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Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • The Commission found that Intel engaged in two specific forms of illegal practice. First, Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel. Intel also made direct payments to a major retailer on condition it stock only computers with Intel x86 CPUs. Such rebates and payments effectively prevented customers - and ultimately consumers - from choosing alternative products. Second, Intel made direct payments to computer manufacturers to halt or delay the launch of specific products containing competitors’ x86 CPUs and to limit the sales channels available to these products.
  • Intel awarded major computer manufacturers rebates on condition that they purchased all or almost all of their supplies, at least in certain defined segments, from Intel: Intel gave rebates to computer manufacturer A from December 2002 to December 2005 conditional on this manufacturer purchasing exclusively Intel CPUs Intel gave rebates to computer manufacturer B from November 2002 to May 2005 conditional on this manufacturer purchasing no less than 95% of its CPU needs for its business desktop computers from Intel (the remaining 5% that computer manufacturer B could purchase from rival chip maker AMD was then subject to further restrictive conditions set out below) Intel gave rebates to computer manufacturer C from October 2002 to November 2005 conditional on this manufacturer purchasing no less than 80% of its CPU needs for its desktop and notebook computers from Intel Intel gave rebates to computer manufacturer D in 2007 conditional on this manufacturer purchasing its CPU needs for its notebook computers exclusively from Intel.
  • Furthermore, Intel made payments to major retailer Media Saturn Holding from October 2002 to December 2007 on condition that it exclusively sold Intel-based PCs in all countries in which Media Saturn Holding is active.
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  • In its decision, the Commission does not object to rebates in themselves but to the conditions Intel attached to those rebates.
  • Intel structured its pricing policy to ensure that a computer manufacturer which opted to buy AMD CPUs for that part of its needs that was open to competition would consequently lose the rebate (or a large part of it) that Intel provided for the much greater part of its needs for which the computer manufacturer had no choice but to buy from Intel. The computer manufacturer would therefore have to pay Intel a higher price for each of the units supplied for which the computer manufacturer had no alternative but to buy from Intel. In other words, should a computer manufacturer fail to purchase virtually all its x86 CPU requirements from Intel, it would forego the possibility of obtaining a significant rebate on any of its very high volumes of Intel purchases. Moreover, in order to be able to compete with the Intel rebates, for the part of the computer manufacturers' supplies that was up for grabs, a competitor that was just as efficient as Intel would have had to offer a price for its CPUs lower than its costs of producing those CPUs, even if the average price of its CPUs was lower than that of Intel.
  • For example, rival chip manufacturer AMD offered one million free CPUs to one particular computer manufacturer. If the computer manufacturer had accepted all of these, it would have lost Intel's rebate on its many millions of remaining CPU purchases, and would have been worse off overall simply for having accepted this highly competitive offer. In the end, the computer manufacturer took only 160,000 CPUs for free.
  • Intel also interfered directly in the relations between computer manufacturers and AMD. Intel awarded computer manufacturers payments - unrelated to any particular purchases from Intel - on condition that these computer manufacturers postponed or cancelled the launch of specific AMD-based products and/or put restrictions on the distribution of specific AMD-based products. The Commission found that these payments had the potential effect of preventing products for which there was a consumer demand from coming to the market. The Commission found the following specific cases: For the 5% of computer manufacturer B’s business that was not subject to the conditional rebate outlined above, Intel made further payments to computer manufacturer B provided that this manufacturer : sold AMD-based business desktops only to small and medium enterprises sold AMD-based business desktops only via direct distribution channels (as opposed to through distributors) and postponed the launch of its first AMD-based business desktop in Europe by 6 months. Intel made payments to computer manufacturer E provided that this manufacturer postponed the launch of an AMD-based notebook from September 2003 to January 2004. Before the conditional rebate to computer manufacturer D outlined above, Intel made payments to this manufacturer provided that it postponed the launch of AMD-based notebooks from September 2006 to the end of 2006.
  • The Commission obtained proof of the existence of many of the conditions found to be illegal in the antitrust decision even though they were not made explicit in Intel’s contracts. Such proof is based on a broad range of contemporaneous evidence such as e-mails obtained inter alia from unannounced on-site inspections, in responses to formal requests for information and in a number of formal statements made to the Commission by the other companies concerned. In addition, there is evidence that Intel had sought to conceal the conditions associated with its payments.
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    This is an uncharacteristically strong press release from DG Competition. I still must read the order, but the description of the evidence is incredible, particularly the finding of concealment of its rebate conditions by Intel.
Paul Merrell

AT&T Mobility LLC, et al v. AU Optronics Corp., et al :: Ninth Circuit :: US Courts of ... - 0 views

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    This page includes the opinion of the Ninth U.S. Circuit Court of Appeals on an interlocutory appeal from a district court decision to dismiss two California state law causes of action from an ongoing case, leaving only the federal law causes of action. The Ninth Circuit disagreed, vacated the district court's decision, and remanded for consideration of the dismissal issue under the correct legal standard. This was a pro-plaintiff decision that makes it very likely that the case will continue with the state law causes of action reinstated against all or nearly all defendants. This is an unusually important price-fixing case with potentially disruptive effect among mobile device component manufacturers and by such a settlement or judgment's ripple effects, manufacturers of other device components globally. Plaintiffs are several major  voice/data communications services in the U.S. with the defendants being virtually all of the manufacturers of LCD panels used in mobile telephones. One must suspect that if price-fixing is in fact universal in the LCD panel manufacturing industry, price-fixing is likely common among manufacturers of other device components. According to the Ninth Circuit opinion, the plaintiffs' amended complaint includes detailed allegations of specific price-fixing agreements and price sharing actions by principles or agents of each individual defendant company committed within the State of California, which suggests that plaintiffs have very strong evidence that the alleged conspiracy exists. This is a case to watch.    
Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • The Commission has found that Intel excluded its competitor in two ways: through illegal loyalty rebates by paying manufacturers and retailers to restrict the commercialisation of competitors' products.These illegal actions were designed to preserve Intel's market share at a time when their only significant rival - AMD - was a growing threat to Intel's position. This threat was widely recognised by both computer manufacturers and in Intel's own internal documents seen by the Commission. The computer manufacturers involved are Acer, Dell, HP, Lenovo and NEC. The retailer involved is Media Saturn Holdings, the parent company of Media Markt.
  • Naturally, the Commission favours strong, vigorous price competition, including by dominant firms. However, Intel went beyond normal price competition by giving rebates to computer manufacturers on the condition that they bought all, or almost all, of their CPUs from Intel. Intel also made direct payments to a major retailer – Media Markt - on the condition that it stocked only computers with Intel CPUs.
  • Just to give you one example: in one case, a computer manufacturer took up only a small part of an offer by AMD of free CPUs because acceptance of all the free CPUs offered would have led that computer manufacturer to breach the conditions of its agreement with Intel and to lose rebates on all its much more numerous Intel purchases.
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  • Intel made direct payments to computer manufacturers to halt or delay the launch of products using their rival's chips, and to limit their distribution once available. The Commission has specific, documented examples, of Intel paying other manufacturers to, for example, delay the launch of an AMD-based PC by six months, and to restrict the sales of AMD-based products to certain customers.
  • The Commission Decision contains evidence that Intel went to great lengths to cover-up many of its anti-competitive actions. Many of the conditions mentioned above were not to be found in Intel’s official contracts. However, the Commission was able to gather a broad range of evidence demonstrating Intel's illegal conduct through statements from companies, on-site inspections, and formal requests for information.
  • Finally, I would like to draw your attention to Intel's latest global advertising campaign which proposes Intel as the "Sponsors of Tomorrow." Their website invites visitors to add their 'vision of tomorrow'. Well, I can give my vision of tomorrow for Intel here and now: "obey the law".
Gonzalo San Gil, PhD.

11 Tactics Used By The Mainstream Media To Manufacture Consent For The Oligarchy | Worl... - 1 views

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    "The mainstream media is aging and collapsing under the weight of its own hubris and arrogance. Now entirely formulaic in presentation and predictable in substance, the 'major' outlets of news, which are monopolized under only a small handful of corporations, serve the purpose of misleading the public on important issues and manufacturing consent for government and the oligarchs"
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    "The mainstream media is aging and collapsing under the weight of its own hubris and arrogance. Now entirely formulaic in presentation and predictable in substance, the 'major' outlets of news, which are monopolized under only a small handful of corporations, serve the purpose of misleading the public on important issues and manufacturing consent for government and the oligarchs"
Gonzalo San Gil, PhD.

Movie Boss Loses the Plot Over ISP Piracy Liability | TorrentFreak - 0 views

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    [... Should a knife manufacturer be held responsible for what happened in the Psycho shower scene? ...] " Andy on June 26, 2014 C: 44 News The fight between a movie studio and an Australian ISP has today taken another odd turn. Village Roadshow's co-CEO now suggests that iiNet must take responsibility for piracy in the same way a car manufacturer apparently would if one of its vehicles killed someone while being driven by a customer. Except they don't, of course."
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    [... Should a knife manufacturer be held responsible for what happened in the Psycho shower scene? ...] " Andy on June 26, 2014 C: 44 News The fight between a movie studio and an Australian ISP has today taken another odd turn. Village Roadshow's co-CEO now suggests that iiNet must take responsibility for piracy in the same way a car manufacturer apparently would if one of its vehicles killed someone while being driven by a customer. Except they don't, of course."
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.

Save Wifi :the FCC is attempting to criminalize freedom via new regulations | ThinkPeng... - 1 views

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    "Will you help us save wifi? The FCC is attempting to force new rules on manufacturers that will require everybody to lock down computing devices. Anything with a modern wireless chip is likely to be affected (software defined radio). This includes routers, cell phones, computers, bluetooth adapters, and similar devices. This means that users won't be able to install free software operating systems such as GNU/Linux or other third party firmwares/operating systems without the cooperation of the manufacturer. "
Gary Edwards

MWC 2010: The Year of the Android | Gadget Lab | Wired.com - 2 views

  • Forget about the iPhone. Microsoft is in a death-match with Google and its free OS.
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    ARCELONA - This year at the Mobile World Congress is the year of Android. Google's operating system debuted here two years ago. Last year we expected a slew of handsets, and saw just a trickle. This year, Android is everywhere, on handsets from HTC, Motorola, Sony Ericsson, and even Garmin-Asus. If this were the world of computers, Android would be in a similar position to Windows: Pretty much every manufacturer puts it on its machines. This is great news for us, the consumer. Android is stable, powerful and now it even runs Flash (I got a sneak peek of Flash running on a Motorola handset here at the show. It crashed). It's even better for the manufacturers, as - unlike Windows Mobile - Android is free. It's also open, so the phone makers can tweak it and trick it out as much as they like. And they do like. Most of the Android phones here at Mobile World Congress are running custom versions of Android, which differentiates them and, in theory at least, makes them easier to use, hiding the complexities of a proper multitasking OS from the user.
Gonzalo San Gil, PhD.

The energy and greenhouse-gas implications of internet video streaming in the United St... - 0 views

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    [# ! Via Francisco Manuel Hernandez Sosa's FB...] OPEN ACCESS Arman Shehabi1, Ben Walker2 and Eric Masanet2 "Letters The rapid growth of streaming video entertainment has recently received attention as a possibly less energy intensive alternative to the manufacturing and transportation of digital video discs (DVDs). This study utilizes a life-cycle assessment approach to estimate the primary energy use and greenhouse-gas emissions associated with video viewing through both traditional DVD methods and online video streaming. Base-case estimates for 2011 video viewing energy and CO2(e) emission intensities indicate video streaming can be more efficient than DVDs, depending on DVD viewing method. "
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    OPEN ACCESS Arman Shehabi1, Ben Walker2 and Eric Masanet2 "Letters The rapid growth of streaming video entertainment has recently received attention as a possibly less energy intensive alternative to the manufacturing and transportation of digital video discs (DVDs). This study utilizes a life-cycle assessment approach to estimate the primary energy use and greenhouse-gas emissions associated with video viewing through both traditional DVD methods and online video streaming. Base-case estimates for 2011 video viewing energy and CO2(e) emission intensities indicate video streaming can be more efficient than DVDs, depending on DVD viewing method. "
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    [# ! Via Francisco Manuel Hernandez Sosa's FB...] OPEN ACCESS Arman Shehabi1, Ben Walker2 and Eric Masanet2 "Letters The rapid growth of streaming video entertainment has recently received attention as a possibly less energy intensive alternative to the manufacturing and transportation of digital video discs (DVDs). This study utilizes a life-cycle assessment approach to estimate the primary energy use and greenhouse-gas emissions associated with video viewing through both traditional DVD methods and online video streaming. Base-case estimates for 2011 video viewing energy and CO2(e) emission intensities indicate video streaming can be more efficient than DVDs, depending on DVD viewing method. "
Gonzalo San Gil, PhD.

Getting started with Docker | Opensource.com - 0 views

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    "It doesn't matter whether it is pianos or teddy bears, containers provide consistency that manufacturers and transporters can rely on. Just as shipping containers have revolutionized the import/export industry, you've heard that Docker is doing the same in tech."
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    "It doesn't matter whether it is pianos or teddy bears, containers provide consistency that manufacturers and transporters can rely on. Just as shipping containers have revolutionized the import/export industry, you've heard that Docker is doing the same in tech."
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    "It doesn't matter whether it is pianos or teddy bears, containers provide consistency that manufacturers and transporters can rely on. Just as shipping containers have revolutionized the import/export industry, you've heard that Docker is doing the same in tech."
Gonzalo San Gil, PhD.

Piracy Is Just Another Copyright Industry Scapegoat | TorrentFreak - 0 views

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    " Rick Falkvinge on March 16, 2015 C: 0 Opinion History repeats itself. Unlicensed home manufacturing of copies was never the cause of the copyright industry's business problems; they created those all on their own. It's not the first time they've appointed a scapegoat for their own failures to get public funding, either."
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    " Rick Falkvinge on March 16, 2015 C: 0 Opinion History repeats itself. Unlicensed home manufacturing of copies was never the cause of the copyright industry's business problems; they created those all on their own. It's not the first time they've appointed a scapegoat for their own failures to get public funding, either."
Gonzalo San Gil, PhD.

Netgear Shows Customers How to Share Pirate Movies - TorrentFreak - 1 views

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    " Andy on December 26, 2015 C: 86 Opinion Showing users how to send large video files is a task undertaken by dozens of software and hardware manufacturers but for the folks at Netgear the issue is now a controversial one. Want to send a pirate movie to a friend after downloading it from a torrent site? Netgear apparently has an app for that."
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    " Andy on December 26, 2015 C: 86 Opinion Showing users how to send large video files is a task undertaken by dozens of software and hardware manufacturers but for the folks at Netgear the issue is now a controversial one. Want to send a pirate movie to a friend after downloading it from a torrent site? Netgear apparently has an app for that."
Paul Merrell

Cy Vance's Proposal to Backdoor Encrypted Devices Is Riddled With Vulnerabilities | Jus... - 0 views

  • Less than a week after the attacks in Paris — while the public and policymakers were still reeling, and the investigation had barely gotten off the ground — Cy Vance, Manhattan’s District Attorney, released a policy paper calling for legislation requiring companies to provide the government with backdoor access to their smartphones and other mobile devices. This is the first concrete proposal of this type since September 2014, when FBI Director James Comey reignited the “Crypto Wars” in response to Apple’s and Google’s decisions to use default encryption on their smartphones. Though Comey seized on Apple’s and Google’s decisions to encrypt their devices by default, his concerns are primarily related to end-to-end encryption, which protects communications that are in transit. Vance’s proposal, on the other hand, is only concerned with device encryption, which protects data stored on phones. It is still unclear whether encryption played any role in the Paris attacks, though we do know that the attackers were using unencrypted SMS text messages on the night of the attack, and that some of them were even known to intelligence agencies and had previously been under surveillance. But regardless of whether encryption was used at some point during the planning of the attacks, as I lay out below, prohibiting companies from selling encrypted devices would not prevent criminals or terrorists from being able to access unbreakable encryption. Vance’s primary complaint is that Apple’s and Google’s decisions to provide their customers with more secure devices through encryption interferes with criminal investigations. He claims encryption prevents law enforcement from accessing stored data like iMessages, photos and videos, Internet search histories, and third party app data. He makes several arguments to justify his proposal to build backdoors into encrypted smartphones, but none of them hold water.
  • Before addressing the major privacy, security, and implementation concerns that his proposal raises, it is worth noting that while an increase in use of fully encrypted devices could interfere with some law enforcement investigations, it will help prevent far more crimes — especially smartphone theft, and the consequent potential for identity theft. According to Consumer Reports, in 2014 there were more than two million victims of smartphone theft, and nearly two-thirds of all smartphone users either took no steps to secure their phones or their data or failed to implement passcode access for their phones. Default encryption could reduce instances of theft because perpetrators would no longer be able to break into the phone to steal the data.
  • Vance argues that creating a weakness in encryption to allow law enforcement to access data stored on devices does not raise serious concerns for security and privacy, since in order to exploit the vulnerability one would need access to the actual device. He considers this an acceptable risk, claiming it would not be the same as creating a widespread vulnerability in encryption protecting communications in transit (like emails), and that it would be cheap and easy for companies to implement. But Vance seems to be underestimating the risks involved with his plan. It is increasingly important that smartphones and other devices are protected by the strongest encryption possible. Our devices and the apps on them contain astonishing amounts of personal information, so much that an unprecedented level of harm could be caused if a smartphone or device with an exploitable vulnerability is stolen, not least in the forms of identity fraud and credit card theft. We bank on our phones, and have access to credit card payments with services like Apple Pay. Our contact lists are stored on our phones, including phone numbers, emails, social media accounts, and addresses. Passwords are often stored on people’s phones. And phones and apps are often full of personal details about their lives, from food diaries to logs of favorite places to personal photographs. Symantec conducted a study, where the company spread 50 “lost” phones in public to see what people who picked up the phones would do with them. The company found that 95 percent of those people tried to access the phone, and while nearly 90 percent tried to access private information stored on the phone or in other private accounts such as banking services and email, only 50 percent attempted contacting the owner.
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  • Vance attempts to downplay this serious risk by asserting that anyone can use the “Find My Phone” or Android Device Manager services that allow owners to delete the data on their phones if stolen. However, this does not stand up to scrutiny. These services are effective only when an owner realizes their phone is missing and can take swift action on another computer or device. This delay ensures some period of vulnerability. Encryption, on the other hand, protects everyone immediately and always. Additionally, Vance argues that it is safer to build backdoors into encrypted devices than it is to do so for encrypted communications in transit. It is true that there is a difference in the threats posed by the two types of encryption backdoors that are being debated. However, some manner of widespread vulnerability will inevitably result from a backdoor to encrypted devices. Indeed, the NSA and GCHQ reportedly hacked into a database to obtain cell phone SIM card encryption keys in order defeat the security protecting users’ communications and activities and to conduct surveillance. Clearly, the reality is that the threat of such a breach, whether from a hacker or a nation state actor, is very real. Even if companies go the extra mile and create a different means of access for every phone, such as a separate access key for each phone, significant vulnerabilities will be created. It would still be possible for a malicious actor to gain access to the database containing those keys, which would enable them to defeat the encryption on any smartphone they took possession of. Additionally, the cost of implementation and maintenance of such a complex system could be high.
  • Privacy is another concern that Vance dismisses too easily. Despite Vance’s arguments otherwise, building backdoors into device encryption undermines privacy. Our government does not impose a similar requirement in any other context. Police can enter homes with warrants, but there is no requirement that people record their conversations and interactions just in case they someday become useful in an investigation. The conversations that we once had through disposable letters and in-person conversations now happen over the Internet and on phones. Just because the medium has changed does not mean our right to privacy has.
  • In addition to his weak reasoning for why it would be feasible to create backdoors to encrypted devices without creating undue security risks or harming privacy, Vance makes several flawed policy-based arguments in favor of his proposal. He argues that criminals benefit from devices that are protected by strong encryption. That may be true, but strong encryption is also a critical tool used by billions of average people around the world every day to protect their transactions, communications, and private information. Lawyers, doctors, and journalists rely on encryption to protect their clients, patients, and sources. Government officials, from the President to the directors of the NSA and FBI, and members of Congress, depend on strong encryption for cybersecurity and data security. There are far more innocent Americans who benefit from strong encryption than there are criminals who exploit it. Encryption is also essential to our economy. Device manufacturers could suffer major economic losses if they are prohibited from competing with foreign manufacturers who offer more secure devices. Encryption also protects major companies from corporate and nation-state espionage. As more daily business activities are done on smartphones and other devices, they may now hold highly proprietary or sensitive information. Those devices could be targeted even more than they are now if all that has to be done to access that information is to steal an employee’s smartphone and exploit a vulnerability the manufacturer was required to create.
  • Vance also suggests that the US would be justified in creating such a requirement since other Western nations are contemplating requiring encryption backdoors as well. Regardless of whether other countries are debating similar proposals, we cannot afford a race to the bottom on cybersecurity. Heads of the intelligence community regularly warn that cybersecurity is the top threat to our national security. Strong encryption is our best defense against cyber threats, and following in the footsteps of other countries by weakening that critical tool would do incalculable harm. Furthermore, even if the US or other countries did implement such a proposal, criminals could gain access to devices with strong encryption through the black market. Thus, only innocent people would be negatively affected, and some of those innocent people might even become criminals simply by trying to protect their privacy by securing their data and devices. Finally, Vance argues that David Kaye, UN Special Rapporteur for Freedom of Expression and Opinion, supported the idea that court-ordered decryption doesn’t violate human rights, provided certain criteria are met, in his report on the topic. However, in the context of Vance’s proposal, this seems to conflate the concepts of court-ordered decryption and of government-mandated encryption backdoors. The Kaye report was unequivocal about the importance of encryption for free speech and human rights. The report concluded that:
  • States should promote strong encryption and anonymity. National laws should recognize that individuals are free to protect the privacy of their digital communications by using encryption technology and tools that allow anonymity online. … States should not restrict encryption and anonymity, which facilitate and often enable the rights to freedom of opinion and expression. Blanket prohibitions fail to be necessary and proportionate. States should avoid all measures that weaken the security that individuals may enjoy online, such as backdoors, weak encryption standards and key escrows. Additionally, the group of intelligence experts that was hand-picked by the President to issue a report and recommendations on surveillance and technology, concluded that: [R]egarding encryption, the U.S. Government should: (1) fully support and not undermine efforts to create encryption standards; (2) not in any way subvert, undermine, weaken, or make vulnerable generally available commercial software; and (3) increase the use of encryption and urge US companies to do so, in order to better protect data in transit, at rest, in the cloud, and in other storage.
  • The clear consensus among human rights experts and several high-ranking intelligence experts, including the former directors of the NSA, Office of the Director of National Intelligence, and DHS, is that mandating encryption backdoors is dangerous. Unaddressed Concerns: Preventing Encrypted Devices from Entering the US and the Slippery Slope In addition to the significant faults in Vance’s arguments in favor of his proposal, he fails to address the question of how such a restriction would be effectively implemented. There is no effective mechanism for preventing code from becoming available for download online, even if it is illegal. One critical issue the Vance proposal fails to address is how the government would prevent, or even identify, encrypted smartphones when individuals bring them into the United States. DHS would have to train customs agents to search the contents of every person’s phone in order to identify whether it is encrypted, and then confiscate the phones that are. Legal and policy considerations aside, this kind of policy is, at the very least, impractical. Preventing strong encryption from entering the US is not like preventing guns or drugs from entering the country — encrypted phones aren’t immediately obvious as is contraband. Millions of people use encrypted devices, and tens of millions more devices are shipped to and sold in the US each year.
  • Finally, there is a real concern that if Vance’s proposal were accepted, it would be the first step down a slippery slope. Right now, his proposal only calls for access to smartphones and devices running mobile operating systems. While this policy in and of itself would cover a number of commonplace devices, it may eventually be expanded to cover laptop and desktop computers, as well as communications in transit. The expansion of this kind of policy is even more worrisome when taking into account the speed at which technology evolves and becomes widely adopted. Ten years ago, the iPhone did not even exist. Who is to say what technology will be commonplace in 10 or 20 years that is not even around today. There is a very real question about how far law enforcement will go to gain access to information. Things that once seemed like merely science fiction, such as wearable technology and artificial intelligence that could be implanted in and work with the human nervous system, are now available. If and when there comes a time when our “smart phone” is not really a device at all, but is rather an implant, surely we would not grant law enforcement access to our minds.
  • Policymakers should dismiss Vance’s proposal to prohibit the use of strong encryption to protect our smartphones and devices in order to ensure law enforcement access. Undermining encryption, regardless of whether it is protecting data in transit or at rest, would take us down a dangerous and harmful path. Instead, law enforcement and the intelligence community should be working to alter their skills and tactics in a fast-evolving technological world so that they are not so dependent on information that will increasingly be protected by encryption.
Paul Merrell

Google confirms that advanced backdoor came preinstalled on Android devices | Ars Technica - 0 views

  • Criminals in 2017 managed to get an advanced backdoor preinstalled on Android devices before they left the factories of manufacturers, Google researchers confirmed on Thursday. Triada first came to light in 2016 in articles published by Kaspersky here and here, the first of which said the malware was "one of the most advanced mobile Trojans" the security firm's analysts had ever encountered. Once installed, Triada's chief purpose was to install apps that could be used to send spam and display ads. It employed an impressive kit of tools, including rooting exploits that bypassed security protections built into Android and the means to modify the Android OS' all-powerful Zygote process. That meant the malware could directly tamper with every installed app. Triada also connected to no fewer than 17 command and control servers. In July 2017, security firm Dr. Web reported that its researchers had found Triada built into the firmware of several Android devices, including the Leagoo M5 Plus, Leagoo M8, Nomu S10, and Nomu S20. The attackers used the backdoor to surreptitiously download and install modules. Because the backdoor was embedded into one of the OS libraries and located in the system section, it couldn't be deleted using standard methods, the report said. On Thursday, Google confirmed the Dr. Web report, although it stopped short of naming the manufacturers. Thursday's report also said the supply chain attack was pulled off by one or more partners the manufacturers used in preparing the final firmware image used in the affected devices.
Gary Edwards

Skynet rising: Google acquires 512-qubit quantum computer; NSA surveillance to be turne... - 0 views

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    "The ultimate code breakers" If you know anything about encryption, you probably also realize that quantum computers are the secret KEY to unlocking all encrypted files. As I wrote about last year here on Natural News, once quantum computers go into widespread use by the NSA, the CIA, Google, etc., there will be no more secrets kept from the government. All your files - even encrypted files - will be easily opened and read. Until now, most people believed this day was far away. Quantum computing is an "impractical pipe dream," we've been told by scowling scientists and "flat Earth" computer engineers. "It's not possible to build a 512-qubit quantum computer that actually works," they insisted. Don't tell that to Eric Ladizinsky, co-founder and chief scientist of a company called D-Wave. Because Ladizinsky's team has already built a 512-qubit quantum computer. And they're already selling them to wealthy corporations, too. DARPA, Northrup Grumman and Goldman Sachs In case you're wondering where Ladizinsky came from, he's a former employee of Northrup Grumman Space Technology (yes, a weapons manufacturer) where he ran a multi-million-dollar quantum computing research project for none other than DARPA - the same group working on AI-driven armed assault vehicles and battlefield robots to replace human soldiers. .... When groundbreaking new technology is developed by smart people, it almost immediately gets turned into a weapon. Quantum computing will be no different. This technology grants God-like powers to police state governments that seek to dominate and oppress the People.  ..... Google acquires "Skynet" quantum computers from D-Wave According to an article published in Scientific American, Google and NASA have now teamed up to purchase a 512-qubit quantum computer from D-Wave. The computer is called "D-Wave Two" because it's the second generation of the system. The first system was a 128-qubit computer. Gen two
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    Normally, I'd be suspicious of anything published by Infowars because its editors are willing to publish really over the top stuff, but: [i] this is subject matter I've maintained an interest in over the years and I was aware that working quantum computers were imminent; and [ii] the pedigree on this particular information does not trace to Scientific American, as stated in the article. I've known Scientific American to publish at least one soothing and lengthy article on the subject of chlorinated dioxin hazard -- my specialty as a lawyer was litigating against chemical companies that generated dioxin pollution -- that was generated by known closet chemical industry advocates long since discredited and was totally lacking in scientific validity and contrary to established scientific knowledge. So publication in Scientific American doesn't pack a lot of weight with me. But checking the Scientific American linked article, notes that it was reprinted by permission from Nature, a peer-reviewed scientific journal and news organization that I trust much more. That said, the InfoWars version is a rewrite that contains lots of information not in the Nature/Scientific American version of a sensationalist nature, so heightened caution is still in order. Check the reprinted Nature version before getting too excited: "The D-Wave computer is not a 'universal' computer that can be programmed to tackle any kind of problem. But scientists have found they can usefully frame questions in machine-learning research as optimisation problems. "D-Wave has battled to prove that its computer really operates on a quantum level, and that it is better or faster than a conventional computer. Before striking the latest deal, the prospective customers set a series of tests for the quantum computer. D-Wave hired an outside expert in algorithm-racing, who concluded that the speed of the D-Wave Two was above average overall, and that it was 3,600 times faster than a leading conventional comput
Gonzalo San Gil, PhD.

Warner Bros and Intel Sued Over Defamatory 4K Piracy Claims - TorrentFreak - 0 views

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    " Ernesto on March 17, 2016 C: 25 Breaking LegendSky, a hardware manufacturer that creates devices enabling consumers to bypass 4K copy protection, has lodged several counterclaims against Warner Bros. and Intel daughter company Digital Content Protection (DCP). The Chinese company accuses DCP of defamation and monopolization, while demanding compensation for the damages it has suffered."
Gonzalo San Gil, PhD.

Ford, Toyota, Nissan, Microsoft 'Shamed' as Piracy Sponsors - TorrentFreak - 0 views

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    " Andy on October 1, 2015 C: 32 Breaking Car manufacturers including Ford, Toyota, Nissan, Mazda and Volvo plus technology giant Microsoft are just a handful of the 100 major companies set to be outed as sponsors of piracy sites by the Russian government. The move is part of the growing "follow the money" campaign aimed at strangling the finances of 'pirate' sites."
Gary Edwards

Intel and TSMC: What are they thinking? | Peter Glaskowsky - CNET News - 0 views

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    Here we sit at the dawn of "The Age of Visual Computing" and Intel makes a deal with their arch enemy, low cost-high volume SOC producer TSMC. Peter Glaskowsky argues that the Intel-TSMC alliance announced earlier this week is a good thing for both companies, but not for the reasons stated by Intel. Peter discusses Intel's problem of competing with low margin manufactures like TSCM. He walks through the challenges and options Intel has, describing why this is a killer deal for both Intel and TSMC. The losers however are Nvidia, ViA and ARM. Great discussion! Looks to me like Intel is very concerned about Nvidia and the ION-Atom motherboard. So much so that they are willing to risk a massive anti-trust action.
    There are a number of articles and comments at the diigo "Future of the Web" group discussing Nvidia's Jen-Hsun Huang, the ION-Atom motherboard, and Jen's "Age of Visual Computing" vision. His views on legacy x86 CPU processing power and why we need a combined GPU-CPU architecture are fascinating. Soon enough, i expect to see a netbook running the Google Android OS on a ION-Atom or ION-ViA motherboard. What a day that's going to be.
Gonzalo San Gil, PhD.

Disney Patents a Piracy Free Search Engine | TorrentFreak - 0 views

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    " Ernesto on October 31, 2014 C: 56 News Disney has just obtained a patent for a search engine that ranks sites based on various "authenticity" factors. One of the goals of the technology is to filter pirated material from search results while boosting the profile of copyright and trademark holders' websites." [# ! #Imagine... # ! ... this kind of '#artifacts' mandatory to the computer # ! manufacturers... [# Additional #WARNING: #Disney to #Decide the "#Authenticity" of web #contents... what's next?]]
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    " Ernesto on October 31, 2014 C: 56 News Disney has just obtained a patent for a search engine that ranks sites based on various "authenticity" factors. One of the goals of the technology is to filter pirated material from search results while boosting the profile of copyright and trademark holders' websites."
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