Monday, May 23, 2011

Courts 'could target' Twitter UK

Twitter's decision to open a UK office could leave it more vulnerable to prosecution over what its users write.

Lawyers who spoke to the BBC agreed that the move meant the company may no longer be able to claim to be solely US-based and immune to English law.

The micro-blogging site is the subject of a High Court legal challenge in relation to the naming of a footballer who had obtained a privacy injunction.

Twitter has so far declined to comment on the case.

Until recently, Twitter's operations were largely confined to Silicon Valley in California.

Last month, the company began advertising for staff to work at new European headquarters in London.

Among the posts on offer are Account Executive and Communications Manager.

Vulnerable

Many legal experts believe that having a physical presence in the country would potentially expose Twitter to local sanctions.

Kim Walker, a partner at law firm Pinsent Masons said: "Opening an office in the UK would unquestionably make Twitter more vulnerable to lawsuits.

"The law enforcement authorities would be able to argue that it is Twitter UK which has been involved in the contempt of court or which has published the defamatory statement, so is directly responsible for the misdeed."

Mr Walker suggested that the company could claim its UK office existed for specific purposes, such as sales and marketing, and was not directly involved with the business of tweeting.

"Start Quote

Opening an office in the UK would unquestionably make Twitter more vulnerable to lawsuits."

End Quote Kim Walker Pinsent Masons

However, he warned that the argument might not convince the courts.

"If Twitter has any assets in the UK - assets in this instance is a fairly loose term, and covers staff as well as buildings and equipment - then those would be at risk if it chose not to obey rulings imposed upon it by the High Court."

That view was echoed by Simon McAleese, a defamation lawyer based in Dublin, where many US technology companies have their European headquarters.

"It is back to the very basic rule that possession is nine-tenths of the law and if you have possessions and staff then you are going to be very vulnerable to the laws of that jurisdiction," he told BBC News.

The exact nature of Twitter's London office, as well as the number of staff, is not yet known.

Access only

Industry insiders told the BBC that while lawyers may have strong views on the matter, it would take a test case to properly establish the law's authority.

They also pointed out that, although UK injunctions do not apply in the United States, individuals who feel they have been defamed are free to raise a legal action in the American courts.

Even among those lawyers who believe the law is clear-cut, there was doubt that a real-world action would be straightforward.

"Twitter would say their site operates in the States and they are simply facilitating access," said Paul Tweed, a senior partner at Johnson's Solicitors.

Mr Tweed suggested that internet companies, operating in the UK, might seek to limit their potential liability by leasing rather than buying property and limiting staff numbers.

He warned that similar cases would continue to appear if the issue of internet jurisdiction was not addressed at a higher level.

"We have to get some sort of international arbitration set up which the Americans would need to be involved in," said Mr Tweed.

Twitter was unavailable to comment on the story at the time of writing.



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Sony eyes annual loss of $3.2bn

Japanese electronics giant Sony says it expects to report an annual loss of $3.2bn (�2bn), after previously predicting a return to profit.

Sony had earlier indicated it would make a $860m profit in the financial year to the end of March.

It said the loss was largely due to writing off $4.4bn related to a tax credit booked in a previous quarter.

The firm has been hit recently by March's earthquake and tsunami, and a series of computing hacking attacks.

Among its range of products, Sony makes PlayStation video games and Vaio computers.

The earthquake and tsunami on 11 March hit plants in north-east Japan, which affected the firm's supply chain, and in the wider economy led to fall in consumer spending.

Sony is aiming to have resolved the hacking issues that caused the shutdown of its PlayStation Network by the end of May.

Cyber attacks involved the theft of personal data that included names, passwords and addresses from more than 100 million accounts.

It now says said the data breach will result in a $170m drain, at least, on operating profits in terms of insurance and damages costs.



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Laser smashes data rate records

Researchers have set a new record for the rate of data transfer using a single laser: 26 terabits per second.

At those speeds, the entire Library of Congress collections could be sent down an optical fibre in 10 seconds.

The trick is to use what is known as a "fast Fourier transform" to unpick more than 300 separate colours of light in a laser beam, each encoded with its own string of information.

The technique is described in the journal Nature Photonics.

The push for higher data rates in light-based telecommunications technologies has seen a number of significant leaps in recent years.

While the earliest optical fibre technologies encoded a string of data as "wiggles" within a single colour of light sent down a fibre, newer approaches have used a number of tricks to increase data rates.

Among them is what is known as "orthogonal frequency division multiplexing", which uses a number of lasers to encode different strings of data on different colours of light, all sent through the fibre together.

At the receiving end, another set of laser oscillators can be used to pick up these light signals, reversing the process.

Check the pulse

While the total data rate possible using such schemes is limited only by the number of lasers available, there are costs, says Wolfgang Freude, a co-author of the current paper from the Karlsruhe Institute of Technology in Germany.

"Already a 100 terabits per second experiment has been demonstrated," he told BBC News.

"The problem was they didn't have just one laser, they had something like 370 lasers, which is an incredibly expensive thing. If you can imagine 370 lasers, they fill racks and consume several kilowatts of power."

Professor Freude and his colleagues have instead worked out how to create comparable data rates using just one laser with exceedingly short pulses.

Within these pulses are a number of discrete colours of light in what is known as a "frequency comb".

When these pulses are sent into an optical fibre, the different colours can add or subtract, mixing together and creating about 325 different colours in total, each of which can be encoded with its own data stream.

Last year, Professor Freude and his collaborators first demonstrated how to use a smaller number of these colours to transmit over 10 terabits per second.

At the receiving end, traditional methods to separate the different colours will not work. In the current experiment, the team sent their signals down 50km of optical fibre and then implemented what is known as an optical fast Fourier transform to unpick the data streams.

Colours everywhere

The Fourier transform is a well-known mathematical trick that can in essence extract the different colours from an input beam, based solely on the times that the different parts of the beam arrive.

The team does this optically - rather than mathematically, which at these data rates would be impossible - by splitting the incoming beam into different paths that arrive at different times, recombining them on a detector.

In this way, stringing together all the data in the different colours turns into the simpler problem of organising data that essentially arrive at different times.

Professor Freude said that the current design outperforms earlier approaches simply by moving all the time delays further apart, and that it is a technology that could be integrated onto a silicon chip - making it a better candidate for scaling up to commercial use.

He concedes that the idea is a complex one, but is convinced that it will come into its own as the demand for ever-higher data rates drives innovation.

"Think of all the tremendous progress in silicon photonics," he said. "Nobody could have imagined 10 years ago that nowadays it would be so common to integrate relatively complicated optical circuits on to a silicon chip."



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Sunday, May 22, 2011

Paper names Twitter claims player

A Scottish newspaper has named a footballer accused of being linked to a privacy injunction by users of social networking website Twitter.

The Sunday Herald is the first mainstream UK publication to do this.

Its front page has an image of a man whose eyes are covered with a black bar which features the word "censored".

It comes after Twitter users reacted to a footballer's bid to find out who is putting information about him on the website by posting new messages online.

The player, who an injunction says can only be identified as CTB, is involved in proceedings against former Miss Wales and ex-Big Brother star Imogen Thomas and the Sun newspaper.

'Unsustainable'

In recent weeks there has been heightened scrutiny of gagging orders such as injunctions and so-called super-injunctions - court orders that prevent the media from revealing even the fact that an injunction has been granted.

In its editorial explaining the move, the Scottish Herald said it named the sportsman being linked to the injunction on Twitter because it was "unsustainable" for newspapers to be prevented from sharing information which is easily available on the internet.

It said: "We should point out immediately that we are not accusing the footballer concerned of any misdeed. Whether the allegations against him are true or not has no relevance to this debate.

"The issue is one of freedom of information and of a growing argument in favour of more restrictive privacy laws."

The paper also says the injunction "holds no legal force in Scotland, where a separate court order is needed".

As of 1430 BST on Sunday the Herald's website was not carrying the name of the footballer or the picture used on the front page of its printed newspaper.

'Out of control'

There has been widespread speculation on social media websites in recent days naming high profile individuals who have allegedly used the English courts to protect their identities.

On Sunday it emerged that the attorney general is being asked to consider prosecuting a journalist who allegedly broke a privacy order on Twitter.

The unnamed writer allegedly named a footballer, who is accused of having an affair, known in court papers as TSE.

The attorney general's office said it would "consider the matter carefully" but had not yet received the request.

On Friday, the findings of a year-long inquiry by a committee of judges and lawyers into the use of injunctions and so-called super-injunctions were revealed.

The committee's report said super-injunctions were now being granted for "short periods" and only where "secrecy is necessary".

Committee chairman Lord Neuberger, who is the most senior civil judge in England and Wales, said the internet "does add to difficulties of enforcement at the moment".

He said the internet had "by no means the same degree of intrusion into privacy as the story being emblazoned on the front pages of newspapers", which "people trust more".

However, he warned that modern technology was "totally out of control" and society should consider other ways to bring Twitter and other websites under control.



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Saturday, May 21, 2011

Footballer sparks Twitter storm

Hundreds of Twitter users have reacted to a footballer's bid to find out who is putting information about him on the website by posting new messages online.

The player, who an injunction says can only be identified as CTB, is taking action against ex-Big Brother star Imogen Thomas and the Sun newspaper.

He has now obtained a High Court order asking Twitter to reveal details of users who had revealed his identity.

Twitter has not commented but hundreds of users have repeated his name online.

'Fully entitled'

Papers lodged in the High Court against Twitter and "persons unknown" request disclosure of Twitter users said to have published confidential details.

The order against the US-based micro-blogging website requires Twitter to disclose the requested information within seven days - or within the appropriate time required by the law in California, where it has its headquarters.

Lawyers at Schillings, who represent CTB, have issued a statement clarifying the action it has taken.

It said it was not suing Twitter but had made an application "to obtain limited information concerning the unlawful use of Twitter by a small number of individuals who may have breached a court order".

ANALYSIS

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Once again Twitter finds itself centre stage in the debate over privacy.

Two weeks ago, one Twitter follower made a concerted attempt to challenge the law by pulling together, in a short burst of tweets, the names of celebrities thought to have taken out gagging orders.

Jemima Khan poured petrol on the flames by tweeting a denial, giving broadcasters and newspapers a legitimate peg to run the story.

Websites such as Twitter have put a huge strain on the ability of the courts to enforce gagging orders and it has been widely assumed there is no legal redress against them.

The Culture Secretary Jeremy Hunt said this week that digital media had made an ass of the law and it was hard to enforce injunctions against Twitter because it was incorporated in the United States.

Now it seems the law is about to be tested.

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It comes days after a High Court judge said the footballer was "fully entitled" to anonymity.

Justice Eady has reserved judgement on lifting the injunction after a private hearing with the man's lawyers, the Sun and former Miss Wales Imogen Thomas in London.

However, since news of the disclosure order became public on Friday hundreds of people have tweeted information revealing the footballer's identity.

One message being re-tweeted on the micro-blogging site, stated: "xx xx is suing Twitter. I can't Imogen why."

The legal move by the footballer comes two weeks after a Twitter user tried to unmask some celebrities who have obtained privacy injunctions to prevent publication of details of their private lives.

The Twitter user claimed to "out" a number of UK public figures, although the tweets appeared to contain errors.

Media commentator Steve Hewlett said CTB's lawyers were, in all likelihood, "trying to establish the real identity" of that user.

He said the privacy injunction preventing CTB's identity being revealed had been challenged on the grounds that it was already in the public domain because it was already available on the internet.

Mr Hewlett said "arguing that it's in the public domain because it's already on Twitter" would "put you in a very serious position in terms of contempt of court" if it transpired that "you had anything to do with putting it on Twitter".

There are precedents for legal action to find out the names of individuals behind some Twitter accounts.

'Everybody knows anyway'

Publicist Max Clifford told the BBC that while leaked information on Twitter has a limited impact, journalists can try to use it as leverage.

"It appears to be out of control. It's a strong bargaining chip as journalists want to say, 'Everybody knows anyway,'" he said.

Mr Clifford said some kind of balance must be struck to protect privacy and freedom of speech.

The publicist said: "Super-injunctions and injunctions are purely a law for the rich, and purely there to protect the rich.

"What you need is some halfway house between the invading of people's privacy and freedom of the press and information both of which are vital in a democracy."

Twitter has been resisting attempts by the US government to subpoena information on a number of users in relation to the Wikileaks affair.

Media lawyer Nick Lockett said the legal action against Twitter may not have much effect.

"What will have to be established is that Twitter was subject to the jurisdiction of the court," he said. While UK courts claim worldwide jurisdiction this has often proved hard to enforce.

In the case of the US, said Mr Lockett, the situation was complicated by the Communications Decency Act which grants immunity from prosecution for providers of "interactive computer services" under certain circumstances.

Lawyers acting for CTB may struggle to prove that Twitter does not deserve this immunity, said Mr Lockett.



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Friday, May 20, 2011

Footballer acts against Twitter

Legal proceedings are being taken by a professional footballer against Twitter for allegedly publishing information covered by a super-injunction.

The player, identified only by the initials CTB, is also known to be taking action against the Sun newspaper and ex-Big Brother star Imogen Thomas.

Papers lodged in the High Court are against Twitter and "persons unknown".

They request disclosure of Twitter users said to be behind the publication of confidential information.

Legal fight

The order requires Twitter to disclose the requested information within seven days - or within the appropriate time required by Californian law.

Lawyers at Schillings who represent CTB have issued a statement clarifying the action it has taken.

It said it was not suing Twitter but had made an application "to obtain limited information concerning the unlawful use of Twitter by a small number of individuals who may have breached a court order".

Twitter has refused to comment on the matter.

There are precedents for legal action to find out the names of individuals behind some Twitter accounts.

ANALYSIS

<!-- pullout-items--> <!-- pullout-body-->

Once again Twitter finds itself centre stage in the debate over privacy.

Two weeks ago, one Twitter follower made a concerted attempt to challenge the law by pulling together, in a short burst of tweets, the names of celebrities thought to have taken out gagging orders.

Jemima Khan poured petrol on the flames by tweeting a denial, giving broadcasters and newspapers a legitimate peg to run the story.

Websites such as Twitter have put a huge strain on the ability of the courts to enforce gagging orders and it has been widely assumed there is no legal redress against them.

The Culture Secretary Jeremy Hunt said this week that digital media had made an ass of the law and it was hard to enforce injunctions against Twitter because it was incorporated in the United States.

Now it seems the law is about to be tested.

<!-- pullout-links-->

Twitter has been resisting attempts by the US government to subpoena information on a number of users in relation to the Wikileaks debacle.

However, the legal action is taking place within the United States, where the company has its headquarters.

To date, there have been no such actions against users who published anonymously or under assumed names.

Media lawyer Nick Lockett said the legal action against Twitter may not have much effect.

"What will have to be established is that Twitter was subject to the jurisdiction of the court," he said. While UK courts claim worldwide jurisdiction this has often proved hard to enforce.

In the case of the US, said Mr Lockett, the situation was complicated by the Communications Decency Act which grants immunity from prosecution for providers of "interactive computer services" under certain circumstances.

Lawyers acting for CTB may struggle to prove that Twitter does not deserve this immunity, said Mr Lockett.



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Thursday, May 19, 2011

Mobile wallet offered to shoppers

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Watch: Rory Cellan-Jones demonstrates how it can work

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The first service that allows users to pay for purchases via their mobile phone has been launched in the UK.

Among shops signed up to the system are McDonalds, EAT, Pret-a-Manger and some Boots stores.

Users wishing to use the system - dubbed Quick Tap - will need Orange and Barclaycard accounts as well as a handset set up for contactless payments.

The idea of the mobile wallet is gaining popularity around Europe.

Motorway toll

The service is made possible by Near Field Communication (NFC), the short-range wireless technology that underpins many wireless payment systems.

Quick Tap is a collaboration between Orange and Barclaycard. It will require a NFC-enabled Samsung Tocco Lite handset, which also goes on sale on Friday.

Only purchases up to a value of �15 can be made using the service but users can preload their mobile with up to �100.

"Having a wallet on my phone has made it much more convenient to make purchases on the move and I like that it allows me to keep track of what I'm spending as I go," said David Chan, chief executive of Barclaycard Consumer.

"It is going to start a revolution in the way we pay for things on the high street," added Pippa Dunn, vice president of Orange.

Other stores signed up the service include Subway, Little Chef, Wilkinson and the National Trust.

Later this summer, users will also be able to use the service to pay the toll on the M6 motorway.

Olympic vision

Giles Ubaghs, an analyst with Datamonitor, thinks take-up may be sluggish.

"It is an important first step but I think there could be a lack of incentive. Early adopters may like it for the novelty value but the majority just won't see the point," he said.

Mobile wallet services have been available in Japan for some years and operator DoCoMo NTT spent a good deal of cash getting them up and running.

"They even had to buy a convenience store chain to get the readers in there but all the evidence is that people don't use it that often. Only around 10% seem to use the NFC functionality on their phones," said Mr Ubaghs.

Mobile couponing, where people can swipe their handsets in order to get discounts on goods, could kickstart NFC technology, he thinks.

Or it could find popularity in the future as an alternative to Bluetooth.

"It may be used for swapping data from phone to phone or for, say, taking pictures from a phone and putting them on a TV," he said.

Nokia is believed to be bringing out an NFC-enabled version of the popular game Angry Birds later this year.

In 2009 O2 trialled contactless payments, using mobiles in place of the popular Oyster card which allows commuters to pay for their tube journeys.

It has said it will launch its mobile wallet service later this year.

By the time of the Olympics it is expected that transactions, transport and tickets will all be available via contactless technology.

Currently there are 50,000 stores with NFC-enabled readers in the UK.

Some 12.9 million credit and debit cards are already in circulation.



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Sony faces further security woes

A website set up by Sony to allow users to reset their passwords following last month's hack attack is itself subject to a security alert.

A Sony user discovered an exploit on the site that could have been used by hackers to impersonate users.

Password resets have been necessary following the exposure of 77 million Sony PlayStation users' personal details.

Sony admitted the sites were insecure but said no hack had occurred.

In its blog it said: "We temporarily took down the PSN password reset page. Contrary to some reports, there was no hack involved. In the process of resetting of passwords there was a URL exploit that we have subsequently fixed," Sony said in a statement.

It will be further embarrassment for the gaming giant and more inconvenience for its users.

"Anyone who has already reset their password is still able to gain access to the PSN but for those who haven't they wont be able to reset it until the servers go live again, which will be shortly," said a Sony spokesman.

Wesley Yin-Poole, news editor of gaming website Eurogamer explained what had happened.

"There was an exploit that allowed anyone to reset your password using just your e-mail address and date of birth, effectively locking them out of their own PlayStation account," he said.

E-mail addresses and dates of birth are some of the personal details thought to have been stolen by hackers last month.

"This is just another embarrassment hot on the heels of the hack attack. It is nowhere near as serious but will be another headache for Sony," he added.

The majority of PlayStation users are able to reset their password through their consoles rather than by going online.

On 20 April the Japanese electronics giant was forced to shut down its PlayStation network, after what has been described as the biggest hack attack in history.

Yesterday, Sony boss Howard Stringer said the firm did act quickly enough to tell users about the problems.

Sony has offered users a year's free identity protection and free games in order to persuade them back to the network.



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Netflix dominates US net traffic

Movie and TV streaming site Netflix is now the single biggest source of internet traffic in the US, according to research.

The data, gathered by network monitoring firm Sandvine, showed that in March the site accounted for 29.7% of downstream traffic at peak times.

That is more than web browsing and peer-to-peer file sharing.

Experts warned that as the trend grows, internet service providers will face costly upgrades to satisfy demand.

Even at off peak times Netflix accounted for a 22% average traffic share over a 24 hour period.

The site's popularity is part of a wider change in the nature of internet traffic.

The Sandvine report suggests that "real-time entertainment" - streaming of video and audio - is "continuing its journey to network dominance" and is responsible for 49.2% of peak time internet congestion in the US.

That represents a 44% increase since Autumn 2010. Researchers warned that at the current rate it would make up 55%-60% of all traffic by the end of the year.

"Start Quote

It's very difficult to engineer a network that can scale to four times when there's a 'flash flood'. The Olympics are going to cause a problem."

End Quote Simon Davies Co-founder, IDNet
Traffic hog

In Europe, such streaming accounts for 33.2% of internet traffic, a percentage which has been rising for the past three years.

Netflix is not available in the UK, but Sandvine said that the BBC iPlayer - the biggest streamer of commercial content in the UK - has a 6.6% share of peak traffic.

YouTube remains the biggest video streaming site in the world, but the Google-owned site has shorter videos of lower quality - meaning small file sizes and less bandwidth consumed.

Changing patterns of consumption present a big challenge for internet service providers which can struggle under the strain of big live events such as the World Cup or the Royal Wedding.

Simon Davies, co-founder of UK-based IDNet, said ISPs were not geared up to take over from TV broadcasters.

"The problem comes with events like the World Cup and the Olympics, where you get 'flash floods'," he said.

"It's very difficult to engineer a network that can scale to four times when there's a 'flash flood'. The Olympics are going to cause a problem."

In the past, ISPs could handle heavy-loads by slowing down certain services, such as peer-to-peer file sharing, at peak times to manage the load.

"The problem with real-time content like movies or television content - especially or more so if it's live - is that you can't really do that because the user experience deteriorates," explained Sebastien Lahtinen from ThinkBroadband.com.

A spokesman for the Internet Service Providers Association told the BBC that the industry has acknowledged the challenges.

"ISPs are aware of this issue and manage their networks appropriately to cope with high quality content and continue to invest in upgrading their networks to improve capacity.

"ISPs also offer a number of broadband packages to accommodate users that require high bandwidth services.

"The UK's broadband market is extremely competitive and continues to deliver the best service possible for the end user."

However, Mr Lahtinen added that the user base demanding high-bandwidth services is growing rapidly, and that smaller ISPs may struggle to cope with investing in the necessary upgrades to keep a smooth service.

"If you have an ISP that's growing very very fast, who's trying to avoid paying very large costs until they absolutely need it, that's when you're more likely to see those problems," he said.



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Fake security software hits Macs

A fake security program for Apple computers called MACDefender has racked up a significant number of victims.

Hundreds of people who installed the software have turned to Apple's forums for help to remove it.

The program's tactic of peppering screens with pornographic pictures has made many keen to get rid of it.

MACDefender seems to have been successful because of the work its creators did to make it appear high up in search results.

The number of people seeking help was uncovered by ZDNet journalist Ed Bott. In a blog post, he wrote about finding more than 200 separate discussions on Apple's official forums about MACDefender.

The volume of reports about the problem was "exceptional" in his experience, he said.

The fake Mac anti-virus software, which goes by the name of both MACDefender and Mac Security, began circulating in early May and has steadily racked up victims.

Such programs, often called scareware, urge people to install software that then pretends to scan a machine for security problems. It then fabricates a list of threats it has found and asks for cash before it will fix these non-existent problems.

Graham Cluley, senior technology consultant at Sophos, said the scareware's creators had turned to search engines to get the program in front of potential victims by linking it with innocuous phrases such as "Mother's Day".

"You search for something on Google Images, and when you click on an image you are taken to a webpage which serves up the attack - regardless of whether you are running Mac OS X or Windows," he said.

One trick the software uses to make people cough up cash quicker was to fire up the browser of unattended machines and call up one of several different pornographic websites.

Mr Cluley said the vast majority of malware that Sophos and other security firms see is aimed at Windows users. About 100,000 novel malicious programs for Windows are detected every day, he said.

"Although there is much less malware in existence for Mac OS X than there is for Windows, that's no reason to put your head in the sand and think that there are no Mac threats out there," he said.



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