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Lawmakers Say TPP Meetings Classified To Keep Americans in the Dark | Global Research - 0 views

  • US Trade Representative Michael Froman is drawing fire from Congressional Democrats for the Obama adminstration’s continued imposition of secrecy surrounding the Trans-Pacific Parternship. (Photo: AP file) Democratic lawmaker says tightly-controlled briefings on Trans-Pacific Partnership deal are aimed at keeping US constituents ignorant about what’s at stake Lawmakers in Congress who remain wary of the Trans-Pacific Partnership (TPP) trade agreement are raising further objections this week to the degree of secrecy surrounding briefings on the deal, with some arguing that the main reason at least one meeting has been registered “classified” is to help keep the American public ignorant about giveaways to corporate interests and its long-term implications.
  • Among its other critics, Sen. Elizabeth Warren has slammed the idea of ISDS provisions as a surrender of democratic ideals to corporate interests. According to Warren, ISDS would simply “tilt the playing field in the United States further in favor of big multinational corporations.” By having unchallenged input on secretive TPP talks, Warren argued last month, these large companies and financial interests “are increasingly realizing this is an opportunity to gut U.S. regulations they don’t like.” According to Grayson, putting Wednesday’s ISDS briefing in a classified setting “is part of a multi-year campaign of deception and destruction. Why do we classify information? It’s to keep sensitive information out of the hands of foreign governments. In this case, foreign governments already have this information. They’re the people the administration is negotiating with. The only purpose of classifying this information is to keep it from the American people.”
  • “I’m not happy about it,” Rep. Alan Grayson (D-Fla.) told the Huffington Post, referring to the briefing with Froman and Labor Secretary Thomas Perez on Wednesday. The meeting—focused on the section of the TPP that deals with the controversial ‘Investor-State Dispute Settlement’ (ISDS) mechanism—has been labeled “classified,” so that lawmakers and any of their staff who attend will be barred, under threat of punishment, of revealing what they learn with constituents or outside experts. According to the Huffington Post: ISDS has been part of U.S. free trade agreements since NAFTA was signed into law in 1993, and has become a particularly popular tool for multinational firms over the past few years. But while the topic remains controversial, particularly with Democrats, many critics of the administration emphasize that applying national security-style restrictions on such information is an abuse of the classified information system. An additional meeting earlier on Wednesday on currency manipulation with Froman and Treasury Secretary Jack Lew is not classified.
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  • As The Hill reports: Members will be allowed to attend the briefing on the proposed trade pact with 12 Latin American and Asian countries with one staff member who possesses an “active Secret-level or high clearance” compliant with House security rules. Rep. Rosa DeLauro (D-Conn.) told The Hill that the administration is being “needlessly secretive.” “Even now, when they are finally beginning to share details of the proposed deal with members of Congress, they are denying us the ability to consult with our staff or discuss details of the agreement with experts,” DeLauro told The Hill. Rep. Lloyd Doggett (D-Texas) condemned the classified briefing. “Making it classified further ensures that, even if we accidentally learn something, we cannot share it. What is [Froman]working so hard to hide? What is the specific legal basis for all this senseless secrecy?” Doggett said to The Hill. “Open trade should begin with open access,” Doggett said. “Members expected to vote on trade deals should be able to read the unredacted negotiating text.”
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Civil society organisations say no to intellectual property in EU - US trade agreement ... - 0 views

  • Brussels, 18 March 2013 -- More than 35 European and United States civil society organisations insist that a proposed trade agreement between the EU and the US exclude any provisions related to patents, copyright, trademarks, or other forms of so-called "intellectual property". Such provisions could impede citizens' rights to health, culture, and free expression and otherwise affect their daily lives.
  • The civil society organisations also insist that the EU and US will release the negotiating texts of the trade agreement they intend to negotiate. They believe that secretive "trade" negotiations are absolutely unacceptable forums for devising binding rules that change national non-trade laws.
  • We, the undersigned, are internet freedom and public health groups, activists, and other public interest leaders dedicated to the rights of all people to access cultural and educational resources and affordable medicines, to enjoy a free and open internet, and to benefit from open and needs-driven innovation. First, we insist that the European Union and United States release, in timely and ongoing fashion, any and all negotiating or pre-negotiation texts. We believe that secretive "trade" negotiations are absolutely unacceptable forums for devising binding rules that change national non-trade laws. Second, we insist that the proposed TAFTA exclude any provisions related to patents, copyright, trademarks, data protection, geographical indications, or other forms of so-called "intellectual property". Such provisions could impede our rights to health, culture, and free expression and otherwise affect our daily lives.
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  • Past trade agreements negotiated by the US and EU have significantly increased the privileges of multinational corporations at the expense of society in general. Provisions in these agreements can, among many other concerns, limit free speech, constrain access to educational materials such as textbooks and academic journals, and, in the case of medicines, raise healthcare costs and contribute to preventable suffering and death. Unless "intellectual property" is excluded from these talks, we fear that the outcome will be an agreement that inflicts the worst of both regimes’ rules on the other party. From a democratic perspective, we believe that important rules governing technology, health, and culture should be debated in the US Congress, the European Parliament, national parliaments, and other transparent forums where all stakeholders can be heard—not in closed negotiations that give privileged access to corporate insiders. The TAFTA negotiations must not lead to a rewriting of patent and copyright rules in a way that tilts the balance even further away from the interests of citizens.
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"A Very Big Mistake": Joseph Stiglitz Slams Obama for Pushing the TPP | Democracy Now! ... - 0 views

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    "Stiglitz about the trade deal. "The irony is that the president came out and said, 'This is about who makes the trade rules-China or the United States?'" Stiglitz said. "But I think the big issue is, this is about who makes the rules of trade-the American people, our democratic process, or the corporations? And who they're made for, which is, for the corporations or for all of us?""
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New Leak Of Final TPP Text Confirms Attack On Freedom Of Expression, Public Health - 0 views

  • Offering a first glimpse of the secret 12-nation “trade” deal in its final form—and fodder for its growing ranks of opponents—WikiLeaks on Friday published the final negotiated text for the Trans-Pacific Partnership (TPP)’s Intellectual Property Rights chapter, confirming that the pro-corporate pact would harm freedom of expression by bolstering monopolies while and injure public health by blocking patient access to lifesaving medicines. The document is dated October 5, the same day it was announced in Atlanta, Georgia that the member states to the treaty had reached an accord after more than five years of negotiations. Aside from the WikiLeaks publication, the vast majority of the mammoth deal’s contents are still being withheld from the public—which a WikiLeaks press statement suggests is a strategic move by world leaders to forestall public criticism until after the Canadian election on October 19. Initial analyses suggest that many of the chapter’s more troubling provisions, such as broader patent and data protections that pharmaceutical companies use to delay generic competition, have stayed in place since draft versions were leaked in 2014 and 2015. Moreover, it codifies a crackdown on freedom of speech with rules allowing widespread internet censorship.
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LEAKED: Secret Negotiations to Let Big Brother Go Global | Wolf Street - 0 views

  • Much has been written, at least in the alternative media, about the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), two multilateral trade treaties being negotiated between the representatives of dozens of national governments and armies of corporate lawyers and lobbyists (on which you can read more here, here and here). However, much less is known about the decidedly more secretive Trade in Services Act (TiSA), which involves more countries than either of the other two. At least until now, that is. Thanks to a leaked document jointly published by the Associated Whistleblowing Press and Filtrala, the potential ramifications of the treaty being hashed out behind hermetically sealed doors in Geneva are finally seeping out into the public arena.
  • If signed, the treaty would affect all services ranging from electronic transactions and data flow, to veterinary and architecture services. It would almost certainly open the floodgates to the final wave of privatization of public services, including the provision of healthcare, education and water. Meanwhile, already privatized companies would be prevented from a re-transfer to the public sector by a so-called barring “ratchet clause” – even if the privatization failed. More worrisome still, the proposal stipulates that no participating state can stop the use, storage and exchange of personal data relating to their territorial base. Here’s more from Rosa Pavanelli, general secretary of Public Services International (PSI):
  • The leaked documents confirm our worst fears that TiSA is being used to further the interests of some of the largest corporations on earth (…) Negotiation of unrestricted data movement, internet neutrality and how electronic signatures can be used strike at the heart of individuals’ rights. Governments must come clean about what they are negotiating in these secret trade deals. Fat chance of that, especially in light of the fact that the text is designed to be almost impossible to repeal, and is to be “considered confidential” for five years after being signed. What that effectively means is that the U.S. approach to data protection (read: virtually non-existent) could very soon become the norm across 50 countries spanning the breadth and depth of the industrial world.
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  • The main players in the top-secret negotiations are the United States and all 28 members of the European Union. However, the broad scope of the treaty also includes Australia, Canada, Chile, Colombia, Costa Rica, Hong Kong, Iceland, Israel, Japan, Liechtenstein, Mexico, New Zealand, Norway, Pakistan, Panama, Paraguay, Peru, South Korea, Switzerland, Taiwan and Turkey. Combined they represent almost 70 percent of all trade in services worldwide. An explicit goal of the TiSA negotiations is to overcome the exceptions in GATS that protect certain non-tariff trade barriers, such as data protection. For example, the draft Financial Services Annex of TiSA, published by Wikileaks in June 2014, would allow financial institutions, such as banks, the free transfer of data, including personal data, from one country to another. As Ralf Bendrath, a senior policy advisor to the MEP Jan Philipp Albrecht, writes in State Watch, this would constitute a radical carve-out from current European data protection rules:
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New Corporate Rights Under TAFTA - 0 views

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    "For over a decade, U.S. and European corporations have pushed for an agreement between the United States and Europe - the Trans-Atlantic Free Trade Agreement (TAFTA) - that would roll back consumer, environmental and other important safeguards on both sides of the Atlantic and establish new corporate rights and privileges. In July 2013, European Union (EU) and U.S. negotiators launched TAFTA negotiations, which are ongoing."
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Stop TTIP | Campaign - 0 views

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    "... However TTIP is not about trade. It is in fact a corporate coup that will take us to a 'corporatocracy', a corporate-run world. ..."
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TPP vs. Democracy: Leaked Draft of Secretive Trade Deal Spells Out Plan for Corporate P... - 0 views

    • Gonzalo San Gil, PhD.
       
      [# ! Via Bill Harwood's FB -> OCCUPY CENTRAL]
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    [WikiLeaks reveals negotiators planning to expand secret corporate tribunals By Sarah Lazare, staff writer Common Dreams March 26, 2015]
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    [WikiLeaks reveals negotiators planning to expand secret corporate tribunals By Sarah Lazare, staff writer Common Dreams March 26, 2015]
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WikiLeaks - Secret Trans-Pacific Partnership Agreement (TPP) - Investment Chapter - 0 views

  • WikiLeaks releases today the "Investment Chapter" from the secret negotiations of the TPP (Trans-Pacific Partnership) agreement. The document adds to the previous WikiLeaks publications of the chapters for Intellectual Property Rights (November 2013) and the Environment (January 2014). The TPP Investment Chapter, published today, is dated 20 January 2015. The document is classified and supposed to be kept secret for four years after the entry into force of the TPP agreement or, if no agreement is reached, for four years from the close of the negotiations. Julian Assange, WikiLeaks editor said: "The TPP has developed in secret an unaccountable supranational court for multinationals to sue states. This system is a challenge to parliamentary and judicial sovereignty. Similar tribunals have already been shown to chill the adoption of sane environmental protection, public health and public transport policies." Current TPP negotiation member states are the United States, Japan, Mexico, Canada, Australia, Malaysia, Chile, Singapore, Peru, Vietnam, New Zealand and Brunei. The TPP is the largest economic treaty in history, including countries that represent more than 40 per cent of the world´s GDP.
  • The Investment Chapter highlights the intent of the TPP negotiating parties, led by the United States, to increase the power of global corporations by creating a supra-national court, or tribunal, where foreign firms can "sue" states and obtain taxpayer compensation for "expected future profits". These investor-state dispute settlement (ISDS) tribunals are designed to overrule the national court systems. ISDS tribunals introduce a mechanism by which multinational corporations can force governments to pay compensation if the tribunal states that a country's laws or policies affect the company's claimed future profits. In return, states hope that multinationals will invest more. Similar mechanisms have already been used. For example, US tobacco company Phillip Morris used one such tribunal to sue Australia (June 2011 – ongoing) for mandating plain packaging of tobacco products on public health grounds; and by the oil giant Chevron against Ecuador in an attempt to evade a multi-billion-dollar compensation ruling for polluting the environment. The threat of future lawsuits chilled environmental and other legislation in Canada after it was sued by pesticide companies in 2008/9. ISDS tribunals are often held in secret, have no appeal mechanism, do not subordinate themselves to human rights laws or the public interest, and have few means by which other affected parties can make representations. The TPP negotiations have been ongoing in secrecy for five years and are now in their final stages. In the United States the Obama administration plans to "fast-track" the treaty through Congress without the ability of elected officials to discuss or vote on individual measures. This has met growing opposition as a result of increased public scrutiny following WikiLeaks' earlier releases of documents from the negotiations.
  • The TPP is set to be the forerunner to an equally secret agreement between the US and EU, the TTIP (Transatlantic Trade and Investment Partnership). Negotiations for the TTIP were initiated by the Obama administration in January 2013. Combined, the TPP and TTIP will cover more than 60 per cent of global GDP. The third treaty of the same kind, also negotiated in secrecy is TISA, on trade in services, including the financial and health sectors. It covers 50 countries, including the US and all EU countries. WikiLeaks released the secret draft text of the TISA's financial annex in June 2014. All these agreements on so-called “free trade” are negotiated outside the World Trade Organization's (WTO) framework. Conspicuously absent from the countries involved in these agreements are the BRICs countries of Brazil, Russia, India and China. Read the Secret Trans-Pacific Partnership Agreement (TPP) - Investment chapter
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    The previously leaked chapter on copyrights makes clear that the TPP would be a disaster for a knowledge society. This chapter makes clear that only corprorations may compel arbitration; there is no corresponding right for human beings to do so. 
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The hidden cost of EU trade deals | Friends of the Earth Europe - 0 views

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    "This report compiles all publicly available data on investor-state dispute settlement cases taken against EU member states since 1994. It highlights the irrefutable attack on recent EU accession countries and the environment, as well as the cost this system has already had on EU taxpayers and European democracy."
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[hub] TTIP: Commission intends to place secret, corporate "Christmas list" of IPRs in t... - 1 views

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    "quotes the Commission and OHIM officials as they are advising on how to work against civil society and why it is good that the public is kept in the dark on negotiations"
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Is Apple an Illegal Monopoly? | OneZero - 0 views

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

  • 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.”
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    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..   
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Beijing Strikes Back in US-China Tech Wars | The Diplomat - 0 views

  • China’s new draft anti-terror legislation has sent waves across the U.S. tech community. If there is a brewing tech war between U.S. and China over government surveillance backdoors and a preference for indigenous software, China’s new draft terror law makes it clear that Beijing is happy to give the United States a taste of its own medicine. The law has already drawn considerable criticism from international human rights groups, including Amnesty International and Human Rights Watch for its purported attempts to legitimize wanton human rights violations in the name of counter-terrorism. Additionally, China has opted to implement its own definition of terrorism, placing  “any thought, speech, or activity that, by means of violence, sabotage, or threat, aims to generate social panic, influence national policy-making, create ethnic hatred, subvert state power, or split the state” under the umbrella of the overused T-word. The problematic human rights issues aside, the draft anti-terror law will have important implications for foreign tech firms within China. According to Reuters’ reporting on the draft anti-terror law, counter-terrorism precautions by the Chinese government would essentially require foreign firms to “hand over encryption keys and install security ‘backdoors’” into their software. Additionally, these firms would have to store critical data — certainly data on Chinese citizens and residents — on Chinese soil. The onerous implications of this law could have lead to an immediate freeze to the activities of several Western tech companies in China, the world’s second largest economy and a booming emerging market for new technologies.
  • On the surface, the most troublesome implication of this law is that in order to comply with this law, Western firms, including non-technical ventures such as financial institutions and manufacturers, will be forced to give up a great deal of security. In essence, corporate secrets, financial data — all critical data — would be insecure and available for access by Chinese regulators. The new law would also prohibit the use of secure virtual private networks (VPNs) to get around these requirements.
  • The U.S. diplomatic response to Beijing’s new draft law is perhaps best captured in the fact that a whopping four cabinet members in the Obama administration, including Secretary of State John Kerry and U.S. Trade Representative Michael Froman, wrote the Chinese government expressing “serious concern.” China, for its part, seemed unfazed by U.S. concerns. Foreign Ministry spokesperson Hua Chunying told the press that she hoped the United States would view the new anti-terror precautions in “in a calm and objective way.” Indeed, following Edward Snowden’s revelations regarding the extent of the United States’ surveillance of private firms both within and outside the United States, Beijing likely views U.S. concerns as hypocritical. One U.S. industry source told Reuters that the new law was ”the equivalent of the Patriot Act on really, really strong steroids.”
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