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<title>Techdirt. Stories about &quot;at&t&quot;</title>
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<pubDate>Thu, 16 May 2013 12:52:53 PDT</pubDate>
<title>AT&amp;T Continues To Mock The Concept Of Net Neutrality; This Time With Google Hangouts Block</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20130516/10513523106/att-continues-to-mock-concept-net-neutrality-this-time-with-google-hangouts-block.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20130516/10513523106/att-continues-to-mock-concept-net-neutrality-this-time-with-google-hangouts-block.shtml</guid>
<description><![CDATA[ The big telcos (AT&T and Verizon) have been trying to move more and more to wireless networks over wired networks, in large part because they've realized that, for whatever reason, the FCC more or less gave them pretty free rein to completely ignore net neutrality concepts on their wireless networks.  So it really shouldn't come as much of a surprise to see that AT&T has responded to the latest Google Hangouts app, which replaces the standard Google Talk app, by <a href="http://www.theverge.com/2013/5/15/4335262/google-hangout-video-chats-dont-work-on-att-cellular-connections-but-why" target="_blank">blocking video while on a cellular connection</a> on Android phones (oddly, it works on iPhones).  As you may recall, AT&T actually got into <a href="http://www.techdirt.com/blog/wireless/articles/20120717/15395619734/att-may-try-to-charge-facetime-users-raising-net-neutrality-questions.shtml">trouble</a> for doing the same thing with FaceTime on the iPhone.  AT&T's statement about this, as given to The Verge, parses its words very carefully, as if they think everyone is a complete moron:
<blockquote><i>
 All AT&T Mobility customers can use any video chat app over cellular that is not pre-loaded on their device, but which they download from the Internet.<b> For video chat apps that come pre-loaded on devices, we offer all OS and device makers the ability for those apps to work over cellular</b> for our customers who are on Mobile Share, Tiered and soon Unlimited plan customers who have LTE devices. It's up to each OS and device makers to enable their systems to allow pre-loaded video chat apps to work over cellular for our customers on those plans. 
</i></blockquote>
The whole focus on "pre-loaded" apps was how AT&T tried to <a href="http://www.techdirt.com/blog/wireless/articles/20120822/11243320124/att-tries-to-tapdance-around-net-neutrality-regulations.shtml">tap dance</a> around net neutrality questions last year with FaceTime.  And it's completely made up and bogus.
<br /><br />
Basically, they're saying if you want to do video, you have to ask permission.  That's a broken system.  It goes against what makes the internet good and useful: the fact that you can innovate without permission.  A mobile carrier -- one who may see video chat apps as competition, for example -- being able to act as a gatekeeper to block the usefulness of such apps is a dangerous situation for those who believe in promoting innovation.  We shouldn't stand for an internet where one company gets to pick what you're allowed to do.
<br /><br />
And, just to cut this off before anyone brings up a really silly argument to defend AT&T: yes, bandwidth on mobile broadband networks is somewhat more limited (though not as limited as they would have you believe).  But, these networks, for the most part, have all done away with unlimited accounts anyway.  So if people use up all their broadband quota on video calls, that should be their own decision.  AT&T has already made pricing decisions that limit bandwidth to consumers, so further limiting their choice in apps makes no sense on top of that.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20130516/10513523106/att-continues-to-mock-concept-net-neutrality-this-time-with-google-hangouts-block.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20130516/10513523106/att-continues-to-mock-concept-net-neutrality-this-time-with-google-hangouts-block.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20130516/10513523106/att-continues-to-mock-concept-net-neutrality-this-time-with-google-hangouts-block.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>you-need-permission-to-innovate-on-our-network</slash:department>
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<pubDate>Thu, 16 May 2013 09:45:00 PDT</pubDate>
<title>Appeal Over Former RIAA Lobbyist Judge Allowing Prenda To Get Info On Over 1,000 John Does Moves Forward</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130513/01431623057/appeal-over-former-riaa-lobbyist-judge-allowing-prenda-to-get-info-over-1000-john-does-moves-forward.shtml</link>
<guid>http://www.techdirt.com/articles/20130513/01431623057/appeal-over-former-riaa-lobbyist-judge-allowing-prenda-to-get-info-over-1000-john-does-moves-forward.shtml</guid>
<description><![CDATA[ You may recall Judge Beryl Howell, the <a href="http://www.techdirt.com/articles/20110329/04174413675/judge-who-said-lumping-together-unrelated-copyright-cases-is-fine-is-former-riaa-lobbyist.shtml">former RIAA lobbyist</a> who helped author the DMCA, and also went against a very large number of other judges dealing with copyright trolling lawsuits by ruling that it was <a href="http://www.techdirt.com/articles/20110323/16344113603/judge-says-mass-suing-people-infringement-is-perfectly-fine-even-benefits-defendants.shtml">perfectly fine</a> to lump over 1,000 John Doe defendants into a single lawsuit and then get discovery on them for the purpose of shaking them down for payment.  While so many other courts have ruled that such lumping together is an abuse of the legal system in misjoining unrelated parties, Howell not only stuck to her guns, but then proceeded to <a href="http://www.techdirt.com/articles/20120823/10444420138/riaa-lobbyist-turned-judge-isps-deserve-copyright-trolls-not-stopping-infringement.shtml">blame ISPs</a> for copyright trolls, suggesting that if they just did more to crack down on infringing, trolls wouldn't be a problem.
<br /><br />
What you may <i>not</i> remember is that the key case in which Howell did this happens to be a case involving... you guessed it... AF Holdings and its "law firm" Prenda Law.  Oh, and the "copyright assignment" that AF Holdings is using for this case was one of those supposedly signed by... <a href="http://www.techdirt.com/blog/?tag=alan+cooper">Alan Cooper</a>.  While Judge Howell may be well served to pay attention to Judge Otis Wright in California and his actual investigation into Prenda/AF Holdings/Alan Cooper, the case is out of her hands for now, as the various ISPs who have the info in this particular case <a href="http://www.pcworld.com/article/2038583/porn-troll-case-prompts-isps-to-fight-to-protect-customer-ids.html" target="_blank">have appealed Howell's ruling</a> and <a href="https://www.eff.org/press/releases/eff-appeals-court-stop-porn-troll-shakedown-scheme" target="_blank">the EFF, ACLU, Public Citizen and Public Knowledge have stepped in as well</a> with additional arguments in an amicus brief.
<br /><br />
Both briefs are well worth reading, though you might be surprised that the amicus brief is probably the more reserved of the two.  The ISPs who took part include: Bright House, Cox, Verizon, AT&#038;T and Comcast -- with most of them (Verizon and Comcast being the exceptions) not even providing service in the jurisdiction of the district court: Washington DC.  Comcast joining in is interesting, given that they own NBC, but we'll leave that aside for now.  To put it mildly, the ISPs think the appeals court should put an end to these kinds of cases, noting that a majority of other courts have refused to allow joinder on so many defendants, and have blocked the discovery process.  It points out, of course, that these cases are almost never taken to court, but are usually just used to reveal names and then offer settlement demands.  Specifically, they feel that Howell made a pretty big legal mistake, in that a showing of "good cause" is required for discovery, and Howell ignored that.
<blockquote><i>
The district court&#8217;s conclusion that rules governing personal jurisdiction and 
venue provide no impediment to pre-Rule 26 discovery of the ISPs is legal error. 
A showing of &#8220;good cause,&#8221; which is required for discovery ostensibly intended to 
identify defendants, requires an evaluation of whether the information sought from 
the ISPs would be used to name and serve defendants in the forum. See, e.g., 
Oppenheimer Fund, Inc. v. Sanders, 437 U.S. 340, 352-53 &#038; n.17 (1978) (where 
&#8220;the purpose of a discovery request is to gather information for use in proceedings 
other than the pending suit, discovery properly is denied&#8221;). The Copyright Act and 
the District of Columbia&#8217;s long-arm statute limit the court&#8217;s reach to defendants 
who reside in the district. And the uncontroverted evidence before the district
court showed that few, if any, of the targeted Internet subscribers reside in the 
District of Columbia&#8212;as publicly available geolocation software used by 
Plaintiff&#8217;s counsel in other cases confirms. The district court&#8217;s decision to defer 
any consideration of personal jurisdiction or venue until after the subscribers&#8217; 
personal information had been disclosed to Plaintiff requires reversal.
<br /><br />
The court&#8217;s decision to permit discovery of the ISPs before deciding whether 
the 1,000-plus &#8220;Does&#8221; are misjoined provides an additional basis for reversal. 
Plaintiff, by routinely declining to name and serve defendants after obtaining the 
subscribers&#8217; personal information, virtually ensures that Rule 20&#8217;s requirements for 
joinder will go unaddressed if not evaluated at the outset. And as a growing 
majority of courts have concluded, deferring a ruling on joinder deprives the courts 
of filing fees and encourages a proliferation of improperly coercive lawsuits. 
Given the groundswell of published opinions that disagree with the lower court and 
have severed or dismissed non-resident &#8220;Does&#8221; or all Does except for &#8220;Doe No. 1,&#8221; 
deferring a ruling on joinder in a suit that seeks nationwide subscriber information 
also encourages forum shopping&#8212;as the record here shows persuasively.
</i></blockquote>
The ISPs also, quite reasonably, point out that if mass joinder and discovery is allowed in this case, the trolls will descend on the DC Circuit courts in a mass forum shopping situation:
<blockquote><i>
The record 
reflects that Plaintiff&#8217;s counsel&#8217;s cases have migrated across the country, with the 
venues selected, not by the locus of the parties or situs of harm, but based on 
counsel&#8217;s perceptions of which forum is most likely to authorize the greatest 
discovery, at the lowest cost, with the least judicial oversight.
<br /><br />
The specter of intra-district, judge-specific shopping in Plaintiff&#8217;s counsel&#8217;s 
cases further underscores the problem with the lower court&#8217;s approach. The ISPs 
raised below Plaintiff&#8217;s counsel&#8217;s practice of filing complaints and dismissing them 
vel non based on the judicial assignment&#8212;only to re-file in another court. When presented with the same facts, Judge Wilkins quoted with  approval Judge Huvelle&#8217;s finding: &#8220;Plaintiff&#8217;s actions a[re] akin to &#8216;judge 
shopping.&#8217;&#8230; This Court could not agree more.&#8221; ...
<br /><br />
The ISPs respectfully submit that the district courts in <b>this Circuit should not 
be the destination for 1,000-plus Doe cases that are brought primarily to compile 
mailing lists&#8212;not to adjudicate actual cases or controversies</b>.
</i></blockquote>
The ISPs also go through, in detail, the accusations against Team Prenda, and the claims of Alan Cooper.  As it notes:
<blockquote><i>
AF Holdings and its counsel owe a duty of candor to the Court, and a duty of 
fairness to appellants.... The serious issues concerning attorney misconduct and potentially forged 
documents were not identified for the court below; they necessarily affect the 
&#8220;good cause&#8221; analysis and provide an alternative basis for reversal to address the 
evidence now being considered in the pending disciplinary proceedings in the 
Central District of California.
</i></blockquote>
The EFF/ACLU/PK/PC filing is more focused on the specific errors in Howell's ruling, concerning the "good faith" standard for discovery and the mass joinder of over 1,000 people.  They also point out the jurisdiction problems of the defendants who are clearly outside the jurisdiction of a DC court -- and the fact that these cases rarely end up in actual lawsuits means that the question of proper venue will not be "cured" later.  Finally, the brief argues that Howell ignored key First Amendment issues concerning revealing anonymous internet users, and the higher standard for them to be revealed.  This argument wasn't made by the ISPs, so we'll focus on that one here.  It points to the key Dendrite standard we've discussed many times before concerning the revealing of anonymous users.  This does not mean that you cannot identify those accused of copyright infringement, but rather that you can't go on a random fishing expedition to get names, as many copyright trolls have done.
<blockquote><i>
Specifically, in a series of cases beginning with Dendrite Int&#8217;l, Inc. v. Doe
No. 3, 775 A.2d 756, 760-61, 342 N.J. Super. 134 (App. Div. 2001), courts have 
adopted a balancing standard to assess requests for early discovery to identify 
anonymous online speakers that protects the right to speak anonymously while at 
the same time ensuring that plaintiffs who have valid claims are able to pursue 
them. Without such a standard, abusive plaintiffs could too easily use extrajudicial 
means against defendants from whom they could not, in the end, obtain judicial 
redress. See Levy, Litigating Civil Subpoenas to Identify Anonymous Internet 
Speakers, 37 Litigation No. 3 (Spring 2011).
<br /><br />
The use of BitTorrent to select and share movies is expressive and, 
therefore, protected by the First Amendment. Call of the Wild Movie, 770 F. Supp. 
2d at 350 (&#8220;[F]ile-sharers are engaged in expressive activity, on some level, when 
they share files on BitTorrent, and their First Amendment rights must be 
considered before the Court allows the plaintiffs to override the putative 
defendants&#8217; anonymity.&#8221;).
<br /><br />
Although the expressive aspect of the conduct alleged here &#8211; the posting of 
copyrighted movies to BitTorrent &#8211; is somewhat minimal, that does not mean that 
discovery to identify the anonymous user without adequate initial evidence that 
individual Doe Defendants committed the alleged infringement. The weakness of 
AF Holdings&#8217; assertions of personal jurisdiction and proper joinder means that 
First Amendment concerns weigh more strongly here in favor of quashing the 
subpoenas. Certainly it was not appropriate for the district court to ignore the 
question altogether.
</i></blockquote>
It will be interesting not only to see how the appeals court deals with it... but also Prenda's argument, since they seem to be getting more and more wacky lately.<br /><br /><a href="http://www.techdirt.com/articles/20130513/01431623057/appeal-over-former-riaa-lobbyist-judge-allowing-prenda-to-get-info-over-1000-john-does-moves-forward.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130513/01431623057/appeal-over-former-riaa-lobbyist-judge-allowing-prenda-to-get-info-over-1000-john-does-moves-forward.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130513/01431623057/appeal-over-former-riaa-lobbyist-judge-allowing-prenda-to-get-info-over-1000-john-does-moves-forward.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>doesn't-that-look-silly-now</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130513/01431623057</wfw:commentRss>
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<pubDate>Thu, 11 Apr 2013 14:45:00 PDT</pubDate>
<title>With Google Fiber On The Way, AT&#038;T Fiber Customers Receive Free Boost To Connection Only 976 Mbps Slower Than Google's Connection</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20130411/07522922677/with-google-fiber-way-att-fiber-customers-receive-free-boost-to-connection-only-976-mbps-slower-than-googles-connection.shtml</link>
<guid>http://www.techdirt.com/articles/20130411/07522922677/with-google-fiber-way-att-fiber-customers-receive-free-boost-to-connection-only-976-mbps-slower-than-googles-connection.shtml</guid>
<description><![CDATA[ <p>
With the threat of Google's fiber expansion making <i>real</i> competition a reality in some markets (rather than the perceived competition where multiple cablecos and ISPs offer middling service while offering small discounts or limited time price breaks), AT&#038;T is now being forced to upgrade its existing service in the affected area, or at least, to pay it some lip service. <a href="http://www.techdirt.com/articles/20130409/12014922636/hours-after-google-announces-google-fiber-austin-att-pretends-it-too-will-build-1-gigabit-network-there.shtml" target="_blank">Its press release</a> following the news read more like a Bart Simpson quote: "We can't promise to try. But we'll try to try."
<br /><br />
It appears AT&#038;T is actually doing at least a <i>little something</i> for its existing fiber customers in Austin. Austin members of the DSLReports boards are reporting that <a href="http://www.dslreports.com/shownews/ATTs-Few-Fiber-to-the-Home-Users-See-Speed-Boost-123814" target="_blank">AT&#038;T has removed the governor (or loosened it, anyway) on its fiber connections</a>, bumping the speed up to nearly 2.5% of Google's offering.
<blockquote>
<i>I called to cancel U-Verse because Time Warner offers Docsis 3.0 speeds for far cheaper in the Austin area. Uverse told me that select FTTH customers can now get 24/3 instead of the previous cap of 18/1.5. They just have to send a "special" technican to upgrade my equipment. I am letting them come and try because I don't believe it.</i></blockquote>
Why aren't these fiber customers already enjoying vastly improved speeds over other U-Verse subscribers? Why has it taken the threat of a <i>real</i> competitor to remove the artificial cap AT&#038;T installed? Apparently, it's because AT&#038;T wants to treat all of its customers fairly and ensure they receive the same lousy connection speed.
<blockquote>
<i>While AT&#038;T took the cheaper route when upgrading portions of their network to fiber to the node, the company has historically offered fiber to the home to a few locations (less than a few hundred thousand), primarily in upscale housing developments. While those lines are capable of significantly higher speeds, AT&#038;T has traditionally capped those users at the same speed as other U-Verse users. The company <a href="http://www.dslreports.com/shownews/87545" target="_blank">told me in 2007</a> this was to create a "more consistent experience."</i></blockquote>
Consistent under-performance is consistent.
<blockquote>
<i>That means you have users on cutting-edge fiber infrastructure, in some places seeing downstream speeds of <b>just 6 Mbps </b>-- and upstream speeds of just 1.5 Mbps.</i></blockquote>
So, while this speed bump may be appreciated, it is long overdue. The fact is fiber customers should have surpassed 24/3 a long time ago, rather than making do with a small, tossed off bit of faux largesse from AT&#038;T. An incremental boost like this, <i>especially</i> on a fiber connection, isn't going to be enough to keep AT&#038;T customers from lining up for Google Fiber. Even if AT&#038;T begins making more aggressive moves, it's highly doubtful its customers believe it will ever match Google's connection speed. As Karl Bode says:
<blockquote>
<i>Given these past speed issues, this is why most AT&#038;T customers will believe 1 Gbps only when it's up and running.</i></blockquote>
Exactly. Time Warner Cable, facing direct competition from Google Fiber,<a href="http://www.techdirt.com/articles/20121207/09304721307/time-warner-cable-doesnt-think-theres-demand-google-fiber.shtml" target="_blank"> flat out stated</a> there was <i>no demand</i> for this connection speed and that it would certainly be happy to provide 1Gbps connection should anyone prove they actually needed it. Translation: probably never. AT&#038;T's slippery press release "nailed down" pretty much the same approximate timeframe. It's clear competition will have some positive effect for those in the covered areas. I'm sure TWC and AT&#038;T are both happy a nationwide Google expansion would be <a href="http://www.techdirt.com/articles/20121210/00425421320/yes-it-would-be-prohibitively-costly-google-to-offer-google-fiber-everywhere-it-shouldnt-have-to.shtml" target="_blank">prohibitively expensive</a>, allowing them to continue providing subpar connection speeds and terrible customer service.
<br /><br />
</p><br /><br /><a href="http://www.techdirt.com/articles/20130411/07522922677/with-google-fiber-way-att-fiber-customers-receive-free-boost-to-connection-only-976-mbps-slower-than-googles-connection.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130411/07522922677/with-google-fiber-way-att-fiber-customers-receive-free-boost-to-connection-only-976-mbps-slower-than-googles-connection.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130411/07522922677/with-google-fiber-way-att-fiber-customers-receive-free-boost-to-connection-only-976-mbps-slower-than-googles-connection.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>loosening-the-artificial-cap</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130411/07522922677</wfw:commentRss>
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<pubDate>Tue, 9 Apr 2013 13:58:11 PDT</pubDate>
<title>Hours After Google Announces Google Fiber In Austin, AT&#038;T Pretends It, Too, Will Build A 1 Gigabit Network There</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130409/12014922636/hours-after-google-announces-google-fiber-austin-att-pretends-it-too-will-build-1-gigabit-network-there.shtml</link>
<guid>http://www.techdirt.com/articles/20130409/12014922636/hours-after-google-announces-google-fiber-austin-att-pretends-it-too-will-build-1-gigabit-network-there.shtml</guid>
<description><![CDATA[ As you've probably heard, this morning Google confirmed the rumors that Austin, Texas would be the <a href="http://googlefiberblog.blogspot.com/2013/04/google-fibers-next-stop-austin-texas_9.html" target="_blank">second city in which Google Fiber is rolled out</a>.  Google still appears to be treating this as an experiment, rolling it out in just a few areas, but it's still worth watching what happens.  For example, within hours of Google making the announcement, AT&#038;T rushed out a somewhat hilarious press release insisting that it, too, <a href="http://www.prnewswire.com/news-releases-test/att-announces-intent-to-build-1-gigabit-fiber-network-in-austin-202156751.html" target="_blank">would build a 1 gigabit fiber network in Austin</a>.  No one actually believes this is true.  What you're seeing is a bit of gamesmanship, but which reveals something interesting.  First up, AT&#038;T is clearly using this to complain about the deal terms by which Google got the rights of way in Austin.  Google, famously, got Kansas City to kick in all sorts of <a href="http://arstechnica.com/tech-policy/2012/09/how-kansas-city-taxpayers-support-google-fiber/" target="_blank">concessions</a> that made it extra favorable for Google to build its network there.  No doubt, the city of Austin offered similar benefits to Google to be city number two.  And, so, within AT&#038;T's press release, there's this little tidbit:
<blockquote><i>
Today, AT&#038;T announced that in conjunction with its previously announced Project VIP expansion of broadband access, it is prepared to build an advanced fiber optic infrastructure in Austin, Texas, capable of delivering speeds up to 1 gigabit per second.  <b>AT&#038;T's expanded fiber plans in Austin anticipate it will be granted the same terms and conditions as Google on issues such as geographic scope of offerings, rights of way, permitting, state licenses and any investment incentives</b>. 
</i></blockquote>
In other words, sure, sure we'll build a 1 gigabit fiber network.  Just give us the same favorable terms you gave Google.  Basically, AT&#038;T's announcement has little to do with actually offering a competing service, but much more about calling attention to the favorable terms that cities are giving Google to get Google Fiber.  Now, this is something that deserves reasonable scrutiny.  Some are quite understandably concerned that it's not right if Google gets extra-favorable terms.  But, let's look at the real history here.  Municipalities have been giving AT&#038;T and other incumbents incredibly favorable deals for years, and AT&#038;T has tended to return the favor by providing the bare minimum in quality of service to its broadband customers, while focusing most of its efforts on trying to block any hint of competition from showing up.
<br /><br />
Google, on the other hand, seems to be using these incentives to offer a much higher level of service, and the early reviews from Kansas City have been fantastic.  In short, both companies have been able to squeeze concessions and favorable deals out of the cities in question.  One of them pocketed the cash and gave customers the bare minimum.  The other focused on providing a truly impressive level of service.
<br /><br />
The other oddity in all of this is just how much this press release makes AT&#038;T look bad.  Beyond the petty "hey, give us what Google got" statement, this press release more or less confirms exactly the message that AT&#038;T has been trying to deny for years: that <b>when there's real competition, then AT&#038;T will invest in making a better service</b>.  Without the competition, AT&#038;T is happy to provide crappy service.  But within hours of real competition showing up, it suddenly claims it'll offer a better level of service?  Is that really the message it wants to send?  If I'm any city, state or federal government in the US at this point, I look at today's announcement and say, "well, AT&#038;T just admitted that they'll offer better service if there's real competition, so how do we make sure there's real competition?"  Given how hard AT&#038;T has fought back against real competition in the broadband space for the past decade, it's not clear this is the message AT&#038;T really should be spreading.<br /><br /><a href="http://www.techdirt.com/articles/20130409/12014922636/hours-after-google-announces-google-fiber-austin-att-pretends-it-too-will-build-1-gigabit-network-there.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130409/12014922636/hours-after-google-announces-google-fiber-austin-att-pretends-it-too-will-build-1-gigabit-network-there.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130409/12014922636/hours-after-google-announces-google-fiber-austin-att-pretends-it-too-will-build-1-gigabit-network-there.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>so...-competition-works?</slash:department>
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<pubDate>Mon, 25 Mar 2013 13:53:07 PDT</pubDate>
<title>Court Tosses Lawsuit That Said MMS Was An Illegal File Sharing Network</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130325/12165122456/ridiculous-lawsuit-against-telcos-claiming-that-mms-was-illegal-file-sharing-system-tossed-out-again.shtml</link>
<guid>http://www.techdirt.com/articles/20130325/12165122456/ridiculous-lawsuit-against-telcos-claiming-that-mms-was-illegal-file-sharing-system-tossed-out-again.shtml</guid>
<description><![CDATA[ A few years ago, we wrote about a really ridiculous <a href="http://www.techdirt.com/blog/wireless/articles/20100723/01045710327.shtml">lawsuit filed</a> by (then) regular Techdirt commenter Max Davis against all of the mobile operators: AT&#038;T, Verizon Wireless, Sprint and T-Mobile.  Davis runs a company, called Luvdarts, that creates silly "content" for multimedia messaging (MMS) on phones, and also had big dreams of setting up some sort of collective licensing system by which the telcos would all pay him a fee for every MMS sent.  When the telcos showed no interest in such a pointless plan, he sued, arguing that they were just like file sharing networks, because users were able to "forward" the MMS content his company created without any problem.  Two years ago, that case <a href="http://www.techdirt.com/blog/wireless/articles/20110320/20574113566/totally-pointless-lawsuit-accusing-mobile-carriers-being-p2p-file-sharers-dismissed-plaintiffs-say-theyre-happy.shtml">was dismissed</a>, with the court being pretty clear that it had no chance.  Davis actually sent over a press release about his own loss, talking about how happy he was with this result and that he was going to appeal.
<br /><br />
That appeal has happened and... <a href="https://www.documentcloud.org/documents/627449-luvdarts-v-att-mobility-mms-no-secondary-liability.html" target="_blank">second verse, same as the first</a>.  The appeals court made short work of this lawsuit, dismissing it in a quick and clean 10 page opinion.  To say the court was not impressed would be an understatement.  The court repeatedly points out that Luvdarts appears to be pushing completely novel legal interpretations of vicarious and contributory infringement with no basis whatsoever.  Basically, the company insists, first, that individuals passing along MMS messages makes the operators liable.  That was quickly tossed out because of protections against secondary liability.
<blockquote><i>
Luvdarts's principal argument is that the Carriers are liable for the infringement committed by third parties over their networks under either vicarious or contributory copyright liability. As the Supreme Court has observed, the Copyright Act does not explicitly render a third person liable for another person's infringement.
</i></blockquote>
Luvdarts argued that the operators failure to implement a system to block such forwards proves liability, and the court points out that this is ridiculous.
<blockquote><i>
In this case, Luvdarts concedes that the Carriers presently have no way of supervising the use of their networks for copyright infringement. Instead, Luvdarts's complaint alleges only that the Carriers could &#8220;establish[]. . .a system&#8221; that would give them the right and ability to supervise the infringing activity.  Luvdarts argues that this allegation is sufficient to survive a motion to dismiss. Luvdarts fails to cite any authority to support this proposition, which runs contrary to our precedent. In Napster, this court held that &#8220;right and ability to supervise&#8221; should be evaluated in the context of a system&#8217;s &#8220;current architecture.&#8221; Napster Inc., 239 F.3d at 1024. Moreover, as we noted in Perfect 10, Inc. v. Amazon.com, Inc., resting vicarious liability on the Carriers&#8217; failure to change their behavior would tend to blur the distinction between contributory liability and vicarious liability. 508 F.3d 1146, 1175 (9th Cir. 2007) (&#8220;[I]n general, contributory liability is based on the defendant&#8217;s failure to stop its own actions which facilitate third-party infringement, while vicarious liability is based on the defendant&#8217;s failure to cause a third party to stop its directly infringing activities.&#8221;). For example, under contributory liability the Carriers&#8217; failure to implement a digital rights management system may be used as circumstantial evidence of &#8220;the object of promoting&#8221; infringement. See Grokster, 545 U.S. at 936&#8211;37. But under vicarious liability, it cannot substitute for an allegation of a capacity to supervise. Luvdarts's failure to allege that the Carriers have at least something like a capacity to supervise is fatal to a claim of vicarious liability.
</i></blockquote>
On top of that, Luvdarts tried to claim contributory (not vicarious) infringement, arguing that these MMS systems were similar to Napster, Grokster or Limewire.  In part, this is because Luvdarts sent the telcos a list of every bit of "content" they offer, and demanded they be blocked from being forwarded.  Again, the courts don't see it (because there's nothing to see):
<blockquote><i>
Luvdarts fails to allege that the Carriers had the requisite specific knowledge of infringement. Luvdarts's conclusory allegations that the Carriers had the required knowledge of infringement are plainly insufficient. See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (&#8220;Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.&#8221;).
<br /><br />
In the alternative, Luvdarts argues that the &#8220;notices&#8221; it sent to the Carriers, referenced in the complaint, sufficed to establish actual knowledge of infringement. However, these notices failed to notify the Carriers of any meaningful fact. The notices were 150-page-long lists of titles, apparently just a transcription of every title copyrighted by Luvdarts, which indicated that they wanted &#8220;accountability&#8221; for the unauthorized distribution of those titles for the period from May 2008 to November 2009. These notices do not identify which of these titles were infringed, who infringed them, or when the infringement occurred. The Digital Millennium Copyright Act of 1998 (&#8220;DMCA&#8221;), by which the notices purport to be governed, clearly precludes notices as vague as the notices here. 17 U.S.C. &sect; 512 (DCMA takedown notice requires the producer to provide &#8220;[i]dentification of the material that is claimed to be infringing or to be the subject of infringing activity and that is to be removed or access to which is to be disabled, and information reasonably sufficient
</i></blockquote>
This is yet another useful ruling in that it highlights that service providers need to have <i>specific knowledge</i> of infringement, and that "general knowledge" is clearly not enough.
<br /><br />
Of course, I believe this is only one of two such lawsuits filed by Luvdarts against the same basic companies.  In the other one, they seem to be claiming that there's some sort of antitrust violation in that these MMS providers haven't implemented the filters that this lawsuit says they're not required to implement.  I can't imagine that one going very far either.<br /><br /><a href="http://www.techdirt.com/articles/20130325/12165122456/ridiculous-lawsuit-against-telcos-claiming-that-mms-was-illegal-file-sharing-system-tossed-out-again.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130325/12165122456/ridiculous-lawsuit-against-telcos-claiming-that-mms-was-illegal-file-sharing-system-tossed-out-again.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130325/12165122456/ridiculous-lawsuit-against-telcos-claiming-that-mms-was-illegal-file-sharing-system-tossed-out-again.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>let-it-go</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130325/12165122456</wfw:commentRss>
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<pubDate>Tue, 19 Mar 2013 03:29:06 PDT</pubDate>
<title>Expose A Blatant Security Hole In AT&amp;T's Servers, Get 3.5 Years In Jail</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130318/23033422370/expose-blatant-security-hole-ats-servers-get-35-years-jail.shtml</link>
<guid>http://www.techdirt.com/articles/20130318/23033422370/expose-blatant-security-hole-ats-servers-get-35-years-jail.shtml</guid>
<description><![CDATA[ We've written a few times about the case of <a href="http://www.techdirt.com/blog/?tag=andrew+auernheimer">Andrew Auernheimer</a>, perhaps better known as weev.  While he has a bit of a reputation as an online troll, and self-admitted jerk, his case is yet another example of how ridiculously broken the CFAA (Computer Fraud and Abuse Act) remains.  In this case, what he did was <a href="http://www.techdirt.com/articles/20121121/09030521112/expose-blatant-security-hole-att-face-five-years-jail.shtml">expose</a> a pretty blatant security hole in AT&T's servers, that allowed <i>anyone</i> to go in and find the emails of any AT&T iPad owner, merely by incrementing the user ID.  This isn't a malicious "hack."  It's barely a "hack" at all.  This isn't "breaking in."  This is just exploring a totally broken system.  To call attention to this, weev collected information on a bunch of famous folks who had iPads and alerted the press.  This is what security folks do all the time.  And for his troubles in helping AT&T discover and close a pretty bad security hole, <a href="http://www.wired.com/threatlevel/2013/03/att-hacker-gets-3-years/" target="_blank">he's been sentenced to 41 months in prison</a> plus he has to pay $73,000 to AT&T.  One hopes AT&T will use it to hire half a decent security person or something.
<br /><br />
The sentencing, by the way, was near the top of the "guidelines" the judge had, for those who insisted that the courts in other CFAA cases, such as Aaron Swartz's might be lenient.
<br /><br />
Plenty of people -- especially in the security community, are realizing what a ridiculous ruling this is and how dangerous it is.  As people are starting to point out, while he may be a jerk, that <a href="http://www.slate.com/blogs/crime/2013/03/18/andrew_auernheimer_hacker_prison_weev_might_be_a_jerk_but_that_doesn_t_make.html" target="_blank">doesn't mean he's a criminal</a>.  The prosecution used chat logs in which Auernheimer and a friend, Daniel Spitler, discussed the effort, and the fact that they talked about harming AT&T's reputation and promoting themselves as security experts.  I don't see how that leads to any criminal activity though.  AT&T's reputation <i>should be tarnished</i> for having crap security.  And why <i>wouldn't</i> some researchers talk about using the discovery of a really bad privacy hole by a major corporation to boost their own credentials.  Pretty much anyone in their shoes would reasonably think the same thing.
<br /><br />
Prosecutors, of course, played up Auernheimer's history of being a jerk, but that alone has little to do with his actions here:
<blockquote><i>
"His entire adult life has been dedicated to taking advantage of others, using his computer expertise to violate others' privacy, to embarrass others, to build his reputation on the backs of those less skilled than he," wrote U.S. Attorney Paul Fishman, who went on to note the "atypical recalcitrance by the defendant to conform to the laws regarding unauthorized computer access."
</i></blockquote>
While that may be true, none of that, by itself, is illegal.  And the actions that exposed a glaring hole put in place by bad programmers at AT&T shouldn't be either.<br /><br /><a href="http://www.techdirt.com/articles/20130318/23033422370/expose-blatant-security-hole-ats-servers-get-35-years-jail.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130318/23033422370/expose-blatant-security-hole-ats-servers-get-35-years-jail.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130318/23033422370/expose-blatant-security-hole-ats-servers-get-35-years-jail.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>now-the-holes-will-be-open-longer</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130318/23033422370</wfw:commentRss>
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<pubDate>Thu, 14 Mar 2013 15:08:57 PDT</pubDate>
<title>Facebook Backs Away Quietly From Its CISPA Support</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130314/13385722326/facebook-backs-away-quietly-its-cispa-support.shtml</link>
<guid>http://www.techdirt.com/articles/20130314/13385722326/facebook-backs-away-quietly-its-cispa-support.shtml</guid>
<description><![CDATA[ Many in the internet community were disappointed a year ago when Facebook came out <a href="http://www.techdirt.com/articles/20120413/12441918486/challenge-to-facebook-withdraw-cispa-support-until-bill-is-fixed-replaced.shtml">in favor of CISPA</a>. Facebook made its case publicly, agreeing that there were some privacy and civil liberties concerns with the bill, but that on the whole the bill was good.  Of course, more cynical people might point out that since the general immunity provisions of CISPA would protect Facebook from liability in sharing info with the government, that of course they'd like it.  However, it appears that Facebook is reconsidering that position, perhaps aware of how much public opposition there is to CISPA.  Facebook is <a href="http://news.cnet.com/8301-13578_3-57574381-38/facebook-ends-love-affair-with-cispa-cybersecurity-bill/" target="_blank">no longer listed as a CISPA supporter</a>, though it also has not come out directly against the bill.  Instead, it issued a statement that says basically nothing:
<blockquote><i>
We are encouraged by the continued attention of Congress to this important issue and we look forward to working with both the House and the Senate to find a legislative balance that promotes government sharing of cyberthreat information with the private sector while also ensuring the privacy of our users.
</i></blockquote>
Still, it's encouraging that a company, like Facebook, which really does rely on the support of their userbase, appears to at least recognize that something like CISPA might not be good for its users.  In fact, this seems similar to when <a href="http://www.techdirt.com/articles/20120428/00142918694/microsoft-slowly-backing-away-cispa-support-worries-about-privacy-issues.shtml">Microsoft backed away</a> from its CISPA support last year as well.  The article linked above notes that Microsoft still feels the same way, citing the concerns about user privacy with the current draft of CISPA.
<br /><br />
So, who is <a href="http://intelligence.house.gov/hr-624-letters-support" target="_blank">supporting CISPA</a>?  The <a href="http://www.techdirt.com/articles/20130215/03013921992/big-telcos-love-cispa-more-immunity-violating-our-customers-privacy-sign-us-up.shtml">telcos</a> are still there, not surprisingly, as well as mostly infrastructure providers, rather than any company that has a bunch of its own internet users.  So, you see IBM, Intel and Juniper Networks.  But there is not a single real "internet" company in the bunch any more. Perhaps that should be a loud hint for CISPA's sponsors that the bill is not a good thing for the internet world.<br /><br /><a href="http://www.techdirt.com/articles/20130314/13385722326/facebook-backs-away-quietly-its-cispa-support.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130314/13385722326/facebook-backs-away-quietly-its-cispa-support.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130314/13385722326/facebook-backs-away-quietly-its-cispa-support.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>good-for-them</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130314/13385722326</wfw:commentRss>
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<pubDate>Fri, 22 Feb 2013 14:55:22 PST</pubDate>
<title>Six Strikes Officially Begins On Monday</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130222/14191722072/six-strikes-officially-begins-monday.shtml</link>
<guid>http://www.techdirt.com/articles/20130222/14191722072/six-strikes-officially-begins-monday.shtml</guid>
<description><![CDATA[ Kevin Collier over at the DailyDot claims he's got it on good authority that the "six strikes" system, officially known as the Copyright Alert System, <a href="http://www.dailydot.com/news/copyright-alerts-system-launch-six-strikes/" target="_blank">officially kicks off on Monday</a>, many months later than scheduled.  For whatever reason, the organization behind the program, the Center for Copyright Information, has been insisting for some time that there was no official rollout date, and the various ISPs would be individually choosing when to turn on the random assortment of punishment mechanisms made available to copyright holders based entirely on accusations, not conviction or other proof.  Apparently, what they meant was that everyone would roll it out in a single week, but on different days.  Because that makes so much sense.
<blockquote><i>
The ISPs&#8212;industry giants AT&#038;T, Cablevision, Comcast, Time Warner, and Verizon&#8212;will launch their versions of the CAS on different days throughout the week. Comcast is expected to be the first, on Monday.
</i></blockquote>
So, now we get to watch people get falsely accused, those with open WiFi suddenly have to <a href="http://www.techdirt.com/articles/20130118/15564321733/six-strikes-administrator-loss-open-wifi-access-cafes-is-acceptable-collateral-damage.shtml">fear</a> bogus slow downs to their networks and other assorted collateral damage.  Oh, and does anyone actually expect to see a sudden spike in "sales"?
<br /><br />
Oh, and the Center for Copyright Information has put up a snazzy new <a href="http://www.copyrightinformation.org/the-copyright-alert-system/" target="_blank">website</a> and <a href="http://youtu.be/kQTONXs_N-A">video</a> over some non-descript smooth jazz that I'm sure they licensed, and which practically screams the following basic message (note: message paraphrased): "Hey, we're just your friendly neighborhood copyright maximalists, out here trying to make friends and, oh, oops, we just wanted to let you know, in the <i>friendliest way possible</i>, that we think you're lying, thieving pirates, and we'd really like it if you stopped, or we might have to make your internet connection completely useless.  But we don't want to have to do that, because we're all friends here, enjoying the internet.  Isn't the internet great?"
<center>
<iframe width="560" height="315" src="http://www.youtube.com/embed/kQTONXs_N-A" frameborder="0" allowfullscreen></iframe>
</center>
The video makes a few blatantly ridiculous claims, including suggesting that they have some foolproof technology for seeing whenever you infringe.  They claim that the system is designed to "support the creative work that we all love and enjoy."  Which is kind of amusing, since nothing in the system is about giving people a reason to buy.  Just a reason to get pissed off at ISPs and copyright holders for making accusations.  I'm sure that's going to convince so many people to buy.<br /><br /><a href="http://www.techdirt.com/articles/20130222/14191722072/six-strikes-officially-begins-monday.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130222/14191722072/six-strikes-officially-begins-monday.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130222/14191722072/six-strikes-officially-begins-monday.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>warm-up-your-vpns</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130222/14191722072</wfw:commentRss>
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<pubDate>Fri, 15 Feb 2013 09:36:32 PST</pubDate>
<title>Big Telcos Love CISPA; More Immunity For Violating Our Customers Privacy?!? Sign Us Up!</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130215/03013921992/big-telcos-love-cispa-more-immunity-violating-our-customers-privacy-sign-us-up.shtml</link>
<guid>http://www.techdirt.com/articles/20130215/03013921992/big-telcos-love-cispa-more-immunity-violating-our-customers-privacy-sign-us-up.shtml</guid>
<description><![CDATA[ It's well known that the big telcos and the federal government have an all-too-cozy relationship when it comes to handing over data on telco customers.  This has included ignoring all the rules and going so far as handing over information based on <a href="http://www.techdirt.com/articles/20100121/1418107862.shtml">a post-it note</a> given to them by the FBI.  The telcos general standpoint has been that they're happy to let the government reach deep into their data -- more or less adding a <a href="http://www.techdirt.com/articles/20060407/1514229.shtml">direct tap on all of us</a>.  Congress, however, gift-wrapped them immunity to any lawsuits from all of that kind of stuff.  Still, these days, the telcos sure do like not being liable for coughing up their customer's private info to the government, so it should come as little surprise that they're practically shoving each other aside to support CISPA.
<br /><br />
Two major trade groups, CTIA and US Telecom, each issued short statements saying that CISPA is a good thing.  US Telecom <a href="https://www.ustelecom.org/news/press-release/ustelecom-supports-rogers-ruppersberger-cyber-bill" target="_blank">claimed</a> that the bill would make it more efficient to detect, deter and respond to cyberthreats.  That would be nice if true, but no one's yet explained how that actually would work in practice.  CTIA knows how to play the press, and started <a href="http://www.ctia.org/media/press/body.cfm/prid/2242" target="_blank">its press release</a> by hyping up recent hack attacks.  That CISPA likely would have done absolutely nothing to stop those attacks is conveniently ignored.
<br /><br />
Meanwhile <a href="http://attpublicpolicy.com/cybersecurity/att-statement-on-the-cyber-intelligence-sharing-and-protection-act/" target="_blank">AT&T</a> and <a href="http://www.reuters.com/article/2013/02/13/verizon-cybersecurity-idUSnPnNY59962+160+PRN20130213" target="_blank">Verizon</a> each offered their own support for the bill, making it clear that protection from liability is the most important thing to them. 
<br /><br />
The telcos, of course, have nothing to lose and everything to gain from CISPA.  It gives them even more freedom from liability in sharing your info, but doesn't present any specific regulatory burdens on them.  Of course, shouldn't we be a lot more concerned about the views of the people whose privacy would be violated, than the views of those violating their privacy?<br /><br /><a href="http://www.techdirt.com/articles/20130215/03013921992/big-telcos-love-cispa-more-immunity-violating-our-customers-privacy-sign-us-up.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130215/03013921992/big-telcos-love-cispa-more-immunity-violating-our-customers-privacy-sign-us-up.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130215/03013921992/big-telcos-love-cispa-more-immunity-violating-our-customers-privacy-sign-us-up.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>of-course-they-like-it</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130215/03013921992</wfw:commentRss>
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<pubDate>Tue, 5 Feb 2013 09:34:38 PST</pubDate>
<title>AT&amp;T Can Foist Its Data Plans On You, Whether You Use It Or Not</title>
<dc:creator>Timothy Geigner</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20130204/09415221876/att-can-foist-their-data-plans-you-whether-you-use-it-not.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20130204/09415221876/att-can-foist-their-data-plans-you-whether-you-use-it-not.shtml</guid>
<description><![CDATA[ Our most recent posts on AT&T share something of a theme in that they're about what they <i>won't</i> enable you to do. For instance, you can't inform them of a security hole or you'll face <a href="http://www.techdirt.com/articles/20121121/09030521112/expose-blatant-security-hole-att-face-five-years-jail.shtml">years</a> of prison time. Likewise, we learned recently of their plans to limit what you can do on the internet, or limit your access entirely via one flavor of the now infamous "<a href="http://www.techdirt.com/articles/20130111/16325521645/details-various-six-strikes-plans-revealed-may-create-serious-problems-free-wifi.shtml">Six Strikes</a>" plans. Hell, sometimes AT&T doesn't even allow <i>competitors</i>, because logic based on <a href="http://www.techdirt.com/blog/wireless/articles/20121109/07434820984/att-admits-that-whole-spectrum-crunch-argument-it-made-why-it-needed-t-mobile-wasnt-true.shtml">lies</a> is so much more gratifying. That said, we make a habit here of pointing out when companies manage to go the other way and enable rather than disable, so it's with that in mind that we congratulate AT&T for generously enabling (and charging) customers for data plans on used smart phones their customers bought, even when those customers disabled and refuse to use any data applications. (In case you're slow on the uptake: that's sarcasm.)<br />
<br />
Joel Runyon has the heartfelt story of how AT&T looked out for his own best interests by charging him for a <a href="http://clickboom.me/att-will-not-let-you-not-have-a-data-plan-wit">data plan he didn't want, never used, and specifically turned off on his phone</a>.
<blockquote>
<i>4-5 months ago, the hardware on my old flip phone was dying (that happens when it's from 2008). I was out of contract with AT&T and so I could have chose to get a new subsidized phone & shiny new 2-year contract with them, but I simply bought a used out-of-contract iPhone 4 from my friend and swapped in my sim card (that whole commitment thing again). Again, no problems. America! Neat.<br />
<br />
After using the iPhone as a dumb phone for all intents & purposes (call, text, no data) for the last 4-5 months or so, I get a text message out of the blue from AT&T that they've detected I'm using a smart phone and that all smart phones require a data plan - never mind that I actually had data turned off. That would be only a little annoying if it was just a notification message, but they went ahead, chose a data plan for me, and started billing me from then on.</i></blockquote>
Yes, AT&T unilaterally decided a data plan was needed for all of the data Joel <i>didn't</i> need and didn't use. This wasn't a new contract along with a subsidized phone. Simply by putting his existing sim card in a used phone he bought elsewhere, this automagically meant he was given a data plan and billed for it. No discussion, no contract, just instant data plan.
<center>
<p>
<a href="http://www.flickr.com/photos/techfun/2409600175/" title="EARTHQUAKE Office!!! by techfun, on Flickr"><img src="http://farm3.staticflickr.com/2112/2409600175_12b03b4aaa.jpg" width="300" alt="EARTHQUAKE Office!!!"/></a><br />
<span style="font-size:10px;">"Welcome to AT&T customer service. Now, if you'd kindly go f@*# yourself..."<br />
Image <a href="http://www.flickr.com/photos/techfun/2409600175/">source</a>: CC BY-SA 2.0</span></p>
</center>
<p>
Offering customers choices is a good thing. Limiting them is not. Forcing a plan on someone who has no intention of using it and charging them for it is about the best way I can think of to lose a customer. When Runyon contacted AT&T about this, they apparently replied that this was "standard practice," in which case it should probably be "standard practice" to find another carrier.
</p><br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20130204/09415221876/att-can-foist-their-data-plans-you-whether-you-use-it-not.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20130204/09415221876/att-can-foist-their-data-plans-you-whether-you-use-it-not.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20130204/09415221876/att-can-foist-their-data-plans-you-whether-you-use-it-not.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>eff-the-customer</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130204/09415221876</wfw:commentRss>
</item>
<item>
<pubDate>Fri, 11 Jan 2013 18:37:43 PST</pubDate>
<title>Details Of Various Six Strikes Plans Revealed; May Create Serious Problems For Free WiFi</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130111/16325521645/details-various-six-strikes-plans-revealed-may-create-serious-problems-free-wifi.shtml</link>
<guid>http://www.techdirt.com/articles/20130111/16325521645/details-various-six-strikes-plans-revealed-may-create-serious-problems-free-wifi.shtml</guid>
<description><![CDATA[ Ah, unintended consequences.  TorrentFreak has been doing a fantastic job sussing out the details of how various ISPs are going to implement the infamous "six strikes" plan.  Earlier, it had found that AT&#038;T's plan was to <a href="https://torrentfreak.com/att-starts-six-strikes-anti-piracy-plan-next-month-will-block-websites-121012/" target="_blank">block access to frequently visited websites</a>, while the fourth strike will include redirections to "educational material."
<center>
<a href="http://imgur.com/cFa5p"><img src="http://i.imgur.com/cFa5p.jpg" width=560 /></a>
</center>
Time Warner Cable, for its part, has said that it will <a href="https://torrentfreak.com/verizon-will-reduce-speeds-of-repeated-bittorrent-pirates-121115/" target="_blank">direct users to a landing page</a>, effectively interrupting your ability to surf the web without it being crazy annoying.  The latest is the discovery of the <a href="http://torrentfreak.com/verizons-six-strikes-anti-piracy-measures-unveiled-130111/?utm_source=dlvr.it&#038;utm_medium=twitter" target="_blank">details of Verizon's plan</a>, which will involve reducing speeds of the connection to a slow poke speed of 256kbps.  I don't know if you've tried surfing the web at 256kbps lately, but it's ridiculously frustrating, because pages are optimized for much higher speeds:
<center>
<a href="http://imgur.com/6sONM"><img src="http://i.imgur.com/6sONM.png" width=560 /></a>
</center>
Comcast and Cablevision (the two other participants) haven't leaked out any details yet, but you have to imagine that the situations would be similar.  One thing to note, this isn't really a "six strikes" plan at all.  AT&#038;T's more draconian actions appear to kick in after the 4th notice.  Verizon's kick in after the 5th notice.   I know it's been popular to call it a "six strikes" plan, but our initial read suggested that it was really more of a <a href="http://www.techdirt.com/articles/20110707/10173014998/major-us-isps-agree-to-five-strikes-plan-rather-than-three.shtml">five strikes plan</a>, since mitigation factors were supposed to start after five.  It's interesting to see that AT&#038;T seems to want to push that even further.
<br /><br />
All of the ISPs, of course, will say that they're not "cutting people off" from the internet, though they are making connections barely usable.  Especially troubling is that, as TorrentFreak reveals in the latest post on this, at least Verizon's responses will apply to businesses as well.  So that cafe down the street that has free WiFi... may quickly be throttled down to 256kbps.  That will likely  mean a lot less free WiFi out there, which is a significant and worrisome consequence of this program.
<br /><br />
All of these programs seem focused on driving people to "educational content" about copyright infringement.  It will be quite fascinating to see what kind of educational content is provided.  We've seen in the past that most such attempts are <i>really</i> bad and one-sided.  Even YouTube's "copyright school" is <a href="http://www.techdirt.com/articles/20110414/14442013897/youtube-launches-myth-perpetuating-copyright-school-dismisses-remixes-as-not-original.shtml">ridiculously one-sided</a> and perpetuates myths about copyright, and suggests that fair use is too complex for you to even bother trying to understand.
<br /><br />
Also, as the strikes get higher, there are two things to be aware of: ISPs are then more likely to hand over info to the copyright holders, meaning that it could still lead to copyright holders directly suing.  That is, the "mitigation" factors are not, in any way, the sum total of the possible consequences for those accused.  On top of that, we still fully expect that at least some copyright holders are planning to insist that ISPs who are aware of subscribers with multiple "strikes" are <a href="https://www.techdirt.com/articles/20120727/08520119856/riaas-backdoor-plan-using-six-strikes-plan-to-cut-off-internet-access-people.shtml">required under law</a> to terminate their accounts.  At least the RIAA has indicated that this is its interpretation of the DMCA's clause that requires service providers to have a "termination policy" for "repeat infringers."  So it's quite likely that even if the ISPs have no official plan to kick people off the internet entirely under the plan, some copyright holders will still push for exactly that kind of end result.<br /><br /><a href="http://www.techdirt.com/articles/20130111/16325521645/details-various-six-strikes-plans-revealed-may-create-serious-problems-free-wifi.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130111/16325521645/details-various-six-strikes-plans-revealed-may-create-serious-problems-free-wifi.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130111/16325521645/details-various-six-strikes-plans-revealed-may-create-serious-problems-free-wifi.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>the-death-of-free-wifi</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130111/16325521645</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 21 Nov 2012 18:42:24 PST</pubDate>
<title>Expose Blatant Security Hole From AT&#038;T... Face Five Years In Jail</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121121/09030521112/expose-blatant-security-hole-att-face-five-years-jail.shtml</link>
<guid>http://www.techdirt.com/articles/20121121/09030521112/expose-blatant-security-hole-att-face-five-years-jail.shtml</guid>
<description><![CDATA[ A few years ago, we wrote about some hackers who <a href="http://www.techdirt.com/articles/20100609/1604379757.shtml">exposed</a> a really basic security flaw in AT&#038;T's setup for iPad users.  Basically, if you fed an ID to a website, it would return the email address of the account.  And, on top of that, AT&#038;T appeared to hand out the IDs in numerical order, so it was easy to just run through a bunch of IDs in order and collect a ton of users' info.  And that's what these hackers did -- collecting a variety of emails including the President of News Corp., the CEO of Dow Jones and Mayor Bloomberg in New York.  They got lots of other government officials as well: <em>"Rahm Emanuel and staffers in the Senate, House of Representatives, Department of Justice, NASA, Department of Homeland Security, FAA, FCC, and National Institute of Health, among others."</em>
<br /><br />
This seemed like a pretty massive flaw in the design of the system by AT&#038;T... but of course, all of the blame is falling on the guys who exposed the hole.  It seems noteworthy that the pair of hackers who exposed this are known for trollish online behavior, and Andrew Auernheimer, who goes by the name weev, has flat out called himself an internet troll.  It seems that the FBI decided to use the trollish nature of Auernheimer and collaborator Daniel Spitler to argue that this hack actually violated the incredibly poorly-worded and misunderstood Computer Fraud and Abuse Act (CFAA).  That's a law that we've been discussing for a few years now, as law enforcement and courts keep trying to <a href="http://www.techdirt.com/articles/20100305/0404088432.shtml">stretch</a> the definition of what counts as "unauthorized access" under the bill.
<br /><br />
Unfortunately, in this case, a jury was convinced that the discovery of this security hole left by AT&#038;T <a href="http://arstechnica.com/tech-policy/2012/11/internet-troll-who-exploited-att-security-flaw-faces-5-years-in-jail/" target="_blank">was actually a crime</a>, and Auernheimer is now facing five years in jail.  Not surprisingly, he plans to appeal.  Of course, part of the issue is that Auernheimer discussed, but did not actually do, a variety of bad things he could have done with the data in question, before eventually just revealing the security hole to the media.
<br /><br />
Obviously, there may be a fine line between "white hat" exposure of security flaws and nefarious activity, but given that all that really happened here was the exposure of really poorly thought-out programming by AT&#038;T, it seems bizarre that the guy who exposed it is now facing years in jail.<br /><br /><a href="http://www.techdirt.com/articles/20121121/09030521112/expose-blatant-security-hole-att-face-five-years-jail.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121121/09030521112/expose-blatant-security-hole-att-face-five-years-jail.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121121/09030521112/expose-blatant-security-hole-att-face-five-years-jail.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>security-through-threat-of-intimidation</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121121/09030521112</wfw:commentRss>
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<item>
<pubDate>Fri, 9 Nov 2012 13:56:55 PST</pubDate>
<title>AT&#038;T Admits That The Whole 'Spectrum Crunch' Argument It Made For Why It Needed T-Mobile Wasn't True</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20121109/07434820984/att-admits-that-whole-spectrum-crunch-argument-it-made-why-it-needed-t-mobile-wasnt-true.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20121109/07434820984/att-admits-that-whole-spectrum-crunch-argument-it-made-why-it-needed-t-mobile-wasnt-true.shtml</guid>
<description><![CDATA[ You may recall that back when AT&#038;T was trying to buy T-Mobile, a big part of the argument was a spectrum crunch around its wireless efforts.  The company insisted -- strenuously -- that it would not be able to expand 4G LTE services to more than 80% of the population unless it had T-Mobile.  That argument ran into some trouble when a lawyer <a href="http://www.techdirt.com/blog/wireless/articles/20110812/11574915494/att-accidentally-reveals-that-it-doesnt-need-t-mobile-all.shtml">accidentally</a> posted some documents to the FCC which admitted that the company could fairly easily expand its coverage to 97% of the population of the US without T-Mobile (and, in fact, that it would cost about 10% of what buying T-Mobile would cost).  Suddenly, the argument that it absolutely needed T-Mobile rang hollow -- even as the company continued to insist exactly that.  Still, the FCC suddenly was <a href="http://www.techdirt.com/blog/wireless/articles/20110825/03135515677/fcc-asks-att-to-explain-discrepency-over-claimed-need-t-mobile-vs-internal-discussions.shtml">skeptical</a> and AT&#038;T, seeing the writing on the wall, <a href="http://www.techdirt.com/blog/wireless/articles/20111219/14585317132/surprise-att-admits-defeat-withdraws-t-mobile-takeover-attempt-pays-4-billion-breakup-fee.shtml">gave up on the merger</a>.
<br /><br />
So, it probably shouldn't have been seen as much of a surprise that <i>just 11 months</i> after the T-Mobile deal fell through, AT&#038;T has announced <a href="http://www.dslreports.com/shownews/ATT-Announces-Awaited-Network-Investment-Plan-121950" target="_blank">plans to expand its LTE footprint</a> to cover 97% of the population of the US.  In other words, the internal document was exactly correct, and AT&#038;T's public claims?  Hogwash.
<br /><br />
Even the mainstream news media is now <a href="http://money.cnn.com/2012/11/07/technology/mobile/att-4g/index.html" target="_blank">mocking AT&#038;T's obviously bogus claims</a> during the merger fight.  AT&#038;T's response to this is to claim that it "chartered a new direction," doing something like 40 new deals for spectrum.  However, as Broadband Reports notes, all of this seems to make clear <a href="http://www.dslreports.com/shownews/ATT-Acknowledges-Theres-No-Spectrum-Crunch-121990?utm_source=dlvr.it&#038;utm_medium=twitter" target="_blank">that there is no spectrum crunch</a> -- that's just a bogeyman story that the telcos tell the government when they want a handout.  In fact, AT&#038;T is now saying publicly that there is no spectrum crunch.  It has more than enough.
<blockquote><i>
Speaking to analysts, AT&#038;T's chief strategy officer John Stankey yesterday acknowledged the company is now well-positioned on the spectrum front -- even <b>before</b> the company starts moving on their new plan to <a href="/shownews/FCC-Greenlights-ATTs-WCS-Spectrum-Play-121380">use WCS spectrum for LTE deployment</a>. <br /><br />"Even under ideal circumstances, getting new spectrum on the market in the next five to seven years is aggressive," Stankey said. "But what we do know is that AT&#038;T is well-positioned now...These deals give us confidence that we can meet our LTE objectives for next two years and they will allow us to deliver competitive performance."
</i></blockquote>
Of course, I'm sure the next time AT&#038;T needs something from the government, or wants to wipe a competitor off the map, we'll be right back to that story about how they're in desperate need of spectrum.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20121109/07434820984/att-admits-that-whole-spectrum-crunch-argument-it-made-why-it-needed-t-mobile-wasnt-true.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20121109/07434820984/att-admits-that-whole-spectrum-crunch-argument-it-made-why-it-needed-t-mobile-wasnt-true.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20121109/07434820984/att-admits-that-whole-spectrum-crunch-argument-it-made-why-it-needed-t-mobile-wasnt-true.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>well,-implicity</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121109/07434820984</wfw:commentRss>
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<pubDate>Wed, 22 Aug 2012 13:05:18 PDT</pubDate>
<title>AT&amp;T Tries To Tapdance Around Net Neutrality Regulations</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20120822/11243320124/att-tries-to-tapdance-around-net-neutrality-regulations.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20120822/11243320124/att-tries-to-tapdance-around-net-neutrality-regulations.shtml</guid>
<description><![CDATA[ I'm still not convinced the FCC really has the mandate to put in place net neutrality rules, but even so, it's quite amazing to watch AT&T try to tap dance around them, while clearly violating both the spirit and the letter of the policies.  The latest issue has to do with Apple's Facetime video chat.  While earlier rumors that AT&T would <a href="http://www.techdirt.com/blog/wireless/articles/20120717/15395619734/att-may-try-to-charge-facetime-users-raising-net-neutrality-questions.shtml">charge</a> for using the app proved untrue, it did announce that the app would only be available for those paying for a higher level of service (which may effectively be the same thing).  The usual parties quickly <a href="http://www.publicknowledge.org/att-facetime" target="_blank">raised a stink</a>, highlighting how AT&T appears to be <a href="http://www.savetheinternet.com/att-facetime" target="_blank">violating</a> the rules:
<center>
<a href="http://imgur.com/uV1Kd"><img src="http://i.imgur.com/uV1Kd.png" width=300 /></a>
</center>
AT&T has now <a href="http://attpublicpolicy.com/fcc/enabling-facetime-over-our-mobile-broadband-network/" target="_blank">hit back</a>, claiming that the complaints are "knee jerk" and they're not doing anything wrong.
<br /><br />
As far as I can tell, AT&T's defense is two-fold:
<ol>
<li>It believes that there is a <a href="http://www.dslreports.com/shownews/ATT-Criticism-of-Facetime-Move-Kneejerk-Reaction-120884" target="_blank">loophole</a> in the net neutrality rules in that it does not apply to preloaded apps, and they can set whatever access rules for such apps that they want:
<blockquote><i>
The FCC&#8217;s net neutrality rules do not regulate the availability to customers of applications that are preloaded on phones.  Indeed, the rules do not require that providers make available any preloaded apps.  Rather, they address whether customers are able to download apps that compete with our voice or video telephony services.
</i></blockquote>
</li>
<br />
<li>It believes that as long as some <i>other</i> competing apps are available, they can restrict the apps they want to restrict.
<blockquote><i>
AT&T does not restrict customers from downloading any such lawful applications, and there are several video chat apps available in the various app stores serving particular operating systems. (I won&#8217;t name any of them for fear that I will be accused by these same groups of discriminating in favor of those apps.  But just go to your app store on your device and type &#8220;video chat.&#8221;)  Therefore, there is no net neutrality violation.
</i></blockquote>
</li></ol>
That's a very interesting interpretation of these things, but doesn't just create a loophole, it creates a giant vortex through which AT&T could restrict a huge number of apps just by pointing out that other such apps exist -- even if they're awful and no one uses them.
<br /><br />
Of course, all of this is why we've argued for nearly a decade that the whole "net neutrality" fight is a red herring, anyway.  The telcos are always going to find their own loopholes and ways around the rules (which they helped create anyway).  The whole fight over net neutrality is not the problem.  It's a <i><b>symptom</b></i> of the real problem: a lack of serious competition in the marketplace.  Get more competitors out there, and increase the fight over customers, and AT&T can't get away with such moves.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20120822/11243320124/att-tries-to-tapdance-around-net-neutrality-regulations.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120822/11243320124/att-tries-to-tapdance-around-net-neutrality-regulations.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120822/11243320124/att-tries-to-tapdance-around-net-neutrality-regulations.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>tap-tap-tap</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120822/11243320124</wfw:commentRss>
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<item>
<pubDate>Wed, 18 Jul 2012 05:11:48 PDT</pubDate>
<title>AT&#038;T May Try To Charge FaceTime Users, Raising Net Neutrality Questions</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20120717/15395619734/att-may-try-to-charge-facetime-users-raising-net-neutrality-questions.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20120717/15395619734/att-may-try-to-charge-facetime-users-raising-net-neutrality-questions.shtml</guid>
<description><![CDATA[ One of the main concerns of those who worry about net neutrality is how a network provider might block or charge extra for competing services.  For example, telcos who still make a fair bit of money from voice services might not like competing services like Skype.  Or... Apple FaceTime.  So it's interesting to see a report from 9to5Mac suggesting that AT&#038;T may be <a href="http://9to5mac.com/2012/07/16/att-appears-set-to-control-and-charge-for-facetime-over-cellular-in-ios-6/" target="_blank">planning to charge extra to use FaceTime over cellular</a>.  This came out when testing iOS6 and receiving a popup requiring "activation."  Here's the screenshot of what 9to5 saw:
<center>
<a href="http://imgur.com/xkAKl"><img src="http://i.imgur.com/xkAKl.png" width=300 /></a>
</center>
This does not absolutely mean that they're going to charge.  Currently, FaceTime only works over WiFi, but iOS6 is set to enable it for cellular.  It's <i>possible</i> that this popup is just because iOS6 is still in beta, and it's just a generic message for a service that is not yet available.  But it's at least raising concerns about the intentions of AT&#038;T, with groups like Free Press <a href="http://www.wired.com/threatlevel/2012/07/facetime-net-neutrality/" target="_blank">already warning that this would violate existing (if contested) FCC rules on net neutrality</a> (which, it should be noted are very, very limited when it comes to mobile services).  To be honest, I'm not sure why AT&#038;T would actually go down this path.  It's already trying to cap and/or meter mobile bandwidth, so it already has a natural restriction on usage.  Furthermore, since the iPhone is now widely available on other platforms, charging extra for FaceTime seems like a perfect strategy for driving iPhone users to other mobile operators.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20120717/15395619734/att-may-try-to-charge-facetime-users-raising-net-neutrality-questions.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120717/15395619734/att-may-try-to-charge-facetime-users-raising-net-neutrality-questions.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120717/15395619734/att-may-try-to-charge-facetime-users-raising-net-neutrality-questions.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>or,-time-to-find-another-carrier</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120717/15395619734</wfw:commentRss>
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<item>
<pubDate>Wed, 11 Jul 2012 09:25:00 PDT</pubDate>
<title>NSA Chief Says NSA Doesn't Need Access To Your Info... As Whistleblowers Say They're Already Getting It</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120711/01291419657/nsa-chief-says-nsa-doesnt-need-access-to-your-info-as-whistleblowers-say-theyre-already-getting-it.shtml</link>
<guid>http://www.techdirt.com/articles/20120711/01291419657/nsa-chief-says-nsa-doesnt-need-access-to-your-info-as-whistleblowers-say-theyre-already-getting-it.shtml</guid>
<description><![CDATA[ The American Enterprise Institute (AEI) recently held <a href="http://www.aei.org/events/2012/07/09/cybersecurity-and-american-power/" target="_blank">an event about cybersecurity and cybersecurity legislation</a>.  The keynote speech was from NSA boss General Keith Alexander.  He of course talked about why he supports cybersecurity legislation, such as CISPA and other proposals that will make it easier for the NSA access private content from service providers -- much of which, reports claim, they're <a href="http://www.techdirt.com/articles/20120317/00381118147/terrifying-look-into-nsas-ability-to-capture-analyze-pretty-much-every-communication.shtml">already capturing</a> and storing.  Alexander has claimed that the NSA <a href="http://www.techdirt.com/articles/20120321/10182618184/nsa-insists-it-doesnt-have-ability-to-spy-american-emails-texts-etc.shtml">doesn't</a> have "the ability" to spy on American emails and such, and reiterates that claim during the Q&#038;A in this session, insisting that the Utah data center doesn't hold data on Americans' emails (and makes a joke about just how many emails that would be to read).  That's nice for him to say, but so many people with knowledge of the situation claim the opposite.
<br /><br />
In fact, in a story that has received almost no attention, the EFF was able to get <a href="https://www.eff.org/press/releases/three-nsa-whistleblowers-back-effs-lawsuit-over-governments-massive-spying-program" target="_blank">three whistleblowers to speak out on the NSA's massive spying infrastructure</a>:
<blockquote><i>
In a motion filed today, the three former intelligence analysts confirm that the NSA has, or is in the process of obtaining, the capability to seize and store most electronic communications passing through its U.S. intercept centers, such as the "secret room" at the AT&#038;T facility in San Francisco first disclosed by retired AT&#038;T technician Mark Klein in early 2006.
</i></blockquote>
So it's interesting to pay attention to what Alexander has to say in pushing for cybersecurity legislation.  You can watch the full video below, if you'd like:
<center>
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Much of what he talks about online involves basic malware and hack attacks.  These are definitely issues -- but are they issues that we need the military (which the NSA is a part of) to step in on?  His "quote" line is that these attacks represent the "greatest transfer of wealth in history."  That is a pretty broad statement, and there's almost no evidence to support it.  He points to studies from Symantec and McAfee on the "costs" of dealing with security issues -- but remember, those are two of the biggest sellers of security software, and have every incentive in the world to inflate the so-called "costs."   Also, seriously?  The "greatest transfer of wealth in history"?  Has he paid absolutely no attention to what's happened on Wall Street and the financial world over the past decade?  Does anyone honestly believe that the amount of money "transferred" due to hack attacks is greater than the amount of money transferred due to dodgy financial deals and the mortgage/CDO mess?  That doesn't pass the laugh test.
<br /><br />
He does insist that worse attacks are coming, but provides no basis for that (or, again, why the NSA needs your info).  In fact, according to a much more believable study, the real risks are <b>not</b> outside threats and hackers, but <a href="http://www.theatlantic.com/technology/archive/12/07/if-hackers-didnt-exist-governments-would-have-to-invent-them/259463/" target="_blank">internal security screwups</a> and disgruntled inside employees.  None of that requires NSA help.  At all.
<br /><br />
But it sure makes for a convenient bogeyman to get new laws that take away privacy rights.
<br /><br />
Alexander, recognizing the civil liberties audience he was talking to, admits that the NSA <b>neither needs nor wants</b> most personal info, such as emails, and repeatedly states that they need to protect civil liberties (though, in the section quoted below, you can also interpret his words to actually mean they don't care about civil liberties -- but that's almost certainly a misstatement on his part):
<blockquote><i>
One of the things that we have to have then [in cybersecurity legislation], is if the critical infrastructure community is being attacked by something, we need them to tell us... at network speed.  <b>It doesn't require the government to read their mail</b> -- or your mail -- to do that.  It requires them -- the internet service provider or that company -- to tell us that that type of event is going on at this time.  And it has to be at network speed if you're going to stop it. 
<br /><br />
 It's like a missile, coming in to the United States.... there are two things you can do.  We can take the "snail mail" approach and say "I saw a missile going overhead, looks like it's headed your way" and put a letter in the mail and say, "how'd that turn out?"  Now, cyber is at the speed of light.  I'm just saying that perhaps we ought to go a little faster.  We probably don't want to use snail mail.  Maybe we could do this in real time.  And come up with a construct that you and the American people know that <b>we're not looking at civil liberties and privacy</b>, but we're actually trying to figure out when the nation is under attack and what we need to do about it.
<br /><br />
Nice thing about cyber is that everything you do in cyber, you can audit.  With 100% reliability.  Seems to be there's a great approach there. 
</i></blockquote>
Now all that's interesting, because if that's true, then why is he supporting legislation that would <b>override any privacy rules</b> that protect such info?  If he really only needs limited information sharing, then why isn't he in favor of more limited legislation that includes specific privacy protections for that kind of information?  He goes back to insisting they don't care about this info later on in the talk, but never explains why he doesn't support legislation that continues to protect the privacy of such things:
<blockquote><i>
The key thing in information sharing that gets, I think, misunderstood, is that when we talk about information sharing, we're not talking about taking our personal emails and giving those to the government.
</i></blockquote>
So make that <i>explicit</i>.  Rather than supporting cybersecurity legislation that wipes out all privacy protections why not highlight <i><b>what kind of information sharing is blocked right now</b></i> and why it's blocked?  Is it because of ECPA regulations?  Something else?  <i>What's the specific problem</i>?  Talking about bogeymen hackers and malicious actors makes for a good Hollywood script, but there's little evidence to support the idea that it's a real threat here -- and in response, Alexander is asking us all to basically wipe out all such privacy protections... because he insists that the NSA doesn't want that kind of info.  And, oh yeah, this comes at the same time that three separate whistleblowers -- former NSA employees -- claim that the NSA is getting exactly that info already.
<br /><br />
So, this speech is difficult to square up with that reality.  If he really believes what he's saying, then why not (1) clearly identify the current regulatory hurdles to information sharing, (2) support legislation that merely amends those regulations and is limited to just those regulations and (3) support much broader privacy protections for the personal info that he insists isn't needed?  It seems like a pretty straightforward question... though one I doubt we'll get an answer to.  Ever.  At least not before cybersecurity legislation gets passed.<br /><br /><a href="http://www.techdirt.com/articles/20120711/01291419657/nsa-chief-says-nsa-doesnt-need-access-to-your-info-as-whistleblowers-say-theyre-already-getting-it.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120711/01291419657/nsa-chief-says-nsa-doesnt-need-access-to-your-info-as-whistleblowers-say-theyre-already-getting-it.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120711/01291419657/nsa-chief-says-nsa-doesnt-need-access-to-your-info-as-whistleblowers-say-theyre-already-getting-it.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>cyber-security?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120711/01291419657</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 9 Jul 2012 07:15:00 PDT</pubDate>
<title>Mobile Operators Responded To An Astounding 1.3 Million Requests For Subscriber Info</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20120708/23073419616/mobile-operators-responded-to-astounding-13-million-requests-subscriber-info.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20120708/23073419616/mobile-operators-responded-to-astounding-13-million-requests-subscriber-info.shtml</guid>
<description><![CDATA[ We've talked for a while about just how often law enforcement seeks information from mobile operators -- often without getting any actual warrant -- knowing that it was astounding.  But after an article from a few months ago in the NY Times noting that it was both <a href="http://www.nytimes.com/2012/04/01/us/police-tracking-of-cellphones-raises-privacy-fears.html?ref=us" target="_blank">routine</a> and <i>a big business</i> for mobile operators, who charge law enforcement for each request, Rep. Ed Markey asked all of the major mobile operators just how often they get requests from law enforcement for subscriber info, and discovered that last year <a href="http://www.nytimes.com/2012/07/09/us/cell-carriers-see-uptick-in-requests-to-aid-surveillance.html?_r=2&#038;hp&#038;pagewanted=all" target="_blank">they responded to an astounding 1.3 million requests</a> for subscriber info -- including location info, text messages and other data.  And, apparently, this number likely undercounts the true size, because it notes that there was "incomplete record-keeping" in some cases.  Oh yeah, and also, this just requests, not individuals -- a single request might include multiple people whose information was being sought.  So, an awful lot of people were spied on this way.
<br /><br />
Not surprisingly, the number of requests continues to rise drastically, with AT&#038;T admitting that it had seen a tripling in requests in the last five years.  As the report notes:
<blockquote><i>
AT&#038;T alone now responds to an average of more than 700 requests a day, with about 230 of them regarded as emergencies that do not require the normal court orders and subpoena....  Sprint, which did not break down its figures in as much detail as other carriers, led all companies last year in reporting what amounted to at least 1,500 data requests on average a day.
</i></blockquote>
This isn't a huge surprise, but does raise significant questions about how reasonable these information trawling operations are.  Do we honestly believe that law enforcement needed all of that info?  This seems like a case where, of course, if the info is easy to get, law enforcement wants it.  But is that reasonable?
<br /><br />
And, telcos have little incentive to stand up for the rights of their users.  They actually make money from these kinds of requests:
<blockquote><i>
AT&#038;T, for one, said it collected $8.3 million last year compared with $2.8 million in 2007, and other carriers reported similar increases in billings.
</i></blockquote>
For a company that large, this isn't a major cash cow, but it is something.  It's unclear how carefully the telcos review the request.  At least one (smaller) telco, C Spire Wireless, reported that it had rejected about 15% of the requests, but most of the other operators didn't provide any info on rejections (and it makes you wonder if they ever rejected any requests at all).
<br /><br />
None of this is surprising.  When such a tool is available, it's almost impossible for it not to be abused.  It's just <i>too easy</i> for law enforcement to snoop on anyone's location or text messages, and they can't resist doing so.  It seems like telcos (1) could be a lot more transparent about this.  While <a href="https://www.techdirt.com/articles/20111026/01374816513/google-reveals-70-increase-requests-content-removal-including-law-enforcement-wanting-to-hide-police-brutality.shtml">Google</a> and <a href="https://www.techdirt.com/articles/20120705/04541219589/twitters-transparency-report-reveals-takedown-information-requests.shtml">Twitter</a> both have voluntarily opened up to provide data on law enforcement requests, the only reason this info became public from the mobile operators was because of Markey's request.  On top of that, it seems that the rules concerning an individual's privacy rights should also be a lot clearer, to give the telcos more ammo to push back against bogus requests.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20120708/23073419616/mobile-operators-responded-to-astounding-13-million-requests-subscriber-info.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120708/23073419616/mobile-operators-responded-to-astounding-13-million-requests-subscriber-info.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120708/23073419616/mobile-operators-responded-to-astounding-13-million-requests-subscriber-info.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>you-have-no-privacy</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120708/23073419616</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 7 May 2012 10:22:00 PDT</pubDate>
<title>AT&#038;T Argues That More Competition Is Bad For You &#038; Leads To Higher Prices</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120504/01472218773/att-argues-that-more-competition-is-bad-you-leads-to-higher-prices.shtml</link>
<guid>http://www.techdirt.com/articles/20120504/01472218773/att-argues-that-more-competition-is-bad-you-leads-to-higher-prices.shtml</guid>
<description><![CDATA[ Apparently AT&#038;T-land is a place where basic economics doesn't apply.  AT&#038;T boss Randall Stephenson, still hurt from the rejection of his attempted merger with T-Mobile, is telling the world that <a href="http://www.dslreports.com/shownews/ATT-CEO-Theres-Too-Many-Damn-Competitors-119320" target="_blank">greater competition means higher prices and less efficient markets</a>.  That this goes against nearly all understanding of economics seems like an important point that would be worth bringing up to Stephenson, but apparently the reporters present didn't bother.  In particular, he claims that AT&#038;T had to increase its data rates by 30% because it doesn't own T-Mobile.  That makes no sense, but okay.  Then he claims that competition makes things less efficient:
<blockquote><i>
"The more competitors you have, the less efficient the allocation of spectrum will be," he said. "It's got to change. I don't think the market's going to accommodate the number of competitors there are in the landscape."
</i></blockquote>
This is how a monopolist argues: if we controlled everything, why things would be much more efficient.  He's seriously arguing that the fact that they have to compete for resources means that they can't get the same level of monopoly rents.  Yeah, that's called capitalism, where you actually have to compete in the market.  I mean, I'm sure UPS hates that it has to share the roads with Fedex (so inefficient), but it's actually good for the consumers to have real competition.  Apparently, though, AT&#038;T has a different point of view.<br /><br /><a href="http://www.techdirt.com/articles/20120504/01472218773/att-argues-that-more-competition-is-bad-you-leads-to-higher-prices.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120504/01472218773/att-argues-that-more-competition-is-bad-you-leads-to-higher-prices.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120504/01472218773/att-argues-that-more-competition-is-bad-you-leads-to-higher-prices.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>economics-free-zone</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120504/01472218773</wfw:commentRss>
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<item>
<pubDate>Wed, 18 Apr 2012 14:39:00 PDT</pubDate>
<title>Verizon Sued For Promising Faster Broadband Than It Could Deliver</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120411/21081218461/verizon-sued-promising-faster-broadband-than-it-could-deliver.shtml</link>
<guid>http://www.techdirt.com/articles/20120411/21081218461/verizon-sued-promising-faster-broadband-than-it-could-deliver.shtml</guid>
<description><![CDATA[ Years ago, we used to joke about the prevalence of "up to" language in the marketing around any kind of broadband connection.  You'd see claims of speeds that could be reached in huge letters, but right before that, in fine print, would be an "up to."  So sign up now to get "up to" 3 Mb per second.  Of course that means anything less than that qualifies.  Hell, they could argue any top speed, and as long as they included the "up to," they could get away with it.  Eventually there was some cracking down on that and some threats that such language was potentially misleading, and companies have been somewhat (but not totally) clearer in describing their speeds.  But, when it comes to DSL, there are other problems as well, including the general limitations on speed based on how far you are from the central office (CO).  For reasons that still escape me, DSL providers seem notoriously bad at being able to predict ahead of time just how far you really are and what kind of speeds you can get.  In the past, I've had these arguments with my DSL provider -- even to the point where a few years ago, when I had terrible DSL (despite living in the middle of Silicon Valley), I actually had an AT&#038;T rep tell me that the company never should have provisioned my DSL because I was simply "too far" from the CO.
<br /><br />
Either way, this confusion over distance has resulted in a new lawsuit -- which is trying to become a class action lawsuit -- against Verizon in California <a href="http://paidcontent.org/2012/04/10/woman-sues-verizon-for-lying-about-internet-speed/" target="_blank">for over-promising speeds</a>.  This isn't just about the "up to" speeds being marketed.  In this case, a woman was convinced to upgrade her account from a 768k top speed account to a 1.5 Mb top speed account -- at $10 more per month -- only to find that her line could only handle the 768k, based on her distance from the CO.  She then had a Verizon rep tell her she should downgrade her account, but the company was unwilling to reimburse her for the higher fees she paid on a level of service she couldn't technically get.
<br /><br />
Whether or not this specific suit has merit, it does highlight just how confused the DSL providers often are, where each time you call or speak to a rep, you will get different info.  In another situation that I once had, I called to sign up for DSL a few years ago, and the rep told me that I couldn't get it at my location.  When I said I was surprised, she told me to wait as she tried it on her "other computer," and that one said I could get DSL.  It seems that even the DSL providers don't seem to have very good or consistent information themselves, so it's little surprise that customers get conflicting reports -- some of which lead them to paying too much for services they can't actually use.<br /><br /><a href="http://www.techdirt.com/articles/20120411/21081218461/verizon-sued-promising-faster-broadband-than-it-could-deliver.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120411/21081218461/verizon-sued-promising-faster-broadband-than-it-could-deliver.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120411/21081218461/verizon-sued-promising-faster-broadband-than-it-could-deliver.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>up-to</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120411/21081218461</wfw:commentRss>
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<item>
<pubDate>Fri, 23 Mar 2012 12:24:00 PDT</pubDate>
<title>Feds Finally Realize That AT&#038;T Has Been Enabling Scammers To Abuse IP Fraud... Financed By Taxpayers</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120323/02570318219/feds-finally-realize-that-att-has-been-enabling-scammers-to-abuse-ip-fraud-financed-taxpayers.shtml</link>
<guid>http://www.techdirt.com/articles/20120323/02570318219/feds-finally-realize-that-att-has-been-enabling-scammers-to-abuse-ip-fraud-financed-taxpayers.shtml</guid>
<description><![CDATA[ We first wrote about IP Relay fraud all the way back in <a href="http://www.techdirt.com/articles/20040916/1244228.shtml">2004</a>, when it was pointed out that a huge percentage of calls using this system were fraudulent, and the telcos were doing nothing to stop it, because they were profiting at the taxpayer's expense.  If you're unfamiliar with the system, IP Relay has a good <i>intention</i>: to help hearing impaired people communicate -- allowing them to send text-based messages to phone numbers, which are then read by operators.  In order to fund this service, the FCC pays telcos an astounding $1.50 per minute on such calls.   Scammers, however, quickly realized that this was a way to make free, almost totally anonymous, calls.  And the telcos had every incentive to encourage <i>any</i> usage, scammy or not, since it meant they got paid (from taxpayers).
<br /><br />
The fact that all of this was obvious eight years ago but it was only just now that feds decided to <a href="http://www.dslreports.com/shownews/Government-Sues-ATT-for-Millions-in-IP-Relay-Fraud-118940" target="_blank">sue AT&#038;T for abusing the system</a> is pretty incredible.  To be fair, the FCC passed rules in 2008 that required telcos try to register users to verify who they were (to take away some of the anonymity of the system).  The key issue with this lawsuit is the claim that AT&#038;T <i>intentionally</i> implemented an authentication system that wouldn't work.  In other words, it purposely scammed taxpayers out of a ton of money:
<blockquote><i>
The United States alleges that AT&#038;T violated the False Claims Act by facilitating and seeking federal payment for IP Relay calls by international callers who were ineligible for the service and sought to use it for fraudulent purposes.   The complaint alleges that, out of fears that fraudulent call volume would drop after the registration deadline, AT&#038;T knowingly adopted a non-compliant registration system that did not verify whether the user was located within the United States.   The complaint further contends that AT&#038;T continued to employ this system even with the knowledge that it facilitated use of IP Relay by fraudulent foreign callers, which accounted for up to 95 percent of AT&#038;T&#8217;s call volume.   The government&#8217;s complaint alleges that AT&#038;T improperly billed the TRS Fund for reimbursement of these calls and received millions of dollars in federal payments as a result.
</i></blockquote>
As Karl Bode at Broadband Reports notes, if you start doing the math, the claim that this is about "millions of dollars" may be a "severe under-estimate."  We're talking about 95% of all of these calls, done for many years, being fraudulent, with AT&#038;T having no incentive to cut them out, and scammers having tremendous incentive to use the service as well.  Again, all of this done with taxpayers footing the bill.  While AT&#038;T definitely deserves scorn for allegedly purposely choosing to set up a bogus registration system, a ton of blame has to go to the government for letting all of this happen for so damn long, and not recognizing just how much AT&#038;T was fleecing taxpayers for under the system (not to mention all of the scams this probably helped enable).<br /><br /><a href="http://www.techdirt.com/articles/20120323/02570318219/feds-finally-realize-that-att-has-been-enabling-scammers-to-abuse-ip-fraud-financed-taxpayers.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120323/02570318219/feds-finally-realize-that-att-has-been-enabling-scammers-to-abuse-ip-fraud-financed-taxpayers.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120323/02570318219/feds-finally-realize-that-att-has-been-enabling-scammers-to-abuse-ip-fraud-financed-taxpayers.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>took-'em-long-enough</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120323/02570318219</wfw:commentRss>
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<item>
<pubDate>Wed, 14 Mar 2012 16:05:02 PDT</pubDate>
<title>AT&#038;T Threatens To Cut Off Phone Service For Guy Who Beat Them In Small Claims Court Over Throttling</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20120314/04211918101/att-threatens-to-cut-off-phone-service-guy-who-beat-them-small-claims-court-over-throttling.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20120314/04211918101/att-threatens-to-cut-off-phone-service-guy-who-beat-them-small-claims-court-over-throttling.shtml</guid>
<description><![CDATA[ As you may have heard over the last couple months, AT&#038;T has gone to war with customers who bought its "unlimited" data plans.  While the company no longer offers such plans, existing users were grandfathered in.  And they like those plans.  AT&#038;T, however, would prefer to move them over to tiered plans under which they'll pay more.  So it began <a href="http://www.dslreports.com/shownews/118235" target="_blank">throttling</a> their connections.  If they were using a fair amount of data (really not that much), it slowed their connection down to the point of being basically useless.  This is a pure bait-and-switch tactic, where the company sold customers something that it then failed to deliver.
<br /><br />
A guy named Matt Spaccarelli felt that this was a clear breach of contract and sued in small claims court... <a href="http://business.time.com/2012/02/27/can-every-iphone-user-sue-att-for-850/" target="_blank">and won $850</a> ($85 is his monthly fee, and the judge felt that there were 10 months left on the contract that was violated... so, $850).   Spaccarelli then also <a href="http://taporc.com/" target="_blank">set up a website</a> with all the details, so that others could file their own lawsuits.  Apparently, AT&#038;T is none too pleased about this and is <a href="http://www.google.com/hostednews/ap/article/ALeqM5i6NTGmVWWu09o9CowPfi36ILosNQ" target="_blank">playing hardball with the guy</a>, threatening to cut off his phone service after determining that he used the phone to tether.
<br /><br />
How nice, right?  Beat AT&#038;T in small claims court, and they'll potentially cut off your phone service.
<br /><br />
Separately, they're trying to "settle" with him, but are pissed off that he's been public about the settlement attempts so far, as the key thing in the mind of AT&#038;T lawyers and execs is getting a gag order in place to stop others from going down the same path.  Of course, there's no requirement that Spaccarelli settle or agree to any gag order, and it sounds like he's not planning to:
<blockquote><i>
Spaccarelli has posted online the documents he used to argue his case and encourages other AT&#038;T customers copy his suit. Legal settlements usually include non-disclosure agreements that would force Spaccarelli to take down the documents.
<br /><br />
In its letter, AT&#038;T asked Spaccarelli to be quiet about the settlement talks, including the fact that it offered to start them, another common stipulation. Spaccarelli said he was not interested in settling, and forwarded the letter to The Associated Press.
</i></blockquote>
Good for him.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20120314/04211918101/att-threatens-to-cut-off-phone-service-guy-who-beat-them-small-claims-court-over-throttling.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120314/04211918101/att-threatens-to-cut-off-phone-service-guy-who-beat-them-small-claims-court-over-throttling.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120314/04211918101/att-threatens-to-cut-off-phone-service-guy-who-beat-them-small-claims-court-over-throttling.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>playing-dirty</slash:department>
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<pubDate>Fri, 2 Mar 2012 04:25:32 PST</pubDate>
<title>Intellectual Ventures Sues AT&#038;T, Sprint And T-Mobile; While Saying That Such Lawsuits Are Evidence Of Progress</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20120301/02342917921/intellectual-ventures-sues-att-sprint-t-mobile-while-saying-that-such-lawsuits-are-evidence-progress.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20120301/02342917921/intellectual-ventures-sues-att-sprint-t-mobile-while-saying-that-such-lawsuits-are-evidence-progress.shtml</guid>
<description><![CDATA[ After years of not suing anyone (but always threatening that it might, someday), Intellectual Ventures has become more and more aggressive of late in suing lots of companies.  A few weeks ago it <a href="http://www.m-cam.com/patently-obvious/cracking-whip-intellectual-property-analysis-intellectual-ventures-v-att-et-al" target="_blank">sued AT&#038;T, Sprint and T-Mobile</a> over a bunch of patents that (of course) involved some of IV's favorite shell companies.  Just as it was preparing this lawsuit, a VP from IV went public with an attempt to argue that <a href="http://www.forbes.com/sites/forbesleadershipforum/2012/02/09/no-the-patent-system-is-not-broken/" target="_blank">all this litigation is a sign of innovation at work</a>.  The article is rather shocking in how it presents its argument.  It mainly relies on false claims that correlation means causation, concerning historical periods of innovation and lawsuits over patents.  Of course, what it ignores is that the patent fights often <i>come right after</i> the innovation, not before.  In other words, the patent battles aren't a sign that innovation is working.  Rather it's a sign of patent holders freaking out that others are innovating.  It's entirely about hindering innovation, not helping move it forward.
<br /><br />
Along those lines, the folks at M-CAM who continue to call out bogus claims in patent lawsuits <a href="http://www.m-cam.com/patently-obvious/cracking-whip-intellectual-property-analysis-intellectual-ventures-v-att-et-al" target="_blank">analyzed the patents in this IV lawsuit</a> and found them... well... lacking:
<blockquote><i>
Our systems found nearly 500 AT&#038;T patents, with similar claims, that predate the fifteen asserted patents. Sprint Nextel also owns 12 patents that predate the asserted portfolio.
</i></blockquote>
M-CAM also questions the claims that these lawsuits have anything at all to do with innovation, and hint at more nefarious reasons for the use of a bunch of <a href="http://www.techdirt.com/articles/20100217/1853298215.shtml">shell companies</a>:
<blockquote><i>
Is IV&#8217;s patent litigation helping inventors or investors? Considering that the bulk of the patents in suit were each &#8220;acquired&#8221; from what the USPTO characterizes as a &#8220;merger&#8221; with a different relatively unknown LLC, we&#8217;ll let you decide. Seems to us that it simply represents an attempt to use opacity and &#8220;hidden weapons&#8221; for a tactical assault having ABSOLUTELY NOTHING to do with innovation. In fact, these kinds of structures are also typically employed for tax &#8220;optimization&#8221; which is to say, to avoid paying taxes for any economic gains resulting from a successful assault, ahem sorry again, we mean &#8220;settlement&#8221;.
</i></blockquote>
By the way, you may have noticed that Verizon is conspicuously absent from the list of mobile operators being sued here.  That's because Verizon paid the entrance fee and is a "member" in the IV club... which apparently only cost the company <a href="http://www.techdirt.com/articles/20100301/0202228334.shtml">$350 million</a>.  Oh yeah... and it then became an enabler. One of the patents in the new lawsuit... once was owned by Verizon.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20120301/02342917921/intellectual-ventures-sues-att-sprint-t-mobile-while-saying-that-such-lawsuits-are-evidence-progress.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120301/02342917921/intellectual-ventures-sues-att-sprint-t-mobile-while-saying-that-such-lawsuits-are-evidence-progress.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120301/02342917921/intellectual-ventures-sues-att-sprint-t-mobile-while-saying-that-such-lawsuits-are-evidence-progress.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-chutzpah</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120301/02342917921</wfw:commentRss>
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<pubDate>Wed, 29 Feb 2012 06:25:44 PST</pubDate>
<title>AT&#038;T's New Scheme To Double Charge For Data: Call It A 1-800 Number For Internet Content</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20120228/17203917903/ats-new-scheme-to-double-charge-data-call-it-1-800-number-internet-content.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20120228/17203917903/ats-new-scheme-to-double-charge-data-call-it-1-800-number-internet-content.shtml</guid>
<description><![CDATA[ Some of you youngsters may not remember what really kicked off the big "net neutrality" fight over the past few years.  It was back in 2005, when then AT&#038;T CEO Ed Whitacre suggested that <a href="http://www.techdirt.com/articles/20051031/0354228.shtml">internet companies should pay</a> a second time to reach users.  This was particularly nefarious.  What Whitacre was suggesting was actually that AT&#038;T get to double charge everyone.  That's because the way it was (and still) is that everyone pays for their own bandwidth -- including the big internet services like Google.  However, the way Whitacre was describing it, the bandwidth you got only paid for half the transit.  That is, you only paid for your bandwidth from your premise to "the cloud" but not back out to any end machine.  That that bandwidth was paid for by whoever owns those end machines was entirely ignored.  So the plan was not just that Google would pay for its own bandwidth, but that Google would <i>also</i> pay for your bandwidth to get Google to your computer (ignoring that you already paid for it).
<br /><br />
That didn't go over so well with people, and got particularly ridiculous when Mike McCurry, running an AT&#038;T lobbying effort, insisted that <a href="http://www.techdirt.com/articles/20060801/0219252.shtml">Google didn't pay a dime</a> for its bandwidth.  For rather obvious reasons, he refused my proposition that he agree to pay Google's bandwidth bills.
<br /><br />
Either way, it appears that the brilliant minds at AT&#038;T have been trying to devise a new way to present such a plan that doesn't leave them so open to charges of being greedy double chargers -- and they may have found it by focusing on the mobile world, with their new love of "tiered" and "capped" plans that limit how much bandwidth you actually get.  What they're going to do is <a href="http://www.dslreports.com/shownews/ATT-Devises-Entirely-New-Wireless-Troll-Toll-118556" target="_blank">charge app makers a fee to offer their services to you in a way that the data doesn't count against your cap</a>.  They describe it as an "800 number for the mobile internet."  
<blockquote><i>
"A feature that we're hoping to have out sometime next year is the equivalent of 800 numbers that would say, if you take this app, this app will come without any network usage," Donovan said on the sidelines of a mobile-industry conference here. It's far from clear how willing technology companies would be to pay wireless carriers for data use. Mr. Donovan said there was interest from companies who could use the feature to drum up new business from customers wary of using data-heavy services like mobile video.
</i></blockquote>
This is nefariously brilliant.  People associate 800 numbers with toll-free phone calls, so it's kind of like that... except it isn't anything like that at all.  It's just a way to get companies to pay for the data connection you're already paying for.  But the end result is exactly like what Whitacre wanted five years ago: get the app providers to pay double for bandwidth.  Karl Bode summarizes the whole ridiculous plan as only he can (via that link above):
<blockquote><i>
The end result is the same, with AT&#038;T imposing bizarre tolls on content companies to obtain preferred customer status, picking winners and losers while retaining power in the wireless ecosystem.
<br /><br />
It's an idea we're sure AT&#038;T will pitch as a cost-saving endeavor for consumers, but given this is AT&#038;T, you'd be naive to think cost savings will be in the equation. You'll still pay the same data rates, content companies will now just pay a fee to obtain preferred "reduced cap impact" status, then pass the higher development costs on to you. It's a ridiculous and dangerous idea, and the fallout will likely be similar to AT&#038;T's "free ride" comments. AT&#038;T executives either don't care how bad these ideas make them look, or don't realize it thanks to too many isolated meetings at headquarters packed with telco-think yes men.
<br /><br />
Eventually you start to think that AT&#038;T executives should just stop thinking before they hurt someone or themselves. If AT&#038;T put half as much energy into running a top-flight network with quality support as they did cooking up hare-brained troll toll schemes -- they might just stop coming in last place in all major customer satisfaction studies.
</i></blockquote>
This is really just another reason why the telcos are pushing so hard to move users <a href="http://www.techdirt.com/blog/wireless/articles/20120224/10500217867/study-confirms-what-you-already-knew-mobile-data-throttling-about-money-not-stopping-data-hogs.shtml">into unnecessary tiered plans</a> -- because they can't pull off scams like this on unlimited data plans nearly as easily.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20120228/17203917903/ats-new-scheme-to-double-charge-data-call-it-1-800-number-internet-content.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120228/17203917903/ats-new-scheme-to-double-charge-data-call-it-1-800-number-internet-content.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120228/17203917903/ats-new-scheme-to-double-charge-data-call-it-1-800-number-internet-content.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ignoring-how-the-internet-already-works</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120228/17203917903</wfw:commentRss>
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<pubDate>Fri, 24 Feb 2012 13:55:00 PST</pubDate>
<title>Study Confirms What You Already Knew: Mobile Data Throttling About The Money, Not Stopping Data Hogs</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20120224/10500217867/study-confirms-what-you-already-knew-mobile-data-throttling-about-money-not-stopping-data-hogs.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20120224/10500217867/study-confirms-what-you-already-knew-mobile-data-throttling-about-money-not-stopping-data-hogs.shtml</guid>
<description><![CDATA[ Of the four national mobile operators, only Sprint still offers an "unlimited" data plan -- and most industry watchers expect that to go away soon.  When the operators talk about this stuff, they complain about how unlimited plans are abused and the amount of data being used by so-called "data hogs" is crippling network bandwidth.  Of course, the alternative story is that they just want to charge people higher rates, and putting a toll booth on data usage makes that possible.  A new study by Validas confirms that the latter theory seems to match with reality.  The company looked at 11,000 mobile phone bills of users on both throttled (tiered) plans and unlimited data plans and found... <a href="http://blog.validas.com/blog/2012/02/17/why_throttle/" target="_blank">data usage was effectively the same</a>.  In other words, for all the talk about how tiers and throttles are needed to stop bandwidth hogging... reality shows that these plans have little impact on actual data usage.  Or, to put it really simply: these plans are all about the mobile operators making more money and have nothing to do with network capacity.
<br /><br />
Of course, as I've argued in the past, this is a pretty short-sighted strategy by the mobile operators.  While they have every right to set up whatever business models they want in order to maximize profit, this might come back to haunt them.  The problem with a tiered or throttled data plan is that it actually <i>makes the mobile data service <b>less valuable</b></i>.  Not only does it cost more for the same usage, it adds <i>mental transaction costs</i> as users have to keep track of their usage.  That's only going to make people value <i>alternatives</i> much more.  The carriers can get away with that if there are no alternatives (as is the case some of the time), but as more alternatives hit the market, expect people to shift their usage to networks they can actually use without fear.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20120224/10500217867/study-confirms-what-you-already-knew-mobile-data-throttling-about-money-not-stopping-data-hogs.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120224/10500217867/study-confirms-what-you-already-knew-mobile-data-throttling-about-money-not-stopping-data-hogs.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120224/10500217867/study-confirms-what-you-already-knew-mobile-data-throttling-about-money-not-stopping-data-hogs.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it's-all-about-the-$$$</slash:department>
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<pubDate>Mon, 19 Dec 2011 18:58:00 PST</pubDate>
<title>Surprise! AT&#038;T Admits Defeat, Withdraws T-Mobile Takeover Attempt, Pays $4 Billion Breakup Fee</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20111219/14585317132/surprise-att-admits-defeat-withdraws-t-mobile-takeover-attempt-pays-4-billion-breakup-fee.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20111219/14585317132/surprise-att-admits-defeat-withdraws-t-mobile-takeover-attempt-pays-4-billion-breakup-fee.shtml</guid>
<description><![CDATA[ This is definitely a surprise, but it looks like AT&#038;T finally read all the writing on the wall, and realized it was unlikely to win its fight with the DOJ and FCC and has <a href="http://www.att.com/gen/press-room?pid=22146&#038;cdvn=news&#038;newsarticleid=33560&#038;mapcode=corporate" target="_blank">officially killed its plan to try to purchase T-Mobile</a>... meaning that it now has to pay the $4 billion breakup fee.  While the trend of where this was heading was becoming increasingly obvious over the past few months, it's still pretty shocking on the whole.  Getting big mergers like this through had become pretty standard, and AT&#038;T (especially) excelled at the political dealing to make such things work.  However, the growing public outcry and concerns over the lack of competition that would result seemed to finally have had a real impact.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20111219/14585317132/surprise-att-admits-defeat-withdraws-t-mobile-takeover-attempt-pays-4-billion-breakup-fee.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20111219/14585317132/surprise-att-admits-defeat-withdraws-t-mobile-takeover-attempt-pays-4-billion-breakup-fee.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20111219/14585317132/surprise-att-admits-defeat-withdraws-t-mobile-takeover-attempt-pays-4-billion-breakup-fee.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>wow</slash:department>
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