TechDirt has an insightful article on the recent push for ISPs to turn off Usenet access under the guise of fighting child pornography. Unfortunately, the “stand against child porn” isn’t actually a stand at all, it seems more like ignoring the issue while trying to snag some headlines and good will. “Taking a stand against child porn wouldn’t be overly aggressively blocking access to internet destinations that may or may not have porn (and there’s no review over the list to make sure that they’re actually objectionable). Taking a stand against child porn would be hunting down those responsible for the child porn and making sure that they’re dealt with appropriately… Also, this sets an awful precedent in that the ISPs can point out that it’s ok for them to block “objectionable” content where they get to define what’s objectionable without any review.”

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Ian Lamont writes “The Business Software Alliance has just released its state piracy study (full PDF also available). The BSA says that one in five pieces of software in use in the United Says is unlicensed, and notes that piracy rates are highest in Ohio (27%). However, as noted by the Industry Standard, there are problems with the state study, and the way the BSA is presenting the data: the study only includes eight states, and it is making some questionable connections, including the claim that lost say and local tax revenue from piracy would have been enough to ‘hire nearly 25,000 experienced police officers.’”

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trainman writes “With the release of Firefox 3, those who have been using self-signed certificates for SSL now face a huge issue — the big, scary warning FF3 issues which is very unintuitive for non-technical users. It seems Firefox is pushing more websites in to the monopolistic arms of companies such as Verisign. For smaller, especially non-profit groups, which will never have issues with domain typo scammers, this adds an extra and difficult-to-swallow cost. Does a service such as this need the same level of scrutiny and cost since all that is being done is verifying domain and certificate match? This extra hand holding adds a tremendous cost and allows monopolistic companies such as Verisign to thrive. Can organizations such as Mozilla not move towards a model that helps break this monopoly, helping establish a CA root authority that’s cheap (free?) and only links the certificate to the domain, not actual verification of who owns the domain?”

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snydeq writes “Kaspersky Labs has discovered malware that inserts links to malicious Web pages within ASF media files, posing a danger to Windows users who download music files from P2P networks. Infected files launch IE and load a page that asks the user to download a codec. The download, a Trojan horse, installs a proxy program to route other traffic through the PC. The malware also has worm-like qualities, according to Secure Computing. It searches for MP3s, transcodes them to WMA format, wraps them in an ASF container, and adds links to further copies of the malware, all without modifying the .MP3 extension.”

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alexs writes “Red Hat’s response to update bind through RHN, patching the DNS hole, made a fatal error which will revert all name servers to caching only servers. This meant that anyone running their own DNS service promptly lost all of their DNS records for which they were acting as primary or secondary name servers. Expect quite a few services provided by servers running RHEL to, errr, die until their system administrators can restore their named.conf. Instead of installing etc/named.conf to etc/named.rpmnew, Red Hat moved the current etc/named.conf to etc/named.conf.rpmsave and replaced etc/named.conf with the default caching only configuration. The fix is simple enough, but this is a schoolboy error which I am surprised Red Hat made. Unfortunately we were hit and our servers went down overnight while RHN dropped its bomb and I am frankly surprised there has not been more of an uproar about this.”

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Not so very long ago after passengers were left hanging by a similar glitch at LAX, Gilby4mPuck writes with another story of NIC failure leading to a disruption of air traffic, this time in Ireland, excerpting: “Data showing the location, height and speed of approaching planes disappeared from screens for 10 minutes each time. … Thales ATM stated that in 10 similar air traffic control Centres worldwide with over 500,000 flight hours (50 years), this is the first time an incident of this type has been reported. … ‘[They] confirmed the root cause of the hardware system malfunction as an intermittent malfunctioning network card which consequently overcame the built-in system redundancy,’ stated an IAA spokeswoman.”

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Filed under: Industry, Law, Competitive strategy, Microsoft (MSFT), Intel (INTC), Advanced Micro Dev (AMD)

It has been widely anticipated that the EU would bring new antitrust charges against Intel (NASDAQ: INTC). The FTC and other US authorities are chasing the largest chip company in the world for similar reasons. South Korea has already fined Intel for anti-competitive behavior.

The theory behind the charges is that Intel induced PC companies and their retailers to use its chips and not those from rival AMD (NYSE: AMD). According to The Wall Street Journal, “The European Union launched new antitrust charges against Intel Corp., saying the chip giant paid rebates to a major retailer to encourage it not to carry computers using chips from smaller rival Advanced Micro Devices Inc .”

If the charges are true, it shows the extent to which a company of real size, like Intel, can be its own worst enemy. Microsoft (NASDAQ: MSFT) ran into similar problems a decade ago for being too aggressive killing off competition in the browser and media player markets.

The irony of Intel’s legal bind is that it nearly certainly didn’t need to pressure or give incentives to keep AMD in a distant second place. It had the balance sheet to keep margin pressure on AMD and the engineering prowess to offer superior chips.

Arrogance and carelessness often go with being in first place. This time it appears that it has caught up to Intel.

Douglas A. McIntyre is an editor at 247wallst.com.

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Filed under: Industry, Law, Competitive strategy, Microsoft (MSFT), Intel (INTC), Advanced Micro Dev (AMD)

It has been widely anticipated that the EU would bring new antitrust charges against Intel (NASDAQ: INTC). The FTC and other US authorities are chasing the largest chip company in the world for similar reasons. South Korea has already fined Intel for anti-competitive behavior.

The theory behind the charges is that Intel induced PC companies and their retailers to use its chips and not those from rival AMD (NYSE: AMD). According to The Wall Street Journal, “The European Union launched new antitrust charges against Intel Corp., saying the chip giant paid rebates to a major retailer to encourage it not to carry personal using chips from smaller rival Advanced Micro Devices Inc .”

If the charges are true, it shows the extent to which a company of real size, like Intel, can be its own worst enemy. Microsoft (NASDAQ: MSFT) ran into similar problems a decade ago for being too aggressive killing off competition in the browser and media player markets.

The irony of Intel’s legal bind is that it nearly certainly didn’t need to pressure or give incentives to keep AMD in a distant second place. It had the balance sheet to keep margin pressure on AMD and the engineering prowess to offer superior chips.

Arrogance and carelessness often go with being in first place. This time it appears that it has caught up to Intel.

Douglas A. McIntyre is an editor at 247wallst.com.

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Filed under: Before the bell, Major movement, International markets, Earnings reports, Good news, From the boards, Products and services, Competitive strategy, Mattel, Inc (MAT)

Shares of toy maker Mattel (NYSE: MAT) are soaring in premarket trading this day, after the company announced better-than-expected numbers for its second quarter.

At first glance, the numbers don’t look too hot for Mattel. The company announced that profit was off by a pretty hefty 48% in the quarter, down to 3 cents per share on $11.8 million. This is down from $22.8 million, or 6 cents per share, for the same period last year. The company blamed most of the decline in weak demand for its Barbie dolls, and higher costs that it had to endure in the quarter.

From the above paragraph, you might be anticipating to see the company being punished in the premarket, but in fact, shares of the stock are trading up a blazing 13.5% as I write this, and were up over 18% as of about 5 minutes ago. Why? Simple, in Wall Street it is all about expectations, and the company was able to outperform analysts estimates for the quarter, which were looking to see only a 2 cent per share report.

The company outperformed in terms of revenues as well. Analysts had been looking to see the company show revenues during the quarter of $1.04 billion, but the actual figures were higher, at $1.11 billion.

Barbie is a massive component of the Mattel lineup, and sales of the dolls dropped by 6% in the quarter. This drop was offset partially by solid growth from a couple of other components to the Mattel lineup, with Hot Wheels seeing a sales increase of 5%, while sales for its doll collection American Girl jumping 10%.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the on the web investment advisory service Investor’s Observer.

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