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A Message from the Amazon Books Team Dear Readers, Just ahead of World War II, there was a radical invention that shook the foundations of book publishing. It was the paperback book. This was a time when movie tickets cost 10 or 20 cents, and books cost $2.50. The new paperback cost 25 cents — it was ten times cheaper. Readers loved the paperback and millions of copies were sold in just the first year. With it being so inexpensive and with so many more people able to afford to buy and read books, you would think the literary establishment of the day would have celebrated the invention of the paperback, yes? Nope. Instead, they dug in and circled the wagons. They believed low cost paperbacks would destroy literary culture and harm the industry (not to mention their own bank accounts). Many bookstores refused to stock them, and the early paperback publishers had to use unconventional methods of distribution — places like newsstands and drugstores. The famous author George Orwell came out publicly and said about the new paperback format, if "publishers had any sense, they would combine against them and suppress them." Yes, George Orwell was suggesting collusion. Well… history doesn't repeat itself, but it does rhyme.

Fast forward to today, and it's the e-book's turn to be opposed by the literary establishment. Amazon and Hachette — a big US publisher and part of a $10 billion media conglomerate — are in the middle of a business dispute about e-books. We want lower e-book prices. Hachette does not. Many e-books are being released at $14.99 and even $19.99. That is unjustifiably high for an e-book. With an e-book, there's no printing, no over-printing, no need to forecast, no returns, no lost sales due to out of stock, no warehousing costs, no transportation costs, and there is no secondary market — e-books cannot be resold as used books. E-books can and should be less expensive. Perhaps channeling Orwell's decades old suggestion, Hachette has already been caught illegally colluding with its competitors to raise e-book prices. So far those parties have paid $166 million in penalties and restitution. Colluding with its competitors to raise prices wasn't only illegal, it was also highly disrespectful to Hachette's readers. The fact is many established incumbents in the industry have taken the position that lower e-book prices will "devalue books" and hurt "Arts and Letters." They're wrong. Just as paperbacks did not destroy book culture despite being ten times cheaper, neither will e-books. On the contrary, paperbacks ended up rejuvenating the book industry and making it stronger. The same will happen with e-books.

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.

The NSA and Britain's GCHQ hacked the world's biggest SIM card maker to harvest the encryption keys needed to silently and effortlessly eavesdrop on potentially millions of people. That's according to documents obtained by surveillance whistleblower Edward Snowden and leaked to the web on Thursday. "Wow. This is huge – it's one of the most significant findings of the Snowden files so far," computer security guru Bruce Schneier told The Register this afternoon. "We always knew that they would occasionally steal SIM keys. But all of them? The odds that they just attacked this one firm are extraordinarily low and we know the NSA does like to steal keys where it can." The damning slides, published by Snowden's chums at The Intercept, detail the activities of the as-yet unheard-of Mobile Handset Exploitation Team (MHET), run by the US and UK. The group targeted Gemalto, which churns out about two billion SIM cards each year for use around the world, and targeted it in an operation dubbed DAPINO GAMMA.

Gemalto's hacking may also bring into question some of its other security products as well. The company supplies chips for electronic passports issued by the US, Singapore, India, and many European states, and is also involved in the NFC and mobile banking sector. It's important to note that this is useful for tracking the phone activity of a target, but the mobile user can still use encryption on the handset itself to ensure that some communications remain private. "Ironically one of your best defenses against a hijacked SIM is to use software encryption," Jon Callas, CTO of encrypted chat biz Silent Circle told The Register. "In our case there's a TCP/IP cloud between Alice and Bob and that can deal with compromised routers along the path as well as SIM issues, and the same applies to similar mobile software."

On Wednesday the UK government admitted that its intelligence agencies had in fact broken the ECHR when spying on communications between lawyers and those suing the British state, so GCHQ might want to reconsider that statement.

Micah Lee: What are some operational security practices you think everyone should adopt? Just useful stuff for average people. Edward Snowden: [Opsec] is important even if you’re not worried about the NSA. Because when you think about who the victims of surveillance are, on a day-to-day basis, you’re thinking about people who are in abusive spousal relationships, you’re thinking about people who are concerned about stalkers, you’re thinking about children who are concerned about their parents overhearing things. It’s to reclaim a level of privacy. The first step that anyone could take is to encrypt their phone calls and their text messages. You can do that through the smartphone app Signal, by Open Whisper Systems. It’s free, and you can just download it immediately. And anybody you’re talking to now, their communications, if it’s intercepted, can’t be read by adversaries. [Signal is available for iOS and Android, and, unlike a lot of security tools, is very easy to use.] You should encrypt your hard disk, so that if your computer is stolen the information isn’t obtainable to an adversary — pictures, where you live, where you work, where your kids are, where you go to school. [I’ve written a guide to encrypting your disk on Windows, Mac, and Linux.] Use a password manager. One of the main things that gets people’s private information exposed, not necessarily to the most powerful adversaries, but to the most common ones, are data dumps. Your credentials may be revealed because some service you stopped using in 2007 gets hacked, and your password that you were using for that one site also works for your Gmail account. A password manager allows you to create unique passwords for every site that are unbreakable, but you don’t have the burden of memorizing them. [The password manager KeePassX is free, open source, cross-platform, and never stores anything in the cloud.]

The other thing there is two-factor authentication. The value of this is if someone does steal your password, or it’s left or exposed somewhere … [two-factor authentication] allows the provider to send you a secondary means of authentication — a text message or something like that. [If you enable two-factor authentication, an attacker needs both your password as the first factor and a physical device, like your phone, as your second factor, to login to your account. Gmail, Facebook, Twitter, Dropbox, GitHub, Battle.net, and tons of other services all support two-factor authentication.]

We should armor ourselves using systems we can rely on every day. This doesn’t need to be an extraordinary lifestyle change. It doesn’t have to be something that is disruptive. It should be invisible, it should be atmospheric, it should be something that happens painlessly, effortlessly. This is why I like apps like Signal, because they’re low friction. It doesn’t require you to re-order your life. It doesn’t require you to change your method of communications. You can use it right now to talk to your friends.

The U.S. military is spending millions on an advanced implant that would allow a human brain to communicate directly with computers.If it succeeds, cyborgs will be a reality.The Pentagon's research arm, the Defense Advanced Research Projects Agency (DARPA), hopes the implant will allow humans to directly interface with computers, which could benefit people with aural and visual disabilities, such as veterans injured in combat.The goal of the proposed implant is to "open the channel between the human brain and modern electronics" according to DARPA's program manager, Phillip Alvelda.

DARPA sees the implant as providing a foundation for new therapies that could help people with deficits in sight or hearing by "feeding digital auditory or visual information into the brain."A spokesman for DARPA told CNN that the program is not intended for military applications.

But some experts see such an implant as having the potential for numerous applications, including military ones, in the field of wearable robotics -- which aims to augment and restore human performance.Conor Walsh, a professor of mechanical and biomedical engineering at Harvard University, told CNN that the implant would "change the game," adding that "in the future, wearable robotic devices will be controlled by implants."Walsh sees the potential for wearable robotic devices or exoskeletons in everything from helping a medical patient recover from a stroke to enhancing soldiers' capabilities in combat.The U.S. military is currently developing a battery-powered exoskeleton, the Tactical Assault Light Operator Suit, to provide superior protection from enemy fire and in-helmet technologies that boost the user's communications ability and vision.The suits' development is being overseen by U.S. Special Operations Command.In theory, the proposed neural implant would allow the military member operating the suit to more effectively control the armored exoskeleton while deployed in combat.

It's an uncertain waiting game as to when the next-generation high-speed wireless service known as 5G will reach mass market, but the business implications are already a major talking point at CES 2018.

The term "5G" refers to the fifth-generation wireless broadband technology based on the 802.11ac standard. The packet of technology will bring speed and coverage improvements from 4G, with low-latency wireless up to 1GB/s, and it'll spur a host of new opportunities for enterprises and workplace productivity.In a panel discussion at CES, a trio of executives from Qualcomm, Ericsson, and Nokia discussed how 5G could transform industries ranging from transportation to manufacturing.

Some 5G rollouts are already planned for 2018. Samsung announced last Wednesday that it will provide Verizon with routers and radio frequency planning services for the carrier's initial 5G commercial rollout that will begin in Sacramento, Calif., in the second half of 2018.Meanwhile, AT&T announced that it will provide 5G services in roughly 12 markets by late 2018, with plans to offer the service to consumers while it trials 5G technology with businesses across all industries.Still, the panel of executives at CES remain skeptical that 5G would roll out for most Americans before late 2019 or 2020.

Military planners should not anticipate that the United States will ever dominate cyberspace, the Joint Chiefs of Staff said in a new doctrinal publication. The kind of supremacy that might be achievable in other domains is not a realistic option in cyber operations. “Permanent global cyberspace superiority is not possible due to the complexity of cyberspace,” the DoD publication said. In fact, “Even local superiority may be impractical due to the way IT [information technology] is implemented; the fact US and other national governments do not directly control large, privately owned portions of cyberspace; the broad array of state and non-state actors; the low cost of entry; and the rapid and unpredictable proliferation of technology.” Nevertheless, the military has to make do under all circumstances. “Commanders should be prepared to conduct operations under degraded conditions in cyberspace.” This sober assessment appeared in a new edition of Joint Publication 3-12, Cyberspace Operations, dated June 8, 2018. (The 100-page document updates and replaces a 70-page version from 2013.) The updated DoD doctrine presents a cyber concept of operations, describes the organization of cyber forces, outlines areas of responsibility, and defines limits on military action in cyberspace, including legal limits.

The new cyber doctrine reiterates the importance and the difficulty of properly attributing cyber attacks against the US to their source. “The ability to hide the sponsor and/or the threat behind a particular malicious effect in cyberspace makes it difficult to determine how, when, and where to respond,” the document said. “The design of the Internet lends itself to anonymity and, combined with applications intended to hide the identity of users, attribution will continue to be a challenge for the foreseeable future.”

Wedbush analyst Daniel Ives called the decline of iPhone sales in China a "doomsday type" like decline. Ives said the fall was an "unprecedented" drop and was "not surprising given the essential lockdown that most of China saw" in February. Wedbush expects Chinese demand to come back online in the second half of the year. * * * We've explained that economic paralysis in China started in early February and continues to this day. Alternative data first showed us the incoming economic crash developing in early February, only to be confirmed weeks later. Twin shocks plague the Chinese economy, which is a supply shock with manufacturers operating at less than full capacity, along with a demand shock, where consumers have been confined to their homes in forced quarantine, unable to spend.  So, on Monday morning, when new data from the China Academy of Information and Communications Technology (CAICT) reveals Apple smartphone sales in China were halved in February, this really shouldn't surprise ZeroHedge readers, considering they've been well informed about what would happen next. 

And it wasn't just Apple with plunging activity, all mobile phone brands operating in China saw shipments halved over the month.  CAICT said 6.34 million devices were shipped last month, down 54.7% from 14 million in the same month the previous year. This was the lowest level of February shipments since 2012, when the CAICT data first became available.  Android brands, including Huawei and Xiaomi, accounted for most of the drop, collectively saw shipments at 5.85 million units for the month, compared to 12.72 million units last year. Apple shipped 494,000 last month, down from 1.27 million in February 2019.

A coalition of state attorneys general filed an antitrust case against Google on Wednesday. They accused Google of giving Facebook unfair advertising advantages to stop it from getting into an area of adtech called "header bidding." Google perceived a move by Facebook into this space as a threat, they said. Per Wired, if this deal is proved to be true, it could spell big trouble for Google and Facebook, as it would fall under part of the Sherman Antitrust Act that has a relatively low bar for illegality. Google denied the claims, and Facebook was not immediately available for comment.