Indian Intelligence Officials Want To Block Skype

from the as-if-there-aren't-alternatives dept

Skype and other VoIP tools have become quite useful for reaching people around the world. I know that, recently, when my wife happened to be in India on a trip, being able to call her via Skype was incredibly useful. It's a good thing she's back now, as reader Shailendra alerts us to the news that Indian intelligence officials are once again asking the government to consider banning Skype. The reason I say "once again" is that I remember similar proposals from a few years back that went nowhere. The official concern, of course, is that "bad people" may use Skype to communicate in a way that can't easily be tapped or traced. But that's going to happen no matter what. If Skype is banned, people will still figure out a way to use it, or they'll migrate to some other tool. Banning Skype or other VoIP providers isn't fixing a problem, it's pretending a problem doesn't really exist.

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Skype Tech Licensing Soap Opera Continues: Founders Sue eBay, New Buyers For Copyright Infringement

from the someone-screwed-up-big-time dept

Over the summer, we wrote about the bizarre and protracted legal dispute concerning whether or not eBay actually had the rights to the core technology in Skype. Skype's founders, Janus Friis and Niklas Zennstrom, claim that they retained the right to the core technology in a separate company called Joltid, and that they terminated eBay's license to that technology. There's a legal battle already underway about that, but apparently that's not enough, as Joltid has now filed a separate copyright infringement lawsuit against eBay and the list of investors who recently bought out a big chunk of Skype from eBay. The thing that still amazes me is that pretty much everyone realized right away that it made no sense for eBay to buy Skype. That was a bad idea from the very beginning. But finding out that the purchase price didn't even include the core technology, and that Joltid had the ability to revoke the license, makes the purchase almost monumentally bad.

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Proof Of Concept Skype Wiretapping Malware Released

from the not-so-secret-any-more dept

One of the benefits of Skype was that, due to the way it works (P2P, encrypted communications), it made it much more difficult to do any sort of wiretap. This has upset various governments who are used to having the ability to wiretap any voice communications. However, it's never impossible. The most obvious way is to simply create some sort of trojan that gets installed on one user's computer that has audio recording abilities -- and Symantec is going around hyping up the fact that source code for just such a trojan has been released. Of course, even Symantec admits that there's no evidence of the code actually being used in the wild -- it seems more like a proof-of-concept. On top of that, it's hardly a new idea. Nearly a year ago, we talked about how German authorities were accused of using something that sounded quite similar. Still, it is a good reminder that even if you're using an encrypted Skype call, at either end of that call, the audio is decrypted, and a well-placed recording system can capture it.

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Skype Founders Claim eBay No Longer Has A Right To Skype's Core Tech

from the this-is-going-to-get-messy dept

As you know, eBay bought Skype for a ton of money a few years back, without having any real plan for what to do with it. There were no synergies between the two, and about the best that can be said for eBay's ownership of Skype is that they didn't kill it (though, frankly, the new UI is so bad, it makes me wonder what they were thinking) and let it continue to grow organically. Earlier this year, eBay finally announced plans to spin off Skype. Fair enough. It can probably do a lot more outside of eBay than from within. However, it turns out that there may be a bit of a legal hitch, as Skype's founders claim that eBay/Skype no longer have the legal rights to Skype's underlying technology. Apparently, the claim is that Niklas Zennstrom and Janus Friis and a separate company they ran, Joltid, only licensed the underlying technology to eBay/Skype for a limited time -- and that deal has now concluded. The two companies are scheduled to fight this out in court.

There are a few interesting asides to all of this. First, it reminds me of how Zennstrom and Friis ended up in another lawsuit a few years back, also involving questions about licensing the core underlying technology of Skype. There's a lot of background here, and not all the details are clear (at all), but that original case involved the claim that Zennstrom and Friis used the same core underlying technology that they used to build Kazaa to build Skype. Way back, Zennstrom and Friis had created two operations: Kazaa and FastTrack, which created the underlying tech used in Kazaa. However, they also licensed FastTrack to a company called Streamcast, that made a product called Morpheus that competed with Kazaa in the file sharing space. Got that?

The folks at Streamcast insist that part of their contract with FastTrack was that they had a right of first refusal on buying the underlying technology. But then, all sorts of stuff happened, with Kazaa being sold off to a group in the South Pacific, but Zennstrom and Friis supposedly retaining some core technology which (Streamcast claims) they used to build Skype. Then, once Skype sold, Streamcast claimed that the whole thing was an elaborate shell game, but in selling the Skype underlying technology, Streamcast claimed that Zennstrom and Friis violated their agreement on having a right of first refusal on purchasing the technology.

Yet, now I'm left wondering if that original claim was true. If the current claim is that Joltid still "owns" the original technology and Skype/eBay only licensed it, then the technology itself might never have actually been sold (unless, we're talking about two separate core underlying technologies... which is possible).

Still... the bigger question? How the hell did eBay make a deal and not make sure it had either purchased (entirely) the core underlying technology or had a guaranteed perpetual license that couldn't be revoked? The eBay Skype purchase was bad enough already. Could it be even more ridiculous in that eBay didn't even properly purchase the technology in question? It seems preposterous to believe that a company could screw up an acquisition that monumentally, so you have to wonder if it's actually true.

In the meantime, since there are questions about how eBay can rebuild Skype's underlying core technology without violating the many patents in the space, it makes you wonder if eBay may be forced to simply buy someone else's technology. Maybe it's time to call up the Gizmo Project (which has built a very Skype-like product) to see what they're up to these days. Though, can you imagine eBay needing to buy another company just to power Skype so it can be spun off again? Yikes!

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T-Mobile Germany Tries The Jedi Mind Trick With Mobile Skype

from the no-it-isn't-yes-it-is-okay-it-is dept

The Skype app for the iPhone proved to be an instant hit, topping App Store download charts around the world, including Germany, where T-Mobile reminded its customers that using Skype, or any other VoIP app, could get them kicked off its network. The operator now says it's "looking at different ways of dealing with VoIP", perhaps including offering some special plan where users would have to pay some fee to use VoIP. It also says it's not actively blocking any voice apps, although when it begins selling the Nokia N97 smartphone later this year, the Skype application that's normally pre-installed on the device will be stripped out. T-Mobile's justification for removing the app is great: it's not because they don't want people undermining voice revenues by using Skype, but because "by not putting Skype on, subscribers could choose from a number of VoIP apps, and not be limited to just one." That's as opposed to having Skype pre-installed, and customers being able to download and install any other VoIP app alongside it. Only in the world of mobile operators does removing choices for customers actually increase customer choice.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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Want To Get Out Of Your iPhone Contract on T-Mobile Germany? Easy, Just Use Skype

from the verboten dept

Skype has gotten some press this week after it announced the availability of a an iPhone client for its service (except in Canada, though, thanks to patent issues). The application only works over WiFi, though, and not the cellular data network. Operators typically say these restrictions are in order to prevent the use of massive amounts of bandwidth and harm network performance for other users; what seems more likely is they're worried that Skype will "steal voice minutes" away from their network. That's a silly belief though, because when users are already paying for a big bundle of minutes, and have unlimited off-peak minutes, and so on, it's not very likely they'll go to the trouble of using Skype for most calls. Perhaps the only ones they'd use such an application for are for calls they weren't going to make through the operator's network anyway -- such as international calls, for which they'd use a cheaper landline, a calling card, or wait until they're in front of a PC. Blocking Skype from working over the mobile network only hurts the operators by putting up a barrier in front of customers, it really doesn't protect any revenues. But no matter, the blocking -- or worse -- goes on. In Germany, where Skype is the top download from the App Store, T-Mobile (the operator which sells the iPhone there) is threatening to terminate the contracts of customers who use Skype on their iPhones, because the contracts prohibit the use of VoIP services. That's a nice touch: play by our rules, or you'll no longer have the privilege of giving us your money. You know, that doesn't sound so bad, because then users are free to take their business elsewhere. Although, as Skype's general counsel points out, every other mobile operator in Germany also bans VoIP.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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Yes, China Is Spying On Skype Conversations

from the end-to-end-to-gov't-encryption dept

Remember how Skype was supposed to be "untappable" due to end-to-end encryption? Well, we've already seen that's not true, thanks to leaks that showed the German government had figured out ways to tap Skype, and it will probably come as no surprise to many that China has been tapping and storing Skype conversations. Some of the findings of this report are not new. Back in 2005, reports came out that various Chinese telecoms were investing in special "filters" for Skype that would block conversations using certain keywords. But, of course, it seemed rather obvious that if they were blocking those keywords, they would also use them to spy on what people were talking about. Besides, if the telecoms didn't filter or record Skype, the Chinese government made it clear that it would block the use of Skype altogether.

The only really surprising part of the new report was the fact that the folks storing the messages did it so poorly that the researchers who discovered it were easily able to go in and read messages from others. It's rather telling to note the responses from the two companies involved. A Skype spokesperson told the Wall Street Journal: "The idea that China's government might be monitoring communications in and out of the country shouldn't surprise anyone." No, it shouldn't surprise anyone, but one might think it's rather troubling that Skype promotes itself as having end-to-end encryption, when that's clearly not true. Even more telling, the only thing about this report that seemed to actually concern representatives from Skype was the fact that the conversations had been readable by outsiders, again, telling the WSJ that the "security issue" had been "remedied" by Skype's partner in China, TOM Group. In other words, Skype isn't so concerned about users being spied on, but it is concerned when people can figure out that users are being spied on.

As for TOM Group, its response is pretty much exactly what you'd expect on this issue: "as a Chinese company, we adhere to rules and regulations in China where we operate our businesses." In other words, the government says they need to spy, so we let them spy. Nothing too surprising, but important for folks to know if they somehow thought that Skype's supposed end-to-end encryption actually kept conversations secret in China.

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German Authorities Raiding Homes To Find Skype Tapping Whistleblower

from the drawing-more-attention... dept

Apparently a whistleblower recently leaked some evidence that German authorities were using a special trojan horse software to tap Skype audio conversations. The document detailing this was leaked to the German Pirate Party, one of many international "Pirate Parties" that have been formed in recent years to push for more reasonable government policies on a variety of fronts from intellectual property to privacy and government surveillance. Illegally tapping Skype conversations may be illegal, but it seems that German authorities are a lot more interested in tracking down who leaked the documents and have raided the homes of various German Pirate Party members, confiscating computer equipment. Of course, if anything, this would seem to confirm that the government was at least experimenting with, if not actively using, such a trojan horse wiretapping program -- and the raids have only served to generate much more attention over that fact.

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Then Again, eBay Claims It's Still Hunting For Skype Synergies

from the there-must-be-a-pony-in-there-somewhere dept

Just a month ago, the guy in charge of Skype finally admitted that eBay had given up trying to find the mythical "synergies" between eBay and Skype as the few they had suggested turned out not to exist. Apparently, Skype's GM isn't on the same page as his boss, eBay CEO John Donahoe. He was just quoted saying that eBay will spend this year trying to find synergies with Skype and if it still can't find any, it may sell off or spinoff the unit. Given the lack of synergies so far and the massive write down on the purchase price, you have to figure they're going to be digging pretty deep to turn up any kind of synergy between Skype and eBay.

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Chinese Going Off The Official Telco System To Call Taiwan

from the time-for-the-great-voice-firewall dept

Paul Kedrosky points us to the news that, for the first time in 11 years, the "official" volume of phone calls from China to Taiwan has dropped rather significantly. Both the Digitimes report and Kedrosky suspect (reasonably) that this shows how many Chinese are jumping to use services like Skype to make these calls. Skype has long had a popular following in China, so this shouldn't be a huge surprise -- but it does make you wonder if the Chinese government will follow the path of various countries like Bangladesh, Belarus, Namibia and Jordan in banning Skype. We've already seen some experiments in China with blocking or banning certain types of calls. If the government feels that too many people are using these services, don't be surprised to see a wider ban enacted.

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German Government Struggles To Tap Encrypted Skype Calls

from the crypto-works dept

The Wikileaks project is starting to bear fruit, with documents leaked to the site beginning to get a lot of attention. The latest example is correspondence between the German government and a vendor (via Slashdot) that apparently makes software for intercepting Skype calls. Interestingly, the interception technology appears to be pretty primitive and rather expensive. The software has to be installed on the Skype client, and the vendor suggests that this can be accomplished by attaching a trojan to an e-mail or physically entering the premises to install the software on the target machine. And, evidently, only Windows 2000 and XP are supported; Vista support is still in the works. The company charges thousands of euros per target computer. This suggests that Skype's encryption technology is secure against at least the eavesdropping techniques available to the German government. Apparently they haven't found a way to decode encrypted Skype traffic off the wire, so they're forced to resort to these fairly cumbersome attacks on Skype clients -- attacks that are no more convenient for law enforcement than simply bugging the target's office. That suggests that the risk of comprehensive government surveillance of online telephony is still a fair ways off. If you encrypt your online activities, they're probably pretty secure. Of course, it's entirely possible that other government agencies, such as the NSA, have more sophisticated eavesdropping technology that they haven't shared with the Germans. My guess is that any government agencies possessing really sophisticated eavesdropping tools are also less likely to have their private documents show up on Wikileaks.

Timothy Lee is an expert at the Insight Community. To get insight and analysis from Timothy Lee and other experts on challenges your company faces, click here.

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German Proposal Gives A New Perspective On 'Spyware'

from the big-brother-is-hacking-yo dept

A VoIP expert has unveiled new proof-of-concept software that allows an attacker to monitor other peoples' VoIP calls and record them for later review. Unencrypted VoIP really isn't very secure; if you have access to the raw network traffic of a call, it's not too hard to reconstruct the audio. Encrypted traffic is another story. German officials have discovered that when suspects use Skype's encryption feature, they aren't able to decode calls even if they have a court order authorizing them to do so. Some law enforcement officials in Germany apparently want to deal with this problem by having courts give them permission to surreptitiously install spying software on the target's computer. To his credit, Joerg Ziercke, president of Germany's Federal Police Office, says that he's not asking Skype to put back doors in its software. But the proposal still raises some serious question. Once the installation of spyware becomes a standard surveillance method, law enforcement will have a vested interest in making sure that operating systems and VoIP applications have vulnerabilities they can exploit. There will inevitably be pressure on Microsoft, Skype, and other software vendors to provide the police with backdoors. And backdoors are problematic because they can be extremely difficult to limit to authorized individuals. It would be a disaster if the backdoor to a popular program like Skype were discovered by unauthorized individuals. A similar issue applies to anti-virus software. If anti-virus products detect and notify users when court-ordered spyware is found on a machine, it could obviously disrupt investigations and tip off suspects. On the other hand, if antivirus software ignores "official" spyware, then spyware vendors will start trying to camouflage their software as government-installed software to avoid detection. Ultimately, there may be no way for anti-spyware products to turn a blind eye to government-approved spyware without undermining the effectiveness of their products.

Hence, I'm skeptical of the idea of government-mandated spyware, although I don't think it should be ruled out entirely. That may sound like grim news for law enforcement, which does have a legitimate need to eavesdrop on crime suspects. But it's important to keep in mind that law enforcement officials do have other tools at their disposal. If they're not able to install software surveillance tools, it's always possible to do it the old-fashioned way--in hardware. Law enforcement agencies can always sneak into a suspect's home (with a court order, of course) and install bugging devices. That tried and true method works regardless of the communications technology being used.

Timothy Lee is an expert at the Insight Community. To get insight and analysis from Timothy Lee and other experts on challenges your company faces, click here.

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Skype Outage Highlights How Skype Is A Bit More Centralized Than Expected

from the p2p-or-p2c2p dept

Lots of folks (including many of us here at Techdirt) have discovered that VoIP/IM service Skype is having a pretty massive outage right now, where most, if not all, Skype users simply cannot login. There are plenty of alternatives for people to use, but for those who are used to using Skype (or who use it as a phone replacement, as some do), it's probably a bit of a nuisance. Still, this has to raise some questions. Part of the value of P2P networks was supposed to be their lack of a central point of failure. The idea was you couldn't easily take down (or censor) a P2P network for that reason. With Skype, the fact is that it wasn't completely a P2P app, as the authentication was still centralized. However, this may make some people wonder. After all, there were accusations in the past that Kazaa wasn't really decentralized, and it was Kazaa's founders who built Skype -- and some have said that they simply reused Kazaa's underlying code in building Skype. So, don't be surprised to see some question how decentralized Skype really is after seeing a failure like this one.

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