Government

The Sad Tale of a Silicon Valley-Funded, Libertarian 'Startup City' (restofworld.org) 320

RestOfWorld.org tells the story of a libertarian 'startup city' in Honduras that was "supposed to be a privatized, Silicon Valley-funded paradise."

Co-founded by 37-year-old Venezuelan Erick Brimen, "Próspera's founders promised to enrich the local community, even supplying water to a nearby village. But relations with neighboring communities deteriorated. Then, Próspera turned off the taps..."

Próspera's founders believe the future of government lies with privatized startup cities. They belong to a movement with deep roots in U.S. libertarian circles: one that wants to redefine citizenship and governance in tech-consumerist terms. It has gained momentum in recent years, as high-profile Silicon Valley figures, like PayPal co-founder Peter Thiel and venture capitalist Marc Andreessen, put their money behind startup city initiatives.

Some governments have been drawn to the idea, too, hoping it will attract foreign investment and spur economic growth. In 2013, Honduras passed a law allowing people like Brimen to set up semi-autonomous, privately run cities, "zonas de empleo y desarrollo económico" (zones for employment and economic development), or "ZEDEs" — pronounced "zeh-dehs." These cities are to be governed by private investors, who can write their own laws and regulations, design their own court systems, and operate their own police forces. The Honduran government granted Próspera ZEDE status in late 2017. Subject to limited government oversight and few legal restrictions, a set of for-profit firms incorporated abroad by Brimen and his business partners will govern the city — with ambitions to expand across [its Honduran island] Roatán and onto the Honduran mainland.... This year, skeptical Hondurans organized weeks of anti-ZEDE protests across the country. They fear cities like Próspera will leave ordinary people no better off than they were before, while ceding to profit-driven investors the power to decide what's in the public interest...

Applications for [Próspera] residency require a background check, a Honduran residency permit, and an annual fee — $260 per year for Hondurans and $1,300 for foreigners. Prospective residents will also have to sign something called an "agreement of coexistence," which lays out all the rights and responsibilities of Próspera residents and Próspera's obligations to them. Brimen characterized it as, "if you could make the social contract a real contract." The agreement incorporates Próspera's resident bill of rights, which is modeled on the U.S. Bill of Rights but with some decidedly libertarian twists. Government services will be centralized and automated through ePróspera, an online portal modeled on the much-praised e-Estonia system developed by the Baltic nation. From the comfort of their homes, Prósperans will be able to pay taxes, incorporate a company, transact business, and even buy real estate. They'll be able to vote, too, but their franchise is limited. Residents elect only five of the council's nine members. Landowners vote for two of the five, with voting power pegged to acreage. Buy more land, buy more votes. Próspera's founders choose the four remaining council members, and a six-member supermajority is needed to alter policy.... Government services will be provided entirely by a contractor...

Effective tax rates will sit in the low single digits, and, in place of Honduran courts, there's a private arbitration center. But where the business inducements enter unprecedented terrain is health and safety regulation. Próspera won't impose rules so much as curate prix fixe and à la carte menus of rules. Companies will be able to opt into an existing regulatory regime — choosing from dozens of countries and U.S. states — or they can Frankenstein together an entirely novel code, mixing and matching rules from different jurisdictions and even inventing new ones. [The building code for one new construction site is a pastiche of Honduran and U.S. law.] The lone requirements: sign-off by Próspera's governing council and a liability insurance policy, most likely underwritten, [Próspera co-founder] Delgado says, by offshore insurers.

RestOfWorld carefully chronicles how Próspera became unpopular with locals. In the summer of 2019, Próspera connected a nearby village to its own water supply. Then started billing them. (Though the water bills eventually stopped.) After protests over the fact that few construction jobs went to villagers — and how Próspera's armed security guards began asking pedestrians for identification — several local groups issued a critical statement while villagers elected a new council empowered to speak for them.

It all came to a head when the council asked Brimen to cancel a public meeting (due to surging Covid cases), which Brimen insisted was a violation of his free speech. He held the meeting anyways, local police were sent to break it up, and one of Brimen's bodyguards "scuffled" with one of the officers as his other bodyguards whisked him to safety. The incident made the local news and social media. Then the next month "Próspera Foundation" threatened to cut off the village's water within 30 days if they didn't formally request the foundation's intervention in writing.

The village instead appealed to a local congressman/mayoral candidate, who by mid-January had fully restored the village's water supply.
Earth

California To Ban Gas-Powered Leaf Blowers and Mowers (newsobserver.com) 374

"California will soon ban the sale of new gas-powered leaf blowers and lawn mowers," reports the Associated Press, calling it "a move aimed at curbing emissions from a category of small engines on pace to produce more pollution each year than passenger vehicles." California is the only state with the authority to regulate air quality this way, part of an exception carved out in federal law in the 1970s. While other states can't enact their own regulations, they can choose to follow California's lead. Last year, California regulators approved a first-of-its-kind rule to force automakers to sell more electric work trucks and delivery vans. Also last year, Newsom ordered regulators to ban the sale of all new gas-powered cars and trucks in California by 2035 — a date that has since been embraced by some of the world's largest automakers.

California has more than 16.7 million of these small engines in the state, about 3 million more than the number of passenger cars on the road. California was the first government in the world to adopt emission standards for these small engines in 1990. But since then, emissions in cars have vastly improved compared with smaller engines.

Now, state officials say running a gas-powered leaf blower for one hour emits the same amount of pollution as driving a 2017 Toyota Camry from Los Angeles to Denver, a distance of about 1,100 miles (1,770 kilometers). The law Newsom signed also orders regulators to offer rebates for people to change out their equipment, a move aimed at landscaping businesses that use these machines more often. The state budget, approved earlier this year, includes $30 million to pay for this effort.

Government

Should US Tax Collectors Get Reports From Banks About All Accounts Over $600? (msn.com) 190

An anonymous reader tipped us off to a proposed new U.S. policy which would require banks, credit unions and other financial companies to submit reports on most of their accounts to the tax-collectors at America's Internal Revenue Service (IRS). The reports "would break down the numbers to include physical-cash transactions per account, any transactions with a foreign account and transactions between accounts held by the same owner," according to the Arizona Republic newspaper. "The IRS wouldn't receive details on individual transactions but, rather, gross yearly totals."

America's treasury secretary reiterated that what's being proposed "is not reporting of individual transactions or anything of the like. And it would be a simple thing for banks and other payment providers to provide along with the other information they're already providing."

But the Arizona Republic notes the proposal is drawing some concerns — partly because it's been suggested it would cover any account with more than $600: Critics say this would burden financial institutions with new requirements and expose consumers and businesses to privacy incursions and possible data breaches. Supporters contend bank customers would face no new obligations while giving the IRS more information to pursue tax cheats, primarily among the wealthy. They hope to close a tax gap estimated at around $600 billion annually...

The $600 figure isn't set in stone. Some media reports have indicated it could be increased to, say, $10,000 — the level at which banks report transactions in an effort to combat money laundering. A Treasury summary of the plan indicated there would be no further recordkeeping or reporting requirements for individuals or businesses and that taxpayers wouldn't face any burdens at all. The Treasury also noted banks and other financial providers already have access to this information and already report interest income above $10...

About 15% of the money owed the federal government isn't collected, according to Natasha Sarin, a deputy assistant secretary at the Treasury Department... Just knowing the IRS would have access to some bank-account details might convince more taxpayers to pay what they owe.

The deputy assistant secretary argues there's a direct relationship between the information the IRS has and a taxpayer's voluntary compliance rate. "For ordinary wage and salary income, compliance with income tax liabilities is nearly perfect (1 percent noncompliance rate). In stark contrast, for opaque income sources that accrue disproportionately to higher earners...noncompliance can reach 55 percent...."

"Today's tax code contains two sets of rules: one for regular wage and salary workers who report virtually all the income they earn; and another for wealthy taxpayers"
Government

US Flight Traffic Controllers Complain Military Tests Interfered with GPS Signals (ieee.org) 52

IEEE Spectrum reports that air traffic controllers for America's Federal Aviation Administration "were confused and frustrated by an increase in military tests that interfered with GPS signals for civilian aircraft, public records show."

The incidents happened for controllers supervising flights over Arizona, New Mexico and Texas, according to their report (shared by Slashdot reader schwit1): In March and April this year, flight controllers at the Albuquerque Air Route Traffic Control Center filed reports on NASA's Aviation Safety Reporting System (ASRS), a forum where aviation professionals can anonymously share near misses and safety tips. The complaints accused the FAA of denying controllers permission to ask the military to cut short GPS tests adversely affecting commercial and private aircraft. These so-called "stop buzzer" (or "cease buzzer") requests are supposed to be made by pilots only when a safety-of-flight issue is encountered. "Aircraft are greatly affected by the GPS jamming and it's not taken seriously by management," reads one report. "We've been told we can't ask to stop jamming, and to just put everyone on headings."

In a second report, a private jet made a wrong turn into restricted airspace over the White Sands Missile Range in New Mexico after being jammed. On that occasion, the air traffic controller called a stop buzzer. "[The] facility manager on duty later informed me we can't ask them to 'stop buzzer' and to just keep putting aircraft on headings," their ASRS report reads. Putting an aircraft on headings requires giving pilots precise bearings to follow, rather than letting them perform their own navigation using GPS or other technologies. This adds work for controllers, who are already very busy at certain times of day...

The Pentagon uses its more remote military bases, many in the American West, to test how its forces operate under GPS denial. A Spectrum investigation earlier this year discovered that such jamming tests are far more prevalent than had previously been thought, possibly affecting thousands of civilian flights each year.

Government

US Government Investigators Still Believe Havana Syndrome is a Directed-Energy Attack (politico.com) 106

The U.S. government's investigation into Havana Syndrome "is turning up new evidence that the symptoms are the result of directed-energy attacks," reports Politico, citing five U.S. lawmakers and officials who've been briefed on the matter: Behind closed doors, lawmakers are also growing increasingly confident that Russia or another hostile foreign government is behind the suspected attacks, based on regular briefings from administration officials — although there is still no smoking gun linking the incidents to Moscow....

The phenomenon is getting more high-level attention as government officials have continued to report incidents in countries across Europe, Asia, Africa and South America throughout the year. Most prominently, Vice President Kamala Harris' August trip from Singapore to Vietnam was delayed more than three hours when multiple U.S. personnel reported symptoms consistent with Havana Syndrome in Hanoi...

A Biden administration official emphasized that the investigation is ongoing and has not yet reached specific conclusions... While CIA Director William Burns and lawmakers briefed on the matter have publicly referred to the incidents as attacks, some officials remain skeptical of the prevailing theory, and some prominent neurologists have described that explanation as implausible. But members of the Senate Intelligence Committee, who are receiving weekly updates from the intelligence community on the status of the investigation, said the latest information they've received has disproved the skeptics — and in public statements, those lawmakers are increasingly referring to the incidents as directed-energy attacks.

Politico quotes one Republican Senator as saying "There have been new additional attacks, which is very disturbing. It's being taken very seriously now due to the director of the CIA ... [who] has put very highly qualified people on it..."

The Senator also dismissed the theory that the illness was merely psychosomatic. "I don't know how you could argue that when brain imaging is showing a traumatic brain injury, somehow this is psychosomatic."
Bitcoin

White House Weighs Wide-Ranging Push For Crypto Oversight (bloomberg.com) 50

An anonymous reader quotes a report from Bloomberg: The Biden administration is weighing an executive order on cryptocurrencies as part of an effort to set up a government-wide approach to the white-hot asset class, according to people familiar with the matter. The proposed directive would charge federal agencies to study and offer recommendations on relevant areas of crypto -- touching on financial regulation, economic innovation and national security. The initiative will also aim to coordinate agencies' work on digital currencies throughout the executive branch. The plan would push departments that have given scant attention to crypto to focus on it. Officials have also considered appointing a White House crypto czar to act as a point person on the issue, one person said.

The draft directive is part of an effort by the White House to craft a sweeping strategy for digital tokens, which have become a growing concern for regulators as they've become wildly popular with average Americans. No decision has been made on whether to release the executive order, two of the people said. Even if President Joe Biden doesn't move forward on it, the administration will still make public its overall strategy for cryptocurrencies, an administration official said. [...] The draft, which has been circulating among senior officials and regulators, would clarify the responsibilities of various agencies and task them with examining relevant topics and reporting back on their findings. The framework would touch a range of bureaucracies, from the Treasury Department and financial regulators to the Commerce Department, the National Science Foundation and national security agencies. Whether it's ultimately done by executive order or another means, the goal of the White House is to take a unified approach to crypto, rather than the more ad hoc approach to financial stability, national security and illicit finance issues during Biden's first nine months in office. The administration also wants relevant agencies to examine crypto in other policy areas, including consumer protection, competition policy, research and innovation, the official said.

The Almighty Buck

136 Countries Agree To Minimum Corporate Tax Rate (cnn.com) 76

A group of 136 countries have agreed to a global treaty that would tax large multinationals at a minimum rate of 15% and require companies to pay taxes in the countries where they do business. CNN reports: Estonia, Hungary and -- most notably -- Ireland joined the agreement Thursday. It is now supported by all nations in the Organization for Economic Cooperation and Development and the G20. The countries that signed on to the international treaty represent more than 90% of global GDP. Four countries that participated in the talks -- Kenya, Nigeria, Pakistan and Sri Lanka -- have not yet joined the agreement. The Biden administration breathed new life into the global initiative earlier this year and secured the support of the G7 countries in June, paving the way for a preliminary deal in July. Ireland, which had declined to join the initial agreement in July, has a corporate tax rate of 12.5% -- a major factor in persuading companies such as Facebook, Apple and Google to locate their European headquarters in the country. Ireland signed up after the preliminary agreement was revised to remove a stipulation that rates should be set at a minimum of "at least 15%."

The new rate would apply to 1,556 multinationals based in Ireland, employing about 400,000 people. More than 160,000 businesses making less than $867 million in annual revenue and employing about 1.8 million people would still be taxed at 12.5%. Alongside a minimum corporate tax rate, the pact includes provisions to ensure that multinational companies pay tax where they generate sales and profits, and not just where they have a physical presence. That could have major ramifications for tech companies such as Google and Amazon, which have amassed vast profits in countries where they pay relatively little tax. The OECD expects implementation of the agreement to begin in 2023. But even with Ireland and other previous holdouts now on board, the deal still requires countries to pass domestic legislation.

Privacy

iPhone Apps No Better For Privacy Than Android, Oxford Study Finds (tomsguide.com) 22

An anonymous reader quotes a report from Tom's Guide: A new survey has reached a startling conclusion: iPhone apps tend to violate your privacy just as often as Android apps do. "Overall, we find that neither platform is clearly better than the other for privacy across the dimensions we studied," say the academic paper entitled "Are iPhones Really Better for Privacy?" and presented by researchers from the University of Oxford. "While it has been argued that the choice of smartphone architecture might protect user privacy, no clear winner between iOS and Android emerges from our analysis," the paper adds. "Data sharing for tracking purposes was common on both platforms." There's one big caveat regarding the new study: It was conducted before the introduction of iOS 14.5 in April 2021, which made opt-in to tracking and app privacy labels mandatory on iPhones.

The researchers analyzed the code, permissions and network traffic of 12,000 randomly selected free apps from each platform that had been updated or released in 2018 or later. Each app was run on a real device, either a first-generation iPhone SE running iOS 14.2 or a Google Nexus 5 running Android 7 Nougat. They found that nearly all (89%) of the Android apps contained at least one tracking library, which was almost always Google Play Services. The numbers weren't much lower on iOS, where 79% of apps had at least one tracking library, most likely Apple's own SKADNetwork, which tracks which ads a user clicks on. However, 62% of iOS apps also ran Google's AdMob ad tracking library, followed by 54% of iOS apps (and 58% of Android apps) running Google Firebase. Facebook trackers were in 28% of Android apps and 26% of iOS ones. In fact, most apps on either platforms -- 90% of Android apps and more than 60% of iOS -- shared data with tracking companies owned by Google. Almost all tracking companies observed were based in the U.S. About 9.5% of iOS apps and 5% of Android ones used Chinese-based trackers; 7.5% of iOS apps and 2% of Android ones used Indian trackers.
The team commended Apple for making it possible for iPhone users to block the temporary advertising IDs that flag your phone to advertisers, but the team also saw an ulterior motive on Apple's part. "Apple's crackdown on Ad ID use could be interpreted as an attempt to divert revenue from Google and other advertising providers, and motivate the use of alternative monetization models -- which are more lucrative for Apple," the Oxford research paper states. "Apple has arguably placed a larger emphasis on privacy, seeking to gain a competitive advantage by appealing to privacy-concerned consumers."
Facebook

Facebook Bans Developer Behind Unfollow Everything Tool (theverge.com) 84

A developer who made a tool that let people automatically unfollow friends and groups on Facebook says he's been banned permanently from the social networking site. From a report: Louis Barclay was the creator of "Unfollow Everything," a browser extension that allowed Facebook users to essentially delete their News Feed by unfollowing all their connections at once. Facebook allows users to individually unfollow friends, groups, and pages, which removes their content from the News Feed, the algorithmically-controlled heart of Facebook. Barclay's tool automated this process, instantly wiping users' News Feed.

[...] In response, Facebook sent Barclay a cease-and-desist letter earlier this year, saying he'd violated the site's terms of service by creating software that automated user interactions. Barclay says the company then "permanently disabled my Facebook and Instagram accounts" and "demanded that I agree to never again create tools that interact with Facebook or its other services."

Microsoft

Microsoft Has Committed To Right To Repair (vice.com) 53

Microsoft just promised it's going to make it easier for its customers to repair the products it sells in the near future. As first reported by Grist, the company will study the environmental impact of right-to-repair and act on its findings by the end of the next year. From a report: The initiative is a reaction to a shareholder resolution filed in June 2021 that demanded the company seriously consider the environmental impact of making its products easier to repair, which itself was fueled by the broader right to repair movement, which has been gaining steam and momentum for years. The shareholders partnered with As You Sow, a non-profit specializing in shareholder advocacy, to help them put pressure on Microsoft. It seems to have worked.
Crime

Car Thieves Arrested After Using $27,000 Game Boy Device (bbc.com) 104

An anonymous reader quotes a report from the BBC: A gang of car thieves used a handheld device disguised as a Nintendo Game Boy to steal vehicles worth $245,000. Dylan Armer, Christopher Bowes and Thomas Poulson stole five Mitsubishi Outlanders by using the gadget to bypass the cars' security systems. West Yorkshire Police said the device, worth $27,000 could unlock and start a car "in a matter of seconds." The trio, all from Yorkshire, were jailed at Leeds Crown Court after pleading guilty to conspiracy to steal. CCTV footage of the theft showed them unplug the car from its charging point before using the device to unlock and start it. When officers stopped the three men they found the Game Boy-style gadget hidden in a secret compartment of their car. Police said footage recovered from Poulson's phone showed him demonstrating "how quickly and easily the gadget gave them full access to the vehicles, accompanied by a commentary in mocking tones." The force added that the "significant investment required to buy one of the sophisticated devices suggested the thefts were planned and orchestrated crimes."
Government

US Department of Justice Creates Cryptocurrency Enforcement Unit (theverge.com) 65

The US Department of Justice has created a team to investigate cryptocurrency-related crime. The Verge reports: The National Cryptocurrency Enforcement Team (NCET) will handle investigations of "crimes committed by virtual currency exchanges, mixing and tumbling services, and money laundering infrastructure actors," the agency said in a news release. Mixing and tumbling services can obscure the source of a cryptocurrency transaction, by mixing it with other funds. Cryptocurrency is "used in a wide variety of criminal activity," including ransomware demand payments, money laundering, and for the illegal sales of drugs, weapons, and malware, the agency noted. Several high-profile ransomware cases have involved demands in cryptocurrency, including the Colonial Pipeline attack in May, where the company reportedly paid a $5 million ransom to DarkSide.

The DOJ says the NCET, which will provide expertise in blockchain and cryptocurrency transactions for the Justice Department and other US government agencies, will draw team members from the DOJ's money laundering, intellectual property, and computer crimes divisions, as well as from US attorneys' offices across the country. The team will be under the supervision of Assistant Attorney General Kenneth Polite Jr. to start, but the Justice Department is seeking to hire someone who has "experience with complex criminal investigations and prosecutions, as well as the technology underpinning cryptocurrencies and the blockchain," on a more permanent basis.

Security

Hackers of SolarWinds Stole Data On US Sanctions Policy, Intelligence Probes (reuters.com) 12

An anonymous reader writes: The suspected Russian hackers who used SolarWinds and Microsoft software to burrow into U.S. federal agencies emerged with information about counter-intelligence investigations, policy on sanctioning Russian individuals and the country's response to COVID-19, people involved in the investigation told Reuters. The hacks were widely publicized after their discovery late last year, and American officials have blamed Russia's SVR foreign intelligence service, which denies the activity. But little has been disclosed about the spies' aims and successes. [...] It has been previously reported that the hackers breached unclassified Justice Department networks and read emails at the departments of treasury, commerce and homeland security. Nine federal agencies were breached. The hackers also stole digital certificates used to convince computers that software is authorized to run on them and source code from Microsoft(MSFT.O) and other tech companies. One of the people involved said that the exposure of counter-intelligence matters being pursued against Russia was the worst of the losses.

In an annual threat-review paper released on Thursday, Microsoft said the Russian spies were ultimately looking for government material on sanctions and other Russia-related policies, along with U.S. methods for catching Russian hackers. Cristin Goodwin, general manager of Microsoft's Digital Security Unit, said the company drew its conclusions from the types of customers and accounts it saw being targeted. In such cases, she told Reuters, "You can infer the operational aims from that." Others who worked on the government's investigation went further, saying they could see the terms that the Russians used in their searches of U.S. digital files, including "sanctions."

Chris Krebs, the former head of U.S. cyber-defense agency CISA and now an adviser to SolarWinds and other companies, said the combined descriptions of the attackers' goals were logical. "If I'm a threat actor in an environment, I've got a clear set of objectives. First, I want to get valuable intelligence on government decision-making. Sanctions policy makes a ton of sense," Krebs said. The second thing is to learn how the target responds to attacks, or "counter-incident response," he said: "I want to know what they know about me so I can improve my tradecraft and avoid detection."

Crime

Zodiac Expert Calls 'Bullshit' On Possible ID of Zodiac Killer (rollingstone.com) 30

"Tom Voigt, a Zodiac Killer expert and author who runs ZodiacKiller.com, pulls no punches when commenting on the story picked up by FoxNews that is now being posted at various news outlets including Slashdot," writes Slashdot reader ISayWeOnlyToBePolite. Rolling Stone spoke to Voigt on Wednesday about the bombshell report and why, in his opinion, it's "bullshit." From the article: By now obviously you've seen the news about the Zodiac Killer's identification. What's your take on it? Yeah, I've got about a million people on my website right now. It's all bullshit, by the way, just to get that out of the way. This is hot garbage. I don't know why it got any coverage at all. It was basically a press release.

Are you familiar with the Case Breakers? First of all, the funny thing is, I've never heard of any of these people that are these so-called experts. I have been doing this for 25 years and I've never heard of any of them. So that there are some red flags right off the bat. And then the funny thing is, they're matching up lines on foreheads. No witness ever described lines on Zodiac's forehead. Those lines were simply added by the sketch artist to fill in the sketch. The amended sketch, which is supposed to look more like Zodiac, according to witnesses, doesn't really even have any lines. So they got rid of them. So because the witnesses were like, "We're not really happy with that sketch that we gave you a few days ago," they got changed. The lines went away. No witness ever described that.

What about their claim that Poste's name unlocks one of the Zodiac's ciphers? A lot of what they're typing and talking about is nonsense. These people, what I've seen, they don't really have any kind of a command of the basics of the Zodiac case. From what I've read, they've gotten their Zodiac information from the comments section at Facebook. They'd skip the main article and they went right to the comments and they think they know everything about this. Maybe they've saw the Fincher movie, but probably not. Or, they turned it off after the two-hour mark or so.

If you had to put your money on one suspect, who would it be? Richard Gaikowski is my best bet. If I was if I was an employer looking to hire the Zodiac, he'd probably have the most impressive resume in my eyes. But the reality is that Allen is the suspect you just can't quit. I just can't quit that "Big Al," especially now I'm going over all these old emails and tips and leads going back 25 years. And some of the stuff that was that was said to me about about how it is just mind boggling. Yeah. If he wasn't, if he wasn't the Zodiac, he might be responsible for some other murders.

The Internet

Cloudflare Doesn't Have To Cut Off Copyright-Infringing Websites, Judge Rules (arstechnica.com) 21

An anonymous reader writes: Cloudflare is not liable for the copyright infringement of websites that use its content-delivery and security services, a federal judge ruled yesterday. Cloudflare was sued in November 2018 by Mon Cheri Bridals and Maggie Sottero Designs, two wedding dress manufacturers and sellers that alleged Cloudflare was guilty of contributory copyright infringement because it didn't terminate services for websites that infringed on the dressmakers' copyrighted designs. The companies sought a jury trial, but Judge Vince Chhabria yesterday granted Cloudflare's motion for summary judgment in a ruling (PDF) in US District Court for the Northern District of California. Chhabria noted that the dressmakers have been harmed "by the proliferation of counterfeit retailers that sell knock-off dresses using the plaintiffs' copyrighted images," and that they have "gone after the infringers in a range of actions, but to no avail -- every time a website is successfully shut down, a new one takes its place." [...] While the ruling resolves the lawsuit's central question in Cloudflare's favor, the judge scheduled a case management conference for October 27 "to discuss what's left of the case."

A defendant is liable for contributory copyright infringement if it has knowledge of another's infringement and materially contributes to or induces that infringement, the judge noted in his ruling against the dressmakers. "Simply providing services to a copyright infringer does not qualify as a 'material contribution,'" he wrote. "Rather, liability in the Internet context follows where a party 'facilitate[s] access' to infringing websites in such a way that 'significantly magnif[ies]' the underlying infringement." Although a defendant can be found to materially contribute to copyright infringement if it acts as "an essential step in the infringement process," this should not be interpreted too broadly, the judge wrote. "As the Ninth Circuit has recognized, the language used in these tests is 'quite broad' and could encompass much innocuous activity if considered out of context. An analysis of contributory copyright infringement must therefore be cognizant of the facts in the key cases in which liability has been found," Chhabria wrote.

Mon Cheri Bridals and Maggie Sottero Designs alleged that Cloudflare contributes to copyright infringement by providing performance-improvement services, including its content-distribution network and caching capabilities that improve the quality of webpages and make them load faster, Chhabria wrote. But the "plaintiffs have not presented evidence from which a jury could conclude that Cloudflare's performance-improvement services materially contribute to copyright infringement. The plaintiffs' only evidence of the effects of these services is promotional material from Cloudflare's website touting the benefits of its services. These general statements do not speak to the effects of Cloudflare on the direct infringement at issue here." The plaintiffs did not prove that the faster website-load times enabled by Cloudflare "would be likely to lead to significantly more infringement." Additionally, Cloudflare removing infringing material from its cache would not prevent users from seeing the copyrighted images. "[R]emoving material from a cache without removing it from the hosting server would not prevent the direct infringement from occurring," Chhabria wrote.

Security

US To Tell Critical Rail, Air Companies To Report Hacks, Name Cyber Chiefs (reuters.com) 23

The Transportation Security Administration will introduce new regulations that compel the most important U.S. railroad and airport operators to improve their cybersecurity procedures, Homeland Security Secretary Alejandro Mayorkas said on Wednesday. From a report: The upcoming changes will make it mandatory for "higher-risk" rail transit companies and "critical" U.S. airport and aircraft operators to do three things: name a chief cyber official, disclose hacks to the government and draft recovery plans for if an attack were to occur. The planned regulations come after cybercriminals attacked a major U.S. pipeline operator here, causing localized gas shortages along the U.S. East Coast in May. The incident led to new cybersecurity rules for pipeline owners in July.

"Whether by air, land, or sea, our transportation systems are of utmost strategic importance to our national and economic security," Mayorkas said. "The last year and a half has powerfully demonstrated what's at stake." A key concern motivating the new policies comes from a growth in ransomware attacks against critical infrastructure companies.

The Courts

GitHub Removes GTA Fan Projects re3 and reVC Following New Take-Two DMCA Notice (torrentfreak.com) 51

After Take-Two Interactive sent a legal letter to Github referencing a copyright infringement lawsuit against the people behind the popular re3 and reVC Grand Theft Auto fan projects, Github has now removed the repositories for a second time. Take-Two has also demanded the removal of many project forks and wants Github to take action under its repeat infringer policy. TorrentFreak reports: Just before the weekend, a new entry in Github's DMCA repository revealed the existence of a letter (PDF) sent to Github from Take-Two's legal team. Dated September 9, 2021 (a week after the copyright lawsuit was filed) it informs Github that legal action is underway and it has come to the company's attention that the contentious content (and numerous 'fork' repositories) continue to be made available on Github's website. "We request that Github take expeditious action to remove or disable access to the materials [in the attached exhibit], together with any other instances of the same materials available within the same primary 'GTAmodding/re3' fork network (e.g. in 'private' or newly-created repositories)," it reads.

In common with the first DMCA notice, Github has responded by taking the project's repositories down. Given that the defendants in the case already stand accused of previously sending 'bad faith' counter-notices, it seems unlikely that they will follow up with another set of similar responses that will soon be under the scrutiny of the court. Take-Two also follows up with a line that is becoming more and more popular in copyright infringement matters, one that references so-called 'repeat infringers.' "Furthermore, it is requested that Github take appropriate measures to prevent further infringement by the parties responsible, including pursuant to any 'repeat infringer' policies maintained by Github."

This means that if any of the contentious content is reposted to Github, Take-Two would like the code repository to implement its own 'repeat infringer' process. It states that "in appropriate circumstances and in its sole discretion, [Github will] disable and terminate the accounts of users who may infringe upon the copyrights or other intellectual property rights of GitHub or others." The letter also provides a laundry list of repository forks that, on the basis they are also infringing, should be removed. While Github appears to have complied in many cases, there are two notable exceptions. After being targeted by earlier DMCA takedowns, Github users 'td512' and 'erorcun' filed DMCA counter-notices to have their repositories restored. The former previously informed TorrentFreak that he believed Take-Two's infringement claims to be incorrect. At the time of writing, both repos are still online.

Privacy

Apple Says Apps Must Offer a Way To Delete Your Account Starting In Early 2022 (engadget.com) 23

Apple says that as of January 31st, 2022, all applications will need to offer people a method of deleting their accounts. This applies to all iOS, iPadOS and macOS apps. Engadget reports: The company announced this requirement alongside other App Store guideline changes at the Apple Worldwide Developers Conference in June as part of a push to give users more control over their data. As The Verge notes, Apple is only requiring developers to let people "initiate deletion of their account from within the app," so apps might send you to a website or even a chat with an agent before you can actually close your account.
AI

European Parliament Calls For a Ban On Facial Recognition (politico.eu) 28

The European Parliament today called for a ban on police use of facial recognition technology in public places, and on predictive policing, a controversial practice that involves using AI tools in hopes of profiling potential criminals before a crime is even committed. Politico reports: In a resolution adopted overwhelmingly in favor, MEPs also asked for a ban on private facial recognition databases, like the ones used by the controversial company Clearview AI. The Parliament also supports the European Commission's attempt in its AI bill to ban social scoring systems, such as the ones launched by China that rate citizens' trustworthiness based on their behavior.

The non-biding resolution sends a strong signal on how the Parliament is likely to vote in upcoming negotiations of the AI Act. The European Commission's proposal of the bill restricts the use of remote biometric identification -- including facial recognition technology -- in public places unless it is to fight "serious" crime, such as kidnappings and terrorism. The AI Act's lead negotiator, Brando Benifei and almost all of his co-negotiators from other political groups in the Parliament have called for a blanket ban on facial recognition. This is in stark contrast to policies implemented in some EU member countries, who are keen to use these technologies to bolster their security apparatuses.

Privacy

Twitch Source Code and Business Data Leaked (therecord.media) 66

An unknown individual has leaked the source code and business data of video streaming platform Twitch via a torrent file posted on the 4chan discussion board earlier today. From a report: The leaker said they shared the data as a response to the recent "hate raids" --coordinated bot attacks posting hateful and abusive content in Twitch chats -- that have plagued the platform's top streamers over the summer. "Their community is [...] a disgusting toxic cesspool, so to foster more disruption and competition in the online video streaming space, we have completely pwned them, and in part one, are releasing the source code from almost 6,000 internal Git repositories," the leaker said earlier today. The leaker claims that the leak contains the "entirety of twitch.tv, with commit history going back to its early beginnings, mobile, desktop and video game console Twitch clients, various proprietary SDKs and internal AWS services used by Twitch, every other property that Twitch owns including IGDB and CurseForge, an unreleased Steam competitor from Amazon Game Studios, and Twitch SOC internal red teaming tools."

Twitch has confirmed the breach. In a tweet it said, "We can confirm a breach has taken place. Our teams are working with urgency to understand the extent of this. We will update the community as soon as additional information is available."

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