Google: China hacked Gmail

Once again, Google says China has tampered with Gmail in an attempt to squash Chinese political dissidents.

Google says the Chinese government hacked its Gmail service in an attempt to quell a social uprising in the country, reports the Guardian. The tampering has caused an array of problems for Chinese Gmail users.

For the past month, Chinese customers and advertisers have informed Google of problems related to sending messages. Marking messages, unread messages, and other functions have also reportedly caused issues.

The problem, says Google, isn’t with Gmail — it’s with the government of China, which designed an attack on the email system to look like the problem was with Gmail itself.

“Relating to Google there is no issue on our side,” a Google spokesman told the Guardian. “We have checked extensively. This is a government blockage carefully designed to look like the problem is with Gmail.”

via Google: China hacked Gmail.

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AT&T agrees to buy T-Mobile USA from Deutsche Telekom for $39 billion — Engadget

Wowzers! AT&T and Deutsche Telekom have entered into a definitive agreement for the sale of T-Mobile USA for $39 billion in cash and stocks. The combined customer base of this upcoming behemoth will be 130 million humans, though the agreed deal will have to pass the usual regulatory and closing hurdles before becoming complete. The two companies estimate it’ll take them 12 months to get through all the bureaucracy — if they get through, the proposed network merger will create a de facto GSM monopoly within the United States — but we don’t have to wait that long to start discussing life with only three major US carriers. AT&T envisions it as a rosy garden of “straightforward synergies” thanks to a set of “complementary network technologies, spectrum positions and operations.”

One of the other big benefits AT&T is claiming here is a significantly expanded LTE footprint — 95 percent of Americans, or 294 million pops — which works out to 46.5 million more than AT&T was claiming had it gone LTE alone. Of course, T-Mobile has never put forth a clear strategy for migrating to LTE, suggesting that AT&T plans on using the company’s AWS spectrum to complement its own 700MHz licenses as it moves to 4G. You might be groaning at the thought of yet another LTE band, but it’s not as bad as you might think: MetroPCS already has a live LTE network functioning on AWS, so there’s precedent for it. For further details, hit up the gallery below, the Mobilize Everything site, or the official press release after the break.

In the event of the deal failing to receive regulatory approval, AT&T will be on the hook for $3 billion to T-Mobile — a breakup fee, they call it — along with transferring over some AWS spectrum it doesn’t need for its LTE rollout, and granting T-Mo a roaming agreement at a value agreeable to both parties.

via AT&T agrees to buy T-Mobile USA from Deutsche Telekom for $39 billion — Engadget.

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Leaked Government Documents Reveal Weakening of U.K. Bribery Act

Leaked government documents suggest that the U.K. Ministry of Justice has taken measures to radically weaken the jurisdictional reach of the country’s new bribery act, which could in turn reduce the work generated by the proposed law for U.S. white-collar lawyers when it takes effect.

A draft copy of the new guidance, first obtained by The Guardian, reveals that international companies with London Stock Exchange listings but no other presence in the United Kingdom will be exempt from prosecution under the act.

“The government would not expect, for example, the fact that the company’s securities have been admitted … to trading on the London stock exchange, in itself to qualify that the company is carrying on a business in the U.K. … for the purposes of [the act],” the guidance says.

Previously, such companies would have been subject to what has been described as the world’s most draconian anti-corruption law, carrying unlimited fines and an increased maximum jail term of 10 years.

via Leaked Government Documents Reveal Weakening of U.K. Bribery Act.

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“Bad Faith or Culpability ‘May Not Mean Evil Intent, but May Simply Signify Responsibility and Control.’” : Electronic Discovery Law

Philips Elecs. N. Am. Corp. v. BC Tech., No. 2:08-CV-639-CW-SA, 2010 WL 5838993 (D. Utah July 28, 2010);  Philips Elecs. N. Am. Corp. v. BC Tech., No. 2:08-CV-639-CW-SA, 2011 WL 677462 (D. Utah Feb. 16, 2011)

In this case, the court imposed terminating sanctions against defendant after finding that five employees had destroyed “thousands of computer files” in bad faith prior to the production of their laptops for examination and that defendant had attempted to hide those deletions from plaintiffs and the court.

Plaintiffs alleged copyright infringement, misappropriation of trade secrets and related claims.  In the course of discovery, the court entered orders compelling defendant’s production of relevant evidence, including the production of all of defendant’s computers and servers, and requiring preservation of the same.  The court found that, despite these orders, a proper litigation hold was not issued until 19 months after the duty to preserve arose and thousands of files were deliberately deleted from the laptops of five employees prior to their production for examination.  Accordingly, plaintiffs moved for a finding of contempt and for sanctions.

Sparing the details (of which there are many), the court found defendant in contempt of court for violating the court’s orders compelling production and preservation of relevant evidence.

Turning to the question of spoliation, the court found that defendant breached its duty to preserve, that plaintiffs were prejudiced by the breach of that duty, and that the defendant had acted in bad faith.  With regard to bad faith, the court held that “[b]ad faith or culpability ‘may not mean evil intent, but may simply signify responsibility and control.”  The court concluded that defendant “not only had the responsibility to preserve information relevant to this litigation on the five laptops, but that it also had control over those laptops and information stored on them.”

The court then addressed the arguments of the defendant that “BCT as a company was not responsible for the ESI’s destruction” (1) because the employees accused of deleting evidence had simply been deleting personal information and had inadvertently deleted other files, and (2) because the executives and employees who destroyed the files “were acting individually and contrary to BCT’s express directives not to delete documents from their laptops.” The court quickly rejected the first argument.

via “Bad Faith or Culpability ‘May Not Mean Evil Intent, but May Simply Signify Responsibility and Control.’” : Electronic Discovery Law.

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A New Internet Privacy Law? – NYTimes.com

Considering how much information we entrust to the Internet every day, it is hard to believe there is no general law to protect people’s privacy online. Companies harvest data about people as they surf the Net, assemble it into detailed profiles and sell it to advertisers or others without ever asking permission.

So it is good to see a groundswell of support emerging for minimum standards of privacy, online and off. This week, the Obama administration called for legislation to protect consumers’ privacy. In the Senate, John Kerry is trying to draft a privacy bill of rights with the across-the-aisle support of John McCain.

Microsoft, which runs one of the biggest Internet advertising networks, said it supports a broad-based privacy law. It has just introduced a version of its Explorer browser that allows surfers to block some tools advertisers use to track consumers’ activities online.

It is crucial that lawmakers get this right. There is strong pressure from the advertising industry to water down rules aimed at limiting the data companies can collect and what they can do with it.

Most oppose a sensible proposal by the Federal Trade Commission for a do-not-track option — likely embedded in Web browsers. They have proposed self-regulation instead, and we applaud their desire to do that, but the zeal to self-regulate tends to wane when it is not backed by government rules and enforcement.

Senator Kerry has not yet proposed specific legislation, but he has laid out sound principles. Companies that track people’s activities online must obtain people’s consent first. They must specify what data they are collecting and how they will use it. They need consumers’ go-ahead to use data for any new purpose. They are responsible for the data’s integrity. And consumers should have the right to sever their relationship with data collectors and ask for their file to be deleted.

via A New Internet Privacy Law? – NYTimes.com.

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The Lure of a U.S. Listing Remains Powerful for Some Chinese Companies

With top U.S. capital markets firms virtually stepping over each other to launch Hong Kong law practices, one might think that the best days for U.S. securities law practices in Hong Kong and China are over, and that Chinese companies are now turning exclusively to Hong Kong, Shanghai and Shenzhen for their capital-raising needs.

Not exactly.

The New York Stock Exchange saw a record 22 listings by Chinese companies last year, with Nasdaq taking on another 12. Both numbers were up sharply from 2009, when only 10 Chinese companies listed on either exchange. In 2008, there were only three U.S. listings by Chinese companies.

Firms have taken notice. Last week, Proskauer Rose recruited U.S. capital markets partner Gene Buttrill from DLA Piper. Just a few days before, Orrick, Herrington & Sutcliffe poached Jeffrey Sun Jie, a veteran of several U.S. equity and debt offerings for Chinese companies, from Latham & Watkins’ Shanghai office. Wilson Sonsini Goodrich & Rosati opened a Hong Kong office last fall in part to aid its push for U.S. listing work on behalf of Chinese clients.

None of which is to suggest the growth of Hong Kong and other Chinese capital markets has been overstated. The 34 U.S. listings by Chinese companies last year raised about $4 billion, less than a fifth of the $22 billion that the state-owned Agricultural Bank of China raised in its debut last year in Hong Kong and Shanghai.

But for certain kinds of Chinese companies — mainly private instead of state-owned — the U.S. markets still have a certain appeal. Unlike in Hong Kong, which requires listing companies to have been operating for three years, there is no track record requirement in the major U.S. exchanges, a fact that favors startups. And Chinese technology companies in particular have also counted on U.S. markets, with their greater infrastructure of tech-savvy investors and analysts, to deliver them higher share valuations.

via The Lure of a U.S. Listing Remains Powerful for Some Chinese Companies.

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Microsoft and feds bring down spam giant Rustock | Microsoft – CNET News

Rustock, purveyor of more e-mail spam than any other network in the world, was felled last week by Microsoft and federal law enforcement agents.

A lawsuit by Microsoft that was unsealed at the company’s request late today triggered several coordinated raids last Wednesday that took down Rustock, a botnet that infected millions of computers with malicious code in order to turn them into a massive spam-sending network.

“This botnet is estimated to have approximately a million infected computers operating under its control and has been known to be capable of sending billions of spam mails every day,” Richard Boscovich, senior attorney in the Microsoft Digital Crimes Unit, wrote in a blog post today.

The Wall Street Journal first reported that it was Microsoft’s digital crimes unit, working in concert with U.S. marshals, that raided seven hosting facilities across the country and seized the command-and-control machines that ran the network. Those are the servers that send instructions to the fleet of infected computers to dish out spam messages hawking such items as phony lottery scams and fake and potentially dangerous prescription drugs.The takedown was known internally as Operation b107.

via Microsoft and feds bring down spam giant Rustock | Microsoft – CNET News.

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Microsoft and feds bring down spam giant Rustock | Microsoft – CNET News

Rustock, purveyor of more e-mail spam than any other network in the world, was felled last week by Microsoft and federal law enforcement agents.

A lawsuit by Microsoft that was unsealed at the company’s request late today triggered several coordinated raids last Wednesday that took down Rustock, a botnet that infected millions of computers with malicious code in order to turn them into a massive spam-sending network.

“This botnet is estimated to have approximately a million infected computers operating under its control and has been known to be capable of sending billions of spam mails every day,” Richard Boscovich, senior attorney in the Microsoft Digital Crimes Unit, wrote in a blog post today.

The Wall Street Journal first reported that it was Microsoft’s digital crimes unit, working in concert with U.S. marshals, that raided seven hosting facilities across the country and seized the command-and-control machines that ran the network. Those are the servers that send instructions to the fleet of infected computers to dish out spam messages hawking such items as phony lottery scams and fake and potentially dangerous prescription drugs.The takedown was known internally as Operation b107.

via Microsoft and feds bring down spam giant Rustock | Microsoft – CNET News.

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AT&T shames unauthorized phone tetherers, gives ultimatum

AT&T has begun cracking down on smartphone customers—particularly iPhone users—who have been secretly tethering their smartphones to their laptops without paying for a tethering plan. The company sent text messages to the offending users, followed up with an e-mail, that says they’ve been identified as taking advantage the feature without paying up. If those users continue to tether and don’t make changes to their accounts, AT&T will automatically begin charging for the DataPro tethering plan from March 27. Those who quit tethering before then won’t have to upgrade their accounts.

“Many AT&T customers use their smartphones as a broadband connection for other devices, like laptops, netbooks or other smartphones—a practice commonly known as tethering. Tethering can be an efficient way for our customers to enjoy the benefits of AT&T’s mobile broadband network and use more than one device to stay in touch with important people and information,” reads the beginning of AT&T’s e-mail.

“Our records show that you use this capability, but are not subscribed to our tethering plan… if we don’t hear from you, we’ll plan to automatically enroll you into DataPro 4GB after March 27, 2011. The new plan—whether you sign up on your own or we automatically enroll you—will replace your current smartphone data plan, including if you are on an unlimited data plan.”

AT&T currently offers either a $15/month 250MB 3G data plan for smartphone users, or a $25/month 2GB plan. If customers want to tether the legit way, they must subscribe to the 2GB data plan and pay AT&T another $20 for the privilege of sharing their smartphone’s 3G connection with a computer or hotspot, at which point the monthly data cap goes up to 4GB. iPhone users who jailbreak their devices have long been able to tether without paying anything extra to AT&T—it’s one of the main reasons people jailbreak—making those iPhone users particularly susceptible to AT&T’s latest crackdown.

via AT&T shames unauthorized phone tetherers, gives ultimatum.

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SecurID Company Suffers Security Breach – NYTimes.com

The RSA Security division of the EMC Corporation said Thursday that it had suffered a sophisticated data breach, potentially compromising computer security products widely used by corporations and governments.

The company, which pioneered an advanced cryptographic system during the 1980s, sells products that offer stronger computer security than simple password protection. Known as multifactor authentication, the technology is typically based on an electronic token carried by a user that repeatedly generates a time-based number that must be appended to a password when a user logs in to a computer system.

RSA, which is based in Bedford, Mass., posted an urgent message on its Web site on Thursday referring to an open letter from its chairman, Art Coviello. The letter acknowledged that the company had suffered from an intrusion Mr. Coviello described as an “advanced persistent threat.”

In recent years a number of United States companies and government agencies have been the victim of this type of attack, in which an intruder either exploits an unknown software vulnerability or in some way compromises the trust of an employee to take command of a computer or an entire network within a company.

via SecurID Company Suffers Security Breach – NYTimes.com.

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