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Printer

Why You Should Care About the Supreme Court Case On Toner Cartridges (consumerist.com) 208

rmdingler quotes a report from Consumerist: A corporate squabble over printer toner cartridges doesn't sound particularly glamorous, and the phrase "patent exhaustion" is probably already causing your eyes to glaze over. However, these otherwise boring topics are the crux of a Supreme Court case that will answer a question with far-reaching impact for all consumers: Can a company that sold you something use its patent on that product to control how you choose to use after you buy it? The case in question is Impression Products, Inc v Lexmark International, Inc, came before the nation's highest court on Tuesday. Here's the background: Lexmark makes printers. Printers need toner in order to print, and Lexmark also happens to sell toner. Then there's Impression Products, a third-party company makes and refills toner cartridges for use in printers, including Lexmark's. Lexmark, however, doesn't want that; if you use third-party toner cartridges, that's money that Lexmark doesn't make. So it sued, which brings us to the legal chain that ended up at the Supreme Court. In an effort to keep others from getting a piece of that sweet toner revenue, Lexmark turned to its patents: The company began selling printer cartridges with a notice on the package forbidding reuse or transfer to third parties. Then, when a third-party -- like Impression -- came around reselling or recycling the cartridges, Lexmark could accuse them of patent infringement. So far the courts have sided with Lexmark, ruling that Impression was using Lexmark's patented technology in an unauthorized way. The Supreme Court is Impression's last avenue of appeal. The question before the Supreme Court isn't one of "can Lexmark patent this?" Because Lexmark can, and has. The question is, rather: Can patent exhaustion still be a thing, or does the original manufacturer get to keep having the final say in what you and others can do with the product? Kate Cox notes via Consumerist that the Supreme Court ruling is still likely months away. However, she has provided a link to the transcript of this week's oral arguments (PDF) in her report and has dissected it to see which way the justices are leaning on the issue.
Businesses

South Korea Finds Qualcomm Prevented Samsung From Selling Its Exynos Processors (digitaltrends.com) 12

According to the South Korea Trade Commission (SKTC), Qualcomm prevented Samsung from selling its Exynos processors to various third-party phone manufacturers. "The Commission's report claims that Qualcomm abused its standard-essential patents -- which define technical standards like Wi-Fi and 4G -- to prevent Samsung from selling its modems, integrated processors, and other chips to smartphone makers like LG, Huawei, Xiaomi, and others," reports Digital Trends. "The Commission reportedly threatened to file suit against Samsung, which had agreed to license the patents for an undisclosed sum, if the South Korean electronics maker began competing against it in the mobile market." From the report: That bullying ran afoul of the South Korea Trade Commission's rules, which require that standard-essential patents be licensed on fair, reasonable, and non-discriminatory (FRAND) terms. "Samsung Electronics has been blocked from selling its modem chips to other smartphone manufacturers due to a license deal it signed with Qualcomm," the commissioners wrote. The report provides legal justification for the $853 million fine the SKTC placed on Qualcomm in December for "anti-competitive practices." Qualcomm intends to appeal. "[We] strongly disagree with the KFTC's announced decision, which Qualcomm believes is inconsistent with the facts and the law, reflects a flawed process, and represents a violation of due process rights owed American companies" under an applicable agreement between the U.S. and South Korea.
Patents

Judge: eBay Can't Be Sued Over Seller Accused of Patent Infringement (arstechnica.com) 35

An anonymous reader quotes a report from Ars Technica: It's game over for an Alabama man who claims his patent on "Carpenter Bee Traps" is being infringed by competing products on eBay. Robert Blazer filed his lawsuit in 2015, saying that his U.S. Patent No. 8,375,624 was being infringed by a variety of products being sold on eBay. Blazer believed the online sales platform should have to pay him damages for infringing his patent. A patent can be infringed when someone sells or "offers to sell" a patented invention. At first, Blazer went through eBay's official channels for reporting infringement, filing a "Notice of Claimed Infringement," or NOCI. At that point, his patent hadn't even been issued yet and was still a pending application, so eBay told him to get back in touch if his patent was granted. On February 19, 2013, Blazer got his patent and ultimately sent multiple NOCI forms to eBay. However, eBay wouldn't take down any items, in keeping with its policy of responding to court orders of infringement and not mere allegations of infringement. In 2015, Blazer sued, saying that eBay had directly infringed his patent and also "induced" others to infringe. That lawsuit can't move forward, following an opinion (PDF) published this week by U.S. District Judge Karon Bowdre. The judge found that eBay lacked any knowledge of actual infringement and rejected Blazer's argument that eBay was "willfully blind" to infringement of Blazer's patent. The opinion was first reported yesterday by The Recorder (registration required).
Communications

T-Mobile Kicks Off Industry Robocall War With Network-Level Blocking and ID Tools (venturebeat.com) 76

T-Mobile is among the first U.S. telecom companies to announce plans to thwart pesky robocallers. From a report on VentureBeat: The move represents part of an industry-wide Robocall Strike Force set up by the Federal Communications Commission (FCC) last year to combat the 2 billion-plus automated calls U.S. consumers deal with each month. Other key members of the group include Apple, Google, Microsoft, and Verizon. T-Mobile's announcement comes 24 hours after the FCC voted to approve a new rule that would allow telecom companies to block robocallers who use fake caller ID numbers to conceal their true location and identity. From a report on WashingtonPost: The Federal Communications Commission on Thursday proposed new rules (PDF) that would allow phone companies to target and block robo-calls coming from what appear to be illegitimate or unassigned phone numbers. The rules could help cut down on the roughly 2.4 billion automated calls that go out each month -- many of them fraudulent, according to FCC Chairman Ajit Pai. "Robo-calls are the No. 1 consumer complaint to the FCC from members of the American public," he said, vowing to halt people who, in some cases, pretend to be tax officials demanding payments from consumers, or, in other cases, ask leading questions that prompt consumers to give up personal information as part of an identity theft scam.
Businesses

Amazon Wins $1.5 Billion Tax Dispute Over IRS (reuters.com) 76

Amazon.com on Thursday won a more than $1.5 billion tax dispute with the Internal Revenue Service over transactions involving a Luxembourg unit more than a decade ago. From a report: Judge Albert Lauber of the U.S. Tax Court rejected a variety of IRS arguments, and found that on several occasions the agency abused its discretion, or acted arbitrarily or capriciously. Amazon's ultimate tax liability from the decision was not immediately clear. The world's largest online retailer has said the case involved transactions in 2005 and 2006, and could boost its federal tax bill by $1.5 billion plus interest. It also said a loss could add "significant" tax liabilities in later years. Amazon made just $2.37 billion of profit in 2016, four times what it made in the four prior years combined, on revenue of $136 billion.
Cellphones

Feds: We're Pulling Data From 100 Phones Seized During Trump Inauguration (arstechnica.com) 226

An anonymous reader quotes a report from Ars Technica: In new filings, prosecutors told a court in Washington, DC that within the coming weeks, they expect to extract all data from the seized cellphones of more than 100 allegedly violent protesters arrested during the inauguration of President Donald Trump. Prosecutors also said that this search is validated by recently issued warrants. The court filing, which was first reported Wednesday by BuzzFeed News, states that approximately half of the protestors prosecuted with rioting or inciting a riot had their phones taken by authorities. Prosecutors hope to uncover any evidence relevant to the case. Under normal judicial procedures, the feds have vowed to share such data with defense attorneys and to delete all irrelevant data. "All of the Rioter Cell Phones were locked, which requires more time-sensitive efforts to try to obtain the data," Jennifer Kerkhoff, an assistant United States attorney, wrote. Such phone extraction is common by law enforcement nationwide using hardware and software created by Cellebrite and other similar firms. Pulling data off phones is likely more difficult under fully updated iPhones and Android devices.
Australia

Australia Shelves Copyright Safe Harbor For Google, Facebook (torrentfreak.com) 25

In a surprise setback for companies such as Google and Facebook that leverage user-generated content, Australia has dropped plans to extend its copyright safe harbor provisions. From a report: In a blow to Google, Facebook and others, the government dropped the amendments before they were due to be introduced to parliament yesterday. That came as a big surprise, particularly as Prime Minister Malcolm Turnbull had given the proposals his seal of approval just last week. "Provisions relating to safe harbor were removed from the bill before its introduction to enable the government to further consider feedback received on this proposal whilst not delaying the passage of other important reforms," Communications Minister Mitch Fifield said in a statement. There can be little doubt that intense lobbying from entertainment industry groups played their part, with a series of articles published in News Corp-owned The Australian piling on the pressure in favor of rightsholders.
Businesses

A Lithuanian Phisher Tricked Two Big US Tech Companies Into Wiring Him $100 Million (theverge.com) 129

According to a recent indictment from the U.S. Department of Justice, a 48-year-old Lithuanian scammer named Evaldas Rimasauskas managed to trick two American technology companies into wiring him $100 million. He was able to perform this feat "by masquerading as a prominent Asian hardware manufacturer," reports The Verge, citing court documents, "and tricking employees into depositing tens of millions of dollars into bank accounts in Latvia, Cyprus, and numerous other countries." From the report: What makes this remarkable is not Rimasauskas' particular phishing scam, which sounds rather standard in the grand scheme of wire fraud and cybersecurity exploits. Rather, it's the amount of money he managed to score and the industry from which he stole it. The indictment specifically describes the companies in vague terms. The first company is "multinational technology company, specializing in internet-related services and products, with headquarters in the United States," the documents read. The second company is a "multinational corporation providing online social media and networking services." Both apparently worked with the same "Asia-based manufacturer of computer hardware," a supplier that the documents indicate was founded some time in the late '80s. What's more important is that representatives at both companies with the power to wire vast sums of money were still tricked by fraudulent email accounts. Rimasauskas even went so far as to create fake contracts on forged company letterhead, fake bank invoices, and various other official-looking documents to convince employees of the two companies to send him money. Rimasauskas has been charged with one count of wire fraud, three counts of money laundering, and aggravated identity theft. In other words, he faces serious prison time of convicted -- each charge of wire fraud and laundering carries a max sentence of 20 years. The court documents don't reveal the names of the two companies. Though, one could surely think of a few candidates that would fit the descriptions provided in the court documents.
DRM

W3C Erects DRM As Web Standard (theregister.co.uk) 240

The World Wide Web Consortium (W3C) has formally put forward highly controversial digital rights management as a new web standard. "Dubbed Encrypted Media Extensions (EME), this anti-piracy mechanism was crafted by engineers from Google, Microsoft, and Netflix, and has been in development for some time," reports The Register. "The DRM is supposed to thwart copyright infringement by stopping people from ripping video and other content from encrypted high-quality streams." From the report: The latest draft was published last week and formally put forward as a proposed standard soon after. Under W3C rules, a decision over whether to officially adopt EME will depend on a poll of its members. That survey was sent out yesterday and member organizations, who pay an annual fee that varies from $2,250 for the smallest non-profits to $77,000 for larger corporations, will have until April 19 to register their opinions. If EME gets the consortium's rubber stamp of approval, it will lock down the standard for web browsers and video streamers to implement and roll out. The proposed standard is expected to succeed, especially after web founder and W3C director Sir Tim Berners-Lee personally endorsed the measure, arguing that the standard simply reflects modern realities and would allow for greater interoperability and improve online privacy. But EME still faces considerable opposition. One of its most persistent vocal opponents, Cory Doctorow of the Electronic Frontier Foundation, argues that EME "would give corporations the new right to sue people who engaged in legal activity." He is referring to the most recent controversy where the W3C has tried to strike a balance between legitimate security researchers investigating vulnerabilities in digital rights management software, and hackers trying to circumvent content protection. The W3C notes that the EME specification includes sections on security and privacy, but concedes "the lack of consensus to protect security researchers remains an issue." Its proposed solution remains "establishing best practices for responsible vulnerability disclosure." It also notes that issues of accessibility were ruled to be outside the scope of the EME, although there is an entire webpage dedicated to those issues and finding solutions to them.
Businesses

Patents Are A Big Part Of Why We Can't Own Nice Things (eff.org) 242

An anonymous reader shares an EFF article: Today, the Supreme Court heard arguments in a case that could allow companies to keep a dead hand of control over their products, even after you buy them. The case, Impression Products v. Lexmark International, is on appeal from the Court of Appeals for the Federal Circuit, who last year affirmed its own precedent allowing patent holders to restrict how consumers can use the products they buy. That decision, and the precedent it relied on, departs from long established legal rules that safeguard consumers and enable innovation. When you buy something physical -- a toaster, a book, or a printer, for example -- you expect to be free to use it as you see fit: to adapt it to suit your needs, fix it when it breaks, re-use it, lend it, sell it, or give it away when you're done with it. Your freedom to do those things is a necessary aspect of your ownership of those objects. If you can't do them, because the seller or manufacturer has imposed restrictions or limitations on your use of the product, then you don't really own them. Traditionally, the law safeguards these freedoms by discouraging sellers from imposing certain conditions or restrictions on the sale of goods and property, and limiting the circumstances in which those restrictions may be imposed by contract. But some companies are relentless in their quest to circumvent and undermine these protections. They want to control what end users of their products can do with the stuff they ostensibly own, by attaching restrictions and conditions on purchasers, locking down their products, and locking you (along with competitors and researchers) out. If they can do that through patent law, rather than ordinary contract, it would mean they could evade legal limits on contracts, and that any one using a product in violation of those restrictions (whether a consumer or competitor) could face harsh penalties for patent infringement.
AI

Who's Liable For Decisions AI and Robotics Make? (betanews.com) 179

An anonymous reader shares a BetaNews article: Reuters news agency reported on February 16 that "European lawmakers called [...] for EU-wide legislation to regulate the rise of robots, including an ethical framework for their development and deployment and the establishment of liability for the actions of robots including self-driving cars." The question of determining "liability" for decision making achieved by robots or artificial intelligence is an interesting and important subject as the implementation of this technology increases in industry, and starts to more directly impact our day to day lives. Indeed, as application of Artificial Intelligence and machine learning technology grows, we are likely to witness how it changes the nature of work, businesses, industries and society. And yet, although it has the power to disrupt and drive greater efficiencies, AI has its obstacles: the issue of "who is liable when something goes awry" being one of them. Like many protagonists in industry, Members of the European Parliament (MEPs) are trying to tackle this liability question. Many of them are calling for new laws on artificial intelligence and robotics to address the legal and insurance liability issues. They also want researchers to adopt some common ethical standards in order to "respect human dignity."
United States

'Sorry, I've Forgotten My Decryption Password' is Contempt Of Court, Pal - US Appeal Judges (theregister.co.uk) 518

Thomas Claburn, reporting for The Register: The US Third Circuit Court of Appeals today upheld a lower court ruling of contempt against a chap who claimed he couldn't remember the password to decrypt his computer's hard drives. In so doing, the appeals court opted not to address a lower court's rejection of the defendant's argument that being forced to reveal his password violated his Fifth Amendment protection against self-incrimination. In the case under review, the US District Court for the Eastern District of Pennsylvania held the defendant (referred to in court documents as "John Doe" because his case is partially under seal) in contempt of court for willfully disobeying and resisting an order to decrypt external hard drives that had been attached to his Mac Pro computer. The defendant's computer, two external hard drives, an iPhone 5S, and an iPhone 6 Plus had been seized as part of a child pornography investigation.
Businesses

Two More Executives Are Leaving Uber, Drivers May Unionize (nytimes.com) 200

First the resignations. "The beliefs and approach to leadership that have guided my career are inconsistent with what I saw and experienced at Uber," the company's former president told Recode on Sunday, announcing his resignation. "The departures add to the executive exodus from Uber this year," writes The New York Times. An anonymous reader quotes their report. Brian McClendon, vice president of maps and business platform at Uber, also plans to leave at the end of the month... Raffi Krikorian, a well-regarded director in Uber's self-driving division, left the company last week, while Gary Marcus, who joined Uber in December after Uber acquired his company, left this month. Uber also asked for the resignation of Amit Singhal, a top engineer who failed to disclose a sexual harassment claim against him at his previous employer, Google, before joining Uber. And Ed Baker, another senior executive, left this month as well.
Jones left Uber after less than six months, though McClendon's departure is said to be more amicable. "Mr. McClendon, in a statement, said he was returning to his hometown, Lawrence, Kansas, after 30 years away. 'This fall's election and the current fiscal crisis in Kansas is driving me to more fully participate in our democracy -- and I want to do that in the place I call home."

In other news, the Teamsters labor union plans to start organizing Uber's drivers into a union, after a Washington judge rejected Uber's attempt to overturn a right-to-unionize ordinance passed by the city of Seattle.
Crime

Company's Former IT Admin Accused of Accessing Backdoor Account 700+ Times (bleepingcomputer.com) 63

An anonymous reader writes: "An Oregon sportswear company is suing its former IT administrator, alleging he left backdoor accounts on their network and used them more than 700 times to search for information for the benefit of its new employer," reports BleepingComputer. Court papers reveal the IT admin left to be the CTO at one of the sportswear company's IT suppliers after working for 14 years at his previous employer. For more than two years, he's [allegedly] been using an account he created before he left to access his former colleagues' emails and gather information about the IT services they might need in the future. The IT admin was fired from his CTO job after his new employer found out what he was doing.
One backdoor, which enabled both VPN and VDI connections to the company's network, granted access to a "jmanming" account for a non-existent employee named Jeff Manning...
Canada

Court Fines Canadian $26,500 For 'Unconscionably Stupid' Balloon-Chair Flight (www.cbc.ca) 101

In 2015, 27-year-old Daniel Boria tied over 100 helium balloons to a lawn chair and floated 2.5 miles above Calgary, "getting in the way of commercial aircraft and putting hundreds of lives at risk," reports the CBC. An anonymous reader quotes their report: Boria was ordered to pay $26,500 [USD $18,822] in fines when he was sentenced Friday, after pleading guilty in December to dangerous operation of an aircraft for the 2015 stunt... In handing down the sentence provincial court Judge Bruce Fraser called Boria's stunt "dumb and dangerous" and "unconscionably stupid. There was nothing fantastic, fun or exhilarating about it... There is no precedent for so foolish an escapade"...

On July 5, 2015, Boria tied $13,000 worth of industrial-sized balloons to a Canadian Tire lawn chair and took to the skies to promote his cleaning company, with the plan to parachute into the Calgary Stampede chuckwagon races. Uncooperative weather forced him to bail early, and winds pushed his landing to Ogden Road, where he was arrested by police who had been monitoring Boria since he was spotted above the Stampede grounds... During the time he was in the air, 24 airplanes took off and landed in Calgary.

The judge agreed that $20,000 of the fine should be donated to a charity of Boria's choice, and later Boria "said the stunt was worthwhile and he has no regrets."
Crime

Judge Grants Search Warrant For Everyone Who Searched a Crime Victim's Name On Google (startribune.com) 101

Hennepin County District Judge Gary Larson has issued a search warrant to Edina, Minnesota police to collect information on people who searched for variations of a crime victim's name on Google from Dec. 1 through Jan. 7. Google would be required to provide Edina police with basic contact information for people targeted by the warrant, as well as Social Security numbers, account and payment information, and IP and MAC addresses. StarTribune reports: Information on the warrant first emerged through a blog post by public records researcher Tony Webster. Edina police declined to comment Thursday on the warrant, saying it is part of an ongoing investigation. Detective David Lindman outlined the case in his application for the search warrant: In early January, two account holders with SPIRE Credit Union reported to police that $28,500 had been stolen from a line of credit associated with one of their accounts, according to court documents. Edina investigators learned that the suspect or suspects provided the credit union with the account holder's name, date of birth and Social Security number. In addition, the suspect faxed a forged U.S. passport with a photo of someone who looked like the account holder but wasn't. Investigators ran an image search of the account holder's name on Google and found the photo used on the forged passport. Other search engines did not turn up the photo. According to the warrant application, Lindman said he had reason to believe the suspect used Google to find a picture of the person they believed to be the account holder. Larson signed off on the search warrant on Feb. 1. According to court documents, Lindman served it about 20 minutes later.
Crime

FBI Arrests Alleged Attacker Who Tweeted Seizure-Inducing Strobe at a Writer (theverge.com) 151

From a report on The Verge: An arrest has been made three months after someone tweeted a seizure-inducing strobe at writer and Vanity Fair contributing editor Kurt Eichenwald. The Dallas FBI confirmed the arrest to The Verge today, and noted that a press release with more details is coming. Eichenwald, who has epilepsy, tweeted details of the arrest and said that more than 40 other people also sent him strobes after he publicized the first attack. Their information is now with the FBI, he says. It isn't clear whether these "different charges" relate to similar online harassment incidents or something else entirely.
The Courts

Lack of Oxford Comma Could Cost Maine Company Millions in Overtime Dispute (nytimes.com) 331

Daniel VIctor, writing for The New York Times: A class-action lawsuit about overtime pay for truck drivers hinged entirely on a debate that has bitterly divided friends, families and foes: The dreaded -- or totally necessary -- Oxford comma, perhaps the most polarizing of punctuation marks. What ensued in the United States Court of Appeals for the First Circuit, and in a 29-page court decision handed down on Monday, was an exercise in high-stakes grammar pedantry that could cost a dairy company in Portland, Me., an estimated $10 million. In 2014, three truck drivers sued Oakhurst Dairy, seeking more than four years' worth of overtime pay that they had been denied (Editor's note: the link could be paywalled; alternate link from a syndicated partner). Maine law requires workers to be paid 1.5 times their normal rate for each hour worked after 40 hours, but it carves out some exemptions. [...] The debate over commas is often a pretty inconsequential one, but it was anything but for the truck drivers. Note the lack of Oxford comma -- also known as the serial comma -- in the following state law, which says overtime rules do not apply to: "The canning, processing, preserving, freezing, drying, marketing, storing, packing for shipment or distribution of: (1) Agricultural produce; (2) Meat and fish products; and (3) Perishable foods. Oakhurst Dairy is arguing that "packing for shipment" and "distribution" are two different items in the list. But that's not how the truck drivers are seeing it. They argue that "packing for shipment or distribution" is one item.
Cellphones

Class-Action Lawsuit Targets LG Over Legendary G4, V10 Bootloop Issues (arstechnica.com) 31

For those affected by LG's infamous bootloop issue with the G4 and V10, you might find some joy in this: several (upset) owners of these devices have lodged a proposed class-action lawsuit in a California federal court. They claim that a repeating bootloop issue "renders the phones inoperable and unfit for any use." In other words: bricked. Ars Technica reports: Thousands of complaints about the G4 have been highlighted on Twitter, Reddit, and YouTube. There was even an online petition to "launch a replacement program for defective LG G4s." Not to be outdone, the V10 has been the subject of many online complaints as well. One of the plaintiffs in the lawsuit (PDF) filed Wednesday said that LG replaced his G4 two times and that his third G4 constantly freezes. The new phone, says the suit, is "manifesting signs of the bootloop defect and is unmerchantable." A year ago, LG acknowledged the problem with the G4 and said it was the result of "loose contact between components." The company began offering replacement devices and fixes. The suit said that even after the January 2016 announcement, "LG continued to manufacture LG Phones with the bootloop defect." The suit claims that both models' processors were inadequately soldered to the motherboard, rendering them "unable to withstand the heat." Initially, the phones begin to freeze, suffer slowdowns, overheat, and reboot at random. Eventually, the suit says, they fail "entirely."
Google

Judge Rejects Google Deal Over Email Scanning (fortune.com) 48

A federal judge in San Francisco slammed a legal settlement that proposed to pay $2.2 million to lawyers, but nothing to consumers who had the contents of their email scanned by Google without their knowledge or permission. From a report: In a 6-page order, Judge Lucy Koh told Google and class action attorneys the proposed settlement was insufficient, in part because it failed to clearly tell consumers what the search giant had done. "This notice is difficult to understand and does not clearly disclose the fact that Google intercepts, scans and analyzes the content of emails sent by non-Gmail users to Gmail users for the purpose of creating user profiles of the Gmail users to create targeted advertising for the Gmail users," Koh wrote.

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