Britain “not in a position” to prevent Olympics match fixing

Experts have expressed their concerns that match fixing and sports fraud will pose a serious threat to the London Olympics, which are due to start this Friday in the British capital, since gambling businesses based offshore cannot be obliged to share information with sporting bodies, the UK Gambling Commission or the London Organising Committee for the Olympic Games (LOCOG).

Mike Morgan, of Squire Sanders, explains “the UK Government is not in a position to compel operators that fall outside of its jurisdiction to share information”, and the Government “can scarcely be blamed for the activities of offshore operators and bookmakers that fall outside of its jurisdiction”. He points out “more has been done to combat the specter of sporting fraud in preparation of these Olympic Games than any other”.

John Cloke, an Associate at DLA Piper in London, does foresee issues since “those who would seek to manipulate events are more likely to place their bets with bookmakers in a less well-regulated market.” London-based Andrew Danson, of K&L Gates, also stresses that “no [UK] legislation could obtain information from black market operators”.

The industry, meanwhile, has taken its own measures. Because of the “limited jurisdictional reach of the UK parliament”, as Cloke calls it, a number of betting companies issued a statement of intent on 26 June, pledging to report all unusual betting patterns to the Gambling Commission, to not knowingly take bets from anyone accredited by the International Olympic Committee (IOC), to offer a 24-hour reporting service, and suspend any bets if ordered to do so by the Gambling Commission.  

No doping test for corruption

Morgan called the statement “a commendable initiative” and thinks it “may well act as a deterrent from any individuals who seek to defraud the betting markets by manipulating a sporting event”. However, he stresses “that not all acts of sporting fraud are intended to defraud the betting markets. The aim may simply be to ensure a higher standing for a team or an individual. In such event, betting patterns are unlikely to reveal any suspicious activity.” Danson agrees: “Unfortunately, there is no doping test for corruption.”

Last January, it was announced that the IOC, the Gambling Commission, the Metropolitan Police, the UK Border Agency and a number of gambling operators will meet on a daily basis during the Games, to detect suspicious betting patterns, and to evaluate whether any athletes are intentionally underperforming for personal gain.

Michiel Willems © 2012 CP Publishing Ltd. Picture: TheRightAngle.co

Experts not impressed by EU’s single patent system

Leaders of the European Union agreed on 29 June to create a single EU Patent System and to establish a European patent court, which will be headquartered in Paris with two specialised divisions in London and Munich. Most industry experts, however, have expressed their disappointment and concern about the deal.

Although Hiroshi Sheraton, of McDermott Will & Emery in London, called the agreement “a major breakthrough, after over 40 years of failed negotiations and discussions”, Mark Owen, of Harbottle, classified the document as “a huge piece of Euro-fudge. A solution which no-one can possibly think is perfect, or even nearly good enough.” 

James Boon, of Bristows, stressed “it is possible that in practice the new regime will encourage businesses to move out of Europe.”

“Having an EU wide trade mark and not having an EU wide patent is a weird position under EU intellectual property law, but whether creating one is a positive move, I don't know,” said Vanessa Barnett, Partner at Charles Russell in London.

The new European patent system should make it “cheaper” to get patent protection with unitary effect in most EU Member States and “the single court will allow disputes to be resolved once and for all for the entire continent, except Spain and Italy,” said Sheraton. “It will avoid complex, expensive and potentially conflicting multi-national litigation across different EU states.”

However, Boon said about the cost saving argument it is “likely to hold true for companies wishing to apply for a patent in a large number of states, but the new unitary patent may be no cheaper than applying for a European Patent and designating two or three key territories.” Owen went even further and called the “current solution a recipe for confusion and expense, precisely the two things the whole exercise was supposed to avoid.”

Owen fears “the EU patent will be too fragmented from the very start. The trouble is that engagement with the issue by politicians, national IP offices and the relevant professions has all come too late, and as a result reason and sense have been sacrificed.” Barnett does not think “an EU patent court would have sufficient depth of specialist judges or technical expertise resources to be able to deal with the range and volume of patent claims.” 

The European Parliament is expected to vote in the next few months on the agreement of the Council of Ministers.

Michiel Willems © 2012 CP Publishing Ltd. Picture: Redicecreations.com / IPBrief.net / IPJur.com

Interview: Jake Berry MP

Michiel Willems spoke to Jake Berry, Member of Parliament for Rossendale and Darwen, and a former City solicitor, on the government’s role in developing and regulating the mobile phone industry, broadband issues and the future of the UK’s online infrastructure.

Jake Berry MP

How do you see the future of the mobile phone in the UK?
Already great strides have been made with the availability of many ‘apps’ giving mobile phones the flexibility of being more than just a communication tool. Indeed, one of the newer apps is to summon a taxi and have it arrive within minutes that takes you to the destination you have programmed and finally charges the cost to a credit/debit card and emails the receipt to the passenger.

What should happen to give mobile payments a breakthrough with the mass audience?
It is down to the banks and retailers to make a breakthrough with the mass audience. Without the participation of the majority of retailers and all banks it would not be viable. Costs and security issues would also have to be taken into account. As banks, retailers, phone manufacturers and many others are involved, there needs to be a common set of protocols and standards.

Do you think the current government is giving the telecoms industry the space to grow and develop?Yes, the British Government is undertaking a wide-scale review of the regulatory framework supporting the communications sector. The aim is to strip away unnecessary red tape and remove barriers to growth. The wider public interest will underpin the way we address these issues.

Do you think the Government should regulate the mobile industry more?
The Government is committed to the principle of independent regulation and will ensure that Ofcom has the right powers and duties to work in a way that gives businesses confidence in the regulatory system. It is crucial that the Government implements a deregulated framework suitable for the digital age and properly oriented towards growth is required in order to take account of the rapid pace of change in new communications technologies in the last few years.

How do you see the future of the internet?
Many of the most dynamic developments in broadband are in wireless devices and the development of very high data rates in mobility. Whether in the home or outside, consumers are enjoying services and content over devices which connect wirelessly.

Could give an example?
Grant Shapps MP, Minster for Housing, is calling on every social landlord to look long and hard at how they can help their tenants get online, from offering networks of public internet cafes to providing the technology to log on at home. The Minster for Housing said internet connectivity is considered by many to be the fourth essential utility, and should be a necessity, not a luxury. The Government is committed to helping demolish the unacceptable digital divide that is blocking social mobility for millions of council tenants.

Will the UK infrastructure be able to cope with increasing data demands?
The current Mobile networks were engineered to support a real-time voice service which supported roaming between cells. Today, devices such as Apple’s iPhone and iPad make very different demands on the network infrastructure, requiring operators to meet customer expectations of mobility, but with rapidly growing demands for data downloads.
Broadband infrastructure investment is vital in supporting the overall growth agenda. Rural and remote areas of the country should benefit from this infrastructure upgrade at the same time as more populated areas, ensuring that an acceptable level of broadband is delivered to those parts of the country that are currently excluded. Infrastructure sharing and new overhead deployment can play an important role in delivering superfast broadband that meets increasing data demands.

Do you embrace the concept of net neutrality?
Yes. The Internet has brought huge economic and social benefits across the world because of its openness and that must continue. Technology neutrality will be an essential criterion, as we believe a mix of technologies will be needed. It will be important that Government maintains its commitment to technology-neutral solutions for broadband.

Thank you for your time.

Jake Berry - Member of Parliament for Rossendale and Darwen
House of Commons
Twitter @jakeberryMP


Michiel Willems © 2012 CP Publishing Ltd. Pictures: Conservativs.com / Blackburnlife.com

Snooping, sharing and shifting

Many offices around the world sent their employees an urgent message on 6 June: ‘Please change your LinkedIn password immediately’, as the news spread that millions of accounts of the professional networking website had been hacked. 

Nearly 6.5 million LinkedIn passwords ended up in the wrong hands and were posted on an online forum by cybercriminals. And it was not only LinkedIn that was a victim of a the latest data security breach; the online dating website eHarmoney also admitted that nearly 1.5 million of its passwords had been stolen and music website Last.fm also suffered a major password leak. 

Although the three companies invalidated the embezzled passwords and they were quick to send out instructions to their affected customers telling them how to reset their accounts, the damage had been done. Analysts say it is not unlikely that criminals have scrutinised and copied millions of accounts and will try the same passwords – in combination with the corresponding usernames, usually email addresses – on other popular websites, such as Gmail, Hotmail, Twitter and Facebook. After all, many people use the same email address and password for a range of websites.

Who is snooping?

Obviously, it was not LinkedIn’s best month since the company launched 10 years ago. And the password leak sent shudders through the industry: if this can happen to such a big and popular website, who says it won’t happen to smaller, less well-protected players?

Experts, meanwhile, are convinced the internet is increasingly becoming a dangerous data jungle. Data is being copied, transmitted and passed on to advertisers, credit card details are being sold, twitter, hotmail and gmail accounts used to send round viruses and spam, while login details are publicly available online. 

Without trying to scare away the average internet user, many fraud experts do admit protecting your login details and other sensitive data has become more difficult than ever before in the history of the internet. The number of cyberattacks, tens of thousands each single day, are quickly increasing and, worryingly, consumers are mostly not even aware an attack has taken place or data has been stolen or shared without their consent. Mass hackings like the users of LinkedIn and eHarmony experienced at the beginning of June are rare and do make headlines, but many industry experts warn about all those smaller attacks you never hear about. Who is snooping, sharing and shifting is increasingly becoming one big blur. Keeping the same password for months on end has become a convenience one cannot longer afford.

 

Michiel Willems © 2012 CP Publishing Ltd. Picture: IBNLive.in.com / Original Artist 

Payment integration under pressure as Europe battles with Eurocrisis

LONDON - The financial crisis and the uncertainty about the future of the Euro put progress of ambitious European payment integration plans, such as the Single European Payments Area (SEPA), increasingly under pressure. 

"The Spanish bail out and discussions about deeper Eurozone integration may slow down SEPA," said Michael McKee, Partner at DLA Piper in London, while Mark Taylor, Partner with Hogan Lovells, thinks that “the focus and priority of regulators and governments is inevitably drawn elsewhere. There is a risk that this may lead to a slower rate of progress.”

According to Nathalie Moreno, of Speechly Bircham, “the impacts of increased lending and bailouts to keep the Euro afloat will surely affect the ability to make a certain decision on the future of SEPA”.
To make SEPA a success “we surely would need to ensure we have a Euro”, said Gareth Lodge, a Consultant at Celent. McKee agrees with Lodge: “There is no question that the SEPA project is fundamentally tied up in the future of the euro itself."

The crucial role that banks play in the development of SEPA raises concerns since “those banks who have heard of SEPA, and an alarming number still have not, are placing big bets as a way of capitalising on their strengths and their competitors weaknesses. Whilst others are simply trying to survive the month”, said Lodge. 

Euro in jeopardy?

Regarding the EU Green Paper, published in February and calling for an integrated market for card, internet and mobile payments, Moreno believes that “as the markets fragment more it is difficult for many to reconcile a unified approach to enable efficient cross border payments”.

“SEPA is more and more political”, said McKee. That is “why the Green Paper raises issues about mandatory completion times and about SEPA governance; a coded threat that the Commission, European Central Bank and Member States want to wrest more control of the [SEPA] project from the banking industry." Moreno agrees with McKee: “There is a worry that regulatory intervention could hamper the banking sector’s competitiveness in the global marketplace and also lead to the lack of development and innovation in this space.”   

There are also concerns whether the SEPA migration deadline of February 2014 is still realistic: “There will be more than a handful of banks and corporates who will miss the deadline. The questions then are how many, by how much and how long are they given,” said Lodge.

Michiel Willems © 2012 CP Publishing Ltd. Picture: Arcus.org / baltic-review.com

Interview: Lin Junqiang, of the Chinese Central Government

As the online commerce market in China is rapidly expanding, businesses and consumers are demanding an update of the country's complex regulatory framework. A range of decrees, regulations and provincial frameworks are currently in place, regulating issues such as domain names, internet surveillance and monitoring, electronic signatures, telecommunications, online content control, contract law, IT security, internet access and copyrights.

Although the need for an update to the existing rules, and one central law, is rapidly growing, the complex legal framework that regulates e-commerce activities in China will not be updated “for another five years”, according to LIN JUNQIANG, Deputy Director of the Information Centre at the Industry and Commerce Ministry, part of the Chinese Central Government in Beijing. JUNQIANG spoke exclusively to Michiel Willems in Shanghai.

How are e-commerce activities in China regulated?
Although there is no specific e-commerce law, other laws are suitable and provide a framework for e-commerce. The Government and the provinces have the right to make different regulations for different provinces. The most difficult aspect of monitoring online business is being able to get evidence to prove an online business is providing fake products, as people can easily withdraw their site and online registration. 

Copyright is a big issue in China, and the rest of the world, indeed. What action has been taken to tackle copyright infringement?
Let me give you an example, the illegal Beijing market has been closed so there are no fake products being sold there now, although there are still fake products online.

Are internet service providers responsible for the websites they offer?
Providers of internet connections have a duty to assist the Government, to close websites if the Government asks them to, but internet service providers cannot do the job alone as it is very difficult to monitor the whole online space.

What does the Chinese Government monitor?
That is the most difficult issue right now. We are currently trialing an approach in a number of different provinces. The approach is aimed at making sure that all citizens’ online registration details are correct. We will then spread this approach across the nation gathering correct online registration information to a central government database, at which point we will gather feedback on the approach.

Are there rules for online advertising in China? And what happens if an advertiser goes too far?
There is no law on this matter, but we do have e-commerce institute regulations that deal with these issues. If an advert goes too far then the advertisement law applicable to traditional ads will be applied to the online ad and the Government will get involved.

And what happens then?
There are several steps to take: a warning is given to pull the advert offline, a fine or penalty can be issued and if that does not work, the issue can go to court and the offender sued.

What about personal information being shared and sold to advertisers?
China is different than the UK. Information protection is not a duty of the Chinese Government. Banks and similar institutions are responsible for protecting consumer data and the technology to do so is advanced. The Government has two roles in protecting private information. Firstly, it develops laws to protect private information, and secondly, the Government will take action against companies that disclose private information, which occurred recently on a national scale.

How does the Government deal with cyber crime?
The Chinese Government does not have a duty to protect personal information; third parties have that duty. Neither does the Government have a duty to guarantee the safety of a website.

If a product bought online is delivered to a consumer’s home and it turns out to be faulty, do any laws protect the consumer?
In China the payment method protects the consumer. A third party keeps the money during the transaction so if the product is faulty the money will not go to the supplier but back to the customer. There is also another way to pay, once a product is bought online a delivery driver brings the product to the customer who then checks the product and if they are happy with the item, they pay the delivery driver who then passes the money on to the supplier.

Is the spur for the new e-commerce legislation in China due to the rise in e-commerce or a reactionary move due to the problems faced by illegal online activity?
A bit of both. The Government wants to develop a new e-commerce law because of the fast increase in e-commerce and with that the increase in e-commerce related problems. Chinese businesses see a rise in law suits and there are more and more user complaints.

I understood you have been on a number of business trip recently, to learn from other countries?
That is right, China has started looking at other regulatory systems around the world to learn.

Which countries are you looking to learn from?
In the last twelve months we visited Japan, Germany, the UK and the US to research the approach to e-commerce regulation. E-commerce is more developed in Germany and the UK than elsewhere in Europe. The law systems are different, so we made sure we went to developed countries to learn from them.

And what were your findings? Are there lots of differences between the countries?
Certainly, we noticed a lot of differences. While the US has a very general, broad system, Japan is very detailed. There are common problems. Comparatively the US has a much more general framework than Japan and Korea, who have more detailed and strict legislation. Japan is very detailed, the US is more flexible.

So, would China lean towards a more strict or flexible model?
Related to our constitutional system we would go for a more detailed approach. China will opt for a more detailed framework, based on the Japanese model but then with a Chinese approach.

When do you expect to have the legislation complete?
Not for a long time. In China, we first make the regulations and then the law. It will take a long time, at least another five years. In the meantime the regulations can control the situation until the law is ready.

So the regulations will be temporary until you have developed the law?
We will keep the regulations until the law is made. If some regulations are in conflict with the new law, the regulations will be scrapped.

How do you see the future of the e-commerce market in China?
There is a developing trend in e-commerce across the globe. All countries are facing the same sudden increase, so it is necessary to develop nationwide regulation to control the illegal behaviour that comes with this increase. We are currently researching e-commerce and the regulations in countries like the UK to complete this business area. The Chinese Government is trying to find technical methods to solve these problems and that is why we are communicating with people in the UK who are doing the same job and who are facing the same problems.

Thank you for your time. 

Michiel Willems © 2012 CP Publishing Ltd.Pictures: Globalfirepower.com / Wired.com/images_blogs / ecommercesg.org / Socialnomics.net / Mozy.com

China in need of new laws as “monitoring the internet is very difficult”

SHANGHAI - The complex legal framework that regulates e-commerce activities in China will not be updated “for another five years”, according to Lin Junqiang, Deputy Director of the Information Centre at the Industry and Commerce Ministry in Beijing, who spoke exclusively to Michiel Willems in Shanghai. 

Junqiang said “it will take time” before China will have agreed on new legislation. Although the Chinese Government is planning to “bring in a new law, as there is currently no [central] law”. Junqiang stressed “this will take time” and any new “legislation will not be ready another five years”.

Currently, a range of decrees, central government regulations and provincial frameworks regulate issues such as domain names, data protection, consumer rights, electronic signatures, telecommunications, online content, e-contracts, IT security, internet access and copyrights. As the Chinese market is expanding rapidly, a growing number of businesses, consumers and investors are demanding an update and simplification of the country’s complex regulatory framework.

Junqiang said a new law is needed because “China is facing a range of challenges. The current regulations can not keep up with the rapidly evolving technology. Chinese businesses see a rise in law suits and there are more and more user complaints.”

Therefore, China has started “looking at other regulatory systems around the world to learn”. In the last twelve months Junqiang and a delegation of government officials have visited Japan, Germany, the UK and the US to research the  approach to e-commerce regulation. “We noticed a lot of differences”, said Junqiang. “The US has a much more general framework than Japan or Korea, Japan is very detailed.” China will opt for “a more detailed framework, based on the Japanese model but then with a Chinese approach”, Junqiang said, adding that this is necessary because “monitoring the internet in China is very difficult”. 

Junqiang stressed that “internet service providers have a duty to assist the Government.” Service providers in China “have to close websites if the Govermnent asks them to, but providers alone cannot do the job as it is very difficult to monitor the whole online space.”
Junqiang said that, until the new law is ready, “the [current] regulations can continue to control the situation”.

Michiel Willems © June 2012 CP Publishing Ltd. Picture: Chinese-flag.org

Cash payments in UK more common in 2011

Consumers are increasingly using cash to make payments in store in order to keep track of their spending, the British Retail Consortium (BRC) said on 8 June. 

“Customers are more likely to be paying with cash”, said Tom Ironside, Director Business and Regulation at the BRC. “They have less money. They are buying things only as and when they need them, and spending less each time.”

The use of cash in 2011 was up by 5.7% compared to 2010. The BRC based its figures on 9.5 billion transactions in British shops. Tom Ironside: “In 2010 financial worries were putting people off running-up debt and they turned away from cards. Now times are even tougher.”

The figures come only weeks after the Court of Justice of the European Union, on 24 May, rejected a legal challenge by MasterCard that the European Commission’s decision to classify cross-border transaction fees as uncompetitive. The fees are charged by a cardholder's bank to a merchant's bank for each card transaction. MasterCard had agreed to lower its charges in 2009 but the EU Commission believed Mastercard had not gone far enough. 

Michiel Willems © 2012 CP Publishing Ltd. Picture: News.bbc.co.uk

Interview: Norman Lamb - UK Minister for Employment Relations, Consumer and Postal Affairs

Norman Lamb MP

Following the adoption of new consumer rights rules in Brussels at the end of 2011, the British Government is preparing for a major overhaul of the country’s consumer rights regime. Countries have until late 2013 to implement the the new European Union guidelines. Michiel Willems spoke to Norman Lamb MP, the UK Minister for Employment Relations, Consumer and Postal Affairs and Member of Parliament for North Norfolk, about what the new consumer rights regime in Britian will look like. 

The European Union has ordered Britain to establish a new consumer rights regime. What are your plans and how will consumers’ rights be protected online?
Lamb: The EU's Consumer Rights Directive will be implemented as part of a broader package of reforms designed to clarify and simplify the consumer rights regime as a whole. The European rules will protect consumers online in numerous ways. For example, the withdrawal period, within which consumers can change their mind about an online purchase, will be extended from 7 to 14 days, any obligations to pay will be made clear and explicit, and there will be a ban on pre-ticked boxes and disproportionate surcharges for using specific payment methods like credit cards.
Premium rate telephone lines for consumer follow-up calls will be prohibited and there will be clearer and more up-to-date pre-contractual information requirements, ensuring that consumers know exactly what they are buying, and who they are buying it from, when shopping online.

What changes will there be to help customers with faulty goods?
Lamb: In addition to the changes imposed by the CRD, new amendments to the laws regarding faulty goods will also increase protection for consumers. The short-term time period for returning faulty goods will be clarified and, after that, the number of failed repairs or replacements that consumers have to put up with before receiving a refund will be limited. This will make the whole redress process clearer and easier for consumers to understand when faulty goods are bought in any context, including online.

How will the law change to accommodate buying digital content online?
Lamb: The law will also be updated to protect consumers when purchasing digital content online. Consumer rights in connection with digital content, such as music downloads or streamed video, are currently highly uncertain. The changes will clarify how the law applies to digital content, providing a clear set of quality standards and workable remedies, enabling consumers to get appropriate redress.

While reducing red tape, how will you ensure that consumer rights are respected and guaranteed?
Lamb: We need a really robust framework of consumer rights if we are to achieve the consumer confidence we need to support strong economic growth. That’s why maintaining a high level of consumer protection is at the heart of our plans so that the right laws are in place to tackle rogue practices. But confusing consumers and businesses about their rights and responsibilities can cause expensive and unnecessary disputes, which is why we also need to cut business costs by tackling the complex state of our current law. 

Thank you for your time.

Norman Lamb MP
Minister for Employment Relations Consumer and Postal Affairs 

Normanlamb.org.uk

Michiel Willems © 2012 CP Publishing Ltd. Picture: Norman Lamb's Office.

Changing the face of television

A row has erupted in the United States over a set-top box that allows viewers to skip adverts in recorded television programs. America’s three largest broadcasters – Fox, NBC and CBS – have filed individual lawsuits against Dish Network, America’s second largest satellite broadcaster and the maker of the set-top box, in a court in Los Angeles.

At the beginning of 2012, Dish Network launched its new digital video recorder called ‘The Hopper’, but only recently, on 10 May, an ‘auto hop’ application was added, which allows viewers to skip commercials that interrupt their recorded shows. The broadcasters claim ‘hopping’ is against the law because the device turns the recorded show into an unauthorised version of a program that is copyrighted. Fox said the legal effect of ‘The Hopper’ should be classified as ‘re-broadcasting’ and is therefore infringing the channels’ copyrights. Fox Spokesman Scott Goggin even added The Hopper could end up “destroying the fundamental underpinnings of the broadcast television ecosystem”. 

Dish on the other hand claimed in its countersuit ‘this case is about freedom of consumer choice; individual families’ choice to elect, if they want, to time-shift their television viewing and watch recorded television without commercials’. Around eight million Dish subscribers in the US currently have the ‘ad hop’ recorder, which represent only 6% of the broadcast market in the US. Industry experts, however, were not surprised by the broadcasters’ fierce reaction to The Hopper. Their biggest fear is the technology will spread to other operators.

Devices like these and the rise of online TV are seen as huge commercial threats for traditional television stations. If technology such as Dish’s top box were widely deployed, some industry experts believe that could mean the beginning of the end of advertising on non-live, prerecorded shows, which count – by far – for the most hours of mass audience television. It would send shockwaves through the advertising industry and broadcasters would lose millions, if not billions, in revenue. After all, who is going to pay for expensive television commercials if consumers can easily skip them?

Despite the broadcasters’ efforts, many television and media experts think it is safe to say that – in the long run – this development is inevitable. The Hopper has illustrated that technology is catching up with existing television advertising models and copyright lawsuits will merely delay, not halt, a new, more advanced era of watching television: what you want, when you want it, where you want it. Dish has shown us that the current television models will no longer hold. As a result, existing broadcasters will need to innovate quickly and efficiently if they want to keep up with the technological advancements transmitters, competitors and consumers are taking advantage of. 

The most logical solution for television networks might be to ‘saturate’ television shows with product placements and endorsements, instead of running separate advertisement slots. After all, even technology cannot ‘cut out’ those commercials. Although many countries, in particular European governments, are very reluctant to allow sponsored television, broadcasters are increasingly indicating advertisements in game shows and movies are necessary to make up for lost revenues. Otherwise, retransmission fees will rise and those costs will be ‘hopped on’ to the consumer. The competition from TV stations that operate solely online, the so-called ‘catch up’ services, movie websites as well as devices like The Hopper is simply too big. The District Court in Los Angeles is expected to make a decision in the next few weeks, so stay tuned for a case that may well change the face of television.

Michiel Willems © June 2012 CP Publishing Ltd. London, UK. Pictures: ColleenHammond.com / tvmediainsights.com / ScanToBuy.co.uk

Playing means paying

More and more Europeans turn to their mobile phone to play a game or – if their national laws allow them to – place a bet. Even guests of certain hotels in Nevada can place bets on their phone since last September, which is pretty unique considering online gambling is still strictly forbidden in the USA.

Undoubtedly, the rise in mobile gaming is being propelled by the popularity of smartphones. The entertainment value of mobile games has increased significantly, since mobile games evolved from simple, pre-installed games to challenging and visually attractive forms of entertainment. Gambling operators as well as mobile phone companies are currently making huge efforts to be at the forefront of what is considered to be the next commercial battle. Many are investing in mobile apps, innovative software and mobile phone technology to make sure they will be part of this growing market.

The increasing use of mobile games, however, does mean they will be subject to more scrutiny by regulators and other relevant parties, not to mention the rapid increase in lawsuits against businesses in the mobile gaming sector; legal cases that affect both developers and platforms. Until a year ago, patent infringement cases were mostly limited to legal battles between the biggest industry players, such as the ongoing battle between Samsung and Apple. This is, however, no longer a realistic assessment of the current legal situation in the market.

A growing number of companies are considering legal action against game and app developers, who are becoming more and more aware that intellectual property rights need to be taken into account when developing a gaming app. Copyrights, patents and trademarks are increasingly a headache for developers and businesses, not to mention the  data protection issues that have arisen as well as advertising and marketing rules and guidelines developers and businesses need to stick to. 

All this means a rapidly growing client base for many law firms, especially for those practices that offer gambling and gaming, data protection and TMT advice. And one is talking about some of the biggest companies in the world; mobile phone companies, banks, investors, gaming businesses and payments processors who see the opportunities and have recognised the commercial outlook. The market seems to be on a high, as one industry lawyer pointed out to me recently: “the more people play, the more our clients pay”.

Michiel Willems © May 2012 CP Publishing Ltd. London, UK. Pictures: Myfacetwit.com / Sodahead.com

Banana Tree: an Indolicious stop in Mayfair

Recently me and my other half headed into London’s West End for a meal on the town. While gallivanting past our usual haunts, such as The Stockpot, Balans, Amalfi and Browns we crawled out of our comfort zone and decided to try something new. At the end of Old Compton Street, we turned right onto Wardour Street where Soho turns into Mayfair and a range of appealing and alluring restaurants can be found. 

Although Byron immediately attracted my attention because of the good vibe and its lively crowd (especially for a Tuesday night), the menu was simply off-putting. The place offers hardly any choice and the cook seems to have an unrestrained obsession for beef, resulting in a menu consisting of chicken burgers, veggie burgers and beef burgers. So, undoubtedly, if you are looking for a decent quality burger this is certainly the place to be, but if a slightly more sophisticated kitchen it is you are after, it would not hurt to try another popular joint a few doors down the road, namely the much more appealing eatery of the Banana Tree, part of a chain of six restaurants throughout London, it offers an authentic selection of dishes and specialties from the Indochina region.

The grand but personal room is a designer-free zone with its shiny, wood-grain tables and black brick walls on one side (with a huge image of what is most likely rush hour in Vietnam) while the other half of the restaurant has a more serene and light ambiance to it. The place breathes trendiness and modernity, and it certainly has a proper ‘city’ feel to it. We were seated at a table in the centre of the restaurant where we could soak in the lively, vibrant atmosphere created by a loud, outgoing audience, without being too much in your face. The restaurant fills up quickly but the noise is not unrelenting: it is not necessary to shout in order to make yourself heard, while one can easily hold a private conversation without being overheard.

While studying the trendy brown and black menu card, which had a bit of an exotic touch to it, we were overwhelmed by the excellent, original choices. The menu invites its customers on a culinary tour through the region of South East Asia, offering all the best that Vietnam, Thailand, Malaysia and Singapore have to offer. What about ‘a four hour meltingly tender stew with star anise, closed, cinnamon and galangal, prepared with a Vietnamese slant, using coconut water to sweeten the sauce’, or the Gaening Keo Wan, which goes down as an ‘aromatic Thai curry cooked with green spice paste, sweet basil, lime leaves, peppers, bamboo shoots and coconot milk’; finger licking descriptions that certainly got us mouthwatering. I decided to play it safe and ordered the ‘chicken lemongrass, turmeric and coriander’, while my other half opted for the roasted duck breast with Pei Pa Hoisin Sauce, as recommended by William Chow, the founder and chef of Banana Tree. In next to no time the polite waitress brought us a bottle of their decent house red, a French Jacques Veritier.

Soon – perhaps slightly too rapid – the food was brought in and really got our taste buds going. The unpretentious portions were faultlessly presented and staff checked on us to made sure we were satisfied. My chicken was sweet with a delicious spicy aftertaste that made you long for the next gnaw. The savory and aromatic sauce, consisting of lemongrass, coriander and turmeric, was complimented with peanuts, peppers and oriental veggies. The ‘added dash of fish sauce’, as stated on the menu, could not be identified, surely the spices and lemongrass dominated and with chicken as the backbone of the dish adding fish sauce seemed a bit out of place. Meanwhile, my partner took proper care of his roasted duck breast, which was presented excellently. Even if duck is not your thing, you might reconsider given the fact it was tastefully topped with mildly spiced hoisin and a sesame sauce, served with cashews and coriander. Simply divine! 

The quality of our dishes seemed to shine through the entire dining experience at this trendy 40-seater. It has a vibrant crowd of any age and culture and breathes a relaxed, open-minded atmosphere. It is reasonably priced and I will definitely come back to try the Dirty Thai Guy, one of the many interestingly named cocktails on their menu. From the well-balanced, flavorsome dishes to the friendly and easy going staff, Banana Tree truly is the home of the Indochinese cuisine in London’s West End.

Banana Tree

103 Wardour Street - Mayfair

www.bananatree.co.uk

Michiel Willems © May 2012 Pictures: The Local Data Company / FluidLondon.co.uk / Londonchow.com.

 

if only privacy wasn’t such an issue

Millions of people use apps

The use of mobile applications has been on the rise ever since mobile apps became popular in 2008. The term ‘app’ was named ‘Word of the Year’ by the American Dialect Society in 2010 and at the end of 2011, more than half a million third-party apps were available globally. Nowadays, tens of millions of people around the world use mobile applications on a daily basis. 

For large, consumer-facing companies it is almost impossible not to offer your customers a decent mobile application these days. The increasing use of mobile apps has made many products and services more appealing, attractive and accessible, and has become part of many self-respecting companies’ branding and marketing strategy. 

However, downloading a mobile app is not a one way street. Although the user is offered information, a product or a service, security issues and privacy concerns are increasingly being addressed by regulators around the world. In the United States, mobile apps have caught the attention of the Federal Trace Commission and the US Congress has expressed its concerns about mobile apps sharing data and copying information. The White House, as well as the US Department of Commerce, have also announced that they will take action to regulate the mobile app ecosystem. 

Allow or reject?

A few companies that have gone too far in gathering information from their customers have highlighted the need to strike a balance between information sharing and invasions of privacy. Last February, San Francisco-based Path – ‘the smart journal that helps you share life with the ones you love’ – shared a bit more than users thought they were signing up to, it quietly uploaded users' iPhone address books without permission. A week later, it turned out that the users of the feature ‘Find Friends’, on the social media website Twitter, handed over every phone number and email address in their phone, something they were not aware of and Twitter had not clarified. 

Shortly after Twitter came clean, Foursquare, Foodspotting, Facebook, Instagram and a number of other companies announced they planned to clarify their privacy policies. Industry experts believe these companies are just some of the numerous businesses that store user information to, ultimately, use for advertising purposes. The app developer Dustin Curtis wrote on his blog that it was ‘essentially standard practice for app developers to send users’ entire address books to their servers for storage without their permission’.   

A range of apps

But not only address books are copied, sensitive location data is often also collected. Many US politicians wonder ‘How could this happen?’. As a result, the new Judiciary Subcommittee on Privacy, Technology and the Law has started its first hearings on 10 May. Chaired by the Democratic Senator Al Franken, Members include the Deputy Director of the Federal Communications Commission, Jessica Rich, Justin Brookman, Director of the Centre for Democracy and Technology, and as Deputy Assistant Attorney General Jason Weinstein. On the witness list are Apple and Google, amongst others. The Subcommittee will aim to ‘make certain that protecting consumers’ privacy will keep pace with advances in technology’. 

And perhaps that is exactly where the problem lies, do current privacy laws properly cover rapidly evolving technologies that are being used in smartphones, tablets and cell phones? Given the latest developments, the answer should most likely be answered negatively. Is merely making recommendations to the industry sufficient, such as the FTC’s report, Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers, published at the end of March, announcing to start a dialogue with the industry. This makes you wonder whether that approach is too naive: are many app developers really interested in privacy concerns? After all; the mobile apps industry is still growing rapidly and commercial advertising opportunities seem endless. The sky is the limit, if only privacy wasn’t such an issue.

Michiel Willems © May 2012 CP Publishing Ltd. London, UK. Pictures: Blog.toggle.com / Bullcitymobile.com

FSA chief warns banks on old technology and slow payments

LONDON - The Managing Director of the Financial Services Authority (FSA), Martin Wheatley, has said - in a speech to the Chartered Institute of Bankers in Scotland - that banks in the UK should update their technology and speed up payments. 

"Banks need to recognise their customers' increased expectations in a world where people can now, via faster payments, make payments 24 hours a day, seven days a week”, Wheatley said. “Old systems, and the reluctance of some banks to change ways of doing things, are becoming increasingly unacceptable to consumers and to us.” Wheatley warned that “if banks do not provide what consumers want, the new entrants might".

Wheatley also said that British banks should treat their customers better, referring to a letter the FSA sent to banks last January “to encourage a more proactive approach”. As an example, he pointed out the requirement to ensure payments reach the payee's account by the end of the following business day, which some banks fail to tackle to ensure compliance. "I cannot understand why something as straightforward and helpful to the customer as this, is so hard to do", Wheatley said.

Michiel Willems © May 2012 CPP Ltd. London, UK.

US strongly divided over controversial intelligence law

Public opinion in the United States is hugely divided over a new law that would allow technology and manufacturing companies and the US Government to share sensitive data.

On 26 April, the House of Representatives passed the Cyber Intelligence Sharing and Protection Act (CISPA), which was introduced in November 2011 and aims to fight cyberattacks and online crime. Although more than 800 US companies - including Facebook, IBM, Verizon and AT&T - support the law, CISPA is fiercely opposed by privacy groups, journalists and civil rights organisations, such as Reporters Without Borders and the Electronic Frontier Foundation. 

CISPA will “almost definitely” violate civil rights and invade privacy, said James Skyles, a Partner at Skyles Law in Mount Prospect, Illinois. He understands, however, why companies support the proposed legislation: “The economic impact of data information sharing would be a positive one.”

“Are you asking me, does the bill leave open the possibility of the government egregiously violating citizens’ civil rights? Sure, if the feds do not follow the parameters of when and what kind of information they are entitled to share”, said Aaron Kelly, of Kelly Warner in Temple, Arizona.

“CISPA goes too far for little reason", said Michelle Richardson, of the New York City-based American Civil Liberties Union. "Cybersecurity does not have to mean abdication of Americans' online privacy. The government gets expansive national security authorities, there is no going back. We encourage the Senate to let this horrible bill fade into obscurity.”

However, Cordell Carter, Vice President of the Business Roundtable, an association of chief executive officers in Washington D.C., thinks “CISPA is a very positive and important piece of legislation. This law represents the best, most flexible and effective approach to developing a more robust and responsive cybersecurity infrastructure”. Carter is convinced “improved information sharing will help protect US national security and economic interests”.

Under CISPA, which is an amendment to the National Security Act of 1947, government agencies would be permitted to share data with private businesses, and companies may share information with the government on a voluntary basis. “Whether or not [CISPA] succeeds can only be determined by whether or not the private sector takes advantage of the new freedoms”, said Skyles. “It is a horse to water issue. The law does not force anyone to do anything, it merely opens up the doors.”

Since participating businesses would enjoy full legal immunity from any legal action brought by consumers who wish their data remains private, Skyles expects “issues [will] arise as to whether or not an individual can waive certain privacy rights by clicking ‘I accept’ on an end user licensing agreement. People do this every day without even thinking about it.”

Kelly, however, remarks “most people would probably be shocked to find out how much of their information is currently being used and collected by advertisers already”, and points out that, even if the Bill is eventually signed into law, it does include a provision that gives citizens the right to sue the US Government: “It is probably going to come down to the first lawsuit. If a citizen believes their civil rights have been violated, and they decide to file a lawsuit against the feds, and win… well, that would set precedence.”    

CISPA stipulates that the responsibility for domestic cybersecurity would be handed over to the National Security Agency (NSA) in Fort Meade, Maryland, which is a serious concern for Greg Nojeim, of the Center for Democracy and Technology in San Francisco. “[CISPA] leaves two key issues unresolved, the flow of information to the super-secret NSA and the broad purposes for which that information can be used." This is also a concern for Skyles: “[CISPA] is vaguely worded, which casts doubt as to both its impact and its enforceability.”

Kelly thinks it is “concerning that tech-savvy civilians could be given access to a heck of a lot of information.” He adds: “In theory, some of these social networking companies like Facebook are going to have to start vetting employees as vigorously as the CIA. As such, let’s face it, the potential for leaks skyrockets once the government decides to share information with civilians”, which makes Kelly wonder whether CISPA “is doing more to curtail national security as opposed to strengthening it”.

US President Obama

Meanwhile, US President Barack Obama said he "strongly opposes" the law since “[CISPA] could seriously damage individuals' privacy”, adding that “any legislation should not be sacrificing the fundamental values of privacy and civil liberties”. The White House has indicated Obama may veto the Bill. However, Skyles is not impressed by Obama’s statement and calls the “veto threat largely a political one”. He explains: “The letter sent by the White House press office states that a cyber security law needs to set the correct balance between privacy issues and national security, yet they have given no suggestion as to how to strike that balance, nor have they given any indication as to what would satisfy their concerns.”

The Obama administration backs another piece of legislation, a Senate bill sponsored by Senators Joe Lieberman, an Independent, and Susan Collins (Republican), that would give the Department for Homeland Security the power to set security standards. The US Senate is expected to vote on CISPA within the next two weeks.

Aaron Kelly is convinced the discussion is far from over: “Now the law has been passed by Congress, the average Jane and John are just learning about it, so I expect to see a lot more coverage of the issue, and we’ll start to see a citizen backlash. I have yet to talk to an individual internet user who is for CISPA.”

Michiel Willems © 2012 CP Publishing Ltd. London, UK. Pictures: Digitaltrends.com / Iowarepublican.com / TheOffside.com / Stuff.co.nz