waderoush writes "Engineers and hackers don't think much about tax policy, but there's a bizarre development in California that they should know about, since it could reduce the pool of angel-investment money available for tech startups. Under a tax break available since the 1990s, startup founders and other investors in California were allowed to exclude or defer their gains when they sold stock in California-based small businesses. Last year, a California appeals court ruled that the tax break was unconstitutional, since it discriminated against investors in out-of-state companies. Now the Franchise Tax Board, California's version of the IRS, has issued a notice saying how it intends to implement the ruling — and it's a doozie. Not only is the tax break gone, but anyone who claimed an exclusion or deferral on the sale of small-business stock since 2008 is about to get a big retroactive tax bill. Investors, entrepreneurs, and even the plaintiffs in the original lawsuit are up in arms about the FTB's notice, saying that it goes beyond the court's intent and that it will drive investors out of the state. This Xconomy article takes an in-depth look at the history of the court case, the FTB's ruling, and the reaction in the technology and investing communities."
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An anonymous reader writes "The Government of Antigua is planning to launch a website selling movies, music and software, without paying U.S. copyright holders. The Caribbean island is taking the unprecedented step because the United States refuses to lift a trade 'blockade' preventing the island from offering Internet gambling services, despite several WTO decisions in Antigua's favor. The country now hopes to recoup some of the lost income through a WTO approved 'warez' site."
twoheadedboy writes "Two members of the Anonymous hacking collective have been handed a total of 25 months in prison. Christopher Weatherhead, a 22-year-old who went under the pseudonym Nerdo, received the most severe punishment — 18 months in prison. Another member, Ashley Rhodes, was handed seven months, whilst Peter Gibson was given a six-month suspended sentence. They were convicted for hitting a variety of websites, including those belonging to PayPal and MasterCard."
Sockatume writes "The UK's information protection authority, the ICO, has fined Sony for failing to adequately secure the information of PlayStation Network users. The investigation was triggered by a 2011 security breach, during which personally identifying information (including password hashes) was recovered from a Sony database where it had been stored without encryption. In the ICO's view Sony's security measures were inadequate, and the attack could have been prevented. The £250,000 (ca. $400,000) fine, the largest the ICO has ever imposed, is equivalent to a few pennies per affected user. Sony disagrees with the ICO's decision and intends to appeal."
Virtucon writes "Ars technica has an interesting article on how Google is handling requests from law enforcement for access to Gmail accounts. With the recent Petraeus scandal where no criminal conduct was found, it seems that they're re-enforcing their policies and standing up for their users. 'In order to compel us to produce content in Gmail we require an ECPA search warrant,' said Chris Gaither, Google spokesperson. 'If they come for registration information, that's one thing, but if they ask for content of email that's another thing.'"
netbuzz writes "Spurred by the mark holder's cease and desist letter to Reddit's subreddit r/gaymer, the Electronic Frontier Foundation today officially petitioned the U.S. Patent and Trademark Office to rescind its grant of a trademark registration on the word "gaymer". 'This registration should never have been granted,' said EFF Intellectual Property Director Corynne McSherry. 'Gaymer is a common term that refers to members of this vibrant gaming community, and we are happy to help them fight back and make sure the term goes back to the public domain where it belongs.'"
An anonymous reader writes "Internet activists in Finland, upset with the country's strict copyright laws, are ready to take advantage of the country's promise to vote on any citizen-proposed bill that reaches 50,000 signatures. Digital rights group Common Sense in Copyright has proposed sweeping changes to Finland's Lex Karpela, a 2006 amendment to the Finnish copyright law that more firmly criminalized digital piracy. Under it, 'countless youngsters have been found guilty of copyright crimes and sentenced to pay thousands, in some cases hundreds of thousands, of euros in punitive damages to the copyright organizations.' The proposal to fix copyright is the best-rated and most-commented petition on the Open Ministry site."
Titus Andronicus writes "fuse-exfat, a GPLv3 implementation of the exFAT file system for Linux, FreeBSD, and OS X, has reached 1.0 status, according to an announcement from Andrew Nayenko, the primary developer. exFAT is a file system designed for sneaker-netting terabyte-scale files and groups of files on flash drives and memory cards between and among Windows, OS X, and consumer electronics devices. It was introduced by Microsoft in late 2006. Will fuse-exfat cut into Microsoft's juicy exFAT licensing revenue? Will Microsoft litigate fuse-exfat's developers and users into patent oblivion? Will there be a DKMS dynamic kernel module version of the software, similar to the ZFS on Linux project? All that remains to be seen. ReadWrite, The H, and Phoronix cover the story."
An anonymous reader writes "Yesterday in a post at the White House website, the U.S. government announced that June 1-2 would be the National Day of Civic Hacking. 'Civic Hacking Day is an opportunity for software developers, technologists, and entrepreneurs to unleash their can-do American spirit by collaboratively harnessing publicly-released data and code to create innovative solutions for problems that affect Americans.' It will be a joint project with Random Hacks of Kindness, Code for America. Activities are being planned in many cities across the country, and you can also sign up to host your own event. It's nice to see the government use the word 'hacking' in a positive way, since most uses of the term these days involve malicious activity."
judgecorp writes "The latest Google Transparency Report, which tallies the number of times personal data is requested from Google, shows that governments are becoming more inquisitive than ever. Requests for user data have gone up by 70 percent since Google started these reports in 2009 — but the report shows Google is getting better at saying no: in 2009 it complied — fully or partially — with 76 percent of requests, and that figure is now down to 66 percent." This report is the first to feature requests broken down by the legal process used.
Curseyoukhan writes with a skeptical perspective on the U.S. Cyberwar posturing. From the article: "The first shot was probably the release of Stuxnet sometime during or before 2009. Even though no one has officially claimed responsibility everyone knows who was behind it. Stuxnet hit with a bang and did a whole lot of damage to Iran's uranium-enrichment capabilities. We followed up Stuxnet with Flame — the Ebola virus of spyware. What did the Iranians fire back with? A series of massive, on-going and ineffective DDoS attacks on American banks. This is a disproportionate response but not in the way military experts usually mean that phrase. It's the equivalent of someone stealing your car and you throwing an ever-increasing number of eggs at his house in response. It's fascinating that Iran continues to do nothing more despite the fact that U.S. critical infrastructure currently has the defensive posture of a dog waiting for a belly rub. Keep that in mind the next time you hear that a 'cyber Pearl Harbor' is imminent."
theodp writes "There's a funny thing about the estimated $1.7 trillion that American companies say they have indefinitely invested overseas,' reports the WSJ's Kate Linebaugh (reg. or the old Google trick). 'A lot of it is actually sitting right here at home.' And if tech companies like Google and Microsoft want to keep more than three-quarters of the cash owned by their foreign subsidiaries at U.S. banks, held in U.S. dollars or parked in U.S. government and corporate securities, Linebaugh explains, this money is still overseas in the eyes of the IRS and isn't taxed as long as it doesn't flow back to the U.S. parent company. Helping corporations avoid the need to tap their foreign-held cash are low interest rates at home, which have allowed U.S. companies to borrow cheaply. Oracle, for instance, raised $5 billion last year, paying an interest rate roughly two-thirds of a percentage point above the low post-crash Treasury yield, about 2.5% at the time (by contrast, grad students and parents pay 6.8%-7.9% for Federal student loans). Were the funds it manages to keep in the hands of its foreign subsidiaries brought home and subjected to U.S. income tax, Oracle estimated it could owe Uncle Sam about $6.3 billion."
An anonymous reader writes with more news about the no-poach agreements that seemed to plague tech companies. From the article: "Steve Jobs threatened patent litigation if Palm wouldn't agree to stop hiring Apple employees, says former Palm CEO Edward Colligan in a statement dated August 7th, 2012. The allegation is backed up by a trove of recently-released evidence that shows just how deeply Silicon Valley's no-hire agreements pervaded in the mid-2000s. Apple, Google, Intel, and others are the focus of a civil lawsuit into the 'gentleman's agreements,' in which affected employees are fighting for class action status and damages from resulting lost wages, potentially reaching into the hundreds of millions of dollars."
TrueSatan writes "Andrew Auernheimer doesn't appear suicidal, no thanks to U.S. prosecutors, yet he has been under attack for his act of altering an API URL that revealed a set of user data and posting details of same. 'In June of 2010 there was an AT&T webserver on the open Internet. There was an API on this server, a URL with a number at the end. If you incremented this number, you saw the next iPad 3G user email address. I thought it was egregiously negligent for AT&T to be publishing a complete target list of iPad 3G owners, and I took a sample of the API output to a journalist at Gawker.' Auernheimer has been under investigation from that point onward, with restrictions on his freedom and ability to earn a living that are grossly disproportionate to any perceived crime. This is just as much a case of legislative overreach and the unfettered power of prosecutors as was Swartz's case."
An anonymous reader writes "As first-person shooters have evolved, they've transitioned from using Nazis as the bad guys to more modern organizations, such as the Taliban. Two recent games, Call of Duty: Black Ops II and Medal of Honor: Warfighter, have both shown the country of Pakistan in a very negative light, and now shopkeepers in the country are beginning to boycott the games. 'Saleem Memon, president of the All Pakistan CD, DVD, Audio Casette Traders and Manufacturers Association, said he had written to members ordering them not to stock the controversial games after receiving dozens of complaints. ... The latest installment of the Medal of Honor series opens with American Navy Seals coming ashore in Karachi docks on a mission to destroy a black market arms shipment. But when their detonation sets off a second, bigger explosion they realize they have stumbled on a much bigger terrorist plot, sparking a global manhunt. A chaotic car chase through the city follows amid warnings that the ISI — Pakistan's intelligence agency — is on the way. Mr. Memon added there was a danger children would be brainwashed into thinking foreign agents were at war inside Karachi, possibly leading them into the arms of militants. "These games show a misleading idea of what is happening in the city. You don't get the CIA all the way through Grand Theft Auto," he said.'"