Crime

Former FCC Broadband Panel Chair Arrested For Fraud (dslreports.com) 106

An anonymous reader quotes a report from DSLReports: The former chair of a panel built by FCC boss Ajit Pai to advise the agency on broadband matters has been arrested for fraud. Elizabeth Ann Pierce, former CEO of Quintillion Networks, was appointed by Pai last April to chair the committee, but her tenure only lasted until September. Pierce resigned from her role as Quintillion CEO last August after investigators found she was engaged in a scam that tricked investors into pouring money into a multi-million dollar investment fraud scheme. According to the Wall Street Journal, Pierce convinced two investment firms that the company had secured contracts for a high-speed fiber-optic system that would generate hundreds of millions of dollars in future revenue. She pitched the system as a way to improve Alaska's connectivity to the rest of the country, but the plan was largely a fabrication, law enforcement officials say. "As it turned out, those sales agreements were worthless because the customers had not signed them," U.S. Attorney Geoffrey Berman said in prepared remarks. "Instead, as alleged, Pierce had forged counterparty signatures on contract after contract. As a result of Pierce's deception, the investment companies were left with a system that is worth far less than Pierce had led them to believe." Quintillion says it began cooperating with lawmakers as soon as allegations against Pierce surfaced last year. Pierce was charged with wire fraud last Thursday and faces a maximum sentence of 20 years in prison.
Canada

19-Year-Old Archivist Charged For Downloading Freedom-of-Information Releases (www.cbc.ca) 421

Ichijo writes: According to CBC News, a Canadian teen "has been charged with 'unauthorized use of a computer,' which carries a possible 10-year prison sentence, for downloading approximately 7,000 freedom-of-information releases. The provincial government says about 250 of those contain Nova Scotians' sensitive personal information."

"When he was around eight [...] his Grade 3 class adopted an animal at a shelter, receiving an electronic adoption certificate," reports CBC. "That lead to a discovery on the classroom computer. 'The website had a number at the end, and I was able to change the last digit of the number to a different number and was able to see a certificate for someone else's animal that they adopted,' he said. 'I thought that was interesting.' The teenager's current troubles arose because he used the same trick on Nova Scotia's freedom-of-information portal, downloading about 7,000 freedom-of-information requests."
The teen is estimated to have around 30 terabytes of online data on his hard drives, which equates to "millions" of webpages. "He usually copies online forums such as 4chan and Reddit, where posts are either quickly erased or can become difficult to locate."
Microsoft

Microsoft Engineer Charged In Reveton Ransomware Case (bleepingcomputer.com) 24

An anonymous reader writes: A Microsoft network engineer is facing federal charges in Florida for allegedly helping launder money obtained from victims of the Reventon ransomware. Florida investigators say that between October 2012 and March 2013, Uadiale worked with a UK citizen going online by the moniker K!NG. The latter would distribute and infect victims with the Reveton ransomware, while Uadiale would collect payments and send the money to K!NG, in the UK. Investigators tracked down Uadiale because this happened before Bitcoin became popular with ransomware authors and they used the now-defunct Liberty Reserve digital currency to move funds. Authorities from 18 countries seized and shut down Liberty Reserve servers in May 2013.
Crime

Jailed Kansas 'Swat' Perpetrator Sneaks Online, Threatens More 'Swats' (kansas.com) 285

An anonymous reader quotes the Wichita Eagle: Tyler Barriss -- the man charged in a swatting hoax that led to the death of an innocent Wichita man -- apparently got access to the internet from jail for at least 28 minutes [last] Friday and threatened to swat again. "How am I on the Internet if I'm in jail? Oh, because I'm an eGod, that's how," a tweet posted at 9:05 a.m. said.
Other developments in the case:
  • Another tweet from the Barriss account 19 minutes later asked who was "talking shit," warning "your ass is about to get swatted." And nine minutes later his final tweet from jail bragged, "Y'all should see how much swag I got in here." The county sheriff's office blamed an outside vendor's improper software upgrade to an inmate kiosk, arguing that 14 inmates potentially had full internet access "for less than a few hours."
  • 25-year-old Barris is still in jail facing an 11-year prison sentence, noted a Twitter user who responded to the tweets. "This will play well at sentencing when you're pretending to be remorseful and asking the judge for mercy."
  • Meanwhile, the Wichita police officer who mistakenly fired the fatal shot that killed a 28-year-old father of two will not face charges. The district attorney concluded that several of the officers closest to victim Andrew Finch thought he reached down to pull up his pants, leaving his right arm hidden from the officers, the Wichita Eagle reports. "The officer who fired the shot, along with some others, thought Finch was reaching for a gun."
  • "This shooting should not have happened," said the district attorney. "But this officer's decision was made in the context of the false call." Finch was shot 10 seconds after opening his front door, and his family's civil case against the police department is still going forward.
  • Two other gamers involved in the shooting -- including one who allegedly hired Barriss over a $1.50 bet in the game Call of Duty -- have not been charged with a crime.

Power

World's First Electrified Road For Charging Vehicles Opens In Sweden (theguardian.com) 102

A 1.2-mile stretch of road with electric rails has been installed in Stockholm, Sweden, allowing electric vehicles to charge up their batteries as they drive across it. "The technology behind the electrification of the road linking Stockholm Arlanda airport to a logistics site outside the capital city aims to solve the thorny problems of keeping electric vehicles charged, and the manufacture of their batteries affordable," reports The Guardian. From the report: Energy is transferred from two tracks of rail in the road via a movable arm attached to the bottom of a vehicle. The design is not dissimilar to that of a Scalextric track, although should the vehicle overtake, the arm is automatically disconnected. The electrified road is divided into 50m sections, with an individual section powered only when a vehicle is above it. When a vehicle stops, the current is disconnected. The system is able to calculate the vehicle's energy consumption, which enables electricity costs to be debited per vehicle and user. The "dynamic charging" -- as opposed to the use of roadside charging posts -- means the vehicle's batteries can be smaller, along with their manufacturing costs. A former diesel-fuelled truck owned by the logistics firm, PostNord, is the first to use the road.
United States

Trump Signs Law Weakening Shield For Online Services (vice.com) 188

President Donald Trump has signed a new law aimed at curbing sex trafficking. From a report: The bill -- a mashup of the Fight Online Sex Trafficking Act (FOSTA) and the Stop Enabling Sex Traffickers Act (SESTA), which is commonly referred to as the latter -- passed Congress in March. It makes websites liable for what users say and do on their platforms, and many advocacy groups have come out against the bill, saying that it undermines essential internet freedoms.

It could be months -- or as late as January 2019 -- before FOSTA is enacted and anyone could be charged under the law. But even in the days immediately after the bill passed in Congress, platforms started scrambling to proactively shut down forums or whole sites where sex trafficking could feasibly happen. Fringe dating websites, sex trade and advertising forums, and even portions of Craigslist were taken down in the weeks following, while companies like Google started strictly enforcing terms of service around sexual speech.
Commenting on the development, EFF said, "As we've already seen, this bill silences online speech by forcing Internet platforms to censor their users."
Crime

Backpage Founders Charged With Money Laundering, Aiding Prostitution (theverge.com) 256

Federal authorities have charged the two founders of classified site Backpage.com, along with five other employees, with laundering money and facilitating prostitution. According to The Washington Post, the Justice Department claims Backpage took "consistent and concerted action" to knowingly allow ads for illegal sex work. The indictment alleges that "virtually every dollar flowing into Backpage's coffers represents the proceeds of illegal activity." The Verge reports: Law enforcement agencies seized Backpage's servers last week, and co-founder Michael Lacey was charged in a sealed 93-count indictment, which has now been revealed. Lacey, as well as his co-founder James Larkin, were already charged with violating California money laundering laws, although a judge threw out state-level pimping charges. Beyond Lacey and Larkin, the Backpage indictment includes charges against the site's chief financial officer, operations manager, assistant operations manager, and marketing director. It also charges the executive vice president of one of Backpage's parent companies. Backpage CEO Carl Ferrer, who was previously charged with pimping in California, was not charged in this indictment. The Justice Department claims Backpage's owners tried to cover up the fact that most of its "adult services" ads involved prostitution, and that Backpage allowed child sex traffickers to keep ads on the site as long as they deleted age-related keywords. The indictment also claims that Backpage disguised payments for illegal services by having customers funnel money to foreign bank accounts or apparently unrelated companies, or by transferring funds into cryptocurrency. These federal chargers are reportedly unrelated to the Stop Enabling Sex Traffickers Act, a bill that would make website operators liable for illegal content posted to their sites. The bill is currently awaiting Trump's signature.
The Courts

CenturyLink Fights Billing-Fraud Lawsuit By Claiming That It Has No Customers (arstechnica.com) 198

An anonymous reader quotes a report from Ars Technica: CenturyLink is trying to force customers into arbitration in order to avoid a class-action lawsuit from subscribers who say they've been charged for services they didn't order. To do so, CenturyLink has come up with a surprising argument -- the company says it doesn't have any customers. While the customers sued CenturyLink itself, the company says the customers weren't actually customers of CenturyLink. Instead, CenturyLink says they were customers of 10 subsidiaries spread through the country. CenturyLink basically doesn't exist as a service provider -- according to a brief CenturyLink filed Monday.

"That sole defendant, CenturyLink, Inc., is a parent holding company that has no customers, provides no services, and engaged in none of the acts or transactions about which Plaintiffs complain," CenturyLink wrote. "There is no valid basis for Defendant to be a party in this Proceeding: Plaintiffs contracted with the Operating Companies to purchase, use, and pay for the services at issue, not with CenturyLink, Inc." CenturyLink says those operating companies should be able to intervene in the case and "enforce class-action waivers," which would force the customers to pursue their claims via arbitration instead of in a class-action lawsuit. By suing CenturyLink instead of the subsidiaries, "it may be that Plaintiffs are hoping to avoid the arbitration and class-action waiver provisions," CenturyLink wrote.

Businesses

Comcast Supports Ban On Paid Prioritization, Except For 'Specialized Services' (arstechnica.com) 61

An anonymous reader quotes a report from Ars Technica: Comcast would support a ban on paid prioritization as long as there is an exception for "specialized services" that benefit consumers, a company executive said this week. Comcast Senior Executive VP David Cohen, who is generally the public face in Comcast's dealings with government policymakers, spoke about paid prioritization at the Free State Foundation's Telecom Policy Conference on Tuesday. (Video available on C-SPAN's website; the segment begins at 2:20.) "How about if we agree to a prohibition on paid prioritization and we have a limited exception created in some way for this concept of specialized services," Cohen said.

Cohen's suggestion of a paid-prioritization ban with an exception for specialized services is similar to an early version of net neutrality rules that was passed in 2010 but thrown out in court in 2014. (The FCC was able to impose stricter net neutrality rules in 2015; that's the set of rules that is being thrown out by the current FCC.) The FCC in 2010 said that specialized services may share capacity with broadband networks but wouldn't be the same as regular broadband. There has never been a great definition of the term, but the 2010 FCC said that broadband providers' facilities-based VoIP and Internet Protocol-video offerings would be included. These services "differ from broadband Internet access service and may drive additional private investment in broadband networks and provide end users valued services, supplementing the benefits of the open Internet," the FCC said at the time. Under the 2010 rules, ISPs could have charged other companies for the right to offer specialized services over broadband networks. Cohen didn't say exactly what types of future services should be covered by an exemption for specialized services. But the services may come along soon enough, he said. "There is a recognition that something might come along that is not anti-competitive, that is pro-consumer, that is a specialized service available not to every user of the Internet, [and] that would be in consumers' interests and in the public interest," Cohen said.

Google

Waymo CEO Expresses Confidence Its Cars Wouldn't Have Killed Elaine Herzberg (washingtonpost.com) 141

theodp writes: Nearly a week after an autonomous Uber SUV claimed the first life in testing of self-driving vehicles, The Washington Post reports that Waymo CEO John Krafcik says he is confident its cars would have performed differently under the circumstances (Warning: source may be paywalled; alternative source), since they are intensively programmed to avoid such calamities. "I can say with some confidence that in situations like that one with pedestrians -- in this case a pedestrian with a bicycle -- we have a lot of confidence that our technology would be robust and would be able to handle situations like that," Krafcik said Saturday when asked if a Waymo car would have reacted differently than the self-driving Uber.

In explaining its since-settled lawsuit against Uber last year, Google charged that Uber was "using key parts of Waymo's self-driving technology," and added it was "seeking an injunction to stop the misappropriation of our designs." In announcing the settlement of the lawsuit last month, Uber CEO Dara Khosrowshahi noted, "we are taking steps with Waymo to ensure our LIDAR and software represents just our good work." A Google spokesperson added, "We have reached an agreement with Uber that we believe will protect Waymo's intellectual property now and into the future. We are committed to working with Uber to make sure that each company develops its own technology. This includes an agreement to ensure that any Waymo confidential information is not being incorporated in Uber Advanced Technologies Group hardware and software." All of which might prompt some to ask: was Elaine Herzberg collateral damage in Google and Uber's IP war?
"I want to be really respectful of Elaine [Herzberg], the woman who lost her life and her family," Krafcik continued. "I also want to recognize the fact that there are many different investigations going on now regarding what happened in Tempe on Sunday." His assessment, he said, was "based on our knowledge of what we've seen so far with the accident and our own knowledge of the robustness that we've designed into our systems."
Security

US Charges Iranians For Global Cyber Attacks on Behalf of Tehran (reuters.com) 36

The United States on Friday charged nine Iranians and an Iranian company with attempting to hack into hundreds of U.S. and international universities, dozens of companies and parts of the U.S. government on behalf of the Tehran government. From a report: The cyber attack pilfered more than 31 terabytes of academic data and intellectual property from 144 U.S. universities and 176 universities in 21 foreign countries, the U.S. Department of Justice said in a statement. The U.S. Treasury Department said on its website that it was placing sanctions on those accused and the Mabna Institute, a company described by U.S. prosecutors as designed to help Iranian research organizations steal information.
United States

US Says Russia Hacked Energy Grid, Punishes 19 for Meddling (apnews.com) 229

Associated Press: Pushing back harder on Russia, the Trump administration accused Moscow on Thursday of a concerted hacking operation targeting the U.S. energy grid, aviation systems and other infrastructure, and also imposed sanctions on Russians for alleged interference in the 2016 election. It was the strongest action to date against Russia by the administration, which has long been accused of being too soft on the Kremlin, and the first punishments for election meddling since President Donald Trump took office. The sanctions list included the 13 Russians indicted last month by special counsel Robert Mueller, whose Russia investigation the president has repeatedly sought to discredit. U.S. national security officials said the FBI, Department of Homeland Security and intelligence agencies had determined that Russian intelligence and others were behind a broad range of cyberattacks beginning a year ago that have infiltrated the energy, nuclear, commercial, water, aviation and manufacturing sectors. Further reading: Russian Government Cyber Activity Targeting Energy and Other Critical Infrastructure Sectors (US-Cert); U.S. blames Russia for cyber attacks on energy grid, other sectors (Reuters); U.S. says Russian hackers targeted American energy grid (Politico); Trump administration finally announces Russia sanctions over election meddling (CNN); U.S. sanctions on Russia cite 2016 election interference -- but remain largely symbolic (USA Today); U.S. Sanctions Russians Charged by Mueller for Election Meddling (Bloomberg); and Trump Administration Sanctions Russians for Election Meddling and Cyberattacks (The New York Times).
Businesses

Former Equifax CIO Charged With Insider Trading (bloomberg.com) 90

OffTheLip writes: Jun Ying, a former CIO with Equifax has been charged with insider trading by the US Department of Justice. From the linked article:

Wednesday's announcement marks the first criminal charge brought in one of the largest data breaches in history. Ying, the former chief information officer for Equifax's U.S. information-solutions business, used confidential information entrusted to him by the company to determine it had been hacked, according to a separate complaint filed by the Securities and Exchange Commission.

ZDNet adds: According to a Justice Department statement, Ying sent a text message to a colleague two weeks before Equifax revealed the hack, in which he said the breach "sounds bad." Three days later, Ying searched the web to research the effect of Experian's 2015 own breach on its stock price. Later that day, Ying excised all his available stock options.


Crime

SEC Charges Theranos, CEO Elizabeth Holmes With 'Massive Fraud' (engadget.com) 128

An anonymous reader quotes a report from Engadget: The SEC has charged Theranos, Elizabeth Holmes and Ramesh "Sunny" Balwani with fraud relating to the startup's fundraising activities. The company, as well as CEO Holmes and former president Balwani are said to have raised more than $700 million from investors through "an elaborate, years-long fraud." This involved making "false statements about the company's technology, business and financial performance." In a statement, the commission said that the company, and its two executives, misled investors about the capability of its blood testing technology. Theranos' big selling point was that its hardware could scan for a number of diseases with just a small drop of blood. Unfortunately, the company was never able to demonstrate that its system worked as well as its creators claimed.

The company and Elizabeth Holmes have already agreed to settle the charges leveled against them by the SEC. Holmes will have to pay a $500,000 fine and return 18.9 million shares in Theranos that she owned, as well as downgrading her super-majority equity into common stock. The CEO is now barred from serving as the officer or director of a public company for 10 years. In addition, if Theranos is liquidated or acquired, Holmes cannot profit from her remaining shareholding unless $750 million is handed back to defrauded investors. Balwani, on the other hand, is facing a federal court case in the Northern District of California where the SEC will litigate its claims against him.
Worth noting: the court still has to approve the deals between Holmes and Theranos, and neither party has admitted any wrongdoing.
Australia

Australia Considers Making It Illegal For ISPs To Advertise Inflated Speeds (vice.com) 70

The Australian government is currently considering a bill that would make it illegal for internet service providers to exaggerate speeds, or else face a fine of up to $1 million. "One constituent says he's being charged for a 25 megabit per second download speed and a five megabit per second upload and he's actually getting less than one tenth of that," said Andrew Wilkie, the Member of Parliament who introduced the bill. "In other words, people are getting worse than dial-up speed when they've been promised a whizz-bang, super-fast connection." Motherboard reports: Internet speeds can vary based on how many people are on the network and even the hardware you use, but while we can't expect ISPs to deliver maximum speed 100 percent of the time, previous probes into their performance have shown many ISPs in the U.S. aren't delivering even the minimum advertised speeds a majority of the time for the average user. Under the proposed Australian law, ISPs are simply required to be more transparent about what consumers can expect with a specific plan. Rather than advertising only the maximum speeds, they would have to include typical speeds for the average user, indicate busy periods, and clearly list any other factors that might impact service. The bill was only introduced this week, so it's yet to be seen if it will gain traction.
The Courts

Manafort Left an Incriminating Paper Trail Because He Couldn't Figure Out How to Convert PDFs to Word Files (slate.com) 189

There are two types of people in this world: those who know how to convert PDFs into Word documents and those who are indicted for money laundering. Former Trump campaign chairman Paul Manafort is the second kind of person , Slate reports. From the report: Back in October, a grand jury indictment charged Manafort and his business associate Rick Gates with a variety of crimes, including conspiring "to defraud the United States." On Thursday, special counsel Robert Mueller filed a new indictment against the pair, substantially expanding the charges. As one former federal prosecutor told the Washington Post, Manafort and Gates' methods appear to have been "extensive and bold and greedy with a capital 'G,' but ... not all that sophisticated." One new detail from the indictment, however, points to just how unsophisticated Manafort seems to have been. Here's the relevant passage from the indictment. I've bolded the most important bits:

Manafort and Gates made numerous false and fraudulent representations to secure the loans. For example, Manafort provided the bank with doctored [profit and loss statements] for [Davis Manafort Inc.] for both 2015 and 2016, overstating its income by millions of dollars. The doctored 2015 DMI P&L submitted to Lender D was the same false statement previously submitted to Lender C, which overstated DMI's income by more than $4 million. The doctored 2016 DMI P&L was inflated by Manafort by more than $3.5 million. To create the false 2016 P&L, on or about October 21, 2016, Manafort emailed Gates a .pdf version of the real 2016 DMI P&L, which showed a loss of more than $600,000. Gates converted that .pdf into a "Word" document so that it could be edited, which Gates sent back to Manafort. Manafort altered that "Word" document by adding more than $3.5 million in income. He then sent this falsified P&L to Gates and asked that the "Word" document be converted back to a .pdf, which Gates did and returned to Manafort. Manafort then sent the falsified 2016 DMI P&L .pdf to Lender D.
So here's the essence of what went wrong for Manafort and Gates, according to Mueller's investigation: Manafort allegedly wanted to falsify his company's income, but he couldn't figure out how to edit the PDF.
Social Networks

Facebook VP of Ads Criticised For Tweeting that Russian-bought Ads Had Not Been Designed to Sway the US Election (bbc.com) 263

Facebook's vice-president of adverts has been criticised for tweeting that Russian-bought ads had not been designed to sway the US election. From a report: Rob Goldman's tweet was retweeted by President Donald Trump. His view contradicted special counsellor Robert Mueller's recent indictments, in which 13 Russians were charged with meddling in the election via social media and other means. Mr Goldman is reported to have apologised to Facebook staff. In a series of tweets, Mr Goldman said that Russia's misinformation activity had been designed to "divide America" but added that "the majority of the Russian ad spend [on Facebook] happened after the election." However according to the indictment, the ads were only part of Russia's activity on the social-media platform. In the document, Facebook is mentioned 35 times. According to Wired, he sent a message to staff that read: "I wanted to apologise for having tweeted my own view about Russian interference without having it reviewed by anyone internally. The tweets were my own personal view and not Facebook's. I conveyed my view poorly. The special counsel has far more information about what happened [than] I do -- so seeming to contradict his statements was a serious mistake on my part."
Twitter

Pro-Gun Russian Bots Flood Twitter After Parkland Shooting (wired.com) 705

An anonymous reader quotes a report from Wired: In the wake of Wednesday's Parkland, Florida school shooting, which resulted in 17 deaths, troll and bot-tracking sites reported an immediate uptick in related tweets from political propaganda bots and Russia-linked Twitter accounts. Hamilton 68, a website created by Alliance for Securing Democracy, tracks Twitter activity from accounts it has identified as linked to Russian influence campaigns. On RoBhat Labs' Botcheck.me, a website created by two Berkeley students to track 1500 political propaganda bots, all of the top two-word phrases used in the last 24 hours -- excluding President Trump's name -- are related to the tragedy: School shooting, gun control, high school, Florida school. The top hashtags from the last 24 hours include Parkland, guncontrol, and guncontrolnow.

While RoBhat Labs tracks general political bots, Hamilton 68 focuses specifically on those linked to the Russian government. According to the group's data, the top link shared by Russia-linked accounts in the last 48 hours is a 2014 Politifact article that looks critically at a statistic cited by pro-gun control group Everytown for Gun Safety. Twitter accounts tracked by the group have used the old link to try to debunk today's stats about the frequency of school shootings. Another top link shared by the network covers the "deranged" Instagram account of the shooter, showing images of him holding guns and knives, wearing army hats, and a screenshot of a Google search of the phrase "Allahu Akbar." Characterizing shooters as deranged lone wolves with potential terrorist connections is a popular strategy of pro-gun groups because of the implication that new gun laws could not have prevented their actions. Meanwhile, some accounts with large bot followings are already spreading misinformation about the shooter's ties to far-left group Antifa, even though the Associated Press reported that he was a member of a local white nationalist group. The Twitter account Education4Libs, which RoBhat Labs shows is one among the top accounts tweeted at by bots, is among the prominent disseminators of that idea.

Crime

Family of 'Swat' Victim Sues Kansas Police, Lawmakers Propose 40-Year Jail Terms (cbsnews.com) 291

An anonymous reader brings more updates about the 'Swat' call that led to a fatal police shooting: The gamer who dared another gamer to send police officers to his home had offered the address where he used to live, until his family was evicted in 2016. While he may also be charged for the fatal shooting that followed, the victim's family has now sued the city of Wichita as well as its police officers, with their attorney saying the city "is trying to put all the blame on the young man in California who placed the swatting call. But let's be clear: the swatter did not shoot the bullet that killed Andy Finch. That was an officer working under the direction of the Wichita Police Department."

The attorney points out that the 911 caller in California provided a description of the house which didn't match the actual house in Kansas, adding "How can Wichita police department officers not be trained to deal with this type of situation...? Prank calls are not new," according to CBS News. "The lawsuit cites FBI crime statistics showing Wichita has a ratio of one shooting death for every 120 officers -- a number that is 11 times greater than the national ratio and 12 times greater than the ratio in Chicago."

Meanwhle, Kansas lawmakers have introduced a new bill proposing a penalty of 10 to 40 years in prison if a swatting call ends in a person's death, which would also cause the offense to be prosecuted as murder.

One lawmaker argues that the bill is necessary because under the current system if a person phones in a swat call, "there's really no consequence for his actions."
IBM

The SCO Vs IBM Zombie Shambles On (uscourts.gov) 127

Long-time Slashdot reader UncleJosh writes: At the end of last October, the 10th Circuit issued an opinion overturning the lower court's summary judgement in favor of IBM on one of SCO's claims, sending it back to the lower court for trial. Shortly thereafter, IBM filed for a re-hearing en banc. On January 2nd, the 10th circuit essentially denied IBM's request, issuing a slightly revised opinion with the same conclusions and result.
The charge being reheard accuses IBM of "stealing and improperly using [SCO's] source code to strengthen its own operating system, thereby committing the tort of unfair competition by means of misappropriation" -- though that charged is based on an implied duty that SCO says IBM incurred by entering into a development relationship with SCO. "SCO believes that IBM merely pretended to go along with the arrangement in order to gain access to Santa Cruz's coveted source code."

The court's 46-page document adds that "We are now almost fifteen years into this litigation."

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