Feds: MegaUpload was not entrapped

Kim DotCom (at right) and his company managers shortly after being arrested in January 2012 for alleged copyright violations and fraud.

(Credit:
Screenshot by CNET)

Entrapment is one of MegaUpload's claims in its legal battle against the U.S. government. The feds are now saying this claim is "baseless."

"Megaupload's allegations are baseless, as even a cursory review of Megaupload's pleading and the search warrant materials at issue disproves the allegation that the government misled the court as part of a conspiracy to entrap Megaupload," the government wrote in a Friday filing (PDF).

MegaUpload, which was founded by Kim DotCom, is the highest-profile service to be accused of criminal copyright violations by the U.S. government -- and the case is being watched closely around the globe.

DotCom's saga has played out over the past year after he was arrested on allegations of criminal copyright violation, conspiracy, money laundering, and wire fraud. U.S. federal officials accused DotCom of pocketing millions of dollars in illegal profits from criminal file sharing and downloading that has reportedly cost the film industry more than $600 million in damages.

One of the reasons DotCom claims he was entrapped by the U.S. government is because he complied with a federal search warrant targeting five file-sharing services using MegaUpload's infrastructure in 2010, according to Wired. These file-sharing services, including Movies-Links.tv, Planetmoviez.com, and Ninjavideo.net, were accused of being movie-pirating sites.

MegaUpload reportedly gave the authorities a database of 39 pirated movies, which allowed the feds to raid the sites' operators and seize their assets. Even though DotCom cooperated with the government, the feds then used this same database as evidence in its case against MegaUpload. Apparently, DotCom never deleted the allegedly pirated movies from MegaUpload's servers, which the government said proved he was aware of pirated material on the platform.

In a January 2 court filing (PDF), DotCom's lawyer Ira Rothken wrote that "MegaUpload had every reason to retain those files in good faith because the government had sought and obtained MegaUpload's cooperation in retrieving those files and warned that alerting users to the existence of the warrant and the government's interest in the files could compromise the investigation."

However, the feds filing from Friday said this claim is meritless and that the government never told DotCom to keep the files. The feds also said that more than 2,000 users uploaded the 39 pirated movies because the material wasn't deleted from MegaUpload's servers.

Currently, DotCom and his company managers are free on bail in New Zealand while waiting for an extradition hearing. The hearing will determine whether they will be extradited to the U.S. to stand trial. The earliest the hearing will be scheduled is July 2013.

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"Fantastic" New Flying Frog Found—Has Flappy Forearms

Scientists have stumbled across a new species of flying frog—on the ground.

While hiking a lowland forest in 2009, not far from Ho Chi Minh City (map), Vietnam, "we came across a huge green frog, sitting on a log," said Jodi Rowley, an amphibian biologist at the Australian Museum in Sydney and lead author of a new study on the frog.

Rowley later discovered that the 3.5-inch-long (9-centimeter-long) creature is a relatively large new type of flying frog, a group known for its ability to "parachute" from tree to tree thanks to special aerodynamic adaptations, such as webbed feet, Rowley said. (Also see "'Vampire Flying Frog' Found; Tadpoles Have Black Fangs.")

Rowley dubbed the new species Helen's flying frog, in honor of her mother, Helen Rowley, "who has steadfastly supported her only child trekking through the forests of Southeast Asia in search of frogs," according to a statement.

The newfound species—there are 80 types of flying frogs—is also "one of the most flying frogs of the flying frogs," Rowley said, "in that it's got huge hands and feet that are webbed all the way to the toepad."

"Females even have flappy skin on their forearms to glide," added Rowley, who has received funding from the National Geographic Committee on Research and Exploration. (National Geographic News is part of the National Geographic Society.) "The females are larger and heavier than males, so the little extra flaps probably don't make much of a difference," she said.

As Rowley wrote on her blog, "At first it may seem strange that such a fantastic and obvious frog could escape discovery until now—less than 100 kilometers [60 miles] from an urban centre with over nine million people."

Yet these tree dwellers can easily escape notice—they spend most of their time in the canopy, she said.

Flying Frog On the Edge

Even so, Helen's flying frog won't be able to hide from development near Ho Chi Minh City, which may encroach on its existing habitats.

So far, only five individuals have been found in two patches of lowland forest hemmed in by rice paddies in southern Vietnam, Rowley said. The animals can probably tolerate a little bit of disturbance as long as they have large trees and temporary pools, she added.

But lowland forests are among the most threatened habitats in the world, mostly because they're so accessible to people, and thus chosen for logging and development. (Get the facts on deforestation.)

"While Helen's flying frog has only just been discovered by biologists," Rowley wrote, "unfortunately this species, like many others, is under great threat from ongoing habitat loss and degradation."

The new flying frog study was published in December 2012 in the Journal of Herpetology.

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Armstrong Admits Doping in Tour, Sources Say

Lance Armstrong today admitted to Oprah Winfrey that he used performance enhancing drugs to win the Tour de France, sources told ABC News.

A goverment source tells ABC News that Armstrong is now talking with authorities about paying back some of the US Postal Service money from sponsoring his team. He is also talking to authorities about confessing and naming names, giving up others involved in illegal doping. This could result in a reduction of his lifetime ban, according to the source, if Armstrong provides substantial and meaningful information.

Armstrong made the admission in what sources describe as an emotional interview with Winfrey to air on "Oprah's Next Chapter" on Jan. 17.

The 90-minute interview at his home in Austin, Texas, was Armstrong's first since officials stripped him of his world cycling titles in response to doping allegations.

Word of Armstrong's admission comes after a Livestrong official said that Armstrong apologized today to the foundation's staff ahead of his interview.

The disgraced cyclist gathered with about 100 Livestrong Foundation staffers at their Austin headquarters for a meeting that included social workers who deal directly with patients as part of the group's mission to support cancer victims.

Armstrong's "sincere and heartfelt apology" generated lots of tears, spokeswoman Katherine McLane said, adding that he "took responsibility" for the trouble he has caused the foundation.

Riccardo S. Savi/Getty Images|Ray Tamarra/Getty Images

Lance Armstrong Stripped of Tour de France Titles Watch Video

Lance Armstrong Doping Charges: Secret Tapes Watch Video

McLane declined to say whether Armstrong's comments included an admission of doping, just that the cyclist wanted the staff to hear from him in person rather than rely on second-hand accounts.

Armstrong then took questions from the staff.

Armstrong's story has never changed. In front of cameras, microphones, fans, sponsors, cancer survivors -- even under oath -- Lance Armstrong hasn't just denied ever using performance enhancing drugs, he has done so in an indignant, even threatening way.

Armstrong, 41, was stripped of his seven Tour de France titles and banned from the sport for life by the U.S. Anti-Doping Agency in October 2012, after allegations that he benefited from years of systematic doping, using banned substances and receiving illicit blood transfusions.

"Lance Armstrong has no place in cycling and he deserves to be forgotten in cycling," Pat McQuaid, the president of the International Cycling Union, said at a news conference in Switzerland announcing the decision. "This is a landmark day for cycling."

The U.S. Anti-Doping Agency issued a 200-page report Oct. 10 after a wide-scale investigation into Armstrong's alleged use of performance-enhancing substances.

Armstrong won the Tour de France from 1999 to 2005.

According to a source, speaking to ABC News, a representative of Armstrong's once offered to make a donation estimated around $250,000 to the agency, as "60 Minutes Sports" on Showtime first reported.

Lance Armstrong's attorney Tim Herman denied it. "No truth to that story," Herman said. "First Lance heard of it was today. He never made any such contribution or suggestion."

Armstrong, who himself recovered from testicular cancer, created the Lance Armstrong Foundation (now known as the LIVESTRONG Foundation) to help people with cancer cope, as well as foster a community for cancer awareness. Armstrong resigned late last year as chairman of the LIVESTRONG Foundation, which raised millions of dollars in the fight against cancer.

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Benefits of emissions cuts kick in only next century

Are we the altruistic generation? Do we care what happens to our grandchildren, and to their children? Or are we with Groucho Marx when he said: "Why should I care about future generations? What have they ever done for me?"

A new study of climate change lays out in detail why this matters. According to its author, Nigel Arnell of the University of Reading, UK, the unpalatable truth is that even rapid action now to curb greenhouse gas emissions would have only a "negligible effect by 2030, and the benefits in 2050 would remain small". The big dividend – cooler temperatures, fewer floods and droughts and better crop yields, compared to carrying on as we are – would only become clear by about 2100.

Arnell and colleagues used climate models to look at how different policies to curb greenhouse gases would affect temperature, sea levels, crop yields and the incidence of droughts and floods. Two findings emerged. The first is that lags in the climate system mean the real benefits of cutting emissions will only show up late this century. This, says Arnell, underlines that there is a lot of global warming "in the pipeline" that cannot now be prevented.

But the study also shows that tackling climate change early brings big rewards. Arnell compared a policy of letting emissions peak in 2016 and then cutting them by 2 per cent a year with one that delays the peak till 2030 and then cuts by 5 per cent a year. He found that both restricted warming in 2100 to about 2 °C, but the climate disruption over the next century would be much less with the early start. Coastal flooding from sea-level rise in particular would be much reduced. This, he told New Scientist, contradicts a common view that drastic action to curb warming should wait for renewable energy to become cheaper.

"Arnell has shown just how crucial the emissions pathway we take today will be for our children and grandchildren," said Dave Reay, geoscientist at the University of Edinburgh, UK. Bill McGuire of University College London agrees: "It shows taking effective action now is far better than putting it off until later."

It's a shame, then, that even if all goes well with UN negotiations, no global deal to bring down emissions will come into force until at least 2020. Our great-great-grandchildren will be cursing our delay.

Journal reference: Nature Climate Change, DOI: 10.1038/NCLIMATE1793

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S'pore property shares tumble after cooling measures

SINGAPORE: Shares of major property developers in Singapore were battered Monday after the government introduced new measures to cool the real estate market at the weekend.

By midday, shares of top developers listed on the Singapore Exchange had sunk more than four per cent as investors spooked by the measures dumped the stocks.

CapitaLand shed 4.11 per cent to S$3.73, City Developments fell 6.11 per cent to S$11.83 and Keppel Land slumped 6.31 per cent to S$4.01.

"We're seeing a knee-jerk reaction to the cooling measures," said Jason Hughes, head of premium client management for IG Markets Singapore.

The new measures, which came into force Saturday, included sharply higher duties on property purchases by foreigners.

Singaporeans' minimum cash downpayments for second or subsequent homes were raised from 10 to 25 per cent of a property's value.

But Hughes predicted property stocks would be able to ride out the storm thanks to their overseas portfolios.

"We do have to consider that a number of these guys are regionally focused," he said, adding that the effects would have been more severe if they were "purely local developers."

HSBC Global Research said in a report that Singapore may institute more cooling measures because property demand is expected to remain robust.

"Low interest rates and an expected economic recovery this year will support demand. Further steps can, therefore, not be ruled out," the report stated.

The new property measures were imposed after home prices continued to rise even as the city-state suffered an economic slowdown.

Singapore narrowly avoided a technical recession in the last quarter of 2012.

The economy grew just 1.2 per cent in 2012, from 4.9 per cent in 2011, with 2013 expansion forecast at 1.0-3.0 per cent.

- AFP/ck

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Anonymous hacks MIT after Aaron Swartz's suicide

Anonymous' message on an MIT page (click for larger image).

(Credit:
Screenshot by Steven Musil/CNET)

Just hours after the Massachusetts Institute of Technology pledged an investigation into its role in events leading up to the suicide of Aaron Swartz, online hacktivist group Anonymous defaced the school's Web site.

Swartz, a Reddit cofounder who championed open access to documents on the Internet, committed suicide on Friday. The 26-year-old was arrested in July 2011 and accused of stealing 4 million documents from MIT and Jstor, an archive of scientific journals and academic papers. He faced $4 million in fines and more than 50 years in prison if convicted.

After MIT President L. Rafael Reif issued a statement this afternoon promising a "thorough analysis of MIT's involvement from the time that we first perceived unusual activity on our network in fall 2010 up to the present," Anonymous targeted at least two MIT Web sites. Lacking the loose-knit group's usual feisty language, the message posted on the Web site was a call for reform in the memory of the late Internet activist.

After calling the prosecution of Swartz "a grotesque miscarriage of justice" and "a distorted and perverse shadow of the justice that Aaron died fighting for," Anonymous outlined its list of goals under a section reservedly labeled "Our wishes:"

• We call for this tragedy to be a basis for reform of computer crime laws, and the overzealous prosecutors who use them.


• We call for this tragedy to be a basis for reform of copyright and intellectual property law, returning it to the proper principles of common good to the many, rather than private gain to the few.
  


• We call for this tragedy to be a basis for greater recognition of the oppression and injustices heaped daily by certain persons and institutions of authority upon anyone who dares to stand up and be counted for their beliefs, and for greater solidarity and mutual aid in response.


• We call for this tragedy to be a basis for a renewed and unwavering commitment to a free and unfettered internet, spared from censorship with equality of access and franchise for all.

CNET has contacted MIT for comment on the apparent hacking and will update this report when we learn more.

Critics of the prosecutors in the case say the feds were unfairly trying to make an example out of Swartz. "Aaron's death is not simply a personal tragedy," Swartz's family said in a statement released yesterday. "It is the product of a criminal justice system rife with intimidation and prosecutorial overreach. Decisions made by officials in the Massachusetts U.S. Attorney's office and at MIT contributed to his death."

CNET has also contacted the U.S. Attorney's office and will update this report when we hear back.

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Pictures: Civil War Shipwreck Revealed by Sonar

Photograph by Jesse Cancelmo

A fishing net, likely only decades old, drapes over machinery that once connected the Hatteras' pistons to its paddle wheels, said Delgado.

From archived documents, the NOAA archaeologist learned that Blake, the ship's commander, surrendered as his ship was sinking. "It was listing to port, [or the left]," Delgado said. The Alabama took the wounded and the rest of the crew and put them in irons.

The officers were allowed to keep their swords and wander the deck as long as they promised not to lead an uprising against the Alabama's crew, he added.

From there, the Alabama dropped off their captives in Jamaica, leaving them to make their own way back to the U.S.

Delgado wants to dig even further into the crew of the Hatteras. He'd like see if members of the public recognize any of the names on his list of crew members and can give him background on the men.

"That's why I do archaeology," he said.

(Read about other Civil War battlefields in National Geographic magazine.)

Published January 11, 2013

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Big Winners, Top Moments From the Golden Globes

Let's finally bury this idea that women can't be funny once and for all. Fey and Poehler were undeniably hilarious throughout the Globes, so much so that many fans on Twitter demanded more of them during the ceremony. From their opening bit -- Poehler: "Meryl Streep is not here tonight, she has the flu. And I hear she's amazing in it." -- to their pseudo drunk heckling of best TV comedy actress winner Lena Dunham, they were radiant, energetic, and above all, funny. More please.

Foster made her acceptance of the Cecil B. DeMille lifetime achievement award a coming out, of sorts. She first shocked the audience by leading them to think that she was about to make a huge public statement about her sexuality. Instead, she said she was single, adding "I already did my coming out in the stone age."

"Now, apparently, I'm told that every celebrity is expected to honor the details of their private life with a press conference ... You guys might be surprised, but I'm not Honey Boo Boo child," she said, to a flurry of laughter and applause.

"If you had been a public figure from the time that you were a toddler ... then maybe you too might value privacy above all else," she said. "Privacy."

But Foster did specifically thank her ex-partner Cydney Bernard, with whom she has two kids. Both boys gestured to her from the audience.

She also implied that she was retiring from acting when she said she would not be returning to the Globes stage or any stage. "It's just that from now on, I may be holding a different talking stick," Foster said, bringing many in the audience to tears.

But backstage, Foster clarified to reporters that she was not retiring from acting. "Oh that's so funny," she responded to reporters. "You couldn't drag me away. And I'd like to be directing tomorrow."

It takes a lot to make Hollywood star struck. Bill Clinton did it when he strutted on stage to introduce a clip of "Lincoln," which was up for best drama. He brought the crowd of A-listers to its feet and commended the 16th president. "We're all here tonight because he did it," he said of Lincoln's battle to end slavery.

If there was any doubt that Lena Dunham wasn't Hollywood's next big thing, it was obliterated Sunday night. The star and creator of HBO's "Girls" went home with two awards, best actress in a TV comedy and best TV comedy. Her heartfelt acceptance speech for best actress struck a chord: "This award is for everyone who feels like there wasn't a place for her," she said. "This show made a space for me."

Jessica Chastain won the Globe for best actress in a drama for "Zero Dark Thirty." She offered a moving tribute to director Kathryn Bigelow, the first woman to win a best director Oscar who failed to get a nomination for that award this year, though "ZDT" was up for a slew of other awards, including best picture. "I can't help but compare my character of Maya to you," Chastain said to Bigelow. "When you make a film that allows your character to disobey the conventions of Hollywood, you've done more for women in cinema than you take credit for."

Blame it on nerves, the spirit of spontaneity, or the a-a-a-a-alcohol (apologies to Jamie Foxx), but Jennifer Lawrence's acceptance speech was a tad insulting to a Hollywood icon, if totally hilarious. "Oh what does it say?" she asked, looking at her trophy. "I beat Meryl." She meant Meryl Streep, who was also up for the award.

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Video games take off as a spectator sport

Editorial: "Give video games a sporting chance"

EVERY sport has its idols and superstars. Now video gaming is getting them too. Professional gaming, or e-sports, exploded in popularity in the US and Europe last year.

The scene has been big in Asia - particularly South Korea - for about a decade, with top players such as Lim Yo-Hwan earning six-figure salaries and competing for rock-star glory in Starcraft tournaments that attract audiences in the hundreds of thousands.

The phenomenon is taking off in the West partly because of improved video-streaming technology and large financial rewards. Video games are becoming a spectator sport, with certain players and commentators drawing massive online audiences.

And where people go, money follows. The second world championship of League of Legends - a team-based game in which players defend respective corners of a fantasy-themed battle arena - was held in Los Angeles in October. The tournament had a prize pool of $5 million for the season, with $1 million going to winning team Taipei Assassins, the largest cash prize in the history of e-sports.

League of Legends has also set records for spectator numbers. More than 8 million people watched the championship finals either online or on TV - a figure that dwarfs audience numbers for broadcasts of many traditional sports fixtures.

But gamers don't need to compete at the international level to earn money. Video-streaming software like Twitch makes it easy for players to send live footage to a website, where the more popular ones can attract upwards of 10,000 viewers - enough for some to make a living by having adverts in their video streams. Gamers can go pro without leaving their homes.

Currently, e-sports productions are handled by gaming leagues - but that could soon change. Last November saw two moves that will make it even easier to reach a global online audience. First, Twitch announced it would be integrating with Electronic Arts's Origin service, a widely used gaming platform. This would let gamers stream their play at the click of a button, making it easy for people around the world to watch.

Also in November came the latest release from one of gaming's biggest franchises, Call of Duty: Black Ops 2, which has the ability to live-stream via YouTube built into the game itself. Another feature allows the broadcast of in-game commentary for multiplayer matches.

"I think we will reach a point, maybe within five years, where spectator features are a necessity for all big game releases," says Corin Cole of e-sports publishing company Heaven Media in Huntingdon, UK.

David Ting founded the California-based IGN Pro League (IPL), which hosts professional tournaments. He puts the popularity of e-sports down to the demand for new forms of online entertainment. "After 18 months, IPL's viewer numbers are already comparable to college sports in the US when there's a live event," he says. "The traffic is doubling every six months."

Ting sees motion detection, virtual reality and mobile gaming coming together to make physical exertion a more common aspect of video games, blurring the line between traditional sport and e-sports. "Angry Birds could be this century's bowling," says Ting.

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China economy to rebound in 2013: survey

BEIJING: China's economy is poised finally to end a long downward trend in 2013, economists polled by AFP say, as the new communist leadership vows to retool the nation's investment-led development model and promote a "happy life" for all.

The world's second-largest economy is not expected to return to double-digit growth, but the economists' predictions are a welcome spot of good news in a financial world assailed by the eurozone debt crisis and lacklustre recovery in the United States.

After seven consecutive quarters of slowing growth, China's gross domestic product (GDP) will rise by 8.0 per cent in 2013, according to the median forecast of 15 economists surveyed by AFP. The poll also projected 7.7 per cent growth for 2012.

The figures would outpace the government's 7.5 per cent growth target for 2012 -- but are well below the 9.3 per cent recorded in 2011 and 10.4 per cent in 2010.

Maintaining growth is all-important for China's communist leaders, who derive much of their claims to legitimacy from the country's reform-led economic rise, which has lifted hundreds of millions of people out of poverty over the past three decades.

The rebound comes as China formally wraps up a once-in-a-decade leadership change in March when Xi Jinping, who was named Communist Party chief in November, takes over as president and Li Keqiang becomes premier in charge of day-to-day administration.

Xi, in his first public appearance after being chosen to lead the party, said China's citizens "want their children to have sound growth, have good jobs and lead a more enjoyable life. To meet their desire for a happy life is our mission."

China's stunning economic transformation has long been fuelled by heavy state investment in railways, airports, bridges and buildings, as well as an emphasis on manufacturing and exports.

But it is now trying to promote demand from its own increasingly well-off consumers as the economy's main driver. And the Communist Party says it recognises the need to encompass the have-nots who have failed to share in the boom as a rich-poor gap opens up.

The National Bureau of Statistics is due to announce GDP figures for the fourth quarter and the whole of 2012 on Friday.

For the final quarter of last year, the median forecast in the AFP survey was 7.8 per cent, up from official third-quarter growth of 7.4 per cent -- which was the lowest figure since early 2009.

"The new leaders themselves would like economic growth to not be slower than 2012... in their first year," Chen Xingdong, a Beijing-based economist with French bank BNP Paribas who is expecting 2013 growth of 8.3 per cent, told AFP.

Stronger monthly data during the fourth quarter, including industrial output and retail sales, has fanned optimism the worst is over, as did new single-month highs for imports and exports in December.

But the economy still faces challenges such as unresolved structural problems including overcapacity and reliance on investment-driven growth, said Yao Wei, Hong Kong-based economist with Societe Generale.

"We can't get over-optimistic over the current recovery," she said.

China's economy averaged GDP growth of 10 per cent in the decade to 2010. A slower rate of 7.0-8.0 per cent is seen by economists as part of China's natural economic evolution as spending on projects such as transport and utility networks is reined in.

But market optimism over China's prospects risks being disappointed if in 2013 "the recovery remains centred on infrastructure and real-estate investment rather than consumption", wrote Mark Williams, chief Asia economist at Capital Economics.

Some also question how serious the government is about reforming the economy, as well as other challenges it has vowed to pursue, including cracking down on corruption.

"The current difficulty we have with the policymakers is that the focus is on changing the perception and hoping that the people believe," said Andy Xie, a Shanghai-based independent economist.

"It shows that real change is very hard to do. So you shift to the propaganda department to see if they can do the job."

- AFP/ck

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