FTC To Silicon Valley: Tech Companies Should Protect Consumer Data – Forbes.com

Washington wants to know: Why can’t technology protect consumers’ privacy instead of violating it?

The Federal Trade Commission met today in Berkeley, Calif., with corporate technology leaders and privacy advocates, challenging them to create ways to protect consumer privacy online. The FTC is encouraging technology companies such as Facebook and Apple (to come up with self-regulatory tactics that will protect consumers without squashing corporate innovation.

Technology companies should be doing more to protect people, says Pamela Jones Harbour, the FTC’s commissioner. “Apple requires all developers to submit potential apps for review,” Harbour says. “Through that process, the company could do more to regulate privacy disclosures.” Similarly, she says other companies should be taking more steps to protect consumer privacy.

The brainstorming session was the second of three the FTC has held before planning to draft new laws this summer that will control how consumer information is collected and used on the Web. Scrutiny of consumer privacy violation on the Internet has grown over the past several years, as technology advancements arm marketers with new ways to target potential buyers. Companies are buying consumer data from sources such as consumer surveys, loyalty programs and Web and mobile applications to identify potential consumers who are then tracked online and off to deliver more relevant advertising.

via FTC To Silicon Valley: Tech Companies Should Protect Consumer Data – Forbes.com.

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U.S. Law Firm That Sued China Reports Cyberattack

A Los Angeles law firm that recently filed a $2.2 billion copyright infringement suit against the People&’s Republic of China said that it has become the target of cyberattacks originating in China.

“I was the first one to get one of these e-mails,” said Gregory Fayer, a lawyer at Gipson Hoffman & Pancione, which began receiving unsolicited e-mails on its firm computers on Monday.

“Something about it didn’t seem right. It didn't seem quite in the manner in which the person who was supposedly sending it to me would put something, and so I called up the other attorney and said: ‘Did you just send me an e-mail?’; That person said,’No.’  That’s how we discovered the first one.”

Fayer, who is handling the suit, could not say whether the attacks on the firm were related to it but noted, “It is difficult to believe that the timing is merely coincidental.”

The e-mails came the same week that Google Inc. declared that it would stop complying with Chinese censorship requirements for the Internet following reports that several of its computer systems had drawn cyberattacks believed to originate in China. Some of the attacks were aimed at Chinese human rights activists’ Gmail accounts.

The firm has contacted the FBI and U.S. Rep. Anna Eshoo, D-Calif., a senior member of the House Permanent Select Committee on Intelligence, who on Tuesday urged companies to come forward about suspected cyberattacks in light of the Google revelation.

via U.S. Law Firm That Sued China Reports Cyberattack.

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$2.2 Billion IP Suit Filed Against Computer Makers, Chinese Government

A family-owned firm in Santa Barbara, Calif., has filed a $2.2 billion copyright infringement lawsuit against the People's Republic of China, two Chinese software makers and seven major computer manufacturers that helped distribute Green Dam Youth Escort software.

Critics claim that the Chinese government used the software to block its citizens from accessing political and religious Web sites that the government deemed objectionable.

A lawyer for the plaintiff, Solid Oak Software Inc., called the lawsuit a test case for U.S. companies.

“Here you've got seven major computer manufacturers conspiring with the Chinese government and two software developers to take a program they all knew came from a U.S. company and integrate that into another program and then distribute tens of millions of copies of it,” said Gregory Fayer, an attorney at Los Angeles-based Gipson Hoffman & Pancione. “We think this is an important test case for enforcement of U.S. IP rights in U.S. courts against folks who are not respecting those rights in places other than the U.S.”

via $2.2 Billion IP Suit Filed Against Computer Makers, Chinese Government.

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SEC Charges California Telecom Company With Bribery And Other FCPA Violations

The Securities and Exchange Commission today charged Alameda, Calif.-based telecommunications company UTStarcom, Inc. with violations of the Foreign Corrupt Practices Act (FCPA) for authorizing millions of dollars in unlawful payments to foreign government officials in Asia.

SEC Complaint

UTStarcom agreed to settle the SEC’s charges and pay a $1.5 million penalty among other remedies. In a related criminal case, the U.S. Department of Justice announced today that UTStarcom agreed to pay an additional $1.5 million fine.

“UTStarcom spent millions of dollars on illegal bribes to win and keep customers in Asia,” said Marc J. Fagel, Director of the SEC’s San Francisco Regional Office. “It is important for corporate America to recognize that resorting to these methods of boosting profits contributes to a culture of corruption that cannot be condoned under U.S. law.”

via SEC Charges California Telecom Company With Bribery And Other FCPA Violations.

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Rare Economic Espionage Case Filled With Quirks

Among the reasons to check out a rare economic espionage trial kicking off this week in San Jose, Calif.: allegations about Chinese efforts to penetrate Silicon Valley; the prospect of both defendants taking the stand; the wife of one defendant testifying for the government; and a procedure for handling witnesses that is hardly ever used in criminal cases.

Jury selection begins Tuesday in the prosecution of Lan Lee and Yuefei Ge, two former engineers for NetLogic Microsystems Inc. who were charged in 2006 with trade secret theft. Federal prosecutors then bumped up the indictment to include economic espionage, saying the defendants tried to commercialize stolen computer chip data with venture funding from the Chinese government.

via Law.com – Rare Economic Espionage Case Filled With Quirks.

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Law.com – High Court Hands Former Enron CEO First Breakthrough in 8 Years,Lawyer Says

Daniel Petrocelli, a partner at OMelveny & Myers, has represented former Enron CEO Jeff Skilling since February 2004. But until Tuesday, Petrocelli had little good news for his now-imprisoned client.On Tuesday the Supreme Court handed Skilling his “first breakthrough in eight years of misery,” Petrocelli said Wednesday in an interview from his Century City, Calif., office. The justices agreed to hear his appeal, setting the stage for arguments early next year. Skilling is challenging the “honest services” fraud law under which he was convicted, and he also claims that the massive pretrial publicity and animosity toward him in Houston should have led a federal trial judge to say yes to his 2004 request for a change of venue.

via Law.com – High Court Hands Former Enron CEO First Breakthrough in 8 Years,Lawyer Says.

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