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Gary Edwards

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

  • The change in the law wrought by the Federal Circuit can also be viewed substantively through the controversy over software patents. Throughout the 1960s, the USPTO refused to award patents for software innovations. However, several of the USPTO’s decisions were overruled by the patent-friendly U.S. Court of Customs and Patent Appeals, which ordered that software patents be granted. In Gottschalk v. Benson (1972) and Parker v. Flook (1978), the U.S. Supreme Court reversed the Court of Customs and Patent Appeals, holding that mathematical algorithms (and therefore software) were not patentable subject matter. In 1981, in Diamond v. Diehr, the Supreme Court upheld a software patent on the grounds that the patent in question involved a physical process—the patent was issued for software used in the molding of rubber. While affirming their prior ruling that mathematical formulas are not patentable in the abstract, the Court held that an otherwise patentable invention did not become unpatentable simply because it utilized a computer.
  • In the hands of the newly established Federal Circuit, however, this small scope for software patents in precedent was sufficient to open the floodgates. In a series of decisions culminating in State Street Bank v. Signature Financial Group (1998), the Federal Circuit broadened the criteria for patentability of software and business methods substantially, allowing protection as long as the innovation “produces a useful, concrete and tangible result.” That broadened criteria led to an explosion of low-quality software patents, from Amazon’s 1-Click checkout system to Twitter’s pull-to-refresh feature on smartphones. The GAO estimates that more than half of all patents granted in recent years are software-related. Meanwhile, the Supreme Court continues to hold, as in Parker v. Flook, that computer software algorithms are not patentable, and has begun to push back against the Federal Circuit. In Bilski v. Kappos (2010), the Supreme Court once again held that abstract ideas are not patentable, and in Alice v. CLS (2014), it ruled that simply applying an abstract idea on a computer does not suffice to make the idea patent-eligible. It still is not clear what portion of existing software patents Alice invalidates, but it could be a significant one.
  • Supreme Court justices also recognize the Federal Circuit’s insubordination. In oral arguments in Carlsbad Technology v. HIF Bio (2009), Chief Justice John Roberts joked openly about it:
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  • The Opportunity of the Commons
  • As a result of the Federal Circuit’s pro-patent jurisprudence, our economy has been flooded with patents that would otherwise not have been granted. If more patents meant more innovation, then we would now be witnessing a spectacular economic boom. Instead, we have been living through what Tyler Cowen has called a Great Stagnation. The fact that patents have increased while growth has not is known in the literature as the “patent puzzle.” As Michele Boldrin and David Levine put it, “there is no empirical evidence that [patents] serve to increase innovation and productivity, unless productivity is identified with the number of patents awarded—which, as evidence shows, has no correlation with measured productivity.”
  • While more patents have not resulted in faster economic growth, they have resulted in more patent lawsuits.
  • Software patents have characteristics that make them particularly susceptible to litigation. Unlike, say, chemical patents, software patents are plagued by a problem of description. How does one describe a software innovation in such a way that anyone searching for it will easily find it? As Christina Mulligan and Tim Lee demonstrate, chemical formulas are indexable, meaning that as the number of chemical patents grow, it will still be easy to determine if a molecule has been patented. Since software innovations are not indexable, they estimate that “patent clearance by all firms would require many times more hours of legal research than all patent lawyers in the United States can bill in a year. The result has been an explosion of patent litigation.” Software and business method patents, estimate James Bessen and Michael Meurer, are 2 and 7 times more likely to be litigated than other patents, respectively (4 and 13 times more likely than chemical patents).
  • Software patents make excellent material for predatory litigation brought by what are often called “patent trolls.”
  • Trolls use asymmetries in the rules of litigation to legally extort millions of dollars from innocent parties. For example, one patent troll, Innovatio IP Ventures, LLP, acquired patents that implicated Wi-Fi. In 2011, it started sending demand letters to coffee shops and hotels that offered wireless Internet access, offering to settle for $2,500 per location. This amount was far in excess of the 9.56 cents per device that Innovatio was entitled to under the “Fair, Reasonable, and Non-Discriminatory” licensing promises attached to their portfolio, but it was also much less than the cost of trial, and therefore it was rational for firms to pay. Cisco stepped in and spent $13 million in legal fees on the case, and settled on behalf of their customers for 3.2 cents per device. Other manufacturers had already licensed Innovatio’s portfolio, but that didn’t stop their customers from being targeted by demand letters.
  • Litigation cost asymmetries are magnified by the fact that most patent trolls are nonpracticing entities. This means that when patent infringement trials get to the discovery phase, they will cost the troll very little—a firm that does not operate a business has very few records to produce.
  • But discovery can cost a medium or large company millions of dollars. Using an event study methodology, James Bessen and coauthors find that infringement lawsuits by nonpracticing entities cost publicly traded companies $83 billion per year in stock market capitalization, while plaintiffs gain less than 10 percent of that amount.
  • Software patents also reduce innovation in virtue of their cumulative nature and the fact that many of them are frequently inputs into a single product. Law professor Michael Heller coined the phrase “tragedy of the anticommons” to refer to a situation that mirrors the well-understood “tragedy of the commons.” Whereas in a commons, multiple parties have the right to use a resource but not to exclude others, in an anticommons, multiple parties have the right to exclude others, and no one is therefore able to make effective use of the resource. The tragedy of the commons results in overuse of the resource; the tragedy of the anticommons results in underuse.
  • In order to cope with the tragedy of the anticommons, we should carefully investigate the opportunity of  the commons. The late Nobelist Elinor Ostrom made a career of studying how communities manage shared resources without property rights. With appropriate self-governance institutions, Ostrom found again and again that a commons does not inevitably lead to tragedy—indeed, open access to shared resources can provide collective benefits that are not available under other forms of property management.
  • This suggests that—litigation costs aside—patent law could be reducing the stock of ideas rather than expanding it at current margins.
  • Advocates of extensive patent protection frequently treat the commons as a kind of wasteland. But considering the problems in our patent system, it is worth looking again at the role of well-tailored limits to property rights in some contexts. Just as we all benefit from real property rights that no longer extend to the highest heavens, we would also benefit if the scope of patent protection were more narrowly drawn.
  • Reforming the Patent System
  • This analysis raises some obvious possibilities for reforming the patent system. Diane Wood, Chief Judge of the 7th Circuit, has proposed ending the Federal Circuit’s exclusive jurisdiction over patent appeals—instead, the Federal Circuit could share jurisdiction with the other circuit courts. While this is a constructive suggestion, it still leaves the door open to the Federal Circuit playing “a leading role in shaping patent law,” which is the reason for its capture by patent interests. It would be better instead simply to abolish the Federal Circuit and return to the pre-1982 system, in which patents received no special treatment in appeals. This leaves open the possibility of circuit splits, which the creation of the Federal Circuit was designed to mitigate, but there are worse problems than circuit splits, and we now have them.
  • Another helpful reform would be for Congress to limit the scope of patentable subject matter via statute. New Zealand has done just that, declaring that software is “not an invention” to get around WTO obligations to respect intellectual property. Congress should do the same with respect to both software and business methods.
  • Finally, even if the above reforms were adopted, there would still be a need to address the asymmetries in patent litigation that result in predatory “troll” lawsuits. While the holding in Alice v. CLS arguably makes a wide swath of patents invalid, those patents could still be used in troll lawsuits because a ruling of invalidity for each individual patent might not occur until late in a trial. Current legislation in Congress addresses this class of problem by mandating disclosures, shifting fees in the case of spurious lawsuits, and enabling a review of the patent’s validity before a trial commences.
  • What matters for prosperity is not just property rights in the abstract, but good property-defining institutions. Without reform, our patent system will continue to favor special interests and forestall economic growth.
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    "Libertarians intuitively understand the case for patents: just as other property rights internalize the social benefits of improvements to land, automobile maintenance, or business investment, patents incentivize the creation of new inventions, which might otherwise be undersupplied. So far, so good. But it is important to recognize that the laws that govern property, intellectual or otherwise, do not arise out of thin air. Rather, our political institutions, with all their virtues and foibles, determine the contours of property-the exact bundle of rights that property holders possess, their extent, and their limitations. Outlining efficient property laws is not a trivial problem. The optimal contours of property are neither immutable nor knowable a priori. For example, in 1946, the U.S. Supreme Court reversed the age-old common law doctrine that extended real property rights to the heavens without limit. The advent of air travel made such extensive property rights no longer practicable-airlines would have had to cobble together a patchwork of easements, acre by acre, for every corridor through which they flew, and they would have opened themselves up to lawsuits every time their planes deviated from the expected path. The Court rightly abridged property rights in light of these empirical realities. In defining the limits of patent rights, our political institutions have gotten an analogous question badly wrong. A single, politically captured circuit court with exclusive jurisdiction over patent appeals has consistently expanded the scope of patentable subject matter. This expansion has resulted in an explosion of both patents and patent litigation, with destructive consequences. "
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    I added a comment to the page's article. Patents are antithetical to the precepts of Libertarianism and do not involve Natural Law rights. But I agree with the author that the Court of Appeals for the Federal Circuit should be abolished. It's a failed experiment.
Gonzalo San Gil, PhD.

Chile's New Copyright Legislation Would Make Creative Commons Licensing Impossible For ... - 0 views

    • Gonzalo San Gil, PhD.
       
      # ! Copyright to stiffle the right to creation... ()# ! Think that, in fact, every work is always a 'derivative' work...( :/
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    "Techdirt has written many times about the way in which copyright only ever seems to get stronger, and how different jurisdictions point to other examples of excessive copyright to justify making their own just as bad. In Chile, there's an interesting example of that kind of copyright ratchet being applied in the same country but to different domains. It concerns audiovisual works, and aims to give directors, screenwriters and others new rights to "match" those that others enjoy"
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    "Techdirt has written many times about the way in which copyright only ever seems to get stronger, and how different jurisdictions point to other examples of excessive copyright to justify making their own just as bad. In Chile, there's an interesting example of that kind of copyright ratchet being applied in the same country but to different domains. It concerns audiovisual works, and aims to give directors, screenwriters and others new rights to "match" those that others enjoy"
Gonzalo San Gil, PhD.

The Universal Declaration of Human Rights - 3 views

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    [PREAMBLE Whereas recognition of the inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world, Whereas disregard and contempt for human rights have resulted in barbarous acts which have outraged the conscience of mankind, and the advent of a world in which human beings shall enjoy freedom of speech and belief and freedom from fear and want has been proclaimed as the highest aspiration of the common people, Whereas it is essential, if man is not to be compelled to have recourse, as a last resort, to rebellion against tyranny and oppression, that human rights should be protected by the rule of law, Whereas it is essential to promote the development of friendly relations between nations, Whereas the peoples of the United Nations have in the Charter reaffirmed their faith in fundamental human rights, in the dignity and worth of the human person and in the equal rights of men and women and have determined to promote social progress and better standards of life in larger freedom, Whereas Member States have pledged themselves to achieve, in co-operation with the United Nations, the promotion of universal respect for and observance of human rights and fundamental freedoms, Whereas a common understanding of these rights and freedoms is of the greatest importance for the full realization of this pledge, Now, Therefore THE GENERAL ASSEMBLY proclaims THIS UNIVERSAL DECLARATION OF HUMAN RIGHTS as a common standard of achievement for all peoples and all nations, to the end that every individual and every organ of society, keeping this Declaration constantly in mind, shall strive by teaching and education to promote respect for these rights and freedoms and by progressive measures, national and international, to secure their universal and effective recognition and observance, both among the peoples of Member States themselves and among the peoples of territories
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    The Declaration is an important document but only aspirational in nature. It was hamstrung from the beginning by omission of mandated procedures by which an aggrieved person could seek its enforcement or protection.
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    Oh.. of course, Paul. This is Just a Reminder... ... of the other ways to do the things... For Every@ne. Perhaps One Day... :)
Paul Merrell

Privacy Shield Program Overview | Privacy Shield - 0 views

  • EU-U.S. Privacy Shield Program Overview The EU-U.S. Privacy Shield Framework was designed by the U.S. Department of Commerce and European Commission to provide companies on both sides of the Atlantic with a mechanism to comply with EU data protection requirements when transferring personal data from the European Union to the United States in support of transatlantic commerce. On July 12, the European Commission deemed the Privacy Shield Framework adequate to enable data transfers under EU law (see the adequacy determination). The Privacy Shield program, which is administered by the International Trade Administration (ITA) within the U.S. Department of Commerce, enables U.S.-based organizations to join the Privacy Shield Framework in order to benefit from the adequacy determination. To join the Privacy Shield Framework, a U.S.-based organization will be required to self-certify to the Department of Commerce (via this website) and publicly commit to comply with the Framework’s requirements. While joining the Privacy Shield Framework is voluntary, once an eligible organization makes the public commitment to comply with the Framework’s requirements, the commitment will become enforceable under U.S. law. All organizations interested in joining the Privacy Shield Framework should review its requirements in their entirety. To assist in that effort, Commerce’s Privacy Shield Team has compiled resources and addressed frequently asked questions below. ResourcesKey New Requirements for Participating Organizations How to Join the Privacy ShieldPrivacy Policy FAQs Frequently Asked Questions
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    I got a notice from Dropbox tonight that it is now certified under this program. This program is fallout from an E.U. Court of Justice decision following the Snowden disclosures, holding that the then existing U.S.-E.U. framework for ptoecting the rights of E.U. citozens' data were invalid because that framework did not adequately protect digital privacy rights. This new framework is intended to comoply with the court's decision but one need only look at section 5 of the agreement to see that it does not. Expect follow-on litigation. THe agreement is at https://www.privacyshield.gov/servlet/servlet.FileDownload?file=015t00000004qAg Section 5 lets NSA continue to intercept and read data from E.U. citizens and also allows their data to be disclosed to U.S. law enforcement. And the agreement adds nothing to U.S. citizens' digital privacy rights. In my view, this framework is a stopgap measure that will only last as long as it takes for another case to reach the Court of Justice and be ruled upon. The ox that got gored by the Court of Justice ruling was U.S. company's ability to store E.U. citizens' data outside the E.U. and to allow internet traffic from the E.U. to pass through the U.S. Microsoft had leadership that set up new server farms in Europe under the control of a business entity beyond the jurisdiction of U.S. courts. Other I/.S. internet biggies didn't follow suit. This framework is their lifeline until the next ruling by the Court of Justice.
Paul Merrell

US pushing local cops to stay mum on surveillance - Yahoo News - 0 views

  • 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.
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  • Local police agencies have been denying access to records about this surveillance equipment under state public records laws. Agencies in San Diego, Chicago and Oakland County, Michigan, for instance, declined to tell the AP what devices they purchased, how much they cost and with whom they shared information. San Diego police released a heavily censored purchasing document. Oakland officials said police-secrecy exemptions and attorney-client privilege keep their hands tied. It was unclear whether the Obama administration interfered in the AP requests. "It's troubling to think the FBI can just trump the state's open records law," said Ginger McCall, director of the open government project at the Electronic Privacy Information Center. McCall suspects the surveillance would not pass constitutional muster. "The vast amount of information it sweeps in is totally irrelevant to the investigation," she said.
  • A court case challenging the public release of information from the Tucson Police Department includes an affidavit from an FBI special agent, Bradley Morrison, who said the disclosure would "result in the FBI's inability to protect the public from terrorism and other criminal activity because through public disclosures, this technology has been rendered essentially useless for future investigations." Morrison said revealing any information about the technology would violate a federal homeland security law about information-sharing and arms-control laws — legal arguments that that outside lawyers and transparency experts said are specious and don't comport with court cases on the U.S. Freedom of Information Act. The FBI did not answer questions about its role in states' open records proceedings.
  • But a former Justice Department official said the federal government should be making this argument in federal court, not a state level where different public records laws apply. "The federal government appears to be attempting to assert a federal interest in the information being sought, but it's going about it the wrong way," said Dan Metcalfe, the former director of the Justice Department's office of information and privacy. Currently Metcalfe is the executive director of American University's law school Collaboration on Government Secrecy project. A criminal case in Tallahassee cites the same homeland security laws in Morrison's affidavit, court records show, and prosecutors told the court they consulted with the FBI to keep portions of a transcript sealed. That transcript, released earlier this month, revealed that Stingrays "force" cellphones to register their location and identifying information with the police device and enables officers to track calls whenever the phone is on.
  • One law enforcement official familiar with the Tucson lawsuit, who spoke on condition of anonymity because the official was not authorized to speak about internal discussions, said federal lawyers told Tucson police they couldn't hand over a PowerPoint presentation made by local officers about how to operate the Stingray device. Federal officials forwarded Morrison's affidavit for use in the Tucson police department's reply to the lawsuit, rather than requesting the case be moved to federal court. In Sarasota, Florida, the U.S. Marshals Service confiscated local records on the use of the surveillance equipment, removing the documents from the reach of Florida's expansive open-records law after the ACLU asked under Florida law to see the documents. The ACLU has asked a judge to intervene. The Marshals Service said it deputized the officer as a federal agent and therefore the records weren't accessible under Florida law.
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    The Florida case is particularly interesting because Florida is within the jurisdiction of the U.S. Eleventh Circuit Court of Appeals, which has just ruled that law enforcement must obtain a search warrant from a court before using equipment to determine a cell phone's location.  
Paul Merrell

UN Report Finds Mass Surveillance Violates International Treaties and Privacy Rights - ... - 0 views

  • The United Nations’ top official for counter-terrorism and human rights (known as the “Special Rapporteur”) issued a formal report to the U.N. General Assembly today that condemns mass electronic surveillance as a clear violation of core privacy rights guaranteed by multiple treaties and conventions. “The hard truth is that the use of mass surveillance technology effectively does away with the right to privacy of communications on the Internet altogether,” the report concluded. Central to the Rapporteur’s findings is the distinction between “targeted surveillance” — which “depend[s] upon the existence of prior suspicion of the targeted individual or organization” — and “mass surveillance,” whereby “states with high levels of Internet penetration can [] gain access to the telephone and e-mail content of an effectively unlimited number of users and maintain an overview of Internet activity associated with particular websites.” In a system of “mass surveillance,” the report explained, “all of this is possible without any prior suspicion related to a specific individual or organization. The communications of literally every Internet user are potentially open for inspection by intelligence and law enforcement agencies in the States concerned.”
  • Mass surveillance thus “amounts to a systematic interference with the right to respect for the privacy of communications,” it declared. As a result, “it is incompatible with existing concepts of privacy for States to collect all communications or metadata all the time indiscriminately.” In concluding that mass surveillance impinges core privacy rights, the report was primarily focused on the International Covenant on Civil and Political Rights, a treaty enacted by the General Assembly in 1966, to which all of the members of the “Five Eyes” alliance are signatories. The U.S. ratified the treaty in 1992, albeit with various reservations that allowed for the continuation of the death penalty and which rendered its domestic law supreme. With the exception of the U.S.’s Persian Gulf allies (Saudi Arabia, UAE and Qatar), virtually every major country has signed the treaty. Article 17 of the Covenant guarantees the right of privacy, the defining protection of which, the report explained, is “that individuals have the right to share information and ideas with one another without interference by the State, secure in the knowledge that their communication will reach and be read by the intended recipients alone.”
  • The report’s key conclusion is that this core right is impinged by mass surveillance programs: “Bulk access technology is indiscriminately corrosive of online privacy and impinges on the very essence of the right guaranteed by article 17. In the absence of a formal derogation from States’ obligations under the Covenant, these programs pose a direct and ongoing challenge to an established norm of international law.” The report recognized that protecting citizens from terrorism attacks is a vital duty of every state, and that the right of privacy is not absolute, as it can be compromised when doing so is “necessary” to serve “compelling” purposes. It noted: “There may be a compelling counter-terrorism justification for the radical re-evaluation of Internet privacy rights that these practices necessitate. ” But the report was adamant that no such justifications have ever been demonstrated by any member state using mass surveillance: “The States engaging in mass surveillance have so far failed to provide a detailed and evidence-based public justification for its necessity, and almost no States have enacted explicit domestic legislation to authorize its use.”
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  • Instead, explained the Rapporteur, states have relied on vague claims whose validity cannot be assessed because of the secrecy behind which these programs are hidden: “The arguments in favor of a complete abrogation of the right to privacy on the Internet have not been made publicly by the States concerned or subjected to informed scrutiny and debate.” About the ongoing secrecy surrounding the programs, the report explained that “states deploying this technology retain a monopoly of information about its impact,” which is “a form of conceptual censorship … that precludes informed debate.” A June report from the High Commissioner for Human Rights similarly noted “the disturbing lack of governmental transparency associated with surveillance policies, laws and practices, which hinders any effort to assess their coherence with international human rights law and to ensure accountability.” The rejection of the “terrorism” justification for mass surveillance as devoid of evidence echoes virtually every other formal investigation into these programs. A federal judge last December found that the U.S. Government was unable to “cite a single case in which analysis of the NSA’s bulk metadata collection actually stopped an imminent terrorist attack.” Later that month, President Obama’s own Review Group on Intelligence and Communications Technologies concluded that mass surveillance “was not essential to preventing attacks” and information used to detect plots “could readily have been obtained in a timely manner using conventional [court] orders.”
  • That principle — that the right of internet privacy belongs to all individuals, not just Americans — was invoked by NSA whistleblower Edward Snowden when he explained in a June, 2013 interview at The Guardian why he disclosed documents showing global surveillance rather than just the surveillance of Americans: “More fundamentally, the ‘US Persons’ protection in general is a distraction from the power and danger of this system. Suspicionless surveillance does not become okay simply because it’s only victimizing 95% of the world instead of 100%.” The U.N. Rapporteur was clear that these systematic privacy violations are the result of a union between governments and tech corporations: “States increasingly rely on the private sector to facilitate digital surveillance. This is not confined to the enactment of mandatory data retention legislation. Corporates [sic] have also been directly complicit in operationalizing bulk access technology through the design of communications infrastructure that facilitates mass surveillance. ”
  • The report was most scathing in its rejection of a key argument often made by American defenders of the NSA: that mass surveillance is justified because Americans are given special protections (the requirement of a FISA court order for targeted surveillance) which non-Americans (95% of the world) do not enjoy. Not only does this scheme fail to render mass surveillance legal, but it itself constitutes a separate violation of international treaties (emphasis added): The Special Rapporteur concurs with the High Commissioner for Human Rights that where States penetrate infrastructure located outside their territorial jurisdiction, they remain bound by their obligations under the Covenant. Moreover, article 26 of the Covenant prohibits discrimination on grounds of, inter alia, nationality and citizenship. The Special Rapporteur thus considers that States are legally obliged to afford the same privacy protection for nationals and non-nationals and for those within and outside their jurisdiction. Asymmetrical privacy protection regimes are a clear violation of the requirements of the Covenant.
  • Three Democratic Senators on the Senate Intelligence Committee wrote in The New York Times that “the usefulness of the bulk collection program has been greatly exaggerated” and “we have yet to see any proof that it provides real, unique value in protecting national security.” A study by the centrist New America Foundation found that mass metadata collection “has had no discernible impact on preventing acts of terrorism” and, where plots were disrupted, “traditional law enforcement and investigative methods provided the tip or evidence to initiate the case.” It labeled the NSA’s claims to the contrary as “overblown and even misleading.” While worthless in counter-terrorism policies, the UN report warned that allowing mass surveillance to persist with no transparency creates “an ever present danger of ‘purpose creep,’ by which measures justified on counter-terrorism grounds are made available for use by public authorities for much less weighty public interest purposes.” Citing the UK as one example, the report warned that, already, “a wide range of public bodies have access to communications data, for a wide variety of purposes, often without judicial authorization or meaningful independent oversight.”
  • The latest finding adds to the growing number of international formal rulings that the mass surveillance programs of the U.S. and its partners are illegal. In January, the European parliament’s civil liberties committee condemned such programs in “the strongest possible terms.” In April, the European Court of Justice ruled that European legislation on data retention contravened EU privacy rights. A top secret memo from the GCHQ, published last year by The Guardian, explicitly stated that one key reason for concealing these programs was fear of a “damaging public debate” and specifically “legal challenges against the current regime.” The report ended with a call for far greater transparency along with new protections for privacy in the digital age. Continuation of the status quo, it warned, imposes “a risk that systematic interference with the security of digital communications will continue to proliferate without any serious consideration being given to the implications of the wholesale abandonment of the right to online privacy.” The urgency of these reforms is underscored, explained the Rapporteur, by a conclusion of the United States Privacy and Civil Liberties Oversight Board that “permitting the government to routinely collect the calling records of the entire nation fundamentally shifts the balance of power between the state and its citizens.”
Paul Merrell

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..   
Gonzalo San Gil, PhD.

Robert McDowell: The U.N. Threat to Internet Freedom - WSJ.com - 5 views

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    [Top-down, international regulation is antithetical to the Net, which has flourished under its current governance model. ...]
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    Trying to fix what ain't broken ...
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    I wish it were a matter to "fix" anything... The issue is trying to Control something that comes working fine without such 'control'...
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    You're right. The desire to censor is the real driving force here, I think.
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    A further thought: There is binding and enforceable international law on the subject of freedom of speech and access to information in a treaty that has been ratified by all nations other than China, which has signed but not yet ratified the treaty. That treaty's terms might provide a rallying point for at least limiting the ITU's desire to grab power over the Internet. The International Covenant on Civil and Political Rights ("ICCRR") Article 19 provides: "1. Everyone shall have the right to hold opinions without interference. "2. Everyone shall have the right to freedom of expression; this right shall include freedom to seek, receive and impart information and ideas of all kinds, regardless of frontiers, either orally, in writing or in print, in the form of art, or through any other media of his choice. "3. The exercise of the rights provided for in paragraph 2 of this article carries with it special duties and responsibilities. It may therefore be subject to certain restrictions, but these shall only be such as are provided by law and are necessary: (a) For respect of the rights or reputations of others; (b) For the protection of national security or of public order (ordre public), or of public health or morals." http://www2.ohchr.org/english/law/ccpr.htm The last exception is broader than what I would prefer. However, while the rights created by by the ICCRR transcend national boundaries, the quoted provision unquestionably stands for the proposition that exception (b) applies only to nations and not to a U.N. body itself. Therefore, there is a very strong argument that content-based both content-based restrictions and changes in the internet's functioning to facilitate such restrictions are beyond the legal jurisdiction of the ITU. I.e., changes in the internet's functioning to facilitate content-based restrictions require consideration of the content types to be restricted. The treaty permits only national level restrictions and arguably, it thereb
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    *Oh, we got -even from before- The Art 27 of The THE UNIVERSAL DECLARATION OF HUMAN RIGHTS https://www.un.org/en/documents/udhr/index.shtml#a27 [(1) Everyone has the right freely to participate in the cultural life of the community, to enjoy the arts and to share in scientific advancement and its benefits. ...] And, as 'NOBODY' (Repeat 'NOBODY') has demonstrated that sharing affects negatively to creators (more yet, all the contrary), saying that SHARING (in any way the technology allows) is an EXCELLENT way to "participate in the cultural life of the community, to enjoy the arts and to share in scientific advancement and its benefits." is The Ultimate Truth. http://www.p2pnet.net/story/7566 *'Authorities only want to control the Information Flow... ...Nothing related with the "Defence" of Anything... but their own craving of control.
Paul Merrell

Google, ACLU call to delay government hacking rule | TheHill - 0 views

  • A coalition of 26 organizations, including the American Civil Liberties Union (ACLU) and Google, signed a letter Monday asking lawmakers to delay a measure that would expand the government’s hacking authority. The letter asks Senate Majority Leader Mitch McConnellMitch McConnellTrump voices confidence on infrastructure plan GOP leaders to Obama: Leave Iran policy to Trump GOP debates going big on tax reform MORE (R-Ky.) and Minority Leader Harry ReidHarry ReidNevada can’t trust Trump to protect public lands Sanders, Warren face tough decision on Trump Google, ACLU call to delay government hacking rule MORE (D-Nev.), plus House Speaker Paul RyanPaul RyanTrump voices confidence on infrastructure plan GOP leaders to Obama: Leave Iran policy to Trump GOP debates going big on tax reform MORE (R-Wis.), and House Minority Leader Nancy Pelosi (D-Calif.) to further review proposed changes to Rule 41 and delay its implementation until July 1, 2017. ADVERTISEMENTThe Department of Justice’s alterations to the rule would allow law enforcement to use a single warrant to hack multiple devices beyond the jurisdiction that the warrant was issued in. The FBI used such a tactic to apprehend users of the child pornography dark website, Playpen. It took control of the dark website for two weeks and after securing two warrants, installed malware on Playpen users computers to acquire their identities. But the signatories of the letter — which include advocacy groups, companies and trade associations — are raising questions about the effects of the change. 
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    ".. no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." Fourth Amendment. The changes to Rule 41 ignore the particularity requirement by allowing the government to search computers that are not particularly identified in multiple locations not particularly identifed, in other words, a general warrant that is precisely the reason the particularity requirement was adopted to outlaw.
Paul Merrell

Civil Rights Groups, Funded by Telecoms, Back Donald Trump's Plan to Kill Net Neutrality - 0 views

  • Leading civil rights groups who for many years have been heavily bankrolled by the telecom industry are signaling their support for Donald Trump’s promised rollback of the Obama administration’s net neutrality rules, which prevent internet service providers from prioritizing some content providers over others. The Obama administration’s Federal Communications Commission established net neutrality by reclassifying high-speed internet as a regulated phone-like telecommunications service, as opposed to a mostly unregulated information service. The re-classification was cheered by advocates for a free and open internet. But now Trump’s new FCC Chairman Ajit Pai, a former Verizon attorney, is pushing to repeal the net neutrality reform by rolling back that re-classification — and he’s getting help not only from a legion of telecom lobbyists, but from civil rights groups. In a little-noticed joint letter released last week, the NAACP, Asian Americans Advancing Justice, OCA (formerly known as the Organization for Chinese Americans), the National Urban League, and other civil rights organizations sharply criticized the “jurisdictional and classification problems that plagued the last FCC” — a reference to the legal mechanism used by the Obama administration to accomplish net neutrality. Instead of classifying broadband as a public utility, the letter states, open internet rules should be written by statute. What does that mean? It means the Republican-led Congress should take control of the process — the precise approach that is favored by industry.
Paul Merrell

US websites should inform EU citizens about NSA surveillance, says report - 0 views

  • All existing data sharing agreements between Europe and the US should be revoked, and US web site providers should prominently inform European citizens that their data may be subject to government surveillance, according to the recommendations of a briefing report for the European Parliament. The report was produced in response to revelations about the US National Security Agency (NSA) snooping on internet traffic, and aims to highlight the subsequent effect on European Union (EU) citizens' rights.
  • The report warns that EU data protection authorities have failed to understand the “structural shift of data sovereignty implied by cloud computing”, and the associated risks to the rights of EU citizens. It suggests “a full industrial policy for development of an autonomous European cloud computing capacity” should be set up to reduce exposure of EU data to NSA surveillance that is undertaken by the use of US legislation that forces US-based cloud providers to provide access to data they hold.
  • To put pressure on the US government, the report recommends that US websites should ask EU citizens for their consent before gathering data that could be used by the NSA. “Prominent notices should be displayed by every US web site offering services in the EU to inform consent to collect data from EU citizens. The users should be made aware that the data may be subject to surveillance by the US government for any purpose which furthers US foreign policy,” it said. “A consent requirement will raise EU citizen awareness and favour growth of services solely within EU jurisdiction. This will thus have economic impact on US business and increase pressure on the US government to reach a settlement.”
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  • Other recommendations include the EU offering protection and rewards for whistleblowers, including “strong guarantees of immunity and asylum”. Such a move would be seen as a direct response to the plight of Edward Snowden, the former NSA analyst who leaked documents that revealed the extent of the NSA’s global internet surveillance programmes. The report also says that, “Encryption is futile to defend against NSA accessing data processed by US clouds,” and that there is “no technical solution to the problem”. It calls for the EU to press for changes to US law.
  • “It seems that the only solution which can be trusted to resolve the Prism affair must involve changes to the law of the US, and this should be the strategic objective of the EU,” it said. The report was produced for the European Parliament committee on civil liberties, justice and home affairs, and comes before the latest hearing of an inquiry into electronic mass surveillance of EU citizens, due to take place in Brussels on 24 September.
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    Yee-haw! E.U. sanctuary and rewards for NSA whistle-blowers. Mandatory warnings for customers of U.S. cloud services that their data may be turned over to the NSA. Pouring more gasoline on the NSA diplomatic fire. 
Paul Merrell

Exclusive: Inside America's Plan to Kill Online Privacy Rights Everywhere | The Cable - 0 views

  • The United States and its key intelligence allies are quietly working behind the scenes to kneecap a mounting movement in the United Nations to promote a universal human right to online privacy, according to diplomatic sources and an internal American government document obtained by The Cable. The diplomatic battle is playing out in an obscure U.N. General Assembly committee that is considering a proposal by Brazil and Germany to place constraints on unchecked internet surveillance by the National Security Agency and other foreign intelligence services. American representatives have made it clear that they won't tolerate such checks on their global surveillance network. The stakes are high, particularly in Washington -- which is seeking to contain an international backlash against NSA spying -- and in Brasilia, where Brazilian President Dilma Roussef is personally involved in monitoring the U.N. negotiations.
  • The Brazilian and German initiative seeks to apply the right to privacy, which is enshrined in the International Covenant on Civil and Political Rights (ICCPR), to online communications. Their proposal, first revealed by The Cable, affirms a "right to privacy that is not to be subjected to arbitrary or unlawful interference with their privacy, family, home, or correspondence." It notes that while public safety may "justify the gathering and protection of certain sensitive information," nations "must ensure full compliance" with international human rights laws. A final version the text is scheduled to be presented to U.N. members on Wednesday evening and the resolution is expected to be adopted next week. A draft of the resolution, which was obtained by The Cable, calls on states to "to respect and protect the right to privacy," asserting that the "same rights that people have offline must also be protected online, including the right to privacy." It also requests the U.N. high commissioner for human rights, Navi Pillay, present the U.N. General Assembly next year with a report on the protection and promotion of the right to privacy, a provision that will ensure the issue remains on the front burner.
  • Publicly, U.S. representatives say they're open to an affirmation of privacy rights. "The United States takes very seriously our international legal obligations, including those under the International Covenant on Civil and Political Rights," Kurtis Cooper, a spokesman for the U.S. mission to the United Nations, said in an email. "We have been actively and constructively negotiating to ensure that the resolution promotes human rights and is consistent with those obligations." But privately, American diplomats are pushing hard to kill a provision of the Brazilian and German draft which states that "extraterritorial surveillance" and mass interception of communications, personal information, and metadata may constitute a violation of human rights. The United States and its allies, according to diplomats, outside observers, and documents, contend that the Covenant on Civil and Political Rights does not apply to foreign espionage.
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  • n recent days, the United States circulated to its allies a confidential paper highlighting American objectives in the negotiations, "Right to Privacy in the Digital Age -- U.S. Redlines." It calls for changing the Brazilian and German text so "that references to privacy rights are referring explicitly to States' obligations under ICCPR and remove suggestion that such obligations apply extraterritorially." In other words: America wants to make sure it preserves the right to spy overseas. The U.S. paper also calls on governments to promote amendments that would weaken Brazil's and Germany's contention that some "highly intrusive" acts of online espionage may constitute a violation of freedom of expression. Instead, the United States wants to limit the focus to illegal surveillance -- which the American government claims it never, ever does. Collecting information on tens of millions of people around the world is perfectly acceptable, the Obama administration has repeatedly said. It's authorized by U.S. statute, overseen by Congress, and approved by American courts.
  • "Recall that the USG's [U.S. government's] collection activities that have been disclosed are lawful collections done in a manner protective of privacy rights," the paper states. "So a paragraph expressing concern about illegal surveillance is one with which we would agree." The privacy resolution, like most General Assembly decisions, is neither legally binding nor enforceable by any international court. But international lawyers say it is important because it creates the basis for an international consensus -- referred to as "soft law" -- that over time will make it harder and harder for the United States to argue that its mass collection of foreigners' data is lawful and in conformity with human rights norms. "They want to be able to say ‘we haven't broken the law, we're not breaking the law, and we won't break the law,'" said Dinah PoKempner, the general counsel for Human Rights Watch, who has been tracking the negotiations. The United States, she added, wants to be able to maintain that "we have the freedom to scoop up anything we want through the massive surveillance of foreigners because we have no legal obligations."
  • The United States negotiators have been pressing their case behind the scenes, raising concerns that the assertion of extraterritorial human rights could constrain America's effort to go after international terrorists. But Washington has remained relatively muted about their concerns in the U.N. negotiating sessions. According to one diplomat, "the United States has been very much in the backseat," leaving it to its allies, Australia, Britain, and Canada, to take the lead. There is no extraterritorial obligation on states "to comply with human rights," explained one diplomat who supports the U.S. position. "The obligation is on states to uphold the human rights of citizens within their territory and areas of their jurisdictions."
  • The position, according to Jamil Dakwar, the director of the American Civil Liberties Union's Human Rights Program, has little international backing. The International Court of Justice, the U.N. Human Rights Committee, and the European Court have all asserted that states do have an obligation to comply with human rights laws beyond their own borders, he noted. "Governments do have obligation beyond their territories," said Dakwar, particularly in situations, like the Guantanamo Bay detention center, where the United States exercises "effective control" over the lives of the detainees. Both PoKempner and Dakwar suggested that courts may also judge that the U.S. dominance of the Internet places special legal obligations on it to ensure the protection of users' human rights.
  • "It's clear that when the United States is conducting surveillance, these decisions and operations start in the United States, the servers are at NSA headquarters, and the capabilities are mainly in the United States," he said. "To argue that they have no human rights obligations overseas is dangerous because it sends a message that there is void in terms of human rights protection outside countries territory. It's going back to the idea that you can create a legal black hole where there is no applicable law." There were signs emerging on Wednesday that America may have been making ground in pressing the Brazilians and Germans to back on one of its toughest provisions. In an effort to address the concerns of the U.S. and its allies, Brazil and Germany agreed to soften the language suggesting that mass surveillance may constitute a violation of human rights. Instead, it simply deep "concern at the negative impact" that extraterritorial surveillance "may have on the exercise of and enjoyment of human rights." The U.S., however, has not yet indicated it would support the revised proposal.
  • The concession "is regrettable. But it’s not the end of the battle by any means," said Human Rights Watch’s PoKempner. She added that there will soon be another opportunity to corral America's spies: a U.N. discussion on possible human rights violations as a result of extraterritorial surveillance will soon be taken up by the U.N. High commissioner.
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    Woo-hoo! Go get'em, U.N.
Paul Merrell

EFF to Court: U.S. Warrants Don't Apply to Overseas Emails | Electronic Frontier Founda... - 0 views

  • The Electronic Frontier Foundation (EFF) has urged a federal court to block a U.S. search warrant ordering Microsoft to turn over a customer's emails held in an overseas server, arguing that the case has dangerous privacy implications for Internet users everywhere. The case started in December of last year, when a magistrate judge in New York signed a search warrant seeking records and emails from a Microsoft account in connection with a criminal investigation. However, Microsoft determined that the emails the government sought were on a Microsoft server in Dublin, Ireland. Because a U.S. judge has no authority to issue warrants to search and seize property or data abroad, Microsoft refused to turn over the emails and asked the magistrate to quash the warrant. But the magistrate denied Microsoft's request, ruling there was no foreign search because the data would be reviewed by law enforcement agents in the U.S.
  • Microsoft appealed the decision. In an amicus brief in support of Microsoft, EFF argues the magistrate's rationale ignores the fact that copying the emails is a "seizure" that takes place in Ireland. "The Fourth Amendment protects from unreasonable search and seizure. You can't ignore the 'seizure' part just because the property is digital and not physical," said EFF Staff Attorney Hanni Fakhoury. "Ignoring this basic point has dangerous implications – it could open the door to unfounded law enforcement access to and collection of data stored around the world."
  • For the full brief in this case:https://www.eff.org/document/eff-amicus-brief-support-microsoft
Paul Merrell

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

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

Challenge to data transfer tool used by Facebook will go to Europe's top court | TechCr... - 1 views

  • The five-week court hearing in what is a complex case delving into detail on US surveillance operations took place in February. The court issued its ruling today. The 153-page ruling starts by noting “this is an unusual case”, before going into a detailed discussion of the arguments and concluding that the DPC’s concerns about the validity of SCCs should be referred to the European Court of Justice for a preliminary ruling. Schrems is also the man responsible for bringing, in 2013, a legal challenge that ultimately struck down Safe Harbor — the legal mechanism that had oiled the pipe for EU-US personal data flows for fifteen years before the ECJ ruled it to be invalid in October 2015. Schrems’ argument had centered on U.S. government mass surveillance programs, as disclosed via the Snowden leaks, being incompatible with fundamental European privacy rights. After the ECJ struck down Safe Harbor he then sought to apply the same arguments against Facebook’s use of SCCs — returning to Ireland to make the complaint as that’s where the company has its European HQ. It’s worth noting that the European Commission has since replaced Safe Harbor with a new (and it claims more robust) data transfer mechanism, called the EU-US Privacy Shield — which is now, as Safe Harbor was, used by thousands of businesses. Although that too is facing legal challenges as critics continue to argue there is a core problem of incompatibility between two distinct legal regimes where EU privacy rights collide with US mass surveillance.
  • In a written statement on the ruling Schrems added: “I welcome the judgement by the Irish High Court. It is important that a neutral Court outside of the US has summarized the facts on US surveillance in a judgement, after diving through more than 45,000 pages of documents in a five week hearing.
  • Making a video statement outside court in Dublin today, Schrems said the Irish court had dismissed Facebook’s argument that the US government does not undertake any surveillance.
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  • Schrems’ Safe Harbor challenge also started in the Irish Court before being ultimately referred to the ECJ. So there’s more than a little legal deja vu here, especially given the latest development in the case. In its ruling on the SCC issue, the Irish Court noted that a US ombudsperson position created under Privacy Shield to handle EU citizens complaints about companies’ handling of their data is not enough to overcome what it described as “well founded concerns” raised by the DPC regarding the adequacy of the protections for EU citizens data.
  • On Facebook, he also said: “In simple terms, US law requires Facebook to help the NSA with mass surveillance and EU law prohibits just that. As Facebook is subject to both jurisdictions, they got themselves in a legal dilemma that they cannot possibly solve in the long run.”
  • While Schrems’ original complaint pertained to Facebook, the Irish DPC’s position means many more companies that use the mechanism could face disruption if SCCs are ultimately invalidated as a result of the legal challenge to their validity.
Paul Merrell

Dept. of Justice Accuses Google of Illegally Protecting Monopoly - The New York Times - 1 views

  • 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.
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  • Google last faced serious scrutiny from an American antitrust regulator nearly a decade ago, when the Federal Trade Commission investigated whether it had abused its power over the search market. The agency’s staff recommended bringing charges against the company, according to a memo reported on by The Wall Street Journal. But the agency’s five commissioners voted in 2013 not to bring a case.Other governments have been more aggressive toward the big tech companies. The European Union has brought three antitrust cases against Google in recent years, focused on its search engine, advertising business and Android mobile operating system. Regulators in Britain and Australia are examining the digital advertising market, in inquiries that could ultimately implicate the company.“It’s the most newsworthy monopolization action brought by the government since the Microsoft case in the late ’90s,” said Bill Baer, a former chief of the Justice Department’s antitrust division. “It’s significant in that the government believes that a highly successful tech platform has engaged in conduct that maintains its monopoly power unlawfully, and as a result injures consumers and competition.”
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