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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.

The Justice Department accused Google on Tuesday of illegally protecting its monopoly over search and search advertising, the government’s most significant challenge to a tech company’s market power in a generation and one that could reshape the way consumers use the internet.In a much-anticipated lawsuit, the agency accused Google of locking up deals with giant partners like Apple and throttling competition through exclusive business contracts and agreements.Google’s deals with Apple, mobile carriers and other handset makers to make its search engine the default option for users accounted for most of its dominant market share in search, the agency said, a figure that it put at around 80 percent.“For many years,” the agency said in its 57-page complaint, “Google has used anticompetitive tactics to maintain and extend its monopolies in the markets for general search services, search advertising and general search text advertising — the cornerstones of its empire.”The lawsuit, which may stretch on for years, could set off a cascade of other antitrust lawsuits from state attorneys general. About four dozen states and jurisdictions, including New York and Texas, have conducted parallel investigations and some of them are expected to bring separate complaints against the company’s grip on technology for online advertising. Eleven state attorneys general, all Republicans, signed on to support the federal lawsuit.

The Justice Department did not immediately put forward remedies, such as selling off parts of the company or unwinding business contracts, in the lawsuit. Such actions are typically pursued in later stages of a case.Ryan Shores, an associate deputy attorney general, said “nothing is off the table” in terms of remedies.

Democratic lawmakers on the House Judiciary Committee released a sprawling report on the tech giants two weeks ago, also accusing Google of controlling a monopoly over online search and the ads that come up when users enter a query.

A judge has approved a settlement valued at $650 million from Facebook to end a privacy lawsuit, one which alleged the social network used facial recognition technology on user photos stored on its iPhone app without permission. The lawsuit, which started in April 2015, alleged Facebook did not gain consent from users to use its facial tagging features on their photographs. Originally filed by Chicago attorney Jay Edelson on behalf of plaintiff Carlo Licata, the complaint claimed the consent-less tagging was not allowed under privacy laws in Illinois. The case originated in Cook County Circuit Court before moving to Chicago federal court then California, reports the Chicago Tribune. On reaching California, the lawsuit attained class-action status. The class in question constitutes approximately 6.9 million Facebook users in Illinois that Facebook created and stored a face template for after June 7, 2011. Close to 1.6 million claim forms were filed ahead of the November 23 deadline for joining, making up roughly 22% of potential class members. Facebook went against the Illinois Biometric Information Privacy Act, the complaint alleged, which is among the toughest privacy laws in the United States. Part of the act requires companies to gain permission from users before being able to start using biometric systems with their data, which includes facial recognition systems.

Three states and the District of Columbia allege that the tech giant misled consumers by continuing to track those who had changed their privacy settings to prevent data collection.

Google is also fighting an antitrust lawsuit led by Texas in which states have accused the company of obtaining and abusing a monopoly over the systems that allow publishers to auction off ad space to marketers. On Friday, Google asked a federal court to dismiss the lawsuit.The lawsuits add to a mounting offensive by regulators to curtail the power and business practices of Silicon Valley giants like Google, Facebook, Amazon and Apple. State and federal regulators have filed dozens of antitrust, consumer protection, privacy and trade lawsuits in an attempt to curb the business models or break up the companies. A Senate committee last week advanced potentially landmark antitrust legislation that tries to weaken the dominance of the internet giants.

WASHINGTON (AP) -- The Obama administration has been quietly advising local police not to disclose details about surveillance technology they are using to sweep up basic cellphone data from entire neighborhoods, The Associated Press has learned. Citing security reasons, the U.S. has intervened in routine state public records cases and criminal trials regarding use of the technology. This has resulted in police departments withholding materials or heavily censoring documents in rare instances when they disclose any about the purchase and use of such powerful surveillance equipment. Federal involvement in local open records proceedings is unusual. It comes at a time when President Barack Obama has said he welcomes a debate on government surveillance and called for more transparency about spying in the wake of disclosures about classified federal surveillance programs.

One well-known type of this surveillance equipment is known as a Stingray, an innovative way for law enforcement to track cellphones used by suspects and gather evidence. The equipment tricks cellphones into identifying some of their owners' account information, like a unique subscriber number, and transmitting data to police as if it were a phone company's tower. That allows police to obtain cellphone information without having to ask for help from service providers, such as Verizon or AT&T, and can locate a phone without the user even making a call or sending a text message. But without more details about how the technology works and under what circumstances it's used, it's unclear whether the technology might violate a person's constitutional rights or whether it's a good investment of taxpayer dollars. Interviews, court records and public-records requests show the Obama administration is asking agencies to withhold common information about the equipment, such as how the technology is used and how to turn it on. That pushback has come in the form of FBI affidavits and consultation in local criminal cases.

"These extreme secrecy efforts are in relation to very controversial, local government surveillance practices using highly invasive technology," said Nathan Freed Wessler, a staff attorney with the American Civil Liberties Union, which has fought for the release of these types of records. "If public participation means anything, people should have the facts about what the government is doing to them." Harris Corp., a key manufacturer of this equipment, built a secrecy element into its authorization agreement with the Federal Communications Commission in 2011. That authorization has an unusual requirement: that local law enforcement "coordinate with the FBI the acquisition and use of the equipment." Companies like Harris need FCC authorization in order to sell wireless equipment that could interfere with radio frequencies. A spokesman from Harris Corp. said the company will not discuss its products for the Defense Department and law enforcement agencies, although public filings showed government sales of communications systems such as the Stingray accounted for nearly one-third of its $5 billion in revenue. "As a government contractor, our solutions are regulated and their use is restricted," spokesman Jim Burke said.

In a $100 million lawsuit that has garnered virtually no public attention, five National Security Agency (NSA) whistleblowers are accusing the federal government of illegally retaliating against them for alerting the NSA and Congress to a waste of taxpayer funds that benefitted a well-connected contractor.The lawsuit tells the story of the infancy of the NSA’s efforts to surveil the Internet. Back then, there were two programs for the spying agency to choose from — and the first was called ThinThread. It had been developed internally, was comparatively inexpensive, had been tested and proven to be effective, and included safeguards preventing the spying on Americans without a court warrant. The other was called Trailblazer. It did not include such safeguards, had not yet been shown to be effective, and cost 1,000 times more than ThinThread. Instead of being developed internally, it was to be outsourced to Science Applications International Corporation (SAIC), a politically connected contractor.The NSA chose Trailblazer.

In response, four NSA employees who had worked on ThinThread, as well as a congressional staffer, alerted Congress and the Office of the Inspector General of the NSA that the agency was wasting taxpayer funds. That is when their troubles began, according to the lawsuit.It alleges that the defendants, which include the NSA, FBI, and the Department of Justice, as well as individuals associated with them, “knowingly and intentionally fabricated” a claim that the plaintiffs leaked classified information to New York Times reporters Eric Lichtblau and James Risen.“[The defendants] used this fabricated claim for retaliation, illegal searches and seizures, physical invasion of their residences and places of business, temporary false imprisonment, the confiscation of their property, cancellation of security clearances leading to the loss of their jobs and employment, intentional infliction of emotional distress, harassment and intimidation,” the lawsuit alleges.It also states that the defendants should have known that the plaintiffs were not the leaks because the NSA “was tracking all domestic telephone calls for the supposed purpose of protecting national security.”

The plaintiffs are former NSA employees Thomas Drake, Ed Loomis, J. Kirk Wiebe, William Binney, and former congressional staffer Diane Roark. They seek “punitive damages in excess of $100 million because of Defendants [sic] callous and reckless indifference and malicious acts …” as well as well as an additional $15 million for lost wages and to cover costs.Larry Klayman, the prominent conservative public interest attorney and founder of Judicial Watch, filed the suit on August 20th. However, it is expected to be amended this week, and it is possible that additional publicity for the case will be sought then.

Meta Platforms Inc (META.O) reached a $37.5 million settlement of a lawsuit accusing the parent of Facebook of violating users' privacy by tracking their movements through their smartphones without permission.A preliminary settlement of the proposed class action was filed on Monday in San Francisco federal court, and requires a judge's approval.It resolved claims that Facebook violated California law and its own privacy policy by gathering data from users who turned off Location Services on their mobile devices.Register now for FREE unlimited access to Reuters.comRegisterAdvertisement · Scroll to continueThe users said that while they did not want to share their locations with Facebook, the company nevertheless inferred where they were from their IP (internet protocol) addresses, and used that information to send them targeted advertising.Monday's settlement covers people in the United States who used Facebook after Jan. 30, 2015.Meta denied wrongdoing in agreeing to settle. It did not immediately respond on Tuesday to requests for comment.Advertisement · Scroll to continueIn June 2018, Facebook and Chief Executive Mark Zuckerberg told the U.S. Congress that the Menlo Park, California-based company uses location data "to help advertisers reach people in particular areas."As an example, it said users who dined at particular restaurants might receive posts from friends who also ate there, or ads from businesses that wanted to provide services nearby.The lawsuit began in November 2018. Lawyers for the plaintiffs may seek up to 30% of Monday's settlement for legal fees, settlement papers show.Advertisement · Scroll to continueThe cases is Lundy et al v Facebook Inc, U.S. District Court, Northern District of California, No. 18-06793.

The Belgian government will be suing Facebook. The Commission for the Protection of Privacy states that Facebook violates Belgian and EU law by tracking systems that target both Facebook users as well as non-Facebook users. Facebook is known for cooperating with the U.S.’ National Security Agency. 

The Belgian privacy watchdog’s case against the internet giant Facebook will be heard at a court in Brussels on Thursday. The Commission has repeatedly requested that Facebook should comply with Belgian and EU law. Facebook failed to comply, and the Commission has no power to enforce the law; hence the decision to sue Facebook to attain a a court ruling. The President of the Commission for the Protection of Privacy, Willem Debeuckelaere, told the press that: “Facebook treats its users’ private lives without respect and that needs tackling. It’s not because we want to start a lawsuit over this, but we cannot continue to negotiate through other means. .. We want a judge to impose our recommendations. These recommendations are chiefly aimed at protecting internet users who are not Facebook members.”

The Belgian privacy watchdog alleges that Facebook tracks the web browsing of all visitors, including those who have specifically turned the tracking function off; This gathering of private information allegedly also includes those who do not have a Facebook account. Moreover, the Commission claims that Facebook has the capability to surveil computers without consent, even when users are logged out; and Facebook can monitor every PC of users that use websites with Facebook plugins. The capability to monitor both Facebook users and non-Facebook users allegedly functions via Cookies that store information about user’s internet activities, including preferential settings of websites and which websites internet users have visited. The Commission claims that Facebook installs these Cookies on all computers that visit websites that for example have a Facebook plugin to share internet content. That includes the computers of persons who do not make use of Facebook’s “share” or “like” button.

Google on Wednesday was hit by a lawsuit from a group of state attorneys over alleged violation of antitrust laws by its Android app store.

Attorneys general for 36 states and the District of Columbia sued the Big Tech company in a 144-page complaint filed in a Northern California federal court. The group alleges that Google’s Play store for Android apps violates antitrust laws.The complaint centers on the control Google is able to exert on its Play store, allowing it to collect commissions of up to 30 percent on digital transactions within apps installed on Android-powered smartphones. Those devices represent more than 80 percent of the worldwide smartphone market.Led by Utah, North Carolina, Tennessee, New York, Arizona, Colorado, Iowa, and Nebraska, it marks the fourth major antitrust lawsuit filed by U.S. government agencies against the company since October 2020.Other lawsuits filed against Google include a complaint filed by a bipartisan coalition of states, and one filed by the Department of Justice. It echoes allegations made against the company by mobile game maker Epic Games in August 2020. That case is awaiting trial.The complaint contends that Google has deployed various tactics and set up anticompetitive barriers to ensure it distributes more than 90 percent of the apps on Android devices—a market share that the attorneys general argue represents an illegal monopoly. It also alleges Google has been abusing that power to reap billions of dollars in profit at the expense of consumers, who wind up paying higher prices to subsidize the commissions, and the makers of apps who have less money and incentive to innovate.

The Federal Trade Commission sued to break up Facebook on Wednesday, asking a federal court to force the sell-off of assets such as Instagram and WhatsApp as independent businesses.“Facebook has maintained its monopoly position by buying up companies that present competitive threats and by imposing restrictive policies that unjustifiably hinder actual or potential rivals that Facebook does not or cannot acquire,” the commission said in the lawsuit filed in federal court in Washington, D.C.The lawsuit asks the court to order the “divestiture of assets, divestiture or reconstruction of businesses (including, but not limited to, Instagram and/or WhatsApp),” as well as other possible relief the court might want to add.

Attorneys general from 48 states and territories said they were filing their own lawsuit against Facebook, reflecting the broad and bipartisan concern about how much power Facebook and its CEO, Mark Zuckerberg, have accumulated on the internet.

NSO Group, an Israeli vendor of “lawful” hacking tools designed to infect a target’s phone with spyware, is regarded by many as a bad actor. The group claims to be shocked when its products are misused, as they have been in Mexico, Saudi Arabia and the United Arab Emirates. One incident might be excusable, but the group’s continued enabling of misbehavior has resulted in well-earned enmity. Recently, Facebook struck back. NSO Group deployed a weaponized exploit for Facebook’s WhatsApp messenger, integrated it into its Pegasus malcode system, and offered it to its customers (a mix of legitimate government agencies and nefarious government actors) interested in hacking WhatsApp users beginning in April. This was a particularly powerful exploit because it required no user interaction and the only sign of the exploit a user might discover would be a series of “missed calls” received on the user’s phone. Facebook patched the vulnerability on May 13, blocking the NSO campaign. Facebook wasn’t satisfied with simply closing the vulnerability. In cooperation with CitizenLab, Facebook identified more than 100 incidents in which NSO Group’s WhatsApp exploit appeared to target human rights activists and journalists. In total, Facebook and CitizenLab identified 1,400 targets (which apparently also included government officials in U.S. allied governments). They then filed a federal lawsuit against NSO Group, closed NSO Group member accounts, and, most damaging of all to NSO’s customers, sent a notice to all identified victims alerting them of the attack. This meant that all targets, both dissidents and drug lords alike, were notified of this surveillance. The lawsuit will be a case to watch. Facebook has already revealed a large amount of detail concerning NSO Group’s internal workings, including the hands-on nature of its business model: NSO Group actively assists countries in hacking targets. For example, we now know that while an NSO Group employee may not press the “Enter” key for a target, NSO employees do act to advise and consult on targeting; and NSO Group is largely responsible for running the infrastructure used to exploit targets and manage implants. Expect more revelations like this as the case proceeds.

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.

n a major victory for privacy rights at the border, a federal court in Boston ruled today that suspicionless searches of travelers’ electronic devices by federal agents at airports and other U.S. ports of entry are unconstitutional. The ruling came in a lawsuit, Alasaad v. McAleenan, filed by the American Civil Liberties Union (ACLU), Electronic Frontier Foundation (EFF), and ACLU of Massachusetts, on behalf of 11 travelers whose smartphones and laptops were searched without individualized suspicion at U.S. ports of entry.“This ruling significantly advances Fourth Amendment protections for millions of international travelers who enter the United States every year,” said Esha Bhandari, staff attorney with the ACLU’s Speech, Privacy, and Technology Project. “By putting an end to the government’s ability to conduct suspicionless fishing expeditions, the court reaffirms that the border is not a lawless place and that we don’t lose our privacy rights when we travel.”

The district court order puts an end to Customs and Border Control (CBP) and Immigration and Customs Enforcement (ICE) asserted authority to search and seize travelers’ devices for purposes far afield from the enforcement of immigration and customs laws. Border officers must now demonstrate individualized suspicion of illegal contraband before they can search a traveler’s device. The number of electronic device searches at U.S. ports of entry has increased significantly. Last year, CBP conducted more than 33,000 searches, almost four times the number from just three years prior. International travelers returning to the United States have reported numerous cases of abusive searches in recent months. While searching through the phone of Zainab Merchant, a plaintiff in the Alasaad case, a border agent knowingly rifled through privileged attorney-client communications. An immigration officer at Boston Logan Airport reportedly searched an incoming Harvard freshman’s cell phone and laptop, reprimanded the student for friends’ social media postings expressing views critical of the U.S. government, and denied the student entry into the country following the search.For the order:https://www.eff.org/document/alasaad-v-nielsen-summary-judgment-order For more on this case:https://www.eff.org/cases/alasaad-v-duke

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.

Facebook said on Wednesday that it had agreed to pay $550 million to settle a class-action lawsuit over its use of facial recognition technology in Illinois, giving privacy groups a major victory that again raised questions about the social network’s data-mining practices.The case stemmed from Facebook’s photo-labeling service, Tag Suggestions, which uses face-matching software to suggest the names of people in users’ photos. The suit said the Silicon Valley company violated an Illinois biometric privacy law by harvesting facial data for Tag Suggestions from the photos of millions of users in the state without their permission and without telling them how long the data would be kept. Facebook has said the allegations have no merit.Under the agreement, Facebook will pay $550 million to eligible Illinois users and for the plaintiffs’ legal fees. The sum dwarfs the $380.5 million that the Equifax credit reporting agency agreed this month to pay to settle a class-action case over a 2017 consumer data breach.