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Paul Merrell

Germany's top prosecutor fired over treason probe - Yahoo News - 0 views

  • A treason investigation against two German journalists claimed its first casualty Tuesday — the country's top prosecutor who ordered the probe.
  • Justice Minister Heiko Maas announced he was seeking the dismissal of Harald Range hours after the chief federal prosecutor accused the government of interfering in his investigation.Maas said he made the decision in consultation with Chancellor Angela Merkel's office, indicating that the sacking was approved at the highest level.The Justice Ministry had questioned Range's decision to open the investigation against two journalists from the website Netzpolitik.org who had reported that Germany's domestic spy agency plans to expand surveillance of online communication.The treason probe was widely criticized and regarded as an embarrassment to the government. Senior officials stressed in recent days that Germany is committed to protecting press freedom.
Gary Edwards

Nokia and Google: Too much emphasis on the mobile OS? | ge TalkBack on ZDNet - 0 views

  • Although it appears that the mobile hardware providers are competing through the development of incompatible platforms, i think there's reason to be hopeful. There seems to be movement towards a universal web application model able to join legacy Web with an Open-Web future where devices, desktops, web-stacks, and clouds connect, access, exchange and collaborate with all kinds of information systems. Above the metal, at the web application layer, there is a war between competing runtime engines. The recent Web 2.0 Conference was a showcase for Sun Java FX, Adobe RiA, and Microsoft .NET Silverlight. The exhibitors floor featured a large and prominent Microsoft Silverlight-Mesh island surrounded by Flex RiA providers, with currents of IT and developers asking the same question; Can Adobe run with Microsoft?
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    Interesting discussion about a universal web application layer able to wrok across devices, browsers and web service systems. I reponded with a very lengthy post about WebKit.
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Gary Edwards

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

  • 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!
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    ge response to Joe McKendrick's SOA article.
Scott Hale

Ask MAMA what the Web is - 0 views

  • Opera Software has led a first-of-its- kind project to create a search engine that tracks how Web pages are structured on the World Wide Web. When released publicly in the coming months, this engine will help browser makers and standards bodies work towards a more standards-driven and compatible Web.Opera today announced results from its MAMA (Metadata Analysis and Mining Application) search engine, a brainchild of Opera engineers that indexes the markup, style, scripting and the technology used while creating Web pages. From the beginning, Opera has been a leading innovator and MAMA is proof of the company’s deep understanding of the Web.The MAMA search engine scours 3.5 million Web pages, and the resulting data can answer questions such as "can I get a sampling of Web pages that have more than 100 hyperlinks?" or "what does an average Web page look like?"—a dream come true for Web developers.
    • Scott Hale
       
      This is a great way to analyize general development trends on the web, etc. but will this really lead to a "search engine"?
  • For more information on Opera’s MAMA project, please visit: dev.opera.com/articles/view/mama/
Paul Merrell

Hakia Retools Semantic Search Engine to Better Battle Google, Yahoo - 0 views

  • Semantic search engine startup Hakia has retooled its Web site, adding tabs for news, images and "credible" site searches as a way to differentiate between its search approach and what it calls the "10 blue links" approach search incumbents Google, Yahoo and Microsoft have used in the first era of search engines. Hakia employs semantic search technologies, leveraging natural language processing to derive broader meaning from search queries.
  • Hakia began hawking "credible" Web sites, vetted by librarians and informational professionals, in April for health and medical searches drawing from sites examined by the Medical Library Association. These sites have a peer review process or strict editorial controls to ensure the accuracy of the information and zero commercial bias. The idea is to clearly define sites users can trust in an age when do-it-yourself chronicling via Wikipedia and other sites that enable crowdsourcing activities has led to some questionable results.
Paul Merrell

Web Hypertext Application Technology Working Group Demos from September 2008 - 0 views

  • HTML 5 demos from September 2008
  • The demos and segments of this talk are: <video> (00:35) postMessage() (05:40) localStorage (15:20) sessionStorage (21:00) Drag and Drop API (29:05) onhashchange (37:30) Form Controls (40:50) <canvas> (56:55) Validation (1:07:20) Questions and Answers (1:09:35)
Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • As regards interoperability, in its Microsoft judgment of 17 September 2007, the Court of First Instance confirmed the principles that must be respected by dominant companies as regards interoperability disclosures. In the complaint by ECIS, Microsoft is alleged to have illegally refused to disclose interoperability information across a broad range of products, including information related to its Office suite, a number of its server products, and also in relation to the so called .NET Framework. The Commission's examination will therefore focus on all these areas, including the question whether Microsoft's new file format Office Open XML, as implemented in Office, is sufficiently interoperable with competitors' products. As for the tying of separate software products, in its Microsoft judgment of 17 September 2007, the Court of First Instance confirmed the principles that must be respected by dominant companies. In a complaint by Opera, a competing browser vendor, Microsoft is alleged to have engaged in illegal tying of its Internet Explorer product to its dominant Windows operating system. The complaint alleges that there is ongoing competitive harm from Microsoft's practices, in particular in view of new proprietary technologies that Microsoft has allegedly introduced in its browser that would reduce compatibility with open internet standards, and therefore hinder competition. In addition, allegations of tying of other separate software products by Microsoft, including desktop search and Windows Live have been brought to the Commission's attention. The Commission's investigation will therefore focus on allegations that a range of products have been unlawfully tied to sales of Microsoft's dominant operating system.
    • Paul Merrell
       
      Note the scope of the original complaint now being prosecuted by DG Competition: [i] tying MSIE to Windows; [ii] adding proprietary tehnology to MSIE that conflict with open internet standards; [iiii] tying desktop search and Windows Live, presumably to Vista. Initial press reports of the DG Competition statement of objections mention only the tying of MSIE to Windows issue,. So we do not yet know whether the other complaints are being prosecuted. But perhaps worthy of note, the press's acknowledged source of information iis Microsoft, which has incentives to soft-pedal the scope of the objections. Also note from the press reports that the Comission has not yet announced its position on the ECIS complaint involving Office and OOXML.
Paul Merrell

Offline Web Apps, Dumb Idea or Really Dumb Idea? - 0 views

  • The amount of work it takes to "offline enable" a Web application is roughly similar to the amount of work it takes to "online enable" a desktop application.
  • I suspect this is the bitter truth that answers the questions asked in articles like  The Frustratingly Unfulfilled Promise of Google Gears where the author laments the lack of proliferation of offline Web applications built on Google Gears. When it first shipped I was looking forward to a platform like Google Gears but after I thought about the problem for a while, I realized that such a platform would be just as useful for "online enabling" desktop applications as it would be for "offline enabling" Web applications. Additionally, I came to the conclusion that the former is a lot more enabling to users than the latter. This is when I started becoming interested in Live Mesh as a Platform, this is one area where I think Microsoft's hearts and minds are in the right place. I want to see more applications like Outlook + RPC over HTTP  not "offline enabled" versions of Outlook Web Access.
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Paul Merrell

Google China | Censorship - 0 views

  • BEIJING, China — Google has finally made its move, shifting searches from China to Hong Kong more than two months after threatening to quit China over hacking and censorship. But the big questions remain unanswered, in particular Beijing’s next move and how the internet giant’s shift will affect access to information for the world’s biggest net population.
Paul Merrell

Intel Could Face Civil Charges in Europe - PC World - 0 views

  • But Intel could face even more payouts if Intel competitors, such as AMD, take civil cases on the back of the Commission's regulatory action, according to Alan Davis, an expert in competition law at Pinsent Masons, the law firm behind OUT-LAW.COM. "This will open the floodgates for competitors to sue," said Davis. "There was a complainant in this case, AMD [Advanced Micro Devices], and without question they and other competitors will pursue a case for damages." "The fine goes to the European Commission's coffers, not to the competitors who suffered damage to their businesses because of Intel's anti-competitive practices," he said. "What is likely to happen is that action will be started and a massive settlement will be made."
Gary Edwards

Sun pitches new cloud as 'Open Platform' * - 0 views

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    Sun takes on the problem of interoperability and portability of applications in a world where there will be many many clouds. At the roll out of the Sun Cloud, key executives explain Sun's implementation of Open Cloud API's and what they see as a pressing need for management tools that will allow some standardization across clouds.

    Sun's Open Cloud API plan is a clean reuse of existing Open Web API's.

    "..... The underpinning of the Open Cloud Platform that Sun will be pitching to developers is a set of cloud APIs, the creation of which is focused under Project Kenai and which has been released under a Community Commons open source license. Sun wants lots of feedback on the APIs and wants these APIs to become a standard too, hence the open license. These APIs describes how virtual elements in a cloud are created, started, stopped, and hibernated using HTTP commands such as GET, PUT, and POST...."

    "...... The upshot is that these APIs will allow programmatic access to virtual infrastructure from Java, PHP, Python, and Ruby and that means system admins can script how virtual resources are deployed. The APIs, as co-creator Tim Bray explains in his blog, are written in JavaScript Object Notation (JSON), not XML. The Q-Layer software is a graphical representation of what is going on down in the APIs, and you can moving virtual resources into the cloud with a click of a mouse using the dashboard or programmatically using the APIs from those four programming languages listed above. (PHP support is not yet available, but will be)....."
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    I can see why Sun picked those four languages first. Can I assume that with a bit of work, this API will be usable from any language with a C "foreign function interface", such as Perl, Common Lisp, Bourne shell, Squeak Smalltalk, and others that your server application might be written in?
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    I read this comment that largely answers my question at: http://www.tbray.org/ongoing/When/200x/2009/03/16/Sun-Cloud "So right now JSON out of a shell tool is not so good. More things like this will create pressure for development of tools to change that, but years of widespread XML/HTML deployment have only produced a few oddly maintained tools. Perhaps that's because you can scrape quite a bit of the web with a couple sed passes, and if I were to have to deal with the mentioned tools, that's probably the route I'd take." (seth w. klein) In other words, with a bit of work, _anything_ that can talk text over HTTP can do this with a bit of work, but an object-oriented is likely to be more at home with JSON (JavaScript Object Notation)
Paul Merrell

Cell Phone Guide For US Protesters, Updated 2014 Edition | Electronic Frontier Foundation - 0 views

  • With major protests in the news again, we decided it's time to update our cell phone guide for protestors. A lot has changed since we last published this report in 2011, for better and for worse. On the one hand, we've learned more about the massive volume of law enforcement requests for cell phone—ranging from location information to actual content—and widespread use of dedicated cell phone surveillance technologies. On the other hand, strong Supreme Court opinions have eliminated any ambiguity about the unconstitutionality of warrantless searches of phones incident to arrest, and a growing national consensus says location data, too, is private. Protesters want to be able to communicate, to document the protests, and to share photos and video with the world. So they'll be carrying phones, and they'll face a complex set of considerations about the privacy of the data those phones hold. We hope this guide can help answer some questions about how to best protect that data, and what rights protesters have in the face of police demands.
Paul Merrell

Google Says Website Encryption Will Now Influence Search Rankings - 0 views

  • Google will begin using website encryption, or HTTPS, as a ranking signal – a move which should prompt website developers who have dragged their heels on increased security measures, or who debated whether their website was “important” enough to require encryption, to make a change. Initially, HTTPS will only be a lightweight signal, affecting fewer than 1% of global queries, says Google. That means that the new signal won’t carry as much weight as other factors, including the quality of the content, the search giant noted, as Google means to give webmasters time to make the switch to HTTPS. Over time, however, encryption’s effect on search ranking make strengthen, as the company places more importance on website security. Google also promises to publish a series of best practices around TLS (HTTPS, is also known as HTTP over TLS, or Transport Layer Security) so website developers can better understand what they need to do in order to implement the technology and what mistakes they should avoid. These tips will include things like what certificate type is needed, how to use relative URLs for resources on the same secure domain, best practices around allowing for site indexing, and more.
  • In addition, website developers can test their current HTTPS-enabled website using the Qualys Lab tool, says Google, and can direct further questions to Google’s Webmaster Help Forums where the company is already in active discussions with the broader community. The announcement has drawn a lot of feedback from website developers and those in the SEO industry – for instance, Google’s own blog post on the matter, shared in the early morning hours on Thursday, is already nearing 1,000 comments. For the most part, the community seems to support the change, or at least acknowledge that they felt that something like this was in the works and are not surprised. Google itself has been making moves to better securing its own traffic in recent months, which have included encrypting traffic between its own servers. Gmail now always uses an encrypted HTTPS connection which keeps mail from being snooped on as it moves from a consumer’s machine to Google’s data centers.
  • While HTTPS and site encryption have been a best practice in the security community for years, the revelation that the NSA has been tapping the cables, so to speak, to mine user information directly has prompted many technology companies to consider increasing their own security measures, too. Yahoo, for example, also announced in November its plans to encrypt its data center traffic. Now Google is helping to push the rest of the web to do the same.
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    The Internet continues to harden in the wake of the NSA revelations. This is a nice nudge by Google.
Paul Merrell

British Prime Minister Suggests Banning Some Online Messaging Apps - NYTimes.com - 0 views

  • Popular messaging services like Snapchat and WhatsApp are in the cross hairs in Britain. That was the message delivered on Monday by Prime Minister David Cameron, who said he would pursue banning encrypted messaging services if Britain’s intelligence services were not given access to the communications. The statement comes as many European politicians are demanding that Internet companies like Google and Facebook provide greater information about people’s online activities after several recent terrorist threats, including the attacks in Paris.
  • Mr. Cameron, who has started to campaign ahead of a national election in Britain in May, said his government, if elected, would ban encrypted online communication tools that could potentially be used by terrorists if the country’s intelligence agencies were not given increased access. The reforms are part of new legislation that would force telecom operators and Internet services providers to store more data on people’s online activities, including social network messages. “Are we going to allow a means of communications which it simply isn’t possible to read?” Mr. Cameron said at an event on Monday, in reference to services like WhatsApp, Snapchat and other encrypted online applications. “My answer to that question is: ‘No, we must not.’ ” Mr. Cameron said his first duty was to protect the country against terrorist attacks.
  • “The attacks in Paris demonstrated the scale of the threat that we face and the need to have robust powers through our intelligence and security agencies in order to keep our people safe,” he added. Any restriction on these online services, however, would not take effect until 2016, at the earliest, and it remained unclear how the British government could stop people from using these apps, which are used by hundreds of millions of people worldwide.
Paul Merrell

Obama to propose legislation to protect firms that share cyberthreat data - The Washing... - 0 views

  • President Obama plans to announce legislation Tuesday that would shield companies from lawsuits for sharing computer threat data with the government in an effort to prevent cyber­attacks. On the heels of a destructive attack at Sony Pictures Entertainment and major breaches at JPMorgan Chase and retail chains, Obama is intent on capitalizing on the heightened sense of urgency to improve the security of the nation’s networks, officials said. “He’s been doing everything he can within his executive authority to move the ball on this,” said a senior administration official who spoke on the condition of anonymity to discuss legislation that has not yet been released. “We’ve got to get something in place that allows both industry and government to work more closely together.”
  • The legislation is part of a broader package, to be sent to Capitol Hill on Tuesday, that includes measures to help protect consumers and students against ­cyberattacks and to give law enforcement greater authority to combat cybercrime. The provision’s goal is to “enshrine in law liability protection for the private sector for them to share specific information — cyberthreat indicators — with the government,” the official said. Some analysts questioned the need for such legislation, saying there are adequate measures in place to enable sharing between companies and the government and among companies.
  • “We think the current information-sharing regime is adequate,” said Mark Jaycox, legislative analyst at the Electronic Frontier Foundation, a privacy group. “More companies need to use it, but the idea of broad legal immunity isn’t needed right now.” The administration official disagreed. The lack of such immunity is what prevents many companies from greater sharing of data with the government, the official said. “We have heard that time and time again,” the official said. The proposal, which builds on a 2011 administration bill, grants liability protection to companies that provide indicators of cyberattacks and threats to the Department of Homeland Security.
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  • But in a provision likely to raise concerns from privacy advocates, the administration wants to require DHS to share that information “in as near real time as possible” with other government agencies that have a cybersecurity mission, the official said. Those include the National Security Agency, the Pentagon’s ­Cyber Command, the FBI and the Secret Service. “DHS needs to take an active lead role in ensuring that unnecessary personal information is not shared with intelligence authorities,” Jaycox said. The debates over government surveillance prompted by disclosures from former NSA contractor Edward Snowden have shown that “the agencies already have a tremendous amount of unnecessary information,” he said.
  • It would reaffirm that federal racketeering law applies to cybercrimes and amends the Computer Fraud and Abuse Act by ensuring that “insignificant conduct” does not fall within the scope of the statute. A third element of the package is legislation Obama proposed Monday to help protect consumers and students against cyberattacks. The theft of personal financial information “is a direct threat to the economic security of American families, and we’ve got to stop it,” Obama said. The plan, unveiled in a speech at the Federal Trade Commission, would require companies to notify customers within 30 days after the theft of personal information is discovered. Right now, data breaches are handled under a patchwork of state laws that the president said are confusing and costly to enforce. Obama’s plan would streamline those into one clear federal standard and bolster requirements for companies to notify customers. Obama is proposing closing loopholes to make it easier to track down cybercriminals overseas who steal and sell identities. “The more we do to protect consumer information and privacy, the harder it is for hackers to damage our businesses and hurt our economy,” he said.
  • Efforts to pass information-sharing legislation have stalled in the past five years, blocked primarily by privacy concerns. The package also contains provisions that would allow prosecution for the sale of botnets or access to armies of compromised computers that can be used to spread malware, would criminalize the overseas sale of stolen U.S. credit card and bank account numbers, would expand federal law enforcement authority to deter the sale of spyware used to stalk people or commit identity theft, and would give courts the authority to shut down botnets being used for criminal activity, such as denial-of-service attacks.
  • The administration official stressed that the legislation will require companies to remove unnecessary personal information before furnishing it to the government in order to qualify for liability protection. It also will impose limits on the use of the data for cybersecurity crimes and instances in which there is a threat of death or bodily harm, such as kidnapping, the official said. And it will require DHS and the attorney general to develop guidelines for the federal government’s use and retention of the data. It will not authorize a company to take offensive cyber-measures to defend itself, such as “hacking back” into a server or computer outside its own network to track a breach. The bill also will provide liability protection to companies that share data with private-sector-developed organizations set up specifically for that purpose. Called information sharing and analysis organizations, these groups often are set up by particular industries, such as banking, to facilitate the exchange of data and best practices.
  • In October, Obama signed an order to protect consumers from identity theft by strengthening security features in credit cards and the terminals that process them. Marc Rotenberg, executive director of the Electronic Privacy Information Center, said there is concern that a federal standard would “preempt stronger state laws” about how and when companies have to notify consumers. The Student Digital Privacy Act would ensure that data entered would be used only for educational purposes. It would prohibit companies from selling student data to third-party companies for purposes other than education. Obama also plans to introduce a Consumer Privacy Bill of Rights. And the White House will host a summit on cybersecurity and consumer protection on Feb. 13 at Stanford University.
Paul Merrell

The Newest Reforms on SIGINT Collection Still Leave Loopholes | Just Security - 0 views

  • Director of National Intelligence James Clapper this morning released a report detailing new rules aimed at reforming the way signals intelligence is collected and stored by certain members of the United States Intelligence Community (IC). The long-awaited changes follow up on an order announced by President Obama one year ago that laid out the White House’s principles governing the collection of signals intelligence. That order, commonly known as PPD-28, purports to place limits on the use of data collected in bulk and to increase privacy protections related to the data collected, regardless of nationality. Accordingly, most of the changes presented as “new” by Clapper’s office  (ODNI) stem directly from the guidance provided in PPD-28, and so aren’t truly new. And of the biggest changes outlined in the report, there are still large exceptions that appear to allow the government to escape the restrictions with relative ease. Here’s a quick rundown.
  • National security letters (NSLs). The report also states that the FBI’s gag orders related to NSLs expire three years after the opening of a full-blown investigation or three years after an investigation’s close, whichever is earlier. However, these expiration dates can be easily overridden by by an FBI Special Agent in Charge or a Deputy Assistant FBI Director who finds that the statutory standards for secrecy about the NSL continue to be satisfied (which at least one court has said isn’t a very high bar). This exception also doesn’t address concerns that NSL gag orders lack adequate due process protections, lack basic judicial oversight, and may violate the First Amendment.
  • Retention policy for non-U.S. persons. The new rules say that the IC must now delete information about “non-U.S. persons” that’s been gathered via signals intelligence after five-years. However, there is a loophole that will let spies hold onto that information indefinitely whenever the Director of National Intelligence determines (after considering the views of the ODNI’s Civil Liberties Protection Officer) that retaining information is in the interest of national security. The new rules don’t say whether the exceptions will be directed at entire groups of people or individual surveillance targets.  Section 215 metadata. Updates to the rules concerning the use of data collected under Section 215 of the Patriot Act includes the requirement that the Foreign Intelligence Surveillance Court (rather than authorized NSA officials) must determine spies have “reasonable, articulable suspicion” prior to query Section 215 data, outside of emergency circumstances. What qualifies as an emergency for these purposes? We don’t know. Additionally, the IC is now limited to two “hops” in querying the database. This means that spies can only play two degrees of Kevin Bacon, instead of the previously allowed three degrees, with the contacts of anyone targeted under Section 215. The report doesn’t explain what would prevent the NSA (or other agency using the 215 databases) from getting around this limit by redesignating a phone number found in the first or second hop as a new “target,” thereby allowing the agency to continue the contact chain.
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  • The report also details the ODNI’s and IC’s plans for the future, including: (1) Working with Congress to reauthorize bulk collection under Section 215. (2) Updating agency guidelines under Executive Order 12333 “to protect the privacy and civil liberties of U.S. persons.” (3) Producing another annual report in January 2016 on the IC’s progress in implementing signals intelligence reforms. These plans raise more questions than they answer. Given the considerable doubts about Section 215’s effectiveness, why is the ODNI pushing for its reauthorization? And what will the ODNI consider appropriate privacy protections under Executive Order 12333?
Paul Merrell

European Lawmakers Demand Answers on Phone Key Theft - The Intercept - 0 views

  • European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday. The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys. The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.” “Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal. Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”
  • “If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday. The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said. Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request. Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.
  • According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year. The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.
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  • While Gemalto was indeed another casualty in Western governments’ sweeping effort to gather as much global intelligence advantage as possible, the leaked documents make clear that the company was specifically targeted. According to the materials published Thursday, GCHQ used a specific codename — DAPINO GAMMA — to refer to the operations against Gemalto. The spies also actively penetrated the email and social media accounts of Gemalto employees across the world in an effort to steal the company’s encryption keys. Evidence of the Gemalto breach rattled the digital security community. “Almost everyone in the world carries cell phones and this is an unprecedented mass attack on the privacy of citizens worldwide,” said Greg Nojeim, senior counsel at the Center for Democracy & Technology, a non-profit that advocates for digital privacy and free online expression. “While there is certainly value in targeted surveillance of cell phone communications, this coordinated subversion of the trusted technical security infrastructure of cell phones means the US and British governments now have easy access to our mobile communications.”
  • For Gemalto, evidence that their vaunted security systems and the privacy of customers had been compromised by the world’s top spy agencies made an immediate financial impact. The company’s shares took a dive on the Paris bourse Friday, falling $500 million. In the U.S., Gemalto’s shares fell as much 10 percent Friday morning. They had recovered somewhat — down 4 percent — by the close of trading on the Euronext stock exchange. Analysts at Dutch financial services company Rabobank speculated in a research note that Gemalto could be forced to recall “a large number” of SIM cards. The French daily L’Express noted today that Gemalto board member Alex Mandl was a founding trustee of the CIA-funded venture capital firm In-Q-Tel. Mandl resigned from In-Q-Tel’s board in 2002, when he was appointed CEO of Gemplus, which later merged with another company to become Gemalto. But the CIA connection still dogged Mandl, with the French press regularly insinuating that American spies could infiltrate the company. In 2003, a group of French lawmakers tried unsuccessfully to create a commission to investigate Gemplus’s ties to the CIA and its implications for the security of SIM cards. Mandl, an Austrian-American businessman who was once a top executive at AT&T, has denied that he had any relationship with the CIA beyond In-Q-Tel. In 2002, he said he did not even have a security clearance.
  • AT&T, T-Mobile and Verizon could not be reached for comment Friday. Sprint declined to comment. Vodafone, the world’s second largest telecom provider by subscribers and a customer of Gemalto, said in a statement, “[W]e have no further details of these allegations which are industrywide in nature and are not focused on any one mobile operator. We will support industry bodies and Gemalto in their investigations.” Deutsche Telekom AG, a German company, said it has changed encryption algorithms in its Gemalto SIM cards. “We currently have no knowledge that this additional protection mechanism has been compromised,” the company said in a statement. “However, we cannot rule out this completely.”
  • Update: Asked about the SIM card heist, White House press secretary Josh Earnest said he did not expect the news would hurt relations with the tech industry: “It’s hard for me to imagine that there are a lot of technology executives that are out there that are in a position of saying that they hope that people who wish harm to this country will be able to use their technology to do so. So, I do think in fact that there are opportunities for the private sector and the federal government to coordinate and to cooperate on these efforts, both to keep the country safe, but also to protect our civil liberties.”
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    Watch for massive class action product defect litigation to be filed against the phone companies.and mobile device manufacturers.  In most U.S. jurisdictions, proof that the vendors/manufacturers  knew of the product defect is not required, only proof of the defect. Also, this is a golden opportunity for anyone who wants to get out of a pricey cellphone contract, since providing a compromised cellphone is a material breach of warranty, whether explicit or implied..   
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