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Gonzalo San Gil, PhD.

MPAA Secretly Settled With Hotfile for $4 Million, Not $80 Million | TorrentFreak - 0 views

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    [# ! Is this the exemplary IP Enforcement aimed to 'Save The Culture'...? # It seems more a weird #wangle... # ... or, perhaps, it is that a bunch of bucks is what matters.... # ! #artists and #creators shouldn't support such #hoax.] " By Ernesto on December 24, 2014 C: 0 Breaking Last December the MPAA announced one of its biggest victories to date. The Hollywood group won its case against file-hosting site Hotfile, who agreed to a $80 million settlement. However, this figure mostly served to impress and scare the pubic, as we can now reveal that Hotfile agreed to pay 'only' $4 million." [# ! Yup! Why "#secretly"...?]
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    [# ! '#Tricky' IP #enforcement...] " By Ernesto on December 24, 2014 C: 0 Breaking Last December the MPAA announced one of its biggest victories to date. The Hollywood group won its case against file-hosting site Hotfile, who agreed to a $80 million settlement. However, this figure mostly served to impress and scare the pubic, as we can now reveal that Hotfile agreed to pay 'only' $4 million." [# ! Yup! Why "#secretly"...?]
Paul Merrell

Facebook to Pay $550 Million to Settle Facial Recognition Suit - The New York Times - 2 views

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

» 21 Facts About NSA Snooping That Every American Should Know Alex Jones' Inf... - 0 views

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    NSA-PRISM-Echelon in a nutshell.  The list below is a short sample.  Each fact is documented, and well worth the time reading. "The following are 21 facts about NSA snooping that every American should know…" #1 According to CNET, the NSA told Congress during a recent classified briefing that it does not need court authorization to listen to domestic phone calls… #2 According to U.S. Representative Loretta Sanchez, members of Congress learned "significantly more than what is out in the media today" about NSA snooping during that classified briefing. #3 The content of all of our phone calls is being recorded and stored.  The following is a from a transcript of an exchange between Erin Burnett of CNN and former FBI counterterrorism agent Tim Clemente which took place just last month… #4 The chief technology officer at the CIA, Gus Hunt, made the following statement back in March… "We fundamentally try to collect everything and hang onto it forever." #5 During a Senate Judiciary Oversight Committee hearing in March 2011, FBI Director Robert Mueller admitted that the intelligence community has the ability to access emails "as they come in"… #6 Back in 2007, Director of National Intelligence Michael McConnell told Congress that the president has the "constitutional authority" to authorize domestic spying without warrants no matter when the law says. #7 The Director Of National Intelligence James Clapper recently told Congress that the NSA was not collecting any information about American citizens.  When the media confronted him about his lie, he explained that he "responded in what I thought was the most truthful, or least untruthful manner". #8 The Washington Post is reporting that the NSA has four primary data collection systems… MAINWAY, MARINA, METADATA, PRISM #9 The NSA knows pretty much everything that you are doing on the Internet.  The following is a short excerpt from a recent Yahoo article… #10 The NSA is suppose
Gonzalo San Gil, PhD.

Warner Pays $14 Million For Illegitimate "Happy Birthday" Claims - TorrentFreak - 0 views

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    " Ernesto on February 10, 2016 C: 56 Breaking After raking in dozens of millions in licensing fees, Warner/Chappell has admitted that it doesn't own the rights to the song "Happy Birthday". The music company has agreed to set aside a $14 million settlement fund for people who paid to use Happy Birthday in public. In addition, the court has been asked to enter the song into the public domain."
Paul Merrell

Amazon will pay $62 million over deceptive delivery tips claims - Protocol - The people... - 2 views

  • Amazon will pay almost $62 million to settle allegations by the U.S. Federal Trade Commission that it avoided handing over the full pay and tips it promised to delivery drivers, according to the agency.The company is giving back the amount it kept, according to a complaint released earlier this year by the agency, after it told Amazon Flex drivers and customers in 2015 it would pay $18 to $25 hourly plus tips. Instead, beginning the following year, it used tips to supplement lower base pay rates, and tried to hide the changes, according to the FTC."For a period of over two and a half years, without consumers' permission, Amazon secretly used nearly a third of customer tips to subsidize its own pay to drivers," the FTC had found.Under the 20-year settlement, Amazon will also need consent from drivers to change their pay scheme. All commissioners voted unanimously to approve the settlement.
Paul Merrell

Google and Facebook fined $240 million for making cookies hard to refuse | Malwarebytes... - 0 views

  • French privacy watchdog, the Commission Nationale de l’Informatique et des Libertés (CNIL), has hit Google with a 150 million euro fine and Facebook with a 60 million euro fine, because their websites—google.fr, youtube.com, and facebook.com—don’t make refusing cookies as easy as accepting them. The CNIL carried out an online investigation after receiving complaints from users about the way cookies were handled on these sites. It found that while the sites offered buttons for allowing immediate acceptance of cookies, the sites didn’t implement an equivalent solution to let users refuse them. Several clicks were required to refuse all cookies, against a single one to accept them. In addition to the fines, the companies have been given three months to provide Internet users in France with a way to refuse cookies that’s as simple as accepting them. If they don’t, the companies will have to pay a penalty of 100,000 euros for each day they delay.
  • EU data protection regulators’ powers have increased significantly since the General Data Protection Regulation (GDPR) took effect in May 2018. This EU law allows watchdogs to levy penalties of as much as 4% of a company’s annual global sales. The restricted committee, the body in charge of sanctions, considered that the process regarding cookies affects the freedom of consent of Internet users and constitutes an infringement of the French Data Protection Act, which demands that it should be as easy to refuse cookies as to accept them. Since March 31, 2021, when the deadline set for websites and mobile applications to comply with the new rules on cookies expired, the CNIL has adopted nearly 100 corrective measures (orders and sanctions) related to non-compliance with the legislation on cookies.
Paul Merrell

Google Caves to Russian Federal Antimonopoly Service, Agrees to Pay Fine - nsnbc intern... - 0 views

  • Google ultimately caved to Russia’s Federal Antimonopoly Service, agreeing to pay $7.8 million (438 million rubles) for violating antitrust laws. The corporate Colossus will also pay two other fines totaling an additional $18,000 (1 million rubles) for failing to comply with past orders issued by state regulators. Last year Google caved to similar demands by the European Union.
  • In August 2016 Russia’s Federal Antimonopoly Service responded to a complaint by Russian search engine operator Yandex and fined the U.S.-based Google 438 million rubles for abusing its dominant market position to force manufacturers to make Google applications the default services on devices using Android. Regulators set the fine at 9 percent of Google’s reported profits on the Russian market in 2014, plus inflation. Similar to the case against the European Union Google challenged the penalty in several appellate courts before finally agreeing this week to meet the government’s demands. The corporation also agreed to stop requiring manufacturers to install Google services as the default applications on Android-powered devices. The agreement is valid for six years and nine months, Russia’s Antimonopoly Service reported. Last year Google, after a protracted battle, caved to similar antitrust regulations by the European Union, but the internet giant has also come under fire elsewhere. In 2015 Australian treasurer Joe Hockey implied Google in his list of corporate tax thieves. In January 2016 British lawmakers decided to fry Google over tax evasion. Google and taxes were compared to the Bermuda Triangle. One year ago the dispute between the European Union’s competition watchdog and Google, culminated in the European Commission formally charging Google with abusing the dominant position of its Android mobile phone operating system, having launched an investigation in April 2015.
Gonzalo San Gil, PhD.

Spotify, Apple, Tidal Paying $1.6 Million a DAY In Major Label Guarantees... - 0 views

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    "If Spotify crashed tomorrow and couldn't deliver a single song, they'd still own more than $1 million in guaranteed payments to three major recording labels, according to financial data just published. Welcome to the murky - and extremely expensive - world of major label advances."
Gary Edwards

Box, Dropbox rethink future in midst of price war - San Jose Mercury News - 0 views

  • "Right now there is a huge arms race between Apple, Google, Microsoft, and now Amazon has thrown their hat in the ring," said Vineet Jain, co-founder and CEO of Egnyte, a Mountain View company that sells software that allows companies to store data both in the cloud and on premise. "These four guys are capable of making it free or nearly free, and the price points that you're seeing from these vendors such as Box will have to come down, or they will have a shrinking user base. You cannot out-compete Microsoft and Google on price -- you just can't."
  • For Box and Dropbox -- and the investors who have poured millions of dollars into them -- there's a lot of money on the line. In 2013, cloud storage companies raised $1.2 billion from venture capitalists, compared to $427 million in 2010 and $185 million in 2009, according to the Dow Jones. Silicon Valley cloud storage companies accounted for 14 of the top 20 venture-backed deals, with Box leading with more than $350 million in funds raised; Dropbox raised $250 million.
  • "The problem is pricing on storage has just been collapsing," said Randy Chou, CEO and co-founder of Panzura, which sells hardware and software that allows businesses to collaborate on massive documents, and counts Electronic Arts and the U.S. Department of Justice among its customers. "Whatever anyone is paying today, they'll pay half next year, and half the year after that."
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    Commentary on the expected Box and Dropbox IPO, which are being delayed. The author explains the delay, but misses the incredibl eimpact Office 365 is having on the mobile Cloud Productivity platform. And this is the platform war of all wars. It is the race to dominate the 3rd Wave of computing. "It wasn't long ago that cloud storage companies such as Box and Dropbox were among the hottest startups in Silicon Valley, blessed with vast amounts of venture capital and poised to go public in blockbuster IPOs. But now, thanks to a price war launched by Google, Amazon and other tech giants, almost anyone with a laptop or tablet can get cloud storage for less than the price of a latte. That means Box and Dropbox, which sell software for businesses and consumers to store and use files on the Internet rather than a machine, are confronting a precarious future: They must figure out how to go head-to-head with the world's most powerful tech companies. The jockeying has forced both startups to rethink their plans to go public -- Box filed for an IPO in March, but has delayed trading, and Dropbox, once poised to be one of the biggest tech IPOs of the year, may not have a public offering in its immediate future."
Gonzalo San Gil, PhD.

Hulu Tracks Pirates to Decide What to Buy - TorrentFreak - 0 views

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    " Ernesto on April 30, 2016 C: 10 News With millions of paying subscribers in the United States, Hulu is one of the leading video streaming services. The company is battling with other services to license the best content, and as part of this quest it uses piracy data to see what is popular among potential viewers."
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    " Ernesto on April 30, 2016 C: 10 News With millions of paying subscribers in the United States, Hulu is one of the leading video streaming services. The company is battling with other services to license the best content, and as part of this quest it uses piracy data to see what is popular among potential viewers."
Gonzalo San Gil, PhD.

Attacks on the Press: CPJ Risk List - Committee to Protect Journalists - 0 views

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    "By Karen Phillips Ecuadoran law forbids the presidential family to benefit from state contracts. But after Christian Zurita and Juan Carlos Calderón's book, Big Brother, revealed that President Rafael Correa's brother had obtained $600 million in government contracts, they were the ones in trouble with the law. Zurita and Calderón were found guilty of defaming the president and ordered to pay $1 million in damages apiece. Correa later pardoned the two, having accomplished his goal of intimidating the nation's press corps. "It was clear that no small or medium-sized media outlet was going to take on major critical reporting against the government," Zurita told CPJ."
Gonzalo San Gil, PhD.

EFF in 2015 - Annual Report - 0 views

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    [The Electronic Frontier Foundation was founded in 1990 to protect the rights of technology users, a mission that expands dramatically as digital devices and networks transform modern life and culture. With over 25,000 dues-paying members around the world and a social media reach of well over 1 million followers across different social networks, EFF engages directly with digital users worldwide and provides leadership on cutting-edge issues of free expression, privacy, and human rights. Our annual report features reflections from several EFF staff members about some of our most significant efforts, as well as financial information for the fiscal year ending June 2015. To learn more, read our Year in Review series. ...]
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    [The Electronic Frontier Foundation was founded in 1990 to protect the rights of technology users, a mission that expands dramatically as digital devices and networks transform modern life and culture. With over 25,000 dues-paying members around the world and a social media reach of well over 1 million followers across different social networks, EFF engages directly with digital users worldwide and provides leadership on cutting-edge issues of free expression, privacy, and human rights. Our annual report features reflections from several EFF staff members about some of our most significant efforts, as well as financial information for the fiscal year ending June 2015. To learn more, read our Year in Review series. ...]
Gonzalo San Gil, PhD.

Both Comcast And Verizon Agree To Pay Millions To Settle Overbilling Claims | Techdirt - 1 views

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    "from the but-you-can-trust-them dept The big broadband players keep trying to tell us (and politicians and regulators) how good they are and how much we can trust them. Part of their whole pitch on killing net neutrality is that they'd never do anything to harm consumers." [ # ! First... # ! #citizens' #swindling; # ! then, #government #bribing... # ! #Unfair, anyhow we look at it. # ! :/]
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    "from the but-you-can-trust-them dept The big broadband players keep trying to tell us (and politicians and regulators) how good they are and how much we can trust them. Part of their whole pitch on killing net neutrality is that they'd never do anything to harm consumers."
Gonzalo San Gil, PhD.

MPAA Pays University $1,000,000 For Piracy Research | TorrentFreak - 0 views

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    " Ernesto on November 18, 2014 C: 11 Breaking The MPAA has donated over a million dollars Carnegie Mellon University in support of its piracy research program. The movie industry group sees academic research as a valuable tool to steer future copyright policies and uses the program's results to further its cause. " # ! #imagine...[ # ! ... the ‪#‎kind‬ of '‪#‎Research‬' is going to come from this... # ! ...where the last '‪#‎truth‬ ‪#‎defence‬ line' is ‪#‎impudently‬ ‪#‎tipped‬.]
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    [# Paid Pamphlets disguised as Research...?] " Ernesto on November 18, 2014 C: 11 Breaking The MPAA has donated over a million dollars Carnegie Mellon University in support of its piracy research program. The movie industry group sees academic research as a valuable tool to steer future copyright policies and uses the program's results to further its cause. "
Paul Merrell

Internet privacy, funded by spooks: A brief history of the BBG | PandoDaily - 0 views

  • For the past few months I’ve been covering U.S. government funding of popular Internet privacy tools like Tor, CryptoCat and Open Whisper Systems. During my reporting, one agency in particular keeps popping up: An agency with one of those really bland names that masks its wild, bizarre history: the Broadcasting Board of Governors, or BBG. The BBG was formed in 1999 and runs on a $721 million annual budget. It reports directly to Secretary of State John Kerry and operates like a holding company for a host of Cold War-era CIA spinoffs and old school “psychological warfare” projects: Radio Free Europe, Radio Free Asia, Radio Martí, Voice of America, Radio Liberation from Bolshevism (since renamed “Radio Liberty”) and a dozen other government-funded radio stations and media outlets pumping out pro-American propaganda across the globe. Today, the Congressionally-funded federal agency is also one of the biggest backers of grassroots and open-source Internet privacy technology. These investments started in 2012, when the BBG launched the “Open Technology Fund” (OTF) — an initiative housed within and run by Radio Free Asia (RFA), a premier BBG property that broadcasts into communist countries like North Korea, Vietnam, Laos, China and Myanmar. The BBG endowed Radio Free Asia’s Open Technology Fund with a multimillion dollar budget and a single task: “to fulfill the U.S. Congressional global mandate for Internet freedom.”
  • Here’s a small sample of what the Broadcasting Board of Governors funded (through Radio Free Asia and then through the Open Technology Fund) between 2012 and 2014: Open Whisper Systems, maker of free encrypted text and voice mobile apps like TextSecure and Signal/RedPhone, got a generous $1.35-million infusion. (Facebook recently started using Open Whisper Systems to secure its WhatsApp messages.) CryptoCat, an encrypted chat app made by Nadim Kobeissi and promoted by EFF, received $184,000. LEAP, an email encryption startup, got just over $1 million. LEAP is currently being used to run secure VPN services at RiseUp.net, the radical anarchist communication collective. A Wikileaks alternative called GlobaLeaks (which was endorsed by the folks at Tor, including Jacob Appelbaum) received just under $350,000. The Guardian Project — which makes an encrypted chat app called ChatSecure, as well a mobile version of Tor called Orbot — got $388,500. The Tor Project received over $1 million from OTF to pay for security audits, traffic analysis tools and set up fast Tor exit nodes in the Middle East and South East Asia.
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    But can we trust them?
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

Net neutrality comment fraud will be investigated by government | Ars Technica - 0 views

  • The US Government Accountability Office (GAO) will investigate the use of impersonation in public comments on the Federal Communications Commission's net neutrality repeal. Congressional Democrats requested the investigation last month, and the GAO has granted the request. While the investigation request was spurred by widespread fraud in the FCC's net neutrality repeal docket, Democrats asked the GAO to also "examine whether this shady practice extends to other agency rulemaking processes." The GAO will do just that, having told Democrats in a letter that it will "review the extent and pervasiveness of fraud and the misuse of American identities during federal rulemaking processes."
  • The GAO provides independent, nonpartisan audits and investigations for Congress. The GAO previously agreed to investigate DDoS attacks that allegedly targeted the FCC comment system, also in response to a request by Democratic lawmakers. The Democrats charged that Chairman Ajit Pai's FCC did not provide enough evidence that the attacks actually happened, and they asked the GAO to find out what evidence the FCC used to make its determination. Democrats also asked the GAO to examine whether the FCC is prepared to prevent future attacks. The DDoS investigation should happen sooner than the new one on comment fraud because the GAO accepted that request in October.
  • The FCC's net neutrality repeal received more than 22 million comments, but millions were apparently submitted by bots and falsely attributed to real Americans (including some dead ones) who didn't actually submit comments. Various analyses confirmed the widespread spam and fraud; one analysis found that 98.5 percent of unique comments opposed the repeal plan.
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  • The FCC's comment system makes no attempt to verify submitters' identities, and allows bulk uploads so that groups collecting signatures for letters and petitions can get them on the docket easily. It was like that even before Pai took over as chair, but the fraud became far more pervasive in the proceeding that led to the repeal of net neutrality rules. Pai's FCC did not remove any fraudulent comments from the record. Democratic FCC Commissioner Jessica Rosenworcel called for a delay in the net neutrality repeal vote because of the fraud, but the Republican majority pushed the vote through as scheduled last month. New York Attorney General Eric Schneiderman has been investigating the comment fraud and says the FCC has stonewalled the investigation by refusing to provide evidence. Schneiderman is also leading a lawsuit to reverse the FCC's net neutrality repeal, and the comment fraud could play a role in the case. "We understand that the FCC's rulemaking process requires it to address all comments it receives, regardless of who submits them," Congressional Democrats said in their letter requesting a GAO investigation. "However, we do not believe any outside parties should be permitted to generate any comments to any federal governmental entity using information it knows to be false, such as the identities of those submitting the comments."
Gonzalo San Gil, PhD.

Apple must pay £315 million as US Supreme Court rejects e-book antitrust appe... - 0 views

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    "Appeals court ruled that Apple knowingly conspired with publishers to keep prices high. by Megan Geuss (US) - Mar 7, 2016 5:45 pm UTC"
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.
Paul Merrell

Utah lawmaker questions city water going to NSA - 0 views

  • SALT LAKE CITY – A Utah lawmaker concerned about government spying on its citizens is questioning whether city water service should be cut off to a massive National Security Agency data storage facility outside Salt Lake City.Republican Rep. Marc Roberts, of Santaquin, said there are serious questions about privacy and surveillance surrounding the center, and several Utah residents who spoke at a legislative committee hearing Wednesday agreed.During the last legislative session, lawmakers opted to hold off on Roberts' bill to shut off the facility's water and decided to study it during the interim."This is not a bill just about a data center. This is a bill about civil rights," web developer Joe Levi said. "This is a bill that needs to be taken up and needs to be taken seriously."Pete Ashdown, founder of Salt Lake City-based Internet provider XMission, called the center a stain upon the state and its technology industry. "I do encourage you to stand up and do something about it," he said.Lawmakers said they aren't considering shutting down $1.7 billion facility, but the committee chair acknowledged the concerns and said there might be another way to get the point across. "We may look at some type of a strong message to give our representatives to take back to Congress," said Republican Sen. David Hinkins, of Orangeville.
  • The NSA's largest data storage center in the U.S. was built in Utah over 37 other locations because of open land and cheap electricity. The center sits on a National Guard base about 25 miles south of Salt Lake City in the town of Bluffdale.NSA officials said the center is key to protecting national security networks and allowing U.S. authorities to watch for cyber threats. Beyond that, the agency has offered few details.The center attracted much discussion and concern after revelations last year that the NSA has been collecting millions of U.S. phone records and digital communications stored by major Internet providers.
  • Cybersecurity experts say the nondescript Utah facility is a giant storehouse for phone calls, emails and online records that have been secretly collected.Outside the computer storehouses are large coolers that keep the machines from overheating. The coolers use large amounts of water, which the nearby city of Bluffdale sells to the center at a discounted rate.City records released earlier this year showed monthly water use was much less than the 1 million gallons a day that the U.S. Army Corps of Engineers predicted the center would need, causing some to wonder if the center was fully operational.NSA officials have refused to say if the center is up and running after its scheduled opening in October 2013 was stalled by electrical problems.City utility records showed the NSA has been making monthly minimum payments of about $30,000 to Bluffdale. The city manager said that pays for more water than the center used.The state of Nevada shut off water to the site of the proposed Yucca Mountain nuclear waste dump 90 miles northwest of Las Vegas in 2002, after months of threats.The project didn't run dry because the Energy Department built a 1-million-gallon tank and a small well for the site. Department officials said the stored water, plus 400,000 gallons stored in other tanks at the Nevada Test Site, provided time for scientists to continue experiments and design work at the site.
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  • SALT LAKE CITY – A Utah lawmaker concerned about government spying on its citizens is questioning whether city water service should be cut off to a massive National Security Agency data storage facility outside Salt Lake City.Rep
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    Hey, go for their electricity too! But what do we do with the Bluffdale facility after we abolish the NSA? Turn it over to Internet Archives, with a $1 billion endowment for maintenance? Free and permanent web sites for everyone?  
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