August 2011

McAfee reveals huge series of cyberattacks

A cyber-espionage operation lasting many years penetrated 72 government and other organizations, most of them in the US, and has copied everything from military secrets to industrial designs, according to technology security company McAfee.

In a report released on the eve of a major conference on hacking, McAfee said that it had obtained access to a computer that controlled the operation and documented a pattern of attacks dating back at least as far as 2006. McAfee did not name most of the targets but said they included six US government agencies and 13 defence contractors. It said some classified military secrets had been stolen and that logs showed that the UN, the International Olympic Committee, Olympic committees of several countries and a large US-based news organization were among the victims. Dmitri Alperovich, McAfee vice-president, said the nature of many of the targets strongly suggested backing by a national government, since there would be no obvious economic benefit for crime groups. People briefed on McAfee’s research said the most logical suspect was China, which was not among the Asian countries that were home to any of the victim institutions. Two South Korean companies and a government agency, as well as companies in Taiwan and Vietnam, were compromised.

Google Hires Federal Trade Commission Intellectual Property Expert Michel

Google , under investigation by the Federal Trade Commission for its dominance of Internet searches, said it hired Suzanne Michel, one of the commission’s top intellectual property officials.

Michel, 49, is leaving her post as deputy director of policy planning at the FTC, where she worked for more than 11 years on patent antitrust issues and patent policy. She will join the company’s legal team. Michel was the chief writer of a patent report the FTC issued in March, which analyzed the evolution of the patent system in the U.S. and made recommendations on how to improve patent law to promote innovation. The report also made suggestions to the courts on how to make patent remedies more effective.

Fewer IPOs will stall tech jobs

America’s main engine for high-tech jobs could soon be running on fumes. Venture capital firms — those gurus who fronted the cash for Apple, Google and a host of other household names — committed $7.5 billion to 966 deals last financial quarter, according to PricewaterhouseCoopers and the National Venture Capital Association. But that level of investment is not sustainable without changes to how publicly traded companies are regulated, according to association President Mark Heesen.

The problem is that venture capital firms have to replenish their coffers by having companies issue stock in initial public offerings. Without new public offerings, it’s harder for venture capital firms to exit their investments, pay back their own investors and buy stakes in new companies. Not enough IPOs means not enough investment in the kinds of start-ups the Obama administration says will reinvigorate the nation’s sluggish economy.

Russian minister calls for limits on the Internet

Russia's interior minister called for limits on the Internet to prevent a slide in traditional cultural values among young people, raising fears of controls over the vibrant Russian-language web.

Many of Russia's 53 million web users fear that hardliners around Prime Minister Vladimir Putin would like to impose Chinese-style limits on the Internet to stave off any potential Arab Spring-style unrest ahead of the presidential election. Russia's iPad-wielding president, Dmitry Medvedev, has ruled out draconian controls while suggesting a discussion of how to deal with clearly illegal content such as child pornography. Interior Minister Rashid Nurgaliyev is the most senior official to publicly propose limits for cultural reasons.

FCC Seeks Comment Regarding Possible Revision or Elimination of Rules

The Federal Communications Commission published a plan for the review of rules adopted by the agency in calendar year 2000 which have, or might have, a significant economic impact on a substantial number of small entities. The purpose of the review is to determine whether such rules should be continued without change, or should be amended or rescinded, consistent with the stated objective of section 610 of the Regulatory Flexibility Act (RFA), to minimize any significant economic impact of such rules upon a substantial number of small entities.

In reviewing each rule the FCC will consider the following factors:

(a) The continued need for the rule;
(b) The nature of complaints or comments received concerning the rule from the public;
(c) The complexity of the rule;
(d) The extent to which the rule overlaps, duplicates, or conflicts with other federal rules and, to the extent feasible, with state and local governmental rules; and
(e) The length of time since the rule has been evaluated or the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule.

FCC Confirms August Agenda

The Federal Communications Commission confirmed the agenda for its August 9 meeting. The FCC will consider:

  1. A Report and Order, Further Notice of Proposed Rulemaking, and Memorandum Opinion and Order addressing several proposals to remove regulatory barriers to the full and effective use of certain spectrum bands for wireless backhaul to promote broadband deployment. The item also addresses other ways to make additional spectrum available for wireless backhaul.
  2. A Notice of Proposed Rulemaking to reduce regulatory burdens and streamline the review process for foreign ownership of common carrier radio licensees (e.g., wireless phone companies) and certain aeronautical radio licensees under section 310(b)(4) of the Communications Act, while ensuring the Commission continues to receive the information it needs to serve the public interest. This item does not address issues related to foreign ownership of broadcast licensees.
  3. An Order on Reconsideration addressing two section 310(b)(4) foreign ownership rulings granted to Verizon Wireless in two proceedings approving its acquisitions of Rural Cellular Corporation (RCC) and Alltel Corporation (Alltel).

LTE revolution faces spectrum fragmentation

The world is going LTE, but the availability of spectrum in different countries and regions is fragmenting the 4G wireless standard internationally, according to research from Informa Telecoms & Media.

The company found distinct regional bands are emerging for LTE, which is posing a challenge for manufacturers looking at which bands to support in their devices. Informa said the availability of spectrum for 4G varies widely from country to country and by region with some bands only available in particular countries. For example, the 700MHz band, which is popular in the U.S., will only be adopted by a handful of operators outside the Americas. The 1900MHz band is most likely to be confined to the U.S. and Argentina, while the 1500MHz band will be limited to Japan.

Making It Easier for Immigrants to Start Companies in the United States

The United States has a long, rich history of welcoming innovative entrepreneurs and skilled workers into our country. These men and women fuel our nation’s economy by creating jobs, and promoting new technologies and ideas. Today, I joined Secretary of Homeland Security Janet Napolitano and outlined a series of new policy, operational, and outreach efforts that will help fuel the nation’s economy and stimulate investment by making it easier for high-skill immigrants to start and grow companies and create jobs here in the United States. Encouraging the kinds of streamlining measures U.S. Citizenship and Immigration Services is taking has been one key focus of the President's Council on Jobs and Competitiveness because they help ensure that America can continue to out-innovate and out-compete the world in a global economy.

As part of the Administration’s comprehensive effort to attract and retain high-skill entrepreneurs, USCIS announced that it will:

  • Clarify that immigrant entrepreneurs may obtain an employment-based second preference (EB-2) immigrant visa if they satisfy the existing requirements, and also may qualify for a National Interested Waiver under the EB-2 immigrant visa category if they can demonstrate that their business endeavors will be in the interest of the United States;
  • Expand the Premium Processing Service to immigrant petitions for multinational executives and managers;
  • Clarify when a sole employee-entrepreneur can establish a valid employer-employee relationship for the purposes of qualifying for an H-1B non-immigrant visa;
  • Implement fundamental enhancements to streamline the EB-5 process based directly on stakeholder feedback;
  • Launch new engagement opportunities to seek input and feedback on how to address the unique circumstances of entrepreneurs, new businesses and startup companies.

[Mayorkas is Director of U.S. Citizenship and Immigration Services]

Silicon Valley has jobs advice for Washington

With the debt ceiling standoff resolved (sort of), Silicon Valley's technorati gathered in Palo Alto (CA) to dole out advice on Washington's next gargantuan problem, job creation.

Tech heavyweights like Facebook COO Sheryl Sandberg, venture capitalist John Doerr and Reed Hastings, CEO of Netflix -- all members of President Barack Obama's Council on Jobs and Competitiveness -- emphasized the importance of immigration reform and better education in generating jobs and innovation. The Council was formed about six months ago to provide non-partisan advice to the President on how the government can "best foster growth, competitiveness, innovation, and job creation." It is schedule to meet with him in the fall to deliver policy recommendations. "We have to focus on our education system," said Facebook's Sheryl Sandberg. "We're falling behind in every way possible." Sandberg talked about what can be done to get more women in particular into high-tech jobs, such as giving girls more time with computers from an early age. "Let your daughters play video games," she told an audience comprised of educators, entrepreneurs and investors. Sandberg also talked about the role Facebook's ecosystem of developers has played in job creation. While Facebook employs about 2,600 employees, she noted that there are 2.5 million developers globally creating applications for the social network. She added that Facebook has also given rise to entire new industries, like social media consulting.

On immigration reform, the panel urged the government not only to make it easier for high-skilled workers to stay in the United States, but also to provide incentives for more professionals to enter the U.S. market.

Measuring Broadband America Plan

The Federal Communications Commission conducted the first nationwide test of residential wireline broadband service finding that:

  • For most major broadband providers, actual speeds are generally 80%-90% of advertised speeds or better, although performance varies by technology and service provider.
  • Even during peak usage periods -- between 7:00 pm and 11:00 pm on weeknights, when more home users are online and service quality declines -- most major broadband providers deliver actual speeds that are 80% of advertised speeds or better.
  • That’s significantly better than a study of 2009 broadband performance in the U.S. and a recent study of broadband performance in the UK, both of which found actual speeds were roughly 50% of advertised.
  • All technologies measured – DSL, cable, and fiber-to-the-home broadband – can deliver good service to consumers depending on their needs.
  • While download speed is the major factor affecting service performance, upload speed and latency (lag time in transmitting data) also matter for some applications.
  • Increased speed improves performance, but with some limits. For basic Web browsing -- viewing
  • web pages but not downloading or streaming online video -- performance improves as speeds increase, but only up to ~10 Mbps. However, high-demand applications like video conferencing, HD video streaming, gaming, or multiple activities occurring within one household may benefit from very high speeds.
  • Sascha Meinrath, Director of the New America Foundation's Open Technology Initiative, said: "The FCC's report documents considerable variation among ISP’s advertised speeds and actual broadband speeds. According to the report, a select few providers appear to be meeting their advertised speeds, but, most others are failing to do so. What the FCC's report makes clear is that there is an immediate need for disclosure and transparency to consumers regarding the expected performance of the Internet services they are purchasing."