Albert Gonzalez, a self taught computer hacker from Miami was sentenced to 20 years in prison. Gonzalez was behind one of the largest credit and debit card thefts in United States history. Working under the names “soupnazi,” “segvec,” and “j4guar,” Gonzalez’s  theft cost companies, banks and insurers almost $200 million.   

Gonzalez served as a federal informant after being arrested for hacking in 2003. But then, last year, Gonzalez pleaded guilty to breaking into the computer of major retailers (some of which were BJ’s, Barnes & Noble, OfficeMax, Dave and Busters, TJX).

 Gonzalez was indicted  for conspiracy to commit wire fraud,  after authorities said that he and two other men would drive past retailers with laptop computers and tap into the unsecure wireless signals.  Then, the three men would install a “sniffer program” which got the information of credit and debit cards as they were entered into the computers of the retailer. Then, the trio would sell those numbers overseas on the black market and by taking a lot of money out of ATMs. The AUSAs assigned to his case, Stephen Heymann, said he thought Gonzalez stole tens of millions of cards.  It is thought that Gonzalez made over $2.8 million with which he purchased a Tiffany’s ring, Rolex watches, a car, and a condo in Miami.

 Judge Patti Saris sentenced him to the middle of the 15-25 year range that was agreed upon in a plea agreement between the prosecutors and Gonzalez.  Originally the prosecutors wanted the maximum, 25 year sentence while Gonzalez’s attorney asked for 15. Judge Saris sentenced Gonzalez to two 20 year terms to run concurrently, one for the case in Massachusetts including OfficeMax, TJX, etc and the other for the New York Case involving Dave and Buster’s.  She also sentenced him to three years of supervised release after completing his prisont term where he shall have no access to a computer.  Under the plea deal, Gonzalez has to forfeit over $2.7 million o the $2.8 million that he stole as well as give up the condo, car, ring and Rolex watches. The judge set a separate hearing during the summer to determine the amount of restitution Gonzalez will have to pay to the retailers, although the judge did recognize that he probably would be unable to pay what she expects to order.

 After being sentenced, Gonzalez blamed his behavior on an addiction to internet pursuits and sobbed while apologizing to his family.  Defense counsel cited a report from a psychiatrist claiming that Gonzalez has an Internet addiction and that the computer “is his drug.” Furthermore, after becoming an informant, the authorities say that over the next five years he hacked into many systems while “helping” the government.

 Gonzalez is also scheduled to be sentenced by another judge in Boston regarding a case in New Jersey where Gonzalez hacked into a 7-Eleven, Heartland and a Hannaford Bros supermarket.

Lindsay Lohan has recently filed a complaint against E*Trade after its “Baby Girlfriend” commercial, first aired during the Superbowl, mentioned a “milkaholic” named Lindsay. The complaint alleges that E*Trade used Lohan’s name and characteristics without her permission. In my opinion, only a self-indulgent Hollywood star would think it was referring to a specific person. But Lohan’s lawyers seem to think that this commercial is “causing and threaten[s] to cause immediate and irreparable damage to the plaintiff.” Lindsay and her attorneys are asking for an injunction as well at both $50 million in compensatory damages and $50 million in exemplary damages.

A former TSA contractor, Douglas Duchak, is being charged with injecting codes of a malicious nature into the government network used for screening people at the airport. The code was allegedly designed to disrupt and damage the data on the servers. The network that was attacked is the same network that stores the information from the government about the terrorist watchlist, criminal histories of travelers, and so on. A week before the malicious code was transferred, Duchak was told that his job would be terminated. Although Duchak pled not guilty and was released on bonds, he was charged with two counts of attempting to cause damage to protected computers. The maximum sentence for this crime is 10 years and $250,000 for each count. Duchak’s defense is that the system that he worked on was in a beta stage and was being used for testing statistical analysis and was not in any way connected with security.

The Americans with Disabilities Act prohibits state and local governments and other “places of public accommodation” from discriminating against individuals with disabilities.   Under the ADA, a place of public accommodation “shall take those steps that may be necessary to ensure that no individual with a disability is excluded, denied services, segregated or otherwise treated differently than other individuals because of the absence of auxiliary aids and services, unless the public accommodation can demonstrate that taking those steps would fundamentally alter the nature of the goods, services, facilities, privileges, advantages, or accommodations being offered or would result in an undue burden, i.e., significant difficulty or expense.”

The ADA does not specify what is meant by a “place” of public accommodation.  A case is now pending, Stern v Sony, which will determine whether an online gaming forum would constitute a a place of public accommodation. In 1996, the DOJ’s Civil Rights office stated that the provisions of the ADA should apply to Internet websites. But federal courts are split on this issue. In 1994, in Carpats Distribution Center v. Automotive Wholesalers Ass’n of New England, the court decided that a public accommodation includes areas more than physical structures. Dicta in a 1999 case, Doe v. Mutual of Omaha Insurance Company, also suggested that electronic websites could be considered in public facilities.

However, other courts have stated that the ADA was intended to apply only to an actual physical location. For example, the court in Ford v. Schering-Plough Corporation did not allow the ADA to be extended to an insurance policy as it should only apply to actual physical places.

As we become increasingly more dependent on the Internet, the threat of cyber attacks has become a pressing concern. Dennis C Blair, the director of National Intelligence, has said to the Senate Intelligence Committee that “malicious cyber activity is occurring on an unprecedented scale with extraordinary sophistication.”

In a recent simulated cyber attack, a “March Madness” application was made available for smart phones, which was downloaded by many college basketball fans.  While the users thought that they were simply following their favorite teams, their passwords were being stolen and their emails intercepted. The March Madness application hid a spyware program that could hack into these smart phones.  The madness that ensued transcended the basketball games on the court. This spyware affected over 60 million cellphones and various electric grids across the nation. The simulated cyber attack was named “Cyber Shockwave.”

After the exercise, former White House advisors and other officials joined together in order to discuss the vulnerabilities of our nation’s digital infrastructure. In order to discuss such vulnerabilities, these leaders participated in a three hour simulated crisis meeting. The event was run by the Bipartisan Policy Center in Washington DC. None of the panelists knew what the scenario was in advance and they were supposed to act as they would if the scenario was real. However, the results of this meeting hardly assuaged anyone’s woes of the dangers of cyber attacks.  Although each advisor suggested various solutions to the fake attack, there was no overarching idea of how to prevent such an attack.

Harriton High School is Pennsylvania has been using laptop webcams for a new, unconventional reason, at least according to parents. One  family has alleged that the school was using the webcam to spy on their fifteen year old son. Of course, this accusation has created a frenzy with the other parents, the school district, and civil liberties groups. One family submitted a motion to Judge Jan DuBois requesting a restraining order against the activation of the webcam which they refer to a “peeping tom technology”. The complaint further states that the school periodically turns on the cameras on the computers to monitor the student and their usage of the computer issued by the county and that “many of the images captured and intercepted may consist of images of minors and their parents or friends in compromising or embarrassing positions, including, but not limited to, in various stages of dress or undress.” The school has insisted that the camera is only turned on if the laptop was lost or stolen in order to find the missing equipment.

The Robbins’ motion was prompted by their son being accused by the assistant principle of Harriton High of taking and selling drugs. The student claims that he was eating candy but the school says that using images of the student from the webcam, they witnessed the drug handling. The Robbins said that their child was at home while using a computer that was not reported as lost or stolen and that pictures were taking of him without the permission of his parents while he was at home.

In August of 2007, the USPTO issued new patent rules that set the limit on continuation applications, requests for continued examination and the examination of claims in applications. The goal of these rules was to reduce backlog of applications and make the process more efficient. However, they immediately became the subject of controversy and litigation.

Recently, the USPTO announced that it is rescinding the new patent rules. Furthermore, there is a motion to dismiss and a motion to vacate the decision on the rules that was litigated in Tafas v. Dudas, which will be filed jointly with GlaxoSmithKline (one of the plaintiffs).

Davis Kappos, the Director of the USPTO stated that the rules have been rescinding because “(t)he USPTO should incentivize innovation, develop rules that are responsive to its applicants’ needs and help bring their products and services to market . . . (i)n taking the actions we are announcing today, we hope to engage the applicant community more effectively on improvements that will help make the USPTO more efficient, responsive, and transparent to the public.”

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Professor John Reece Roth of the University of Tennessee was sentenced to 48 months in prison for violating the Arms Export Control Act. According to the indictment, Roth conspired with Atmospheric Glow Technologies (AGT) to illegally export and did export technical information relating to Air Force research to the People’s Republic of China. AGT had contracts with the US Air Force to conduct research and they hired Roth to help them.

Roth exported technical information known as “Technical Data” that related to his illegal disclosure and transport of restricted military information associated with the Air Force that related to developing plasma technology for an air vehicle (a drone). The illegal exports involved specific information about the drones that had been designed and was being tested for use as weapons or surveillance.

The Arms Export Control Act prohibits exporting defense related material to a foreign country. The exports included in this prohibition are “deemed exports” which are described as the unauthorized release of technology to a foreign national either domestically or overseas. A foreign national is defined in 8 USC 1324(b)(a)(3).

In this case, the government stated that Roth did not have permission to take the research to China. Furthermore, Roth lied to the Defense Department in regards to his employment of Chinese foreign nationals. His two graduate research assistants were given unrestricted access to information regarding the drone developments.

The jury found that Roth violated the export rules when he assigned Chinese nationals to work on the research project without clearing that with the State Department. Violation of the Act requires willful conduct and intent. Roth was advised by an officer at the University of Tennessee not to disclose the information and thus the jury found that Roth knew what he was doing and did so anyway.

Roth argued that he thought his researched qualified for exclusion under the fundamental research exception.

In UMG v. Veoh, a federal court in Los Angeles ruled that Veoh (similar to YouTube) qualified for a Digital Millennium Copyright Act safe harbor that protects the service from monetary damages for copyright infringements committed by its users. This case arose out of a complaint that UMG alleged that videos uploaded to Veoh included copyrighted information owned by UMG.

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Senators Jay Rockefeller (D-WV) and Olympia Snowe (R-ME) introduced the Cybersecurity Act of 2009. This bill sought to give the federal government unprecedented power over the Internet. In April there were various concerns voiced about an earlier version of the bill, including the power it would give the President.

The original bill, as well as the new version, give the President carte blanche to decide which networks will be considered “critical infrastructure information systems or networks.” The circumstances under which the President could shut down a certain network remains quite unclear. For example the original bill stated that “The President [...] may order the disconnection of any Federal Government or United States critical infrastructure information systems or networks in the interest of national security;” whereas the new bill states that “The President [...] in the event of an immediate threat [...] may declare a cybersecurity emergency; and may, if the President finds it necessary for the national defense and security, and in coordination with relevant industry sectors, direct the national response to the cyber threat and the timely restoration of the affected critical infrastructure information system or network;” (emphasis added).

Declan McCullagh, in a CNET article, addresses how the bill would give the President emergency control over the internet. McCullagh specifically addresses the vague language about networks, the unexplained scheme to certify security professionals as well as various other “cybersecurity strategies.”