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NSA Revelations Kill IBM Hardware Sales in China

For several months there have been warnings that the NSA revelations will seriously upset American technology companies’ bottom lines. Though not directly implicated in any of the leaks thus far it appears that IBM’s Chinese growth predictions have just been fed through a wood chipper. From Zerohedge:

In mid-August, an anonymous source told the Shanghai Securities News, a branch of the state-owned Xinhua News Agency, which reports directly to the Propaganda and Public Information Departments of the Communist Party, that IBM, along with Oracle and EMC, have become targets of the Ministry of Public Security and the cabinet-level Development Research Centre due to the Snowden revelations.

“At present, thanks to their technological superiority, many of our core information technology systems are basically dominated by foreign hardware and software firms, but the Prism scandal implies security problems,” the source said, according to Reuters. So the government would launch an investigation into these security problems, the source said.

Absolute stonewalling ensued. IBM told Reuters that it was unable to comment. Oracle and EMC weren’t available for comment. The Ministry of Public Security refused to comment. The Development Research Centre knew nothing of any such investigation. The Ministry of Industry and Information Technology “could not confirm anything because of the matter’s sensitivity.”

This is the first quantitative indication of the price Corporate America has to pay for gorging at the big trough of the US Intelligence Community, and particularly the NSA with its endlessly ballooning budget. For once, there is a price to be paid, if only temporarily, for helping build a perfect, seamless, borderless surveillance society. The companies will deny it. At the same time, they’ll be looking for solutions. China, Russia, and Brazil are too important to just get kicked out of – and other countries might follow suit.

Now, IBM et al. aren’t necessarily purely victim to the NSA’s massive surveillance practices: there likely are legitimate domestic market changes that are also affecting the ability of Western companies to sell product in China and other Asian-Pacific countries. But still, that NSA can be used to justify retreats from Western products indicates how even companies not clearly and directly implicated in the scandals stand to lose. One has to wonder whether the economic losses that will be incurred following the NSA revelations are equal to, or exceed, any economic gains linked to the spying.

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Greater Oversight Required for Canada’s Spy Agencies

This is the kind of introspection and critique that all backbenchers should be able to present to the public. They shouldn’t be forced to leave their party caucus to do so.

Source: Greater Oversight Required for Canada’s Spy Agencies

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‘Betray’ the NSA at Your Own Peril

It’s important to not resist the NSA when it wants something, especially if you depend on them for key contracts. From the Washington Post:

Nacchio was convicted of selling of Qwest stock in early 2001, not long before the company hit financial troubles. However, he claimed in court documents that he was optimistic about the firm’s ability to win classified government contracts — something they’d succeeded at in the past. And according to his timeline, in February 2001 — some six months before the Sept. 11 terrorist attacks — he was approached by the NSA and asked to spy on customers during a meeting he thought was about a different contract. He reportedly refused because his lawyers believed such an action would be illegal and the NSA wouldn’t go through the FISA Court. And then, he says, unrelated government contracts started to disappear.

His narrative matches with the warrantless surveillance program reported by USA Today in 2006 which noted Qwest as the lone holdout from the program, hounded by the agency with hints that their refusal “might affect its ability to get future classified work with the government.” But Nacchio was prevented from bringing up any of this defense during his jury trial — the evidence needed to support it was deemed classified and the judge in his case refused his requests to use it. And he still believes his prosecution was retaliatory for refusing the NSA requests for bulk access to customers’ phone records. Some other observers share that opinion, and it seems consistent with evidence that has been made public, including some of the redacted court filings unsealed after his conviction.

Not only was Nacchio charged, but he was unable to mount a full defence in a public court on the basis that part of that defence depended on revealing classified information. That information, itself, concerned the CEO’s unwillingness to engage in what his counsel advised were illegal activities.

You don’t need secret courts to undermine the course of justice, or secret investigations. All you really need to do is establish that some evidence is too secret to be used in your defence. In effect, by precluding a full-throated defence of the accused the very legitimacy of the open court system is undermined.

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PhDerp: What it feels like to wait (again) for feedback on your dissertation

gradstudentdrone:

image

Like Bellatrix in the gif above, simmering inside me is barely concealed agitation as I watch the days go by without really hearing from my committee. It has been almost a month since I turned in my second draft and the only comments I’ve received have been, “so far, so good, definitely…

I read this and give thanks to my committee which is generally excellent at turning around chunks of my dissertation (usually in 100-200 page blocks) within a week or two (and often within 48-72 hours).

Source: PhDerp: What it feels like to wait (again) for feedback on your dissertation

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Links Writing

Secret Courts, Secret Evidence, and American Justice

Techdirt has recently covered a just shameful decision out of the US. The case involved an alleged domestic terror suspect who the FBI helped in every way to plan a bombing in Chicago. From the article:

Daoud’s lawyers made a much more thorough request for the evidence obtained via the FAA. As they note, there may be significant problems with the FISA information, including, but not limited to the FISA application for electronic surveillance may fail to establish probable cause that Dauoud was “an agent of a foreign power.” As they note, he was an American citizen and school student in suburban Chicago. They also suggest the FISA application may have contained material falsehoods or omissions and might violate the 4th Amendment. The surveillance also may have violated the FISA law. There are many other reasons they bring up as well.

The Justice Department (of course) argued that it shouldn’t have to hand over any of this info, in part because it’s classified and in part because they’re not going to use that evidence against Daoud.

Unfortunately, the court wasted little time in agreeing with the feds that they don’t need to turn over the evidence collected under FISA.

Just to be clear, this means that a secret court approved the secret surveillance of a domestically situated American citizen, and then refused to disclose the collected evidence. The American defendant, then, cannot know the totality of evidence that the state collected. This evidence might have played a key role in subsequent investigative efforts and, as a result, may have ‘poisoned’ the subsequent evidence.

Of course, we seemingly won’t ever know if such a poisoning theorem is true or not. All we’ll know is that American courts permit the state to engage in secret surveillance without disclosing what was collected to defence attorneys. And declare all subsequent proceedings as a ‘fair’ trial environment.

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BBM as a Microsoft Product?

Dan Froomer has an interesting 20/20 piece in which he asks what would have happened if Microsoft bought Blackberry in 2009. While he points to the potential of combining Z10 hardware with Windows Phone software, plus the 2009-value of Blackberry’s enterprise market, those claims aren’t his most ambitious. No, the pie-in-the-sky claim, emphasized below, is:

a Microsoft-BlackBerry tie-up in 2009 could have been good! Just as Microsoft was starting to put together a really solid software platform in Windows Phone 7, BlackBerry needed a grownup OS. Plus the obvious overlap in enterprise, RIM’s worldwide distribution, and even a budding mobile social network in BBM. There’s a possibility that it could have been a good combination.

Now, while BBM may have had up to 25 million subscribers in 2009 I simply cannot imagine Microsoft deciding to toss Windows Live Messenger with its 500 million+ users for BBM. My perspective is that things like BBM go to die in companies like Microsoft. Regardless of whether there were actual synergies between Blackberry and Microsoft in 2007 – and whether they could have been realized by Microsoft – BBM almost certainly wasn’t one of them.

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Links Quotations Writing

2013.8.23

Neither the GCSB nor a spokesperson for the Embassy of New Zealand in the United States immediately responded to Ars’ request for comment. In June 2013, New Zealand Prime Minister John Key evaded answering whether the GCSB uses or has access to the NSA’s PRISM system.

“I can’t tell you how the United States gather all of their information, what techniques they use, I just simply don’t know,” Key told TV3’s Firstline. “But if the question is do we use the United States or one of our other partners to circumvent New Zealand law then the answer is categorically no. We do exchange—and it’s well known—information with our partners. We do do that. How they gather that information and whether they use techniques or systems like PRISM, I can’t comment on that.”

Cyrus Farivar, “New Zealand appears to have used NSA spy network to target Kim Dotcom”

What’s often missing from reporting about whether intelligence agencies are asking five eyes partners to monitor the agencies’ own citizens is this: rarely would a formal request for such monitoring services be required.

You see, folks in the intelligence and security agencies train with one another. They go to international courses together, just like any other group of professionals. And, as anyone who attends professional events knows, informal networks of information sharing arise. In the context of NSA/CSEC/ASIO/GCHQ/etc this can take the form of one government official complaining about the inability to conduct domestic surveillance on X group(s) that are regarded as a problem and then – independent of a ‘formal’ request! – other partners just might collect information on X given that a problem for the complaining agency just might turn into a problem for all the five eyes partners.

As an example: when a CSEC or NSA official complains that domestic extremists could be plotting a terror attack, but that neither CSEC or NSA can legally conduct the surveillance, a partner might be motivated to conduct the surveillance because, you know, terrorism. And, to turn the intelligence into something that’s actionable the foreign service could turn the collected information to CSEC/NSA/agency that is domestically located.

The great thing about this approach is no formal request needs to have been made. Is this as efficient as “Hey, can you guys spy on X so we don’t break our national laws?” No. But it does have the effect of generating favours and goodwill between the very professionals who are often in close contact with one another. And it also lets information be shared without the clear violation of domestic laws that forbid most intelligence services from spying on their own citizens.

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Thoughts on the Implications of ‘Secret Surveillance’

In one of Michael Geist’s recent articles on secret surveillance he notes three key issues with the secretive intelligence surveillance actions that are coming to light. Specifically:

First, the element of trust has been severely compromised. Supporters of the current Internet governance model frequently pointed to Internet surveillance and the lack of accountability within countries like China and Russia as evidence of the danger of a UN-led model. With the public now aware of the creation of a massive, secret U.S.-backed Internet surveillance program, the U.S. has ceded the moral high ground on the issue.

This has been a point that academics have warned about for the past decade: when/if it is apparent that the US and other Western governments aren’t ‘fit to govern’ critical Internet infrastructure then foreign states will increasingly agitate to influence network design. Still, while the US government’s mass surveillance systems may accelerate the rate at which governments are ‘interested’ in critical infrastructure design and deployment, this isn’t a novel path or direction: governments throughout the world have been extending their surveillance capacities, often pointing to the US’ previously disclosed behaviours as justifications. The consequence of the recent high-profile articles on NSA surveillance has been to (arguably) ensure that a ‘moral high ground’ cannot be reclaimed; arguably, that ground has actually been lost for quite some time.

Geist continues:

Second, as the scope of the surveillance becomes increasingly clear, many countries are likely to opt for a balkanized Internet in which they do not trust other countries with the security or privacy of their networked communications. This could lead to new laws requiring companies to store their information domestically to counter surveillance of the data as it crosses borders or resides on computer servers located in the U.S. In fact, some may go further by resisting the interoperability of the Internet that we now take for granted.

Again, we’ve been seeing these kinds of law crop up for the past many years. However, the countries that have been engaging in such actions are all (generally) regarded as ‘foreign’ by individuals in North America. So, when Iran, India, China, or other countries have imposed localization laws those nations are seen as ‘rogue’; missing from much of the critique, however, has been how ‘domestic’ governments have sought to contain or delimit the flow of information. Admittedly, most of Canada, the UK, and America lacks ‘data localization’ laws, but all of those jurisdictions do have ‘data limitation’ laws, insofar as some information is blocked at an ISP level. In effect, while a hardware balkanization of the Internet might accelerate, the content balkanization of the Internet has been ongoing for over a decade.

Geist concludes:

Third, some of those same countries may demand similar levels of access to personal information from the Internet giants. This could create a “privacy race to the bottom”, where governments around the world create parallel surveillance programs, ensuring that online privacy and co-operative Internet governance is a thing of the past.

This is an area that will be particularly interesting to watch for. In terms of content localization, there are laws around the world limiting what citizens in various nations can access. While such localization laws were initially seen as heralding the end of the Internet this has not been the case: save for in particularly censorious regimes, local norms have guided what should(n’t) be accessible (e.g. child pornography, nazi symbology and paraphernalia, etc). At issue is that efforts to ‘block’ certain content tends to often not work well, and also tends to reduce efforts to legally punish those responsible for the content in the first place. In effect, the former problem speaks to the limitations of blocking any content effectively and without accidental overreach, and the latter with poor international cooperation between policing agencies to actually act against the producers of obviously nefarious content (e.g. child pornography).

The ability for nations to demand strong data/server/service localization requirements will, I suspect, be predicated on economic size and relative ‘value’ of a nation’s citizens to a particular company. So, if you have a very large multinational, with ‘boots on the ground’ and a large subscriber base in a profitable nation-state, then the multinational may be more likely to comply with localization requirements compared to a similar demand from a small/economically insignificant state in which the company lacks ‘boots’. Moreover, the potential for certain services to no longer be accessible – say, GMail, if Google refused to comply with a given nations’ localization laws – could lead citizens to turn on their own government on the basis that the services are needed for ongoing, daily, commercial or personal activity.

In effect, I think that while Geist’s third point is arguably the most significant, it’s also the one that we’re furthest off from necessarily crossing over to. Admittedly there are some isolated cases of localization requirements now (e.g. India), but the ability to successfully impose such requirements is as much based on the attractiveness of a given market as anything else. So, there could actually be a division between the ‘localization countries’: ones that are ‘big enough’ to commercially demand compliance versus ones that are ‘too small’ to successfully impose their sovereign wills on Internet multinationals. How any such division were to line up, and the political and economic rationales for all involved, will be fascinating to watch, document, and explore in the coming years!

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Man who created own credit card sues bank for not sticking to terms – Telegraph

class-struggle-anarchism:

what a hero!

Different situation, but I’ve done the same thing with publishers around copyright terms. Contracts: something to negotiate, not just something to submit to.

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Don’t Be a (Work) Hero

As I read this, I saw myself described in paragraph after paragraph. I hadn’t realized how damaging my work behaviour was getting until a month or so ago, when every day was laced with stress resulting from ‘no down time, and too much to do.’ Life was seriously out-of-kilter.

Fortunately I got some relief. A major burden was relieved, slightly, and I’ve been able to breath. I also saw the result of my ‘work ethic’ after it was maintained for months and years on end: I didn’t like what I saw, and worried about the long-term effects.

As part of my recently ‘normalized’ work schedule, I’m actively trying to leave work at work and not bring too much home. The result has been that I’ve been a more productive writer in the past month than I had been in the preceding three months. Sure, I was pounding out ‘rote writing’ at a impressive rate, but the insightful or interesting stuff needed when writing the conclusion for my dissertation just wasn’t coming to the surface. Fortunately, it’s coming at a rapid rate these days and I also get to (try and) enjoy myself for a few hours each night with non-work related things!

Source: Don’t Be a (Work) Hero