FISA Fail: Senate To Keep Spying On Citizens

In a blow to civil rights, and seemingly the Fourth Amendment, the Senate this morning voted to approve a bill that reauthorizes a foreign surveillance program that keeps tabs on peoples' emails and phone conversations, all without a warrant. While the whole country waits on pins and needles for the Fiscal Cliff to fall out from under us, this could be even more important, as our freedom of liberty is truly threatened, all in the name of national security. 

It's called FISA, the Foreign Intelligence Surveillance Act, and it's set up to allow the monitoring of U.S. citizens who speak with foreigners. The vote extends the life of the bill for the next five years. Since the House already gave the bill the thumbs up, it now goes to the President to get his seal of approval, which he is expected to sign. 

The problem is this basically gives the U.S. government carte blanche in spy-mode when it comes to eavesdropping on the communications of suspected terrorists. They don't need court approval now. They can just listen on the pretense that it makes our country safer from a possible terrorist attack. Of course, determining just who is a foreigner and figuring out their real or perceived "threat" to America is another problem in and of itself. On top of that, it's a lot of leeway and freedom for law enforcement and the government to listen in on the often mundane conversations between its citizens. 

Road Blocks And Detours

There's been some very real criticism of FISA, and it's even crossed normally staunch party lines.

The biggest detractors to the bill were Sens. Ron Wyden (D-OR), Patrick Leahy (D-VT), Jeff Merkley (D-OR) and Rand Paul (R-KY), all of whom wanted to protect the rights of people being unfairly monitored.

During the discussion session, Wyden point-blank asked if any U.S.-based email or phone communications were picked up by the government during surveillance of foreign targets to which Senate Intelligence Committee Chairwoman Dianne Feinstein (D-CA) replied that those incidences were "few" and "inadvertent." In other words, yes, it has happened.

They proposed amendments to extend the bill for three years instead of five, declassify FISA court opinions, and clarify that the Fourth Amendment protects U.S. citizens from intelligence-related searches done overseas. All three amendments were shot down.

Here's a full video of Wyden's impassioned yet failed attempt to sway the Senate:

Now What

Marc Rotenberg, the executive director of the Electronic Privacy Information Center, (EPIC), calls this a missed opportunity by the Senate to establish safeguards to Fourth Amendment rights and create much needed government accountability. Earlier this year, Rotenberg testified before a House judiciary Committee on this very issue. Yet the House didn't heed his words and voted the same way the Senate did today.

With the heavy risk of misuse and abuse, Rotenberg calls FISA one of the biggest failures of Internet security, right there with the Patriot Act.

"It's a very broad authority," he said. "Our view has been when you create broad authority for the government, you need to create counter oversight." 

Jim Fenton, the chief security officer at the digital identity company OneID, has worked with intelligence agencies before. He says his experience included professionalism and good intentions, but warned that a lack of transparency with FISA, and rules that legislatures are confused with does not bode well for public perception of those groups.

"The government's lack of transparency about surveillance doesn't inspire trust," he said. "We should be working to differentiate ourselves from countries who aren't as free in terms of surveillance of its citizens."

That sentiment is shared online. In a post today by the Electronic Frontier Foundation, Trevor Timm called Congress disgraceful.

"This vote was nothing less than abdication by Congress as its role as watchdog over Executive power, and a failure of its indepedent obligation to protect the Bill of Rights," Timm wrote. "The FISA Amendments Act and the ongoing warrantless spying on Americans has been, and will continue to be, a blight on our nation and our Constitution. 

So, where does this leave us now? 

With the battle in Congress over, and the President expected to sign, the spotlight turns to the Supreme Court. In the next few months, the highest court in the land will pen an opinion on a case that highlights the problems with FISA: Clapper Vs. Amnesty International, the ACLU's challenge to FISA, which will determine whether citizens will have the ability to sue the government in cases of unlawful surveillance under FISA. The opinion is expected by summer 2013 and will set a precedent if people can go to court to bring these challenges.

"We've got out fingers crossed," Rotenberg said. "There has to be more public accountability."

Image courtesy of Shutterstock.

HP Gets Feds To Investigate Autonomy Deal

Hewlett-Packard has made if official. The Justice Department is indeed investigating HP's allegations that Autonomy execs tricked the troubled technology giant into paying way too much for the British software maker. In disclosing the probe in its annual regulatory filing with the Securities and Exchange Commission, HP has started the next chapter in its ongoing feud with Autonomy founder Mike Lynch - who denies duping HP.

Probe Expected

The probe was expected, given that HP announced last month it had proof that it had been conned in last year's $10.3 billion acquisition-turned-fiasco. At the time, HP said it had turned over the evidence to the Justice Department, the SEC and the U.K. Serious Fraud Office. "On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy," the company reported to the SEC Thursday.

HP claims Autonomy executives inflated the company's value by reporting some revenue prematurely or improperly. The alleged bogus reporting accounts for almost 60%  of the $8.8 billion write down HP booked last month on the Autonomy deal.

Ex-Autonomy Chief Executive Lynch responded to the investigation Friday by continuing to deny any wrongdoing. On a website Lynch set up to counter HP's allegations, he reiterated his complaint that HP has yet to release any details of the alleged scam. "Simply put, these allegations are false, and in the absence of further detail we cannot understand what HP believes to be the basis for them," Lynch wrote.

Details Still Hidden

HP is still keeping the details of the allegations confidential among itself, prosecutors and regulators. Thursday's filing did not provide any new details. Nevertheless, Lynch is ready to tell his side of the story. "We will co-operate with any investigation and look forward to the opportunity to explain our position," he wrote.

Throughout the claims and counterclaims, HP stock continues to get hammered. From the beginning of 2012 to Thursday, the price has fallen 45%.

Officially, the Federal Bureau of Investigation won't discuss whether or not it is involved in the case. However, an unidentified source told Bloomberg that the agency is assisting the SEC in its investigation.

While Autonomy execs are under the investigatory microscope, shareholders are blaming HP for the deal that ended up wasting billions of dollars. In the SEC filing, HP lists 10 lawsuits, including four class-action suits.

Apotheker Still Blamed

HP CEO Leo Apotheker, who was fired in September 2011, led the Autonomy deal as part of a plan to get HP deeper into the high-margin enterprise software business, while reducing its dependence on selling low-margin PCs. Autonomy software searches, organizes and manages data within large companies.

Apotheker sealed the end of his short career with HP when he announced he was considering the sale of its PC business. Because he had no buyer, Apotheker's disclosure sent Wall Street analysts into a tizzy. To them, Apotheker appeared to lack a clear vision or roadmap for saving HP from its years of bad deals, management turmoil and strategic blunders.

Current HP CEO Meg Whitman was on the company's board when it signed off on the Autonomy deal. Nevertheless, she has distanced herself and other board members from the debacle by laying the blame on Apotheker and then mergers and acquisitions head Shane Robinson, who also left the company in 2011.

History aside, now that federal prosecutors are officially involved, the repetitive claims and counterclaims being tossed back and forth between HP and Lynch won't matter much. The companies, their customers and shareholders now have to hope for clarity in the courts, especially if charges are filed.

Image courtesy of drserg / Shutterstock.

Here's What A 3D-Printed Record Sounds Like [Video]

If you ever wanted to print out your favorite albums at home, that weird little itch of yours may soon be scratched. Amanda Ghassaei, an editor at Instructables and DIY audio hardware geek, recently succeeded in 3D printing 12-inch records containing music by artists like Nirvana, The Pixies and Daft Punk. It sounds terrible, but the achievement is still pretty impressive. 

Ghassaei used Processing to write a program that translates digital audio into 3D models, which can then be printed on a plastic material using a high-resolution 3D printer. The end result can be played on any turntable, although as you can hear in the video below, it doesn't sound very good. 

That's because even at the highest resolutions available in 3D printing, you can print audio grooves only fine enough to capture a fraction of the resolution and sampling rate of a even decent-sounding MP3. There's also a very tiny grain and residue on 3D printed objects that interferes with the turntable stylus' ability to pick up a clean audio signal. Still, the songs are clearly recognizable, making what Ghassaei has pulled off from a technical standpoint very impressive. 

Don't Get Too Excited, Hipsters

Just be careful about envisioning a not-too-distant future in which we can all print out our favorite albums on vinyl-like material and listen to them in high-fidelity stereo. Music-industry executives jazzed about the recent resurgence in vinyl record sales should also take a chill pill.  

For one thing, this method of creating records is pretty expensive. Between printer usage time and the raw materials needed to print a 12-inch disc, it probably costs several hundred dollars per record. For the price tag of two or three 3D-printed records, you could press 100 real vinyl albums. 

Resolution is the biggest stumbling block. Although the cost of 3D printing has been dropping into more consumer-accessible territory, the resolution of the printers hasn't changed much in the last few years. The types of things people use 3D printers today for just don't demand the super-high resolution required to print tiny, clean grooves like the ones created by pressing an aluminum master disc into hot vinyl - the old-fashioned way to make a record. Ghassaei might be able to get that Daft Punk song to sound clearer on 3D-printed records than it does right now, but it's not going to be a viable, listenable alternative anytime soon. 

Who knows, though? Maybe in a few years we'll see lo-fi experimental noise bands in Brooklyn selling limited edition, 3D-printed LPs. They won't come cheap, though. 

Lack Of Online Reviews Hurts Apple's Online Store [Infographic]

Apple's online retail store fell short of customer expectations over the holiday shopping season. Satisfaction with the company's website fell to a four-year low, according to ForeSee's annual Holiday E-Retail Satisfaction Index. One big problem, no customer reviews to help shoppers decide which product is right for them. 

Apple's Wake Up Call

Apple's score of 80 is still considered very good, but the fact that the company did not make the list of top five online retailers should be a wake-up call. "It is a little bit of a yellow caution flag," said Larry Freed, president and chief executive of Foresee.

Apple's score fell three points from last year, because it did a poorer job helping customers wade through its growing list of products, Freed said. For example, outside of price, the difference between the iPad mini, iPad 2 and iPad with Retina display is not readily apparent for many consumers.

By comparison, Amazon topped the list for the eighth year in a row, despite having a vastly wider variety of products from multiple manufacturers. While Amazon is the equivalent of an online department store, Apple is more of a boutique shop.

Apple Avoids Social Reviews

Amazon's success is in consistently providing "great features" for customers to find and compare products, Freed said. The site's product reviews are particularly helpful.

"There are no product reviews on Apple's site," he said. "In trying to decide if the (iPad) mini is right for me or not, you're really forced to go somewhere else to get somebody's opinion."

ForeSee's index is based on more than 24,000 customer surveys collected between Thanksgiving and Christmas. A drop in the index is significant because each point on average represents a 14% decline in a site's growth rate in sales, according to Freed. For example, if a site had a 20% growth rate year to year in 2011, then dropping a point this year would cut that rate by 3%.

Apple's decline was not the worst among the 100 companies listed. The biggest drop in customer satisfaction was on J.C. Penney's site, which fell five points to 78. Among PC makers, Dell's site also dropped 3 points, but to a lower overall score of 77.

Like Apple, Dell's problem stems from providing too little assistance in figuring out which PC is the best fit among a wide variety of choices. "When you have too many choices, consumers tend to freeze and don't know what to do," Freed said. "Dell has that [problem]. They've got to simplify how you find what you are looking for."

Turmoil In Apple Retail Operations

Apple experienced significant turmoil within its management ranks in 2012, although it's difficult to say whether that contributed to its weaker performance in online customer satisfaction. John Browett, head of Apple's retail operations, was ousted this year after only six months at the helm. He had replaced Ron Johnson, who was responsible for Apple's highly successful retail stores. Johnson left Apple to become CEO of J.C. Penney.

Browett joined Apple from Dixons, a British consumer electronics retailer, where he had been CEO. Browett's troubles at Apple were mostly operational. His plans for cutting costs included reducing employees' hours and freezing hiring, decisions Apple later reversed.

While it would be unfair to pin Apple's latest ForeSee score on Browett, there's no doubt the consumer electronics maker needs to double down on improving its online customer experience to avoid turning the decline into a trend. Apple did not immediately return requests for comment.

ForeSee finds that site satisfaction leads to brand loyalty, positive recommendations and repeat purchases.

 

 

Lead image courtesy of Shutterstock.

Could These 6 Pending Regulations Destroy The Internet In 2013?

Evan as the Internet keeps growing and evolving, the fallout from major regulations expected in 2013 threaten to change its very nature.  

The dust has yet to settle in the wake of the contentious International Telecommunications Union's (ITU) conference in Dubai, but its repercussions could spit the Internet into two parts: One free and open one, the other closed and censored, depending on which country you are in. Even here in the U.S., pending legislation could further challenge how citizens communicate online and via phone, and how and by whom those communications be me monitored and retrieved.

Here's your need-to-know: 

ITU Fallout

While the ITU treaty isn't legally binding, it sets a precedent and tone for Internet regulation, warned Ambassador Terry Kramer. Diverging opinions on Internet governance, content regulation and network security forced the United States to refuse to support it (see 5 Reasons Why The U.S. Rejected The ITU Treaty). 

Bottom line, giving sovereign nations the ability to manage and monitor the Internet could result in a splintering of the Web. "The Internet could break up into a series of smaller Internets," said Sean Sullivan, a security advisor for F-Secure Labs. Sullivan echoed Ambassador Kramer's rhetoric about autocratic regimes wishing to take more control of the Internet, "to shift control of the Internet from the geeks, and give it to governments."

Still, it's not clear this will happen. Decisions made at the debates aren't set to take effect until January 2015, and individual governments still have to ratify the decisions. Upcoming 2013 conferences like the WTPF policy forum in May and the IGF forum in the Fall could be opportunities for dissenting governments to change their minds (and policies) about the future of the Web. But most observers see countries like China and Russia working to gain as much online control as possible to silence dissenters and control the spread of information.

FISA: Intercepting Email

In November the Senate Judiciary Committee passed the Electronic Communications Privacy Act (ECPA), which makes any email more than 180 days old off-limits to law enforcement without a warrant. While this move was hailed by many Internet watchers, a similar bill is becoming a head-scratcher.

The FISA Amendments Act - a little-known law set to expire at the end of this month - grant the U.S. government extensive power to intercept emails and online conversations of people the Feds believe are foreigners ' without a warrant. To many observers, it's a back-door loophole to keep tabs on people and get around constitutionally protected rights. The law was originally implemented by the Bush administration in 2008 under the auspices that it could help target foreign targets overseas, but it can also ensnare innocent Americans engaging in harmless communication with foreigners. And detractors have called the bill a violation of the fourth amendment. 

In September 2012, the House approved a 5-year extension of the bill by a vote of 301 to 118. Now the Senate must vote by the end of the year or the authority expires. 

Sen. Ron Wyden (D-Ore.), a member of the Senate Intelligence Committee, wants to put a hold on the bill, meaning it can't be passed by unanimous consent but must go through the full legislative process on the floor. "What he wants is a debate," explained members of Wyden's office. "In return for listing hold, the Senator would ask for shortened debate time, but would seek votes on his amendments regarding ammount of communications accepted and closing backdoor searches."

But it looks like Wyden's not going to get that. In a rushed session Thursday, the Senate rejected three attempts to add privacy safeguards to the amendment. The final vote is slated for later today, and it's expected to be voted down. That means the amendment will create a very major civil rights quandary. And from Reddit to the non-profit digital rights group the Electronic Frontier Foundation, the Web is up in arms.  

Jim Fenton, chief security officer at digital identity service OneID, said this issue encapsulates the tension between personal privacy and law enforcement interests. "How do you determine that a particular person is a foreigner," asked Fenton. "Are there exceptions of people who are foreign agents operating in the U.S.?"

The ACLU tried to sue the government over the law's constitutionality, but the original suit was thrown out. The U.S. Court of Appeals reinstated the suit in October, and the courts are now deciding whether or not the plaintiffs have standing to proceed with their challenge. 

CALEA: Murky Telecom Access

The FISA Amendments issue dovetails to the Communications Assistance to Law Enforcement Act (CALEA), which requires telephone and Voice over IP (VoIP, or Internet telephony) providers to give police the ability to access the content of communications, which includes stored email, also without a warrant.

Obviously, CALEA brings up major questions of hosting location and searches. It's likely that any major email service provider would provide records, but what about servers in your own home? Who would have jurisdiction ?

"Does it matter if you host your email at Gmail or maybe if you're a geek you have your own email service at home," asked security expert Fenton. "A lot of people wouldn't expect different protection for these two situations, but there is. My understanding is [the government] would have to obtain a search warrant for your house in order to obtain the server."

3 More Things To Worry About

In addition to those three big issues, other concerns revolve around whether Congress will revive a version of the failed SOPA bill in 2013. Since the bill's author, Rep. Lamar Smith (R-Texas) , was named the next Congress' new chairman of the House Science, Space and Technology committee, it could very well happen. 

On the other hand, it's probably not worth losing sleep over Rep. Darrell Issa (R-California)'s doomed Reddit proposed bill calling for a 2-year moratorium on new Internet legislation. 

But there's another major issue not making headlines that could have a serious impact. Right now Congress is engaged in an inquiry investigating the practices of collecting and selling marketing databases and sales contact lists. It's looking at data collection methods, which Congress plans to use in considering new regulatory legislation.

The results could lead to bills that fundamentally change how data is stored and sold to third-party companies. Or it might not lead to anything but more hot air, as well-funded lobbyists work to convince Congress that more regulation is not needed. 

There's no certainty that any of these regulations will take effect in 2013 - or ever. And even if they do, their effects may turn out to be far different than we expect. But make no mistake, national and international regulations could have profound effect on the Internet in the coming year.

 

End-Of-The-Year IT Checklist For Startups

Guest author Allan Thorvaldsen is CEO and co-founder of Panorama9, a cloud-based dashboard for IT managers.

As we hit the end of of 2012, the pace of business may slow momentarily, making it a good time to take stock of your startup's IT assets, spending and future plans. Inevitably, someone ' maybe the chief financial officer, maybe an investor ' will want to know how much the company spent on technology over the past year. In addition, there are tasks to complete now, in order to start fresh in the new year.

To help, here is a 5-step checklist to help you successfully manage the transition to 2013 for your startup's IT needs:

1. Take Stock Of Your Physical Inventory

If you don't have an up-to-date inventory of your physical technology assets, this is the time to make that happen. How many computers, printers, tablets, servers, etc. do you have? How many did you purchase over the year and at what cost?

You need to show that you're running as lean an operation as possible. Yet it's nearly impossible to be lean when you don't know what's already in place. For example, poor visibility into assets can cause you to purchase an additional server for a new project, when there's an existing server that's sitting unused in the closet.

2. Take Stock Of The Software On Your Network

Knowing what's installed on devices makes license management possible, ensuring your startup is compliant with vendor contracts and software licenses. How happy would the CFO be to know you're buying licenses for new hires with licenses available for the organization?

This is also a good time to assess what applications employees have installed. BYOA (bring your own application) is particularly prevalent in Mac environments and startup cultures where employees feel more ownership of the technology they use. Are there any rogue apps that need to be addressed? Are there any useful applications that should become standard in the company?

3. Put A Solid Disaster-Recovery Plan In Place

Planning for disasters is a lot like deciding to eat better or get more sleep. We know these things are good for us, but they're easy to push aside for another day. However, a disaster-recovery plan doesn't need to be a huge undertaking.

As a startup, you should focus your efforts on what really matters ' identifying those handful of systems your business can't live without. For example, think about what happens if your email server or CRM application goes down, not the microwave in the break room.

(No plan? Get inspired here.) 

If you already have a recovery plan, reassess it now. Did you introduce any new applications throughout the year? Have there been any major changes to the network or other systems that need to be factored in? In addition, take some time to fire-drill your backups to make sure everything is working as planned.

4. Create Reminders For Next Year

Managing the technology infrastructure at a startup is hard work. Technology needs change practically each month. You can make your job easier next year by scheduling and creating automatic alerts for known events, such as when warranties and service, support and supplier contracts end. That way, no matter how hectic things get next year, an expired license won't catch you off guard.

5. Plan Technology Implementations For Next Year

Plan your expenditures for 2013. Are there older computers, servers or software that need to be upgraded in the coming year?

You may want to discuss these needs with your CFO to determine if making some of the purchases while it's still 2012 would be more beneficial for the company's books.

In addition, if you've been considering implementing new software or migrating to the cloud, consider trialing some of these software services now, so you're ready to go next year.

A successful startup depends on high-availability systems and the latest technology on shoestring budgets. By crossing certain tasks off your list this year, you can get your technology infrastructure ready for the next level in 2013.

 

Image courtesy of Shutterstock.

Cheap Tech And Offices Mean Startups Need Less Funding [Infographic]

Entrepreneurs: This is the time to disrupt a market. Those holding out for a better market conditions are bypassing the opportunity of a lifetime.

Granted, two countervailing trends '- a slowly recovering national economy and a pull-back in later early-stage funding -- are keeping things interesting for entrepreneurs. But at the same time, stubborn recession conditions like cheap office space and tech trends like cloud computing temper the need for big piles of outside money to get new companies off the ground.

This infographic comes from Bob Rizika, CEO of cloud computing, Infrastructure-as-a Service (IaaS) firm ProfitBricks USA, who obviously hopes lean startups see an advantage in operating in the cloud. The key points are that creating a startup now is cheaper than ever before, there are new sources of funding available, and the lingering economic issues can reduce competition: