March 2016

63 Times the Feds Asked Apple and Google to Help Unlock Phones

The idea that the FBI only cared about unlocking just one iPhone in its recently-abandoned legal battle with Apple was always fiction: The American Civil Liberties Union has discovered at least 63 court orders in 22 states in which the federal government invoked the All Writs Act to compel Apple or Google to help it access data on a password-protected phone in a criminal investigation. The cases run the gamut from minor drug charges to child pornography and involve many different agencies within the Department of Justice, including the FBI, the Secret Service, the Department of Homeland Security, the Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, and Firearms. In addition, there’s at least one case brought by the Bureau of Land Management, in relation to an alleged marijuana grow operation.

None of the cases are believed to have required Apple or Google to write new software that could have broken the security of other phones, which was a key component of the San Bernardino (CA) case. That the government has asked Apple for assistance in getting into iPhones is no surprise, but seeing the documents gives further clarity on what, specifically, it’s asking for. It’s also the first confirmation that the government has brought an All Writs Act case against Google. “These cases show that the government has an interest in getting this kind of assistance from tech companies in a wide variety of cases,” ACLU attorney Esha Bhandari said. “The government and law enforcement in general have an interest in using the All Writs Act in a wide variety of investigations, including criminal investigations.”

1,000 locked devices in limbo after FBI quits iPhone case

The government’s surprise decision to withdraw its case against Apple over the San Bernardino (CA) killer's iPhone adds uncertainty to criminal cases where state and local authorities have been confronted with more than 1,000 locked smartphones and other devices, blocking access to potential evidence, according to a survey of more than a dozen jurisdictions. These locked devices are separate from the most high profile one: the iPhone used by Syed Farook, who with his wife, Tashfeen Malik, carried out the December mass shooting in San Bernardino that left 14 dead.

In mid February, a California court had ordered Apple to aid the FBI in sidestepping the security function of that iPhone, an action resisted by Apple out of concerns creating new software would make all iPhones more vulnerable. On March 28, the FBI announced it had been able to unlock the iPhone without Apple’s aid and did not need to move forward with its case. Magistrate Judge Sheri Pym vacated her Feb. 16 order on March 29. Left unanswered is what Justice’s abandoned legal action means for the many other law enforcement agencies seeking assistance in unlocking encrypted iPhones, iPads and encrypted devices from other manufacturers. “We were hoping this decision, which could have gone to the Supreme Court, would have been a road map and now it’s not,” said Stewart Baker, a partner in the Washington office of Steptoe & Johnson.

The FBI unlocked a terrorist’s iPhone, but we still need to talk about encryption

[Commentary] Two legitimate interests of society were at war with each other in the fight between Apple and the FBI over the contents of a terrorist’s iPhone. After seeking in court to compel Apple’s help in unlocking the phone, the FBI has pulled back, saying it found a way to obtain the data without Apple’s assistance. But the larger conflict over encryption of data and its impact on privacy and security is not yet sorted out and must not be neglected. On one side, law enforcement authorities in the United States express a valid worry about the prospect of “going dark” — that manufacturers are building products that encrypt data, either on a network or on the device, in ways that are accessible only to a user, and thus off-limits to law enforcement even with a court-approved warrant. They fear that this could provide a digital safe haven to criminals and terrorists. On the other side, Apple Chief Executive Tim Cook insists that any concession to government intrusion will weaken encryption for all users, at great risk to security and privacy.

Apple did suggest during the debate, without endorsing any specific legislation, that perhaps Congress should take up the issue. The company also expressed some openness to the establishment of a national commission of experts to determine whether the twin imperatives of privacy and security can both be met. Some encryption enthusiasts insist this is a fool’s errand, that any “backdoor” vulnerability handed to government will eventually get into the wild and ruin encryption for all. Perhaps, but if this argument is true, there should be no harm in having it scrubbed and examined by a national commission of the best and brightest minds. Ditto the argument put forward by some in the tech community that law enforcement has many other ways to obtain information these days and is crying wolf when it complains about “going dark.” Finally, a commission might offer Congress suggestions to update federal laws governing communications that date from the analog age. The FBI’s withdrawal from the court challenge offers a respite that should not be wasted.

The Other Reason the FBI Doesn't Want to Reveal Its Hacking Techniques

[Commentary] It's no secret that the FBI uses computer exploits and vulnerabilities in its investigations, but the agency has not exactly been forthcoming with detailing its techniques. That makes sense—the FBI wants to ensure its techniques continue to work against bad guys—but there is another reason the FBI doesn't want to reveal its techniques in court that isn't so obvious: The agency wants to avoid pissing off both its partners who provide the techniques, and other government agencies that might want to use those techniques for themselves.

The FBI relies on outside parties, such as private contractors, to help it take advantage of software bugs and other vulnerabilities. “What's clear is that the FBI does not have the in-house capability to develop exploits,” said Christopher Soghoian, principal technologist at the American Civil Liberties Union (ACLU). Those techniques may also be used by other agencies, who probably don’t want a shiny vulnerability being publicly disclosed and then patched. If the FBI were to then reveal the hacking technique used in court, it could tarnish those relationships.

What a Donald Trump presidency would mean for Hollywood

When Donald Trump got himself out of the entertainment business to run for president, the transition had a few bumpy moments. But if Trump ended some of his industry relationships on bad terms, his responses to a questionnaire sent to the candidates about arts and cultural policy suggest that he and Hollywood share at least one significant priority.

On network neutrality, an issue on which cable companies and content companies such as Netflix are split, Trump, like many of the other former Republican hopefuls, sides with the cable providers. Net neutrality is the idea that Internet service providers should have to treat all the content traveling over their networks the same, rather than charging content providers for faster delivery. It’s a significant priority for companies like Netflix, which worry about the prospect of having to pay up to keep subscribers’ videos streaming smoothly, and a challenge for Internet service providers, which want to make the companies that place the heaviest strain on their networks pay up. Trump’s position on net neutrality? “If one believes in the free market system, then it is hard to imagine how the [Federal Communications Commission] is helping things with rules associated with net neutrality.”

Netflix throttling shows net neutrality on life support

[Commentary] Netflix, with its admission that it throttles video download speeds for Verizon and AT&T subscribers, has handed those same US telecommunication giants a potent weapon in their legal fight against Network Neutrality. Whether the decision helps or hurts Netflix in the market for online media ultimately will depend on how much value mobile-video consumers place on the quality of their content in relation to its download speed. Investors seem to like what they've heard so far: Netflix shares have risen nearly 6% since March 24, the day it admitted to throttling, vs. 1.5% for the Nasdaq Composite.

Netflix has been an innovator in giving online viewers new ways to get their digital entertainment. With "Orange is the New Black" and "House of Cards," it's also shown that a tech company can produce original hit series. Yet its latest moves also give legal cover to the largest Internet providers who argue it is the marketplace, not the Federal Communications Commission, that should determine the value of broadband service. If Netflix' new 'self-throttling' options find a market, the company may help prove that Net Neutrality, something it has long backed in principle, is a dying concept in the US.

AOL’s Tim Armstrong Aims to Build Digital-Ad Empire at Verizon

When AOL Chief Executive Tim Armstrong was in Las Vegas (NV) in January for the tech industry’s big trade show, he met a parade of ad buyers in the private suites of the Aria and Cosmopolitan hotels. It was his first real chance to pitch the way AOL—fresh off its sale to Verizon Communications —planned to become a credible threat to Facebook and Google, the juggernauts of digital advertising.

“Data is the oil of the mobile economy,” the 45-year-old Armstrong said at one meeting, apparently. Imagine, he said, if a hotel chain supplied Verizon with a database of its frequent guests. That could be matched up with data on Verizon’s more than 100 million wireless customers, plus AOL’s own data, to target guests with ads for promotional offers. Later, the hotel’s sales data and the telecom giant’s customer data could be cross-referenced to see how many of those people subsequently visited the hotel. AOL won’t have that capability until later in 2016, but it reflects Armstrong’s lofty ambitions. He told the advertisers in Las Vegas that he aims to build the top mobile-media company in the world by 2020, one that reaches two billion users, up from a current 700 million, and generates $10 billion to $20 billion in revenue, said a person familiar with the meetings.

You can soon get unlimited data on AT&T U-verse — but it comes with a big catch

AT&T is rolling out some big changes for its home Internet subscribers, with potential implications for broadband users everywhere. Starting in May, AT&T's U-verse customers will be able to use more data on their fixed, residential connections before hitting their data caps. Depending on a customer's purchased speed tier, the new established caps range from 300 GB a month to as much as 1 TB a month. In general, faster plans will benefit from larger monthly allotments. Going over your cap is going to hurt your wallet — just like using too much data on your cellphone. Blow past the limit, and you'll be charged another $10 that month. That gives you another 50 GB to use, but exhaust that too and you'll be hit again with a second $10 overage fee, and so on. (AT&T says that on average, its residential Internet subscribers use 100 GB of data per month, while based on their current usage habits, roughly 4 percent of customers today would run afoul of the new caps.)

There are two main ways you can escape the caps: Either pay an extra $30 a month for an "unlimited" plan, or make sure you're paying for a double-play consisting of U-verse Internet service and one of AT&T's two television services, DirecTV or U-verse TV. This gets us to AT&T's underlying strategy: Drive more customers to its pay-TV products as the company tries to execute a shift to digital and mobile video (and beyond that, to targeted advertising).

Programmers Wary Of FCC's Set-Top Plan

[Commentary] If consumers are able to replace the set-tops they now lease from cable or satellite providers with a box or app from a third party as the Federal Communications Commission is proposing, Google and others could sell boxes or apps that would offer access to both traditional cable fare and over-the-top (OTT) streaming services. Programmers are joining the opposition, concerned that they could lose control over their content and the advertising that supports it and be further exposed to OTT competition.