They really really don't like these
guys... The hype is going to make it hard to use this as a case
study... How many babies are being tossed out with the bathwater?
Feds
Seize $50 Million in Megaupload Assets, Lodge New Charges
The authorities said Friday they have
seized $50 million in Megaupload-related assets and added additional
charges in one of the United States’ largest criminal copyright
infringement prosecutions.
… The government said the site,
which generated millions in user fees and advertising, facilitated
copyright infringement of movies “often before their theatrical
release, music, television programs, electronic books, and business
and entertainment software on a massive scale.” The government
said Megaupload’s “estimated harm” to copyright
holders was “well
in excess of $500 million.”
Megaupload was on the recording and
movie industries’ most-hated lists, [Ah! That
explains it! Bob] often being accused of facilitating
wanton infringement of their members’ copyrights. The indictment
claims Megaupload induced users to upload copyrighted works for
others to download, and that it often failed to comply with removal
notices from rights holders under the Digital Millennium Copyright
Act.
New
charges (.pdf) levied Friday allege that Megaupload falsely
represented to rights holders that it had removed infringing works
from its servers.
… The government, meanwhile, also
said Friday that, despite claims of having 180 million registered
users, the site had 66.6 million. The authorities said that 5.86
million of these registered users uploaded files, “demonstrating
that more than 90 percent of their registered users only used the
defendant’s system to download.”
Still, anyone who used Megaupload as a
way to share and store legitimate files is now likely never
going to be able to get them back.
(Related)
"The federal government has
been paying lip service to the idea that it wants to encourage new
businesses and startups in the U.S. And this is truly important to
the economy, as studies have shown that almost all of the net job
growth in this country is coming from internet startups. ... With
the JotForm
situation
unfolding, where the U.S. government shut down an entire website with
no notice or explanation, people are beginning
to recognize that the U.S is not safe for internet startups.
Lots of folks have been passing around [a] rather
reasonable list of activities for U.S.-based websites."
Was there any evidence of a crime
before the warrants were issued? My little non-lawyer mind thought
that you had to assert or show the judge some evidence in order to
get the warrant. Is the DA saying he can't prove fraud without the
laptop?
Feds
Urge Court to Reject Laptop Decryption Appeal
The government is urging a federal
appeals court not to entertain an appeal from a bank-fraud defendant
who has been ordered to decrypt her laptop so its contents can be
used in her criminal case.
Colorado federal authorities seized the
encrypted Toshiba laptop from defendant Ramona Fricosu in 2010 with
valid court warrants while investigating alleged mortgage fraud, and
demanded she decrypt it.
Ruling that the woman’s
Fifth Amendment rights against compelled self-incrimination would not
be breached, [If in fact the decryption provides evidence of another
crime, does this mean she has immunity? Bob] U.S.
District Judge Robert Blackburn ordered the woman in January to
decrypt the laptop by the end of February. The
judge refused to stay his decision to allow Fricosu time to appeal.
The Colorado woman’s attorney
appealed anyway, and the government on Thursday asked the 10th U.S.
Circuit Court of Appeals to reject the petition that asserts the
woman’s constitutional rights would be breached by being forced to
hand over evidence against herself.
The government argued the same reasons
that Judge Blackburn gave when he denied staying his decision: The
issue, however novel, was not ripe for appeal.
Generally, appellate courts frown on
taking cases until after there’s been a verdict. So the woman, the
government said, should unlock the drive and appeal if she gets
convicted of the financial fraud charges, which theoretically carry
decades in prison.
Fricosu, prosecutor Patricia Davies
wrote, “can appeal her conviction — just as defendants do when
compelled to produce documents pursuant to subpoena or when denied
suppression of evidence or statements pre-trial.”
Davies also said Fricosu’s reasons
for appealing are legally baseless.
“Fricosu argues that the order is
appealable because of its novelty, and the fact that it is of public
interest and importance,” Davies wrote
(.pdf) “But courts have properly rejected the claim that otherwise
non-final orders should be reviewed on such grounds.”
A “real world” example for my
Statistics students.
"For decades, Target has
collected vast amounts of data on every person who regularly walks
into one of its stores. Now the NY Times Magazine reports on how
companies like Target identify those unique moments in consumers'
lives when their shopping habits become particularly flexible and the
right advertisement or coupon can cause them to begin spending in new
ways. Among life events, none are more important than the arrival of
a baby, and new parents are a retailer's holy grail. In 2002,
marketers at Target asked statisticians to answer an odd question:
'If
we wanted to figure out if a customer is pregnant, even if she didn't
want us to know, can you do that?' Specifically, the marketers
said they wanted to send specially designed ads to women in their
second trimester, which is when most expectant mothers begin buying
all sorts of new things, like prenatal vitamins and maternity
clothing. 'We knew that if we could identify
them in their second trimester, there's a good chance we could
capture them for years,' says statistician Andrew
Pole. 'As soon as we get them buying diapers from us, they're going
to start buying everything else too.' As Pole's computers crawled
through the data, he was able to identify about 25 products that,
when analyzed together, allowed him to assign
each shopper a 'pregnancy prediction' score and he soon had a
list of tens of thousands of women who were most likely pregnant.
About a year after Pole created his pregnancy-prediction model, a man
walked into a Target outside Minneapolis and demanded to see the
manager. He was clutching coupons that had been sent to his
daughter, and he was angry. 'My daughter got this in the mail!' he
said. 'She's still in high school, and you're sending her coupons
for baby clothes and cribs? Are you trying to encourage her to get
pregnant?' The manager apologized and then called a few days later
to apologize again but the father was somewhat abashed. 'It turns
out there's been some activities in my house I haven't been
completely aware of. She's due in August. I owe you an apology.'"
"In order to protest the
government's new Internet snooping legislation, some Canadians have
started
a somewhat unorthodox protest. Vic Toews, the minister
responsible for tabling the legislation, has had his twitter account
bombarded with tweets regarding the boring, banal aspects of regular
Canadians' lives. The idea is that since Toews wants to know
everything about your personal life, we should oblige him and
#TellVicEverything."
Ethical Hackers Be careful what you
say. But, don't get too excited, until we figure out what is going
on...
Goldman
Sachs Code-Theft Conviction Reversed
A federal appeals court on Friday
reversed the conviction of a former Goldman Sachs programmer
sentenced to eight years for stealing the bank’s high-speed trading
software.
Sergey Aleynikov, 41, was
convicted in 2010 of theft of trade secrets under the Economic
Espionage Act.
… The 2nd U.S. Circuit Court of
Appeals heard his appeal on Thursday, and hours later and without
explanation, reversed the 2010 conviction and ordered him acquitted,
which usually forbids a retrial. On Friday, however, the court
issued an amended order. It reversed the conviction, and ordered him
free on $750,000 bond but removed the acquittal language. The
appeals court said it would issue an opinion explaining the order in
“due
course.” (.pdf)
The New York Times summed
up the court’s concerns during Thursday’s oral arguments.
The paper noted that a critical issue was whether what he did was
actually a crime under the Economic Espionage Act, which requires the
theft to be from a “product designed for interstate
commerce.” [Perhaps they told the court that the software was not
intended to be used anywhere but on their NY trading desk? Bob]
Aleynikov’s lawyers took the position that the software wasn’t
used in interstate commerce, while the feds argued that it clearly
was.
Is this removing laws intended for a
monopoly industry?
"There is a bill pending in the
Kentucky State Senate that would eliminate almost all Public Service
Commission oversight over local phone companies. Written
by AT&T lobbyists, SB135 is being pushed by the
phone companies as a 'modernization' of rules. It would keep the PSC
from investigating phone service on its own and eliminate
rules concerning price discrimination, price increases, required
published rates, and performance objectives. It also will prevent
any state agency from imposing net neutrality, and will enable
phone companies to use the fact that there are cell phones to refuse
to run a land line. The text of the bill is
available online."
I still think this is a bad idea.
“When information is outlawed only outlaws will have information”
"A spokesman for the World
Health Organization announced that an
agreement had been reached, after
a debate, to keep details secret of the controversial work about
the highly pathogenic H5N1 avian flu virus until
deeper risk analyses have been carried out. The scientists who
made the study, led by Ron Fouchier, still want to release the full
paper at some future date for public viewing, but for the time being,
the NSABB got
what it wanted."
The moratorium will be extended
"probably
for several months."
Now this is a great idea for my
Computer Security students! (This was part of a Doctoral student's
research)
"Students at the University of
Twente have stolen
thirty laptops from various members of the university's staff.
They were not prosecuted for this, so they could just get on with
their studies. Indeed, these students even received ECTS credits for
these thefts. UT researcher Trajce Dimkov asked the students to
steal the machines as part of a scientific experiment. Stealing
these laptops turned out to be a pretty simple matter."