August 2012

Germany Reopens Facebook Privacy Inquiry

Data protection officials in Germany reopened an investigation into Facebook’s facial recognition technology, saying that the social networking giant was illegally compiling a huge database of members’ photos without their consent.

The data protection commissioner in Hamburg, Johannes Caspar, had suspended the inquiry in June, but said he reopened it after attempts to persuade Facebook to change its policies had failed. The Hamburg regulator is demanding that Facebook destroy its photographic database of faces collected in Germany and revise its Web site to obtain the explicit consent of members before it creates a digital file based on the biometric data of their faces. In their meetings, Facebook representatives acknowledged that the company was compiling biometric data on users, Mr. Caspar said, but have maintained that the practice is legal in Ireland, where Facebook’s European operation is incorporated.

Spectrum-Sharing Plan Approved by FCC

The Federal Communications Commission has given T-Mobile USA the green light to begin testing a plan to share spectrum with federal users in a swath of spectrum coveted by the wireless industry.

The pilot program will test the impact of sharing spectrum in the 1755-1780 megahertz band to see how commercial use of those airwaves impacts federal agencies currently using that band. The wireless industry has been pushing the federal government to try to free up the band for exclusive use by commercial providers. However, the Commerce Department's National Telecommunications and Information Administration has said that moving federal users from this band would take years and cost billions.

"Today, we take an important step forward in our effort to enable greater government-commercial spectrum sharing, a new tool that joins clearing and reallocation as part of an 'all-of-the-above' strategy to address our nation's spectrum challenges," FCC Chairman Julius Genachowski said. "By granting the first authorization of testing in the 1755-1780 MHz band, the commission hopes to facilitate commercial mobile broadband services in that band, which would significantly benefit millions of U.S. wireless consumers and help drive the mobile innovation economy."

Stearns's loss puts Oversight gavel up for grabs

Rep. Cliff Stearns (R-FL) suffered a surprising defeat in the Florida GOP primary, putting a coveted chairmanship on the House Commerce Committee’s Oversight subcommittee up for grabs.

Rep Stearns has been active on tech and telecom issues, though he's grabbed more headlines for leading the Oversight panel's probes into Solyndra and Planned Parenthood. The congressman has been a staunch opponent of new Internet regulations and one of the House’s fiercest critics of the Federal Communications Commission (FCC). He strongly opposed the FCC’s proposed net-neutrality rules and criticized the agency's handling of LightSquared's quest to build a high-speed wireless network, comparing the startup to bankrupt solar energy firm Solyndra. Outside the telecom realm, the 12-term Republican has been vocal on core tech issues such as online privacy. This spring, he held a series of hearings on how to defend the country’s critical infrastructure networks against the growing threat of cyberattack.

Rep Stearns Concedes in Primary Upset

Rep Cliff Stearns (R-FL), a 24-year veteran of Congress and a senior member of the House Commerce Committee, conceded to his Republican primary opponent, Ted Yoho.

Yoho, a large-animal veterinarian, staged an improbable upset of Rep Stearns, who had been endorsed by such Republican stalwarts as GOP vice presidential nominee, Rep. Paul Ryan (R-WI) and Reps. Michele Bachmann (R-MN) and Allan West (R-FL), both Tea Party favorites. The newly redrawn third district is expected to tilt Republican. Yoho will face Democrat J.R. Gaillot, who did not have a primary opponent, in November's general election.

Liberty Media Raises Stake in Sirius XM to 48%

John Malone's Liberty Media has inched closer to taking control of Sirius XM Radio, raising its stake in the satellite-radio operator to about 48%.

Liberty said it had bought about 90 million Sirius shares in recent days for roughly $2.50 each, or approximately $225 million in total. It also agreed to buy an additional 41 million shares through a forward agreement that expires on Oct. 11. Altogether, the transactions raise Liberty's effective stake to around 48% from 46.2%. Liberty originally acquired a 40% stake in Sirius in 2009, in the form of preferred shares, and earlier this year asked the Federal Communications Commission for permission to exercise effective control of the company. Sirius has opposed Liberty's application, arguing the company hadn't taken concrete steps to get control. The two sides are awaiting a response from the FCC. If Liberty's stake rises above 50%, it would have clear control of the company. That could open the way for Liberty to replace Sirius management and potentially pursue other options the media investment company has flagged, like spinning the Sirius stake off to Liberty shareholders.

Los Angeles losing the core of its TV production to other states

The five broadcast television networks will be rolling out 23 new one-hour dramas for the upcoming season. That would normally be good business for Hollywood's hometown industry — with bookings for soundstages and plenty of work for the costumers, camera operators and caterers needed to put a show on the air. But not this year.

Just two of the 23 new fall and midseason shows will be shot in Los Angeles County, as cost-conscious producers seek tax-friendly production havens in New York, North Carolina, Georgia and other states. The exodus has been going on for years, especially in feature film production. But television dramas such as "CSI," "Criminal Minds" and "Desperate Housewives" have long been anchors of Los Angeles' entertainment economy, helping to offset the decade-long slide in moviemaking. One 22-episode-a-year network series has a budget of $60 million and generates 840 direct and indirect jobs, according to the Los Angeles County Economic Development Corp.

Mobile payments may be the future, but they're still unsafe

It's clear that many of us soon will be paying for stuff at the store with our smartphones. Wal-Mart, Target and a bunch of other retailers are the latest to jump aboard the mobile-payments express train. But is it safe? Doesn't look like it, at least not yet.

A recent security conference in Las Vegas demonstrated that the technology may not be ready for prime time. Tech pros at the event showed the ease with which hackers could steal photos, surf the Web and even make phone calls from your device thanks to the mobile-payment system. These systems rely on what's known as near-field communication technology. This makes it possible for two devices to connect when in close proximity. But that digital kiss also provides a window for hackers to jump in. Undoubtedly there will be ways to boost the security of mobile devices. But at the moment, we're not there. Which is why I'll be sticking for a bit more to old-fashioned cash.

Cash-strapped students have access to free software

Students heading back to school can find hundreds of free programs to download or use as online-only applications. While they might not be as feature-rich as their paid counterparts, you might be surprised at what's available.

‘Friends’ can share your Facebook profile with the government, court rules

A federal judge has ruled that investigators can go through your Facebook profile if one of your friends gives them permission to do so.

The decision, which is part of a New York City racketeering trial, comes as courts struggle to define privacy and civil liberties in the age of social media. In an order issued on August 10, US District Judge William Pauley III ruled that accused gangster Melvin Colon can’t rely on the Fourth Amendment to suppress Facebook evidence that led to his indictment. Colon had argued that federal investigators violated his privacy by tapping into his profile through an informant who was one of this Facebook friends. The informant’s Facebook friendship served to open an online window onto Colon’s alleged gangster life, revealing messages he posted about violent acts and threats to rival gang members. The government used this information to obtain a search warrant for the rest of Colon’s Facebook account. The Colon information is part of a larger investigation into crack-dealing and murder in the Bronx. Judge Pauley III’s ruling is significant because it is the latest in a series of cases that defines how and when police can search social media.

Consumer privacy in the mobile advertising era: challenges and best practices

Smartphones can enable an amazing level of connectivity, but they can also allow activity to be monitored and used in controversial ways. But for mobile marketing to realize its full potential, consumers may need to sacrifice their privacy to one degree or another. This report is intended for every link in the mobile-marketing chain, from app and web developers to advertisers to providers of mobile operating systems. It examines the innate trade-offs between consumer privacy and successful business models that leverage potentially sensitive user information, and it details existing and pending regulations that will shape the growth of mobile advertising and marketing. Finally, the report offers suggestions and best practices that will help every player in the value chain tap the market.

Benton

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