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Gary Edwards

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

www.cato-unbound.org/...rt-shrank-intellectual-commons

patents software-patents

shared by Gary Edwards on 13 Sep 14 - No Cached
  • 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.
  • Gary Edwards on 13 Sep 14
     
    "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. "
  • Paul Merrell on 14 Sep 14
     
    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.
Gary Edwards

Can C.E.O. Satya Nadella Save Microsoft? | Vanity Fair - 0 views

www.vanityfair.com/...-gates-steve-ballmer-microsoft

Microsoft-Cloud

shared by Gary Edwards on 09 Oct 14 - No Cached
  • he new world of computing is a radical break from the past. That’s because of the growth of mobile devices and cloud computing. In the old world, corporations owned and ran Windows P.C.’s and Window servers in their own facilities, with the necessary software installed on them. Everyone used Windows, so everything was developed for Windows. It was a virtuous circle for Microsoft.
  • Now the processing power is in the cloud, and very sophisticated applications, from e-mail to tools you need to run a business, can be run by logging onto a Web site, not from pre-installed software. In addition, the way we work (and play) has shifted from P.C.’s to mobile devices—where Android and Apple’s iOS each outsell Windows by more than 10 to 1. Why develop software to run on Windows if no one is using Windows? Why use Windows if nothing you want can run on it? The virtuous circle has turned vicious.
  • Part of why Microsoft failed with devices is that competitors upended its business model. Google doesn’t charge for the operating system. That’s because Google makes its money on search. Apple can charge high prices because of the beauty and elegance of its devices, where the software and hardware are integrated in one gorgeous package. Meanwhile, Microsoft continued to force outside manufacturers, whose products simply weren’t as compelling as Apple’s, to pay for a license for Windows. And it didn’t allow Office to be used on non-Windows phones and tablets. “The whole philosophy of the company was Windows first,” says Heather Bellini, an analyst at Goldman Sachs. Of course it was: that’s how Microsoft had always made its money.
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  • Nadella lived this dilemma because his job at Microsoft included figuring out the cloud-based future while maintaining the highly profitable Windows server business. And so he did a bunch of things that were totally un-Microsoft-like. He went to talk to start-ups to find out why they weren’t using Microsoft. He put massive research-and-development dollars behind Azure, a cloud-based platform that Microsoft had developed in Skunk Works fashion, which by definition took resources away from the highly profitable existing business.
  • At its core, Azure uses Windows server technology. That helps existing Windows applications run seamlessly on Azure. Technologists sometimes call what Microsoft has done a “hybrid cloud” because companies can use Azure alongside their pre-existing on-site Windows servers. At the same time, Nadella also to some extent has embraced open-source software—free code that doesn’t require a license from Microsoft—so that someone could develop something using non-Microsoft technology, and it would run on Azure. That broadens Azure’s appeal.
  • “In some ways the way people think about Bill and Steve is almost a Rorschach test.” For those who romanticize the Gates era, Microsoft’s current predicament will always be Ballmer’s fault. For others, it’s not so clear. “He left Steve holding a big bag of shit,” the former executive says of Gates. In the year Ballmer officially took over, Microsoft was found to be a predatory monopolist by the U.S. government and was ordered to split into two; the cost of that to Gates and his company can never be calculated. In addition, the dotcom bubble had burst, causing Microsoft stock to collapse, which resulted in a simmering tension between longtime employees, whom the company had made rich, and newer ones, who had missed the gravy train.
  • Right now, Windows itself is fragmented: applications developed for one Windows device, say a P.C., don’t even necessarily work on another Windows device. And if Microsoft develops a new killer application, it almost has to be released for Android and Apple phones, given their market dominance, thereby strengthening those eco-systems, too.
  • They even have a catchphrase: “Re-inventing productivity.”
  • Microsoft’s historical reluctance to open Windows and Office is why it was such a big deal when in late March, less than two months after becoming C.E.O., Nadella announced that Microsoft would offer Office for Apple’s iPad. A team at the company had been working on it for about a year. Ballmer says he would have released it eventually, but Nadella did it immediately. Nadella also announced that Windows would be free for devices smaller than nine inches, meaning phones and small tablets. “Now that we have 30 million users on the iPad using it, that is 30 million people who never used Office before [on an iPad,]” he says. “And to me that’s what really drives us.” These are small moves in some ways, and yet they are also big. “It’s the first time I have listened to a senior Microsoft executive admit that they are behind,” says one institutional investor. “The fact that they are giving away Windows, their bread and butter for 25 years—it is quite a fundamental change.”
  • And whoever does the best job of building the right software experiences to give both organizations and individuals time back so that they can get more out of their time, that’s the core of this company—that’s the soul. That’s what Bill started this company with. That’s the Office franchise. That’s the Windows franchise. We have to re-invent them. . . . That’s where this notion of re-inventing productivity comes from.”
  • what is scarce in all of this abundance is human attention
  • At the Microsoft board meeting in late June 2013, Ballmer announced he had a handshake deal with Nokia’s management to buy the company, pending the Microsoft board’s approval, according to a source close to the events. Ballmer thought he had it and left before the post-board-meeting dinner to attend his son’s middle-school graduation. When he came back the next day, he found that the board had pulled a coup: they informed him they weren’t doing the deal, and it wasn’t up for discussion. For Ballmer, it seems, the unforgivable thing was that Gates had been part of the coup, which Ballmer saw as the ultimate betrayal.
  • Ballmer might be a complicated character, but he has nothing on Gates, whose contradictions have long fascinated Microsoft-watchers. He is someone who has no problem humiliating individuals—he might not even notice—but who genuinely cares deeply about entire populations and is deeply loyal. He is generous in the biggest ways imaginable, and yet in small things, like picking up a lunch tab, he can be shockingly cheap. He can’t make small talk and can come across as totally lacking in E.Q. “The rules of human life that allow you to get along are not complicated,” says one person who knows Gates. “He could write a book on it, but he can’t do it!”
  • And the original idea of having great software people and broad software products and Office being the primary tool that people look to across all these devices, that’ s as true today and as strong as ever.”
  • Meeting Room Plus
  • But he combines that with flashes of insight and humor that leave some wondering whether he can’t do it or simply chooses not to, or both. His most pronounced characteristic shouldn’t be simply labeled a competitive streak, because it is really a fierce, deep need to win. The dislike it bred among his peers in the industry is well known—“Silicon Bully” was the title of an infamous magazine story about him. And yet he left Microsoft for the philanthropic world, where there was no one to bully, only intractable problems to solve.
  • “The Irrelevance of Microsoft” is actually the title of a blog post by an analyst named Benedict Evans, who works at the Silicon Valley venture-capital firm Andreessen Horowitz. On his blog, Evans pointed out that Microsoft’s share of all computing devices that we use to connect to the Internet, including P.C.’s, phones, and tablets, has plunged from 90 percent in 2009 to just around 20 percent today. This staggering drop occurred not because Microsoft lost ground in personal computers, on which its software still dominates, but rather because it has failed to adapt its products to smartphones, where all the growth is, and tablets.
  • The board told Ballmer they wanted him to stay, he says, and they did eventually agree to a slightly different version of the deal. In September, Microsoft announced it was buying Nokia’s devices-and-services business for $7.2 billion. Why? The board finally realized the downside: without Nokia, Microsoft was effectively done in the smartphone business. But, for Ballmer, the damage was done, in more ways than one. He now says it became clear to him that despite the lack of a new C.E.O. he couldn’t stay. Cultural change, he decided, required a change at the top, and, he says,“there was too much water under the bridge with this board.” The feeling was mutual. As a source close to Microsoft says, no one, including Gates, tried to stop him from quitting.
  • in Wall Street’s eyes, Nadella can do no wrong. Microsoft’s stock has risen 30 percent since he became C.E.O., increasing its market value by $87 billion. “It’s interesting with Satya,” says one person who observes him with investors. “He is not a business guy or a financial analyst, but he finds a common language with investors, and in his short tenure, they leave going, Wow.” But the honeymoon is the easy part.
  • “He was so publicly and so early in life defined as the brilliant guy,” says a person who has observed him. “Anything that threatens that, he becomes narcissistic and defensive.” Or as another person puts it, “He throws hissy fits when he doesn’t get his way.”
  • round three-quarters of Microsoft’s profits come from the two fabulously successful products on which the company was built: the Windows operating system, which essentially makes personal computers run, and Office, the suite of applications that includes Word, Excel, and PowerPoint. Financially speaking, Microsoft is still extraordinarily powerful. In the last 12 months the company reported sales of $86.83 billion and earnings of $22.07 billion; it has $85.7 billion of cash on its balance sheet. But the company is facing a confluence of threats that is all the more staggering given Microsoft’s sheer size. Competitors such as Google and Apple have upended Microsoft’s business model, making it unclear where Windows will fit in the world, and even challenging Office. In the Valley, there are two sayings that everyone regards as truth. One is that profits follow relevance. The other is that there’s a difference between strategic position and financial position. “It’s easy to be in denial and think the financials reflect the current reality,” says a close observer of technology firms. “They do not.”
  • Gary Edwards on 09 Oct 14
     
    Awesome article describing the history of Microsoft as seen through the lives of it's three CEO's: Bill Gates, Steve Ballmer and Satya Nadella
Paul Merrell

Profiled From Radio to Porn, British Spies Track Web Users' Online Identities | Global ... - 0 views

www.globalresearch.ca/...5478246

surveillance state GCHQ Black-Hole Karma-Police

shared by Paul Merrell on 27 Sep 15 - No Cached
  • One system builds profiles showing people’s web browsing histories. Another analyzes instant messenger communications, emails, Skype calls, text messages, cell phone locations, and social media interactions. Separate programs were built to keep tabs on “suspicious” Google searches and usage of Google Maps. The surveillance is underpinned by an opaque legal regime that has authorized GCHQ to sift through huge archives of metadata about the private phone calls, emails and Internet browsing logs of Brits, Americans, and any other citizens  all without a court order or judicial warrant.
  • The power of KARMA POLICE was illustrated in 2009, when GCHQ launched a top-secret operation to collect intelligence about people using the Internet to listen to radio shows. The agency used a sample of nearly 7 million metadata records, gathered over a period of three months, to observe the listening habits of more than 200,000 people across 185 countries, including the U.S., the U.K., Ireland, Canada, Mexico, Spain, the Netherlands, France, and Germany.
  • GCHQ’s documents indicate that the plans for KARMA POLICE were drawn up between 2007 and 2008. The system was designed to provide the agency with “either (a) a web browsing profile for every visible user on the Internet, or (b) a user profile for every visible website on the Internet.” The origin of the surveillance system’s name is not discussed in the documents. But KARMA POLICE is also the name of a popular song released in 1997 by the Grammy Award-winning British band Radiohead, suggesting the spies may have been fans. A verse repeated throughout the hit song includes the lyric, “This is what you’ll get, when you mess with us.”
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  • GCHQ vacuums up the website browsing histories using “probes” that tap into the international fiber-optic cables that transport Internet traffic across the world. A huge volume of the Internet data GCHQ collects flows directly into a massive repository named Black Hole, which is at the core of the agency’s online spying operations, storing raw logs of intercepted material before it has been subject to analysis. Black Hole contains data collected by GCHQ as part of bulk “unselected” surveillance, meaning it is not focused on particular “selected” targets and instead includes troves of data indiscriminately swept up about ordinary people’s online activities. Between August 2007 and March 2009, GCHQ documents say that Black Hole was used to store more than 1.1 trillion “events”  a term the agency uses to refer to metadata records  with about 10 billion new entries added every day. As of March 2009, the largest slice of data Black Hole held  41 percent  was about people’s Internet browsing histories. The rest included a combination of email and instant messenger records, details about search engine queries, information about social media activity, logs related to hacking operations, and data on people’s use of tools to browse the Internet anonymously.
  • Throughout this period, as smartphone sales started to boom, the frequency of people’s Internet use was steadily increasing. In tandem, British spies were working frantically to bolster their spying capabilities, with plans afoot to expand the size of Black Hole and other repositories to handle an avalanche of new data. By 2010, according to the documents, GCHQ was logging 30 billion metadata records per day. By 2012, collection had increased to 50 billion per day, and work was underway to double capacity to 100 billion. The agency was developing “unprecedented” techniques to perform what it called “population-scale” data mining, monitoring all communications across entire countries in an effort to detect patterns or behaviors deemed suspicious. It was creating what it saidwould be, by 2013, “the world’s biggest” surveillance engine “to run cyber operations and to access better, more valued data for customers to make a real world difference.” HERE WAS A SIMPLE AIM at the heart of the top-secret program: Record the website browsing habits of “every visible user on the Internet.” Before long, billions of digital records about ordinary people’s online activities were being stored every day. Among them were details cataloging visits to porn, social media and news websites, search engines, chat forums, and blogs.
  • The mass surveillance operation — code-named KARMA POLICE — was launched by British spies about seven years ago without any public debate or scrutiny. It was just one part of a giant global Internet spying apparatus built by the United Kingdom’s electronic eavesdropping agency, Government Communications Headquarters, or GCHQ. The revelations about the scope of the British agency’s surveillance are contained in documents obtained by The Intercept from National Security Agency whistleblower Edward Snowden. Previous reports based on the leaked files have exposed how GCHQ taps into Internet cables to monitor communications on a vast scale, but many details about what happens to the data after it has been vacuumed up have remained unclear.
Paul Merrell

Hacking Team Asks Customers to Stop Using Its Software After Hack | Motherboard - 1 views

motherboard.vice.com/...-using-its-software-after-hack

surveillance state Hacking-Team hacked

shared by Paul Merrell on 07 Jul 15 - No Cached
  • But the hack hasn’t just ruined the day for Hacking Team’s employees. The company, which sells surveillance software to government customers all over the world, from Morocco and Ethiopia to the US Drug Enforcement Agency and the FBI, has told all its customers to shut down all operations and suspend all use of the company’s spyware, Motherboard has learned. “They’re in full on emergency mode,” a source who has inside knowledge of Hacking Team’s operations told Motherboard.
  • Hacking Team notified all its customers on Monday morning with a “blast email,” requesting them to shut down all deployments of its Remote Control System software, also known as Galileo, according to multiple sources. The company also doesn’t have access to its email system as of Monday afternoon, a source said. On Sunday night, an unnamed hacker, who claimed to be the same person who breached Hacking Team’s competitor FinFisher last year, hijacked its Twitter account and posted links to 400GB of internal data. Hacking Team woke up to a massive breach of its systems.
  • A source told Motherboard that the hackers appears to have gotten “everything,” likely more than what the hacker has posted online, perhaps more than one terabyte of data. “The hacker seems to have downloaded everything that there was in the company’s servers,” the source, who could only speak on condition of anonymity, told Motherboard. “There’s pretty much everything here.” It’s unclear how the hackers got their hands on the stash, but judging from the leaked files, they broke into the computers of Hacking Team’s two systems administrators, Christian Pozzi and Mauro Romeo, who had access to all the company’s files, according to the source. “I did not expect a breach to be this big, but I’m not surprised they got hacked because they don’t take security seriously,” the source told me. “You can see in the files how much they royally fucked up.”
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  • For example, the source noted, none of the sensitive files in the data dump, from employees passports to list of customers, appear to be encrypted. “How can you give all the keys to your infrastructure to a 20-something who just joined the company?” he added, referring to Pozzi, whose LinkedIn shows he’s been at Hacking Team for just over a year. “Nobody noticed that someone stole a terabyte of data? You gotta be a fuckwad,” the source said. “It means nobody was taking care of security.”
  • The future of the company, at this point, it’s uncertain. Employees fear this might be the beginning of the end, according to sources. One current employee, for example, started working on his resume, a source told Motherboard. It’s also unclear how customers will react to this, but a source said that it’s likely that customers from countries such as the US will pull the plug on their contracts. Hacking Team asked its customers to shut down operations, but according to one of the leaked files, as part of Hacking Team’s “crisis procedure,” it could have killed their operations remotely. The company, in fact, has “a backdoor” into every customer’s software, giving it ability to suspend it or shut it down—something that even customers aren’t told about. To make matters worse, every copy of Hacking Team’s Galileo software is watermarked, according to the source, which means Hacking Team, and now everyone with access to this data dump, can find out who operates it and who they’re targeting with it.
Paul Merrell

Obama administration opts not to force firms to decrypt data - for now - The Washington... - 1 views

www.washingtonpost.com/...5-aa5b-f78a98956699_story.html

surveillance state encryption Obama

shared by Paul Merrell on 10 Oct 15 - No Cached
  • After months of deliberation, the Obama administration has made a long-awaited decision on the thorny issue of how to deal with encrypted communications: It will not — for now — call for legislation requiring companies to decode messages for law enforcement. Rather, the administration will continue trying to persuade companies that have moved to encrypt their customers’ data to create a way for the government to still peer into people’s data when needed for criminal or terrorism investigations. “The administration has decided not to seek a legislative remedy now, but it makes sense to continue the conversations with industry,” FBI Director James B. Comey said at a Senate hearing Thursday of the Homeland Security and Governmental Affairs Committee.
  • The decision, which essentially maintains the status quo, underscores the bind the administration is in — balancing competing pressures to help law enforcement and protect consumer privacy. The FBI says it is facing an increasing challenge posed by the encryption of communications of criminals, terrorists and spies. A growing number of companies have begun to offer encryption in which the only people who can read a message, for instance, are the person who sent it and the person who received it. Or, in the case of a device, only the device owner has access to the data. In such cases, the companies themselves lack “backdoors” or keys to decrypt the data for government investigators, even when served with search warrants or intercept orders.
  • The decision was made at a Cabinet meeting Oct. 1. “As the president has said, the United States will work to ensure that malicious actors can be held to account — without weakening our commitment to strong encryption,” National Security Council spokesman Mark Stroh said. “As part of those efforts, we are actively engaged with private companies to ensure they understand the public safety and national security risks that result from malicious actors’ use of their encrypted products and services.” But privacy advocates are concerned that the administration’s definition of strong encryption also could include a system in which a company holds a decryption key or can retrieve unencrypted communications from its servers for law enforcement. “The government should not erode the security of our devices or applications, pressure companies to keep and allow government access to our data, mandate implementation of vulnerabilities or backdoors into products, or have disproportionate access to the keys to private data,” said Savecrypto.org, a coalition of industry and privacy groups that has launched a campaign to petition the Obama administration.
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  • To Amie Stepanovich, the U.S. policy manager for Access, one of the groups signing the petition, the status quo isn’t good enough. “It’s really crucial that even if the government is not pursuing legislation, it’s also not pursuing policies that will weaken security through other methods,” she said. The FBI and Justice Department have been talking with tech companies for months. On Thursday, Comey said the conversations have been “increasingly productive.” He added: “People have stripped out a lot of the venom.” He said the tech executives “are all people who care about the safety of America and also care about privacy and civil liberties.” Comey said the issue afflicts not just federal law enforcement but also state and local agencies investigating child kidnappings and car crashes — “cops and sheriffs . . . [who are] increasingly encountering devices they can’t open with a search warrant.”
  • One senior administration official said the administration thinks it’s making enough progress with companies that seeking legislation now is unnecessary. “We feel optimistic,” said the official, who spoke on the condition of anonymity to describe internal discussions. “We don’t think it’s a lost cause at this point.” Legislation, said Rep. Adam Schiff (D-Calif.), is not a realistic option given the current political climate. He said he made a recent trip to Silicon Valley to talk to Twitter, Facebook and Google. “They quite uniformly are opposed to any mandate or pressure — and more than that, they don’t want to be asked to come up with a solution,” Schiff said. Law enforcement officials know that legislation is a tough sell now. But, one senior official stressed, “it’s still going to be in the mix.” On the other side of the debate, technology, diplomatic and commerce agencies were pressing for an outright statement by Obama to disavow a legislative mandate on companies. But their position did not prevail.
  • Daniel Castro, vice president of the Information Technology & Innovation Foundation, said absent any new laws, either in the United States or abroad, “companies are in the driver’s seat.” He said that if another country tried to require companies to retain an ability to decrypt communications, “I suspect many tech companies would try to pull out.”
  • Gonzalo San Gil, PhD. on 10 Oct 15
     
    # ! upcoming Elections...
Gary Edwards

The Time to Pounce Has Come : Is Microsoft slow to the punch on SOA, or just waiting fo... - 0 views

talkback.zdnet.com/5208-10536-0.html

cloud mesh soa

shared by Gary Edwards on 09 Jul 08 - Cached
  • The Time to Pounce Has Come I agree with DonnieBoy. Microsoft will try to leverage their MSOffice monopoly to dominate the newly emerging marketplace of Web-Stack and Cloud Computing solutions. I also believe that for Microsoft, the final pieces of this puzzle fell into place on March 29th, 2008 with ISO approval of the MSOffice-OOXML document format. For most businesses, Microsoft is the "client" in "client/server". The great transition from client/server to client/ Web-Stack /server has been slow because Microsoft was uncertain as to how they could control this transition. Some light was shed on the nature of this "uncertainty" when the Combs vs. Microsoft antitrust case brought forth a 1998 eMail from Chairman Bill to the MSOffice development team. The issue for the good Chairman was that of controlling the formats and protocols used to connect MSOffice to a Web centric world. MSOffice support for Open Web formats and protocols like (X)HTML, CSS, and WebDAV were out of the question. Microsoft needed to figure out how pull off this transition with proprietary formats and protocols. And avoid the wrath of antitrust in the process!
  • Gary Edwards on 09 Jul 08
     
    ge response to Joe McKendrick's SOA article.
Gary Edwards

Siding with HTML over XHTML, My Decision to Switch - Monday By Noon - 0 views

mondaybynoon.com/...er-xhtml-my-decision-to-switch

css html javascript xhtml

shared by Gary Edwards on 03 Jul 08 - Cached
  • Publishing content on the Web is in no way limited to professional developers or designers, much of the reason the net is so active is because anyone can make a website. Sure, we (as knowledgeable professionals or hobbyists) all hope to make the Web a better place by doing our part in publishing documents with semantically rich, valid markup, but the reality is that those documents are rare. It’s important to keep in mind the true nature of the Internet; an open platform for information sharing.
  • XHTML2 has some very good ideas that I hope can become part of the web. However, it’s unrealistic to think that all web authors will switch to an XML-based syntax which demands that browsers stop processing the document on the first error. XML’s draconian policy was an attempt to clean up the web. This was done around 1996 when lots of invalid content entered the web. CSS took a different approach: instead of demanding that content isn’t processed, we defined rules for how to handle the undefined. It’s called “forward-compatible parsing” and means we can add new constructs without breaking the old. So, I don’t think XHTML is a realistic option for the masses. HTML 5 is it.
    • Gary Edwards
      Gary Edwards on 09 Jul 08
       
      Great quote from CSS expert Hakon Wium Lie.
  • @marbux: Of course i disagree with your interop assessment, but I wondered how it is that you’re missing the point. I think you confuse web applications with legacy desktop – client/server application model. And that confusion leads to the mistake of trying to transfer the desktop document model to one that could adequately service advancing web applications.
  • Gary Edwards on 03 Jul 08
     
    A CMS expert argues for HTML over XHTML, explaining his reasons for switching. Excellent read! He nails the basics. for similar reasons, we moved from ODF to ePUB and then to CDf and finally to the advanced WebKit document model, where wikiWORD will make it's stand.
  • Paul Merrell on 09 Jul 08
     
    See also my comment on the same web page that explains why HTML 5 is NOT it for document exchange between web editing applications. .
  • Gary Edwards on 09 Jul 08
     
    Response to marbux supporting the WebKit layout/document model. Marbux argues that HTML5 is not interoperable, and CSS2 near useless. HTML5 fails regarding the the interop web appplications need. I respond by arguing that the only way to look at web applications is to consider that the browser layout engine is the web application layout engine! Web applications are actually written to the browser layout/document model, OR, to take advantage of browser plug-in capabilities. The interoperability marbux seeks is tied directly to the browser layout engine. In this context, the web format is simply a reflection of that layout engine. If there's an interop problem, it comes from browser madness differentials. The good news is that there are all kinds of efforts to close the browser gap: including WHATWG - HTML5, CSS3, W3C DOM, JavaScript Libraries, Google GWT (Java to JavaScript), Yahoo GUI, and the my favorite; WebKit. The bad news is that the clock is ticking. Microsoft has pulled the trigger and the great migration of MSOffice client/server systems to the MS WebSTack-Mesh architecture has begun. Key to this transition are the WPF-.NET proprietary formats, protocols and interfaces such as XAML, Silverlight, LINQ, and Smart Tags. New business processes are being written, and old legacy desktop bound processes are being transitioned to this emerging platform. The fight for the Open Web is on, with Microsoft threatening to transtion their entire business desktop monopoly to a Web platfomr they own. ~ge~
Paul Merrell

W3C releases Working Draft for Widgets 1.0: APIs and Events - 0 views

www.w3.org/...WD-widgets-apis-20090205

W3C widgets APIs events

shared by Paul Merrell on 12 Feb 09 - Cached
  • This specification defines a set of APIs and events for the Widgets 1.0 Family of Specifications that enable baseline functionality for widgets. The APIs and Events defined by this specification defines, amongst other things, the means to:access the metadata declared in a widget's configuration document, receive events related to changes in the view state of a widget, determine the locale under which a widget is currently running, be notified of events relating to the widget being updated, invoke a widget to open a URL on the system's default browser, requests the user's attention in a device independent manner, and check if any additional APIs requested via the configuration document's feature element have successfully loaded.
  • This specification defines a set of APIs and events for widgets that enable baseline functionality for widgets. Widgets are full-fledged client-side applications that are authored using Web standards. They are typically downloaded and installed on a client machine or device where they typically run as stand-alone applications outside of a Web browser. Examples range from simple clocks, stock tickers, news casters, games and weather forecasters, to complex applications that pull data from multiple sources to be "mashed-up" and presented to a user in some interesting and useful way
  • This specification is part of the Widgets 1.0 family of specifications, which together standardize widgets as a whole. The Widgets 1.0: Packaging and Configuration [Widgets-Packaging] standardizes a Zip-based packaging format, an XML-based configuration document format and a series of steps that user agents follow when processing and verifying various aspects of widgets. The Widgets 1.0: Digital Signature [Widgets-DigSig] specification defines a means for widgets to be digitally signed using a custom profile of the XML-Signature Syntax and Processing Specification. The Widgets: 1.0: Automatic Updates [Widgets-Updates] specification defines a version control model that allows widgets to be kept up-to-date over [HTTP].
Matteo Spreafico

Biggest cloud of all: Amazon EC2 makes about $220 million a year - 0 views

blogs.zdnet.com/service-oriented

Clouds Services soa Amazon WebServices

shared by Matteo Spreafico on 04 Oct 09 - Cached
  • Randy Bias just published estimates that AWS is pulling in about $220 million annually for its Elastic Compute Cloud (EC2) offerings.
  • He also estimates that AWS runs about 40,000 servers to support the service.  EC2 probably grew at a rate of 10% from year to year, Randy believes.
  • Amazon has really effectively leveraged the capacity from its retail business to offer services to the rest of the market. Is this something other companies with large IT infrastructures can contemplate?
Gary Edwards

Duke Engines' incredibly compact, lightweight valveless axial engine - 0 views

www.gizmag.com/...33631

Duke-Axial-engine energy

shared by Gary Edwards on 03 Sep 14 - No Cached
  • The Duke engine is an axial design, meaning that its five cylinders encircle the drive shaft and run parallel with it. The pistons drive a star-shaped reciprocator, which nutates around the drive shaft, kind of like a spinning coin coming to rest on a table.
  • The reciprocator's center point is used to drive the central drive shaft, which rotates in the opposite direction to the reciprocator. "That counter-rotation keeps it in tidy balance," says Duke co-founder John Garvey. "If you lay your hand on it while it's running, you can barely detect any motion at all, it's quite remarkable." That's borne out by the video below, where the engine revving doesn't even cause enough vibrations to tip a coin off its side.
  • Instead of cam- or pneumatically-operated intake and outlet valves, the cylinders rotate past intake and outlet ports in a stationary head ring. The spark plugs are also mounted in this stationary ring – the cylinders simply slide past each port or plug at the stage of the cycle it's needed for and move on. In this way, Duke eliminates all the complexity of valve operation and manages to run a five-cylinder engine with just three spark plugs and three fuel injectors. The Duke engine ends up delivering as many power strokes per revolution as a six cylinder engine, but with huge weight savings and a vast reduction in the number of engine parts.
  • ...1 more annotation...
  • The engine has shown excellent resistance to pre-ignition (or detonation) – potentially because its cylinders tend to run cooler than comparable engines. Duke has run compression ratios as high as 14:1 with regular 91-octane gasoline. This suggests that further developments will pull even more power out of a given amount of fuel, increasing the overall efficiency of the unit.
  • Gary Edwards on 03 Sep 14
     
    Watch the second video! This is extraordinary. "New Zealand's Duke Engines has been busy developing and demonstrating excellent results with a bizarre axial engine prototype that completely does away with valves, while delivering excellent power and torque from an engine much smaller, lighter and simpler than the existing technology. We spoke with Duke co-founder John Garvey to find out how the Duke Axial Engine project is going."
Paul Merrell

The Great SIM Heist: How Spies Stole the Keys to the Encryption Castle - 0 views

firstlook.org/...great-sim-heist

surveillance state NSA GCHQ SIM-card-keys mobile-devices decryption

shared by Paul Merrell on 20 Feb 15 - No Cached
  • AMERICAN AND BRITISH spies hacked into the internal computer network of the largest manufacturer of SIM cards in the world, stealing encryption keys used to protect the privacy of cellphone communications across the globe, according to top-secret documents provided to The Intercept by National Security Agency whistleblower Edward Snowden. The hack was perpetrated by a joint unit consisting of operatives from the NSA and its British counterpart Government Communications Headquarters, or GCHQ. The breach, detailed in a secret 2010 GCHQ document, gave the surveillance agencies the potential to secretly monitor a large portion of the world’s cellular communications, including both voice and data. The company targeted by the intelligence agencies, Gemalto, is a multinational firm incorporated in the Netherlands that makes the chips used in mobile phones and next-generation credit cards. Among its clients are AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers around the world. The company operates in 85 countries and has more than 40 manufacturing facilities. One of its three global headquarters is in Austin, Texas and it has a large factory in Pennsylvania. In all, Gemalto produces some 2 billion SIM cards a year. Its motto is “Security to be Free.”
  • With these stolen encryption keys, intelligence agencies can monitor mobile communications without seeking or receiving approval from telecom companies and foreign governments. Possessing the keys also sidesteps the need to get a warrant or a wiretap, while leaving no trace on the wireless provider’s network that the communications were intercepted. Bulk key theft additionally enables the intelligence agencies to unlock any previously encrypted communications they had already intercepted, but did not yet have the ability to decrypt.
  • Leading privacy advocates and security experts say that the theft of encryption keys from major wireless network providers is tantamount to a thief obtaining the master ring of a building superintendent who holds the keys to every apartment. “Once you have the keys, decrypting traffic is trivial,” says Christopher Soghoian, the principal technologist for the American Civil Liberties Union. “The news of this key theft will send a shock wave through the security community.”
  • ...2 more annotations...
  • According to one secret GCHQ slide, the British intelligence agency penetrated Gemalto’s internal networks, planting malware on several computers, giving GCHQ secret access. We “believe we have their entire network,” the slide’s author boasted about the operation against Gemalto. Additionally, the spy agency targeted unnamed cellular companies’ core networks, giving it access to “sales staff machines for customer information and network engineers machines for network maps.” GCHQ also claimed the ability to manipulate the billing servers of cell companies to “suppress” charges in an effort to conceal the spy agency’s secret actions against an individual’s phone. Most significantly, GCHQ also penetrated “authentication servers,” allowing it to decrypt data and voice communications between a targeted individual’s phone and his or her telecom provider’s network. A note accompanying the slide asserted that the spy agency was “very happy with the data so far and [was] working through the vast quantity of product.”
  • The U.S. and British intelligence agencies pulled off the encryption key heist in great stealth, giving them the ability to intercept and decrypt communications without alerting the wireless network provider, the foreign government or the individual user that they have been targeted. “Gaining access to a database of keys is pretty much game over for cellular encryption,” says Matthew Green, a cryptography specialist at the Johns Hopkins Information Security Institute. The massive key theft is “bad news for phone security. Really bad news.”
  • Paul Merrell on 20 Feb 15
     
    Remember all those NSA claims that no evidence of their misbehavior has emerged? That one should never take wing again. Monitoring call content without the involvement of any court? Without a warrant? Without probable cause?  Was there even any Congressional authorization?  Wiretapping unequivocally requires a judicially-approved search warrant. It's going to be very interesting to learn the government's argument for this misconduct's legality. 
Paul Merrell

California Passes Sweeping Law to Protect Online Privacy - The New York Times - 0 views

www.nytimes.com/...fornia-online-privacy-law.html

digital-privacy California legislation

shared by Paul Merrell on 30 Jun 18 - No Cached
  • California has passed a digital privacy law granting consumers more control over and insight into the spread of their personal information online, creating one of the most significant regulations overseeing the data-collection practices of technology companies in the United States.The bill raced through the State Legislature without opposition on Thursday and was signed into law by Gov. Jerry Brown, just hours before a deadline to pull from the November ballot an initiative seeking even tougher oversight over technology companies.The new law grants consumers the right to know what information companies are collecting about them, why they are collecting that data and with whom they are sharing it. It gives consumers the right to tell companies to delete their information as well as to not sell or share their data. Businesses must still give consumers who opt out the same quality of service.It also makes it more difficult to share or sell data on children younger than 16.The legislation, which goes into effect in January 2020, makes it easier for consumers to sue companies after a data breach. And it gives the state’s attorney general more authority to fine companies that don’t adhere to the new regulations.
  • The California law is not as expansive as Europe’s General Data Protection Regulation, or G.D.P.R., a new set of laws restricting how tech companies collect, store and use personal data.But Aleecia M. McDonald, an incoming assistant professor at Carnegie Mellon University who specializes in privacy policy, said California’s privacy measure was one of the most comprehensive in the United States, since most existing laws — and there are not many — do little to limit what companies can do with consumer information.
Paul Merrell

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

arstechnica.com/...ed-backdoor-on-android-devices

malware backdoors Android

shared by Paul Merrell on 07 Jun 19 - No Cached
  • Criminals in 2017 managed to get an advanced backdoor preinstalled on Android devices before they left the factories of manufacturers, Google researchers confirmed on Thursday. Triada first came to light in 2016 in articles published by Kaspersky here and here, the first of which said the malware was "one of the most advanced mobile Trojans" the security firm's analysts had ever encountered. Once installed, Triada's chief purpose was to install apps that could be used to send spam and display ads. It employed an impressive kit of tools, including rooting exploits that bypassed security protections built into Android and the means to modify the Android OS' all-powerful Zygote process. That meant the malware could directly tamper with every installed app. Triada also connected to no fewer than 17 command and control servers. In July 2017, security firm Dr. Web reported that its researchers had found Triada built into the firmware of several Android devices, including the Leagoo M5 Plus, Leagoo M8, Nomu S10, and Nomu S20. The attackers used the backdoor to surreptitiously download and install modules. Because the backdoor was embedded into one of the OS libraries and located in the system section, it couldn't be deleted using standard methods, the report said. On Thursday, Google confirmed the Dr. Web report, although it stopped short of naming the manufacturers. Thursday's report also said the supply chain attack was pulled off by one or more partners the manufacturers used in preparing the final firmware image used in the affected devices.
Paul Merrell

Facebook is done with quality journalism. Deal with it. - 1 views

mondaynote.com/lism-deal-with-it-afc2475f1f84

AI Internet-censorship Facebook journalism

shared by Paul Merrell on 19 Jan 18 - No Cached
  • For Facebook, journalism has been a pain in the neck from day one. Now, bogged down with the insoluble problems of fake news and bad PR, it’s clear that Facebook will gradually pull the plug on news. Publishers should stop whining and move on.Let’s admit that publishers have been screwed by Facebook. Not because Mark Zuckerberg is evil, but because he’s a pragmatist. His latest move should not come as a surprise. On Thursday, for the second time in six months, Facebook stated publicly that news (i.e., journalism) will appear further down in everyone’s newsfeed, in order to favor posts from friends, family and “groups.” Here is how Zuck defended the move:“The research shows that when we use social media to connect with people we care about, it can be good for our well-being. We can feel more connected and less lonely, and that correlates with long term measures of happiness and health. On the other hand, passively reading articles or watching videos — even if they’re entertaining or informative — may not be as good. Based on this, we’re making a major change to how we build Facebook. I’m changing the goal I give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions”.Consider us notified. Facebook is done with journalism. It will happen, slowly, gradually, but the trend is here. In this context, the email sent yesterday by Campbell Brown, Facebook’s head of news partnerships, who states “news remains a top priority for us,” rings hollow.
Paul Merrell

Libra Is Dead: eBay, Stripe, Visa And MasterCard All Abandon Facebook's Cryptocurrency ... - 0 views

www.zerohedge.com/...andon-facebooks-cryptocurrency

Facebook Libra Ebay Mastercard PayPal

shared by Paul Merrell on 12 Oct 19 - No Cached
  • One week after we reported that Facebook's Libra stablecoin project, Libra, was imploding, as online payment giant PayPal quite the Libra network, we can now set the time of death to today - that's when first eBay, then Stripe and finally Mastercard all abandoned Mark Zuckerberg's pet "cryptocurrency" (which was anything but) project. As the FT reports, Ebay and Stripe became the second and third major companies in a week to drop out of Facebook’s planned cryptocurrency, following sustained political pressure and just days before the project’s backers are due to meet for their first board meeting, which may soon be empty.
Paul Merrell

Is Apple an Illegal Monopoly? | OneZero - 0 views

onezero.medium.com/s-secret-monopoly-5718272c16a5

antitrust BigTech

shared by Paul Merrell on 29 Jul 20 - No Cached
  • That’s not a bug. It’s a function of Apple policy. With some exceptions, the company doesn’t let users pay app makers directly for their apps or digital services. They can only pay Apple, which takes a 30% cut of all revenue and then passes 70% to the developer. (For subscription services, which account for the majority of App Store revenues, that 30% cut drops to 15% after the first year.) To tighten its grip, Apple prohibits the affected apps from even telling users how they can pay their creators directly.In 2018, unwilling to continue paying the “Apple tax,” Netflix followed Spotify and Amazon’s Kindle books app in pulling in-app purchases from its iOS app. Users must now sign up elsewhere, such as on the company’s website, in order for the app to become usable. Of course, these brands are big enough to expect that many users will seek them out anyway.
  • Smaller app developers, meanwhile, have little choice but to play by Apple’s rules. That’s true even when they’re competing with Apple’s own apps, which pay no such fees and often enjoy deeper access to users’ devices and information.Now, a handful of developers are speaking out about it — and government regulators are beginning to listen. David Heinemeier Hansson, the co-founder of the project management software company Basecamp, told members of the U.S. House antitrust subcommittee in January that navigating the App Store’s fees, rules, and review processes can feel like a “Kafka-esque nightmare.”One of the world’s most beloved companies, Apple has long enjoyed a reputation for user-friendly products, and it has cultivated an image as a high-minded protector of users’ privacy. The App Store, launched in 2008, stands as one of its most underrated inventions; it has powered the success of the iPhone—perhaps the most profitable product in human history. The concept was that Apple and developers could share in one another’s success with the iPhone user as the ultimate beneficiary.
  • But critics say that gauzy success tale belies the reality of a company that now wields its enormous market power to bully, extort, and sometimes even destroy rivals and business partners alike. The iOS App Store, in their telling, is a case study in anti-competitive corporate behavior. And they’re fighting to change that — by breaking its choke hold on the Apple ecosystem.
  • ...4 more annotations...
  • Whether Apple customers have a real choice in mobile platforms, once they’ve bought into the company’s ecosystem, is another question. In theory, they could trade in their pricey hardware for devices that run Android, which offers equivalents of many iOS features and apps. In reality, Apple has built its empire on customer lock-in: making its own gadgets and services work seamlessly with one another, but not with those of rival companies. Tasks as simple as texting your friends can become a migraine-inducing mess when you switch from iOS to Android. The more Apple products you buy, the more onerous it becomes to abandon ship.
  • The case against Apple goes beyond iOS. At a time when Apple is trying to reinvent itself as a services company to offset plateauing hardware sales — pushing subscriptions to Apple Music, Apple TV+, Apple News+, and Apple Arcade, as well as its own credit card — the antitrust concerns are growing more urgent. Once a theoretical debate, the question of whether its App Store constitutes an illegal monopoly is now being actively litigated on multiple fronts.
  • The company faces an antitrust lawsuit from consumers; a separate antitrust lawsuit from developers; a formal antitrust complaint from Spotify in the European Union; investigations by the Federal Trade Commission and the Department of Justice; and an inquiry by the antitrust subcommittee of the U.S House of Representatives. At stake are not only Apple’s profits, but the future of mobile software.Apple insists that it isn’t a monopoly, and that it strives to make the app store a fair and level playing field even as its own apps compete on that field. But in the face of unprecedented scrutiny, there are signs that the famously stubborn company may be feeling the pressure to prove it.
  • Tile is hardly alone in its grievances. Apple’s penchant for copying key features of third-party apps and integrating them into its operating system is so well-known among developers that it has a name: “Sherlocking.” It’s a reference to the time—in the early 2000s—when Apple kneecapped a popular third-party web-search interface for Mac OS X, called Watson. Apple built virtually all of Watson’s functionality into its own feature, called Sherlock.In a 2006 blog post, Watson’s developer, Karelia Software, recalled how Apple’s then-CEO Steve Jobs responded when they complained about the company’s 2002 power play. “Here’s how I see it,” Jobs said, according to Karelia founder Dan Wood’s loose paraphrase. “You know those handcars, the little machines that people stand on and pump to move along on the train tracks? That’s Karelia. Apple is the steam train that owns the tracks.”From an antitrust standpoint, the metaphor is almost too perfect. It was the monopoly power of railroads in the late 19th century — and their ability to make or break the businesses that used their tracks — that spurred the first U.S. antitrust regulations.There’s another Jobs quote that’s relevant here. Referencing Picasso’s famous saying, “Good artists copy, great artists steal,” Jobs said of Apple in 2006. “We have always been shameless about stealing great ideas.” Company executives later tried to finesse the quote’s semantics, but there’s no denying that much of iOS today is built on ideas that were not originally Apple’s.
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