Sunday, November 11, 2012

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Saturday, November 10, 2012

China could be behind Twitter password reset


Twitter sent notices of an attempted hacking to China-based foreign journalists and analysts just hours before apologizing for resetting the passwords of more users than necessary in a recent break-in of accounts.
The Voice of America reported Thursday that the emailed warnings did not say who was behind the hacking attempts. Chinese Internet users have had difficulty in accessing foreign websites and using virtual private networks (VPN) to avoid government censorship, the U.S.-funded VOA said.
Twitter routinely sends warnings when it believes a person's account has been hacked. The microblogging site then forces the person to reset his password. On Thursday, the company apologized for resetting more passwords than necessary to protect users from a recent hacking.
"In this case, we unintentionally reset passwords of a larger number of accounts, beyond those that we believed to have been compromised," Twitter said in a tweet. "We apologize for any inconvenience or confusion this may have caused."
Twitter, which did not respond to a request for comment, has provided no details on the hacking. However, VOA reported that journalists and analysts have been expecting a censorship crackdown as China's Communist Party begins meetings to set in motion a leadership change.
David Bandurski, head of the China Media Project in Hong Kong, told VOA he received a warning that his Twitter account had been hacked just as he was tweeting about Chinese President Hu Jintao's speech at the 18th Party Congress.
"I had someone else, a programmer, look at it and say that's a legit message from Twitter," Bandurski told VOA. "Beyond that I don't know what that means or who could be behind it. I have my guesses that I won't hazard, but I'm not sure what to say other than that it's an annoyance."
Contacted by email, Bandurski declined to provide more details. "I've been very careful to explain to reporters that I'm not speculating about what happened, that they need to find out from Twitter," he said.
Prolexic, a security vendor specializing in distributed denial of service (DDoS) attacks, said it had not seen any significant changes in activity out of China. "It has maintained its position as one of the top three countries originating DDoS traffic over the last 2 quarters," a spokesman said.
Hackers with stolen user names and passwords will hijack Twitter accounts to distribute links thatsend users to malicious websites. Cybercriminals are also opening accounts to tweet commands to malware controlling compromised PCs, McAfee reported recently in its second quarter Threats Report.
Overall, four in 10 social network users have been victims of cybercrime on the platforms, according Symantec's 2012 Norton Cybercrime Report. In addition, one in six reported that someone had hacked into their profile and pretended to be them.
A U.S. commission has fingered China as the biggest cyberthreat, due to relentless attacks against U.S. military systems and defense contractors. The U.S.-China Economic and Security Review Commission is scheduled to release its findings to Congress next month.
Read more about access control in CSOonline's Access Control section.

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Shareholders kept in the dark on data breaches


It happened more than three and a half years ago. So it presumably would be old news that Chinese hackers broke into soft drink behemoth Coca-Cola's computer systems and stole confidential files relating to its effort to acquire the China Huiyuan Juice Group for $2.4 billion.
But it is just coming to light now, through a report earlier this week in Bloomberg Businessweek. The story said the FBI contacted Coke executives on March 15, 2009, and told them hackers had been inside their system for a month. The attempted deal for Huiyuan collapsed three days later.
The U.S. Securities and Exchange Commission (SEC) requires companies to report to its shareholders any "material losses" from attacks, plus any information, "a reasonable investor would consider important to an investment decision."
Meredith Cross, director of the SEC's division of corporation finance, told Businessweek, "We think reasonable investors could care, depending on the specific facts and circumstances."
But Coca-Cola never disclosed the breach to its investors. Most companies don't. Bloomberg reported on breaches of the British energy company BG Group, the Chesapeake Energy and others that were never disclosed to investors.
When questioned about it, most company officials or representatives either declined to comment, or declared that they were in full compliance with all applicable laws.
The response of Coca-Cola spokesman Kent Landers was typical. "We make disclosures in our public filings when we believe they are appropriate and in accordance with the requirements of the federal securities laws," he told Businessweek.
One reason for the lack of transparency may be that Coca-Cola didn't discover the breach itself. It took notification from the FBI. That is common. Security experts regularly point out that many companies don't know they have been hacked until a third party tells them.
Breach victims also frequently don't know what was taken, who took it and how it is being used. So, since it is difficult to put a value on the loss, they argue that it is not a material event, and therefore not subject to that SEC regulation.
David C. Vladeck, director of the Federal Trade Commission's (FTC) Bureau of Consumer Protection, made that point at a recent press conference, saying that the question of when major data breaches should be reported is "difficult. We don't necessarily have the right answers."
Stewart Baker, a partner at Steptoe & Johnson LLP and former assistant secretary for policy at the Department of Homeland Security, told Businessweek, "All of the ambiguities stack the deck against disclosure."

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NYC corporate partnership seeks fresh financial tech


A partnership of New York City businesses has put out a call for innovative financial technologies.
Sponsored by The Partnership for New York City Fund and Accenture, the FinTech Innovation Lab seeks novel technologies that would benefit the financial services sector. The six winners of the annual contest will have the opportunity to present their technologies to top executives at some of the city's most powerful financial firms.
The goal is to spark "a new financial technology sector in New York," as well as to "find interesting technologies for the financial institutions," said Maria Gotsch, president and CEO of The Partnership for New York City Fund, an organization funded by New York businesses to bring more jobs to the city.
Gotsch said that New York financial firms often have to seek expertise in Silicon Valley or other locales outside New York to find competitive new technologies. So the partnership wants to bring more financial technology firms to the city. "The program is explicitly set up with a New York-centric focus for that reason. It would put the banks closer to innovation. We're a center of financial services so we should be the center of financial technology," Gotsch said.
The 2013 contest, the third annual iteration, will focus on finding new capabilities in data and analytics, mobile and wireless, payments, risk management, security, social media, and collaboration. Companies with innovative financial technologies in other realms are encouraged to apply as well.
Winning companies will participate in a 12-week program that provides access to venture capitalists and top-level financial industry executives. "It really is a mentoring relationship. The banks bring in the right people for the product and give [the winners] feedback," Gotsch said.
"It is difficult to find the right person to talk to, and get their attention. This program tries to solve that problem," Gotsch said.
Businesses applying do not need to be headquartered in New York City. Should a business win, however, its senior staff should be prepared to spend 12 weeks in New York. The partnership is hoping that the winners will eventually set up offices in the Big Apple, where they can continue to enjoy close proximity to their customer base.
There is no size restriction on the companies that can apply. Companies can either be in the early stage with a prototype or already have a product on the market. Even established software companies can enter the contest if they wish to expand the use of an established technology into the financial sector.
Financial firms participating in the lab include American Express, Bank of America, Barclays, Capital One, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Chase and Morgan Stanley. Participating venture capital firms include Bain Capital Ventures, Contour Venture Partners, Rho Ventures and Warburg Pincus.
Applications must be submitted by Dec. 19. Winners will be announced in April.
Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com

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Manufacturer sues IBM over SAP project 'disaster'


IBM has been slapped with a multimillion dollar lawsuit by chemical products manufacturer Avantor Performance Materials, which alleges that IBM lied about the suitability of a SAP-based software package it sells in order to win Avantor's business.
In 2010, Avantor decided to upgrade its ERP (enterprise resource planning) platform to SAP software, according to the lawsuit, which was filed Thursday in U.S. District Court for the District of New Jersey.
"Seizing upon Avantors decision and fully aware that, given the competitive pressures of Avantors industry, and the specialized demands of its customers, Avantor could not tolerate any disruptions in customer service IBM represented that IBMs 'Express Life Sciences Solution' ... was uniquely suited to Avantors business," the lawsuit states. "The Express Solution is a proprietary IBM pre-packaged software solution that runs on an SAP platform."
But Avantor discovered a different truth after signing on with IBM, finding that Express Life was "woefully unsuited" to its business and the implementation brought its operations "to a near standstill," according to the suit.
IBM also violated its contract with Avantor by staffing the project with "incompetent and reckless consultants" who made "numerous design, configuration and programming errors," it states.
In addition, IBM "intentionally or recklessly failed" to tell Avantor about risks to the project and charged toward a go-live date, the suit alleges.
"To conceal the Systems defects and functional gaps, IBM ignored the results of its own pre-go-live tests, conducted inadequate and truncated testing and instead recommended that Avantor proceed with the go-live as scheduled even though Avantor had repeatedly emphasized to IBM that meeting a projected go-live date was far less important than having a fully functional System that would not disrupt Avantors ability to service its customers," the suit states.
The resulting go-live, which occurred in May, "was a disaster," with the system failing to process orders properly, losing some orders altogether, failing to generate need paperwork for U.S. Customs officials and directing "that dangerous chemicals be stored in inappropriate locations," the suit states.
Avantor has suffered tens of millions of dollars in monetary damages, as well as taken a hit to its reputation among partners and customers, the suit states.
For example, before the go-live, IBM and Avantor had met with one of Avantor's biggest customers, which voiced worry that its EDI (electronic data interchange) with Avantor for product ordering wouldn't work after the changeover, and IBM assured the customer that it would, according to the suit. "In fact, the EDI interface immediately failed upon go-live."
"IBM, meanwhile, has already pocketed over $13 million in fees from Avantor for a systems implementation project it mismanaged and was unable to perform properly," it adds. "Incredibly, IBM is now seeking to profit from its misconduct by demanding millions of dollars in additional fees to redesign and rebuild the defective System it implemented."
IBM spokespeople didn't respond to calls and emails for comment on Friday.
Avantor's suit does state that IBM made efforts to right the project's course, albeit ultimately ineffective ones, following a June meeting with Avantor's then-CEO, Rajiv Gupta.
IBM "began to acknowledge the severity of the situation" and replaced many of the original consultants, according to the suit. These workers did extensive redesign and programming.
In July, "IBM told Avantor to cancel every pending order and reset the entire System in light of pervasive warehouse problems," it states. "IBM said this was necessary to discover the root cause of the problem. Ultimately, IBM acknowledged that it had to engage in extensive remedial efforts to redesign and rebuild the System that Avantor hired it to deliver."
"Numerous" IBM workers have told Avantor personnel that IBM failed to manage the project correctly and use SAP "best practices," according to the complaint.
IBM workers even called the project the worst SAP implementation they'd ever seen, it adds.
Avantor is seeking assorted damages in an amount to be determined at trial.
In many respects, the lawsuit reflects other high-profile litigation over SAP projects.
But Avantor broke from tradition by calling attention to its lawsuit via a press release, as companies suing systems integrators and ERP vendors rarely actively seek publicity.
One famous exception came several years ago when Waste Management sued SAP over an allegedly failed project. Waste Management won a sizable settlement from SAP after a public bout of ugly back-and-forth allegations.
It wasn't immediately clear Friday whether Avantor also plans to initiate legal action against SAP, or even has grounds to do so.
An SAP spokesman said Friday he hadn't been aware of Avantor's suit against IBM and declined comment.
Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

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Symantec broadens encryption options for Apple mobile devices, Dropbox file-sharing


Symantec this week announced two new data encryption options, one that is file-based encryption for use with Dropbox, and the second that works as an extension to the Apple iOS mail client to encrypt and decrypt documents.
Symantec Mobile Encryption for iOS works with Apple tablets and smartphones, and will be available in January, according to Tim Matthews, senior director product marketing in the Symantec division, which continues to develop encryption products based on technology acquired in the PGP Corp. acquisition two years ago. The second product to be out is Symantec File Encryption for Dropbox, which lets companies ensure that any file saved and stored to the Dropbox cloud-based file storage service will be encrypted.
"The company sets the policy," said Matthews, noting there's a lot of concern in the corporate world about how the security of files left in cloud-based file sharing services such as Dropbox. The encryption for Dropbox files can also be used without setting a group policy as well. Symantec may also develop something similar for other cloud-based services, but the popularity of Dropbox prompted work on file encryption for this first. It's expected to cost $225 per user.
Ellen Messmer is senior editor at Network World, an IDG publication and website, where she covers news and technology trends related to information security. Twitter: @MessmerE. Email: emessmer@nww.com.
Read more about wide area network in Network World's Wide Area Network section.

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The Week in iOS Apps: A better Facebook


This week's roundup of iOS apps offers new ways to shop, track your life, and make new websites. Already this week we brought you news of the Angry Birds Star Wars game, word of updates to theClear and FreshBooks apps, as well as the announcement that Microsoft Office may finally be available on iOS in 2013.
Here are other new and updated apps that caught our eye this week.
Apple Store: Siri: Buy me a new iPad mini! OK, so we're not sure that gadget shopping will be quite that easy, but the latest update to the Apple Store app for iPhone does let you use Siri to shop around and compare prices on Apple products. (Of course, you'll have to have a Siri-enabled device--an iPhone 4S or 5, or a third- or fourth-generation iPad--to take advantage of the new features.) The updated app also lets you buy gift cards and have them emailed to friends from within the app--and those cards can even be loaded into the recipients Passbook. Apple's technology has finally found its best purpose: To make it really easy for you to buy more of Apple's technology.
EvernoteThis free app for iPhone and iPad--which lets you save pictures, notes, and clippings from just about everything that you read or experience--has long been one of the best-selling offerings in the App Store. Now it's received a massive overhaul to its user interface, with a new homepage that allows easier access to notes, notebooks, tags, and premium features. (On the iPad, there's also homepage access to your most recent notes.) And the note list has been reconfigured to a "card style" to showcase the content therein. What's more, geotagged notes can be displayed on a map to show when and where you collected them.
Facebook/TumblrFacebook's free app for iPhone and iPad hasn't always been popular--and the company's inability to "get" the mobile arena has arguably hindered its success on the stock market--but this week's update has some notable improvements, making it easier to find friends online and chat them up immediately (see the photo at top), along with the improved ability to share multiple photos quickly. Elsewhere in social media, the Tumblr iPhone app has also been updated, bringing a new dashboard and gesture-based navigation. Telling people way too much about yourself is easier than ever.

Petfinder MobileHow much is that doggie on my iPhone? (Arf, arf!) I browsed to its waggly tail! How much is that doggie on my iPhone? (Arf, arf!) I can share its details via Facebook, Twitter, or email!
Summly: This free news aggregator app for iPhone really boils down the news, offering 400-character summaries of the top stories in the subject areas you choose. (You can click on the story and go more in-depth with the longer articles from the source.) Version 2.0, launched this week, addressed user complaints with a thorough overhaul of the navigation, cleaning up story lists.
Webr/Zapd: You probably don't need convincing that the iPhone is a content-creation machine, but here are two more reminders. Version 2.0 of Webr, a website-making app, lets users add video and audio links to their sites; it also offers new themes and the ability to create and manage up to three websites. Version 2.0 of Zapd, a similar offering, now lets you collaborate with other users in website creation, and offers new website themes, with additional themes being added every month.
Other apps of noteReeder for iPhone now lets users post to App.Net and Quote.FM ... the best-selling novel War Horse is now available as a standalone multimedia iPad app, as is Goodnight Moon, the beloved children's classic ...  and Scanner Pro now lets users batch-upload multiple images to their account.

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Manufacturer sues IBM over SAP project 'disaster'


IBM has been slapped with a multimillion-dollar lawsuit by chemical products manufacturer Avantor Performance Materials, which alleges that IBM lied about the suitability of an SAP-based software package it sells in order to win Avantor's business.
In 2010, Avantor decided to upgrade its ERP (enterprise resource planning) platform to SAP software, according to the lawsuit, filed Thursday in U.S. District Court for the District of New Jersey.
"Seizing upon Avantor's decision -- and fully aware that, given the competitive pressures of Avantor's industry, and the specialized demands of its customers, Avantor could not tolerate any disruptions in customer service -- IBM represented that IBM's 'Express Life Sciences Solution' ... was uniquely suited to Avantor's business," the lawsuit states. "The Express Solution is a proprietary IBM pre-packaged software solution that runs on an SAP platform."
But Avantor discovered a different truth after signing on with IBM, finding that Express Life was "woefully unsuited" to its business and the implementation brought its operations to "a near standstill," according to the suit.
IBM also violated its contract by staffing the project with "incompetent and reckless consultants" who made "numerous design, configuration and programming errors," it states.
In addition, IBM "intentionally or recklessly failed" to tell Avantor about risks to the project and hurried towards a go-live date, the suit alleges.
"To conceal the System's defects and functional gaps, IBM ignored the results of its own pre-go-live tests, conducted inadequate and truncated testing and instead recommended that Avantor proceed with the go-live as scheduled -- even though Avantor had repeatedly emphasized to IBM that meeting a projected go-live date was far less important than having a fully functional System that would not disrupt Avantor's ability to service its customers," the suit states.
The resulting go-live, which occurred in May, "was a disaster," with the system failing to process orders properly, losing some orders altogether, failing to generate need paperwork for U.S. Customs officials and directing "that dangerous chemicals be stored in inappropriate locations," the suit states.
Avantor has suffered tens of millions of dollars in monetary damages, as well as taken a hit to its reputation among partners and customers, the suit states.
For example, before the go-live, IBM and Avantor met with one of Avantor's biggest customers, which voiced worry that its EDI (electronic data interchange) with Avantor for product ordering wouldn't work after the changeover, and IBM assured the customer it would, according to the suit. "In fact, the EDI interface immediately failed upon go-live."
"IBM, meanwhile, has already pocketed over $13 million in fees from Avantor for a systems implementation project it mismanaged and was unable to perform properly," the lawsuit states. "Incredibly, IBM is now seeking to profit from its misconduct by demanding millions of dollars in additional fees to redesign and rebuild the defective System it implemented."
IBM said it disagreed with the claims and will defend itself against them vigorously. "We believe the allegations in the complaint are exaggerated and misguided and are surprised that Avantor chose to file suit," a spokesman said via email. "IBM met its contractual obligations and delivered a solution that Avantor continues to use in its operations."
Avantor's suit does state that IBM made efforts to right the project's course, albeit ultimately ineffective ones, following a June meeting with Avantor's then-CEO, Rajiv Gupta.
IBM "began to acknowledge the severity of the situation" and replaced many of the original consultants, according to the suit. These workers did extensive redesign and programming.
In July, "IBM told Avantor to cancel every pending order and reset the entire System in light of pervasive warehouse problems," it states. "IBM said this was necessary to discover the root cause of the problem. Ultimately, IBM acknowledged that it had to engage in extensive remedial efforts to redesign and rebuild the System that Avantor hired it to deliver."
"Numerous" IBM workers have told Avantor personnel that IBM failed to manage the project correctly and use SAP "best practices," according to the complaint.
IBM workers even called the project the worst SAP implementation they'd ever seen, it adds.
Avantor is seeking assorted damages in an amount to be determined at trial.
In many respects, the lawsuit reflects other high-profile litigation over SAP projects.
But Avantor broke from tradition by calling attention to its lawsuit via a press release, as companies suing systems integrators and ERP vendors rarely actively seek publicity.
One famous exception came several years ago when Waste Management sued SAP over an allegedly failed project. Waste Management won a sizable settlement from SAP after a public bout of ugly back-and-forth allegations.
It wasn't immediately clear Friday whether Avantor also plans to initiate legal action against SAP, or even has grounds to do so.
An SAP spokesman said Friday he hadn't been aware of Avantor's suit against IBM and declined comment.
Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

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Space-station commander controls Lego robot on Earth with futuristic network


Late last month in Germany, a robot made its first moves on Earth under commands from an orbiting spacecraft.
Though that may sound ominous, it doesn't represent an impending threat to humankind. The robot was made of Legos, and it only traversed a European Space Agency test facility. The commands were sent by Sunita Williams, commander of the 33rd expedition of the International Space Station. The ESA-led experiment may have helped lay the groundwork for future expeditions to the Moon, Mars and beyond.
ESA and NASA carried out the exercise to test Disruption Tolerant Networking, a set of protocols designed for communication across the void of space. Researchers created DTN to overcome problems that prevent space missions from using Internet Protocol, the system that runs the Internet and most other networks on Earth. In the process, they may create a technology that helps soldiers keep in touch across war zones and consumers use smartphones as they move in and out of cell coverage.
The Internet doesn't work in space because it takes too long to send data packets across the enormous distances. Even at the speed of light, a one-way transmission from Earth to the Moon has a built-in delay of 1.7 seconds, and one from Earth to Mars would face an eight-minute delay. Space networks also suffer from higher error rates than the terrestrial Internet does because of interference from solar radiation, and their transmissions can be blocked temporarily as celestial bodies move through space.
"As NASA extends its reach to the Moon and beyond, a networked architecture such as DTN will be required to successfully complete these missions," the agency wrote on its Web page about the project. NASA envisions DTN being used between assets on the surface of planets and sister spacecraft orbiting above, or between craft in deep space and command centers on Earth.
While IP expects a continuous, end-to-end data path between two devices using it, DTN sends data on its journey one "hop" at a time. At its heart is the Bundle Protocol, which stores bundles of data at each hop until the next link becomes available and then forwards them.
Spacecraft and all forms of surface vehicles have been communicating by radio ever since the dawn of the Space Age, but the technologies they use are specialized and custom-built. NASA and ESA hope to make DTN into the equivalent of IP for space, a standards-based, publicly available protocol. That would reduce labor costs for setting up communications for each mission, NASA said.
Having a standardized communication protocol will become more important if space exploration escalates to setting up bases on the Moon or other planets, said Adrian Hooke, NASA's space DTN project development manager.
"Just as you can communicate on Earth without the Internet, you could build such a space base without DTN, but its communications systems would be very expensive and unreliable, since there would be lots of custom and manual capabilities required that are already fully standardized by DTN," Hooke wrote in an email interview.
NASA has been working on DTN "in earnest" since 2000, according to Hooke. A key proponent of the technology is Vint Cerf, one of the founders of the current Internet. It has used the system successfully to transmit data through space. In the latest experiment, ISS commander Williams controlled the Earthbound robot in Darmstadt, Germany, for about 90 minutes and exchanged data with it. The network connection between the robot and the ISS, more than 200 miles above Earth, delivered 50 kilobytes per second down and 82 bytes per second up. Data took seven seconds to make the round trip.
The agency expects to be able to use DTN on missions that will launch around 2015. But the technology may also have more down-to-Earth applications. Because it's designed to handle intermittent link connectivity, or communication without a constant connection, it could be useful for military networks or for using any type of battery-powered mobile communications device that goes in and out of range of a network, NASA says.
There is no limit to how far DTN could go. "There are no limits -- DTN could run into interstellar space," Hooke wrote. "It's more a question of how long the user can wait for a response."
However, the hop-by-hop nature of DTN would require some nodes along the way. These could be supplied by spacecraft purpose-built as relays or by older craft that had already fulfilled their original purposes, according to Hooke.
The "Interplanetary Internet" that NASA envisions might be a network of networks all built on DTN, but with two sets of standard protocols.
"DTN can run over the terrestrial Internet protocols in small areas of space where the communications environment is a lot like that on Earth. However, the performance of the Internet protocols rapidly breaks down in long-delay or disrupted environments, so DTN will be the end-to-end protocol, traversing local "islands of IP" along the path," he wrote.
Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

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Google access returns to China after brief blocking


Access to Google services in China appeared to return Saturday morning after they were blocked briefly as the country prepares to appoint new leadership.
The blocking appeared to last for about 12 hours, with Internet traffic resuming to the sites after 6 a.m. local time, according to Google's Transparency Report, which monitors company's services worldwide. In Beijing, Google was accessible, although loading the sites was slow.
GreatFire.org, which monitors China's online censorship, also said Google access appeared to be restored in many locations across the country.
This is the first time Google has been blocked in China since 2010, in what was then only a brief disruption. It's unclear why the sites were targeted this time, but China's Communist Party is currently holding its 18th Party Congress, where it will name the country's new leaders.
The blocking also occurred just two weeks after Chinese censors targeted The New York Times after it had published an article on the billions in wealth amassed by the family of Chinese Premier Wen Jiaobao. The New York Times' website continues to be inaccessible from within the country.
China periodically increases the level of Internet censorship when sensitive government-related matters arise. This happened last year when an online call was made urging the Chinese people to protest. Subsequently, Google accused the Chinese government of disrupting access to its Gmail service in the country.
In this latest Google blocking, some Internet users took to China's Twitter-like microblogging sites to complain, and pointed to how Gmail access had been closed off.
Google's popularity in the nation, however, has declined since the company shutdown its China-based search engine in 2010. The company current has a 5 percent share in China's search market, according to data analytics website CNZZ.com.

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Apple, HTC settle patent suits worldwide


Apple and Taiwanese smartphone maker HTC have settled all of their outstanding patent disputes, they said late Saturday.
The settlement includes a 10-year agreement under which the companies will license current and future patents from each other, they said in a brief statement. The terms of the settlement are confidential and were not disclosed.
The patent dispute between the companies, one of many being fought in the mobile device industry, began in March 2010 when Apple filed suits at the International Trade Commission and U.S. District Court for Delaware accusing HTC of patent infringement.
HTC hit back with its own lawsuit and the fight escalated.
The top executives from each company provided much the same commentary in the joint statement.
Peter Chou, CEO of HTC, said, "HTC is pleased to have resolved its dispute with Apple, so HTC can focus on innovation instead of litigation," while Apple CEO Tim Cook said, "We are glad to have reached a settlement with HTC. We will continue to stay laser focused on product innovation."
Apple was the world's number two smartphone maker in the second quarter, accounting for 16.7 percent of shipments, according to research from IDC. HTC was in fourth place with a share of 5.8 percent, IDC said.
Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address ismartyn_williams@idg.com

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Friday, November 9, 2012

Most memorable tech industry apologies of 2012: From Apple to Google to Microsoft


Tech vendors have been as bombastic as ever promoting the magical and amazing things their latestsmartphonescloud computing wares and network gear can do. When things go wrong, they're naturally a little less visible, but plenty of companies have sucked it up and done the right thing this year (perhaps with a little legal prodding here and there) and publicly apologized for minor and major customers inconveniences.
Here's a brief rundown of the sorry, sorry action so far in 2012:
*Apple Maps flap
Apple has a reputation for not apologizing for much of anything (or even deigning to comment on anything slightly controversial). It even twisted a court order in the U.K. in October into a sort of non-apology apology/advertisement and then a snoozy newspaper ad.
But actually, the company has said sorry numerous times in recent years, for everything from long waits for buyers of the first iPhones in 2007 to the notorious antenna-gate problems with the iPhone 4. This time around, CEO Tim Cook issued an apology in the wake of the company's release of disappointing maps technology in iOS 6. The apology read, in part:
"At Apple, we strive to make world-class products that deliver the best experience possible to our customers. With the launch of our new Maps last week, we fell short on this commitment. We are extremely sorry for the frustration this has caused our customers and we are doing everything we can to make Maps better."
One Apple executive who reportedly didn't want to sign off on the apology -- iOS chief Scott Forstall -- has now left the company in a management shake-up. And Forstall was joined in departing by John Browett, Apple's retail chief, whose group's problems with store staffing over the summer resulted inanother Apple apology
*Cisco stops pushing cloud on customers
Responding to customer backlash over making Cisco Connect Cloud service a default management system for high-end Linksys routers, Cisco apologized and made it so customers need to opt in to the service if they want it. The default is now a traditional setup for management over the LAN.
Customers balked at Cisco Connect Cloud for numerous reasons, including worries about Cisco snooping on their network use and strict terms of service that restricted access to certain content, possibly including spam and porn, among other things.
Brett Wingo, vice president and general manager of Cisco Home Networking, wrote in July:
"We believe lack of clarity in our own terms of service has contributed to many of our customers' concerns, and we apologize for the confusion and inconvenience this has caused. Cisco Connect Cloud and Cisco Linksys routers do not monitor or store information about how our customers are using the Internet and we do not arbitrarily disconnect customers from the Internet. The Cisco Connect Cloud Service has never monitored customers' Internet usage, nor was it designed to do so. Cisco will not push software updates to customers' Linksys routers when the auto-update setting is turned off."
*T-Mobile: Sorry about the sneaky ads
T-Mobile USA begged for forgiveness in April after slipping advertisements onto Android smartphone customers' update notification screens promoting the carrier's free VIP Zone offering. The carrier stopped the practice after the complaints came rolling in.
The apology: "During a recent software update, a message to promote T-Mobile's free VIP Zone was mistakenly sent to certain customers and appeared on the notification bar for some Android devices. After T-Mobile was made aware of this mistake, the company stopped the notifications. T-Mobile apologizes for the inconvenience this may have caused customers."
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*Motorola, Woot clean up their acts
Motorola Mobility in February warned people who bought but then returned Android-based Motorola Xoom tablets between March and October last year that the devices might have been resold by bargain-of-the-day website Woot with the ex-owners' sensitive data still on them. Motorola said that about 100 out of a batch of 6,200 Xoom tablets that it refurbished "may not have been completely cleared of the original owner's data prior to resale." The tablets were resold by Woot between October and December 2011.
Data possibly accessible on the uncleaned tablets could include photos and documents, as well as user names and passwords for social media, email and other accounts, Motorola acknowledged.
The company issued a statement of apology: "Motorola sincerely regrets and apologizes for any inconvenience this situation has caused the affected customers. Motorola is committed to rigorous data protection practices in order to protect its customers, and will continue to take the necessary steps to achieve this objective."
*Google earnings snafu, Gmail outage
When you're a company as wide-ranging as Google, you're always good for at least a few high-profile apologies during the year. Among the 2012 offerings: A hoarse-voiced CEO Larry Page apologizing during an analysts' call in October for the company's accidental release of its numbers too early ("I'm sorry for the scramble earlier today") , and then in April and June, mea culpas issued for Gmail outages. In April, Google apologized "for the inconvenience," thanked Gmail users for their "patience and continued support" and said that it is continually making improvements to its "system reliability," which the company considers "a top priority." However, as many as 4.8 million users were affected by another outage in June. In July, Google found itself apologizing for a Google Talk outage as well. "Please rest assured that system reliability is a top priority at Google, and we are making continuous improvements to make our systems better."
As for the premature release of its earnings statement, Google ultimately pointed to a mistake by financial printer RR Donnelley. Google's stock price got pounded for the error and hadn't quite recovered even a month later.
*Naughty Microsoft
With all the challenges to its Office and Windows products, does Microsoft really need headaches like these, too? Among the issues Microsoft has apologized for in 2012: a coder slipping the term "big boobs" into software code connecting the Linux kernel to Microsoft's Hyper-V virtualization product, and a raunchy dance routine that preceded an Azure presentation in Norway. 
As Network World's Paul McNamara wrote about the coding issue: "Some chucklehead working for Microsoft thought it would be funny to slip a thinly camouflaged sexist remark - 'big boobs' -- into software code that connects the Linux kernel to Microsoft's HyperV virtualization product. Naturally, someone noticed -- that was the intent (snicker, snicker) - and, as should surprise no one, criticism has ensued, since the vast majority of grownups have come to recognize that this kind of juvenile nonsense has no place in the business world."
Microsoft issued an apology: "We thank the community for reporting this issue and apologize for the offensive string. We have submitted a patch to fix this issue and the change will be published in a future release of the kernel."
As for the dance routine in June, Microsoft's Azure team issued this apology: "This week's Norwegian Developer's Conference included a skit that involved inappropriate and offensive elements and vulgar language. We apologize to our customers and our partners and are actively looking into the matter."
Once that was settled, Microsoft was able to focus on apologizing for interruptions to Azure service, such as it did in July when its cloud offering went on the fritz in Western Europe. "We sincerely apologize for any issues this caused impacted customers, and will make the necessary adjustments to help prevent a similar issue from occurring in the future. Impacted customers should contact support to file an SLA credit," wrote Mike Neil, general manager, Windows Azure, on a company blog
On the less racy side, Microsoft also apologized to a blogger in March in the wake of a Windows Phone marketing promotion called "Smoked by Windows Phone" that proved unfair when store employees failed to recognize the blogger's Samsung Galaxy Nexus the winner of a $1,000 laptop prize. Microsoft PC evangelist Ben Rudolph came to the rescue, via Twitter, once the story got picked up: "Hey @sahaskatta , @Microsoftstore & I want to make things right. So I've got a laptop & phone (& apology) for you. Email me!," @BenThePCGuy tweeted.
*Amazon cloud crash
People tend to notice when Amazon Web Service's cloud offerings collapse, not that they necessarily realize Amazon is involved. Rather, it's the companies whose websites depend on AWS that get noticed, and often wind up apologizing to their customers.
That's exactly what happened in October when AWS had an outage (its third major one in two years) following a new hardware installation ("latent memory bug" issue) at one of its northern Virginia data centers. Websites such as Reddit and Imgur were left to do the explaining to their would-be website visitors, while Amazon followed up with credits for its customers and a promise to fix the underlying problem, including an overaggressive traffic throttling policy. Amazon also apologized, writing in part on its AWS support site: "We apologize for the inconvenience and trouble this caused for affected customers. We know how critical our services are to our customers' businesses, and will work hard (and expeditiously) to apply the learning from this event to our services. While we saw that some of the changes that we previously made helped us mitigate some of the impact, we also learned about new failure modes. We will spend many hours over the coming days and weeks improving our understanding of the event and further investing in the resiliency of our services."
Amazon was forced to publicly apologize for another outage of its Elastic Compute Cloud lasting several hours in June that it blamed on power outages (caused by storms), software bugs and rebooting bottlenecks. Amazon's team wrote: "We regret the problems experienced by customers affected by the disruption and, in addition to giving more detail, also wanted to provide information on actions we'll be taking to mitigate these issues in the future."
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*LinkedIn passwords free-for-all
LinkedIn, in June, confirmed reports that some of its users' passwords were compromised after reports surfaced that about 6.5 million LinkedIn passwords were compromised and posted online in a Russian hacker forum, in large part because LinkedIn was using a weak hashing algorithm.
The business-oriented social network site quickly updated its security and ensured users who updated their passwords that they'd be in much better shape. Even so, it was hit with a $5 million lawsuit over the breach. 
Here's what one LinkedIn VP blogged, in part: "We sincerely apologize for the inconvenience this has caused our members. We take the security of our members very seriously. If you haven't read it already it is worth checking out my earlier blog post today about updating your password and other account security best practices."
*BlueToad victimized by hackers
Digital publishing company BlueToad revealed in September that the unique identifiers of some 1 million Apple iOS devices that hackers leaked were swiped from its servers. CEO Paul DeHart's admission that his company was the hacking victim helped clear suspicion from the FBI, which the Antisec-affiliated hacking group claimed to have taken the UDIDs from. DeHart said in an interview with MSNBC (and he might be the only exec from any of these companies that apologized on camera) that his company did change its code to comply with stricter Apple guidelines earlier this year, but that the hackers got access to information stored via older code.
DeHart wrote in a blog post that: "We sincerely apologize to our partners, clients, publishers, employees and users of our apps. We take information security very seriously and have great respect and appreciation for the public's concern surrounding app and information privacy. BlueToad does not collect, nor have we ever collected, highly sensitive personal information like credit cards, social security numbers or medical information. The illegally obtained information primarily consisted of Apple device names and UDIDs - information that was reported and stored pursuant to commercial industry development practices."
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*GoDaddy goes down
GoDaddy's internal investigation of a six-plus hour outage on Sept. 10 for website and domain service business and its 52 million customers concluded that it was caused by a "series of internal network events that corrupted router database tables," not a hacker attack, as was first suspected by many after a supposed Anonymous affiliate initially took credit. GoDaddy emphasized that while customers websites went dark, their personal data was not compromised.
CEO Scott Wagner issued an apology in which he wrote in part: "Throughout our history, we have provided 99.999% uptime in our DNS infrastructure. This is the level our customers expect from us and the level we expect of ourselves. We have let our customers down and we know it. We take our business and our customers' businesses very seriously. We apologize to our customers for these events and thank them for their patience."
GoDaddy also awarded customers one month of credits in attempt to keep disappointed ones from fleeing.
*RIM CEO: Sorry about the outage
In the grand scheme of things, RIM BlackBerry network outages haven't been the worst of Research in Motion's problems this year. Rather, the company's loss of market share, weak financial results and new product delays have been front and center.
But RIM did have a three-hour network outage in September in Europe and Africa that affected about 6% of customers and prompted CEO Thorsten Heins to apologize: "I want to apologize to those BlackBerry customers in Europe and Africa who experienced an impact in their quality of service earlier this morning. The BlackBerry service is now fully restored and I can report that no data or messages were lost. Up to 6 per cent of our user base may have been impacted. Preliminary analysis suggests that those customers may have experienced a maximum delay of 3 hours in the delivery and reception of their messages. We are conducting a full technical analysis of this quality of service issue and will report as soon as it concludes. I again want to apologize to those customers who were impacted today."
*Nokia's camera trick
Nokia's big Lumia 920 Windows Phone 8 splash in September got off to a rough start when the company overreached in a video promoting the camera's Pureview camera technology. Yes, Nokia resorted to the old not-so-hidden cameraman trick.
As NW's Colin Neagle wrote in September, "Nokia was caught red-handed in a lie, after tech bloggers spotted a cameraman capturing a video the company claimed was shot with its new, highly touted Lumia 920 smartphone. After apologizing, Nokia posted a real video shot with the smartphone, displaying the optical image stabilization (OIS) camera technology that was faked on the first try."
Tech bloggers spotted in the video a reflection of a cameraman with a professional camera actually taking the shot of a women on a bicycle.
The company said its main fault was failing to publish "a disclaimer stating this was a representation of OIS only."
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*Yahoo's massive breach
Yahoo apologized for a network breach in July that involved exposure of some 400,000 Yahoo user names and passwords, among other information. The breach was especially bad because it tied in with Gmail, Hotmail and other online accounts. The group claiming responsibility for the hack said it used a SQL injection. Yahoo's apology went like this: "At Yahoo! we take security very seriously and invest heavily in protective measures to ensure the security of our users and their data across all our products. We confirm that an older file from Yahoo! Contributor Network (previously Associated Content) containing approximately 400,000 Yahoo! and other company users names and passwords was stolen yesterday,July 11. Of these, less than 5% of the Yahoo! accounts had valid passwords. We are fixing the vulnerability that led to the disclosure of this data, changing the passwords of the affected Yahoo! users and notifying the companies whose users accounts may have been compromised. We apologize to affected users. We encourage users to change their passwords on a regular basis and also familiarize themselves with our online safety tips at security.yahoo.com."
*Path goes down wrong privacy path
Path, a social journal app for iPhone and Android devices, apologized in February after it came to light that the company was grabbing iPhone contact info and sticking it on its own servers. CEO Dave Morin wrote in part: "We made a mistake. Over the last couple of days users brought to light an issue concerning how we handle your personal information on Path, specifically the transmission and storage of your phone contacts. ... Through the feedback we've received from all of you, we now understand that the way we had designed our 'Add Friends' feature was wrong. We are deeply sorry if you were uncomfortable with how our application used your phone contacts."
The revelation, in turn, led to more revelations that bigger name apps like Twitter, Facebook and Foursquare were doing likewise. Apple took steps to require app makers whose wares are in its App Store to ask permission if they want to take contact info.
*McAfee: Just kidding about that malware






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