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Paul Merrell

ByteDance Caves To Trump, Agrees To Sell 100% Of TikTok To Microsoft | Zero Hedge - 0 views

  • hina’s ByteDance has agreed to divest the U.S. operations of TikTok completely in a bid to save a deal with the White House, after President Donald Trump said on Friday he had decided to ban the popular short-video app, two people familiar with the matter said on Saturday. ByteDance was previously seeking to keep a minority stake in the U.S. business of TikTok, which the White House had rejected. Under the new proposed deal, ByteDance would exit completely and Microsoft Corp would take over TikTok in the United States, the sources said. Some ByteDance investors that are based in the United States may be given the opportunity to take minority stakes in the business, the sources added. The White House did not respond to a request for comment on whether Trump would accept ByteDance’s concession. ByteDance in Beijing did not respond to a request for comment. Under ByteDance’s new proposal, Microsoft will be in charge of protecting all U.S. user data, the sources said. The plan allows for another U.S. company other than Microsoft to take over TikTok in the United States, the sources added.
  • Bytedance has apparently gotten the "tap on the shoulder" from the CCP bigwigs who apparently aren't super thrilled about the optics of a mighty Chinese conglomerate kowtowing to the Trump Administration. Earlier today, it appeared that President Trump's late-night threat about banning TikTok had motivated ByteDance and Microsoft to speed up their talks. But as the New York afternoon wore on, a Dow Jones headline proclaimed that Microsoft and ByteDance had decided to abruptly stop negotiations.
Paul Merrell

US lawmakers unveil a plan to give all Americans a right to online privacy | CNN Business - 0 views

  • wo leading US lawmakers have reached a bipartisan deal that could, for the first time, grant all Americans a basic right to digital privacy and create a national law regulating how companies can collect, share and use Americans’ online data. If it succeeds, the proposal could establish the US equivalent of the European Union’s landmark privacy law known as the General Data Protection Regulation (GDPR), and rein in what privacy advocates say is a lawless and unregulated space where Americans’ personal data can too easily be shared and sold to the highest bidder. The proposed agreement would create an unprecedented, single federal standard governing digital privacy in the United States and reflects a significant breakthrough after years of stalled negotiations between Republicans and Democrats. But it could also override some of the toughest state-based privacy laws in the nation, such as in California.
Paul Merrell

EU Parliament rejects UN web control - Tells Member States to block ITU proposal | TechEye - 0 views

  • The European Parliament has opposed the UN's International Telecommunications' Union's attempt to take control of the web.  The ITU, a specialised UN agency, is largely expected to appoint itself guardian of the internet in an upcoming meeting. The European Parliament has taken the first official step toward opposing the move, and it told member states that they must act accordingly.  
  • However, this resolution does state that the ITU, or any other single centralised international institution is "not the appropriate body to assert regulatory authority over the internet". It also calls on member states to actively prevent changes to International Telecommunication Regulations which "would be harmful to the openness of the internet, net neutrality, access to creative content online and the participatory governance entrusted to multiple actors such as governments, supranational institutions, NGOs, large and small private operators and the internet public consisting of users and consumers".
  • The Pirate Party considers the resolution a victory. Falkvinge quotes MEP Amelia Andersdotter as saying: "The resolution of the Parliament is a big success for internet users. This sends a clear and positive signal to the European Commission and the Member States".
Paul Merrell

Tell FCC: Don't Back Down On Nation-Wide Free WiFi! - 2 views

  • The Federal Communications Commission's plan to create free public WiFi networks across the nation is rallying the open internet troops -- and seriously rattling the $178 billion wireless industry. When free WiFi first appeared, it generated an explosion of innovation that helped level the playing field for the underprivileged and change the face of modern technology.But a further expansion of free WiFi would also allow us to make calls or surf the Internet without paying a cell carrier for the privilege -- which is why companies like AT&T, T-Mobile and Verizon Wireless are doing their best to take it down.
  • Facts are facts: by breaking the wireless provider monopoly on wireless access, we have a chance to expand Internet use to the poor, bolster innovation and help create a more vibrant online community. Help us take WiFi from carrier-centric to user-centric: Write the FCC to show your support now!MESSAGE FOR FCC CHAIRMAN JULIUS GENACHOWSKI: We stand with your quest to provide nationwide free public WiFi over the next several years, and urge you not to back down when facing threats to innovation from carriers like Verizon, T-Mobile and AT&T.
Paul Merrell

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

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

Save Firefox! | Electronic Frontier Foundation - 0 views

  • The World Wide Web Consortium (W3C), once the force for open standards that kept browsers from locking publishers to their proprietary capabilities, has changed its mission. Since 2013, the organization has provided a forum where today's dominant browser companies and the dominant entertainment companies can collaborate on a system to let our browsers control our behavior, rather than the other way. This system, "Encrypted Media Extensions" (EME) uses standards-defined code to funnel video into a proprietary container called a "Content Decryption Module." For a new browser to support this new video streaming standard -- which major studios and cable operators are pushing for -- it would have to convince those entertainment companies or one of their partners to let them have a CDM, or this part of the "open" Web would not display in their new browser. This is the opposite of every W3C standard to date: once, all you needed to do to render content sent by a server was follow the standard, not get permission. If browsers had needed permission to render a page at the launch of Mozilla, the publishers would have frozen out this new, pop-up-blocking upstart. Kiss Firefox goodbye, in other words.
  • The W3C didn't have to do this. No copyright law says that making a video gives you the right to tell people who legally watch it how they must configure their equipment. But because of the design of EME, copyright holders will be able to use the law to shut down any new browser that tries to render the video without their permission. That's because EME is designed to trigger liability under section 1201 of the Digital Millennium Copyright Act (DMCA), which says that removing a digital lock that controls access to a copyrighted work without permission is an offense, even if the person removing the lock has the right to the content it restricts. In other words, once a video is sent with EME, a new company that unlocks it for its users can be sued, even if the users do nothing illegal with that video. We proposed that the W3C could protect new browsers by making their members promise not to use the DMCA to attack new entrants in the market, an idea supported by a diverse group of W3C members, but the W3C executive overruled us saying the work would go forward with no safeguards for future competition. It's even worse than at first glance. The DMCA isn't limited to the USA: the US Trade Representative has spread DMCA-like rules to virtually every country that does business with America. Worse still: the DMCA is also routinely used by companies to threaten and silence security researchers who reveal embarrassing defects in their products. The W3C also declined to require its members to protect security researchers who discover flaws in EME, leaving every Web user vulnerable to vulnerabilities whose disclosure can only safely take place if the affected company decides to permit it.
  • The W3C needs credibility with people who care about the open Web and innovation in order to be viable. They are sensitive to this kind of criticism. We empathize. There are lots of good people working there, people who genuinely, passionately want the Web to stay open to everyone, and to be safe for its users. But the organization made a terrible decision when it opted to provide a home for EME, and an even worse one when it overruled its own members and declined protection for security research and new competitors. It needs to hear from you now. Please share this post, and spread the word. Help the W3C be the organization it is meant to be.
Paul Merrell

EU-US Personal Data Privacy Deal 'Cracked Beyond Repair' - 0 views

  • Privacy Shield is the proposed new deal between the EU and the US that is supposed to safeguard all personal data on EU citizens held on computer systems in the US from being subject to mass surveillance by the US National Security Agency. The data can refer to any transaction — web purchases, cars or clothing — involving an EU citizen whose data is held on US servers. Privacy groups say Privacy Shield — which replaces the Safe Harbor agreement ruled unlawful in October 2015 — does not meet strict EU standard on the use of personal data. Monique Goyens, Director General of the European Consumer Organization (BEUC) told Sputnik: “We consider that the shield is cracked beyond repair and is unlikely to stand scrutiny by the European Court of Justice. A fundamental problem remains that the US side of the shield is made of clay, not iron.”
  • The agreement has been under negotiation for months ever since the because the European Court of Justice ruled in October 2015 that the previous EU-US data agreement — Safe Harbor — was invalid. The issue arises from the strict EU laws — enshrined in the Charter of Fundamental Rights of the European Union — to the privacy of their personal data.
  • The Safe Harbor agreement was a quasi-judicial understanding that the US undertook to agree that it would ensure that EU citizens’ data on US servers would be held and protected under the same restrictions as it would be under EU law and directives. The data covers a huge array of information — from Internet and communications usage, to sales transactions, import and exports.
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  • The case arose when Maximillian Schrems, a Facebook user, lodged a complaint with the Irish Data Protection Commissioner, arguing that — in the light of the revelations by ex-CIA contractor Edward Snowden of mass surveillance by the US National Security Agency (NSA) — the transfer of data from Facebook’s Irish subsidiary onto the company’s servers in the US does not provide sufficient protection of his personal data. The court ruled that: “the Safe Harbor Decision denies the national supervisory authorities their powers where a person calls into question whether the decision is compatible with the protection of the privacy and of the fundamental rights and freedoms of individuals.”
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    Off we go for another trip to the European Court of Justice.
Paul Merrell

Lawmakers warn of 'radical' move by NSA to share information | TheHill - 0 views

  • A bipartisan pair of lawmakers is expressing alarm at reported changes at the National Security Agency that would allow the intelligence service’s information to be used for policing efforts in the United States.“If media accounts are true, this radical policy shift by the NSA would be unconstitutional, and dangerous,” Reps. Ted Lieu (D-Calif.) and Blake FarentholdBlake FarentholdLawmakers warn of 'radical' move by NSA to share information Overnight Tech: Netflix scores win over Postal Service Lawmakers go green for St. Patrick's Day MORE (R-Texas) wrote in a letter to the spy agency this week. “The proposed shift in the relationship between our intelligence agencies and the American people should not be done in secret.ADVERTISEMENT“NSA’s mission has never been, and should never be, domestic policing or domestic spying.”The NSA has yet to publicly announce the change, but The New York Times reported last month that the administration was poised to expand the agency's ability to share information that it picks up about people’s communications with other intelligence agencies.The modification would open the door for the NSA to give the FBI and other federal agencies uncensored communications of foreigners and Americans picked up incidentally — but without a warrant — during sweeps.  
  • Robert Litt, the general counsel at the Office of the Director of National Intelligence, told the Times that it was finalizing a 21-page draft of procedures to allow the expanded sharing.  Separately, the Guardian reported earlier this month that the FBI had quietly changed its internal privacy rules to allow direct access to the NSA’s massive storehouse of communication data picked up on Internet service providers and websites.The revelations unnerved civil liberties advocates, who encouraged lawmakers to demand answers of the spy agency.“Under a policy like this, information collected by the NSA would be available to a host of federal agencies that may use it to investigate and prosecute domestic crimes,” said Neema Singh Guliani, legislative counsel and the American Civil Liberties Union. “Making such a change without authorization from Congress or the opportunity for debate would ignore public demands for greater transparency and oversight over intelligence activities.”In their letter this week, Lieu and Farenthold warned that the NSA’s changes would undermine Congress and unconstitutionally violate people’s privacy rights.   
  • “The executive branch would be violating the separation of powers by unilaterally transferring warrantless data collected under the NSA’s extraordinary authority to domestic agencies, which do not have such authority,” they wrote.“Domestic law enforcement agencies — which need a warrant supported by probable cause to search or seize — cannot do an end run around the Fourth Amendment by searching warrantless information collected by the NSA.”
Paul Merrell

US judge slams surveillance requests as "repugnant to the Fourth Amendment" - World Soc... - 0 views

  • Federal Magistrate Judge John M. Facciola denied a US government request earlier this month for a search and seizure warrant, targeting electronic data stored on Apple Inc. property. Facciola’s order, issued on March 7, 2014, rejected what it described as only the latest in a series of “overbroad search and seizure requests,” and “unconstitutional warrant applications” submitted by the US government to the US District Court for the District of Columbia. Facciola referred to the virtually unlimited warrant request submitted by the Justice Department as “repugnant to the Fourth Amendment.” The surveillance request sought information in relation to a “kickback investigation” of a defense contractor, details about which remain secret. It is significant, however, that the surveillance request denied by Facciola relates to a criminal investigation, unrelated to terrorism. This demonstrates that the use by the Obama administration of blanket warrants enabling them to seize all information on a person's Internet accounts is not limited to terrorism, as is frequently claimed, but is part of a program of general mass illegal spying on the American people.
  • Facciola’s ruling states in no uncertain terms that the Obama administration has aggressively and repeatedly sought expansive, unconstitutional warrants, ignoring the court’s insistence for specific, narrowly targeted surveillance requests. “The government continues to submit overly broad warrants and makes no effort to balance the law enforcement interest against the obvious expectation of privacy email account holders have in their communications…The government continues to ask for all electronically stored information in email accounts, irrespective of the relevance to the investigation,” wrote Judge Facciola. As stated in the ruling, the surveillance requests submitted to the court by the US government sought the following comprehensive, virtually limitless list of information about the target: “All records or other information stored by an individual using each account, including address books, contact and buddy lists, pictures, and files… All records or other information regarding the identification of the accounts, to include full name, physical address, telephone numbers and other identifies, records of session times and durations, the date on which each account was created, the length of service, the types of service utilized, the Internet Protocol (IP) address used to register each account, log-in IP addresses associated with session times and dates, account status, alternative email addresses provided during registration, methods of connecting, log files, and means of payment (including any credit or bank account number).”
  • Responding to these all-encompassing warrant requests, Judge Facciola ruled that evidence of probable cause was necessary for each specific item sought by the government. “This Court is increasingly concerned about the government’s applications for search warrants for electronic data. In essence, its applications ask for the entire universe of information tied to a particular account, even if it has established probable cause only for certain information,” Facciola wrote. “It is the Court’s duty to reject any applications for search warrants where the standard of probable cause has not been met… To follow the dictates of the Fourth Amendment and to avoid issuing a general warrant, a court must be careful to ensure that probable cause exists to seize each item specified in the warrant application… Any search of an electronic source has the potential to unearth tens or hundreds of thousands of individual documents, pictures, movies, or other constitutionally protected content.” Facciola also noted in the ruling that the government never reported the length of time it would keep the data, or whether it planned to destroy the data at any point.
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  • Facciola’s ruling represents a reversal from a previous ruling, in which a Kansas judge allowed the government to conduct such unlimited searches of Yahoo accounts.
  • In testimony, De and his deputy Brad Wiegmann rejected the privacy board’s advice that the agency limit its data mining to specific targets approved by specific warrants. “If you have to go back to court every time you look at the information in your custody, you can imagine that would be quite burdensome,” said Wiegmann. De further said on the topic, “That information is at the government’s disposal to review in the first instance.” As these statements indicate, the intelligence establishment rejects any restrictions on their prerogative to spy on every aspect of citizens lives at will, even the entirely cosmetic regulations proposed by the Obama administration-appointed PCLOB.
Paul Merrell

EU Committee Votes to Make All Smartphone Vendors Utilize a Standard Charger - HotHardware - 0 views

  • The EU has been known to make a lot of odd decisions when it comes to tech, such as forcing Microsoft's hand at including a "browser wheel" with its Windows OS, but this latest decision is one I think most people will agree with. One thing that's frustrating about different smartphones is the occasional requirement to use a different charger. More frustrating is actually losing one of these chargers, and being unable to charge your phone even though you might have 8 of another charger readily available.
  • While this decision would cut down on this happening, the focus is to cut down on waste. On Thursday, the EU's internal market and consumer protection committee voted on forcing smartphone vendors to adopt a standard charger, which common sense would imply means micro USB, given it's already featured on the majority of smartphones out there. The major exception is Apple, which deploys a Lightning connector with its latest iPhones. Apple already offers Lightning to micro USB cables, but again, those are only useful if you happen to own one, making a sudden loss of a charger all-the-more frustrating. While Lightning might offer some slight benefits, Apple implementing a micro USB connector instead would make situations like those a lot easier to deal with (I am sure a lot of us have multiple micro USB cables lying around). Even though this law was a success in the initial voting, the government group must still bring the proposal to the Council which will then lead to another vote being made in the Parliament. If it does end up passing, I have a gut feeling that Apple will modify only its European models to adhere to the law, while its worldwide models will remain with the Lightning connector. Or, Apple might be able to circumvent the law if it offers to include the micro USB cable in the box, essentially shipping the phone with that connector.
Paul Merrell

Tim Berners-Lee, W3C Approve Work On DRM For HTML 5.1 - Slashdot - 1 views

  • "Danny O'Brien from the EFF has a weblog post about how the Encrypted Media Extension (EME) proposal will continue to be part of HTML Work Group's bailiwick and may make it into a future HTML revision." From O'Brien's post: "A Web where you cannot cut and paste text; where your browser can't 'Save As...' an image; where the 'allowed' uses of saved files are monitored beyond the browser; where JavaScript is sealed away in opaque tombs; and maybe even where we can no longer effectively 'View Source' on some sites, is a very different Web from the one we have today. It's a Web where user agents—browsers—must navigate a nest of enforced duties every time they visit a page. It's a place where the next Tim Berners-Lee or Mozilla, if they were building a new browser from scratch, couldn't just look up the details of all the 'Web' technologies. They'd have to negotiate and sign compliance agreements with a raft of DRM providers just to be fully standards-compliant and interoperable."
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    From the Dept. of YouGottaBeKiddingMe. 
Paul Merrell

This project aims to make '404 not found' pages a thing of the past - 0 views

  • The Internet is always changing. Sites are rising and falling, content is deleted, and bad URLs can lead to '404 Not Found' errors that are as helpful as a brick wall. A new project proposes an do away with dead 404 errors by implementing new HTML code that will help access prior versions of hyperlinked content. With any luck, that means that you’ll never have to run into a dead link again. The “404-No-More” project is backed by a formidable coalition including members from organizations like the Harvard Library Innovation Lab, Los Alamos National Laboratory, Old Dominion University, and the Berkman Center for Internet & Society. Part of the Knight News Challenge, which seeks to strengthen the Internet for free expression and innovation through a variety of initiatives, 404-No-More recently reached the semifinal stage. The project aims to cure so-called link rot, the process by which hyperlinks become useless overtime because they point to addresses that are no longer available. If implemented, websites such as Wikipedia and other reference documents would be vastly improved. The new feature would also give Web authors a way provide links that contain both archived copies of content and specific dates of reference, the sort of information that diligent readers have to hunt down on a website like Archive.org.
  • While it may sound trivial, link rot can actually have real ramifications. Nearly 50 percent of the hyperlinks in Supreme Court decisions no longer work, a 2013 study revealed. Losing footnotes and citations in landmark legal decisions can mean losing crucial information and context about the laws that govern us. The same study found that 70 percent of URLs within the Harvard Law Review and similar journals didn’t link to the originally cited information, considered a serious loss surrounding the discussion of our laws. The project’s proponents have come up with more potential uses as well. Activists fighting censorship will have an easier time combatting government takedowns, for instance. Journalists will be much more capable of researching dynamic Web pages. “If every hyperlink was annotated with a publication date, you could automatically view an archived version of the content as the author intended for you to see it,” the project’s authors explain. The ephemeral nature of the Web could no longer be used as a weapon. Roger Macdonald, a director at the Internet Archive, called the 404-No-More project “an important contribution to preservation of knowledge.”
  • The new feature would come in the form of introducing the mset attribute to the <a> element in HTML, which would allow users of the code to specify multiple dates and copies of content as an external resource. For instance, if both the date of reference and the location of a copy of targeted content is known by an author, the new code would like like this: The 404-No-More project’s goals are numerous, but the ultimate goal is to have mset become a new HTML standard for hyperlinks. “An HTML standard that incorporates archives for hyperlinks will loop in these efforts and make the Web better for everyone,” project leaders wrote, “activists, journalists, and regular ol’ everyday web users.”
Paul Merrell

Democrats unveil legislation forcing the FCC to ban Internet fast lanes - The Washingto... - 0 views

  • Democratic lawmakers will unveil a piece of bicameral legislation Tuesday that would force the Federal Communications Commission to ban fast lanes on the Internet. The proposal, put forward by Senate Judiciary Committee chair Patrick Leahy (D-Vt.) and Rep. Doris Matsui (D-Calif.), requires the FCC to use whatever authority it sees fit to make sure that Internet providers don't speed up certain types of content (like Netflix videos) at the expense of others (like e-mail). It wouldn't give the commission new powers, but the bill — known as the Online Competition and Consumer Choice Act — would give the FCC crucial political cover to prohibit what consumer advocates say would harm startup companies and Internet services by requiring them to pay extra fees to ISPs. "Americans are speaking loud and clear," said Leahy, who is holding a hearing on net neutrality in Vermont this summer. "They want an Internet that is a platform for free expression and innovation, where the best ideas and services can reach consumers based on merit rather than based on a financial relationship with a broadband provider."
  • The Democratic bill is another sign that net neutrality is dividing lawmakers along partisan lines. In May, Rep. Bob Latta (R-Ohio) introduced a bill that would prevent the FCC from reclassifying broadband. A Democratic aide conceded Monday that the Leahy-Matsui bill is unlikely to attract Republican cosponsors. The fact that Republicans control the House make it unlikely that the Leahy-Matsui bill will advance very far. Still, the politics of net neutrality are obscuring the underlying economics at stake, according to the aide, who asked not to be named because he wasn't authorized to speak publicly.
  • "People are missing the point," the aide said. "The point is: Ban paid prioritization. Because that'll fundamentally change how the Internet works." FCC Chairman Tom Wheeler has said that he's reserving the reclassification option in case his existing plan fails to protect consumers. He has been reluctant to use that option so far, likely because it would be politically controversial. But increasingly, it seems net neutrality is divisive enough without him.
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

PATRIOT Act spying programs on death watch - Seung Min Kim and Kate Tummarello - POLITICO - 0 views

  • With only days left to act and Rand Paul threatening a filibuster, Senate Republicans remain deeply divided over the future of the PATRIOT Act and have no clear path to keep key government spying authorities from expiring at the end of the month. Crucial parts of the PATRIOT Act, including a provision authorizing the government’s controversial bulk collection of American phone records, first revealed by Edward Snowden, are due to lapse May 31. That means Congress has barely a week to figure out a fix before before lawmakers leave town for Memorial Day recess at the end of the next week. Story Continued Below The prospects of a deal look grim: Senate Majority Leader Mitch McConnell on Thursday night proposed just a two-month extension of expiring PATRIOT Act provisions to give the two sides more time to negotiate, but even that was immediately dismissed by critics of the program.
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    A must-read. The major danger is that the the Senate could pass the USA Freedom Act, which has already been passed by the House. Passage of that Act, despite its name, would be bad news for civil liberties.  Now is the time to let your Congress critters know that you want them to fight to the Patriot Act provisions expire on May 31, without any replacement legislation.  Keep in mind that Section 502 does not apply just to telephone metadata. It authorizes the FBI to gather without notice to their victims "any tangible thing", specifically including as examples "library circulation records, library patron lists, book sales records, book customer lists, firearms sales records, tax return records, educational records, or medical records containing information that would identify a person." The breadth of the section is illustrated by telephone metadata not even being mentioned in the section.  NSA going after your medical records souand far fetched? Former NSA technical director William Binney says they're already doing it: "Binney alludes to even more extreme intelligence practices that are not yet public knowledge, including the collection of Americans' medical data, the collection and use of client-attorney conversations, and law enforcement agencies' "direct access," without oversight, to NSA databases." https://consortiumnews.com/2015/03/05/seeing-the-stasi-through-nsa-eyes/ So please, contact your Congress critters right now and tell them to sunset the Patriot Act NOW. This will be decided in the next few days so the sooner you contact them the better. 
Paul Merrell

Republicans seek fast-track repeal of net neutrality | Ars Technica - 0 views

  • Republicans in Congress yesterday unveiled a new plan to fast track repeal of the Federal Communications Commission's net neutrality rules. Introduced by Rep. Doug Collins (R-Ga.) and 14 Republican co-sponsors, the "Resolution of Disapproval" would use Congress' fast track powers under the Congressional Review Act to cancel the FCC's new rules.
  • Saying the resolution "would require only a simple Senate majority to pass under special procedural rules of the Congressional Review Act," Collins' announcement called it "the quickest way to stop heavy-handed agency regulations that would slow Internet speeds, increase consumer prices and hamper infrastructure development, especially in his Northeast Georgia district." Republicans can use this method to bypass Democratic opposition in the Senate by requiring just a simple majority rather than 60 votes to overcome a filibuster, but "it would still face an almost certain veto from President Obama," National Journal wrote. "Other attempts to fast-track repeals of regulations in the past have largely been unsuccessful." This isn't the only Republican effort to overturn the FCC's net neutrality rules. Another, titled the "Internet Freedom Act," would wipe out the new net neutrality regime. Other Republican proposals would enforce some form of net neutrality rules while limiting the FCC's power to regulate broadband.
  • The FCC's rules also face lawsuits from industry consortiums that represent broadband providers. USTelecom filed suit yesterday just after the publication of the rules in the Federal Register. Today, the CTIA Wireless Association, National Cable & Telecommunications Association (NCTA), and American Cable Association (ACA) all filed lawsuits to overturn the FCC's Open Internet Order. The CTIA and NCTA are the most prominent trade groups representing the cable and wireless industries. The ACA, which represents smaller providers, said it supports net neutrality rules but opposes the FCC's decision to reclassify broadband as a common carrier service. However, a previous court decision ruled that the FCC could not impose the rules without reclassifying broadband.
Paul Merrell

Legislative Cyber Threats: CISA's Not The Only One | Just Security - 0 views

  • If anyone in the United States Senate had any doubts that the proposed Cyber Information Sharing Act (CISA) was universally hated by a range of civil society groups, a literal blizzard of faxes should’ve cleared up the issue by now. What’s not getting attention is a CISA “alternative” introduced last week by Sens. Mark Warner (D-Va) and Susan Collins (R-Me). Dubbed the “FISMA Reform Act,” the authors make the following claims about the bill:  This legislation would allow the Secretary of Homeland Security to operate intrusion detection and prevention capabilities on all federal agencies on the .gov domain. The bipartisan bill would also direct the Secretary of Homeland Security to conduct risk assessments of any network within the government domain. The bill would allow the Secretary of Homeland Security to operate defensive countermeasures on these networks once a cyber threat has been detected. The legislation would strengthen and streamline the authority Congress gave to DHS last year to issue binding operational directives to federal agencies, especially to respond to substantial cyber security threats in emergency circumstances.
  • The bill would require the Office of Management and Budget to report to Congress annually on the extent to which OMB has exercised its existing authority to enforce government wide cyber security standards. On the surface, it actually sounds like a rational response to the disastrous OPM hack. Unfortunately, the Warner-Collins bill has some vague or problematic language and non-existent definitions that make it potentially just as dangerous for data security and privacy as CISA. The bill would allow the Secretary of Homeland Security to carry out cyber security activities “in conjunction with other agencies and the private sector” [for] “assessing and fostering the development of information security technologies and capabilities for use across multiple agencies.” While the phrase “information sharing” is not present in this subsection, “security technologies and capabilities” is more than broad — and vague — enough to allow it.
  • The bill would also allow the secretary to “acquire, intercept, retain, use, and disclose communications and other system traffic that are transiting to or from or stored on agency information systems and deploy countermeasures with regard to the communications and system traffic.”
  • ...2 more annotations...
  • The bill also allows the head of a federal agency or department “to disclose to the Secretary or a private entity providing assistance to the Secretary…information traveling to or from or stored on an agency information system, notwithstanding any other law that would otherwise restrict or prevent agency heads from disclosing such information to the Secretary.” (Emphasis added.) So confidential, proprietary or other information otherwise precluded from disclosure under laws like HIPAA or the Privacy Act get waived if the Secretary of DHS or an agency head feel that your email needs to be shared with a government contracted outfit like the Hacking Team for analysis. And the bill explicitly provides for just this kind of cyber threat analysis outsourcing:
  • (3) PRIVATE ENTITIES. — The Secretary may enter into contracts or other agreements, or otherwise request and obtain the assistance of, private entities that provide electronic communication or information security services to acquire, intercept, retain, use, and disclose communications and other system traffic in accordance with this subsection. The bill further states that the content of your communications, will be retained only if the communication is associated with a known or reasonably suspected information security threat, and communications and system traffic will not be subject to the operation of a countermeasure unless associated with the threats. (Emphasis added.) “Reasonably suspected” is about as squishy a definition as one can find.
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    "The bill also allows the head of a federal agency or department "to disclose to the Secretary or a private entity providing assistance to the Secretary…information traveling to or from or stored on an agency information system, notwithstanding any other law that would otherwise restrict or prevent agency heads from disclosing such information to the Secretary."" Let's see: if your information is intercepted by the NSA and stored on its "information system" in Bluffdale, Utah, then it can be disclosed to the Secretary of DHS or any private entity providing him/her with assistance, "notwithstanding any other law that would otherwise restrict or prevent agency heads from disclosing such information to the Secretary." And if NSA just happens to be intercepting every digital bit of data generated or received in the entire world, including the U.S., then it's all in play, "notwithstanding any other law that would otherwise restrict or prevent agency heads from disclosing such information to the Secretary.". Sheesh! Our government voyeurs never stop trying to get more nude pix and videos to view.  
Paul Merrell

EXCLUSIVE: Edward Snowden Explains Why Apple Should Continue To Fight the Government on... - 0 views

  • As the Obama administration campaign to stop the commercialization of strong encryption heats up, National Security Agency whistleblower Edward Snowden is firing back on behalf of the companies like Apple and Google that are finding themselves under attack. “Technologists and companies working to protect ordinary citizens should be applauded, not sued or prosecuted,” Snowden wrote in an email through his lawyer. Snowden was asked by The Intercept to respond to the contentious suggestion — made Thursday on a blog that frequently promotes the interests of the national security establishment — that companies like Apple and Google might in certain cases be found legally liable for providing material aid to a terrorist organization because they provide encryption services to their users.
  • In his email, Snowden explained how law enforcement officials who are demanding that U.S. companies build some sort of window into unbreakable end-to-end encryption — he calls that an “insecurity mandate” — haven’t thought things through. “The central problem with insecurity mandates has never been addressed by its proponents: if one government can demand access to private communications, all governments can,” Snowden wrote. “No matter how good the reason, if the U.S. sets the precedent that Apple has to compromise the security of a customer in response to a piece of government paper, what can they do when the government is China and the customer is the Dalai Lama?”
  • Weakened encryption would only drive people away from the American technology industry, Snowden wrote. “Putting the most important driver of our economy in a position where they have to deal with the devil or lose access to international markets is public policy that makes us less competitive and less safe.”
  • ...1 more annotation...
  • FBI Director James Comey and others have repeatedly stated that law enforcement is “going dark” when it comes to the ability to track bad actors’ communications because of end-to-end encrypted messages, which can only be deciphered by the sender and the receiver. They have never provided evidence for that, however, and have put forth no technologically realistic alternative. Meanwhile, Apple and Google are currently rolling out user-friendly end-to-end encryption for their customers, many of whom have demanded greater privacy protections — especially following Snowden’s disclosures.
Paul Merrell

CISPA is back! - 0 views

  • OPERATION: Fax Big Brother Congress is rushing toward a vote on CISA, the worst spying bill yet. CISA would grant sweeping legal immunity to giant companies like Facebook and Google, allowing them to do almost anything they want with your data. In exchange, they'll share even more of your personal information with the government, all in the name of "cybersecurity." CISA won't stop hackers — Congress is stuck in 1984 and doesn't understand modern technology. So this week we're sending them thousands of faxes — technology that is hopefully old enough for them to understand. Stop CISA. Send a fax now!
  • (Any tweet w/ #faxbigbrother will get faxed too!) Your email is only shown in your fax to Congress. We won't add you to any mailing lists.
  • CISA: the dirty deal between government and corporate giants. It's the dirty deal that lets much of government from the NSA to local police get your private data from your favorite websites and lets them use it without due process. The government is proposing a massive bribe—they will give corporations immunity for breaking virtually any law if they do so while providing the NSA, DHS, DEA, and local police surveillance access to everyone's data in exchange for getting away with crimes, like fraud, money laundering, or illegal wiretapping. Specifically it incentivizes companies to automatically and simultaneously transfer your data to the DHS, NSA, FBI, and local police with all of your personally-indentifying information by giving companies legal immunity (notwithstanding any law), and on top of that, you can't use the Freedom of Information Act to find out what has been shared.
  • ...1 more annotation...
  • The NSA and members of Congress want to pass a "cybersecurity" bill so badly, they’re using the recent hack of the Office of Personnel Management as justification for bringing CISA back up and rushing it through. In reality, the OPM hack just shows that the government has not been a good steward of sensitive data and they need to institute real security measures to fix their problems. The truth is that CISA could not have prevented the OPM hack, and no Senator could explain how it could have. Congress and the NSA are using irrational hysteria to turn the Internet into a place where the government has overly broad, unchecked powers. Why Faxes? Since 2012, online and civil liberties groups and 30,000+ sites have driven more than 2.6 million emails and hundreds of thousands of calls, tweets and more to Congress opposing overly broad cybersecurity legislation. Congress has tried to pass CISA in one form or another 4 times, and they were beat back every time by people like you. It's clear Congress is completely out of touch with modern technology, so this week, as Congress rushes toward a vote on CISA, we are going to send them thousands of faxes, a technology from the 1980s that is hopefully antiquated enough for them to understand. Sending a fax is super easy — you can use this page to send a fax. Any tweet with the hashtag #faxbigbrother will get turned into a fax to Congress too, so what are you waiting for? Click here to send a fax now!
Paul Merrell

OpenSolaris Governance Board resigns - The H Open Source: News and Features - 0 views

  • As it had previously threatened, the OpenSolaris Governance Board (OGB) has now resigned. The dissolution motion was proposed and passed unopposed in a fourteen minute long meeting of the OGB. The motion cited the fact that Oracle had ignored requests to see a liaison appointed to work with the OGB and had distributed an internal email terminating the OpenSolaris project. Another part of the dissolution motion stated, "The desire and enthusiasm for continuing open development of the OpenSolaris code base has clearly passed out of Oracle's (and thus this community's) hands into other communities" before resolving that the members of the OGB collectively resigned.
  •  
    It's official now. OpenSolaris is abandonware, leaving OpenBSD as the major open Unix platform still supported.    
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