Judge Threatens New Sanctions Against Would-Be Facebook Owner

Paul Ceglia

Likening his legal tactics to a “fishing expedition,” a federal judge is threatening to impose more monetary sanctions against a Buffalo man who claims in a lawsuit that he owns half of Facebook.

Paul Ceglia alleges in a 2-year-old lawsuit that Facebook chief Mark Zuckerberg promised him half the company when Zuckerberg was a Harvard University student in 2003. Ceglia claims he has the e-mailed contract to prove it, while Zuckerberg claims it and other e-mails are fabricated.

At stake is control over the social-networking company that just went public, now with a $66 billion market cap.

Ceglia has already coughed up $97,000 in sanctions and fees for stonewalling an order to provide his passwords to e-mail accounts so Facebook’s forensics experts could examine them.

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Good News For Spies and Dictators: ‘FreedomBox’ Is in Danger of an Early Death

Photo: personaldemocracy/Flickr

It’s a developers’ nightmare word: vaporware – a term for hyped new software that’s never delivered. FreedomBox, an ambitious free-software project designed to embed privacy and security into netizens’ routers, seems on the verge of earning that label, risking becoming the Duke Nukem Forever of privacy-enhancing software.

Which would be a sad fate for a project that aimed at freeing the world from the shackles of centralized communication services like Facebook, Gmail and AIM.

The FreedomBox is basically a router shot through with free-software. Once plugged into your home network, it will “protect your security, your privacy and your anonymity while you use the internet,” said James Vasile, the executive director of the FreedomBox Foundation, the nonprofit which was formed to develop the technology using more than $85,000 raised on Kickstarter.

The ultimate goal is to give every internet user, no matter how technophobic, a simple tool that can protect their data from prying hands, be it from ruthless hackers, nosy neighbors, profiling algorithms or repressive governments. The box can either replace a current router or simply sit between an existing router and a modem.

“That is turnkey privacy. It’s turnkey anonymity. It’s turnkey security,” said James Vasile in an October presentation introducing the FreedomBox. “We’re going try to make privacy, freedom, security, anonymity as easy and convenient as what you have now, which is the exact opposite of all of those things.”

On June 7, one of the project’s main developers, Nick Daly, posted a seemingly contradictory message in the official mailing list announcing something that’s been long-awaited: a beta release.

But at the same time, Daly, who just came back from Rio de Janeiro’s Human Rights and Technology Conference, lamented the talk of vaporware he heard from many people there. Noting that it’s been a year and a half since the FreedomBox Foundation was launched, he issued a call to arms:

“We really should have more development work to show for it,” he wrote. “Join us and ask anyone you know to take part in the project.”

In an e-mail, Daly told Threat Level that setting the end of the year as the goal for the initial beta-release is intentionally ambitious. He hopes that “people will see the fact that we probably won’t make it without additional developers as an excuse to join the project.”

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From Copyright to Surveillance to Torture, Supreme Court Term Ends Mixed

Photo: Courtesy of U.S. Supreme Court

The outcome of the Supreme Court’s 2011-2012 term, which ended Thursday, was largely favorable when it came to the justices’ Wired-worthy opinions surrounding surveillance, the First Amendment, intellectual property and even profanity.

But the term’s overall outcome was mixed at best.

That’s because the court, without comment, let stand rulings upholding torture, a $675,000 verdict for file-sharing 30 music tracks, and, among other things, skirted educators’ demands that it clarify on what grounds public schools may punish students for their off-campus, online speech.

Next term, however, the justices have a chance to redeem themselves. They agreed to review important cases in their new term beginning this fall.

One case among them asks whether judges may issue search warrants for private residences when a drug-sniffing dog outside the home reacts as if it smells drugs inside. Another seeks to dismiss a lawsuit challenging legislation allowing the government to electronically eavesdrop on Americans’ phone calls and e-mails without a probable-cause warrant. The Supreme Court will also decide the global reach of U.S. copyright law – whether an overseas purchaser of a copyrighted work may resell it in the United States without the copyright holder’s permission.

Here is a summary of key decisions from the court’s 2011-2012 term:

United States v. Jones

In one of the biggest Fourth Amendment cases blending technology and privacy in a decade, the justices ruled unanimously in January that the authorities need a warrant to affix a GPS device to a vehicle to track its every move. The decision, in a case brought by a convicted drug dealer whose life sentence was overturned, was a blow to the Obama administration, which had argued that Americans have no expectation of privacy in their public movements.

While the decision was unanimous, the five justices who controlled the decision, led by Justin Antonin Scalia, said the mere act of affixing the device to the car amounted to a search and demanded a probable-cause warrant. The Justice Department has disabled as many as 3,000 GPS trackers in the decision’s aftermath.

Golan v. Holder

In its biggest copyright decision of the term, the justices ruled 6-2 in January that Congress may take books, musical compositions and other works out of the public domain, where they can be freely used and adapted, and grant them copyright status again.

The top court was ruling on a petition by a group of orchestra conductors, educators, performers, publishers and film archivists who urged the justices to reverse an appellate court that sided against the group. The group’s members have relied on artistic works in the public domain for their livelihoods and claimed that re-copyrighting public works would breach the speech rights of those who are now using those works without needing a license. There are millions of decades-old works at issue. Some of the well-known ones include H.G. Wells’ Things to Come; Fritz Lang’s Metropolis and the musical compositions of Igor Fyodorovich Stravinsky.

The court, although ruling against the group, was sympathetic to their argument. Writing for the majority, Justice Ruth Bader Ginsburg said (.pdf) “some restriction on expression is the inherent and intended effect of every grant of copyright.” But the top court, with Justice Elena Kagan recused, said Congress’ move to re-copyright the works to comport with an international treaty was more important.

For a variety of reasons, the works at issue, which are foreign and produced decades ago, became part of the public domain in the United States but were still copyrighted overseas. In 1994, Congress adopted legislation to move the works back into copyright, so U.S. policy would comport with an international copyright treaty known as the Berne Convention.

Federal Communications Commission v. Fox Television Stations

The justices last week set aside (.pdf) indecency rulings against Fox and ABC for airing fleeting expletives and nudity on the public airwaves, but declined to rule on the constitutionality of decency standards for broadcast television and radio.

The case was being closely watched because the high court was in a position to decide whether decency standards for broadcast television and radio breached the First Amendment. Opponents argued the rules are unnecessary because of the ubiquity of cable and satellite programming not covered by the standards. But the justices punted on that hot-button constitutional issue and instead ruled on narrow, procedural grounds in an 8-0 decision with Justice Sonia Sotomayor recused.

The dispute concerned Federal Communications Commission rulings that “fleeting expletives” uttered during the 2002 and 2003 Billboard Music Awards were indecent for public broadcasting. First Cher, then Nicole Richie cursed during the shows aired on Fox. In the other dispute, the FCC said ABC violated decency standards when the network aired a brief nude shot of Charlotte Ross’ buttocks and breast in a 2003 episode of NYPD Blue.

The justices said that FCC broadcast guidelines, which are enforced for radio and television during the day from 6 a.m. to 10 p.m., were too broad and vague to give broadcasters adequate notice of what the indecency standards actually were.

United States v. Alvarez

The justices ruled (.pdf) 6-3 Thursday that a 2006 law making it a federal criminal offense to lie about being decorated for military service was an unconstitutional breach of the First Amendment.

The Stolen Valor Act makes it unlawful for someone to falsely represent, verbally or in writing, that they were “awarded any decoration or medal authorized by Congress for the Armed Forces of the United States.” The measure imposes penalties of up to a year in prison.

The decision concerned defendant Xavier Alvarez who, in 2007, claimed falsely that as a Marine, he had won the Medal of Honor, the highest military decoration. He made that public statement during a local Los Angeles suburban water board meeting, in which he had just won a seat on its board of directors. Alvarez was the first person ever charged and convicted under the act — though dozens more have been charged. Alvarez pleaded guilty, was fined $5,000 and ordered to perform 416 hours of community service.

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Hardware Hacker Sentenced to 3 Years in Prison for Selling Rooted Cable Modems

Ryan Harris and his defense attorney Charles Mcginty leave the federal courthouse in Boston after the second day of Harris' trial. Photo: Quinn Norton/Wired

Cable-modem hacker Ryan Harris has been sentenced to three years in prison for helping users steal internet access in what the authorities say was a $1 million scheme to defraud cable companies of business.

Harris, 28, was sentenced in federal court in Boston on Wednesday.

“I think you committed a very serious crime,” US District Judge Mark L. Wolf told Harris at his sentencing hearing, according to the Boston Globe.

Federal prosecutor Mona Sedky said at the hearing that Harris was motivated by greed and “acted with absolute, knowing malice,” in order “to punish the cable companies.”

Harris, who used the online handle DerEngel, was convicted earlier this year on seven counts of wire fraud in connection to selling hacked cable modems and software that allowed users to bypass restrictions that providers placed on cable modems to filter content and cap usage.

Harris sold “rooted” cable modems that could be used by buyers to obtain free internet service or bypass subscriber limits. Uncapped cable modems remove bandwidth filters imposed by cable ISPs, which can increase the speed of the modem and defeat any throttling or content filtering an ISP may try to do. Harris sold the modems through his company, TCNiSO, for up to $100, and provided other tools and information to help users modify their cable modems. He also published a book titled Hacking the Cable Modem: What Cable Companies Don’t Want You to Know.

One of the products his company sold was a packet sniffer dubbed “Coax Thief” that intercepted internet traffic to snag the media access control (MAC) addresses and configuration files of modems from neighbors.

Prosecutors argued that his business was set up specifically to help users masquerade as paying subscribers in order to obtain internet service for free or increase their access. The government asserted that by providing hacked firmware, tutorials and support to people who used the cable modems to steal internet service or upgrade their existing service in violation of their ISP’s terms of service, Harris participated in a conspiracy and aided their fraud.

But Harris argued that rooted modems were legal, and he should not be responsible for what users did with the modems.

Supreme Court Upholds Right to Lie About Military Honors

Medal of Honor — U.S. Army version. Photo: Wikipedia

It’s perfectly legal to lie about being a military hero, the Supreme Court said Thursday.

The justices ruled (.pdf) 6-3 that a 2006 law making it a federal criminal offense to lie about being decorated for military service was unconstitutional.

The Stolen Valor Act makes it unlawful for someone to falsely represent, verbally or in writing, that they were “awarded any decoration or medal authorized by Congress for the Armed Forces of the United States.” The measure imposes penalties of up to a year in prison.

The case before the justices surrounds a 2010 federal appeals court decision declaring the law an unconstitutional breach (.pdf) of the First Amendment, a decision the justices upheld.

“Fundamental constitutional principles require that laws enacted to honor the brave must be consistent with the precepts of the Constitution for which they fought,” Justice Anthony Kennedy wrote. He was joined by Chief Justice John Roberts, and Justices Ruth Bader Ginsburg and Sonia Sotomayor.

Justice Stephen Breyer, joined by Justice Elena Kagan, concurred with Kennedy’s opinion that the Stolen Valor Act was unconstitutional.

Breyer wrote the Stolen Valor Act was not akin to laws against fraud, defamation, perjury, impersonation and even trademark infringement, all of which are likely to produce “tangible harm to others.”

While this list is not exhaustive, it is sufficient to show that few statutes, if any, simply prohibit without limitation the telling of a lie, even a lie about one particular matter. Instead, in virtually all these instances limitations of context, requirements of proof of injury, and the like, narrow the statute to a subset of lies where specific harm is more likely to occur. The limitations help to make certain that the statute does not allow its threat of liability or criminal punishment to roam at large, discouraging or forbidding the telling of the lie in contexts where harm is unlikely or the need for the prohibition is small. The statute before us lacks any such limiting features.

The San Francisco–based 9th U.S. Circuit Court of Appeals in 2010 ruled that, if it were to uphold the law, “then there would be no constitutional bar to criminalizing lying about one’s height, weight, age, or financial status on Match.com or Facebook, or falsely representing to one’s mother that one does not smoke, drink alcoholic beverages, is a virgin, or has not exceeded the speed limit while driving on the freeway.”

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