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Paul Merrell

Rand Paul Is Right: NSA Routinely Monitors Americans' Communications Without Warrants - 0 views

  • On Sunday’s Face the Nation, Sen. Rand Paul was asked about President Trump’s accusation that President Obama ordered the NSA to wiretap his calls. The Kentucky senator expressed skepticism about the mechanics of Trump’s specific charge, saying: “I doubt that Trump was a target directly of any kind of eavesdropping.” But he then made a broader and more crucial point about how the U.S. government spies on Americans’ communications — a point that is deliberately obscured and concealed by U.S. government defenders. Paul explained how the NSA routinely and deliberately spies on Americans’ communications — listens to their calls and reads their emails — without a judicial warrant of any kind: The way it works is, the FISA court, through Section 702, wiretaps foreigners and then [NSA] listens to Americans. It is a backdoor search of Americans. And because they have so much data, they can tap — type Donald Trump into their vast resources of people they are tapping overseas, and they get all of his phone calls. And so they did this to President Obama. They — 1,227 times eavesdrops on President Obama’s phone calls. Then they mask him. But here is the problem. And General Hayden said this the other day. He said even low-level employees can unmask the caller. That is probably what happened to Flynn. They are not targeting Americans. They are targeting foreigners. But they are doing it purposefully to get to Americans.
  • Paul’s explanation is absolutely correct. That the NSA is empowered to spy on Americans’ communications without a warrant — in direct contravention of the core Fourth Amendment guarantee that “the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause” — is the dirty little secret of the U.S. Surveillance State. As I documented at the height of the controversy over the Snowden reporting, top government officials — including President Obama — constantly deceived (and still deceive) the public by falsely telling them that their communications cannot be monitored without a warrant. Responding to the furor created over the first set of Snowden reports about domestic spying, Obama sought to reassure Americans by telling Charlie Rose: “What I can say unequivocally is that if you are a U.S. person, the NSA cannot listen to your telephone calls … by law and by rule, and unless they … go to a court, and obtain a warrant, and seek probable cause.” The right-wing chairman of the House Intelligence Committee at the time, GOP Rep. Mike Rogers, echoed Obama, telling CNN the NSA “is not listening to Americans’ phone calls. If it did, it is illegal. It is breaking the law.” Those statements are categorically false. A key purpose of the new 2008 FISA law — which then-Senator Obama voted for during the 2008 general election after breaking his primary-race promise to filibuster it — was to legalize the once-controversial Bush/Cheney warrantless eavesdropping program, which the New York Times won a Pulitzer Prize for exposing in 2005. The crux of the Bush/Cheney controversy was that they ordered NSA to listen to Americans’ international telephone calls without warrants — which was illegal at the time — and the 2008 law purported to make that type of domestic warrantless spying legal.
Paul Merrell

American and British Spy Agencies Targeted In-Flight Mobile Phone Use - 0 views

  • In the trove of documents provided by former National Security Agency contractor Edward Snowden is a treasure. It begins with a riddle: “What do the President of Pakistan, a cigar smuggler, an arms dealer, a counterterrorism target, and a combatting proliferation target have in common? They all used their everyday GSM phone during a flight.” This riddle appeared in 2010 in SIDtoday, the internal newsletter of the NSA’s Signals Intelligence Directorate, or SID, and it was classified “top secret.” It announced the emergence of a new field of espionage that had not yet been explored: the interception of data from phone calls made on board civil aircraft. In a separate internal document from a year earlier, the NSA reported that 50,000 people had already used their mobile phones in flight as of December 2008, a figure that rose to 100,000 by February 2009. The NSA attributed the increase to “more planes equipped with in-flight GSM capability, less fear that a plane will crash due to making/receiving a call, not as expensive as people thought.” The sky seemed to belong to the agency.
Paul Merrell

Archiveteam - 0 views

  • HISTORY IS OUR FUTURE And we've been trashing our history Archive Team is a loose collective of rogue archivists, programmers, writers and loudmouths dedicated to saving our digital heritage. Since 2009 this variant force of nature has caught wind of shutdowns, shutoffs, mergers, and plain old deletions - and done our best to save the history before it's lost forever. Along the way, we've gotten attention, resistance, press and discussion, but most importantly, we've gotten the message out: IT DOESN'T HAVE TO BE THIS WAY. This website is intended to be an offloading point and information depot for a number of archiving projects, all related to saving websites or data that is in danger of being lost. Besides serving as a hub for team-based pulling down and mirroring of data, this site will provide advice on managing your own data and rescuing it from the brink of destruction. Currently Active Projects (Get Involved Here!) Archive Team recruiting Want to code for Archive Team? Here's a starting point.
  • Archive Team is a loose collective of rogue archivists, programmers, writers and loudmouths dedicated to saving our digital heritage. Since 2009 this variant force of nature has caught wind of shutdowns, shutoffs, mergers, and plain old deletions - and done our best to save the history before it's lost forever. Along the way, we've gotten attention, resistance, press and discussion, but most importantly, we've gotten the message out: IT DOESN'T HAVE TO BE THIS WAY. This website is intended to be an offloading point and information depot for a number of archiving projects, all related to saving websites or data that is in danger of being lost. Besides serving as a hub for team-based pulling down and mirroring of data, this site will provide advice on managing your own data and rescuing it from the brink of destruction.
  • Who We Are and how you can join our cause! Deathwatch is where we keep track of sites that are sickly, dying or dead. Fire Drill is where we keep track of sites that seem fine but a lot depends on them. Projects is a comprehensive list of AT endeavors. Philosophy describes the ideas underpinning our work. Some Starting Points The Introduction is an overview of basic archiving methods. Why Back Up? Because they don't care about you. Back Up your Facebook Data Learn how to liberate your personal data from Facebook. Software will assist you in regaining control of your data by providing tools for information backup, archiving and distribution. Formats will familiarise you with the various data formats, and how to ensure your files will be readable in the future. Storage Media is about where to get it, what to get, and how to use it. Recommended Reading links to others sites for further information. Frequently Asked Questions is where we answer common questions.
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    The Archive Team Warrior is a virtual archiving appliance. You can run it to help with the ArchiveTeam archiving efforts. It will download sites and upload them to our archive - and it's really easy to do! The warrior is a virtual machine, so there is no risk to your computer. The warrior will only use your bandwidth and some of your disk space. It will get tasks from and report progress to the Tracker. Basic usage The warrior runs on Windows, OS X and Linux using a virtual machine. You'll need one of: VirtualBox (recommended) VMware workstation/player (free-gratis for personal use) See below for alternative virtual machines Partners with and contributes lots of archives to the Wayback Machine. Here's how you can help by contributing some bandwidth if you run an always-on box with an internet connection.
Gonzalo San Gil, PhD.

Linux Kernel Security (SELinux vs AppArmor vs Grsecurity) | [ # ! 2009 to check and update...] - 0 views

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    " Unfortunately, stock kernel is not secured out of box. There are some important Linux kernel patches to secure your box"
Gonzalo San Gil, PhD.

Nina Paley Argues Why Copyright Is Brain Damage | Techdirt - 0 views

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    "from the sovereignty-of-your-own-mind dept We first wrote about Nina Paley in 2009, upon hearing about the ridiculous copyright mess she found herself in concerning her wonderful movie Sita Sings the Blues. While she eventually was able to sort out that mess and release the film, she also discovered that the more she shared the film, the more money she made, and she began to question copyright entirely."
Paul Merrell

Profiled From Radio to Porn, British Spies Track Web Users' Online Identities | Global Research - Centre for Research on Globalization - 0 views

  • 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

From Radio to Porn, British Spies Track Web Users' Online Identities - 1 views

  • 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.
  • Amid a renewed push from the U.K. government for more surveillance powers, more than two dozen documents being disclosed today by The Intercept reveal for the first time several major strands of GCHQ’s existing electronic eavesdropping capabilities.
  • 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
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  • 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 said would 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.”
  • A document from the GCHQ target analysis center (GTAC) shows the Black Hole repository’s structure.
  • The data is searched by GCHQ analysts in a hunt for behavior online that could be connected to terrorism or other criminal activity. But it has also served a broader and more controversial purpose — helping the agency hack into European companies’ computer networks. In the lead up to its secret mission targeting Netherlands-based Gemalto, the largest SIM card manufacturer in the world, GCHQ used MUTANT BROTH in an effort to identify the company’s employees so it could hack into their computers. The system helped the agency analyze intercepted Facebook cookies it believed were associated with Gemalto staff located at offices in France and Poland. GCHQ later successfully infiltrated Gemalto’s internal networks, stealing encryption keys produced by the company that protect the privacy of cell phone communications.
  • Similarly, MUTANT BROTH proved integral to GCHQ’s hack of Belgian telecommunications provider Belgacom. The agency entered IP addresses associated with Belgacom into MUTANT BROTH to uncover information about the company’s employees. Cookies associated with the IPs revealed the Google, Yahoo, and LinkedIn accounts of three Belgacom engineers, whose computers were then targeted by the agency and infected with malware. The hacking operation resulted in GCHQ gaining deep access into the most sensitive parts of Belgacom’s internal systems, granting British spies the ability to intercept communications passing through the company’s networks.
  • In March, a U.K. parliamentary committee published the findings of an 18-month review of GCHQ’s operations and called for an overhaul of the laws that regulate the spying. The committee raised concerns about the agency gathering what it described as “bulk personal datasets” being held about “a wide range of people.” However, it censored the section of the report describing what these “datasets” contained, despite acknowledging that they “may be highly intrusive.” The Snowden documents shine light on some of the core GCHQ bulk data-gathering programs that the committee was likely referring to — pulling back the veil of secrecy that has shielded some of the agency’s most controversial surveillance operations from public scrutiny. KARMA POLICE and MUTANT BROTH are among the key bulk collection systems. But they do not operate in isolation — and the scope of GCHQ’s spying extends far beyond them.
  • The agency operates a bewildering array of other eavesdropping systems, each serving its own specific purpose and designated a unique code name, such as: SOCIAL ANTHROPOID, which is used to analyze metadata on emails, instant messenger chats, social media connections and conversations, plus “telephony” metadata about phone calls, cell phone locations, text and multimedia messages; MEMORY HOLE, which logs queries entered into search engines and associates each search with an IP address; MARBLED GECKO, which sifts through details about searches people have entered into Google Maps and Google Earth; and INFINITE MONKEYS, which analyzes data about the usage of online bulletin boards and forums. GCHQ has other programs that it uses to analyze the content of intercepted communications, such as the full written body of emails and the audio of phone calls. One of the most important content collection capabilities is TEMPORA, which mines vast amounts of emails, instant messages, voice calls and other communications and makes them accessible through a Google-style search tool named XKEYSCORE.
  • As of September 2012, TEMPORA was collecting “more than 40 billion pieces of content a day” and it was being used to spy on people across Europe, the Middle East, and North Africa, according to a top-secret memo outlining the scope of the program. The existence of TEMPORA was first revealed by The Guardian in June 2013. To analyze all of the communications it intercepts and to build a profile of the individuals it is monitoring, GCHQ uses a variety of different tools that can pull together all of the relevant information and make it accessible through a single interface. SAMUEL PEPYS is one such tool, built by the British spies to analyze both the content and metadata of emails, browsing sessions, and instant messages as they are being intercepted in real time. One screenshot of SAMUEL PEPYS in action shows the agency using it to monitor an individual in Sweden who visited a page about GCHQ on the U.S.-based anti-secrecy website Cryptome.
  • Partly due to the U.K.’s geographic location — situated between the United States and the western edge of continental Europe — a large amount of the world’s Internet traffic passes through its territory across international data cables. In 2010, GCHQ noted that what amounted to “25 percent of all Internet traffic” was transiting the U.K. through some 1,600 different cables. The agency said that it could “survey the majority of the 1,600” and “select the most valuable to switch into our processing systems.”
  • According to Joss Wright, a research fellow at the University of Oxford’s Internet Institute, tapping into the cables allows GCHQ to monitor a large portion of foreign communications. But the cables also transport masses of wholly domestic British emails and online chats, because when anyone in the U.K. sends an email or visits a website, their computer will routinely send and receive data from servers that are located overseas. “I could send a message from my computer here [in England] to my wife’s computer in the next room and on its way it could go through the U.S., France, and other countries,” Wright says. “That’s just the way the Internet is designed.” In other words, Wright adds, that means “a lot” of British data and communications transit across international cables daily, and are liable to be swept into GCHQ’s databases.
  • A map from a classified GCHQ presentation about intercepting communications from undersea cables. GCHQ is authorized to conduct dragnet surveillance of the international data cables through so-called external warrants that are signed off by a government minister. The external warrants permit the agency to monitor communications in foreign countries as well as British citizens’ international calls and emails — for example, a call from Islamabad to London. They prohibit GCHQ from reading or listening to the content of “internal” U.K. to U.K. emails and phone calls, which are supposed to be filtered out from GCHQ’s systems if they are inadvertently intercepted unless additional authorization is granted to scrutinize them. However, the same rules do not apply to metadata. A little-known loophole in the law allows GCHQ to use external warrants to collect and analyze bulk metadata about the emails, phone calls, and Internet browsing activities of British people, citizens of closely allied countries, and others, regardless of whether the data is derived from domestic U.K. to U.K. communications and browsing sessions or otherwise. In March, the existence of this loophole was quietly acknowledged by the U.K. parliamentary committee’s surveillance review, which stated in a section of its report that “special protection and additional safeguards” did not apply to metadata swept up using external warrants and that domestic British metadata could therefore be lawfully “returned as a result of searches” conducted by GCHQ.
  • Perhaps unsurprisingly, GCHQ appears to have readily exploited this obscure legal technicality. Secret policy guidance papers issued to the agency’s analysts instruct them that they can sift through huge troves of indiscriminately collected metadata records to spy on anyone regardless of their nationality. The guidance makes clear that there is no exemption or extra privacy protection for British people or citizens from countries that are members of the Five Eyes, a surveillance alliance that the U.K. is part of alongside the U.S., Canada, Australia, and New Zealand. “If you are searching a purely Events only database such as MUTANT BROTH, the issue of location does not occur,” states one internal GCHQ policy document, which is marked with a “last modified” date of July 2012. The document adds that analysts are free to search the databases for British metadata “without further authorization” by inputing a U.K. “selector,” meaning a unique identifier such as a person’s email or IP address, username, or phone number. Authorization is “not needed for individuals in the U.K.,” another GCHQ document explains, because metadata has been judged “less intrusive than communications content.” All the spies are required to do to mine the metadata troves is write a short “justification” or “reason” for each search they conduct and then click a button on their computer screen.
  • Intelligence GCHQ collects on British persons of interest is shared with domestic security agency MI5, which usually takes the lead on spying operations within the U.K. MI5 conducts its own extensive domestic surveillance as part of a program called DIGINT (digital intelligence).
  • GCHQ’s documents suggest that it typically retains metadata for periods of between 30 days to six months. It stores the content of communications for a shorter period of time, varying between three to 30 days. The retention periods can be extended if deemed necessary for “cyber defense.” One secret policy paper dated from January 2010 lists the wide range of information the agency classes as metadata — including location data that could be used to track your movements, your email, instant messenger, and social networking “buddy lists,” logs showing who you have communicated with by phone or email, the passwords you use to access “communications services” (such as an email account), and information about websites you have viewed.
  • Records showing the full website addresses you have visited — for instance, www.gchq.gov.uk/what_we_do — are treated as content. But the first part of an address you have visited — for instance, www.gchq.gov.uk — is treated as metadata. In isolation, a single metadata record of a phone call, email, or website visit may not reveal much about a person’s private life, according to Ethan Zuckerman, director of Massachusetts Institute of Technology’s Center for Civic Media. But if accumulated and analyzed over a period of weeks or months, these details would be “extremely personal,” he told The Intercept, because they could reveal a person’s movements, habits, religious beliefs, political views, relationships, and even sexual preferences. For Zuckerman, who has studied the social and political ramifications of surveillance, the most concerning aspect of large-scale government data collection is that it can be “corrosive towards democracy” — leading to a chilling effect on freedom of expression and communication. “Once we know there’s a reasonable chance that we are being watched in one fashion or another it’s hard for that not to have a ‘panopticon effect,’” he said, “where we think and behave differently based on the assumption that people may be watching and paying attention to what we are doing.”
  • When compared to surveillance rules in place in the U.S., GCHQ notes in one document that the U.K. has “a light oversight regime.” The more lax British spying regulations are reflected in secret internal rules that highlight greater restrictions on how NSA databases can be accessed. The NSA’s troves can be searched for data on British citizens, one document states, but they cannot be mined for information about Americans or other citizens from countries in the Five Eyes alliance. No such constraints are placed on GCHQ’s own databases, which can be sifted for records on the phone calls, emails, and Internet usage of Brits, Americans, and citizens from any other country. The scope of GCHQ’s surveillance powers explain in part why Snowden told The Guardian in June 2013 that U.K. surveillance is “worse than the U.S.” In an interview with Der Spiegel in July 2013, Snowden added that British Internet cables were “radioactive” and joked: “Even the Queen’s selfies to the pool boy get logged.”
  • In recent years, the biggest barrier to GCHQ’s mass collection of data does not appear to have come in the form of legal or policy restrictions. Rather, it is the increased use of encryption technology that protects the privacy of communications that has posed the biggest potential hindrance to the agency’s activities. “The spread of encryption … threatens our ability to do effective target discovery/development,” says a top-secret report co-authored by an official from the British agency and an NSA employee in 2011. “Pertinent metadata events will be locked within the encrypted channels and difficult, if not impossible, to prise out,” the report says, adding that the agencies were working on a plan that would “(hopefully) allow our Internet Exploitation strategy to prevail.”
Gonzalo San Gil, PhD.

Studies on file sharing - La Quadrature du Net - 0 views

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    "Contents 1 Studies 1.1 Evaluation of the effects of the HADOPI law 1.1.1 University of Delaware and Université de Rennes - 2014 - Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-Strike (Hadopi) Law 1.1.2 M@rsouin - 2010 - Evaluation of the effects of the HADOPI law (FR) 1.2 People who share files are people who spend the more for culture 1.2.1 Munich School of Management and Copenhagen Business School - Piracy and Movie Revenues: Evidence from Megaupload 1.2.2 The American Assembly (Collumbia University) - Copy Culture in the USA and Germany 1.2.3 GFK (Society for Consumer Research) - Disappointed commissioner suppresses study showing pirates are cinema's best consumers 1.2.4 HADOPI - 2011 - January 2011 study on online cultural practices (FR) 1.2.5 University of Amsterdam - 2010 - Economic and cultural effects of unlawful file sharing 1.2.6 BBC - 2009 - "Pirates" spend more on music (FR) 1.2.7 IPSOS Germany - 2009 - Filesharers are better "consumers" of culture (FR) 1.2.8 Frank N. Magid Associates, Inc. - 2009 - P2P / Best consumers for Hollywood (EN) 1.2.9 Business School of Norway - 2009 - Those who share music spend ten times more money on music (NO) 1.2.10 Annelies Huygen, et al. (Dutch government investigation) - 2009 - Ups and downs - Economische en culturele gevolgen van file sharing voor muziek, film en games 1.2.11 M@rsouin - 2008 - P2P / buy more DVDs (FR) 1.2.12 Canadian Department of Industry - 2007 - P2P / achètent plus de musique (FR) 1.2.13 Felix Oberholzer-Gee (above) and Koleman Strumpf - 2004 -File sharing may boost CD sales 1.3 Economical effects of filesharing 1.3.1 University of Kansas School of Business - Using Markets to Measure the Impact of File Sharing o
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    "Contents 1 Studies 1.1 Evaluation of the effects of the HADOPI law 1.1.1 University of Delaware and Université de Rennes - 2014 - Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-Strike (Hadopi) Law 1.1.2 M@rsouin - 2010 - Evaluation of the effects of the HADOPI law (FR) 1.2 People who share files are people who spend the more for culture 1.2.1 Munich School of Management and Copenhagen Business School - Piracy and Movie Revenues: Evidence from Megaupload 1.2.2 The American Assembly (Collumbia University) - Copy Culture in the USA and Germany 1.2.3 GFK (Society for Consumer Research) - Disappointed commissioner suppresses study showing pirates are cinema's best consumers 1.2.4 HADOPI - 2011 - January 2011 study on online cultural practices (FR) 1.2.5 University of Amsterdam - 2010 - Economic and cultural effects of unlawful file sharing 1.2.6 BBC - 2009 - "Pirates" spend more on music (FR) 1.2.7 IPSOS Germany - 2009 - Filesharers are better "consumers" of culture (FR) 1.2.8 Frank N. Magid Associates, Inc. - 2009 - P2P / Best consumers for Hollywood (EN) 1.2.9 Business School of Norway - 2009 - Those who share music spend ten times more money on music (NO) 1.2.10 Annelies Huygen, et al. (Dutch government investigation) - 2009 - Ups and downs - Economische en culturele gevolgen van file sharing voor muziek, film en games 1.2.11 M@rsouin - 2008 - P2P / buy more DVDs (FR) 1.2.12 Canadian Department of Industry - 2007 - P2P / achètent plus de musique (FR) 1.2.13 Felix Oberholzer-Gee (above) and Koleman Strumpf - 2004 -File sharing may boost CD sales 1.3 Economical effects of filesharing 1.3.1 University of Kansas School of Business - Using Markets to Measure the Impact of File Sharing o
Paul Merrell

Popular Security Software Came Under Relentless NSA and GCHQ Attacks - The Intercept - 0 views

  • The National Security Agency and its British counterpart, Government Communications Headquarters, have worked to subvert anti-virus and other security software in order to track users and infiltrate networks, according to documents from NSA whistleblower Edward Snowden. The spy agencies have reverse engineered software products, sometimes under questionable legal authority, and monitored web and email traffic in order to discreetly thwart anti-virus software and obtain intelligence from companies about security software and users of such software. One security software maker repeatedly singled out in the documents is Moscow-based Kaspersky Lab, which has a holding registered in the U.K., claims more than 270,000 corporate clients, and says it protects more than 400 million people with its products. British spies aimed to thwart Kaspersky software in part through a technique known as software reverse engineering, or SRE, according to a top-secret warrant renewal request. The NSA has also studied Kaspersky Lab’s software for weaknesses, obtaining sensitive customer information by monitoring communications between the software and Kaspersky servers, according to a draft top-secret report. The U.S. spy agency also appears to have examined emails inbound to security software companies flagging new viruses and vulnerabilities.
  • The efforts to compromise security software were of particular importance because such software is relied upon to defend against an array of digital threats and is typically more trusted by the operating system than other applications, running with elevated privileges that allow more vectors for surveillance and attack. Spy agencies seem to be engaged in a digital game of cat and mouse with anti-virus software companies; the U.S. and U.K. have aggressively probed for weaknesses in software deployed by the companies, which have themselves exposed sophisticated state-sponsored malware.
  • The requested warrant, provided under Section 5 of the U.K.’s 1994 Intelligence Services Act, must be renewed by a government minister every six months. The document published today is a renewal request for a warrant valid from July 7, 2008 until January 7, 2009. The request seeks authorization for GCHQ activities that “involve modifying commercially available software to enable interception, decryption and other related tasks, or ‘reverse engineering’ software.”
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  • The NSA, like GCHQ, has studied Kaspersky Lab’s software for weaknesses. In 2008, an NSA research team discovered that Kaspersky software was transmitting sensitive user information back to the company’s servers, which could easily be intercepted and employed to track users, according to a draft of a top-secret report. The information was embedded in “User-Agent” strings included in the headers of Hypertext Transfer Protocol, or HTTP, requests. Such headers are typically sent at the beginning of a web request to identify the type of software and computer issuing the request.
  • According to the draft report, NSA researchers found that the strings could be used to uniquely identify the computing devices belonging to Kaspersky customers. They determined that “Kaspersky User-Agent strings contain encoded versions of the Kaspersky serial numbers and that part of the User-Agent string can be used as a machine identifier.” They also noted that the “User-Agent” strings may contain “information about services contracted for or configurations.” Such data could be used to passively track a computer to determine if a target is running Kaspersky software and thus potentially susceptible to a particular attack without risking detection.
  • Another way the NSA targets foreign anti-virus companies appears to be to monitor their email traffic for reports of new vulnerabilities and malware. A 2010 presentation on “Project CAMBERDADA” shows the content of an email flagging a malware file, which was sent to various anti-virus companies by François Picard of the Montréal-based consulting and web hosting company NewRoma. The presentation of the email suggests that the NSA is reading such messages to discover new flaws in anti-virus software. Picard, contacted by The Intercept, was unaware his email had fallen into the hands of the NSA. He said that he regularly sends out notification of new viruses and malware to anti-virus companies, and that he likely sent the email in question to at least two dozen such outfits. He also said he never sends such notifications to government agencies. “It is strange the NSA would show an email like mine in a presentation,” he added.
  • The NSA presentation goes on to state that its signals intelligence yields about 10 new “potentially malicious files per day for malware triage.” This is a tiny fraction of the hostile software that is processed. Kaspersky says it detects 325,000 new malicious files every day, and an internal GCHQ document indicates that its own system “collect[s] around 100,000,000 malware events per day.” After obtaining the files, the NSA analysts “[c]heck Kaspersky AV to see if they continue to let any of these virus files through their Anti-Virus product.” The NSA’s Tailored Access Operations unit “can repurpose the malware,” presumably before the anti-virus software has been updated to defend against the threat.
  • The Project CAMBERDADA presentation lists 23 additional AV companies from all over the world under “More Targets!” Those companies include Check Point software, a pioneering maker of corporate firewalls based Israel, whose government is a U.S. ally. Notably omitted are the American anti-virus brands McAfee and Symantec and the British company Sophos.
  • As government spies have sought to evade anti-virus software, the anti-virus firms themselves have exposed malware created by government spies. Among them, Kaspersky appears to be the sharpest thorn in the side of government hackers. In the past few years, the company has proven to be a prolific hunter of state-sponsored malware, playing a role in the discovery and/or analysis of various pieces of malware reportedly linked to government hackers, including the superviruses Flame, which Kaspersky flagged in 2012; Gauss, also detected in 2012; Stuxnet, discovered by another company in 2010; and Regin, revealed by Symantec. In February, the Russian firm announced its biggest find yet: the “Equation Group,” an organization that has deployed espionage tools widely believed to have been created by the NSA and hidden on hard drives from leading brands, according to Kaspersky. In a report, the company called it “the most advanced threat actor we have seen” and “probably one of the most sophisticated cyber attack groups in the world.”
  • Hacks deployed by the Equation Group operated undetected for as long as 14 to 19 years, burrowing into the hard drive firmware of sensitive computer systems around the world, according to Kaspersky. Governments, militaries, technology companies, nuclear research centers, media outlets and financial institutions in 30 countries were among those reportedly infected. Kaspersky estimates that the Equation Group could have implants in tens of thousands of computers, but documents published last year by The Intercept suggest the NSA was scaling up their implant capabilities to potentially infect millions of computers with malware. Kaspersky’s adversarial relationship with Western intelligence services is sometimes framed in more sinister terms; the firm has been accused of working too closely with the Russian intelligence service FSB. That accusation is partly due to the company’s apparent success in uncovering NSA malware, and partly due to the fact that its founder, Eugene Kaspersky, was educated by a KGB-backed school in the 1980s before working for the Russian military.
  • Kaspersky has repeatedly denied the insinuations and accusations. In a recent blog post, responding to a Bloomberg article, he complained that his company was being subjected to “sensationalist … conspiracy theories,” sarcastically noting that “for some reason they forgot our reports” on an array of malware that trace back to Russian developers. He continued, “It’s very hard for a company with Russian roots to become successful in the U.S., European and other markets. Nobody trusts us — by default.”
  • Documents published with this article: Kaspersky User-Agent Strings — NSA Project CAMBERDADA — NSA NDIST — GCHQ’s Developing Cyber Defence Mission GCHQ Application for Renewal of Warrant GPW/1160 Software Reverse Engineering — GCHQ Reverse Engineering — GCHQ Wiki Malware Analysis & Reverse Engineering — ACNO Skill Levels — GCHQ
Paul Merrell

Revealed: How DOJ Gagged Google over Surveillance of WikiLeaks Volunteer - The Intercept - 0 views

  • The Obama administration fought a legal battle against Google to secretly obtain the email records of a security researcher and journalist associated with WikiLeaks. Newly unsealed court documents obtained by The Intercept reveal the Justice Department won an order forcing Google to turn over more than one year’s worth of data from the Gmail account of Jacob Appelbaum (pictured above), a developer for the Tor online anonymity project who has worked with WikiLeaks as a volunteer. The order also gagged Google, preventing it from notifying Appelbaum that his records had been provided to the government. The surveillance of Appelbaum’s Gmail account was tied to the Justice Department’s long-running criminal investigation of WikiLeaks, which began in 2010 following the transparency group’s publication of a large cache of U.S. government diplomatic cables. According to the unsealed documents, the Justice Department first sought details from Google about a Gmail account operated by Appelbaum in January 2011, triggering a three-month dispute between the government and the tech giant. Government investigators demanded metadata records from the account showing email addresses of those with whom Appelbaum had corresponded between the period of November 2009 and early 2011; they also wanted to obtain information showing the unique IP addresses of the computers he had used to log in to the account.
  • The Justice Department argued in the case that Appelbaum had “no reasonable expectation of privacy” over his email records under the Fourth Amendment, which protects against unreasonable searches and seizures. Rather than seeking a search warrant that would require it to show probable cause that he had committed a crime, the government instead sought and received an order to obtain the data under a lesser standard, requiring only “reasonable grounds” to believe that the records were “relevant and material” to an ongoing criminal investigation. Google repeatedly attempted to challenge the demand, and wanted to immediately notify Appelbaum that his records were being sought so he could have an opportunity to launch his own legal defense. Attorneys for the tech giant argued in a series of court filings that the government’s case raised “serious First Amendment concerns.” They noted that Appelbaum’s records “may implicate journalistic and academic freedom” because they could “reveal confidential sources or information about WikiLeaks’ purported journalistic or academic activities.” However, the Justice Department asserted that “journalists have no special privilege to resist compelled disclosure of their records, absent evidence that the government is acting in bad faith,” and refused to concede Appelbaum was in fact a journalist. It claimed it had acted in “good faith throughout this criminal investigation, and there is no evidence that either the investigation or the order is intended to harass the … subscriber or anyone else.” Google’s attempts to fight the surveillance gag order angered the government, with the Justice Department stating that the company’s “resistance to providing the records” had “frustrated the government’s ability to efficiently conduct a lawful criminal investigation.”
  • Google accused the government of hyperbole and argued that the backlash over the Twitter order did not justify secrecy related to the Gmail surveillance. “Rather than demonstrating how unsealing the order will harm its well-publicized investigation, the government lists a parade of horribles that have allegedly occurred since it unsealed the Twitter order, yet fails to establish how any of these developments could be further exacerbated by unsealing this order,” wrote Google’s attorneys. “The proverbial toothpaste is out of the tube, and continuing to seal a materially identical order will not change it.” But Google’s attempt to overturn the gag order was denied by magistrate judge Ivan D. Davis in February 2011. The company launched an appeal against that decision, but this too was rebuffed, in March 2011, by District Court judge Thomas Selby Ellis, III.
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  • The Justice Department wanted to keep the surveillance secret largely because of an earlier public backlash over its WikiLeaks investigation. In January 2011, Appelbaum and other WikiLeaks volunteers’ – including Icelandic parlimentarian Birgitta Jonsdottir – were notified by Twitter that the Justice Department had obtained data about their accounts. This disclosure generated widepread news coverage and controversy; the government says in the unsealed court records that it “failed to anticipate the degree of  damage that would be caused” by the Twitter disclosure and did not want to “exacerbate this problem” when it went after Appelbaum’s Gmail data. The court documents show the Justice Department said the disclosure of its Twitter data grab “seriously jeopardized the [WikiLeaks] investigation” because it resulted in efforts to “conceal evidence” and put public pressure on other companies to resist similar surveillance orders. It also claimed that officials named in the subpeona ordering Twitter to turn over information were “harassed” after a copy was published by Intercept co-founder Glenn Greenwald at Salon in 2011. (The only specific evidence of the alleged harassment cited by the government is an email that was sent to an employee of the U.S. Attorney’s office that purportedly said: “You guys are fucking nazis trying to controll [sic] the whole fucking world. Well guess what. WE DO NOT FORGIVE. WE DO NOT FORGET. EXPECT US.”)
  • The government agreed to unseal some of the court records on Apr. 1 this year, and they were apparently turned over to Appelbaum on May 14 through a notification sent to his Gmail account. The files were released on condition that they would contain some redactions, which are bizarre and inconsistent, in some cases censoring the name of “WikiLeaks” from cited public news reports. Not all of the documents in the case – such as the original surveillance orders contested by Google – were released as part of the latest disclosure. Some contain “specific and sensitive details of the investigation” and “remain properly sealed while the grand jury investigation continues,” according to the court records from April this year. Appelbaum, an American citizen who is based in Berlin, called the case “a travesty that continues at a slow pace” and said he felt it was important to highlight “the absolute madness in these documents.”
  • He told The Intercept: “After five years, receiving such legal documents is neither a shock nor a needed confirmation. … Will we ever see the full documents about our respective cases? Will we even learn the names of those signing so-called legal orders against us in secret sealed documents? Certainly not in a timely manner and certainly not in a transparent, just manner.” The 32-year-old, who has recently collaborated with Intercept co-founder Laura Poitras to report revelations about National Security Agency surveillance for German news magazine Der Spiegel, said he plans to remain in Germany “in exile, rather than returning to the U.S. to experience more harassment of a less than legal kind.”
  • “My presence in Berlin ensures that the cost of physically harassing me or politically harassing me is much higher than when I last lived on U.S. soil,” Appelbaum said. “This allows me to work as a journalist freely from daily U.S. government interference. It also ensures that any further attempts to continue this will be forced into the open through [a Mutal Legal Assistance Treaty] and other international processes. The German goverment is less likely to allow the FBI to behave in Germany as they do on U.S. soil.” The Justice Department’s WikiLeaks investigaton is headed by prosecutors in the Eastern District of Virginia. Since 2010, the secretive probe has seen activists affiliated with WikiLeaks compelled to appear before a grand jury and the FBI attempting to infiltrate the group with an informant. Earlier this year, it was revealed that the government had obtained the contents of three core WikiLeaks staffers’ Gmail accounts as part of the investigation.
Gonzalo San Gil, PhD.

Blur, Radiohead y Pink Floyd a favor de descargas ilegales - Espectaculos - ABC Color PY 2009 - 0 views

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    Merchandising = memorabilia 10 de Setiembre de 2009 10:06 http://www.abc.com.py/espectaculos/blur-radiohead-y-pink-floyd-a-favor-de-descargas-ilegales-19362.html Por Antonella Brignardello Las bandas británicas Blur, Radiohead y Pink Floyd sumaron fuerzas para exigirle al gobierno que retroceda en sus planes para penalizar a aquellas personas que realizan descargas ilegales de canciones y videos por Internet. "
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    Merchandising = memorabilia 10 de Setiembre de 2009 10:06 http://www.abc.com.py/espectaculos/blur-radiohead-y-pink-floyd-a-favor-de-descargas-ilegales-19362.html Por Antonella Brignardello Las bandas británicas Blur, Radiohead y Pink Floyd sumaron fuerzas para exigirle al gobierno que retroceda en sus planes para penalizar a aquellas personas que realizan descargas ilegales de canciones y videos por Internet. "
Paul Merrell

Information Warfare: Automated Propaganda and Social Media Bots | Global Research - 0 views

  • NATO has announced that it is launching an “information war” against Russia. The UK publicly announced a battalion of keyboard warriors to spread disinformation. It’s well-documented that the West has long used false propaganda to sway public opinion. Western military and intelligence services manipulate social media to counter criticism of Western policies. Such manipulation includes flooding social media with comments supporting the government and large corporations, using armies of sock puppets, i.e. fake social media identities. See this, this, this, this and this. In 2013, the American Congress repealed the formal ban against the deployment of propaganda against U.S. citizens living on American soil. So there’s even less to constrain propaganda than before.
  • Information warfare for propaganda purposes also includes: The Pentagon, Federal Reserve and other government entities using software to track discussion of political issues … to try to nip dissent in the bud before it goes viral “Controlling, infiltrating, manipulating and warping” online discourse Use of artificial intelligence programs to try to predict how people will react to propaganda
  • Some of the propaganda is spread by software programs. We pointed out 6 years ago that people were writing scripts to censor hard-hitting information from social media. One of America’s top cyber-propagandists – former high-level military information officer Joel Harding – wrote in December: I was in a discussion today about information being used in social media as a possible weapon.  The people I was talking with have a tool which scrapes social media sites, gauges their sentiment and gives the user the opportunity to automatically generate a persuasive response. Their tool is called a “Social Networking Influence Engine”. *** The implications seem to be profound for the information environment. *** The people who own this tool are in the civilian world and don’t even remotely touch the defense sector, so getting approval from the US Department of State might not even occur to them.
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  • How Can This Real? Gizmodo reported in 2010: Software developer Nigel Leck got tired rehashing the same 140-character arguments against climate change deniers, so he programmed a bot that does the work for him. With citations! Leck’s bot, @AI_AGW, doesn’t just respond to arguments directed at Leck himself, it goes out and picks fights. Every five minutes it trawls Twitter for terms and phrases that commonly crop up in Tweets that refute human-caused climate change. It then searches its database of hundreds to find a counter-argument best suited for that tweet—usually a quick statement and a link to a scientific source. As can be the case with these sorts of things, many of the deniers don’t know they’ve been targeted by a robot and engage AI_AGW in debate. The bot will continue to fire back canned responses that best fit the interlocutor’s line of debate—Leck says this goes on for days, in some cases—and the bot’s been outfitted with a number of responses on the topic of religion, where the arguments unsurprisingly often end up. Technology has come a long way in the past 5 years. So if a lone programmer could do this 5 years ago, imagine what he could do now. And the big players have a lot more resources at their disposal than a lone climate activist/software developer does.  For example, a government expert told the Washington Post that the government “quite literally can watch your ideas form as you type” (and see this).  So if the lone programmer is doing it, it’s not unreasonable to assume that the big boys are widely doing it.
  • How Effective Are Automated Comments? Unfortunately, this is more effective than you might assume … Specifically, scientists have shown that name-calling and swearing breaks down people’s ability to think rationally … and intentionally sowing discord and posting junk comments to push down insightful comments  are common propaganda techniques. Indeed, an automated program need not even be that sophisticated … it can copy a couple of words from the main post or a comment, and then spew back one or more radioactive labels such as “terrorist”, “commie”, “Russia-lover”, “wimp”, “fascist”, “loser”, “traitor”, “conspiratard”, etc. Given that Harding and his compadres consider anyone who questions any U.S. policies as an enemy of the state  – as does the Obama administration (and see this) – many honest, patriotic writers and commenters may be targeted for automated propaganda comments.
Paul Merrell

What's Scarier: Terrorism, or Governments Blocking Websites in its Name? - The Intercept - 0 views

  • Forcibly taking down websites deemed to be supportive of terrorism, or criminalizing speech deemed to “advocate” terrorism, is a major trend in both Europe and the West generally. Last month in Brussels, the European Union’s counter-terrorism coordinator issued a memo proclaiming that “Europe is facing an unprecedented, diverse and serious terrorist threat,” and argued that increased state control over the Internet is crucial to combating it. The memo noted that “the EU and its Member States have developed several initiatives related to countering radicalisation and terrorism on the Internet,” yet argued that more must be done. It argued that the focus should be on “working with the main players in the Internet industry [a]s the best way to limit the circulation of terrorist material online.” It specifically hailed the tactics of the U.K. Counter-Terrorism Internet Referral Unit (CTIRU), which has succeeded in causing the removal of large amounts of material it deems “extremist”:
  • In addition to recommending the dissemination of “counter-narratives” by governments, the memo also urged EU member states to “examine the legal and technical possibilities to remove illegal content.” Exploiting terrorism fears to control speech has been a common practice in the West since 9/11, but it is becoming increasingly popular even in countries that have experienced exceedingly few attacks. A new extremist bill advocated by the right-wing Harper government in Canada (also supported by Liberal Party leader Justin Trudeau even as he recognizes its dangers) would create new crimes for “advocating terrorism”; specifically: “every person who, by communicating statements, knowingly advocates or promotes the commission of terrorism offences in general” would be a guilty and can be sent to prison for five years for each offense. In justifying the new proposal, the Canadian government admits that “under the current criminal law, it is [already] a crime to counsel or actively encourage others to commit a specific terrorism offence.” This new proposal is about criminalizing ideas and opinions. In the government’s words, it “prohibits the intentional advocacy or promotion of terrorism, knowing or reckless as to whether it would result in terrorism.”
  • If someone argues that continuous Western violence and interference in the Muslim world for decades justifies violence being returned to the West, or even advocates that governments arm various insurgents considered by some to be “terrorists,” such speech could easily be viewed as constituting a crime. To calm concerns, Canadian authorities point out that “the proposed new offence is similar to one recently enacted by Australia, that prohibits advocating a terrorist act or the commission of a terrorism offence-all while being reckless as to whether another person will engage in this kind of activity.” Indeed, Australia enacted a new law late last year that indisputably targets political speech and ideas, as well as criminalizing journalism considered threatening by the government. Punishing people for their speech deemed extremist or dangerous has been a vibrant practice in both the U.K. and U.S. for some time now, as I detailed (coincidentally) just a couple days before free speech marches broke out in the West after the Charlie Hebdo attacks. Those criminalization-of-speech attacks overwhelmingly target Muslims, and have resulted in the punishment of such classic free speech activities as posting anti-war commentary on Facebook, tweeting links to “extremist” videos, translating and posting “radicalizing” videos to the Internet, writing scholarly articles in defense of Palestinian groups and expressing harsh criticism of Israel, and even including a Hezbollah channel in a cable package.
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  • Beyond the technical issues, trying to legislate ideas out of existence is a fool’s game: those sufficiently determined will always find ways to make themselves heard. Indeed, as U.S. pop star Barbra Streisand famously learned, attempts to suppress ideas usually result in the greatest publicity possible for their advocates and/or elevate them by turning fringe ideas into martyrs for free speech (I have zero doubt that all five of the targeted sites enjoyed among their highest traffic dates ever today as a result of the French targeting). But the comical futility of these efforts is exceeded by their profound dangers. Who wants governments to be able to unilaterally block websites? Isn’t the exercise of this website-blocking power what has long been cited as reasons we should regard the Bad Countries — such as China and Iran — as tyrannies (which also usually cite “counterterrorism” to justify their censorship efforts)?
  • s those and countless other examples prove, the concepts of “extremism” and “radicalizing” (like “terrorism” itself) are incredibly vague and elastic, and in the hands of those who wield power, almost always expand far beyond what you think it should mean (plotting to blow up innocent people) to mean: anyone who disseminates ideas that are threatening to the exercise of our power. That’s why powers justified in the name of combating “radicalism” or “extremism” are invariably — not often or usually, but invariably — applied to activists, dissidents, protesters and those who challenge prevailing orthodoxies and power centers. My arguments for distrusting governments to exercise powers of censorship are set forth here (in the context of a prior attempt by a different French minister to control the content of Twitter). In sum, far more damage has been inflicted historically by efforts to censor and criminalize political ideas than by the kind of “terrorism” these governments are invoking to justify these censorship powers. And whatever else may be true, few things are more inimical to, or threatening of, Internet freedom than allowing functionaries inside governments to unilaterally block websites from functioning on the ground that the ideas those sites advocate are objectionable or “dangerous.” That’s every bit as true when the censors are in Paris, London, and Ottawa, and Washington as when they are in Tehran, Moscow or Beijing.
Gonzalo San Gil, PhD.

Unprecedented Music Piracy Collapse Fails to Boost Revenues | TorrentFreak - 0 views

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    " Andy on January 26, 2015 C: 94 Breaking A survey carried out by music industry group IFPI has revealed that just 4% of Norwegians under 30 are now using illegal file-sharing platforms to obtain music, down from 70% in 2009. But while that achievement is unprecedented, overall music industry revenues have remained static."
Gonzalo San Gil, PhD.

Achieving Impossible Things with Free Culture and Commons-Based Enterprise : Terry Hancock : Free Download & Streaming : Internet Archive - 0 views

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    "Author: Terry Hancock Keywords: free software; open source; free culture; commons-based peer production; commons-based enterprise; Free Software Magazine; Blender Foundation; Blender Open Movies; Wikipedia; Project Gutenberg; Open Hardware; One Laptop Per Child; Sugar Labs; licensing; copyleft; hosting; marketing; design; online community; Debian GNU/Linux; GNU General Public License; Creative Commons Attribution-ShareAlike License; TAPR Open Hardware License; collective patronage; women in free software; Creative Commons; OScar; C,mm,n; Free Software Foundation; Open Source Initiative; Freedom Defined; Free Software Definition; Debian Free Software Guidelines; Sourceforge; Google Code; digital rights management; digital restrictions management; technological protection measures; DRM; TPM; linux; gnu; manifesto Publisher: Free Software Magazine Press Year: 2009 Language: English Collection: opensource"
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    "Author: Terry Hancock Keywords: free software; open source; free culture; commons-based peer production; commons-based enterprise; Free Software Magazine; Blender Foundation; Blender Open Movies; Wikipedia; Project Gutenberg; Open Hardware; One Laptop Per Child; Sugar Labs; licensing; copyleft; hosting; marketing; design; online community; Debian GNU/Linux; GNU General Public License; Creative Commons Attribution-ShareAlike License; TAPR Open Hardware License; collective patronage; women in free software; Creative Commons; OScar; C,mm,n; Free Software Foundation; Open Source Initiative; Freedom Defined; Free Software Definition; Debian Free Software Guidelines; Sourceforge; Google Code; digital rights management; digital restrictions management; technological protection measures; DRM; TPM; linux; gnu; manifesto Publisher: Free Software Magazine Press Year: 2009 Language: English Collection: opensource"
Paul Merrell

Operation Socialist: How GCHQ Spies Hacked Belgium's Largest Telco - 0 views

  • When the incoming emails stopped arriving, it seemed innocuous at first. But it would eventually become clear that this was no routine technical problem. Inside a row of gray office buildings in Brussels, a major hacking attack was in progress. And the perpetrators were British government spies. It was in the summer of 2012 that the anomalies were initially detected by employees at Belgium’s largest telecommunications provider, Belgacom. But it wasn’t until a year later, in June 2013, that the company’s security experts were able to figure out what was going on. The computer systems of Belgacom had been infected with a highly sophisticated malware, and it was disguising itself as legitimate Microsoft software while quietly stealing data. Last year, documents from National Security Agency whistleblower Edward Snowden confirmed that British surveillance agency Government Communications Headquarters was behind the attack, codenamed Operation Socialist. And in November, The Intercept revealed that the malware found on Belgacom’s systems was one of the most advanced spy tools ever identified by security researchers, who named it “Regin.”
  • The full story about GCHQ’s infiltration of Belgacom, however, has never been told. Key details about the attack have remained shrouded in mystery—and the scope of the attack unclear. Now, in partnership with Dutch and Belgian newspapers NRC Handelsblad and De Standaard, The Intercept has pieced together the first full reconstruction of events that took place before, during, and after the secret GCHQ hacking operation. Based on new documents from the Snowden archive and interviews with sources familiar with the malware investigation at Belgacom, The Intercept and its partners have established that the attack on Belgacom was more aggressive and far-reaching than previously thought. It occurred in stages between 2010 and 2011, each time penetrating deeper into Belgacom’s systems, eventually compromising the very core of the company’s networks.
  • Snowden told The Intercept that the latest revelations amounted to unprecedented “smoking-gun attribution for a governmental cyber attack against critical infrastructure.” The Belgacom hack, he said, is the “first documented example to show one EU member state mounting a cyber attack on another…a breathtaking example of the scale of the state-sponsored hacking problem.”
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  • When the incoming emails stopped arriving, it seemed innocuous at first. But it would eventually become clear that this was no routine technical problem. Inside a row of gray office buildings in Brussels, a major hacking attack was in progress. And the perpetrators were British government spies. It was in the summer of 2012 that the anomalies were initially detected by employees at Belgium’s largest telecommunications provider, Belgacom. But it wasn’t until a year later, in June 2013, that the company’s security experts were able to figure out what was going on. The computer systems of Belgacom had been infected with a highly sophisticated malware, and it was disguising itself as legitimate Microsoft software while quietly stealing data. Last year, documents from National Security Agency whistleblower Edward Snowden confirmed that British surveillance agency Government Communications Headquarters was behind the attack, codenamed Operation Socialist. And in November, The Intercept revealed that the malware found on Belgacom’s systems was one of the most advanced spy tools ever identified by security researchers, who named it “Regin.”
  • Publicly, Belgacom has played down the extent of the compromise, insisting that only its internal systems were breached and that customers’ data was never found to have been at risk. But secret GCHQ documents show the agency gained access far beyond Belgacom’s internal employee computers and was able to grab encrypted and unencrypted streams of private communications handled by the company. Belgacom invested several million dollars in its efforts to clean-up its systems and beef-up its security after the attack. However, The Intercept has learned that sources familiar with the malware investigation at the company are uncomfortable with how the clean-up operation was handled—and they believe parts of the GCHQ malware were never fully removed.
  • The revelations about the scope of the hacking operation will likely alarm Belgacom’s customers across the world. The company operates a large number of data links internationally (see interactive map below), and it serves millions of people across Europe as well as officials from top institutions including the European Commission, the European Parliament, and the European Council. The new details will also be closely scrutinized by a federal prosecutor in Belgium, who is currently carrying out a criminal investigation into the attack on the company. Sophia in ’t Veld, a Dutch politician who chaired the European Parliament’s recent inquiry into mass surveillance exposed by Snowden, told The Intercept that she believes the British government should face sanctions if the latest disclosures are proven.
  • What sets the secret British infiltration of Belgacom apart is that it was perpetrated against a close ally—and is backed up by a series of top-secret documents, which The Intercept is now publishing.
  • Between 2009 and 2011, GCHQ worked with its allies to develop sophisticated new tools and technologies it could use to scan global networks for weaknesses and then penetrate them. According to top-secret GCHQ documents, the agency wanted to adopt the aggressive new methods in part to counter the use of privacy-protecting encryption—what it described as the “encryption problem.” When communications are sent across networks in encrypted format, it makes it much harder for the spies to intercept and make sense of emails, phone calls, text messages, internet chats, and browsing sessions. For GCHQ, there was a simple solution. The agency decided that, where possible, it would find ways to hack into communication networks to grab traffic before it’s encrypted.
  • The Snowden documents show that GCHQ wanted to gain access to Belgacom so that it could spy on phones used by surveillance targets travelling in Europe. But the agency also had an ulterior motive. Once it had hacked into Belgacom’s systems, GCHQ planned to break into data links connecting Belgacom and its international partners, monitoring communications transmitted between Europe and the rest of the world. A map in the GCHQ documents, named “Belgacom_connections,” highlights the company’s reach across Europe, the Middle East, and North Africa, illustrating why British spies deemed it of such high value.
  • Documents published with this article: Automated NOC detection Mobile Networks in My NOC World Making network sense of the encryption problem Stargate CNE requirements NAC review – October to December 2011 GCHQ NAC review – January to March 2011 GCHQ NAC review – April to June 2011 GCHQ NAC review – July to September 2011 GCHQ NAC review – January to March 2012 GCHQ Hopscotch Belgacom connections
Paul Merrell

The Digital Hunt for Duqu, a Dangerous and Cunning U.S.-Israeli Spy Virus - The Intercept - 1 views

  • “Is this related to what we talked about before?” Bencsáth said, referring to a previous discussion they’d had about testing new services the company planned to offer customers. “No, something else,” Bartos said. “Can you come now? It’s important. But don’t tell anyone where you’re going.” Bencsáth wolfed down the rest of his lunch and told his colleagues in the lab that he had a “red alert” and had to go. “Don’t ask,” he said as he ran out the door. A while later, he was at Bartos’ office, where a triage team had been assembled to address the problem they wanted to discuss. “We think we’ve been hacked,” Bartos said.
  • They found a suspicious file on a developer’s machine that had been created late at night when no one was working. The file was encrypted and compressed so they had no idea what was inside, but they suspected it was data the attackers had copied from the machine and planned to retrieve later. A search of the company’s network found a few more machines that had been infected as well. The triage team felt confident they had contained the attack but wanted Bencsáth’s help determining how the intruders had broken in and what they were after. The company had all the right protections in place—firewalls, antivirus, intrusion-detection and -prevention systems—and still the attackers got in.
  • Bencsáth was a teacher, not a malware hunter, and had never done such forensic work before. At the CrySyS Lab, where he was one of four advisers working with a handful of grad students, he did academic research for the European Union and occasional hands-on consulting work for other clients, but the latter was mostly run-of-the-mill cleanup work—mopping up and restoring systems after random virus infections. He’d never investigated a targeted hack before, let alone one that was still live, and was thrilled to have the chance. The only catch was, he couldn’t tell anyone what he was doing. Bartos’ company depended on the trust of customers, and if word got out that the company had been hacked, they could lose clients. The triage team had taken mirror images of the infected hard drives, so they and Bencsáth spent the rest of the afternoon poring over the copies in search of anything suspicious. By the end of the day, they’d found what they were looking for—an “infostealer” string of code that was designed to record passwords and other keystrokes on infected machines, as well as steal documents and take screenshots. It also catalogued any devices or systems that were connected to the machines so the attackers could build a blueprint of the company’s network architecture. The malware didn’t immediately siphon the stolen data from infected machines but instead stored it in a temporary file, like the one the triage team had found. The file grew fatter each time the infostealer sucked up data, until at some point the attackers would reach out to the machine to retrieve it from a server in India that served as a command-and-control node for the malware.
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  • Bencsáth took the mirror images and the company’s system logs with him, after they had been scrubbed of any sensitive customer data, and over the next few days scoured them for more malicious files, all the while being coy to his colleagues back at the lab about what he was doing. The triage team worked in parallel, and after several more days they had uncovered three additional suspicious files. When Bencsáth examined one of them—a kernel-mode driver, a program that helps the computer communicate with devices such as printers—his heart quickened. It was signed with a valid digital certificate from a company in Taiwan (digital certificates are documents ensuring that a piece of software is legitimate). Wait a minute, he thought. Stuxnet—the cyberweapon that was unleashed on Iran’s uranium-enrichment program—also used a driver that was signed with a certificate from a company in Taiwan. That one came from RealTek Semiconductor, but this certificate belonged to a different company, C-Media Electronics. The driver had been signed with the certificate in August 2009, around the same time Stuxnet had been unleashed on machines in Iran.
Gary Edwards

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

  • 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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  • 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.
  • 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.
  • 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.
  • 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.”
  • 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!”
  • 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.
  • what is scarce in all of this abundance is human attention
  • 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.”
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    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
Gary Edwards

The True Story of How the Patent Bar Captured a Court and Shrank the Intellectual Commons | Cato Unbound - 1 views

  • The change in the law wrought by the Federal Circuit can also be viewed substantively through the controversy over software patents. Throughout the 1960s, the USPTO refused to award patents for software innovations. However, several of the USPTO’s decisions were overruled by the patent-friendly U.S. Court of Customs and Patent Appeals, which ordered that software patents be granted. In Gottschalk v. Benson (1972) and Parker v. Flook (1978), the U.S. Supreme Court reversed the Court of Customs and Patent Appeals, holding that mathematical algorithms (and therefore software) were not patentable subject matter. In 1981, in Diamond v. Diehr, the Supreme Court upheld a software patent on the grounds that the patent in question involved a physical process—the patent was issued for software used in the molding of rubber. While affirming their prior ruling that mathematical formulas are not patentable in the abstract, the Court held that an otherwise patentable invention did not become unpatentable simply because it utilized a computer.
  • In the hands of the newly established Federal Circuit, however, this small scope for software patents in precedent was sufficient to open the floodgates. In a series of decisions culminating in State Street Bank v. Signature Financial Group (1998), the Federal Circuit broadened the criteria for patentability of software and business methods substantially, allowing protection as long as the innovation “produces a useful, concrete and tangible result.” That broadened criteria led to an explosion of low-quality software patents, from Amazon’s 1-Click checkout system to Twitter’s pull-to-refresh feature on smartphones. The GAO estimates that more than half of all patents granted in recent years are software-related. Meanwhile, the Supreme Court continues to hold, as in Parker v. Flook, that computer software algorithms are not patentable, and has begun to push back against the Federal Circuit. In Bilski v. Kappos (2010), the Supreme Court once again held that abstract ideas are not patentable, and in Alice v. CLS (2014), it ruled that simply applying an abstract idea on a computer does not suffice to make the idea patent-eligible. It still is not clear what portion of existing software patents Alice invalidates, but it could be a significant one.
  • Supreme Court justices also recognize the Federal Circuit’s insubordination. In oral arguments in Carlsbad Technology v. HIF Bio (2009), Chief Justice John Roberts joked openly about it:
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  • The Opportunity of the Commons
  • As a result of the Federal Circuit’s pro-patent jurisprudence, our economy has been flooded with patents that would otherwise not have been granted. If more patents meant more innovation, then we would now be witnessing a spectacular economic boom. Instead, we have been living through what Tyler Cowen has called a Great Stagnation. The fact that patents have increased while growth has not is known in the literature as the “patent puzzle.” As Michele Boldrin and David Levine put it, “there is no empirical evidence that [patents] serve to increase innovation and productivity, unless productivity is identified with the number of patents awarded—which, as evidence shows, has no correlation with measured productivity.”
  • While more patents have not resulted in faster economic growth, they have resulted in more patent lawsuits.
  • Software patents have characteristics that make them particularly susceptible to litigation. Unlike, say, chemical patents, software patents are plagued by a problem of description. How does one describe a software innovation in such a way that anyone searching for it will easily find it? As Christina Mulligan and Tim Lee demonstrate, chemical formulas are indexable, meaning that as the number of chemical patents grow, it will still be easy to determine if a molecule has been patented. Since software innovations are not indexable, they estimate that “patent clearance by all firms would require many times more hours of legal research than all patent lawyers in the United States can bill in a year. The result has been an explosion of patent litigation.” Software and business method patents, estimate James Bessen and Michael Meurer, are 2 and 7 times more likely to be litigated than other patents, respectively (4 and 13 times more likely than chemical patents).
  • Software patents make excellent material for predatory litigation brought by what are often called “patent trolls.”
  • Trolls use asymmetries in the rules of litigation to legally extort millions of dollars from innocent parties. For example, one patent troll, Innovatio IP Ventures, LLP, acquired patents that implicated Wi-Fi. In 2011, it started sending demand letters to coffee shops and hotels that offered wireless Internet access, offering to settle for $2,500 per location. This amount was far in excess of the 9.56 cents per device that Innovatio was entitled to under the “Fair, Reasonable, and Non-Discriminatory” licensing promises attached to their portfolio, but it was also much less than the cost of trial, and therefore it was rational for firms to pay. Cisco stepped in and spent $13 million in legal fees on the case, and settled on behalf of their customers for 3.2 cents per device. Other manufacturers had already licensed Innovatio’s portfolio, but that didn’t stop their customers from being targeted by demand letters.
  • Litigation cost asymmetries are magnified by the fact that most patent trolls are nonpracticing entities. This means that when patent infringement trials get to the discovery phase, they will cost the troll very little—a firm that does not operate a business has very few records to produce.
  • But discovery can cost a medium or large company millions of dollars. Using an event study methodology, James Bessen and coauthors find that infringement lawsuits by nonpracticing entities cost publicly traded companies $83 billion per year in stock market capitalization, while plaintiffs gain less than 10 percent of that amount.
  • Software patents also reduce innovation in virtue of their cumulative nature and the fact that many of them are frequently inputs into a single product. Law professor Michael Heller coined the phrase “tragedy of the anticommons” to refer to a situation that mirrors the well-understood “tragedy of the commons.” Whereas in a commons, multiple parties have the right to use a resource but not to exclude others, in an anticommons, multiple parties have the right to exclude others, and no one is therefore able to make effective use of the resource. The tragedy of the commons results in overuse of the resource; the tragedy of the anticommons results in underuse.
  • In order to cope with the tragedy of the anticommons, we should carefully investigate the opportunity of  the commons. The late Nobelist Elinor Ostrom made a career of studying how communities manage shared resources without property rights. With appropriate self-governance institutions, Ostrom found again and again that a commons does not inevitably lead to tragedy—indeed, open access to shared resources can provide collective benefits that are not available under other forms of property management.
  • This suggests that—litigation costs aside—patent law could be reducing the stock of ideas rather than expanding it at current margins.
  • Advocates of extensive patent protection frequently treat the commons as a kind of wasteland. But considering the problems in our patent system, it is worth looking again at the role of well-tailored limits to property rights in some contexts. Just as we all benefit from real property rights that no longer extend to the highest heavens, we would also benefit if the scope of patent protection were more narrowly drawn.
  • Reforming the Patent System
  • This analysis raises some obvious possibilities for reforming the patent system. Diane Wood, Chief Judge of the 7th Circuit, has proposed ending the Federal Circuit’s exclusive jurisdiction over patent appeals—instead, the Federal Circuit could share jurisdiction with the other circuit courts. While this is a constructive suggestion, it still leaves the door open to the Federal Circuit playing “a leading role in shaping patent law,” which is the reason for its capture by patent interests. It would be better instead simply to abolish the Federal Circuit and return to the pre-1982 system, in which patents received no special treatment in appeals. This leaves open the possibility of circuit splits, which the creation of the Federal Circuit was designed to mitigate, but there are worse problems than circuit splits, and we now have them.
  • Another helpful reform would be for Congress to limit the scope of patentable subject matter via statute. New Zealand has done just that, declaring that software is “not an invention” to get around WTO obligations to respect intellectual property. Congress should do the same with respect to both software and business methods.
  • Finally, even if the above reforms were adopted, there would still be a need to address the asymmetries in patent litigation that result in predatory “troll” lawsuits. While the holding in Alice v. CLS arguably makes a wide swath of patents invalid, those patents could still be used in troll lawsuits because a ruling of invalidity for each individual patent might not occur until late in a trial. Current legislation in Congress addresses this class of problem by mandating disclosures, shifting fees in the case of spurious lawsuits, and enabling a review of the patent’s validity before a trial commences.
  • What matters for prosperity is not just property rights in the abstract, but good property-defining institutions. Without reform, our patent system will continue to favor special interests and forestall economic growth.
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    "Libertarians intuitively understand the case for patents: just as other property rights internalize the social benefits of improvements to land, automobile maintenance, or business investment, patents incentivize the creation of new inventions, which might otherwise be undersupplied. So far, so good. But it is important to recognize that the laws that govern property, intellectual or otherwise, do not arise out of thin air. Rather, our political institutions, with all their virtues and foibles, determine the contours of property-the exact bundle of rights that property holders possess, their extent, and their limitations. Outlining efficient property laws is not a trivial problem. The optimal contours of property are neither immutable nor knowable a priori. For example, in 1946, the U.S. Supreme Court reversed the age-old common law doctrine that extended real property rights to the heavens without limit. The advent of air travel made such extensive property rights no longer practicable-airlines would have had to cobble together a patchwork of easements, acre by acre, for every corridor through which they flew, and they would have opened themselves up to lawsuits every time their planes deviated from the expected path. The Court rightly abridged property rights in light of these empirical realities. In defining the limits of patent rights, our political institutions have gotten an analogous question badly wrong. A single, politically captured circuit court with exclusive jurisdiction over patent appeals has consistently expanded the scope of patentable subject matter. This expansion has resulted in an explosion of both patents and patent litigation, with destructive consequences. "
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    I added a comment to the page's article. Patents are antithetical to the precepts of Libertarianism and do not involve Natural Law rights. But I agree with the author that the Court of Appeals for the Federal Circuit should be abolished. It's a failed experiment.
Gary Edwards

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

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