Steve Jobs, Apple co-founder, dead at 56

Steve Jobs, the Apple co-founder and former chief executive who invented and masterfully marketed ever-sleeker gadgets that transformed everyday technology, from the personal computer to the iPod and iPhone, has died. He was 56.

Apple announced his death without giving a specific cause.

"We are deeply saddened to announce that Steve Jobs passed away today," the company said in a brief statement.
"Steve's brilliance, passion and energy were the source of countless innovations that enrich and improve all of our lives. The world is immeasurably better because of Steve."

Jobs had battled cancer in 2004 and underwent a liver transplant in 2009 after taking a leave of absence for unspecified health problems. He took another leave of absence in January — his third since his health problems began — before resigning as CEO six weeks ago. Jobs became Apple's chairman and handed the CEO job over to his hand-picked successor, Tim Cook.

The news Apple fans and shareholders had been dreading came the day after Apple unveiled its latest version of the iPhone, just one in a procession of devices that shaped technology and society while Jobs was running the company.

Jobs started Apple with a high school friend in a Silicon Valley garage in 1976, was forced out a decade later and returned in 1997 to rescue the company. During his second stint, it grew into the most valuable technology company in the world with a market value of $351 billion. Only Exxon Mobil, which makes it money extracting and refining oil instead of ideas, is worth more.

Cultivating Apple's countercultural sensibility and a minimalist design ethic, Jobs rolled out one sensational product after another, even in the face of the late-2000s recession and his own failing health.

He helped change computers from a geeky hobbyist's obsession to a necessity of modern life at work and home, and in the process he upended not just personal technology but the cellphone and music industries. For transformation of American industry, he ranks among his computer-age contemporary, Microsoft Corp. co-founder Bill Gates and other creative geniuses such as Walt Disney that left an indelible imprint on the world. Jobs died as Walt Disney Co.'s largest shareholder, a by-product of his decision to sell computer animation studio Pixar in 2006.

Perhaps most influentially, Jobs in 2001 launched the iPod, which offered "1,000 songs in your pocket." Over the next 10 years, its white earphones and thumb-dial control seemed to become more ubiquitous than the wristwatch.

In 2007 came the touch-screen iPhone, joined a year later by Apple's App Store, where developers could sell iPhone "apps" which made the phone a device not just for making calls but also for managing money, editing photos, playing games and social networking. And in 2010, Jobs introduced the iPad, a tablet-sized, all-touch computer that took off even though market analysts said no one really needed one.

Steven Paul Jobs was born Feb. 24, 1955, to Joanne Simpson, then an unmarried graduate student, and Abdulfattah Jandali, a student from Syria. Simpson gave Jobs up for adoption, though she married Jandali and a few years later had a second child with him, Mona Simpson, who became a novelist.

Steven was adopted by Clara and Paul Jobs of Los Altos, Calif., a working-class couple who nurtured his early interest in electronics. He saw his first computer terminal at NASA's Ames Research Center when he was around 11 and landed a summer job at Hewlett-Packard before he had finished high school.

Jobs enrolled in Reed College in Portland, Ore., in 1972 but dropped out after a semester.

"All of my working-class parents' savings were being spent on my college tuition. After six months, I couldn't see the value in it," he said at a Stanford University commencement address in 2005. "I had no idea what I wanted to do with my life and no idea how college was going to help me figure it out."

When he returned to California in 1974, Jobs worked for video game maker Atari and attended meetings of the Homebrew Computer Club with Steve Wozniak, a high school friend who was a few years older.

Wozniak's homemade computer drew attention from other enthusiasts, but Jobs saw its potential far beyond the geeky hobbyists of the time. The pair started Apple in Jobs' parents' garage in 1976. Their first creation was the Apple I — essentially, the guts of a computer without a case, keyboard or monitor.

The Apple II, which hit the market in 1977, was their first machine for the masses. It became so popular that Jobs was worth $100 million by age 25. Time magazine put him on its cover for the first time in 1982.

During a 1979 visit to the Xerox Palo Alto Research Center, Jobs again spotted mass potential in a niche invention: a computer that allowed people to access files and control programs with the click of a mouse, not typed commands. He returned to Apple and ordered the team to copy what he had seen.

It foreshadowed a propensity to take other people's concepts, improve on them and spin them into wildly successful products. Under Jobs, Apple didn't invent computers, digital music players or smartphones — it reinvented them for people who didn't want to learn computer programming or negotiate the technical hassles of keeping their gadgets working.

"We have always been shameless about stealing great ideas," Jobs said in an interview for the 1996 PBS series "Triumph of the Nerds."

The engineers responded with two computers. The pricier one, called Lisa, launched to a cool reception in 1983. A less-expensive model called the Macintosh, named for an employee's favorite apple, exploded onto the scene in 1984.

The Mac was heralded by an epic Super Bowl commercial that referenced George Orwell's "1984" and captured Apple's iconoclastic style. In the ad, expressionless drones marched through dark halls to an auditorium where a Big Brother-like figure lectures on a big screen. A woman in a bright track uniform burst into the hall and launched a hammer into the screen, which exploded, stunning the drones, as a narrator announced the arrival of the Mac.

There were early stumbles at Apple. Jobs clashed with colleagues and even the CEO he had hired away from Pepsi, John Sculley. And after an initial spike, Mac sales slowed, in part because few programs had been written for the new graphical user interface .

Meanwhile, Microsoft copied the Mac approach and introduced Windows, outmaneuvering Apple by licensing its software to slews of computer makers while Apple insisted on making its own machines.

Software developers wrote programs first for Windows because it had millions more computers . A Mac version didn't come for months, if at all.

With Apple's stock price sinking, conflicts between Jobs and Sculley mounted. Sculley won over the board in 1985 and pushed Jobs out of his day-to-day role leading the Macintosh team. Jobs resigned his post as chairman of the board and left Apple within months.

"What had been the focus of my entire adult life was gone, and it was devastating," Jobs said in his Stanford speech. "I didn't see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life."

He got into two other companies: Next, a computer maker, and Pixar, a computer-animation studio that he bought from George Lucas for $10 million.

Pixar, ultimately the more successful venture, seemed at first a bottomless money pit. Then came "Toy Story," the first computer-animated full-length feature. Jobs used its success to negotiate a sweeter deal with Disney for Pixar's next two films. In 2006, Jobs sold Pixar to The Walt Disney Co. for $7.4 billion in stock, making him Disney's largest individual shareholder and securing a seat on the board.

With Next, Jobs was said to be obsessive about the tiniest details of the cube-shaped computer, insisting on design perfection even for the machine's guts. He never managed to spark much demand for the machine, which cost a pricey $6,500 to $10,000.

Ultimately, he shifted the focus to software — a move that paid off later when Apple bought Next for its operating system technology, the basis for the software still used in Mac computers.

By 1996, when Apple bought Next, Apple was in dire financial straits. It had lost more than $800 million in a year, dragged its heels in licensing Mac software for other computers and surrendered most of its market share to PCs that ran Windows.

Larry Ellison, Jobs' close friend and fellow Silicon Valley billionaire and the leader of Oracle Corp., publicly contemplated buying Apple in early 1997 and ousting its leadership. The idea fizzled, but Jobs stepped in as interim chief later that year.

He slashed unprofitable projects, narrowed the company's focus and presided over a new marketing push to set the Mac apart from Windows, starting with a campaign encouraging computer users to "Think different."

"In the early days, he was in charge of every detail. The only way you could say it is, he was kind of a control freak," he said. In his second stint, "he clearly was much more mellow and more mature."

In the decade that followed, Jobs kept Apple profitable while pushing out an impressive roster of new products.

Apple's popularity exploded in the 2000s. The iPod, smaller and sleeker with each generation, introduced many lifelong Windows users to their first Apple gadget.

ITunes, in 20XX, gave people a convenient way to buy music legally online, song by song. For the music industry, it was a mixed blessing. The industry got a way to reach Internet-savvy people who, in the age of Napster, were growing accustomed to downloading music free. But online sales also hastened the demise of CDs and established Apple as a gatekeeper, resulting in battles between Jobs and music executives over pricing and other issues.

Jobs' command over gadget lovers and pop culture swelled to the point that, on the eve of the iPhone's launch in 2007, faithful followers slept on sidewalks outside posh Apple stores for the chance to buy one. Three years later, at the iPad's debut, the lines snaked around blocks and out through parking lots, even though people had the option to order one in advance.

The decade was not without its glitches. Apple was swept up in a Securities and Exchange Commission inquiry into stock-options backdating in the mid-2000s, a practice that artificially boosted the value of options grants. But Jobs and Apple emerged unscathed after two former executives took the fall and eventually settled with the SEC.

Jobs' personal ethos — a natural food lover who embraced Buddhism and New Age philosophy — was closely linked to the public persona he shaped for Apple. Apple itself became a statement against the commoditization of technology — a cynical view, to be sure, from a company whose computers can cost three or more times as much as those of its rivals.

For technology lovers, buying Apple products meant gaining entrance to an exclusive club. At the top was a complicated and contradictory figure who was endlessly fascinating — even to his detractors, of which Jobs had many. Jobs was a hero to techno-geeks and a villain to partners he bullied and to workers whose projects he unceremoniously killed or claimed as his own.

Unauthorized biographer Alan Deutschman described him as "deeply moody and maddeningly erratic." In his personal life, Jobs denied for two years that he was the father of Lisa, the baby born to his longtime girlfriend Chrisann Brennan in 1978.

Few seemed immune to Jobs' charisma and will. He could adeptly convince those in his presence of just about anything — even if they disagreed again when he left the room and his magic wore off.

"He always has an aura around his persona," said Bajarin, who met Jobs several times while covering the company for more than 20 years as a Creative Strategies analyst. "When you talk to him, you know you're really talking to a brilliant mind."

But Bajarin also remembers Jobs lashing out with profanity at an employee who interrupted their meeting. Jobs, the perfectionist, demanded greatness from everyone at Apple.

Jobs valued his privacy, but some details of his romantic and family life have been uncovered. In the early 1980s, Jobs dated the folk singer Joan Baez, according to Deutschman.

In 1989, Jobs spoke at Stanford's graduate business school and met his wife, Laurene Powell, who was then a student. When she became pregnant, Jobs at first refused to marry her. It was a near-repeat of what had happened more than a decade earlier with then-girlfriend Brennan, Deutschman said, but eventually Jobs relented.

Jobs started looking for his biological family in his teens, according to an interview he gave to The New York Times in 1997. He found his biological sister when he was 27. They became friends, and through her Jobs met his biological mother. Few details of their relationships have been made public.

But the extent of Apple secrecy didn't become clear until Jobs revealed in 2004 that he had been diagonosed with — and "cured" of — a rare form of operable pancreatic cancer called an islet cell neuroendocrine tumor. The company had sat on the news of his diagnosis for nine months while Jobs tried trumping the disease with a special diet, Fortune magazine reported in 2008.

In the years after his cancer was revealed, rumors about Jobs' health would spark runs on Apple stock as investors worried the company, with no clear succession plan, would fall apart without him. Apple did little to ease those concerns. It kept the state of Jobs' health a secret for as long as it could, then disclosed vague details when, in early 2009, it became clear he was again ill.

Jobs took a half-year medical leave of absence starting in January 2009, during which he had a liver transplant. Apple did not disclose the procedure at the time; two months later, The Wall Street Journal reported the fact and a doctor at the transplant hospital confirmed it.

In January 2011, Jobs announced another medical leave, his third, with no set duration. He returned to the spotlight briefly in March to personally unveil a second-generation iPad .

In 2005, following the bout with cancer, Jobs delivered Stanford University's commencement speech.

"Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life," he said. "Because almost everything — all external expectations, all pride, all fear of embarrassment or failure — these things just fall away in the face of death, leaving only what is truly important."
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Facebook in Tracking Suit

FACEBOOK is being sued by a group of users over claims it tracks their online activity after they log off.

The claims were exposed by an Australian technology blogger, Nik Cubrilovic, who conducted tests that revealed that when users log out, the site does not delete tracking ''cookies'' but modifies them, keeping information that can identify users as they surf the internet.

The company has told users cookie files installed on their computers to track interactions with Facebook applications and websites are removed when they log off, according to a complaint in the US Federal Court in San Jose, California.
Facebook admitted last week that the cookies track internet activity after users log off, according to the suit.

''This admission came only after an Australian technology blogger exposed Facebook's practice of monitoring members who have logged out, although he brought the problems to the defendant's attention a year ago,'' the complaint states.

On Friday, 10 public interest groups asked the US Federal Trade Commission to investigate Facebook's tracking of internet users after they log off. They urged the commission to examine whether Facebook's new ticker and timeline features increased privacy risks for users by combining biographical information in an easily accessible format.

The lawsuit - filed by Perrin Aikens Davis, of Illinois - seeks class status on behalf of other Facebook users in the US.

Davis seeks unspecified damages and a court order blocking the tracking based on violations of federal laws, including restrictions on wiretapping, as well as computer fraud and abuse statutes.

''We believe this complaint is without merit and we will fight it vigorously,'' Andrew Noyes, a Facebook spokesman, said in a statement.
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Latest iPhone 5 Rumors: '4G' Speeds, Voice Recognition?

This time next week, the iPhone 5 rumor frenzy will be over and we'll finally know what Apple plans to release. I imagine there will even be an iPhone 6 rumor or two floating around. But until then, we still have several days to wildly speculate about what the next-gen iPhone will include.
An invite to Apple's October 4 press event finally landed in journalists' inboxes on Tuesday afternoon, and it said simply: "Let's talk iPhone." That one phrase prompted the blogosphere and analysts like Piper Jaffray's Gene Munster to speculate that Apple will add a long-rumored voice recognition feature to iOS 5.

"In the past, Apple has used its invitation to include cryptic hints as to what it will announce," Munster wrote in a letter to investors. "The phrase on this year's invite, 'Let's talk iPhone,' may be a simple play on words, but may also refer to new speech-based features for the iPhone."

Last year, Apple acquired voice-recognition application startup Siri and added some voice-to-text features to iOS 4, so an enhancement to those features wouldn't be too surprising.

Atop many an iPhone 5 wish list, meanwhile, is support for 4G LTE speeds. Verizon started rolling out its LTE network in December and AT&T just lit up LTE in five cities earlier this month, so why wouldn't Apple want to take advantage of these blazing-fast speeds? In a word: style.

Current LTE chips are a bit bulky and would force Apple to increase the size of its iPhone, something it is reportedly not willing to do. Slimmer chips from Qualcomm are not expected to hit the market until next year, so we probably won't see LTE until the iPhone 6. What will we get? A China Unicom exec said this week that the iPhone 5 will support HSPA+ 21, which is kind of like 4G lite. It's faster than 3G (21Mbps vs. 7.2Mbps) but it's not as fast as LTE.

The choice to have Apple's press event at its headquarters rather than a larger venue in San Francisco has prompted some talk that Tuesday's event will be a more low-key affair, and possibly only include the launch of the smaller "iPhone 4S," rather than the iPhone 5. Well, iPhone 3GS users who have been waiting patiently for a major upgrade will be glad to hear that AT&T stores have reportedly received cases for the iPhone 5, not the 4S.

A Macrumors reader sent the blog photos of cases that have showed up at AT&T retail stores. "Like other cases for the rumored redesign of the iPhone 5, these cases appear to show a tapered design and the mute switch moved to the opposite side of the device," Macrumors said.

The carrier drama continued, meanwhile, with T-Mobile essentially confirming that it will not offer the iPhone 5 this year.

Cole Brodman, T-Mobile's chief marketing officer, penned a blog post in which he discussed the carrier's desire to offer the iPhone, but said it's probably not going to happen in the near future.

"Please know that we think the iPhone is a great device and Apple knows that we'd like to add it to our line-up," Brodman wrote. "Today, there are over a million T-Mobile customers using unlocked iPhones on our network. We are interested in offering all of our customers a no-compromise iPhone experience on our network."

Despite that interest, "for now, our focus continues to be giving customers the best that Android has to offer," Brodman wrote.

iPad and iPod?
We know we'll probably get some sort of new iPhone next week, but what about the iPad? Another rumor making the rounds is that the long-awaited official Facebook iPad app will finally make its debut at next week's Apple event.

Apple's fall events have traditionally focused on the company's iPod lineup. With the music player now wrapped into the iPhone, it makes sense that Apple will one day wind down production of its standalone MP3 players, but will that day be October 4? Not quite. TUAW said this week that Apple is moving toward having a touch screen on every iPod and will ditch the Classic and the shuffle.

Losing track of all the Apple iPhone 5 rumors? For more, see last week's top rumors, as well as those from the week before. Also check out What the iPhone 5 Might Look Like and Six Amazing Phone Technologies We Want in iPhone 5, as well as the 8 Likely iPhone 5 Rumors, and 2 Wild Ones slideshow below.
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New Leaks Suggest iPhone 4S and Sprint iPhone 5 Tuesday Launch

Whoops! New images are adding some strong evidence to the rumormongering that Apple's going to announce the release of the iPhone 5 on Sprint's network come Tuesday. And you can thank Radio Shack for this one.
According to an alleged screenshot taken of a Radio Shack internal inventory page, both a 16-gigabyte iPhone 5 and a 32-gigabyte iPhone 5 are a-coming. It's a bit more a significant bit of evidence than the guessing game that arose from an earlier internal Sprint memo, which told company employees that vacations were blacked out between September 30 and October 15 due to the "possibility of a major phone launch."

Sprint is still allegedly going to be offering the iPhone 5 with an unlimited data plan. There's no indication of how long that the plan might stick around post-launch, as has been the case with other "unlimited" data plans on competing carriers, but the move – if true – is aimed at giving Sprint some kind of competitive advantage against AT&T and Verizon. Sprint, in this case, would sit in the market as the only iPhone carrier with a truly unlimited data plan.

So what does that make of the iPhone 4S?

For those unfamiliar, there's also been talk that Apple's only intending on launching a souped-up version of the iPhone 4 on Tuesday, cleverly dubbed the, "iPhone 4S." New evidence supporting that theory includes new language inside a beta iTunes release (since pulled by Apple) that references an "iPhone 4S" and includes an image of a CDMA iPhone 4.

So what's it going to be? Are the iPhone 4S and iPhone 5 the same device and we're all just quibbling over the name? Is Apple actually releasing two separate devices – an upgrade to the iPhone 4 and a slightly bigger, fancier iPhone 5, as a recent leak by Cincinnati Bell might suggest? Are the rumors going to persist until 9:59 a.m. (PST) on Tuesday?

Odds indicate: Yes.

To hear more about the rumored features – both hardware and software – arriving with the new iPhone (or iPhones), be sure to check out our additional coverage of all things iPhone.
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Apple Confirms IPhone 5 Event Next Week, Amazon Shows Off Tablet.

Apple confirmed it will unveil the next iPhone on October 4, and Amazon showed off the Kindle Fire, its new tablet slated to go head-to-head with the iPad.
News Under the Sun is a weekly column rounding up all the events on in the mobile industry. Want the news but don’t want it every day? Subscribe to our weekly Facebook or Twitter page.

Apple Confirms IPhone 5 Event, Release to Follow

Apple invited members of the media to a keynote event on October 4 at 10 a.m. Pacific Time at its own Town Hall Auditorium where it is expected to unveil the iPhone 5. The invitation to the event features the iOS icons for the calendar, clock, Google Maps and phone applications. Beneath them is a tagline that reads, “Let’s talk iPhone.”

Analysts expect Apple to release the device shortly after the October 4 event. Apple reportedly instituted a vacation blackout for employees in the U.S. and the U.K. from October 9 to 12 and again on October 14 and 15. The dates back up earlier reports the company’s AppleCare divisions have been told to prepare for heavy traffic.

Consumers are excited about the upcoming iPhone 5, but Apple is already thinking further into the future. The company’s Xcode developer tool now includes support for Marvell’s quad-core ARM-based Armada XP chips. Apple may use the chips in prototypes of future iPhones and iPads as a placeholder while it designs its own proprietary next-generation processor.

Apple is also expanding so it will have more places to sell its future products. The company opened a Shanghai store and plans to open its first store in Hong Kong this weekend. The iPhone maker has already opened six of its planned 25 stores in China, but construction taking a slower pace than expected in the rapidly emerging market.

Despite growing demand in markets like China, Apple cut iPad orders by 25 percent according to JPMorgan Chase & Co. The report didn’t list the companies affected by the cutback, and Apple would not confirm the news.

Analysts believe Apple cut orders from Chinese suppliers because it plans to build a new iPad plant in Brazil. Foxconn reportedly negotiated a deal to manufacture $12 billion worth of products in the country, starting in December. However, concerns over taxes and labor stalled the closing of the agreement. Foxconn and the Brazilian government are now reportedly discussing opening a smaller plant to salvage the deal.

Amazon Unveils Kindle Fire, Browser Takes Criticism

Amazon announced the Kindle Fire, a full-color, touch screen device for $200 expected to launch on November 15. The Fire, which weighs just under a pound, features a 7-inch multi-touch display, dual-core processor, 8-gigabytes of internal storage and 8 hours of battery life. Amazon’s new tablet is powered by Android and runs the company’s new Web browser Amazon Silk.

Amazon did not reveal much about Silk, a browser powered by cloud-based features, but marketed it as one of the device’s key selling points. However, security firm Sophos said the browser connects users directly to Amazon’s servers, giving the company a record of customer’s browsing history as well as IP and MAC addresses for 30 days. The process leaves users private information on the server and vulnerable to hackers.
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BitTorrent Contributed to Network Decongestion

Erik Klinker, BitTorrent’s Chief Executive Officer, attended the Broadband World Forum that took place in France. As a result, he came with a new solution for an old problem of network congestion because of P2P. A new open-source technology called Micro Transport Protocol or ?TP has already been introduced into the company’s application in order to increase the performance of network by decongesting it.
Most of the information flying around the web is transmitted through TCP, which works by breaking it down and later reassembling at the other end of the network link. However, Klinker explained that this method is obsolete, because TCP defines congestion based on lost packets. He compared the network congestion to driving a car through a school zone and only slowing down after having struck the first pedestrian.

As opposed to TCP protocol, the ?TP technology would detect the network congestion on the early stage and try to fix it, because it was designed in the philosophy of yielding to traffic. BitTorrent promised that ?TP will no longer be the cause of the web congestion thanks to new mechanisms. Mr. Klinker noted that if the company could somehow address the problem of network congestion, it would end up addressing the network cost issue. He also came with a prediction, saying that the worldwide web is going to evolve and develop in the direction of a multimedia network. What is it for the users? A lot more big files at the very least, and you can consider many other advantages.

BitTorrent CEO announced that the company will develop this new direction. BitTorrent has already begun to facilitate transferring large amounts of information from digital devices and gadgets, and it will do much more in the nearest future. Klinker promised that the industry will soon see the company rolling out software that would help liberate media from the above mentioned devices in order to share it easier with family and friends.

Many will agree with Erik Klinker that content doesn’t present any value until it is shared and seen. That’s where it becomes hard for today’s networks in the first place. While the devices at the edge of the network are rapidly increasing in capability, the today’s networks stay the same and are governed by the same old mechanisms.
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Worm Could Break the Web

Mark Bowden, known as Black Hawk Down author, has written a book telling that the Conflicker worm could break the web.
Over 12 million PCs appeared to be infected with the self-updating worm, which got into the core of any PC. Mark Bowden’s recent book called “Worm: The First Digital World War” is telling about how the worm Conficker was discovered, how it is working, and the current programming battle trying to bring down the malware.

The most interesting part is where the book claims that if the malware was used nefariously, it could actually damage the entire world web and everyone sailing in it. In the newspaper interview, Mark Bowden explained that the Conflicker worm controllers were able to use all of the PCs that are connected, turning them into the largest and most powerful cloud ever.

The writer explained that the Conficker botnet was that powerful that it could take over computer networks controlling banking, telephones and security systems. Moreover, it could lay hold on air traffic control and even the web itself. Mark Bowden also believes that Conflicker is powerful enough to overwhelm not just its target of cyber attack, but also root servers of the web itself, which would result in crushing the whole bally thing. As you can understand, a botnet of such a size could also be used as a weapon.

The worm in question can also be used by the hackers for stealing passwords and codes. For example, some guys from Ukraine managed to lease a part of the computers infected by Conficker worm in order to drain American bank accounts. It’s that easy – you write a worm and you are rich. In our digital age the world and dubious money are open for some.

Mark Bowden is known as the author of a few books. His works include Black Hawk Down, Killing Pablo: The Hunt for the World's Greatest Outlaw and Guests of the Ayatollah. The famous author admitted that he was lucky the creator of Conficker thus far hadn’t considered the idea of taking down the entire world-wide web or, which might be even worse, using the bot to create a weapon of mass destruction. The matter is that it doesn’t mean the malware can’t be used for this by the others, especially after the new book will be distributed among many, including people longing for easy money. It is still not clear what effect the book will have, but its content is interesting at the very least.

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MySQL Website Infected

According to the report of some Internet security outfit, the Mysql.com website has recently been hacked. They warn everyone that the site is currently serving malware.
Security outfit Armorize announced that they have found the intrusion through its site malware monitoring platform known as HackAlert. The latter also sends the Internet users angry emails most days.

It seems that the Mysql.com website has been injected with some script generating an iFrame, which redirects the Internet users to a jaw-breaker “http://truruhfhqnviaosdpruejeslsuy.cx.cc/main.php”. Once you get there, your browser will be tinkered by the BlackHole exploit pack, which is hosted at the abovementioned link. This wonderful pack permanently installs a piece of malware into your computer, and you won’t even notice the action. The matter is that the installation package doesn’t require you to click or agree to anything, so the malware will be integrated into your machine without your knowledge.

Since this kind of malware is still unknown for the most of the security labs, only 9% of anti-virus applications are able to detect and block it. You can imagine the number of the computers that will potentially be infected, turning out to be among the rest 91% of unprotected machines.

Meanwhile, the domain name you reach through the iFrame is located in Germany, but registered to Christopher J Klein from Miami. Meanwhile, the domain that distributes the exploit pack and the malware resides in Stockholm, Sweden.

The security experts are already investigating the problem. For example, Sucuri Security researchers have found out that the website has been compromised via JavaScript malware. In its turn, the malware infects online service via a compromised desktop. In addition, it is able to steal any stored password from the FTP client in order to use that to launch a cyber attack on the website.

Other security experts point out that this hack might be connected to the fact revealed recently by Trend Micro researchers, who announced to discover a denizen of some Russian underground forum engaged into selling root access to a number of the cluster servers of mysql.com, along with its subdomains. The guys ask at least $3,000 for each access. The security company admitted it has notified mysql.com admins of this fact more than a week ago.
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FBI Arrests Suspected LulzSec Member For Sony Hack [UPDATED]



The FBI on Thursday arrested a suspected member of the hacker group LulzSec in connection with a cyber attack earlier this year against the computer systems of Sony Pictures.

Cody Kretsinger, 23, of Phoenix, was arrested and charged with helping LulzSec attack Sony's servers between May 27 and June 2. The group's hack compromised the personal data belonging to one million Sony customers, which the group then posted online.

Also on Thursday, the FBI arrested two other men with suspected ties to the hacker group Anonymous for allegedly crashing a county-run website in California, authorities said.

The arrests were the latest in an ongoing effort by authorities to crackdown on the hacker groups who have exposed widespread security lapses in government and corporate computer systems. In July, authorities arrested 14 suspected members of Anonymous for allegedly bringing down PayPal's website over four days in retaliation for the company suspending payments to the whistle-blower site Wikileaks.

In June, British authorities arrested Ryan Cleary, 19, for his suspected involvement in a cyberattack by LulzSec on the CIA website. He was charged with building a botnet, or a network of remotely-controlled computers to overwhelm websites with traffic.

Authorities say Kretsinger, also known by the online nickname “recursion,” is believed to be a current or former member of LulzSec, which has also taken credit for hacking the website of PBS. He has been charged with conspiracy and the unauthorized impairment of a protected computer, the FBI said.

To carry out the attack, Kretsinger allegedly used a proxy server to disguise his computer's IP address, then obtained confidential information from Sony's network using an SQL injection - a technique used by hackers to exploit vulnerabilities and steal information, according to the FBI. The indictment also alleges that, in order to avoid detection by law enforcement, Kretsinger erased the hard drive of the computer he used to conduct the attack.

Kretsinger was scheduled to appear Thursday before a federal magistrate in U.S. District Court in Phoenix. If convicted, he faces a maximum sentence of 15 years in prison.

Meanwhile on Thursday, authorities also charged Christopher Doyon, 47, of Mountain View, Calif., and Joshua John Covelli, 26, of Fairborn, Ohio, with bringing down the website of Santa Cruz County last December. Doyon and Covelli were allegedly assisting the People’s Liberation Front, which has been associated with Anonymous, in a denial of service attack, which floods a website with so much traffic that it crashes, authorities said.

The attack, which was nicknamed “Operation Peace Camp 2010," was in retaliation for the Santa Cruz police cracking down on a protest last summer outside the county courthouse. The protesters were supporting the homeless and hoping to ban a city ordinance that prohibited camping within city limits, according to the Santa Cruz Sentinel. Several protesters were charged with misdemeanors during the protest, including Doyon, the paper reported.

For the attack against the county's website, Doyon and Covelli were charged with conspiracy to cause intentional damage to a protected computer, causing intentional damage to a protected computer, and aiding and abetting, authorities said. They both face a maximum of 15 years in prison.

Covelli has also been charged with participating in a cyberattack that brought down the PayPal website last December, authorities said.
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UK VPN Service Will Disclose Users’ Details

British VPN service called Hide my Ass confirmed that it will hand over the details of its subscribers to the FBI if they show up with a court order.


This may be something new for those believing that using the VPN service would ensure them certain a degree of anonymity, even if they were carrying out cyber attacks on others. The news emerged after Hide my Ass began receiving letters from the users that said its services were used by large hacker groups like Lulzsec. On its official page, the company told that when Lulzsec IRC chat logs had been released, Hide my Ass turned out to be in the list of the VPN services they used for cyber attacks.

However, the service did nothing about this fact, because there wasn’t enough evidence to prove the wrongdoing, as well as to identify which particular accounts were used. But later the organization got a court order asking for data regarding to one of the accounts allegedly involved in the leak. The company’s terms of service and privacy policy state that their services are not to be used for unauthorized activity. Consequently, being a legitimate firm, Hide my Ass will cooperate with the law enforcement provided they receive a court order.

The company clarified that its VPN service, as well as VPN services in general, are not designed to be used for any kind of unauthorized activity. That’s why it is naive for hacktivists to believe that by paying a small subscription fee to a company providing VPN service they may feel free to violate the law without fearing consequences. Meanwhile, Hide my Ass pointed out that it’s true not only for them, but even hardcore privacy services, advertising their service as the one that would never let identify you, will most likely to have their network tracked and tapped by the police.

Hide my Ass was founded back in 2005 as a way to bypass filtering of the Internet, and it still believes that the web shouldn’t be filtered. In case the FBI shows up with a court order, the company will only provide them with the logging times that users connect and disconnect from the VPN network. Although the service doesn’t monitor the traffic once it is running, it is still possible to locate abusive users.

Hide my Ass added that it is a company residing in the United Kingdom, and therefore it will only obey British laws. So, if any other government wants log details, it will have to prove the subscribers violated British laws, not its own.

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Download Windows 8

Windows 8 Developer Preview

Developer Preview particularly interesting, because in the package, Microsoft has placed development tools that let you program the apps to the new Metro-interface.but its only important if you are developers.there is still a long way to go before we see the finish product.a good idea is to install Windows 8 on a separate hard drive or partition if you have important stuff on your PC
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Planned 4G Network Draws Fire From House Science Panel

A multibillion dollar proposal to create a 4G wireless broadband network in the United States could interfere with several scientific services that use the Global Positional System (GPS), including forecasting the weather, monitoring climate change, and tracking volcanic activity, U.S. federal officials told a Congressional panel yesterday. Their concerns are the latest in a crescendo of objections raised against the proposal by federal agencies and providers of GPS-based services.

LightSquared, a company based in Reston, Virginia, has already spent over $4 billion to set up the network, which would provide improved cell phone and Internet connectivity across the country. The network would be supported by LightSquared's geostationary satellites and some 40,000 ground transmitters operating in a frequency band adjacent to the band used by GPS, a satellite-based navigation system used the world over.

That plan is awaiting a final green light from the Federal Communications Commission. In the meantime, however, it has run into considerable opposition from the government and the private sector. The Federal Aviation Administration has pointed out that the LightSquared network will intrude upon its Next Generation Air Transportation System, impinging on the FAA's efforts to make flying safer. Commercial providers of GPS services have raised concerns that LightSquared's transmitters will cause problems for millions of GPS devices used in everything from car-navigation systems to fishing boats. These concerns have been validated by tests conducted earlier this year by a technical working group that included representatives from LightSquared and the GPS industry.

At a hearing before the House of Representatives Committee on Science, Space, and Technology, officials from NASA, the National Oceanic and Atmospheric Administration and the U.S. Geological Survey (USGS) expressed concerns about LightSquared's impact on federal science activities. "NASA relies on GPS technology to monitor and improve our understanding of earth science, including climate change and solid Earth hazards, such as earthquakes and volcanic activity," Victor Sparrow, director of NASA's Spectrum Policy and Planning Division, told the committee. David Applegate, USGS associate director for natural hazards, said LightSquared's proposal would jeopardize the operations of several "high-precision GPS stations" that are used for "earthquake monitoring for at-risk urban areas in southern California, the San Francisco Bay Area, and the Pacific Northwest."

The results of tests by the technical working group, submitted this summer to the Federal Communications Commission, found that 31 out of 33 high precision GPS receivers were significantly affected by LightSquared's signal. In response, LightSquared has proposed to operate its transmitters in a frequency band farther away from the GPS spectrum, a step it says will correct the problem. In addition, it has offered to share with the owners the cost of upgrading any GPS receivers still affected by LightSquared's signal.

Federal officials testifying yesterday were not convinced that LightSquared's modified plan would address their concerns. Lawmakers on the panel seemed equally skeptical. "Unfortunately, no testing has been done on this modified plan," remarked the committee's chairman, Representative Ralph Hall (R-TX). "Additional testing should be required before the FCC allows LightSquared to begin commercial service," he added.

The ranking Democrat on the panel, Representative Eddie Bernice Johnson (D-TX), hoped that a compromise would be worked out between GPS users and LightSquared. The question before the FCC was "whether GPS can thrive side-by-side with a ground-based broadband network," she said. "I sincerely hope that they can coexist."
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Windows 8 Boot Time Will Wow, Microsoft Says

Tired of being cast as the laggard in the computer boot time contest, Microsoft says that its forthcoming Windows 8 operating system will start quickly.

In a post to the Building Windows 8 blog, Steven Sinofsky, president of Microsoft's Windows division, acknowledged the importance of boot time. "[N]o feature gets talked about and measured more," he wrote, which is surprising considering that boot time is only loosely related to the performance and utility of the operating system.

It ought to be possible to ignore boot time, to turn on one's computer and go get a cup of coffee while the necessary files are loaded into memory. But the real world doesn't work that way. Waiting for a computer to boot engenders the same frustration as waiting for the driver in the car in front of you to recognize that the light has turned green. A few seconds can feel like an eternity.

Microsoft's competitors haven't wasted any time hammering that point home. What's the first feature Google mentions about its Chromebooks? "Chromebooks boot in 8 seconds and resume instantly." For those running Windows XP, with boot times measured in minutes, that's a major selling point.

The mobile workforce is one of the fastest growing threats to security.
Discover 7 tips to combat this threat.

Windows 7 has narrowed the boot time gap substantially, thanks to techniques like parallel driver initialization, but Microsoft wants the process to be faster still. A video demonstration shows Windows 8 booting in ... 8 seconds.

In the blog post, Gabe Aul, a Windows director of program management, characterizes Windows 8's fast startup mode as "downright amazing."

Part of the speed improvement can be attributed to the fact that the Windows 8 demo laptop uses a solid-state drive, or SSD. That's what you want if you're after rapid boot times. That's what Google uses in its Chromebooks. An SSD-equipped MacBook Pro running Mac OS X Lion clocks in at a few seconds more, but some users report sub-10 second boot times.

Yet Windows 8 isn't simply relying on fast storage hardware. Microsoft has also been working on software improvements to make Windows computers boot more quickly. Aul, for example, describes how Windows 8's fast startup mode combines the traditional cold boot process with hibernate mode. In addition, the company has been working with manufacturers to promote the use of Unified Extensible Firmware Interface (UEFI) hardware, which is faster than traditional BIOS.

The change has been a long time coming, and for Windows users, it probably can't come fast enough. Expect further details to be revealed at Microsoft's BUILD conference next week.
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Google Urges Iranian Users to Secure Accounts After Hack

In the wake of a digital certificate hack that potentially allowed hackers to gain access to the Google accounts of 300,000 Iranians, the search giant this week urged those users to take certain steps to secure their data.

"While Google's internal systems were not compromised, we are directly contacting possibly affected users and providing similar information below because our top priority is to protect the privacy and security of our users," Eric Grosse, vice president of security engineering at Google, wrote in a blog post.

First of all, Google urged users in Iran to change their passwords. Second, the company suggested people verify their account recovery options: are the secondary email addresses, phone numbers, and other information provided still accurate? Third, Google urged users to double check the Web sites and apps that have access to their accounts, and revoke any that are unfamiliar. Gmail users were also asked to check settings for suspicious forwarding addresses or delegated accounts.

Finally, Google told users not to click through to Web sites if a warning appears before they load.

At issue is Netherlands-based DigiNotar, which issues certificates that validate Web sites as legitimate. It recently disclosed that it had been hacked, and an investigation into the effect of the intrusion found that, among other things, the hack possibly compromised the Google accounts of more than 300,000 Iranians.

What this means is that when users in Iran and elsewhere navigated to certain Web sites, they might actually be visiting spoofed sites that stole personal information when users logged in. Browser makers like Google, Microsoft, and Mozilla quickly moved to block DigiNotar digital certificates; Apple took some heat for not doing the same on Safari. Adobe is the latest company to also block certificates from DigitNotar.

A hacker known as Comodo Hacker, who got his name thanks to a March hack of Comodo, has also taken credit for the DigiNotar job. He also claims to have accessed GlobalSign, prompting the company to temporarily stop issuing digital certificates.
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Music Industry Will Pursue YouTube Users

After a Britney Spears concert that took place at the MGM Grand in L.A. was uploaded to the Internet for everyone to see by some YouTube user, the music industry was doing its best to find more information on the user’s identity by starting a criminal investigation.

The Britney Spears concert was uploaded in high-quality YouTube back in July. After the incident, the Recording Industry Association of America requested a subpoena against YouTube. In fact, this was the first time when music industry targeted the online video service.

Mark McDevitt, Vice President of Online Piracy for the music group, made a declaration to the court, where he requested a subpoena ordering video website to offer information on the identity of the unknown user, responsible for uploading the concert, like his e-mail address, IP address, and whatever else the site could know that might lead to his identification.

Meanwhile, the RIAA’s representatives rejected to provide any comments over the issue when contacted by industry observers. Despite the fact that the original video was removed from the streaming website, its copies could still be found on YouTube and everywhere else on the Internet. At the same time, online service may not be held responsible for copyright violation as the filling is for a DMCA subpoena.

The media reported that according to the court’s record of proceedings, the lawsuit was filed back in July, but the case was closed after just 7 days. The lawyers confirmed that this may only mean that the court granted a subpoena. In response, YouTube might have agreed on its terms by offering the required information.

Earlier in 2011, Box.net’s users were pursued by the Recording Industry Association of America after the latter filed a similar declaration at a federal court in California. That time, the suspected pirates were supposedly storing pre-released songs on their accounts. Like YouTube, Box.net agreed on the terms if the subpoena was to be granted by the court, saying that it took the confidentiality of its users’ information very seriously, but like any other business, the company was legally demanded to comply with court orders. Thus far, no criminal suits were launched as a result of hunting down those suspected copyright violators. We’ll what will happen to the YouTube user if any is found.
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Hurricane Irene New Jersey: One Million Evacuated, Atlantic City in Danger

New Jersey governor Chris Christie announced one million people have been evacuated ahead of Hurricane Irene, but still worried about residents staying behind -- specifically in Atlantic City.

In a Saturday press conference, Christie said that one million New Jersey residents have evacuated their homes, including 90 percent of Cape May Co., but remains worried about stubborn residents refusing to leave their homes.

Christie noted that some Atlantic City residents, predominantly senior citizens, have refused to heed Christie's warnings to leave the area. The governor plans to deploy state police and OEM officials to try to get the citizens to reconsider.

"Allow us to help protect you," Christie told senior citizens.

The state will send buses to the Atlantic City area as officials plan to meet with each remaining citizen individually to try to get everyone in the area to leave. Christie admitted he couldn't arrest anyone that refused to leave, but that it'd be much safer to get out of the area.

Atlantic City is in danger due to its close proximity to both the ocean and a bay. The city, known for its casinos, has a famous boardwalk and pier right on the water that could succumb to flooding from storm surges.

The city voluntarily shut down this weekend for just the third time in 33 years.

Christie is worried that senior citizens near the water in high-rise apartments could be in a lot of danger if the storm hits with winds upwards of 75 mph, as expected.

The state has scattered 1500 National Guard soldiers throughout dangerous regions, hoping to move residents to safe shelters.

The state is planning on using sports arenas and stadiums as shelters, but has already experienced a few hiccups. Last night residents sheltered in the Sun Center in Trenton, the state's capital, were forced to sleep in the arena's seats, as cots had not been prepared yet.

In other shelters throughout the state, some complained of the poor overall conditions of the state.

Yavor Tenev, a native of Bulgaria, who works a summer job in Ocean City, told reporters: "There are a lot of people in there [evacuation shelter]."

Another evacuee complained: "It's freezing in there. There is nowhere to sleep, only places for the elderly and sick."

Christie said that the main point of the shelters is to keep people safe, dry, and keep them fed and hydrated.

On Friday Christie told Jersey residents to "get the hell off the beach," as Irene continued her ascent up the East Coast.

Cape May County and low-lying areas of Atlantic, Monmouth, and Ocean counties have been evacuated.
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Hurricane Irene: Do not underestimate Category 1 storm, FEMA warns

Federal officials are warning residents in Irene's path not to underestimate the storm after it was downgraded to a Category 1 hurricane as it made landfall Saturday morning.

"If you’re in a hurricane, you're in a hurricane," Homeland Security Secretary Janet Napolitano said in a Saturday morning briefing at FEMA headquarters. "We anticipate heavy rain, potential flooding and significant power outages throughout the area of the storm, which means all up and down the Eastern Seaboard."

As Irene pounded the North Carolina coast with hurricane-force winds of about 85 miles per hour, FEMA Administrator Craig Fugate warned that the large, slow-moving storm could produce dangerous tornadoes and heavy rain.

"When we talk about category of hurricane, that does not explain all the risk," Fugate said. Category designations indicate the risk from high winds and storm surge. But rainfall and tornadoes are risks that "are not tied to the category of storm," Fugate said.

Tornados "will not be on the ground very long," he said. "But they can still be very devastating."

Also of concern: Conditions at nuclear power plants along the Eastern Seaboard. The Nuclear Regulatory Commission on Saturday dispatched staff to 11 plants along the East Coast and announced new measures to check that the plants' reactors were protected by backup power systems, NRC spokesman David McIntyre said.

Several inspectors were sent to affected plants and they -- along with a team at NRC headquarters -- were checking safety systems and making plans to closely monitor the facilities during the storm.

As it continues to cross North Carolina's eastern coast, Irene is expected reach Norfolk, Va., by Saturday evening. The National Hurricane Center projects that the storm may weaken slightly but will remain "near hurricane strength" as it approaches New England.

A wind gust at 87 miles per hour was measured at Cape Hatteras, N.C, and Norfolk Naval Air Station recently reported gusts of 63 miles per hour.

President Obama visited FEMA's Washington headquarters Saturday afternoon, after receiving an earlier briefing from Napolitano and Fugate. According to a White House statement on the briefing, Obama "reiterated that we know that this storm's impacts will continue to be felt throughout the weekend and that we still have work ahead of us to support potentially impacted states and communities."
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Subway Closes in New York as Hurricane Nears

New York became a city without one of its trademarks — the nation’s largest subway system — on Saturday as Hurricane Irene charged northward and the city prepared to face powerhouse winds that could drive a wall of water over the beaches in the Rockaways and between the skyscrapers in Lower Manhattan.

The city worked to complete its evacuation of about 370,000 residents in low-lying areas where officials expected flooding to follow the storm, and the transportation system — the subways, along with buses and commuter rail lines — shut down at noon. Police officers sounded the warning, strolling along subway platforms and telling people the next train would be the last. The conductor of a No. 4 train that pulled into the Borough Hall station in Brooklyn at 12:14 p.m. had the same message.

“This is it,” he said, smiling. “You’re just in time.”

Soon subway employees were stretching yellow tape across the entrances to stations to keep people from going down the steps and into an underground world that was suddenly off limits, but not deserted. Transit workers were charged with executing a huge, mostly underground ballet, moving 200 subway trains away from outdoor yards that could flood if the storm delivered the 6 to 12 inches of rain that forecasts called for. The trains were to be parked in underground tunnels across the city, making regular runs impossible.

Mayor Michael R. Bloomberg said that mass transit was “unlikely to be back” in service on Monday. The mayor also said that electricity could be knocked out in Lower Manhattan if Consolidated Edison to shut off the power pre-empt the problems that flooding could cause for its cables.

“This is just the beginning,” the mayor said at a morning news conference on Coney Island, where he and Police Commissioner Raymond W. Kelly inspected boats that emergency workers could use in neighborhoods they could not travel through any other way. “This is a life-threatening storm,” he added.

Mr. Bloomberg said the evacuation and the transit shutdown, actions he said had never been ordered before, were proceeding as well as could be expected, with officials going door to door in high-rise housing projects and firefighters driving school buses to help get homebound residents out of low-lying neighborhoods.Phyllis Rhodie, 48, boarded such a bus outside the Redfern Houses in the slender peninsula of the Rockaways. She took along her boyfriend, three children, water, food, some medical supplies — and a case of nerves.

“I’m staying wherever they can put me up,” she said.

And while hundreds of city employees worked in emergency shelters, hundreds of National Guard troops prepared to fan out across the city and Long Island. Scores gathered at the 69th Regiment Armory, on Lexington Avenue at East 26th Street, awaiting their orders.

The storm caused major disruptions long before the first bands of rain swirled by. The three major airports in the New York region stopped clearing flights for landing at noon. Officials said they would remain open for planes that wanted to take off, but most flights had been canceled on Friday, according to Steve Coleman, a spokesman for the Port Authority of New York and New Jersey.

Supermarkets and hardware stores were jammed on Saturday morning, as they had been the previous day, as New Yorkers who did not have to evacuate stocked up on provisions. They worried that skyscraper windows could shatter and papers and even furniture could be sucked out. They worried that trees in parks could be uprooted and go flying, creating a deadly whirlwind that could do more damage.

They watched as workers stacked sandbags around subway grates near the East River, which is expected to surge as the hurricane passes by. And police trucks with loudspeakers crawled through low-lying neighborhoods, broadcasting warnings to people who had not already left on their own.

The National Weather Service said the storm would churn along the Interstate 95 corridor, keeping up its 14-mile-an-hour pace. That would bring the center to the New York area by Sunday afternoon — probably east of the city on Long Island, forecasters said, although they cautioned that the path could change at any moment. The city had been under a hurricane warning, its first since 1985, since Friday afternoon.
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Steve Jobs' resignation 'end of an era'

Steve Jobs' resignation Wednesday as the CEO of Apple will not disrupt the company's product plans in the short-term, but could dull its ability to dazzle consumers down the road, according to one analyst.

"Apple is fine, and will be," said Ezra Gottheil, an analyst with Technology Business Research. "Apple knows what it's doing for the next big thing, maybe the next two next big things. They lose the showmanship of Jobs, but [the company's executives] have their marching orders."

Shortly after Jobs submitted his resignation, the Apple board of directors took his advice and named Tim Cook, formerly the chief operating officer, as the new CEO. Also on Wednesday, Jobs was named chairman of the board.

But to some long-time Apple observers, the departure of Jobs is a potential pitfall for the company.

"Apple will be a changed company without Jobs," said Rob Enderle of the Enderle Group. "It will be a very different Apple."

Jobs, who co-founded Apple in 1976 with Steve Wozniak, was forced out of the company in 1985, a year after the launch of the original Macintosh, by then-CEO John Scully and the Apple board. Jobs founded NeXT that same year.

He returned to an Apple in early 1997 when the company acquired NeXT, first as an advisor and then interim CEO. Jobs was named permanent CEO in 2000.

Jobs departure, the analysts agreed, will certainly affect how Apple markets itself and ultimately, how customers view the company.

"Longer term, Apple won't pull off the miracles it did during one of the great leadership careers in business," said Gottheil, citing the iPhone, which Jobs personally launched in 2007, and then the iPad in 2010.

Enderle was more blunt.

"Companies that lose an iconic leader, whether IBM when Thomas Watson Jr. stepped down, or Disney when Walt Disney was gone, or even Microsoft without Bill Gates, firms that went through that transition largely lost the magic," said Enderle.

He also compared Jobs to P.T. Barnum, and traced a line from Barnum to Disney to Jobs, saying each was "magical" in his own way. "Apple with Jobs was magical," Enderle said. "And [without those leaders] you can't do the magic. And Tim Cook isn't magical."

Jobs was best as Apple's creative spark, said Gottheil; Enderle saw it differently.

"It's how he marketed, how he announced products and how he put them in the public eye," said Enderle. "The iPhone wasn't the first smartphone. It was a success because of the way it was packaged and delivered."

While Enderle believes that Apple could show dramatic changes within 24 months -- conceivably before the already-stocked product pipeline is exhausted -- Gottheil was more optimistic about its chances without Jobs.
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East Coast Earhquake (8 23 2011) Magnitude 5.9 - VIRGINIA

Earthquake Details

This event has been reviewed by a seismologist.

Magnitude 5.9
Date-Time

Tuesday, August 23, 2011 at 17:51:03 UTC
Tuesday, August 23, 2011 at 01:51:03 PM at epicenter

Location 37.975°N, 77.969°W
Depth 1 km (~0.6 mile) (poorly constrained)
Region VIRGINIA
Distances 45 km (27 miles) E of Charlottesville, Virginia
55 km (34 miles) SW of Fredericksburg, Virginia
64 km (39 miles) NW of RICHMOND, Virginia
82 km (50 miles) NNE of Farmville, Virginia
Location Uncertainty horizontal +/- 10.9 km (6.8 miles); depth +/- 7.4 km (4.6 miles)
Parameters NST=390, Nph=390, Dmin=57.9 km, Rmss=1.17 sec, Gp= 47°,
M-type=regional moment magnitude (Mw), Version=6
Source

Magnitude: USGS NEIC (WDCS-D)
Location: USGS NEIC (WDCS-D)

Event ID usc0005ild
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Port Authority NY/NJ, Higher Bridge, Tunnel and PATH Rates Approved

A steep toll increase on the bridges and tunnels that cross the Hudson River was approved on Friday by the board of the Port Authority of New York and New Jersey, the culmination of a two-week dance between the agency, politicians, and the public.

The approved increase, which takes effect next month, will immediately raise peak EZPass tolls to $9.50 from $8. By 2015, that toll will be $12.50. The cash toll will go up 50 percent in September to $12 a ride; by 2015, the cash toll will be $15.

The increases, although sure to be criticized by drivers, are significantly less steep than an initial proposal floated by the Port Authority earlier this month, and few municipal observers were surprised by the change.

Gov. Andrew M. Cuomo of New York and Gov. Chris Christie of New Jersey expressed surprise at the initial plan — a stance that raised some eyebrows as the governors jointly control the agency, whose every public action, particularly one as significant as a toll increase, is rarely announced without some form of prior approval from the two executives.

The governors pledged to review the proposal with the agency, and a round of public hearings was held. (Few, if any, authority board members attended those sessions.)

Late Thursday, as predicted, the governors issued a joint statement that took credit for the lower increases. “We are pleased that our work together” led to the lower tolls, the governors wrote.

The proposal will also raise the single-fare ride on the PATH train by 25 cents each of the next four years.

Mr. Cuomo and Mr. Christie have called for a significant audit of the Port Authority and blamed the toll increases on “fiscal mismanagement.” The governors promised to reduce the agency’s budget for maintenance and expansion.

The authority, like many sprawling bureaucracies, has its share of waste and inefficiencies, such as spiraling overtime. But the agency has trimmed its operating budget in the past few years and reduced staffing to the lowest level in decades. Its bonds recently received an upgrade from a rating agency.

The need for higher tolls is based more on the declining economy, which reduced the number of commuters (and thus, toll revenue) on the agency’s crossings. And the rebuilding of the World Trade Center site has siphoned billions away from the agency’s budget for improving and expanding its bridges, tunnels, airports, shipping ports and the PATH system.

Mr. Christie, who has pledged to not raise taxes on his constituents, called for the agency to use part of its budget for New Jersey road and highway repairs, which are traditionally paid for by the state. Some of Mr. Christie’s political opponents say the higher tolls are a de facto tax increase on commuters.

At Friday’s board hearing, representatives of several civic groups expressed support for the higher tolls, saying the revenue was necessary to help pay for the region’s transportation infrastructure to stay in good repair.

Mayor Michael R. Bloomberg, on his Friday morning radio show, also endorsed the plan, warning that without additional revenue, the region’s economy would be at risk.

“The bridges would eventually fall down, we wouldn’t fix anything, we wouldn’t make the commute better,” the mayor said. “If you want services, you’ve got to pay for them.”

The proposals were approved 9-0 by the agency’s board of commissioners, all of whom are appointed by the two states’ governors.

A handful of commuters and civic activists spoke at Friday’s meeting against the higher tolls, saying that the working public was being asked to subsidize the agency’s foul-ups.

None of the agency’s nine commissioners would speak to reporters at the hearing’s conclusion. “I speak to the public, but not under these circumstances,” said one commissioner, David S. Steiner, as he walked past reporters into a private side room.

Mr. Steiner, an appointee of former Gov. James E. McGreevey of New Jersey, did not appear to be listening to the public, either. He could be seen resting, with his eyes shut, during significant portions of Friday’s board meeting.
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Behind Google’s Huge Breakup Fee in Motorola Deal

It is certainly big. But is there any chance that it will be paid? I’m talking about the $2.5 billion reverse termination fee that Google agreed to pay Motorola Mobility if its proposed takeover fails to obtain antitrust clearance. This fee is about 20 percent of the $12.5 billion deal value and is significantly higher than the $375 million Motorola Mobility must pay Google if it accepts another bid.

Motorola filed a copy of the acquisition agreement between it and Google on Wednesday that spells out the exact terms when this fee is required to be paid. There are two circumstances:

1. The agreement is terminated because a government authority (e.g., a federal court or European Union antitrust authorities) issues a final, non-appealable order blocking the transaction on antitrust grounds.

2. If by Feb. 15, 2013, the transaction has not closed because it is being blocked by the authorities or has not cleared antitrust review, either party can terminate the agreement and transaction. The fee is then payable if two more conditions are met:

a) The transaction could otherwise close but for the failure to obtain antitrust clearance or the government blocking the deal.

b) Google willfully failed to use its reasonable best efforts to complete the deal or otherwise willfully breached the requirements in the agreement to obtain antitrust approval.

Basically, these provisions can be boiled down to an agreement that if the transaction is blocked on antitrust grounds, then Google is on the hook for $2.5 billion. But as long as Google complies with the agreement, it will have to fight such a government action in court, and a final disposition of the action has to occur by Feb. 15, 2013.

People close to Google have said they do not believe there are antitrust problems. So why is the fee so big?

The fee’s driver is that Google has become what Microsoft was a few years ago, a natural target for European and American antitrust regulators. For the foreseeable future, any significant transaction Google engages in will really be all about antitrust in terms of getting it done.

Absent this factor, the antitrust risk on this deal seems low. There is not substantial overlap between the company’s businesses. Google, the Internet search engine giant, also produces Android phone software, while Motorola Mobility manufactures cellphones and other wireless devices. Since there is virtually no horizontal overlap, the deal is known as a case of vertical integration. This is where two companies combine whose products are usually made separately but can be used in each others’. An example might be if General Motors bought a steel maker.

In the case of vertical integration, the antitrust authorities would have to show that competition would be reduced to challenge the transaction. This is a hard thing to do in the case of vertical integration because the impact on competition is much harder to measure.

This big fee, however, may not be a signal that there is an antitrust risk that the deal will be blocked, but a statement to the market of the opposite: that there is no such risk. By agreeing (or perhaps even proposing) such a large fee, Google is saying this is not a problem. And antitrust authorities are now put on notice that if they decide to give Google a hard time, the company is not only going to fight this but will be willing to pay for the fight to the tune of $2.5 billion.

This fee may therefore be a statement by Google that the antitrust authorities should tread carefully in examining and challenging this deal.

There is precedent for this. When Microsoft agreed to buy aQuantive in 2007 for $6 billion, it agreed, likely for similar reasons, to a $500 million reverse termination fee, or just over 8 percent of the deal value.

Typically, merger agreements have provisions that also spell out the procedures and steps the parties will take to obtain antitrust clearance. If you look at these provisions in the Google-Motorola Mobility acquisition agreement, they support the theory that this is all about Google making a statement to the antitrust authorities.

The provisions provide Google complete control over the antitrust process. In addition, the agreement does not obtain any species of a “hell or high water” provision. This provision, commonly seen in deals with antitrust risk, requires the buyer to take steps like asset divestitures or licensing of technology to satisfy antitrust regulators and obtain antitrust clearance. But there is no such provision in the Google-Motorola Mobility transaction agreement. This is a boon for Google, because regulators will look at such a provision as an easy way to force concessions. Google does not want to provide antitrust regulators any low-hanging fruit.

To some extent, the high reverse termination fee functions as a form of hell-or-high-water provision, though it is different in an important way. Without this provision, Google can arguably refuse to take any steps to satisfy regulators and simply pay the fee. If there were a hell-or-high-water provision, Google would first have to offer up concessions.

Again, making the fee higher benefits Google. If it were smaller, say only a couple of hundred million dollars, regulators might strong-arm the company into simple concessions, thinking this was chump change to Google. By setting it higher, Google has sent a warning: If you come after us, you better be serious and we are not going to give.

Here, the actual terms specifying when Google has to pay the fee also benefit it. Because so much is at stake, Google will fight any antitrust action and is unlikely to breach the agreement. This would only leave a final order blocking the merger as the way such a fee is payable, meaning a long fight for regulators.

Of course, I am sure Motorola Mobility asked for a high fee and was happy to take it. But the acquisition dynamics play to both parties agreeing to this fee. This $2.5 billion fee is therefore different than the $3 billion fee that AT&T agreed to pay T-Mobile if that deal does not obtain regulatory clearance. In the case of the AT&T-T-Mobile deal, the fee is all about compensating T-Mobile if the deal collapses and assuring it on the risks involved, as well as incentivizing AT&T to do what is needed to obtain this clearance in terms of regulatory concessions.

And for those wondering, the Microsoft-aQuantive deal closed without any significant antitrust scrutiny.
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Windows 8 will have an app store, but will it be called App Store?

Microsoft has offered up a few more details on what to expect in Windows 8, its highly anticipated operating system that will run on both PCs and tablet computers.

But one addition, if Microsoft can do it right, could be hugely important for Windows 8 -- its app store.

Steve Sinofsky, who is in charge of Windows 8 development for Microsoft, broke down in a blog post the different teams working on specific aspects of the new OS and an "App Store" team was on the list.

An app store is, obviously, a store that sells applications, software to run on Windows 8 machines.

The inclusion of an app store in Windows 8 is a natural one, and not much of a surprise given Apple's huge success with selling mobile apps through iTunes and desktop apps through the Mac App Store.

Apple's iTunes has seen more than 15 billion apps downloaded and purchased -- a huge boon for Apple and huge attraction for developers.

A June screen shot of Windows 8 also featured, prominently, a "shop" icon with a Windows-logo adorned bag sitting beside it, too. And Microsoft has embraced the app store idea with Windows Phone 7's app Marketplace.

Even the much-maligned Windows Vista had an app store called the Windows Marketplace, though it (or Windows Vista) never found much popularity.

Among the questions, however, that remain is just what Microsoft will call its app store.

If the ongoing lawsuit between Apple and Amazon is any indication, Apple would be terribly unhappy if Microsoft just stuck with that App Store team name for the name of its new store. That's because Apple says the term App Store is a label it owns and that nobody else can use.

Apple sued Amazon in March after the online retail giant revealed its Amazon Appstore for Android, arguing that the similarity in names would confuse consumers looking for Apple's iTunes or Mac App Stores.

Amazon has disputed Apple's claims, arguing itself that "app store" and "appstore" are generic terms that shouldn't be owned by any one person or company.

What do you think? What will it take for Microsoft's Windows 8 app store to take off? If Microsoft doesn't call their store for apps an app store, what should they call it?
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HP looks to get out of PC hardware business to focus on software solutions

The bombshells from HP continue to fall from the sky. Earlier today, it was confirmed that HP is abandoning the webOS platform which it acquired from Palm for $1.2 billion USD just over a year ago. Now, were hearing reports that HP plans to announce that it will sell off its Personal Systems Group (PSG) which is responsible for consumer and business PCs.

The company stated in a press release:

HP also reported that it plans to announce that its board of directors has authorized the exploration of strategic alternatives for its Personal Systems Group (PSG). HP will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction.

To many, this may seem like a strange move considering that HP is the number one seller of computers in the world (we sorry Apple, but we're not going to count the iPad). According to Garner, HP shipped over 14.8 million PCs during the second quarter of 2011 to secure 17.5% of the market. Dell was the next closest with 10.6 million/12.5%.

IDC produced similar figures and reported that HP shipped 15.2 million PCs/18.1% compared to 10.9 million/12.9% for Dell.

Despite HP's beastly PC shipments, the never-ending race to the bottom when it comes to final transaction prices for consumers means that there's little room for profit in this cutthroat business. While Apple can get away with charging customers $999 for an 11" notebook or $2,499 for a 17" desktop replacement notebook, PC users tend to be more price sensitive.

A June report from The Loop suggests that Apple makes more money from selling just one computer than HP does from selling seven.

Bloomberg reports that HP, which is helmed by Leo Apotheker, wants to leave the hardware business behind and focus on its more lucrative software and cloud services offerings. “This is the direction we want him to take,” stated ISI Group analyst Abhey Lamba. “Get out of a low- margin business and focus more on his core competency, which is software.”

More specifically, HP has laid out these three keys for its new "company transformation":

Move HP into higher value, higher margin growth categories
Sharpen HP's focus on its strategic priorities of cloud, solutions and software with an emphasis on enterprise, commercial and government markets
Increase investment in innovation to drive differentiation

HP also announced its earnings today, and revenue for the third fiscal quarter was up slightly to $31.2 billion USD compared to $30.7 billion USD during the same quarter last year.
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