In Largest Known Data Breach Conspiracy, Five Suspects Indicted in New Jersey

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On July 25, 2013, the United States Attorney for the District of New Jersey announced indictments against five men alleging their participation in a global hacking and data breach scheme in which more than 160 million American and foreign credit card numbers were stolen from corporate victims, including retailers, financial institutions, payment processing firms, an airline, and NASDAQ.  The scheme is the largest of its kind ever prosecuted in the United States.

The Second Superseding Indictment alleges the defendants (four Russian nationals and one Ukrainian national) and other uncharged co-conspirators targeted corporate victims’ networks using “SQL [Structured Query Language] Injection Attacks,” meaning the hackers identified vulnerabilities in their victims’ databases and exploited those weaknesses to penetrate the networks.  Once the defendants had access to the networks, they used malware to create “back doors” to allow them continued access, and used their access to install “sniffers,” programs designed to identify, gather and steal data.

Once the defendants obtained the credit card information, they allegedly sold it to resellers all over the world, who in turn sold the information through online forums or directly to individuals and organizations.  The ultimate purchasers encoded the stolen information on blank cards and used those cards to make purchases or withdraw cash from ATMs.

The defendants allegedly used a number of methods to evade detection.  They used web-hosting services provided by one of the defendants, who unlike traditional internet service providers, did not keep records of users’ activities or share information with law enforcement.  The defendants also communicated through private and encrypted communication channels and tried to meet in person.  They also changed the settings on the victims’ networks in order to disable security mechanisms and used malware to circumvent security software.

Four of the defendants are charged with unauthorized access to computers (18 U.S.C. §§ 1030(a)(2)(C) and (c)(2)(B)(i)) and wire fraud (18 U.S.C. § 1343).  All of the defendants are charged with conspiracy to commit these crimes.

Two of the defendants have been arrested, with one in federal custody and the other awaiting an extradition hearing.  The other three defendants, two of whom have been charged in connection with hacking schemes, remain at large.

This conspiracy is noteworthy for its massive scale, and for the patience the hackers demonstrated in siphoning data from the networks.  The U.S. Attorney “conservatively” estimates more than 160 million credit card numbers were compromised in the attacks, and alleges that the hackers had access to many victims’ computer networks for more than a year.  Many prominent retailers were targets, including convenience store giant 7-Eleven, Inc.; multi-national French retailer Carrefour, S.A.; American department store chain JCPenney, Inc.; New England supermarket chain Hannaford Brothers Co.; and apparel retailer Wet Seal, Inc.  Payment processors were also heavily targeted, including one of the world’s largest credit card processing companies, Heartland Payment Systems, Inc., as well as European payment processor Commidea Ltd.; Euronet, Global Payment Systems and Ingenicard US, Inc. The hackers also targeted financial institutions such as Dexia Bank of Belgium, “Bank A” of the United Arab Emirates; the NASDAQ electronic securities exchange; and JetBlue Airways.  Damages are difficult to estimate with precision, but they total several hundred million dollars at least.  Just three of the corporate victims suffered losses totaling more than $300 million.

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Best Practices in Business to Business (B2B) Content Marketing [INFOGRAPHIC]

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Content provider ContentCrossroads.com recently developed an infographic about best practices for B2B marketers, including the most popular, most profitable and easiest content to develop for B2B marketers looking to gain the attention of prospects:

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Using Google Alerts to Get Topical News Quickly and Improve Your Content

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Time is of the essence when taking someone from prospect to client.

Obtaining quick notice about local accidents and injuries and/or defective products can provide a competitive advantage.

When an accident has just occurred and a victim is deciding whether or not to hire an attorney, you want to be easy to find. If you are aware of accidents or defective products and pharmaceuticals early, you may have the opportunity to get the inside track on a case.

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Posting alerts and information on your website, blog and Social Media may help your firm be more easily found and give you increased opportunities to get cases.

One tool to identify possible newsworthy topics to post on your site and Social Media platforms is Google Alerts. Every time something new is indexed by Google on your chosen topic, you will receive an e-mail. You can also set Google Alerts to email you a daily or weekly digest that includes either only the best topical matches or everything associated with your selected topic.

There are multiple ways to utilize Google Alerts. You can sign up for your target city/town names, state, etc. for local news. For practice area-targeted news, you can sign up to be alerted for variations of car accidents (and injuries), truck accidents (and injuries, major highways, etc.), train accidents (as well as major train names), hospitals (and hospital injuries, negligence) and drug or product names you wish to target, for example. There are endless possibilities; your usage will depend on what works best for your law firm and schedule. You can even sign up for Alerts on competitors’ names to follow what they are doing. You should set Alerts for your firm and attorneys. Doing this will help you manage your firm’s reputation by alerting you to good and bad news and give you time to respond appropriately.

To develop a list for your Google Alerts entries, ask your attorneys (or have a trusted attorney decide) which topics and locations each person will follow for news or blog information, then sign up for Google Alerts on those topics at http://www.google.com/alerts. When you spread keywords among different people, the time investment is less significant, especially if you schedule a fifteen-minute block each day to read through your alerts.

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Reporters Committee and Media Companies Back Google, Microsoft in Foreign Intelligence Surveillance Court (FISA)

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In a historic move for The Reporters Committee for Freedom of the Press (RCFP), the organization has filed an amicus brief with the secretive Foreign Intelligence Surveillance Court (FISA) to support the free-speech rights of Google and Microsoft. The July 15, 2013 action marks the first time RCFP has both filed with the FISA Court and backed the First Amendment interests of Internet companies.

The RCFP has provided free legal advice, resources, support, and advocacy to journalists for more than 40 years.  It is joined in the brief by the following media companies: The Associated Press, Bloomberg L.P., Dow Jones & Company, Inc., Gannett Co., Inc., Los Angeles Times, The McClatchy Company, National Public Radio, Inc., The New York Times Company, The New Yorker; The Newsweek/Daily Beast Company LLC, Reuters America LLC, Tribune Company, and the Washington Post.

In June, both Microsoft and Google filed petitions with the FISA Court seeking permission to publish data on national security requests they received and which had been authorized by the court. The same month the American Civil Liberties Union (ACLU) and the Media Freedom and Information Access Clinic at Yale Law School filed a brief with the FISA Court requesting that it publish its opinions on the meaning, scope, and constitutionality of Section 215 of the Patriot Act.

That section authorizes the government to obtain “any tangible thing” relevant to foreign-intelligence or terrorism investigations.  It was the legal basis for an April FISA Court order requiring Verizon to turn over “on an ongoing daily basis” to the National Security Agency all call logs “between the United States and abroad” or “wholly within the United States, including local telephone calls.” The order was revealed by U.K.-based newspaper The Guardian in early June.

The amicus filing by RCFP and the coalition of news-media organizations supports the ACLU arguments that the court should release decisions that interpret the FISA laws and create binding precedent. However, the RCFP  brief emphasizes a related point: that the public has a First Amendment right to know both about the secretive court’s core activities and receive information from Google and Microsoft. The brief describes the two companies as “speakers” with significant free-speech interests who want to provide the public with information about the government surveillance programs in which they have been required to participate.

“In addition to implicating their rights as speakers, the Google and Microsoft cases raise important concerns relating to the interests of the public in receiving information, an interest that the Supreme Court has long recognized as a separate component of the speech and press freedoms under the First Amendment,” the brief argues. “Where the communications providers are willing speakers, the public has a heightened interest in hearing their speech. That interest is heightened even more when the government is itself choosing to provide information to the public regarding issues central to the Google and Microsoft cases.”

The information Google and Microsoft want to share with the public is not prohibited by law, the media coalition states, and this information “will better explain the nature of their participation in these (government-surveillance) programs and correct popular misconceptions about the operation of key antiterrorism initiatives undertaken by the government.”

The brief continues that the issues raised in the petitions are vitally important to both national security and civil liberties: “They inevitably and rightfully are going to be the subject of public reporting and debate, and secrecy is preventing the public and the press from having even the rudimentary information needed for the kind of informed discussion that the country deserves.”

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Survey Says: Fortune 500 Disclosing Cyber Risks

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Ever since our 2013 prediction, an ever increasing number of public companies are adding disclosure related to cybersecurity and data breach risks to their public filings.  We previously analyzed how the nation’s largest banks have begun disclosing their cybersecurity risks.   Now, it appears that the rest of the Fortune 500 companies are catching on and including some level of disclosure of their cyber risks in response to the 2011 SEC Guidance.

The recently published Willis Fortune 500 Cyber Disclosure Report, 2013 (the “Report”), analyzes cybersecurity disclosure by Fortune 500 public companies.  The Report found that as of April 2013, 85% of Fortune 500 companies are following the SEC guidance and are providing some level of disclosure regarding cyber exposures.  Interestingly though, only 36% of Fortune 500 companies disclosed that such risk was “material”, “serious” or used a similar term, and only 2% of the companies used a stronger term, such as “critical”.

Following the SEC’s recommendation in its guidance, 95% of the disclosing companies mentionedspecific cyber risks that they face.  The top three cyber risks identified by those companies that disclosed cyber risks were:

1)      Loss or theft of confidential information (65%).

2)      Loss of reputation (50%).

3)      Direct loss from malicious acts (hackers, viruses, etc.) (48%).

Surprisingly, 15% of Fortune 500 companies indicated that they did not have the resources to protect themselves against critical attacks and only 52% refer to technical solutions that they have in place to defend against cyber risks.

The Report notes that despite the large number of Fortune 500 companies that acknowledge cyber risks in their disclosure, only 6% mentioned that they purchase insurance to cover cyber risks.  This number runs contrary to a survey published by the Chubb Group of Insurance Companies in which Chubb indicates that about 36% of public companies purchase cyber risk insurance.  For whatever reason, it appears that many of the Fortune 500 companies are simply not disclosing that they purchase cyber risk insurance as a means of protecting against cyber risk.

Almost two years after its issuance, the Report findings indicate that the 2011 SEC Guidance is in full swing and making its way into reality.  As more large companies disclose cyber risks in their public filings, this will continue to trickle down to the smaller companies that rely on those filings for precedent and guidance.  The Report provides a clear snapshot of where things stand in cyber risk disclosure by Fortune 500 public companies.  The scope of the Report is expected to expand to include Fortune 1000 companies, and it will be interesting to see how this data changes, if at all, when comprised of a larger pool of public companies.

Stay tuned!

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Starting an Online Business: Licensing Requirements

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Individuals interested in starting an online business are often confused or uninformed as to the licensing requirements for such businesses.  In many ways, an online business is like any “brick and mortar” store and the owner will probably be required to obtain certain licenses or permits to operate.

Federal Requirements

Business Licenses.  Most businesses do not require a federal business license or permit.  However, a business engaged in one of the following activities should contact the responsible federal agency to determine the requirements for doing business:  Investment Advising, Drug Manufacturing, Preparation of Meat Products, Broadcasting, Ground Transportation, Selling Alcohol, Tobacco, or Firearms.

Tax Identification Number.  A federal tax identification number, also known as an Employer Identification Number (EIN), is a federal identification number issued by the Internal Revenue Service to identify a business entity.  Nearly all businesses are required to have a tax identification number.

If a business is operated as a sole proprietorship, the owner may use his or her social security number in place of an EIN on all governmental forms and other official documents.  However, most small business advisors recommend using a federal tax identification number instead.

To obtain a federal tax identification number, a business owner should contact the nearest Local IRS Field Office or call the IRS Business and Specialty Tax Hotline at 800-829-4933.  The necessary form, IRS Form SS-4, can be downloaded directly from the Small Business Administration website.

State Requirements

Many states and local jurisdictions require a person to obtain a business license or permit before beginning business operations.  A business that operates without the required license or permit may be subjected to fines or may be barred from further business activity.  In some localities, a business operating out of a residence may require an additional permit.

While business licensing requirements vary from state-to-state, the most common types include:

·    Basic Business Operation License – a legal document issued by a local governmental authority that authorizes a person to conduct business within the boundaries of the municipality.  Many states have established small business assistance agencies to help small businesses comply with state requirements;

  • Fictitious Name Certificate – a document, usually filed with a state agency, which is required to operate a business using an assumed name or trade name (essentially, any name other than the full, formal name of the individual or company);
  • Home Occupation Permit – a permit which may be required to conduct business from a residence;
  • Tax Registration – if the state has a state income tax, a business owner must usually register and obtain an employer identification number from the state Department of Revenue or Treasury Department.  If the business engages in retail sales, the owner must usually obtain a sales tax license;
  • Special State-Issued Business Licenses or Permits – these permits may be required for a business that sell highly-regulated products like firearms, gasoline, liquor, or lottery tickets;
  • Zoning and Land Use Permits – may be required to develop a site or property for specific purposes
  • Employer Registrations – if the business has employees, the owner must usually make unemployment insurance contributions;

Additional state licenses may be required for regulated occupations such as building contractors, physicians, appraisers, accountants, barbers, real estate agents, auctioneers, private investigators, private security guards, funeral directors, bill collectors, and cosmetologists.

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Social Signals Rank Highest for Best Google Search Results

A new study from Searchmetrics shows that of 44 ranking factors, social signals account for 7 of the top 8 most highly associated with Google search results,  The chart below shows the ranking importance for the top 22:
google search ranking factors in the US

The top findings from the Searchmetrics Ranking Factors-Rank Correlation Study show the following SEO trends for 2013:

  • Keyword domains and keyword links are not nearly as relevant as in the past
  • Social signals directly correlate with better rankings
  • Good content continues to be key
  • The number of backlinks continues to be of high importance
  • On-page technology (URL length, keywords in page titles, page descriptions, H1 and H2 tags, etc.) is still an important basic

This latest study makes it clear that you can no longer ignore social media if you are interested in showing up in Google search results.

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Law Firm Search Engine Optimization (SEO): Five Common Mistakes to Avoid

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Long gone are the days when you could rely only on meta descriptions, title tags, and directory links to boost your firm’s website rankings in search engines. Thanks (or no thanks) to sites using destructive black-hat techniques, Google is on a mission to penalize those who try to win using spammy shortcuts, and reward sites that provide a great user experience.

Below is a list of 5 common mistakes in SEO that can be easily avoided:

Duplicate Content, Consultwebs1. Content that is engaging.

Search engines are designed to deliver the highest quality results to the user; therefore, your content should provide the answer to the visitor’s search query as well as a great user experience. If a user comes to your website and is not impressed with the content, they will quickly leave. When this happens, it indicates to search engines that your site is not offering supportive and relevant content based on that particular search query. You do not want this! You want users to visit your site and be engaged. Remember: write for your readers, not search engines.

2. Duplicate content

Duplicate content, in simple terms, is content that appears on more than one Web page. This is akin to a constantly skipping CD. In short, it’s annoying.

Google can easily determine when content is duplicated. One of the relatively new Google features is Google Authorship

To ensure they are offering users high value content, search engines take pages out of the rankings that are a duplication of other, higher authority pages. Also, duplicate content can lead to Google not trusting the overall quality of the site and penalizing its rankings.

Search engines want to provide users with a varied amount of results, not 20 pages with the same content. To ensure this, search engines omit pages that are a duplication of other, higher authority pages. Omitted pages don’t rank.

Additionally, if Google finds your duplicate content to be spammy, deceptive or an attempt to manipulate your rankings, Google may penalize your site by dropping its rankings.

3. Not using correct keywords

If a user cannot find your website, then what good is it?

If a website’s content is written about the term “vehicle wrecks,” but the majority of users are searching for “car accidents,” the website will miss out on a lot of potential business. It’s crucial to use the correct keyword targets to drive optimal traffic to your website.Target the right words by looking for terms most commonly used in searches. Our SEO specialists use a variety of tools, including Google’s keyword tool,to determine the words and phrases that have the highest search volume for your area of law. However, targeting only the most popular keywords may not improve your rankings. The higher the search volume for a keyword, the more websites you will compete with for rankings, so it’s vital to find a happy medium between the two. Don’t forget, however, that long tail searches (lesser used phrases words and phrases) obtain more relevant traffic than the highest volume words and phrases.

4. Over-optimization

Yes, there is such a thing as over-optimization!

Tactics such as excessive interlinking,keyword stuffed content and tags, and duplicate content within the same site are common over-optimization practices that can hurt your rankings.

Typically, anything over 3% keyword density is too much for a page. Links should only be placed on a page if they are relevant to the content posted on that same page. Remember the saying “too much of a good thing is bad?” Well, that pertains to SEO as well.

5. Assuming that SEO strategies are static. SEO is constantly changing!

There is no such thing as updating a site and never having to do so again. Google constantly changes its algorithm (examples: panda, penguin, so a website has to be reviewed occasionally. What works today may not work tomorrow; it’s important to stay up-to-date on SEO practices used on your site.

Also, by having a blog on your site and adding new posts regularly, you are providing fresh, new content. Google loves fresh content.

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Brain Spray and the Law

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Now that we can capture and use the signals emitted by human brains, we should consider whether brain signals are public property. If your face and voice become available to the public through use, is the same true for your thoughts, when they can be read by others?

Several recent news items have illustrated the progress humans have made in understanding the brain’s workings and harnessing an active brain for practical purposes. For example, this week, Duke University researcher Miguel Nicolelis used microchips and the internet to connect the brains of two mice on different continents, so that the thoughts of one can influence the actions of the other. Much of Dr Nicolelis’s work involves creating an exoskeleton that a paralysed person could operate with brain signals.

Similarly, University of Pittsburgh researcher Andrew Schwartz has been working since 2006 to find ways for a person to control a robotic arm with only brain signals. In February 2013, surgeons implanted four microchips in a paralysed patient’s brain that translate her brain’s signals into movement in robotic equipment. 60 Minutes and ABC News showed a video of the Pittsburgh patient feeding herself ice cream through brain signals to a robotic arm.

Such scientific work involving directed brain signals seems like science fiction, but the technology is available right now, and will only improve over time, and soon will be available commercially. Right now, the most rudimentary brain-driven technology can be purchased. High-end toy emporium Hammecher Schlemmer sells a “Telekinetic Obstacle Course” that use focused brain waves to manoeuvre a ball through an obstacle course. The game comes with a headband to read your brain signals and then wirelessly transmit those signals to the game’s air fan, which increases or decreases speed depending on your signal, blowing a foam ball around an obstacle course.

For example, Australian scientist and entrepreneur Tan Le, the founder of Emotiv Lifescience, has created a headset that serves as an interface for reading the wearer’s brainwaves, making it possible to control virtual and physical objects with directed thoughts. Eventually the headset will be conditioned for diagnostic use, but current products using the brain-interface headset for videogames, allowing users to drive virtual race cars with their concentrated thoughts.

Modern science has identified two types of “brain spray”, or signals that can be harnessed from outside of a person’s skull. The first is the directed thoughts described in the examples above, where certain voluntary brain signals, created by the subject concentrating on a goal or action, are read and translated by either a device worn by the subject or by microchips placed in the subject’s head. Research into this field, including US government funded research by DARPA, may lead to practical solutions allowing wounded veterans or other people with disabilities to grasp, drive, walk and talk again.

This type of brain spray will lead to legal concerns. For example, if a wounded soldier is offered a limb that responds to his thoughts, the company providing the limb will want to capture information from the electronics that capture brain signals, both for understanding and improving the equipment and for monitoring its use. Could a disabled person say “no” to the company who was offering a newly functional life, or would he be forced to sign away his brain spray for benefit of science and a company providing the equipment.

We all know that our signals from laptops and smartphones are captured by any number of companies – telephone signal providers, hardware manufacturers, app developers, banks and payment businesses – when we undertake actions or transactions over the internet. There is no reason that the same rules would not apply to our directed thoughts when our computing devices are controlled by focused brain signals. Google is already testing computing in the form of eyeglasses that could easily be equipped to read such brain spray and turn it into both action and data. Our thoughts would be available to our service providers.

The other brain spray that can be captured and turned to practical use is translation of brain activation signals currently read by functional magnetic resonance imagining machines (fMRI). These signals are more intrusive than the focused brain signals described above, because the fMRI provides pictures of what part of a human brain is activated by situations or stimuli. The fMRI pictures can easily be interpreted as triggers for various emotions. Because certain emotions trigger activity in specific parts of the brain, fMRI brain spray comes close to showing what the subject is feeling about the situation he is in.

Scientists currently read and interpret the emotional and logical meanings of fMRI signals from the human brain. In a 2008 article for Atlantic Monthly, Jeffrey Goldberg submitted himself to brain readings where scientists used MRI scanning to observe which areas of Goldberg’s brain reacted to certain images. The scientist showed Goldberg pictures of personal, political and cultural figures, recording his brain’s involuntary reactions with the MRI machine and noting when his brain activated in areas indicating affection and affinity for certain pictures (Goldberg’s wife and Bruce Springsteen) and revulsion at other pictures (Osama bin Laden).

This technology is attractive to corporations wanting to know how to stimulate your urge to buy their products and to see how you react to their advertising. However, do you want companies to know this much about you? Current law holds that if you have no reasonable expectation of privacy, then you cannot stop anyone from harvesting information from you. For example, when you are out on the public roads or when you walk up to an Automated Teller Machine at the bank, you are subjecting your appearance, your facial expressions and even your body itself, to scrutiny, photography, recordation and information capture by other people (or the bank) who share your public space.

If your appearance, your voice, and even your DNA is available to everyone in public (many US courts allow police to collect a suspect’s DNA in public places without a warrant), then why would this rule not extend to your brain spray when you enter the public area at a time that mobile fMRI technology or other brain signal capture technology is commercially available? Exposing your brain signals in public may be no different from exposing your face or your voice at the same time. Why would you have a reasonable expectation of privacy in your brain spray when you know it can be read by anyone with the right equipment? Many will argue that once your body is in a public space, then it can be read by the government or business in any way that they are able.

If there were limits to the use of this technology to read your exposed brain signals, situational rules would have to be developed. For example, when fMRI technology is cost-effective and practical to use from a distance, should you automatically submit to brain scanning just by walking into a certain store, casino, bank or government building? Will companies provide notice before scanning you? Will the scan data be linked to your credit card purchases to identify you, linked to the uniform identifier in your smartphone, or linked to RFID tags in the products you buy?

This technology also has national security applications for interpreting malice in sensitive situations. The government may be able to read a suspect’s brain activity to identify intent to act before the crime takes place, scanning banks and airports for signs of potentially criminal intent. But our criminal law is based on punishment for actions, not thoughts or intentions. Everyone has intemperate thoughts of anger, frustration and fantasies of outrageous exploits, but people manage to keep those ideas in their heads and not act on them. How much do you want the government to know about your unfiltered thoughts, once those thoughts can be read from outside your head?

Once the technology is widely available, anyone could use its invasive and interpretive powers. Employers may examine their workers for hostile thoughts toward management or sympathetic thoughts toward labour organisers. Colleges can probe their applicants’ level of enthusiasm for learning. The military could test for signs of homosexuality in recruits without asking or telling. Lawyers and investigators in divorce cases would have a new avenue to examine unfaithful behaviour. How quickly would enthusiastic opposition dig up the thought crimes of political candidates?

Our laws are inadequate for addressing these issues or protecting the privacy of our brain spray. Current privacy law in the United States would not prohibit harvesting brain spray and would not even require an individual’s permission to do so. The current American privacy laws relating to reading your biometric measurements and physical condition only apply to body signs taken for health care purposes.

If a hospital records your blood type or your DNA to test for disease, those records are private and you have the right to keep them from being used for other purposes. However, a reading of your body, including your DNA and your brain spray, is not protected from transmission or sale between companies if the reading was taken for security, marketing or intelligence purposes. The recorded thoughts showing your excitement at the perfect little black dress or those used to power your prosthetic arm may be transferred to anyone. The law leaves you vulnerable.

Brain spray is the ultimate prize in the larger security and privacy debate concerning what personal facts may be captured by commercial or governmental interests. Why bother asking you what you think about a politician or a product when a company can read it directly from your brain? Without legal change, finding out who really loves “mom”, apple pie and America could soon be as simple as a head examination.

Originally published March 22, 2013 in the International edition of Intellectual Property Magazine Online

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Federal Judge Finds that Apple Conspired to Raise E-book Prices

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On July 10, 2013, Judge Denise Cote of the Southern District of New York issued a 160-page opinion holding that Apple conspired with five book publishers to raise e-book prices and eliminate retail price competition in violation of Section 1 of the Sherman Act and several relevant state statutes.  United States v. Apple Inc., case number 12-civ-2826 (DLC).  The five publishers – Hatchett, HarperCollins, Macmillan, Penguin and Simon & Schuester – had all previously settled with the U.S. Department of Justice (DOJ).

The opinion stated that as Apple prepared to launch its iPad to the public and sought to concurrently enter the e-book market with its iBookstore, it met with the publishers and agreed to provide them with an “agency model” for e-book pricing that allowed the publishers to set the prices of the e-books themselves, subject to certain price caps.  Apple’s agreements with the publishers also included Most Favored Nation provisions which ensured that Apple could match its competitors’ prices and also provided an incentive for the publishers to lobby Amazon and other retailers to change their wholesale business models to agency models.  According to the court’s opinion, these agency model agreements caused e-book prices to increase, sometimes 50% or more for a specific title.

A separate trial for potential damages will be scheduled later.  Apple said it will appeal the ruling.

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