Patents

Programmer Apologizes For Sending Letters Claiming Patent on Age-Old Web Standard (theregister.com) 56

"The director of a tiny UK company has apologised after sending letters to businesses suggesting they had infringed his patents that he claimed covered an age-old web standard," writes The Register.

LeeLynx shares their report: The tech in question is the content security policy (CSP) mechanism that websites use to protect their visitors from cross-site scripting (XSS) attacks and similar exploits that steal data and hijack accounts. Specifically, the cryptographic nonce [number-used-once] feature of CSP to stop unauthorized scripts from running. Datawing Ltd sent a number of letters to small businesses this month claiming to own one UK and one US patent on CSP and its use of a nonce.

After an initial wave of alarm and outrage on Twitter when the letters surfaced, The Register tracked down their author: a penitent William Coppock... "What a stupid plonker, all I've done," he sighed, adding that he has six children and has been diagnosed with cancer. Applying for the UK and US patents cost him his "life savings," he said, adding: "I didn't intend any harm to come to anyone. Maybe I've just got to sell or give this thing to Mozilla...."

[H]e denied to The Register that he was a patent troll. A law firm had checked over the letter and the "patent infringement outline" document before he sent them, he claimed. Coppock also apologised to all who received his letters and urged them to contact him if they had any questions about it.

We have asked the law firm Coppock named for comment on the advice he says it gave him and will update this article if we hear back from it.

Security

How Microsoft, Google, Apple, and IBM Will Help the US Improve Its Cybersecurity (infosecurity-magazine.com) 19

Infosecurity magazine reports: Some of the world's biggest tech companies have committed tens of billions of dollars to improving supply chain security, closing industry skills gaps and driving security awareness among the public, according to the White House.

As reported by Infosecurity yesterday, the Biden administration welcomed the CEOs of Microsoft, Apple, Google, IBM and others to a meeting yesterday to discuss the "whole-of-nation" effort needed to address cybersecurity threats." The result of that encounter has been a series of commitments from these firms, including $10bn from Google over the next five years to expand zero trust and improve supply chain and open source security. The tech giant will apparently also help 100,000 Americans earn "digital skills certificates."

IBM said it would train 150,000 people in cyber skills over the coming three years and focus on improving the diversity of the security workforce, while Microsoft has committed $20bn over five years to drive security by design, and $150m for federal, local and state governments. Apple will establish a new program to improve supply chain security, including among its 9000 US suppliers, with multi-factor authentication (MFA), vulnerability remediation, event logging and incident response all playing a key role. Amazon is making MFA devices available to all AWS customers and rolling out the security training it offers employees to the general public.

Aside from these commitments, the White House announced the expansion of its Industrial Control Systems Cybersecurity Initiative, from the electricity sector to natural gas pipelines, and said the National Institute of Standards and Technology (NIST) would develop a new framework for supply chain security. In another potentially significant move, insurer Resilience said it would require policyholders to meet a threshold of cybersecurity best practice as a condition of receiving coverage — something experts have been demanding for some time across the industry.

NextGov.com also quotes the president's remarks about a cybersecurity executive order issued May 12th: "Because of that order, government will only buy tech products that meet certain cybersecurity standards, which will have a ripple effect across the software industry, in our view, ultimately improving security for all Americans,"
Cellphones

T-Mobile CEO Apologizes For Data Breach Affecting Over 53 Million Users (nbcnews.com) 26

"T-Mobile CEO Mike Sievert published an open apology to customers Friday after hackers stole more than 50 million users' personal data, including their Social Security numbers and driver's license information," reports NBC News: "The last two weeks have been humbling for all of us at T-Mobile," he wrote. "To say we are disappointed and frustrated that this happened is an understatement."

The incident is the fourth known breach at T-Mobile since 2018, and by far the largest. The full count of how many customers had their data stolen is unclear, but the company said last week it had identified more than 53 million affected customers, most of them on subscription plans. It also included an unspecified number of "prospective" users who are not T-Mobile customers...

It is unclear why T-Mobile was storing customers' driver's license information and Social Security numbers without encrypting them in a way that would make it difficult or impossible for hackers to see them even if they stole them. Jackie Singh, a cybersecurity consultant, said it was irresponsible on the part of T-Mobile, especially for hard-to-change sensitive personal data like Social Security numbers.

"It is frankly bizarre to learn that in this day and age, a major telco continues to store critical customer data in plain text," she said. "Offering two years of credit monitoring services doesn't change the fact that harm was done to their customer base."

NBC says they spoke to the person identified as the perpetrator by the Wall Street Journal, who told them last week that he'd planned to sell the information on more than 100 million users for a hefty profit.

Meanwhile, T-Mobile's CEO now says they're alerting affected users and have set up a hub for victim services. Beneath the words "NOTICE OF DATA BREACH," it adds the tagline "Keeping you safe from cybersecurity threats. What you need to know and how we're protecting you."
EU

EU Agency Advises Against Using Search, Browsing History For Credit Scores 38

An anonymous reader quotes a report from The Record, written by Catalin Cimpanu: The European Union's lead data protection supervisor has recommended on Thursday that personal data such as search queries & internet browsing history should not be used for the assessment of credit scores and creditworthiness. The recommendation comes from the European Data Protection Supervisor (EDPS), an independent agency attached to the EU that advises policymakers "on all matters relating to the processing of personal data."a document published on Thursday. In addition, the agency advises that providers of financial and credit services should also not be allowed to use health data, such as cancer data, as well as any special category of personal data under Article 9 of the GDPR for the calculation of credit scores. The EDPS recommendations follow a recent blog post for the International Monetary Fund, where researchers see the possibility of using the data from your browsing, search, and purchase history to create a more accurate mechanism for determining the credit rating of an individual or business.
IBM

After 18 Years, SCO's IBM Litigation May Be Settled for $14.5 Million (scribd.com) 151

Slashdot has confirmed with the U.S. Bankruptcy Court for the District of Delaware that after 18 years of legal maneuvering, SCO's bankruptcy case (first filed in 2007) is now "awaiting discharge."

Long-time Slashdot reader rkhalloran says they know the reason: Papers filed 26 Aug by IBM & SCOXQ in U.S. Bankruptcy Court in Delaware for a proposed settlement, Case 07-11337-BLS Doc 1501:

By the Settlement Agreement, the Trustee has reached a settlement with IBM that resolves all of the remaining claims at issue in the Utah Litigation (defined below). The Settlement Agreement is the culmination of extensive arm's length negotiation between the Trustee and IBM.

Under the Settlement Agreement, the Parties have agreed to resolve all disputes between them for a payment to the Trustee, on behalf of the Estates, of $14,250,000. For the reasons set forth more fully below, the Trustee submits the Settlement Agreement and the settlement with IBM are in the best interests of the Estates and creditors, are well within the range of reasonableness, and should be approved.

The proposed order would include "the release of the Estates' claims against IBM and vice versa" (according to this PDF attributed to SCO Group and IBM uploaded to scribd.com). And one of the reasons given for the proposed settlement? "The probability of the ultimate success of the Trustee's claims against IBM is uncertain," according to an IBM/SCO document on Scribd.com titled Trustee's motion: For example, succeeding on the unfair competition claims will require proving to a jury that events occurring many years ago constituted unfair competition and caused SCO harm. Even if SCO were to succeed in that effort, the amount of damages it would recover is uncertain and could be significantly less than provided by the Settlement Agreement. Such could be the case should a jury find that (1) the amount of damage SCO sustained as a result of IBM's conduct is less than SCO has alleged, (2) SCO's damages are limited by a $5 million damage limitation provision in the Project Monterey agreement, or (3) some or all of IBM's Counterclaims, alleging millions of dollars in damages related to IBM's Linux activities and alleged interference by SCO, are meritorious.

Although the Trustee believes the Estates would ultimately prevail on claims against IBM, a not insignificant risk remains that IBM could succeed with its defenses and/or Counterclaims

The U.S. Bankruptcy Court for the District of Delaware told Slashdot that the first meeting of the creditors will be held on September 22nd, 2021.
The Courts

Parents of Teens Who Stole $1 Million In Bitcoin Sued By Alleged Victim (zdnet.com) 48

An anonymous reader quotes a report from ZDNet, written by Charlie Osborne: The parents of two teenagers allegedly responsible for stealing $1 million in Bitcoin are being sued. According to court documents obtained by Brian Krebs, Andrew Schober lost 16.4552 in Bitcoin (BTC) in 2018 after his computer was infected with malware, allegedly the creation of two teenagers in the United Kingdom. The complaint (.PDF), filed in Colorado, accuses Benedict Thompson and Oliver Read, who were minors at the time, of creating clipboard malware. The malicious software, designed to monitor cryptocurrency wallet addresses, was downloaded and unwittingly executed by Schober after he clicked on a link, posted to Reddit, to install the Electrum Atom cryptocurrency application.

During a transfer of Bitcoin from one account to another, the malware triggered a Man-in-The-Middle (MiTM) attack, apparently replacing the address with one controlled by the teenagers and thereby diverting the coins into their wallets. According to court documents, this amount represented 95% of the victim's net wealth at the time of the theft. At today's price, the stolen Bitcoin is worth approximately $777,000. "Mr. Schober was planning to use the proceeds from his eventual sale of the cryptocurrency to help finance a home and support his family," the complaint reads. The pair, tracked down during an investigation paid for by Schober, are now adults and are studying computer science at UK universities. The mothers and fathers of Thompson and Read are named in the complaint. Emails were sent to the parents prior to the complaint requesting that the teenagers return the stolen cryptocurrency to prevent legal action from being taken. However, the requests, sent in 2018 and 2019, were met with silence.

Schober's complaint claims that the parents "knew or reasonably should have known" what their children were up to, and that they also failed to take "reasonable steps" in preventing further harm. In response (.PDF), the defendants do not argue the charge, but rather have requested a motion to dismiss based on two- and three-year statutes of limitation. "Despite his knowledge of his injury and the general cause thereof, Plaintiff waited to file his lawsuit beyond the two and three years required of him by the applicable statutes of limitations," court documents say. "For this reason, Plaintiff's claims against Defendants should be dismissed." However, Schober's legal team has argued (.PDF) that the teenagers were not immediately traced, and roughly a year passed between separately identifying Read and Thompson. Schober's lawyers have requested that the motion to dismiss is denied.

Medicine

US Intelligence Agencies Split On COVID-19 Origins, Offer No High-Confidence Conclusions In New Report (cnbc.com) 228

The U.S. intelligence community said Thursday that it was divided over the exact origin of Covid-19 in China. CNBC reports: "After examining all available intelligence reporting and other information, though, the IC remains divided on the most likely origin of Covid-19. All agencies assess that two hypotheses are plausible: natural exposure to an infected animal and a laboratory-associated incident," the unclassified report from the Office of the Director of National Intelligence said. In May, President Joe Biden ordered a closer intelligence review of what he described as two likely scenarios of the origins of the Covid-19. "Here is their current position: 'while two elements in the IC leans toward the [human contact] scenario and one leans more toward the [lab leak scenario] -- each with low or moderate confidence -- the majority of elements do not believe there is sufficient information to assess one to be more likely than the other," Biden said. Developing...
United States

Tech's Lobbying Push Follows Market Consolidation, Study Shows (bloomberg.com) 17

The flood of lobbying dollars spent by tech companies has increased with market concentration, according to a new study that cites similar patterns in the pharmaceutical and oil industries. Bloomberg: The report suggests that entrenched firms face less competition and don't have to invest as much in innovation, giving them more resources to spend influencing the democratic process. Reed Showalter, an attorney with the anti-monopolist group American Economic Liberties Project who wrote the study, said policy makers and antitrust enforcers should look beyond the impact that mergers have on consumers and consider how market concentration affects the democratic process. "We need to more closely scrutinize various elements of competition policy that have allowed industries to become more concentrated over the last 30 to 40 years," Showalter said in a phone interview Tuesday. "Allowing unchecked concentration is the cause for a lot of the democratic harms that we're also seeing people complain about as big money enters politics. There's no coincidence there."
The Courts

California Expands Lawsuit Against Activision Blizzard (axios.com) 15

California has expanded its anti-discrimination lawsuit against Activision Blizzard, adding temporary workers to the female full-time employees of whom it is suing on behalf. The state's Department of Fair Employment & Housing also alleges the game maker has interfered with its investigation. Axios reports: The amended complaint was filed Monday and redefines the "group" it says was wronged by the gaming giant. A copy reviewed by Axios specifically mentions that California's protections against anti-harassment, equal pay and other equal employment opportunity protections "exist for employees and contingent or temporary workers." Throughout the lawsuit, the word "employees" has been changed to "workers" in reference to harassment, sex discrimination regarding pay and other allegations.

The DFEH also says Activision Blizzard has stymied its efforts through NDAs, requiring employees to speak with the company ahead of contacting the DFEH, and its involvement with WilmerHale, a law firm the game maker said will investigate misconduct issues. The suit claims that this "directly interferes" with DFEH's ability to "investigate, prosecute, and remedy workplace discrimination and harassment violations on behalf of employees and contingent or temporary workers." It alleges, in part, that "documents related to investigations and complaints were shredded by human resource personnel" in violation of what it asserts is the game company's legal obligation to retain them pending the investigation.
A spokesperson for Activision Blizzard said that the company has "complied with every proper request in support of its review even as we had been implementing reforms to ensure our workplaces are welcoming and safe for every employee."

"With regards to claims that we have destroyed information by shredding documents, those claims are not true. We took appropriate steps to preserve information relevant to the DFEH investigation," the spokesperson added. "We have provided the DFEH with clear evidence that we do not have gender pay or promotion disparities. Our senior leadership is increasingly diverse, with a growing number of women in key leadership roles across the company."

California sued the video game studio last month over allegations of gender discrimination, sexual harassment and potential violations of the state's equal pay law.
Google

Google Says Staff Have No Right To Protest Its Choice of Clients (bloomberg.com) 358

An anonymous reader quotes a report from Bloomberg: Google employees have no legal right to protest the company's choice of clients, the internet giant told a judge weighing the U.S. government's allegations that its firings of activists violated the National Labor Relations Act. "Even if Google had, for the sake of argument, terminated the employees for their protest activities -- for protesting their choice of customers -- this would not violate the Act," Google's attorney Al Latham said in his opening statement Tuesday at a labor board trial. National Labor Relations Board prosecutors have accused the Alphabet Inc. unit of violating federal law by illegally firing five employees for their activism. Three of those workers' claims had originally been dismissed under President Donald Trump, because agency prosecutors concluded that their opposition to the company collaborating with immigration enforcement wasn't legally protected, according to their lawyer. But that decision was reversed after President Joe Biden fired and replaced the labor board's general counsel.

Google has been roiled over the past four years by a wave of activism by employees challenging management over issues including treatment of sub-contracted staff, handling of sexual harassment, and a contract with the U.S. Customs and Border Protection agency, which some of the fired workers accessed internal information about and circulated a petition against. Google has denied wrongdoing, saying in a Monday statement that it encourages "open discussion and debate" but terminated staff in response to violations of its data security policies. "Google terminated these employees not because of their protest as such, but because in the pursuit of their protest, they accessed highly confidential information that they had no right to access," its attorney told the judge Tuesday.

Federal labor law prohibits retaliating against employees for collective action related to their working conditions, but the exact scope of that protection has been debated for decades. Biden's appointees have signaled they interpret the scope of what that covers much more broadly than their Trump-era predecessors. Latham said he isn't aware of any case in the labor board's eight decades of existence in which it has held "an employer's choice of customer" to be an issue workers have a right to protest. "What we have here is a protest that does not seek to improve employees' terms and conditions of employment," but rather "a purely political protest that sought to use Google's government contracts, or potential government contracts, as leverage," he said.

Patents

Apple Wins Patent For Dual-Display MacBook With Virtual Keyboard, Wireless Charging Capabilities (9to5mac.com) 69

The US Patent and Trademark Office has granted a patent to Apple for a dual-display MacBook with a virtual keyboard replacing the traditional keyboard and with the ability to wirelessly charge an iPhone. 9to5Mac reports: As reported by Patently Apple, this patent was submitted three years ago, and only now has Apple won it. With this patent, the company could take a radical path and get rid of a physical keyboard. The interesting thing about this application is that while rumors suggest that Apple will remove the only touchable interface on the MacBook Pro, the Touch Bar, this patent imagines a MacBook with no physical keyboard at all. Patently Apple says this virtual keyboard could be rearranged, swapping the position of the virtual keyboard and trackpad. With a virtual keyboard, Apple could bring gestures from iOS and iPadOS as well, such as pinch, zoom, slide to select, and more. In the patent, Apple says this MacBook includes biometric sensors, which we could interpret as Face ID, fingerprint sensors (aka Touch ID), and a wireless charger, which would be in the left down corner of the notebook.
Movies

Disney Fires Back Against Scarlett Johansson's Black Widow Lawsuit (theverge.com) 153

Disney has filed a motion to have Scarlett Johansson's lawsuit against the company moved to private arbitration, the latest in the ongoing saga of her complaint against the company over Black Widow's streaming release. The Verge reports: Disney's lawyers filed the motion Friday in Los Angeles Superior Court on the grounds that Periwinkle Entertainment, which negotiated her deal, agreed that any claims related to her role in the Marvel film would be handled in confidential arbitration. But the motion also took several swipes at Johansson's complaint that argued Marvel, compelled by its parent company Disney, breached an agreement when Black Widow debuted on Disney Plus through Premier Access the same day that it premiered in theaters. The Hollywood Reporter earlier reported the motion. Johansson's complaint argued that the film's hybrid release cut into her potential earnings, as a simultaneous streaming release hampered the film's box office permanence and therefore impacted her bonuses. At issue is whether the film should have debuted as a theatrical exclusive. But according to Disney's motion, Periwinkle's contract with Marvel "does not mandate theatrical distribution -- let alone require that any such distribution be exclusive."

Furthermore, the motion states, the contract stated that any theatrical obligations would be met with showings on "no less than 1,500 screens." The motion stated the film in fact debuted on more than 9,600 scenes in the US and 30,000-plus screens worldwide. Additionally, Disney's lawyers also took issue with Johansson's claim that she'd lost earnings under the hybrid release model -- though it's still unclear what specifically was promised. Furthermore, the motion states, the contract stated that any theatrical obligations would be met with showings on "no less than 1,500 screens." The motion stated the film in fact debuted on more than 9,600 scenes in the US and 30,000-plus screens worldwide. Additionally, Disney's lawyers also took issue with Johansson's claim that she'd lost earnings under the hybrid release model -- though it's still unclear what specifically was promised.

Disney also provided updated figures on Black Window's performance, showing that it's continued to bring in big figures at both the box office and through early access rentals. As of August 15th, Black Widow has raked in more than $367 million in box office receipts worldwide and more than $125 million in streaming and download receipts, the motion stated, offering seldom-shared figures about the success of a hybrid release in both theaters as well as on a streaming service itself. Accounting for the $55 million the film pulled in on Premier Access and the $80 million in domestic box office receipts during its opening weekend, Black Widow's numbers surpassed the opening weekend figures of other Marvel films released pre-pandemic, the company argued, including Ant-Man and the Wasp and Guardians of the Galaxy. Disney's lawyers revealed in the motion that it served Periwinkle a demand for private arbitration on August 10th, a little over a week after Johansson's initial complaint was filed. The motion stated Periwinkle had yet to respond. Disney also reiterated its previous position that the complaint had "no merit."
In a statement cited by The Hollywood Reporter, Johansson's attorney John Berlinski said that Disney "knows that Marvel's promises to give Black Widow a typical theatrical release "like its other films' had everything to do with guaranteeing that Disney wouldn't cannibalize box office receipts in order to boost Disney+ subscriptions. Yet that is exactly what happened -- and we look forward to presenting the overwhelming evidence that proves it."
Privacy

Apple Has Been CSAM Scanning Your iCloud Mail Since 2019 (9to5mac.com) 52

According to 9to5Mac, Apple has confirmed that it's already been scanning iCloud Mail for Child Sexual Abuse Material (CSAM), and has been doing so since 2019. It has not, however, been scanning iCloud Photos or iCloud backups, which sent the internet into a frenzy when it announced its intents to begin doing so. From the report: The clarification followed me querying a rather odd statement by the company's anti-fraud chief [Eric Friedman]: that Apple was "the greatest platform for distributing child porn." That immediately raised the question: If the company wasn't scanning iCloud photos, how could it know this? [...] Apple confirmed to me that it has been scanning outgoing and incoming iCloud Mail for CSAM attachments since 2019. Email is not encrypted, so scanning attachments as mail passes through Apple servers would be a trivial task. Apple also indicated that it was doing some limited scanning of other data, but would not tell me what that was, except to suggest that it was on a tiny scale. It did tell me that the "other data" does not include iCloud backups.

Although Friedman's statement sounds definitive -- like it's based on hard data -- it's now looking likely that it wasn't. It's our understanding that the total number of reports Apple makes to CSAM each year is measured in the hundreds, meaning that email scanning would not provide any kind of evidence of a large-scale problem on Apple servers. The explanation probably lays in the fact that other cloud services were scanning photos for CSAM, and Apple wasn't. If other services were disabling accounts for uploading CSAM, and iCloud Photos wasn't (because the company wasn't scanning there), then the logical inference would be that more CSAM exists on Apple's platform than anywhere else. Friedman was probably doing nothing more than reaching that conclusion.

Security

38 Million Records Were Exposed Online -- Including Contact-Tracing Info (wired.com) 19

More than a thousand web apps mistakenly exposed 38 million records on the open internet, including data from a number of Covid-19 contact tracing platforms, vaccination sign-ups, job application portals, and employee databases. The data included a range of sensitive information, from people's phone numbers and home addresses to social security numbers and Covid-19 vaccination status. From a report: The incident affected major companies and organizations, including American Airlines, Ford, the transportation and logistics company J.B. Hunt, the Maryland Department of Health, the New York City Municipal Transportation Authority, and New York City public schools. And while the data exposures have since been addressed, they show how one bad configuration setting in a popular platform can have far-reaching consequences.

The exposed data was all stored in Microsoft's Power Apps portal service, a development platform that makes it easy to create web or mobile apps for external use. If you need to spin up a vaccine appointment sign-up site quickly during, say, a pandemic, Power Apps portals can generate both the public-facing site and the data management backend. Beginning in May, researchers from the security firm Upguard began investigating a large number of Power Apps portals that publicly exposed data that should have been private -- including in some Power Apps that Microsoft made for its own purposes. None of the data is known to have been compromised, but the finding is significant still, as it reveals an oversight in the design of Power Apps portals that has since been fixed. In addition to managing internal databases and offering a foundation to develop apps, the Power Apps platform also provides ready-made application programming interfaces to interact with that data. But the Upguard researchers realized that when enabling these APIs, the platform defaulted to making the corresponding data publicly accessible. Enabling privacy settings was a manual process. As a result, many customers misconfigured their apps by leaving the insecure default.

Businesses

The Fierce Legal Battle at the Heart of the Fight Over Reclining Airline Seats (slate.com) 471

An excerpt from Slate's interview with law professor Michael Heller, who has co-written a book called 'Mine!: How the Hidden Rules of Ownership Control Our Lives': Heller: Just to give you a concrete example, there's a guy named James Beach who was flying from Boston to Denver, and he had actually a little plastic clamp called a Knee Defender, which you can buy online. It's really very effective. You stick it on the seat in front of you, on the little tray table, and it keeps the seat in front of you from leaning back. On this particular flight, the woman in front of him tried to lean back. She couldn't; she realized what was wrong. She asked him to take them off. He didn't comply. She turned around and threw her water at him. The pilot did an emergency landing right away. They were taken off the flight. The plane went on to Denver an hour and 38 minutes late.

But those little Knee Defenders turn out to reveal a tremendous amount about the ownership conflicts that are all through our lives. The woman in front is saying, "That space behind my seat, it's mine, because the little button reclines the seat." And the guy behind, like the kids in the playground, he's saying, "No, it was mine. I had it first, for my laptop," or "I possessed it first with my knees." So that wedge of space is an ownership battle, it turns out, between attachment and possession and first-in-time.

When I talk to audiences about that conflict, I always poll them, and it's amazing to me that invariably half say the person in front is in the right, and half say the person in back is in the right. What's most amazing is how each side is just amazed that anybody else could have a different view. It feels and looks and seems so obvious, what's mine, the same way it is to toddlers on a playground. But that little conflict on the airplane seat is not just an accident, it turns out. It's deliberately engineered by the airlines so they can sell that same space twice. Most of us are just polite; we try to work it out, and that's true in all of the ownership conflicts we go through throughout our day, throughout our lives, in the Starbucks line, to line up at Disney World.

Anywhere that we're trying to make something mine, our experience is being engineered and designed by some owner to shape our behavior. And on the airplane seat, the design is to get us to fight with each other instead of being mad at the airlines, to not realize that they're selling that same space twice. And what they're using is one of the most advanced tools of ownership design that Jim and I have uncovered in doing this work, which is what we call strategic ambiguity. Ownership is ambiguous a lot more often than people realize. And that ambiguity is really valuable, in this case to the airlines.

The Courts

Court Rules Govt Officials' Internet Browsing Histories Are Not Public Records (reason.com) 67

Law professor and legal commentator Jonathan H. Adler shares an update about a nonprofit group advocating for accountable government: The Cause of Action Institute sought to obtain the internet browsing histories of several government officials, including the Secretary of Agriculture and Director of the Office of Management and Budget, under the Freedom of Information Act (FOIA). A district court rejected their claim, concluding that browsing histories are not agency records under FOIA. Yesterday a panel of the U.S. Court of Appeals for the D.C. Circuit agreed.

In Cause of Action Institute v. OMB, Judge Rao (joined by Judges Srinivasan and Sentelle) agreed with the district court that federal agencies do not exercise the requisite degree of control over internet browsing histories for the histories to constitute agency records subject to FOIA disclosure. As Judge Rao explained, the "agencies' retention and access policies for browsing histories, along with the fact they did not use any of the officials' browsing histories for any reason, lead to the conclusion that these documents are not agency records."

Cellphones

Smartphone Company Alleged To Be a Scam Defrauding 300 Investors of $10 Million (pcmag.com) 23

In a 2015 video, PCMag's lead mobile analyst Sascha Segan showed off "One of the coolest phones at this year's CES."

He's now written an article titled "How I Got Suckered by an (Alleged) $10M Phone Scam. The biggest mobile-phone mystery of the 2010s is finally coming to an ignominious end, as yesterday the U.S. attorney for Utah charged Chad Sayers, founder of entirely notional mobile phone firm Saygus, with conducting a $10 million fraud scheme. Saygus "had" a series of "phones" from 2009-2016 that existed as prototypes that the company took on trade shows and to press tours. There was never any real evidence of production runs. The U.S. Attorney now claims Sayers and associated took $10 million in investor money and lived on it without ever really planning to release a product. (I learned this via David Ruddock....)

The phone kept just...not happening. Sayers' genius was that he produced just enough prototypes to show off and kept them in a constant state of pre-sale... "DEFENDANT failed to disclose that device certification with Verizon expired in 2013 and was never renewed," the Department of Justice notes. A new version of the phone then popped up again in 2015, this one supposedly covered in Kevlar with 320GB of storage. Sayers flogged that prototype until early 2016, at which point he said it was coming "next month."

The Department of Justice says: "Between April 7, 2015 and January 10, 2017, DEFENDANT made at least 26 public statements on Twitter that its phone would be shipping 'this month,' 'this week,' or was otherwise launching, when in fact, it has never launched...."

Sayers kept going on press tours and buying expensive trade-show booths with prototypes of phones that would never hit the market, drumming up enough gullible mainstream press coverage (myself included) to presumably attract a continual stream of investors with his claim of being the next big thing.

AI

AI-Powered Tech Put a 65-Year-Old in Jail For Almost a Year Despite 'Insufficient Evidence' (apnews.com) 98

"ShotSpotter" is an AI-powered tool that claims it can detect the sound of gunshots. To install it can cost up to $95,000 per square mile — every year — reports the Associated Press.

There's just one problem. "The algorithm that analyzes sounds to distinguish gunshots from other noises has never been peer reviewed by outside academics or experts." "The concern about ShotSpotter being used as direct evidence is that there are simply no studies out there to establish the validity or the reliability of the technology. Nothing," said Tania Brief, a staff attorney at The Innocence Project, a nonprofit that seeks to reverse wrongful convictions.

A 2011 study commissioned by the company found that dumpsters, trucks, motorcycles, helicopters, fireworks, construction, trash pickup and church bells have all triggered false positive alerts, mistaking these sounds for gunshots. ShotSpotter CEO Ralph Clark said the company is constantly improving its audio classifications, but the system still logs a small percentage of false positives. In the past, these false alerts — and lack of alerts — have prompted cities from Charlotte, North Carolina, to San Antonio, Texas, to end their ShotSpotter contracts, the AP found.

And the potential for problems isn't just hypothetical. Just ask 65-year-old Michael Williams: Williams was jailed last August, accused of killing a young man from the neighborhood who asked him for a ride during a night of unrest over police brutality in May... "I kept trying to figure out, how can they get away with using the technology like that against me?" said Williams, speaking publicly for the first time about his ordeal. "That's not fair." Williams sat behind bars for nearly a year before a judge dismissed the case against him last month at the request of prosecutors, who said they had insufficient evidence.

Williams' experience highlights the real-world impacts of society's growing reliance on algorithms to help make consequential decisions about many aspects of public life... ShotSpotter evidence has increasingly been admitted in court cases around the country, now totaling some 200. ShotSpotter's website says it's "a leader in precision policing technology solutions" that helps stop gun violence by using "sensors, algorithms and artificial intelligence" to classify 14 million sounds in its proprietary database as gunshots or something else. But an Associated Press investigation, based on a review of thousands of internal documents, emails, presentations and confidential contracts, along with interviews with dozens of public defenders in communities where ShotSpotter has been deployed, has identified a number of serious flaws in using ShotSpotter as evidentiary support for prosecutors. AP's investigation found the system can miss live gunfire right under its microphones, or misclassify the sounds of fireworks or cars backfiring as gunshots.

Forensic reports prepared by ShotSpotter's employees have been used in court to improperly claim that a defendant shot at police, or provide questionable counts of the number of shots allegedly fired by defendants. Judges in a number of cases have thrown out the evidence... The company's methods for identifying gunshots aren't always guided solely by the technology. ShotSpotter employees can, and often do, change the source of sounds picked up by its sensors after listening to audio recordings, introducing the possibility of human bias into the gunshot detection algorithm. Employees can and do modify the location or number of shots fired at the request of police, according to court records. And in the past, city dispatchers or police themselves could also make some of these changes.

Three more eye-popping details from the AP's 4,000-word exposé
  • "One study published in April in the peer-reviewed Journal of Urban Health examined ShotSpotter in 68 large, metropolitan counties from 1999 to 2016, the largest review to date. It found that the technology didn't reduce gun violence or increase community safety..."
  • "Forensic tools such as DNA and ballistics evidence used by prosecutors have had their methodologies examined in painstaking detail for decades, but ShotSpotter claims its software is proprietary, and won't release its algorithm..."
  • "In 2018, it acquired a predictive policing company called HunchLab, which integrates its AI models with ShotSpotter's gunshot detection data to purportedly predict crime before it happens."

The Almighty Buck

$97 Million Stolen From Japanese Crypto Exchange (fortune.com) 44

"Hackers have drained Japanese cryptocurrency exchange Liquid of $97 million worth of Ethereum and other digital coins," reports Forbes: The company, in a tweet posted late Thursday, announced the compromise and said it is moving assets that were not affected into more secure "cold wallet" storage. The company has also suspended deposits and withdrawals... Liquid did not put a dollar figure on the amount, but blockchain analytics company Elliptic said its analysis estimates the losses at about $97 million...

Of that, $45 million were in Ethereum tokens, which are being converted into Ether, preventing the hacker from having those assets frozen. Other cryptos taken in the heist include Bitcoin, XRP, and stablecoins.

The Courts

Court Rules California's 'Gig Worker' Initiative is Unconstitutional (yahoo.com) 205

Slashdot reader phalse phace tipped us off to a breaking story. Reuters reports: A California judge on Friday ruled that a 2020 ballot measure that exempted ride-share and food delivery drivers from a state labor law is unconstitutional as it infringed on the legislature's power to set standards at the workplace...which makes the entire ballot measure "unenforceable", Alameda County Superior Court Judge Frank Roesch wrote in the ruling.

Gig economy companies including Uber, Lyft, Doordash and Instacart were pushing to keep drivers' independent contractor status, albeit with additional benefits.

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