November 2015

Internet Provider Gagged for Decade Reveals What FBI Wanted Without Warrant

For years after receiving a national security letter from the FBI, he was an anonymous litigant and unnamed op-ed writer, barred by a gag order from revealing that he had received a warrantless demand for customer information. Now, Nicholas Merrill’s gag order has been lifted in full, and -- apparently for the first time -- an NSL recipient can speak openly without fear of punishment. Merrill, owner of now-defunct Calyx Internet Access, provided Internet service to about 200 customers when he received the order in February 2004. He refused to turn over the records of the targeted customer and went to court with American Civil Liberties Union representation. Merrill won the right to identify himself in 2010, but could not say what the ultimately withdrawn letter said. In August, a federal judge ordered the associated gag order lifted, with a 90-day pause to allow the Justice Department time to appeal, which it chose not to do.

Victory in hand, Merrill said that the NSL he received demanded his customer’s full Internet browsing history, records of online purchases, a list of Internet Protocol addresses for the target's contacts and location information. The FBI issued more than 400,000 national security letters between 2003 and 2011, between 30,000 and more than 55,000 each year, according to a report issued in 2014 by the Justice Department’s inspector general.

Sen Angus King presses FCC to police FairPoint’s broadband project

Sen Angus King (I-ME) has sent a letter to federal regulators seeking clarity about how FairPoint Communications will be held accountable as it uses millions in federal subsidies to expand broadband Internet access in rural Maine. The letter comes three months after the Federal Communications Commission announced it was awarding $13.3 million a year for six years to FairPoint to help offset the high cost of providing broadband access to areas of rural Maine.
The money, which will total nearly $80 million over the life of the project, comes from the second round of Connect America Fund, or CAF, grants.

Sen King and two other senators sent a letter to FCC Chairman Tom Wheeler, asking him to provide more details about the accountability and enforcement measures the agency has in place to make sure companies that receive federal broadband subsidies make good use of the funds. “We believe strict enforcement measures, coupled with transparency around how, where and when the funds are used are necessary to ensure the integrity of the (Connect America Fund) program,” the senators wrote.

Verizon blasts CWA copper network claims, calling them a labor negotiation tactic

Verizon says that the Communications Workers of America (CWA) union's claims that the telecommunication company is abandoning its copper networks in various states is just a labor negotiation tactic. The CWA has continued to blast Verizon for taking part in what is referred to as "de facto" copper retirement, a practice where a company would let copper factilities degrade to the point where they would have no choice but to replace them with fiber. In a Federal Communications Commission filing, Verizon said that the CWA's arguments are part of its own negotiation strategy for the wireline workers it represents. The service provider and workers represented by the CWA have been operating without a contract since September.

"CWA's assertions here are straight out of its announced labor negotiation playbook, in which it calls on its members to "build political and regulatory pressure on the company" as a negotiation strategy," Verizon said in a FCC filing. "Indeed, CWA admits as much, acknowledging that its "survey" of technicians it relies on in its comments was conducted in connection with forming its strategy "for pending negotiations" with Verizon. Thus CWA's allegations should be reviewed in context with its efforts to further its own parochial interests in ongoing labor negotiations with Verizon."

Finding Dark Fiber in a Desert Ghost Town

Lots of fiber-optic cable in the United States runs along right-of-way routes for highways and railroads because it offers telecommunication companies a straight-shot easement over a really long distance. Apparently, this method is as popular on defunct rail routes as it is on active ones, a lesson I learned while driving in north Utah along the original route of the transcontinental railroad, near Lucin. Driving down a dirt road toward the old railroad grade, I passed old AT&T buried fiber signage. I was about five miles outside of the absolute middle of nowhere, so seeing a post for buried fiber-optic cable seemed a little weird. Following the arrow on the sign took me to another post, and a manhole.

Following US indictments, Chinese military scaled back hacks on American industry

The Chinese military scaled back its cybertheft of American commercial secrets in the wake of Justice Department indictments of five officers, and the surprising drawdown shows that the law enforcement action had a more significant impact than is commonly assumed, current and former US officials said. The People’s Liberation Army (PLA) has not substantially reengaged in commercial cyberespionage since then-Attorney General Eric H. Holder Jr. announced charges against the officers in May 2014, the officials said. “The big picture is that from 2014 on, the Administration pursued a much more direct and coercive approach with China, and it has produced results over time,” said Evan Medeiros, a former senior director for Asian affairs on the National Security Council.

In September, during a state visit, China President Xi Jinping pledged to President Barack Obama that China would not conduct economic spying in cyberspace to benefit its own companies. “China strongly opposes and combats the theft of commercial secrets and other kinds of hacking attacks,” he said. It is still unclear whether President Xi will be able to deliver on that promise. As the United States and China prepare for high-level cyber-talks in Washington Dec 1, some officials and private-sector analysts say there is evidence that China’s civilian spy agency, the Ministry of State Security, continues to conduct significant commercial espionage operations

Commerce, Manufacturing, and Trade Subcommittee
House Commerce Committee
Tuesday, December 1, 2015
10:15 am
http://energycommerce.house.gov/hearing/disrupter-series-mobile-payments

Witnesses
John Muller
Vice President for Global Payments Policy
PayPal

Sang W. Ahn
Chief Commercial Officer
U.S. Samsung Pay

Jessica Deckinger
Chief Marketing Officer
Merchant Customer Exchange

Sarah Jane Hughes
University Scholar and Fellow in Commercial Law
Indiana University Maurer School of Law



Toymakers are tracking more data about kids -- leaving them exposed to hackers

As toys go high-tech, hackers are zeroing in on a particularly vulnerable target -- children. VTech, a Hong Kong-based company that sells baby monitors and digital learning toys such as children's tablets, announced that the data for 5 million "customer accounts and related kids profiles worldwide" were compromised as part of a cyberattack. The stolen data included names and birth dates of kids, mailing addresses and e-mail addresses, as well as what e-books, learning games and other software were downloaded to toys, the company said. Credit card information and Social Security numbers were not breached. Privacy advocates warn that the VTech incident may be one of many online breaches that will involve children. Companies are increasingly producing and marketing high-tech toys that link dolls and games to the Internet -- as well as information about the kids playing with them. But the V-tech breach shows this data isn't always being guarded well.

Communications and Technology Subcommittee
House Commerce Committee
Thursday, December 3, 2015
10:15am
http://energycommerce.house.gov/hearing/broadcast-ownership-21st-century

Witnesses

Gerry Waldron
Partner
Covington & Burling LLP (On behalf of the National Association of Broadcasters)

Kim Keenan
President and CEO
Multicultural Media, Telecom and Internet Council

Jason Kint
CEO
Digital Content Next

Paul Boyle
Senior Vice President of Public Policy
Newspaper Association of America

Todd O’Boyle
Program Director
Media and Democracy Reform Initiative
Common Cause

Michael Scurato
Vice President
National Hispanic Media Coalition



Why you’re paying sales tax on that Cyber Monday deal, but others aren’t

It's Cyber Monday, that time of year when millions of us will rush to online retailers like Amazon in hopes of scoring a great post-Thanksgiving deal. But if you live in one of a handful of states, your "savings" will be affected by the collection of online sales taxes -- an issue that has grown increasingly controversial as e-commerce has become a huge part of holiday sales. This weekend alone, 103 million people shopped online, spending $4.4 billion between Thanksgiving Day and Black Friday, according to the National Retail Federation. What you'll pay in sales taxes often depends on a number of factors, including where you live, where your seller is based and -- not surprisingly -- the outcome of a years-long legislative slog in Congress. As you complete your holiday shopping list, here's what you need to get up to speed.