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TOP STORIES FOR FRIDAY, JANUARY 20, 2006
  Students Blame i2hub for Their Downloading Habits
  Putting a Price on Cybercrime
  Apple Changes iTunes in Response to Complaints


STUDENTS BLAME I2HUB FOR THEIR DOWNLOADING HABITS
A group of students at the University of Massachusetts at Amherst are
demanding that the operators of the now-shuttered i2hub pay for their
settlements with the Recording Industry Association of America (RIAA).
According to Lisa Kent, an attorney at the university's Student Legal
Services Office, which is representing the 42 students, i2hub deceived
students into believing the service was endorsed by the university.
This deception led to their believing that downloading materials over
the network was legal. Unless i2hub pays the $157,500 that the RIAA is
seeking from the students, the student legal office will file a
lawsuit, said Kent. Charles S. Baker, the attorney for Wayne Chang, who
created i2hub when he was a sophomore at UMass Amherst, rejected
Kent's argument, saying that the software that Chang wrote was
technically legal. "i2hub," he said, "is not responsible if your
clients used the software for an improper purpose." Fred von Lohmann, a
lawyer for the Electronic Frontier Foundation, compared the students'
legal argument to "a shooter deciding to sue a gun company, saying,
'The gun made me do it.'"
Chronicle of Higher Education, 19 January 2006 (sub. req'd)
http://chronicle.com/daily/2006/01/2006011901t.htm

PUTTING A PRICE ON CYBERCRIME
A study by the FBI estimates that yearly losses to computer crimes
exceed $67 billion. The study is based on the results of a survey of
more than 2,000 organizations, of which 90 percent reported having
suffered some form of computer attack in the previous 12 months, and 64
percent said they suffered a financial loss due to those attacks. The
average financial loss was $24,000 per company. In estimating total
losses, the FBI multiplied the average loss by just 20 percent of U.S.
organizations because survey results are often skewed when reporting
problems. Even with the significant reduction in the number of affected
businesses, the total estimate was an enormous amount of money, far
exceeding the $1 billion in losses each year to telecommunications
fraud. Because of the relatively large sample size, Bruce Verduyn of
the FBI said he believes the estimate is more accurate than other
studies that have attempted to quantify losses to cybercrime.
CNET, 19 January 2006
http://news.com.com/2100-7349_3-6028946.html

APPLE CHANGES ITUNES IN RESPONSE TO COMPLAINTS
Responding to complaints that its iTunes software infringed on user
privacy, Apple has made changes to the application. At issue is a
feature called MiniStore, which recommends songs to users based on what
they are listening to. When the new feature was released earlier this
month, some users discovered that the feature transmitted information
about iTunes users to Apple with unique identifiers. Those ID numbers
exposed the users of the service to violations of their privacy because
the iTunes software did not alert users to the feature and how it
works. Critics also pointed out that Apple did not disclose what
exactly it does with the data that is transmitted to the company. Apple
has changed the software to include a pop-up that tells users about the
feature and allows them to turn it off. Apple also said that it has not
done anything with the data it has collected. Kirk McElhearn, one of
the users who first reported the concerns about MiniStore, commended
Apple for its response, saying it had "done the right thing."
BBC, 19 January 2006
http://news.bbc.co.uk/2/hi/technology/4627214.stm

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