Slashdot Mirror

Daniel_Stuckey writes "Keith Alexander will step down by April or May of next year. What's more, the agency's deputy director Chris Inglis also plans to retire by the end of next year, anonymous US officials told Reuters today. Though the news comes in the midst of a global public backlash over the NSA's widespread surveillance programs, it's worth pointing out that Alexander had revealed his plans to retire before Edward Snowden leaked details of PRISM in June. Officials didn't give a reason for his departure."

DavidGilbert99 writes "Ireland and its tax system came under some extreme scrutiny earlier this year when it was revealed that Apple funneled billions of dollars of revenue though three subsidiaries based in the country. Thanks to a loophole, none of these subsidiaries were tax-resident in Ireland, meaning they didn't even have to pay Ireland's relatively low 12.5% corporation tax rate. Worryingly for Apple, Ireland's finance minister may now shut this loophole. A measure within a new budget bill (PDF) would disallow Apple's status as a 'stateless' corporate entity for tax purposes. Apple will still be able to select a country like Bermuda as its tax residence, but it's a step in the right direction."

barlevg writes "Two of the three scientists sharing this year's Nobel Prize in Chemistry have Israeli citizenship, with Dr. Arieh Warshel having been born and educated in Israel, yet both are based at universities in the United States. These two scientists are perhaps the highest profile examples of a growing problem in the so-called "start-up nation," which is known for its high-tech tech companies and scientific innovation, and yet which loses more researchers to emigration than any other western nation. The problem? Large salary gaps between US and Israeli institutions. As Daniel Hershkowitz, president of Bar-Ilan University put it, 'I don't see Israel being able to compete with what they offer in the United States.'"

ananyo writes "One day, computers may be able to simulate exactly how enzymes, ion channels, viruses, DNA and other complex biological molecules react with each other inside a cell. And if such a software package is ever written, it will owe its development to three researchers who today won the Nobel Prize in Chemistry: Martin Karplus, of Harvard University and the University of Strasbourg, Michael Levitt, of Stanford University, and Arieh Warshel, of the University of Southern California in Los Angeles. Starting in the 1970s — working with computers far less powerful than today's smartphones — the three theorists made advances in computer modeling that laid the foundations for modern software used to simulate protein folding, design drugs and even artificial enzymes, and understand the workings of complex catalysts. In essence, says Sven Lidin, the chairman of the Nobel committee, they 'took the chemical experiment to cyberspace.'"

cartechboy writes "The Tesla Model S fire that, to date, is either electric car Armageddon or 'no big deal' has been fun Internet theatre combined with a dose of crowd-sourced battery-pack pseudo-expertise. Now the actual car owner (and Tesla investor) weighs in with his take, which is, basically, 'nothing to see here and yes, I can't wait to get back into a Tesla.' Owner Robert Carlson wrote an email in response to contact by Tesla's vice president of sales and service, Jerome Guillen, saying he found the car had 'performed very well under such an extreme test. The batteries went through a controlled burn which the Internet images really exaggerates.' Carlson had no comment on the guy who videoed his car fire, who is now Internet infamous for shooting video in portrait mode." You can read Elon Musk's take, along with Carlson's correspondence.

skade88 writes with a report that "The United States Capitol has been put on lockdown after shots were fired. Reports indicate a policeman was injured." From the story: "The FBI was responding to the unconfirmed reports of shots, and a helicopter landed in front of the Capitol. A message from the Capitol Police ordered anyone in a House office to 'shelter in place.' 'Close, lock and stay away from external doors and windows,' the message said." Doubtless more to come on this; watch this space for updates. Update: 10/03 19:08 GMT by T : ABC News reports that the shots followed an attempt to ram the White House gates; the police subsequently shot and killed the driver. Other than that the driver was a woman, the reports adds little detail. Update: 10/03 19:19 GMT by T : Reuters' U.S. Politics Live feed is currently collating many reports from the scene. Of note: the lockdown itself was brief, and has been lifted.

Hugh Pickens DOT Com writes "John Reed at Foreign Policy reports that the Pentagon awarded 94 contracts Monday evening on its annual end-of-the-fiscal-year spending spree, spending more than five billion dollars on everything from robot submarines to Finnish hand grenades and a radar base mounted on an offshore oil platform. To put things in perspective, the Pentagon gave out only 14 contracts on September 3, the first workday of the month. Some of the more interesting purchases from Monday's dollar-dump include the $2.5 billion award the Defense Logistics Agency gave to aircraft engine-maker Pratt & Whitney for 'various weapons system spare parts' used by the Army, Navy, Air Force and Marines, $65 million for military helmets from BAE Systems, $24 million for 'traveling wave tubes' to amplify radio signals from Thales, $17 million for liquid nitrogen, $15 million for helium and $19 million on cots. The Air Force, traditionally DOD's biggest spender, was relatively restrained; it dished out only 17 contracts including $49 million to help France buy 16 MQ-9 Reaper drones, $64 million to Lockheed for help operating spy satellites that are equipped with infrared cameras, and $9 million to URS Corp. for maintenance work on the Air National Guard's fleet of RC-26B spyplanes that help domestic law enforcement agencies catch drug dealers. The air service also spent $9 million on a new gym at the Air Force Academy that includes areas for CrossFit training, space for the academy's Triathlon Club and a 'television studio.' It just goes to show, says Reed, that 'even when the federal government is shutdown and the military has temporarily lost half its civilian workforce, the Pentagon can spend money like almost no one else.'"

New submitter u38cg writes Ross William Ulbricht, known as 'Dread Pirate Roberts,' was arrested in San Francisco yesterday and has been charged with one count each of narcotics trafficking conspiracy, computer hacking conspiracy, and money laundering conspiracy, according to a court filing. Silk Road has been shut down and some $3.6m in Bitcoin (26,000 Btc) seized. The question is — how?" onyxruby submitted a link to the criminal complaint (PDF; coral cache might work better). The court filing indicates that they seized the actual servers and recovered their contents, making numerous references to the private messaging system. Also according to the court filing, the Silk Road was used to sell ~$1.2 billion in illicit goods since being founded in 2011.

rjmarvin writes "Now that Ballmer is on his way out, flak for Microsoft's middling stock prices and lagging mobile innovation is starting to land on Bill Gates himself. Three of the company's top 20 investors are lobbying the Board of Directors, pressing Gates to step down as chairman. The stockholders believe his presence would handcuff the next CEO's ability to re-make the company with new strategies and sweeping changes. They also think Gates wields a disproportionate amount of power relative to his financial stake and day-to-day activity within the company. No word yet from Gates or the board on this internal strife."

ifchairscouldtalk writes "Pasta maker Barilla is in hot water over its chairman's anti-gay comments. Guido Barilla said his brand would 'never feature gays in ads' because Barilla does not agree with them. He added, '[if gay people] like our pasta and our advertising, they'll eat our pasta, if they don't like it then they will not eat it and they will eat another brand.' Vehement protest worldwide calling for a boycott of Barilla products via Twitter and Facebook forced the chairman to apologize with a video on Facebook."

schwit1 writes with news that a recent 7.8 magnitude earthquake in Pakistan killed 45 people and caused a new island to form a few hundred meters off the country's coast. The island is roughly 35 meters long, and 7-14 meters high. "Seismologists suspect the island is a temporary formation resulting from a "mud volcano," a jet of mud, sand and water that gushed to the surface as the temblor churned and pressurized that slurry under the ocean floor." Long-time residents of the area say a similar island formed in 1968 after another earthquake, but disappeared a year later. "It is clear that 'the islands are not created because the ground was ... pushed up by the earthquake,' [said geophysicist Paul Earle], but more likely it was a secondary effect of shifting sediments. He also agrees the formation appears to have been caused by a mud volcano, but added that they don't need an earthquake to set them off. There are 'mud volcanoes in Yellowstone that have not been triggered by earthquakes,' he said."

Reuters has a quick report that "[a] software glitch will delay Orbital Sciences' trial cargo ship from reaching the International Space Station until Tuesday, officials said on Sunday. The company's Cygnus capsule, which blasted off Wednesday from Virginia for a test flight, had been scheduled to reach the station on Sunday. ... Orbital Sciences said it had found the cause of the data discrepancy and was developing a software fix. ... The next opportunity for the capsule to rendezvous and dock with the station will be on Tuesday." The WSJ has a more detailed article, and notes "The mission is a challenge for Orbital, which has invested more than five years and about $500 million of its own funds to develop a commercial-cargo capability. But it also presents a dramatic test of NASA's plans to outsource to industry all U.S. resupply missions to the space station. The agency has paid Orbital about $285 million to spur development of the Cygnus and Antares rocket system."

An anonymous reader writes "Today BlackBerry announced that it expects its quarterly net operating losses to be somewhere between $950 million and $995 million. It also confirmed earlier reports that it would be cutting 4,500 jobs, roughly 40% of its total workforce. 'The loss is mainly the result of a write-off of unsold BlackBerry phones, as well as $72 million in restructuring charges. The company said that it would discontinue two of the six phones it currently offers.' According to the press release, BlackBerry is going to 'refocus on enterprise and prosumer market.' 'The failure of the BlackBerry 10 line of phones quickly led to speculation that the company, like Palm before it, would be broken apart and perhaps gradually disappear, at best lingering as little more than a brand name.'"

An anonymous reader writes "The highly anticipated Grand Theft Auto V was released at midnight yesterday, and to no surprise has managed to break the record for highest sales in 24 hours. Distributors Take-Two Interactive have announced that the game has managed to achieve a staggering $800m (£490m) worth of sales within the first day, and is certainly going to break the forecasted $1 billion within the week. The record was previous held by Activision's Call of Duty: Black Ops which made $500m within 24 hours in 2009. The game also holds the title for the quickest entertainment product to achieve $1 billion in sales as they hit the mark by day 15."

First time accepted submitter julf writes "The Belgian newspaper De Standaard reports that in an internal investigation, Belgacom, the mostly state-owned telecoms operator in Belgium, discovered evidence that the NSA has been listening in (Dutch) on the Belgacom network since 2011. From the Reuters article: 'Belgium said on Monday it was investigating suspected foreign state espionage against its main telecoms company, which is the top carrier of voice traffic in Africa and the Middle East, and a newspaper pointed the finger at the United States. Federal prosecutors said in a statement that the former state telecoms monopoly Belgacom had filed a complaint in July about the hacking of several servers and computers. "The inquiry has shown that the hacking was only possible by an intruder with significant financial and logistic means," they said.'"

SpaceGhost writes "Sky News reports that the Japanese Space Agency (JAXA) has launched an orbital telescope on a new generation rocket from the Uchinoura Space Centre in Kagoshima, in southwestern Japan. The Epsilon rocket uses an onboard AI for autonomous launch checks by the rocket itself (launch video). A product of renewed focus on reducing costs, the new vehicle required two laptops and a launch team of eight, compared to the 150 people needed to launch the previous platform, the M-5. Because of the reduced launch team and ease of construction, production and launch costs of the Epsilon are roughly half that of the M-5. The payload, a SPRINT-A telescope, is designed for planetary observation."

awarrenfells writes "After a shareholder vote, Michael Dell is expected to buy out and take Dell Inc. private. This move comes in the wake of plans to move Dell into position as an enterprise computing provider, but some analysts state this move may have come too late, much of the target market being taken by IBM and HP already." Nerval's Lobster provides some more details at Slash Cloud: "[T]he final buyout price was $13.75 a share, which includes a 13-cent-a-share “special dividend.” All told, that puts the deal’s price at $24.9 billion. In order to reach this point, Dell and Silver Lake had to fend off activist investor Carl Icahn and investment firm Southeastern Asset Management, which made their own combined play for a restructured capitalization. In a series of public letters, Icahn argued that Dell’s privatization proposal undervalued the company, and—at least until the beginning of September—made it very clear that he was willing to fight things out in court. By convincing the shareholders that his plan is the best route forward, Dell avoids what could have devolved into a very protracted and messy battle. Michael Dell wants to focus the majority of the company’s efforts on services, essentially remaking it into a tech firm more along the lines of IBM."

Ellie K writes "After 500 years, Britain announced plans to fully privatize Royal Mail today. Shares of stock (common equity) will be offered to the public 'in coming weeks', according to Reuters. 10% of shares will be given to current Royal Mail employees, Deal size is estimated at $US 3 to 4.7 billion. Goldman Sachs and UBS were chosen as lead advisers." That doesn't mean you'll be able to buy a piece tomorrow, though; as the BBC's report notes, "The plans have provoked strong opposition from unions. The Communication Workers Union (CWU) is currently balloting members on strike action. Ballot papers are due to go out on 20 September to 125,000 Royal Mail workers. The earliest possible strike date would be 10 October. Plans to privatise the 250-year-old postal service have been on successive governments' agendas since the early 1990s."

Dave Knott writes "Microsoft announced today that its upcoming Xbox One console will launch later this year on November 22 in 13 territories, including Australia, Austria, Brazil, Canada, France, Germany, Ireland, Italy, Mexico, New Zealand, Spain, United Kingdom, and United States. This is exactly one week after the announced street date for Sony's PlayStation 4, ending speculation about whether Microsoft would try to launch ahead of their closest rival's next-generation console. It is also the same day that the Xbox 360 launched in 2005." The supply of pre-order consoles is mostly exhausted already.

PuceBaboon writes "Both Reuters and the BBC are carrying the story of an increase in radiation levels reported by Tepco for contaminated water leaking from storage tanks on site. When this leak was discovered almost two weeks ago, Tepco reported that the radiation level was 100-millisieverts. It now transpires that 100-millisieverts was the highest reading that the measuring equipment in use was capable of displaying. The latest readings (with upgraded equipment) are registering 1800-millisieverts which, according to both news sources, could prove fatal to anyone exposed to it for four hours. Coincidentally (and somewhat ironically), today is earthquake disaster prevention day in Japan, with safety drills taking place nationwide."

Dawn Kawamoto writes "Sometimes, making more money is not enough. Just ask Salesforce.com. The SaaS company announced it would cut 200 jobs, during its second quarter earnings call. The cuts are coming, despite the company raising its revenue forecast for its fiscal year. Salesforce.com says it's initiating the cuts to reduce overlapping roles and to (you guessed it) gain 'synergy', following its effort to meld its cloud marketing platform company ExactTarget with its social media market suite Marketing Cloud. And apparently this isn't the first time Salesforce has tried to squeeze out those nebulous 'synergies.' It reportedly cut 100 jobs in October, when it merged its social media platform companies Radian6 and Buddy Media."

An anonymous reader writes "Paris' prosecutor office opened a preliminary investigation after a complaint by two human rights associations who hope to determine the roles played by companies in the PRISM program. Two million communications (phone calls, SMS and mails) are said to have been intercepted in France by U.S. agencies."

First time accepted submitter sbjornda writes "A glitch in an internal system led to erroneous trades on some funds whose listings begin with the letters H through L. Goldman Sachs has put four Senior Technology Specialists on administrative leave as a result. From the article: 'The system, called a "trading axis," monitors the Wall Street bank's inventory to determine whether it should be a more aggressive buyer or seller in the market. But a technical error misinterpreted non-binding indications of interest, or IOIs, as firm bids and offers, leading to some trades that were vastly out of line with where market prices were, Reuters reported previously, citing a source familiar with the matter.'"

Hugh Pickens DOT Com writes "Retuers reports that firefighters are battling to gain control of a fast-moving wildfire raging on the edge of Yosemite National Park that is threatening power and water supplies to San Francisco, about 200 miles to the west. 'We are making progress but unfortunately the steep terrain definitely has posed a major challenge,' says Daniel Berlant, a spokesman for the California Department of Forestry and Fire Protection. 'Today we're continuing to see warm weather that could allow this fire to continue to grow very rapidly as it has over the last several days.' California Governor Jerry Brown has declared a state of emergency, warning that the fire had damaged the electrical infrastructure serving the city, and forced the San Francisco Public Utilities Commission to shut down power lines. The blaze in the western Sierra Nevada Mountains is now the fastest-moving of 50 large wildfires raging across the drought-parched U.S. West that have strained resources and prompted fire managers to open talks with Pentagon commanders and Canadian officials about possible reinforcements. Firefighters have been hampered by a lack of moisture from the sky and on the ground. 'The wind today is going to be better for firefighting, but we are still dealing with bone dry grass and brush,' says Tina Rose, spokeswoman for the multi-agency incident command. 'This fire is very dynamic.'"

Hugh Pickens DOT Com writes "Reuters reports that Bradley Manning, the U.S. soldier sentenced to 35 years in military prison for the biggest breach of classified documents in the nation's history, says he is female and wants to live as a woman named Chelsea. 'As I transition into this next phase of my life, I want everyone to know the real me. I am Chelsea Manning, I am a female,' Manning, 25, said in the statement read by anchorwoman Savannah Guthrie on NBC News' "Today" show. 'Given the way that I feel and have felt since childhood, I want to begin hormone therapy as soon as possible,' Manning said. 'I also request that starting today you refer to me by my new name and use the feminine pronoun.' A psychiatrist, Navy Reserve Captain David Moulton, testified during Manning's trial that Manning suffered from gender dysphoria, or wanting to be the opposite sex, as well as narcissism and obsessive-compulsive disorder."

kdryer39 writes "U.S. District Court Judge Mary Lou Robinson said she will sign an order requiring the American Quarter Horse Association to begin allowing cloned animals to be placed on its registry, according to the organization. A jury last month ruled that the horse association violated anti-monopoly laws by banning cloned animals. The quarter horse association issues and maintains a pedigree registry of American quarter horses, a popular breed associated with cowboys riding on the range in the 19th and early 20th centuries."

kdryer39 writes "Germany's leading telecom provider announced on Friday that it will only use German servers to handle any email traffic over its systems, citing privacy concerns arising from the recent PRISM leak and its 'public outrage over U.S. spy programs accessing citizens' private messages.' In a related move, DT has also announced that they will be providing email services over SSL to further secure their customers' communications. Sandro Gaycken, a professor of cyber security at Berlin's Free University, said 'This will make a big difference...Of course the NSA could still break in if they wanted to, but the mass encryption of emails would make it harder and more expensive for them to do so.'"

sl4shd0rk writes "NSA Director Keith Alexander has decided that the best way to prevent illegal data leaks is to reduce the number of ears and eyes involved. During a talk at a cybersecurity conference in New York this week, Alexander revealed his plans to cut 90% of the System Administration workforce at the NSA. 'What we're in the process of doing — not fast enough — is reducing our system administrators by about 90 percent,' he said. Alluding to an issue of mistrust, Alexander further clarified: 'At the end of the day it's about people and trust ... if they misuse that trust they can cause huge damage.' Apparently, breaking the law and lying about it leaves one without a sense of irony when speaking in public."

sl4shd0rk writes "The American journalist Glenn Greewald, who published much of the initial info on illegal NSA programs, plans to release more revelations on the NSA spying machine in 10 days. 'The articles we have published so far are a very small part of the revelations that ought to be published,' Greenwald said on Tuesday. Greenwald further elaborated on public posturing which many nations are currently taking: 'The Brazilian government is showing much more anger in public than it is showing in private discussions with the U.S. government. All governments are doing this, even in Europe.'" The U.S. decided to pull out of a summit with Russia next month, citing the decision to grant Snowden asylum as a factor: "However, given our lack of progress on issues such as missile defense and arms control, trade and commercial relations, global security issues, and human rights and civil society in the last twelve months, we have informed the Russian Government that we believe it would be more constructive to postpone the summit until we have more results from our shared agenda. Russia's disappointing decision to grant Edward Snowden temporary asylum was also a factor that we considered in assessing the current state of our bilateral relationship. Our cooperation on these issues remains a priority for the United States, so on Friday, August 9, Secretaries Hagel and Kerry will meet with their Russian counterparts in a 2+2 format in Washington to discuss how we can best make progress moving forward on the full range of issues in our bilateral relationship."

An anonymous reader sends this excerpt from a Reuters report: "The federal government is months behind in testing data security for the main pillar of Obamacare: allowing Americans to buy health insurance on state exchanges due to open by October 1. The missed deadlines have pushed the government's decision on whether information technology security is up to snuff to exactly one day before that crucial date, the Department of Health and Human Services' inspector general said in a report. As a result, experts say, the exchanges might open with security flaws or, possibly but less likely, be delayed.'They've removed their margin for error,' said Deven McGraw, director of the health privacy project at the non-profit Center for Democracy & Technology. 'There is huge pressure to get (the exchanges) up and running on time, but if there is a security incident they are done. It would be a complete disaster from a PR viewpoint.' The most likely serious security breach would be identity theft, in which a hacker steals the social security numbers and other information people provide when signing up for insurance."

Rambo Tribble writes "Reuters is reporting on a secret effort by the Drug Enforcement Agency to collect data from wiretaps, informants, and other sources. Considered most troubling is a systematic campaign to hide this program from the courts, denying defendants their right to know how evidence against them was obtained. This agenda targets U.S. citizens directly, as it is mainly focused on drug trafficking. From the article: 'Although these cases rarely involve national security issues, documents reviewed by Reuters show that law enforcement agents have been directed to conceal how such investigations truly begin - not only from defense lawyers but also sometimes from prosecutors and judges. The undated documents show that federal agents are trained to "recreate" the investigative trail to effectively cover up where the information originated, a practice that some experts say violates a defendant's Constitutional right to a fair trial. If defendants don't know how an investigation began, they cannot know to ask to review potential sources of exculpatory evidence - information that could reveal entrapment, mistakes or biased witnesses.'"

New submitter kc9jud writes "The BBC is reporting that NSA whistleblower Edward Snowden has been granted temporary asylum in Russia. According to his lawyer, Snowden has received the necessary papers to leave the transit zone at Sheremetyevo Airport in Moscow, and the airport press office is reporting that Snowden left the airport at 14:00 local time (10:00 GMT). A tweet from Wikileaks indicates that Snowden has been granted temporary asylum and may stay in the Russian Federation for up to one year." Reader Cenan adds links to coverage at CNN, and other readers have pointed out versions of the story at Reuters and CBS.

wiredmikey writes "A shocking and sad day today in the security industry. Well known hacker Barnaby Jack has passed away, sending a shock through the security community. Jack, a famed white hat hacker, was scheduled to present at the Black Hat conference on Tuesday, and present research on vulnerabilities in implantable medical devices. Shocked reactions hit the Twittersphere on Friday, as many in the industry conveyed their condolences, shock, and even disbelief, hoping new of the death was some sort of hoax. 'I just wake up and heard this, really sad, I can't believe this, no words,' Cesar Cerrudo, CTO, IOActive Labs, said in an email to SecurityWeek. Barnaby Jack is probably best known for his ATM hacking demonstrations, which he liked to refer as 'Jackpotting,' and performed at a few conferences, including a demonstration at Black Hat 2010 that got media attention around the world. The San Francisco Medical Examiner's office told Reuters that Jack had died in San Francisco on Thursday, but did not provide additional details."

An anonymous reader points out this story about the latest effort by the U.S. to get Edward Snowden back in the country. "A U.S. Senate panel voted unanimously on Thursday to seek trade or other sanctions against Russia or any other country that offers asylum to former spy agency contractor Edward Snowden, who has been holed up for weeks at a Moscow airport. The 30-member Senate Appropriations Committee adopted by consensus an amendment to a spending bill that would direct Secretary of State John Kerry to meet with congressional committees to come up with sanctions against any country that takes Snowden in."

First time accepted submitter Hugh Pickens DOT Com writes "Reuters reports that under a cost-saving plan by the US Postal Service, millions of Americans accustomed to getting their mail delivered to their doors will have to trek to the curb and residents of new homes will use neighborhood mailbox clusters. 'Converting delivery away from door delivery to either curb line or centralized delivery would enable the Postal Service to provide service to more customers in less time,' says Postal Service spokeswoman Sue Brennan. More than 30 million American homes get door-to-door delivery and another 50 million get their mail dropped at their curbside mailboxes. But the Post Service, which is buckling under massive financial losses, sees savings in centralized mail delivery. Door-to-door delivery costs the Postal Service about $353 per address each year while curbside delivery costs $224, and cluster boxes cost $160 per address. But unions say it's a bad idea to end delivery to doorsteps and will be disruptive for the elderly and disabled. 'It's madness,' says Jim Sauber, chief of staff for the National Association of Letter Carriers. 'The idea that somebody is going to walk down to their mailbox in Buffalo, New York, in the winter snow to get their mail is just crazy.'"

coolnumbr12 writes "A 2009 study (PDF) by the McAfee estimated that hacking costs the global economy $1 trillion. It turns out that number was a massive exaggeration by McAfee, a software security branch of Intel that works closely with the U.S. government at the local, state and federal level. A new estimate by the Center for Strategic and International Studies (and underwritten by McAfee) suggests the number is closer to closer to $300 billion (PDF), but even that much is uncertain. One of McAfee's clients, the Department of Defense, has used the $1 trillion estimate to argue for an expansion of cybersecurity, including 13 new teams dedicated to cyberwarfare. Despite the new data, Reuters said McAfee is still trying to exaggerate the numbers." The $1 trillion study has seen other criticism as well, so the new data is a step in the right direction.

Taco Cowboy writes with news that Microsoft's stock price dropped over 11 percent yesterday. The selloff was the biggest since 2009, and during the day the price was down more than 12 percent at one point, making it the biggest single day drop since April, 2000. Analysts believe the drop was due primarily to the company missing its quarterly earnings projections in addition to taking a massive, $900 million write-down on unsold Surface RT tablets. "Microsoft’s decline is both a consequence of the changing dynamics of the tech world and the incredible surge in its stock price this year. Shares in the maker of Windows had rallied nearly 30% this year, leaving both the broader stock market and the technology sector in the dust. It was, it seemed, Steve Ballmer’s year. Until Friday. The sell off was sparked by fears over the declines of the PC market. Gartner data show PC shipments fell for the fifth consecutive quarter in Q2, this time tanking 10.9% to 76 million units. Being the world’s largest software company, 'over 80% of its revenue and nearly all of its profits continue to be derived by its ubiquitous Windows OS, its server business (Windows Server), and the business division (Office),' according to UBS. And indeed that decline in the PC industry is hurting the company’s bottom line."

New submitter Anita Hunt (lissnup) writes "This snooping hack-in-a-backpack could become a hot Summer accessory, since Reuters reported that 'researchers at iSec hacked into a Verizon network extender, which anyone can buy online, and turned it into a cell phone tower (video interview) small enough to fit inside a backpack capable of capturing and intercepting all calls, text messages and data sent by mobile devices within range.'"

MrMetlHed writes "A portion of this Reuters article about the Pentagon's inability to manage paying soldiers properly mentions that their payroll program has 'seven million lines of Cobol code that hasn't been updated.' It goes on to mention that the documentation has been lost, and no one really knows how to update it well. In trying to replace the program, the Pentagon spent a billion dollars and wasn't successful."

Despite many publishers themselves settling with the DOJ over allegations of price fixing ebooks, Apple held firm and recently went to trial. And now the verdict is in: Apple conspired with major publishers to control ebook prices in violation of anti-trust laws. A trial for damages has been ordered. Quoting Reuters: "The decision by U.S. District Judge Denise Cote in Manhattan is a victory for the U.S. government and various states, which the judge said are entitled to injunctive relief. ... Cote said the conspiracy resulted in prices for some e-books rising to $12.99 or $14.99, when Amazon had sold for $9.99. 'The plaintiffs have shown that the publisher defendants conspired with each other to eliminate retail price competition in order to raise e-book prices, and that Apple played a central role in facilitating and executing that conspiracy,' Cote said. 'Without Apple's orchestration of this conspiracy, it would not have succeeded as it did in the spring of 2010,' she added." Update: 07/10 16:36 GMT by U L : The ruling is now available (160 page PDF).

An anonymous reader writes "After months of back and forth legal filings, Amazon and Apple have finally ended their ongoing dispute centering on Amazon's use of the term 'App Store.' As part of the agreement, Apple agreed to drop the suit and Amazon promised not to counter-sue Apple in the future. Apple spokeswoman Kristin Huguet said that 'we no longer see a need to pursue our case. With more than 900,000 apps and 50 billion downloads, customers know where they can purchase their favorite apps.' Apple initially sued Amazon back in March of 2011 alleging that the online retailer's use of the phrase 'App Store' in its mobile software developer program constituted trademark infringement. Apple expressed that allowing Amazon to continue to use the phrase 'App Store' would ultimately confuse consumers who associate the phrase with Apple's app store for iOS apps."

Asiana Flight 214 from Seoul crashed while landing at San Francisco Airport today. Early reports suggest the plane was unstable as it touched down, which led to the tail of the plane breaking off. There are no official casualty reports yet, but passengers were seen walking off the plane. Preliminary estimates say one or two dead and 75 being transported to area hospitals. (Others are reporting two dead and several dozen injured.) Eyewitness report: "You heard a pop and you immediately saw a large, brief fireball that came out from underneath the aircraft," Anthony Castorani said on CNN. "At that moment, you could see that that aircraft was again starting to lift and it began to cartwheel [Ed: he likely means spinning horizontally, like a top]. The wing broke off on the left hand side. You could see the tail immediately fly off of the aircraft. As the aircraft cartwheeled, it then landed down and the other wing had broken." The media has estimated about 290 people were on board the plane. The top of the cabin was aflame at one point, but it's not known yet whether that affected the passengers. "Federal sources told NBC News that there was no indication of terrorism." Some images from the news make it look like the plane may have tried to touch down too early, hitting the seawall just before the runway.

Al Jazeera and other publications are reporting that Egyptian President Mohamed Morsi has been overthrown by the country's army. General Abdel Fattah al-Sisi, head of the Egyptian armed forces, said in a televised announcement that Morsi had been removed from power, the Constitution had been suspended, and Adli al-Mansour, leader of Egypt's Supreme Constitutional Court, had been appointed to lead the country until elections can be held. "Sisi called for presidential and parliamentary elections, a panel to review the constitution and a national reconciliation committee that would include youth movements. He said the roadmap had been agreed by a range of political groups." According to the BBC's report, "General Sisi said on state TV that the armed forces could not stay silent and blind to the call of the Egyptian masses," and "The army is currently involved in a show of force, fanning out across Cairo and taking control of the capital."

Today President Obama gave a speech outlining the administration's plan to take on climate change. (Video of the speech available on YouTube, and the White House published an infographic as well.) Most significantly, Obama's plan would have the EPA set limits on carbon pollution from all U.S. power plants, a goal already meeting resistance from Republicans. The plan also sets the goal of funding enough solar- and wind-based energy projects on public lands to power over 6 million homes by 2020. By 2030, it aims to use efficiency standards to reduce carbon pollution by 3 billion metric tons. Obama called for new efforts to deal with extreme weather like Hurricane Sandy. He also pointed out the difficulty in getting emerging industrial economies to be environmentally conscious. To that end, the plan calls for the end of U.S. support for financing coal power plants in foreign countries, unless those plants use carbon capture and sequestration technologies. The speech addressed the controversial Keystone XL pipeline, which would carry up to 800,000 gallons of oil per day from Canada into the U.S. Obama indicated that approval for the pipeline would be tied to emissions goals.

Today President Obama gave a speech outlining the administration's plan to take on climate change. (Video of the speech available on YouTube, and the White House published an infographic as well.) Most significantly, Obama's plan would have the EPA set limits on carbon pollution from all U.S. power plants, a goal already meeting resistance from Republicans. The plan also sets the goal of funding enough solar- and wind-based energy projects on public lands to power over 6 million homes by 2020. By 2030, it aims to use efficiency standards to reduce carbon pollution by 3 billion metric tons. Obama called for new efforts to deal with extreme weather like Hurricane Sandy. He also pointed out the difficulty in getting emerging industrial economies to be environmentally conscious. To that end, the plan calls for the end of U.S. support for financing coal power plants in foreign countries, unless those plants use carbon capture and sequestration technologies. The speech addressed the controversial Keystone XL pipeline, which would carry up to 800,000 gallons of oil per day from Canada into the U.S. Obama indicated that approval for the pipeline would be tied to emissions goals.

formaggio writes "According to the Xinhua News Agency, the Chinese government is now allowing courts to punish those who commit environment crimes with the death penalty. The new judicial interpretation comes in the wake of several serious environmental problems that have hit the country over the last few months, including dangerous levels of air pollution, a river full of dead pigs, and other development projects that have imperiled public health."

Contributor Tom Geller writes: "I recently wrote an article about Bitcoin and the law for Communications of the Association for Computing Machinery. In researching it I ran into plenty of wishful thinkers, ridiculous greedheads, and out-and-out nutbags promising a rosy future. I also found the expected blowback from vehement naysayers who think the best way to combat crazy is with more crazy. But despite that, I walked away believing that Bitcoin — or a decentralized cryptocurrency like it (let's call it "Coin") — is here to stay. As an interested outsider to the Coin economy, and a long-time technology commentator, here's what I think its future holds." Read on for Tom's predictions. Coin's primary use will continue to be in international transactions.

While people wonder "When will I be able to pay for groceries and utilities with Bitcoin?", that use might never come. But Coin already shines in international transactions, where it provides a clear advantage over current systems, which are expensive and complicated hassles. That's why PayPal has become the go-to solution: it just works, albeit with typical fees around 3-5%.

Coin reduces that fee to a small fraction of 1% (when sent directly), and is available in places where PayPal fears to tread (Zimbabwe, Pakistan, etc.). Coin transactions occur instantly, with no intermediary, and — for better or worse — without recourse.

That leads to Coin's second primary use: to store liquid value in places where other stores (such as national currency) are unreliable. For all the cries that Bitcoin is "unstable", it seems to have settled quite nicely after its April spike. Certainly it looks appealing to anyone in an unstable country, and it's even tempting for those in places where the currency's been on a long, slow slide, like Argentina.

Coin's big vulnerability is its interface with national currencies ("real money").

None of this matters if you can't get your money out again. And that's where governments are taking a close look at Coin — with good reason. First, Coin exchanges have a terrible track record; second, such points of exchange are bottlenecks through which financial crimes often flow.

In the U.S., the government's Financial Crimes Enforcement Network (FinCEN) issued guidance asserting its right to regulate "Money Services Businesses", and defining exchanges dealing in virtual currencies (including Bitcoin) as such. That's a problem for many existing Coin exchanges, as the costs for complying with regulations are high. But if there's not a stable and reliable way to get national currency in and out of Coin, its value will plummet.

Conversely, Coin's value is likely to shoot up if this interface gets easier. Right now, it's surprisingly hard to buy Bitcoin (et al.) directly with U.S. dollars. Most methods require bank wires, tricky multi-step workarounds, and high fees. (I found Coinbase to be the most accessible, albeit with long delays and a bank verification procedure similar to PayPal's.) If Coin becomes as easy to buy as a gift card and redeemable at every bank, its practical utility will soar for everyday people.

No government will make Coin illegal.

Despite bloviation by a few politicians and baseless statements in the press, Coin is not per se illegal, and there have been no serious attempts to make it so. The FinCEN guidance mentioned earlier explicitly says that ordinary users — those who buy and sell using Coin — are "not subject to FinCEN's... regulations for MSBs". It's possible that other government agencies will continue to claim authority, but there doesn't seem to be much support for it.

A lot of noise has been made about Coin's use in illegal business, for example on Silk Road (where it's the only currency). But law enforcement is realizing that the currency isn't to blame, much as they've started to say that Craigslist isn't responsible for crimes organized through its ads. I predict that that distraction will continue to surface from time to time, but will essentially die soon.

Even if governments attempt to illegalize Coin, there's only so much they could do to criminalize ordinary users. Again, Coin's real vulnerabilities are higher up the chain. However....

If Coin succeeds, governments will get involved — for the better.

"Noooo!!!" scream the cryptoanarchists who are Coin's pioneers. "Keep the government out of this! Coin can't be controlled! Nobody can take away our freedoms!" What they don't realize is that this attitude doesn't reflect the values of Coin's future users. The benefits of "freedom" matter to the innovators; convenience and safety matter to those who follow.

"Government" in this case could also be a government-size corporation, syndicate, or other entity. The important thing is that it's big enough to administer, back, and enforce initiatives to protect the Coin economy. Whatever that "bully entity" is, Coin adopters will welcome it because of two major flaws currently in (Bit)Coin's design.

First, Coin is ridiculously easy to destroy by accident. If you lose the private cryptographic key that identifies your coin, it's gone. Not just stolen, but removed entirely from the economy, so nobody will ever own it again. Consider these stories on Bitcointalk.org, where within a few messages the cumulative total tops 10,000 BTC — currently valued around a million dollars. A central authority could address this in several ways such as tracking, restitution, etc.. People don't care that their cash is anonymous when the rent money disappears.

Second, the entire system is vulnerable to a brute-force attack. Without getting into the specifics, Coin (well, Bitcoin) works because it assumes that at least 50% of the computer power on the network is held by honest players. But a recent 51% attack on Feathercoin (a Coin with much lower capitalization) showed that it's possible for a single party (or syndicate) to trump that.

Let's do the math for Bitcoin, the Coin with by far the highest capitalization, at just north of USD$1 billion (1 x 10^9). To reliably overwhelm the network, you'd need computing power delivering about 100,000 gigahashes per second. Computers optimized for Bitcoin processing are currently available for about $1,000/gigahash, so sufficient computing power can be bought for $100 million. Electricity cost for the deed would be about $200,000/day.

O.K., it's not something a basement hacker could whip up. But there are over 400 people, and thousands of syndicates with a billion dollars in the U.S. alone. Perhaps at least one of them is crazy enough to drop 1% of the wealth to partially control (or completely destroy) a billion-dollar system. (Hell, one of them recently spent 1/10th of that price tag on his wedding.)

Those are only the two biggest technical concerns. Then there's the galaxy of financial services (such as insurance) that's available for fiat money, but which would be hard or impossible to provision for Coin without a central authority. Time could overcome these barriers; a bully entity would overcome them faster, and with greater public buy-in.

Bitcoin is not the end game.

Along those lines, I don't believe that Bitcoin will be the ultimate winner in this game. It's the 1.0, and a brilliant first effort at that. But it's not perfect, and several pretenders to the throne already claim to fix some of its bugs. In fact, shifting conditions may require periodic issuance of new Coin as a matter of course. (As I said before, I believe such issuances will involve a central authority.)

These predictions all assume that Coin will grow, and there are many reasons it might not. However, I'm bullish on it for the long-term. It's already proven its value in use; the public is used to handling Coin-like money (viz. Square Wallet); and its first major hurdles are in the past. Now it's ready to enter a fascinating future.



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Tom Geller (tomgeller.com) writes about technology and business. He's best known for Drupal-related work that includes eight video courses for lynda.com, a book for Peachpit Press, and corporate work for Acquia, Commerce Guys, and others. He first became involved in computers as a grade-school student in 1976, playing "Hunt the Wumpus" on a 100-pound monster that spewed tractor-feed paper onto the floor. He lives in Oberlin, Ohio.

Reuters reports that Saudi Arabia's government, after banning Viber within the kingdom, is poised to prohibit at least two other such communication apps: Skype and WhatsApp. Says the article: "Conventional international calls and texts are a lucrative earner for telecom operators in Saudi Arabia, which hosts around nine million expatriates. These foreign workers are increasingly using Internet-based applications such as Viber to communicate with relatives in other countries, analysts say." With fewer legal options, a wide-scale Internet censorship regime would be easier to implement, too.

curtwoodward writes "Amazon has been delivering groceries to people in its hometown of Seattle for a half-dozen years, but the experiment has never spread any further. But this year, rumors about Amazon Fresh expanding to new cities are coming out every month — Reuters just reported that Amazon could start the service in L.A. within a week, and in San Francisco in the coming months. What gives? Why expand now? Look no further than Amazon's long-running battle with state and federal governments over sales tax policy. After more than a decade of resistance, Amazon has spent the last two years cutting deals to collect sales taxes in states all over the country. And it's pushing for a national online sales-tax system, which appears to be within reach. That's the last obstacle to Amazon getting into the grocery-delivery game — a step that should worry not only grocers, but UPS and FedEx, too."

Etherwalk writes "Huang Chengqing, China's top internet security official, alleged that cyberattacks on China from people in the U.S. are as serious as those from China on the U.S. 'We have mountains of data, if we wanted to accuse the U.S., but it's not helpful in solving the problem.' Huang, however, does not necessarily attribute them to the U.S. government just because they came from U.S. soil, and he thinks Washington should extend the same courtesy. 'They advocated cases that they never let us know about. Some cases can be addressed if they had talked to us, why not let us know? It is not a constructive train of thought to solve problems.' In response to the recent theft of U.S. military designs, he replied with an observation whose obviousness is worthy of Captain Hammer: 'Even following the general principle of secret-keeping, it should not have been linked to the Internet.'" A few experts think China's more cooperative attitude has come about precisely because the U.S. government has gone public with hacking allegations.