There are new developments in the case of the counterfeit Cisco routers, which we have been discussing for some time. The NYTimes updates the story after an FBI PowerPoint presentation made its way onto the Web. It seems that experts at Cisco have examined some of the counterfeit routers in detail and proclaimed that they contain no back doors. Others don't believe we can be so sure. "Last month, [DARPA] began distributing chips with hidden Trojan horse circuitry to military contractors who are participating in the agency's Trusted Integrated Circuits program. The goal is to test forensic techniques for finding hidden electronic trap doors, which can be maddeningly elusive... The threat was demonstrated in April when a team of computer scientists from the University of Illinois presented a paper at a technical conference in San Francisco detailing how they had modified a Sun Microsystems SPARC microprocessor... The researchers were able to create a stealth system that would allow them to automatically log in to a computer and steal passwords."

at_$tephen writes "Fortune magazine has an article stressing the Chinese market's importance to Microsoft's long term strategy, and touching on Linux's involvement in the Chinese market. In the early days of Microsoft rampant piracy helped establish it as the de facto standard in PCs despite good alternatives. History may be unfolding again here, with the exception that having the Chinese government as an ally has huge additional benefits. Or perhaps Gates has met his match with the Chinese government. 'In another boost for Microsoft, the government last year required local PC manufacturers to load legal software on their computers. Lenovo, the market leader, had been shipping as few as 10% of its PCs that way, and even US PC makers in China were selling many machines "naked." Another mandate requires gradual legalization of the millions of computers in state-owned enterprises. In all, Gates says, the number of new machines shipped with legal software nationwide has risen from about 20% to more than 40% in the past 18 months.'"