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Murdoch Faces Allegations of Sabotage

Presto Vivace writes "Neil Chenoweth, of the Australian Financial Review, reports that the BBC program Panorama is making new allegations against News Corp of serious misconduct. This time it involves the NDS division of News Corp, which makes conditional access cards for pay TV. It seems that NDS also ran a sabotage operation, hiring pirates to crack the cards of rival companies and posting the code on The House of Ill Compute (thoic.com), a web site hosted by NDS. 'ITV Digital collapsed in March 2002 with losses of more than £1 billion, overwhelmed by mass piracy, as well as technical restrictions and expensive sports contracts. Its collapse left Murdoch-controlled BSkyB the dominant pay TV provider in the UK.' Chenoweth reports that James Murdoch has been an advocate for tougher penalties for pirates, 'These are property rights, these are basic property rights,' he said. 'There is no difference from going into a store and stealing a packet of Pringles or a handbag, and stealing something online. Right?'"

38 of 201 comments (clear)

  1. Rupert Murdoch has no scruples. by Anonymous Coward · · Score: 5, Insightful

    This guy is basically like Mr. Burns on the Simpsons. What a horrible excuse for a person.

    1. Re:Rupert Murdoch has no scruples. by philip.paradis · · Score: 5, Funny

      Mr. Burns is funny, which has value. This is not funny.

      --
      Write failed: Broken pipe
    2. Re:Rupert Murdoch has no scruples. by jhoegl · · Score: 3, Insightful

      Yeah, but do you really think this is the only business that does this kind of thing?
      Hint... no... no you shouldnt think that.

    3. Re:Rupert Murdoch has no scruples. by Anonymous Coward · · Score: 5, Insightful

      Call me a cynic, but when a wealthy sonofabitch who we all know corrupts the politics of multiple countries and plays dirty is caught at doing something like this, I think it's time for a good chuckle. My only hope is that if he ever really goes down, he'll take a few politicians down with him. He's enough of a scumbag to do it if he ever really loses his sway.

    4. Re:Rupert Murdoch has no scruples. by Wrath0fb0b · · Score: 4, Insightful

      And what about all the nerds that actually did it? It's not like he sat around writing code himself. What about their (existent?) scruples? Did they know who paid them or wonder why? Did they just ignore those questions so long as they could?

      You want to read this as a morality play about how a bad man did something wrong. I want to read it as being about how some pretty smart coders ran pretty sophisticated hacking ring and either be oblivious or indifferent to the fact that they were acting as modern-day thugs smashing up a rival's store.

      It's the old "bad apples" routine -- or as Solzhenitsyn put it more eloquently: "If only there were evil people somewhere insidiously committing evil deeds, and it were necessary only to separate them from the rest of us and destroy them. But the line dividing good and evil cuts through the heart of every human being. And who is willing to destroy a piece of his own heart?â

    5. Re:Rupert Murdoch has no scruples. by TWX · · Score: 5, Insightful

      Yeah, but do you really think this is the only business that does this kind of thing?

      It may not be the only business that does this kind of thing, but it certainly seems to be the most visibly blatant at the moment, and that's telling for an organization that controls such a large amount of the media in the areas its malfeasance is being reported in.

      Seeking to crack opponents' tech, not a surprise.

      Hosting a site or forum dedicated to the tech, including security and the like, meh.

      Seeking to create ever-stronger penalties for violations of security, expected.

      Using corporate resources to crack a competitor's technology and intentionally posting the technical information needed to allow others to also crack said technology, while advocating for laws that should theoretically result in essentially a corporate death penalty- that's a surprise.

      Corporations are chartered by the government. Simple solution, revoke their charters when the violations stack on like we've seen with News Corp. Force the assets into auction, require revenues to pay legal damages and then distribute what remains proportionally to those stockholders that weren't also employed in the company and engaging in the wanton illegal activity or directly managing those who were.

      If corporations faced their charters' revocation, and if egregious offenders actually saw this happen from time to time with dramatic losses to stockholders, maybe stockholders and corporate officers would reduce the amount of corruption in their ranks.

      --
      Do not look into laser with remaining eye.
    6. Re:Rupert Murdoch has no scruples. by Y-Crate · · Score: 5, Insightful

      And what about all the nerds that actually did it?

      They'll inevitably get hefty prison sentences, while Murdoch goes free with a "please don't do any more bad things until the next time you do bad things" warning.

    7. Re:Rupert Murdoch has no scruples. by ravenshrike · · Score: 3, Insightful

      Murdoch's only god is money. He runs Fox News cause it's a giant market no one else was exploiting.

    8. Re:Rupert Murdoch has no scruples. by lexsird · · Score: 3

      Great solution, mine was not so eloquent. It was shoot them all in the fucking head and be done with it. I think your solution is far better, it hurts them deep in the pockets and across the range of investors, and sets an example for other corporations and their investors. Mine isn't a good long term solution, it doesn't set up for a long standing accountability, they could avoid getting shot. Whereas using the law to strip them of their ill gotten gains and inflict them with punitive damages can be sustained as long as we have vigilant people who have learned from this era of corporate criminal corruption.

      --
      Take the Red Pill.
    9. Re:Rupert Murdoch has no scruples. by lexsird · · Score: 3, Insightful

      Let's call it what is is. It's not stupidity, really. It's the results of nationalist propaganda, corporate and capitalist propaganda, a completely shitty education system that undermines the very principles of education, Christianity selling out to politicians, AND jackass propaganda machines like Faux News. Of course, you have ignorance, prejudices, racism, sexism, bigotry and delusions of grandeur, but just calling it "stupid" doesn't do it justice.

      Hmm..looking at that, perhaps you have a point. It could easily be summed up to we have a lot of fucking stupid people. But what can you do?

      --
      Take the Red Pill.
    10. Re:Rupert Murdoch has no scruples. by dbIII · · Score: 3, Insightful

      That's just where the biggest English speaking market in the world is, so yes, by sheer weight of numbers they are. You could say "more Americans are x" where x could be just about anything, so don't take it personally.

    11. Re:Rupert Murdoch has no scruples. by Xest · · Score: 4, Interesting

      Really? Did you not see Sunday's headlines in the UK?

      A Murdoch publication published evidence of the Conservative party's deputy treasurer admitting you could buy access to the prime minister and influence policy for a £250,000 party donation.

      Nice to see these things exposed, but the timing and target weren't exactly coincidence. Murdoch knows he's on a downwar spiral in the UK and is already trying to take the PM with him.

      I'm not convinced Murdoch will get away with it this time, there's too much public anger and opposition pressure. Now that some semi-independent authorities in the police, judiciary, and oversight committees have become involved it's arguably even past the point it can be sweeped under the carpet.

    12. Re:Rupert Murdoch has no scruples. by aynoknman · · Score: 5, Funny

      Rupert Murdoch does not control Fox News. Fox News is controlled only by the sincerest desire to provide fair, balanced, truthful reporting. How could you possibly believe otherwise?

      --
      We need a "+1 -- nice sig" moderation.
    13. Re:Rupert Murdoch has no scruples. by Custard+Horse · · Score: 5, Insightful

      Sadly I think that it will be swept under the carpet. Murdoch has already replaced the News of the World with a Sunday edition of The Sun so everything is as it was before. The fact that Murdoch also owns the more respectable The Sunday Times means that he has both ends of the market.

      What we really need it for Murdoch's hapless son to be put in the frame for something serious only for him to give evidence against his father and bring the whole lot crashing down - including the politicians and police officers who have been paid off over the years.

    14. Re:Rupert Murdoch has no scruples. by dintech · · Score: 5, Funny

      Well, it's all fucking unraveling for Murdoch. It couldn't happen to a nicer person. Schadenfreudegasm.

    15. Re:Rupert Murdoch has no scruples. by bfandreas · · Score: 4, Interesting

      This is not as far away as you might think.

      I'm heavily involved with a couple of huge European chemical companies and they found out that sustainability is the only thing that will keep them afloat for another century. They test if their reps are corrupt, if ethical guidelines are followed, that they don't leave a mess, how their employees fare worldwide, if they eed to get involved in education and how far away they are from their own goals. Which still is quite a bit. But still.

      The frequent corruption scandals German industry faced and a few other desasters have caused a serious shift in what they think is needed. Stockholders don't quite get it but they are still doing fine.

      Now I reckon this is also the case in other companies(I only consult those) so this makes Muroch Corp look like a bit of a dinosaur. You will not be able to steal, cheat, lie and sleaze your way to the top and can expect to end up with a slap on the wrist. Quite a few execs of Murdoch Corp are now facing charges, some are in jail. Also Murdoch had politics by the colloar for quite a while and now that public opinion swings the other side you can expect something quite drastic to happen in GB.

      There's an old Fry&Laurie sketch on Murdoch, that's how long his sleaze has been public knowledge.

      SCHADENFREUDEGASM indeed(thanks, dintech).

      --
      20 minutes into the future
    16. Re:Rupert Murdoch has no scruples. by Stormthirst · · Score: 3, Insightful

      Except in corporate America this kind of behaviour is celebrated, not punished. I can hear the politician (Democrat or Republican, though I suspect the Republicans would be loudest) bemoaning how the job creators are being punished for doing what job creators do.

    17. Re:Rupert Murdoch has no scruples. by T.E.D. · · Score: 5, Funny

      Actually, assuming it does happen to someone else, it would be next to impossible for it to not happen to a nicer person.

    18. Re:Rupert Murdoch has no scruples. by Quiet_Desperation · · Score: 4, Funny

      OK, I"m testing that.

      I went to the fair, met an acrobat named Fox who balanced on a beam, and got some News from the crier.

      Science!

    19. Re:Rupert Murdoch has no scruples. by mcgrew · · Score: 3, Informative

      He sounds exactly like the sleazeballs from the M.A.F.I.A.A. FTFS:

      'These are property rights, these are basic property rights,' he said. 'There is no difference from going into a store and stealing a packet of Pringles or a handbag, and stealing something online. Right?'"

      Wrong. If I steal a handbag, gles the store no longer has that handbag. If I make a copy of that handbag, the store has lost nothing. And, this comment is NOT my property, not according to the US Constitution. It belongs to everyone, I merely have a limited time monopoly on its publication, NOT ownership.

      "Intellectual property" is a lie. If you have to lie in order to make your case, your case is damned weak.

  2. Re:Is there evidence that Murdoch knew about this? by Isca · · Score: 3, Interesting

    I wonder how much Fox news will report it. You can't tell me all the other networks aren't going to have a field day with this in the US.

  3. Hypothetical legal question by Michael+Woodhams · · Score: 5, Interesting

    If ITV Digital was a publicly traded company
    And it has ceased to exist due to bankruptcy
    And the bankruptcy proceedings have been all wound up
    And the allegations against BSkyB are true
    And BSkyB can be successfully sued for large damages for what they did to ITV Digital

    Who could bring such a suit? How would the proceeds be distributed? The obvious candidates are ITV Digital's creditors (who got paid less than they were owed) and ITV Digital's shareholders. However, it won't always be clear who owns those shares and bad debts, as they've been assumed to have zero value, so haven't been tracked since the end of bankruptcy.

    --
    Quattuor res in hoc mundo sanctae sunt: libri, liberi, libertas et liberalitas.
  4. Re:WAKEUP! by XDirtypunkX · · Score: 3, Interesting

    Unfortunately no one has invented a vaccine for being an ass-hat. Until someone does, these things will continue.

  5. Re:Is there evidence that Murdoch knew about this? by Guppy06 · · Score: 5, Insightful

    Murdoch has enough money to buy plausible deniability.

  6. Has anyone else noticed,...? by drmofe · · Score: 3, Funny

    ...the close resemblance between Rupert Murdoch and Emperor Palpatine...?

    1. Re:Has anyone else noticed,...? by jfengel · · Score: 4, Funny

      Given that this:

      https://www.google.com/search?q=Rupert+Murdoch+and+Emperor+Palpatine

      yields 16,000 results, I'm gonna go with "yes".

  7. Well known, even on Slashdot, hardly news now by Anonymous Coward · · Score: 5, Interesting

    NDS card hacking has been well known for a long time. They spent a year with some 30 guys using electron microscopes to reverse engineer their competitor's cards. When they published each new revision, they destroyed the Dish network's profitability for years, and everyone else using their competitor's technology. NDS mades the cards for DirecTV. They actually rate the security of their chips in electron-microscope years. This is well known, and well known that NDS and DirecTV are more Murdoch properties. I'm sure the people who have been discussing this for years are not surprised by the phone hacking scandal, which is like comparing pre-school with ... electron microscope school?

  8. News Corp Caught Hacking in US by Required+Snark · · Score: 5, Informative
    News Corp already has a track record of computer crime in the US in 2004.

    News America Marketing, the division of News Corp. that was going head-to-head with Floorgraphics, later admitted that someone in its office had illicitly accessed its competitor’s password-protected website. But an internal investigation, as well as subsequent probes by the FBI and the Secret Service, failed to pinpoint the person responsible.

    Years later, after Floorgraphics’ lawsuit against News Corp. was settled and Henderson had received what he called a handsome exit payout, he openly talked about getting a peek at Floorgraphics’ forthcoming ad campaigns. Henderson’s co-workers didn't always know how much faith to put in their boss’s claims, but he certainly wasn’t one to mince words.

    “He admitted he had information from inside Floorgraphics’ computer system. He knew how to get into their passwords,” one former News America staffer told New York. "He said he had the blessings of his bosses."

    This incident followed the same pattern as the News of the World phone hacking scandal. An overly aggressive manager broke the law and was rewarded, and News Corp crushed the competition. When the bad deeds were found out the internal investigation was a joke:

    As for News Corp.’s internal investigation, he concluded that it “falls far short of any standards in this area." The company made a cursory check of Henderson’s e-mail — “The only search conducted was a limited Outlook 'find' command" — but Cats concluded the company never interviewed Henderson or any other employees. Nor did it preserve a record of the investigation.

    Then for some strange reason when the authorities investigate they decide not to press criminal charges (can you say political pressure, i knew you could). In the final stage, there is a civil case and it is settled out of court. In this case the total payout was $650 million. Note this figure includes some other wrongdoing besides the Floorgraphics case.

    This is exactly what happened in the News of the World scandal, until The Guardian newspaper in England did some investigation and found out how massive the phone hacking was. Given these two cases, one in the US and one in the UK, what are the odds that News Corp is blameless in this situation.

    --
    Why is Snark Required?
  9. Re:Is there evidence that Murdoch knew about this? by Therad · · Score: 4, Funny

    "Breaking news! How will obama lower the price on gas? Have we gotten any proof he isn't a muslim? And will he ever show conclusive evidence that he is born in the US?"

  10. Give him the Megaupload treatment by RelaxedTension · · Score: 4, Interesting

    There is clear signs of piracy, that was intentional. Close down ALL of it, all the newspapers, the tv stations, everything, and sort it out in court first.

    Thats what they did to Megaupload, fair is fair.

    1. Re:Give him the Megaupload treatment by Spad · · Score: 4, Insightful

      Because there wasn't any collateral damage in the Megaupload case?

  11. Re:Is there evidence that Murdoch knew about this? by FoolishOwl · · Score: 4, Insightful

    There will probably be some sharp satire on The Daily Show and The Colbert Report. MSNBC may make a few snide comments. Other than that, I would guess most media will ignore it. Fox will try to frame it as if Murdoch is the victim.

  12. Too big to jail by petes_PoV · · Score: 4, Insightful

    if he ever really goes down, he'll take a few politicians down with him

    And that's his protection, right there. All the politicos in a lot of countries know that if they investigate his companies too deeply they'll uncover such a can of politically interconnected worms that their governments would have to relocate to the nearest jail.

    He's been in so deep for so long that no major party would come out with clean hands, or be able to "cast the first stone". He knows it, they all know it and are just hoping that the media knows it too.

    --
    politicians are like babies' nappies: they should both be changed regularly and for the same reasons
    1. Re:Too big to jail by Spad · · Score: 5, Informative

      If only there were some kind of independent judicial inquiry currently in progress that was investigating the culture, practice & ethics of the press...

      At this point it's virtually impossible for politicians, at least in the UK, to avoid looking into anything involving News International or other new media organisations. Any attempt to deflect attention from allegations such as this would be met with a very nasty response from their voters.

      In retrospect, the fact that it took the hacking and possible manipulation of a murdered girl's voicemail to get people to pay attention is a little depressing, but at least now they are paying attention.

  13. RTFA by Xest · · Score: 5, Informative

    "And what about all the nerds that actually did it? It's not like he sat around writing code himself. What about their (existent?) scruples? Did they know who paid them or wonder why? Did they just ignore those questions so long as they could?"

    None of that happened. The company that made the decryption cards was owned 50% by News International, and it made cards for Sky, and competitors like ITV's On Digital. Murdoch was a non-executive director at the company then this happened too.

    There was no hacking, the company that made the cards was leaking the decryption keys, likely at the behest of James Murdoch/News International who had such a stake in the company.

  14. Re:Is there evidence that Murdoch knew about this? by gmhowell · · Score: 3, Interesting

    It's not so much being nice to each other. Fox and MSNBC employees seem to loathe each other from what I've read. The issue is that the businesses are looking at something more long term than todays viewership. Sure, CNN kicking Fox while it is down will help improve ratings tonight. The problem is when the current administration is no longer in power. If beating on Fox is ok now, you can bet beating on CNN will be ok in the future. This is merely the networks acting out of fear of mutually assured destruction.

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    Jesus was all right but his disciples were thick and ordinary. -John Lennon
  15. What's it like to work for Murdoch? by Anonymous Coward · · Score: 5, Interesting

    What's it like where money matters above all else, nepotism abounds and professional ambition transcends all known ethics? Let me tell you.

    I've been an employee of NewsCorp for the last 4-5 years. I stay with them because they offer the best compensation in my field, security in this recession, and yet we have our differences. On many occasions I've defended my employer and media outlets, mainly Fox News by saying, "I may not agree with the narrative but no one can say it's not a commercial success." Each business unit only worries about the bottom line, and not a soul has the well being of the U.S. and it's future in mind. Now it's starting to bother me.

    Rupert Murdoch may be more feared by his employees than Steve Jobs ever was. Instead of a razor sharp focus on perfection and simplicity, Murdoch works his media holdings like a venture capitalist, his political influence like the dirtiest lobbyist, and just doesn't seem to 'get' the web and social media. This old-fashioned media tycoon acquires, prunes and drives companies and their talent to exact his will.

    The pressure on his people shows. Employing very creative accounting (tax havens), phone hacking and leveraging threats of media smear campaigns, NewsCorp employees cross ethical boundaries more often than Rupert crosses time zones. It's no secret he enjoys the power he wields. On the editorial conferences he attends, on the way he treats political enemies, competitors and anyone else that dare disagree, it is striking from the inside.

    Rupert has always shown his considerable ego, from the (good for all of the British press) breaking of the print unions in Wapping to his new rambling outlet, Twitter (@rupertmurdoch) . This 80 year old man tweets solo from his iPad, attacking Google, President Obama and others, all the while disregarding his plethora of Lawyers, PR entourage and social media experts. But that's the thing. He doesn't care. He's an old, angry, ballsy billionaire with mostly incompetent, disappointing children who is set on nothing more than doing what he and he alone wants for the rest of his life. I would say his tireless work has earned him that privilege if his empire wasn't pro-SOPA, against LGBT and other rights, constantly polarizing America and driving the Republican Party farther right than I ever predicted. The national dialogue has turned into a screaming match and I know who to thank.

    With Roger Ailes as his Dick Cheney, Murdoch has incredible control over conservatives. 'Fair and Balanced' stopped being a funny joke years ago. I never thought I would live in a country where science was laughed at on the news, calling the sitting President a Communist was acceptable, or where a GOP candidate has no chance without the backing of Ailes, Czar of Fox News.

    This might be the future, where only money matters, your voicemail isn't safe and anything can happen when dirty police officers get their take. It might be, but I don't like it.

  16. All the more reason by microbox · · Score: 3, Interesting

    All the more reason to make an example out of Murdoch. What type of society do you want to live in? One where the powerful break the law and cow politicians by endlessly propagandising the public? The Murdoch's probably think of themselves as stand-up guys, but they have caused so much harm that it is an embarrassment to a civilised society. Jobs said that Murdoch should think about his legacy, like somehow the karma boggie-man will do something about his behaviour. I would put more faith in jail-time for serial malfeasance.

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    Like all pain, suffering is a signal that something isn't right