Security

SEC Discloses Hackers Penetrated EDGAR, Profited in Trading (usatoday.com) 48

Chris Woodyard, writing for USA Today: Hackers made their way into the Security and Exchange Commission's EDGAR electronic filing system last year, retrieving private data that appear to have resulted in "an illicit gain through trading," the agency said. It was only in August that the commission learned that hackers may have been able to use their illegal activities to make ill-gotten gains through market trading, said Chairman Jay Clayton in a lengthy statement posted on the SEC's website. EDGAR, which stands for Electronic Data Gathering Analysis and Retrieval, is considered critical to the SEC's operation and the ability of investors to see the electronic filings of companies and markets. The SEC says about 50 million documents are viewed through EDGAR on a typical day. It receives about 1.7 million filings a year.
Microsoft

Bill Gates Says He's Sorry About Control-Alt-Delete (qz.com) 315

An anonymous reader quotes a report from Quartz: At the Bloomberg Global Business Forum today, Carlyle Group co-founder and CEO David Rubenstein asked Microsoft founder Bill Gates to account for one of the most baffling questions of the digital era: Why does it take three fingers to lock or log in to a PC, and why did Gates ever think that was a good idea? Grimacing slightly, Gates deflected responsibility for the crtl-alt-delete key command, saying, "clearly, the people involved should have put another key on to make that work." Rubenstein pressed him: does he regret the decision? "You can't go back and change the small things in your life without putting the other things at risk," Gates said. But: "Sure. If I could make one small edit I would make that a single key operation." Gates has made the confession before. In 2013, he blamed IBM for the issue, saying, "The guy who did the IBM keyboard design didn't want to give us our single button."
Businesses

CEO Catches Stranger After Hours, Prompting Espionage Charges (wsj.com) 234

An anonymous reader shares a report: Samuel Straface thought he was the last one out the door one recent evening at the medical-technology startup he leads in suburban Boston. But as he passed a glass-walled conference room on the second floor, Dr. Straface says he saw a man he didn't recognize, sitting by himself in front of two open laptops and a tablet device. He continued walking a few steps toward the exit, but then, feeling uneasy, he turned back (Editor's note: the submitted link could be paywalled; alternative source). The man was later identified as Dong Liu, a dual citizen of China and Canada. And his after-hours computing at Medrobotics is at the center of an economic-espionage case brought by U.S. prosecutors. Mr. Liu is in federal custody, charged with attempting to steal trade secrets and trying to gain unauthorized access to the company's computer system, prosecutors said. If convicted of both charges, he could face a maximum sentence of 15 years in prison. "Mr. Liu adamantly asserts his innocence and we fully expect he'll be exonerated after a careful review of the evidence," said Robert Goldstein, Mr. Liu's defense attorney. The U.S. attorney's office for the District of Massachusetts declined to comment on the case beyond details in court records. Before his arrest, police said Mr. Liu told them he was there to discuss doing business with the company -- but Dr. Straface says no one had scheduled a meeting with Mr. Liu.
Businesses

Slashdot Asks: Why Does Google Want To Purchase HTC? (bloomberg.com) 101

Rumor has it Google is planning to purchase HTC -- or at least a portion of it. The speculation of this has been doing rounds for weeks now, and it reached a new high today after HTC said its stock will stop trading from Thursday, as it prepares to make a "major announcement" tomorrow. Bloomberg reported today: Alphabet's Google is close to acquiring assets from Taiwan's HTC, according to a person familiar with the situation, in a bid to bolster the internet giant's nascent hardware business. HTC, once ranked among the world's top smartphone makers, is holding a town hall meeting Thursday, according to tech website Venture Beat, which cited a copy of an internal invitation. The shares will also be suspended from trading as of Sept. 21 due to a pending announcement, according to the Taiwan stock exchange. Of course Google has made similar moves in the past. It previously owned Motorola for a brief period of time, but that acquisition didn't materialize much. The company has however, since re-hired the Motorola chief it once had, Rick Osterloh, and founded a separate hardware team under his stewardship. Claude Zellweger, the one-time chief designer of HTC Vive, is also now at Google, working on that company's Daydream virtual reality system.

What reasons could Google have to purchase HTC? Share your thoughts in the comments section below.
China

China Orders Bitcoin Exchanges In Capital City To Close (bbc.com) 71

An anonymous reader quotes a report from BBC: China is moving forward with plans to shut down Bitcoin exchanges in the country, starting with trading platforms in key cities. All Bitcoin exchanges in Beijing and Shanghai have been ordered to submit plans for winding down their operations by 20 September. The move follows the Chinese central bank's decision to ban initial coin offerings in early September. Top exchange BTCC said it would stop trading at the end of the month. Chinese authorities decided to ban digital currencies as part of a plan for reducing the country's financial risks. All exchanges are required to send regulators a detailed "risk-free" plan of how they intend to exit the market before 18:30 local time on Wednesday 20 September. The regulator also ordered the exchanges to submit DVDs containing all user trading and holding data to the local authorities. Shareholders, controllers, executives, and core financial and technical staff of exchanges are also required to remain in Beijing during the shutdown and to co-operate fully with authorities.
AI

You Might Use AI, But That Doesn't Mean You're an AI Company, Says a Founder of Google Brain (venturebeat.com) 73

As AI space gets crowded, there are a slew of businesses -- new and old -- looking to market themselves as "AI companies." But according to Andrew Ng, a founder of the Google Brain team and a luminary in the space, there's more to being an AI company than just using a neural net. From a report: In his view, while it's possible to create a website for a shopping mall, that doesn't make it an internet company. In the same way, just implementing basic machine learning does not make a standard technology company (or any other business) an AI company. "You're not an AI company because there are a few people using a few neural networks somewhere," Ng said. "It's much deeper than that." First and foremost, AI companies are strategic about their acquisition of data, which is used as the fuel for machine learning systems. Once an AI company has acquired the data, Ng said that they tend to store it in centralized warehouses for processing. Most enterprises have their information spread across multiple different warehouses, and collating that data for machine learning can prove difficult. AI companies also implement modern development practices, like frequent deployments. That means it's possible to change the product and learn from the changes.
The Internet

Internet Is Having a Midlife Crisis (bbc.com) 170

An anonymous reader shares a report: The rise of cyber-bullying and monopolistic business practices has damaged trust in the internet, pioneering entrepreneur Baroness Lane-Fox has told the BBC. The Lastminute.com founder also called for a "shared set of principles" to make the web happier and safer. She said the internet had done much good over the last 30 years. But she said too many people had missed out on the benefits and it was time to "take a step back". "The web has become embedded in our lives over the last three decades but I think it's reached an inflexion point, or a sort of midlife crisis," she told Radio 4's Today programme. Baroness Lane-Fox co-founded travel booking site Lastminute.com in 1998 before going on to sell the firm for 577m pound seven years later. She described the early days of the internet as being "full of energy and excitement," and akin to the "wild West". "There was this feeling that suddenly, with this access to this new technology, you could start a business from anywhere," she said. However, she said that while technology had become a hugely important sector of the UK economy, it had not fulfilled its early potential.
The Almighty Buck

Cities Are Competing to Give Amazon the 'Mother of All Civic Giveaways' (vice.com) 275

Louise Matsakis, reporting for Motherboard: Amazon announced earlier this month that it was looking to build a second headquarters outside Seattle, where more than 40,000 of the company's more than 380,000 employees currently work. The tech giant is searching for a locale with at least a million people, a diverse population, and excellent schools, among other qualifications. It gave municipalities six weeks -- until October 19 -- to submit a proposal to be chosen. Local governments in more than 100 American and Canadian cities, including places like San Diego, Chicago, Dallas, and Detroit, quickly scrambled to outline why they should be home to Amazon's new corporate office, which is expected to employ up to 50,000 workers. The mayor of Washington D.C., Muriel Bowser, even made a scripted video for Amazon explaining why the capital should be picked. It featured an Echo, Amazon's smart speaker. But experts who have studied Amazon's business practices say having one of the most tax-allergic corporations in the world come to your hometown might not actually be a good thing.
Google

Jeweler Forged Judge's Signature To Force Google To Kill Negative Reviews (thedailybeast.com) 52

A sapphire salesman is facing jail time for forging a judge's signature in a case involving Google. Kelly Weill from The Daily Beast reports: Michael Arnstein is the third-generation owner of the Natural Sapphire Company, a Manhattan-based jewelry business. After a falling-out with a former business partner, Arnstein's company amassed dozens of negative reviews, which featured prominently in the Natural Sapphire Company's Google search results. Arnstein sued the former business partner in 2011, accusing him of writing defamatory negative reviews, and a judge ordered the partner to delete 54 of the negative comments. But some negative reviews remained, even after the court order. So Arnstein copied the judge's signature and forged new court orders of his own, demanding that Google scrub negative reviews from his company's search results, Arnstein admitted in a guilty plea on Friday.
Privacy

Illinois Tests A Blockchain-Based Birth Registry/ID System (illinoisblockchain.tech) 151

An anonymous reader quotes Government Technology: The state of Illinois, which has six blockchain pilots underway, will partner with Utah-based Evernym for a birth registry pilot meant to individualize and secure identities... The endeavor, one of six distinct blockchain explorations Illinois began last summer with a working group, is expected to utilize the Sovrin Foundation's publicly available distributed identity ledger and expand upon accomplishments of the W3C Verifiable Claims Task Force, the state said... Recognizing that identity -- and, now, digital identity -- begin at birth, the state will explore using these technologies to create "a secure 'self-sovereign' identity for Illinois citizens during the birth registration process," it said in the announcement.
More from the Illinois Blockchain Initiative site: Self-sovereign identity refers to a digital identity that remains entirely under the individual's control. A self-sovereign identity can be efficiently and securely validated by entities who require it, free from reliance on a centralized repository. Jennifer O'Rourke, Blockchain Business Liaison for the Illinois Blockchain Initiative commented, "To structurally address the many issues surrounding digital identity, we felt it was important to develop a framework that examines identity from its inception at child birth... Identity is not only foundational to nearly every government service, but is the basis for trust and legitimacy in the public sector."

In the proposed framework, government agencies will verify birth registration information and then cryptographically sign identity attributes such as legal name, date of birth, sex or blood type, creating what are called "verifiable claims" or attributes. Permission to view or share each of these government-verified claims is stored on the tamper-proof distributed ledger protocol in the form of a decentralized identifier... This minimizes the need for entities to establish, maintain and rely upon their own proprietary databases of identity information.

Evernym's "Chief Trust Officer" sees the program as "a major contribution to the larger effort of solving the online identity problem."
Space

Idaho Wants To Establish America's First 'Dark Sky Preserve' (idahostatesman.com) 136

schwit1 shares a story from the AP: Tourists heading to central Idaho will be in the dark if local officials get their way. The first International Dark Sky Reserve in the United States would fill a chunk of the state's sparsely populated region that contains night skies so pristine that interstellar dust clouds are visible in the Milky Way... Supporters say excess artificial light causes sleeping problems for people and disrupts nocturnal wildlife and that a dark sky can solve those problems, boost home values and draw tourists. Opposition to dark sky measures elsewhere in the U.S. have come from the outdoor advertising industry and those against additional government regulations.

Researchers say 80 percent of North Americans live in areas where light pollution blots out the night sky. Central Idaho contains one of the few places in the contiguous United States large enough and dark enough to attain reserve status, Barentine said. Only 11 such reserves exist in the world... The proposed Idaho reserve is mainly land managed by the U.S. Forest Service and contains the wilderness of the Sawtooth National Recreation Area... Leaders in the cities of Ketchum and Sun Valley, the tiny mountain town of Stanley, other local and federal officials, and a conservation group have been working for several years to apply this fall to designate 1,400 square miles (3,600 square kilometers) as a reserve. A final decision by the association would come about 10 weeks after the application is submitted.

Open Source

Ask Slashdot: What's the Best Business Model for An Open Source Developer? 84

An anonymous reader writes: I'm interested in creating really good open source software. However, unless programmers have an incentive to work on their projects for long periods, many projects are be abandoned.

There's many business models surrounding free/libre open source software: support (pay for help, or additional features), premium (pay for more advanced software), hosting (pay for using the software on someone else's servers), donation (two versions of the same app, pay because you want to be nice to the developers), etc. Not all of those business models align the interests of the developer and the customer/user in the same way: support-based models for example, benefit developers who introduce certain mistakes or delay introducing features. (In the short term. In the long run, it opens a door for competitors...) Which of those align the interests of both?

The original submission also asks if any of these models are "morally questionable" -- and if there's other business models that have proven successful for open source software. Leave your best thoughts in the comments. What's the best business model for an open source developer?
Businesses

Is Online Advertising Worthless? (zerohedge.com) 289

turkeydance shares a story from ZeroHedge: Category 1 storm clouds are gathering over what has traditionally been one of the most lucrative, and perhaps only profitable, sectors to come out of Silicon Valley in decades: online advertising. Two months ago, it was P&G which fired the first shot across the "adtech" bow when not long after it announced it was slashing its digital ad spending because it thought it was not getting the kind of return on investment it desired, it made a striking discovery: "We didn't see a reduction in the growth rate." CFO Jon Moeller said "What that tells me is that that spending that we cut was largely ineffective"...

So fast forward to last week, when during Thursday's Global Retailing Conference organized by Goldman Sachs, Restoration Hardware delightfully colorful CEO, Gary Friedman, divulged the following striking anecdote about the company's online marketing strategy, and the state of online ad spending in general... What Friedman revealed - in brief - was the following: "we've found out that 98% of our business was coming from 22 words. So, wait, we're buying 3,200 words and 98% of the business is coming from 22 words. What are the 22 words? And they said, well, it's the word Restoration Hardware and the 21 ways to spell it wrong, okay?"

Stated simply, the vast, vast majority of online ad spending is wasted, chasing clicks that simply are not there....One wonders how long before all retailers - most of whom are notoriously strapped for revenues and profits courtesy of Amazon - and other "power users" of online advertising, do a similar back of the envelope analysis, and find that they, like RH, are getting a bang for only 2% of their buck?

Government

Trump Blocks China-Backed Takeover of US Chip Maker 'Lattice Semi' (cnn.com) 151

MountainLogic shares a report from CNN: President Trump has stopped the takeover of an American chip maker by a private equity firm with ties to China. The deal, which would have seen China-backed Canyon Bridge Capital Partners acquire Lattice Semiconductors, was blocked over national security concerns. "Today, consistent with the administration's commitment to take all actions necessary to ensure the protection of U.S. national security, the president issued an order prohibiting the acquisition," Treasury Secretary Steven Mnuchin said in a statement Wednesday. The national security risk included "the potential transfer of intellectual property" to the Chinese-backed company and the "Chinese government's role in supporting this transaction," according to Mnuchin's statement. Those are sensitive matters: the Trump administration launched an investigation last month into whether China is unfairly getting hold of American technology and intellectual property. The Committee on Foreign Investment in the U.S., which reviews deals that could result in a foreign entity taking control of an American company, had previously recommended halting the deal. Lattice CEO Darin G. Billerbeck called the outcome "disappointing" and called the proposed acquisition "an excellent deal" for Lattice and for "expanding the opportunity to keep jobs in America." According to CNN, Lattice currently employs 300 people in Oregon -- and Canyon Bridge has committed to adding 350 more if the takeover deal went through.
Advertising

Facebook Enabled Advertisers To Reach 'Jew Haters' (propublica.org) 253

ProPublica is reporting that Facebook "enabled advertisers to direct their pitches to the news feeds of almost 2,300 people who expressed interest in the topics of 'Jew hater,' 'How to burn jews,' or, 'History of why jews ruin the world.'" The organization even went so far as to test these ad categories by paying $30 to target those groups with three "promoted posts" -- in which a ProPublica article or post was displayed in their news feeds. Facebook reportedly approved all three ads within 15 minutes. From the report: After we contacted Facebook, it removed the anti-Semitic categories -- which were created by an algorithm rather than by people -- and said it would explore ways to fix the problem, such as limiting the number of categories available or scrutinizing them before they are displayed to buyers. In all likelihood, the ad categories that we spotted were automatically generated because people had listed those anti-Semitic themes on their Facebook profiles as an interest, an employer or a "field of study." Facebook's algorithm automatically transforms people's declared interests into advertising categories. [ProPublica provides a screenshot of their ad buying process on the company's advertising portal.]

"There are times where content is surfaced on our platform that violates our standards," said Rob Leathern, product management director at Facebook. "In this case, we've removed the associated targeting fields in question. We know we have more work to do, so we're also building new guardrails in our product and review processes to prevent other issues like this from happening in the future."

Transportation

Hyperloop One Reveals 10 Strongest Potential Hyperloop Routes In the World (techcrunch.com) 142

An anonymous reader quotes a report from TechCrunch: Hyperloop One wants to build a real, working Hyperloop -- but it'll need strong partners to make it a reality, across both industry and government. That's why, in part, it held a global competition requesting proposals for routes around the world. The winners of that competition have now been announced, and the resulting routes span the U.S., the U.K, Mexico, India and Canada. Hyperloop One has assessed each proposal from hundreds of teams who applied from around the world, examining the potential of each from the perspective of infrastructure, technology, regulatory environment and transportation concerns. As a result, it identified the strongest candidates [with four routes in the U.S., two routes in the U.K., one route in Mexico, two routes in India, and one route in Canada.]

The next step for each of these winning teams will be a validation process conducted with Hyperloop One to do some in-depth analysis on each route, establishing things like ridership forecast and building a fully fleshed out business case for each. Hyperloop One will be hosting workshops in each of the above countries to help with this process, and to meet with stakeholders and help establish necessary partnerships. Overall, Hyperloop One points out that these winning teams represent a combined population of almost 150 million people, with routes that would link up 53 urban centers around the world and span a total distance of 4,121 miles).

AMD

French Company Plans To Heat Homes, Offices With AMD Ryzen Pro Processors 181

At its Ryzen Pro event in New York City last month, AMD invited a French company called Qarnot to discuss how they're using Ryzen Pro processors to heat homes and offices for free. The company uses the Q.rad -- a heater that embeds three CPUs as a heat source -- to accomplish this feat. "We reuse the heat they generate to heat homes and offices for free," the company says in a blog post. "Q.rad is connected to the internet and receives in real time workloads from our in-house computing platform."

The idea is that anyone in the world can send heavy workloads over the cloud to a Q.rad and have it render the task and heat a person's home in the process. The two industries that are targeted by Qarnot include movies studios for 3D rendering and VFX, and banks for risk analysis. Qarnot is opting in for Ryzen Pro processors over Intel i7 processors due to the performance gain and heat output. According to Qarnot, they "saw a performance gain of 30-45% compared to the Intel i7." They also report that the Ryzen Pro is "producing the same heat as the equivalent Intel CPUs" they were using -- all while providing twice as many cores.

While it's neat to see a company convert what would otherwise be wasted heat into a useful asset that heats a person's home, it does raise some questions about the security and profitability of their business model. By using Ryzen Pro's processors, OS independent memory encryption is enabled to provide additional security layers to Qarnot's heaters. However, Q.rads are naturally still going to be physically unsecured as they can be in anyone's house.

Further reading: The Mac Observer, TechRepublic
Science

Boffins Fear We Might Be Running Out of Ideas (theregister.co.uk) 356

Innovation, fetishized by Silicon Valley companies and celebrated by business boosters, no longer provides the economic jolt it once did. From a report: In order to maintain Moore's Law -- by which transistor density doubles every two years or so -- it now takes 18 times as many scientists as it did in the 1970s. That means each researcher's output today is 18 times less effective in terms of generating economic value than it was several decades ago. On an annual basis, research productivity is declining at a rate of about 6.8 percent per year in the semiconductor industry. In other words, we're running out of ideas. That's the conclusion of economic researchers from Stanford University and the Massachusetts Institute of Technology. In a paper published this week through the National Bureau of Economic Research, "Are Ideas Getting Harder to Find?", economics professors Nicholas Bloom, Charles Jones, and John Van Reenen, and PhD candidate Michael Webb, defy Betteridge's Law of Headlines by concluding that an idea drought has indeed taken hold. "Across a broad range of case studies ... we find that ideas -- and in particular the exponential growth they imply -- are getting harder and harder to find," the authors declare in their paper.
Movies

Rotten Tomatoes Scores Don't Correlate To Box Office Success or Woes, Research Shows (polygon.com) 106

Depending on who you ask, Rotten Tomatoes is the reason some movies don't perform at the box office. From a report: Countless movie executives, including producers, have told Deadline and the New York Times that the number atop a movie's page on Rotten Tomatoes signifying whether the majority of critics enjoyed or disliked a movie rules the box office. Director Brett Ratner was quoted as saying "I think it's the destruction of our business" while others have called for its demise. According to research conducted by Yves Bergquist, director of the Data & Analytics Project at USC's Entertainment Technology Center, that's not correct. Bergquist collected data from 150 movies this year that made more than $1 million at the box office. Using those Box Office Mojo numbers and comparing them to the critic and audience score on Rotten Tomatoes, Bergquist then "looked at [the] correlation between scores and financial performance" to determine if there was a linear line that could be drawn between low scores and bad box office performance. Or, more simply, did a lower "rotten" rating on Rotten Tomatoes equate to box office woes? The short answer is no, it didn't. Bergquist's findings confirmed that of the 150 movies surveyed, there was only a 12 percent correlation between a movie receiving a bad score and not performing well at the box office. Summer films saw even less of a correlation, with seven percent of lower-scored movies not performing at the box office.
Businesses

Google Rival Yelp Claims Search Giant Broke Promise Made to Regulators (wsj.com) 61

Online-reviews firm Yelp alleged that Google is breaking a promise it made as part of a 2012 regulatory settlement to not scrape content from certain third-party sites including Yelp, escalating its yearslong battle against the search giant. Yelp said in a letter late Sunday to Federal Trade Commission Chairwoman Maureen Ohlhausen that Google is using Yelp photos for local-business listings in its search results, despite Yelp's formal request that Google not pull such content from its site. From a report: As part of a December 2012 settlement to end an FTC investigation into Google, the tech giant agreed to not use content, including photos and user reviews, from third-party sites that opted out of such scraping. Google's commitment lasts through 2017 and applies to a variety of its products, including its local-business listings. "This is a flagrant violation of Google's promises to the FTC, and the FTC should reopen the Google case immediately," said Luther Lowe, Yelp's public-policy chief. Yelp has emerged as a leading critic of Google because the site believes the search giant unfairly uses its influence to stifle competitors.

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