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The Courts

How A Professional Poker Player Conned a Casino Out of $9.6 Million (washingtonpost.com) 330

Phil Ivey is a professional poker player who's won ten World Series of Poker bracelets -- but he's also got a new game. An anonymous reader write: In 2012, Ivey requested that the Borgata casino let him play baccarat with an assistant named Cheng Yin Sun while using a specific brand of playing cards -- purple Gemaco Borgata playing cards -- and an automatic shuffler. He then proceeded to win $9.6 million over four visits. The pair would rotate certain cards 180 degrees, which allowed them to recognize those cards the next time they passed through the deck. (They were exploiting a minute lack of a symmetry in the pattern on the backs of the cards...)

But last month a U.S. district judge ruled that Ivey and his partner had a "mutual obligation" to the casino, in which their "primary obligation" was to not use cards whose values would be known to them -- and ordered them to return the $9.6 million [PDF]. "What this ruling says is a player is prohibited from combining his skill and intellect and visual acuity to beat the casino at its own game," Ivey's attorney told the AP, adding that the judge's ruling will be appealed.

The judge also ruled Ivey had to return the money he later won playing craps with his winnings from the baccarat game -- though the judge denied the casino's request for restitution over the additional $250,000 worth of goods and services they'd "comped" Ivey during his stay.
Iphone

Apple/Samsung Patent Case Returns To Court To Revisit Infringement Damages (macrumors.com) 72

An anonymous reader quotes MacRumors: The U.S. Court of Appeals for the Federal Circuit on Thursday reopened a longstanding patent lawsuit related to Samsung copying the design of the iPhone nearly six years ago...according to court documents filed electronically this week... Apple's damages were calculated based on Samsung's entire profit from the sale of its infringing Galaxy smartphones, but the Supreme Court ruled it did not have enough info to say whether the amount should be based on the total device, or rather individual components such as the front bezel or the screen. It will now be up to the appeals court to decide.

Apple last month said the lawsuit, ongoing since 2011, has always been about Samsung's "blatant copying" of its ideas, adding that it remains optimistic that the U.S. Court of Appeals will "again send a powerful signal that stealing isn't right."

Security

Student Hacker Faces 10 Years in Prison For Spyware That Hit 16,000 Computers (vice.com) 172

An anonymous reader quotes Motherboard: A 21-year-old from Virginia plead guilty on Friday to writing and selling custom spyware designed to monitor a victim's keystrokes. Zachary Shames, from Great Falls, Virginia, wrote a keylogger, malware designed to record every keystroke on a computer, and sold it to more than 3,000 people who infected more than 16,000 victims with it, according to a press release from the U.S. Department of Justice.

Shames, who appears to be a student at James Madison University, developed the first version of the spyware while he was still a high school student in 2013, "and continued to modify and market the illegal product from his college dorm room," according to the feds... While the feds only vaguely referred to it as "some malicious keylogger software," it appears the spyware was actually called "Limitless Keylogger Pro," according to evidence found by a security researcher who asked to remain anonymous... According to what appears to be Shames Linkedin page, he was an intern for the defense contractor Northrop Grumman from May 2015 until August 2016.

The Department of Justice announced that he'll be sentenced on June 16, and faces a maximum of 10 years in prison.
Businesses

Someone Is Trying to Sell Those Stolen Three-Screen Razer Laptops in China (geek.com) 48

Just a few days ago, Razer's awesome Project Valerie laptops -- the one with three 4K displays -- were stolen. Now it looks like whoever stole them is trying to sell them. From a report: It turns out that the thief (or thieves) didn't just nab one Project Valerie prototype. They actually got ahold of a pair. Razer CEO Min-Liang Tan understandably wants them back, really, really badly. The company was willing to offer $25,000 to anyone who could offer information that led to the prototypes' return. So where did the laptops end up? Somewhere behind the Great Wall, apparently. Whoever has them isn't trying to quietly fence them in some dark Beijing alleyway, either. They've actually been listed on the immensely popular Chinese e-commerce site Taobao -- where they were spotted by writers at Engadget Chinese and Wccftech.
United States

Congress Will Consider Proposal To Raise H-1B Minimum Wage To $100,000 (arstechnica.com) 517

An anonymous reader quotes a report from Ars Technica: President-elect Donald Trump is just a week away from taking office. From the start of his campaign, he has promised big changes to the US immigration system. For both Trump's advisers and members of Congress, the H-1B visa program, which allows many foreign workers to fill technology jobs, is a particular focus. One major change to that system is already under discussion: making it harder for companies to use H-1B workers to replace Americans by simply giving the foreign workers a raise. The "Protect and Grow American Jobs Act," introduced last week by Rep. Darrell Issa, R-Calif. and Scott Peters, D-Calif., would significantly raise the wages of workers who get H-1B visas. If the bill becomes law, the minimum wage paid to H-1B workers would rise to at least $100,000 annually, and be adjusted it for inflation. Right now, the minimum is $60,000. The sponsors say that would go a long way toward fixing some of the abuses of the H-1B program, which critics say is currently used to simply replace American workers with cheaper, foreign workers. In 2013, the top nine companies acquiring H-1B visas were technology outsourcing firms, according to an analysis by a critic of the H-1B program. (The 10th is Microsoft.) The thinking goes that if minimum H-1B salaries are brought closer to what high-skilled tech employment really pays, the economic incentive to use it as a worker-replacement program will drop off. "We need to ensure we can retain the world's best and brightest talent," said Issa in a statement about the bill. "At the same time, we also need to make sure programs are not abused to allow companies to outsource and hire cheap foreign labor from abroad to replace American workers." The H-1B program offers 65,000 visas each fiscal year, with an additional 20,000 reserved for foreign workers who have advanced degrees from US colleges and universities. The visas are awarded by lottery each year. Last year, the government received more than 236,000 applications for those visas.
Advertising

Drone Maker Lily Robotics Faked Promotional Video, Gets Sued For False Advertising and Misleading Business Practices (theregister.co.uk) 37

Dotnaught quotes a report from The Register: Lily Robotics says its decision on Thursday to shut down and return pre-order payments for a never-delivered drone, which came on the same day that San Francisco District Attorney George Gascon charged the company with false advertising and misleading business practices, was purely coincidental. According to a source familiar with the complaint filed against the company, Lily Robotics has known about the DA's investigation for several months. On the strength of a promotional video on YouTube in May 2015, embedded below, Lily Robotics raised more than $34 million in pre-order sales over the course of that year for a drone called Lily Camera. The flying gadget, when built, would be capable of being launched with a throw, following people, and recording them. But after pushing the delivery date back multiple times, Lily Robotics has yet to ship a single drone to its 60,000 prospective customers, according to the lawsuit filed against the company. In theory, Lily Robotics could face a fine of more than a hundred million dollars, depending upon the outcome of a trial, if it comes to that. The company faces potential fines for at least two business code violations subject to a civil penalty of $2,500 per violation, and there are some 60,000 individuals affected. In practice, however, such fines are usually orders of magnitude less, particularly if both sides agree on a settlement. The complaint against Lily, obtained by The Register, alleges that the company knowingly misled customers by creating a promotional video that purported to show video footage captured with a Lily drone prototype. "In fact, none of the video in the Promotional Video was shot by a Lily Camera," the complaint says. "Most notably, the POV footage used in the promotional video was filmed using a professional camera drone called the DJI Inspire." Among the Lily Camera prototypes present at the video shoot, the complaint says, the ones that could actually record video were able to do so because they had Go-Pro cameras mounted on them.
The Internet

Virginia 'Broadband Deployment Act' Would Kill Municipal Broadband Deployment (arstechnica.com) 193

Virginia lawmakers are considering a bill called the "Virginia Broadband Deployment Act," but instead of resulting in more broadband deployment, the legislation would make it more difficult for municipalities to offer Internet service. From a report: The Virginia House of Delegates legislation proposed this week by Republican lawmaker Kathy Byron would prohibit municipal broadband deployments except in very limited circumstances. Among other things, a locality wouldn't be allowed to offer Internet service if an existing network already provides 10Mbps download and 1Mbps upload speeds to 90 percent of potential customers. That speed threshold is low enough that it can be met by old DSL lines in areas that haven't received more modern cable and fiber networks. Even if that condition is met, a city or town would have to jump through a few hoops before offering service. The municipality would have to pay for a "comprehensive broadband assessment," and then issue a request for proposals giving for-profit ISPs six months to submit a plan for broadband deployment. After receiving proposals from private ISPs, the local government would have to determine whether providing grants or subsidies to a private ISP would be more cost-effective than building a municipal broadband network.
The Courts

US Appeals Court Revives Antitrust Lawsuit Against Apple (reuters.com) 120

iPhone app purchasers may sue Apple over allegations that the company monopolized the market for iPhone apps by not allowing users to purchase them outside the App Store, leading to higher prices, a U.S. appeals court ruled. From a report on Reuters: The 9th U.S. Circuit Court of Appeals ruling revives a long-simmering legal challenge originally filed in 2012 taking aim at Apple's practice of only allowing iPhones to run apps purchased from its own App Store. A group of iPhone users sued saying the Cupertino, California, company's practice was anticompetitive. Apple had argued that users did not have standing to sue it because they purchased apps from developers, with Apple simply renting out space to those developers. Developers pay a cut of their revenues to Apple in exchange for the right to sell in the App Store.
Medicine

Arizona Plans To Sue Theranos Over Faulty Blood Tests (techcrunch.com) 31

An anonymous reader shares a TechCrunch report: The Arizona attorney general is soliciting outside legal counsel to pursue a consumer fraud lawsuit against the beleaguered blood testing startup Theranos, according to a document posted on the state's procurement website. AZ's AG has so far declined to comment on any action, but the document contends Theranos may have defrauded customers in the state and the office is now seeking proposals to assist it in possible legal action "against Theranos, Inc. and its closely related subsidiaries for violations of the Arizona Consumer Fraud Act arising out of Theranos Inc.'s long-running scheme of deceptive acts and misrepresentations relating to the capabilities and operation of Theranos blood testing equipment." Theranos ran its consumer portion of the business in Arizona and even worked with the state government to change laws allowing consumers to request blood tests without a doctor's permission. But, as the document cites, a myriad bad test results, including those raised in a series of Wall street Journal articles, raised concerns with the attorney general's office.
Businesses

Amazon Just Got Slapped With a $1 Million Fine For Misleading Pricing (recode.net) 159

Some deals are too good to be true. And, for Amazon, they will cost the company. From a report on Recode: A Canadian enforcement agency announced today that Amazon Canada will pay a $1 million fine for what could be construed as misleading pricing practices. The investigation centered on the practice of Amazon displaying its prices compared to higher "list prices" -- suggested manufacturer prices (MSRPs) designed as marketing gimmicks to make people think they are getting a deal, even though it's often the case that no shopper ever pays that price. "The Bureau's investigation concluded that these claims created the impression that prices for items offered on www.amazon.ca were lower than prevailing market prices," Canada's Competition Bureau said in a statement. "The Bureau determined that Amazon relied on its suppliers to provide list prices without verifying that those prices were accurate."
United Kingdom

Regulators Criticize Banks For Lending Uber $1.15 Billion (venturebeat.com) 134

Federal regulators criticized several Wall Street banks over the handling of a $1.15 billion loan they helped arrange for Uber this past summer, reports Reuters, citing people with knowledge of the matter. From the report: Led by Morgan Stanley, the banks helped the ride-sharing network tap the leveraged loan market in July for the first time, persuading institutional investors to focus on its lofty valuation and established markets rather than its losses in countries such as China and India. The Federal Reserve and the Office of the Comptroller of the Currency (OCC), which are trying to reign in risky lending across Wall Street, took issue with the way in which the banks carved out Uber's more mature operations from the rest of the business, the people said.
Privacy

Why You Shouldn't Trust Geek Squad (networkworld.com) 389

An anonymous reader quotes a report from Network World: The Orange County Weekly reports that Best Buy's "Geek Squad" repair technicians routinely search devices brought in for repair for files that could earn them $500 reward as FBI informants. This revelation came out in a court case, United States of America v. Mark A. Rettenmaier. Rettenmaier is a prominent Orange County physician and surgeon who took his laptop to the Mission Viejo Best Buy in November 2011 after he was unable to start it. According to court records, Geek Squad technician John "Trey" Westphal found an image of "a fully nude, white prepubescent female on her hands and knees on a bed, with a brown choker-type collar around her neck." Westphal notified his boss, who was also an FBI informant, who alerted another FBI informant -- as well as the FBI itself. The FBI has pretty much guaranteed the case will be thrown out by its behavior, this illegal search aside. According to Rettenmaier's defense attorney, agents conducted two additional searches of the computer without obtaining necessary warrants, lied to trick a federal magistrate judge into authorizing a search warrant for his home, then tried to cover up their misdeeds by initially hiding records. Plus, the file was found in the unallocated "trash" space, meaning it could only be retrieved by "carving" with sophisticated forensics tools. Carving (or file carving) is defined as searching for files or other kinds of objects based on content, rather than on metadata. It's used to recover old files that have been deleted or damaged. To prove child pornography, you have to prove the possessor knew what he had was indeed child porn. There has been a court case where files found on unallocated space did not constitute knowing possession because it's impossible to determine who put the file there and how, since it's not accessible to the user under normal circumstances.
Businesses

Volkswagen Closes In on $4.3 Billion US Settlement in Diesel Scandal (bloomberg.com) 123

Volkswagen said it's closing in on a deal with U.S. authorities on a $4.3 billion settlement to resolve civil and criminal allegations stemming from its emissions-cheating scandal. From a report on Bloomberg: The agreement, which has yet to be finalized, would lead to a financial expense that exceeds current provisions, the German automaker said. It also includes a guilty plea to some criminal charges, strengthening compliance systems and installing an independent monitor for three years, the Wolfsburg, Germany-based automaker said Tuesday in a statement. VW's management and supervisory boards are scheduled to review the settlement today or Wednesday and may raise provisions related to the scandal, which currently total 18.2 billion euros ($19.2 billion). A final agreement also needs to be approved by U.S. courts. The U.S. Justice Department declined to comment on Volkswagen's statement.
Crime

FBI Arrests Volkswagen Executive On Charges Related To Dieselgate (cnet.com) 106

According to CNET, the FBI has arrested Volkswagen executive Oliver Schmidt over the weekend on charges of conspiracy to defraud the U.S. relating to the ongoing Dieselgate emissions scandal. From the report: Schmidt headed VW's regulatory compliance office in the U.S. from 2014 to March 2015. The FBI's official Criminal Complaint states that during that time VW employees -- Schmidt included -- knowingly installed secret "defeat device" software in 475,000 diesel cars in the U.S., hiding during emissions testing the fact that those cars emitted up to 40 times the legally allowable pollution levels when on the road. The complaint asserts that by knowingly installing this secret cheat software, Schmidt and VW conspired to defraud the U.S. by impairing and impeding the Environmental Protection Agency and violating the Clean Air Act, leading to the arrest on Saturday. Schmidt is due to appear before a Federal Court in Miami on Monday.
Businesses

Supreme Court Will Not Examine Tech Industry Legal Shield (reuters.com) 49

An anonymous reader shares a Reuters report: The U.S. Supreme Court on Monday let stand a lower court's decision that an online advertising site accused by three young women of facilitating child sex trafficking was protected by a federal law that has shielded website operators from liability for content posted by others. The refusal by the justices to take up the women's appeal in the case involving the advertising website Backpage.com marked a victory for the tech industry, which could have faced far-reaching consequences had the Supreme Court decided to limit the scope of the Communications Decency Act, passed by Congress in 1996 to protect free speech on the internet.
The Courts

A Federal Judge's Decision Could End Patent Trolling (computerworld.com) 168

"Forcing law firms to pay defendants' legal bills could undermine the business model of patent trolls," reports Computerworld. whoever57 writes: Patent trolls rely on the fact that they have no assets and, if they lose a case, they can fold the company that owned the patent and sued, thus avoiding paying any of the defendant's legal bills. However in a recent case, the judge told the winning defendant that it can claim its legal bills from the law firm. The decision is based on the plaintiff's law firm using a contract under which it would take a portion of any judgment, making it more than just counsel, but instead a partner with the plaintiff. This will likely result in law firms wanting to be paid up front, instead of offering a contingency-based fee.
The federal judge's decision "attacks the heart of the patent-troll system," according to the article, which adds that patent trolls are "the best evidence that pure evil exists."
Network

FTC Takes D-Link To Court Citing Lax Product Security, Privacy Perils (networkworld.com) 72

Reader coondoggie writes: The Federal Trade Commission has filed a complaint against network equipment vendor D-Link saying inadequate security in the company's wireless routers and Internet cameras left consumers open to hackers and privacy violations. The FTC, in a complaint filed in the Northern District of California charged that "D-Link failed to take reasonable steps to secure its routers and Internet Protocol (IP) cameras, potentially compromising sensitive consumer information, including live video and audio feeds from D-Link IP cameras." For its part, D-Link Systems said it "is aware of the complaint filed by the FTC." According to the FTC's complaint, D-Link promoted the security of its routers on the company's website, which included materials headlined "Easy to secure" and "Advance network security." But despite the claims made by D-Link, the FTC alleged, the company failed to take steps to address well-known and easily preventable security flaws such as "hard-coded" login credentials integrated into D-Link camera software -- such as the username âoeguestâ and the password âoeguestâ -- that could allow unauthorized access to the cameras' live feed, etc.
Transportation

Uber Drivers Deemed To Be Employees By Swiss Insurance Provider (techcrunch.com) 121

An anonymous shares a TechCrunch article: Uber has suffered another setback to its operational model in Europe after a Swiss insurance agency ruled that Uber drivers are employees, not freelance contractors as the company claims -- meaning it must pay social security contributions. This follows a similar ruling by a UK employment tribunal in October which found that the two Uber drivers bringing the claim were employed as workers by Uber, rather than being freelance contractors. Swiss broadcaster SRF says the Suva agency made its decision on the status of Uber drivers in the market on account of their inability to set price or payment type, and because they are threatened with consequences from Uber if they do not fulfill its requirements. The Suva described its decision on the classification as a "clear conclusion." The public sector insurer is involved in determining whether workers are freelance or not as a provider of compulsory on-the-job accident insurance which is required for certain high risk professions.
China

Apple Removes NYTimes App in China, Shows How Far It Is Willing To Go To Please Local Authority (theguardian.com) 174

Apple has removed the New York Times app from its store in China after a government request, in an example of how far the company will go to please the authorities in its third-largest market. From a report: China operates what is thought to be the largest internet censorship regime in the world, blocking thousands of foreign websites viewed as a threat by the ruling Communist party. Google, Twitter, Facebook Youtube and Instagram are all inaccessible. Apple removed the English and Chinese-language versions of the New York Times app on 23 December, although it was not immediately clear why. "We have been informed that the app is in violation of local regulations," said Carolyn Wu, an Apple spokeswoman. "As a result the app must be taken down off the China app store. When this situation changes the app store will once again offer the New York Times app for download in China."
Google

Department of Labor Sues Google Over Compensation Data (cnn.com) 346

An anonymous reader quotes a report from CNNMoney: The Department of Labor filed a lawsuit against Google on Wednesday to get the Internet company to turn over compensation data on its employees. The data request is part of a routine audit into Google's equal opportunity hiring practices, which is required because of the company's role as a federal contractor. Google provides cloud computing services to various federal agencies and the military. Google is obligated to let the government access records that show its hiring doesn't discriminate based on race, religion, sexual orientation, gender and more. According to the lawsuit, Google has repeatedly refused to provide names, contact information, job history and salary history details that the government has requested for its employees. The Labor Department is now requesting that a judge order all of Google's federal contracts canceled unless it complies with the data request. "Despite many opportunities to produce this information voluntarily, Google has refused to do so," Thomas M. Dowd, acting director for the Office of Federal Contract Compliance Programs, said in a statement. "We filed this lawsuit so we can obtain the information we need to complete our evaluation."

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