Wednesday, August 6, 2008

An earthquake with a magnitude 6.0 that struck the area of Southern Qinghai, China on Tuesday, has killed at least three people and injured nearly 40 others.

The United States Geological Survey (USGS) recorded the quake at 9:49 hours UTC (5:49 a.m. at the epicenter). The China Earthquake Networks Centre considers it an aftershock from the May 12 Sichuan earthquake.

A bridge on a national highway was reported to be damaged, and communications were reported to have been severed. At least 3,200 homes were severely damaged or destroyed.

The quake struck 45 kilometers (25 miles) northwest of Guangyuan, Sichuan, near the town of Yaodu. It struck in the same area of China as the one on May 12 that killed at least 69,207 people and wounded another 374,468, according to the English language edition of the People’s Online Daily.

Data released by the USGS shows that the epicenter was near the G109 highway which connects Lhasa in the south and Xining and Lanzhou in the northwest, a distance of 2,020 km (1,255 mi), according to Google Maps China.

Just over 12,000 aftershocks and small quakes have been recorded in the same area since May 12th.

Sunday, October 14, 2007

^*Delayed 45 Minutes due to heavy rain

Colombia and Brazil opened their 2010 FIFA World Cup Qualification campaign with a 0-0 draw.

Despite inexperienced squad, Colombia had most of the chances and Brazil became less of a threat as the game went on.

The match started 45 minutes late after a torrential downpour left the pitch temporarily unplayable. But the water drained away quickly.

Colombia pressed forward after for the majority of the game. However, they couldn’t take any of their chances and ended with a 0-0 scoreline.

Brazil could find themselves in trouble with an accumulation of yellow cards as 4 of their players picked up their 1^st yellow cards.

Thursday, April 7, 2011

Late last month, the American Civil Liberties Union (ACLU) and Electronic Frontier Foundation (EFF) filed objections to the United States Government’s ‘secret’ attempts to obtain Twitter account information relating to WikiLeaks. The ACLU and EFF cite First and Fourth amendment issues as overriding reasons to overturn government attempts to keep their investigation secret; and, that with Birgitta Jonsdottir being an Icelandic Parliamentarian, the issue has serious international implications.

The case, titled “In the Matter of the 2703(d) Order Relating to Twitter Accounts: Wikileaks, Rop_G, IOERROR; and BirgittaJ“, has been in the EFF’s sights since late last year when they became aware of the US government’s attempts to investigate WikiLeaks-related communications using the popular microblogging service.

The key objective of this US government investigation is to obtain data for the prosecution of Bradley Manning, alleged to have supplied classified data to WikiLeaks. In addition to Manning’s Twitter account, and that of WikiLeaks (@wikileaks), the following three accounts are subject to the order: @ioerror, @birgittaj, and @rop_g. These, respectively, belong to Jacob Apelbaum, Birgitta Jonsdottir, and Rop Gonggrijp.

Birgitta is not the only non-US citizen with their Twitter account targeted by the US Government; Gonggrijp, a Dutch ‘ex-hacker’-turned-security-expert, was one of the founders of XS4ALL – the first Internet Service Provider in the Netherlands available to the public. He has worked on a mobile phone that can encrypt conversations, and proven that electronic voting systems can readily be hacked.

In early March, a Virginia magistrate judge ruled that the government could have the sought records, and neither the targeted users, or the public, could see documents submitted to justify data being passed to the government. The data sought is as follows:

1. Personal contact information, including addresses
2. Financial data, including credit card or bank account numbers
3. Twitter account activity information, including the “date, time, length, and method of connections” plus the “source and destination Internet Protocol address(es)”
4. Direct Message (DM) information, including the email addresses and IP addresses of everyone with whom the Parties have exchanged DMs

The order demands disclosure of absolutely all such data from November 1, 2009 for the targeted accounts.

The ACLU and EFF are not only challenging this, but demanding that all submissions made by the US government to justify the Twitter disclosure are made public, plus details of any other such cases which have been processed in secret.

Bradley Manning, at the time a specialist from Maryland enlisted with the United States Army’s 2nd Brigade, 10th Mountain Division, was arrested in June last year in connection with the leaking of classified combat video to WikiLeaks.

The leaked video footage, taken from a US helicopter gunship, showed the deaths of Reuters staff Saeed Chmagh and Namir Noor-Eldeen during a U.S. assault in Baghdad, Iraq. The wire agency unsuccessfully attempted to get the footage released via a Freedom of Information Act request in 2007.

When WikiLeaks released the video footage it directly contradicted the official line taken by the U.S. Army asserting that the deaths of the two Reuters staff were “collateral damage” in an attack on Iraqi insurgents. The radio chatter associated with the AH-64 Apache video indicated the helicopter crews had mistakenly identified the journalists’ equipment as weaponry.

The US government also claims Manning is linked to CableGate; the passing of around a quarter of a million classified diplomatic cables to WikiLeaks. Manning has been in detention since July last year; in December allegations of torture were made to the United Nations High Commissioner for Human Rights regarding the conditions under which he was and is being detained.

Reports last month that he must now sleep naked and attend role call at the U.S. Marine facility in Quantico in the same state, raised further concern over his detention conditions. Philip J. Crowley, at-the-time a State Department spokesman, remarked on this whilst speaking at Massachusetts Institute of Technology; describing the current treatment of Manning as “ridiculous and counterproductive and stupid”, Crowley was, as a consequence, put in the position of having to tender his resignation to Secretary of State Hillary Clinton.

Despite his native Australia finding, in December last year, that Assange’s WikiLeaks had not committed any criminal offences in their jurisdiction, the U.S. government has continued to make ongoing operations very difficult for the whistleblower website.

The result of the Australian Federal Police investigation left the country’s Prime Minister, Julia Gillard, having to retract a statement that WikiLeaks had acted “illegally”; instead, she characterised the site’s actions as “grossly irresponsible”.

Even with Australia finding no illegal activity on the part of WikiLeaks, and with founder Julian Assange facing extradition to Sweden, U.S. pressure sought to hobble WikiLeaks financially.

Based on a State Department letter, online payments site PayPal suspended WikiLeaks account in December. Their action was swiftly followed by Visa Europe and Mastercard ceasing to handle payments for WikiLeaks.

The online processing company, Datacell, threatened the two credit card giants with legal action over this. However, avenues of funding for the site were further curtailed when both Amazon.com and Swiss bank PostFinance joined the financial boycott of WikiLeaks.

Assange continues, to this day, to argue that his extradition to Sweden for questioning on alleged sexual offences is being orchestrated by the U.S. in an effort to discredit him, and thus WikiLeaks.

Wikinews consulted an IT and cryptography expert from the Belgian university which developed the current Advanced Encryption Standard; explaining modern communications, he stated: “Cryptography has developed to such a level that intercepting communications is no longer cost effective. That is, if any user uses the correct default settings, and makes sure that he/she is really connecting to Twitter it is highly unlikely that even the NSA can break the cryptography for a protocol such as SSL/TLS (used for https).”

Qualifying this, he commented that “the vulnerable parts of the communication are the end points.” To make his point, he cited the following quote from Gene Spafford: “Using encryption on the Internet is the equivalent of arranging an armored car to deliver credit card information from someone living in a cardboard box to someone living on a park bench.“

Continuing, the Katholieke Universiteit Leuven (KUL) expert explained:

“In the first place, the weak point is Twitter itself; the US government can go and ask for the data; companies such as Twitter and Google will typically store quite some information on their users, including IP addresses (it is known that Google deletes the last byte of the IP address after a few weeks, but it is not too hard for a motivated opponent to find out what this byte was).“

“In the second place, this is the computer of the user: by exploiting system weaknesses (with viruses, Trojan horses or backdoors in the operating system) a highly motivated opponent can enter your machine and record your keystrokes plus everything that is happening (e.g. the FBI is known to do this with the so-called Magic Lantern software). Such software is also commercially available, e.g. for a company to monitor its employees.“

“It would also be possible for a higly motivated opponent to play “man-in-the-middle”; that means that instead of having a secure connection to Twitter.com, you have a secure connection to the attacker’s server, who impersonates Twitter’s and then relays your information to Twitter. This requires tricks such as spoofing DNS (this is getting harder with DNSsec), or misleading the user (e.g. the user clicks on a link and connects to tw!tter.com or Twitter.c0m, which look very similar in a URL window as Twitter.com). It is clear that the US government is capable of using these kind of tricks; e.g., a company has been linked to the US government that was recognized as legitimate signer in the major browsers, so it would not be too large for them to sign a legitimate certificate for such a spoofing webserver; this means that the probability that a user would detect a problem would be very low.“

“As for traffic analysis (finding out who you are talking to rather than finding out what you are telling to whom), NSA and GCHQ are known to have access to lots of traffic (part of this is obtained via the UK-USA agreement). Even if one uses strong encryption, it is feasible for them to log the IP addresses and email addresses of all the parties you are connecting to. If necessary, they can even make routers re-route your traffic to their servers. In addition, the European Data Retention directive forces all operators to store such traffic data.“

“Whether other companies would have complied with such requests: this is very hard to tell. I believe however that it is very plausible that companies such as Google, Skype or Facebook would comply with such requests if they came from a government.“

“In summary: unless you go through great lengths to log through to several computers in multiple countries, you work in a clean virtual machine, you use private browser settings (don’t accept cookies, no plugins for Firefox, etc.) and use tools such as Tor, it is rather easy for any service provider to identify you.“

“Finally: I prefer not to be quoted on any sentences in which I make statements on the capabilities or actions of any particular government.“

Wikinews also consulted French IT security researcher Stevens Le Blond on the issues surrounding the case, and the state-of-the-art in monitoring, and analysing, communications online. Le Blond, currently presenting a research paper on attacks on Tor to USENIX audiences in North America, responded via email:

Were the US Government to obtain the sought data, it would seem reasonable the NSA would handle further investigation. How would you expect them to exploit the data and expand on what they receive from Twitter?

• Le Blond: My understanding is that the DOJ is requesting the following information: 1) Connection records and session times 2) IP addresses 3) e-mail addresses 4) banking info

By requesting 1) and 2) for Birgitta and other people involved with WikiLeaks (WL) since 2009, one could derive 2 main [pieces of] information.

First, he could tell the mobility of these people. Recent research in networking shows that you can map an IP address into a geographic location with a median error of 600 meters. So by looking at changes of IP addresses in time for a Twitter user, one could tell (or at least speculate about) where that person has been.

Second, by correlating locations of different people involved with WL in time, one could possibly derive their interactions and maybe even their level of involvement with WL. Whether it is possible to derive this information from 1) and 2) depends on how this people use Twitter. For example, do they log on Twitter often enough, long enough, and from enough places?

My research indicates that this is the case for other Internet services but I cannot tell whether it is the case for Twitter.

Note that even though IP logging, as done by Twitter, is similar to the logging done by GSM [mobile phone] operators, the major difference seems to be that Twitter is subject to US regulation, no matter the citizenship of its users. I find this rather disturbing.

Using 3), one could search for Birgitta on other Internet services, such as social networks, to find more information on her (e.g., hidden accounts). Recent research on privacy shows that people tend to use the same e-mail address to register an account on different social networks (even when they don’t want these accounts to be linked together). Obviously, one could then issue subpoenas for these accounts as well.

I do not have the expertise to comment on what could be done with 4).

((WN)) As I believe Jonsdottir to be involved in the Icelandic Modern Media Initiative (IMMI), what are the wider implications beyond the “WikiLeaks witchhunt”?

• Le Blond: Personal data can be used to discredit, especially if the data is not public.

Having been alerted to the ongoing case through a joint press release by the ACLU and EFF, Wikinews sought clarification on the primary issues which the two non-profits saw as particularly important in challenging the U.S. Government over the ‘secret’ court orders. Rebecca Jeschke, Media Relations Director for the EFF, explained in more detail the points crucial to them, responding to a few questions from Wikinews on the case:

((WN)) As a worse-case, what precedents would be considered if this went to the Supreme Court?

• Rebecca Jeschke: It’s extremely hard to know at this stage if this would go to the Supreme Court, and if it did, what would be at issue. However, some of the interesting questions about this case center on the rights of people around the world when they use US Internet services. This case questions the limits of US law enforcement, which may turn out to be very different from the limits in other countries.

((WN)) Since this is clearly a politicised attack on free speech with most chilling potential repercussions for the press, whistleblowers, and by-and-large anyone the relevant U.S. Government departments objects to the actions of, what action do you believe should be taken to protect free speech rights?

• Jeschke: We believe that, except in very rare circumstances, the government should not be permitted to obtain information about individuals’ private Internet communications in secret. We also believe that Internet companies should, whenever possible, take steps to ensure their customers are notified about requests for information and have the opportunity to respond.

((WN)) Twitter via the web, in my experience, tends to use https:// connections. Are you aware of any possibility of the government cracking such connections? (I’m not up to date on the crypto arms race).

• Jeschke: You don’t need to crack https, per se, to compromise its security. See this piece about fraudulent https certificates:

Iranian hackers obtain fraudulent https — EFF website.

((WN)) And, do you believe that far, far more websites should – by default – employ https:// connections to protect people’s privacy?

• Jeschke: We absolutely think that more websites should employ https! Here is a guide for site operators: (See external links, Ed.)

Finally, Wikinews approached the Icelandic politician, and WikiLeaks supporter, who has made this specific case a landmark in how the U.S. Government handles dealings with – supposedly – friendly governments and their elected representatives. A number of questions were posed, seeking the Icelandic Parliamentarian’s views:

((WN)) How did you feel when you were notified the US Government wanted your Twitter account, and message, details? Were you shocked?

• Birgitta Jonsdottir: I felt angry but not shocked. I was expecting something like this to happen because of my involvement with WikiLeaks. My first reaction was to tweet about it.

((WN)) What do you believe is their reasoning in selecting you as a ‘target’?

• Jonsdottir: It is quite clear to me that USA authorities are after Julian Assange and will use any means possible to get even with him. I think I am simply a pawn in a much larger context. I did of course both act as a spokesperson for WikiLeaks in relation to the Apache video and briefly for WikiLeaks, and I put my name to the video as a co-producer. I have not participated in any illegal activity and thus being a target doesn’t make me lose any sleep.

((WN)) Are you concerned that, as a Member of Parliament involved in the Icelandic Modern Media Initiative (IMMI), the US attempt to obtain your Twitter data is interfering with planned Icelandic government policy?

• Jonsdottir: No

((WN)) In an earlier New York Times (NYT) article, you’re indicating there is nothing they can obtain about you that bothers you; but, how do you react to them wanting to know everyone you talk to?

• Jonsdottir: It bothers me and according to top computer scientists the government should be required to obtain a search warrant to get our IP addresses from Twitter. I am, though, happy I am among the people DOJ is casting their nets around because of my parliamentary immunity; I have a greater protection then many other users and can use that immunity to raise the issue of lack of rights for those that use social media.

((WN)) The same NYT article describes you as a WikiLeaks supporter; is this still the case? What attracts you to their ‘radical transparency’?

• Jonsdottir: I support the concept of WikiLeaks. While we don’t have a culture of protection for sources and whistleblowers we need sites like WikiLeaks. Plus, I think it is important to give WikiLeaks credit for raising awareness about in how bad shape freedom of information and expression is in our world and it is eroding at an alarming rate because of the fact that legal firms for corporations and corrupt politicians have understood the borderless nature of the legalities of the information flow online – we who feel it is important that people have access to information that should remain in the public domain need to step up our fight for those rights. WikiLeaks has played an important role in that context.I don’t support radical transparency – I understand that some things need to remain secret. It is the process of making things secret that needs to be both more transparent and in better consensus with nations.

((WN)) How do you think the Icelandic government would have reacted if it were tens of thousands of their diplomatic communications being leaked?

• Jonsdottir: I am not sure – A lot of our dirty laundry has been aired via the USA cables – our diplomatic communications with USA were leaked in those cables, so far they have not stirred much debate nor shock. It is unlikely for tens of thousands of cables to leak from Iceland since we dont have the same influence or size as the USA, nor do we have a military.

((WN)) Your ambassador in the US has spoken to the Obama administration. Can you discuss any feedback from that? Do you have your party’s, and government’s, backing in challenging the ordered Twitter data release?

• Jonsdottir: I have not had any feedback from that meeting, I did however receive a message from the DOJ via the USA ambassador in Iceland. The message stated three things: 1. I am free to travel to the USA. 2. If I would do so, I would not be a subject of involuntary interrogation. 3. I am not under criminal investigation. If this is indeed the reality I wonder why they are insisting on getting my personal details from Twitter. I want to stress that I understand the reasoning of trying to get to Assange through me, but I find it unacceptable since there is no foundation for criminal investigation against him. If WikiLeaks goes down, all the other media partners should go down at the same time. They all served similar roles. The way I see it is that WikiLeaks acted as the senior editor of material leaked to them. They could not by any means be considered a source. The source is the person that leaks the material to WikiLeaks. I am not sure if the media in our world understands how much is at stake for already shaky industry if WikiLeaks will carry on carrying the brunt of the attacks. I think it would be powerful if all the medias that have had access to WikiLeaks material would band together for their defence.

((WN)) Wikinews consulted a Belgian IT security expert who said it was most likely companies such as Facebook, Microsoft, and Google, would have complied with similar court orders *without advising the ‘targets*’. Does that disturb you?

• Jonsdottir: This does disturb me for various reasons. The most obvious is that my emails are hosted at google/gmail and my search profile. I dont have anything to hide but it is important to note that many of the people that interact with me as a MP via both facebook and my various email accounts don’t always realize that there is no protection for them if they do so via those channels. I often get sensitive personal letters sent to me at facebook and gmail. In general most people are not aware of how little rights they have as users of social media. It is those of uttermost importance that those sites will create the legal disclaimers and agreements that state the most obvious rights we lose when we sign up to their services.

((WN)) Has there been any backlash within Iceland against US-based internet services in light of this? Do you expect such, or any increase in anti-American sentiments?

• Jonsdottir: No, none what so ever. I dont think there is much anti-American sentiments in Iceland and I dont think this case will increase it. However I think it is important for everyone who does not live in the USA and uses social services to note that according to the ruling in my case, they dont have any protection of the 1st and 4th amendment, that only apply to USA citizens. Perhaps the legalities in relation to the borderless reality we live in online need to be upgraded in order for people to feel safe with using social media if it is hosted in the USA. Market tends to bend to simple rules.

((WN)) Does this make you more, or less, determined to see the IMMI succeed?

• Jonsdottir: More. People have to realize that if we dont have freedom of information online we won’t have it offline. We have to wake up to the fact that our rights to access information that should be in the public domain is eroding while at the same time our rights as citizens online have now been undermined and we are only seen as consumers with consumers rights and in some cases our rights are less than of a product. This development needs to change and change fast before it is too late.

The U.S. Government continues to have issues internationally as a result of material passed to WikiLeaks, and subsequently published.

Within the past week, Ecuador has effectively declared the U.S. ambassador Heather Hodges persona-non-grata over corruption allegations brought to light in leaked cables. Asking the veteran diplomat to leave “as soon as possible”, the country may become the third in South America with no ambassadorial presence. Both Venezuela and Bolivia have no resident U.S. ambassador due to the two left-wing administrations believing the ejected diplomats were working with the opposition.

The U.S. State Department has cautioned Ecuador that a failure to speedily normalise diplomatic relations may jeapordise ongoing trade talks.

The United Kingdom is expected to press the Obama administration over the continuing detention of 23-year-old Manning, who also holds UK citizenship. British lawmakers are to discuss his ongoing detention conditions before again approaching the U.S. with their concerns that his solitary confinement, and treatment therein, is not acceptable.

The 22 charges brought against Manning are currently on hold whilst his fitness to stand trial is assessed.

Tuesday, April 11, 2006

Rapper Proof, born Deshaun Holton, was shot and killed on April 11, 2006, at approximately 4:30 a.m. EDT (0830 UTC) at the Triple C Club on 8 Mile Road in Detroit.

Proof was known for his work together with his good friend Eminem and his group D12.

Another man was shot shortly afterward, and was taken to St. John Hospital.

On April 12, 2006, Mario Etheridge, 28, of Detroit turned himself in to the police, having been named by several witnesses. Mario was allegedly a bouncer at the club. “Police said he is a cousin of Keith Bender Jr., the bouncer who was allegedly shot by Proof during the fight.” The fight that started inside the club was reported to be over a pool game. The argument was taken outside where, “A shot was fired in the air, Proof allegedly pistol-whipped Bender, knocked him to the ground and then shot him. Etheridge then allegedly opened fire on the rapper, striking him four times in the head and chest. One week later, Keith Bender Jr. died of his injuries on April 18, 2006.

Official Police reports are yet to determine the series of events which left Proof and Keith Bender, 35, deceased. Bender died 8 days later on April 18, 2006. Following Proof’s death, rapper Snoop Dogg called on fellow musicians to unite, describing the incident as “a loss to the hip-hop community”.

The tributes were led by fellow rapper The Game who was first to comment on the tragedy. The Game remembers how he and Proof became ‘real cool and real homies’ and that ‘Proof will always be remembered and I as well as the Black Wall Street family will keep his memory & his family in our prayers 1’. The second to comment on Proof was long time friend Royce da 5’9″ who was deeply saddened by the death of his good friend. Royce had been a friend of Proof for over 9 years and the two had recently reconciled. Royce echoed the music community, saying ‘He is such loss for the hip hop community…I hope that he will be remembered for the talented artist and great person that he was, and not the tragedy that he fell victim to’.

Eminem was the third to discuss Proof’s death days after his passing, clearly affected by the tragedy. Eminem described Proof as “funny, smart and charming” and said that he would be sorely missed and described him as “the heart and ambassador of Detroit hip-hop”. Eminem said that Proof was, and always will be, his best friend.

Tributes poured out of the UK with Vm2k6 leading the remembrance. Proof’s demise which was mainly overlooked by the UK media was documented and reflected by VM2k6 in which he calls Proof ‘fresh, talented and meaningful, a rarity in Hip Hop today’. He continues saying that Proof had ‘the greatest ability to transfer his experiences and most of all feelings into words’ and finished with the heartfelt line- ‘I guess its only in Death you really begin to shine’.

Several fan videos were released in tribute to Proof, including the hit “Good Die Young” music video which used D12’s 2004 single, which is currently one of the highest discussed and viewed videos on YouTube.com. Many other “slide show” flicks were created, which are appearing all over the internet. The “Good Die Young” clip was produced by RYKE Video Productions.

Proof stated how he wanted to be remembered in an interview with Sohh.com shortly after his album release; ‘I want people to say that I was a true artist’, ‘ That I did it best and stayed true to Hip Hop roots’ and ‘I’d want people to understand I did it for the love not for the charts.’

Tuesday, June 9, 2009

Indonesian state-owned flag carrier Garuda Indonesia has been expanding, with the airline set to add nine new jets to its fleet and double its flights between Jakarta and Kuala Lumpur. Garuda is also considering a bid for defunct rival Linus Airways.

Garuda is expecting the imminent arrival of four new Airbus jets and five new Boeings. The Airbuses, A330-200s, are earmarked to fly international routes to Seoul and Shanghai starting in July. All four have Internet and telephone access for passengers. The Boeings, B737-800 Next Generation aircraft, are due to be in service by the 2010.

Also planned before the year’s end is the increase in flights on the Jakarta-Kuala Lumpur route from one to two per week. “We saw our current load factor[s] have reached 75 percent and even more during school breaks like June and July,” Said the company’s Vice President for Network Oversight, Risnandi. “This is very promising.”

Garuda is now reported to be considering a bid for Linus, who stopped operating on April 27 and have recently been stripped of the rights to fly their former routes as legally required for airlines that do not operate for more than thrity days. Linus still holds some documents of worth to Garuda for transfer to their subisidiary Citilink.

“I heard that Garuda intends to buy Linus who already hold an aviation business license (SIUP) and an air operators certificate (AOC) for the scheduled air services,” said Indonesian Director General of Civil aviation Herry Bakti S. Gumay to reporters for Bisnis Indonesia. He said that his office was in favour of a takeover by Garuda because foreign bids are limited to holding a maximum total of 49% of the shares in Linus.

Linus Airways’ President Directer Indra said that “we are flexible to acquisition, depending on the investor. If someone wants to buy 100% of the shares we can release our shares, but if someone wants take only a majority shareholding with us as a partner – we are also open.” Indra commented that he has had an informal meeting with Garuda CEO Emirsyah Satar but says that they never discussed acquisition by Garuda and that Linus is already in talks with another ‘strategic investor’ with a view to resuming operations.

Two airlines, Riau Airlines and Kartika Airlines, have both launched bids for the ten routes formally operated by Linus, which include four from Jakarta and three from Batam.

Garuda Indonesia’s Financial Direcotr Eddy Purwanto has anounced that US$650 million worth of loans from Bank Mandiri have been restructured. Garuda, who has apointed Rothschild’s as their international financial advisors, will now pay US$450 million by 2015.

Friday, August 18, 2006

Web.com, a web-hosting and online services company, has released its second quarter financial results and associated statements – and it’s clear that the company has experienced both the ups and downs of executing on its goals.

On the upside, the company achieved an industry-first achievement of securing a non-exclusive license agreement with Hostopia.com Inc. last month. The agreement granted Hostopia rights to two of Web.com’s patents over five years on a non-transferable basis. The specific licensed patents were U.S. Patent numbers 5,680,152 and 6,789,103 and broadly cover methods for website building and web hosting control panels. Importantly for revenues, the license agreement states that Hostopia will pay Web.com a royalty equal to 10% of their gross U.S. retail revenues for five years.

On the downside, the company failed to deliver on the expected and announced acquisition of Houston-based WebSource Media – a business offering “easy and affordable built-to-order websites”. The announced acquisiton was to have added about $9 million in annual revenue to Web.com.

However, according to published reports from Web.com, the company filed to rescind its acquisition of WebSource media just about one month after the announcement. This action was taken after the Federal Trade Commission filed a sealed action in the United States District Court for the Southern District of Texas against WebSource Media, L.L.C. and its members – alleging unfair and deceptive acts and business practices prior to the acquisition.

In a press release issued by Web.com, President and CEO Jeff Stibel discussed the effects of the rescinded acquisition on the second quarter resutls, “Web.com continued to drive subscriber growth across its core website and web services plans by refining our sales and marketing efforts and working closely with strategic distribution partners. While we had unfortunate news about an acquisition we made during the quarter, the company has moved on and is working on further solidifying its position as a leader in the industry.”

On the financial side of the report, Web.com reported that total revenues for the quarter were $12.1 million, down from $12.3 million in the first quarter of 2006. The second quarter marked the last quarter of recognizing Verizon revenues (a deal that was initially cancelled in December 2004 and terminated in the second quarter of 2006).

On the organic customer acquisition side of the equation, the company reported that net subscribers totaled approximately 148,000 for the quarter, down from approximately 149,000 in the first quarter of 2006. The reduction in the second quarter as compared to the first quarter includes the loss of approximately 3,200 Verizon subscribers. Excluding the loss of Verizon subscribers, the company added approximately 1,600 subscribers in the quarter.

Friday, May 15, 2009

American automobile manufacturer General Motors (GM) announced plans Friday to shut down about 1,100 of its dealerships, in an effort to evade bankruptcy and lower its expenditures.

GM’s move comes a day after Chrysler, another U.S. car maker, released a list of 789 dealerships that it was closing. Unlike Chrylser, GM will not publicly announce the dealerships that it intends to shut down. Instead, dealerships whose franchises won’t be renewed after October of next year will receive a private letter telling them of the decision.

At the moment, GM has 6,246 dealers in the U.S. It intends to reduce that number to 3,605 by the end of 2010. GM said the dealerships that were to be closed are “underperforming and very small sales volume U.S. dealers.”

“They’re dealerships that are in most cases hurting, losing money, and in danger of going out of business anyway,” said GM’s sales, service, and marketing vice president in a telephone conference. “It’s a move that people could argue should have been taken years ago but this leadership team had no choice but to do it today.”

The dealers that are to be closed represent 18% of the firm’s dealership network, but only 7% of GM’s 2008 revenue.

Thursday, October 1, 2009

A crime scene police detective and a forensic biologist testified on Tuesday about bloody evidence entered into the court record, in the ongoing criminal trial against New York State Senator Hiram Monserrate. Monserrate faces charges of felony assault in an alleged attack on his girlfriend Karla Giraldo.

The prosecution has asserted that when Monserrate discovered that his girlfriend had the business card of another man, he chose to strike out at her. Monserrate has entered a plea of not guilty to charges he sliced his girlfriend’s face with broken glass during a conflict at their apartment on December 19, 2008. The defense team denied that the injury to the woman by Monserrate was intentional, instead claiming that the incident was “an accident” and the result of Monserrate tripping while bringing Giraldo a glass of water.

An emergency physician that had treated Giraldo stated in court last Thursday that Monserrate’s girlfriend asserted to her that her injuries were not the result of an accident. Though the defense has argued that Giraldo, who is from Ecuador, may have been difficult to understand – the physician stated she conversed with Monserrate’s girlfriend in both Spanish and in English.

The police detective that first inspected the crime scene testified Tuesday to the court about his recollection of discovering broken glass at the apartment, along with blood, towels covered in blood, and a ripped women’s t-shirt. Prosecutors entered into evidence a ripped sleeveless undershirt that police had found in the garbage outside Monserrate’s apartment on the night of the alleged attack. Bloody towels were was also found at the crime scene in the bathroom, and bloody smudges were discovered on a light switch in the bedroom.

According to forensic biologist Ewilina Badja, the majority of the blood found at the scene originated from one woman. Prosecutors assert that this woman is Giraldo, who was treated for injuries surrounding her left eye that took approximately 40 stitches to remedy. Badja identified blood on a male green shirt found in the bathroom sink as that of Monserrate.

Joseph Tacopina, defense counsel for Monserrate, argued that the police detective’s testimony does not prove his client attacked Giraldo. NY1 reported that Tacopina stated: “There’s not a piece of evidence that supports there was a scuffle where someone tore someone’s clothing, so it is nothing more than rank speculation. It was not a blood drenched t-shirt. When it was torn who knows? I have in my closet right now torn T-shirts that I wear to bed every night.”

On cross-examination, Tacopina queried New York City Police Department crime scene analyst Detective David Hernandez regarding the blood discovered on the bedroom light switch. According to Hernandez, police did not evaluate the blood on the light switch; Hernandez also stated that the lights in the apartment were found turned on. Tacopina argued that this bolsters the story provided by defense – that his client stumbled in a dark room while attempted to bring water to his girlfriend, and placed his bloody hand on the light switch after accidentally breaking the drinking glass on Giraldo’s face.

Queens Supreme Court Justice William Erlbaum will judge the case without a jury, as Monserrate waived his right for a trial before his peers. The group National Organization for Women has requested that the judge rule Monserrate should be given “the maximum sentence allowable by law”. If convicted, Democrat Sen. Monserrate could serve seven years in prison and lose his New York State Senate seat.

Monserrate is a former city councilman. He became a member of the New York State Senate weeks after the alleged conflict with Giraldo, and was made chair of the committee overseeing consumer affairs. Along with Democrat Pedro Espada Jr., Monserrate started a shift in control of the Senate by aligning with the Republican Party.