Tag: USA
President Obama Complains To China About Demanding Backdoors To Encryption… As His Administration Demands The Same Thing
Back in January, we pointed out that just after US and EU law enforcement officials started freaking out about mobile encryption and demanding backdoors, that China was also saying that it wanted to require backdoors for itself in encrypted products. Now, President Obama claims he’s upset about this, saying that he’s spoken directly with China’s President Xi Jinping about it:
In an interview with Reuters, Obama said he was concerned about Beijing’s plans for a far-reaching counterterrorism law that would require technology firms to hand over encryption keys, the passcodes that help protect data, and install security “backdoors” in their systems to give Chinese authorities surveillance access.
“This is something that I’ve raised directly with President Xi,” Obama said. “We have made it very clear to them that this is something they are going to have to change if they are to do business with the United States.”
This comes right after the US Trade Rep Michael Froman issued a statement criticizing China for doing the same damn thing that the US DOJ is arguing the US should be doing:
U.S. Trade Representative Michael Froman issued a statement on Thursday criticizing the banking rules, saying they “are not about security – they are about protectionism and favoring Chinese companies”.
“The Administration is aggressively working to have China walk back from these troubling regulations,” Froman said.
Those claims would sound a hell of a lot stronger if they weren’t coming immediately after DOJ officials from Attorney General Eric Holder to FBI Director James Comey had more or less argued for the exact same thing.
There Is No Way That Hillary Clinton Didn’t Know She Was Supposed To Use A Government Email Account
As you may have heard, the latest political “scandal” involving a major Presidential contender comes via the NY Times reporting that when Hillary Clinton was Secretary of State, she refused to have a government email address, and conducted all her work via a personal email account.
Hillary Rodham Clinton exclusively used a personal email account to conduct government business as secretary of state, State Department officials said, and may have violated federal requirements that officials’ correspondence be retained as part of the agency’s record.
Mrs. Clinton did not have a government email address during her four-year tenure at the State Department. Her aides took no actions to have her personal emails preserved on department servers at the time, as required by the Federal Records Act.
This is dumb on many, many levels and there appears to be no excuse for it happening. First off, using a personal email as Secretary of State seems like a massive privacy and security risk. While one hopes that there was at least some attempt to better secure her personal account by government security experts, it’s still almost certainly less secure. Given how much sensitive information the Secretary of State has to deal with, it seems inexcusable that she was allowed to conduct official business via her personal account. That to me seems like an even bigger deal than the part that everyone else is focused on: the failure to preserve her emails as required by law.
Of course, the failure to preserve the emails is a big deal as well. But here’s the really stunning thing: there is simply no way that Clinton and others in the administration didn’t know that she was supposed to be using a government email address and preserving those emails. That’s because both the previous administration and others in her own administration got in trouble for using personal email addresses. As Vox notes, towards the end of the Bush administration there was a similar scandal involving a variety of high level administration members using personal email to conduct government business and to avoid transparency requirements.
A Few Comments on the David Petraeus Plea Deal: What Money And Connections Buy You
David Petraeus, who suffered a fall worthy of a Greek tragedy when was caught leaking classified information to his biographer-girlfriend, has reached a plea deal with the feds, in the person of the U.S. Attorney’s Office for the Western District of North Carolina.
As of now two documents are available online. There’s the Information, which is the charging document the feds use when grand jury indictment is not required or when the defendant waives that right. There’s also the factual basis — the narrative of facts to which Petraeus will admit. These documents reveal that Petraeus has agreed, in advance of charges being filed, to take a misdemeanor.
Generally, poor people react and rich people are proactive. Petraeus is sophisticated and has assets; he could afford to hire lawyers to negotiate with the feds before they charged him. As a result, he was able to secure a pretty good outcome that controlled his risks. The feds let him plead, pre-indictment, to a misdemeanor charge of improper removal and retention of classified documents under 18 USC section 1924. That means even if the federal judge who sentences him goes on a rampage, he can’t get more than a year in federal prison — and, given that it’s a misdemeanor, will very likely get far less. The Factual Basis includes a United States Sentencing Guideline calculation in which the government and Petraeus agree he winds up at an Adjusted Offense Level of 8, which means the judge can give him straight probation.
It is very difficult to get a misdemeanor out of the feds.
Petraeus’ factual basis reveals that he could have been charged with much, much worse. The statement discusses his “Black Books” containing his schedules and notes during his command in Afghanistan; those books contained “national defense information, including Top Secret/SCI code word information.” (Factual Basis at paragraphs 17-18.) Petraeus, after acknowledging that “there’s code word stuff in there,” gave the Black Books to his biographer/girlfriend at her private residence. “The DC Private Residence was not approved for the storage of classified information,” the statement notes dryly. (Factual Basis at paragraphs 22-25.) He retrieved the Black Books a few days later after she had been able to examine them, and retained them. Thereafter, when he resigned from the CIA, he signed a certification that he had no classified material in his possession, even though he had the Black Books. (Factual Basis at paragraph 27.) Later, when Petraeus consented to interviews with FBI agents1 he lied to them and told them that he had never provided classified information to his biographer/girlfriend. (Factual Basis at paragraph 32.)
To federal prosecutors, that last paragraph of facts is like “Free Handjob And iPad Day” at Walt Disney World. First, you’ve got the repeated false statements to the government, each of which is going to generate its own charge under 18 U.S.C. 1001, which makes it illegal for you to lie to your government no matter how much your government lies to you. Then you’ve got the deliberate leaking of top secret/code word defense data to a biographer. An aggressive prosecutor might charge a felony under 18 U.S.C. section 793 (covering willful disclosure of national defense information) or 18 U.S.C. section 798 (covering disclosure of classified communications intelligence materials or information derived therefrom), both of which have ten-year maximum penalties. Those charges don’t seem to require any intent to harm the U.S. — only disclosure of information which could harm the U.S. if distributed. Other than that? You better believe there would be a conspiracy count for Petraeus’ interaction with his girlfriend.
If Petraeus were some no-name sad-sack with an underwater mortgage and no connections and no assets to hire lawyers pre-indictment, he’d almost certainly get charged a lot more aggressively than he has been. This administration has been extremely vigorous in prosecuting leakers and threatening the press.
So why is Petraeus getting off with a misdemeanor and a probable probationary sentence? Two reasons: money and power. Money lets you hire attorneys to negotiate with the feds pre-charge, to get the optimal result. Power — whether in the form of actual authority or connections to people with authority — gets you special consideration and the soft, furry side of prosecutorial discretion.
This is colloquially known as justice.
U.S. Govt Files For Default Judgment on Dotcom’s Cash and Cars
In the wake of the now-famous 2012 raid, the U.S. government has done everything in its power to deny Kim Dotcom access to the assets of his former Megaupload empire. Millions were seized, setting the basis for a legal battle that has dragged on for more than three years.
In a July 2014 complaint submitted at a federal court in Virginia, the Department of Justice asked for forfeiture of the bank accounts, cars and other seized possessions, claiming they were obtained through copyright and money laundering crimes.
“Kim Dotcom and Megaupload will vigorously oppose the US Department of Justice’s civil forfeiture action,” Dotcom lawyer Ira Rothken told TF at the time.
But in the final days of last month Dotcom received a blow when a ruling from the United States barred him from fighting the seizure. A Federal Court in Virginia found that Dotcom was not entitled to contest the forfeiture because he is viewed as a “fugitive” facing extradition.
“We think this is not offensive to just Kim Dotcom’s rights, but the rights of all Kiwis,” Rothken said.
Wasting no time, yesterday the United States went in for the kill. In a filing in the District Court for the Eastern District of Virginia, the Department of Justice requested an entry of default against the assets of Kim Dotcom plus co-defendants Mathias Ortmann, Bram van der Kolk, Finn Batato, Julius Bencko, and Sven Echternach.
The targets for forfeiture are six bank accounts held in Hong Kong in the names of Ortmann, der Kolk, Echternach, Bencko and Batato. New Zealand based assets include an ANZ National Bank account in the name of Megastuff Limited, an HSBC account held by der Kolk and a Cleaver Richards Limited Trust Account for Megastuff Limited held at the Bank of New Zealand. Two Mercedes-Benz vehicles (an A170 and an ML500) plus their license plates complete the claim.
The request for default judgment was entered soon after.
AT&T’s $30 ‘Don’t Be Snooped On’ Fee Is Even Worse Than Everybody Thought
Last week we noted that while AT&T has been trying to match Google Fiber pricing in small portions of several markets, it has been busily doing it in a very AT&T fashion. While the company is offering a $70, 1 Gbps service in some locations, the fine print indicates that users can only get that price point if they agree to AT&T’s Internet Preferences snoopvertising program. That program uses deep packet inspection to track your online behavior down to the second — and if you want to opt out, that $70 1 Gbps broadband connection quickly becomes significantly more expensive.
While most people thought this was rather dumb, AT&T actually received kudos on some fronts for trying something new. Apparently, the logic goes, AT&T charging you a major monthly fee to not be snooped on will result in some kind of privacy arms race resulting in better services and lower prices for all. While sometimes that sort of concept works (Google and Apple scurrying to profess who loves encryption more, for example), anybody who believes this is a good precedent doesn’t know the U.S. telecom market or AT&T very well.
As Stacey Higginbotham at GigaOM notes, it’s not as simple as just paying AT&T a $30 to not be snooped on. AT&T actually makes it very difficult to even find the “please don’t spy on me option,” and saddles the process with a number of loopholes to prevent you from choosing it. In fact, you’re not even able to compare prices unless you plug in an address that’s in AT&T’s footprint, but currently doesn’t have AT&T service. Meanwhile, according to Higginbotham’s math, even if you’re successful in signing up, that $30 privacy fee is actually much more depending on your chosen options. If you just want broadband, opting out of AT&T snoopvertising will actually run you $44
Copyright Monopoly Fraudsters Need To Go To Jail With Heavy Damages
Last week there was a story on TorrentFreak about a copyright monopolist who had gone absolutely insane and sent so-called “takedown notices” to everybody and their brother, from EFF to TOR – basically anybody with a download page.
It’s a complete mystery why this isn’t a criminal behavior. The fact that it isn’t is why it continues and harms innovation, creativity, free speech, and the Internet.
The Swedish Pirate Party had a very clear policy on crimes like this: if you lied about holding an exclusive right to something, the same penalty that would have applied to an infringer of that exclusive right would instead apply to you. This is only fair, after all: you are infringing on the distribution of a creative work by dishonest means.
For repeat offenders, or organizations that committed this crime on a commercial basis or commercial gain, like that idiot record label in the TorrentFreak story – they would be declared criminal organizations and have all their assets seized. The individuals doing so for commercial gain would go to jail for a couple of years.
The thing is, this should not even be contentious. This is how we deal with this kind of criminal act in every – every – other aspect of society. If you lie as part of commercial operations and hurt somebody else’s rights or business, you are a criminal. If you do so repeatedly or for commercial gain, direct or indirect, you’re having your ill-gotten gains seized. This isn’t rocket science. This is standard bloody operating procedure.
The copyright industry goes ballistic at this proposal, of course, and try to portray themselves as rightsless victims – when the reality is that they have been victimizing everybody else after making the entire planet rightsless before their intellectual deforestation.
Piracy Lawsuits Dominated By Just Three Movie Companies
Thanks to the development of advanced file-sharing systems and fast Internet connections, lawsuits aimed at alleged Internet pirates have become commonplace over the past decade and are showing no signs of disappearing anytime soon.
The statistics behind the threats have been documented periodically but now a detailed study of IP litigation as a whole has painted a clearer picture of trends during the past 10 years.
Published by Matthew Sag, Professor of Law at Loyola University Chicago School of Law, IP Litigation in United States District Courts: 1994 to 2014 provides a review of all IP litigation in U.S. district courts over the past two decades to include copyright, patent and trademark lawsuits over 190,000 case filings.
Perhaps unsurprisingly one of the paper’s key findings is that Internet file-sharing has transformed copyright litigation in the United States, in one area in particular.
“To the extent that the rate of copyright litigation has increased over the last two decades, that increase appears to be entirely attributable to lawsuits against anonymous Internet file sharers,” the paper reads.
In broad terms the paper places lawsuits against alleged pirates into two categories – those with an aim of discouraging illegal file-sharing and those that exist to monetize online infringement.
Category one is dominated by lawsuits filed by the RIAA against users of software such as Kazaa and LimeWire who downloaded and shared tracks without permission. Announced in 2003, the wave seriously got underway during 2004 and persisted until 2008, straggling cases aside.
Category two is dominated by the so-called copyright trolls that have plagued file-sharing networks since 2010. These companies, largely from the adult movie sector, track down alleged file-sharers with the aim of extracting cash settlements.
DOJ Inspector General Tells Congress That FBI Isn’t Letting His Office Do Its Job… Again
The FBI is still actively thwarting its oversight. Last fall, DOJ Inspector General Michael Horowitz informed the House Judiciary Committee that the FBI was routinely denying his office documents it needed to perform investigations. The withheld documents included everything from electronic surveillance information to organizational charts. Not only did the FBI refuse to hand over requested documents, but it also stonewalled OIG investigations for so long that “officials under review [had] retired or left the agencies before the report [was] complete.”
Nearly six months later, the situation remains unchanged. Horowitz is again informing the House Judiciary Committee that the FBI is still less than interested in assisting his office. The same stonewalling tactics and withholding of information continues, preventing the IG from fully examining the DEA’s use of administrative subpoenas.
US Court Rules That Kim Dotcom Is A ‘Fugitive’ And Thus DOJ Can Take His Money
In the long, convoluted and complex legal battles facing Megaupload founder Kim Dotcom, there was some bizarre stuff that happened late last year. As you may recall, early on, the US government seized basically all of his stuff and money. Dotcom has made efforts to get some of it returned, as it’s tough to fight the most powerful government in the world when it’s holding onto all of your money. Keep in mind from our previous discussions on asset seizure and forfeiture, the government can basically seize whatever it wants, just by claiming it was somehow related to a crime, but the seizure is only a temporary process. If the government wants to keep it, it then needs to go through a separate process known as civil asset forfeiture, which is effectively the government suing the assets. Back in July, the US government moved to forfeit everything it had seized from Dotcom in a new lawsuit with the catchy name USA v. All Assets Listed In Attachment A, And All Interest, Benefits, And Assets Traceable Thereto. As you may have guessed, Attachment A [pdf] is basically all of Kim Dotcom’s money and posessions.
Back in November, the DOJ argued that it should get to keep all of Kim Dotcom’s money and stuff because he’s a “fugitive”, which is a bizarre and ridiculous way to portray Kim Dotcom, who has been going through a long and protracted legal process over his potential extradition from New Zealand (though he’s offered to come to the US willingly if the government lets him mount a real defense by releasing his money). Dotcom’s lawyers told the court that it’s ridiculous to call him a fugitive, but it appears that Judge Liam O’Grady didn’t buy it.
In a ruling that was just posted a little while ago, O’Grady sided with the government, and gave the DOJ all of Dotcom’s things. You can read the full reasoning here and it seems to take on some troubling logic. Dotcom’s lawyers pointed out, as many of us have, that there is no secondary copyright infringement under criminal law, but the judge insists that there’s enough to show “conspiracy to commit copyright infringement.” But the reasoning here is bizarre. Part of it is the fact that Megaupload did remove links to infringing content from its top 100 downloads list. To me, that seems like evidence of the company being a good actor in the space, and not trying to serve up more infringing downloads. To Judge O’Grady and the DOJ, it’s somehow evidence of a conspiracy. No joke.