Showing posts with label technology. Show all posts
Showing posts with label technology. Show all posts

Ohio rape case: Evidence on social media creates new world for justice system


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Young people’s use of social media and mobile technologies to document every facet and event in their lives, including violent and criminal behavior, has drawn national attention to the investigation into an alleged rape of a teenage girl in Ohio.
Not only are the social media being used in support of the pending legal arguments for both the alleged victim and the defendants, but this case and others are creating the potential for a whole new courtroom dynamic between the prosecution, defense, and jury.
Ma’lik Richmond and Trent Mays, two high school football players in Steubenville, Ohio, are charged with raping a 16-year-old girl at two separate parties in August. The names of both suspects, who are juveniles, are being used because a court judge, defense attorneys, and local media made their names public.
The state attorney general’s office, which is handling the case, says both boys participated in raping the girl, who remains unnamed because she is a victim, while she was unconscious. Mr. Mays is also charged with the “illegal use of a minor in nudity-oriented material.”
Two days after the alleged attacks was reported to law enforcement, local police confiscated about a dozen electronic devices belonging to all of the individuals involved. The devices were then turned over to the Ohio Bureau of Criminal Identification and Investigation, which reviewed tens of thousands of e-mails, texts, and photos. Mays and Mr. Richmond were arrested three days later. They are currently under house arrest.
Prosecutors say a photo taken at the party shows both boys holding the alleged victim by her arms and legs, suggesting her unconscious state. Defense attorneys deny she was unconscious, and claim to have a text message from the girl sent to their client that says, “I know you didn’t rape me.”
Also circulating are text messages posted to some social networks that reference that the rape happened, while the New York Times reports that a second photo snapped by a mobile phone shows the girl naked on a floor. Adding to the digital evidence is a video published online by Anonymous, the international hacker activist group, showing a group of students joking about the assault.
“Is it really rape because you don’t know if she wanted to or not? … She might have wanted to. That might have been her final wish,” one teenager is shown saying, according to CNN.
Local police say they are also tracking a possible video that is purported to show both boys participating in the violent attack.
The role social media plays in violent crimes is a relatively recent phenomenon dating back to the popularity of so-called “flash mobs,” which are public events involving group action that are planned and then executed using social media.
In some high-profile cases, the flash mobs have been used by gangs of youths to carry out the group beatings of strangers. On Sunday, a flash mob was blamed for a riot that broke out in Baton Rouge, La., where 200 teenagers engaged in a fight, causing the mall to be evacuated.
Law enforcement is also increasingly perusing social media sites to learn more about gang activity and get a better sense of when retaliation among certain groups will strike. For example, last year, police departments in Chicago, New York, and Philadelphia announced units to investigate social media behavior among gang factions, which often use mobile technology to plan, and later brag about, violent acts related to turf battles.
In Chicago, the strategy was used to investigate Keith Cozart, a rap star known as Chief Keef, who bragged on Twitter after a rival was gunned down in September. Mr. Cozart was also known for YouTube clips in which he mocked the slain victim.
Another local rapper named Lil Reese, whose real name is Tavares Taylor, came under scrutiny in October following the release of an online video to multiple hip-hop sites that show him severely beating an unidentified woman at a party. He was not charged because the woman could not be identified.
Paul Levinson, who teaches communications and media studies at Fordham University in the Bronx, says the motivation to document violence is “old-fashioned bragging.”
“When your morality is so degraded that you do these thing in the first place, whether it’s beating somebody up or, even worse, raping someone, the appeal for some people is, as a part of that process, to proclaim to the world you did that and have documentation,” Mr. Levinson says.
He cautions against blaming the technology itself, but says that the rapid ease of taking videos and interacting with others is merely enabling certain people to capitalize on their darker predispositions.
“What that suggests is there are some people who unfortunately have violent tendencies, but, to them, it seems a good thing and so that’s why there’s almost this compulsion to make a recording of it to get it out,” he adds.
Indeed, the rise in school bullying has also been attributed to the increased proliferation of social media. According to a report published by the Pew Internet & American Life Project in November 2011, 88 percent of teenagers using social networks have witnessed others being mean and cruel on social network sites. The incidents can then lead to physical altercations.
In the Ohio case, no physical evidence of the alleged rape exists, which means the looming court battle, scheduled for Feb. 13, will focus strictly on the interpretation of the media evidence.
The dynamic is creating a “whole new world” in the criminal justice system, says Lisa Smith, an attorney who specializes in domestic violence cases and who teaches law at Brooklyn Law School. Unlike traditional cases involving DNA, or other science-based evidence, where one side might rely on the testimony of a medical professional to guide the jury through their interpretation of a certain theory, cases involving text messages, mobile videos, and Facebook and Twitter postings as evidence hang on the direct values and behaviors of the jurors themselves.
“The average juror has no way to know which cardiologist is telling the truth,” she says. “But when it comes to Facebook and photos and text messages, they are going to use their own common sense and make judgments based on their own personal experience.”
Today investigators are trained to immediately seek out any digital evidence left behind on phones, tablets, and personal computers, and attorneys are now prepared to argue cases based on the interpretation of those messages and images, Ms. Smith says. What can be recovered can be conversations related to the planning of the crime, the post-discussion of the crime, or video or photo evidence of the crime itself.
Why this is an emerging trend has to do with the relative age of those involved: usually those of the Millennial generation or younger who have grown up with digital media and are conditioned to record and transmit most aspects of their lives – even if those details are criminal.
“In almost every case I’ve seen in the last year involving young people, there’s been some kind of documentation of the incident,” Smith says.
“This is what they do all day long and it doesn’t make any difference with the substance of they’re documenting,” she adds. “There is no thought process. You have to think of it as automatic, regardless of what they document, as it is to breathe. There is no judgment.”
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Facebook to hold press event, stock passes $30

NEW YORK (AP) — Shares of Facebook are pushing above $30 for the first time since July after it sent out invitations to "come and see what we're building" Tuesday at its headquarters in Menlo Park, Calif.
The company will say nothing more about the event. Speculation Wednesday ranged from a Facebook phone, something the company has consistently denied exists, to new search capabilities that would put it into direct competition with Google Inc.
The company emailed invitations to reporters and bloggers Tuesday and by Wednesday, shares passed the $30 mark for the first time since July.
Though still below its initial public offering price of $38, shares of Facebook Inc. have risen steadily since November as investors grow more confident that the social media site can make money through its growing mobile audience.
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Go Ahead, Keep Being Mean to Celebrities on Twitter

We realize there's only so much time one can spend in a day watching new trailers, viral video clips, and shaky cell phone footage of people arguing on live television. This is why every day The Atlantic Wire highlights the videos that truly earn your five minutes (or less) of attention. Today: 
RELATED: The Honey Boo Boo Nature Special; Everyone's Favorite Sleepwalking Mom
We usually don't condone being an impolite jerk to anyone, especially on social media. But we kind of make an exception because, well, if everyone was nice to everyone all of a sudden, we'd run out of fun Jimmy Kimmel segments where celebrities read their tweets:
RELATED: Ai Weiwei's 'Gangnam Style' Isn't Bad
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Oh man, this giant squid is like the most famous sea creature celebrity of the moment. And yes, it's way freakier in motion:
RELATED: Katie Holmes Goes Bust on Broadway
RELATED: Justin Bieber is Coming to Town
So fine, this is sort of bending the rules per se because this isn't really a video-video. It's the Game of Thrones introduction with beatboxing by the Stark children.
And finally, here is one minute of a man singing all the songs involving the word "baby." And in case you were wondering, yes, Justin Bieber is officially in the Baby Pantheon of Music.
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HTC says licensing agreement with Apple will lead to better devices in 2013

Apple (AAPL) and HTC (2498) signed a 10-year licensing agreement in November that covered all current, pending and future patents and ended the ongoing litigation between the two companies. It has been estimated that the company will pay Apple between $6 and $8 for every Android device shipped, however HTC CEO Peter Chao refuted the claim. Regardless of how much is being spent, HTC China president Ray Yam believes the deal will begin to benefit the company in 2013.
[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]
“The settlement with Apple will start to pay off next year, and the fourth quarter of this year is still going at a set pace,” the executive said in an interview with the Economic Observer of China, according to Focus Taiwan. “The biggest benefit to us is that we can put more energy into innovation, which is more important than anything else for a technology company.”
[More from BGR: Nokia predicted to abandon mobile business, sell assets to Microsoft and Huawei in 2013]
Yam notes that HTC has wasted too many resources on lawsuits with Apple in the past and that the company is now encouraging employees to “take broader steps” when creating new and better products. The executive revealed that HTC has adjusted its product, sales and marketing strategies for 2013 in the wake of the settlement. He said that many of the company’s projects are now proceeding at a faster rate and it has also changed the way it negotiates with its telecom partners.
While the settlement will ensure that HTC’s devices will remain on sale in the U.S. and other markets, the company must still find a way to increase its dwindling market share as its struggles continue.
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Nokia’s Lumia 920 remains as expensive as Apple’s iPhone 5

One thing handset industry analysts are watching like hawks is the price graph of the most important Windows Phone 8 model in the European handset market. Nokia (NOK) priced the Lumia 920 very, very ambitiously for its November debut. How long can the model maintain a stiff premium? Was the early pricing just designed to skim high margins from the pool of eager Nokia/Windows Phone early adopters?
[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]
Christmas is now over and the year 2013 has rolled in. But in the most important handset market in Europe, the Lumia 920 still costs as much as the 16 GB iPhone 5. At Phonehouse Germany, the price is 640 euros. At Handy Attacke, Ebay Germany, Amazon.de and other leading German phone retail sites, the price remains rock solid and notably uniform 650 euros. Most of these sites offer shipment within two to three days, so the price is no longer jacked up by lack of supply.
[More from BGR: Nokia predicted to abandon mobile business, sell assets to Microsoft and Huawei in 2013]
In comparison, the 16 GB iPhone 5 costs 630 euros at Ebay Germany, 650 euros at Notebooksbilliger and Handyschotte; and 670 euros at Telbay, Modeo and other sites.
Even as the unsubsidized price of Samsung’s (005930) Galaxy Note II is slipping below 510 euros in Germany, the Lumia 920 keeps levitating at the same price as the most expensive mass-market smartphone on the planet. Germany remains the biggest smartphone market in Europe, so this is going to be one key issue to keep an eye on as January price-cutting starts in earnest.
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Patent trolls’ latest gambit: Sue businesses if they dare to use office scanners

We’ve seen a lot of ridiculous claims asserted by patent trolls over the past few years, but this one truly takes the cake: Ars Technica reports that an entity called “Project Paperless LLC” has been sending out letters to small and medium-sized businesses demanding licensing fees for using office scanners capable of sending PDFs via email. Steven Vicinanza, founder of Atlanta-based IT services provider BlueWave Computing, told Ars that both his company and several of its customers had received letters telling them that they needed to buy licenses for “distributed computer architecture” patents that cover basic networked scanning technology. At a cost of $1,000 per employee, Vicinanza said that the licenses would have cost his company a grand total of $130,000 just for the right to scan documents.
[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]
Vicinanza couldn’t believe that he was actually being threatened with a lawsuit for using office scanners, so he decided to contact the attorney for Project Paperless to get some clarification.
[More from BGR: Nokia predicted to abandon mobile business, sell assets to Microsoft and Huawei in 2013]
“[The attorney] said, if you hook up a scanner and e-mail a PDF document — we have a patent that covers that as a process,” Vicinanza told Ars. “So you’re claiming anyone on a network with a scanner owes you a license? He said, ‘Yes, that’s correct.’ And at that point, I just lost it.”
Vicinanza isn’t the only one “losing it” over patent suits, of course. Cisco (CSCO) late last year decided to go on the offense against patent trolls by flat-out accusing them of breaking the law. What’s more, we’ve heard rumblings that the United States Department of Justice’s antitrust division may be ready to do something to limit patent trolls’ ability to extract licensing fees, so there could be some relief for patent suit-stricken firms on the horizon.
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Typical American without a landline: A 27-year old Latino living in Columbus, Ohio

The statistical study compiled by NHIS about landline and mobile phone usage in American households is a pretty fascinating read. The number of U.S. adults with a mobile phone but no landline rose to 34% in the first half of 2012. That percentage is ticking up roughly two points every six months — a fairly rapid clip. The number of adults with a landline but no mobile phone plunged below 8% according to the study, which was picked up by GigaOm. These numbers may explain why some of the pollsters using landline-only calls in the last election ran off the rails so spectacularly. So many Americans can no longer be reached via a landline phone that polling methods simply must be adjusted.
[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]
Latinos are far more likely to have a mobile-only household (46%) than non-hispanic whites (30%) according to the study; this gap is surprisingly large. The number of 25- to 29-year-old adults living in a mobile-only household hit a remarkable 60% in the beginning of 2012. There is a sharp generational divide here: Fewer than 25% of 45- to 64-year-old Americans have dared to drop the landline.
[More from BGR: Nokia predicted to abandon mobile business, sell assets to Microsoft and Huawei in 2013]
Somewhat surprisingly, the Midwest is the region with the highest level of mobile-only households. Naturally, metropolitan households are more likely to depend solely on mobile phones than suburban or rural households. For the first time ever, women edged out men as the larger group of mobile-only adults.
Back in 2006, only 10% of adults lived in a mobile-only household. Americans are kicking their landline habit with remarkable alacrity considering that many homes with small children still feel that depending solely on a mobile phone is too risky.

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Microsoft lashes out at Google’s decision to spurn Windows Phone

Dave Heiner, vice president and deputy general counsel for Microsoft (MSFT), took aim at Google (GOOG) and the company’s unwillingness to develop for Windows Phone 8 in a blog post on Wednesday. Heiner claims that, “Google continues to prevent Microsoft from offering consumers a fully featured YouTube app [among other] for the Windows Phone.” Microsoft has been apparently been trying to get a full-feature YouTube app for its Windows Phone operating system for more than two years, however it has been unsuccessful.
[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]
Despite the fact that the Windows Phone Marketplace has doubled in the past year, Google has not yet produced any quality apps for the platform. The company previously said that it will not be launching a native Gmail or Google Drive app for Windows 8 or Windows Phone until people start using the operating systems.
[More from BGR: Nokia predicted to abandon mobile business, sell assets to Microsoft and Huawei in 2013]
Windows Phone is estimated to account for a mere 2.6% of the mobile market and adoption of Windows 8 is said to be weak as well.
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Instagram gains users in December despite recent uproar as Zynga gets pecked to death by rivals

Zynga (ZNGA), the Facebook (FB) app behemoth, still reigns supreme on its most important platform. But the erosion of its dominant position continues as smaller rivals keep chipping away at its market share. On December 26, Zynga-owned Facebook applications had 267 million Monthly Active Users, down 20 million in two weeks. Far behind it followed Microsoft (MSFT) with 70 million MAU, King.com with 65 million MAU and Instagram with 43 million MAU.
[More from BGR: Samsung looks to address its biggest weakness in 2013]
But whereas Zynga lost nearly 7% of its Monthly Active Users in the two-week run-up to Christmas, Microsoft managed to inch up by 700,000 users, King.com by 600,000 users and Instagram by 2.1 million users.
[More from BGR: New purported BlackBerry Z10 specs emerge: 1.5GHz processor, 2GB RAM, 8MP camera]
Of course, the Facebook crackdown on aggressive customer acquisition techniques has limited the growth of all third-party app developers. But the most important of Zynga’s smaller rivals have been able to avoid the kind of MAU erosion that is now plaguing the Facebook app champion.
What really pops out from Christmas Facebook app trends is the way Instagram has been able to ride a wave of negative publicity to perky 5% monthly user growth over the past two weeks.
The tsunami of wrath and sarcasm unleashed on Twitter has not reversed Instagram’s momentum. It might even be possible that floating an outrageous-sounding privacy policy and then quickly reversing it could have simply increased Instagram’s brand recognition and piqued consumer interest among those who are not deeply involved in app trends.
This certainly adds some piquancy to the breathless commentary about Instagram’s “fatal blunder” and “possibly irreversible damage.”
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Nintendo’s Wii U wobbles as sales sink

According to Famitsu, Nintendo’s (NTDOY) portable 3DS console continued to see huge success during the week ahead of Christmas. It racked up sales of 433,000 units in Japan, up from 333,000 units in the prior week. But weirdly enough, the brand new and heavily promoted Wii U home console wobbled badly as its weekly sales slipped to 122,000 units from 130,000 units in the previous week. This may have been the biggest week in Japanese console market in 2012, so the stakes were high.
[More from BGR: Google names 12 best Android apps of 2012]
To put Wii U performance in context, the old PSP portable console sold 58,000 units in Japan during the same week. It is not an encouraging sign that the more than half-decade old PSP (which was displaced by the PlayStation Vita a year ago) managed to sell nearly half as many units as the brand new Wii U during the holidays. Of course, PS Vita continues to miss sales expectations dramatically — it sold only 19,000 units last week, barely more than a quarter of what its predecessor managed.
[More from BGR: Smartphones will replace keys on upcoming Hyundai cars]
Wii U performance may improve dramatically once compelling titles arrive. But during December, it did have “New Super Mario Brothers” and “Nintendo Land” to boost it in Japan. This clearly wasn’t enough. The aging PlayStation 3 sold only 30,000 units and Microsoft’s (MSFT) Xbox 360 barely cleared a thousand units, so the Wii U should have had a clear shot at strong sales performance in the Japanese home console market.
Overall, Japanese game console sales were down sharply from the week ahead of Christmas in 2011. The 3DS is a big hit in 2012 but instead of buoying the entire console market, it seems to be sapping energy from the Wii U and PS Vita.
It’s still early days for the Wii U, but Nintendo has probably started sweating a bit.
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Five-year-old finds porn on refurbished Nintendo 3DS from GameStop

Five-year-old Brandon Giles must have been excited to receive a Nintendo 3DS for Christmas — at least, he was until he turned it on. According to 9News, Giles’ father bought a refurbished 3DS from GameStop (GME) in Colorado for his son. However, when his son turned  it on and started poking around, he found nine pornographic images of two people in a bed and asked his brother to help him erase them. That’s when the father gave GameStop a call. GameStop’s response was that the images were most likely left over from its previous owner and an employee failed to properly wipe out the data on the 3DS before re-stocking it. “We have a rigorous quality control process in place to ensure that existing content is removed from all devices before they are re-sold,” GameStop said in a statement issued from its corporate office. “Out of millions of transactions each year, ones like this happen very rarely. Our number one priority is to make this right for our customer.”
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The Boy Genius Report: The Wii U is the Nintendo’s last console

I remember it still — people flipped out about the Nintendo (NTDOY) Wii. Yes, its name was mocked for a while, but there was genuine excitement around what Nintendo was doing with motion and the entire gameplay experience. While the original Nintendo Wii was almost an Apple (AAPL)-like product — Nintendo focused on the gameplay and not on specs; the company didn’t even have HD graphics when every other console did — the Nintendo Wii U clearly demonstrates how far Nintendo has fallen and how out of touch the company is.
[More from BGR: Samsung could face $15 billion fine for trying to ban iPhone, other Apple devices]
I bought a Nintendo Wii U for one reason and one reason only, and that’s to play and beat “Super Mario Bros. U.” I’ll probably end up returning the console after I’m done, because that’s how horrible the Wii U actually is.
[More from BGR: Five-year-old finds porn on refurbished Nintendo 3DS from GameStop]
First of all, the fact that Nintendo actually decided to ship this joke of a controller called the GamePad with a 6.2-inch touchscreen in the middle says it all. It only lasted for around two hours per charge over the week I’ve used it, and it’s big, clunky and made of glossy Nintendo plastic. The problem it, it has no charm. It feels thrown together to try to make a statement, one that says that Nintendo isn’t afraid of the iPads or Android tablets or iPhones or iPod touches, and that it too can take on touch just as it took on motion.
It fails miserably. And that’s just the controller.
The actual console is one that finally for the first time ever supports HDMI and HD graphics, yet Nintendo’s flagship game doesn’t look good in high-definition. The console’s UI is a mess, and let’s be honest, we are living in a time where we are so connected, where so much is shared across continents instantly, that real design transcends what country it was designed in.
When you see a beautiful iPhone app’s interface, there’s a good chance you couldn’t tell if it was designed by a company in San Francisco or Paris or Hong Kong. But Nintendo’s interface is blatantly Japanese, and it lacks any and all sophistication. It’s like all of Nintendo’s designers just gave up and are living in a time when Apple’s iOS devices and Google’s (GOOG) Android devices don’t exist, blissfully ignoring the threat that their company is facing from all angles.
The Wii U experience is so terrible that it took over an hour to update the software on the console recently, and apparently that wasn’t that bad. People have told me their updates took over 4 hours when performed closer to Christmas. Do you know what that 7-year-old is doing during those 4 hours you’re making him wait? Playing Temple Run or Angry Birds on his iPad mini. Way to go Nintendo.
I’ll go on record and say that I think this is the last video game console Nintendo will make for the home. I just don’t see the future here with hardware. Not by a mile.
Nintendo needs to realize that hardware is hardware and that Nintendo’s hardware isn’t special, it isn’t elegant and it isn’t thoughtful. It’s merely a delivery mechanism in a time where design has never been more important.
Nintendo is a great company, one that has invented so many great products, but sooner or later it will be forced to offer its titles on iOS devices and Android devices. It’s going to get to that point. There’s way too much revenue to be made — Nintendo isn’t Sega, and Sega is crushing it as a software-only company.
I just hope Nintendo follows suit sooner or later, because I have $9.99 ready to go for the Super Mario app on iOS.
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"Hebrew Hammer" sequel profits from crowdfunding campaign

"The Hebrew Hammer vs. Hitler," the sequel to 2003's "The Hebrew Hammer," will begin filming next year, after an innovative crowdfunding campaign that's raised $35,000 on Jewcer.com, the filmmakers announced Tuesday.
Adam Goldberg will return in the lead role, with principle photography expected to begin in May 2013.
In the film, Goldberg's character, now married and enjoying the good life in suburbia, is forced to dust off his black-leather couture to confront a new menace: a time-traveling Hitler intent on altering key moments in Jewish history.
The original film launched at Sundance and had a limited theatrical release before being picked up by Comedy Central in a five-year deal.
"It's been amazing," filmmaker Jonathan Kesselman, writer and director of both movies, said in a statement. "The fans are making this happen. The cult status of the first movie attracted millions of fans around the world, making crowd-funding a viable option. Funding is now in the hands of fans who can help make the movies they want to see."
Kesselman negotiated for the rights to the sequel with John Schmidt at ContentFilm, ending a near decade-long tussle and several attempts at getting it made.
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Instagram says no plans to put user photos in ads

Instagram, the popular photo-sharing service owned by Facebook Inc, said on Tuesday it has "no plans" to incorporate user photos into ads in response to a growing public outcry over new privacy policies unveiled this week.
Instagram Chief Executive Kevin Systrom said in a blog post that users had incorrectly interpreted Instagram's revised terms of service, released on Monday, to mean that user photos would be sold to others without compensation.
"This is not true and it is our mistake that this language is confusing," Systrom said. "To be clear: it is not our intention to sell your photos. We are working on updated language in the terms to make sure this is clear."
But Systrom said Instagram may display users' profile pictures and information about who they follow as part of an ad - a social marketing technique similar to what Facebook uses in its "sponsored stories" ad product.
He added that Instagram will not incorporate users' uploaded photos as ads because the service wants "to avoid things like advertising banners."
Instagram, which is free to use, triggered an uproar this week when it revised its terms of service in order to begin carrying advertising.
Facebook bought the fast-growing photo service - now with 100 million users - earlier this year in a cash-and-stock deal valued initially at $1 billion. The transaction closed in September at $715 million, reflecting a decline in the value of Facebook shares.
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Sberbank to buy Yandex online payments service: source

Sberbank, Russia's top lender, plans to buy Yandex.Dengi, an online payment service owned by Russian search engine Yandex, a source familiar with the matter said.
Sberbank declined to comment. Yandex, which was not available to comment, was expected to hold a news conference on Wednesday.
Sberbank, which accounts for a third of overall lending in Russia, has been expanding in the consumer credit market amid weak corporate loan portfolio growth.
In recent years, it has launched its own credit card business and tied up with French bank BNP Paribas in a joint venture focusing on point-of-sale lending, a popular form of in-store consumer finance in Russia.
Yandex, which raised $1.4 billion when it floated on the U.S. stock market in May 2011, came under scrutiny during election protests over the past year when it was reported that opposition leaders were raising funds via Yandex.Dengi.
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Tubular raises $2.5 million to serve burgeoning YouTube industry

Tubular, a small San Francisco start-up that provides analytics for YouTube content creators, has raised $2.5 million in venture capital in the latest sign of how far the business ecosystem has evolved around the Google-owned video repository.
YouTube was once known as Wild West of online video, but over the past two years Google has focused on raising the quality of YouTube content through a series of direct investments and the cultivation of third-party "networks".
The result is a cluster of small studios, mostly based in Los Angeles, that acts like a digital Hollywood, pumping out slick YouTube hits.
With the ultimate goal of hosting enough high-quality content to lure big-spending advertisers to YouTube, Google doled out more than $100 million last year in grants to its networks and bedroom stars.
In May Google led a group of investors who poured $35 million into Machinima, a leading network, to stoke growth in the YouTube industry.
That market has now grown to the point that it can support its own start-ups, says Tubular's founder Rob Gabel.
COMPETITION
As more semi-professional and professional YouTube creators enter the sector, with increasing competition among them, there is a growing need for analytical services.
Tubular is one such service, allowing customers to monitor and measure when videos get the most views and comments, or the sources of referred traffic.
The software includes a dashboard that displays the real-time analytics, which are generated by tapping into a stream of data provided by YouTube.
"If YouTube is a multibillion-dollar market, then that's billions of dollars going out to content creators who can then invest that again," said Gabel, a former Machinima employee.
"On every platform, from Google to Facebook to Twitter, people have turned to third parties' helpful tools."
At a high level, the pie is large and continuing to grow rapidly. Former Citi analyst Mark Mahaney estimates that YouTube will bring Google a total of $3.6 billion in 2012.
Rich Heitzmann, a co-founder of FirstMark Capital, which led Tubular's latest funding round, said that Google is far from wringing out all of the potential revenue from YouTube.
"We think the ecosystem is at least the size of Facebook's, considering it has a billion users and if you consider the time spent on YouTube," Heitzmann said.
"The advertising opportunities are there, and yet the ecosystem hasn't evolved technologically."
SUSTAINABLE BUSINESS
Other investors in Tubular's first tranche of equity financing included High Line Venture Partners, SV Angel, Lerer Ventures and Bedrocket Media Ventures.
Still, Gabel is betting that he can create a long-term, sustainable business on YouTube's platform at a time when some Silicon Valley companies are wary of building on the backs of larger companies.
Twitter, for instance, courted controversy this year when it made a business decision to shut off its firehose of data for a number of popular third-party developers to drive more visitors to its own site.
Allen DeBevoise, the CEO of Machinima who is also a Tubular investor, said that YouTube has reason to foster its independent developers rather than squash them.
"It's a thriving and fast-moving ecosystem now," he said. "But a lot of players are needed to make it all work."
Though Gabel acknowledges that the YouTube industry's rapid expansion is no guarantee of success, he has high hopes.
"Everything is a bit of gamble," he said, "but I feel good gambling on YouTube and online video.
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Instagram tests new limits in user privacy

 Instagram, which spurred suspicions this week that it would sell user photos after revising its terms of service, has sparked renewed debate about how much control over personal data users must give up to live and participate in a world steeped in social media.
In forcefully establishing a new set of usage terms, Instagram, the massively popular photo-sharing service owned by Facebook Inc, has claimed some rights that have been practically unheard of among its prominent social media peers, legal experts and consumer advocates say.
Users who decline to accept Instagram's new privacy policy have one month to delete their accounts, or they will be bound by the new terms. Another clause appears to waive the rights of minors on the service. And in the wake of a class-action settlement involving Facebook and privacy issues, Instagram has added terms to shield itself from similar litigation.
All told, the revised terms reflect a new, draconian grip over user rights, experts say.
"This is all uncharted territory," said Jay Edelson, a partner at the Chicago law firm Edelson McGuire. "If Instagram is to encourage as many lawsuits as possible and as much backlash as possible then they succeeded."
Instagram's new policies, which go into effect January 16, lay the groundwork for the company to begin generating advertising revenue by giving marketers the right to display profile pictures and other personal information such as who users follow in advertisements.
The new terms, which allow an advertiser to pay Instagram "to display your username, likeness, photos (along with any associated metadata)" without compensation, triggered an outburst of complaints on the Web on Tuesday from users upset that Instagram would make money from their uploaded content.
The uproar prompted a lengthy blog post from the company to "clarify" the changes, with CEO Kevin Systrom saying the company had no current plans to incorporate photos taken by users into ads.
Instagram declined comment beyond its blog post, which failed to appease critics including National Geographic, which suspended new posts to Instagram. "We are very concerned with the direction of the proposed new terms of service and if they remain as presented we may close our account," said National Geographic, an early Instagram adopter.
PUSHING BOUNDARIES
Consumer advocates said Facebook was using Instagram's aggressive new terms to push the boundaries of how social media sites can make money while its own hands were tied by recent agreements with regulators and class action plaintiffs.
Under the terms of a 2011 settlement with the Federal Trade Commission, Facebook is required to get user consent before personal information is shared beyond their privacy settings. A preliminary class action lawsuit settlement with Facebook allows users to opt-out of being included in the "sponsored stories" ads that use their personal information.
Under Instagram's new terms, users who want to opt-out must simply quit using the service.
"Instagram has given people a pretty stark choice: Take it or leave, and if you leave it you've got to leave the service," said Kurt Opsahl, a senior staff attorney with the Electronic Frontier Foundation, a Internet user right's group.
What's more, he said, if a user initially agrees to the new terms but then has a change of mind, their information could still be used for commercial purposes.
In a post on its official blog on Tuesday, Instagram did not address another controversial provision that states that if a child under the age of 18 uses the service, then it is implied that his or her parent has tacitly agreed to Instagram's terms.
"The notion is that minors can't be bound to a contract. And that also means they can't be bound to a provision that says they agree to waive the rights," said the EFF's Opsahl.
BLOCKING CLASS ACTION SUITS
While Facebook continues to be bogged in its own class action suit, Instagram took preventive steps to avoid a similar legal morass.
Its new terms of service require users with a legal complaint to enter arbitration, rather than take the company to court. It prohibits users from joining a class action lawsuit unless they mail a written "opt-out" statement to Facebook's headquarters in Menlo Park within 30 days of joining Instagram.
That provision is not included in terms of service for other leading social media companies like Twitter, Google, YouTube or even Facebook itself, and it immunizes Instagram from many forms of legal liability, said Michael Rustad, a professor at Suffolk University Law School.
Rustad, who has studied the terms of services for 157 social media services, said just 10 contained provisions prohibiting class action lawsuits.
The clause effectively cripples users who want to legally challenge the company because lawyers will not likely represent an individual plaintiff, Rustad argued.
"No lawyers will take these cases," Rustad said. "In consumer arbitration cases, everything is stacked against the consumer. It's a pretense, it's a legal fiction, that there are remedies."
Instagram, which has 100 million users, allows consumers to tweak the photos they take on their smartphones and share the images with friends. Facebook acquired Instagram in September for $715 million.
Instagram's take-it-or-leave-it policy pushes the envelope for how social networking companies treat user privacy issues, said Marc Rotenberg, the executive director of the Electronic Privacy Information Center.
"I think Facebook is probably using Instagram to see how far it can press this advertising model," said Rotenberg. "If they can keep a lot of users, then all those users have agreed to have their images as part of advertising.
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Facebook's SnapChat-Style Sexting App Is Called Poke (Seriously)

Oh, well would you look at Facebook, trying to make a Christmas funny with its SnapChat copycat app. It's called Poke! Get it? Because SnapChat is what the kids are all using for their sexting these days, apparently, and Poke — you know, that once kinda flirty Facebook future that's now pretty much useless — can kind of do the same thing, and it kind of sounds like some bad sexual pun, too! Funny, Facebook, very funny, and way to admit the dirty little truth behind "poking" that we knew all along.
RELATED: Facebook to Launch Its Own SnapChat as Social-Network Clone Wars Live on
Oh, wait. They're serious? Oh, yeah: Friday afternoon Facebook released Poke, its rumored iPhone app for the incredible vanishing half-message "that makes it fun and easy to say hello to friends wherever you are." But don't get too heavy on the old-school "Poke" comparisons, because the new app can actually send regular messages, photos, or videos, too — but only for short periods of time, because that is apparently what the kids like doing these days, if SnapChat's huge success is any indication. There's more of a time-bomb component to Poke, though: users can choose how long someone sees a poke before it ceases to exist forever — so you could sext poke all day long, because that, too, is apparently what the kids like doing these days, if SnapChat's huge, smashing, sexy success is any indication.
RELATED: The Life and Philosophy of Mark Zuckerberg
Why would anyone use Poke over SnapChat? Well, the Facebook app itself has a much smoother interface than SnapChat, and you can report people behaving badly, and everyone's already on Facebook, right? Maybe this is the breaking point Justin Bieber could never hit, when something sexy goes from the tween set to actual human beings. We'll let you know when Poke shows up in our iPhone's App Store; for now we're not entirely sure if this is just some bad joke.
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Beleaguered Motorola gets another boost, snags top Samsung marketing exec

It’s good to see that Google (GOOG) has some plans for Motorola other than selling it off for parts. Unnamed sources have told AllThingsD that Google has hired Brian Wallace, who for the past year has served as the vice president of strategic marketing at Samsung’s (005930) American phone unit, to take the reins for marketing at Motorola. As we noted recently, Samsung’s marketing team has been at the top of its game all year by producing witty, funny commercials that both mock rival Apple (AAPL) and that deftly promote Samsung phones by giving concrete examples of how they improve people’s lives. So while most other smartphone vendors have made ads that make it look as though your smartphone will turn you into a cyborg, Samsung’s ads depict the simple joy of using NFC to share videos with your friends. Although we don’t know how much input Wallace had into these ads, it’s nice to see that Google is recruiting some in-demand talent to help revive Motorola.
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RIM shares dive as fee changes catch market off guard

Shares of BlackBerry maker Research In Motion Ltd plunged more than 20 percent on Friday on fears that a new fee structure for its high-margin services segment could put pressure on the business that has set the company apart from its competitors.
It was the stock's biggest, single-day, percentage price drop since September 2008. But shares were still nearly 80 percent above the year's low, which was reached in September. They started to rally in November as investors began to bet that RIM's long-awaited new BlackBerry 10 phones, which will be unveiled in January, would turn the company around.
The services segment has long been RIM's most profitable and accounts for about a third of total revenue. Some analysts said there was a risk that the fee changes could endanger its service ecosystem and leave the Canadian company as just another handset maker.
The fee changes, which RIM announced on Thursday after market close, overshadowed stronger-than-expected quarterly results. The company said the new pricing structure would be introduced with the BlackBerry 10 launch, expected on January 30.
RIM said some subscribers would continue to pay for enhanced services such as advanced security. But under the new structure, some other services would account for less revenue, or even none at all.
Chief Executive Thorsten Heins tried to reassure investors in a television interview with CNBC on Friday, saying RIM's "service revenue isn't going away".
He added: "We're not stopping. We're not halting. We're transitioning."
Since taking over at RIM in January, Heins has focused on shrinking the company and getting it ready to introduce its new BB10 devices, which RIM says will help it claw back ground it has lost to competitors such as Apple Inc and Samsung Electronics.
But the new services pricing strategy came as a shock to markets, and some analysts cut their price targets on RIM stock.
RIM will not be able to sustain profitability by relying on its hardware business alone, said National Bank Financial analyst Kris Thompson, whom Thomson Reuters StarMine has rated the top RIM analyst based on the accuracy of his estimates of the company's earnings.
Thompson downgraded RIM's stock to "underperform" from "sector perform" and cut his price target to $10 from $15.
Forrester Research analyst Charles Golvin said the move was likely about stabilizing market share: "At the moment, they need to stem the bleeding."
He said the tiered pricing might line up better with RIM's subscriber base as it expands in emerging economies.
RIM's Nasdaq-listed shares closed down 22.7 percent at $10.91 on Friday. The stock fell 22.2 percent to C$10.86 on the Toronto Stock Exchange.
COUNTDOWN TO LAUNCH
The success of the BB10 will be crucial to the future of RIM, which on Thursday posted its first-ever decline in total subscribers. Heins said on CNBC that the company expected to ship millions of the new devices.
He cautioned that this will require heavy investment, which will reduce RIM's cash position in its fourth and first quarters from $2.9 billion in its fiscal third quarter. He said, however, it would not go below $2 billion.
Still, doubts remain about whether RIM can pull off the transformation. Needham analyst Charlie Wolf said the BB10 would have to look meaningfully superior to its competitors for RIM to stage a comeback.
Canaccord Genuity analyst Michael Walkley said it was highly unlikely that the market would support RIM's new mobile computing ecosystem, and he remained skeptical about the company's ability to survive on its own.
"We believe RIM will eventually need to sell the company," said Walkley, who cut his price target on RIM shares to $9 from $10.
Baird Equity Research analysts said BB10 faced a daunting uphill battle against products from Apple, as well as those using Google Inc's Android operating system, and, increasingly, phones with Microsoft Corp's Windows 8 operating system.
Baird maintained its "underperform" rating on the stock, while Paradigm Capital downgraded the shares to "hold" from "buy" on uncertainty around the services revenue model.
"RIM has gone from having one major aspect of uncertainty - BlackBerry 10 adoption - to two, given an uncertain floor on services revenue," William Blair analyst Anil Doradla said.
RIM will have to discount BB10 devices significantly to maintain demand, Bernstein analyst Pierre Ferragu said.
The BlackBerry, however, still offers the security features that helped it build its reputation with big business and government, a selling point with some key customers.
Credit Suisse maintained its "neutral" rating on the stock, but not because it expected BB10 to be a big success.
"Only the potential for an outright sale of the company or a breakup keeps us at a neutral," Credit Suisse analysts said.
Separately on Friday, ailing Finnish mobile phone maker Nokia said it had settled its patent dispute with RIM in return for payments.
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