November 2014

Case Suggests How Government May Get Around Phone Encryption

The Justice Department is turning to a 225-year-old law to tackle a very modern problem: password-protected cellphones. Prosecutors persuaded a federal magistrate in Manhattan to order an unnamed phone maker to provide “reasonable technical assistance” to unlock a password-protected phone that could contain evidence in a credit-card-fraud case, according to court filings.

The court had approved a search warrant for the phone three weeks earlier. The phone maker, its operating system and why the government has not been able to unlock it remain under seal. The little-noticed case could offer hints for the government’s strategy to counter new encryption features from Apple and Google, say privacy advocates and people familiar with such cases say. “It’s part of what I think is going to be the next biggest fight that we see on surveillance as everyone starts to implement encryption,” said Jennifer Granick, director of civil liberties at Stanford University’s Center for Internet and Society. Pointing to the phrase “technical assistance” in the order, she asked, “Does this mean you have to do something to your product to make it surveillance friendly?”

Two Music Publishers Suing Cox Over Piracy

Two music publishers are taking aim at a new target in the battle against illegal song downloading: the cable industry. BMG Rights Management LLC and Round Hill Music LP sued cable giant Cox Communications, claiming that Cox, which provides Internet service to millions, is deliberately turning a blind eye to illegal downloading by its subscribers. Such behavior violates federal copyright law, claim BMG and Round Hill, each of which controls the publishing rights to a number of well-known artists. BMG, owned by German media conglomerate Bertelsmann SE, controls rights to songs by David Bowie, Johnny Cash and Lenny Kravitz, among others.

Top male engineers at Google make nearly 20% more than their female peers

Many tech companies readily admit that their workforces aren't as diverse as they could be -- and that they're trying hard to fix the imbalance. To date, company demographics that skew heavily toward whites and men have received most of the attention. But as I've written before, there also exists a substantial gap in gender pay in Silicon Valley.

The wage gap largely mirrors the national average; according to the American Association of University Women, female workers in the computer science field make 77 percent what their male peers do one year out of college. By comparison, Census data suggest that women make 78 percent of what men do, generally. But we're starting to get a better idea of specific differences between men and women's salaries at different tech companies. A recent survey of median salaries by Glassdoor suggests that at many Silicon Valley firms, men make thousands of dollars more than women every year. At Google, for instance, a male senior software engineer makes 19 percent more than his female counterpart. The numbers are heavily conditional on experience and the number of reports from either sex. There are big discrepancies between men and women in terms of years worked, even within the same job. The male senior software engineer at Google has, on average, nearly a decade of experience compared to just 7.6 years for women with the same title. Experience is likely one factor that helps drive up male wages relative to women.

Democrats and Republicans Attempt Twitter End-Run Around Campaign Finance Laws

[Commentary] The Republican and Democratic Parties used Twitter feeds to secretly communicate ad buy and polling information to outside groups prohibited from coordinating their spending with parties. The information tweeted by both parties seemingly required a decoder key to use it. The Democrats included the decoder on their Twitter bio, while the Republicans did not post the decoder key, which suggests that outside groups may have obtained the crucial information from a nonpublic source. Lawyers will now argue over whether these tweets violated campaign finance laws, but it’s critical not to ignore the larger and more important point. Federal “coordination” rules are broken in many respects and need to be fixed.

[Ryan is Senior Counsel at The Campaign Legal Center]

How Facebook plans to become one of the most powerful tools in politics

Political campaigns are obsessed with two things: Telling every possible voter exactly what they want to hear in order to get them to the polls and cast the "right" vote, and telling them that message for as close to zero dollars as possible. It's not a surprise, then, that Facebook has focused its social-Sauron eye on the world of politics.

Already a focal point of political activity (of varying quality), the site has shifted its toolset to let campaigns target extremely specific audiences with very specific messages, for prices somewhat north of zero dollars. The end goal for the company seems clear: Replace, as much as possible, expensive, blanketed television advertising with much more immediate, much more specific ads appearing in users' feeds -- and then cash a whole lot of checks. This is not as far in the future as you might think.

AARP, Intel design a tablet for the ‘technology-shy’

Although AARP has long believed that new technology can improve the quality of life -- with things such as family video-chats -- many senior citizens say they aren’t confident in their ability to navigate a new device. AARP and Intel designed a tablet for first-time users, pre-loaded with video tutorials, a 24-hour-a-day helpline and basic applications such as e-mail, video-chat and games. The RealPad, which runs on an Android operating system, is sold by Walmart.com for $189. The RealPad is part of a larger trend in Intel’s mobile-device technology business: customizing tablets for specific populations, said Arjun Batra, a program manager at Intel’s mobile and communications group.

TV seems to know what you want to see; algorithms at work

Your TV knows what you watch. More than that, it knows how you watch. When you pause a program, your TV is taking notes. When you rewind or fast-forward, the machine jots that down too. But here's maybe the scariest part of all: Your TV knows what you want, maybe even before you do.

This is where technology has led us. The algorithms that spit out online recommendations for television series, movies and more are taking artificial intelligence to a new level. Top providers such as Netflix, Hulu and Amazon -- which tens of millions of Americans get either through set-top boxes such as Roku or via personal computers -- employ large engineering teams dedicated to cracking the code of what users want and guiding them to it. Nothing less than the future of the entertainment business is at stake, as the industry continues its landmark shift from broadcasting to time-shifting and niche programming.

Washington Appeals Court: Retransmission Contracts Covered By PRA

A Washington state appeals court has overturned an injunction that prevented Tacoma’s city-owned cable system, Click!, from making unredacted copies of retransmission consent contracts with broadcasters public.

Tacoma News, which publishes The News Tribune newspaper, sought copies of the contracts via the Public Records Act (PRA), but a lower court granted broadcasters' request for an injunction against their release. Those broadcasters were Belo, Tribune and CBS. The court ruled: "Tacoma News persuasively argues that the public has a right to know how Click!, a city owned enterprise, is spending public funds. Disclosure in this instance is in the public's interest because the information involves expenditure of public funds. We hold that the RCA pricing information is not a trade secret and that the broadcasters failed to meet their burden of proving that the non-cash compensation information in the agreements qualifies as a trade secret. Additionally, the federal regulations cited by the broadcasters do not qualify as an 'other statute' under the PRA which exempts the pricing information from disclosure. Moreover, the broadcasters failed to establish the requirements for an injunction under the PRA. Accordingly, the trial court erred when it enjoined disclosure of the unredacted records."

Dish Network’s presence on the mobile sidelines is growing

[Commentary] Dish is sitting on a pile of unused spectrum, and the value of those airwaves is increasing thanks to a current auction at the Federal Communications Commission. Dish has seen its shares rise 19 percent since the auction began roughly two weeks ago due to perceived inflation of spectrum values. Here’s what Dish could be planning:

  1. It could build its own network. Dish may accrue sufficient spectrum to build out its own nationwide (or even semi-nationwide) network, but Dish Chairman Charlie Ergen has long claimed Dish needs an established carrier partner to join the wireless game. Due to prohibitive build-out costs, the odds of a Dish network built from the ground up remains very slim. Earlier reports of a partnership with Google to provide a major disruptive mobile service are intriguing, such an endeavor would be an enormous gamble for both companies in a competitive market where multiple players are well entrenched.
  2. It could sell its spectrum treasure trove. Many industry onlookers have long speculated that Dish simply invests in spectrum to sell high after its value inflates, and some have suggested the company may be bidding in the current auction only to increase the amount it could ask for its current airwaves. But Ergen’s desire to join the mobile industry seems sincere, and cashing out on that opportunity -- even to the tune of billions of dollars -- isn’t in his nature.
  3. It could acquire or merge with an existing carrier. I’ve long believed a partnership with T-Mobile is Dish’s best route into the mobile industry: Dish has a load of extremely valuable spectrum sitting on the shelf, while T-Mobile has an increasingly impressive nationwide network but needs airwaves to continue to improve its nationwide coverage. Speculation of a tie-up between the two has only increased following SoftBank’s failed bid to swallow T-Mobile, but despite the apparent synergies there’s no indication the two companies are moving closer to a deal.

Mobile broadband modems lose their appeal with consumers

If you're using a smartphone as a hotspot, you aren't alone. Sales of USB sticks and embedded PC modems are plummeting as a result of that use.

Shipments of these products are expected to decline by 24 percent by year end, following a 17 percent drop last year, according to market research company Strategy Analytics, which added that the value of the market has halved since 2010. Using a smartphone to share an Internet connection is more convenient than having to carry around another device. The drawback is that it drains the battery. The best solution is, whenever possible, to have the smartphone plugged in while using it as a hotspot.