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AT&T, Verizon win government telecom contract
Business | 2007/03/29 13:57

The U.S. General Services Administration cast Sprint Nextel Corp. <S.N> aside and picked AT&T Inc. <T.N>, Qwest Communications International Inc. <Q.N> and Verizon Communications <VZ.N> on Thursday for the largest-ever federal telecommunications contract.

Government agencies are expected to spend at least $20 billion on the contract over 10 years, the GSA estimates -- a move that will overhaul the government's telecommunications services.

Under terms of the GSA contract, called Networx Universal, agency spending could be increased to as much as $48 billion.

The announcement comes after weeks of anticipation and years of preparation. The four companies have spent millions of dollars preparing bids and called on thousands of their employees to develop proposals and hammer out the details.

The failure to include Sprint is seen as a huge upset as it has provided telecommunication services to U.S. government agencies for 18 years.

"Sprint is disappointed not to receive a portion of the Networx Universal contract," it said in a statement. "The Sprint team spent significant time and energy on the program and has made large investments to meet the diverse requirements of the agencies."

The company said it will request a meeting with GSA next week and will decide whether to "protest or not" after that.

JOCKEYING FOR CONTRACTS MOVES TO SECOND STAGE

Even though Sprint is out of the picture, the three winning companies will still have to compete for individual contracts within the government agencies.

The companies agreement with the GSA would allow them to sell phone and Internet services to as many as 135 federal agencies, such as the treasury and defense departments.

"It's a big win for Qwest," said the company's senior vice president Diana Gowen, while AT&T senior vice president Don Herring said his company could not be happier that it won.

Both said it was too early to say how the contract would impact overall revenue and earnings except to acknowledge that Networx Universal is a very large contract.

"We will get our fair share of the 20 billion, or 40 billion, it's all about your creativity," Gowen said.

It is not mandatory for the agencies to use a company the GSA has chosen, but there are benefits to be had, such as a common billing platform.

The Networx Universal contract is one of two that comprise the Networx program. Companies bidding on Networx Universal had to demonstrate that they could provide 36 mandatory services, such as private phone lines and secure e-mail.

The second, called Networx Enterprise, is expected to be awarded in May 2007 and required companies to show they could provide nine mandatory services. Projected spending on Enterprise is estimated at $20.1 billion.

The complete Networx contract is the third in a series of telecommunications procurement programs developed by GSA that are designed to leverage the buying power of the federal government and save U.S. taxpayers money.



Microsoft unveils Deepfish mobile browser
Venture Business News | 2007/03/29 13:53

Microsoft Corp. has unveiled a web browser for cellphones and other devices with limited screen space that zooms into a page to make it easier to read and navigate. The prototype browser, dubbed Deepfish, displays an image of the page as a point of reference. Users can highlight a section of the page, which they can then zoom in and out of to quickly view it in detail, rather than scrolling through multiple screens to see the parts that interest them.

Microsoft says its prototype Deepfish mobile web browser makes it easier to display and read web pages on devices with small screens.
(Microsoft Corp.) Microsoft unveiled the browser Wednesday at O'Reilly Media Inc.'s showcase for emerging technologies, the ETech conference in San Diego, Calif.

"Think about your mobile browsing experience today," Gary William Flake, director of Microsoft Live Labs, said in a written statement. "It's often less than intuitive, the pages don't look like what you've come to expect on the desktop and it takes a long time for a page to load. Deepfish aims to solve that problem."

Deepfish maintains the page layout, rather than reformatting it to fit a small screen, which can sometimes interfere with the context that information on those pages may require for proper understanding or ease of use. For example, menus and other navigation elements are sometimes rendered unusable when a web page is reformatted to fit a smaller screen.



K&L Gates' IP Practice Continues Growth
Law Firm News | 2007/03/29 12:15



Kirkpatrick & Lockhart Preston Gates Ellis LLP (K&L Gates) welcomes W. David Shenk to its intellectual property and patent litigation practice. Shenk comes to the firm from Christensen O'Connor Johnson Kindness.

Shenk has litigated patent and copyright cases involving database software, document management systems, digital devices, semiconductors, computer systems for integrating video with transactional information, inhalable antibiotics, architectural plans, and exercise equipment and sporting goods, including in-line skates, snowboard bindings, treadmills, and elliptical exercisers. His experience includes representations in state and federal court and before the Ninth Circuit Court of Appeals, the Federal Circuit Court of Appeals, and the Supreme Court of the United States. Shenk's practice also encompasses all aspects of trademark law, including client counseling, trademark clearance and prosecution, administrative proceedings, and litigation.

K&L Gates Seattle Administrative Partner Robert Mitchell said: "David's skills and experience with a diverse range of technologies help us advance K&L Gates' counsel to the world's leading companies. We are pleased to welcome him to the firm."

Kari Glover, K&L Gates' Global Integration Partner, said: "The addition of David to our firm follows many other recent high-profile additions to the firm's IP practice and demonstrates K&L Gates' commitment to providing top-tier IP counsel to clients as it continues to grow internationally."

K&L Gates comprises approximately 1,400 lawyers in 22 offices located in North America, Europe and Asia, and represents capital markets participants, entrepreneurs, growth and middle market companies, leading FORTUNE 100 and FTSE 100 global corporations and public sector entities. For more information, visit www.klgates.com.



Data Theft Believed to Be Biggest Hack
Business | 2007/03/29 12:10

A hacker or hackers stole data from at least 45.7 million credit and debit cards of shoppers at off-price retailers including T.J. Maxx and Marshalls in a case believed to be the largest such breach of consumer information.

For the first time since disclosing the theft more than two months ago, the parent company of nearly 2,500 discount stores put a number on how much card data was compromised _ and it's a number TJX Cos. acknowledges could go still higher.

Experts say TJX's disclosures in a regulatory filing late Wednesday revealed security holes that persist at many firms entrusted with consumer data: failure to promptly delete data on customer transactions, and to guard secrets about how such data is protected through encryption.

"It's not clear when information was deleted, it's not clear who had access to what, and it's not clear whether the data kept in all these files was encrypted, so it's very hard to know how big this was," said Deepak Taneja, chief executive of Aveksa, a Waltham, Mass.-based firm that advises companies on information security.

The case has led banks to reissue cards to customers as a precaution against further fraud beyond cases detected as far away as Sweden and Hong Kong, according to the Massachussets Bankers Association, which is tracking fraud reports linked to Framingham, Mass.-based TJX, parent company of stores across North America and the United Kingdom.

The only arrests believed tied to the case involve a gift card scam in which 10 people are suspected of buying data from the TJX hackers to purchase Wal-Mart gift cards in northern Florida. The group _ who aren't believed to have committed the TJX hack _ then used the cards to buy $1 million worth of electronics and jewelry at Wal-Mart's Sam's Club stores, according to Gainesville, Fla., police.

Information from 45.7 million cards was stolen from transactions beginning in January 2003 and ending Nov. 23 of that year, TJX said in the filing with the Securities and Exchange Commission after business hours Wednesday. TJX did not estimate the number of cards from which information was stolen for transactions occurring from Nov. 24, 2003, to June 28, 2004.

TJX said about three-quarters of the 45.7 million cards had either expired at the time of the theft, or the stolen information didn't include security code data from the cards' magnetic stripes. Starting in September 2003, TJX began masking the codes by storing them in computers as asterisks rather than numbers, the company said.

The filing also said another 455,000 customers who returned merchandise without receipts had their data stolen, including driver's license numbers.

With at least 46 million consumer records accessed, the TJX case outranks the previous largest case tracked by the Privacy Rights Clearinghouse: a June 2005 disclosure by credit card processor CardSystems that hackers accessed accounts of 40 million card holders.



Hicks sentence 'less than 20 years'
Breaking Legal News | 2007/03/29 11:52

DAVID Hicks's sentence will be "substantially less" than 20 years in jail, the US military's chief prosecutor said today.

Hicks's sentencing will begin late tonight (Australian time) and both the defence and prosecution have been tight-lipped since Hicks's guilty plea on Monday about what sentence they will recommend.

Chief prosecutor Colonel Morris Davis declined to say today whether a plea deal had been reached with Hicks' defence lawyers, but he gave insight into what Hicks may receive.

John Walker Lindh, dubbed "The American Taliban", was sentenced to 20 years' jail in 2002 and for months Col Davis had used Lindh as a benchmark for Hicks' sentence.

However, Hicks's guilty plea would reduce the sentence prosecutors asked for, Col Davis said.

Asked today about Hicks' potential sentence, Col Davis said the sentence prosecutors will ask for would be much lower than Lindh's 20 years.

"I think you'll find when we get to argument we will argue for something substantially less than John Walker Lindh," Col Davis said at Guantanamo Bay military base.

Hicks's sentencing proceedings are due to begin tomorrow at 8am local time (10pm Friday AEDT).

Hicks, 31, on Monday pleaded guilty to a charge of providing material support for terrorism.



Ex-Mass. selectman blasts sex-sting charges
Legal Business | 2007/03/29 11:02

Federal officials are "looking to make an example" out of a former Southborough selectman accused in an Internet sex sting, according to the man's lawyer. The US attorney in Providence has taken over the case against William Christensen, arrested last May when Rhode Island State Police said he drove to a Providence apartment complex for a tryst arranged in an online chat room with a person who claimed to be a 15-year-old girl. In fact, the person was a State Police detective.

If convicted on federal charges, Christensen, 60, faces up to 30 years in prison and a $250,000 fine on each of two charges. In the federal system prisoners are not eligible for parole until they complete 85 percent of their sentence.

"We're distressed they're going to these lengths," said Christensen's lawyer, Jeffrey Pine, of Providence. "This is overkill."

US Attorney Robert Clark Corrente announced the charges against Christensen last Friday at a press conference launching Project Safe Childhood, a Department of Justice program targeting exploitation of children over the Internet.

Corrente's spokesman, Tom Connell, declined to respond to Pine's accusation.

"Any action we take in the case will take place in court," Connell said. "We will not engage in repartee in the newspaper."

Last week, in US District Court in Providence, Christensen was arraigned on one charge each of interstate travel to entice a minor in sexual conduct and using interstate commerce to entice a minor, according to Corrente's office. The retired software engineer, who is married with two grown sons, pleaded not guilty and was released on a $10,000 bond. He is confined to his home with an electronic monitoring bracelet, and is not allowed access to computers or the Internet. He also is prohibited from any contact with minors.

A woman who answered the phone at Christensen's Granuaile Road home declined to comment.

Federal prosecutors took over the case from Rhode Island's attorney general, who had charged Christensen with one count of indecent solicitation of a minor.

"Our mutual goal is to use the best possible laws to prosecute cases. In this case the federal laws pack more punch than the state laws," said Mike Healey, spokesman for the Rhode Island attorney general.

In December, Christensen received five years probation after pleading guilty in Plymouth Superior Court to soliciting sex on the Internet from a person he believed to be a 13-year-old girl. As in the Rhode Island case, the person was in fact a police officer.



Rubin CEO Pleads Guilty to Securities Fraud
Securities | 2007/03/29 09:47

The chief executive of investment bank Rubin Investment Group pleaded guilty to securities fraud in connection with the acquisition and sale of shares of small-cap companies, U.S. prosecutors said on Thursday.

Dan Rubin, who was also the CEO of attorney referral service 1-800-ATTORNEY Inc., agreed to forfeit $2 million and pleaded guilty in a federal court on Wednesday, making it the final plea by the senior management of the investment bank that once had offices in Los Angeles, Manhattan and Florida, the U.S. Attorney's Office in Brooklyn said in a statement.

Three other former employees of the firm have already pleaded guilty to securities and conspiracy charges. Each defendant faces a maximum sentence of 25 years, prosecutors said.

Under Rubin's direction, a group of employees at 1-800-ATTORNEY induced several companies, or their big shareholders, to sell large blocks of stock to Rubin Investment Group at discounted prices, the prosecutors said.


After acquiring stock from dozens of small-cap public companies, Rubin sold the stock in the open market at a substantial profit, while simultaneously driving down the price of the stock, prosecutors said.

The fraudulent acquisition and sale of shares occurred between August 2002 and October 2003, prosecutors said.

Rubin admitted that he told his staff to promise the small-cap companies that he would recommend their stock to Rubin Investment Group's investors and that he would not sell their stock in the open market, prosecutors said.

"The defendants profited by victimizing small, publicly-held companies and the investing public," U.S. Attorney Roslynn Mauskopf said.



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