The U.S. Is Falling Behind

The U.S. government is losing a race in cyberspace — a social-networking race for the hearts and minds of the Internet community, a computer security expert said Wednesday.

Other countries — and many companies — are using social-networking tools to their advantage, while the U.S. government has taken tiny steps forward, said Rand Waltzman, a program manager focused on cybersecurity at the U.S.Defense Advanced Research Projects Agency (DARPA).

The Chinese government pays citizens to patrol social-networking sites and dispute negative talk about all levels of government or any aspect of Chinese life, and companies such as Dell and Best Buy are training workers to respond to complaints on Facebook and other social-networking services, Waltzman said at the Suits and Spooks security conference in Arlington, Virginia.

U.S. regulations prevent the government from undertaking similar campaigns, he said. “Any time you want to go to the bathroom, you need presidential approval,” he said.

The U.S. will not be able to protect its residents if it cannot engage in its own covert social-media operations, Waltzman said.

Waltzman told about a U.S. special forces unit in Iraq in 2009 that attacked an insurgent paramilitary group, killed 16 of the members of the group and seized a “huge” weapons cache. As soon as the U.S. unit left the scene, the Iraqi group returned, put the bodies on prayer mats, and uploaded a photograph from a cheap mobile phone, he said. The group put out a press release in English and Arabic.

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Samsung Plans To Go Low-End

Samsung Electronics Co, the world’s top television maker, has seen TV sales firming up so far this year and plans to launch cheaper TVs, as demand for lower-end models increase, the head of its TV business said on Wednesday.

Demand for lower-end TVs has been increasing in recent months as major South Korean retailers such as E-Mart Co introduced flat-screen models that are as much as 40 percent cheaper through alliances with small local manufacturers.

“As long as there’s demand, we’re open to get into that segment,” Kim Hyun-suk, executive vice president of Samsung’s visual display division, told reporters.

“We’ve been preparing to introduce cheap models and have been studying to optimize production costs and retail prices. Those (cheap) models will be ready for sale in one or two months.”

Samsung, the most profitable TV maker, also introduced on Wednesday its highest-end premium set that it hopes will help boost profitability, as a fragile global economy threatens to sap demand growth this year after no growth in 2010.

The ES8000 model has voice, motion and face recognition functions, as well as 3D and Internet-enabled capabilities. The models, available in sizes of between 46 and 65 inches, will go on sale from this weekend in South Korea before a global launch in March.

Kim said Samsung’s TV sales so far this year have been stronger than a year ago and demand from China remained solid.

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Satellite Phone Encryption Cracked

German researchers claim to have cracked the algorithm that secures satellite phone transmissions.

Benedikt Driessen and Ralf Hund from Ruhr University have reverse engineered the GMR-1 and GMR-2 voice ciphers used in a lot of satellite systems. These are used by, among others, government agencies and the military.

Bjoern Rupp, CEO at GSMK Cryptophone said, “This breakthrough has major implications for the military, civilians engaged on overseas operations, or indeed anyone using satellite phones to make sensitive calls in turbulent areas.”

Their report is titled “Don’t Trust Satellite Phones” and shows how someone with a “suitably programmed computer” and software radio capable of receiving satellite frequencies can hack calls. These include ones made by disaster relief agencies and the military.

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Google Ordered To Pay $660K

A Paris Court earlier this week ordered Google France and its parent company Google to pay plaintiff Bottin Cartographes 500,000 euros (about $660,000) for providing its free mapping services to companies across the country. The court also required Google to pay a 15,000 euro fine for its practice.

“We proved the illegality of (Google’s) strategy to remove its competitors,” Jean-David Scemmama, attorney for Bottin Cartographes, a company that provides mapping services to the enterprise, told the AFP in an interview earlier this week. “The court recognized the unfair and abusive character of the methods used and allocated Bottin Cartographes all it claimed. This is the first time Google has been convicted for its Google Maps application.”

According to Scemmama, Bottin has been arguing its case against Google for two years, claiming the search giant was engaging in anticompetitive practices by using its free service to take control over the online-mapping industry.

In a statement to the AFP, Google said that it will appeal the court’s decision, adding that Google Maps is still facing competition in that market.

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Hacked Companies Still Not Alerting Investors

At least a half-dozen major U.S. companies whose computer networks have been breached by cyber criminals or international spies have not admitted to the incidents despite new guidance from securities regulators urging such disclosures.

Top U.S. cybersecurity officials believe corporate hacking is widespread, and the Securities and Exchange Commission issued a lengthy “guidance” document on October 13 outlining how and when publicly traded companies should report hacking incidents and cybersecurity risk.

But with one full quarter having elapsed since the SEC request, some major companies that are known to have had significant digital security breaches have said nothing about the incidents in their regulatory filings.

Defense contractor Lockheed Martin Corp, for example, said last May that it had fended off a “significant and tenacious” cyber attack on its networks. But Lockheed’s most recent 10-Q quarterly filing, like its filing for the period that included the attack, does not even list hacking as a generic risk, let alone state that it has been targeted.

A Reuters review of more than 2,000 filings since the SEC guidance found some companies, including Internet infrastructure company VeriSign Inc and credit card and debit card transaction processor VeriFone Systems Inc, revealed significant new information about hacking incidents.

Yet the vast majority of companies addressing the issue only used new boilerplate language to describe a general risk. Some hacking victims did not even do that.

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Will Samsung Overtake Apple

Yesterday, DigiTimes released its comprehensive Global Smartphone Industry 2012 forecast report, which entails the total number of global smartphone shipments in 2011 along with estimates of smartphone manufacturer ranking by volume in 2012.

According to the report, global smartphone shipments are projected to top 464 million units in the entirety of 2011, with Apple being the top ranking vendor in terms of shipment volume, followed by Samsung Electronics and Nokia. On the Google Android side of matters, it is expected that Samsung will overtake Apple in 2012 as the “world’s largest smartphone vendor by volume.” In addition, HTC will overtake Nokia for the third-place spot.

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Xoom Tablets To Get Android 4.0

Motorola Mobility has confirmed the Android Ice Cream Sandwich upgrade to the Xoom Wi-Fi tablet will arrive over-the-air via Wi-Fi to U.S.-based devices on Wednesday.

In addition to faster browser rendering, the free update lets users type via voice and includes a Data Manager tool for monitoring and controlling network data usage, something seen as especially helpful to reviewers of the Samsung Galaxy Nexus smartphone running Ice Cream Sandwich, also called Android 4.0.

Motorola called it the first tablet of its kind to receive the upgrade to Ice Cream Sandwich, though the update for the Asus Transformer Prime tablet was distributed a week ago, as several bloggers, including Slashgear noticed.

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iPhone Narrows Gap With Android

Apple’s iPhone gained major ground among recent buyers in its battle against smartphones running Google’s Android, but still lagged behind its OS rival, pollster Nielsen said today.

In a December 2011 survey of U.S. consumers who had purchased a smartphone in the previous three months, 44.5% chose an iPhone, a jump of nearly 20 percentage points from the 25.1% that Nielsen measured in October.

That represents a 77% increase in the iPhone’s numbers.

But Android maintained the lead in the recent-buyers game with a 46.9% share, down from October’s 61.6%.

A majority of the new iPhone owners — 57% to be exact — bought an iPhone 4S, the newest model in Apple’s line-up, said Nielsen. The iPhone 4S debuted in the U.S. on Oct. 14, 2011.

Nielsen said the iPhone 4S had an “enormous” impact on Apple’s huge jump in share among new smartphone purchasers.

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Does LightSquared Interfere With GPS?

A second round of tests on LightSquared’s proposed land-based mobile data network again showed interference with a majority of GPS devices, except for cellphones, two U.S. federal departments stated Wednesday.

LightSquared wants to build a network of 4G LTE (Long-Term Evolution) base stations around the U.S. that would operate on frequencies close to those used by GPS (Global Positioning System) receivers. But the U.S. Federal Communications Commission (FCC) will not approve the company’s plan unless potential interference with GPS has been resolved. Tests earlier this year showed the network could cripple many GPS devices.

The second round of tests was conducted last month and concentrated on LightSquared operating in a lower block of frequencies farther from those used by GPS.

“Preliminary analysis of the test findings found no significant interference with cellular phones,” the Department of Defense and Department of Transportation said in a statement on Wednesday. “However, the testing did show that LightSquared signals caused harmful interference to the majority of other tested general purpose GPS receivers. Separate analysis by the Federal Aviation Administration also found interference with a flight safety system designed to warn pilots of approaching terrain.”

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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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