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The Federal Communications Commission is poised to ruin the free Internet on a technicality. The group is expected to introduce new net neutrality laws that would allow companies to pay for better access to consumers through deals similar to the one struck by Netflix and Comcast earlier this year. The argument is that those deals don’t technically fall under the net neutrality umbrella, so these new rules won’t apply to them even though they directly affect the Internet. At least the commission is being upfront about its disinterest in protecting the free Internet.

The Verge notes that the proposed rules will offer some protections to consumers: The Federal Communication Commission’s proposal for new net neutrality rules will allow internet service providers to charge companies for preferential treatment, effectively undermining the concept of net neutrality, according to The Wall Street Journal. The rules will reportedly allow providers to charge for preferential treatment so long as they offer that treatment to all interested parties on “commercially reasonable” terms, with the FCC will deciding whether the terms are reasonable on a case-by-case basis. Providers will not be able to block individual websites, however. The goal of net neutrality rules is to prevent service providers from discriminating between different content, allowing all types of data and all companies’ data to be treated equally. While it appears that outright blocking of individual services won’t be allowed, the Journal reports that some forms of discrimination will be allowed, though that will apparently not include slowing down websites.

Re/code summarizes the discontent with these proposed rules: Consumer groups have complained about that plan because they’re worried that Wheeler’s rules may not hold up in court either. A federal appeals court rejected two previous versions of net neutrality rules after finding fault in the FCC’s legal reasoning. During the latest smackdown, however, the court suggested that the FCC had some authority to impose net neutrality rules under a section of the law that gives the agency the ability to regulate the deployment of broadband lines. Internet activists would prefer that the FCC just re-regulate Internet lines under old rules designed for telephone networks, which they say would give the agency clear authority to police Internet lines. Wheeler has rejected that approach for now. Phone and cable companies, including Comcast, AT&T and Verizon, have vociferously fought that idea over the past few years.

One security start-up that had an encounter with the FBI was Wickr, a privacy-forward text messaging app for the iPhone with an Android version in private beta. Wickr's co-founder Nico Sell told CNET at Defcon, "Wickr has been approached by the FBI and asked for a backdoor. We said, 'No.'" The mistrust runs deep. "Even if [the NSA] stood up tomorrow and said that [they] have eliminated these programs," said Marlinspike, "How could we believe them? How can we believe that anything they say is true?" Where does security innovation go next? The immediate future of information security innovation most likely lies in software that provides an existing service but with heightened privacy protections, such as webmail that doesn't mine you for personal data.

Wickr's Sell thinks that her company has hit upon a privacy innovation that a few others are also doing, but many will soon follow: the company itself doesn't store user data. "[The FBI] would have to force us to build a new app. With the current app there's no way," she said, that they could incorporate backdoor access to Wickr users' texts or metadata. "Even if you trust the NSA 100 percent that they're going to use [your data] correctly," Sell said, "Do you trust that they're going to be able to keep it safe from hackers? What if somebody gets that database and posts it online?" To that end, she said, people will start seeing privacy innovation for services that don't currently provide it. Calling it "social networks 2.0," she said that social network competitors will arise that do a better job of protecting their customer's privacy and predicted that some that succeed will do so because of their emphasis on privacy. Abine's recent MaskMe browser add-on and mobile app for creating disposable e-mail addresses, phone numbers, and credit cards is another example of a service that doesn't have access to its own users' data.

Stamos predicted changes in services that companies with cloud storage offer, including offering customers the ability to store their data outside of the U.S. "If they want to stay competitive, they're going to have to," he said. But, he cautioned, "It's impossible to do a cloud-based ad supported service." Soghoian added, "The only way to keep a service running is to pay them money." This, he said, is going to give rise to a new wave of ad-free, privacy protective subscription services.

The foundation behind Wikipedia is suing the U.S. government over spying that it says violates core provisions of the Constitution.The Wikimedia Foundation joined forces on Tuesday with a slew of human rights groups, The Nation magazine and other organizations in a lawsuit accusing the National Security Agency (NSA) and Justice Department of violating the constitutional protections for freedom of speech and privacy.

If successful, the lawsuit could land a crippling blow to the web of secretive spying powers wielded by the NSA and exposed by Edward Snowden nearly two years ago. Despite initial outrage after Snowden’s leaks, Congress has yet to make any serious reforms to the NSA, and many of the programs continue largely unchanged.The lawsuit targets the NSA’s “upstream” surveillance program, which taps into the fiber cables that make up the backbone of the global Internet and allows the agency to collect vast amounts of information about people on the Web.“As a result, whenever someone overseas views or edits a Wikipedia page, it’s likely that the N.S.A. is tracking that activity — including the content of what was read or typed, as well as other information that can be linked to the person’s physical location and possible identity,” Tretikov and Wikipedia founder Jimmy Wales wrote in a joint New York Times op-ed announcing the lawsuit. Because the operations are largely overseen solely by the secretive Foreign Intelligence Surveillance Court — which operates out of the public eye and has been accused of acting as a rubber stamp for intelligence agencies — the foundation accused the NSA of violating the guarantees of a fair legal system.In addition to the Wikimedia Foundation and The Nation, the other groups joining the lawsuit are the National Association of Criminal Defense Lawyers, Human Rights Watch, Amnesty International, the Pen American Center, the Global Fund for Women, the Rutherford Institute and the Washington Office on Latin America. The groups are being represented by the American Civil Liberties Union.

In 2013, a lawsuit against similar surveillance powers brought by Amnesty International was tossed out by the Supreme Court on the grounds that the organization was not affected by the spying and had no standing to sue. That decision came before Snowden’s leaks later that summer, however, which included a slide featuring Wikipedia’s logo alongside those of Facebook, Yahoo, Google and other top websites. That should be more than enough grounds for a successful suit, the foundation said. In addition to the new suit, there are also a handful of other outstanding legal challenges to the NSA’s bulk collection of Americans’ phone records, a different program that has inspired some of the most heated antipathy. Those suits are all pending in appeals courts around the country.

Reversing a controversial deregulation decision made by the Bush administration, the FCC will seek to force broadband internet providers to adhere to some of the rules that have long applied to the nation’s landline phone providers. The decision will be announced officially tomorrow by FCC Chairman Julius Genachowski, according to a senior FCC official’s statement Wednesday, and will likely set off a firestorm of protests from the nation’s well-connected telecommunications industry. The FCC says the move is a response to a recent court ruling that called into question whether the FCC had authority to regulate how the nation’s broadband providers run their networks, including whether providers can block content. The ruling came in a case where Comcast appealed an FCC order that forbade the carrier from blocking peer-to-peer file sharing.

A district court in California has issued a ruling in favor of the National Security Agency in a long-running case over the spy agency’s collection of Internet records.The challenge against the controversial Upstream program was tossed out because additional defense from the government would have required “impermissible disclosure of state secret information,” Judge Jeffrey White wrote in his decision.ADVERTISEMENTUnder the program — details of which were revealed through leaks from Edward Snowden and others — the NSA taps into the fiber cables that make up the backbone of the Internet and gathers information about people's online and phone communications. The agency then filters out communications of U.S. citizens, whose data is protected with legal defenses not extended to foreigners, and searches for “selectors” tied to a terrorist or other target.In 2008, the Electronic Frontier Foundation (EFF) sued the government over the program on behalf of five AT&T customers, who said that the collection violated the constitutional protections to privacy and free speech.

But “substantial details” about the program still remain classified, White, an appointee under former President George W. Bush, wrote in his decision. Moving forward with the merits of a trial would risk “exceptionally grave damage to national security,” he added. <A HREF="http://ws-na.amazon-adsystem.com/widgets/q?rt=tf_mfw&ServiceVersion=20070822&MarketPlace=US&ID=V20070822%2FUS%2Fthehill07-20%2F8001%2Fdffbe72d-f425-4b83-b07e-357ae9d405f6&Operation=NoScript">Amazon.com Widgets</A> The government has been “persuasive” in using its state secrets privilege, he continued, which allows it to withhold evidence from a case that could severely jeopardize national security.   In addition to saying that the program appeared constitutional, the judge also found that the AT&T customers did not even have the standing to sue the NSA over its data gathering.While they may be AT&T customers, White wrote that the evidence presented to the court was “insufficient to establish that the Upstream collection process operates in the manner” that they say it does, which makes it impossible to tell if their information was indeed collected in the NSA program.  The decision is a stinging rebuke to critics of the NSA, who have seen public interest in their cause slowly fade in the months since Snowden’s revelations.

The EFF on Tuesday evening said that it was considering next steps and noted that the court focused on just one program, not the totality of the NSA’s controversial operations.“It would be a travesty of justice if our clients are denied their day in court over the ‘secrecy’ of a program that has been front-page news for nearly a decade,” the group said in a statement.“We will continue to fight to end NSA mass surveillance.”The name of the case is Jewel v. NSA.