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July 14, 2006 6:00 AM PDT

Senators, industry launch group to explore RFID benefits

by Anne Broache

The tiny radio-frequency identification, or RFID, chips cropping up everywhere from retail product packaging to upcoming American passports to under one's skin have generated a fair amont of controversy among privacy and security watchdogs.

The industry that makes the technology, not surprisingly, has dismissed many of those concerns as fueled by misinformation and has been lobbying against laws it says would unduly restrict the promise of RFID use.

The latest step in that direction is a venture called the Senate RFID Caucus, which held its kick-off meeting Thursday on Capitol Hill. The event featured demonstrations of RFID technology and a panel discussion that included IBM, Verisign and Department of Defense representatives.

Sen. Byron Dorgan, a North Dakota Democrat, and Sen. John Cornyn, a Texas Republican, have signed on as chairmen of the caucus. A number of other senators have reportedly expressed interest, an IBM representative said, although a list of names was not readily available when requested by CNET News.com.

According to the Information Technology Industry Council, which organized the kick-off, the caucus plans to "be very active in educating key policy makers and legislative staff on the unique policy challenges and opportunities related to RFID technology." Thursday's event was scheduled to focus solely on the "benefits" of the chips to business, health, and national security.

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