Tag Archives: technology

Microsoft Sues Justice Department Over Secret Data Searches

Microsoft ( MSFT ) has filed a lawsuit against the U.S. Justice Department challenging the government’s authority to bar tech firms from telling customers when their personal data has been turned over to federal agents. Microsoft on Thursday called the Justice Department’s actions unconstitutional and wants to stop the government from forcing it to give customers’ email and other data to law enforcement agents without their knowledge. The Microsoft lawsuit is the latest legal clash between technology companies and the U.S. government over how much private businesses should assist government surveillance and law enforcement efforts. Apple ( AAPL ) has resisted government demands that it make software for authorities to unlock its customers’ encrypted iPhones. Last month, the Justice Department withdrew an order that Apple disable the security on an iPhone belonging to San Bernardino, Calif., shooter Syed Farook, saying that it found a third party to unlock the device. However, a law enforcement source told CBS News that investigators have found “nothing of real significance” so far on the terrorist’s iPhone. Federal law enforcement officials have at least a dozen other criminal investigations in which they are trying to get Apple to unlock iPhones. Meanwhile, Congress is getting involved, considering legislation that attempts to balance civil liberties vs. security. One bill, titled the “Compliance With Court Orders Act of 2016,” was written by Sens. Richard Burr, R-N.C., and Dianne Feinstein, D-Calif. In its suit, Microsoft says that it has received 5,624 federal demands for customer information in the past 18 months. Nearly half of those demands (2,576) came with gag orders preventing the company from telling customers that the government was looking at their data. Also, 1,752 of those secrecy orders had no time limit, so it might never be able to tell customers that the government obtained their digital files. Microsoft: Standing Up For Fundamental Rights In a blog post Thursday , Microsoft President and Chief Legal Officer Brad Smith said that the company filed the suit “to stand up for what we believe are our customers’ constitutional and fundamental rights — rights that help protect privacy and promote free expression.” Microsoft believes consumers and businesses have a right to know when the government accesses their emails and records, except in rare cases, Smith said. “Yet it’s becoming routine for the U.S. government to issue orders that require email providers to keep these types of legal demands secret. We believe that this goes too far, and we are asking the courts to address the situation,” Smith said. The secrecy orders violate the Fourth Amendment, which gives people and businesses the right to know if the government searches or seizes their property, Smith said. The federal government is attempting to treat personal property differently in the cloud computing era, Smith said. With paper documents and electronic records stored in home and business computers, the government had to give notice to the owner when it sought a warrant to seize private information. But with email and digital documents stored on remote servers in data centers, government agents often want to keep their snooping secret. “The transition to the cloud does not alter people’s expectations of privacy and should not alter the fundamental constitutional requirement that the government must — with few exceptions — give notice when it searches and seizes private information or communications,” Smith said. The Justice Department could resolve the issue by adopting a new policy that sets reasonable limitations on the use of secrecy orders, he said. Another solution would be for Congress to amend the Electronic Communications Privacy Act to implement reasonable rules, Smith said. Image provided by Shutterstock .

Could ‘Hidden Assets’ At Yahoo Push Up Its Bidding Price?

Yahoo ( YHOO ) has “hidden assets” that could drive up the bidding price for the struggling Web portal, says SunTrust Robinson Humphrey. “Perpetual” royalties from Yahoo Japan, thousands of patents and plentiful real estate could boost Yahoo’s bids, wrote SunTrust analyst Robert Peck in an industry report Wednesday. Those three critical aspects of the company’s valuation “are not well understood and could have material upside to bids, potentially driving them higher than our $6 billion to $8 billion published range,” wrote Peck. SunTrust raised its price target on Yahoo stock to 44 from 40 while maintaining a buy rating on the company. Yahoo stock was down a fraction in afternoon trading in the stock market today , near 37. While the company could bring in $6 billion net after taxes, Peck said, “Investors should expect bids in Round 1 (due Monday) to start lower than this, as bidders aim to bid just enough at first to make it into the next round. In Round 2, the bidding could become more intense and rise to the high end of our range, as we think there are several very qualified buyers.” The royalty stream from Yahoo Japan “is in perpetuity and represents 30% of Yahoo’s core advertising EBITDA (earnings before interest, taxes, depreciation and amortization) in 2016,” Peck wrote. He also said that Yahoo has more than 6,000 patents, “which could be worth more than the $1 billion to $3 billion range the company has cited.” The patents include deriving a user profile from questions and creating a system for customizing a website, according to the U.S. Patent and Trademark Office. And, Peck said, Yahoo owns more than 1 million square feet of building space and real estate that could be worth $1 billion. The company is reportedly is looking to sell a large parcel of undeveloped land near its Sunnyvale, Calif., headquarters that had been slated for possible development, signaling that it has now scrapped the building plan. Yahoo Bids Reportedly Due Monday Yahoo sent a letter to possible buyers last month, asking them to submit bids. Some buyers might be interested in all or part of Yahoo’s core Web business, while others might want Yahoo’s stakes in China e-commerce Alibaba Group ( BABA ) or Yahoo Japan. Yahoo has reportedly set an April 18 deadline for first round bids. Yahoo stock has more than doubled since the company hired Marissa Mayer, who had been a top executive at Alphabet ’s ( GOOGL ) Google, as CEO in July 2012. But she’s been unable to spark significant earnings and revenue growth, and Yahoo has struggled to build online-ad and mobile-ad revenue vs. rivals Google and Facebook ( FB ), among others. In the meantime, the company faces a proxy fight from activist investor Starboard Value, which wants to oust Yahoo’s entire board. An estimated 40 groups have expressed interest in buying all or part of the financially wilting Sunnyvale, Calif.-based Web portal. News site Re/Code said last week that documents Yahoo provided to potential bidders predict that the Web portal’s 2016 revenue will drop by close to 15% and its earnings by more than 20%. Yahoo is axing 15% of its workforce, or about 1,600 jobs. Rumored bidders for Yahoo include the Daily Mail, the British tabloid newspaper that on Monday reportedly confirmed its interest, attracted to Yahoo’s popular news and media properties. The Daily Mail is in preliminary talks with other investors to launch a bid for Yahoo, the Wall Street Journal reported Monday, confirming a previous WSJ report out Sunday. Google reportedly is considering a bid for Yahoo’s core business, as is Verizon Communications ( VZ ). In 2011, Alibaba CEO Jack Ma publicly declared his interest in acquiring Yahoo.

Synaptics Stock Jumps On Report China Group Eyeing Apple Chip Supplier

Shares in Synaptics ( SYNA ), a supplier of touchscreen driver chips for Apple ’s ( AAPL ) iPhone, jumped on reports that it’s in talks to be acquired by a state-backed Chinese investment group. Synaptics stock traded as high as around 91 on Thursday; shares were still up 8% to 88 in the afternoon on the stock market today . Synaptics has an IBD composite rating of 91 out of a possible 99. Aside from making devices for Apple — its chips control iPhone displays — San Jose-based Synaptics supplies touchscreen and biometrics technology to South Korean mobile phone makers Samsung and LG as well as Chinese companies Huawei and Lenovo. It also makes sensors that read fingerprints. According to a Bloomberg report , the state-backed Chinese investment group and Synaptics are still negotiating the sales price, which could value the company at around $110 per share. The Chinese group includes insurance companies and financial institutions, as well as a semiconductor fund backed by Beijing-based BOE Technology, said the Bloomberg report.