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EU

EU Lawmakers Include Spotify and iTunes In Geoblocking Ban (reuters.com) 2

An anonymous reader quotes a report from Reuters: European Union lawmakers voted on Tuesday to ban online retailers from treating consumers differently depending on where they live and expanded their proposed law to include music streaming services such as Spotify and Apple's iTunes. Ending so-called geoblocking is a priority for the European Commission as it tries to create a single market for digital services across the 28-nation bloc, but many industries argue that they tailor their prices to specific domestic markets. The proposal, which will apply to e-commerce websites such as Amazon, Zalando and eBay, as well as for services provided in a specific location like car rental, forbids online retailers from automatically re-routing customers to their domestic website without their consent. In a blow for the book publishing and music industries, European Parliament members voted to include copyright-protected content such as music, games, software and e-books in the law. That would mean music streaming services such as Spotify and iTunes would not be able to prevent, for example, a French customer buying a cheaper subscription in Croatia, if they have the required rights.
The Courts

Uber Gets Sued Over Alleged 'Hell' Program To Track Lyft Drivers (techcrunch.com) 32

An anonymous reader quotes a report from TechCrunch: Uber has another lawsuit on its hands. This time, it's about Uber's alleged use of a program called "Hell." The plaintiff, Michael Gonzales, drove for Lyft during the time Uber allegedly used the software. He's seeking $5 million in a class action lawsuit. As the story goes, Uber allegedly tracked Lyft drivers using a secret software program internally referred to as "Hell." It allegedly let Uber see how many Lyft drivers were available to give rides, and what their prices were. Hell could allegedly also determine if people were driving for both Uber and Lyft. The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges Uber broadly invaded the privacy of the Lyft drivers, specifically violated the California Invasion of Privacy Act and Federal Wiretap Act and engaged in unfair competition. Uber has not confirmed nor outright denied the claims.
Biotech

Can Parents Sue If Their Kid Is Born With the 'Wrong' DNA? (gizmodo.com) 266

Long-time reader randomErr quotes Gizmodo: It's a nightmare scenario straight out of a primetime drama: a child-seeking couple visits a fertility clinic to try their luck with in-vitro fertilization, only to wind up accidentally impregnated by the wrong sperm. In a fascinating legal case out of Singapore, the country's Supreme Court ruled that this situation doesn't just constitute medical malpractice. The fertility clinic, the court recently ruled, must pay the parents 30% of upkeep costs for the child for a loss of 'genetic affinity.' In other words, the clinic must pay the parents' child support not only because they made a terrible medical mistake, but because the child didn't wind up with the right genes...

"It's suggesting that the child itself has something wrong with it, genetically, and that it has monetary value attached to it," Todd Kuiken, a senior research scholar with the Genetic Engineering and Society Center at North Carolina State University, told Gizmodo. "They attached damages to the genetic makeup of the child, rather than the mistake. That's the part that makes it uncomfortable. This can take you in all sort of fucked up directions."

Crime

DOJ: Russian 'Superhacker' Gets 27 Years In Prison (thedailybeast.com) 50

According to the Justice Department, a 32-year-old Russian "superhacker" has been sentenced to 27 years in prison for stealing and selling millions of credit-card numbers, causing more than $169 million worth of damages to business and financial institutions. The Daily Beast reports: Roman Valeryevich Seleznev, 32, aka Track2, son of a prominent Russian lawmaker, was convicted last year on 38 counts of computer intrusion and credit-card fraud. "This investigation, conviction and sentence demonstrates that the United States will bring the full force of the American justice system upon cybercriminals like Seleznev who victimize U.S. citizens and companies from afar," said Acting Assistant Attorney General Kenneth Blanco said in a statement. "And we will not tolerate the existence of safe havens for these crimes -- we will identify cybercriminals from the dark corners of the Internet and bring them to justice."
Biotech

Theranos Used Shell Company To Secretly Buy Outside Lab Equipment, Says Report (arstechnica.com) 42

An anonymous reader quotes a report from Ars Technica: On Friday, the Wall Street Journal reported that the company "allegedly misled company directors" regarding its lab tests and used a shell company to buy commercial lab gear. These are just a few of the new revelations made by the Journal, which also include fake demonstrations for potential investors. The new information came from unsealed depositions by 22 former Theranos employees or members of its board of directors. They were deposed by Partner Fund Management LP, a hedge fund currently suing Theranos in Delaware state court. Theranos is also facing multiple lawsuits in federal court in California and Arizona, among others. The Journal, which did not publish the new filings, quoted former Theranos director Admiral Gary Roughead (Ret.), as saying that he was not aware that the company was using "extensive commercial analyzers" until it was reported in the press. The Journal described the filings as "some of the first substantive details to emerge from several court proceedings against the company, though they include only short excerpts from the depositions."
Movies

Court Rules Fan Subtitles On TV and Movies Are Illegal (thenextweb.com) 137

A court has just ruled that making fan subtitles or translations is not protected by the law. From a report: A Dutch group called the Free Subtitles Foundation took anti-piracy group BREIN to court over "fansubbing." BREIN has previously been active in taking fan subtitles and translations offline, and the Foundation was hoping a Dutch court would come down on the side of fair use. The court didn't quite see it that way. It ruled that making subtitles without permission from the property owners amounted to copyright infringement. BREIN wasn't unsympathetic, but said it couldn't allow fansubbers to continue doing what they're doing.
Canada

Canada Rules To Uphold Net Neutrality (www.cbc.ca) 65

According to a new ruling by Canada's telecommunications regulator, internet service providers should not be able to exempt certain types of content, such as streaming music or video, from counting toward a person's data cap. The ruling upholds net neutrality, which is the principle that all web services should be treated equally by providers. CBC.ca reports: "Rather than offering its subscribers selected content at different data usage prices, Internet service providers should be offering more data at lower prices," said Jean-Pierre Blais, chairman of the CRTC in a statement. "That way, subscribers can choose for themselves what content they want to consume." The decision stems from a 2015 complaint against the wireless carrier Videotron, which primarily operates in Quebec. Videotron launched a feature in August of that year, enabling customers to stream music from services such as Spotify and Google Play Music without it counting against a monthly data cap as a way to entice people to subscribe to Videotron's internet service. The decision means that Videotron cannot offer its unlimited music streaming plan to subscribers in its current form -- nor can other internet providers offer similar plans that zero-rate other types of internet content, such as video streaming or social media.
Canada

Subway Sues Canada Network Over Claim Its Chicken Is 50 Percent Soy (yahoo.com) 292

jenningsthecat writes: As reported here back in February, the CBC, (Canada's national broadcaster), revealed DNA test results which indicated the chicken used in Subway Restaurants' sandwiches only contained about 50% chicken. Now, Subway is suing the public broadcaster for $210 million, because "its reputation and brand have taken a hit as a result of the CBC reports." The suit claims that "false statements [...] were published and republished, maliciously and without just cause or excuse, to a global audience, which has resulted in pecuniary loss to the plaintiffs."

Personally, my working assumption here is that the CBC report is substantially correct. It will be interesting to see how the case plays out -- but should this have happened at all? Regulatory agencies here in Canada seem to be pretty good when it comes to inspecting meat processing facilities. Should they also be testing the prepared foods served by major restaurant chains to ensure that claims regarding food content are true and accurate?

Businesses

Qualcomm Collected Partial iPhone Royalties Despite Legal Battle With Apple (fortune.com) 14

From a report: Qualcomm continued to collect some royalties for Apple's use of its wireless technology in iPhones last year despite dueling lawsuits between the two mobile giants, cheering Qualcomm investors who feared that the payments had entirely dried up. Qualcomm said on Wednesday that Apple's contract manufacturers including Foxconn paid royalties, although they withheld around $1 billion from the undisclosed total amount due. The amount withheld equaled the amount Qualcomm withheld from Apple last year under a separate agreement to cooperate on mobile technology that has since expired.
The Courts

Tesla Settles Lawsuit Against Former Autopilot Program Director Accused of Stealing Info, Engineers (electrek.co) 40

Earlier this year, Tesla filed a lawsuit against its former director of Autopilot Programs, Sterling Anderson, for stealing proprietary information about the Autopilot program and recruiting fellow Tesla engineers to work with him at Aurora Innovation, another autonomous driving company. According to Electrek, "the lawsuit was settled today with Tesla withdrawing their allegations without damages and Aurora agreeing to make itself available for an audit by a third-party to make sure they don't have proprietary information from Tesla's Autopilot program." From the report: Aurora also agreed to cover the cost of the audit for up to $100,000. The startup claims that it had already ordered its own audit, which found âoeno material Tesla confidential information." As for the allegations of poaching employees, Aurora has agreed not to reach out to Tesla employees for a year and to release the names of former Tesla employees who have joined the startup already. You can read Auroraâ(TM)s statement about the settlement in full here and Teslaâ(TM)s further down below: âoeSelf-driving vehicles will save lives, preserve resources, and make transportation more accessible and enjoyable for everyone. Aurora was founded on the premise that experience, innovative thinking, hard work, and a commitment to doing the right thing can accelerate this future..."
Privacy

Bose Headphones Secretly Collected User Data, Lawsuit Reveals (fortune.com) 230

The audio maker Bose, whose wireless headphones sell for up to $350, uses an app to collect the listening habits of its customers and provide that information to third parties -- all without the knowledge and permission of the users, according to a lawsuit filed in Chicago. From a report: The complaint accuses Boston-based Bose of violating the WireTap Act and a variety of state privacy laws, adding that a person's audio history can include a window into a person's life and views. "Indeed, one's personal audio selections -- including music, radio broadcast, Podcast, and lecture choices -- provide an incredible amount of insight into his or her personality, behavior, political views, and personal identity," says the complaint, noting a person's audio history may contain files like LGBT podcasts or Muslim call-to-prayer recordings.
Businesses

Trump To Overhaul H-1B Visa Program To Encourage Hiring Americans (theguardian.com) 619

An anonymous reader quotes a report from The Guardian: In a bid to court working class voters, Donald Trump will sign an executive order on Tuesday to revamp a temporary visa program used to bring foreign workers to fill jobs in the U.S. The president will use a visit to a manufacturing company in Kenosha, Wisconsin, a crucial state he snatched from Hillary Clinton in the election, to promote his latest "Buy America Hire America" offensive. Trump's executive order will call on government departments to introduce reforms to ensure that H-1B visas are awarded to the "most skilled or highest paid applicants," a senior administration official said. The executive order will also call for the "strict enforcement" of laws governing entry to the U.S. of labor from overseas, with a view to creating higher wages and employment rates for U.S. workers. The order will also call on government departments to "take prompt action to crack down on fraud and abuse" in the immigration system, a senior administration official said. The administration official sad: "Right now H-1B visas are awarded by random lottery and many of you will be surprised to know that about 80% of H-1B workers are paid less than the median wage in their fields. Only 5% to 6%, depending on the year, of H-1B workers command the highest wage tier recognized by the Department of Labor. [...] If you change that current system that awards visas randomly, without regard for skill or wage, to a skills-based awarding, it makes it extremely difficult to use the visa to replace or undercut American workers [...] It's a very elegant way of solving very systemic problems in the H-1B guest worker visa."
Government

Trump Administration Kills Open.Gov, Will Not Release White House Visitor Logs (techdirt.com) 268

An anonymous reader quotes a report from Techdirt: It will never be said that the Trump presidency began with a presumption of openness. His pre-election refusal to release his tax returns set a bit of precedent in that regard. The immediate post-election muffling of government agency social media accounts made the administration's opacity goals um clearer. So, in an unsurprising move, the Trump administration will be doing the opposite of the Obama administration. The American public will no longer have the privilege of keeping tabs on White House visitors. TIME reports: "The Trump Administration will not disclose logs of those who visit the White House complex, breaking with his predecessor, the White House announced Friday. White House communications director Michael Dubke said the decision to reverse the Obama-era policy was due to 'the grave national security risks and privacy concerns of the hundreds of thousands of visitors annually.' Instead, the Trump Administration is relying on a federal court ruling that most of the logs are 'presidential records' and are not subject to the Freedom of Information Act." So, to further distance himself from the people he serves (and the people who elected him), Trump and his administration have shut down the transparency portal put in place by the previous Commander-in-Chief: "White House officials said the Administration is ending the contract for Open.gov, the Obama-era site that hosted the visitor records along with staff financial disclosures, salaries, and appointments. An official said it would save $70,000 through 2020 and that the removed disclosures, salaries and appointments would be integrated into WhiteHouse.gov in the coming months."
Transportation

Uber Face Fines Over Drunk Driving Complaints -- And Lost $2.8 Billion Last Year (usnews.com) 133

While Uber's bookings doubled last year, the company still showed a net lost of $2.8 billion. And now, "California regulators are recommending that Uber pay a $1.13 million fine for not investigating rider complaints that drivers were working intoxicated." An anonymous reader writes: California "requires ride-hailing companies to have a zero-tolerance policy for driving under the influence of alcohol or drugs," notes Reuters -- and yet Tuesday's order reports that investigators "found no evidence that (Uber) followed up in any way with zero-tolerance complaints several hours or even one full day after passengers filed such complaints." Investigators from the state's Public Utilities Commission are asking the full commission to examine their findings,

"To confirm the policy, regulators analyzed selected complaints against drivers who received three or more complaints," Reuters reports. Though Uber has sometimes suspended drivers within one hour of customer complaints -- 22 times -- they've apparently received 2,047 drug- or alcohol-related complaints between August 2014 and August of 2015. "The company said drivers were banned from working in 574 of those complaints, according to the order. But regulators then reviewed 154 complaints, and determined that the company failed to promptly suspend drivers in 149 complaints. The company also failed to investigate 133 complaints, and did not suspend a driver or investigate 113 complaints, the order shows... In at least 25 instances, Uber failed to suspend or investigate a driver after three or more complaints, the order states."

An Uber spokeswoman said the company had no comment, but "Adding to Uber's challenges, a Reuters investigation found a ten-fold increase in attacks on drivers in Sao Paulo last year, including several murders, after the start of cash payments on its platform at the end of July." And in addition, a judge in Brazil ruled last week that Uber's drivers are employees, which could make Uber liable for a variety of benefits, following a similar ruling in another Brazilian state court.

But there's also some good news for Uber. A court in Rome suspended a ban on Uber in Italy until the company finishes its legal appeal, and a two-month suspension in Taiwan also came to an end after Uber agreed to partner with license rental car companies.
Businesses

Embarrassing Ex-Employee Complaint Against Snapchat Unsealed (variety.com) 85

"Saying it had 'nothing to hide,' the company behind Snapchat released an unredacted version of a lawsuit filed against it by a former employee that claims investors and advertisers were misled about usage data." And one allegation -- about a meeting with the company's 25-year-old CEO about flawed user metrics and low adoption in India in Spain -- is particularly embarrassing. Pompliano, who had just been hired away from Facebook, contends that he presented methods to address the issue, but that Evan Spiegel, the company's CEO, abruptly cut him off. "This app is only for rich people," Spiegel said, according to Pompliano. "I don't want to expand into poor countries like India and Spain"... Pompliano claims that Spiegel then met with two other executives and determined that "Mr. Pompliano presented a risk to Snapchat's IPO."
It may have been a flip remark, but the lawsuit also alleges two data analysts confided to Pompliano that Snapchat had "an institutional aversion to looking at user data," where its efforts showed "utter incompetence". The former employee -- who was fired after three weeks -- alleges that Snapchat inflated the rate of completed registrations and the number of users who stayed longer than seven days.

Snap originally said the lawsuit should remain redacted because it contained damaging trade secrets that would help its competitors, but now Snap attorneys are accusing Pompliano and his attorneys of "just making things up... The simple fact is that he knows exactly nothing about Snap's current metrics." Variety reports that Pompliano's attorney "said that Snap withdrew its effort to seal the complaint because the company knew it would lose."
Electronic Frontier Foundation

Troll With 'Stupid Patent' Sues EFF. EFF Sues Them Back (arstechnica.com) 68

"The Electronic Frontier Foundation has sued an Australian company that it previously dubbed as a 'classic patent troll' in a June 2016 blog post entitled: Stupid Patent of the Month: Storage Cabinets on a Computer." An anonymous reader quotes Ars Technica: Last year, that company, Global Equity Management (SA) Pty. Ltd. (GEMSA), managed to get an Australian court to order EFF to remove its post -- but EFF did not comply. In January 2017, Pasha Mehr, an attorney representing GEMSA, further demanded that the article be removed and that EFF pay $750,000. EFF still did not comply. The new lawsuit, filed in federal court in San Francisco on Wednesday, asks that the American court declare the Australian ruling unenforceable in the U.S.
GEMSA's attorneys reportedly threatened to have the EFF's post de-indexed from search engine listings -- on the basis of the Australian court order -- so now the EFF "seeks a court order declaring the Australian injunction 'repugnant' to the U.S. Constitution and unenforceable in the United States."

The Register reports that GEMSA has already sued 37 companies, "including big-name tech companies Airbnb, Uber, Netflix, Spotify, and eBay. In each case, GEMSA accused the company's website design of somehow trampling on the GUI patent without permission." But things were different after the EFF's article, according to Courthouse News. "GEMSA said the article made it harder to enforce its patents in the United States, citing its legal opponents' 'reduced interest in pursuing pre-trial settlement negotiations.'"
Network

Former Sysadmin Accused of Planting 'Time Bomb' In Company's Database (bleepingcomputer.com) 143

An anonymous reader writes: Allegro MicroSystems LLC is suing a former IT employee for sabotaging its database using a "time bomb" that deleted crucial financial data in the first week of the new fiscal year. According to court documents, after resigning from his job, a former sysadmin kept one of two laptops. On January 31, Patel entered the grounds of the Allegro headquarters in Worcester, Massachusetts, just enough to be in range of the factory's Wi-Fi network. Allegro says that Patel used the second business-use laptop to connect to the company's network using the credentials of another employee. While connected to the factory's network on January 31, Allegro claims Patel, who was one of the two people in charge of Oracle programming, uploaded a "time bomb" to the company's Oracle finance module. The code was designed to execute a few months later, on April 1, 2016, the first week of the new fiscal year, and was meant to "copy certain headers or pointers to data into a separate database table and then to purge those headers from the finance module, thereby rendering the data in the module worthless." The company says that "defendant Patel knew that his sabotage of the finance module on the first week of the new fiscal year had the maximum potential to cause Allegro to suffer damages because it would prevent Allegro from completing the prior year's fiscal year-end accounting reconciliation and financial reports."
China

The Surprising Rise of China As IP Powerhouse (techcrunch.com) 150

hackingbear quotes a report from TechCrunch: China is not only taking the spotlight in strong defense of global markets and free trade, filling a vacuum left by retreating Western capitalist democracies, China is quickly becoming a (if not the) global leader in intellectual property protection and enforcement. And there too, just as Western democracies (especially the United States) have grown increasingly skeptical of the value of intellectual property and have weakened protection and enforcement, China has been steadily advancing its own intellectual property system and the protected assets of its companies and citizens. In addition to filing twice as many patents as the U.S., China is increasingly being selected as a key venue for patent litigation between non-Chinese companies. Why? Litigants feel they are treated fairly. Reports indicated that in 2015, 65 foreign plaintiffs won all of their cases against other foreign companies before Beijing's IP court. And even foreign plaintiffs suing Chinese companies won about 81 percent of their patent cases, roughly the same as domestic Chinese plaintiffs. China's journey from piracy to protection models the journeys of other Western and Asian countries. While building its industrial economies, the U.S. and major European powers violated IP laws with no consideration. As reported by The Guardian, Doron Ben-Atar, a history professor at Fordham University, has noted that "U.S. and every major European state engaged in technology piracy and industrial espionage in the 18th and 19th century." It took Western economies a hundred or more years to change that behavior. China's mind-whipping change is happening over decades, not centuries.
Google

How Google Book Search Got Lost (backchannel.com) 46

Google Books was the company's first moonshot. But 15 years later, the project is stuck in low-Earth orbit, argues an article on Backchannel. From the article: When Google Books started almost 15 years ago, it also seemed impossibly ambitious: An upstart tech company that had just tamed and organized the vast informational jungle of the web would now extend the reach of its search box into the offline world. By scanning millions of printed books from the libraries with which it partnered, it would import the entire body of pre-internet writing into its database. [...] Two things happened to Google Books on the way from moonshot vision to mundane reality. Soon after launch, it quickly fell from the idealistic ether into a legal bog, as authors fought Google's right to index copyrighted works and publishers maneuvered to protect their industry from being Napsterized. A decade-long legal battle followed -- one that finally ended last year, when the US Supreme Court turned down an appeal by the Authors Guild and definitively lifted the legal cloud that had so long hovered over Google's book-related ambitions. But in that time, another change had come over Google Books, one that's not all that unusual for institutions and people who get caught up in decade-long legal battles: It lost its drive and ambition. Google stopped updating Books blog in 2012, and folded it into the main Google Search blog. The author reports that Google still has people working on Book Search, and they are adding new books, but the pace is rather slower.
Blackberry

BlackBerry Awarded $815 Million in Arbitration Case Against Qualcomm (cnbc.com) 22

BlackBerry, the former smartphone maker, was awarded $814.9m in an arbitration decision against Qualcomm over a dispute relating to royalty payments. The two companies entered into arbitration talks in February about Qualcomm's "agreement to cap certain royalties applied to payments made by BlackBerry under a license agreement between the parties," BlackBerry said in a statement. From a report: BlackBerry argued that it was overpaying Qualcomm in royalty payments. Last April, BlackBerry and Qualcomm entered discussions to settle the dispute and analyze an existing "agreement to cap certain royalties applied to payments made by BlackBerry under a license agreement between the two parties." Despite the dispute, BlackBerry CEO John Chen said Wednesday that the companies "continue to be valued technology partners." He said BlackBerry will continue to collaborate with Qualcomm, specifically for security in the auto industry and in application-specific integrated circuits.

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