August 2015

American Airlines, Sabre Said to Be Hit in Hacks Backed by China

A group of China-linked hackers that has mowed through the databanks of major American health insurers and stolen personnel records of US military and intelligence agencies has struck at the heart of the nation’s air-travel system, apparently. Sabre Corp., which processes reservations for hundreds of airlines and thousands of hotels, confirmed that its systems were breached recently, while American Airlines Group Inc., the world’s biggest carrier, said it is investigating whether hackers had entered its computers. Both companies were hacked as part of the same wave of attacks that targeted insurer Anthem Inc. and the US government’s personnel office, according to three people with knowledge of the cybersecurity probes. The investigators have tied those incursions to the same China-backed hackers, an assessment shared by US officials.

The latest incidents, which haven’t previously been reported, are the broadest yet on the US travel industry, emerging a week after security experts attributed an attack on United Airlines, the world’s second-largest carrier, to the same group. The plundered information would add to a trove already believed to include personal and employment details from background checks on millions of government employees and contractors, as well as medical histories. A foreign government could use the data to build profiles of US officials and contractors, establishing information that could be used to blackmail them into providing intelligence. A government could also track the travel of U.S. officials and workers to detect military or intelligence operations, or compare their movements with those of its own citizens.

An Oakland shooting reveals how cops snoop on cell phones

Officer Eric Karsseboom merely wanted to find a four-door, white Dodge car on the evening of January 21, 2013. Instead, someone else found him. The Oakland (CA) Police Department veteran was suddenly facing down the barrels of a trio of guns as three men—Denate Kincaid, Joseph Pennymon, and Damien McDaniel—surrounded his vehicle, an unmarked Chevy Tahoe, in the parking lot of a gated apartment complex at 1759 Seminary Avenue. Located in East Oakland, this was and remains the heart of one of the city's toughest neighborhoods. Kincaid spotted the trapper, a slang term for a gun, after he and his associates stopped Karsseboom's car for an informal interrogation. Undercover and alone, Karsseboom had crept into the apartment complex behind another vehicle, hoping to find the Dodge that OPD connected to a suspect from a shooting the previous day. Now more gunfire loomed.

Within a few days, all three—plus a fourth man allegedly involved—were eventually located. A criminal case, United States vs. Ellis et al, now hangs in the balance. The men are charged with both the attempted murder of a local police officer and for running an alleged East Oakland gang centered around Seminary Avenue (known as "SemCity"). But in the process of locating one of the alleged assailants on that night nearly three years ago, the department may have unintentionally opened up a way for the defendants to challenge evidence in the case. And perhaps worse for the authorities at large, the OPD's actions in the wake of Karsseboom's beating are shedding new light on one of the government's most prized and secretive surveillance tools: the cell phone hunting and intercepting device known as a stingray.

Study: Government Legislative Websites Not Up to Industry Par

An in-depth look at state legislative websites across the country came up with some not so surprising results: Government sites are behind the times when it comes to their online infrastructure. FiscalNote, a legislative intelligence platform provider based out of Washington (DC) evaluated 54 legislative websites across the country and determined that there was substantial room for improvement in many cases. Adam Nekola, a marketing Web developer with FiscalNote, said the company’s study looked at the several factors, including server technology, user security, mobile usability, analytics, content management and site speed. Researchers found substantial deficiencies when compared against the leading industry practices.

“I wouldn’t say these are necessarily shocking findings,” he said. For the majority of the 54 websites, frameworks were built using ASP.NET; a sharp contrast to the 972 software-as-a-service (SaaS) companies they were compared to, which fell back on slightly more popular PHP frameworks. While the PHP framework is often the popular choice for high-traffic sites, the legislative websites favored ASP.NET frameworks, which seem to be a popular choice for government Web contractors. In addition, the FiscalNote report cites that mobile users were often left in a lurch when trying to access the majority of the legislative Web pages. Failures to adjust to tablet and smartphone screens made navigation difficult.

Capitol Case: Robert Freeman’s Enduring Fight Against Government Secrecy

Robert Freeman has been helping people extract public information from New York state agencies for four decades. He is the executive director of the New York Committee on Open Government, a division of the New York Department of State that advises the public on the Freedom of Information Law -- the state statute authorizing access to public records. While Freeman gives Gov. Andrew Cuomo (D-NY) credit for making a substantial amount of state data available online, he says the administration has been slower and more difficult than any previous administration in responding to formal Freedom of Information requests. Several ProPublica reporters have recently experienced delays and resistance from New York state agencies in responding to such requests. Joaquin Sapien has spent the last several weeks reporting on violent crimes perpetrated by youngsters living in group homes throughout New York City. Last week, he received a response to a request for inspections of the homes and enforcement actions made against their operators from the Office of Child and Family Services. The response came two weeks past the 20-day-deadline and said the agency needed an additional 75 business days to fulfill the request. Meanwhile, ProPublica reporter Michael Grabell has fought a three-year legal battle with the New York Police Department trying to obtain records on the department’s use of X-ray surveillance machines. Freeman agreed to participate in a Q&A with Sapien. In it, Freeman, 68, draws on his experience working under seven different governors to speak to such delays in the release of public information and their underlying causes.

New Wireless Gigabit Internet Connection Unveiled in Silver Spring

County Executive Ike Leggett announced the completion of the “first link” in Montgomery County’s (MD) plan to connect government buildings and local businesses to ultra-fast Internet connections. The new “ultraGig” link connects the Internet service provider Atlantech Online’s Silver Spring Data Center to the Silver Spring Innovation Center and provides the building with a 1 gigabyte per second connection -- exponentially faster than the building’s previous connection that ranged from 10 megabytes per second to 200 megabytes. The innovation center is one of four business incubators run by the county. It houses a number of local start-ups.

The move is being pitched as a first step by the county to engage in what has become a mounting arms race by municipalities across the country to provide growing businesses the fastest Internet connections possible to compete in the burgeoning tech industry. The technology, which is being developed by Washington (DC)-based FiberTower, uses small satellite-like dishes mounted on rooftops to direct pencil size beams that deliver the internet service, according to Joseph Sandri, the president of FiberTower Solutions. Sandri said the Internet service is reliable 99.999 percent of time, a much higher rate than typical Internet service providers, even those that provide connections through fiber optic cable buried underground. Another benefit, Sandri said, is that the technology doesn’t require the massive construction and labor costs that installing traditional fiber optic does because the dishes can be installed on rooftops and the connection beamed wirelessly. Leggett said the ultraGig connection costs the same price as the previous internet service the county paid for at the building.

The Death of Snackable Content

[Commentary] Every other headline out there today promises to break topics down into bite-sized bits. “4 Ways to Be a Better Leader,” “8 Steps to a Healthier Lifestyle,” “16 Abuses From the CIA Torture Report” -- it seems as if no topic is too serious or nuanced to undergo “snackification.” Like Cheetos and M&Ms, these articles lend themselves to mindless consumption. There is nothing wrong with them in moderation, but at some point, you start to crave something with more substance. Today’s readers want more than listicles and clickbait, and this is driving meaningful change across the digital publishing industry. The increasing demand for long-form speciality content will shape the future of the publishing industry.

An article in Fast Company highlights Wait But Why, a long-form blog that has acquired 31 million unique visitors and 87 million page views, through 80 articles that average over 2,000 words each. “If you can blow someone’s mind -- really, genuinely blow it, again, in a really well-written way -- then that’s something they want to share,” said Wait But Why co-founder, Andrew Finn. Publications will realize that there is far more value in creating a strong community around a specific topic and connecting those readers with relevant businesses than there is in mass-producing content for the masses. Readers benefit from better content, and publishers benefit from more effective monetization opportunities. Engagement, rather than eyeballs, will become the underlying drive. That said, articles like “27 Cats Who Are a Better Human Than You” will always have their place, because everyone needs a little junk food every once in a while.

[Joe Hyrkin is CEO of Issuu]

3D-printed drugs raise new challenges for intellectual property

[Commentary] 3D printing will open the door to major improvements in a broad swath of industries. Take, for instance, the recent decision by the US Food and Drug Administration (FDA) to approve SPRITAM, an anti-epilepsy medication developed by Aprecia Pharmaceuticals, a Pennsylvania-based drug company. SPRITAM uses Aprecia’s “ZipDose” technology, which employs 3D printing methods to produce “a porous formulation that rapidly disintegrates with a sip of liquid.” Thought to be the first 3D-printed pharmaceutical on the American market, SPRITAM will allow epileptic patients with swallowing difficulties to medicate themselves appropriately. 3D printing will open the door to major improvements in a broad swath of industries. Take, for instance, the recent decision by the US Food and Drug Administration (FDA) to approve SPRITAM, an anti-epilepsy medication developed by Aprecia Pharmaceuticals, a Pennsylvania-based drug company. SPRITAM uses Aprecia’s “ZipDose” technology, which employs 3D printing methods to produce “a porous formulation that rapidly disintegrates with a sip of liquid.” Thought to be the first 3D-printed pharmaceutical on the American market, SPRITAM will allow epileptic patients with swallowing difficulties to medicate themselves appropriately. Most “branded” drugs are patented so that their manufacturers can recover the billions of research and development dollars they’ve invested.

After 20 years, their patents expire, and generic drugmakers can clone them to their heart’s content through a process overseen by the FDA. But empowering individual pharmacies or other tiny entities to copy these drugs through 3D printing techniques imperils those protections. The “cheap configurable chemical and formulation robot” that Cronin extols can be exploited to reverse engineer and clone existing drugs currently under patent protection. In addition, democratized drug manufacture raises issues of quality control and safety that the current, clunky FDA regulations are not well-equipped to handle; it’s far easier for regulators to inspect and certify massive, centralized manufacturing plants than individual pharmacies. So two cheers for these phenomenal scientific advances. We’ll reserve the third cheer for when these industries successfully navigate these difficult but not insuperable legal challenges.

[Michael Rosen is an adjunt professor of law a the University of San Diego School of Law]

Summing It Up: National TV Ad Revenues Down 2.7 Percent

After a week of earnings reports that sent the media sector stocks tumbling, analysts took a beat to see what they’ve learned. Based on the numbers reported by the companies that own networks, Michael Nathanson of MoffettNathanson Research figures that national advertising finished down 2.7 percent in the second quarter, which he terms the worst non-recessionary, non-Olympic drop on record.

Broadcast network advertising was down 2.9 percent -- worse than expected -- and cable was down 2.6 percent, a bit better than expected. Nathanson doesn’t see things improving much in the short term. “Until ratings trends improve -- and easier 3Q comps materialize -- the lack of ratings points will likely keep reported national advertising in the zero to negative range." The weakness in ad spending was largely known before last week. But worries about the pay TV bundle unraveling and threatening what had appeared to be strong, predictable growth in distribution revenues intensified during the earnings calls. “Cord-cutting is real, and perhaps the silver lining is the market is now fully aware,” said Ben Swinburne of Morgan Stanley. But he cautioned that “we are not calling this the bottom.” Finding the bottom would require conviction in estimates of future earnings and a sense that valuations have troughed. “Neither box can be checked,” he said. Swinburne added that “the distributors are increasingly desperate. We think skinny bundles are gaining share, and that 1-2 percent pay-TV subscriber declines may become 2-3 percent cable network subscriber declines. Moreover, every MVPD is focusing more on building bundles that leave some networks out.”

It's Time For Stations To Be More Sociable

[Commentary] TV stations and programmers that don’t embrace social media are missing a good portion of their potential audience. And to maximize audience, programming must be available where viewers access digital content. Social media also ranks highly among millennials in deciding which TV shows to watch.
[Mary Collins is president and CEO of the Media Financial Management Association]

DCDC to Expand Digital Theater Network Satellite Stream by 4,000 Screens BY 2018

Movie houses across the country are taking a step further in embracing advances in distribution technology, as more than 3,000 US theaters will use satellite streams to exhibit movies by 2018. The Digital Cinema Distribution Coalition (DCDC), which specializes in digital delivery to theaters through satellite and terrestrial distribution technologies, will expand its current network of 28,000 screens by 4,000 across 700 locations in the next 28 months.

Since May, 15 additional exhibitors have joined representing 200 locations and more than 1,800 screens; as of August, more than 1,700 of those have installed DCDC’s proprietary equipment. The technology has been helping the industry transition from the previously ubiquitous standard of digital hard drives. DCDC’s current theatrical content partners include the major movie studios and independents, as well STX and The Weinstein Company, as well as Arts Alliance Distribution, BY Experience, Gathr Films, Group 1200 Media, Magnolia Pictures, Pure Flix, SpectiCast and Shorts International.