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Apparent National Security Agency (NSA) malware has been used in a global cyber-attack, including on British hospitals, in what whistleblower Edward Snowden described as the repercussion of the NSA’s reckless decision to build the tools. “Despite warnings, @NSAGov built dangerous attack tools that could target Western software. Today we see the cost,” Snowden tweeted Friday. At least two hospitals in London were forced to shut down and stop admitting patients after being attacked by the malware, which operates by locking out the user, encrypting data, and demanding a ransom to release it. The attacks hit dozens of other hospitals, ambulance operators, and doctors’ offices as well.

The Blackpool Gazette in the northwest reported that medical staff had resorted to using pen and paper when phone and computer systems shut down. Elsewhere, journalist Ollie Cowan tweeted a photo of ambulances “backed up” at Southport Hospital as the staff attempted to cope with the crisis.

Other disruptions were reported in at least 74 countries, including Russia, Spain, Turkey, and Japan, and the number is “growing fast,” according to Kaspersky Lab chief Costin Raiu. Security architect Kevin Beau said it was spreading into the U.S. as well. The malware, which Microsoft tested briefly earlier this year, was leaked by a group calling itself the Shadow Brokers, which has been releasing NSA hacking tools online since last year, the New York Times reports. Times journalists Dan Bilefsky and Nicole Perlroth wrote: Microsoft rolled out a patch for the vulnerability in March, but hackers apparently took advantage of the fact that vulnerable targets—particularly hospitals—had yet to update their systems. The malware was circulated by email. Targets were sent an encrypted, compressed file that, once loaded, allowed the ransomware to infiltrate its targets. Reuters reported that the National Health Service (NHS), England’s public health system, was warned about possible hacking earlier in the day, but that by then it was already too late.

hina’s ByteDance has agreed to divest the U.S. operations of TikTok completely in a bid to save a deal with the White House, after President Donald Trump said on Friday he had decided to ban the popular short-video app, two people familiar with the matter said on Saturday. ByteDance was previously seeking to keep a minority stake in the U.S. business of TikTok, which the White House had rejected. Under the new proposed deal, ByteDance would exit completely and Microsoft Corp would take over TikTok in the United States, the sources said. Some ByteDance investors that are based in the United States may be given the opportunity to take minority stakes in the business, the sources added. The White House did not respond to a request for comment on whether Trump would accept ByteDance’s concession. ByteDance in Beijing did not respond to a request for comment. Under ByteDance’s new proposal, Microsoft will be in charge of protecting all U.S. user data, the sources said. The plan allows for another U.S. company other than Microsoft to take over TikTok in the United States, the sources added.

Bytedance has apparently gotten the "tap on the shoulder" from the CCP bigwigs who apparently aren't super thrilled about the optics of a mighty Chinese conglomerate kowtowing to the Trump Administration. Earlier today, it appeared that President Trump's late-night threat about banning TikTok had motivated ByteDance and Microsoft to speed up their talks. But as the New York afternoon wore on, a Dow Jones headline proclaimed that Microsoft and ByteDance had decided to abruptly stop negotiations.

A U.S. appeals court ruled on Friday that Google's massive effort to scan millions of books for an online library does not violate copyright law, rejecting claims from a group of authors that the project illegally deprives them of revenue.The 2nd U.S. Circuit Court of Appeals in New York rejected infringement claims from the Authors Guild and several individual writers, and found that the project provides a public service without violating intellectual property law.

Google argued that the effort would actually boost book sales by making it easier for readers to find works, while introducing them to books they might not otherwise have seen.A lawyer for the authors did not immediately respond to a request for comment.Google had said it could face billions of dollars in potential damages if the authors prevailed. Circuit Judge Denny Chin, who oversaw the case at the lower court level, dismissed the litigation in 2013, prompting the authors' appeal.Chin found Google's scanning of tens of millions of books and posting "snippets" online constituted "fair use" under U.S. copyright law.A unanimous three-judge appeals panel said the case "tests the boundaries of fair use," but found Google's practices were ultimately allowed under the law. "Google’s division of the page into tiny snippets is designed to show the searcher just enough context surrounding the searched term to help her evaluate whether the book falls within the scope of her interest (without revealing so much as to threaten the author’s copyright interests)," Circuit Judge Pierre Leval wrote for the court.

The 2nd Circuit had previously rejected a similar lawsuit from the Authors Guild in June 2014 against a consortium of universities and research libraries that built a searchable online database of millions of scanned works.The case is Authors Guild v. Google Inc, 2nd U.S. Circuit Court of Appeals, No. 13-4829.

When AT&T and Time Warner announced their $85.4 billion deal in October, lawmakers greeted the acquisition frostily. Now their tone is changing.At a hearing on Capitol Hill on Wednesday that was being closely watched for how mega-mergers will be viewed in the coming Trump administration, members of a Senate Judiciary subcommittee that oversees regulatory agencies that decide on mergers said the deal merited tough scrutiny. The chief executives of AT&T and Time Warner were grilled at the hearing about a range of issues related to the deal.But in a change from previous comments, lawmakers also questioned whether traditional ways of evaluating mergers are growing outdated as Silicon Valley companies like Facebook and Google become massive media platforms that threaten the television industry. Their tone was more circumspect than those that immediately followed the deal’s announcement, when lawmakers had been more critical.

While the Justice Department wages a public fight with Apple over access to a locked iPhone, government officials are privately debating how to resolve a prolonged standoff with another technology company, WhatsApp, over access to its popular instant messaging application, officials and others involved in the case said. No decision has been made, but a court fight with WhatsApp, the world’s largest mobile messaging service, would open a new front in the Obama administration’s dispute with Silicon Valley over encryption, security and privacy.WhatsApp, which is owned by Facebook, allows customers to send messages and make phone calls over the Internet. In the last year, the company has been adding encryption to those conversations, making it impossible for the Justice Department to read or eavesdrop, even with a judge’s wiretap order.

As recently as this past week, officials said, the Justice Department was discussing how to proceed in a continuing criminal investigation in which a federal judge had approved a wiretap, but investigators were stymied by WhatsApp’s encryption.The Justice Department and WhatsApp declined to comment. The government officials and others who discussed the dispute did so on condition of anonymity because the wiretap order and all the information associated with it were under seal. The nature of the case was not clear, except that officials said it was not a terrorism investigation. The location of the investigation was also unclear.

To understand the battle lines, consider this imperfect analogy from the predigital world: If the Apple dispute is akin to whether the F.B.I. can unlock your front door and search your house, the issue with WhatsApp is whether it can listen to your phone calls. In the era of encryption, neither question has a clear answer.Some investigators view the WhatsApp issue as even more significant than the one over locked phones because it goes to the heart of the future of wiretapping. They say the Justice Department should ask a judge to force WhatsApp to help the government get information that has been encrypted. Others are reluctant to escalate the dispute, particularly with senators saying they will soon introduce legislation to help the government get data in a format it can read.

The FBI may be allowed to withhold information about how it broke into an iPhone belonging to a gunman in the December San Bernardino shootings, despite a U.S. government policy of disclosing technology security flaws discovered by federal agencies. Under the U.S. vulnerabilities equities process, the government is supposed to err in favor of disclosing security issues so companies can devise fixes to protect data. The policy has exceptions for law enforcement, and there are no hard rules about when and how it must be applied.Apple Inc has said it would like the government to share how it cracked the iPhone security protections. But the Federal Bureau of Investigation, which has been frustrated by its inability to access data on encrypted phones belonging to criminal suspects, might prefer to keep secret the technique it used to gain access to gunman Syed Farook's phone. The referee is likely to be a White House group formed during the Obama administration to review computer security flaws discovered by federal agencies and decide whether they should be disclosed.

Stewart Baker, former general counsel of the NSA and now a lawyer with Steptoe & Johnson, said the review process could be complicated if the cracking method is considered proprietary by the third party that assisted the FBI.Several security researchers have pointed to the Israel-based mobile forensics firm Cellebrite as the likely third party that helped the FBI. That company has repeatedly declined comment.

On Sunday’s Face the Nation, Sen. Rand Paul was asked about President Trump’s accusation that President Obama ordered the NSA to wiretap his calls. The Kentucky senator expressed skepticism about the mechanics of Trump’s specific charge, saying: “I doubt that Trump was a target directly of any kind of eavesdropping.” But he then made a broader and more crucial point about how the U.S. government spies on Americans’ communications — a point that is deliberately obscured and concealed by U.S. government defenders. Paul explained how the NSA routinely and deliberately spies on Americans’ communications — listens to their calls and reads their emails — without a judicial warrant of any kind: The way it works is, the FISA court, through Section 702, wiretaps foreigners and then [NSA] listens to Americans. It is a backdoor search of Americans. And because they have so much data, they can tap — type Donald Trump into their vast resources of people they are tapping overseas, and they get all of his phone calls. And so they did this to President Obama. They — 1,227 times eavesdrops on President Obama’s phone calls. Then they mask him. But here is the problem. And General Hayden said this the other day. He said even low-level employees can unmask the caller. That is probably what happened to Flynn. They are not targeting Americans. They are targeting foreigners. But they are doing it purposefully to get to Americans.

Paul’s explanation is absolutely correct. That the NSA is empowered to spy on Americans’ communications without a warrant — in direct contravention of the core Fourth Amendment guarantee that “the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause” — is the dirty little secret of the U.S. Surveillance State. As I documented at the height of the controversy over the Snowden reporting, top government officials — including President Obama — constantly deceived (and still deceive) the public by falsely telling them that their communications cannot be monitored without a warrant. Responding to the furor created over the first set of Snowden reports about domestic spying, Obama sought to reassure Americans by telling Charlie Rose: “What I can say unequivocally is that if you are a U.S. person, the NSA cannot listen to your telephone calls … by law and by rule, and unless they … go to a court, and obtain a warrant, and seek probable cause.” The right-wing chairman of the House Intelligence Committee at the time, GOP Rep. Mike Rogers, echoed Obama, telling CNN the NSA “is not listening to Americans’ phone calls. If it did, it is illegal. It is breaking the law.” Those statements are categorically false. A key purpose of the new 2008 FISA law — which then-Senator Obama voted for during the 2008 general election after breaking his primary-race promise to filibuster it — was to legalize the once-controversial Bush/Cheney warrantless eavesdropping program, which the New York Times won a Pulitzer Prize for exposing in 2005. The crux of the Bush/Cheney controversy was that they ordered NSA to listen to Americans’ international telephone calls without warrants — which was illegal at the time — and the 2008 law purported to make that type of domestic warrantless spying legal.

In a remarkable development last night resonant of the revelations in the Leveson inquiry, the Cabinet Office voided the findings of the first open standards consultation round-table on the grounds that it's facilitator had a previously undisclosed relationship with Microsoft. The news posting on the Cabinet Office web site also announced that an extra month has been added to the process, so that the consultation meeting can be run again.

As both ComputerWeekly's Mark Ballard and ComputerWorld's Glyn Moody have discovered, there has been extensive behind-the-scenes manoeuvring to re-open the Government's position on open standards and protect the incumbent suppliers to the government, so the discovery of an over-cozy relationship in this area of the government's business too is no real surprise.

The Federal Communications Commission is poised to ruin the free Internet on a technicality. The group is expected to introduce new net neutrality laws that would allow companies to pay for better access to consumers through deals similar to the one struck by Netflix and Comcast earlier this year. The argument is that those deals don’t technically fall under the net neutrality umbrella, so these new rules won’t apply to them even though they directly affect the Internet. At least the commission is being upfront about its disinterest in protecting the free Internet.

The Verge notes that the proposed rules will offer some protections to consumers: The Federal Communication Commission’s proposal for new net neutrality rules will allow internet service providers to charge companies for preferential treatment, effectively undermining the concept of net neutrality, according to The Wall Street Journal. The rules will reportedly allow providers to charge for preferential treatment so long as they offer that treatment to all interested parties on “commercially reasonable” terms, with the FCC will deciding whether the terms are reasonable on a case-by-case basis. Providers will not be able to block individual websites, however. The goal of net neutrality rules is to prevent service providers from discriminating between different content, allowing all types of data and all companies’ data to be treated equally. While it appears that outright blocking of individual services won’t be allowed, the Journal reports that some forms of discrimination will be allowed, though that will apparently not include slowing down websites.

Re/code summarizes the discontent with these proposed rules: Consumer groups have complained about that plan because they’re worried that Wheeler’s rules may not hold up in court either. A federal appeals court rejected two previous versions of net neutrality rules after finding fault in the FCC’s legal reasoning. During the latest smackdown, however, the court suggested that the FCC had some authority to impose net neutrality rules under a section of the law that gives the agency the ability to regulate the deployment of broadband lines. Internet activists would prefer that the FCC just re-regulate Internet lines under old rules designed for telephone networks, which they say would give the agency clear authority to police Internet lines. Wheeler has rejected that approach for now. Phone and cable companies, including Comcast, AT&T and Verizon, have vociferously fought that idea over the past few years.

Huge volumes of private emails, phone calls, and internet chats are being intercepted by the National Security Agency with the secret cooperation of more foreign governments than previously known, according to newly disclosed documents from whistleblower Edward Snowden. The classified files, revealed today by the Danish newspaper Dagbladet Information in a reporting collaboration with The Intercept, shed light on how the NSA’s surveillance of global communications has expanded under a clandestine program, known as RAMPART-A, that depends on the participation of a growing network of intelligence agencies.

It has already been widely reported that the NSA works closely with eavesdropping agencies in the United Kingdom, Canada, New Zealand, and Australia as part of the so-called Five Eyes surveillance alliance. But the latest Snowden documents show that a number of other countries, described by the NSA as “third-party partners,” are playing an increasingly important role – by secretly allowing the NSA to install surveillance equipment on their fiber-optic cables. The NSA documents state that under RAMPART-A, foreign partners “provide access to cables and host U.S. equipment.” This allows the agency to covertly tap into “congestion points around the world” where it says it can intercept the content of phone calls, faxes, e-mails, internet chats, data from virtual private networks, and calls made using Voice over IP software like Skype.

The program, which the secret files show cost U.S. taxpayers about $170 million between 2011 and 2013, sweeps up a vast amount of communications at lightning speed. According to the intelligence community’s classified “Black Budget” for 2013, RAMPART-A enables the NSA to tap into three terabits of data every second as the data flows across the compromised cables – the equivalent of being able to download about 5,400 uncompressed high-definition movies every minute. In an emailed statement, the NSA declined to comment on the RAMPART-A program. “The fact that the U.S. government works with other nations, under specific and regulated conditions, mutually strengthens the security of all,” said NSA spokeswoman Vanee’ Vines. “NSA’s efforts are focused on ensuring the protection of the national security of the United States, its citizens, and our allies through the pursuit of valid foreign intelligence targets only.”

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.

Eric Holder: The Justice Department could strike deal with Edward SnowdenMichael IsikoffChief Investigative CorrespondentJuly 6, 2015Former U.S. Attorney General Eric Holder. (Photo: Olivier Douliery-Pool/Getty) Former Attorney General Eric Holder said today that a “possibility exists” for the Justice Department to cut a deal with former NSA contractor Edward Snowden that would allow him to return to the United States from Moscow. In an interview with Yahoo News, Holder said “we are in a different place as a result of the Snowden disclosures” and that “his actions spurred a necessary debate” that prompted President Obama and Congress to change policies on the bulk collection of phone records of American citizens. Asked if that meant the Justice Department might now be open to a plea bargain that allows Snowden to return from his self-imposed exile in Moscow, Holder replied: “I certainly think there could be a basis for a resolution that everybody could ultimately be satisfied with. I think the possibility exists.”

But his remarks to Yahoo News go further than any current or former Obama administration official in suggesting that Snowden’s disclosures had a positive impact and that the administration might be open to a negotiated plea that the self-described whistleblower could accept, according to his lawyer Ben Wizner.

It’s also not clear whether Holder’s comments signal a shift in Obama administration attitudes that could result in a resolution of the charges against Snowden. Melanie Newman, chief spokeswoman for Attorney General Loretta Lynch, Holder’s successor, immediately shot down the idea that the Justice Department was softening its stance on Snowden. “This is an ongoing case so I am not going to get into specific details but I can say our position regarding bringing Edward Snowden back to the United States to face charges has not changed,” she said in an email.

The head of the National Security Agency on Thursday told Senate lawmakers that preventing his agency from collecting Americans’ information in bulk would make it harder to do its job.Under questioning before the Senate Intelligence Committee, Adm. Michael Rogers agreed that ending bulk collection would “significantly reduce [his] operational capabilities.”ADVERTISEMENT“Right now, bulk collection gives us the ability ... to generate insights as to what’s going on,” Rogers told the committee.The NSA head also referenced a January report from the National Academy of Sciences that concluded there is “no software technique that will fully substitute for bulk collection” because of the ability to search through the storehouse of old information. “That independent, impartial, scientifically-founded body came back and said no, under the current structure there is no real replacement,” Rogers said.Rogers was questioned on Thursday by Sen. Ron Wyden (D-Ore.), a member of the Intelligence Committee who has become its most vocal privacy hawk.

In response to the NSA head’s comments, Wyden pointed to a 2013 White House review group, which found that one controversial NSA bulk collection program “was not essential to preventing attacks” and that the information obtained by the NSA “could readily have been obtained in a timely manner using” other means.The debate follows on a congressional clash earlier this year over the NSA’s bulk collection of records about the phone calls of millions of Americans. The records contained information about whom people called and when but not what they talked about.

After a brief lapsing of some portions of the Patriot Act, Congress eventually reined in the NSA by forcing it to go through the courts to search private phone companies’ records for a narrower set of records. Many privacy advocates treated the new law, called the USA Freedom Act, as a significant victory, through national security hawks worried that it would make it harder for the NSA to track terrorists.Under the new system — which has not gone into effect yet — the amount of time it takes to obtain those records “is probably going to be longer I suspect,” Rogers said.Though the phone records database has been the NSA’s most prominent bulk collection program, it is not the only one. The agency’s collection of vast amounts of Internet data has alarmed many privacy advocates and is the target of a current lawsuit from Wikipedia and the American Civil Liberties Union. 

The United Nations has disgraced itself immeasurably over the past month or so. In case you missed the following stories, I suggest catching up now: The UN’s “Sustainable Development Agenda” is Basically a Giant Corporatist Fraud Not a Joke – Saudi Arabia Chosen to Head UN Human Rights Panel Fresh off the scene from those two epic embarrassments, the UN now wants to tell governments of the world how to censor the internet. I wish I was kidding. From the Washington Post: On Thursday, the organization’s Broadband Commission for Digital Development released a damning “world-wide wake-up call” on what it calls “cyber VAWG,” or violence against women and girls. The report concludes that online harassment is “a problem of pandemic proportion” — which, nbd, we’ve all heard before. But the United Nations then goes on to propose radical, proactive policy changes for both governments and social networks, effectively projecting a whole new vision for how the Internet could work. Under U.S. law — the law that, not coincidentally, governs most of the world’s largest online platforms — intermediaries such as Twitter and Facebook generally can’t be held responsible for what people do on them. But the United Nations proposes both that social networks proactively police every profile and post, and that government agencies only “license” those who agree to do so.

People are being harassed online, and the solution is to censor everything and license speech? Remarkable. How that would actually work, we don’t know; the report is light on concrete, actionable policy. But it repeatedly suggests both that social networks need to opt-in to stronger anti-harassment regimes and that governments need to enforce them proactively. At one point toward the end of the paper, the U.N. panel concludes that“political and governmental bodies need to use their licensing prerogative” to better protect human and women’s rights, only granting licenses to “those Telecoms and search engines” that “supervise content and its dissemination.” So we’re supposed to be lectured about human rights from an organization that named Saudi Arabia head of its human rights panel? Got it. Regardless of whether you think those are worthwhile ends, the implications are huge: It’s an attempt to transform the Web from a libertarian free-for-all to some kind of enforced social commons. This U.N. report gets us no closer, alas: all but its most modest proposals are unfeasible. We can educate people about gender violence or teach “digital citizenship” in schools, but persuading social networks to police everything their users post is next to impossible. And even if it weren’t, there are serious implications for innovation and speech: According to the Electronic Frontier Foundation, CDA 230 — the law that exempts online intermediaries from this kind of policing — is basically what allowed modern social networks (and blogs, and comments, and forums, etc.) to come into being. If we’re lucky, perhaps the Saudi religious police chief (yes, they have one) who went on a rampage against Twitter a couple of years ago, will be available to head up the project. What a joke.

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.”