Taking Facial Recognition at Face Value

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Dec. 16 (Bloomberg) –- Bloomberg’s Tom Giles discusses the government’s drafting of a code of conduct for facial recognition technology. He speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Live from pier third in san francisco and new york city, welcome to "bloomberg west" will read covered become news that are reshaping our world.

Our focus is innovation and the future of this and this.

Let's get straight to the rundown.

A federal judge caused a u.s. government selection of phone records almost orwellian.

It is a lawsuit, saying the surveillance is probably unconstitutional.

It is called a phase print.

They can identify you in everything from unlocking your phone to targeting advertising.

The business behind facial identifications.

Google ads buying a firm that designs research robot like cheetah and big dog or the pentagon.

Is part of a project being led by a former android head in the rubin.

There are renew questions about whether the nsa's against technology collection of genetic records is legal.

Probably violated the fourth amendment which protects americans within a reasonable search and seizure.

They can move forward.

All this comes as president obama prayers to host a number of executives at the white house tomorrow.

They will surely be talking about it.

For more let's ring in julianna goldman in washington.

What an important time for these guys to be in the white house.

That is right.

The federal judge caught the program almost orwellian saying that it violates the earth -- the fourth amendment ban on unreasonable searches.

The district judge was a bush appointee.

He ordered the government to stop collecting data on the two plaintiffs and destroy the records.

They're likely to show the privacy interest outweighed the government interest when it comes to collecting this data here at you put the injunction on hold.

He said there are "significant national security interests at stake>" he is giving the government time to appeal which he said could take around six months.

The government does not have to stop the program until that d.c. court of appeals ruling and depending on what it says.

This is the first successful ruling against the government program sent the leaks by edward snowden.

Up until this point, courts including the foreign intelligence savings court which request the metadata said the program is constitutional.

What is the administration's reaction?

Lacks nothing typical yet.

The white house is referring questions to the justice department.

The justice department said they are reviewing the ruling.

In the past, it ministration has argued that the fourth amendment does not protect metadata.

Not be content.

It is also argued that metadata collection is a crucial pool against terrorism.

They cannot get a case where they stop an imminent terrorist attack.

This is the timing that is interesting.

They will be meeting with a number of tech executives including marissa mayer, costello and sheryl sandberg.

I'm sure they will get an earful.

Julianna goldman in washington, d.c. thank you very much.

I want to bring in a special roundtable.

Michael riley cover security from bloomberg is this week and joins us from washington dc jeff barton joins us via sky pe.pe.

They are selling the gear to the nsa to collect information.

Could this slowdown anytime?

This is going to be a long core process.

The nsa will fight this under the justice department.

We have a long way to go.

This is an incredibly valuable to.

Ol.

they cannot come up with one example where this stopped an attack.

This is an open court.

There are certain classified materials they cannot present in this form.

I'm sure there will point that out.

We cannot tell you.

Trust does.

It is interesting.

Let me ask you about the business behind us.

What can you tell us about how this is going and where it is growing?

A new data center out in utah is in expansion a massive amounts of storage.

Every phone call of every citizen in the u.s. that is an amazing amount of data.

Whether they are using it or not is not relevant.

It is amazing how much they have to collect in the storage.

Every phone call that comes out means another set of own calls.

Exponential growth.

The processing power to understand all that in the storage.

When you look at the courts, this court spoke with a very strong voice in the pulmonary ruling.

They did.

I actually agree with them.

Every phone call you made, the location a came from, the length of time, the number you called.

The frequency of it.

It is just an amazing amount of data.

Do they really need that?

Do they need to target the people they are really after and get to the content.

The collection of this lead to things down the road in the future that can be used against innocent citizens for things that could potentially be used as false patterns in the future.

When you look at this story, the drip drop of the snowden leaks continue to keep this thing on the front page.

This is continue to have a business impact with the companies involved?

Absolutely.

He released a statement shortly after this was fouled.

This is a vindication of what i did.

I believe this program when not be found here constitutional in an open court.

He took it out of the secret court of the pfizer around and put it in the open light of day.

The judge said exactly that.

He said this is a program that if you look at it there's no way it passes muster under the fourth amendment.

It is a really interesting turn.

It'll be a question of whether or not he should be viewed as a traitor or an activist was doing something out of a sense of duty.

It does.

The judge is likely to side with the constitution.

Courts are supposed to be open.

It may be an interesting thought as well.

Michael o'reilly and jeff barton.

Thank you very much.

Still to come, should companies be able to use facial recognition technology to target you with advertisements?

Who it is, how it works, and all about facial recognition next.

? major companies are looking into facial recognition technology.

It can be used for targeted ad to security.

They'll also be working in regulation, taking part in meetings early next year.

This means they can do what ever they want.

It is interesting that this is happening at once.

They're working with similar technologies.

With no standards in place.

What the commerce wants to do is get ahead of that.

It behooves the tech companies to have their own say in this matter.

They want there to be actual laws in place that will protect our civil liberties.

One step at a time.

Lockheed martin, i think is interesting.

I can see lockheed martin as this.

Surely the rtr.

He has a different purpose for is.

Every year this seems to be more realistic.

You can have a scenario where a local business will say cory johnson just walked by.

This is more my style.

As you're walking by the business.

There is a security component.

Apple is using thumbprint recognition.

Why not take it a step further?

We're not letting this person onto the ipad.

Let's talk about how this works.

The technology behind it is very much like a fingerprint.

The computer read the face, the figures were the eyes and lips are an run out rhythms to look for a pattern to do that and then they extract the things that are different about each phase.

What is interesting about it is that the processing power exists all over the place.

You cannot do this on a phone five years ago.

Now you could.

The chips are becoming much more powerful.

They're able to process much more.

Is doesn't rise of these computers will become that much powerful.

What are the security and privacy implications?

Do you want people to know that much about you as you're walking by?

Great to see you.

Thank you very much.

Google is grabbing another company for its robotic arsenal.

He is acquiring boston dynamics for a company known for the animal themed machines i can run and walk like the real thing.

If you're listening to the sound, that is a robotic dog running like a cheetah.

This is the eighth robotics company google has bought in the last six months.

All part of a new special project.

On today's early edition of "bloomberg west" we spoke with john leonard.

He started by asking him exactly just what these robotics can do.

They specialize in locomotion, how a robot moves through the world.

This captures their imagination.

It is on the cutting age of what you can do in a challenging environment.

We are looking at how they move.

You should not be necessarily buying google.

I do know they have done a number of contracts for the military.

They're building a robot called atlas that is you something in the darker robotics challenge which is happening in florida.

My colleagues are leading the m.i.t. team.

There are about 15 teams competing for a price to build a robot that can use tools and climb up ladders and chided vehicles and maybe respond in a disaster scenario.

These are robots that can interact with the world in a capable way.

It would be relevant to the military but there are a range of civilian applications.

Anything that means going out to the field into dust -- in disaster response situations.

Interesting.

John, yet spoke with the head of mergers and acquisitions.

They could be working toward a production line.

Maybe it will all be partisan long-term global -- google manufacturing supply chain here at what is looking most likely?

They could track down some of the amazon drones.

I think what is really important here, there are a couple of things to highlight.

Google does make a lot of acquisitions at least one from month -- once a month.

We shouldn't not tie about what google has been traditionally.

In many years, many deals were building a moat around the advertising business.

The deals they do now are powering the internet.

All of these are google looking for it next leg of growth.

This is more like a new version of ge, looking for the new legs of growth as opposing an exact way to tie this back to what google has been in the past.

We do not know just yet.

They have done a lot of robotics deals.

This is a company that is ambitious and always has been figuring out where its future will take it.

Dimensions the founder must be very passionate about his company.

He gave up his tenure at m.i.t. do work on this.

What do you imagine compels them to sell to google?

I cannot imagine.

I know that m.i.t. faculty want to make impacts on the world.

My guess guess is that investment would help them create a better impact.

The one way i view this as a long-term investment in the hard court technologies of robotics and if i use the analogy of a cell chiding being hit will, is something i follow very closely.

They went and hired the very best people in the world.

Several of the recent acquisitions of getting some of the top superstar talent in the world affiliated with seven these challenges.

Where it may lead.

I have to think this has a value.

That was john leonard and jon erlichman with emily chang.

"bloomberg west" will be right back.

? we have some breaking news.

Charter communications looks like there putting a hit together to go after time warner cable.

Now they have financing for $20 billion.

They are lining up to help linda charter as ministry by doing to get this done.

They've offered $135. the offer itself is less.

It looks like charters going to go off with a proxy battle.

The battle for time warner cable is on.

Goldman sachs and credit suisse are monitoring that story.

It is also the season for holiday shopping.

Online retailers are hard at work are also seeing returns and handling customer complaints.

Stella services measures how well all of these companies are doing.

They then sell the information.

Talk soon about the quality of the holiday season.

It has an interesting.

Quality of service and speed.

Then you start to see some new innovating things and am a people to try to compete with amazon.

Wanted talk about apples.

It is not about me.

It is about me at the zap thpos.

They were gearing up to have everybody on the phone.

They famously let customers call and talk for as long as they want and spend as much time as -- they want.

A great quite the numbers you are saying that it is working for them and a few others.

It is.

They've always had a different take on the world than most retailers.

They want you to call.

They want you to call and most would view that as a marketing expense.

It drives people to come back.

Who is flooding right now?

The walmart site went down.

Health care got more attention.

Walmart probably had more problems.

The traditional big box retailers have had difficulty trying to keep up with the web only players.

This is going to hurt them eventually.

Who is getting right in the retail space?

Sears is one of the companies that have started to take their stores and turn them into distribution centers.

See what amazon has been doing, stores like macy's and sears are starting to use those the doma centers -- use the storage as the film and centers.

-- fufilment center.

Amazon is great as always.

They are so spread out baking you the item almost faster than anyone else.

In terms of general strength, are we seeing that?

The retail numbers, it has been good or bad.

It has been a pretty good season.

Thank you very much.

"bloomberg west" coming up.

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This text has been automatically generated. It may not be 100% accurate.

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