пятница, 18 декабря 2015 г.

uCox Must Pay $25M For Failing To Stop Repeat Piratesr


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  • (Mike Mozart)
    Weeks after a court ruled that Cox Communications had deliberately ignored repeat piracy offenders and put up roadblocks to prevent certain copyright holders from filing infringement claims, a jury has handed down a $25 million verdict against the cable and Internet provider.

    For those new to this story, let’s take a step back. Music publishing giant BMG Rights Management accused Cox of failing to live up to its obligations under the Digital Millennium Copyright Act. That law requires ISPs to do what they can to limit access for repeat copyright infringers.

    If Cox had followed those guidelines, it would have benefited from “safe harbor” protections that shield Internet Service Providers from being held liable for their customers’ piracy.

    But in documentation presented to the court, BMG showed that Cox was not only incredibly lenient toward repeat offenders — letting them rack up more than 10 alleged offenses before being at risk for losing their service — but also that some Cox executives were deliberately allowing known offenders to continue as customers.

    “This way, we can collect a few extra weeks of payments for their account,” read an email sent by Cox’s Manager of Customer Abuse Operations.

    Additionally, Cox actively blocked copyright claims from third-party rights management company RightsCorp, going so far as to prevent RightsCorp filings from ever even reaching Cox servers.

    “Blocking messages goes one step beyond blacklisting,” wrote the judge in granting summary judgment for BMG. “When a complainant is blacklisted, Cox still has a record of the emails received and deleted. When a complainant is blocked at the server level, there is no record of any message received.”

    In the end, a jury was asked to decide on four questions [PDF]:
    • Did BMG prove that Cox customers were using their Internet access to violate BMG copyrights? The jury answered “yes.”

    • Did BMG prove that Cox’s actions (or lack thereof) contributed to this infringement? Again, that’s a big “yes” from the jury.

    • Did BMG prove that Cox was willful in its behavior? Quoth the jury, “yes.”

    • Did BMG prove that Cox had vicariously infringed on BMG’s copyright? On this one, Cox earned a victory with a “no” from the jury.

    This last question is incredibly important. Had the jury said “yes,” indicating that Cox somehow profited from the piracy, the company would have faced even larger penalties.

    Holding an ISP accountable to that extent for its customers’ bad behavior could have a chilling effect on the industry, as ISPs would clamp down even harder on alleged piracy.

    DMCA claims are already problematic. Many websites operate under the assumption that a copyright claim is legitimate, leading to dubious takedowns, patently false infringement allegations, and absurd demands from copyright holders.

    Even in the Cox case, a number of plainly innocent customers were caught up in the lawsuit as BMG sought to have their information turned over as evidence in the case. Those who were able to prove they weren’t even Cox customers during the time in question were able to have themselves removed, but it still shows the extent to which some copyright holders will go to hold anyone they can responsible for infringement.

    Even with the “no” answer from the jury on the vicarious infringement question, some privacy advocates believe the verdict could still result in stricter copyright enforcement from ISPs.

    “This could have a real impact on how Internet service providers treat their customers, in a detrimental way,” Charles Duan of Public Knowledge tells Bloomberg Law. “The concern is that out of fear of these sorts of verdicts, a lot of ISPs could take a conservative approach, which could lead to account terminations for people using the Internet in legal and reasonable ways.”



ribbi
  • by Chris Morran
  • via Consumerist


uReport: Target Is Considering Its Own Mobile Wallet Appr


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  • (Ann Fisher)
    It seems everywhere you turn these days, another company is offering a new way to pay with a smartphone: there’s Apple Pay, Android Pay, Samsung Pay, as well as Walmart’s newly announced mobile payment system, and now Target might be hopping on the bandwagon with its own mobile wallet. Any bets on whether it’ll be called “Target Pay”?

    According to a new report from Reuters citing insider sources, Target is in the early stages of developing a mobile wallet.

    Though the mobile wallet could launch as early as next year, the retailer isn’t committing to anything just yet, leaving things rather up in the air at this point.

    So far, Target has apparently looked into partnering with credit card companies, and is said to be in favor of processing transactions using scanning technology to communicate with payment terminals, two of the sources said. No testing has happened at any Target stores at this point, however.

    If this has you wondering whether the plan by many retailers — including Target and Walmart — to launch a mobile payment system called CurrentC is over and done with, a Target spokesman tells Reuters that the retailer is still an active member of the Merchant Customer Exchange in charge of developing that system, but that it’s also exploring other mobile wallet solutions.

    Exclusive: Target in initial development of its own mobile wallet – sources [Reuters]



ribbi
  • by Mary Beth Quirk
  • via Consumerist


uJPMorgan Chase To Pay $367 Million For Secretly Steering Clients To Investments That Benefited Bankr


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  • (Colin)
    When you pay a bank’s investment adviser to help you put your money in a smart place, you would hope that they would steer you to a product that best serves your interest. You’d also hope that if an investment product benefited the bank, this information would be clearly disclosed. But that’s not always the case, which is why JPMorgan Chase has to pay penalties totaling $367 million.

    The majority ($267 million) of that amount is to settle charges brought against Chase by the Securities and Exchange Commission, which accused two of the bank’s wealth management subsidiaries of failing to disclose conflicts of interest to clients.

    The SEC found that JPMorgan Securities and JPMorgan Chase Bank preferred to invest clients in the firm’s own proprietary investment products, but didn’t exactly go out of their way to disclose this preference. The regulators say that, without this information, JPMorgan’s were deprived of information they needed to make fully informed investment decisions.

    “Firms have an obligation to communicate all conflicts so a client can fairly judge the investment advice they are receiving,” explains Andrew J. Ceresney, Director of the SEC Enforcement Division. “These JPMorgan subsidiaries failed to disclose that they preferred to invest client money in firm-managed mutual funds and hedge funds, and clients were denied all the facts to determine why investment decisions were being made by their investment advisers.”

    According to Julie M. Riewe, Co-Chief of the SEC Enforcement Division’s Asset Management Unit, JPMorgan Securities also breached its fiduciary duty to certain clients “when it did not inform them that they were being invested in a more expensive share class of proprietary mutual funds,” while Chase bank failed to disclose that it was steering clients to hedge funds that made payments to a JPMorgan.

    “Clients are entitled to know whether their adviser has competing interests that might cause it to render self-interested investment advice,” says Riewe.

    In a parallel settlement with the Commodity Futures Trading Commission, JPMorgan has agreed to pay a total of $100 million in penalties and disgorgements.

    “Investors are entitled to know if a bank managing their money favors placing investments in its own proprietary funds or other vehicles that generate fees for the bank,” says Aitan Goelman, the CFTC’s Director of Enforcement.

    As part of the settlement agreements, Chase had admitted to disclosure failures, but maintains they “were not intentional and we regret them… We have always strived for full transparency in client communications, and in the last two years have further enhanced our disclosures in support of that goal.”



ribbi
  • by Chris Morran
  • via Consumerist


uUber Sends Drivers New Contract That Includes Opting Out Of Any Current Class Actionsr


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  • (afagen)
    Was Uber trying to deliberately trick its drivers when it sent out a new driver agreement, or just trying to make its contract provisions clearer? While the company’s attorneys claim that the new driver contract wouldn’t actually preclude drivers still working for them from taking part in the California lawsuit or other lawsuits against them, the attorney for the affected drivers disagrees.

    Uber, meanwhile, insists that the new agreement that employees must agree to is meant to be simpler and easier to understand than the original one, clearing up some issues that are the subject of criticism against the company and litigation. Now, the judge in the class action case has ordered Uber not to communicate with employees who are part of the lawsuit without having those communications first run past the drivers’ lawyer in the class action or the court itself.

    What did the new agreement say? It asked drivers to waive their right to sue the company, forcing them into arbitration, and also demanded that drivers who want to continue with the service are barred from “participating in or recovering relief under any current or future” class action lawsuits against the company. While that does simplify the driver contract, it also caused panic among drivers who want to be part of the lawsuit.

    The good news is that there is an opt-out provision, but the plaintiffs’ attorney says that her office received hundreds of calls from panicked drivers who wondered whether opting out would be enough to allow them to both drive for Uber and remain part of the lawsuit against the company. The class action seeks to have drivers treated as employees, which would include a minimum hourly rate and reimbursement of routine expenses like mileage and car insurance.

    Judge Faults Uber for Confusing Drivers With New Contract [Bloomberg News]



ribbi
  • by Laura Northrup
  • via Consumerist


uApplebee’s Server Returns $32,000 In Cash Family Accidentally Left On The Tabler


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  • (KFSN News)
    If you work in a restaurant, finding a large amount of cash on the table might be one of those moments where you think you’ve just lucked out and scored a huge tip from some abnormally generous person, and you figure the money is yours to keep. Or, if you’re like one Applebee’s server who recently discovered $32,000 left behind, you turn it in and save the day.

    A mother and daughter who went ate at an Applebee’s in Fresno, CA this week had made a few stops that day, including a bank, reports KFSN. They hadn’t planned on carrying around all that dough all day, but that’s how it worked out.

    “We were going to deposit it to the safe box and they told us they didn’t have any available,” the daughter explained. She thinks her mother took the cash out of her wallet when it was time to pay for their meal, and didn’t put it back in her bag.

    By that night, they realized the money — savings from the family’s business — was gone, and figured it wasn’t coming back.

    The server who’d waited on them found the money left behind at the booth and turned it in, and police matched up the money with the family after they described the bag it was in and the denominations included. The family is planning to thank the server and police for reuniting them with their money, and hopes that the server will accept at least a little something as a reward.

    But he doesn’t want to speak publicly about his good deed, his managers said, and might not take any reward he’s offered.

    “He made it very clear that he did it because it was the right thing to do, not that he wanted anything in return,” an Applebee’s area director told KFSN.com.

    Honest Applebee’s server reunites family, $32,000 cash [KFSN]



ribbi
  • by Mary Beth Quirk
  • via Consumerist


uComcast Customer’s Data Cap Meter Counts Gigabytes He Couldn’t Possibly User


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  • (YayAdrian)
    In just the few months since Comcast began expanding its cash-grab data cap program, which hits customers with overage charges for exceeding an arbitrary allotment of 300 gigabytes each month, thousands of customers have already complained to federal regulators. Some claim that the Comcast-supplied online “meter” intended to help keep track of users’ data simply doesn’t work. One customer, after being told that he was repeatedly going over the monthly limit, has shown just how broken Comcast’s system really is.

    The customer, a programmer from Tennessee, recently told his story to Ars Technica. He explained that Comcast was sending him warning messages about exceeding its newly enforced caps and that he’d begin being charged for overages if he didn’t cut back.

    He knew he wasn’t going over the limit, but Comcast wouldn’t believe him. Reps for the company shrugged off his calls, saying that if he wasn’t the one blasting through gigabytes, then someone must be leaching on to his WiFi.

    The breaking point occurred after he found that Comcast accused him of using 120GB of data during a period when he wasn’t just away from home — but out of the country on vacation.

    In order to demonstrate to Comcast that he wasn’t mysteriously streaming Netflix through his home modem from a continent away and that some clever neighbor hadn’t bypassed his home network’s security, the customer disconnected his cable modem for nearly a week, using only cellular data for those days.

    Without the modem attached, there’s no way that he — or any WiFi hanger-on — could access the Comcast network, and yet, according to the company’s data cap meter he’d used 66GB during those six days.

    Additionally, the customer — who didn’t change his in-home data use during this time; just did it all over a cellular network — found that he’d only used around 8GB of data. Assuming that’s an average week for his home use, there’s no way he’d come even close to reaching 300GB/month. He’d have to be averaging more than 8GB a day to hit that threshold.

    When Ars contacted Comcast, the company fessed up to the goof, but did not appear to offer any explanation other than, “There was a technical error associated with his account, which we have since corrected.”

    The company did apparently tell the customer that it had gotten him confused with another Comcast user.

    “It turns out their system had my modem MAC address entered incorrectly,” he explained to Ars, “there was an off-by-one typo that was hard to see so they were counting data from some modem who knows where.”

    Comcast maintains that its data cap meter is accurate around 94% of the time, but let’s give the company an even bigger benefit of a doubt and assume that this sort of problem affects about half of one percent of Comcast users. That’s still more than 100,000 people, many of whom may not know exactly how much data streaming videos and other content consumes. These users may be paying overage fees they don’t owe.

    Brian Roberts, the Comcast CEO who does a horrible job of defending the company his daddy left him, has repeatedly tried to explain that data caps are about making sure that customers who use the most pay the most. But in reality, it’s more of a case of making sure that the customer that Comcast mistakenly thinks uses the most is subsidizing someone else’s overuse.



ribbi
  • by Chris Morran
  • via Consumerist


uFCC Wants AT&T, Comcast, T-Mobile To Explain Why Their Plans That Exempt Stuff From Data Caps Are OKr


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  • FCC chairman Tom Wheeler speaking in 2014. (FCC)
    There are two big trends in data and streaming. The first is data caps, which limit how much bandwidth you can use in a month without paying extra. The other is zero-rating, where certain video services come to an arrangement with carriers to be exempt from those data caps. In theory, it’s a win for everyone: consumers, carriers, and streaming companies. But nobody, including the FCC, is quite sure if it’s actually, y’know, legal.

    That’s why the FCC has sent letters to AT&T, T-Mobile, and Comcast asking them to come in to the office for a little chat about the way they exempt streaming services from data caps. Everyone has been asked to schedule a meeting by January 15.

    Here’s the background: The still-contested Open Internet Rule — net neutrality, to most of us — prohibits any internet company from discriminating among services in the traffic they carry. It applies to fixed broadband, like the network that comes to your home, as well as to the mobile carriers that make your phone go. They can’t permit or force YouTube to load faster than Netflix, or Spotify more slowly than Pandora, no matter who wants to pay them truckloads of money to do so. But the rule doesn’t have any specifications in it about data limits, or exempting certain services from them.

    That’s zero-rating. It was a big, fat open question left hanging when the FCC approved net neutrality back in February, and it still is today. But it is basically universally true that when something isn’t explicitly against the rules, and could be a source of revenue, people and companies will try it. And so they have.

    T-Mobile has made the biggest splash with their services. They launched Music Freedom, which exempts a whole bunch of audio streaming services from data caps, way back in 2014. Last month, it was joined by Binge On for video, which launched with about two dozen services, large and small, already included.

    AT&T, meanwhile, offers separate-but-related sponsored data, and is pursuing plans to work out deals with certain video apps to charge them for exemption from data caps as well.

    The mobile market isn’t alone; we’re seeing examples of zero-ratings popping up in home broadband plans too, as data caps proliferate (to consumers’ chagrin). Comcast recently launched a pilot streaming-only service, and it, naturally, is exempt from Comcast’s data caps, where services like Netflix are not.

    Last month FCC chair Tom Wheeler described the plans as “highly innovative and highly competitive” offerings… but that doesn’t mean the FCC isn’t interested in making sure they’re kosher.

    The FCC is “asking [AT&T, Comcast, and T-Mobile] to come in and have a discussion with us about some of the innovative things they are doing,” Wheeler said during a press conference yesterday.

    “This is not an investigation,” Wheeler stressed. “This is not any enforcement. This is, ‘Help us stay informed as to what the practices are.'”



ribbi
  • by Kate Cox
  • via Consumerist