Washington Internet Daily Vol 10_IMPACT Pg2

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Washington Internet Daily Vol 10_IMPACT Pg2

  1. 1. WEDNESDAY, MAY 27, 2009 VOL. 10, NO. 100 Today’s News Administration Web Sites, Comments Process, ADMINISTRATION’S OPEN GOV- Promise Change ERNMENT efforts begin to bear fruit. Advocates take some heart. (P. 1) Government is becoming more open in fits and starts, a sampling of activists’ opinions shows. The much-anticipated Data.gov and a plan to STOPPING WEAPONS OF MASS overhaul the much-derided Regulations.gov are a good start, as is the com- DISRUPTION aim of Malaysian ments process for open government ideas in general, the activists said. multilateral approach to global cy- The sites are hardly perfect, they said, saying they don’t expect perfection. bersecurity. (P. 2) They do expect some basics, though, and at least one critic thinks the Obama administration is letting the bells and whistles get ahead of simple WHITE HOUSE: Federal cookie ideas like providing information that can be found easily. policy harms usability, transpar- ency, ITIF says. (P. 4) The trio of Web site changes is a neat thing, said Jim Harper, AGENCIES: Facebook rival settles, director of information policy studies at the Cato Institute. “But the drops attempt to cancel trademark basics are going by the wayside,” he said. Whitehouse.gov should be on famous name. (P. 4) maintained as a useful place to get information, he said. When Harper recently looked in the “speeches” section of Whitehouse.gov for Presi- COURTS: GraphOn settles patent dent Barack Obama’s security speech at the National Archives, the lawsuit with CareerBuilder, Clas- most recent speech listed had been given in February. He thinks there sified Ventures ... Thomas P2P should be one place on the site for posting legislation yet to be signed retrial to start June 15, with de- and the president should stick to his campaign pledge to post legislation fense led by Harvard professor’s for five days before signing it. associates. (P. 5) By Harper’s count, only once has the president posted legislation INTERNATIONAL: Online music for the promised five days before signing. And the postings have referred licensing talks show promise, EC users to thomas.gov, where they find multiple versions of the same bill. official says ... First Australian He’d rather the text were posted on the White House site, so interested criminal copyright trial ends in con- viction ... Alleged uploaders of Ital- parties, civics classes, and others could easily find bills. The White House ian earthquake-charity single ar- disputed Harper’s count but couldn’t provide its own numbers right away. rested. (P. 6) One point of contention could be when the five-day clock begins: Harper thinks it should begin when the bill is presented at the White House, PRIVACY: TechCrunch unsatisfied though it’s possible others are counting from the time a bill is cleared by with Last.fm’s new denial that CBS both houses of Congress. A look at thomas.gov shows that, of the 24 bills gave user data to record labels. (P. 7) signed, nine were signed more than five days after presentment, and an Copyright© 2009 by Warren Communications News, Inc. Reproduction or retransmission in any form, without written permission, is a violation of Federal Statute (17 USC01 et seq.).
  2. 2. 2—WASHINGTON INTERNET DAILY WEDNESDAY, MAY 27, 2009 additional five more than five days after clearing. The site doesn’t indicate whether it was linked to by the White House. Some of the bills that didn’t meet the five-day posting pledge could qualify as emergencies, particularly if Congress waits until the last moment to pass legislation: A bill extending authorization for programs under the Small Business Act was signed the same day the old authorizations expired. Other bills that didn’t meet the five- day promise include the Lilly Ledbetter Fair Pay Act and the Credit CARD Act. One bill passed by Congress and presented to the president remains unsigned: HR-131, which would establish a Ronald Reagan Centennial Com- mission. That bill doesn’t seem to be on the White House site. Having bills posted for five days before being signed would be great, but it would be even better if Congress would post bills for a time before voting on them, said Heather West, a policy analyst at the Center for Democracy & Technology. She said Data.gov and the requests for comments on Regulations.gov and opengov.ideascale.com, which is hosting the public comments that will be incorporated into an Open Govern- ment Directive issued by OMB, are good starts. She said she’s excited about the possibility of Regula- tions.gov finally changing. West said that of the three efforts, “in the long run, it may be the most useful, be- cause it will have very concrete results.” Clay Johnson, director of Sunlight Labs at the Sunlight Foundation, is ready to see results from Data.gov. “Sunlight isn’t demanding that the government change overnight,” he said: “We’re not crazy. And we don’t have unrealistic expectations.” If someone wanted to mash up data from multiple agencies, it might be possible -- but because the data isn’t in a standard format, the person has to write code for each agency separately. Imagine, he said, if one could write an app and access all federal information with one line of code. Data.gov offers 47 data feeds, almost half of them GIS data -- “stuff on a map,” Johnson said. He’d like information from the foreign agent registration database, lists of people serving on federal advisory committees, and eventually Congressional data. He’d also like Data.gov to be a true repository. Now it’s a catalog that points to the data on agency Web sites, which gets to the nonstandardized format problem. Johnson likes the comments process on opengov.ideascale.com. “I think it’s a great initiative,” he said. The site takes suggestions in several open government categories and allows people to vote yea or nay. The comment period will be followed by a deeper discussion period and a wiki directive-writing period. Right now the top vote-getter on the site is Minority Leader John Boehner, who advocated a 72-hour mandatory public review on major spending bills, an idea initially promoted by open government advocates like the Sunlight Foundation. Boehner’s idea got 632 yea votes and 58 nays. Among other ideas: a suggestion to disclose UFO presence and end the truth embargo on the presence of extraterrestrials. The idea received seven votes for and 24 against. -- Leslie Cantu IMPACT Expanding Multilateral Cybersecurity Group Ready to Sign Up Nations GENEVA -- Countries are in talks to join a multilateral initiative aimed at fighting global cyberterror- ism, cyberwarfare and other online threats by better linking experts, governments and Computer Emergency Response Teams, officials said at a technical demonstration last week at the ITU. The International Multilat- eral Partnership Against Cyber-Threats aims quot;to build a value proposition for countries to our services,quot; said IMPACT Chairman Mohd Noor Amin. Other global organizations are doing the same task, but not on a global basis, Amin said. North Atlantic Treaty Organization activities are confined to NATO countries, he said, and Asia-Pacific Economic Cooperation
  3. 3. WEDNESDAY, MAY 27, 2009 WASHINGTON INTERNET DAILY—3 initiatives are confined to APEC countries. Other initiatives in Europe, the Association of Southeast Asian Nations and the Organization of American States are likewise confined, he said. Counties with no protection become safe havens for criminals and an online menace, Amin said. Many of the command and control botnets and servers used for cybercriminal payments are in small countries with very lit- tle regulation and protection, he said. IMPACT wants to partner with governments, major security vendors, Inter- pol and certain experts, said IMPACT technical consultant Mitthiran Raman. quot;The Global Response Center is meant to be a coordinated bodyquot; to mitigate and prevent cyberterrorism, said Raman, the center's architect. IMPACT has a center for training and skills development, research and develop- ment, global response and policy coordination, Raman said. An Electronically Secure Collaboration Application for Experts has social networking links to experts, he said. A July upgrade will add incident logging, Raman said. Many CERTs supported the idea of going beyond ticket-based systems already in place, he said. The cross-CERT compliant upgrade will look for relevant people to address the problem, Raman said. The system will use VoIP, instant messaging or chat tools to connect the parties in real time, he said. Vulnerability information could then be disseminated to all CERTS, Raman said. Case management for cyber-attacks could be routed through law enforce- ment or other governmental authorities, he said. The Network Early Warning System uses scraped data from certain places in the network, Raman said. NEWS uses a data surveillance concept for creating an early warning system, he said. IMPACT is working with 18 commercial security vendors to get data, Raman said, and the number is expected to rise to at least 30. A quot;mash-up enginequot; aggregates real-time data into an anonymous feed, he said. Scraped data from command and control servers is also provided by Shadow Server Foundation, SRI International's Malware Threat Center, Arbor Networks' ATLAS, Honeynet Project and SANS Institute's Internet storm center, Raman said. The next phase will be gathering data from Kaspersky's secure network, Semantec's Deep Site network, Global Intelli- gence Network and F-Secure, Raman said. Most attack-marker sources pointed to China one day last week, a demonstration of the system showed. About 939,000 incidents of malicious probing had been logged during the day's aggregated feed, Raman said. Indi- cations of the threat were corroborated by the various feeds reporting similar data, he said. Data on other threat categories is aggregated from different sources, Raman said. Secunia provides a vulnerabilities list, he said. Security vendors will provide operating system and application vulnerabilities, Raman said. Lists of vi- ruses, spyware and phishing come from different specialized sources, he said. Countries can also submit malware samples for automatic analysis and possible information distribution within IMPACT's membership, Raman said. Anti-virus vendors liked the idea of getting information from the submission facility, he said. Access to IMPACT's information isn't yet defined, Raman said. None of the countries are yet onboard, he said. Nations are still in talks with IMPACT, with registration likely to begin in June or July after data center con- struction and testing are finished, Raman said. IMPACT was formed quot;quite independentlyquot; of the ITU, Amin said. IMPACT's four focus areas match rec- ommendations in the ITU Global Cybersecurity Agenda, which was prompted by the World Summit on the Infor- mation Society. ITU Secretary-General Hamadoun Toure felt IMPACT could be the operations center for the GCA, Amin said, referring to more than 100 experts' group recommendations. Malaysia incubated IMPACT with $13 million, Amin said. The organization is quot;supposed to be self sufficientquot; afterward, he said. An International Advisory Board meeting is tentatively planned for the third quarter, Amin said. Board members include Google’s Vint Cerf, Eugene Kaspersky of Kaspersky Lab, former White House cybersecurity ad- visor Howard Schmidt, Symantec Chairman John Tompson, Mikko Hypponen of F-Secure, Toure and others, the IMPACT Web site said. -- Scott Billquist
  4. 4. 4—WASHINGTON INTERNET DAILY WEDNESDAY, MAY 27, 2009 White House The “persistent cookie” policy set in the Clinton administration has harmed the federal government’s ability to offer “usable and citizen-friendly” Web sites, said a report the Information Technology and Innovation Founda- tion released on Tuesday. It recommended creation of standard privacy-policy language across federal sites, a spe- cific list of approved and prohibited activities on such sites, and regularly-updated guidelines from the Office of Management and Budget on the use of persistent cookies, such as their maximum lifespan. OMB guidance from 2000 that generally restricts the use of cookies has remained through an explosion of popular Web sites using per- sistent cookies, from Google to Wikipedia to eBay, most of which tell users how to control cookies in their browser settings, the report said. Only four of the 10 most popular federal Web sites -- USPS.com, NIH.gov, NASA.gov and CDC.gov -- use persistent cookies, whereas several state government sites use them to offer greater functional- ity. Michigan and Idaho, for example, which use the cookies, were the top ranked states for e-government in a Na- tional Policy Research Council report in 2006, the report said. “Government agencies cannot implement many of the common features the public has come to expect ... such as personalization,” leading users to visit private-sector and nonprofit sites that give users more convenient access to government data, like OpenSecrets.org. OMB should be directed to allow persistent cookies on government sites and set specific permitted uses, the report said. Agencies Facebook settled with a company trying to cancel the social networking site's trademark on the term quot;Facebook.quot; Think Computer, founded by a Harvard University classmate of Facebook CEO Mark Zucker- berg, created a Web-based student portal on campus called houseSYSTEM that included a section called quot;The Universal Face Book,quot; the companies said in a written statement. Zuckerberg was a member of houseSYS- TEM, which didn't offer member profiles when it started in 2003 quot;due to security concerns.quot; Think CEO Aaron Greenspan added profiles after Facebook launched in 2004. Think has filed petitions at the Patent and Trademark Office in April 2008 and March 2009 to cancel Facebook's trademark. The company has promised to drop its legal effort. The settlement terms weren’t released. quot;I am glad that my contributions have been recognized by Facebook,quot; Greenspan said. --- The FCC is asking other countries to supply broadband data to help it develop a national broadband plan. Tuesday, the FCC released letters sent earlier this month by the International Bureau to Canada, Austra- lia, Nigeria, South Africa, Singapore, Korea, Japan and Hong Kong. The commission is required by the Broadband Data Improvement Act to do an international comparison of broadband speeds and prices. “We hope to learn from the experiences of others in meeting the shared challenge of delivering broadband to all of our citizens,” the bureau wrote. “While some national level data is available through institutions like the Or- ganisation [for] Economic Co-operation and Development (OECD) and the International Telecommunications Union (ITU), we are interested in obtaining broadband data at more granular levels -- for example, by city, county, state, province or prefecture. Similarly, we are interested in demographic and socioeconomic data at comparable unit levels.” More letters are expected to appear on the FCC’s Web site in the next few days, a commission official said, but the total is unclear. -- AB --- The NTIA and the RUS should balance the needs to stimulate broadband supply and demand in giving out grants and loans, Intel Executive Vice President Sean Maloney said in an interview. Calling WiMAX a broadband technology that makes efficient use of spectrum and uses an all-IP network, he said he hopes the technology will help the U.S., which lags in GSM and 3G, take the lead in 4G. A balanced program combing broadband connectivity and computer education and ownership is critical in distributing the stimulus funds, Maloney said, supporting tax incentives. He said countries like China, India, Portugal and Australia are trying
  5. 5. WEDNESDAY, MAY 27, 2009 WASHINGTON INTERNET DAILY—5 to spur broadband demand by providing subsidies, rebates, and tax refunds for computer purchases by consum- ers and small- and mid-sized businesses. In a recent filing with the NTIA and the RUS, Intel asked the agen- cies to base the choice among applicants on tests aimed at the mix of capabilities, cost and price that will best meet the broadband needs of the area to be served. All applications should be required to specify “what their projected cost per subscriber will be for their scheduled deployment at one, two and three years assuming a 25, 50 and 100 percent penetration,” Peter Pitsch, Intel executive director of communications, wrote on the com- pany’s policy blog. There’s no reason for the U.S. to lag behind the rest of the world in 4G adoption, Maloney said, noting rapid WiMAX deployment in countries like Japan and South Korea. He touted the 2.5 GHz spec- trum, used by WiMAX operator Clearwire, as the right band for a nationwide 4G network. But some analysts said the U.S. WiMAX adoption may be handicapped by its limited number of operators and the lack of access to the 3.5 GHz band, used by some Asian and European operators. Netbooks and notebooks with embedded WiMAX chips will be the target of Intel’s WiMAX offerings for now, Maloney said. But WiMAX will be in- tegrated into a wide range of devices, including smartphones, PDAs and cameras, he said. Intel isn’t scaling back its investments this year, Maloney said. “If you back off investment in recession, you are threatening your economic future,” he said. -- YW Courts Supreme Court nominee Sonia Sotomayor has handled few communications matters as a federal appeals or district court judge. She did write the 2nd U.S. Circuit Court of Appeals opinion in a 2008 case upholding a district judge’s ruling that a Kansas man had no claim against the reorganized MCI for pre-bankruptcy claims. In that case, In re: WorldCom Inc., Victor Browning sued MCI, saying the company had been unjustly enriched by installing without permission telecom cables in a railroad right of way across land he owned. Sotomayor, as a district court judge, had ruled in New York Times Co. v. Tasini that publishers could license the work of freelance journalists when their work was sold for inclusion in an electronic databases such as LexisNexis. The decision was ultimately overturned by the Supreme Court in a 7-2 decision. As a lawyer at New York’s Pavia & Harcourt in the 1980s, So- tomayor specialized in part in intellectual-property law. --- Customers of Hughes seek class-action status, alleging the reliability of the company's Internet service is falsely advertised. Tina Walker and Christopher Bayless, both of California, said the company promised broad- band speeds of 1-3 Mbps, but they received far slower service. In the complaint, filed in U.S. District Court in Oakland, Calif., Bayless and Walker seek to represent about 80,000 state residents who have subscribed to Hugh- esNet since 2005. They seek $5 million in damages. The lawsuit comes weeks before the government begins to allocate funds from the $7.2 billion broadband stimulus package. Hughes declined to discuss the lawsuit or whether it would have any impact on it receiving stimulus funds. Lisa Scalpone, vice president of legal and gov- ernment affairs for WildBlue, said her company quot;believes satellite broadband provides a reliable and cost- effective broadband service to rural America.quot; She said WildBlue doesn't believe the litigation would have a negative impact on the satellite broadband industry's chances of receiving funding. Andrea Maleter, technical director for Futron Corp., said customers of terrestrial Internet providers have similar issues and quot;if such prob- lems would be the basis for denying stimulus money to broadband providers, there would be no stimulus money awarded at all.quot; This is the second suit against Hughes filed by the law firm of Pogust, Braslow and Millrood in the past two years over Internet speed performance. In 2008, Pennsylvania resident David Scasta sought $75 million for himself and 400,000 Hughes customers over dissatisfaction with the Internet service, according to legal documents filed in that state. A paralegal for the law firm said that case was withdrawn until a verdict is reached in California, where consumers laws tend to be more quot;favorable.quot; -- VD --- GraphOn said it settled a lawsuit against CareerBuilder and Classified Ventures on claims of infringing its networked database-related patents (WID March 11/08 p6). Under a nondisclosure agreement, the terms weren’t
  6. 6. 6—WASHINGTON INTERNET DAILY WEDNESDAY, MAY 27, 2009 released. The infringement suit continues in U.S. District Court in Marshall, Texas, against remaining defendants Yahoo, eHarmony, InterActiveCorp and IAC's dating site Match.com. --- The retrial of P2P defendant Jammie Thomas will start June 15 in U.S. District Court, Minneapolis, said Judge Michael Davis. Pretrial motions will be heard June 10. The judge threw out a $222,000 jury ver- dict against Thomas last year, citing erroneous jury instructions that said making available a copyrighted work constituted infringement in and of itself. The newly remarried Thomas-Rasset also got a new legal team, St. Paul-based Garrett Blanchfield and Houston-based Kiwi Camara, who have ties to Harvard law Prof. Charles Nesson, who is leading a quixotic fair-use defense in the Tenenbaum P2P case in Boston. Nesson and Camara are also defending another P2P defendant and university student in UMG v. English in U.S. District Court, Cleveland, in a case filed in March. The lawyers are asking the court there to declare unconstitutional statu- tory damages of $150,000 per work and force the RIAA to return the damages it has collected from its “unlawful campaign,” which they claim exceed $100 million. International Progress is being made toward pan-European online music licensing, European Competition Commissioner Neelie Kroes said Tuesday. A report by the Online Commerce Roundtable that she set up in September 2008 found that major players in Internet music distribution are willing to deal with the barriers to consumers’ enjoyment of content offerings, Kroes said. SACEM, a French collecting society, said in principle its agreeable to pan-European licensing of its repertory to other collecting societies, she said. And she said EMI is ready to allow rights managers to offer its catalogue for the whole European Economic Area. Apple said that if iTunes can readily license rights on a multiterritorial basis from publishers and collecting societies, it will consider making its content available to all European consumers, including those in countries where iTunes isn't now available, she said. Kroes encouraged players to quot;move quicklyquot; toward online licensing accords. Comments on possible licensing systems for online music distribution are due June 30 -- Comp-Greffe-Antitrust@ec.europa.eu. --- Australia’s first criminal copyright case to go to a verdict has ended with a finding of guilt. Jurors found against Yong Hong Lin on 15 of 31 charges, said Music Industry Piracy Investigations and the Australian Federa- tion Against Copyright Theft. A raid of a store that Lin owns found more than 16,000 unlicensed movie and music discs from illegal Chinese manufacturing plants, plus “illegally burnt discs produced locally,” the groups said. Lin will be sentenced Aug. 21 to as much as five years in prison and a $60,500 fine for each offense. --- A charity single recorded by Italian artists to help victims of the April 21 earthquake in L’Aquila has been illegally uploaded, said the International Federation of the Phonographic Industry. Three people in Rome and Milan accused of uploading “Domani 21/04.09quot; have been arrested by the Italian Fiscal Police. The artists on the track, made available through DirectConnect and file-hosting services including Rapid- share, include opera singer Andrea Bocelli. Police seized hard drives with 1,300 GB of music files, the fed- eration said. The suspects face up to four years in prison and administrative fines. The federation estimated that the uploading cost one million euros in sales. --- Rogers Cable said it’s increasing the download speeds of its two most popular broadband offerings this week. Express package speeds will rise 43 percent to 10 Mbps. Lite will triple to 3 Mbps. “Our cus- tomers tell us that speed is one of the most important attributes of their Internet service,” said Chief Market- ing Officer Steven Wagner. --- Virgin Media is using Motorola gear to provide broadband speeds of up to 50 Mbps and can raise them to as much as 200 Mbps, Motorola said. It said the U.K. cable operator is the first ISP there to deliver “ultra fast broadband speeds.” Separately, Motorola said Telia Stofa will use the company’s EuroDocsis 3.0 cable modem for super-fast broadband in Denmark. The terms of the deals weren’t released.
  7. 7. WEDNESDAY, MAY 27, 2009 WASHINGTON INTERNET DAILY—7 Privacy Last.fm is fighting back hard against new claims from tech blog TechCrunch that Last.fm parent CBS, not the unit itself, violated European data protection laws by handing over Last.fm user data to the music industry to track leaks of unreleased tracks (WID Feb 24 p6). The playlist and streaming site's fans are urging it to take legal action against TechCrunch under the looser defamation laws of the U.K., where Last.fm is based. TechCrunch founder Michael Arrington said Friday that the site's original inside source had been fired from CBS and quot;threatened with legal actionquot; for leaking the news. A new source who has spoken to Last.fm employees confirmed what the first source said quot;before CBS lawyers became involved,quot; Arrington said -- that CBS got the quot;scrobblingquot; data from Last.fm under false pretenses and passed it to the RIAA or possibly one or more record labels. Last.fm tracks scrobbling, song playing on PCs, to develop user recommendations and feed to a user's friends. quot;We be- lieve ... that CBS lied to usquot; about not sending or intending to send user data to record labels, quot;and that they subse- quently asked us to attribute the quote to Last.fm to make the statement defensible,quot; Arrington said. quot;Last.fm's de- nials were, strictly speaking, correct, but they ignored the underlying truth of the situation.quot; Arrington offered the fired CBS employee free legal help to challenge CBS through whistleblower protection laws. Last.fm developer Russ Garrett agreed with Arrington over the weekend that such a transfer would violate EU laws, as Last.fm is based in London. quot;Nobody at Last.fm knows anything about such a leak,quot; said Garrett in a post on Last.fm's user forums. It's quot;just not possiblequot; that CBS could have obtained IP address data, which is quot;controlled tightly inside Last.fm and is only stored for a short period of time. Any request for such data would have to be approved by my- self first,quot; Garrett said. CBS more recently denied ever having given Last.fm user data to any third party, he added. quot;I think someone is taking [TechCrunch] for a ride.quot; CBS and Last.fm should clarify any points that TechCrunch is wrong on and stop issuing quot;blanket denials,” Arrington said in a follow-up post. “We have e-mails from Last.fm and CBS employees that are saying quite the opposite from what you are.quot; Last.fm continues to direct inquiries to its outsourced public relations firm, he said. quot;We remain open to on or off record conversations with Last.fm, which has been our position throughout this story. The phones are ringing. They're just not answering.quot; Security An application-virtualization provider designed a “sandbox” for P2P software LimeWire to protect sensitive information from being accidentally shared by LimeWire users. Xenocode said its P2P Sandbox runs LimeWire through the Web, instead of its own software, “eliminating the danger of inadvertent leaks of confidential informa- tion.” The company noted the leak of Marine One blueprints through unnamed P2P software in March (WID March 3 p3). Xenocode’s application is free to download at www.xenocode.com/p2p. Industry Notes Nokia on Tuesday started its Ovi application store available online to more than 50 of the companies’ de- vices including the forthcoming N97. AT&T plans to make the Ovi Store available to its U.S. customers this year. Early reviews by some bloggers called the store disappointing. Nokia acknowledged performance problems in the operation. “We immediately began to address this issue by adding servers, which resulted in intermittent perform- ance improvements,” said Eric John, head of Ovi product marketing. --- The telecom industry could get a major boost from Amazon's Kindle and other new revenue sources, Niel- sen analyst Roger Entner said Tuesday. The Kindle quot;has been touted as a savior for the newspaper industry,quot; but it quot;also represents the first example of the long-predicted ad hoc subscription model for Sprint, which provides the wireless access for Kindle as subsidized by Amazon,quot; he said. Kindle sales accounted for most of Sprint's 394,000
  8. 8. 8—WASHINGTON INTERNET DAILY WEDNESDAY, MAY 27, 2009 wholesale subscriber additions in Q1, Entner said. But he said that because the Kindle is included in Sprint's over- all subscriber numbers, quot;the carrier will see pressure on its average revenue per user (ARPU) numbers going for- ward if ad hoc subscriptions become a significant business.quot; He estimated the Kindle quot;may only represent $2 ARPU,quot; versus about $56 for Sprint quot;postpaidquot; subscribers who pay monthly bills for service. Prepaid subscribers are increasing for all carriers, Entner said. But AT&T's quot;strong postpaid growthquot; in Q1 this year quot;was built pre- dominately around the successquot; of Apple's iPhone, he said. AT&T had 875,000 postpaid net additions in Q1, about 82 percent iPhone customers, highlighting AT&T's quot;increasing dependencyquot; on Apple's device, he said. --- A Russian investment firm dropped $200 million on Facebook, valuing the company at $10 billion, Face- book said Tuesday. Importantly for Facebook, Digital Sky Technologies only received preferred stock, not a board seat or “special observer rights,” a demand that has reportedly frustrated investment proposals from other suitors. The firm is also planning to offer to buy $100 million or more of Facebook common stock from existing sharehold- ers, which would “facilitate liquidity for current and former employees’ vested shares in the company,” Facebook said. CEO Mark Zuckerberg said 70 percent of Facebook users are outside the U.S. and DST’s proposal was con- vincing because of the “impressive growth and financial achievements of their Internet investments.” DST CEO Yuri Milner gave Facebook a much-needed ego boost about its moneymaking prowess, saying the company’s “user growth and performance, technological innovation and financial performance” show that it’s creating “tremendous value” around the world. DST holds significant interests in Mail.ru, from which Milner hails, as well as Forticom and vKontakte. Its assets account for 70 percent of page views on the Russian-speaking Internet, DST said. Internet People American Association of Independent Music board changes: Jim Cooperman, Wind-up Records, and Portia Sabin, Kill Rock Stars, join; Tom Silverman, Tommy Boy Records, and Amaechi Uzoigwe, Definitive Jux, leave under term limits ... 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Senior Editor Michael Taliaferro . . . . . . . . . . . . . . Managing Editor Mark Seavy . . . . . . . . . . . . . . Senior Editor Gaye Nail . . . . . . . . . . . . . . . Assoc. Managing Editor EDITORIAL & BUSINESS HEADQUARTERS Jeff Berman . . . . . . . . . . . . Senior Editor Susan C. Seiler . . . . . . . . . . . . Asst. Managing Editor 2115 Ward Court, N.W., Washington, DC 20037 Kari Danner . . . . . . . . .Sr. Editor & Editorial Supervisor Razia Mahadeo . . . . . . . . . . . Editorial Asst. Phone: 202-872-9200 Fax: 202-318-8984 Colleen Crosby . . . . Sr. Editor & Editorial Supervisor Barry Fox . . . . . . . . . . . . . Contributing Editor www.warren-news.com Bob Dwyer . . . . . . . . . . . . Senior Research Editor Laura Heller. . . . . . . ……. . . . . . Contributing Editor E-mail: info@warren-news.com Marla Shepard . . . . . . . . . . . . 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