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Paul Merrell

EFF to Court: Don't Undermine Legal Protections for Online Platforms that Enable Free S... - 0 views

  • EFF filed a brief in federal court arguing that a lower court’s ruling jeopardizes the online platforms that make the Internet a robust platform for users’ free speech. The brief, filed in the U.S. Court of Appeals for the Ninth Circuit, argues that 47 U.S.C. § 230, enacted as part of the Communications Decency Act (known simply as “Section 230”) broadly protects online platforms, including review websites, when they aggregate or otherwise edit users’ posts. Generally, Section 230 provides legal immunity for online intermediaries that host or republish speech by protecting them against a range of laws that might otherwise be used to hold them legally responsible for what others say and do. Section 230’s immunity directly led to the development of the platforms everyone uses today, allowing people to upload videos to their favorite platforms such as YouTube, as well as leave reviews on Amazon or Yelp. It also incentivizes the creation of new platforms that can host users’ content, leading to more innovation that enables the robust free speech found online. The lower court’s decision in Consumer Cellular v. ConsumerAffairs.com, however, threatens to undermine the broad protections of Section 230, EFF’s brief argues.
  • In the case, Consumer Cellular alleged, among other things, that ConsumerAffairs.com should be held liable for aggregating negative reviews about its business into a star rating. It also alleged that ConsumerAffairs.com edited or otherwise deleted certain reviews of Consumer Cellular in bad faith. Courts and the text of Section 230, however, plainly allow platforms to edit or aggregate user-generated content into summaries or star ratings without incurring legal liability, EFF’s brief argues. It goes on: “And any function protected by Section 230 remains so regardless of the publisher’s intent.” By allowing Consumer Cellular’s claims against ConsumerAffairs.com to proceed, the lower court seriously undercut Section 230’s legal immunity for online platforms. If the decision is allowed to stand, EFF’s brief argues, then platforms may take steps to further censor or otherwise restrict user content out of fear of being held liable. That outcome, EFF warns, could seriously diminish the Internet’s ability to serve as a diverse forum for free speech. The Internet it is constructed of and depends upon intermediaries. The many varied online intermediary platforms, including Twitter, Reddit, YouTube, and Instagram, all give a single person, with minimal resources, almost anywhere in the world the ability to communicate with the rest of the world. Without intermediaries, that speaker would need technical skill and money that most people lack to disseminate their message. If our legal system fails to robustly protect intermediaries, it fails to protect free speech online.
Paul Merrell

Save Firefox! | Electronic Frontier Foundation - 0 views

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

He Was a Hacker for the NSA and He Was Willing to Talk. I Was Willing to Listen. - 0 views

  • he message arrived at night and consisted of three words: “Good evening sir!” The sender was a hacker who had written a series of provocative memos at the National Security Agency. His secret memos had explained — with an earthy use of slang and emojis that was unusual for an operative of the largest eavesdropping organization in the world — how the NSA breaks into the digital accounts of people who manage computer networks, and how it tries to unmask people who use Tor to browse the web anonymously. Outlining some of the NSA’s most sensitive activities, the memos were leaked by Edward Snowden, and I had written about a few of them for The Intercept. There is no Miss Manners for exchanging pleasantries with a man the government has trained to be the digital equivalent of a Navy SEAL. Though I had initiated the contact, I was wary of how he might respond. The hacker had publicly expressed a visceral dislike for Snowden and had accused The Intercept of jeopardizing lives by publishing classified information. One of his memos outlined the ways the NSA reroutes (or “shapes”) the internet traffic of entire countries, and another memo was titled “I Hunt Sysadmins.” I felt sure he could hack anyone’s computer, including mine. Good evening sir!
  • The sender was a hacker who had written a series of provocative memos at the National Security Agency. His secret memos had explained — with an earthy use of slang and emojis that was unusual for an operative of the largest eavesdropping organization in the world — how the NSA breaks into the digital accounts of people who manage computer networks, and how it tries to unmask people who use Tor to browse the web anonymously. Outlining some of the NSA’s most sensitive activities, the memos were leaked by Edward Snowden, and I had written about a few of them for The Intercept. There is no Miss Manners for exchanging pleasantries with a man the government has trained to be the digital equivalent of a Navy SEAL. Though I had initiated the contact, I was wary of how he might respond. The hacker had publicly expressed a visceral dislike for Snowden and had accused The Intercept of jeopardizing lives by publishing classified information. One of his memos outlined the ways the NSA reroutes (or “shapes”) the internet traffic of entire countries, and another memo was titled “I Hunt Sysadmins.” I felt sure he could hack anyone’s computer, including mine.
  • I got lucky with the hacker, because he recently left the agency for the cybersecurity industry; it would be his choice to talk, not the NSA’s. Fortunately, speaking out is his second nature.
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  • The Lamb’s memos on cool ways to hunt sysadmins triggered a strong reaction when I wrote about them in 2014 with my colleague Ryan Gallagher. The memos explained how the NSA tracks down the email and Facebook accounts of systems administrators who oversee computer networks. After plundering their accounts, the NSA can impersonate the admins to get into their computer networks and pilfer the data flowing through them. As the Lamb wrote, “sys admins generally are not my end target. My end target is the extremist/terrorist or government official that happens to be using the network … who better to target than the person that already has the ‘keys to the kingdom’?” Another of his NSA memos, “Network Shaping 101,” used Yemen as a theoretical case study for secretly redirecting the entirety of a country’s internet traffic to NSA servers.
  • In recent years, two developments have helped make hacking for the government a lot more attractive than hacking for yourself. First, the Department of Justice has cracked down on freelance hacking, whether it be altruistic or malignant. If the DOJ doesn’t like the way you hack, you are going to jail. Meanwhile, hackers have been warmly invited to deploy their transgressive impulses in service to the homeland, because the NSA and other federal agencies have turned themselves into licensed hives of breaking into other people’s computers. For many, it’s a techno sandbox of irresistible delights, according to Gabriella Coleman, a professor at McGill University who studies hackers. “The NSA is a very exciting place for hackers because you have unlimited resources, you have some of the best talent in the world, whether it’s cryptographers or mathematicians or hackers,” she said. “It is just too intellectually exciting not to go there.”
  • He agreed to a video chat that turned into a three-hour discussion sprawling from the ethics of surveillance to the downsides of home improvements and the difficulty of securing your laptop.
  • “If I turn the tables on you,” I asked the Lamb, “and say, OK, you’re a target for all kinds of people for all kinds of reasons. How do you feel about being a target and that kind of justification being used to justify getting all of your credentials and the keys to your kingdom?” The Lamb smiled. “There is no real safe, sacred ground on the internet,” he replied. “Whatever you do on the internet is an attack surface of some sort and is just something that you live with. Any time that I do something on the internet, yeah, that is on the back of my mind. Anyone from a script kiddie to some random hacker to some other foreign intelligence service, each with their different capabilities — what could they be doing to me?”
  • “You know, the situation is what it is,” he said. “There are protocols that were designed years ago before anybody had any care about security, because when they were developed, nobody was foreseeing that they would be taken advantage of. … A lot of people on the internet seem to approach the problem [with the attitude of] ‘I’m just going to walk naked outside of my house and hope that nobody looks at me.’ From a security perspective, is that a good way to go about thinking? No, horrible … There are good ways to be more secure on the internet. But do most people use Tor? No. Do most people use Signal? No. Do most people use insecure things that most people can hack? Yes. Is that a bash against the intelligence community that people use stuff that’s easily exploitable? That’s a hard argument for me to make.”
  • I mentioned that lots of people, including Snowden, are now working on the problem of how to make the internet more secure, yet he seemed to do the opposite at the NSA by trying to find ways to track and identify people who use Tor and other anonymizers. Would he consider working on the other side of things? He wouldn’t rule it out, he said, but dismally suggested the game was over as far as having a liberating and safe internet, because our laptops and smartphones will betray us no matter what we do with them. “There’s the old adage that the only secure computer is one that is turned off, buried in a box ten feet underground, and never turned on,” he said. “From a user perspective, someone trying to find holes by day and then just live on the internet by night, there’s the expectation [that] if somebody wants to have access to your computer bad enough, they’re going to get it. Whether that’s an intelligence agency or a cybercrimes syndicate, whoever that is, it’s probably going to happen.”
  • There are precautions one can take, and I did that with the Lamb. When we had our video chat, I used a computer that had been wiped clean of everything except its operating system and essential applications. Afterward, it was wiped clean again. My concern was that the Lamb might use the session to obtain data from or about the computer I was using; there are a lot of things he might have tried, if he was in a scheming mood. At the end of our three hours together, I mentioned to him that I had taken these precautions—and he approved. “That’s fair,” he said. “I’m glad you have that appreciation. … From a perspective of a journalist who has access to classified information, it would be remiss to think you’re not a target of foreign intelligence services.” He was telling me the U.S. government should be the least of my worries. He was trying to help me. Documents published with this article: Tracking Targets Through Proxies & Anonymizers Network Shaping 101 Shaping Diagram I Hunt Sys Admins (first published in 2014)
Paul Merrell

FBI's secret method of unlocking iPhone may never reach Apple | Reuters - 0 views

  • The FBI may be allowed to withhold information about how it broke into an iPhone belonging to a gunman in the December San Bernardino shootings, despite a U.S. government policy of disclosing technology security flaws discovered by federal agencies. Under the U.S. vulnerabilities equities process, the government is supposed to err in favor of disclosing security issues so companies can devise fixes to protect data. The policy has exceptions for law enforcement, and there are no hard rules about when and how it must be applied.Apple Inc has said it would like the government to share how it cracked the iPhone security protections. But the Federal Bureau of Investigation, which has been frustrated by its inability to access data on encrypted phones belonging to criminal suspects, might prefer to keep secret the technique it used to gain access to gunman Syed Farook's phone. The referee is likely to be a White House group formed during the Obama administration to review computer security flaws discovered by federal agencies and decide whether they should be disclosed.
  • Stewart Baker, former general counsel of the NSA and now a lawyer with Steptoe & Johnson, said the review process could be complicated if the cracking method is considered proprietary by the third party that assisted the FBI.Several security researchers have pointed to the Israel-based mobile forensics firm Cellebrite as the likely third party that helped the FBI. That company has repeatedly declined comment.
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    The article is wide of the mark, based on analysis of Executive Branch policy rather than the governing law such as the Freedom of Information Act. And I still find it somewhat ludicrous that a third party with knowledge of the defect could succeed in convincing a court that knowledge of a defect in a company's product is trade-secret proprietary information. "Your honor, my client has discovered a way to break into Mr. Tim Cook's house without a key to his house. That is a valuable trade secret that this Court must keep Mr. Cook from learning." Pow! The Computer Fraud and Abuse Act makes it a crime to access a computer that can connect to the Internet by exploiting a software bug. 
Paul Merrell

Race to Introduce Fascist Internet Regulations in Russia Continues - Now under the Bann... - 0 views

  • Russian lawmaker Vitaly Milonov, on Monday, proposed a bill aimed to ban children under the age of 14 from social media. Although the bill is touted under the banner of child protection, it also aims to introduce the mandatory submission of passport data. In January Russia introduced semi-fascist regulations to severely curb the rights of bloggers and independent media.
  • Vitaly Milnov, generally known for being ultra-conservative, introduced the controversial bill on Monday. Touting the bill under the banner of wanting to protect children and limit their access to social media the bill has far deeper implications. Parents could very well self-regulate their children’s access to social media. The bill, however, implies that it would become mandatory for social media users to submit their passport data. Moreover, the bill also proposes that the use of pseudonyms will be banned. The proposed legislation also aims to introducing strict rules, requiring two-party consent before the publication of screenshots of online correspondence. The bill reads, among others: “Social networks create a special virtual world where a person spends significant part of their life, contacting other people and essentially doing everything that they would do in real world. This world can’t be left unregulated by law. Especially now, when growing number of users are falling victim to different types of fraud.” Even though Milonov is generally viewed as ultra-conservative, there are about 62 percent of Russians who according to polls support the ban of social networks for children while 39 percent supported using passport data to create an online account, a poll by the state-funded pollster VTsIOM revealed Monday.
  • Social media has come under intense scrutiny in Russia in recent months. Disturbingly, there are very few Russians who have received independent information about the not so overtly advertised implications of this scrutiny, of the proposed bill, and of plans to create a “Russian internet” to filter “unwanted foreign content. Russia also cracks down on independent bloggers and journalists. On January 1, 2016 the Russian Federation implemented amendments to laws that further censor the internet and potentially independent media. These laws are being sold under the guise of empowering internet users and the right to protect personal information. The amendments follow legislation from 2014 that infringed on the rights of bloggers.
Paul Merrell

Spooked By Lax U.S. Data Privacy, European Firms Build Their Own Cloud Services - 0 views

  • A few recent legal developments affecting U.S. online privacy have rightfully troubled privacy advocates and civil libertarians on American soil. In addition to the Patriot Act's relaxed regulation of law enforcement's access to private data, recent court rulings have made it clear that U.S. authorities can secretly request data from tech companies without the user ever knowing. If this seems objectionable from the standpoint of U.S. citizens, imagine how it looks to outsiders who are storing their data there. Some European companies who do business with U.S. technology companies are concerned enough to start looking elsewhere for infrastructure
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    Draconian post-9/11 U.S. government surveillance statutes will cost U.S. economy as customers shop for cloud services elsewhere.  
Paul Merrell

AT&T Thumbs Nose at Net Neutrality With 'Sponsored' Bandwidth Scheme | Threat Level | W... - 0 views

  • AT&T announced a new scheme today that allows app-makers and websites to pay for the bandwidth you consume using their services — a move digital rights activists say breaches the spirit of net neutrality. The second largest mobile provider is taking advantage of the data caps it imposes on subscribers by letting companies sponsor the bandwidth their wares use. The consumer who enjoys those sponsored services will not have that broadband count against their monthly data allotment. Sponsorship is not mandatory — if a company doesn’t pay AT&T, the bandwidth will count against the user’s cap as always. Online rights groups said the move is anti-competitive and takes advantage of a loophole in Federal Communications Commission rules prohibiting ISPs from favoring one service over the other. For the most part, however, those FCC guidelines adopted in 2010 apply to cable, fiber and DSL internet providers, not wireless ones.
Paul Merrell

House Passes Cellphone Unlocking Bill While New Provision Causes Withdrawals | Bloomber... - 0 views

  • On Feb. 25, the House of Representatives passed by a vote of 295-114 under suspension of the rules a bill aimed at creating a statutory right for owners of cellphones to be able to “unlock” their phones so that they can use the same phone with a different service provider.The Unlocking Consumer Choice Act (H.R. 1123), which was introduced in March by Rep. Robert W. Goodlatte (R-Va.), chairman of the House Judiciary Committee, was widely supported by members on both sides of the aisle.However, some representatives expressed objections to the current form of the legislation and even suggested that statutory protection of unlocking was no longer necessary, given that the Federal Communications Commission had in December persuaded the wireless industry to allow unlocking on a voluntary basis (241 PTD, 12/16/13).
  • On the morning of the day that the vote was to take place, several representatives who had previously supported the bill, issued a letter to their colleagues urging that H.R. 1123 be defeated on the floor of the House. The letter--signed by Reps. Zoe Lofgren (D-Calif.), Anna G. Eshoo (D-Calif.), Thomas H. Massie (R-Ky.), and Jared S. Polis (D-Colo.)--objected to a provision added to the bill after its approval by the full committee in July (148 PTD, 8/1/13).The new provision would exempt from protection “bulk unlocking” of phones. This provision might have something to with concerns expressed by some members of the Judiciary Committee in last year's hearings on the bill that permitting individual consumers to unlock their phones should not extend to businesses who charge consumers to unlock their phones for them.The letter referred to statements by the Electronic Frontier Foundation and Public Knowledge, consumer groups that had both supported the bill in the past, in which they withdrew their support because of the appearance of the new provision.
Paul Merrell

Supreme Court Will Hear Arguments On Section 101 Software Patent Eligibility | Bloomber... - 0 views

  • The Supreme Court granted a petition for writ of certiorari on Dec. 6 in a case challenging software method and system patent eligibility under 35 U.S.C. §101, in Alice Corp. Pty. Ltd. v. CLS Bank Int'l ( U.S., No. 13-298, review granted, 12/6/13).The question presented by the patent owner in the case is:Whether claims to computer-implemented inventions--including claims to systems and machines, processes, and items of manufacture--are directed to patent-eligible subject matter within the meaning of 35 U.S.C. §101 as interpreted by this Court? 
  • The CLS Bank case is controversial because the U.S. Court of Appeals for the Federal Circuit, sitting en banc, failed to reach enough agreement on patent eligibility of computer-related claims to supply precedential jurisprudence. CLS Bank Int'l v. Alice Corp. Pty. Ltd., 717 F.3d 1269, 2013 BL 124940, 106 U.S.P.Q.2d 1696 (Fed. Cir. 2013) (en banc) (92 PTD, 5/13/13).Alice Corp. asserted four patents (U.S. Patent Nos. 5,970,479; 6,912,510; 7,149,720; and 7,725,375) directed to the formulation and trading of risk management contracts against alleged infringer CLS Bank International.The en banc court was 7-3 against patent eligibility of the method claims and 5-5 as to the system claims. Since the lower court had ruled that the system claims were ineligible, that judgment stands and all of Alice's claims are ineligible unless the Supreme Court overturns the decision. Eight members of the en banc court said that method and system or media claims should rise or fall together, but not for the same reasons.
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    U.S. Supreme Court finally to decide whether software patent claims are legal? It looks like this may finally be the case. 
Paul Merrell

U.S. knocks plans for European communication network | Reuters - 0 views

  • The United States on Friday criticized proposals to build a European communication network to avoid emails and other data passing through the United States, warning that such rules could breach international trade laws. In its annual review of telecommunications trade barriers, the office of the U.S. Trade Representative said impediments to cross-border data flows were a serious and growing concern.It was closely watching new laws in Turkey that led to the blocking of websites and restrictions on personal data, as well as calls in Europe for a local communications network following revelations last year about U.S. digital eavesdropping and surveillance."Recent proposals from countries within the European Union to create a Europe-only electronic network (dubbed a 'Schengen cloud' by advocates) or to create national-only electronic networks could potentially lead to effective exclusion or discrimination against foreign service suppliers that are directly offering network services, or dependent on them," the USTR said in the report.
  • Germany and France have been discussing ways to build a European network to keep data secure after the U.S. spying scandal. Even German Chancellor Angela Merkel's cell phone was reportedly monitored by American spies.The USTR said proposals by Germany's state-backed Deutsche Telekom to bypass the United States were "draconian" and likely aimed at giving European companies an advantage over their U.S. counterparts.Deutsche Telekom has suggested laws to stop data traveling within continental Europe being routed via Asia or the United States and scrapping the Safe Harbor agreement that allows U.S. companies with European-level privacy standards access to European data. (www.telekom.com/dataprotection)"Any mandatory intra-EU routing may raise questions with respect to compliance with the EU's trade obligations with respect to Internet-enabled services," the USTR said. "Accordingly, USTR will be carefully monitoring the development of any such proposals."
  • U.S. tech companies, the leaders in an e-commerce marketplace estimated to be worth up to $8 trillion a year, have urged the White House to undertake reforms to calm privacy concerns and fend off digital protectionism.
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    High comedy from the office of the U.S. Trade Representative. The USTR's press release is here along with a link to its report. http://www.ustr.gov/about-us/press-office/press-releases/2014/March/USTR-Targets-Telecommunications-Trade-Barriers The USTR is upset because the E.U. is aiming to build a digital communications network that does not route internal digital traffic outside the E.U., to limit the NSA's ability to surveil Europeans' communications. Part of the plan is to build an E.U.-centric cloud that is not susceptible to U.S. court orders. This plan does not, of course, sit well with U.S.-based cloud service providers.  Where the comedy comes in is that the USTR is making threats to go to the World Trade organization to block the E.U. move under the authority of the General Agreement on Trade in Services (GATS). But that treaty provides, in article XIV, that:  "Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on trade in services, nothing in this Agreement shall be construed to prevent the adoption or enforcement by any Member of measures: ... (c)      necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Agreement including those relating to:   ... (ii)     the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts[.]" http://www.wto.org/english/docs_e/legal_e/26-gats_01_e.htm#articleXIV   The E.U., in its Treaty on Human Rights, has very strong privacy protections for digital communications. The USTR undoubtedly knows all this, and that the WTO Appellate Panel's judges are of the European mold, sticklers for protection of human rights and most likely do not appreciate being subjects o
Paul Merrell

EFF to Court: U.S. Warrants Don't Apply to Overseas Emails | Electronic Frontier Founda... - 0 views

  • The Electronic Frontier Foundation (EFF) has urged a federal court to block a U.S. search warrant ordering Microsoft to turn over a customer's emails held in an overseas server, arguing that the case has dangerous privacy implications for Internet users everywhere. The case started in December of last year, when a magistrate judge in New York signed a search warrant seeking records and emails from a Microsoft account in connection with a criminal investigation. However, Microsoft determined that the emails the government sought were on a Microsoft server in Dublin, Ireland. Because a U.S. judge has no authority to issue warrants to search and seize property or data abroad, Microsoft refused to turn over the emails and asked the magistrate to quash the warrant. But the magistrate denied Microsoft's request, ruling there was no foreign search because the data would be reviewed by law enforcement agents in the U.S.
  • Microsoft appealed the decision. In an amicus brief in support of Microsoft, EFF argues the magistrate's rationale ignores the fact that copying the emails is a "seizure" that takes place in Ireland. "The Fourth Amendment protects from unreasonable search and seizure. You can't ignore the 'seizure' part just because the property is digital and not physical," said EFF Staff Attorney Hanni Fakhoury. "Ignoring this basic point has dangerous implications – it could open the door to unfounded law enforcement access to and collection of data stored around the world."
  • For the full brief in this case:https://www.eff.org/document/eff-amicus-brief-support-microsoft
Paul Merrell

Marriott fined $600,000 for jamming guest hotspots - SlashGear - 0 views

  • Marriott will cough up $600,000 in penalties after being caught blocking mobile hotspots so that guests would have to pay for its own WiFi services, the FCC has confirmed today. The fine comes after staff at the Gaylord Opryland Hotel and Convention Center in Nashville, Tennessee were found to be jamming individual hotspots and then charging people up to $1,000 per device to get online. Marriott has been operating the center since 2012, and is believed to have been running its interruption scheme since then. The first complaint to the FCC, however, wasn't until March 2013, when one guest warned the Commission that they suspected their hardware had been jammed. An investigation by the FCC's Enforcement Bureau revealed that was, in fact, the case. A WiFi monitoring system installed at the Gaylord Opryland would target access points with de-authentication packets, disconnecting users so that their browsing was interrupted.
  • The FCC deemed Marriott's behaviors as contravening Section 333 of the Communications Act, which states that "no person shall willfully or maliciously interfere with or cause interference to any radio communications of any station licensed or authorized by or under this chapter or operated by the United States Government." In addition to the $600,000 civil penalty, Marriott will have to cease blocking guests, hand over details of any access point containment features to the FCC across its entire portfolio of owned or managed properties, and finally file compliance and usage reports each quarter for the next three years.
  • Update: Marriott has issued the following statement on the FCC ruling: "Marriott has a strong interest in ensuring that when our guests use our Wi-Fi service, they will be protected from rogue wireless hotspots that can cause degraded service, insidious cyber-attacks and identity theft. Like many other institutions and companies in a wide variety of industries, including hospitals and universities, the Gaylord Opryland protected its Wi-Fi network by using FCC-authorized equipment provided by well-known, reputable manufacturers. We believe that the Gaylord Opryland's actions were lawful. We will continue to encourage the FCC to pursue a rulemaking in order to eliminate the ongoing confusion resulting from today's action and to assess the merits of its underlying policy."
Paul Merrell

Court gave NSA broad leeway in surveillance, documents show - The Washington Post - 0 views

  • Virtually no foreign government is off-limits for the National Security Agency, which has been authorized to intercept information “concerning” all but four countries, according to top-secret documents. The United States has long had broad no-spying arrangements with those four countries — Britain, Canada, Australia and New Zealand — in a group known collectively with the United States as the Five Eyes. But a classified 2010 legal certification and other documents indicate the NSA has been given a far more elastic authority than previously known, one that allows it to intercept through U.S. companies not just the communications of its overseas targets but any communications about its targets as well.
  • The certification — approved by the Foreign Intelligence Surveillance Court and included among a set of documents leaked by former NSA contractor Edward Snowden — lists 193 countries that would be of valid interest for U.S. intelligence. The certification also permitted the agency to gather intelligence about entities including the World Bank, the International Monetary Fund, the European Union and the International Atomic Energy Agency. The NSA is not necessarily targeting all the countries or organizations identified in the certification, the affidavits and an accompanying exhibit; it has only been given authority to do so. Still, the privacy implications are far-reaching, civil liberties advocates say, because of the wide spectrum of people who might be engaged in communication about foreign governments and entities and whose communications might be of interest to the United States.
  • That language could allow for surveillance of academics, journalists and human rights researchers. A Swiss academic who has information on the German government’s position in the run-up to an international trade negotiation, for instance, could be targeted if the government has determined there is a foreign-intelligence need for that information. If a U.S. college professor e-mails the Swiss professor’s e-mail address or phone number to a colleague, the American’s e-mail could be collected as well, under the program’s court-approved rules
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  • On Friday, the Office of the Director of National Intelligence released a transparency report stating that in 2013 the government targeted nearly 90,000 foreign individuals or organizations for foreign surveillance under the program. Some tech-industry lawyers say the number is relatively low, considering that several billion people use U.S. e-mail services.
  • Still, some lawmakers are concerned that the potential for intrusions on Americans’ privacy has grown under the 2008 law because the government is intercepting not just communications of its targets but communications about its targets as well. The expansiveness of the foreign-powers certification increases that concern.
  • In a 2011 FISA court opinion, a judge using an NSA-provided sample estimated that the agency could be collecting as many as 46,000 wholly domestic e-mails a year that mentioned a particular target’s e-mail address or phone number, in what is referred to as “about” collection. “When Congress passed Section 702 back in 2008, most members of Congress had no idea that the government was collecting Americans’ communications simply because they contained a particular individual’s contact information,” Sen. Ron Wyden (D-Ore.), who has co-sponsored ­legislation to narrow “about” collection authority, said in an e-mail to The Washington Post. “If ‘about the target’ collection were limited to genuine national security threats, there would be very little privacy impact. In fact, this collection is much broader than that, and it is scooping up huge amounts of Americans’ wholly domestic communications.”
  • The only reason the court has oversight of the NSA program is that Congress in 2008 gave the government a new authority to gather intelligence from U.S. companies that own the Internet cables running through the United States, former officials noted. Edgar, the former privacy officer at the Office of the Director of National Intelligence, said ultimately he believes the authority should be narrowed. “There are valid privacy concerns with leaving these collection decisions entirely in the executive branch,” he said. “There shouldn’t be broad collection, using this authority, of foreign government information without any meaningful judicial role that defines the limits of what can be collected.”
Paul Merrell

USA Freedom Act Passes: What We Celebrate, What We Mourn, and Where We Go From Here | E... - 0 views

  • The Senate passed the USA Freedom Act today by 67-32, marking the first time in over thirty years that both houses of Congress have approved a bill placing real restrictions and oversight on the National Security Agency’s surveillance powers. The weakening amendments to the legislation proposed by NSA defender Senate Majority Mitch McConnell were defeated, and we have every reason to believe that President Obama will sign USA Freedom into law. Technology users everywhere should celebrate, knowing that the NSA will be a little more hampered in its surveillance overreach, and both the NSA and the FISA court will be more transparent and accountable than it was before the USA Freedom Act. It’s no secret that we wanted more. In the wake of the damning evidence of surveillance abuses disclosed by Edward Snowden, Congress had an opportunity to champion comprehensive surveillance reform and undertake a thorough investigation, like it did with the Church Committee. Congress could have tried to completely end mass surveillance and taken numerous other steps to rein in the NSA and FBI. This bill was the result of compromise and strong leadership by Sens. Patrick Leahy and Mike Lee and Reps. Robert Goodlatte, Jim Sensenbrenner, and John Conyers. It’s not the bill EFF would have written, and in light of the Second Circuit's thoughtful opinion, we withdrew our support from the bill in an effort to spur Congress to strengthen some of its privacy protections and out of concern about language added to the bill at the behest of the intelligence community. Even so, we’re celebrating. We’re celebrating because, however small, this bill marks a day that some said could never happen—a day when the NSA saw its surveillance power reduced by Congress. And we’re hoping that this could be a turning point in the fight to rein in the NSA.
Gary Edwards

XML Production Workflows? Start with the Web and XHTML - 1 views

  • Challenges: Some Ugly Truths The challenges of building—and living with—an XML workflow are clear enough. The return on investment is a long-term proposition. Regardless of the benefits XML may provide, the starting reality is that it represents a very different way of doing things than the one we are familiar with. The Word Processing and Desktop Publishing paradigm, based on the promise of onscreen, WYSIWYG layout, is so dominant as to be practically inescapable. It has proven really hard to get from here to there, no matter how attractive XML might be on paper. A considerable amount of organizational effort and labour must be expended up front in order to realize the benefits. This is why XML is often referred to as an “investment”: you sink a bunch of time and money up front, and realize the benefits—greater flexibility, multiple output options, searching and indexing, and general futureproofing—later, over the long haul. It is not a short-term return proposition. And, of course, the returns you are able to realize from your XML investment are commensurate with what you put in up front: fine-grained, semantically rich tagging is going to give you more potential for searchability and recombination than a looser, more general-purpose approach, but it sure costs more. For instance, the Text Encoding Initiative (TEI) is the grand example of pouring enormous amounts of energy into the up-front tagging, with a very open-ended set of possibilities down the line. TEI helpfully defines a level to which most of us do not have to aspire.[5] But understanding this on a theoretical level is only part of the challenge. There are many practical issues that must be addressed. Software and labour are two of the most critical. How do you get the content into XML in the first place? Unfortunately, despite two decades of people doing SGML and XML, this remains an ugly question.
  • Practical Challenges In 2009, there is still no truly likeable—let alone standard—editing and authoring software for XML. For many (myself included), the high-water mark here was Adobe’s FrameMaker, substantially developed by the late 1990s. With no substantial market for it, it is relegated today mostly to the tech writing industry, unavailable for the Mac, and just far enough afield from the kinds of tools we use today that its adoption represents a significant hurdle. And FrameMaker was the best of the breed; most of the other software in decent circulation are programmers’ tools—the sort of things that, as Michael Tamblyn pointed out, encourage editors to drink at their desks. The labour question represents a stumbling block as well. The skill-sets and mind-sets that effective XML editors need have limited overlap with those needed by literary and more traditional production editors. The need to think of documents as machine-readable databases is not something that comes naturally to folks steeped in literary culture. In combination with the sheer time and effort that rich tagging requires, many publishers simply outsource the tagging to India, drawing a division of labour that spans oceans, to put it mildly. Once you have XML content, then what do you do with it? How do you produce books from it? Presumably, you need to be able to produce print output as well as digital formats. But while the latter are new enough to be generally XML-friendly (e-book formats being largely XML based, for instance), there aren’t any straightforward, standard ways of moving XML content into the kind of print production environments we are used to seeing. This isn’t to say that there aren’t ways of getting print—even very high-quality print—output from XML, just that most of them involve replacing your prepress staff with Java programmers.
  • Why does this have to be so hard? It’s not that XML is new, or immature, or untested. Remember that the basics have been around, and in production, since the early 1980s at least. But we have to take account of a substantial and long-running cultural disconnect between traditional editorial and production processes (the ones most of us know intimately) and the ways computing people have approached things. Interestingly, this cultural divide looked rather different in the 1970s, when publishers were looking at how to move to digital typesetting. Back then, printers and software developers could speak the same language. But that was before the ascendancy of the Desktop Publishing paradigm, which computerized the publishing industry while at the same time isolating it culturally. Those of us who learned how to do things the Quark way or the Adobe way had little in common with people who programmed databases or document-management systems. Desktop publishing technology isolated us in a smooth, self-contained universe of toolbars, grid lines, and laser proofs. So, now that the reasons to get with this program, XML, loom large, how can we bridge this long-standing divide?
  • ...44 more annotations...
  • Using the Web as a Production Platform The answer, I think, is right in front of you. The bridge is the Web, a technology and platform that is fundamentally based on XML, and which many publishers are by now comfortably familiar with. Perhaps not entirely comfortably, but at least most publishers are already working with the Web; they already either know or have on staff people who understand it and can work with it. The foundation of our argument is this: rather than looking at jumping to XML in its full, industrial complexity, which seems to be what the O'Reilly-backed StartWithXML initiative[6] is suggesting, publishers instead leverage existing tools and technologies—starting with the Web—as a means of getting XML workflows in place. This means making small investments and working with known tools rather than spending tens of thousands of dollars on XML software and rarefied consultants. It means re-thinking how the existing pieces of the production toolchain fit together; re-thinking the existing roles of software components already in use. It means, fundamentally, taking the Web seriously as a content platform, rather than thinking of it as something you need to get content out to, somehow. If nothing else, the Web represents an opportunity to think about editorial and production from outside the shrink-wrapped Desktop Publishing paradigm.
  • Is the Web made of Real XML? At this point some predictable objections can be heard: wait a moment, the Web isn’t really made out of XML; the HTML that makes up most of the Web is at best the bastard child of SGML, and it is far too flaky/unstructured/underpowered to be taken seriously. We counter by arguing that although HTML on the Web exists in a staggering array of different incarnations, and that the majority of it is indeed an unstructured mess, this does not undermine the general principle that basic, ubiquitous Web technologies can make a solid platform for content management, editorial process, and production workflow.
  • With the advent of a published XML standard in the late 1990s came the W3C’s adoption of XHTML: the realization of the Web’s native content markup as a proper XML document type. Today, its acceptance is almost ubiquitous, even while the majority of actual content out there may not be strictly conforming. The more important point is that most contemporary Web software, from browsers to authoring tools to content management systems (from blogs to enterprise systems), are capable of working with clean, valid XHTML. Or, to put the argument the other way around, clean, valid XHTML content plays absolutely seamlessly with everything else on the Web.[7]
  • The objection which follows, then, will be that even if we grant that XHTML is a real XML document type, that it is underpowered for “serious” content because it is almost entirely presentation (formatting) oriented; it lacks any semantic depth. In XHTML, a paragraph is a paragraph is a paragraph, as opposed to a section or an epigraph or a summary.
  • n contrast, more “serious” XML document types like DocBook[8] or DITA-derived schemas[9] are capable of making semantic distinctions about content chunks at a fine level of granularity and with a high degree of specificity.
  • So there is an argument for recalling the 80:20 rule here. If XHTML can provide 80% of the value with just 20% of the investment, then what exactly is the business case for spending the other 80% to achieve that last 20% of value? We suspect the ratio is actually quite a bit steeper than 80:20 for most publishers.
  • Furthermore, just to get technical for a moment, XHTML is extensible in a fairly straightforward way, through the common “class” attribute on each element. Web developers have long leveraged this kind of extensibility in the elaboration of “microformats” for semantic-web applications.[10] There is no reason why publishers shouldn’t think to use XHTML’s simple extensibility in a similar way for their own ends.
  • XHTML, on the other hand, is supported by a vast array of quotidian software, starting with the ubiquitous Web browser. For this very reason, XHTML is in fact employed as a component part of several more specialized document types (ONIX and ePub among them).
  • Why re-invent a general-purpose prose representation when XHTML already does the job?
  • It is worth pausing for a moment to consider the role of XHTML in the ePub standard for ebook content. An ePub file is, anatomically, a simply disguised zip archive. Inside the zip archive are a few standard component parts: there are specialized files that declare metadata about the book, and about the format of the book. And then there is the book’s content, represented in XHTML. An ePub book is a Web page in a wrapper.
  • To sum up the general argument: the Web as it already exists presents incredible value to publishers, as a platform for doing XML content management with existing (and often free) tools, and without having to go blindly into the unknown. At this point, we can offer a few design guidelines: prefer existing and/or ubiquitous tools over specialized ones wherever possible; prefer free software over proprietary systems where possible; prefer simple tools controlled and coordinated by human beings over fully automated (and therefore complex) systems; play to our strengths: use Web software for storing and managing content, use layout software for layout, and keep editors and production people in charge of their own domains.
  • Putting the Pieces Together: A Prototype
  • At the SFU Master of Publishing Program, we have been chipping away at this general line of thinking for a few years. Over that time, Web content management systems have been getting more and more sophisticated, all the while getting more streamlined and easier to use. (NB: if you have a blog, you have a Web content management system.) The Web is beginning to be recognized as a writing and editing environment used by millions of people. And the ways in which content is represented, stored, and exchanged online have become increasingly robust and standardized.
  • The missing piece of the puzzle has been print production: how can we move content from its malleable, fluid form on line into the kind of high-quality print production environments we’ve come to expect after two decades of Desktop Publishing?
  • Anyone who has tried to print Web content knows that the existing methods leave much to be desired (hyphenation and justification, for starters). In the absence of decent tools for this, most publishers quite naturally think of producing the print content first, and then think about how to get material onto the Web for various purposes. So we tend to export from Word, or from Adobe, as something of an afterthought.
  • While this sort of works, it isn’t elegant, and it completely ignores the considerable advantages of Web-based content management.
  • Content managed online is stored in one central location, accessible simultaneously to everyone in your firm, available anywhere you have an Internet connection, and usually exists in a much more fluid format than Word files. If only we could manage the editorial flow online, and then go to print formats at the end, instead of the other way around. At SFU, we made several attempts to make this work by way of the supposed “XML import” capabilities of various Desktop Publishing tools, without much success.[12]
  • In the winter of 2009, Adobe solved this part of the problem for us with the introduction of its Creative Suite 4. What CS4 offers is the option of a complete XML representation of an InDesign document: what Adobe calls IDML (InDesign Markup Language).
  • The IDML file format is—like ePub—a simply disguised zip archive that, when unpacked, reveals a cluster of XML files that represent all the different facets of an InDesign document: layout spreads, master pages, defined styles, colours, and of course, the content.
  • IDML is a well thought-out XML standard that achieves two very different goals simultaneously: it preserves all of the information that InDesign needs to do what it does; and it is broken up in a way that makes it possible for mere mortals (or at least our Master of Publishing students) to work with it.
  • What this represented to us in concrete terms was the ability to take Web-based content and move it into InDesign in a straightforward way, thus bridging Web and print production environments using existing tools and skillsets, with a little added help from free software.
  • We would take clean XHTML content, transform it to IDML-marked content, and merge that with nicely designed templates in InDesign.
  • The result is an almost push-button publication workflow, which results in a nice, familiar InDesign document that fits straight into the way publishers actually do production.
  • Tracing the steps To begin with, we worked backwards, moving the book content back to clean XHTML.
  • The simplest method for this conversion—and if you want to create Web content, this is an excellent route—was to use Adobe’s “Export to Digital Editions” option, which creates an ePub file.
  • Recall that ePub is just XHTML in a wrapper, so within the ePub file was a relatively clean XHTML document. It was somewhat cleaner (that is, the XHTML tagging was simpler and less cluttered) than InDesign’s other Web-oriented exports, possibly because Digital Editions is a well understood target, compared with somebody’s website.
  • In order to achieve our target of clean XHTML, we needed to do some editing; the XHTML produced by InDesign’s “Digital Editions” export was presentation-oriented. For instance, bulleted list items were tagged as paragraphs, with a class attribute identifying them as list items. Using the search-and-replace function, we converted such structures to proper XHTML list and list-item elements. Our guiding principle was to make the XHTML as straightforward as possible, not dependent on any particular software to interpret it.
  • We broke the book’s content into individual chapter files; each chapter could then carry its own basic metadata, and the pages conveniently fit our Web content management system (which is actually just a wiki). We assembled a dynamically generated table of contents for the 12 chapters, and created a cover page. Essentially, the book was entirely Web-based at this point.
  • When the book chapters are viewed online, they are formatted via a CSS2 stylesheet that defines a main column for content as well as dedicating screen real estate for navigational elements. We then created a second template to render the content for exporting; this was essentially a bare-bones version of the book with no navigation and minimal styling. Pages (or even the entire book) can be exported (via the “Save As...” function in a Web browser) for use in either print production or ebook conversion. At this point, we required no skills beyond those of any decent Web designer.
  • Integrating with CS4 for Print Adobe’s IDML language defines elements specific to InDesign; there is nothing in the language that looks remotely like XHTML. So a mechanical transformation step is needed to convert the XHTML content into something InDesign can use. This is not as hard as it might seem.
  • Both XHTML and IDML are composed of straightforward, well-documented structures, and so transformation from one to the other is, as they say, “trivial.” We chose to use XSLT (Extensible Stylesheet Language Transforms) to do the work. XSLT is part of the overall XML specification, and thus is very well supported in a wide variety of tools. Our prototype used a scripting engine called xsltproc, a nearly ubiquitous piece of software that we found already installed as part of Mac OS X (contemporary Linux distributions also have this as a standard tool), though any XSLT processor would work.
  • In other words, we don’t need to buy InCopy, because we just replaced it with the Web. Our wiki is now plugged directly into our InDesign layout. It even automatically updates the InDesign document when the content changes. Credit is due at this point to Adobe: this integration is possible because of the open file format in the Creative Suite 4.
  • We wrote an XSLT transformation script[18] that converted the XHTML content from the Web into an InCopy ICML file. The script itself is less than 500 lines long, and was written and debugged over a period of about a week by amateurs (again, the people named at the start of this article). The script runs in a couple of seconds, and the resulting .icml file can then be “placed” directly into an InDesign template. The ICML file references an InDesign stylesheet, so the template file can be set up with a house-styled layout, master pages, and stylesheet definitions for paragraphs and character ranges.
  • Rather than a public-facing website, our system relies on the Web as a content management platform—of course a public face could easily be added.
  • It should be noted that the Book Publishing 1 proof-of-concept was artificially complex; we began with a book laid out in InDesign and ended up with a look-alike book laid out in InDesign. But next time—for instance, when we publish Book Publishing 2—we can begin the process with the content on the Web, and keep it there throughout the editorial process. The book’s content could potentially be written and edited entirely online, as Web content, and then automatically poured into an InDesign template at proof time. “Just in time,” as they say. This represents an entirely new way of thinking of book production. With a Web-first orientation, it makes little sense to think of the book as “in print” or “out of print”—the book is simply available, in the first place online; in the second place in derivative digital formats; and third, but really not much more difficult, in print-ready format, via the usual InDesign CS print production system publishers are already familiar with.
  • Creating Ebook Files Creating electronic versions from XHTML source is vastly simpler than trying to generate these out of the existing print process. The ePub version is extremely easy to generate; so is online marketing copy or excerpts for the Web, since the content begins life Web-native.
  • Since an ePub file is essentially XHTML content in a special wrapper, all that is required is that we properly “wrap” our XHTML content. Ideally, the content in an ePub file is broken into chapters (as ours was) and a table of contents file is generated in order to allow easy navigation within an ebook reader. We used Julian Smart’s free tool eCub[19] to simply and automatically generate the ePub wrapper and the table of contents. The only custom development we did was to create a CSS stylesheet for the ebook so that headings and paragraph indents looked the way we wanted. Starting with XHTML content, creating ePub is almost too easy.
  • today, we are able to put the process together using nothing but standard, relatively ubiquitous Web tools: the Web itself as an editing and content management environment, standard Web scripting tools for the conversion process, and the well-documented IDML file format to integrate the layout tool.
  • Our project demonstrates that Web technologies are indeed good enough to use in an XML-oriented workflow; more specialized and expensive options are not necessarily required. For massive-scale enterprise publishing, this approach may not offer enough flexibility, and the challenge of adding and extracting extra semantic richness may prove more trouble than it's worth.
  • But for smaller firms who are looking at the straightforward benefits of XML-based processes—single source publishing, online content and workflow management, open and accessible archive formats, greater online discoverability—here is a way forward.
  • The result is very simple and easy to use. Our demonstration requires that a production editor run the XSLT transformation script manually, but there is no reason why this couldn’t be built directly into the Web content management system so that exporting the content to print ran the transformation automatically. The resulting file would then be “placed” in InDesign and proofed.
  • The final piece of our puzzle, the ability to integrate print production, was made possible by Adobe's release of InDesign with an open XML file format. Since the Web's XHTML is also XML, is can be easily and confidently transformed to the InDesign format.
  • Such a workflow—beginning with the Web and exporting to print—is surely more in line with the way we will do business in the 21st century, where the Web is the default platform for reaching audiences, developing content, and putting the pieces together. It is time, we suggest, for publishers to re-orient their operations and start with the Web.
  • Using the Web as a Production Platform
  •  
    I was looking for an answer to a problem Marbux had presented, and found this interesting article.  The issue was that of the upcoming conversion of the Note Case Pro (NCP) layout engine to the WebKit layout engine, and what to do about the NCP document format. My initial reaction was to encode the legacy NCP document format in XML, and run an XSLT to a universal pivot format like TEI-XML.  From there, the TEI-XML community would provide all the XSLT transformation routines for conversion to ODF, OOXML, XHTML, ePUB and HTML/CSS. Researching the problems one might encounter with this approach, I found this article.  Fascinating stuff. My take away is that TEI-XML would not be as effective a "universal pivot point" as XHTML.  Or perhaps, if NCP really wants to get aggressive; IDML - InDesign Markup Language. As an after thought, i was thinking that an alternative title to this article might have been, "Working with Web as the Center of Everything".
Gary Edwards

CPU Wars - Intel to Play Fab for an ARM Chipmaker: Understanding What the Altera Deal M... - 0 views

  • Intel wants x86 to conquer all computing spaces -- including mobile -- and is trying to leverage its process lead to make that happen.  However, it's been slowed by a lack of inclusion of 4G cellular modems on-die and difficulties adapting to the mobile market's low component prices.  ARM, meanwhile, wants a piece of the PC and server markets, but has received a lukewarm response from consumers due to software compatibility concerns. The disappointing sales of (x86) tablet products using Microsoft Corp.'s (MSFT) Windows 8 and the flop of Windows RT (ARM) product in general somewhat unexpectedly had the net result of being a driver to maintain the status quo, allowing neither company to gain much ground.  For Intel, its partnership with Microsoft (the historic "Wintel" combo) has damaged its mobile efforts, as Windows 8 flopped in the tablet market.  Likewise ARM's efforts to score PC market share were stifled by the flop of Windows RT, which led to OEMs killing off ARM-based laptops and convertibles.
  • Both companies seem to have learned their lesson and are migrating away from Windows towards other platforms -- in ARM's case Chromebooks, and in Intel's case Android tablets/smartphones. But suffice it to say, ARM Holdings and Intel are still very much bitter enemies from a sales perspective.
  • III. Profit vs. Risk -- Understanding the Modern CPU Food Chain
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  • Whether it's tablets or PCs, the processor is still one of the most expensive components onboard.  Aside from the discrete GPU -- if a device has one -- the CPU has the greatest earning potential for a large company like Intel because the CPU is the most complex component. Other components like the power supply or memory tend to either be lower margin or have more competitors.  The display, memory, and storage components are all sensitive to process, but see profit split between different parties (e.g. the company who makes the DRAM chips and the company who sells the stick of DRAM) and are primarily dependent on process technology. CPUs and GPUs remain the toughest product to make, as it's not enough to simply have the best process, you must also have the best architecture and the best optimization of that architecture for the space you're competing in. There's essentially five points of potential profit on the processor food chain: [CPU] Fabrication [CPU] Architecture design [CPU] Optimization OEM OS platform Of these, the fabrication/OS point is the most profitable (but is dependent on the number of OEM adopters).  The second most profitable niche is optimization (which again is dependent on OEM adopter market share), followed by OEM markups.  In terms of expense, fabrication and operating system designs requires the greatest capital investment and the highest risk.
  • In terms of difficulty/risk, the fabrication and operating system are the most difficult/risky points.  Hence in terms of combined risk, cost, and profitability the ranking of which points are "best" is arguably: Optimization Architecture design OS platfrom OEM Fabrication ...with the fabrication point being last largely because it's so high risk. In other words, the last thing Intel wants is to settle into a niche of playing fabs for everybody else's product, as that's an unsound approach.  If you can't keep up in terms of chip design, you typically spin off your fabs and opt for a different architecture direction -- just look at Advanced Micro Devices, Inc.'s (AMD) spinoff of GlobalFoundries and upcoming ARM product to see that.
  • IV. Top Firms' Role on That Food Chain
  • Apple has seen unbelievable profits due to this fundamental premise.  It controls the two most desirable points on the food chain -- OS and optimization -- while sharing some profit with its architecture designer (ARM Holdings) and a bit with the fabricator (Samsung Electronics Comp., Ltd. (KSC:005930)).  By choosing to play operating system maker, too, it adds to its profits, but also its risk.  Note that nearly every other first-party exclusive smartphone platform has failed or is about to fail (i.e. BlackBerry, Ltd. (TSE:BB) and the now-dead Palm).
  • Intel controls points 1, 2, and 5, currently, on the food chain.  Compared to Apple, Intel's points of control offer less risk, but also slightly less profitability. Its architecture control may be at risk, but even so, it's currently the top in its most risky/expensive point of control (fabrication), where as Apple's most risky/expensive point of control (OS development) is much less of a clear leader (as Android has surpassed Apple in market share).  Hence Apple might be a better short-term investment, but Intel certainly appears a better long-term investment.
  • Samsung is another top company in terms of market dominance and profit.  It occupies points 1, 3, 4, and 5 -- sometimes.  Sometimes Samsung's devices use third-party optimization firms like Qualcomm Inc. (QCOM) and NVIDIA Corp. (NVDA), which hurts profitability by removing one of the most profitable roles.  But Samsung makes up for this by being one of the largest and most successful third party manufacturers.
  • Microsoft enjoys a lot of profit due to its OS dominance, as does Google Inc. (GOOG); but both companies are limited in controlling only one point which they monetize in different ways (Microsoft by direct sales; Google by giving away OS product for free in return for web services market share and by proxy search advertising revenue).
  • Qualcomm and NVIDIA are also quite profitable operating solely as optimizers, as is ARM Holdings who serves as architecture maker to Qualcomm, NVIDIA, Apple, and Samsung.
  • V. Four Scenarios in the x86 vs. ARM Competition
  • Scenario one is that x86 proves dominant in the mobile space, assuming a comparable process.
  • A second scenario is that x86 and ARM are roughly tied, assuming a comparable process.
  • A third scenario is that x86 is inferior to ARM at a comparable process, but comparable or superior to ARM when the x86 chip is built using a superior process.  From the benchmarks I've seen to date, I personally believe this is most likely.
  • A fourth scenario is that x86 is so drastically inferior to ARM architecturally that a process lead by Intel can't make up for it.
  • This is perhaps the most interesting scenario, in the sense of thinking of how Intel would react, if not overly likely.  If Intel were faced with this scenario, I believe Intel would simply bite the bullet and start making ARM chips, leveraging its process lead to become the dominant ARM chipmaker.  To make up for the revenue it lost, paying licensing fees to ARM Holdings, it could focus its efforts in the OS space (it's Tizen Linux OS project with Samsung hints at that).  Or it could look to make up for lost revenue by expanding its production of other basic process-sensitive components (e.g. DRAM).  I think this would be Intel's best and most likely option in this scenario.
  • VI. Why Intel is Unlikely to Play Fab For ARM Chipmakers (Even if ARM is Better)
  • From Intel's point of view, there is an entrenched, but declining market for x86 chips because of Windows, and Intel will continue to support Atom chips (which will be required to run Windows 8 tablets), but growth on desktops will come from 64 bit desktop/server class non-Windows ARM devices - Chromebooks, Android laptops, possibly Apple's desktop products as well given they are going 64 bit ARM for their future iPhones. Even Windows has been trying to transition (unsuccessfully) to ARM. Again, the Windows server market is tied to x86, but Linux and FreeBSD servers will run on ARM as well, and ARM will take a chunk out of the server market when a decent 64bit ARM server chip is available as a result.
  •  
    Excellent article explaining the CPU war for the future of computing, as Intel and ARM square off.  Intel's x86 architecture dominates the era of client/server computing, with their famed WinTel alliance monopolizing desktop, notebook and server implementations.  But Microsoft was a no show with the merging mobile computing market, and now ARM is in position transition from their mobile dominance to challenge the desktop -notebook - server markets.   WinTel lost their shot at the mobile computing market, and now their legacy platforms are in play.  Good article!!! Well worth the read time  ................
Paul Merrell

NSA Spying Relies on AT&T's 'Extreme Willingness to Help' - ProPublica - 0 views

  • he National Security Agency’s ability to spy on vast quantities of Internet traffic passing through the United States has relied on its extraordinary, decades-long partnership with a single company: the telecom giant AT&T. While it has been long known that American telecommunications companies worked closely with the spy agency, newly disclosed NSA documents show that the relationship with AT&T has been considered unique and especially productive. One document described it as “highly collaborative,” while another lauded the company’s “extreme willingness to help.”
  • AT&T’s cooperation has involved a broad range of classified activities, according to the documents, which date from 2003 to 2013. AT&T has given the NSA access, through several methods covered under different legal rules, to billions of emails as they have flowed across its domestic networks. It provided technical assistance in carrying out a secret court order permitting the wiretapping of all Internet communications at the United Nations headquarters, a customer of AT&T. The NSA’s top-secret budget in 2013 for the AT&T partnership was more than twice that of the next-largest such program, according to the documents. The company installed surveillance equipment in at least 17 of its Internet hubs on American soil, far more than its similarly sized competitor, Verizon. And its engineers were the first to try out new surveillance technologies invented by the eavesdropping agency. One document reminds NSA officials to be polite when visiting AT&T facilities, noting: “This is a partnership, not a contractual relationship.” The documents, provided by the former agency contractor Edward Snowden, were jointly reviewed by The New York Times and ProPublica.
  • It is not clear if the programs still operate in the same way today. Since the Snowden revelations set off a global debate over surveillance two years ago, some Silicon Valley technology companies have expressed anger at what they characterize as NSA intrusions and have rolled out new encryption to thwart them. The telecommunications companies have been quieter, though Verizon unsuccessfully challenged a court order for bulk phone records in 2014. At the same time, the government has been fighting in court to keep the identities of its telecom partners hidden. In a recent case, a group of AT&T customers claimed that the NSA’s tapping of the Internet violated the Fourth Amendment protection against unreasonable searches. This year, a federal judge dismissed key portions of the lawsuit after the Obama administration argued that public discussion of its telecom surveillance efforts would reveal state secrets, damaging national security.
Paul Merrell

New Leak Of Final TPP Text Confirms Attack On Freedom Of Expression, Public Health - 0 views

  • Offering a first glimpse of the secret 12-nation “trade” deal in its final form—and fodder for its growing ranks of opponents—WikiLeaks on Friday published the final negotiated text for the Trans-Pacific Partnership (TPP)’s Intellectual Property Rights chapter, confirming that the pro-corporate pact would harm freedom of expression by bolstering monopolies while and injure public health by blocking patient access to lifesaving medicines. The document is dated October 5, the same day it was announced in Atlanta, Georgia that the member states to the treaty had reached an accord after more than five years of negotiations. Aside from the WikiLeaks publication, the vast majority of the mammoth deal’s contents are still being withheld from the public—which a WikiLeaks press statement suggests is a strategic move by world leaders to forestall public criticism until after the Canadian election on October 19. Initial analyses suggest that many of the chapter’s more troubling provisions, such as broader patent and data protections that pharmaceutical companies use to delay generic competition, have stayed in place since draft versions were leaked in 2014 and 2015. Moreover, it codifies a crackdown on freedom of speech with rules allowing widespread internet censorship.
Paul Merrell

Belgium sues Facebook over illegal Privacy Violations of Users and Non-Users | nsnbc in... - 0 views

  • The Belgian government will be suing Facebook. The Commission for the Protection of Privacy states that Facebook violates Belgian and EU law by tracking systems that target both Facebook users as well as non-Facebook users. Facebook is known for cooperating with the U.S.’ National Security Agency. 
  • The Belgian privacy watchdog’s case against the internet giant Facebook will be heard at a court in Brussels on Thursday. The Commission has repeatedly requested that Facebook should comply with Belgian and EU law. Facebook failed to comply, and the Commission has no power to enforce the law; hence the decision to sue Facebook to attain a a court ruling. The President of the Commission for the Protection of Privacy, Willem Debeuckelaere, told the press that: “Facebook treats its users’ private lives without respect and that needs tackling. It’s not because we want to start a lawsuit over this, but we cannot continue to negotiate through other means. .. We want a judge to impose our recommendations. These recommendations are chiefly aimed at protecting internet users who are not Facebook members.”
  • The Belgian privacy watchdog alleges that Facebook tracks the web browsing of all visitors, including those who have specifically turned the tracking function off; This gathering of private information allegedly also includes those who do not have a Facebook account. Moreover, the Commission claims that Facebook has the capability to surveil computers without consent, even when users are logged out; and Facebook can monitor every PC of users that use websites with Facebook plugins. The capability to monitor both Facebook users and non-Facebook users allegedly functions via Cookies that store information about user’s internet activities, including preferential settings of websites and which websites internet users have visited. The Commission claims that Facebook installs these Cookies on all computers that visit websites that for example have a Facebook plugin to share internet content. That includes the computers of persons who do not make use of Facebook’s “share” or “like” button.
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  • In other words, Facebook has the capacity to monitor your browser settings as well as which websites you have visited if you have read this article or any other article on any website that contains a Facebook “share” button, whether you “like” it or not. The Commissions lawsuit against Facebook is or particular importance due to the fact that the corporation is known for its cooperation with the United States’ National Security Agency (NSA). While the lawsuit is of particular interest for Belgian and EU citizens, it also sheds light on Facebook’s monitoring of U.S. citizens.
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