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Tech Rivals Unite To Support Apple In iPhone Privacy Case Vs. FBI

A who’s who of Internet and technology companies on Thursday filed legal briefs in support of Apple ( AAPL ) in its fight to keep iPhone data private. The companies expressed concern that a federal court order forcing Apple to unlock an iPhone in a criminal case could have far-reaching negative implications for the privacy and security of consumer data. The law firm of Hogan Lovells represented 15 companies, including Amazon.com ( AMZN ), Cisco Systems ( CSCO ), Facebook ( FB ), Google and Microsoft ( MSFT ), in its brief backing Apple. Munger, Tolles & Olson represented 18 Internet companies, including  eBay ( EBAY ), LinkedIn ( LNKD ),  Twitter ( TWTR ) and privately held Automattic in its supporting brief. The Hogan Lovells filing argues that the federal government is misusing the All Writs Act to try to force Apple to write software to bypass its own security features. It notes that the companies filing the amicus brief often compete vigorously with Apple and each other, but “here speak with one voice because of the singular importance of this case to them and their customers.” The Munger, Tolles & Olson filing hammers home similar points. “This extraordinary and unprecedented effort to compel a private company to become the government’s investigative arm not only has no legal basis under the All Writs Act or any other law, but threatens the core principles of privacy, security, and transparency that underlie the fabric of the Internet,” the law firm wrote. On Feb. 16, U.S. Magistrate Sheri Pym ordered Apple to provide “reasonable technical assistance” to the FBI to help unlock an iPhone belonging to Syed Farook, one of the killers in the San Bernardino, Calif., terrorist attack on Dec. 2. Apple has protested the ruling, saying that it would create a “back door” to bypass its security protections and thus threaten the personal data of millions of iPhone users. Once available, the vulnerability could be exploited by cybercriminals, hackers and both foreign and domestic spies. Other parties filing briefs in support of Apple in the case include AT&T ( T ), Intel ( INTC ) and trade groups like the Consumer Technology Association and Business Software Alliance. Apple also has gained the backing of privacy advocacy groups including the American Civil Liberties Union, Electronic Frontier Foundation and Electronic Privacy Information Center. Apple has posted on its public relations website a list of parties filing amicus briefs in support of its case . But the FBI has garnered its own set of supporters filing amicus briefs in the case. Parties backing the FBI’s position include the Federal Law Enforcement Officers Association, the Association of Prosecuting Attorneys, the National Sheriffs’ Association, the California State Sheriffs’ Association, California Police Chiefs’ Association, California Peace Officers’ Association and San Bernardino District Attorney Michael Ramos, as well as the families of several victims of the Dec. 2 shootings.

Amazon Confirms It’s Ending Fire Tablet Encryption, Takes Heat

E-commerce leader  Amazon.com ( AMZN ) has confirmed that it has disabled encryption on its tablets running Fire OS 5. News of the change comes at an auspicious moment, as a debate in the U.S. rages about whether  Apple ( AAPL ) should create a tool that would give government access to a terrorist’s iPhone. Apple says that giving the feds such access would make all other iPhones more vulnerable. Amazon spokeswoman Robin Handaly emailed a prepared statement to IBD about the encryption change: “In the fall when we released Fire OS 5, we removed some enterprise features that we found customers weren’t using,” the statement reads. “All Fire tablets’ communication with Amazon’s cloud meet our high standards for privacy and security, including appropriate use of encryption.” Industry observers have been critical of Amazon’s decision to eliminate the security measure from its devices. “Removing device encryption due to lack of customer use is an incredibly poor excuse for weakening the security of those customers that did use the feature,” Jeremy Gillula of digital-rights nonprofit Electronic Frontier Foundation told IBD via email. “Given that the information stored on a tablet can be just as sensitive as that stored on a phone or on a computer, Amazon should instead be pushing to make device encryption the default — not removing it.” “Amazon’s decision is backward — it not only moves away from default device encryption, where other manufacturers are headed, but removes all choice by the end user to decide to encrypt it after purchase,” Nathan White, senior legislative manager at digital rights organization Access Now told Wired . “The devices themselves also become more attractive targets for thieves. Users should no longer trust these devices: If you wouldn’t post it to the Internet publicly, don’t put it on a Fire Tablet.” Amazon stock was flat in early afternoon trading on the stock market today . Typically, device encryption is used by device owners to protect their data in case the the device is lost or stolen. Amazon’s own chief technology officer just last month gave a speech strongly supporting encryption  in general. Reports of the company terminating encryption have sparked debate on Amazon Web forums. Amazon, however, has joined 14 other tech giants in filing court papers that support Apple and its fight against the FBI. The government is attempting to gain access to an iPhone used by one of the dead terrorists in the San Bernardino, Calif., shootings. Other companies involved include Alphabet ( GOOGL )-owned Google, Facebook ( FB ) and  Microsoft ( MSFT ).

IBD 50’s Broadcom Jumps Into Buy Range, Ambarella Down On Earnings

Apple ( AAPL ) supplier and IBD 50 list growth stock  Broadcom ( AVGO ) opened sharply up Friday, jumping into buy range. Thursday afternoon the company’s  quarterly report beat estimates  despite slowing iPhone sales. In midmorning trading Friday Broadcom was up 6%, near 146 — putting it now at the top of buy range from a double-bottom base with a buy point of 138.79. Several high-rated chipmakers have been approaching buy zones lately with the market returned to an uptrend, including the two chipmakers on the IBD 50 list: Broadcom and Nvidia ( NVDA ), which makes chips for computation-intensive processes including graphics, gaming and self-driving cars. Ambarella ( AMBA ) stock was down more than 5% in the stock market today , after the maker of image-processing chips issued disappointing revenue guidance Thursday afternoon while topping views for its fourth quarter. Friday analysts lifted price targets for Broadcom and lowered them for Ambarella. Ambarella is a supplier to action-camera maker GoPro ( GPRO ), which was trading up more than 5% Friday. It’s down about 21% this year. “During the fourth quarter we saw strong sales from professional IP security, automotive aftermarket, home monitoring and flying camera markets,” Ambarella CEO Fermi Wang said in the company’s earnings release. “This was largely offset, however, by a continued decline in the wearable sports camera market.” Ambarella is working to diversify its end markets and customer base. For its Q4 ended Jan. 31, Ambarella said revenue rose 5% from the year-earlier quarter to $68 million, and earnings per share fell 5.9% to 64 cents. That beat the view of analysts polled by Thomson Reuters, who on average expected EPS of 48 cents on revenue of $66 million. But Ambarella gave lagging guidance for its fiscal Q1 2017. It sees revenue of $55 million to $57 million and net income of $8 million to $10 million. Analysts polled by Thomson Reuters have been expecting revenue of $62 million, and net income of just over $14 million. Ambarella gets an IBD Composite Rating of 74 and Broadcom a 98 out of a possible 99, factoring in a variety of metrics such as earnings growth and stock-price gains. RELATED: Can IBD 50’s Broadcom Drive Chip Stocks?