pilots. In 2014, DAQRI entered into
    a cooperative research and development agreement (CRADA) with the Space
    and Naval Warfare Systems Command (SPAWAR) to explore and measure the
    benefits of augmented reality (AR) tools for Naval applications and to
    support the development of new capabilities for the Navy.
        In the first quarter of 2016, a coalition of Naval commands met on
    USS Essex to launch the first platform for Sailors to bring innovative
    technological concepts straight from the deckplates to Navy labs for
    rapid prototyping and testing in the fleet. Navy leadership spoke at
    the Innovation Jam, encouraging sailors to ``be bold and bring forth
    ideas and solutions to fleet challenges,'' \39\ and also served as
    judges as six Sailor finalists pitched technological solutions, with
    two winners receiving funds and support to build prototypes. LT Robert
    McClenning from USS Gridley was selected as the winner and received
    prototyping funds for his Unified Gunnery System concept which featured
    an augmented reality helmet that would fuse information from the
    gunnery officer and weapon system into an easy-to-interpret visual
    format for the gunner manning a naval gun system.
    ---------------------------------------------------------------------------
        \39\ Inaugural Innovation Jam Funds Sailor-Driven Improvements,
    http://www.navy.mil/submit/display.asp?story_id=93698, accessed 12/14/
    16.
    ---------------------------------------------------------------------------
        Through the collaboration with SPAWAR, DAQRI partnered with the
    Navy's Battlefield Exploitation of Mixed Reality (BEMR) Laboratory \40\
    to develop and demonstrate LT McClenning's prototype Augmented Reality
    command and control concept. Christened GunnAR, the application
    leverages the DAQRI Smart Helmet as a wearable augmented reality
    display and enables the issuing of commands by the gunnery officer to
    gunners aboard Navy ships, which then are shown directly in the field
    of view of the targeting officer and all gunnery positions. If
    implemented at scale, this system could greatly improve the targeting
    cycle and shipboard situational awareness. Many small caliber
    engagements occur close to shore or near ports, so improving the
    targeting officers' ability to control fires could significantly reduce
    friendly fire incidents.
    ---------------------------------------------------------------------------
        \40\ Battlefield Exploitation of Mixed Reality (BEMR) Laboratory,
    http://www.public.navy.mil/spawar/Pacific/BEMR/Pages/default.aspx,
    accessed 12/14/16.
    ---------------------------------------------------------------------------
        We hope to work with the Office of Naval Research and other DOD
    research centers to ensure prototype systems like GunnAR are funded,
    developed, and deployed to the fleet, cementing a battlefield edge that
    no opponent will have.
        Beyond being an exceptional training aid, AR could one day provide
    every soldier with a common operating picture of the battle space and
    deliver an unmatched competitive edge. To ensure that the Department of
    Defense can implement the mixed reality advances being achieved in the
    commercial world, we respectfully request consideration of the
    following:

        I.  Fund studies for design, development and demonstration of
            military-specific AR applications using COTS systems that
            demonstrate improvement of battlefield situational awareness,
            which would lead over time to military-specific hardware and
            software solutions that will give our soldiers a force
            multiplier that no opponent will have.

       II.  Increase programs that encourage and enable collaboration
            between the military and commercial innovators such as
            cooperative research and development agreements (CRADAs) and
            JIDO's Hacking4Defense--a model based upon Silicon Valley's
            lean and agile innovation methodology.

      III.  Increase programs that support internal innovation so that our
            men and women in uniform can come up with great ideas and pull
            innovation out of the commercial space. The Navy's Innovation
            Jam, The Hatch, and The Bridge are commendable examples. The
            140,000 members of the fleet have many good ideas and bright
            people but are stifled by procedure and systems of record that
            prevent them from solving problems in an agile manner.

      IV.  Improve the ability for innovators to develop products for the
            military and feel confident that their IP will not be put at
            risk. This is particularly important if the DOD is going to
            leverage the most advanced technology that is funded by start-
            up investors and high tech companies that currently have a
            primary focus on commercial business. Allowing companies to
            continue to develop technology and more easily navigate through
            export control issues, e.g., ITAR, will support companies by
            allowing them to add DOD business development and engineering
            focus to DOD applications without fear that their core IP will
            be shared or put at risk in a way that is outside the company's
            control.

        As mixed reality technologies have matured over the last fifteen
    years, explorations of augmented and virtual reality defense
    applications have correspondingly increased. Since the year 2000, the
    U.S. Naval Research Laboratory has published over 50 papers describing
    the development and testing of a Battlefield Augmented Reality System
    (BARS) and the capabilities it imparts or enhances including X-ray
    vision and depth perception, information filtering, collaboration, and
    embedded training.\41\
    ---------------------------------------------------------------------------
        \41\ Julier, S; Baillot, Y; Lanzagorta, M; Brown, D; Rosenblum, L.
    ``Bars: Battlefield augmented reality system.'' In NATO Symposium on
    Information Processing Techniques for Military Systems. 2000.
    ---------------------------------------------------------------------------
    Other defense applications of COTS Augmented Reality innovation

        It is crucial to enable military applications of the most advanced
    innovations available in emerging technology, which today are often
    originate in the commercial sector.
        For example, the Augmented Immersion Team Training \42\ (AITT)
    system, developed by the Marine Corps and supported by the Office of
    Naval Research, was demonstrated in 2015. Through AR, AITT provides
    more realistic force-on-force ground training for small unit leaders,
    forward observers, and mortarmen, resulting in improved effectiveness
    and efficiency. Combining hardware and software components, AITT
    utilizes a commercial-off-the-shelf (COTS) head-worn display and
    tactical equipment such as binoculars to overlay realistic virtual
    elements onto real world landscapes. A wide array of virtual elements
    can be simulated including weapons, artillery and mortar effects, fixed
    and rotary wing aircraft, and targets such as enemy personnel, tanks
    and buildings, creating a more realistic training environment at a
    fraction of the cost of live training.
    ---------------------------------------------------------------------------
        \42\ Augmented Immersion Team Training, http://www.onr.navy.mil/
    Media-Center/Fact-Sheets/AITT.aspx, accessed 12/14/16.
    ---------------------------------------------------------------------------
        In 2015, Lockheed Martin and SRI International presented an
    augmented reality-based vehicle training system for tactical and
    gunnery training that simulated realistic and responsive training
    targets. Instructor software enabled instructors to run scenarios that
    resemble live fire training events without much of the associated costs
    and risks and allowing trainee performance statistics to be
    gathered.\43\ The AR system was tested on an Army Stryker operating in
    real range and coordinated simulations between the Styker's three
    driver periscopes, the gunner's remote weapons system (RWS), and the
    fire control unit (FCU), enabling real-time team collaboration. Much of
    the research literature on Augmented Reality takes the position that
    AR's potential will be fully realizable when highly robust and
    functional hardware is widely commercially available. Finally, these
    capabilities can now be supported by commercial-off-the-shelf AR
    hardware designed for use in industrial environments.
    ---------------------------------------------------------------------------
        \43\ Brookshire, J.; Oskiper, T.; et al., Military Vehicle Training
    with Augmented Reality. Interservice/Industry Training, Simulation, and
    Education Conference, November, 2015.

        Question 7. In your testimony you stated, ``Technology can take
    away jobs. It's true though that most times when it does, it creates
    new, even better jobs.'' Can you speak to how the expansion of AR
    technology will create ``new, even better jobs'' in the transportation,
    construction, defense, training and manufacturing sectors?
        Answer.
    Technology's impact on jobs

        When it comes to employment, the painful consequences of disruptive
    technology are more readily felt in the short term than the
    opportunities generated by rapid innovation, and often receive the
    lion's share of public attention. However, economic research shows that
    new technologies create many more jobs than are lost, and in the
    process create auxiliary economic benefits such as consumer surplus,
    greater variety and consumer choice, and increased convenience. Over
    the past 15 years, the Internet created 2.6 new jobs globally for every
    job it eliminated. This growth occurred mainly through the
    modernization of traditional activities: 75 percent of the economic
    impact came from companies who define themselves as traditional firms.
    Since Augmented Reality is a communication medium that connects people
    to information in a new way, it shares some characteristics with the
    World Wide Web, including the potential to touch nearly every
    traditional industry.
        Historically, the benefits of innovation have not been evenly
    distributed, especially for displaced employees who are older or have
    less formal education. Augmented Reality can help level the playing
    field for American workers and empower them to stay ahead of the curve
    in a shifting technological landscape--but before we turn to this topic
    let's look at two examples of related technologies that have had a net
    positive impact on job growth.
        Augmented reality is closely tied to the growing Industrial
    Internet of Things (IIoT), which is expected to create new jobs in
    industrial data science, robotics, IT solution architecture, industrial
    computer programming, and industrial UI/UX design, among other areas.
    At a macroeconomic level, the IIoT is powering the growing trend toward
    the outcome economy, where organizations shift their focus from the
    provision of products to the delivery of measurable outcomes important
    to the customer.\44\ A significant factor in new job creation in
    traditional industries is exactly this type of new business model
    enablement. From 2004 to 2014, manufacturing jobs declined by 2
    million, while services jobs have increased by 10 million.\45\
    Traditional businesses like General Electric are hiring thousands of
    software engineers to provide software and data services.\46\
    ---------------------------------------------------------------------------
        \44\ Industrial Internet of Things: Unleashing the Potential of
    Connected Products and Services. http://reports.weforum.org/industrial-
    internet-of-things/3-convergence-on-the-outcome-economy/. World
    Economic Forum. See section 3.2: The emergence of the outcome economy.
    Accessed
    12/16/16.
        \45\ Employment by major industry sector, Bureau of Labor
    Statistics. Accessed from: https://www.bls.gov/emp/ep_table_201.htm#1
        \46\ Power, B. Building a Software Start-Up Inside GE. https://
    hbr.org/2015/01/building-a-software-start-up-inside-ge. Accessed 12/16/
    16.
    ---------------------------------------------------------------------------
    Augmented Reality job creation in manufacturing: The Industrial
            Internet of Things and the link between productivity and
            employment

        One of the main driving forces behind the high demand for Augmented
    Reality (AR) applications in manufacturing is the capacity of AR to
    serve as the user interface for the Industrial Internet of Things
    (IIoT), displaying relevant sensor data, trends, and control
    information directly in the field of view of the worker on the factory
    floor. AR implementations in industrial contexts will create a range of
    new jobs including hardware and software systems integrators, data
    analysts, interface designers, trainers, and AR project managers.
        At a macroeconomic level, Augmented Reality is likely to increase
    demand for manufacturing jobs due to its ability to directly improve
    manufacturing productivity. As mentioned above, Augmented Reality
    technology delivers significant improvements in worker productivity in
    the context of manufacturing and assembly.\47\ This higher growth in
    manufacturing productivity, however, does not lead to a decline in
    employment. According to research by Yale Economics Professor William
    Nordhaus, the empirical evidence shows that ``rapid productivity growth
    leads to increased rather than decreased employment in manufacturing,''
    as increased productivity leads to lower prices, thereby expanding
    demand, which results in increased employment.\48\
    ---------------------------------------------------------------------------
        \47\ Hou, Lei, et al., ``Using animated augmented reality to
    cognitively guide assembly.'' Journal of Computing in Civil Engineering
    27.5 (2013): 439-451.
        \48\ Nordhaus, W. The Sources of the Productivity Rebound and the
    Manufacturing Employment. National Bureau of Economic Research, Working
    Paper No. 11354 May 2005. JEL No. O4, E1
    ---------------------------------------------------------------------------
        Manual work is and will continue to be a cornerstone of the
    economy, even as new technologies transform work environments from
    farming to the factory floor. However, there is a shortage of skilled
    workers in various manufacturing contexts. In addition to the
    macroeconomic dynamic explained above, Augmented Reality can help
    bridge the gap between unskilled workers and unmet demand for labor at
    a microeconomic level. For example, it has been shown that AR can help
    novice welders rapidly ramp up their skillset by superimposing an
    auxiliary visual signal directly in their line of sight over the weld
    pool image. Building upon a machine learning algorithm that calculates
    the optimal welding speed, the AR interface displays arrows with
    direction and amplitude, enabling trainees to make adjustments.\49\ For
    a broader range of skillsets, it has been shown that AR assistance
    systems significantly reduce errors, speed, and mental workload
    involved in manual assembly tasks, resulting in the ability to rapidly
    train workers and ramp up operations.\50\
    ---------------------------------------------------------------------------
        \49\ Y. Liu and Y. Zhang, ``Super welder in augmented reality
    welder training system: A predictive control approach,'' 2015 IEEE 24th
    International Symposium on Industrial Electronics (ISIE), Buzios, 2015,
    pp. 131-136.
        \50\ F. Loch, F. Quint and I. Brishtel, ``Comparing Video and
    Augmented Reality Assistance in Manual Assembly,'' 2016 12th
    International Conference on Intelligent Environments (IE), London,
    2016, pp. 147-150.
    ---------------------------------------------------------------------------
    I. Augmented Reality job creation in construction, transportation,
            defense, and
            training
    The ``relative demand for educated workers''

        Historical evidence from the decades prior to the Internet boom
    shows that new technology increased the relative demand for more
    educated workers, but only for a limited time. Echoing the healthcare
    example above, Ann Bartel's 1985 empirical study for the National
    Bureau of Economic Research found that ``the relative demand for
    educated workers declines as the capital stock (and presumably the
    technology embodied therein) ages'' and that ``the education-
    distribution of employment depends . . . strongly on the age of
    equipment'' suggesting that as new technologies become more integrated
    into everyday business operations, opportunities for all skill ranges
    increase.\51\ The same study found that ``the effect of changes in
    equipment age on labor demand is magnified in R&D-intensive
    industries,'' with the converse thus being true in less R&D intensive
    industries such as transportation and construction. If learning curves
    develop more rapidly, then the demand for less educated workers comes
    into play even more quickly after the introduction of new technologies.
    ---------------------------------------------------------------------------
        \51\ Bartel, A.; Lichtenberg, F. The Comparative Advantage of
    Educated Workers in Implementing New Technology: Some Empirical
    Evidence. National Bureau of Economic Research, Working Paper No. 1718.
    October 1985.
    ---------------------------------------------------------------------------
    Augmented reality improves learning curves, making labor more portable

        In a 2013 study titled Using Animated Augmented Reality to
    Cognitively Guide Assembly, researchers showed not only that AR enabled
    improved accuracy and reduction in errors in assembly tasks, but also
    improved novices' learning curves.\52\ This has been shown in many
    different environments including in surgical planning and training,
    where AR interfaces have been shown to improve performance in complex
    spatial reasoning tasks.\53\
    ---------------------------------------------------------------------------
        \52\ Hou, Lei, ibid.
        \53\ K. Abhari et al., ``Training for Planning Tumour Resection:
    Augmented Reality and Human Factors,'' in IEEE Transactions on
    Biomedical Engineering, vol. 62, no. 6, pp. 1466-1477, June 2015.
    ---------------------------------------------------------------------------
        As referenced by our written testimony to this committee on
    November 16, 2016, Boeing and Iowa State University's study, Augmented
    Reality work instructions improve accuracy, speed, focus and worker
    satisfaction when utilized in the training and operation of complex
    manufacturing tasks.\54\
    ---------------------------------------------------------------------------
        \54\ 1 Fusing Self-Reported and Sensor Data from Mixed-Reality
    Training, (I/ITSEC) 2014, Trevor Richardson, Stephen Gilbert, Joseph
    Holub, Frederick Thompson, Anastacia MacAllister, Rafael Radkowski,
    Eliot Winer Iowa State University, Paul Davies, Scott Terry, The Boeing
    Company
    ---------------------------------------------------------------------------
    How augmented reality levels the playing field for American workers

        So far, we've argued that augmented reality improves productivity,
    which in turn increases employment by reducing costs and increasing
    demand. We've also shown that introducing new technologies into the
    workplace increase employment of mid-skilled workers by generating
    efficiencies through on-the-job experience that open up new business
    models, also increasing demand and thereby increasing employment.
    Thanks to AR's ability to significantly improve learning curves, it
    will decrease relative demand for highly skilled workers and increase
    demand for less educated segments of the workforce.
        In our written testimony, we discussed how AR can empower workers
    to keep up with the rapidly changing pace of technology. When American
    workers can utilize Augmented Reality interfaces to rapidly learn, re-
    skill, and become cross-functionally proficient, it will transform the
    economy and dramatically reduce unemployment, eliminating mismatches
    between job vacancies and worker skillsets. AR allows those who are
    less formally educated to be trained (or re-trained) more quickly, more
    efficiently and less expensively, thereby reducing the uneven
    distribution of the benefits of innovation.
        In order for Augmented Reality to function well in the
    transportation, construction, defense, training and manufacturing
    sectors a whole range of infrastructure and services are required:

      1.  Software Engineers

      2.  AR Hardware Engineers

      3.  AR Content Developers

      4.  Data Analysts

      5.  User Experience Designers

      6.  Product and Project Managers

      7.  Security and Networking Engineers

        When new Internet-connected technologies are introduced, the
    obvious place to look for job creation is in roles related to hardware
    and software procurement and implementation, training, content
    development, integration, and networking and security, and data
    storage.
    AR job creation and economic transformation

        Augmented reality will certainly directly create those types of new
    jobs, but it will also have an indirect effect on the job market that
    is unique. Because AR can enhance the ability to rapidly understand,
    synthesize, and communicate new ideas, it enables workers to adapt to
    rapid change in the world of work. As we said in our initial testimony,
    AR technology allows you to overlay information into the real world and
    rapidly transfer knowledge that empowers workers.
        The United States has always been the central player in the
    Internet economy: the U.S. captured more than 30 percent of global
    Internet revenues and more than 40 percent of net income as of
    2011.\55\ The American economy as a whole can maintain its
    competitiveness by staying ahead of game-changing technologies like AR.
    ---------------------------------------------------------------------------
        \55\ Pelissie du Rausas, ibid.
    ---------------------------------------------------------------------------
                                     ______

         Response to Written Question Submitted by Hon. Joe Manchin to
                                 Brian Mullins
        Question. As a former Governor and in my role as a United States
    Senator, I have remained committed to enhancing the job climate in my
    state so that West Virginians have good paying jobs and the skills to
    compete in the global economy. Part of this job growth is going to come
    from the technology sector. We are beginning to see an uptick in
    technology startups in different parts of the state, but I believe
    there are opportunities for tools such as augmented reality to enhance
    workforce training.
        The technological advancements of the 21st century should not leave
    rural communities behind, and as West Virginia continues to develop its
    technology sector and train its workforce: How can augmented reality be
    used to train workers in the digital economy?
        Answer.
    I. Augmented Reality-based workforce training will prepare workers,
            across age groups and level of formal education, to compete and
            win in the global economy

        Augmented Reality (AR) is a game-changer for job training and on-
    the-job skill acquisition. Three decades of research supports the
    conclusion that AR improves learning, productivity, accuracy,
    efficiency, and job satisfaction in a variety of contexts including
    manufacturing,\1\,\2\ defense,\3\ aerospace,\4\
    construction,\5\ medicine \6\ and other sectors.
    ---------------------------------------------------------------------------
        \1\ Hou, Lei, et al., ``Using animated augmented reality to
    cognitively guide assembly.'' Journal of Computing in Civil Engineering
    27.5 (2013): 439-451.
        \2\ F. Loch, F. Quint and I. Brishtel, ``Comparing Video and
    Augmented Reality Assistance in Manual Assembly,'' 2016 12th
    International Conference on Intelligent Environments (IE), London,
    2016, pp. 147-150.
        \3\ Henderson, S. J.; Feiner, S. 2009. ``Evaluating the benefits of
    augmented reality for task localization in maintenance of an armored
    personnel carrier turret.'' International Symposium on Mixed and
    Augmented Reality, 2009 (ISMAR 2009). pp 135-144. Orlando, Florida.
        \4\ Caudell, T P and Mizell, D W 1992, Augmented reality: An
    application of heads-up display technology to manual manufacturing
    processes. Proc. Ieee Hawaii International Conf. on Systems Sciences,
    1992.
        \5\ Webster, Anthony, et al., ``Augmented reality in architectural
    construction, inspection and renovation.'' Proc. ASCE Third Congress on
    Computing in Civil Engineering. 1996.
        \6\ K. Abhari et al., ``Training for Planning Tumour Resection:
    Augmented Reality and Human Factors,'' in IEEE Transactions on
    Biomedical Engineering, vol. 62, no. 6, pp. 1466-1477, June 2015.
    ---------------------------------------------------------------------------
        AR technology empowers experts and novices alike to quickly learn
    new skills or be trained in a new area or sector--a particularly
    important benefit for workers who have lost their jobs and cannot
    easily find work in their current industry. For example, AR-based
    workforce training can assist a laid-off coal miner who went directly
    from high school into his or her career to be rapidly retrained in
    other, even unrelated, sectors without requiring two or four years of
    higher education. This increased efficiency means that job training (or
    re-training) is no longer cost-prohibitive, especially for older or
    less formally-educated workers. This is critically important in states
    like West Virginia where workers have struggled to transition their
    skillsets into other fields in the midst of a decline in traditional
    sectors such as mining and manufacturing.
        As referenced in our written testimony to this committee on
    November 16, 2016, Augmented Reality (AR) work instructions have been
    shown to improve accuracy, speed, focus and worker satisfaction when
    utilized in the training and operation of complex manufacturing tasks
    through visual, step-by-step work instructions overlaid directly on top
    of components to be assembled.\7\ In addition to shorter task
    completion times and less assembly errors, the visual and spatial
    nature of AR enables a lower total task load and a reduction in the
    learning curve of novice assemblers, while increasing task performance
    relevant to working memory.\8\ Compared with video-based work
    instructions, AR produces a significantly reduced number of errors and
    scores better in terms of time and overall mental workload.\9\
    ---------------------------------------------------------------------------
        \7\ Fusing Self-Reported and Sensor Data from Mixed-Reality
    Training, (I/ITSEC) 2014, Trevor Richardson, Stephen Gilbert, Joseph
    Holub, Frederick Thompson, Anastacia MacAllister, Rafael Radkowski,
    Eliot Winer Iowa State University, Paul Davies, Scott Terry, The Boeing
    Company.
        \8\ Hou, Lei, et al., ibid.
        \9\ F. Loch, F. Quint and I. Brishtel. ibid.
    ---------------------------------------------------------------------------
        Today, the majority of learning experiences occur out of context.
    Classroom training, online training modules, and online synchronous
    training are all variations of didactic content presentation. Augmented
    reality will provide learning professionals opportunities to engage
    students and trainees with scalable and effective mechanisms to
    practice new skills in a hands-on manner, while still being supported
    by digital tools. This is especially valuable for workers who may not
    have seen a college or vocational classroom in more than twenty years,
    if at all.
        How does AR improve the speed of knowledge-transfer and improve its
    retention? A key element is AR's ability to combine the real-world
    environment with digital information. When it comes to learning new
    concepts and skills, no training method beats hands-on experience.
    Experiencing the consequences of success and failure in real time helps
    us make neural connections that are much stronger and longer lasting
    than simply consuming content. Wearable head-up displays with AR
    capabilities give the wearer a view that fuses the complexity and
    messiness of the real world with the precision and reliability of a
    digital display, providing access to the real-world scene for the
    hands-on aspect of training, while enhancing it with didactic or
    reference information to keep us on track. It is notably effective in
    enhancing spatial reasoning.
    II. Enhancing the overall job climate

        At a macroeconomic level, Augmented Reality can enhance the job
    climate by increasing productivity, which increases demand, which then
    increases employment. For example, Augmented Reality is likely to
    increase demand for manufacturing jobs due to its ability to directly
    improve manufacturing productivity. Studies show that Augmented Reality
    technology delivers significant improvements in worker productivity in
    the context of manufacturing and assembly.\10\ This higher growth in
    manufacturing productivity, however, does not lead to a decline in
    employment. According to empirical research conducted by Yale Economics
    Professor William Nordhaus, the evidence shows that ``rapid
    productivity growth leads to increased rather than decreased employment
    in manufacturing,'' as increased productivity leads to lower prices,
    thereby expanding demand, which results in increased employment.\11\
    ---------------------------------------------------------------------------
        \10\ Hou, Lei, et al., ibid.
        \11\ Nordhaus, W. The Sources of the Productivity Rebound and the
    Manufacturing Employment. National Bureau of Economic Research, Working
    Paper No. 11354 May 2005. JEL No. O4, E1
    ---------------------------------------------------------------------------
    III. Augmented reality applications for rural areas

        Of course, even if increased demand for manufactured goods results
    in increased manufacturing employment, those jobs may be unavailable in
    some areas, especially in rural states, if there are few or no
    factories located there. But far from leaving rural communities behind,
    some of the strongest use cases for Augmented Reality (AR) are
    specifically tailored to rural industries. As several senators have an
    interest in this topic, we have prepared the following discussion on AR
    applications in agriculture and forestry.
    i. Augmented Reality and Smart Agriculture

        State-of-the-art farm management practices such as precision
    agriculture, site specific crop management, and Internet of Things
    (IoT) farming have reduced costs and improved yields for farmers around
    the world. Augmented Reality (AR) applications can enhance many aspects
    of smart agriculture by providing tools that streamline the measurement
    and collection of inputs, and the delivery of analysis and insights
    that enable data-driven decision making.
        IoT smart agriculture is one of the driving forces that allows the
    United States to produce 7,637 kilograms of cereal per hectare, nearly
    twice the world average in crop yield.\12\ A wide range of sensors are
    now being implemented: BI Intelligence predicts that IoT device
    installations in the agriculture world will increase from 30 million in
    2015 to 75 million in 2020, a compound annual growth rate of 20
    percent.\13\
    ---------------------------------------------------------------------------
        \12\ Cereal yield (kg per hectare). The World Bank. Accessed from:
    http://data.worldbank.org/indicator/AG.YLD.CREL.KG. Accessed 12/18/16.
        \13\ Meola, Andrew. ``Why IoT, Big Data & Smart Farming is the
    Future of Agriculture.'' Business Insider. October 7, 2016. Accessed
    from: http://www.businessinsider.com/internet-of-things-smart-
    agriculture-2016-10. Accessed 12/18/16.
    ---------------------------------------------------------------------------
        Thanks in part to the steady reduction in electronics and data
    storage costs, a wide range of sensors are being utilized across smart
    agriculture including biological, chemical and gas analyzers, water
    sensors, meteorological sensors, weed seekers, optical cameras, Light
    Detection and Ranging (LIDAR), photometric sensors, soil respiration,
    photosynthesis sensors, Leaf Area index (LAI) sensors, range finders,
    Dendrometers, and hygrometers. Whether in unmanned aerial or ground
    vehicles (UAVs or UGVs), or stationed in the field, these IoT sensors
    sample, measure and collect key performance data including soil
    fertility diagnostics, yield as-planted, and as-applied, and water
    utilization. AR technology could provide additional insights into the
    optimization of seed, fertilizer, and chemical input, planting
    prescriptions, profit mapping and analysis and future crop planning.
        An AR interface displayed within devices such as the DAQRI Smart
    Helmet can show this vital information contextually within individual
    management zones, with real-time data like soil moisture levels,
    sunlight cations, projected Nitrogen use, and other advanced analytics
    appearing in the wearable device's view as the farmer traverses the
    ground.
        Augmented reality systems have been proposed for agricultural uses
    across the spectrum including insect identification and pest
    management,\14\ damage level estimation of diseased plant leaves,\15\
    outdoor visualization of agricultural geographic information system
    (GIS) data,\16\ and GPS guidance for agricultural tractors.\17\
    Additional use cases might include visualizing prescriptive planning,
    enabling data collection of variables such as crop yield, terrain
    features and topography, organic matter content, moisture levels,
    nitrogen levels, pH, soil electrical conductivity, magnesium, and
    potassium.
    ---------------------------------------------------------------------------
        \14\ A. Nigam, P. Kabra and P. Doke, ``Augmented Reality in
    agriculture,'' 2011 IEEE 7th International Conference on Wireless and
    Mobile Computing, Networking and Communications (WiMob), Wuhan, 2011,
    pp. 445-448.
        \15\ S. Prasad, S. K. Peddoju and D. Ghosh, ``Mobile Mixed Reality
    Based Damage Level Estimation of Diseased Plant Leaf,'' 2014 Eighth
    International Conference on Next Generation Mobile Apps, Services and
    Technologies, Oxford, 2014, pp. 72-77.
        \16\ G. R. King, W. Piekarski and B. H. Thomas, ``ARVino--outdoor
    augmented reality visualisation of viticulture GIS data,'' Fourth IEEE
    and ACM International Symposium on Mixed and Augmented Reality
    (ISMAR'05), 2005, pp. 52-55.
        \17\ Santana-Fernandez, Javier; Gomez-Gil, Jaime; Del-Pozo-San-
    Cirilo, Laura. 2010. ``Design and Implementation of a GPS Guidance
    System for Agricultural Tractors Using Augmented Reality Technology.''
    Sensors 10, no. 11: 10435-10447.
    ---------------------------------------------------------------------------
        Many other data visualization use cases that improve decision
    making in real-time could be implemented, for example three-dimensional
    on-site visualization of topographic maps and geomatic data such as
    altitude, expected crop yield and actual crop yield.\18\
    ---------------------------------------------------------------------------
        \18\ Goddard, Ted. ``Augmented Reality Farming Geomatics.''
    Accessed from: https://www.you
    tube.com/watch?v=qrZYb5aa44k. Accessed on 12/16/16.
    ---------------------------------------------------------------------------
        It is well within the capabilities of AR technology to provide
    farmers push notifications, with a farmer looking out over the field
    and red warning notifications popping up where weed, insect, disease or
    drought pressures pass a given threshold.
        Congress and the Administration, whether through the U.S.
    Department of Agriculture or other Federal agencies, should provide
    seed money and other grants to set up field studies in this area to
    document the outcomes and determine how much benefit the farming
    community may derive from these agricultural applications of AR
    technology.
    ii. Augmented Reality Farm Equipment Repair & Maintenance

        Augmented Reality can enhance farm operations by providing ways to
    improve outcomes and increase efficiency in training, maintenance,
    repair, and part ordering of farm machinery and equipment. Similar
    applications of AR as a facilitator in the maintenance of aircraft have
    resulted in better learning and recall, improving knowledge-transfer
    and training outcomes.\19\ This same use of AR for airplanes can be
    applied to farm equipment to help farm managers monitor machine
    analytics, anticipate problems and analyze breakdowns quickly, reducing
    downtime and helping to keep planting and harvest on schedule.
    Moreover, this technology shows potential in reducing overall use of
    pesticides while targeting problem areas. It may also reduce farmers'
    trips to the field thanks to the increased connectedness it provides.
    ---------------------------------------------------------------------------
        \19\ Valimont, R. B., Gangadharan, S. N., Vincenzi, D. A., &
    Majoros, A. E. (2007). The Effectiveness of Augmented Reality as a
    Facilitator of Information Acquisition in Aviation Maintenance
    Applications. Journal of Aviation/Aerospace Education & Research,
    16(2). Retrieved from http://commons.erau.edu/jaaer/vol16/iss2/9.
    ---------------------------------------------------------------------------
    iii. Augmented Reality Applications in Forestry

        In forestry--another key rural industry--smart IoT techniques are
    being utilized with the aim of controlling parameters of interest such
    as diameter of trees, crown height, bark thickness and other variables,
    such as canopy, humidity, illumination, and
    CO2 transformation.
        The application of wearables in forestry can be used in identifying
    and managing tree populations utilizing the same parameters as used in
    individual management zones with AR in Farming. In addition, wearables
    could provide first rate field training for students and new employees
    in real-time tree identification and other relevant facts.
    IV. Augmented Reality Applications in Mining

        In addition to these examples of Augmented Reality (AR)
    applications in rural areas, there are excellent use cases for AR in
    mining. Increased access to relevant real-time information saves time
    for workers and improves decision-making. This is one of the key
    benefits that AR can provide to mine workers.
        Pervasive sensing--the practice of deploying large numbers of
    sensors and linking them to communication networks in order to analyze
    their collective data--is already being used in the mining industry to
    support remote operations, health and safety, and exploration and
    mapping. The identification and management of ore grade, which is
    relevant across all stages of the mining process, can be provided by
    sensing technologies during exploration, extraction, haulage and
    processing activities.\20\ AR has been proposed as a mechanism to
    visualize sub-surface mining data,\21\ and beyond that depth and
    localization data, 3D ranging and mapping, infrared data, and machine
    condition monitoring data are all examples of information that can be
    displayed in context to workers onsite using Augmented Reality head-up
    displays in order to improve operational efficiency and safety.
    ---------------------------------------------------------------------------
        \20\ M. E. Kiziroglou; D. E. Boyle; E. M. Yeatman; J. J. Cilliers,
    ``Opportunities for sensing systems in mining,'' in IEEE Transactions
    on Industrial Informatics, vol.PP, no.99, pp.1-1.
        \21\ Roberts, Gethin W., et al., ``The use of augmented reality,
    GPS and INS for subsurface data visualization.'' FIG XXII International
    Congress. 2002. APA
    ---------------------------------------------------------------------------
        Augmented Reality can also help reduce mining accidents and lost
    workers. Major safety issues in the mining industry occur when
    personnel are in the field, such as when workers get lost underground
    and can no longer find their way back to the surface, or when miners
    encounter dangerous or explosive gases. Wearable AR devices have the
    additional added benefit of providing worker localization, allowing
    teams to remain in contact when miners lose visual contact with their
    teammates, and enabling the rapid localization of workers when
    emergency attention is needed.
                                     ______

         Response to Written Question Submitted by Hon. John Thune to
                              Stanley Pierre-Louis
        Question. As the potential applications for augmented reality grow,
    it is important to address cybersecurity risks to consumer and business
    information and computer generated visuals. How can companies use
    existing, voluntary guidance on best practices, such as those from the
    National Institute of Standards and Technology, and enhanced cyber-
    threat information sharing to assist in cybersecurity efforts?
        Answer. Developers of augmented and mixed reality products and
    services rely on common communications tools and networks. These
    include, among other things, personal computers, mobile and other
    handheld devices, video game consoles, communications networks, servers
    and various types of network-connected storage. Like their peers,
    developers of augmented and mixed reality products and services must
    assess potential vulnerabilities in order to defend their systems,
    products and information from threats posed by malicious actors.
        The National Institute of Standards and Technology's (``NIST'')
    voluntary cybersecurity framework serves as a critical tool for any
    organization looking to establish and/or improve its procedures for
    assessing, managing and reducing cybersecurity risk. Although the NIST
    framework focuses on protecting critical infrastructure, such as
    transportation, water and communications systems, several of its
    priorities apply more broadly, including:

       protecting, defending and securing information
            infrastructure and digital networks;

       innovating and accelerating investment for the security and
            growth of digital networks and the digital economy;

       enhancing cybersecurity workforce capabilities; and

       ensuring an open, fair, competitive and secure global
            digital economy for companies and consumers alike.\1\
    ---------------------------------------------------------------------------
        \1\ Commission on Enhancing National Cybersecurity, Report on
    Securing and Growing the Digital Economy (Dec. 1, 2016), https://
    www.nist.gov/document/cybersecurity-commission-report-final-postpdf.

        The NIST framework provides a coherent baseline for corporate
    cybersecurity management programs and has the added benefit of being
    easy to understand by nontechnical professionals. Its design can help
    organizations craft a cybersecurity program or improve an existing one.
    It creates a common language for organizations to understand their
    cybersecurity posture, set goals for cybersecurity improvements,
    monitor their progress and foster communications internally and
    externally. Stakeholders should continue to improve upon this
    framework, but adoption should remain voluntary based on the individual
    needs of each organization.
        Companies can also avail themselves of other resources offered by
    Federal agencies, including automated alerts published by NIST, the
    United States Computer Emergency Readiness Team (``US-CERT'') and the
    Federal Bureau of Investigation (``FBI''), all of which serve as key
    resources regarding security threats, incidents, vulnerabilities and
    even critical software updates.
        In addition, the Cybersecurity Information Sharing Act of 2015,
    along with the creation of Information Sharing and Analysis
    Organizations, will likely facilitate the dissemination of critical
    information regarding cybersecurity threats and defensive measures.
                                     ______

        Response to Written Questions Submitted by Hon. Marco Rubio to
                              Stanley Pierre-Louis
        Question 1. As we conduct our oversight role as lawmakers, how can
    we ensure that technology start-ups, like Magic Leap, are able to
    continue to advance in the 21st century economy without imposing
    unnecessary red tape?
        Answer. Succeeding in the digital economy depends largely on access
    to talent, capital and consumers. The government can assist that effort
    by minimizing restrictions on each of these components, thereby
    reducing barriers to markets--especially for start-ups and other small
    businesses.
        Access to talent requires a workforce equipped to innovate. For the
    video game industry, special emphasis is placed on candidates steeped
    in STEM (Science, Technology, Engineering and Mathematics) and STEAM
    (STEM + Arts) education as video games require both technology and
    content creation skillsets. Smarter investment in education and in job
    training programs would serve to bolster the pipeline for a workforce
    in the tech and creative content sectors.
        Access to capital requires incentive-based market conditions
    created by policies that encourage investment. At the Federal level,
    this means adopting tax policies that spur economic activity for
    business and eliminating regulations that restrain economic growth
    opportunities.
        Access to consumers requires a state-of-the-art, networked and
    secure infrastructure available in all regions of the country. Broader
    broadband deployment in both metropolitan and rural areas would create
    new opportunities to reach consumers where they are and widen consumer
    offerings.
        For start-ups, the success factors outlined above are all the more
    critical. Magic Leap, for example, launched in 2010 in a region not
    traditionally known for tech start-ups (Ft. Lauderdale, FL).
    Nonetheless, it has attracted more than 800 employees and raised more
    than $1.4B in investment capital to work towards its mission to create
    a new technology platform. That platform has the potential to transform
    applications in fields as varied as entertainment, medicine and
    engineering. Regulating its future before it has the opportunity to
    come to market would undercut American entrepreneurial initiative and
    technological innovation at a critical juncture.

        Question 2. In your opinion, would current regulations placed on
    the gaming and computer industry be appropriate to apply to this new
    generation technology?
        Answer. Federal laws and regulations covering the video game and
    computer industries, such as privacy and data security, have proven to
    be sufficiently robust to protect consumer interests while remaining
    flexible enough to allow industries to innovate and deliver products
    and services to customers specified to their needs. Moreover, in each
    state and territory, laws governing negligence, trespass, privacy, data
    protection and product liability are commonplace. In short, today's
    legal framework should prove sufficient and adaptable to cover new
    technologies like augmented and mixed reality.
        ESA's members are committed to meaningful privacy and data security
    protections. A hallmark of the video game industry remains its creation
    of a voluntary program that educates consumers about the content they
    purchase. As noted in our earlier testimony, in 1994, the video game
    industry launched the Entertainment Software Rating Board (``ESRB''), a
    non-profit, self-regulatory body that assigns ratings for video games
    and apps so parents can make informed choices. The ESRB rating system
    encompasses guidance about age-appropriateness, content and interactive
    elements. The Federal Trade Commission (``FTC'') has repeatedly praised
    the effectiveness of the ESRB rating system, our industry's compliance
    with the system and its acceptance among parents.\2\ Notwithstanding
    this support, several states passed ``harmful to minors'' legislation
    seeking to stop the sale of certain games. In 2011, however, the U.S.
    Supreme Court recognized in Brown v. Entertainment Merchants
    Association that video games are expressive works that enjoy the same
    First Amendment protections as ``books, plays, and movies.'' \3\ In an
    opinion by the late Justice Antonin Scalia, the Supreme Court rejected
    the argument that ``video games present special problems'' because they
    are ``interactive,'' noting that ``interactivity'' has always been the
    goal of expressive works: ``the better it is, the more interactive.''
    \4\
    ---------------------------------------------------------------------------
        \2\ See FTC Undercover Shopper Survey on Entertainment Ratings
    Enforcement Finds Compliance Highest among Video Game Sellers and Movie
    Theaters (March 25, 2013), https://www.ftc.gov/news-events/
    pressreleases/2013/03/ftc-undercover-shopper-survey-entertainment-
    ratings-enforcement; FTC, Marketing Violent Entertainment to Children,
    28, 30 (Dec. 2009), https://www.ftc.gov/reports/marketing-violent-
    entertainmentchildren-sixth-follow-review-industry-practices-motion;
    and FTC, Marketing Violent Entertainment to Children, 27, 29, C-18,
    (April 2007), https://www.ftc.gov/reports/marketing-violent-
    entertainment-children-fifth-follow-reviewindustry-practices-motion.
        \3\ 564 U.S. 786, 790 (2011).
        \4\ Id. at 798.
    ---------------------------------------------------------------------------
        The Supreme Court left little doubt that our foundational laws
    governing speech are well-equipped to address emerging technologies
    like augmented and mixed reality. Still, threats to First Amendment and
    other freedoms may arise as new products and experiences come to
    market. Instead, government should encourage industry to continue to
    foster voluntary, self-regulatory programs that create awareness while
    seeking to secure consumer adoption.

        Question 3. Autism is an issue I feel very passionate about and
    have worked on going back to my time in the Florida legislature. Some
    have suggested that augmented reality games can benefit people on the
    autism spectrum in terms of getting them out of the house and
    developing their social skills. Is the industry doing any of its own
    scientific research to determine the actual benefits of augmented
    gaming to people on the autism spectrum?
        Answer. We applaud your commitment to improving the lives of those
    living with autism spectrum disorders.
        Medical research continues to improve the diagnosis, prevention and
    treatment of autism and its associated medical conditions. As your
    question suggests, the use of augmented reality and GPS location-based
    games have been used to encourage those on the autism spectrum to
    explore their surroundings and develop social interaction skills.\5\
    According to an educator who has conducted studies on the use of
    computer games to address autism, the visual stimuli in certain games
    improve the learning process for autistic persons.\6\ Other researchers
    have noted that the social nature certain games helps increase sensory
    input, build family bonds, promote social acceptance and inclusion,
    encourage reciprocal conversations and create a sense of
    accomplishment.\7\
    ---------------------------------------------------------------------------
        \5\ While some medical professionals and researchers have made use
    of certain video games to address autism, we are not aware of any video
    game developers making claims that gameplay provides medical benefits
    to autism patients.
        \6\ Samantha Finch, ``Pokemon Go'' & Autism: Augmented Reality
    Game's Success in Getting Autistic Children Out Of Their Comfort Zone,
    Parent Herald (July 18, 2016), http://www
    .parentherald.com/articles/55253/20160718/pok%C3%A9mon-go-autism-
    augmented-reality-game-s-success-getting-autistic.htm.
        \7\ Malinda Robedeau, Pokemon Go: Life Changing Benefits for those
    with Autism, GT Independence (Aug. 23, 2016), https://
    www.gtindependence.com/pokemon-go-life-changing-benefits-for-those-
    with-autism/.
    ---------------------------------------------------------------------------
        More broadly, medical researchers have employed augmented reality
    games to enhance social interaction and hand-eye coordination in
    children with autism. These researchers found that the games appeared
    to help ease the patients into becoming more comfortable around
    unfamiliar people.\8\ They also observed that these games appeared to
    improve concentration and imagination because of their repetitive
    movement and visual feedback. In addition, some researchers believe
    that augmented reality games may improve the ability of those with
    autism to read social cues and learn to pretend play.\9\
    ---------------------------------------------------------------------------
        \8\ S.K. Bhatt, et al., Augmented Reality Game Therapy for Children
    with Autism Spectrum Disorder, Int'l Journal on Smart Sensing and
    Intelligent Systems, Vol. 7, No. 2 (March 2014), www.s2is.org/Issues/
    v7/n2/papers/paper5.pdf; see also Laura Bartoli, et al., Exploring
    Motion-Based Touchless Games for Autistic Children's Learning, ACM
    (June 2013), www.asso
    ciazioneastrolabio.it/wp-content/uploads/2014/04/Articolo-New-York.pdf;
    see also Lizbeth Escobedo, et al., Using Augmented Reality to Help
    Children with Autism Stay Focused, IEEE Pervasive Computing (Jan.
    2014), https://www.researchgate.net/publication/260526735_Using
    _Augmented_Reality_to_Help_Children_with_Autism_Stay_Focused.
        \9\ Olivia Reese, Autism and Google Glass: Augmented Reality
    Headwear Teaches Autistic People To Read Social Cues & Emotions, Parent
    Herald (Sept. 23, 2016), http://www.parent
    herald.com/articles/68752/20160923/autism-googleglass-augmented-
    reality-headwear-teaches-autistic-people-read.htm; see also Monica
    Rozenfeld, Augmented Reality Can Help Children With Autism Tap Into
    Their Imaginations, The Institute (April 1, 2015), http://
    theinstitute.ieee.org/technology-topics/consumer-electronics/augmented-
    reality-can-help-children-withautism-tap-into-their-imaginations.
    ---------------------------------------------------------------------------
        As mentioned in earlier testimony, Microsoft is already selling its
    mixed reality visor, called HoloLens, to developers. Applications under
    development include several business, engineering and architectural
    projects. In the health field, uses of HoloLens include:

       assisting medical students with anatomy curriculum at Case
            Western's medical schools;\10\
    ---------------------------------------------------------------------------
        \10\ Kathryn Jeffords, Virtual and Augmented Reality: Changing the
    Game in Healthcare, Science Media Awards Summit in the Hub (June 29,
    2016), www.s2is.org/Issues/v7/n2/papers/paper5.pdf.

       early testing by Duke University doctors to assist with
            brain surgery;\11\
    ---------------------------------------------------------------------------
        \11\ Laurent Giret, Doctors at Duke University are Testing HoloLens
    Assisted Brain Surgery, OnMSFT (October 2016), https://www.onmsft.com/
    news/doctors-at-duke-university-are-testing-hololens-assisted-brain-
    surgery.

       use by spinal surgeons in Brazil to perform more accurate
            spinal fusions;\12\ and
    ---------------------------------------------------------------------------
        \12\ Megan Wood, Kathryn Jeffords, Brazilian Surgeons Utilize
    Microsoft's HoloLens for Spinal Fusions: 5 Highlights, Becker's Spine
    Review (Dec. 5, 2016), http://www.beckersspine.com/orthopedic-a-spine-
    device-a-implantnews/item/34413-brazilian-surgeons-utilize-microsoft-s-
    hololens
    -for-spinal-fusions-5-highlights.html.

       enabling medical students to practice abdominal examinations
            with a physical simulator before facing real patients.\13\
    ---------------------------------------------------------------------------
        \13\ See Medical Simulation demonstration, https://www.youtube.com/
    watch?v=JGiVVObY0Ew.

        Applications of HoloLens to address autism have yet to occur.
    However, researchers at the Lakeside Center for Autism (Washington) as
    well as at the College of Staten Island (New York) have begun to employ
    a motion-based technology developed by Microsoft, known as Kinect, to
    study whether its use can improve the lives of autistic children by
    encouraging physical and educational activities.\14\
    ---------------------------------------------------------------------------
        \14\ See Lakeside Center for Autism demonstration, https://
    www.youtube.com/watch?v=uuP6
    d42hK8k; see College of Staten Island demonstration, http://
    www.playfitness.com/autism-research-project-edu.

        Question 4. What would you say our high schools and universities
    can be doing better in the coming years to ensure that people in
    Florida and in the United States acquire the skills and preparation to
    fill these jobs?
        Answer. As noted above, jobs in the digital economy will
    increasingly rely on STEM and STEAM skillsets. For students, this may
    mean placing more emphasis on coding, engineering and other computer-
    related coursework. For those already in the workforce who need to
    transition to a job in a technology field (particularly in rural
    areas), this may mean acquiring new skills through re-training
    programs. Augmented and mixed reality technologies promise to play a
    role in both scenarios.
        For its part, the video game industry has worked diligently to
    encourage educational initiatives that expand opportunities in the
    digital economy, including through:

       the National STEM Video Game Challenge, an annual game
            design competition that challenges students and developers to
            create original games that stimulate interest in science,
            technology, engineering and math learning;\15\
    ---------------------------------------------------------------------------
        \15\ See http://stemchallenge.org/featured/national-stem-video-
    game-challenge-launches-fifth-competition/.

       the ESA LOFT (Leaders on the Fast Track) Video Game
            Innovation Fellows program, which, in collaboration with the
            Hispanic Heritage Foundation (HHF), encourages minorities ages
            15-25 to create original video games and apps to address social
            issues in their communities;\16\ and
    ---------------------------------------------------------------------------
        \16\ See http://www.loftcsl.org/esa_loft_fellowship.

       the ESA Foundation, which awards scholarships to the next
            generation of industry innovators and supports charitable
            organizations and schools that leverage entertainment software
            and technology to create meaningful opportunities for America's
            youth.\17\
    ---------------------------------------------------------------------------
        \17\ See http://www.esafoundation.org/.

        Our industry has also partnered with the U.S. Department of
    Education to create ED Games Day, which entails a mini-conference that
    highlights video games created as tools for learning as well as a
    ``game jam'' and research presentations on educational games.\18\ In
    addition, ESA has sponsored education-related events at E3, its annual
    industry expo.\19\ And, ESA works with EverFi, an education technology
    innovator, on the ESA Digital Living Project, which combines the power
    of cutting-edge instructional design, rich media, online video games
    and real world simulations to educate middle school and high school
    students about technology, digital literacy and career opportunities in
    STEM fields. Since the program's inception, the ESA Digital Living
    Project has reached nearly 20,000 students across three states.\20\
    ---------------------------------------------------------------------------
        \18\ See http://blog.ed.gov/2016/01/ed-games-day-comes-to-
    washington-d-c/.
        \19\ Tony Wan, Video Game Industry Gives Education a Reboot at E3
    2015, EdSurge News (June 21, 2015), https://www.edsurge.com/news/2015-
    06-21-video-game-industry-gives-education-a-reboot-at-e3-2015.
        \20\ See info.everfi.com/rs/everfi/images/
    ESA_PressRelease_May%2019_FINAL.pdf (May 19, 2014).
    ---------------------------------------------------------------------------
        We look forward to continued work with educators to help prepare
    students for the next wave of opportunities made possible by these
    technologies.

        Question 5. What message would you like to send to educators and
    students alike about the industry's future and the opportunities it
    presents?
        Answer. The video game industry sits at the intersection of
    creativity and innovation. We bring together the best minds in
    interactive content development and technology to entertain audiences
    around the world. Our industry also has proven to be a strong engine
    for economic growth. In 2015, the industry generated more than $23.5
    billion in revenue in the United States, and it directly and indirectly
    employed more than 146,000 people.\21\ Also in 2015, there were 1,641
    video game companies in the United States, including 60 in Florida,
    where games like NFL Madden 17 by EA Sports are made.\22\ Moreover, the
    average compensation for a video game industry employee was nearly
    $95,000.\23\ In addition, some 406 U.S. colleges and universities had
    video game design programs in 2015, including at least 20 in
    Florida.\24\ In short, the video game industry remains on a growth
    trajectory, creating a never-ending quest to recruit the best and
    brightest.
    ---------------------------------------------------------------------------
        \21\ See ESA 2015 Annual Report, http://www.theesa.com/wp-content/
    uploads/2016/04/ESA-Annual-Report-20151.pdf, and Video Games in the
    21st Century, The 2014 Report, http://www.theesa.com/wp-content/
    uploads/2014/11/VideoGames21stCentury_2014.pdf.
        \22\ See http://www.theesa.com/article/new-research-underscores-
    breadth-and-vibrancy-of-u-s-video-game-industry/; see also http://
    www.theesa.com/about-esa/courses-certificates-degree-programs/.
        \23\ See Video Games in the 21st Century, The 2014 Report, http://
    www.theesa.com/wp-content/uploads/2014/11/
    VideoGames21stCentury_2014.pdf. Overall, the average annual 2015
    compensation paid to core copyright workers is $93,221, which far
    exceeds the average annual compensation paid to all U.S. workers--
    $67,715--amounting to a 38 percent ``compensation premium'' over the
    average U.S. annual wage. See http://www.iipawebsite.com/pdf/
    2016CpyrtRpt
    Full.PDF.
        \24\ See http://www.theesa.com/about-esa/courses-certificates-
    degree-programs/. In fact, the Princeton Review ranks three Florida
    universities among the ``Top 25 Graduate Schools to Study Game Design
    for 2016,'' including the University of Miami. See https://
    www.princeton
    review.com/press/game-design-press-release.
    ---------------------------------------------------------------------------
        However, national statistics regarding digital literacy have
    highlighted the need to provide more STEM and STEAM education around
    the country. In 2015, of the nearly 3.8 million ninth graders in the
    country, only six percent were expected to choose a STEM-focused degree
    in college.\25\ Video games may prove crucial to attracting and
    retaining students in STEM and STEAM fields.\26\ In fact, a recent
    study found that combining video games with other subjects, including
    those in the STEM and STEAM fields, doubled the amount of women in
    those educational programs and boasted an 88 percent retention
    rate.\27\
    ---------------------------------------------------------------------------
        \25\ See ESA 2015 Annual Report, http://www.theesa.com/wp-content/
    uploads/2016/04/ESA-Annual-Report-20151.pdf.
        \26\ Jessica Trybus, Game-Based Learning: What it is, Why it Works,
    and Where it's Going, New Media Institute (2014), http://
    www.newmedia.org/game-based-learning--what-it-is-why-it-works-and-
    where-its-going.html.
        \27\ Rich Taylor, Opportunities to Learn, Work With Video Games
    Multiply, Huffington Post (Nov. 11, 2015), http://
    www.huffingtonpost.com/rich-taylor/opportunities-to-learn-wo_b_8538
    426.html; see also Priming the Pump 2015: Higher Education Video Game
    Alliance Survey of Program Graduates (2015), http://docplayer.net/
    5662014Priming-the-pump-2015-higher-education-video-game-alliance-
    survey-of-program-graduates.html.
    ---------------------------------------------------------------------------
        We encourage educators to embrace STEM and technology education
    opportunities, leverage technology in a safe and effective manner and
    create active pathways for career success in STEM, STEAM and other
    related fields.

        Question 6. The interface created by these new technologies can be
    a tremendous asset to the Department of Defense, especially for
    training. How can the Department of Defense collaborate with innovators
    to push the limits of mixed reality technologies to ensure our men and
    women in uniform continue to be the best trained and equipped fighting
    force on this Earth?
        Answer. The military has made extensive use of augmented and mixed
    reality technologies for training and battlefield operations.
        In training, augmented and mixed reality technologies have been
    used to improve upon conventional methods by providing more a
    realistic, immersive experience for the trainees while reducing costs
    for the military.\28\ These technologies simulate real-life
    environments, targets and threat situations, whether in flight, at sea
    or on the ground. They enable the military to train on scenarios that
    are too difficult, dangerous and/or costly to practice in the field or
    even in a conventional simulation.\29\ These technologies also make
    learning more effective by providing the option of training scenarios
    at multiple levels of difficulty.\30\ And, they can train soldiers on
    the capabilities and maintenance of vehicles and other equipment under
    various conditions.\31\
    ---------------------------------------------------------------------------
        \28\ See Augmented Reality, U.S. Naval Research Laboratory, https:/
    /www.nrl.navy.mil/itd/imda/research/5581/augmented-reality.
        \29\ Oliver Baus, et al., Moving from Virtual Reality Exposure-
    Based Therapy to Augmented Reality Exposure-Based Therapy: A Review,
    Frontiers in Human Neuroscience (March 4, 2014), http://
    journal.frontiersin.org/article/10.3389/fnhum.2014.00112/full.
        \30\ Id.
        \31\ Sabine Webel, et al., An Augmented Reality Training Platform
    for Assembly and Maintenance Skills, Robotics and Autonomous Systems,
    Vol. 61, Issue 4 (April 2013) at pp. 398-403, http://
    www.sciencedirect.com/science/article/pii/S0921889012001674.
    ---------------------------------------------------------------------------
        In combat, augmented and mixed reality technologies have the
    potential to address innumerable challenges. For example, using
    augmented reality visors, a soldier can have data superimposed in her
    field of view in real time, thereby maintaining her gaze on the
    battlefield while processing the information rather than by looking
    down at a phone or a laptop.\32\ Soldiers and intelligence centers can
    share real-time updates on battlefield conditions, geo-location of
    allies and target coordinates.\33\ These technologies can also provide
    immersive functionality, like ``X-ray vision,'' which enables the
    soldier to see an object (e.g., an enemy) that is obstructed by another
    object (e.g., wreckage).\34\ And, these technologies can serve a
    filtering function by using algorithms to limit the quantity and type
    of information displayed to each user.\35\
    ---------------------------------------------------------------------------
        \32\ Andrew Rosenblum, Augmented Reality Glasses are Coming to the
    Battlefield, Popular Science (April 22, 2015), http://www.popsci.com/
    experimental-ar-glasses-offer-marines-hands-free-intel.
        \33\ Id.
        \34\ See Augmented Reality, U.S. Naval Research Laboratory, https:/
    /www.nrl.navy.mil/itd/imda/research/5581/augmented-reality.
        \35\ Id.
    ---------------------------------------------------------------------------
        Growing the potential applications of augmented and mixed reality
    technologies for military readiness will require an investment in
    research and talent development.

        Question 7. Much of the attention towards augmented, virtual, and
    mixed reality technologies have been devoted towards gaming and
    entertainment purposes. I believe companies such as Magic Leap and
    Microsoft have good reasons to be focusing on the business application
    for this interface. Can you elaborate on how such technology platforms
    could help increase productivity in the workplace or increase learning
    and proficiency for students?
        Answer. The video game industry's use of augmented and mixed
    reality technologies will focus primarily on engaging audiences to
    entertainment them. However, other uses of these technology platforms
    appear ripe for enhancing workplace productivity and classroom
    learning.
        In the workplace, emerging business applications include heads-up
    displays in manufacturing systems to support complex production
    processes, collaborative product design and prototyping; remote
    assistance from engineers and technicians; medical systems that enable
    surgeons to access relevant data during surgery without being
    distracted; and education and training.\36\ Experts predict that the
    business applications of these technologies will multiply exponentially
    as more businesses begin to adopt them.\37\ In fact, some think that
    these technologies will entirely change the way we do business. For
    example, collaboration among remote employees could become seamless;
    with augmented reality and mixed reality, it could be as if every
    employee were in the same room and able to write on the same white
    board. Employee training could be transformed from a one-dimensional
    experience to a completely immersive one, in which the employee can
    practice a task in a simulated, real-world setting.\38\ In fact,
    Microsoft is working with educational publisher Pearson to use the
    HoloLens to create a number of learning tools, including online
    tutoring and coaching in areas as disparate as nursing, engineering and
    construction.\39\
    ---------------------------------------------------------------------------
        \36\ See AR and Wearable Tech is a Marriage Made for the Enterprise
    says Beecham Research (Jan. 20, 2016), http://www.realwire.com/
    releases/AR-and-wearable-tech-is-a-marriage-made-for-the-enterprise-
    says-Beecham.
        \37\ Adam C. Uzialko, Augmented Reality Check: Innovative Ways
    Businesses are Embracing AR, Business News Daily (July 18, 2016),
    http://www.businessnewsdaily.com/9245-augmented-reality-for-
    business.html.
        \38\ Id.
        \39\ Mark Coppock, Microsoft and Pearson are partnering to Turn
    HoloLens into an Educational Tool, Digital Trends (Oct. 26, 2016),
    http://www.digitaltrends.com/computing/pearson-hololens-mixed-reality-
    education/.
    ---------------------------------------------------------------------------
        Augmented and mixed reality technologies are similarly valuable in
    the classroom setting. The most visceral advantage is the immersive,
    interactive nature of these technologies. According to a leading
    professor of education, ``[r]esearch shows that interacting with
    [augmented reality] alone improves students' understanding of a
    concept.'' \40\ Use of this technology can transform the abstract into
    something real and tangible that a student can see, hear and with which
    the student can interact.\41\
    ---------------------------------------------------------------------------
        \40\ Susan A. Yoon, The Educator's Playbook: The Role of Augmented
    Reality in a Lesson Plan, Penn GSE Newsroom (2016), http://
    www.gse.upenn.edu/news/educators-playbook/role-augmented-reality-
    lesson-plan.
        \41\ Aaron Burch, The Top Ten Companies Working on Education in
    Virtual Reality and Augmented Reality, Touchstone Research (June 2,
    2016), https://touchstoneresearch.com/the-top-10-companies-working-on-
    education-in-virtualreality-and-augmented-reality/.
    ---------------------------------------------------------------------------
                                     ______

         Response to Written Question Submitted by Hon. Joe Manchin to
                              Stanley Pierre-Louis
        Question. As a former Governor and in my role as a United States
    Senator, I have remained committed to enhancing the job climate in my
    state so that West Virginians have good paying jobs and the skills to
    compete in the global economy. Part of this job growth is going to come
    from the technology sector. We are beginning to see an uptick in
    technology startups in different parts of the state, but I believe
    there are opportunities for tools such as augmented reality to enhance
    workforce training.
        The technological advancements of the 21st century should not leave
    rural communities behind, and as West Virginia continues to develop its
    technology sector and train its workforce: How can augmented reality be
    used to train workers in the digital economy?
        Answer. In our written and oral testimony for the November 16,
    2016, hearing on augmented and mixed reality before the U.S. Senate
    Committee on Commerce, Science, and Transportation, we highlighted how
    these technologies offer new ways for video game companies to create
    highly-expressive, immersive works for the purpose of entertaining our
    audiences. As described below, these technologies also enable
    applications that can benefit other industries and workers in rural
    communities.
        Deploying augmented reality solutions can create impactful training
    programs that improve employee engagement, productivity and safety.\1\
    According to one research study, augmented reality ``has matured to a
    point where organizations can use it as an internal tool to complement
    and enhance business processes, workflows and employee training.'' \2\
    Importantly, this is true not only of technology-based industries, but
    traditional industries as well.
    ---------------------------------------------------------------------------
        \1\ See Augmented Reality: A New Workforce Mobilization Paradigm,
    Cognizant (October 2015), https://www.cognizant.com/
    InsightsWhitepapers/Augmented-Reality-A-New-Workforce-Mobilization-
    Paradigm-codex1434.pdf; see also Tommy Hynes, Is there a Place for
    Augmented Reality in the Workplace, Equator HR, http://
    www.equatorhr.com/blog/is-there-a-place-for-augmented-reality-in-the-
    workplace.
        \2\ See Gartner Says Augmented Reality Will Become an Important
    Workplace Tool, Gartner (January 14, 2014), http://www.gartner.com/
    newsroom/id/2649315.
    ---------------------------------------------------------------------------
        For example, the agricultural sector has developed several uses of
    augmented reality to assist farmers with their work:

       Solutions have been developed to allow farmers to predict
            crop yield by using three-dimensional visualizations on mobile
            devices.\3\
    ---------------------------------------------------------------------------
        \3\ See Augmented Reality Farming, ICEsoft Blog (July 16, 2013),
    http://www.icesoft.org/blog/augmented-reality-farming/; see also
    https://www.youtube.com/watch?v=qrZYb5aa44k.

       Augmented reality prototypes have been built to assist
            farmers in insect identification and pest management.\4\
    ---------------------------------------------------------------------------
        \4\ A. Nigam, et al., Augmented Reality in Agriculture (October
    2011), http://ieeexplore.ieee.org/document/6085361/.

       Equipment manufacturers are working on ways to use augmented
            reality to assist in equipment use and maintenance as well as
            to compile data to help farmers and other workers perform their
            daily tasks.\5\ In fact, at a recent conference, the equipment
            manufacturer Caterpillar demonstrated how the use of
            Microsoft's mixed reality headset, known as HoloLens, could be
            used to help consumers visualize its vehicles.\6\
    ---------------------------------------------------------------------------
        \5\ See https://www.youtube.com/watch?v=VGtCQWROytw.
        \6\ John Callaham, Microsoft HoloLens Can Bring a Caterpillar
    Loader from a Flat Catalog to a Full Size 3D Model, (March 31, 2016),
    http://www.windowscentral.com/microsoft-hololens-can-bring-caterpillar-
    loader-flat-catalog-full-size-3d-model; see also https://
    www.youtube.com/watch?v=e8AirvNicNs.

        The mining sector has employed augmented reality to address worker
    training; improve safety and productivity; and adapt to skills
    shortages and worker turnover.\7\ In the shipbuilding sector, augmented
    reality solutions are being developed to visually enhance worker
    training and access to information required for job performance,
    ``including steps [for task completion], cautions, knowledge from
    expert workers, schematics and any other digitized data.'' \8\ Through
    the use of this technology, a worker with a mobile device would have
    access to 3-D product models; planning and training for future work;
    step-by-step maintenance instructions; and safety information.\9\ And
    in the aerospace sector, Lockheed Martin has collaborated on augmented
    reality projects to speed up the maintenance process for F-22 and F-35
    fighter jets, such that ``[w]hen an engineer looks at the aircraft
    using the smart glasses, they see digitally displayed plans projected
    over the physical plane,'' and ``[t]hey can then use a tablet to enter
    any damage or defects.'' \10\
    ---------------------------------------------------------------------------
        \7\ J. Bassan, et al., The Augmented Mine Worker: Applications of
    Augmented Reality in Mining (November 2011), https://
    www.researchgate.net/profile/J_Bassan/publication/274067824_
    The_Augmented_Mine_Worker_-
    _Applications_of_Augmented_Reality_in_Mining/links/
    5513d2120cf283ee083491d7.pdf; F. Benes, et al., Application of
    Augmented Reality in Mining Industry, SGEM (October 1, 2014), http://
    sgem.org/sgemlib/spip.php?article4002.
        \8\ G. Marshall, Closing the Nation's Skills Gap, Industry Week
    (January 13, 2016), http://www.industryweek.com/education-training/
    closing-nations-skills-gap.
        \9\ Id.
        \10\ See Augmented Reality and Workplace Training, SpongeUK (June
    19, 2015), http://spongeuk.com/2015/06/augmented-reality-and-workplace-
    training/.
    ---------------------------------------------------------------------------
        While augmented reality will serve an important role in training--
    and re-training--today's workforce, it promises to be equally important
    as a tool to prepare tomorrow's workforce for the competitive jobs
    landscape that awaits them. Experts have noted that augmented reality
    provides a more immersive, interactive means to teach students STEM
    (Science, Technology, Engineering and Mathematics) and STEAM (STEM +
    Arts) subjects.\11\ In addition, a recent study found that programs
    that combine video game coursework with other subjects boasted an 88
    percent retention rate.\12\ In fact, video game design programs have
    served as successful means to attract and retain interest in STEM and
    STEAM careers more broadly.\13\
    ---------------------------------------------------------------------------
        \11\ See, e.g., Susan A. Yoon, The Educator's Playbook: The Role of
    Augmented Reality in a Lesson Plan, Penn GSE Newsroom (2016), http://
    www.gse.upenn.edu/news/educators-playbook/role-augmented-reality-
    lesson-plan (``Research shows that interacting with [augmented reality]
    alone improves students' understanding of a concept.'').
        \12\ Rich Taylor, Opportunities to Learn, Work With Video Games
    Multiply, Huffington Post (Nov. 11, 2015), http://
    www.huffingtonpost.com/rich-taylor/opportunities-to-learn-wo_b_8538
    426.html (noting that the study also found that combining video games
    with other subjects also doubled the number of women in these
    educational programs); see also Priming the Pump 2015: Higher Education
    Video Game Alliance Survey of Program Graduates (2015), http://
    docplayer.net/5662014-Priming-the-pump-2015-higher-education-video-
    game-alliance-survey-of-program-graduates.html.
        \13\ Jessica Trybus, Game-Based Learning: What it is, Why it Works,
    and Where it's Going, New Media Institute (2014), http://
    www.newmedia.org/game-based-learning--what-it-is-why-it-works-and-
    where-its-going.html.
    ---------------------------------------------------------------------------
        For its part, West Virginia boasts several programs that emphasize
    STEM and STEAM education. For example, several schools--including West
    Virginia University's Institute of Technology, Marshall University,
    Shephard University, Mountwest Community and Technical College, among
    others--offer programs or courses in video game design.\14\ In
    addition, the state has piloted programs like Globaloria to teach
    secondary education students coding, web design and game development
    skills.\15\
    ---------------------------------------------------------------------------
        \14\ In 2010, the Princeton Review ranked Marshall University's
    video game design program among the ``Top 50 Undergraduate Schools to
    Study Game Design Programs.'' See http://www.marshall.edu/
    pressrelease.asp?ID=1935.
        \15\ See http://www.wvcpd.org/globaloria.aspx.
    ---------------------------------------------------------------------------
        We encourage policymakers, educators and industry players alike to
    embrace technology education opportunities. By way of example, several
    Appalachian coal miners recently transitioned into coding careers
    through the work of an innovative company looking to tap into its local
    talent pool as a resource.\16\ Workers in the digital economy will
    increasingly need to rely on STEM and STEAM skillsets, no matter where
    their jobs are located.
    ---------------------------------------------------------------------------
        \16\ Erica Peterson, From Coal To Code: A New Path For Laid-Off
    Miners In Kentucky, NPR (May 6, 2016), http://www.npr.org/sections/
    alltechconsidered/2016/05/06/477033781/from-coal-to-code-a-new-path-
    for-laid-off-miners-in-kentucky; see also Tim Loh, Appalachian Miners
    Are Learning to Code (Feb. 2, 2016), https://www.bloomberg.com/news/
    articles/2016-02-03/from-coal-to-coding-appalachian-miners-getting-a-
    fresh-start.
    ---------------------------------------------------------------------------
        We appreciate the opportunity to participate in this important
    dialogue and stand ready to assist the Committee on its ongoing work in
    this area.

                                      [all]