Darkode Hacking Forum Shut Down

Law enforcement agencies from 20 countries collaborated to cripple a major computer hacking forum, and U.S. officials filed criminal charges against a dozen people associated with the website, the U.S. Department of Justice announced.

Darkode.com on is displaying a message saying the site and domain had been seized by the FBI and other law enforcement agencies.

Darkode, a password-protected online forum for criminal hackers, represented one of the gravest threats to the integrity of data on computers across the world, according to David Hickton, U.S. attorney for the Western District of Pennsylvania. “Through this operation, we have dismantled a cyber hornets’ nest of criminal hackers which was believed by many, including the hackers themselves, to be impenetrable.”

Five of the defendants face charges in Hickton’s district.

Darkode allowed hackers and other cybercriminals to sell, trade and share information and tools related to illegal computer hacking, the law enforcement agencies alleged.

Before becoming a member of Darkode, prospective participants were allegedly vetted through a process that included an invitation by a member, the DOJ said in a press release. The prospective member then pitched the skill or products he or she could bring to the forum.

Darkode members allegedly used each other’s skills and products to infect computers and electronic devices of victims around the world with malware, the DOJ said.

The takedown of the forum and the charges announced Wednesday came after the FBI’s infiltration of Darkode’s membership.

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Microsoft Issues New Policies

Microsoft Corp, under fire for accessing an employee’s private Hotmail account to prove he was illegally passing computer code to a blogger, has said it will now refer all suspicious activity on its email services to law enforcement.

The decision, announced by head lawyer Brad Smith on Friday, reverses Microsoft’s initial reaction to complaints last week, when it laid out a plan to refer such cases to an unidentified former federal judge, and proceed to open a suspect email account only if that person saw evidence to justify it.

“Effective immediately, if we receive information indicating that someone is using our services to traffic in stolen intellectual or physical property from Microsoft, we will not inspect a customer’s private content ourselves,” said Smith, in a blog post on the software company’s website. “Instead, we will refer the matter to law enforcement if further action is required.”

Microsoft – which has recently cast itself as a defender of customer privacy – was harshly criticized last week by civil liberties groups after court documents made public in the prosecution of Alex Kibkalo in Seattle federal court for leaking trade secrets showed that Microsoft had accessed the defendant’s email account before taking the matter to legal authorities.

The company said last week its actions were within its legal rights under the terms of use of its email services, but has now acknowledged that its actions raised concerns about customer privacy.

The issue is poignant for Microsoft, which routinely criticizes Google Inc for serving up ads based on the content of users’ Gmail correspondence.

It has also been campaigning for more transparency in the legal process through which U.S. intelligence agencies can get access to email accounts following the revelations of former National Security Agency contractor Edward Snowden.

“While our own search was clearly within our legal rights, it seems apparent that we should apply a similar principle and rely on formal legal processes for our own investigations involving people who we suspect are stealing from us,” said Smith in his blog. “Therefore, rather than inspect the private content of customers ourselves in these instances, we should turn to law enforcement and their legal procedures.”

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Yahoo Wins Major Lawsuit

Yahoo has achieved a big victory against spammers, a legal victory that also includes a default judgment of $610 million.

In the lawsuit, filed in May 2008, Yahoo targeted a variety of individuals and companies, accusing them of trying to defraud people via a spam campaign that falsely informed email recipients that they had won prizes in a non-existent Yahoo-sponsored lottery.

Yahoo alleged that the defendants’ goal was to trick email recipients into providing them with personal and financial information that could be used to commit fraud by raiding victims’ bank accounts, using their credit cards and applying for loans on their behalf.

Judge Laura Taylor Swain from the U.S. District Court for the Southern District of New York ruled that Yahoo’s allegations are “uncontroverted” and said the company is entitled to $27 million in statutory damages for trademark infringement and $583 million in statutory damages for violation of the CAN-SPAM Act.

It’s not clear whether Yahoo will be able to collect the money. A default judgment is rendered when defendants in a case fail to plead or defend an action, as happened in this case, in which the defendants never responded to Yahoo’s complaint.

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Judge Oks Sprint’s Lawsuit Against AT&T

A judge in the U.S. on Wednesday gave the go ahead to parts of C Spire Wireless and Sprint Nextel’s lawsuits against AT&T’s proposed US$39 billion acquisition of T-Mobile USA.

AT&T and T-Mobile had moved for dismissal of the lawsuits arguing that the complaints by Sprint and C Spire, formerly Cellular South, failed to adequately substantiate that the merger would cause them “antitrust injury”.

The decision by District Judge Ellen Segal Huvelle of the United States District Court for the District of Columbia could complicate AT&T’s defense of the deal which has been already opposed by the U.S. government.

The U.S. Department of Justice filed a lawsuit in August to block AT&T from acquiring T-Mobile, saying that the deal would significantly reduce competition, increase prices and stifle innovation. Seven state attorneys general have joined the lawsuit. That case goes on trial in February before Judge Huvelle.

Where private plaintiffs have successfully pleaded antitrust injury, the fact that they are defendants’ competitors is no bar, Judge Huvelle said before allowing Sprint and C Spire to proceed with their claim that the merger would make it difficult for them to acquire wireless devices. The companies had claimed that after the merger AT&T and Verizon would be in a better position to get exclusive handset deals, while foreclosing their access to the most innovative handsets and raise their costs.

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RIM’s Troubles May Not Be Over

Law firms in the United States and Canada are considering possible consumer lawsuits against Research In Motion Ltd for last week’s BlackBerry outages, which for three days crippled email and messaging for tens of millions of users around the world.

Consumer lawyers say they are investigating whether customers have common claims against the BlackBerry manufacturer and might be able to band together in a single lawsuit.

While the outage did not rise to the level of seriousness comparable to a dangerous medication or tainted food, it inconvenienced and angered customers. Frustrated BlackBerry users, turning to blogs, message boards, Twitter and Facebook, complained about losing important emails and missing meetings last week.

Law firms are considering breach-of-contract or consumer-fraud claims, attorneys said.

A breach-of-contract claim could argue the company failed in its obligations to provide service and could include carriers for BlackBerry service as additional defendants, said attorneys exploring litigation against RIM.

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