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Foundstone Shoe On Other Foot

Cimmer writes "One of the premier hack shops (to pun or not to pun) gets busted for unethically ethically hacking. After filing a lawsuit against former employee JD Glaser for supposedly jacking company source code, Foundstone gets nailed for massive internal software piracy. Tonight's entree: Foot in Mouth."

24 of 255 comments (clear)

  1. Uneasy truce: white hats and their employers by mao+che+minh · · Score: 4, Interesting
    You have to love it when law and politics gets their claws into the ever-shady business of white hat hacking. These types of cases hit the news every once in a while. I suppose that such risks are part of the game, but what would I know? Up until last month I thought that hacking was a lot like flying through a wire-frame cityscape.

    I once worked with a terrific cracker (he ended up doing time for hacking into NASA owned systems at the University of Florida - in fact, I believe that he is still incarcerated). He really knew his shit, especially when it came to invisibly manipulating Cisco equipment and covering his tracks in Unix/Linux/BSD logs. He was also somewhat of a coder. He was kind of scary in a way. It was funny to see how much the entire operation of the IT department changed once we found out how good we really was, and how much the manager started reviewing technology laws. He was on our side, our white hat, and still everyone was immensely wary of him.

    Even though he effortlessly secured three large networks and found glaring problems with our state-wide backbone, he was canned out of fear. He was later found guilty of causing damages to the network after his termination, at the same time he was busted for the NASA fiasco (the FBI had been watching his movements for some time). In hindsight, I can say that our cautious approach towards him was warranted, even though it caused him obvious grief when he was employed with us.

    Hell, he will be making twice my salary at McAfee or something when he gets out of prison anyways, why am I feeling bad for him?

    1. Re:Uneasy truce: white hats and their employers by packeteer · · Score: 4, Insightful

      Most hackers who can cover their tracks get caught in a less technical way. Just becuase your a good cracker doesn't mean your a good criminal. There is much more to commiting a crime then the actual execution. Most criminals plan up to and including their crime but rarely what they will do afterwards.

      --
      unzip; strip; touch; finger; mount; fsck; more; yes; unmount; sleep
  2. Corporate piracy is evil by Graspee_Leemoor · · Score: 5, Insightful

    Corporations who use one legal copy of software to install on all their company machines are doing damage to open-source.

    Think about it: If it were impossible for them to just rip-off Windows, Outlook, Office, Ultraedit etc. they would use Linux, Evolution, OpenOffice, Scite/emacs/vi/whatever, since they obviously don't want to spend any money on software.

    graspee

    1. Re:Corporate piracy is evil by mako · · Score: 4, Insightful
      Maybe but remember this is a special situation. A security company researching vulnerabilities must have at their disposal a huge quantity of software. Not just the stuff that they personally like to use, but, the stuff everyone else uses. Of course a researcher also often needs multiple versions of the same product. Therefore, it does not surprise me that such a company would commit copyright infringement in order to get some piece of software they will only use for a short time while testing something.

      I was wondering when this issue would raise its ugly head. After all how many amateur bug finders have the bucks to properly license all of the software they test. It seems natural to me that large companies seeking retribution against a leaked 0-day might investigate such a thing.

    2. Re:Corporate piracy is evil by Graspee_Leemoor · · Score: 5, Insightful

      "A security company researching vulnerabilities must have at their disposal a huge quantity of software."

      Which they can buy with the huge quantity of money they get from clients.

      "...it does not surprise me that such a company would commit copyright infringement in order to get some piece of software they will only use for a short time while testing something."

      If they are testing it for a client they can factor the price of the software into the price they charge the client. If they are just researching it to advance the state of knowledge in the company then they can buy it from company funds.

      "After all how many amateur bug finders have the bucks to properly license all of the software they test"

      These are not amateur bug finders though, they are a "professional" company.

      The bottom line is that nearly every business will do everything they can to maximise PROFIT, even if it means limiting the ability of other people to do the same.

      Remember the 169th rule of acquisition:

      "Competition and fair play are mutually exclusive.".

      graspee

    3. Re:Corporate piracy is evil by swb · · Score: 4, Interesting

      Even the most rigid places are willing to bend the rules for licensing when it comes to testing.

      Sometimes its entirely legitimate -- building a new box for some CAD guy; he can't stop working on the application while the box is built and tested, and we can't get the box built and tested without the license. The same has to be true in a zillion different production hardware swapouts. The old box is wiped when the swap is completed, so there's no production use of two copies (although one place I worked had a circular buffer about 90 days long for old hardware, and the old box sat untouched during the days until it got reused, just in case something was missed).

      Sometimes its somewhat less legitimate, like the support guy that has a whole suite of applications installed on his every day machine so that he can try to replicate problems from the people that make production use of it. They're not installed/uninstalled/reinstalled to test each problem, since that would take hours, but since they're not used to actually do production work, no one interprets the licensing rules to say that the copies are illegitimate.

      I call that one somewhat less legitimate than the first, which is a legitimate chicken-and-egg problem, because the apps are staying resident on the machine, usable. I personally think it's a fair exception to make, since that test suite of applications aren't making anyone money from their use, and the total usage of a couple of hours per month in a 'test' mode would never pass the finance people's justification for the $10k it would take to buy them.

      And then there's the "backup server" that doesn't even get turned on but to sync configs with the production box once in a while or as a total drop-in replacement when the production server stops being usable.

      I'm sure there's 1001 variations on these kinds of rule-bending, but I've never worked someplace so inflexible that they required new licensing (or at least a 10+ copy slack) to cover legitimate IT maintenance issues. If the SPA nazis aren't going to give us some slack, how can we make their applications usable?

  3. So much for food by BrynM · · Score: 4, Funny
    While picking out pieces of fur-embedded squirrel meat from the treads
    There I was thinking "I'll sit down, eat dinner and read some slashdot". So much for that appetite now... My dog enjoyed the burger though. I love writers that create imagery.
    --
    US Democracy:The best person for the job (among These pre-selected choices...)
  4. Winzip by Anonymous Coward · · Score: 5, Insightful

    How many of you run Winzip without a valid license?

    1. Re:Winzip by codepunk · · Score: 4, Funny

      hmmm, I usually just type zip in my bash shell and it is just there? I guess, no I don't have a license for Winzip.

      --


      Got Code?
    2. Re:Winzip by jpetts · · Score: 5, Funny

      but I'm a rabid RAR zealot :^)

      Rar! Rar! Rar!

      --
      Call me old fashioned, but I like a dump to be as memorable as it is devastating - Bender
  5. Quick summary by Anonymous+Brave+Guy · · Score: 4, Informative

    Read the damn links. Everything you mention is covered, clearly and pretty unambiguously, in the two fairly short articles cited.

    In summary, though, lots of current and ex-employees of Foundstone are backing up claims that the guys at the top had wholesale software piracy going on in-house. This partly came to light as a result of going after another company, started by one former employee and now including several more, that developed a product in the same industry in a time that, according to Foundstone guys, wasn't possible without stealing their vitally important trade secrets. Except that they forgot to say what those secrets were, the other company's product was much smaller scale than the mainstream corporate offering from Foundstone, and most of the info is likely to have been freely available or at least widely known in the business, and not trade secret at all anyway. As a result of this lot, the judge who initially forbade the other company from shipping their product lifted that injunction a month or so later on the basis that there was basically nothing but someone from Foundstone's say-so that anything was wrong.

    Now go read the articles, please.

    --
    If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
  6. Re:A Credibility Nightmare by Anonymous Coward · · Score: 5, Funny

    You're a moren.

  7. Funny quote from the article... by djupedal · · Score: 4, Funny

    "In some ways the Foundstone tale is a microcosm of the ugly side of the dot-com craze--arrogance, greed, mismanagement, and stupidity."

    The ugly side?

    Spare me 'the pretty side'...I don't want to know...ok, ok..someone tell me about the pretty side of the dot-com craze... Jennifer, in accounting, perhaps? A pale yellow BMW M3 parked on the sand at Pismo Beach? A new pair of oversized Berkenstocks? A shiny new blade server with redundant power supplies and terrabytes of fiber laced storage? Corner office with a wet bar?

  8. SCO Sues both... by Anonymous Coward · · Score: 4, Funny

    SCO is reportedly sueing both companies saying that it was their source to begin with!

    J

  9. Not Suprising by j_kenpo · · Score: 4, Insightful

    Im actually very suprised at the reaction to this. How many of you have worked for small to mid-size IT related companies that havnt used unlicensed software of some sort. Its somewhat contradictory for a company to cry theft when they are thieves themselves, but then again as the old saying goes there is not honor among thieves. Ive worked for a few, and it doesnt suprise me one bit. Im not in shock or awe by this. And for a company that is one of the formost authorities on computer security to take part in cracking software isnt far fetched and is happening right now by other companies. If its for a proof of concept or for cheating the financial responsibilities. And as far as the accusation that they took the concept of the Extreme Hacking courses for their Ultimate Hacking courses, so what. How many smaller companies were founded by formers of other companies that applied their skills to do their own start-ups. This isnt ground breaking, its business as usual, even if it unethical. The only thing is since this article was pressed by Fortune, quite a bit of financial damage will be done to Foundstone, but thats the risk you take when you attack former employees when partaking in unethical practices.

  10. Two completely seperate issues here. by evil_roy · · Score: 4, Interesting

    From the articles it would appear that Foundstone preach security and educate corporate clients & toughen their clients networks. This is done for all the valid security reasons, but is third party licensing protection part of this? No way - it is a different issue.

    This is like saying that they haven't registered their cars - it is an issue,but not one that would affect their business or their abilities.

    I would see some of the moronic management practices that are mentioned in the article as grounds for ceasing business with these clowns, but I cannot see why a client cares less if their consultants use legit licensed software or not. If you are buying software from them, or outsourcing work directly to them then the answer is different, but these guys IP theft has no bearing on their output, it only affects their profit margin.

    Their risk - their choice - their business.

  11. I don't by Eyston · · Score: 5, Funny

    This copy of WinXP Pro I found on the net does it automatically, so there!

    -Eyston

  12. There are always two sides to every story kids... by Anonymous Coward · · Score: 5, Informative

    Found this on Foundstone.com:
    FS Responds to Fortune

    To our valued customers, partners, vendors and future customers,
    The current issue of Fortune Magazine contains a lengthy article about Foundstone that significantly misrepresents the way we do business, and wrongly states that Foundstone does not respect intellectual property rights. I am writing to tell you some key facts surrounding this matter, and to correct some of the irresponsible misrepresentations and factual errors in the Fortune story.

    Foundstone rigorously defends its commitment to protect intellectual property rights, and the intellectual property rights of other software makers. To demonstrate Foundstone's commitment to protecting the commercial use of other software, an independent, 3rd party audit was completed on May 2 (more than a month prior to this article). According to Harvey Liss, President of VLSystems, which conducted the independent audit, "The vast majority of the software applications running on the 510 active Foundstone systems were properly licensed. Including operating systems and applications, several hundred software programs are in current use by Foundstone and over 95% were identified as properly licensed. In our experience, having performed numerous software licensing audits, this is among the higher rates for pre-audit compliance." We recognize that for a company whose very foundations are built on protecting intellectual property, anything less than complete compliance is not acceptable. Our aggressive growth is not an excuse for non-compliance. We've taken the necessary steps to identify non-compliance and have immediately applied corrective action through new policies, procedures and education.

    The sources and recent timing of these defamatory statements about Foundstone to Fortune Magazine is not a coincidence. Unfortunately, Foundstone was forced to file a lawsuit against NT Objectives, Inc. because of the misappropriation of trade secrets and our unsuccessful attempts in obtaining key information and a reasonable level of cooperation from NTO. Foundstone recently received some favorable rulings in arbitration that would allow Foundstone full discovery rights to review NTO's code. From the very beginning, NTO has vehemently objected to full discovery, even though they proclaim innocence. This Fortune article is a deliberate attempt to shift focus away from the facts of the case and divert attention to rumor, innuendo, and misinformation.

    Our loyal customers and market standing speak for themselves. While macro economic factors are negatively impacting other high-tech firms, Foundstone continues to buck the trend with impressive revenue growth, employee growth (Foundstoneâ(TM)s attrition rate is below the industry average), expanded product offerings, and solid financial stability. Foundstone respects the interests of our partners, vendors and associates, and will continue to deliver the highest quality products and services to meet the needs of current and new customers.

    If you have any questions about this article, I invite you to call me or Stuart McClure and weâ(TM)d be happy to give you the facts.

  13. Re:winzip license by IvyMike · · Score: 5, Insightful
    • Anti-piracy method 1: Spend a lot of time and effort trying to keep ahead of the serial# spreaders and/or crackers, yet still fail pretty miserably, as every other program out there does. Only the honest people actually pay.
    • Anti-piracy method 2: Sit back, drink a beer, don't give a rat's ass, and the honest people still pay.
    Personally, I think WinZip's got the right idea.
  14. On fear. by mindstrm · · Score: 5, Insightful

    Partly, it's the way people act that causes fear.

    I guarantee if someone that good acts very professionaly, doens't brag about what they do, and keeps a low profile with regard to their skills, they won't have problems. If you present yourself as a rogue living on the edge, people will not trust you.

    An employer will not fire you JUST because you know how to pick a lock, but the fact that you constantly talk about what locks you picked might scare him a little.

  15. In related news... by mabu · · Score: 4, Funny

    A reliable source claims that SCO is looking into legal action against Foundstone for infringement of their patent on Irony.

  16. Bad for the industry, not just slashdot by akad0nric0 · · Score: 5, Insightful

    This does not bode well for the industry as a whole. Think about how many companies share Foundstone's silhouette - young company, killer app, grows fast from nothing - like netForensics, ISS, et. al.

    In my experience as a security analyst, the industry is chock full 'o great products that large companies hesitate to invest in because they're not IBM, Symantec, or the like. Giving 6 digits of cash to a company that could concievably go under in a year is a hard sell on my boss's boss (who signs the contracts) - and with good reason. As a result, we're left with awesome support for products that aren't always the best (IBM), or worse yet, crappy products with no support from a big company (CA).

    By doing this, Foundstone has hurt a good chunk of the industry holding some great products, and by association (albeit to a lesser extent) hurt end-users of security apps like me.

    --
    akad0nric0

    This sentence no verb.
  17. They tried to violate the GPL too by nicholasharbour · · Score: 5, Interesting

    This company had tried to market a ext2fs undelete tool to the computer forensics market. I looked through the binary and found several references to lib ext2 (they left all debugging symbols in so I could see exactly what files they had compiled and linked). the ext2 library is GPL and not LGPL so therefore their program should have been GPL. When we told them about it, they just wrote back and basically said "we arent violating anything". a short while later the tool disappeared from the market. Food for thought.

    --

    Nearly half of all people are below average
  18. THE RULE IS: by clambake · · Score: 4, Insightful

    Don't piss people off. No matter how much you think you are right, and how much you think they deserve it. Just don't do it. Would Foundstone have lost it's reputation and been charged with so much piracy if they had just let this guy go, shurgged it off and gotten on with thier lives?

    No, nothing would have happened.

    The worst thing would have been that, even if this guy really did steal code, they would have a tiny new competitor with no name recognition and no clients. Just another dot-com waiting to fall flat on it's face...

    If you go out of your way to not be an asshole, even to people who richly deserve it, you'll find that your life is signifigantly mor etrouble free. Maybe you don't get that two-second moment of childlike glee when you "stick it to them", but then again, is that worth possibly losing the entire company for? Foundstone thinks it is, but I disagree.