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_Sharp'r_ writes: Stressing jeans used to require 300 to 400 workers with sandpaper all day. Now Levi Strauss does a better job by shooting their new jeans with computer-guided lasers in intricate patterns generated in CAD systems. Along the way, they save water and "will cut the number of chemicals it uses to produce jeans from 1,000 to a few dozen," reports Bloomberg.

The European Union issued internet giants an ultimatum to remove illegal online terrorist content within an hour, or risk facing new EU-wide laws. From a report: The European Commission on Thursday issued a set of recommendations for companies and EU nations that apply to all forms of illegal internet material, "from terrorist content, incitement to hatred and violence, child sexual abuse material, counterfeit products and copyright infringement. Considering that terrorist content is most harmful in the first hours of its appearance online, all companies should remove such content within one hour from its referral as a general rule.â The commission last year called upon social media companies, including Facebook, Twitter and Google owner Alphabet, to develop a common set of tools to detect, block and remove terrorist propaganda and hate speech. Thursday's recommendations aim to "further step up" the work already done by governments and push firms to "redouble their efforts to take illegal content off the web more quickly and efficiently."

An anonymous reader shares a report: On Wednesday, Snap (parent company of messaging service Snapchat) sent employees a survey asking a broad set of questions to understand what they're happy about, what they want to improve, and what they want to say, anonymously, one year after the company's initial public offering. Grievances will be aired. Just last month, the company reported revenue that beat Wall Street's projections for the first time, causing the stock to surge 47 percent. Internally, the picture isn't as celebratory. The year involved a complete rethinking of the advertising business, an exodus of top executives, a broadly critiqued redesign of the Snapchat photo-sharing application and stiff competition from Facebook's Instagram, leaving the shares close to their IPO price. While Snap topped Wall Street's estimates last quarter, employees were told they didn't beat internal goals -- and wouldn't be getting cash bonuses, according to people familiar with the matter.

Snap's internal targets weren't defined for employees, but that wasn't a surprise at a company where Chief Executive Officer Evan Spiegel tightly controls aspects of the business he cares about -- especially the spread of information, said the people, who asked not to be identified discussing internal matters. There is a sense among employees that since going public, Snap has only become more beholden to the one shareholder who matters: Spiegel.

In December, said it would assign more than 10,000 people to moderate content in an attempt to curb its child exploitation problem. Today, Bloomberg reports that those new moderators mistakenly removed several videos and some channels from right-wing, pro-gun video producers and outlets in the midst of a nationwide debate on gun control. From the report: Some YouTube channels recently complained about their accounts being pulled entirely. On Wednesday, the Outline highlighted accounts, including Titus Frost, that were banned from the video site. Frost tweeted on Wednesday that a survivor of the shooting, David Hogg, is an actor. Jerome Corsi of right-wing conspiracy website Infowars said on Tuesday that YouTube had taken down one of his videos and disabled his live stream. Shutting entire channels would have marked a sweeping policy change for YouTube, which typically only removes channels in extreme circumstances and focuses most disciplinary action on specific videos. But YouTube said some content was taken down by mistake. The site didn't address specific cases and it's unclear if it meant to take action on the accounts of Frost and Corsi. "As we work to hire rapidly and ramp up our policy enforcement teams throughout 2018, newer members may misapply some of our policies resulting in mistaken removals," a YouTube spokeswoman wrote in an email. "We're continuing to enforce our existing policies regarding harmful and dangerous content, they have not changed. We'll reinstate any videos that were removed in error."

China is opening a new front in its battle against cryptocurrencies, targeting platforms that allow the nation's investors to trade digital assets on overseas exchanges, Bloomberg reported Tuesday citing people familiar with the matter said. From a report: Regulators are planning to scrutinize the Chinese bank and online-payment accounts of businesses and individuals suspected of facilitating trades on offshore cryptocurrency venues, the people said, asking not to be identified because the information is private. The accounts' owners could have their assets frozen or be blocked from the domestic financial system, the people said. The measures are designed to cut off one of the few remaining avenues for Chinese citizens to buy digital assets. While the country was once home to the world's most active cryptocurrency exchanges, authorities banned the venues last year and have since moved to block access to platforms that offer exchange-like services.

An anonymous reader quotes a report from Bloomberg: Apple Inc. is in talks to buy long-term supplies of cobalt directly from miners for the first time, according to people familiar with the matter, seeking to ensure it will have enough of the key battery ingredient amid industry fears of a shortage driven by the electric vehicle boom. The iPhone maker is one of the world's largest end users of cobalt for the batteries in its gadgets, but until now it has left the business of buying the metal to the companies that make its batteries. The talks show that the tech giant is keen to ensure that cobalt supplies for its iPhone and iPad batteries are sufficient, with the rapid growth in battery demand for electric vehicles threatening to create a shortage of the raw material. About a quarter of global cobalt production is used in smartphones. Apple is seeking contracts to secure several thousand metric tons of cobalt a year for five years or longer. Its first discussions on cobalt deals with miners were more than a year ago, and it may end up deciding not to go ahead with any deal, another person said.

Picture this: You're driving home from work, contemplating what to make for dinner, and as you idle at a red light near your neighborhood pizzeria, an ad offering $5 off a pepperoni pie pops up on your dashboard screen. Are you annoyed that your car's trying to sell you something, or pleasantly persuaded? From a report: Telenav, a company developing in-car advertising software, is betting you won't mind much. Car companies -- looking to earn some extra money -- hope so, too. Automakers have been installing wireless connections in vehicles and collecting data for decades. But the sheer volume of software and sensors in new vehicles, combined with artificial intelligence that can sift through data at ever-quickening speeds, means new services and revenue streams are quickly emerging. The big question for automakers now is whether they can profit off all the driver data they're capable of collecting without alienating consumers or risking backlash from Washington. "Carmakers recognize they're fighting a war over customer data," said Roger Lanctot, who works with automakers on data monetization as a consultant for Strategy Analytics. "Your driving behavior, location, has monetary value, not unlike your search activity."

Metal vital to many electric vehicles has tripled in 18 months. From a report: The appetite for electric cars is driving a boom in small-scale cobalt production in the Democratic Republic of Congo, where some mines have been found to be dangerous and employ child labor. Production from so-called artisanal mines probably rose by at least half last year, according to the estimates of officials at three of the biggest international suppliers of the metal, who asked not to be named because they're not authorized to speak on the matter. State-owned miner Gecamines estimates artisanal output accounted for as much as a quarter of the country's total production in 2017. That's a concern for carmakers from Volkswagen to Tesla, who are seeking to secure long-term supplies of the battery ingredient but don't want to be enmeshed in a scandal about unethical mining practices.

Tech giants including Apple and Microsoft endured bad publicity after a 2016 Amnesty International report said children were being sent down some Congolese mines to dig for cobalt destined for their gadgets. Pit and tunnel collapses killed dozens of workers in 2015, the advocacy group said. Cobalt has tripled in value in the last 18 months as the rise of electric vehicles intensifies competition for scarce resources. Two-thirds of the world's supply comes from Congo, the second-poorest nation. The boom in the metal, currently trading above $80,000 a metric ton, has triggered more mining in the cobalt-rich Katanga region, where sprawling hand-dug mines dot the landscape, and searching for ore is as commonplace as farming.

Sarah McBride, writing for Bloomberg: Tech billionaire Peter Thiel is moving to Los Angeles from San Francisco, adding another dose of legitimacy to a burgeoning startup scene in Southern California -- along with some controversy. The co-founder of PayPal and an early investor in Facebook, Thiel runs Founders Fund, one of the more-respected venture capital firms in Silicon Valley. He comes with a little baggage, though, including his staunch support for President Donald Trump, his secretive funding of the legal battle between Hulk Hogan and Gawker.com, and comments some people say have been derogatory toward women. "I'm not sure why Peter Thiel believes he'll receive a warmer reception on the L.A. tech scene than he's had in Silicon Valley," said Tracy DiNunzio, chief executive officer of Tradesy, a fashion-reselling company based in Santa Monica, California. "Our venture and startup ecosystem is fairly left-leaning."

According to a recently disclosed letter from the U.S. National Labor Relations Board, Google didn't violate labor laws by firing engineer James Damore for a memo criticizing the company's diversity program. "The lightly redacted statement is written by Jayme Sophir, associate general counsel of the NLRB's division of advice; it dates to January, but was released yesterday, according to Law.com," reports The Verge. "Sophir concludes that while some parts of Damore's memo was legally protected by workplace regulations, 'the statements regarding biological differences between the sexes were so harmful, discriminatory, and disruptive as to be unprotected.'" From the report: Damore filed an NLRB complaint in August of 2017, after being fired for internally circulating a memo opposing Google's diversity efforts. Sophir recommends dismissing the case; Bloomberg reports that Damore withdrew it in January, and that his lawyer says he's focusing on a separate lawsuit alleging discrimination against conservative white men at Google. NLRB records state that its case was closed on January 19th. In her analysis, Sophir writes that employers should be given "particular deference" in trying to enforce anti-discrimination and anti-harassment policies, since these are tied to legal requirements. And employers have "a strong interest in promoting diversity" and cooperation across different groups of people. Because of this, "employers must be permitted to 'nip in the bud' the kinds of employee conduct that could lead to a 'hostile workplace,'" she writes. "Where an employee's conduct significantly disrupts work processes, creates a hostile work environment, or constitutes racial or sexual discrimination or harassment, the Board has found it unprotected even if it involves concerted activities regarding working conditions."

Mark Bergen, writing for Bloomberg: The centerpiece of Apple's new headquarters is a massive, ring-shaped office overflowing with panes of glass, a testament to the company's famed design-obsessed aesthetic. There's been one hiccup since it opened last year: Apple employees keep smacking into the glass. Surrounding the Cupertino, California-based building are 45-foot tall curved panels of safety glass. Inside are work spaces, dubbed "pods," also made with a lot of glass. Apple staff are often glued to the iPhones they helped popularize. That's resulted in repeated cases of distracted employees walking into the panes, according to people familiar with the incidents. Some staff started to stick Post-It notes on the glass doors to mark their presence. However, the notes were removed because they detracted from the building's design, the people said.

Atari has announced plans to create a company token and potentially develop cryptocurrency-based casino platforms. The company, commonly associated with arcade classics such as Asteroids, Pac-Man, Space Invaders, and Pong, seems to believe new life can be breathed into the casino industry through cryptocurrency. From a report: "Blockchain technology is poised to take a very important place in our environment and to transform, if not revolutionize, the current economic ecosystem, especially in the areas of the video game industry and online transactions," Atari Chairman and Chief Executive Officer Frederic Chesnais said in the statement. "Our aim is to take strategic positions with a limited cash risk, in order to best create value with the assets and the Atari brand."

WindBourne writes: Tesla is producing their Model 3, but is apparently tired of answering critics about production. So, they quit telling. Now, Bloomberg has an active tracker that shows the total production and deliveries, along with the production per week, which is probably more important. In fact, they are now up to 1,025 Model 3s per week, and it is apparent that Tesla is growing by leaps and bounds on this as parts of the manufacturing line are converted to full robotics. Bloomberg reportedly tracks Tesla's production via Vehicle Identification Numbers (VINs), which are unique strings of digits displayed on every new car sold in the U.S., along with "data from official U.S. government resources, social media reports, and direct communication with Tesla owners." While the company is now building approximately 1,025 Model 3 vehicles a week, Bloomberg estimates that Tesla has manufactured a total of 7,438 Model 3s so far.

According to Kaspersky Lab, hackers have been exploiting a vulnerability in Telegram's desktop client to mine cryptocurrencies such as Monero and ZCash. "Kaspersky said on its website that users were tricked into downloading malicious software onto their computers that used their processing power to mine currency, or serve as a backdoor for attackers to remotely control a machine," reports Bloomberg. From the report: While analyzing the servers of malicious actors, Kaspersky researchers also found archives containing a cache of Telegram data that had been stolen from victims. The Russian security firm said it "reported the vulnerability to Telegram and, at the time of publication, the zero-day flaw has not since been observed in messenger's products."

Google is working on a "dramatic redesign" of its Android operating system, Bloomberg reported on Monday. The company has stuck with a single look for its mobile operating system (OS) for quite some time now, but it's now reportedly looking at Apple for inspiration. The new version of Android -- which Bloomberg says is called "Pistachio Ice Cream" internally -- will apparently be designed with the space for a cutout at the top, much like the iPhone X and its so-called "notch." From the report: The operating system refresh, Android P, will emphasize Google's Assistant, a digital helper that competes with Apple's Siri and Amazon.com's Alexa. Developers will be able to integrate Google's voice-based technology inside of their apps. The company has also weighed integrating the search bar on the Android home screen with its assistant, although neither of these changes are finalized for introduction this year, according to one of the people familiar with the situation.

An anonymous reader shares a report: The tumble in cryptocurrencies that erased nearly $500 billion of market value over the past month could get a lot worse, according to Goldman Sachs Group's global head of investment research. Most digital currencies are unlikely to survive in their current form, and investors should prepare for coins to lose all their value as they're replaced by a small set of future competitors, Goldman's Steve Strongin said in a report dated Feb. 5. While he didn't posit a timeframe for losses in existing coins, he said recent price swings indicated a bubble and that the tendency for different tokens to move in lockstep wasn't rational for a "few-winners-take-most" market. "The high correlation between the different cryptocurrencies worries me," Strongin said. "Because of the lack of intrinsic value, the currencies that don't survive will most likely trade to zero."

Bloomberg Businessweek: Original Stitch has all the trappings of an e-commerce success story. The pitch is simple: Original Stitch uses computer-vision software to review photos of your most beloved dress shirts uploaded to the company website, then delivers perfectly tailored copies. We tried it -- the only problem was that it didn't work. When the first shirt arrived too tight around the chest and too long in the sleeves, we figured an editor's sloppy photography was to blame, but the problems persisted with a second attempt. A third shirt, ordered under a different name to make sure we wouldn't get special treatment, could barely be buttoned up. The sleeves felt like tourniquets. "We tried to push the envelope," Original Stitch founder Jin Koh acknowledged after we confronted him with the results. "Obviously, it's still in beta." In December, three months after launching the service, Koh quietly pulled it down. He's returned to asking users to fill out a questionnaire with their own measurements while he works out the bugs.

In a poll of 20,000 European workers released Monday, Microsoft, which became one of the world's most profitable companies by marketing office productivity software, acknowledges new digital technology can, in some circumstances, make businesses less productive. From a report: Redmond, Washington-based Microsoft joins a growing number of prominent Silicon Valley companies and entrepreneurs that are starting to question the social benefits of the technology they once championed. Facebook warned in December that its social network might, in some cases, cause psychological harm. Microsoft identifies a number of possible reasons for this negative impact, including: workers who are too distracted by a constant influx of e-mails, Slack messages, Trello notifications, texts, Tweets -- not to mention viral cat videos -- to concentrate for sustained periods; workers who aren't properly trained to use the new technology effectively; tech that isn't adequately supported by the business, forcing workers to lose time because "the computers are down;" and workers who suffer burnout because, with mobile devices and at-home-working, they feel tethered to the job around-the-clock.

Tesla is bringing photovaltaic panels and Powerwall batteries to U.S. retail giant Home Depot. According to Bloomberg, "The tech pioneer is beginning to roll out Tesla-branded selling spaces at 800 of the retailer's locations. The areas, which will be outfitted during the first half of this year, are staffed by Tesla employees and can demonstrate its solar panels and Powerwall battery." From the report: Lowe's -- the second-largest U.S. home-improvement chain, after Home Depot -- has also been in discussions with Tesla about selling its solar products, said people familiar with the situation. At some point, Home Depot may also offer Tesla's much-anticipated solar roof, said one of the people, who asked not to be identified because the deliberations are private. [The products] will be highlighted in high-profile displays, which are 12 feet tall and 7 feet wide. Some locations will be fitted with visual demonstrations that show how the products work.

Bloomberg: Amazon.com is advertising its Alexa-powered speakers in the big game on Sunday. It's an amusing 90 seconds that features celebrities like Gordon Ramsay, Rebel Wilson, Anthony Hopkins, Cardi B and the world's wealthiest man, Jeff Bezos himself. The word "Alexa" is uttered 10 times during the Super Bowl spot, but thankfully, the Amazon Echo in your living room isn't going to perk up and try to respond.

Bezos and company have evidently been thinking about this problem for a long time, before the Echo was even introduced. A September 2014 Amazon patent titled "Audible command filtering" describes techniques to prevent Alexa from waking up "as part of a broadcast watched by a large population (such as during a popular sporting event)," annoying customers and overloading Amazon's servers with millions of simultaneous requests. The patent broadly describes two techniques. The first calls for transmitting a snippet of a commercial to Echo devices before it airs. Then the Echo can compare live commands to the acoustic fingerprint of the snippet to determine whether the commands are authentic. The second tactic describes how a commercial itself could transmit an inaudible acoustic signal to tell Alexa to ignore its wake word.

mikeebbbd writes: According to Bloomberg, "Xerox, a once-iconic American innovator that became synonymous with office copy machines, is ceding control to Japan's Fujifilm in a deal that creates an $18 billion company." Essentially, it's merging with Fujifilm; a former joint venture operating in the Asian-Pacific area essentially will become the parent company... So much for the company that actually invented the modern graphical user interface later popularized by Apple and Microsoft. "The agreement marks the end of independence for a U.S. company whose roots trace back to the start of the 20th century," reports Bloomberg. "The joint venture will cut 10,000 jobs in Asia as part of the restructuring as the Japanese company struggles with an 'increasingly severe' market environment." While the new company will have a combined revenue of $18 billion, Xerox was acquired by Fujifilm for $6.1 billion.

An anonymous reader writes: The social network is getting aggressive with people who don't log in often, working to keep up its engagement numbers, Bloomberg reports. Sample this for instance: It's been about a year since Rishi Gorantala deleted the Facebook app from his phone, and the company has only gotten more aggressive in its emails to win him back. The social network started out by alerting him every few days about friends that had posted photos or made comments -- each time inviting him to click a link and view the activity on Facebook. He rarely did. Then, about once a week in September, he started to get prompts from a Facebook security customer-service address. "It looks like you're having trouble logging into Facebook," the emails would say. "Just click the button below and we'll log you in. If you weren't trying to log in, let us know." He wasn't trying. But he doesn't think anybody else was, either. "The content of mail they send is essentially trying to trick you," said Gorantala, 35, who lives in Chile. "Like someone tried to access my account so I should go and log in."

Bloomberg reports that Verizon has dropped all plans to sell phones by Chinese manufacturer Huawei due to pressure from the U.S. government. The decision comes after AT&T walked away from a deal earlier this month to sell Huawei smartphones in the U.S. Bloomberg: Huawei devices still work on both companies' networks, but direct sales would've allowed them to reach more consumers than they can through third parties. The government's renewed concern about Chinese spying is creating a potential roadblock in the race between Verizon and AT&T to offer 5G, the next generation of super-fast mobile service. Huawei is pushing to be among the first to offer 5G-capable phone, but the device may be considered off-limits to U.S. carriers who are beginning to offer the next-generation service this year in a few cities. U.S. security agencies and some lawmakers fear that 5G phones made by companies that may have close ties to the Chinese government could pose a security risk.

An anonymous reader quotes a report from PhoneDog: The U.S. Department of Justice and the Securities and Exchange Commission are investigating Apple about its updates that slowed performance on iPhones with older batteries. Sources speaking to Bloomberg say that the agencies are looking into whether Apple violated securities laws regarding disclosures about its updates that throttled older iPhones. So far, the DOJ and SEC have requested information from Apple. Because the investigation is still early, it's unclear if the agencies will actually take an action against Apple. Apple apologized for not being more clear about its actions after the news of its performance-throttling updates came out, but we've still seen class action lawsuits and now this investigation come out. The good news is that Apple will be more transparent about iPhone battery health and performance in the future, but for now, it'll have to deal with the DOJ and SEC.

The future of driverless driving looks like a giant toaster with a funny hat. From a report: That's an approximation of a new autonomous vehicle unveiled Tuesday by Nuro, a Silicon Valley startup that's been cryptic about its business plan since it launched about 18 months ago. Nuro's shiny, minimalist appliance on wheels doesn't have doors or windows to speak of, because it will be carrying packages -- not people. As every major automaker and dozens of tech companies race to replace drivers in Uber cars and taxi fleets, Nuro is ignoring humans altogether and steering for Amazon.com, United Parcel Service and any retailer looking to build its e-commerce business.

U.S. regulators are scrutinizing one of the world's largest cryptocurrency exchanges as questions mount over a digital token linked to its backers, Bloomberg reported on Tuesday. From the report: The U.S. Commodity Futures Trading Commission sent subpoenas last week to virtual-currency venue Bitfinex and Tether, a company that issues a widely traded coin and claims it's pegged to the dollar, according to a person familiar with the matter. The firms share the same chief executive officer. Tether's coins have become a popular substitute for dollars on cryptocurrency exchanges worldwide, with about $2.3 billion of the tokens outstanding as of Tuesday. While Tether has said all of its coins are backed by U.S. dollars held in reserve, the company has yet to provide conclusive evidence of its holdings to the public or have its accounts audited. Skeptics have questioned whether the money is really there.
Update: "Bitfinex'ed", a pseudonymous blogger whose been calling foul on Tether and Bitfinex for months, outlines steps he thinks exchanges that use Tether should take ASAP.

According to a Bloomberg report, Apple could be working on three new Mac models for this year. From a report: All three of them could feature an ARM coprocessor to improve security. Apple isn't switching to ARM chipsets altogether. There will still be an Intel CPU in every Mac, but with a second ARM processor. Currently, the MacBook Pro features a T1 chip while the iMac Pro features a T2 chip. On the MacBook Pro, the ARM coprocessor handles the Touch ID sensor and the Touch Bar. This way, your fingerprint is never stored on your laptop's SSD drive -- it remains on the T1 secure enclave. The Intel CPU only gets a positive response when a fingerprint is validated. The iMac Pro goes one step further and uses the T2 to replace many discrete controllers. The T2 controls your stereo speakers, your internal microphone, the fans, the camera and internal storage.

An anonymous reader quotes Bloomberg: Songwriters will get a larger cut of revenue from streaming services after a court handed technology companies a big defeat. The Copyright Royalty Board ruled that songwriters will get at least a 15.1 percent share of streaming revenues over the next five years, from a previous 10.5 percent. That's the largest rate increase in CRB history, according to a statement from the National Music Publishers' Association. The decision is a major victory for songwriters, who have long complained they are insufficiently uncompensated by on-demand music services like Spotify and YouTube.
"The ratio of what labels are paid by the services versus what publishers are paid has significantly improved," argues the NMPA, "resulting in the most favorable balance in the history of the industry.

"While an effective ratio of 3.82 to 1 is still not a fair split that we might achieve in a free market, it is the best songwriters have ever had under the compulsory license... The decision represents two years of advocacy regarding how unfairly songwriters are treated under current law and how crucial their contributions are to streaming services."

Meanwhile, the U.S. Congress has introduced a bipartisan "Music Modernization Act" to overhaul the rate court, and to create a new governing agency to issue blanket licenses to streaming services and then collect and distribute the resulting roylaties.

Mark Gurman, reporting for Bloomberg: Apple is ready to take on Amazon.com in the digital book market again, years after regulators forced the iPhone maker to back down from an earlier effort to challenge the e-commerce giant's lead. Apple is working on a redesigned version of its iBooks e-book reading application for iPhones and iPads and has hired an executive from Amazon to help. The new app, due to be released in coming months, will include a simpler interface that better highlights books currently being read and a redesigned digital book store that looks more like the new App Store launched last year, according to people familiar with its development. The revamped app in testing includes a new section called Reading Now and a dedicated tab for audio books, the people said. Apple released an early version of its iOS 11.3 mobile operating system update to developers on Wednesday, providing a hint that the new e-books app is on the way. The app is now simply called "Books," rather than "iBooks," according to the update.

YouTube has asked musicians to agree not to disparage the streaming-video service in exchange for promotional support, Bloomberg reports, citing people familiar with the matter. From the report: In recent months, YouTube has given a handful of musicians a couple hundred thousand dollars to produce videos and promoted their work on billboards, part of a larger campaign to improve the site's relationship with the music industry. Yet such support comes with a catch, with some musicians required to promise the won't say negative things about YouTube, said the people, who asked not to be identified discussing private business transactions. Non-disparagement agreements are common in business, but YouTube's biggest direct competitors in music don't require them, the people said.

An anonymous reader quotes a report from Bloomberg: The U.S. dropped out of the top 10 in the 2018 Bloomberg Innovation Index for the first time in the six years the gauge has been compiled. South Korea and Sweden retained their No. 1 and No. 2 rankings. The index scores countries using seven criteria, including research and development spending and concentration of high-tech public companies. The U.S. fell to 11th place from ninth mainly because of an eight-spot slump in the post-secondary, or tertiary, education-efficiency category, which includes the share of new science and engineering graduates in the labor force. Value-added manufacturing also declined. Improvement in the productivity score couldn't make up for the lost ground.

South Korea remained the global-innovation gold medalist for the fifth consecutive year. China moved up two spots to 19th, buoyed by its high proportion of new science and engineering graduates in the labor force and increasing number of patents by innovators such as Huawei Technologies Co. Japan, one of three Asian nations in the top 10, rose one slot to No. 6. France moved up to ninth from 11th, joining five other European economies in the top tier. Israel rounded out this group and was the only country to beat South Korea in the R&D category. South Africa and Iran moved back into the top 50; the last time both were included was 2014. Turkey was one of the biggest gainers, jumping four spots to 33rd because of improvements in tertiary efficiency, productivity and two other categories. The biggest losers were New Zealand and Ukraine, which each dropped four places. The productivity measure influenced New Zealand's shift, while Ukraine was hurt by a lower tertiary-efficiency ranking.

The Trump administration just approved tariffs of 30% on imported solar panels. Axios explains why it matters: "Most of the American solar industry has opposed tariffs on panels, saying they would raise prices and hurt the sector. A small group of solar panel manufacturers argued -- successfully -- that an influx of cheap imports, largely from China or Chinese-owned companies, was hurting domestic manufacturing. It's also part of President Trump's broader trade agenda against China." From the report: The tariffs would last for four years and decline in increments of 5% from 30%: 25%, 20% and finally 15% in the fourth year. The tariffs are lower than the 35% the U.S. International Trade Commission had initially recommended last year, per Bloomberg. This is actually the third, and broadest, set of tariffs the U.S. government has issued on solar imports in recent years. The Obama administration issued two earlier rounds of tariffs on a narrower set of imports. Monday's action also imposed import tariffs on washing machines, a much lower profile issue than solar energy.

An anonymous reader quotes a report from Bloomberg: Rupert Murdoch, the media billionaire who controls the Wall Street Journal, called on Facebook to begin paying publishers fees to carry the news that its users post and share online in a sign of the print industry's growing frustration with social media. "If Facebook wants to recognize 'trusted' publishers then it should pay those publishers a carriage fee similar to the model adopted by cable companies," Murdoch, the executive chairman of News Corp. said Monday in a statement. "The publishers are obviously enhancing the value and integrity of Facebook through their news and content but are not being adequately rewarded for those services." "Facebook and Google have popularized scurrilous news sources through algorithms that are profitable for these platforms but inherently unreliable," Murdoch said. "Recognition of a problem is one step on the pathway to cure, but the remedial measures that both companies have so far proposed are inadequate, commercially, socially and journalistically." Murdoch, who also leads 21st Century Fox, called for a system similar to that in cable television, where large distributors like Comcast and AT&T pay fees to the TV network owners that attract their viewers.

Apple told employees that it's issuing a bonus of $2,500 of restricted stock units, following the introduction of the new U.S. tax law. "The iPhone maker will begin issuing grants to most employees worldwide in the coming months," reports Bloomberg. Apple also announced today that it would bring back most of its cash from overseas and spend $30 billion in the U.S. over the next five years. From the report: Apple confirmed the bonuses in response to a Bloomberg inquiry Wednesday. The Cupertino, California-based company joins a growing list of American businesses that have celebrated the introduction of corporate-friendly tax law with one-time bonuses for staff. AT&T, Comcast, JetBlue, and Wal-Mart also said they were giving bonuses.

China's Tencent Holdings is going after the cheaters and hackers that infest PlayerUnknown's Battlegrounds as it prepares to bring the world's top-selling game to its home turf. From a report: Ahead of its official debut this year, the biggest gaming company on the planet has enlisted Chinese police to root out the underground rings that make and sell cheat software. It's helped law enforcement agents uncover at least 30 cases and arrest 120 people suspected of designing programs that confer unfair advantages from X-Ray vision (see-through walls) to auto-targeting (uncannily accurate snipers). Those convicted in the past have done jail time. Tencent and game developer Bluehole have a lot riding on cleaning things up for China, which accounted for more than half the game's 27 million users, according to online tracker Steam Spy. It's also the biggest source of cheat software, undermining a Battle Royale-style phenom that shattered gaming records in 2017 and surpassed best-sellers like Grand Theft Auto V. The proliferation of shenanigans threatens to drive away first-time users vital to its longer-term growth.

If regulatory concerns aren't enough to explain Bitcoin's 50 percent slump from its record high reached last month, how about blaming it on the moon? An anonymous reader writes: The Lunar New Year, which marks the first day of the year in the Chinese calendar, is being cited by some as contributing to Bitcoin's slump as Asian traders cash out their cryptocurrencies to travel and buy gifts for the holiday that starts Feb. 16 this year. The festivity is celebrated not just in China, but in other Asian countries including Singapore, Indonesia, Malaysia, Korea and Thailand. "The January drop is a recurring theme in cryptocurrencies as people celebrating the Chinese New Year, aka Lunar New Year, exchange their crypto for fiat currency," said Alexander Wallin, chief executive officer of trading social network SprinkleBit in New York. "The timing is about four to six weeks before the lunar year, when most people make their travel arrangements and start buying presents."

An anonymous reader shares a report: For decades, the donation bin has offered consumers in rich countries a guilt-free way to unload their old clothing. In a virtuous and profitable cycle, a global network of traders would collect these garments, grade them, and transport them around the world to be recycled, worn again, or turned into rags and stuffing. Now that cycle is breaking down. Fashion trends are accelerating, new clothes are becoming as cheap as used ones, and poor countries are turning their backs on the secondhand trade. Without significant changes in the way that clothes are made and marketed, this could add up to an environmental disaster in the making. [...] The tide of secondhand clothes keeps growing even as the markets to reuse them are disappearing. From an environmental standpoint, that's a big problem. Already, the textile industry accounts for more greenhouse-gas emissions than all international flights and maritime shipping combined; as recycling markets break down, its contribution could soar. The good news is that nobody has a bigger incentive to address this problem than the industry itself.

A Lockheed Skunk Works executive implied last week at an aerospace conference that the successor to one of the fastest aircraft the world has seen, the SR-71 Blackbird, might already exist. Previously, Lockheed officials have said the successor, the SR-72, could fly by 2030. Bloomberg reports: Referring to detailed specifics of company design and manufacturing, Jack O'Banion, a Lockheed vice president, said a "digital transformation" arising from recent computing capabilities and design tools had made hypersonic development possible. Then -- assuming O'Banion chose his verb tense purposely -- came the surprise. "Without the digital transformation, the aircraft you see there could not have been made," O'Banion said, standing by an artist's rendering of the hypersonic aircraft. "In fact, five years ago, it could not have been made." Hypersonic applies to speeds above Mach 5, or five times the speed of sound. The SR-71 cruised at Mach 3.2, more than 2,000 mph, around 85,000 feet.

"We couldn't have made the engine itself -- it would have melted down into slag if we had tried to produce it five years ago," O'Banion said. "But now we can digitally print that engine with an incredibly sophisticated cooling system integral into the material of the engine itself and have that engine survive for multiple firings for routine operation." The aircraft is also agile at hypersonic speeds, with reliable engine starts, he said. A half-decade before, he added, developers "could not have even built it even if we conceived of it."

Apple is still struggling to improve working conditions at its supply chain factories. China Labor Watch and Bloomberg reported on Tuesday that Catcher, a key supplier for iPhone and MacBook casings, makes workers endure harsh safety conditions and unfair work terms in a factory in Suqian. According to observers and discussions with workers, the machines are not only loud, but spray fluid and metallic particles that frequently hit workers' faces only some of which have access to safety goggles and gloves. From the report: Hundreds throng a workshop where the main door only opens about 12 inches. Off duty, they return to debris-strewn dorms bereft of showers or hot water. Many go without washing for days at a time, workers told Bloomberg. "My hands turned bloodless white after a day of work," said one of the workers, who makes a little over 4,000 yuan a month (just over $2 an hour) in her first job outside her home province of Henan. She turned to Catcher because her husband's home-decorating business was struggling. "I only tell good things to my family and keep the sufferings like this for myself." "I asked for the earplugs many times but they didn't have any. The loud noise of 'zah-zah' made my head ache and dizzy," one of those employees told Bloomberg.

Bank of America may not be willing to help customers invest in Bitcoin, but that doesn't mean it isn't plowing into the technology underlying the cryptocurrency. From a report: The Charlotte, North Carolina-based lender has applied for or received at least 43 patents for blockchain, the ledger technology used for verifying and recording transactions that's at the heart of virtual currencies. It is the largest number among major banks and technology companies, according to a study by EnvisionIP, a New York-based law firm that specializes in analyses of intellectual property. "Based on what's publicly out there, the technology sector hasn't embraced blockchain as much as the financial-services industry," Maulin Shah, managing attorney for EnvisionIP, said in an interview. International Business Machines Corp., which has targeted blockchain and artificial intelligence for future growth, tied with Mastercard Inc. for second on the list, with 27 each.

In what is being called a landmark moment for natural language processing, Alibaba and Microsoft have developed AIs that can outperform humans on a reading and comprehension test. From a report: Alibaba Group put its deep neural network model through its paces last week, asking the AI to provide exact answers to more than 100,000 questions comprising a quiz that's considered one of the world's most authoritative machine-reading gauges. The model developed by Alibaba's Institute of Data Science of Technologies scored 82.44, edging past the 82.304 that rival humans achieved. Alibaba said it's the first time a machine has out-done a real person in such a contest. Microsoft achieved a similar feat, scoring 82.650 on the same test, but those results were finalized a day after Alibaba's, the company said.

An anonymous reader quotes a report from Bloomberg: The U.S. Supreme Court will consider freeing state and local governments to collect billions of dollars in sales taxes from online retailers, agreeing to revisit a 26-year-old ruling that has made much of the internet a tax-free zone. Heeding calls from traditional retailers and dozens of states, the justices said they'll hear South Dakota's contention that the 1992 ruling is obsolete in the e-commerce era and should be overturned. State and local governments could have collected up to $13 billion more in 2017 if they'd been allowed to require sales tax payments from online merchants and other remote sellers, according to a report from the Government Accountability Office, Congress's non-partisan audit and research agency. Other estimates are even higher. All but five states impose sales taxes.

The high court's 1992 Quill v. North Dakota ruling, which involved a mail-order company, said retailers can be forced to collect taxes only in states where the company has a "physical presence." The court invoked the so-called dormant commerce clause, a judge-created legal doctrine that bars states from interfering with interstate commerce unless authorized by Congress. South Dakota passed its law in 2016 with an eye toward overturning the Quill decision. It requires retailers with more than $100,000 in annual sales in the state to pay a 4.5 percent tax on purchases. Soon after enacting the law, the state filed suit and asked the courts to declare the measure constitutional.

Dropbox, the file-sharing private company valued at $10 billion, has filed confidentially for a U.S. initial public offering. From the report: Goldman Sachs Group Inc. and JPMorgan Chase & Co. will lead the potential listing, according to the people, who asked not to be identified because the filing wasn't public. Dropbox is talking to other banks this month to fill additional roles on the IPO, the people said. The company is aiming to list in the first half of this year, one of the people said. Dropbox could be one of the biggest U.S. enterprise technology companies to list domestically in recent years.

Dropbox is likely to tout its biggest investment in recent years: its own cloud. It's spent hundreds of millions of dollars to build data centers and mostly wean itself off of Amazon.com Inc.'s servers, a rare feat for a software business with hundreds of millions of users. That's made it easier for Dropbox to cut costs while speeding file transfers, Chief Operating Officer Dennis Woodside said in an interview last year.

From a report on Bloomberg: U.S.-trained Chinese-born talent is becoming a key force in driving Chinese companies' global expansion and the country's efforts to dominate next-generation technologies like artificial intelligence and machine learning. Where college graduates once coveted a prestigious overseas job and foreign citizenship, many today gravitate toward career opportunities at home, where venture capital is now plentiful and the government dangles financial incentives for cutting-edge research. "More and more talent is moving over because China is really getting momentum in the innovation area," said Ken Qi, a headhunter for Spencer Stuart and leader of its technology practice. "This is only the beginning."

Chinese have worked or studied abroad and then returned home long enough that there's a term for them -- "sea turtles." But while a job at a U.S. tech giant once conferred near-unparalleled status, homegrown companies -- from giants like Tencent to up-and-comers like news giant Toutiao -- are now often just as prestigious. Baidu Inc. -- a search giant little-known outside of China -- convinced ex-Microsoft standout Qi Lu to helm its efforts in AI, making him one of the highest-profile returnees of recent years.

Intel trying to defuse concern that fixes to widespread chip security vulnerabilities will slow computers, released test results late Wednesday showing that personal computers won't be affected much and promised more information on servers. From a report: The chipmaker published a table of data showing that older processors handled typical tasks 10 percent slower at most, after being updated with security patches. The information covered three generations of processors, going back to 2015, running Microsoft's Windows 10 and Windows 7 computer operating systems. Further reporting: Intel, Microsoft offer differing views on impact of chip flaw

schwit1 shares a Bloomberg report: In May 2015 about 10 investigators for the Quebec tax authority burst into Uber Technologies's office in Montreal. The authorities believed Uber had violated tax laws and had a warrant to collect evidence. Managers on-site knew what to do, say people with knowledge of the event. Like managers at Uber's hundreds of offices abroad, they'd been trained to page a number that alerted specially trained staff at company headquarters in San Francisco. When the call came in, staffers quickly remotely logged off every computer in the Montreal office, making it practically impossible for the authorities to retrieve the company records they'd obtained a warrant to collect. The investigators left without any evidence.

Most tech companies don't expect police to regularly raid their offices, but Uber isn't most companies. The ride-hailing startup's reputation for flouting local labor laws and taxi rules has made it a favorite target for law enforcement agencies around the world. That's where this remote system, called Ripley, comes in. From spring 2015 until late 2016, Uber routinely used Ripley to thwart police raids in foreign countries, say three people with knowledge of the system. Allusions to its nature can be found in a smattering of court filings, but its details, scope, and origin haven't been previously reported. The Uber HQ team overseeing Ripley could remotely change passwords and otherwise lock up data on company-owned smartphones, laptops, and desktops as well as shut down the devices. This routine was initially called the unexpected visitor protocol. Employees aware of its existence eventually took to calling it Ripley, after Sigourney Weaver's flamethrower-wielding hero in the Alien movies. The nickname was inspired by a Ripley line in Aliens, after the acid-blooded extraterrestrials easily best a squad of ground troops. 'Nuke the entire site from orbit. It's the only way to be sure.'

In an email Tuesday, Tesla said that its manufacturing of the long-awaited electricity-producing shingles began last month at a factory in Buffalo built with backing from New York State. It comes more than a year after Tesla unveiled the shingles to a mix of fanfare and skepticism. Bloomberg reports: The appeal: a sleek, clean solar product, especially for homeowners seeking to replace aging roofs. The tiles -- from most angles -- look like ordinary shingles. They allow light to pass from above and onto a standard flat solar cell. Tesla, the biggest U.S. installer of rooftop-solar systems, piloted the product on the homes of several employees. The company expects to begin installing roofs for customers within the next few months.

Tesla started production of solar cells and panels about four months ago at its Gigafactory 2 in Buffalo. New York committed $750 million to help build the 1.2 million-square-foot factory, which currently employs about 500 people. The plant will eventually create nearly 3,000 jobs in Western New York and nearly 5,000 statewide, Governor Andrew Cuomo said in 2015.

Former U.S. intelligence-contractor-turned whistleblower Edward Snowden joined critics of India's digital ID program as the nation's top court is due to decide on its legality. From a report: Snowden on Tuesday tweeted in support of an Indian journalist who faces police charges after she reported that personal details of over a billion citizens enrolled in the program could be illegally accessed for just $8 paid through a digital wallet. Named Aadhaar, the program is backed by the world's biggest biometric database, which its operator Unique Identification Authority of India, or UIDAI, says wasn't breached. Snowden tweeted, "The journalists exposing the Aadhaar breach deserve an award, not an investigation. If the government were truly concerned for justice, they would be reforming the policies that destroyed the privacy of a billion Indians. Want to arrest those responsible? They are called @UIDAI."

The Chinese government will end bitcoin mining operations in the country in the coming months in a move that could have a massive impact on the price of the world's biggest digital currency. From a report: China has been a central player in the development of bitcoin in recent years, but Beijing has spent the last six months cracking down on the cryptocurrency industry -- shutting down local exchanges and banning initial coin offerings. Leaked documents suggest the Chinese government plans an "orderly exit" for bitcoin mining operations in the coming weeks and months. In the documents, issued to the local offices of the internet-finance regulator, authorities were instructed to force mining operations out of business using measures linked to electricity pricing, land use, tax and environmental protection.

Last month FCC Chairman Ajit Pai dismantled Obama-era rules on net neutrality. A handful of lawmakers in liberal-leaning U.S. states plan to spend this year building them back up. FCC anticipated the move -- the commission's rules include language forbidding states from doing this, warning against an unwieldy patchwork of regulations. But lawmakers in New York and California aren't aiming to be exceptions to the national rules; they're looking to, in effect, create their own. From a report: In New York, Assemblywoman Patricia Fahy introduced a bill that would make it a requirement for internet providers to adhere to the principles of net neutrality as a requirement for landing state contracts. This would mean they couldn't block or slow down certain web traffic, and couldn't offer faster speeds to companies who pay them directly. Fahy said the restrictions on contractors would apply even if the behaviors in question took place outside New York. She acknowledged that the approach could run afoul of limits on states attempting to regulate interstate commerce, but thought the bill could "thread the needle." Even supporters of state legislation on net neutrality think this may go too far. California State Senator Scott Wiener introduced a bill this week that would only apply to behavior within the state, saying any other approach would be too vulnerable to legal challenge.

But this wouldn't be the first time a large state threw around its weight in ways that reverberate beyond its borders. The texbook industry, for instance, has long accommodated the standards of California and Texas. [...] The internet doesn't lend itself cleanly to state lines. It could be difficult for Comcast or Verizon to accept money from services seeking preferential treatment in one state, then make sure that its network didn't reflect those relationships in places where state lawmakers forbade them, said Geoffrey Manne, executive director of the International Center for Law & Economics, a research group.