Technology today is amazing and unstoppable, but is some new tech crossing the privacy line?

One company, Three Square Market, a software developer for vending machines, has a new voluntary program to employees, where a microchip is implanted in their hand. The chip then allows the employees to open doors, pay for purchases, share business cards, store medical information, and even log into their computers. The chip is making certain tasks easier for people, but could also be creating serious privacy risks.

Michael Whitener, a VLP partner, recently sat down with Inside Counsel to discuss the risks associated with company microchips, including employee privacy, data collection policies and data misuse–and even hacking.

The privacy risks are that the personal information contained in the chips–including credit card information–would either be misused by the individuals' employer or hacked by a third party. For instance, a hacker could use an RFID scanner to read and copy the code on the chip.

“However, these privacy risks are really no different than the risk of someone stealing a wallet containing credit card information or hacking someone's passwords,” he said. “The fact that the information is contained in an implanted chip, rather than on a plastic card or other media, isn't material from a privacy perspective. In fact, one could make a case that an implanted chip is more secure.”

According to Whitener, Three Square Market launched a voluntary program whereby employees could have an RFID microchip the size of a grain of rice implanted in their hand, between the thumb and the forefinger. The microchip allows the unlocking of doors, purchases from vending machines, and logging into computers. It's essentially an identification device.

The real risk is that implantable devices might become a job requirement and expand beyond a convenience for employees, which appears to be the sole purpose of the Three Square Market program, into a means of allowing employers to track and monitor employees. U.S. law already allows employers to conduct rather sweeping monitoring of employees while on employer premises or using employer-provided equipment (including phones and computers).

“Of course, the 'creepy factor' is high when it comes to implanted devices–it calls to mind movies that portray dystopian surveillance societies, including 'Gattaca' and 'Minority Report,'” he explained. “But there's nothing about the Three Square Market program itself to justify those concerns, because the microchip doesn't have tracking capabilities.”

So, is this the wave of the future, or will privacy concerns stop this from going mainstream?

Per Whitener, implanted devices can be seen as the next evolution from the types of wearable devices that have already become quite popular, from the Fitbit to the Apple Watch. In addition, biometrics (fingerprints, iris scans, facial recognition) are already an increasingly common means of identification – so small implanted devices are arguably less intrusive and pose fewer privacy risks than personal biometric features that are unalterable. At least an implanted device can be removed.

Amanda G. Ciccatelli is a Freelance Journalist for Corporate Counsel and InsideCounsel, where she covers intellectual property, legal technology, patent litigation, cybersecurity, innovation, and more.

Technology today is amazing and unstoppable, but is some new tech crossing the privacy line?

One company, Three Square Market, a software developer for vending machines, has a new voluntary program to employees, where a microchip is implanted in their hand. The chip then allows the employees to open doors, pay for purchases, share business cards, store medical information, and even log into their computers. The chip is making certain tasks easier for people, but could also be creating serious privacy risks.

Michael Whitener, a VLP partner, recently sat down with Inside Counsel to discuss the risks associated with company microchips, including employee privacy, data collection policies and data misuse–and even hacking.

The privacy risks are that the personal information contained in the chips–including credit card information–would either be misused by the individuals' employer or hacked by a third party. For instance, a hacker could use an RFID scanner to read and copy the code on the chip.

“However, these privacy risks are really no different than the risk of someone stealing a wallet containing credit card information or hacking someone's passwords,” he said. “The fact that the information is contained in an implanted chip, rather than on a plastic card or other media, isn't material from a privacy perspective. In fact, one could make a case that an implanted chip is more secure.”

According to Whitener, Three Square Market launched a voluntary program whereby employees could have an RFID microchip the size of a grain of rice implanted in their hand, between the thumb and the forefinger. The microchip allows the unlocking of doors, purchases from vending machines, and logging into computers. It's essentially an identification device.

The real risk is that implantable devices might become a job requirement and expand beyond a convenience for employees, which appears to be the sole purpose of the Three Square Market program, into a means of allowing employers to track and monitor employees. U.S. law already allows employers to conduct rather sweeping monitoring of employees while on employer premises or using employer-provided equipment (including phones and computers).

“Of course, the 'creepy factor' is high when it comes to implanted devices–it calls to mind movies that portray dystopian surveillance societies, including 'Gattaca' and 'Minority Report,'” he explained. “But there's nothing about the Three Square Market program itself to justify those concerns, because the microchip doesn't have tracking capabilities.”

So, is this the wave of the future, or will privacy concerns stop this from going mainstream?

Per Whitener, implanted devices can be seen as the next evolution from the types of wearable devices that have already become quite popular, from the Fitbit to the Apple Watch. In addition, biometrics (fingerprints, iris scans, facial recognition) are already an increasingly common means of identification – so small implanted devices are arguably less intrusive and pose fewer privacy risks than personal biometric features that are unalterable. At least an implanted device can be removed.

Amanda G. Ciccatelli is a Freelance Journalist for Corporate Counsel and InsideCounsel, where she covers intellectual property, legal technology, patent litigation, cybersecurity, innovation, and more.