PayPal Extend Bug Bounty

PayPal is expanding its bug bounty program to individuals aged 14 and older, a move intended to reward younger researchers who are technically ineligible to hold full-fledged PayPal accounts.

PayPal’s program, which is a year old this month, only applied to those 18 years and older. Under the old rule, participants in the program were required to hold valid accounts, which excluded minors, said Gus Anagnos, PayPal’s director of information security.

In May, 17-year-old Robert Kugler, a student in Germany, said he’d been denied a reward for finding a vulnerability. PayPal said the bug had already been found by two other researchers, which would have made Kugler ineligible for bounty.

In an apparent miscommunication, Kugler said he was initially told he was too young rather than the bug had already been discovered. Nonetheless, PayPal said it would look to bring younger people into its program, which pays upwards of $10,000 for remote code execution bugs on its websites.

Those who are under 18 years old can receive a bug bounty payment through a PayPal student account, an arrangement where a minor can receive payments via their parent’s account, Anagnos said.

Anagnos said other terms and conditions have been modified to make its program more transparent, such as clarifying which PayPal subsidiaries and partner sites qualify for the program.

PayPal pays much less for vulnerabilities on partner websites, which have a URL form of “www.paypal-__.com.” A remote execution bug found on that kind of site garners only $1,500 rather than up to $10,000 on the company’s main sites.

Like other bug bounty programs run by companies such as Microsoft and Google, PayPal will publicly recognize researchers on its website with a “Wall of Fame” for the top 10 researchers in a quarter. Another “honorable mention” page lists anyone who submitted a valid bug for the quarter.

Eusebiu Blindu, a testing consultant from Romania, was one of the researchers listed on the Wall of Fame for the first quarter of this year.

“I think Paypal is the best bug bounty program, and I am glad I participated in it from the first days of its launching,” he wrote on his blog.

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The DoD May Share Airwaves

The U.S. Defense Department is proposing to share some of its radio airwaves with private industry, a nod to growing pressure from the wireless industry and the Obama administration that federal agencies ease their control of valuable spectrum.

In a letter released by the Federal Communications Commission on Tuesday, the Department of Defense offers to share the airwaves it now dominates in the slice of frequencies from 1755 megahertz (MHz) to 1780 MHz with spectrum-hungry wireless and Internet companies.

The military would rearrange its systems within that slice of spectrum as well as the 2025-2110 MHz band and compress programs into the 1780-1850 MHz band that it would retain.

The Defense Department uses the airwaves for programs such as pilot training and drone systems and has faced criticism from some in the industry and in Congress for resisting efforts to open those airwaves for commercial use to satisfy growing demands posed by data-hungry gadgets and services.

The Pentagon had pointed to its own need for airwaves as its use of drones and other reliance on wireless technology grows. It also had estimated the process of moving its programs to new frequencies would cost more than $12 billion.

Under the new plan, the Defense Department drops the cost estimate to $3.5 billion by compromising on sharing slices of airwaves without completely clearing any of the spectrum bands.

In the letter, originally sent on July 17 to the National Telecommunications and Information Administration, which oversees federal airwaves, DOD Chief Information Officer Teresa Takai called the proposal “a workable balance to provide access to the 1755-1780 MHz band most desired by the commercial wireless industry while ensuring no loss of critical DoD capabilities.”

The NTIA, in its own letter to the FCC, said it had not had enough time to review the proposal and could not yet endorse it.

The FCC, with NTIA’s help, is preparing for several auctions of airwaves to take place in coming years, including one that would sell off chunks of federally controlled spectrum. They will be the first reshuffling of airwave ownership since 2008.

Congress has required the FCC to auction off the 2155-2180 MHz band by February 2015 and the industry has sought to pair up that slice of spectrum with the valuable 1755-1780 MHz band, arguing it would collect more money. Lawmakers in the House of Representatives have introduced a bill to ensure such pairing.

The FCC has been drafting a notice of proposed rulemaking that would seek public comments on how the FCC should auction those federally owned or already cleared airwaves to the wireless companies and an FCC official said the agency’s notice will address the Pentagon’s new proposal.

President Barack Obama last month directed federal agencies to look for ways eventually to give up or share more of their airwaves with the private sector. This followed his June 2010 call to open up 500 MHz of federal spectrum for commercial use.

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SanDisk Debuts Wireless Flash Drive

SanDisk on Monday announced a line of wireless flash drives that can hold up to 64GB of data.

The new drives include the Connect Wireless Flash Drive — a thumb drive — and the Connect Wireless Media Drive, a larger, but still pocket-sized storage device. The Connect Wireless Flash Drive comes in 16GB and 32GB capacities; the Connect Wireless Media Drive comes in 32GB and 64GB capacities.

The Connect Wireless Flash drive is 3.07-in. x 1.04-in. x 0.54-in. The Connect Wireless Media Drive is 2.6-in. x 2.6-in. x 0.52-in.

The Connect Wireless drive family allows users to not only store but share and stream files across multiple mobile devices. They offer up to eight simultaneous device connections and three media streams, and support separate streams of 720p video content at 2MB/sec to three or five devices concurrently (for the Flash Drive and Media Drive, respectively).

According to a SanDisk spokesman, video streaming performance isn’t affected by multiple streams because device limits are set at a point that supports the streams without degradation. Devices can connect to the drives up to 150 feet away.

The Connect Wireless drives work with all iOS and Android devices, and Kindle Fire tablets, as well as PC and Mac computers. The drives are compatible with Windows 8, Windows 7, Windows Vista, Windows XP and Mac OS 10.6 or higher

Movies, music, photos and documents can be loaded onto the wireless drives by simply dragging and dropping the files, which can then be accessed via the SanDisk Connect apps. Those apps are available for download from the App Store, Google Play Store and the Amazon Appstore for Android.

The drives contain an internal router, so no external router or Internet connection is needed to stream media. In order to use the drives, mobile device users simply download SanDisk’s Connect App.

The drives run on lithium-ion batteries. A single charge provides up to four hours of wireless streaming, with streaming data protected by Wi-Fi Password Protection (WPA2).

“With the new SanDisk Connect product line, we’re raising the bar on what consumers can expect from personal storage,” said Dinesh Bahal, vice president for product marketing for SanDisk.

The SanDisk Connect Wireless Flash Drive is available in 16GB or 32GB capacities for $49.99 and $59.99, respectively. In the U.S., it is available for preorder on Amazon.com, Newegg.com and Micro Center, with availability at Best Buy starting in August. It will also be available for preorder on Amazon.com in Germany and UK.

The SanDisk Connect Wireless Media Drive has a retail price of $79.99 for 32GB or $99.99 for 64GB storage capacity. It is available for preorder in the U.S. on Amazon.com, with availability in Germany and UK in the fourth quarter of 2013.

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Will Lenovo Release A Phablet?

Windows Phone may not be taking the world by storm, but it is a very interesting alternative for anyone who’s not in love with iOS or Android.

Now it seems Redmond’s fledgling platform is about to get its first phablet, courtesy of Lenovo. The device reportedly features a quad-core application processor and a 1080p screen. The screen size is estimated at 4.7 to 5 inches.

This would make it the biggest Windows Phone device to date, although it doesn’t sound very big or “phabletish” by Android standards. The biggest currently available WP8 phone is Samsung’s Ativ Si8750, with 4.8-inch 720p screen.

Nokia is Microsoft’s top hardware partner and it has been rumored to be working on a Windows phablet of its own. However, the persistent rumors have not panned out, at least not yet.

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Will The FBI Ditch Blackberry?

Samsung Electronics Co Ltd is close to signing a deal to sell its popular line of Galaxy devices to the U.S. Federal Bureau of Investigation, sources familiar with the situation said late last  Friday.

The deal would be a boost for Samsung, which is increasingly seeking to cater to the needs of government agencies, a niche long dominated by Canadian smartphone maker BlackBerry Ltd.

The FBI, with more than 35,000 employees, at present uses mainly BlackBerry devices. It is unclear whether the agency plans to replace all BlackBerry equipment with Galaxy models or whether it will use hardware from both companies.

A spokeswoman for the FBI declined to comment on the matter, saying that the selection of its new smartphones is part of an active acquisition process and any current discussions are proprietary to the government.

The imminent deal was initially reported by the Wall Street Journal late on Thursday. The WSJ also said Samsung is close to signing a smaller order for its devices with the U.S. Navy, citing people familiar with the matter.

Representatives of BlackBerry and Samsung declined to comment. BlackBerry emphasized, however, that it regards its operating system as the best in the market in terms of security features.

“The security of mobile devices is more important now than it has ever been before,” BlackBerry’s chief legal officer, Steve Zipperstein, said in an interview. “It is fair to ask why in this context anyone would consider moving from the gold standard in security, which is the BlackBerry platform.”

In May, the U.S. Pentagon cleared Samsung’s Android mobile devices and a new line of BlackBerry devices powered by the BB10 operating system for use on Defense Department networks.

Samsung has been pushing hard to convince government agencies and corporate clients that its Galaxy devices, powered by Google Inc’s Android operating system, can meet their stringent security needs.

The South Korean company hopes that the Pentagon clearance and the imminent deal with the FBI will help boost sales to security-conscious clients including banks and law firms.

Some analysts remain skeptical about whether Android can meet all security requirements of such clients, and note that the FBI itself has highlighted some vulnerabilities of the platform.

“The Android operating system hasn’t been secured properly,” said Rob Enderle, principal analyst with Enderle Group, noting that Samsung has layered technology on top of the operating system in an attempt to make its Galaxy devices safer.

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DDoS Attacks Rising

One in five UK businesses experienced a DDoS attack last year according to a new survey.

Analytics firm Neustar said that while the percentage is significantly lower than that experienced by their US equivalents it is still fairly high. More than 22 percent of the 381 organisations participating in the annual trends study reported DDoS attacks, compared to 35 percent experiencing the same in a separate study carried out among US firms in 2012.

Neustar set out to measure revenue ‘risk per hour’ which is a measure of what it might cost a business in a particular sector to experience DdoS downtime. They found that the majority of organisations reckoned this at less than $1,500 per hour.

Most of the rest put it somewhere between $1,500 and $15,000 although one in four financial services firms put the number at $250,000 per hour. This cost included brand damage and unexpected customer service calls.

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Baidu Acquires App Maker

Baidu Inc, China’s top search engine, plans to purchase app store 91 Wireless for $1.9 billion to strengthen its position in the country’s highly competitive mobile computing sector.

Baidu will buy a 57.4 percent stake in 91 Wireless, one of China’s earliest appstores, from NetDragon Websoft Inc for $1.09 billion, and the remainder from other shareholders, both companies said on Tuesday.

“It’s good for Baidu because if you look at mobile, currently apps are more popular than mobile sites because Internet download speeds are slow. So with the acquisition of this appstore, Baidu can work more closely with the apps developer and be able to enhance further their search capabilities,” said Elinor Leung, an analyst with CLSA in Hong Kong.

China’s mobile Internet market is expected to double to about 300 billion yuan ($48 billion) in 2014 from 150 billion yuan in 2012, with the number of active mobile Internet users rising to 749 million from 521 million during the same period, according to research firm Analysys International.

NetDragon’s shares lost as much as a fifth of their value on Tuesday and were down 18 percent at HK$19.74 at 0305 GMT (11.05 p.m ET)

NetDragon also said in a statement that it would scrap the planned spinoff and listing of 91 Wireless on Hong Kong’s secondary Growth Enterprise Market if the acquisition is finalized.

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WiLan Loses In Court

Wi-Lan has suffered defeat in its patents trial against Alcatel Lucent, Ericsson, HTC and Sony, as a Texas court decided that the firms did not infringe its patents.

Wi-Lan filed a lawsuit against Alcatel Lucent, Ericsson, HTC and Sony in 2010 claiming the firms infringed patents that relate to data transmission over wireless networks. However a Texas court ruled that the four firms did not infringe Wi-Lan’s patents and found one patent Wi-Lan asserted against HTC and two it asserted against Alcatel Lucent invalid.

Wi-Lan had asserted that Alcatel Lucent and Ericsson infringed three patents, none of which claims were upheld by the court. The firm also asserted that HTC and Sony infringed another patent, and there the court not only judged against infringement but invalidated the patent.

Alcatel Lucent and HTC both said that Wi-Lan was trying to stretch its patents to cover technology in their devices.

Sally Julien, a spokeswoman for HTC said, “HTC believes that Wi-Lan has exaggerated the scope of its patent in order to extract unwarranted licensing royalties from entities who have been focused on bringing innovation forward in their own products.”

Kurt Steinert, an Alcatel Lucent spokesman said, “We think this validates our belief that Wi-Lan was stretching the boundaries of its patents, and the jury confirmed that belief.”

Wi-Lan has managed to get several companies to license its technology including Dell and Panasonic, and in May it initiated legal proceedings against Blackberry over a patent relating to Long Term Evolution network technology. However in this case the firm did not prevail against two large telecom equipment companies and two big smartphone makers.

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Microsoft Drops The Surface

Microsoft has dropped the prices on its Surface RT tablets by as much as 30%, with the entry-level 32GB model selling for $349.

The 64GB Surface RT was also discounted by $150, and now sells for $449, or 25% off its former price.

When Microsoft launched the tablet, it sold the 32GB device for $499 and the 64GB configuration for $599.

Microsoft started selling the Surface RT at the lower prices Sunday, as did some of its U.S. retail partners, including Best Buy and Staples. On its website, Staples noted that the discounted prices are valid until July 20, and only while supplies last.

Microsoft’s website, however, listed no caveats, hinting that the lower prices might be permanent or at least will be honored for longer than one week.

The prices are another attempt by Microsoft to clear its existing inventory in preparation for a second-generation line of Windows RT devices. Previously, Microsoft had launched multiple deals to rid itself of the poor-selling tablet, most recently in June when it slashed prices by 60% in a bid to get universities and K-12 schools to buy the device.

Earlier, it kicked off a buy-a-Surface-RT-get-a-free-cover deal that ran until June 30. And at several conferences, including June’s TechEd North America and this month’s Microsoft Partner Conference, the company sold attendees a 64GB Surface RT for $100, 83% off list price.

Today’s sale prices were nearly Microsoft’s cost, which according to estimates of the tablet’s component prices, runs the company at least $284 for the 32GB Surface RT.

Microsoft has not abandoned Windows RT, the pared-down operating system that powers the Surface RT, but virtually every third-party OEM has either pointedly ignored the OS or publicly announced that they would not support it with devices of their own. Instead, the OEMs have flocked to Windows 8 Pro, even though some analysts question the value of touch devices on a platform whose biggest selling point is legacy software that doesn’t support touch.

Microsoft has not revealed sales figures for the Surface line — which also includes the Surface Pro, powered by Windows 8 Pro — but estimates by research firms like IDC have been lackluster.

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MS Office Demand Fizzles

After a promising start, downloads of Microsoft’s free Office for the iPhone quickly nosedived, as the latest data from a mobile app analytics company showed.

But at least 200,000 copies of the small suite — iPhone versions of Word, Excel and PowerPoint — were downloaded in the first six days.

Distimo, a Dutch firm that tracks app store market data for several platforms, including Apple’s iOS, Google’s Android, and Microsoft’s Windows 8 and Windows Phone, said Office Mobile for the iPhone debuted in the No. 10 spot on June 15, the day after Microsoft launched the free app.

That was Office Mobile’s peak: On June 16, Office Mobile slipped to the No. 19 position among all free iPhone apps, then continued to slide throughout the week of June 17-23, starting that seven-day stretch at No. 36, falling to No. 86 by Friday, June 21, and ending at No. 299 on June 23.

From June 24 to July 6, Office Mobile was not on Distimo’s leaderboard, which lists only the top 400 downloaded apps.

The number of downloads of Office Mobile for iPhone is unknown — Distimo requires a paid account to show developers the estimated downloads of their apps and those of competitors, and did not reply to questions Sunday — but the tally was probably significant.

According to Distimo,  to place in the App Store’s No. 10 spot, an app must average 72,000 downloads daily. Office Mobile was ranked No. 10 on June 15. Apps ranked at No. 50 averaged 23,000 downloads daily: Office Mobile held position at No. 50 or lower for five consecutive days.

Those numbers implied that at least 200,000 copies of Office Mobile were downloaded in the six days between June 15 and June 20.

Likewise, the sharp decline of Office Mobile’s position in the App Store’s free list after just a week hints at a pent-up demand that was quickly satisfied.

Although rumors of Office on iOS had circulated since the iPad’s 2010 introduction, they heated up last November when reports claimed Microsoft would launch a mobile version of the suite this year and tie the software to Office 365. At the time, most analysts agreed that Office 365 was the smart move because it could boost interest in the subscription concept Microsoft has bet will result in more, and more regular, revenue from its Office cash cow.

Linking Office on iOS to Office 365 would also let Microsoft avoid the Apple “tax,” the 30% cut that Apple takes from all App Store sales.

Only Office 365 subscribers can use Office Mobile. Subscriptions range from the consumer-grade Office 365 Home Premium, which costs $100 annually, to several business plans that start at $150 per user per year and climb to $264 per user per year.

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