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U.S. Cloud Vendors Hurt By NSA
Edward Snowden’s public unveiling of the National Security Agency’s Prism surveillance program could cause U.S. providers of cloud-based services to lose 10% to 20% of the foreign market — a slice of business valued at up to $35 billion.
A new report from the Information Technology & Innovation Foundation (ITIF) concludes that European cloud computing companies, in particular, might successfully exploit users’ fears about the secret data collection program to challenge U.S. leadership in the hosted services business.
Daniel Castro, author of the report, acknowledges that the conclusions are based, so far, on thin data, but nonetheless argues that the risks to U.S. cloud vendors are real.
Indeed, a month prior, the Cloud Security Alliance reported that in a survey of 207 officials of non-U.S. companies, 10% of the respondents said that they had canceled contracts with U.S. service providers after Snowden’s leak of NSA Prism documents earlier this year.
“If U.S. companies lose market share in the short term, it will have long-term implications on their competitive advantage in this new industry,” said Castro in the ITIF report. “Rival countries have noted this opportunity and will try to exploit it.”
To counter such efforts, the U.S. must challenge overstated claims about the program by foreign companies and governments, said Jason Weinstein, a partner in the Washington office of law firm Steptoe & Johnson and a former federal prosecutor and deputy assistant attorney general specializing in computer crime.
“There are a lot of reasons to be concerned about just how significant those consequences will be,” Weinstein said. “The effort by European governments and European cloud providers to cloud the truth about data protection in the U.S. was going on well before anyone knew who Edward Snowden was. It just picked up new momentum once the Prism disclosures came out.”
Weinstein contends that European countries have fewer data protection rules than the U.S.
For example, he said that in the U.K. and France, a wiretap to get content can be issued by a government official without court authority, but that can’t happen in the U.S.
“U.S. providers have done nothing other than comply with their legal obligations,” he said. But because of Snowden’s leaks, “they are facing potentially significant economic consequences.”
Gartner analyst Ed Anderson said his firm has yet to see any revenue impact on cloud providers since the Prism disclosures, but added, “I don’t think Prism does U.S. providers any favors, that’s for sure.”
Nonetheless, Anderson added, “I think the reality is [the controversy] is likely to die down over time, and we expect adoption to probably continue on the path that it has been on.”
One reason why U.S. providers may not suffer is because “the alternatives aren’t great if you are a European company looking for a cloud service,” he said.
Court Sides With Aereo
April 10, 2013 by admin
Filed under Consumer Electronics
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Streaming television service Aereo does not infringe the copyrights of over-the-air TV stations, and a request from several stations to shutter the New York-based service isn’t warranted, an appeals court has ruled.
The U.S. District Court for the Southern District of New York was right to deny a request for a preliminary injunction from Fox, ABC, WNET and other TV stations, the U.S. Court of Appeals for the Second Circuit ruled Monday.
The TV stations had argued Aereo, a service that allows subscribers to record and play over-the-air TV programs on Internet-connected devices, violated their so-called public performance right, their exclusive right in U.S. copyright law to “to perform the copyrighted work publicly.”
But Judge Christopher Droney, writing for the appeals court majority, noted that Aereo makes use of technology already found by courts to be legal. The service combines Aereo-designed mini TV antennas, DVRs, and a Slingbox-like streaming service, he noted.
Aereo users, by making personal copies of TV programs for their own use, were not creating public performances, Droney added.
The TV stations “have not demonstrated that they are likely to prevail on the merits on this claim in their copyright infringement action,” Droney wrote in rejecting the request for an injunction against the service. “Nor have they demonstrated serious questions as to the merits and a balance of hardships that tips decidedly in their favor.”
Aereo praised the decision. The decision “again validates that Aereo’s technology falls squarely within the law, and that’s a great thing for consumers who want more choice and flexibility in how, when and where they can watch television,” Chet Kanojia, Aereo’s CEO and founder, said in a statement.
Lawyers for the TV stations weren’t immediately available for comment.
Digital rights group Public Knowledge cheered the ruling, saying it is a “victory for consumer choice and video innovation.”
Ericcson Transfers Patents
January 21, 2013 by admin
Filed under Around The Net
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Ericsson has agreed to transfer 1,922 patents and 263 patent applications to Unwired Planet in exchange for a share in ongoing revenue that they will generate.
The transfer includes 753 U.S. patents related to 2G, 3G and LTE technologies, Unwired Planet said Thursday. Four months ago, the company owned just 200 U.S. and foreign patents, and around 75 pending patent applications.
“Our patent portfolio now extends to all layers of the telecom handset and infrastructure stack,” said Unwired Planet’s CEO Mike Mulica during a conference call. The patents cover application stores, location-based services, mobile search and mobile advertising as well as network protocols, antennas and many more topics, Mulica said.
The portfolio will continue to grow, as Ericsson has also committed to transfer a further 100 patents each year from 2014 through 2018.
Mulica said the company wants everyone who uses the patented technologies to pay a license fee. “We will use litigation when necessary,” he said.
IBM Sued Over Disaster
IBM has been hit with a multimillion-dollar lawsuit by chemical products manufacturer Avantor Performance Materials, which alleges that IBM lied about the suitability of an SAP-based software package it sells in order to win Avantor’s business.
In 2010, Avantor decided to upgrade its ERP (enterprise resource planning) platform to SAP software, according to the lawsuit, filed Thursday in U.S. District Court for the District of New Jersey.
“Seizing upon Avantor’s decision — and fully aware that, given the competitive pressures of Avantor’s industry, and the specialized demands of its customers, Avantor could not tolerate any disruptions in customer service — IBM represented that IBM’s ‘Express Life Sciences Solution’ … was uniquely suited to Avantor’s business,” the lawsuit states. “The Express Solution is a proprietary IBM pre-packaged software solution that runs on an SAP platform.”
But Avantor discovered a different truth after signing on with IBM, finding that Express Life was “woefully unsuited” to its business and the implementation brought its operations to “a near standstill,” according to the suit.
IBM also violated its contract by staffing the project with “incompetent and reckless consultants” who made “numerous design, configuration and programming errors,” it states.
In addition, IBM “intentionally or recklessly failed” to tell Avantor about risks to the project and hurried towards a go-live date, the suit alleges.
“To conceal the System’s defects and functional gaps, IBM ignored the results of its own pre-go-live tests, conducted inadequate and truncated testing and instead recommended that Avantor proceed with the go-live as scheduled — even though Avantor had repeatedly emphasized to IBM that meeting a projected go-live date was far less important than having a fully functional System that would not disrupt Avantor’s ability to service its customers,” the suit states.
The resulting go-live, which occurred in May, “was a disaster,” with the system failing to process orders properly, losing some orders altogether, failing to generate need paperwork for U.S. Customs officials and directing “that dangerous chemicals be stored in inappropriate locations,” the suit states.
Avantor has suffered tens of millions of dollars in monetary damages, as well as taken a hit to its reputation among partners and customers, the suit states.
Oracle Wants More Money From SAP
Oracle is appealing the damages awarded from SAP that it was granted and is pushing for more.
The news has disappointed SAP, according to a German newspaper, and the firm is worried that the appeal will draw out the five year long legal battle even longer.
“We are disappointed that the lawsuit Oracle pulls further out,” said a SAP spokesman to the German newspaper Mannheimer Morgen.
“We had agreed on a sensible arrangement, because we believe that this case has gone on long enough. We remain committed to bring this dispute to an end.”
Neither firm has commented yet, but the appeal follows SAP’s admission of liability in the Tomorrownow affair.
SAP pleaded guilty last year and acknowledged that its Tomorrownow subsidiary had done wrong. Tomorrownow was accused of downloading information belonging to Oracle, including software and customer information related to Peoplesoft users.
Oracle was initially awarded $1.3bn in damages but this was knocked down to $306m by a judge who told it that it had two options, accept that sum or take SAP back to court.
ZTE Pushes Past RIM
ZTE became the world’s fifth largest smartphone vendor in the second quarter, it announced today, overtaking Research in Motion (RIM).
That’s according to research firm IDC’s Worldwide Quarterly Mobile Phone Tracker, which shows that thanks to sales of eight million smartphones in the second quarter ZTE has slipped onto the top five list. RIM, which was fourth on the list in May, is now nowhere to be seen, as sales of the firm’s Blackberry handsets continue to falter.
With eight millions smartphones shifted in the second quarter, ZTE’s shipments increased 300 per cent compared to the second quarter last year, helping it snatch a 5.2 per cent share of the worldwide market and making it the fastest growing smartphone maker after Apple. This puts the firm just 0.5 per cent behind Android phone maker HTC and just 1.4 per cent behind Nokia.
Unsurprisingly, rivals Apple and Samsung fill the top two spots, holding on to 16.9 per cent and 32.6 per cent of the smartphone market, respectively.
“ZTE’s great smartphone performance in 2012 in international markets has been a major contributor to our consistent expansion, and is a demonstration of the depth and strength of our R & D,” said ZTE EVP and head of its Terminal Division He Shiyou.
“We have moved into the middle to high-end smartphone market with the recent launch of the ZTE Grand X in countries including China, Turkey and the UK, and we will continue to build our handset capabilities in the middle and high range sectors, while still delivering great lower-end smartphones like the ZTE Kis.”
Woman Sues LinkedIn
June 25, 2012 by admin
Filed under Around The Net
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An Illinois woman has filed a $5 million lawsuit against LinkedIn Corp, claiming that the social network violated promises to consumers by not having better security in place when more than 6 million customer passwords were stolen.
The lawsuit, which was introduced in federal court in San Jose, California, on June 15 and seeks class-action status, was filed less than two weeks after the stolen passwords turned up on websites frequented by computer hackers.
The attack on Mountain View, California-based LinkedIn, an employment and professional networking site with more than 160 million members, was the latest massive corporate data breach to have attracted the attention of class-action lawyers.
A federal judicial panel last week consolidated nine proposed class-action lawsuits in Nevada federal court against online shoe retailer Zappos, a unit of Amazon.com, over its January disclosure that hackers had siphoned information affecting 24 million customers.
The LinkedIn lawsuit was filed by Katie Szpyrka, a user of the website from Illinois. In court papers, her Chicago-based law firm, Edelson McGuire, said LinkedIn had “deceived customers” by having a security policy “in clear contradiction of accepted industry standards for database security.”
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Jury Finds Google Liable
May 14, 2012 by admin
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A jury has found Google liable for copyright infringement in its use of Java in Android, but so far has not decided whether that infringement was protected by rules governing “fair use.”
The verdict, delivered Monday after a week of deliberations by the jury, is a partial victory for Oracle in its lawsuit against Google. But Oracle will have to wait longer — possibly for a retrial — to see whether Google will escape liability by claiming fair use.
Google’s attorney, Robert Van Nest, immediately told the judge that Google would file for a mistrial. Google’s argument will be that the same jury must decide both the copyright infringement and fair use issues.
The jury also decided that Sun’s public statements about Java might have suggested to Google that it did not need a license for Java.
But in another setback for Google, it decided there was insufficient evidence to show that Google relied on that information.
Privacy Advocates & Lawmakers Push For Google Probe
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Privacy groups and lawmakers are pushing for a new and more expansive investigation into Google and its privacy practices after the U.S. Federal Communications Commission announced that it found no evidence that the company violated eavesdropping laws.
Late last week, the FCC reported that there was no legal precedent to find fault with Google collecting unprotected home Wi-Fi data, such as personal email, passwords and search histories, with its roaming Street View cars between 2007 and 2010.
However, the FCC did fine Google $25,000 for obstructing its investigation.
A Google spokesperson took issue with the fine.
“We disagree with the FCC’s characterization of our cooperation in their investigation and will be filing a response,” said the spokesperson in an email to Computerworld. “It was a mistake for us to include code in our software that collected payload data, but we believe we did nothing illegal. We have worked with the relevant authorities to answer their questions and concerns.”
The Electronic Privacy Information Center (EPIC), a national privacy watchdog, disagreed with the FCC findings.
In a letter sent to U.S. Attorney General Eric Holder today, EPIC asked that the Department of Justice investigate Google’s surreptitious collecting of Wi-Fi data from residential networks.
“Given the inadequacy of the FCC’s investigation and the law enforcement responsibilities of the attorney general, EPIC urges the Department of Justice to investigate Google’s collection of Wi-Fi data from residential Wi-Fi networks,” wrote Mark Rotenberg, executive director of the advocacy group.
“By the [FCC’s] own admission, the investigation conducted was inadequate and did not address the applicability of federal wiretap law to Google’s interception of emails, usernames, passwords, browsing histories and other personal information,” Rotenberg added.
Microsoft Seizes Botnet Servers
Microsoft Corp scored a win in efforts to fight online banking fraud, saying it had seized several servers used to steal login names and passwords, disrupting some of the world’s most sophisticated cybercrime rings.
The software giant said on Monday that its cybercrime investigation group also took legal and technical actions to fight notorious criminals who infect computers with a prevalent malicious software known as Zeus.
By recruiting computers into networks called botnets, Zeus logs the online activity of infected machines, providing criminals with credentials to access financial accounts.
“We’ve disrupted a critical source of money-making for digital fraudsters and cyber thieves, while gaining important information to help identify those responsible and better protect victims,” said Richard Boscovich, senior attorney for the Microsoft Digital Crimes Unit, which handled the investigation in collaboration with the financial industry.
Microsoft’s Digital Crimes Unit is worldwide team of investigators, lawyers, analysts and other specialists who fight cybercrime. A year ago they helped U.S. authorities take down a botnet known as Rustock that had been one of the biggest producers of spam e-mail. Some security experts estimated that in its heyday Rustock was responsible for half the spam in junk email bins.