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Paul Merrell

European Lawmakers Demand Answers on Phone Key Theft - The Intercept - 0 views

firstlook.org/...gemalto-heist-shocks-europe

surveillance state Gemalto SIM-card-keys

shared by Paul Merrell on 24 Feb 15 - No Cached
  • European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday. The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys. The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.” “Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal. Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”
  • “If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday. The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said. Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request. Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.
  • According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year. The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.
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  • While Gemalto was indeed another casualty in Western governments’ sweeping effort to gather as much global intelligence advantage as possible, the leaked documents make clear that the company was specifically targeted. According to the materials published Thursday, GCHQ used a specific codename — DAPINO GAMMA — to refer to the operations against Gemalto. The spies also actively penetrated the email and social media accounts of Gemalto employees across the world in an effort to steal the company’s encryption keys. Evidence of the Gemalto breach rattled the digital security community. “Almost everyone in the world carries cell phones and this is an unprecedented mass attack on the privacy of citizens worldwide,” said Greg Nojeim, senior counsel at the Center for Democracy & Technology, a non-profit that advocates for digital privacy and free online expression. “While there is certainly value in targeted surveillance of cell phone communications, this coordinated subversion of the trusted technical security infrastructure of cell phones means the US and British governments now have easy access to our mobile communications.”
  • For Gemalto, evidence that their vaunted security systems and the privacy of customers had been compromised by the world’s top spy agencies made an immediate financial impact. The company’s shares took a dive on the Paris bourse Friday, falling $500 million. In the U.S., Gemalto’s shares fell as much 10 percent Friday morning. They had recovered somewhat — down 4 percent — by the close of trading on the Euronext stock exchange. Analysts at Dutch financial services company Rabobank speculated in a research note that Gemalto could be forced to recall “a large number” of SIM cards. The French daily L’Express noted today that Gemalto board member Alex Mandl was a founding trustee of the CIA-funded venture capital firm In-Q-Tel. Mandl resigned from In-Q-Tel’s board in 2002, when he was appointed CEO of Gemplus, which later merged with another company to become Gemalto. But the CIA connection still dogged Mandl, with the French press regularly insinuating that American spies could infiltrate the company. In 2003, a group of French lawmakers tried unsuccessfully to create a commission to investigate Gemplus’s ties to the CIA and its implications for the security of SIM cards. Mandl, an Austrian-American businessman who was once a top executive at AT&T, has denied that he had any relationship with the CIA beyond In-Q-Tel. In 2002, he said he did not even have a security clearance.
  • AT&T, T-Mobile and Verizon could not be reached for comment Friday. Sprint declined to comment. Vodafone, the world’s second largest telecom provider by subscribers and a customer of Gemalto, said in a statement, “[W]e have no further details of these allegations which are industrywide in nature and are not focused on any one mobile operator. We will support industry bodies and Gemalto in their investigations.” Deutsche Telekom AG, a German company, said it has changed encryption algorithms in its Gemalto SIM cards. “We currently have no knowledge that this additional protection mechanism has been compromised,” the company said in a statement. “However, we cannot rule out this completely.”
  • Update: Asked about the SIM card heist, White House press secretary Josh Earnest said he did not expect the news would hurt relations with the tech industry: “It’s hard for me to imagine that there are a lot of technology executives that are out there that are in a position of saying that they hope that people who wish harm to this country will be able to use their technology to do so. So, I do think in fact that there are opportunities for the private sector and the federal government to coordinate and to cooperate on these efforts, both to keep the country safe, but also to protect our civil liberties.”
  • Paul Merrell on 24 Feb 15
     
    Watch for massive class action product defect litigation to be filed against the phone companies.and mobile device manufacturers.  In most U.S. jurisdictions, proof that the vendors/manufacturers  knew of the product defect is not required, only proof of the defect. Also, this is a golden opportunity for anyone who wants to get out of a pricey cellphone contract, since providing a compromised cellphone is a material breach of warranty, whether explicit or implied..   
Paul Merrell

Spies and internet giants are in the same business: surveillance. But we can stop them ... - 0 views

www.theguardian.com/...-harbour-ruling-edward-snowden

surveillance state NSA EU data privacy litigation

shared by Paul Merrell on 12 Oct 15 - No Cached
  • On Tuesday, the European court of justice, Europe’s supreme court, lobbed a grenade into the cosy, quasi-monopolistic world of the giant American internet companies. It did so by declaring invalid a decision made by the European commission in 2000 that US companies complying with its “safe harbour privacy principles” would be allowed to transfer personal data from the EU to the US. This judgment may not strike you as a big deal. You may also think that it has nothing to do with you. Wrong on both counts, but to see why, some background might be useful. The key thing to understand is that European and American views about the protection of personal data are radically different. We Europeans are very hot on it, whereas our American friends are – how shall I put it? – more relaxed.
  • Given that personal data constitutes the fuel on which internet companies such as Google and Facebook run, this meant that their exponential growth in the US market was greatly facilitated by that country’s tolerant data-protection laws. Once these companies embarked on global expansion, however, things got stickier. It was clear that the exploitation of personal data that is the core business of these outfits would be more difficult in Europe, especially given that their cloud-computing architectures involved constantly shuttling their users’ data between server farms in different parts of the world. Since Europe is a big market and millions of its citizens wished to use Facebook et al, the European commission obligingly came up with the “safe harbour” idea, which allowed companies complying with its seven principles to process the personal data of European citizens. The circle having been thus neatly squared, Facebook and friends continued merrily on their progress towards world domination. But then in the summer of 2013, Edward Snowden broke cover and revealed what really goes on in the mysterious world of cloud computing. At which point, an Austrian Facebook user, one Maximilian Schrems, realising that some or all of the data he had entrusted to Facebook was being transferred from its Irish subsidiary to servers in the United States, lodged a complaint with the Irish data protection commissioner. Schrems argued that, in the light of the Snowden revelations, the law and practice of the United States did not offer sufficient protection against surveillance of the data transferred to that country by the government.
  • The Irish data commissioner rejected the complaint on the grounds that the European commission’s safe harbour decision meant that the US ensured an adequate level of protection of Schrems’s personal data. Schrems disagreed, the case went to the Irish high court and thence to the European court of justice. On Tuesday, the court decided that the safe harbour agreement was invalid. At which point the balloon went up. “This is,” writes Professor Lorna Woods, an expert on these matters, “a judgment with very far-reaching implications, not just for governments but for companies the business model of which is based on data flows. It reiterates the significance of data protection as a human right and underlines that protection must be at a high level.”
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  • This is classic lawyerly understatement. My hunch is that if you were to visit the legal departments of many internet companies today you would find people changing their underpants at regular intervals. For the big names of the search and social media worlds this is a nightmare scenario. For those of us who take a more detached view of their activities, however, it is an encouraging development. For one thing, it provides yet another confirmation of the sterling service that Snowden has rendered to civil society. His revelations have prompted a wide-ranging reassessment of where our dependence on networking technology has taken us and stimulated some long-overdue thinking about how we might reassert some measure of democratic control over that technology. Snowden has forced us into having conversations that we needed to have. Although his revelations are primarily about government surveillance, they also indirectly highlight the symbiotic relationship between the US National Security Agency and Britain’s GCHQ on the one hand and the giant internet companies on the other. For, in the end, both the intelligence agencies and the tech companies are in the same business, namely surveillance.
  • And both groups, oddly enough, provide the same kind of justification for what they do: that their surveillance is both necessary (for national security in the case of governments, for economic viability in the case of the companies) and conducted within the law. We need to test both justifications and the great thing about the European court of justice judgment is that it starts us off on that conversation.
Paul Merrell

Testosterone Pit - Home - The Other Reason Why IBM Throws A Billion At Linux ... - 0 views

www.testosteronepit.com/...billion-at-linux-with-nsa.html

surveillance state NSA Linux Linux-backdoor Solaris FreeBSD Darwin

shared by Paul Merrell on 18 Oct 13 - No Cached
  • IBM announced today that it would throw another billion at Linux, the open-source operating system, to run its Power System servers. The first time it had thrown a billion at Linux was in 2001, when Linux was a crazy, untested, even ludicrous proposition for the corporate world. So the moolah back then didn’t go to Linux itself, which was free, but to related technologies across hardware, software, and service, including things like sales and advertising – and into IBM’s partnership with Red Hat which was developing its enterprise operating system, Red Hat Enterprise Linux. “It helped start a flurry of innovation that has never slowed,” said Jim Zemlin, executive director of the Linux Foundation. IBM claims that the investment would “help clients capitalize on big data and cloud computing with modern systems built to handle the new wave of applications coming to the data center in the post-PC era.” Some of the moolah will be plowed into the Power Systems Linux Center in Montpellier, France, which opened today. IBM’s first Power Systems Linux Center opened in Beijing in May. IBM may be trying to make hay of the ongoing revelations that have shown that the NSA and other intelligence organizations in the US and elsewhere have roped in American tech companies of all stripes with huge contracts to perfect a seamless spy network. They even include physical aspects of surveillance, such as license plate scanners and cameras, which are everywhere [read.... Surveillance Society: If You Drive, You Get Tracked].
  • It would be an enormous competitive advantage for an IBM salesperson to walk into a government or corporate IT department and sell Big Data servers that don’t run on Windows, but on Linux. With the Windows 8 debacle now in public view, IBM salespeople don’t even have to mention it. In the hope of stemming the pernicious revenue decline their employer has been suffering from, they can politely and professionally hype the security benefits of IBM’s systems and mention in passing the comforting fact that some of it would be developed in the Power Systems Linux Centers in Montpellier and Beijing. Alas, Linux too is tarnished. The backdoors are there, though the code can be inspected, unlike Windows code. And then there is Security-Enhanced Linux (SELinux), which was integrated into the Linux kernel in 2003. It provides a mechanism for supporting “access control” (a backdoor) and “security policies.” Who developed SELinux? Um, the NSA – which helpfully discloses some details on its own website (emphasis mine): The results of several previous research projects in this area have yielded a strong, flexible mandatory access control architecture called Flask. A reference implementation of this architecture was first integrated into a security-enhanced Linux® prototype system in order to demonstrate the value of flexible mandatory access controls and how such controls could be added to an operating system. The architecture has been subsequently mainstreamed into Linux and ported to several other systems, including the Solaris™ operating system, the FreeBSD® operating system, and the Darwin kernel, spawning a wide range of related work.
  • Then another boon for IBM. Experts at the German Federal Office for Security in Information Technology (BIS) determined that Windows 8 is dangerous for data security. It allows Microsoft to control the computer remotely through a “special surveillance chip,” the wonderfully named Trusted Platform Module (TPM), and a backdoor in the software – with keys likely accessible to the NSA and possibly other third parties, such as the Chinese. Risks: “Loss of control over the operating system and the hardware” [read.... LEAKED: German Government Warns Key Entities Not To Use Windows 8 – Links The NSA.
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  • Among a slew of American companies who contributed to the NSA’s “mainstreaming” efforts: Red Hat. And IBM? Like just about all of our American tech heroes, it looks at the NSA and other agencies in the Intelligence Community as “the Customer” with deep pockets, ever increasing budgets, and a thirst for technology and data. Which brings us back to Windows 8 and TPM. A decade ago, a group was established to develop and promote Trusted Computing that governs how operating systems and the “special surveillance chip” TPM work together. And it too has been cooperating with the NSA. The founding members of this Trusted Computing Group, as it’s called facetiously: AMD, Cisco, Hewlett-Packard, Intel, Microsoft, and Wave Systems. Oh, I almost forgot ... and IBM. And so IBM might not escape, despite its protestations and slick sales presentations, the suspicion by foreign companies and governments alike that its Linux servers too have been compromised – like the cloud products of other American tech companies. And now, they’re going to pay a steep price for their cooperation with the NSA. Read...  NSA Pricked The “Cloud” Bubble For US Tech Companies
Paul Merrell

Is Apple an Illegal Monopoly? | OneZero - 0 views

onezero.medium.com/s-secret-monopoly-5718272c16a5

antitrust BigTech

shared by Paul Merrell on 29 Jul 20 - No Cached
  • That’s not a bug. It’s a function of Apple policy. With some exceptions, the company doesn’t let users pay app makers directly for their apps or digital services. They can only pay Apple, which takes a 30% cut of all revenue and then passes 70% to the developer. (For subscription services, which account for the majority of App Store revenues, that 30% cut drops to 15% after the first year.) To tighten its grip, Apple prohibits the affected apps from even telling users how they can pay their creators directly.In 2018, unwilling to continue paying the “Apple tax,” Netflix followed Spotify and Amazon’s Kindle books app in pulling in-app purchases from its iOS app. Users must now sign up elsewhere, such as on the company’s website, in order for the app to become usable. Of course, these brands are big enough to expect that many users will seek them out anyway.
  • Smaller app developers, meanwhile, have little choice but to play by Apple’s rules. That’s true even when they’re competing with Apple’s own apps, which pay no such fees and often enjoy deeper access to users’ devices and information.Now, a handful of developers are speaking out about it — and government regulators are beginning to listen. David Heinemeier Hansson, the co-founder of the project management software company Basecamp, told members of the U.S. House antitrust subcommittee in January that navigating the App Store’s fees, rules, and review processes can feel like a “Kafka-esque nightmare.”One of the world’s most beloved companies, Apple has long enjoyed a reputation for user-friendly products, and it has cultivated an image as a high-minded protector of users’ privacy. The App Store, launched in 2008, stands as one of its most underrated inventions; it has powered the success of the iPhone—perhaps the most profitable product in human history. The concept was that Apple and developers could share in one another’s success with the iPhone user as the ultimate beneficiary.
  • But critics say that gauzy success tale belies the reality of a company that now wields its enormous market power to bully, extort, and sometimes even destroy rivals and business partners alike. The iOS App Store, in their telling, is a case study in anti-competitive corporate behavior. And they’re fighting to change that — by breaking its choke hold on the Apple ecosystem.
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  • Whether Apple customers have a real choice in mobile platforms, once they’ve bought into the company’s ecosystem, is another question. In theory, they could trade in their pricey hardware for devices that run Android, which offers equivalents of many iOS features and apps. In reality, Apple has built its empire on customer lock-in: making its own gadgets and services work seamlessly with one another, but not with those of rival companies. Tasks as simple as texting your friends can become a migraine-inducing mess when you switch from iOS to Android. The more Apple products you buy, the more onerous it becomes to abandon ship.
  • The case against Apple goes beyond iOS. At a time when Apple is trying to reinvent itself as a services company to offset plateauing hardware sales — pushing subscriptions to Apple Music, Apple TV+, Apple News+, and Apple Arcade, as well as its own credit card — the antitrust concerns are growing more urgent. Once a theoretical debate, the question of whether its App Store constitutes an illegal monopoly is now being actively litigated on multiple fronts.
  • The company faces an antitrust lawsuit from consumers; a separate antitrust lawsuit from developers; a formal antitrust complaint from Spotify in the European Union; investigations by the Federal Trade Commission and the Department of Justice; and an inquiry by the antitrust subcommittee of the U.S House of Representatives. At stake are not only Apple’s profits, but the future of mobile software.Apple insists that it isn’t a monopoly, and that it strives to make the app store a fair and level playing field even as its own apps compete on that field. But in the face of unprecedented scrutiny, there are signs that the famously stubborn company may be feeling the pressure to prove it.
  • Tile is hardly alone in its grievances. Apple’s penchant for copying key features of third-party apps and integrating them into its operating system is so well-known among developers that it has a name: “Sherlocking.” It’s a reference to the time—in the early 2000s—when Apple kneecapped a popular third-party web-search interface for Mac OS X, called Watson. Apple built virtually all of Watson’s functionality into its own feature, called Sherlock.In a 2006 blog post, Watson’s developer, Karelia Software, recalled how Apple’s then-CEO Steve Jobs responded when they complained about the company’s 2002 power play. “Here’s how I see it,” Jobs said, according to Karelia founder Dan Wood’s loose paraphrase. “You know those handcars, the little machines that people stand on and pump to move along on the train tracks? That’s Karelia. Apple is the steam train that owns the tracks.”From an antitrust standpoint, the metaphor is almost too perfect. It was the monopoly power of railroads in the late 19th century — and their ability to make or break the businesses that used their tracks — that spurred the first U.S. antitrust regulations.There’s another Jobs quote that’s relevant here. Referencing Picasso’s famous saying, “Good artists copy, great artists steal,” Jobs said of Apple in 2006. “We have always been shameless about stealing great ideas.” Company executives later tried to finesse the quote’s semantics, but there’s no denying that much of iOS today is built on ideas that were not originally Apple’s.
Gary Edwards

Readium at the London Book Fair 2014: Open Source for an Open Publishing Ecosystem: Rea... - 0 views

www.publishersweekly.com/...tem-readium-org-turns-one.html

Readium ePUB OpenWeb-Productivity-Platform HTML5

shared by Gary Edwards on 05 Apr 14 - No Cached
  • Gary Edwards on 05 Apr 14
     
    excerpt/intro: Last month marked the one-year anniversary of the formation of the Readium Foundation (Readium.org), an independent nonprofit launched in March 2013 with the objective of developing commercial-grade open source publishing technology software. The overall goal of Readium.org is to accelerate adoption of ePub 3, HTML5, and the Open Web Platform by the digital publishing industry to help realize the full potential of open-standards-based interoperability. More specifically, the aim is to raise the bar for ePub 3 support across the industry so that ePub maintains its position as the standard distribution format for e-books and expands its reach to include other types of digital publications. In its first year, the Readium consortium added 15 organizations to its membership, including Adobe, Google, IBM, Ingram, KERIS (S. Korea Education Ministry), and the New York Public Library. The membership now boasts publishers, retailers, distributors and technology companies from around the world, including organizations based in France, Germany, Norway, U.S., Canada, China, Korea, and Japan. In addition, in February 2014 the first Readium.org board was elected by the membership and the first three projects being developed by members and other contributors are all nearing "1.0" status. The first project, Readium SDK, is a rendering "engine" enabling native apps to support ePub 3. Readium SDK is available on four platforms-Android, iOS, OS/X, and Windows- and the first product incorporating Readium SDK (by ACCESS Japan) was announced last October. Readium SDK is designed to be DRM-agnostic, and vendors Adobe and Sony have publicized plans to integrate their respective DRM solutions with Readium SDK. A second effort, Readium JS, is a pure JavaScript ePub 3 implementation, with configurations now available for cloud based deployment of ePub files, as well as Readium for Chrome, the successor to the original Readium Chrome extension developed by IDPF as the
  • Gary Edwards on 05 Apr 14
     
    excerpt/intro: Last month marked the one-year anniversary of the formation of the Readium Foundation (Readium.org), an independent nonprofit launched in March 2013 with the objective of developing commercial-grade open source publishing technology software. The overall goal of Readium.org is to accelerate adoption of ePub 3, HTML5, and the Open Web Platform by the digital publishing industry to help realize the full potential of open-standards-based interoperability. More specifically, the aim is to raise the bar for ePub 3 support across the industry so that ePub maintains its position as the standard distribution format for e-books and expands its reach to include other types of digital publications. In its first year, the Readium consortium added 15 organizations to its membership, including Adobe, Google, IBM, Ingram, KERIS (S. Korea Education Ministry), and the New York Public Library. The membership now boasts publishers, retailers, distributors and technology companies from around the world, including organizations based in France, Germany, Norway, U.S., Canada, China, Korea, and Japan. In addition, in February 2014 the first Readium.org board was elected by the membership and the first three projects being developed by members and other contributors are all nearing "1.0" status. The first project, Readium SDK, is a rendering "engine" enabling native apps to support ePub 3. Readium SDK is available on four platforms-Android, iOS, OS/X, and Windows- and the first product incorporating Readium SDK (by ACCESS Japan) was announced last October. Readium SDK is designed to be DRM-agnostic, and vendors Adobe and Sony have publicized plans to integrate their respective DRM solutions with Readium SDK. A second effort, Readium JS, is a pure JavaScript ePub 3 implementation, with configurations now available for cloud based deployment of ePub files, as well as Readium for Chrome, the successor to the original Readium Chrome extension developed by IDPF as the
Paul Merrell

NSA Director Finally Admits Encryption Is Needed to Protect Public's Privacy - 0 views

www.mintpressnews.com/...213028

surveillance state encryption NSA Comey

shared by Paul Merrell on 25 Jan 16 - No Cached
  • NSA Director Finally Admits Encryption Is Needed to Protect Public’s Privacy The new stance denotes a growing awareness within the government that Americans are not comfortable with the State’s grip on their data. By Carey Wedler | AntiMedia | January 22, 2016 Share this article! https://mail.google.com/mail/?view=cm&fs=1&to&su=NSA%20Director%20Finally%20Admits%20Encryption%20Is%20Needed%20to%20Protect%20Public%E2%80%99s%20Privacy&body=http%3A%2F%2Fwww.mintpress
  • Rogers cited the recent Office of Personnel Management hack of over 20 million users as a reason to increase encryption rather than scale it back. “What you saw at OPM, you’re going to see a whole lot more of,” he said, referring to the massive hack that compromised the personal data about 20 million people who obtained background checks. Rogers’ comments, while forward-thinking, signify an about face in his stance on encryption. In February 2015, he said he “shares [FBI] Director [James] Comey’s concern” about cell phone companies’ decision to add encryption features to their products. Comey has been one loudest critics of encryption. However, Rogers’ comments on Thursday now directly conflict with Comey’s stated position. The FBI director has publicly chastised encryption, as well as the companies that provide it. In 2014, he claimed Apple’s then-new encryption feature could lead the world to “a very dark place.” At a Department of Justice hearing in November, Comey testified that “Increasingly, the shadow that is ‘going dark’ is falling across more and more of our work.” Though he claimed, “We support encryption,” he insisted “we have a problem that encryption is crashing into public safety and we have to figure out, as people who care about both, to resolve it. So, I think the conversation’s in a healthier place.”
  • At the same hearing, Comey and Attorney General Loretta Lynch declined to comment on whether they had proof the Paris attackers used encryption. Even so, Comey recently lobbied for tech companies to do away with end-to-end encryption. However, his crusade has fallen on unsympathetic ears, both from the private companies he seeks to control — and from the NSA. Prior to Rogers’ statements in support of encryption Thursday, former NSA chief Michael Hayden said, “I disagree with Jim Comey. I actually think end-to-end encryption is good for America.” Still another former NSA chair has criticized calls for backdoor access to information. In October, Mike McConnell told a panel at an encryption summit that the United States is “better served by stronger encryption, rather than baking in weaker encryption.” Former Department of Homeland Security chief, Michael Chertoff, has also spoken out against government being able to bypass encryption.
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  • Regardless of these individual defenses of encryption, the Intercept explained why these statements may be irrelevant: “Left unsaid is the fact that the FBI and NSA have the ability to circumvent encryption and get to the content too — by hacking. Hacking allows law enforcement to plant malicious code on someone’s computer in order to gain access to the photos, messages, and text before they were ever encrypted in the first place, and after they’ve been decrypted. The NSA has an entire team of advanced hackers, possibly as many as 600, camped out at Fort Meade.”
  • Rogers statements, of course, are not a full-fledged endorsement of privacy, nor can the NSA be expected to make it a priority. Even so, his new stance denotes a growing awareness within the government that Americans are not comfortable with the State’s grip on their data. “So spending time arguing about ‘hey, encryption is bad and we ought to do away with it’ … that’s a waste of time to me,” Rogers said Thursday. “So what we’ve got to ask ourselves is, with that foundation, what’s the best way for us to deal with it? And how do we meet those very legitimate concerns from multiple perspectives?”
Gary Edwards

Huddle: Consumer cloud services causing 'security time-bomb' for enterprises | ZDNet - 0 views

www.zdnet.com/omb-for-enterprises-7000016132

huddle wordSDK Office-365

shared by Gary Edwards on 04 Sep 14 - No Cached
  • Gary Edwards on 04 Sep 14
     
    "AN FRANCISCO -- As more employees continue to access consumer cloud accounts at work (regardless of IT rules), the enterprise world is about to reach a breaking point, based on a new report. Quite simply, U.K. cloud collaboration company Huddle described the trend as a "security time-bomb." At least 38 percent of U.S. office workers are said to have admitted to storing work documents on personal cloud tools and services, while a whopping 91 percent of workers added they use personal devices (i.e. USB drives) to store and share sensitive company documents. Huddle argued that this means enterprise and government organizations are at severe risk of losing both data intellectual property forever as this fragmentation continues. The London-headquartered company published its first State of the Enterprise assessment report amid the official opening of its San Francisco offices on Thursday morning as Huddle branches out to attract a U.S. customer base. "Legacy technologies create barriers to how we want to work," said Mitchell. Huddle produces a team-based collaboration platform designed for large teams within enterprises storing content securely and individually. The idea behind Huddle is to replace personal USB drives and "dumb file storage" platforms with open-security models and folder-based content. As the cloud-based storage and collaboration market grows, it looks like Huddle will be aiming to take on the likes of Box, Google Drive, Microsoft SkyDrive, and Dropbox, among others. Huddle is framing itself as different in that it constructs a single network for working and collaborating beyond a firewall, removing VPN complexities with single, company-wide login. Huddle CEO Alastair Mitchell described during an inaugural media presentation that its customers are replacing legacy technologies, calling out SharePoint and Outlook in particular as users move content collaboration out of email. "Legacy technologies create barriers to how we want to work," sai
Paul Merrell

Security Experts Oppose Government Access to Encrypted Communication - The New York Times - 0 views

www.nytimes.com/...o-encrypted-communication.html

encryption government-backdoors expert-report

shared by Paul Merrell on 08 Jul 15 - No Cached
  • An elite group of security technologists has concluded that the American and British governments cannot demand special access to encrypted communications without putting the world’s most confidential data and critical infrastructure in danger.A new paper from the group, made up of 14 of the world’s pre-eminent cryptographers and computer scientists, is a formidable salvo in a skirmish between intelligence and law enforcement leaders, and technologists and privacy advocates. After Edward J. Snowden’s revelations — with security breaches and awareness of nation-state surveillance at a record high and data moving online at breakneck speeds — encryption has emerged as a major issue in the debate over privacy rights.
  • That has put Silicon Valley at the center of a tug of war. Technology companies including Apple, Microsoft and Google have been moving to encrypt more of their corporate and customer data after learning that the National Security Agency and its counterparts were siphoning off digital communications and hacking into corporate data centers.
  • Yet law enforcement and intelligence agency leaders argue that such efforts thwart their ability to monitor kidnappers, terrorists and other adversaries. In Britain, Prime Minister David Cameron threatened to ban encrypted messages altogether. In the United States, Michael S. Rogers, the director of the N.S.A., proposed that technology companies be required to create a digital key to unlock encrypted data, but to divide the key into pieces and secure it so that no one person or government agency could use it alone.The encryption debate has left both sides bitterly divided and in fighting mode. The group of cryptographers deliberately issued its report a day before James B. Comey Jr., the director of the Federal Bureau of Investigation, and Sally Quillian Yates, the deputy attorney general at the Justice Department, are scheduled to testify before the Senate Judiciary Committee on the concerns that they and other government agencies have that encryption technologies will prevent them from effectively doing their jobs.
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  • The new paper is the first in-depth technical analysis of government proposals by leading cryptographers and security thinkers, including Whitfield Diffie, a pioneer of public key cryptography, and Ronald L. Rivest, the “R” in the widely used RSA public cryptography algorithm. In the report, the group said any effort to give the government “exceptional access” to encrypted communications was technically unfeasible and would leave confidential data and critical infrastructure like banks and the power grid at risk. Handing governments a key to encrypted communications would also require an extraordinary degree of trust. With government agency breaches now the norm — most recently at the United States Office of Personnel Management, the State Department and the White House — the security specialists said authorities could not be trusted to keep such keys safe from hackers and criminals. They added that if the United States and Britain mandated backdoor keys to communications, China and other governments in foreign markets would be spurred to do the same.
  • “Such access will open doors through which criminals and malicious nation-states can attack the very individuals law enforcement seeks to defend,” the report said. “The costs would be substantial, the damage to innovation severe and the consequences to economic growth hard to predict. The costs to the developed countries’ soft power and to our moral authority would also be considerable.”
  • Paul Merrell on 08 Jul 15
     
    Our system of government does not expect that every criminal will be apprehended and convicted. There are numerous values our society believes are more important. Some examples: [i] a presumption of innocence unless guilt is established beyond any reasonable doubt; [ii] the requirement that government officials convince a neutral magistrate that they have probable cause to believe that a search or seizure will produce evidence of a crime; [iii] many communications cannot be compelled to be disclosed and used in evidence, such as attorney-client communications, spousal communications, and priest-penitent communications; and [iv] etc. Moral of my story: the government needs a much stronger reason to justify interception of communications than saying, "some crooks will escape prosecution if we can't do that." We have a right to whisper to each other, concealing our communicatons from all others. Why does the right to whisper privately disappear if our whisperings are done electronically? The Supreme Court took its first step on a very slippery slope when it permitted wiretapping in Olmstead v. United States, 277 U.S. 438, 48 S. Ct. 564, 72 L. Ed. 944 (1928). https://goo.gl/LaZGHt It's been a long slide ever since. It's past time to revisit Olmstead and recognize that American citizens have the absolute right to communicate privately. "The President … recognizes that U.S. citizens and institutions should have a reasonable expectation of privacy from foreign or domestic intercept when using the public telephone system." - Brent Scowcroft, U.S. National Security Advisor, National Security Decision Memorandum 338 (1 September 1976) (Nixon administration), http://www.fas.org/irp/offdocs/nsdm-ford/nsdm-338.pdf   
Paul Merrell

CISA Security Bill: An F for Security But an A+ for Spying | WIRED - 0 views

www.wired.com/...ty-bill-gets-f-security-spying

surveillance state legislation CISA

shared by Paul Merrell on 23 Mar 15 - No Cached
  • When the Senate Intelligence Committee passed the Cybersecurity Information Sharing Act by a vote of 14 to 1, committee chairman Senator Richard Burr argued that it successfully balanced security and privacy. Fifteen new amendments to the bill, he said, were designed to protect internet users’ personal information while enabling new ways for companies and federal agencies to coordinate responses to cyberattacks. But critics within the security and privacy communities still have two fundamental problems with the legislation: First, they say, the proposed cybersecurity act won’t actually boost security. And second, the “information sharing” it describes sounds more than ever like a backchannel for surveillance.
  • On Tuesday the bill’s authors released the full, updated text of the CISA legislation passed last week, and critics say the changes have done little to assuage their fears about wanton sharing of Americans’ private data. In fact, legal analysts say the changes actually widen the backdoor leading from private firms to intelligence agencies. “It’s a complete failure to strengthen the privacy protections of the bill,” says Robyn Greene, a policy lawyer for the Open Technology Institute, which joined a coalition of dozens of non-profits and cybersecurity experts criticizing the bill in an open letter earlier this month. “None of the [privacy-related] points we raised in our coalition letter to the committee was effectively addressed.” The central concern of that letter was how the same data sharing meant to bolster cybersecurity for companies and the government opens massive surveillance loopholes. The bill, as worded, lets a private company share with the Department of Homeland Security any information construed as a cybersecurity threat “notwithstanding any other provision of law.” That means CISA trumps privacy laws like the Electronic Communication Privacy Act of 1986 and the Privacy Act of 1974, which restrict eavesdropping and sharing of users’ communications. And once the DHS obtains the information, it would automatically be shared with the NSA, the Department of Defense (including Cyber Command), and the Office of the Director of National Intelligence.
  • In a statement posted to his website yesterday, Senator Burr wrote that “Information sharing is purely voluntary and companies can only share cyber-threat information and the government may only use shared data for cybersecurity purposes.” But in fact, the bill’s data sharing isn’t limited to cybersecurity “threat indicators”—warnings of incoming hacker attacks, which is the central data CISA is meant to disseminate among companies and three-letter agencies. OTI’s Greene says it also gives companies a mandate to share with the government any data related to imminent terrorist attacks, weapons of mass destruction, or even other information related to violent crimes like robbery and carjacking. 
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  • The latest update to the bill tacks on yet another kind of information, anything related to impending “serious economic harm.” All of those vague terms, Greene argues, widen the pipe of data that companies can send the government, expanding CISA into a surveillance system for the intelligence community and domestic law enforcement. If information-sharing legislation does not include adequate privacy protections, then...It’s a surveillance bill by another name. Senator Ron Wyden
  • “CISA goes far beyond [cybersecurity], and permits law enforcement to use information it receives for investigations and prosecutions of a wide range of crimes involving any level of physical force,” reads the letter from the coalition opposing CISA. “The lack of use limitations creates yet another loophole for law enforcement to conduct backdoor searches on Americans—including searches of digital communications that would otherwise require law enforcement to obtain a warrant based on probable cause. This undermines Fourth Amendment protections and constitutional principles.”
  • Paul Merrell on 23 Mar 15
     
    I read the legislation. It's as bad for privacy as described in the aritcle. And its drafting is incredibly sloppy.
Paul Merrell

The Digital Hunt for Duqu, a Dangerous and Cunning U.S.-Israeli Spy Virus - The Intercept - 1 views

firstlook.org/...stuxnet

surveillance state cyberwar Stuxnet

shared by Paul Merrell on 14 Nov 14 - No Cached
  • “Is this related to what we talked about before?” Bencsáth said, referring to a previous discussion they’d had about testing new services the company planned to offer customers. “No, something else,” Bartos said. “Can you come now? It’s important. But don’t tell anyone where you’re going.” Bencsáth wolfed down the rest of his lunch and told his colleagues in the lab that he had a “red alert” and had to go. “Don’t ask,” he said as he ran out the door. A while later, he was at Bartos’ office, where a triage team had been assembled to address the problem they wanted to discuss. “We think we’ve been hacked,” Bartos said.
  • They found a suspicious file on a developer’s machine that had been created late at night when no one was working. The file was encrypted and compressed so they had no idea what was inside, but they suspected it was data the attackers had copied from the machine and planned to retrieve later. A search of the company’s network found a few more machines that had been infected as well. The triage team felt confident they had contained the attack but wanted Bencsáth’s help determining how the intruders had broken in and what they were after. The company had all the right protections in place—firewalls, antivirus, intrusion-detection and -prevention systems—and still the attackers got in.
  • Bencsáth was a teacher, not a malware hunter, and had never done such forensic work before. At the CrySyS Lab, where he was one of four advisers working with a handful of grad students, he did academic research for the European Union and occasional hands-on consulting work for other clients, but the latter was mostly run-of-the-mill cleanup work—mopping up and restoring systems after random virus infections. He’d never investigated a targeted hack before, let alone one that was still live, and was thrilled to have the chance. The only catch was, he couldn’t tell anyone what he was doing. Bartos’ company depended on the trust of customers, and if word got out that the company had been hacked, they could lose clients. The triage team had taken mirror images of the infected hard drives, so they and Bencsáth spent the rest of the afternoon poring over the copies in search of anything suspicious. By the end of the day, they’d found what they were looking for—an “infostealer” string of code that was designed to record passwords and other keystrokes on infected machines, as well as steal documents and take screenshots. It also catalogued any devices or systems that were connected to the machines so the attackers could build a blueprint of the company’s network architecture. The malware didn’t immediately siphon the stolen data from infected machines but instead stored it in a temporary file, like the one the triage team had found. The file grew fatter each time the infostealer sucked up data, until at some point the attackers would reach out to the machine to retrieve it from a server in India that served as a command-and-control node for the malware.
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  • Bencsáth took the mirror images and the company’s system logs with him, after they had been scrubbed of any sensitive customer data, and over the next few days scoured them for more malicious files, all the while being coy to his colleagues back at the lab about what he was doing. The triage team worked in parallel, and after several more days they had uncovered three additional suspicious files. When Bencsáth examined one of them—a kernel-mode driver, a program that helps the computer communicate with devices such as printers—his heart quickened. It was signed with a valid digital certificate from a company in Taiwan (digital certificates are documents ensuring that a piece of software is legitimate). Wait a minute, he thought. Stuxnet—the cyberweapon that was unleashed on Iran’s uranium-enrichment program—also used a driver that was signed with a certificate from a company in Taiwan. That one came from RealTek Semiconductor, but this certificate belonged to a different company, C-Media Electronics. The driver had been signed with the certificate in August 2009, around the same time Stuxnet had been unleashed on machines in Iran.
Paul Merrell

Microsoft to host data in Germany to evade US spying | Naked Security - 0 views

nakedsecurity.sophos.com/...-in-germany-to-evade-us-spying

surveillance state NSA FBI EU data-centers privacy

shared by Paul Merrell on 14 Nov 15 - No Cached
  • Microsoft's new plan to keep the US government's hands off its customers' data: Germany will be a safe harbor in the digital privacy storm. Microsoft on Wednesday announced that beginning in the second half of 2016, it will give foreign customers the option of keeping data in new European facilities that, at least in theory, should shield customers from US government surveillance. It will cost more, according to the Financial Times, though pricing details weren't forthcoming. Microsoft Cloud - including Azure, Office 365 and Dynamics CRM Online - will be hosted from new datacenters in the German regions of Magdeburg and Frankfurt am Main. Access to data will be controlled by what the company called a German data trustee: T-Systems, a subsidiary of the independent German company Deutsche Telekom. Without the permission of Deutsche Telekom or customers, Microsoft won't be able to get its hands on the data. If it does get permission, the trustee will still control and oversee Microsoft's access.
  • Microsoft CEO Satya Nadella dropped the word "trust" into the company's statement: Microsoft’s mission is to empower every person and every individual on the planet to achieve more. Our new datacenter regions in Germany, operated in partnership with Deutsche Telekom, will not only spur local innovation and growth, but offer customers choice and trust in how their data is handled and where it is stored.
  • On Tuesday, at the Future Decoded conference in London, Nadella also announced that Microsoft would, for the first time, be opening two UK datacenters next year. The company's also expanding its existing operations in Ireland and the Netherlands. Officially, none of this has anything to do with the long-drawn-out squabbling over the transatlantic Safe Harbor agreement, which the EU's highest court struck down last month, calling the agreement "invalid" because it didn't protect data from US surveillance. No, Nadella said, the new datacenters and expansions are all about giving local businesses and organizations "transformative technology they need to seize new global growth." But as Diginomica reports, Microsoft EVP of Cloud and Enterprise Scott Guthrie followed up his boss’s comments by saying that yes, the driver behind the new datacenters is to let customers keep data close: We can guarantee customers that their data will always stay in the UK. Being able to very concretely tell that story is something that I think will accelerate cloud adoption further in the UK.
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  • Microsoft and T-Systems' lawyers may well think that storing customer data in a German trustee data center will protect it from the reach of US law, but for all we know, that could be wishful thinking. Forrester cloud computing analyst Paul Miller: To be sure, we must wait for the first legal challenge. And the appeal. And the counter-appeal. As with all new legal approaches, we don’t know it is watertight until it is challenged in court. Microsoft and T-Systems’ lawyers are very good and say it's watertight. But we can be sure opposition lawyers will look for all the holes. By keeping data offshore - particularly in Germany, which has strong data privacy laws - Microsoft could avoid the situation it's now facing with the US demanding access to customer emails stored on a Microsoft server in Dublin. The US has argued that Microsoft, as a US company, comes under US jurisdiction, regardless of where it keeps its data.
  • Running away to Germany isn't a groundbreaking move; other US cloud services providers have already pledged expansion of their EU presences, including Amazon's plan to open a UK datacenter in late 2016 that will offer what CTO Werner Vogels calls "strong data sovereignty to local users." Other big data operators that have followed suit: Salesforce, which has already opened datacenters in the UK and Germany and plans to open one in France next year, as well as new EU operations pledged for the new year by NetSuite and Box. Can Germany keep the US out of its datacenters? Can Ireland? Time, and court cases, will tell.
  • Paul Merrell on 14 Nov 15
     
    The European Community's Court of Justice decision in the Safe Harbor case --- and Edward Snowden --- are now officially downgrading the U.S. as a cloud data center location. NSA is good business for Europeans looking to displace American cloud service providers, as evidenced by Microsoft's decision. The legal test is whether Microsoft has "possession, custody, or control" of the data. From the info given in the article, it seems that Microsoft has done its best to dodge that bullet by moving data centers to Germany and placing their data under the control of a European company. Do ownership of the hardware and profits from their rent mean that Microsoft still has "possession, custody, or control" of the data? The fine print of the agreement with Deutsche Telekom and the customer EULAs will get a thorough going over by the Dept. of Justice for evidence of Microsoft "control" of the data. That will be the crucial legal issue. The data centers in Germany may pass the test. But the notion that data centers in the UK can offer privacy is laughable; the UK's legal authority for GCHQ makes it even easier to get the data than the NSA can in the U.S.  It doesn't even require a court order. 
Gary Edwards

Developing a Universal Markup Solution For Web Content - 0 views

www.cmswire.com/...ion-for-web-content-004290.php

kodaxil xml interop gnoesis

shared by Gary Edwards on 09 Apr 09 - Cached
  • Gary Edwards on 09 Apr 09
     
    KODAXIL To Replace XML?

    File this one under the Universal Interoperability label. Very interesting. Especially since XML document formats have proven to fall short on the two primary expectations of users: interoperability and Web ready. Like HTML+ :) Maybe KODAXIL will work?

    The recent Web 2.0 Conference was filled with new web services , portals and wiki efforts trying their best to mash data into document objects. iCloud, MindTouch, AppLogic, 3Tera, Caspio and Gazoodle all deserve attention. although each took a rather different approach towards solving the problem. MindTouch in particular was excellent.

    "A Montreal-based software and research development company has developed a markup solution and language-neutral asset-descriptor that when fully developed, could result in a universal computer language for representing information in databases, web and document contents and business objects."

    "While still at a seminal stage of development, the company Gnoesis, aims to address the problem of data fragmentation caused by semantic differences between developers and users from different linguistic backgrounds."

    Gnoesis, the company that has developed the language called KODAXIL (Knowledge, Object, Data, Action, and eXtensible Interoperable Language), a data and information representation language, says the new language will replace the XML function of consolidating semantically identical data streams from different languages, by creating a common language to do this.

    The extensible semantic markup associated with this language will be understood worldwide and is three times shorter than XML.
Paul Merrell

BitTorrent Sync creates private, peer-to-peer Dropbox, no cloud required | Ars Technica - 6 views

arstechnica.com/...peer-dropbox-no-cloud-required

bittorrent p2p file-sync

shared by Paul Merrell on 28 Apr 13 - No Cached
  • BitTorrent today released folder syncing software that replicates files across multiple computers using the same peer-to-peer file sharing technology that powers BitTorrent clients. The free BitTorrent Sync application is labeled as being in the alpha stage, so it's not necessarily ready for prime-time, but it is publicly available for download and working as advertised on my home network. BitTorrent, Inc. (yes, there is a legitimate company behind BitTorrent) took to its blog to announce the move from a pre-alpha, private program to the publicly available alpha. Additions since the private alpha include one-way synchronization, one-time secrets for sharing files with a friend or colleague, and the ability to exclude specific files and directories.
  • BitTorrent Sync provides "unlimited, secure file-syncing," the company said. "You can use it for remote backup. Or, you can use it to transfer large folders of personal media between users and machines; editors and collaborators. It’s simple. It’s free. It’s the awesome power of P2P, applied to file-syncing." File transfers are encrypted, with private information never being stored on an external server or in the "cloud." "Since Sync is based on P2P and doesn’t require a pit-stop in the cloud, you can transfer files at the maximum speed supported by your network," BitTorrent said. "BitTorrent Sync is specifically designed to handle large files, so you can sync original, high quality, uncompressed files."
  • Paul Merrell on 28 Apr 13
     
    Direct P2P encrypted file syncing, no cloud intermediate, which should translate to far more secure exchange of files, with less opportunity for snooping by governments or others, than with cloud-based services. 
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  • Gary Edwards on 19 Jun 13
     
    Hey Paul, is there an open source document management system that I could hook the BitTorrent Sync to?
  • Paul Merrell on 19 Jun 13
     
    More detail please. What do you want to do with the doc management system? Platform? Server-side or stand-alone? Industrial strength and highly configurable or lightweight and simple? What do you mean by "hook?" Not that I would be able to answer anyway. I really know very little about BitTorrent Sync. In fact, as far as I'd gone before your question was to look at the FAQ. It's linked from . But there's a link to a forum on the same page. Giving the first page a quick scan confirms that this really is alpha-state software. But that would probably be a better place to ask. (Just give them more specific information of what you'd like to do.) There are other projects out there working on getting around the surveillance problem. I2P is one that is a farther along than BitTorrent Sync and quite a bit more flexible. See . (But I haven't used it, so caveat emptor.)
  • Gary Edwards on 19 Jun 13
     
    There is a great list of PRISM Proof software at http://prism-break.org/. Includes a link to I2P. I want to replace gmail though, but would like another Web based system since I need multi device access. Of course, I need to replace my Google Apps / Google Docs system. That's why I asked about a PRISM Proof sync-share-store DMS. My guess is that there are many users similarly seeking a PRISM Proof platform of communications, content and collaborative computing systems. BusinessIndiser.com is crushed with articles about Google struggling to squirm out from under the NSA PRISM boot-on-the-back-of-their-neck situation. As if blaming the NSA makes up for the dragnet that they consented/allowed/conceded to cover their entire platform. Perhaps we should be watching Germany? There must be tons of startup operations underway, all seeking to replace Google, Amazon, FaceBook, Microsoft, Skype and so many others. It's a great day for Libertyware :)
  • Gary Edwards on 19 Jun 13
     
    Is the NSA involvement the "Kiss of Death"? Google seems to think so. I'm wondering what the impact would be if ZOHO were to announce a PRISM Proof productivity platform?
  • Paul Merrell on 19 Jun 13
     
    It is indeed. The E.U. has far more protective digital privacy rights than we do (none). If you're looking for a Dropbox replacement (you should be), for a cloud-based solution take a look at . Unlike Dropbox, all of the encryption/decryption happens on your local machine; Wuala never sees your files unencrypted. Dropbox folks have admitted that there's no technical barrier to them looking at your files. Their encrypt/decrypt operations are done in the cloud (if they actually bother) and they have the key. Which makes it more chilling that the PRISM docs Snowden link make reference to Dropbox being the next cloud service NSA plans to add to their collection. Wuala also is located (as are its servers) in Switzerland, which also has far stronger digital data privacy laws than the U.S. Plus the Swiss are well along the path to E.U. membership; they've ratified many of the E.U. treaties including the treaty on Human Rights, which as I recall is where the digital privacy sections are. I've begun to migrate from Dropbox to Wuala. It seems to be neck and neck with Dropbox on features and supported platforms, with the advantage of a far more secure approach and 5 GB free. But I'd also love to see more approaches akin to IP2 and Bittorrent Sync that provide the means to bypass the cloud. Don't depend on government to ensure digital privacy, route around the government voyeurs. Hmmm ... I wonder if the NSA has the computer capacity to handle millions of people switching to encrypted communication? :-) Thanks for the link to the software list.
  • Paul Merrell on 19 Jun 13
     
    Re: Google. I don't know if it's the 'kiss of death" but they're definitely going to take a hit, particularly outside the U.S. BTW, I'm remembering from a few years back when the ODF Foundation was still kicking. I did a fair bit of research on the bureaucratic forces in the E.U. that were pushing for the Open Document Exchange Formats. That grew out of a then-ongoing push to get all of the E.U. nations connected via a network that is not dependent on the Internet. It was fairly complete at the time down to the national level and was branching out to the local level and the plan from there was to push connections to business and then to Joe Sixpack and wife. Interop was key, hence ODEF. The E.U. might not be that far away from an ability to sever the digital connections with the U.S. Say a bunch of daisy-chained proxy anonymizers for communications with the U.S. Of course they'd have to block the UK from the network and treat it like it is the U.S. There's a formal signals intelligence service collaboration/integration dating back to WW 2, as I recall, among the U.S., the U.K., Canada, Australia, and New Zealand. Don't remember its name. But it's the same group of nations that were collaborating on Echelon. So the E.U. wouldn't want to let the UK fox inside their new chicken coop. Ah, it's just a fantasy. The U.S. and the E.U. are too interdependent. I have no idea hard it would be for the Zoho folk to come up with desktop/side encryption/decryption. And I don't know whether their servers are located outside the reach of a U.S. court's search warrant. But I think Google is going to have to move in that direction fast if it wants to minimize the damage. Or get way out in front of the hounds chomping at the NSA's ankles and reduce the NSA to compost. OTOH, Google might be a government covert op. for all I know. :-) I'm really enjoying watching the NSA show. Who knows what facet of their Big Brother operation gets revealed next?
  • Gary Edwards on 20 Jun 13
     
    ZOHO is an Indian company with USA marketing offices. No idea where the server farm is located, but they were not on the NSA list. I've known Raju Vegesna for years, mostly from the old Web 2.0 and Office 2.0 Conferences. Raju runs the USA offices in Santa Clara. I'll try to catch up with him on Thursday. How he could miss this once in a lifetime moment to clean out Google, Microsoft and SalesForce.com is something I'd like to find out about. Thanks for the Wuala tip. You sent me that years ago, when i was working on research and design for the SurDocs project. Incredible that all our notes, research, designs and correspondence was left to rot in Google Wave! Too too funny. I recall telling Alex from SurDocs that he had to use a USA host, like Amazon, that could be trusted by USA customers to keep their docs safe and secure. Now look what i've done! I've tossed his entire company information set into the laps of the NSA and their cabal of connected corporatists :)
Paul Merrell

Leaked docs show spyware used to snoop on US computers | Ars Technica - 0 views

arstechnica.com/...-used-to-snoop-on-us-computers

surveillance state Gamma-Group FinFisher zero-day-exploits Vupen-Security MSOffice MSIE Acrobat

shared by Paul Merrell on 10 Aug 14 - No Cached
  • Software created by the controversial UK-based Gamma Group International was used to spy on computers that appear to be located in the United States, the UK, Germany, Russia, Iran, and Bahrain, according to a leaked trove of documents analyzed by ProPublica. It's not clear whether the surveillance was conducted by governments or private entities. Customer e-mail addresses in the collection appeared to belong to a German surveillance company, an independent consultant in Dubai, the Bosnian and Hungarian Intelligence services, a Dutch law enforcement officer, and the Qatari government.
  • The leaked files—which were posted online by hackers—are the latest in a series of revelations about how state actors including repressive regimes have used Gamma's software to spy on dissidents, journalists, and activist groups. The documents, leaked last Saturday, could not be readily verified, but experts told ProPublica they believed them to be genuine. "I think it's highly unlikely that it's a fake," said Morgan Marquis-Bore, a security researcher who while at The Citizen Lab at the University of Toronto had analyzed Gamma Group's software and who authored an article about the leak on Thursday. The documents confirm many details that have already been reported about Gamma, such as that its tools were used to spy on Bahraini activists. Some documents in the trove contain metadata tied to e-mail addresses of several Gamma employees. Bill Marczak, another Gamma Group expert at the Citizen Lab, said that several dates in the documents correspond to publicly known events—such as the day that a particular Bahraini activist was hacked.
  • The leaked files contain more than 40 gigabytes of confidential technical material, including software code, internal memos, strategy reports, and user guides on how to use Gamma Group software suite called FinFisher. FinFisher enables customers to monitor secure Web traffic, Skype calls, webcams, and personal files. It is installed as malware on targets' computers and cell phones. A price list included in the trove lists a license of the software at almost $4 million. The documents reveal that Gamma uses technology from a French company called Vupen Security that sells so-called computer "exploits." Exploits include techniques called "zero days" for "popular software like Microsoft Office, Internet Explorer, Adobe Acrobat Reader, and many more." Zero days are exploits that have not yet been detected by the software maker and therefore are not blocked.
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  • Many of Gamma's product brochures have previously been published by the Wall Street Journal and Wikileaks, but the latest trove shows how the products are getting more sophisticated. In one document, engineers at Gamma tested a product called FinSpy, which inserts malware onto a user's machine, and found that it could not be blocked by most antivirus software. Documents also reveal that Gamma had been working to bypass encryption tools including a mobile phone encryption app, Silent Circle, and were able to bypass the protection given by hard-drive encryption products TrueCrypt and Microsoft's Bitlocker.
  • The documents also describe a "country-wide" surveillance product called FinFly ISP which promises customers the ability to intercept Internet traffic and masquerade as ordinary websites in order to install malware on a target's computer. The most recent date-stamp found in the documents is August 2, coincidung with the first tweet by a parody Twitter account, @GammaGroupPR, which first announced the hack and may be run by the hacker or hackers responsible for the leak. On Reddit, a user called PhineasFisher claimed responsibility for the leak. "Two years ago their software was found being widely used by governments in the middle east, especially Bahrain, to hack and spy on the computers and phones of journalists and dissidents," the user wrote. The name on the @GammaGroupPR Twitter account is also "Phineas Fisher." GammaGroup, the surveillance company whose documents were released, is no stranger to the spotlight. The security firm F-Secure first reported the purchase of FinFisher software by the Egyptian State Security agency in 2011. In 2012, Bloomberg News and The Citizen Lab showed how the company's malware was used to target activists in Bahrain. In 2013, the software company Mozilla sent a cease-and-desist letter to the company after a report by The Citizen Lab showed that a spyware-infected version of the Firefox browser manufactured by Gamma was being used to spy on Malaysian activists.
Paul Merrell

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

firstlook.org/...ders-national-security-letters

surveillance state FBI NSLs litigation 1st Amendment civil-liberties

shared by Paul Merrell on 24 Feb 15 - No Cached
  • 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.
  • ...6 more annotations...
  • 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

Operation Socialist: How GCHQ Spies Hacked Belgium's Largest Telco - 0 views

firstlook.org/...elgacom-hack-gchq-inside-story

surveillance state GCHQ NSA Regin-malware Belgacom

shared by Paul Merrell on 15 Dec 14 - No Cached
  • When the incoming emails stopped arriving, it seemed innocuous at first. But it would eventually become clear that this was no routine technical problem. Inside a row of gray office buildings in Brussels, a major hacking attack was in progress. And the perpetrators were British government spies. It was in the summer of 2012 that the anomalies were initially detected by employees at Belgium’s largest telecommunications provider, Belgacom. But it wasn’t until a year later, in June 2013, that the company’s security experts were able to figure out what was going on. The computer systems of Belgacom had been infected with a highly sophisticated malware, and it was disguising itself as legitimate Microsoft software while quietly stealing data. Last year, documents from National Security Agency whistleblower Edward Snowden confirmed that British surveillance agency Government Communications Headquarters was behind the attack, codenamed Operation Socialist. And in November, The Intercept revealed that the malware found on Belgacom’s systems was one of the most advanced spy tools ever identified by security researchers, who named it “Regin.”
  • The full story about GCHQ’s infiltration of Belgacom, however, has never been told. Key details about the attack have remained shrouded in mystery—and the scope of the attack unclear. Now, in partnership with Dutch and Belgian newspapers NRC Handelsblad and De Standaard, The Intercept has pieced together the first full reconstruction of events that took place before, during, and after the secret GCHQ hacking operation. Based on new documents from the Snowden archive and interviews with sources familiar with the malware investigation at Belgacom, The Intercept and its partners have established that the attack on Belgacom was more aggressive and far-reaching than previously thought. It occurred in stages between 2010 and 2011, each time penetrating deeper into Belgacom’s systems, eventually compromising the very core of the company’s networks.
  • Snowden told The Intercept that the latest revelations amounted to unprecedented “smoking-gun attribution for a governmental cyber attack against critical infrastructure.” The Belgacom hack, he said, is the “first documented example to show one EU member state mounting a cyber attack on another…a breathtaking example of the scale of the state-sponsored hacking problem.”
  • ...7 more annotations...
  • When the incoming emails stopped arriving, it seemed innocuous at first. But it would eventually become clear that this was no routine technical problem. Inside a row of gray office buildings in Brussels, a major hacking attack was in progress. And the perpetrators were British government spies. It was in the summer of 2012 that the anomalies were initially detected by employees at Belgium’s largest telecommunications provider, Belgacom. But it wasn’t until a year later, in June 2013, that the company’s security experts were able to figure out what was going on. The computer systems of Belgacom had been infected with a highly sophisticated malware, and it was disguising itself as legitimate Microsoft software while quietly stealing data. Last year, documents from National Security Agency whistleblower Edward Snowden confirmed that British surveillance agency Government Communications Headquarters was behind the attack, codenamed Operation Socialist. And in November, The Intercept revealed that the malware found on Belgacom’s systems was one of the most advanced spy tools ever identified by security researchers, who named it “Regin.”
  • Publicly, Belgacom has played down the extent of the compromise, insisting that only its internal systems were breached and that customers’ data was never found to have been at risk. But secret GCHQ documents show the agency gained access far beyond Belgacom’s internal employee computers and was able to grab encrypted and unencrypted streams of private communications handled by the company. Belgacom invested several million dollars in its efforts to clean-up its systems and beef-up its security after the attack. However, The Intercept has learned that sources familiar with the malware investigation at the company are uncomfortable with how the clean-up operation was handled—and they believe parts of the GCHQ malware were never fully removed.
  • The revelations about the scope of the hacking operation will likely alarm Belgacom’s customers across the world. The company operates a large number of data links internationally (see interactive map below), and it serves millions of people across Europe as well as officials from top institutions including the European Commission, the European Parliament, and the European Council. The new details will also be closely scrutinized by a federal prosecutor in Belgium, who is currently carrying out a criminal investigation into the attack on the company. Sophia in ’t Veld, a Dutch politician who chaired the European Parliament’s recent inquiry into mass surveillance exposed by Snowden, told The Intercept that she believes the British government should face sanctions if the latest disclosures are proven.
  • What sets the secret British infiltration of Belgacom apart is that it was perpetrated against a close ally—and is backed up by a series of top-secret documents, which The Intercept is now publishing.
  • Between 2009 and 2011, GCHQ worked with its allies to develop sophisticated new tools and technologies it could use to scan global networks for weaknesses and then penetrate them. According to top-secret GCHQ documents, the agency wanted to adopt the aggressive new methods in part to counter the use of privacy-protecting encryption—what it described as the “encryption problem.” When communications are sent across networks in encrypted format, it makes it much harder for the spies to intercept and make sense of emails, phone calls, text messages, internet chats, and browsing sessions. For GCHQ, there was a simple solution. The agency decided that, where possible, it would find ways to hack into communication networks to grab traffic before it’s encrypted.
  • The Snowden documents show that GCHQ wanted to gain access to Belgacom so that it could spy on phones used by surveillance targets travelling in Europe. But the agency also had an ulterior motive. Once it had hacked into Belgacom’s systems, GCHQ planned to break into data links connecting Belgacom and its international partners, monitoring communications transmitted between Europe and the rest of the world. A map in the GCHQ documents, named “Belgacom_connections,” highlights the company’s reach across Europe, the Middle East, and North Africa, illustrating why British spies deemed it of such high value.
  • Documents published with this article: Automated NOC detection Mobile Networks in My NOC World Making network sense of the encryption problem Stargate CNE requirements NAC review – October to December 2011 GCHQ NAC review – January to March 2011 GCHQ NAC review – April to June 2011 GCHQ NAC review – July to September 2011 GCHQ NAC review – January to March 2012 GCHQ Hopscotch Belgacom connections
Paul Merrell

Get Satisfaction - People-Powered Customer Service - 0 views

getsatisfaction.com

customer saas support web2.0

shared by Paul Merrell on 25 Aug 08 - Cached
  • Paul Merrell on 25 Aug 08
     
    Interesting SaaS. Social Helpdesk? Folks post gripes about companies or products. Many companies have assigned folks to respond. E.g., Comcast has 9 staffers responding to customer support issues. Some start-ups are using the service as their only customer support web presence. If we view IT support on a continuum, we begin with in-house call centers, move to newsgroups and outsourced call centers, etc. Now a SaaS in the cloud for many companies' customer support? The company has a great (short) slideshow at . It has a fantastic punchline.
Paul Merrell

We're Halfway to Encrypting the Entire Web | Electronic Frontier Foundation - 0 views

www.eff.org/...-halfway-encrypting-entire-web

Internet encryption https adoption

shared by Paul Merrell on 25 Feb 17 - No Cached
  • The movement to encrypt the web has reached a milestone. As of earlier this month, approximately half of Internet traffic is now protected by HTTPS. In other words, we are halfway to a web safer from the eavesdropping, content hijacking, cookie stealing, and censorship that HTTPS can protect against. Mozilla recently reported that the average volume of encrypted web traffic on Firefox now surpasses the average unencrypted volume
  • Google Chrome’s figures on HTTPS usage are consistent with that finding, showing that over 50% of of all pages loaded are protected by HTTPS across different operating systems.
  • This milestone is a combination of HTTPS implementation victories: from tech giants and large content providers, from small websites, and from users themselves.
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  • Starting in 2010, EFF members have pushed tech companies to follow crypto best practices. We applauded when Facebook and Twitter implemented HTTPS by default, and when Wikipedia and several other popular sites later followed suit. Google has also put pressure on the tech community by using HTTPS as a signal in search ranking algorithms and, starting this year, showing security warnings in Chrome when users load HTTP sites that request passwords or credit card numbers. EFF’s Encrypt the Web Report also played a big role in tracking and encouraging specific practices. Recently other organizations have followed suit with more sophisticated tracking projects. For example, Secure the News and Pulse track HTTPS progress among news media sites and U.S. government sites, respectively.
  • But securing large, popular websites is only one part of a much bigger battle. Encrypting the entire web requires HTTPS implementation to be accessible to independent, smaller websites. Let’s Encrypt and Certbot have changed the game here, making what was once an expensive, technically demanding process into an easy and affordable task for webmasters across a range of resource and skill levels. Let’s Encrypt is a Certificate Authority (CA) run by the Internet Security Research Group (ISRG) and founded by EFF, Mozilla, and the University of Michigan, with Cisco and Akamai as founding sponsors. As a CA, Let’s Encrypt issues and maintains digital certificates that help web users and their browsers know they’re actually talking to the site they intended to. CAs are crucial to secure, HTTPS-encrypted communication, as these certificates verify the association between an HTTPS site and a cryptographic public key. Through EFF’s Certbot tool, webmasters can get a free certificate from Let’s Encrypt and automatically configure their server to use it. Since we announced that Let’s Encrypt was the web’s largest certificate authority last October, it has exploded from 12 million certs to over 28 million. Most of Let’s Encrypt’s growth has come from giving previously unencrypted sites their first-ever certificates. A large share of these leaps in HTTPS adoption are also thanks to major hosting companies and platforms--like WordPress.com, Squarespace, and dozens of others--integrating Let’s Encrypt and providing HTTPS to their users and customers.
  • Unfortunately, you can only use HTTPS on websites that support it--and about half of all web traffic is still with sites that don’t. However, when sites partially support HTTPS, users can step in with the HTTPS Everywhere browser extension. A collaboration between EFF and the Tor Project, HTTPS Everywhere makes your browser use HTTPS wherever possible. Some websites offer inconsistent support for HTTPS, use unencrypted HTTP as a default, or link from secure HTTPS pages to unencrypted HTTP pages. HTTPS Everywhere fixes these problems by rewriting requests to these sites to HTTPS, automatically activating encryption and HTTPS protection that might otherwise slip through the cracks.
  • Our goal is a universally encrypted web that makes a tool like HTTPS Everywhere redundant. Until then, we have more work to do. Protect your own browsing and websites with HTTPS Everywhere and Certbot, and spread the word to your friends, family, and colleagues to do the same. Together, we can encrypt the entire web.
  • Paul Merrell on 25 Feb 17
     
    HTTPS connections don't work for you if you don't use them. If you're not using HTTPS Everywhere in your browser, you should be; it's your privacy that is at stake. And every encrypted communication you make adds to the backlog of encrypted data that NSA and other internet voyeurs must process as encrypted traffic; because cracking encrypted messages is computer resource intensive, the voyeurs do not have the resources to crack more than a tiny fraction. HTTPS is a free extension for Firefox, Chrome, and Opera. You can get it here. https://www.eff.org/HTTPS-everywhere
Gonzalo San Gil, PhD.

The death of patents and what comes after: Alicia Gibb at TEDxStockholm - YouTube - 0 views

www.youtube.com/watch

death patents what comes means open hardware creative commons Alicia Gibb

shared by Gonzalo San Gil, PhD. on 04 Oct 13 - No Cached
  • Gonzalo San Gil, PhD. on 04 Oct 13
     
    "Published on Dec 18, 2012 Alicia Gibb got her start as a technologist from her combination in backgrounds including: informatics and library science, a belief system of freedom of information, inspiration from art and design, and a passion for hardware hacking. Alicia has worked between the crossroads of art and electronics for the past nine years, and has worked for the open source hardware community for the past three. She currently founded and is running the Open Source Hardware Association, an organization to educate and promote building and using open source hardware of all types. In her spare time, Alicia is starting an open source hardware company specific to education. Previous to becoming an advocate and an entrepreneur, Alicia was a researcher and prototyper at Bug Labs where she ran the academic research program and the Test Kitchen, an open R&D Lab. Her projects centered around developing lightweight additions to the BUG platform, as well as a sensor-based data collection modules. She is a member of NYCResistor, co-chair of the Open Hardware Summit, and a member of the advisory board for Linux Journal. She holds a degree in art education, a M.S. in Art History and a M.L.I.S. in Information Science from Pratt Institute. She is self-taught in electronics. Her electronics work has appeared in Wired magazine, IEEE Spectrum, Hackaday and the New York Times. When Alicia is not researching at the crossroads of open technology and innovation she is prototyping artwork that twitches, blinks, and might even be tasty to eat. In the spirit of ideas worth spreading, TEDx is a program of local, self-organized events that bring people together to share a TED-like experience. At a TEDx event, TEDTalks video and live speakers combine to spark deep discussion and connection in a small group. These local, self-organized events are branded TEDx, where x = independently organized TED event. The TED Conference provides general guidance for the TEDx program, but individual
Gary Edwards

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

www.cato-unbound.org/...rt-shrank-intellectual-commons

patents software-patents

shared by Gary Edwards on 13 Sep 14 - No Cached
  • 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:
  • ...17 more annotations...
  • 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.
  • Gary Edwards on 13 Sep 14
     
    "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. "
  • Paul Merrell on 14 Sep 14
     
    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.
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