London Newspaper Gets Mixed Results in Court Case
The London Times recently claimed victory in a libel case in the English Court of Appeal. The suit was brought against the newspaper by a Russian businessman. The Times, however, was unsuccessful in arguing that its Web site archive is protected by the same defense that applies to its print edition.
Grigori Loutchansky sued The Times over an article that appeared in its print and online editions in 1999, accusing him of involvement in money laundering and the smuggling of nuclear weapons.
The Times successfully argued that its print edition is protected by a defense of "qualified privilege"--that it is the duty of a free press to give the public information on matters of public interest, even if the matters later turn out to be false. The court agreed, noting that this defense gives journalists and their editors a degree of protection against libel actions when they report on matters of public interest, provided they act responsibly.
However, the newspaper also argued that qualified privilege protects its online news archive. It said the archive is publicly available and "a service to the public at large." The court disagreed.
Global Crackdown on Pirated Software Aimed at Warez Community
Law enforcement authorities in five countries launched a crackdown last week on a global network offering pirated software called "Warez" via the Internet.
The U.S. Customs Service executed 37 search warrants in 27 U.S. cities in connection with Operation Buccaneer, which aims to halt the software network. An additional 19 search warrants were issued in the United Kingdom, Australia, England, Finland and Norway. Six British individuals have already been arrested in connection with the operation. The software pirated by these groups includes business software, firewall and other security software and copyrighted games, music and digital videos.
According to U.S. Customs, Operation Buccaneer is the first federal investigation of Internet software piracy to reach across international borders.
Following a 15-month investigation, the search warrants named major universities such as MIT and UCLA as well as businesses and residences around the United States. Officers have begun seizing computers, software and other equipment.
EC Agrees on Spam Provisions
The European Council yesterday agreed that unsolicited commercial e-mail--or spam--should only be allowed where there is prior consent from individuals or where there is an existing customer relationship. This agreement still requires approval from the European Parliament.
Following debate on the "draft directive on the processing of personal data and the protection of privacy in the electronic communications sector," the council reached agreement on the so-called "opt-in" approach for unsolicited commercial e-mail, which goes against the recommendation of the European Parliament to leave the choice between an opt-in and an opt-out to the member states.
The council said in view of the very small number of member states that, given the choice would prefer an opt-out policy, the single market principle should prevail. The U.K. government had been among those wanting an opt-out approach.
Micron Takes Major Step in Notebook Security
Thanks to an innovative step by MicronPC, a leading producer of home computers, consumers now can have the same security with their notebook computers that is enjoyed by tech companies and government agencies.
Micron announced this week that it is releasing a new notebook computer with a built-in biometric fingerprint recognition system.
The company said the multilayered authentication system on its new TransPort GX2 uses the latest fingerprint biometric technology to ensure that unauthorized users cannot access what is stored on the laptop.
The biometric system can also be configured to replace passwords in Windows-compatible programs running on the notebook.
Key for E-Tailers is Converting Online Window Shoppers
Midway through the holiday shopping season, predictions are appearing that many online stores are experiencing growth in their business and are on target to set new records.
Some experts feel the key to the spike in business is the industry's ability to convert curious surfers who in the past had just used the Web to scour for gifts into paying customers.
Many operators are offering price discounts or free shipping deals without hurting earnings. Many online retailers have resurrected free shipping offers, which has proved more effective in the past than marking down merchandise. But this season, they're not being as generous.
Luxury e-tailer Ashford.com, which provided unlimited free shipping last year, now offers free shipping only for purchases of $1,000 or more. For Toysrus.com, the minimum purchase for free shipping is $150, up from $100 a year ago.
Two months ago, Amazon.com increased its everyday discount to 30 percent off almost all books over $20.
Jennifer Dulski, senior brand manager at Yahoo!, which has more than 10,000 merchants on its market site, noted there is more discounting this season compared with a year ago, particularly on luxury brands.
E-tailers can be more effective at offering discounts to specific consumers than brick-and-mortar stores can. For example, they can send e-mails to frequent shoppers.
So far, traffic levels this holiday have surged 45 percent to 50 percent, according to Jupiter Media Metrix, an Internet research firm.
Yahoo Taking Over HotJobs
Yahoo! Inc. said Thursday that it expects to reach a quick agreement with the board of online recruitment site HotJobs Inc. on Yahoo's unsolicited bid to acquire HotJobs for $436 million.
Analysts expect Yahoo! to fall into a bidding war with HotJobs' earlier suitor, the parent company of Monster.com, which has said it still plans to buy HotJobs. That deal is awaiting regulatory approval.
Yahoo! said Wednesday that it would pay $10.50 in cash and stock for each share of HotJobs, pushing HotJobs stock up $3.83, or 59 percent, to $10.30 in trading Thursday on the Nasdaq Stock Market. Yahoo! fell $1.56, or 8 percent, to $17.58.
Monster.com's parent company, TMP Worldwide, offered to buy New York-based HotJobs in June in a stock-swap deal that initially valued HotJobs at $12.20 a share.
HotJobs did not comment beyond a statement issued late Wednesday that acknowledged it would negotiate with Yahoo but added that there was no assurance a deal would result.
Russian Hacker Testifying Against His Former Company
A Russian computer programmer accused of violating electronic-book copyrights will avoid possible prison time and a fine by testifying at his company's trial.
Dmitry Sklyarov, 27, had been charged in the first criminal prosecution under the 1998 Digital Millennium Copyright Act. He could have faced up to five years in prison and a $500,000 fine.
Sklyarov and his employer, ElComSoft Co. Ltd. of Moscow, were charged with releasing a program that lets readers disable copyright restrictions on Adobe Systems Inc. electronic-book software. The program is legal in Russia.
Adobe's eBook Reader gives publishers a format for selling books online. It is designed to prevent the transfer of materials between users and devices without publishers' consent.
Sklyarov found flaws in the software's encryption scheme and created ways for users to make backup copies of e-books or transfer them to other devices, such as handheld computers. ElComSoft used the techniques in a program it sold as the Advanced eBook Processor.
After the software became available for download in the United States, for around $99, Adobe complained to the FBI.
Sklyarov was arrested after speaking at a hacking convention in Las Vegas on July 16. He was freed on bail in August but was required to remain in California while the case proceeded. He now will be allowed to return home with his wife and two children.
Security Hole Leaves Unix Servers Vulnerable
A recently uncovered security hole could give hackers full access to Unix servers from IBM Corp. and Sun Microsystems Inc., experts said this week.
Though no major breaches have been reported so far, the flaw could be used in worms that automatically seek and infect vulnerable systems, said Dan Ingevaldson of Internet Security Systems.
ISS discovered the vulnerability in October but didn't publicize it until vendors were notified and could develop fixes.
The problem stems from a flaw in the operating system's login program, which grants access by usernames and passwords.
Because the program is used by remote-access software, people who do not have direct access to the system can exploit the flaw by the Computer Emergency Response Team. In some cases, the highest level of access could be granted.
Patches are now available to fix machines that are running Sun Solaris and IBM AIX operating systems, Ingevaldson said.
SEC Dropping Charges Against Broadband Wireless International Corp.
The U.S. Securities and Exchange Commission plans to drop charges against Broadband Wireless International Corp., whose former president is believed to be hiding in Central America after allegedly bilking investors in a stock scheme.
The Oklahoma City company was scheduled Monday to ask a federal judge if it could exit receivership and begin reorganization under Chapter 11 bankruptcy laws. Federal authorities said the charges against Broadband are unnecessary
now because new people are running the company.
Broadband's former president, Donald L. Knight, is accused of stealing millions of dollars from investors in a stock manipulation scheme. He is believed to be living in Costa Rica.
Knight, of Edmond, disappeared in August of 2000 shortly before lawsuits were filed by the SEC and the state Securities Department.