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Gary Edwards

The True Story of How the Patent Bar Captured a Court and Shrank the Intellectual Commo... - 1 views

  • The change in the law wrought by the Federal Circuit can also be viewed substantively through the controversy over software patents. Throughout the 1960s, the USPTO refused to award patents for software innovations. However, several of the USPTO’s decisions were overruled by the patent-friendly U.S. Court of Customs and Patent Appeals, which ordered that software patents be granted. In Gottschalk v. Benson (1972) and Parker v. Flook (1978), the U.S. Supreme Court reversed the Court of Customs and Patent Appeals, holding that mathematical algorithms (and therefore software) were not patentable subject matter. In 1981, in Diamond v. Diehr, the Supreme Court upheld a software patent on the grounds that the patent in question involved a physical process—the patent was issued for software used in the molding of rubber. While affirming their prior ruling that mathematical formulas are not patentable in the abstract, the Court held that an otherwise patentable invention did not become unpatentable simply because it utilized a computer.
  • In the hands of the newly established Federal Circuit, however, this small scope for software patents in precedent was sufficient to open the floodgates. In a series of decisions culminating in State Street Bank v. Signature Financial Group (1998), the Federal Circuit broadened the criteria for patentability of software and business methods substantially, allowing protection as long as the innovation “produces a useful, concrete and tangible result.” That broadened criteria led to an explosion of low-quality software patents, from Amazon’s 1-Click checkout system to Twitter’s pull-to-refresh feature on smartphones. The GAO estimates that more than half of all patents granted in recent years are software-related. Meanwhile, the Supreme Court continues to hold, as in Parker v. Flook, that computer software algorithms are not patentable, and has begun to push back against the Federal Circuit. In Bilski v. Kappos (2010), the Supreme Court once again held that abstract ideas are not patentable, and in Alice v. CLS (2014), it ruled that simply applying an abstract idea on a computer does not suffice to make the idea patent-eligible. It still is not clear what portion of existing software patents Alice invalidates, but it could be a significant one.
  • Supreme Court justices also recognize the Federal Circuit’s insubordination. In oral arguments in Carlsbad Technology v. HIF Bio (2009), Chief Justice John Roberts joked openly about it:
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  • The Opportunity of the Commons
  • As a result of the Federal Circuit’s pro-patent jurisprudence, our economy has been flooded with patents that would otherwise not have been granted. If more patents meant more innovation, then we would now be witnessing a spectacular economic boom. Instead, we have been living through what Tyler Cowen has called a Great Stagnation. The fact that patents have increased while growth has not is known in the literature as the “patent puzzle.” As Michele Boldrin and David Levine put it, “there is no empirical evidence that [patents] serve to increase innovation and productivity, unless productivity is identified with the number of patents awarded—which, as evidence shows, has no correlation with measured productivity.”
  • While more patents have not resulted in faster economic growth, they have resulted in more patent lawsuits.
  • Software patents have characteristics that make them particularly susceptible to litigation. Unlike, say, chemical patents, software patents are plagued by a problem of description. How does one describe a software innovation in such a way that anyone searching for it will easily find it? As Christina Mulligan and Tim Lee demonstrate, chemical formulas are indexable, meaning that as the number of chemical patents grow, it will still be easy to determine if a molecule has been patented. Since software innovations are not indexable, they estimate that “patent clearance by all firms would require many times more hours of legal research than all patent lawyers in the United States can bill in a year. The result has been an explosion of patent litigation.” Software and business method patents, estimate James Bessen and Michael Meurer, are 2 and 7 times more likely to be litigated than other patents, respectively (4 and 13 times more likely than chemical patents).
  • Software patents make excellent material for predatory litigation brought by what are often called “patent trolls.”
  • Trolls use asymmetries in the rules of litigation to legally extort millions of dollars from innocent parties. For example, one patent troll, Innovatio IP Ventures, LLP, acquired patents that implicated Wi-Fi. In 2011, it started sending demand letters to coffee shops and hotels that offered wireless Internet access, offering to settle for $2,500 per location. This amount was far in excess of the 9.56 cents per device that Innovatio was entitled to under the “Fair, Reasonable, and Non-Discriminatory” licensing promises attached to their portfolio, but it was also much less than the cost of trial, and therefore it was rational for firms to pay. Cisco stepped in and spent $13 million in legal fees on the case, and settled on behalf of their customers for 3.2 cents per device. Other manufacturers had already licensed Innovatio’s portfolio, but that didn’t stop their customers from being targeted by demand letters.
  • Litigation cost asymmetries are magnified by the fact that most patent trolls are nonpracticing entities. This means that when patent infringement trials get to the discovery phase, they will cost the troll very little—a firm that does not operate a business has very few records to produce.
  • But discovery can cost a medium or large company millions of dollars. Using an event study methodology, James Bessen and coauthors find that infringement lawsuits by nonpracticing entities cost publicly traded companies $83 billion per year in stock market capitalization, while plaintiffs gain less than 10 percent of that amount.
  • Software patents also reduce innovation in virtue of their cumulative nature and the fact that many of them are frequently inputs into a single product. Law professor Michael Heller coined the phrase “tragedy of the anticommons” to refer to a situation that mirrors the well-understood “tragedy of the commons.” Whereas in a commons, multiple parties have the right to use a resource but not to exclude others, in an anticommons, multiple parties have the right to exclude others, and no one is therefore able to make effective use of the resource. The tragedy of the commons results in overuse of the resource; the tragedy of the anticommons results in underuse.
  • In order to cope with the tragedy of the anticommons, we should carefully investigate the opportunity of  the commons. The late Nobelist Elinor Ostrom made a career of studying how communities manage shared resources without property rights. With appropriate self-governance institutions, Ostrom found again and again that a commons does not inevitably lead to tragedy—indeed, open access to shared resources can provide collective benefits that are not available under other forms of property management.
  • This suggests that—litigation costs aside—patent law could be reducing the stock of ideas rather than expanding it at current margins.
  • Advocates of extensive patent protection frequently treat the commons as a kind of wasteland. But considering the problems in our patent system, it is worth looking again at the role of well-tailored limits to property rights in some contexts. Just as we all benefit from real property rights that no longer extend to the highest heavens, we would also benefit if the scope of patent protection were more narrowly drawn.
  • Reforming the Patent System
  • This analysis raises some obvious possibilities for reforming the patent system. Diane Wood, Chief Judge of the 7th Circuit, has proposed ending the Federal Circuit’s exclusive jurisdiction over patent appeals—instead, the Federal Circuit could share jurisdiction with the other circuit courts. While this is a constructive suggestion, it still leaves the door open to the Federal Circuit playing “a leading role in shaping patent law,” which is the reason for its capture by patent interests. It would be better instead simply to abolish the Federal Circuit and return to the pre-1982 system, in which patents received no special treatment in appeals. This leaves open the possibility of circuit splits, which the creation of the Federal Circuit was designed to mitigate, but there are worse problems than circuit splits, and we now have them.
  • Another helpful reform would be for Congress to limit the scope of patentable subject matter via statute. New Zealand has done just that, declaring that software is “not an invention” to get around WTO obligations to respect intellectual property. Congress should do the same with respect to both software and business methods.
  • Finally, even if the above reforms were adopted, there would still be a need to address the asymmetries in patent litigation that result in predatory “troll” lawsuits. While the holding in Alice v. CLS arguably makes a wide swath of patents invalid, those patents could still be used in troll lawsuits because a ruling of invalidity for each individual patent might not occur until late in a trial. Current legislation in Congress addresses this class of problem by mandating disclosures, shifting fees in the case of spurious lawsuits, and enabling a review of the patent’s validity before a trial commences.
  • What matters for prosperity is not just property rights in the abstract, but good property-defining institutions. Without reform, our patent system will continue to favor special interests and forestall economic growth.
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    "Libertarians intuitively understand the case for patents: just as other property rights internalize the social benefits of improvements to land, automobile maintenance, or business investment, patents incentivize the creation of new inventions, which might otherwise be undersupplied. So far, so good. But it is important to recognize that the laws that govern property, intellectual or otherwise, do not arise out of thin air. Rather, our political institutions, with all their virtues and foibles, determine the contours of property-the exact bundle of rights that property holders possess, their extent, and their limitations. Outlining efficient property laws is not a trivial problem. The optimal contours of property are neither immutable nor knowable a priori. For example, in 1946, the U.S. Supreme Court reversed the age-old common law doctrine that extended real property rights to the heavens without limit. The advent of air travel made such extensive property rights no longer practicable-airlines would have had to cobble together a patchwork of easements, acre by acre, for every corridor through which they flew, and they would have opened themselves up to lawsuits every time their planes deviated from the expected path. The Court rightly abridged property rights in light of these empirical realities. In defining the limits of patent rights, our political institutions have gotten an analogous question badly wrong. A single, politically captured circuit court with exclusive jurisdiction over patent appeals has consistently expanded the scope of patentable subject matter. This expansion has resulted in an explosion of both patents and patent litigation, with destructive consequences. "
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    I added a comment to the page's article. Patents are antithetical to the precepts of Libertarianism and do not involve Natural Law rights. But I agree with the author that the Court of Appeals for the Federal Circuit should be abolished. It's a failed experiment.
Gary Edwards

» 21 Facts About NSA Snooping That Every American Should Know Alex Jones' Inf... - 0 views

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    NSA-PRISM-Echelon in a nutshell.  The list below is a short sample.  Each fact is documented, and well worth the time reading. "The following are 21 facts about NSA snooping that every American should know…" #1 According to CNET, the NSA told Congress during a recent classified briefing that it does not need court authorization to listen to domestic phone calls… #2 According to U.S. Representative Loretta Sanchez, members of Congress learned "significantly more than what is out in the media today" about NSA snooping during that classified briefing. #3 The content of all of our phone calls is being recorded and stored.  The following is a from a transcript of an exchange between Erin Burnett of CNN and former FBI counterterrorism agent Tim Clemente which took place just last month… #4 The chief technology officer at the CIA, Gus Hunt, made the following statement back in March… "We fundamentally try to collect everything and hang onto it forever." #5 During a Senate Judiciary Oversight Committee hearing in March 2011, FBI Director Robert Mueller admitted that the intelligence community has the ability to access emails "as they come in"… #6 Back in 2007, Director of National Intelligence Michael McConnell told Congress that the president has the "constitutional authority" to authorize domestic spying without warrants no matter when the law says. #7 The Director Of National Intelligence James Clapper recently told Congress that the NSA was not collecting any information about American citizens.  When the media confronted him about his lie, he explained that he "responded in what I thought was the most truthful, or least untruthful manner". #8 The Washington Post is reporting that the NSA has four primary data collection systems… MAINWAY, MARINA, METADATA, PRISM #9 The NSA knows pretty much everything that you are doing on the Internet.  The following is a short excerpt from a recent Yahoo article… #10 The NSA is suppose
Paul Merrell

Google Chrome Listening In To Your Room Shows The Importance Of Privacy Defense In Depth - 0 views

  • Yesterday, news broke that Google has been stealth downloading audio listeners onto every computer that runs Chrome, and transmits audio data back to Google. Effectively, this means that Google had taken itself the right to listen to every conversation in every room that runs Chrome somewhere, without any kind of consent from the people eavesdropped on. In official statements, Google shrugged off the practice with what amounts to “we can do that”.It looked like just another bug report. "When I start Chromium, it downloads something." Followed by strange status information that notably included the lines "Microphone: Yes" and "Audio Capture Allowed: Yes".
  • Without consent, Google’s code had downloaded a black box of code that – according to itself – had turned on the microphone and was actively listening to your room.A brief explanation of the Open-source / Free-software philosophy is needed here. When you’re installing a version of GNU/Linux like Debian or Ubuntu onto a fresh computer, thousands of really smart people have analyzed every line of human-readable source code before that operating system was built into computer-executable binary code, to make it common and open knowledge what the machine actually does instead of trusting corporate statements on what it’s supposed to be doing. Therefore, you don’t install black boxes onto a Debian or Ubuntu system; you use software repositories that have gone through this source-code audit-then-build process. Maintainers of operating systems like Debian and Ubuntu use many so-called “upstreams” of source code to build the final product.Chromium, the open-source version of Google Chrome, had abused its position as trusted upstream to insert lines of source code that bypassed this audit-then-build process, and which downloaded and installed a black box of unverifiable executable code directly onto computers, essentially rendering them compromised. We don’t know and can’t know what this black box does. But we see reports that the microphone has been activated, and that Chromium considers audio capture permitted.
  • This was supposedly to enable the “Ok, Google” behavior – that when you say certain words, a search function is activated. Certainly a useful feature. Certainly something that enables eavesdropping of every conversation in the entire room, too.Obviously, your own computer isn’t the one to analyze the actual search command. Google’s servers do. Which means that your computer had been stealth configured to send what was being said in your room to somebody else, to a private company in another country, without your consent or knowledge, an audio transmission triggered by… an unknown and unverifiable set of conditions.Google had two responses to this. The first was to introduce a practically-undocumented switch to opt out of this behavior, which is not a fix: the default install will still wiretap your room without your consent, unless you opt out, and more importantly, know that you need to opt out, which is nowhere a reasonable requirement. But the second was more of an official statement following technical discussions on Hacker News and other places. That official statement amounted to three parts (paraphrased, of course):
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  • 1) Yes, we’re downloading and installing a wiretapping black-box to your computer. But we’re not actually activating it. We did take advantage of our position as trusted upstream to stealth-insert code into open-source software that installed this black box onto millions of computers, but we would never abuse the same trust in the same way to insert code that activates the eavesdropping-blackbox we already downloaded and installed onto your computer without your consent or knowledge. You can look at the code as it looks right now to see that the code doesn’t do this right now.2) Yes, Chromium is bypassing the entire source code auditing process by downloading a pre-built black box onto people’s computers. But that’s not something we care about, really. We’re concerned with building Google Chrome, the product from Google. As part of that, we provide the source code for others to package if they like. Anybody who uses our code for their own purpose takes responsibility for it. When this happens in a Debian installation, it is not Google Chrome’s behavior, this is Debian Chromium’s behavior. It’s Debian’s responsibility entirely.3) Yes, we deliberately hid this listening module from the users, but that’s because we consider this behavior to be part of the basic Google Chrome experience. We don’t want to show all modules that we install ourselves.
  • If you think this is an excusable and responsible statement, raise your hand now.Now, it should be noted that this was Chromium, the open-source version of Chrome. If somebody downloads the Google product Google Chrome, as in the prepackaged binary, you don’t even get a theoretical choice. You’re already downloading a black box from a vendor. In Google Chrome, this is all included from the start.This episode highlights the need for hard, not soft, switches to all devices – webcams, microphones – that can be used for surveillance. A software on/off switch for a webcam is no longer enough, a hard shield in front of the lens is required. A software on/off switch for a microphone is no longer enough, a physical switch that breaks its electrical connection is required. That’s how you defend against this in depth.
  • Of course, people were quick to downplay the alarm. “It only listens when you say ‘Ok, Google’.” (Ok, so how does it know to start listening just before I’m about to say ‘Ok, Google?’) “It’s no big deal.” (A company stealth installs an audio listener that listens to every room in the world it can, and transmits audio data to the mothership when it encounters an unknown, possibly individually tailored, list of keywords – and it’s no big deal!?) “You can opt out. It’s in the Terms of Service.” (No. Just no. This is not something that is the slightest amount of permissible just because it’s hidden in legalese.) “It’s opt-in. It won’t really listen unless you check that box.” (Perhaps. We don’t know, Google just downloaded a black box onto my computer. And it may not be the same black box as was downloaded onto yours. )Early last decade, privacy activists practically yelled and screamed that the NSA’s taps of various points of the Internet and telecom networks had the technical potential for enormous abuse against privacy. Everybody else dismissed those points as basically tinfoilhattery – until the Snowden files came out, and it was revealed that precisely everybody involved had abused their technical capability for invasion of privacy as far as was possible.Perhaps it would be wise to not repeat that exact mistake. Nobody, and I really mean nobody, is to be trusted with a technical capability to listen to every room in the world, with listening profiles customizable at the identified-individual level, on the mere basis of “trust us”.
  • Privacy remains your own responsibility.
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    And of course, Google would never succumb to a subpoena requiring it to turn over the audio stream to the NSA. The Tor Browser just keeps looking better and better. https://www.torproject.org/projects/torbrowser.html.en
Paul Merrell

Cy Vance's Proposal to Backdoor Encrypted Devices Is Riddled With Vulnerabilities | Jus... - 0 views

  • Less than a week after the attacks in Paris — while the public and policymakers were still reeling, and the investigation had barely gotten off the ground — Cy Vance, Manhattan’s District Attorney, released a policy paper calling for legislation requiring companies to provide the government with backdoor access to their smartphones and other mobile devices. This is the first concrete proposal of this type since September 2014, when FBI Director James Comey reignited the “Crypto Wars” in response to Apple’s and Google’s decisions to use default encryption on their smartphones. Though Comey seized on Apple’s and Google’s decisions to encrypt their devices by default, his concerns are primarily related to end-to-end encryption, which protects communications that are in transit. Vance’s proposal, on the other hand, is only concerned with device encryption, which protects data stored on phones. It is still unclear whether encryption played any role in the Paris attacks, though we do know that the attackers were using unencrypted SMS text messages on the night of the attack, and that some of them were even known to intelligence agencies and had previously been under surveillance. But regardless of whether encryption was used at some point during the planning of the attacks, as I lay out below, prohibiting companies from selling encrypted devices would not prevent criminals or terrorists from being able to access unbreakable encryption. Vance’s primary complaint is that Apple’s and Google’s decisions to provide their customers with more secure devices through encryption interferes with criminal investigations. He claims encryption prevents law enforcement from accessing stored data like iMessages, photos and videos, Internet search histories, and third party app data. He makes several arguments to justify his proposal to build backdoors into encrypted smartphones, but none of them hold water.
  • Before addressing the major privacy, security, and implementation concerns that his proposal raises, it is worth noting that while an increase in use of fully encrypted devices could interfere with some law enforcement investigations, it will help prevent far more crimes — especially smartphone theft, and the consequent potential for identity theft. According to Consumer Reports, in 2014 there were more than two million victims of smartphone theft, and nearly two-thirds of all smartphone users either took no steps to secure their phones or their data or failed to implement passcode access for their phones. Default encryption could reduce instances of theft because perpetrators would no longer be able to break into the phone to steal the data.
  • Vance argues that creating a weakness in encryption to allow law enforcement to access data stored on devices does not raise serious concerns for security and privacy, since in order to exploit the vulnerability one would need access to the actual device. He considers this an acceptable risk, claiming it would not be the same as creating a widespread vulnerability in encryption protecting communications in transit (like emails), and that it would be cheap and easy for companies to implement. But Vance seems to be underestimating the risks involved with his plan. It is increasingly important that smartphones and other devices are protected by the strongest encryption possible. Our devices and the apps on them contain astonishing amounts of personal information, so much that an unprecedented level of harm could be caused if a smartphone or device with an exploitable vulnerability is stolen, not least in the forms of identity fraud and credit card theft. We bank on our phones, and have access to credit card payments with services like Apple Pay. Our contact lists are stored on our phones, including phone numbers, emails, social media accounts, and addresses. Passwords are often stored on people’s phones. And phones and apps are often full of personal details about their lives, from food diaries to logs of favorite places to personal photographs. Symantec conducted a study, where the company spread 50 “lost” phones in public to see what people who picked up the phones would do with them. The company found that 95 percent of those people tried to access the phone, and while nearly 90 percent tried to access private information stored on the phone or in other private accounts such as banking services and email, only 50 percent attempted contacting the owner.
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  • Vance attempts to downplay this serious risk by asserting that anyone can use the “Find My Phone” or Android Device Manager services that allow owners to delete the data on their phones if stolen. However, this does not stand up to scrutiny. These services are effective only when an owner realizes their phone is missing and can take swift action on another computer or device. This delay ensures some period of vulnerability. Encryption, on the other hand, protects everyone immediately and always. Additionally, Vance argues that it is safer to build backdoors into encrypted devices than it is to do so for encrypted communications in transit. It is true that there is a difference in the threats posed by the two types of encryption backdoors that are being debated. However, some manner of widespread vulnerability will inevitably result from a backdoor to encrypted devices. Indeed, the NSA and GCHQ reportedly hacked into a database to obtain cell phone SIM card encryption keys in order defeat the security protecting users’ communications and activities and to conduct surveillance. Clearly, the reality is that the threat of such a breach, whether from a hacker or a nation state actor, is very real. Even if companies go the extra mile and create a different means of access for every phone, such as a separate access key for each phone, significant vulnerabilities will be created. It would still be possible for a malicious actor to gain access to the database containing those keys, which would enable them to defeat the encryption on any smartphone they took possession of. Additionally, the cost of implementation and maintenance of such a complex system could be high.
  • Privacy is another concern that Vance dismisses too easily. Despite Vance’s arguments otherwise, building backdoors into device encryption undermines privacy. Our government does not impose a similar requirement in any other context. Police can enter homes with warrants, but there is no requirement that people record their conversations and interactions just in case they someday become useful in an investigation. The conversations that we once had through disposable letters and in-person conversations now happen over the Internet and on phones. Just because the medium has changed does not mean our right to privacy has.
  • In addition to his weak reasoning for why it would be feasible to create backdoors to encrypted devices without creating undue security risks or harming privacy, Vance makes several flawed policy-based arguments in favor of his proposal. He argues that criminals benefit from devices that are protected by strong encryption. That may be true, but strong encryption is also a critical tool used by billions of average people around the world every day to protect their transactions, communications, and private information. Lawyers, doctors, and journalists rely on encryption to protect their clients, patients, and sources. Government officials, from the President to the directors of the NSA and FBI, and members of Congress, depend on strong encryption for cybersecurity and data security. There are far more innocent Americans who benefit from strong encryption than there are criminals who exploit it. Encryption is also essential to our economy. Device manufacturers could suffer major economic losses if they are prohibited from competing with foreign manufacturers who offer more secure devices. Encryption also protects major companies from corporate and nation-state espionage. As more daily business activities are done on smartphones and other devices, they may now hold highly proprietary or sensitive information. Those devices could be targeted even more than they are now if all that has to be done to access that information is to steal an employee’s smartphone and exploit a vulnerability the manufacturer was required to create.
  • Vance also suggests that the US would be justified in creating such a requirement since other Western nations are contemplating requiring encryption backdoors as well. Regardless of whether other countries are debating similar proposals, we cannot afford a race to the bottom on cybersecurity. Heads of the intelligence community regularly warn that cybersecurity is the top threat to our national security. Strong encryption is our best defense against cyber threats, and following in the footsteps of other countries by weakening that critical tool would do incalculable harm. Furthermore, even if the US or other countries did implement such a proposal, criminals could gain access to devices with strong encryption through the black market. Thus, only innocent people would be negatively affected, and some of those innocent people might even become criminals simply by trying to protect their privacy by securing their data and devices. Finally, Vance argues that David Kaye, UN Special Rapporteur for Freedom of Expression and Opinion, supported the idea that court-ordered decryption doesn’t violate human rights, provided certain criteria are met, in his report on the topic. However, in the context of Vance’s proposal, this seems to conflate the concepts of court-ordered decryption and of government-mandated encryption backdoors. The Kaye report was unequivocal about the importance of encryption for free speech and human rights. The report concluded that:
  • States should promote strong encryption and anonymity. National laws should recognize that individuals are free to protect the privacy of their digital communications by using encryption technology and tools that allow anonymity online. … States should not restrict encryption and anonymity, which facilitate and often enable the rights to freedom of opinion and expression. Blanket prohibitions fail to be necessary and proportionate. States should avoid all measures that weaken the security that individuals may enjoy online, such as backdoors, weak encryption standards and key escrows. Additionally, the group of intelligence experts that was hand-picked by the President to issue a report and recommendations on surveillance and technology, concluded that: [R]egarding encryption, the U.S. Government should: (1) fully support and not undermine efforts to create encryption standards; (2) not in any way subvert, undermine, weaken, or make vulnerable generally available commercial software; and (3) increase the use of encryption and urge US companies to do so, in order to better protect data in transit, at rest, in the cloud, and in other storage.
  • The clear consensus among human rights experts and several high-ranking intelligence experts, including the former directors of the NSA, Office of the Director of National Intelligence, and DHS, is that mandating encryption backdoors is dangerous. Unaddressed Concerns: Preventing Encrypted Devices from Entering the US and the Slippery Slope In addition to the significant faults in Vance’s arguments in favor of his proposal, he fails to address the question of how such a restriction would be effectively implemented. There is no effective mechanism for preventing code from becoming available for download online, even if it is illegal. One critical issue the Vance proposal fails to address is how the government would prevent, or even identify, encrypted smartphones when individuals bring them into the United States. DHS would have to train customs agents to search the contents of every person’s phone in order to identify whether it is encrypted, and then confiscate the phones that are. Legal and policy considerations aside, this kind of policy is, at the very least, impractical. Preventing strong encryption from entering the US is not like preventing guns or drugs from entering the country — encrypted phones aren’t immediately obvious as is contraband. Millions of people use encrypted devices, and tens of millions more devices are shipped to and sold in the US each year.
  • Finally, there is a real concern that if Vance’s proposal were accepted, it would be the first step down a slippery slope. Right now, his proposal only calls for access to smartphones and devices running mobile operating systems. While this policy in and of itself would cover a number of commonplace devices, it may eventually be expanded to cover laptop and desktop computers, as well as communications in transit. The expansion of this kind of policy is even more worrisome when taking into account the speed at which technology evolves and becomes widely adopted. Ten years ago, the iPhone did not even exist. Who is to say what technology will be commonplace in 10 or 20 years that is not even around today. There is a very real question about how far law enforcement will go to gain access to information. Things that once seemed like merely science fiction, such as wearable technology and artificial intelligence that could be implanted in and work with the human nervous system, are now available. If and when there comes a time when our “smart phone” is not really a device at all, but is rather an implant, surely we would not grant law enforcement access to our minds.
  • Policymakers should dismiss Vance’s proposal to prohibit the use of strong encryption to protect our smartphones and devices in order to ensure law enforcement access. Undermining encryption, regardless of whether it is protecting data in transit or at rest, would take us down a dangerous and harmful path. Instead, law enforcement and the intelligence community should be working to alter their skills and tactics in a fast-evolving technological world so that they are not so dependent on information that will increasingly be protected by encryption.
Gonzalo San Gil, PhD.

Torrents Good For a Third of all Internet Traffic in Asia-Pacific | TorrentFreak [1/3...] - 0 views

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    " Ernesto on November 20, 2014 C: 0 News New data published by the Canadian broadband management company Sandvine reveals that BitTorrent can be credited for one-third of all Internet traffic in the Asia-Pacific region during peak hours. That's an increase of more than 50% compared to the previous year." [ # aka 1/3 of Internet income... # ! ... comes from #sharers... # ! this is a collective action to be considered as 'The #Culture' # ! that has to be '#protected'... [culture The arts and other manifestations of human intellectual achievement regarded collectively http://www.oxforddictionaries.com/definition/english/culture] # ! Consider the Money regularly injected by this group -through # ! monthly fees- on the Internet itself...] # ! 1 out of every 3 Dollars come from sharers...
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    " Ernesto on November 20, 2014 C: 0 News New data published by the Canadian broadband management company Sandvine reveals that BitTorrent can be credited for one-third of all Internet traffic in the Asia-Pacific region during peak hours. That's an increase of more than 50% compared to the previous year." # ! 1 out of every 3 Dollars come from sharers...
Paul Merrell

Why the Sony hack is unlikely to be the work of North Korea. | Marc's Security Ramblings - 0 views

  • Everyone seems to be eager to pin the blame for the Sony hack on North Korea. However, I think it’s unlikely. Here’s why:1. The broken English looks deliberately bad and doesn’t exhibit any of the classic comprehension mistakes you actually expect to see in “Konglish”. i.e it reads to me like an English speaker pretending to be bad at writing English. 2. The fact that the code was written on a PC with Korean locale & language actually makes it less likely to be North Korea. Not least because they don’t speak traditional “Korean” in North Korea, they speak their own dialect and traditional Korean is forbidden. This is one of the key things that has made communication with North Korean refugees difficult. I would find the presence of Chinese far more plausible.
  • 3. It’s clear from the hard-coded paths and passwords in the malware that whoever wrote it had extensive knowledge of Sony’s internal architecture and access to key passwords. While it’s plausible that an attacker could have built up this knowledge over time and then used it to make the malware, Occam’s razor suggests the simpler explanation of an insider. It also fits with the pure revenge tact that this started out as. 4. Whoever did this is in it for revenge. The info and access they had could have easily been used to cash out, yet, instead, they are making every effort to burn Sony down. Just think what they could have done with passwords to all of Sony’s financial accounts? With the competitive intelligence in their business documents? From simple theft, to the sale of intellectual property, or even extortion – the attackers had many ways to become rich. Yet, instead, they chose to dump the data, rendering it useless. Likewise, I find it hard to believe that a “Nation State” which lives by propaganda would be so willing to just throw away such an unprecedented level of access to the beating heart of Hollywood itself.
  • 5. The attackers only latched onto “The Interview” after the media did – the film was never mentioned by GOP right at the start of their campaign. It was only after a few people started speculating in the media that this and the communication from DPRK “might be linked” that suddenly it became linked. I think the attackers both saw this as an opportunity for “lulz” and as a way to misdirect everyone into thinking it was a nation state. After all, if everyone believes it’s a nation state, then the criminal investigation will likely die.
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  • 6. Whoever is doing this is VERY net and social media savvy. That, and the sophistication of the operation, do not match with the profile of DPRK up until now. Grugq did an excellent analysis of this aspect his findings are here – http://0paste.com/6875#md 7. Finally, blaming North Korea is the easy way out for a number of folks, including the security vendors and Sony management who are under the microscope for this. Let’s face it – most of today’s so-called “cutting edge” security defenses are either so specific, or so brittle, that they really don’t offer much meaningful protection against a sophisticated attacker or group of attackers.
  • 8. It probably also suits a number of political agendas to have something that justifies sabre-rattling at North Korea, which is why I’m not that surprised to see politicians starting to point their fingers at the DPRK also. 9. It’s clear from the leaked data that Sony has a culture which doesn’t take security very seriously. From plaintext password files, to using “password” as the password in business critical certificates, through to just the shear volume of aging unclassified yet highly sensitive data left out in the open. This isn’t a simple slip-up or a “weak link in the chain” – this is a serious organization-wide failure to implement anything like a reasonable security architecture.
  • The reality is, as things stand, Sony has little choice but to burn everything down and start again. Every password, every key, every certificate is tainted now and that’s a terrifying place for an organization to find itself. This hack should be used as the definitive lesson in why security matters and just how bad things can get if you don’t take it seriously. 10. Who do I think is behind this? My money is on a disgruntled (possibly ex) employee of Sony.
  • EDIT: This appears (at least in part) to be substantiated by a conversation the Verge had with one of the alleged hackers – http://www.theverge.com/2014/11/25/7281097/sony-pictures-hackers-say-they-want-equality-worked-with-staff-to-break-in Finally for an EXCELLENT blow by blow analysis of the breach and the events that followed, read the following post by my friends from Risk Based Security – https://www.riskbasedsecurity.com/2014/12/a-breakdown-and-analysis-of-the-december-2014-sony-hack EDIT: Also make sure you read my good friend Krypt3ia’s post on the hack – http://krypt3ia.wordpress.com/2014/12/18/sony-hack-winners-and-losers/
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    Seems that the FBI overlooked a few clues before it told Obama to go ahead and declare war against North Korea. 
Paul Merrell

Prepare to Hang Up the Phone, Forever - WSJ.com - 0 views

  • At decade's end, the trusty landline telephone could be nothing more than a memory. Telecom giants AT&T T +0.31% AT&T Inc. U.S.: NYSE $35.07 +0.11 +0.31% March 28, 2014 4:00 pm Volume (Delayed 15m) : 24.66M AFTER HOURS $35.03 -0.04 -0.11% March 28, 2014 7:31 pm Volume (Delayed 15m): 85,446 P/E Ratio 10.28 Market Cap $182.60 Billion Dividend Yield 5.25% Rev. per Employee $529,844 03/29/14 Prepare to Hang Up the Phone, ... 03/21/14 AT&T Criticizes Netflix's 'Arr... 03/21/14 Samsung's Galaxy S5 Smartphone... More quote details and news » T in Your Value Your Change Short position and Verizon Communications VZ -0.57% Verizon Communications Inc. U.S.: NYSE $47.42 -0.27 -0.57% March 28, 2014 4:01 pm Volume (Delayed 15m) : 24.13M AFTER HOURS $47.47 +0.05 +0.11% March 28, 2014 7:59 pm Volume (Delayed 15m): 1.57M
  • The two providers want to lay the crumbling POTS to rest and replace it with Internet Protocol-based systems that use the same wired and wireless broadband networks that bring Web access, cable programming and, yes, even your telephone service, into your homes. You may think you have a traditional landline because your home phone plugs into a jack, but if you have bundled your phone with Internet and cable services, you're making calls over an IP network, not twisted copper wires. California, Florida, Texas, Georgia, North Carolina, Wisconsin and Ohio are among states that agree telecom resources would be better redirected into modern telephone technologies and innovations, and will kill copper-based technologies in the next three years or so. Kentucky and Colorado are weighing similar laws, which force people to go wireless whether they want to or not. In Mantoloking, N.J., Verizon wants to replace the landline system, which Hurricane Sandy wiped out, with its wireless Voice Link. That would make it the first entire town to go landline-less, a move that isn't sitting well with all residents.
  • New Jersey's legislature, worried about losing data applications such as credit-card processing and alarm systems that wireless systems can't handle, wants a one-year moratorium to block that switch. It will vote on the measure this month. (Verizon tried a similar change in Fire Island, N.Y., when its copper lines were destroyed, but public opposition persuaded Verizon to install fiber-optic cable.) It's no surprise that landlines are unfashionable, considering many of us already have or are preparing to ditch them. More than 38% of adults and 45.5% of children live in households without a landline telephone, says the Centers for Disease Control and Prevention. That means two in every five U.S. homes, or 39%, are wireless, up from 26.6% three years ago. Moreover, a scant 8.5% of households relied only on a landline, while 2% were phoneless in 2013. Metropolitan residents have few worries about the end of landlines. High-speed wire and wireless services are abundant and work well, despite occasional dropped calls. Those living in rural areas, where cell towers are few and 4G capability limited, face different issues.
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  • Safety is one of them. Call 911 from a landline and the emergency operator pinpoints your exact address, down to the apartment number. Wireless phones lack those specifics, and even with GPS navigation aren't as precise. Matters are worse in rural and even suburban areas that signals don't reach, sometimes because they're blocked by buildings or the landscape. That's of concern to the Federal Communications Commission, which oversees all forms of U.S. communications services. Universal access is a tenet of its mission, and, despite the state-by-state degradation of the mandate, it's unwilling to let telecom companies simply drop geographically undesirable customers. Telecom firms need FCC approval to ax services completely, and can't do so unless there is a viable competitor to pick up the slack. Last year AT&T asked to turn off its legacy network, which could create gaps in universal coverage and will force people off the grid to get a wireless provider.
  • AT&T and the FCC will soon begin trials to explore life without copper-wired landlines. Consumers will voluntarily test IP-connected networks and their impact on towns like Carbon Hills, Ala., population 2,071. They want to know how households will reach 911, how small businesses will connect to customers, how people with medical-monitoring devices or home alarms know they will always be connected to a reliable network, and what the costs are. "We cannot be a nation of opportunity without networks of opportunity," said FCC Chairman Tom Wheeler in unveiling the plan. "This pilot program will help us learn how fiber might be deployed where it is not now deployed…and how new forms of wireless can reach deep into the interior of rural America."
Paul Merrell

FBI Flouts Obama Directive to Limit Gag Orders on National Security Letters - The Inter... - 0 views

  • Despite the post-Snowden spotlight on mass surveillance, the intelligence community’s easiest end-run around the Fourth Amendment since 2001 has been something called a National Security Letter. FBI agents can demand that an Internet service provider, telephone company or financial institution turn over its records on any number of people — without any judicial review whatsoever — simply by writing a letter that says the information is needed for national security purposes. The FBI at one point was cranking out over 50,000 such letters a year; by the latest count, it still issues about 60 a day. The letters look like this:
  • Recipients are legally required to comply — but it doesn’t stop there. They also aren’t allowed to mention the order to anyone, least of all the person whose data is being searched. Ever. That’s because National Security Letters almost always come with eternal gag orders. Here’s that part:
  • That means the NSL process utterly disregards the First Amendment as well. More than a year ago, President Obama announced that he was ordering the Justice Department to terminate gag orders “within a fixed time unless the government demonstrates a real need for further secrecy.” And on Feb. 3, when the Office of the Director of National Intelligence announced a handful of baby steps resulting from its “comprehensive effort to examine and enhance [its] privacy and civil liberty protections” one of the most concrete was — finally — to cap the gag orders: In response to the President’s new direction, the FBI will now presumptively terminate National Security Letter nondisclosure orders at the earlier of three years after the opening of a fully predicated investigation or the investigation’s close. Continued nondisclosures orders beyond this period are permitted only if a Special Agent in Charge or a Deputy Assistant Director determines that the statutory standards for nondisclosure continue to be satisfied and that the case agent has justified, in writing, why continued nondisclosure is appropriate.
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  • Despite the use of the word “now” in that first sentence, however, the FBI has yet to do any such thing. It has not announced any such change, nor explained how it will implement it, or when. Media inquiries were greeted with stalling and, finally, a no comment — ostensibly on advice of legal counsel. “There is pending litigation that deals with a lot of the same questions you’re asking, out of the Ninth Circuit,” FBI spokesman Chris Allen told me. “So for now, we’ll just have to decline to comment.” FBI lawyers are working on a court filing for that case, and “it will address” the new policy, he said. He would not say when to expect it.
  • There is indeed a significant case currently before the federal appeals court in San Francisco. Oral arguments were in October. A decision could come any time. But in that case, the Electronic Frontier Foundation (EFF), which is representing two unnamed communications companies that received NSLs, is calling for the entire NSL statute to be thrown out as unconstitutional — not for a tweak to the gag. And it has a March 2013 district court ruling in its favor. “The gag is a prior restraint under the First Amendment, and prior restraints have to meet an extremely high burden,” said Andrew Crocker, a legal fellow at EFF. That means going to court and meeting the burden of proof — not just signing a letter. Or as the Cato Institute’s Julian Sanchez put it, “To have such a low bar for denying persons or companies the right to speak about government orders they have been served with is anathema. And it is not very good for accountability.”
  • In a separate case, a wide range of media companies (including First Look Media, the non-profit digital media venture that produces The Intercept) are supporting a lawsuit filed by Twitter, demanding the right to say specifically how many NSLs it has received. But simply releasing companies from a gag doesn’t assure the kind of accountability that privacy advocates are saying is required by the Constitution. “What the public has to remember is a NSL is asking for your information, but it’s not asking it from you,” said Michael German, a former FBI agent who is now a fellow with the Brennan Center for Justice. “The vast majority of these things go to the very large telecommunications and financial companies who have a large stake in maintaining a good relationship with the government because they’re heavily regulated entities.”
  • So, German said, “the number of NSLs that would be exposed as a result of the release of the gag order is probably very few. The person whose records are being obtained is the one who should receive some notification.” A time limit on gags going forward also raises the question of whether past gag orders will now be withdrawn. “Obviously there are at this point literally hundreds of thousands of National Security Letters that are more than three years old,” said Sanchez. Individual review is therefore unlikely, but there ought to be some recourse, he said. And the further back you go, “it becomes increasingly implausible that a significant percentage of those are going to entail some dire national security risk.” The NSL program has a troubled history. The absolute secrecy of the program and resulting lack of accountability led to systemic abuse as documented by repeated inspector-general investigations, including improperly authorized NSLs, factual misstatements in the NSLs, improper requests under NSL statutes, requests for information based on First Amendment protected activity, “after-the-fact” blanket NSLs to “cover” illegal requests, and hundreds of NSLs for “community of interest” or “calling circle” information without any determination that the telephone numbers were relevant to authorized national security investigations.
  • Obama’s own hand-selected “Review Group on Intelligence and Communications Technologies” recommended in December 2013 that NSLs should only be issued after judicial review — just like warrants — and that any gag should end within 180 days barring judicial re-approval. But FBI director James Comey objected to the idea, calling NSLs “a very important tool that is essential to the work we do.” His argument evidently prevailed with Obama.
  • NSLs have managed to stay largely under the American public’s radar. But, Crocker says, “pretty much every time I bring it up and give the thumbnail, people are shocked. Then you go into how many are issued every year, and they go crazy.” Want to send me your old NSL and see if we can set a new precedent? Here’s how to reach me. And here’s how to leak to me.
Paul Merrell

Microsoft Pitches Technology That Can Read Facial Expressions at Political Rallies - 1 views

  • On the 21st floor of a high-rise hotel in Cleveland, in a room full of political operatives, Microsoft’s Research Division was advertising a technology that could read each facial expression in a massive crowd, analyze the emotions, and report back in real time. “You could use this at a Trump rally,” a sales representative told me. At both the Republican and Democratic conventions, Microsoft sponsored event spaces for the news outlet Politico. Politico, in turn, hosted a series of Microsoft-sponsored discussions about the use of data technology in political campaigns. And throughout Politico’s spaces in both Philadelphia and Cleveland, Microsoft advertised an array of products from “Microsoft Cognitive Services,” its artificial intelligence and cloud computing division. At one exhibit, titled “Realtime Crowd Insights,” a small camera scanned the room, while a monitor displayed the captured image. Every five seconds, a new image would appear with data annotated for each face — an assigned serial number, gender, estimated age, and any emotions detected in the facial expression. When I approached, the machine labeled me “b2ff” and correctly identified me as a 23-year-old male.
  • “Realtime Crowd Insights” is an Application Programming Interface (API), or a software tool that connects web applications to Microsoft’s cloud computing services. Through Microsoft’s emotional analysis API — a component of Realtime Crowd Insights — applications send an image to Microsoft’s servers. Microsoft’s servers then analyze the faces and return emotional profiles for each one. In a November blog post, Microsoft said that the emotional analysis could detect “anger, contempt, fear, disgust, happiness, neutral, sadness or surprise.” Microsoft’s sales representatives told me that political campaigns could use the technology to measure the emotional impact of different talking points — and political scientists could use it to study crowd response at rallies.
  • Facial recognition technology — the identification of faces by name — is already widely used in secret by law enforcement, sports stadiums, retail stores, and even churches, despite being of questionable legality. As early as 2002, facial recognition technology was used at the Super Bowl to cross-reference the 100,000 attendees to a database of the faces of known criminals. The technology is controversial enough that in 2013, Google tried to ban the use of facial recognition apps in its Google glass system. But “Realtime Crowd Insights” is not true facial recognition — it could not identify me by name, only as “b2ff.” It did, however, store enough data on each face that it could continuously identify it with the same serial number, even hours later. The display demonstrated that capability by distinguishing between the number of total faces it had seen, and the number of unique serial numbers. Photo: Alex Emmons
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  • Instead, “Realtime Crowd Insights” is an example of facial characterization technology — where computers analyze faces without necessarily identifying them. Facial characterization has many positive applications — it has been tested in the classroom, as a tool for spotting struggling students, and Microsoft has boasted that the tool will even help blind people read the faces around them. But facial characterization can also be used to assemble and store large profiles of information on individuals, even anonymously.
  • Alvaro Bedoya, a professor at Georgetown Law School and expert on privacy and facial recognition, has hailed that code of conduct as evidence that Microsoft is trying to do the right thing. But he pointed out that it leaves a number of questions unanswered — as illustrated in Cleveland and Philadelphia. “It’s interesting that the app being shown at the convention ‘remembered’ the faces of the people who walked by. That would seem to suggest that their faces were being stored and processed without the consent that Microsoft’s policy requires,” Bedoya said. “You have to wonder: What happened to the face templates of the people who walked by that booth? Were they deleted? Or are they still in the system?” Microsoft officials declined to comment on exactly what information is collected on each face and what data is retained or stored, instead referring me to their privacy policy, which does not address the question. Bedoya also pointed out that Microsoft’s marketing did not seem to match the consent policy. “It’s difficult to envision how companies will obtain consent from people in large crowds or rallies.”
  •  
    But nobody is saying that the output of this technology can't be combined with the output of facial recognition technology to let them monitor you individually AND track your emotions. Fortunately, others are fighting back with knowledge and tech to block facial recognition. http://goo.gl/JMQM2W
Matteo Spreafico

Google Redefines Disruption: The "Less Than Free" Business Model - 0 views

  • In the summer of 2007, excitement regarding the criticality of map data (specifically turn-by-turn navigation data) reached a fever pitch.  On July 23, 2007, TomTom, the leading portable GPS device maker, agreed to buy Tele Atlas for US$2.7 billion. Shortly thereafter, on October 1, Nokia agreed to buy NavTeq for a cool US$8.1 billion. Meanwhile Google was still evolving its strategy and no longer wanted to be limited by the terms of its two contracts. As such, they informed Tele Atlas and NavTeq that they wanted to modify their license terms to allow more liberty with respect to syndication and proliferation. NavTeq balked, and in September of 2008 Google quietly dropped NavTeq, moving to just one partner for its core mapping data. Tele Atlas eventually agreed to the term modifications, but perhaps they should have sensed something bigger at play.
  • Rumors abound about just how many cars Google has on the roads building it own turn-by-turn mapping data as well as its unique “Google Streetview” database. Whatever it is, it must be huge. This October 13th, just over one year after dropping NavTeq, the other shoe dropped as well. Google disconnected from Tele Atlas and began to offer maps that were free and clear of either license. These maps are based on a combination of their own data as well as freely available data. Two weeks after this, Google announces free turn-by-turn directions for all Android phones. This couldn’t have been a great day for the deal teams that worked on the respective Tele Atlas and NavTeq acquisitions.
  • Google’s free navigation feature announcement dealt a crushing blow to the GPS stocks. Garmin fell 16%. TomTom fell 21%. Imagine trying to maintain high royalty rates against this strategic move by Google. Android is not only a phone OS, it’s a CE OS. If Ford or BMW want to build an in-dash Android GPS, guess what? Google will give it to them for free.
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  • I then asked my friend, “so why would they ever use the Google (non open source) license version.”  (EDIT: One of the commenters below pointed out that all Android is open source, and the Google apps pack, including the GPS, is licensed on top.  Doesn’t change the argument, but wanted the correct data included here.)  Here was the big punch line – because Google will give you ad splits on search if you use that version!  That’s right; Google will pay you to use their mobile OS. I like to call this the “less than free” business model.
  • “Less than free” may not stop with the mobile phone. Google’s CEO Eric Schmidt has been quite outspoken about his support for the Google Chrome OS. And there is no reason to believe that the “less than free” business model will not be used here as well. If Sony or HP or Dell builds a netbook based on Chrome OS, they will make money on every search each user initiates. Google, eager to protect its search share and market volume, will gladly pay the ad splits. Microsoft, who was already forced to lower Windows netbook pricing to fend off Linux, will be dancing with a business model inversion of epic proportion – from “you pay me” to “I pay you.”  It’s really hard to build a compensation package for your sales team on those economics.
Paul Merrell

Firefox, YouTube and WebM ✩ Mozilla Hacks - the Web developer blog - 1 views

  • 1. Google will be releasing VP8 under an open source and royalty-free basis. VP8 is a high-quality video codec that Google acquired when they purchased the company On2. The VP8 codec represents a vast improvement in quality-per-bit over Theora and is comparable in quality to H.264. 2. The VP8 codec will be combined with the Vorbis audio codec and a subset of the Matroska container format to build a new standard for Open Video on the web called WebM. You can find out more about the project at its new site: http://www.webmproject.org/. 3. We will include support for WebM in Firefox. You can get super-early WebM builds of Firefox 4 pre-alpha today. WebM will also be included in Google Chrome and Opera. 4. Every video on YouTube will be transcoded into WebM. They have about 1.2 million videos available today and will be working through their back catalog over time. But they have committed to supporting everything. 5. This is something that is supported by many partners, not just Google and others. Content providers like Brightcove have signed up to support WebM as part of a full HTML5 video solution. Hardware companies, encoding providers and other parts of the video stack are all part of the list of companies backing WebM. Even Adobe will be supporting WebM in Flash. Firefox, with its market share and principled leadership and YouTube, with its video reach are the most important partners in this solution, but we are only a small part of the larger ecosystem of video.
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