Tag Archives: transparency

My letter urging Georgia governor to veto anti-hacking bill

Post Syndicated from Robert Graham original https://blog.erratasec.com/2018/04/my-letter-urging-georgia-governor-to.html

April 16, 2018

Office of the Governor
206 Washington Street
111 State Capitol
Atlanta, Georgia 30334

Re: SB 315

Dear Governor Deal:

I am writing to urge you to veto SB315, the “Unauthorized Computer Access” bill.

The cybersecurity community, of which Georgia is a leader, is nearly unanimous that SB315 will make cybersecurity worse. You’ve undoubtedly heard from many of us opposing this bill. It does not help in prosecuting foreign hackers who target Georgian computers, such as our elections systems. Instead, it prevents those who notice security flaws from pointing them out, thereby getting them fixed. This law violates the well-known Kirchhoff’s Principle, that instead of secrecy and obscurity, that security is achieved through transparency and openness.

That the bill contains this flaw is no accident. The justification for this bill comes from an incident where a security researcher noticed a Georgia state election system had made voter information public. This remained unfixed, months after the vulnerability was first disclosed, leaving the data exposed. Those in charge decided that it was better to prosecute those responsible for discovering the flaw rather than punish those who failed to secure Georgia voter information, hence this law.

Too many security experts oppose this bill for it to go forward. Signing this bill, one that is weak on cybersecurity by favoring political cover-up over the consensus of the cybersecurity community, will be part of your legacy. I urge you instead to veto this bill, commanding the legislature to write a better one, this time consulting experts, which due to Georgia’s thriving cybersecurity community, we do not lack.

Thank you for your attention.

Sincerely,
Robert Graham
(formerly) Chief Scientist, Internet Security Systems

WHOIS Limits Under GDPR Will Make Pirates Harder to Catch, Groups Fear

Post Syndicated from Andy original https://torrentfreak.com/whois-limits-under-gdpr-will-make-pirates-harder-to-catch-groups-fear-180413/

The General Data Protection Regulation (GDPR) is a regulation in EU law covering data protection and privacy for all individuals within the European Union.

As more and more personal data is gathered, stored and (ab)used online, the aim of the GDPR is to protect EU citizens from breaches of privacy. The regulation applies to all companies processing the personal data of subjects residing in the Union, no matter where in the world the company is located.

Penalties for non-compliance can be severe. While there is a tiered approach according to severity, organizations can be fined up to 4% of annual global turnover or €20 million, whichever is greater. Needless to say, the regulations will need to be taken seriously.

Among those affected are domain name registries and registrars who publish the personal details of domain name owners in the public WHOIS database. In a full entry, a person or organization’s name, address, telephone numbers and email addresses can often be found.

This raises a serious issue. While registries and registrars are instructed and contractually obliged to publish data in the WHOIS database by global domain name authority ICANN, in millions of cases this conflicts with the requirements of the GDPR, which prevents the details of private individuals being made freely available on the Internet.

As explained in detail by the EFF, ICANN has been trying to resolve this clash. Its proposed interim model for GDPR compliance (pdf) envisions registrars continuing to collect full WHOIS data but not necessarily publishing it, to “allow the existing data
to be preserved while the community discussions continue on the next generation of WHOIS.”

But the proposed changes that will inevitably restrict free access to WHOIS information has plenty of people spooked, including thousands of companies belonging to entertainment industry groups such as the MPAA, IFPI, RIAA and the Copyright Alliance.

In a letter sent to Vice President Andrus Ansip of the European Commission, these groups and dozens of others warn that restricted access to WHOIS will have a serious effect on their ability to protect their intellectual property rights from “cybercriminals” which pose a threat to their businesses.

Signed by 50 organizations involved in IP protection and other areas of online security, the letter expresses concern that in attempting to comply with the GDPR, ICANN is on a course to “over-correct” while disregarding proportionality, accountability and transparency.

A small sample of the groups calling on ICANN

“We strongly assert that this model does not properly account for the critical public and legitimate interests served by maintaining a sufficient amount of data publicly available while respecting privacy interests of registrants by instituting a tiered or layered access system for the vast majority of personal data as defined by the GDPR,” the groups write.

The letter focuses on two aspects of “over-correction”, the first being ICANN’s proposal that no personal data whatsoever of a domain name registrant will be made available “without appropriate consideration or balancing of the countervailing interests in public disclosure of a limited amount of such data.”

In response to ICANN’s proposal that only the province/state and country of a domain name registrant be made publicly available, the groups advise the organization that publishing “a natural person registrant’s e-mail address” in a publicly accessible WHOIS directory will not constitute a breach of the GDPR.

“[W]e strongly believe that the continued public availability of the registrant’s e-mail address – specifically the e-mail address that the registrant supplies to the registrar at the time the domain name is purchased and which e-mail address the registrar is required to validate – is critical for several reasons,” the groups write.

“First, it is the data element that is typically the most important to have readily available for law enforcement, consumer protection, particularly child protection, intellectual property enforcement and cybersecurity/anti-malware purposes.

“Second, the public accessibility of the registrant’s e-mail address permits a broad array of threats and illegal activities to be addressed quickly and the damage from such threats mitigated and contained in a timely manner, particularly where the abusive/illegal activity may be spawned from a variety of different domain names on different generic Top Level Domains,” they add.

The groups also argue that since making email addresses is effectively required in light of Article 5.1(c) ECD, “there is no legitimate justification to discontinue public availability of the registrant’s e-mail address in the WHOIS directory and especially not in light of other legitimate purposes.”

The EFF, on the other hand, says that being able to contact a domain owner wouldn’t necessarily require an email address to be made public.

“There are other cases in which it makes sense to allow members of the public to contact the owner of a domain, without having to obtain a court order,” EFF writes.

“But this could be achieved very simply if ICANN were simply to provide something like a CAPTCHA-protected contact form, which would deliver email to the appropriate contact point with no need to reveal the registrant’s actual email address.”

The groups’ second main concern is that ICANN reportedly makes no distinction between name registrants that are “natural persons versus those that are legal entities” and intends to treat them all as if they are subject to the GDPR, despite the fact that the regulation only applies to data associated with an “identified or identifiable natural person”.

They say it is imperative that EU Data Protection Authorities are made to understand that when registrants obtain a domain for illegal purposes, they often only register it as a “natural person” when registering as a legal person (legal entity) would be more appropriate, despite that granting them less privacy.

“Consequently, the test for differentiating between a legal and natural person should not merely be the legal status of the registrant, but also whether the registrant is, in fact, acting as a legal or natural person vis a vis the use of the domain name,” the groups note.

“We therefore urge that ICANN be given appropriate guidance as to the importance of maintaining a distinction between natural person and legal person registrants and keeping as much data about legal person domain name registrants as publicly accessible as possible,” they conclude.

What will happen with WHOIS on May 25 still isn’t clear. It wasn’t until October 2017 that ICANN finally determined that it would be affected by the GDPR, meaning that it’s been scrambling ever since to meet the compliance date. And it still is, according to the latest available documentation (pdf).

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN reviews, discounts, offers and coupons.

Reddit Copyright Complaints Jump 138% But Almost Half Get Rejected

Post Syndicated from Andy original https://torrentfreak.com/reddit-copyright-complaints-jump-138-but-almost-half-get-rejected-180411/

So-called ‘transparency reports’ are becoming increasingly popular with Internet-based platforms and their users. Among other things, they provide much-needed insight into how outsiders attempt to censor content published online and what actions are taken in response.

Google first started publishing its report in 2010, Twitter followed in 2012, and they’ve now been joined by a multitude of major companies including Microsoft, Facebook and Cloudflare.

As one of the world’s most recognized sites, Reddit joined the transparency party fairly late, publishing its first report in early 2015. While light on detail, it revealed that in the previous year the site received just 218 requests to remove content, 81% of which were DMCA-style copyright notices. A significant 62% of those copyright-related requests were rejected.

Over time, Reddit’s reporting has become a little more detailed. Last April it revealed that in 2016, the platform received ‘just’ 3,294 copyright removal requests for the entire year. However, what really caught the eye is how many notices were rejected. In just 610 instances, Reddit was required to remove content from the site, a rejection rate of 81%.

Having been a year since Reddit’s last report, the company has just published its latest edition, covering the period January 1, 2017 to December 31, 2017.

“Reddit publishes this transparency report every year as part of our ongoing commitment to keep you aware of the trends on the various requests regarding private Reddit user account information or removal of content posted to Reddit,” the company said in a statement.

“Reddit believes that maintaining this transparency is extremely important. We want you to be aware of this information, consider it carefully, and ask questions to keep us accountable.”

The detailed report covers a wide range of topics, including government requests for the preservation or production of user information (there were 310) and even an instruction to monitor one Reddit user’s activities in real time via a so-called ‘Trap and Trace’ order.

In copyright terms, there has been significant movement. In 2017, Reddit received 7,825 notifications of alleged copyright infringement under the Digital Millennium Copyright Act, that’s up roughly 138% over the 3,294 notifications received in 2016.

For a platform of Reddit’s unquestionable size, these volumes are not big. While the massive percentage increase is notable, the site still receives less than 10 complaints each day. For comparison, Google receives millions every week.

But perhaps most telling is that despite receiving more than 7,800 DMCA-style takedown notices, these resulted in Reddit carrying out just 4,352 removals. This means that for whatever reasons (Reddit doesn’t specify), 3,473 requests were denied, a rejection rate of 44.38%. Google, on the other hand, removes around 90% of content reported.

DMCA notices can be declared invalid for a number of reasons, from incorrect formatting through to flat-out abuse. In many cases, copyright law is incorrectly applied and it’s not unknown for complainants to attempt a DMCA takedown to stifle speech or perceived competition.

Reddit says it tries to take all things into consideration before removing content.

“Reddit reviews each DMCA takedown notice carefully, and removes content where a valid report is received, as required by the law,” the company says.

“Reddit considers whether the reported content may fall under an exception listed in the DMCA, such as ‘fair use,’ and may ask for clarification that will assist in the review of the removal request.”

Considering the numbers of community-focused “subreddits” dedicated to piracy (not just general discussion, but actual links to content), the low numbers of copyright notices received by Reddit continues to baffle.

There are sections in existence right now offering many links to movies and TV shows hosted on various file-hosting sites. They’re the type of links that are targeted all the time whenever they appear in Google search but copyright owners don’t appear to notice or care about them on Reddit.

Finally, it would be nice if Reddit could provide more information in next year’s report, including detail on why so many requests are rejected. Perhaps regular submission of notices to the Lumen Database would be something Reddit would consider for the future.

Reddit’s Transparency Report for 2017 can be found here.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN reviews, discounts, offers and coupons.

Engineering deep dive: Encoding of SCTs in certificates

Post Syndicated from Let's Encrypt - Free SSL/TLS Certificates original https://letsencrypt.org/2018/04/04/sct-encoding.html

<p>Let&rsquo;s Encrypt recently <a href="https://community.letsencrypt.org/t/signed-certificate-timestamps-embedded-in-certificates/57187">launched SCT embedding in
certificates</a>.
This feature allows browsers to check that a certificate was submitted to a
<a href="https://en.wikipedia.org/wiki/Certificate_Transparency">Certificate Transparency</a>
log. As part of the launch, we did a thorough review
that the encoding of Signed Certificate Timestamps (SCTs) in our certificates
matches the relevant specifications. In this post, I&rsquo;ll dive into the details.
You&rsquo;ll learn more about X.509, ASN.1, DER, and TLS encoding, with references to
the relevant RFCs.</p>

<p>Certificate Transparency offers three ways to deliver SCTs to a browser: In a
TLS extension, in stapled OCSP, or embedded in a certificate. We chose to
implement the embedding method because it would just work for Let&rsquo;s Encrypt
subscribers without additional work. In the SCT embedding method, we submit
a &ldquo;precertificate&rdquo; with a <a href="#poison">poison extension</a> to a set of
CT logs, and get back SCTs. We then issue a real certificate based on the
precertificate, with two changes: The poison extension is removed, and the SCTs
obtained earlier are added in another extension.</p>

<p>Given a certificate, let&rsquo;s first look for the SCT list extension. According to CT (<a href="https://tools.ietf.org/html/rfc6962#section-3.3">RFC 6962
section 3.3</a>),
the extension OID for a list of SCTs is <code>1.3.6.1.4.1.11129.2.4.2</code>. An <a href="http://www.hl7.org/Oid/information.cfm">OID (object
ID)</a> is a series of integers, hierarchically
assigned and globally unique. They are used extensively in X.509, for instance
to uniquely identify extensions.</p>

<p>We can <a href="https://acme-v01.api.letsencrypt.org/acme/cert/031f2484307c9bc511b3123cb236a480d451">download an example certificate</a>,
and view it using OpenSSL (if your OpenSSL is old, it may not display the
detailed information):</p>

<pre><code>$ openssl x509 -noout -text -inform der -in Downloads/031f2484307c9bc511b3123cb236a480d451

CT Precertificate SCTs:
Signed Certificate Timestamp:
Version : v1(0)
Log ID : DB:74:AF:EE:CB:29:EC:B1:FE:CA:3E:71:6D:2C:E5:B9:
AA:BB:36:F7:84:71:83:C7:5D:9D:4F:37:B6:1F:BF:64
Timestamp : Mar 29 18:45:07.993 2018 GMT
Extensions: none
Signature : ecdsa-with-SHA256
30:44:02:20:7E:1F:CD:1E:9A:2B:D2:A5:0A:0C:81:E7:
13:03:3A:07:62:34:0D:A8:F9:1E:F2:7A:48:B3:81:76:
40:15:9C:D3:02:20:65:9F:E9:F1:D8:80:E2:E8:F6:B3:
25:BE:9F:18:95:6D:17:C6:CA:8A:6F:2B:12:CB:0F:55:
FB:70:F7:59:A4:19
Signed Certificate Timestamp:
Version : v1(0)
Log ID : 29:3C:51:96:54:C8:39:65:BA:AA:50:FC:58:07:D4:B7:
6F:BF:58:7A:29:72:DC:A4:C3:0C:F4:E5:45:47:F4:78
Timestamp : Mar 29 18:45:08.010 2018 GMT
Extensions: none
Signature : ecdsa-with-SHA256
30:46:02:21:00:AB:72:F1:E4:D6:22:3E:F8:7F:C6:84:
91:C2:08:D2:9D:4D:57:EB:F4:75:88:BB:75:44:D3:2F:
95:37:E2:CE:C1:02:21:00:8A:FF:C4:0C:C6:C4:E3:B2:
45:78:DA:DE:4F:81:5E:CB:CE:2D:57:A5:79:34:21:19:
A1:E6:5B:C7:E5:E6:9C:E2
</code></pre>

<p>Now let&rsquo;s go a little deeper. How is that extension represented in
the certificate? Certificates are expressed in
<a href="https://en.wikipedia.org/wiki/Abstract_Syntax_Notation_One">ASN.1</a>,
which generally refers to both a language for expressing data structures
and a set of formats for encoding them. The most common format,
<a href="https://en.wikipedia.org/wiki/X.690#DER_encoding">DER</a>,
is a tag-length-value format. That is, to encode an object, first you write
down a tag representing its type (usually one byte), then you write
down a number expressing how long the object is, then you write down
the object contents. This is recursive: An object can contain multiple
objects within it, each of which has its own tag, length, and value.</p>

<p>One of the cool things about DER and other tag-length-value formats is that you
can decode them to some degree without knowing what they mean. For instance, I
can tell you that 0x30 means the data type &ldquo;SEQUENCE&rdquo; (a struct, in ASN.1
terms), and 0x02 means &ldquo;INTEGER&rdquo;, then give you this hex byte sequence to
decode:</p>

<pre><code>30 06 02 01 03 02 01 0A
</code></pre>

<p>You could tell me right away that decodes to:</p>

<pre><code>SEQUENCE
INTEGER 3
INTEGER 10
</code></pre>

<p>Try it yourself with this great <a href="https://lapo.it/asn1js/#300602010302010A">JavaScript ASN.1
decoder</a>. However, you wouldn&rsquo;t know
what those integers represent without the corresponding ASN.1 schema (or
&ldquo;module&rdquo;). For instance, if you knew that this was a piece of DogData, and the
schema was:</p>

<pre><code>DogData ::= SEQUENCE {
legs INTEGER,
cutenessLevel INTEGER
}
</code></pre>

<p>You&rsquo;d know this referred to a three-legged dog with a cuteness level of 10.</p>

<p>We can take some of this knowledge and apply it to our certificates. As a first
step, convert the above certificate to hex with
<code>xxd -ps &lt; Downloads/031f2484307c9bc511b3123cb236a480d451</code>. You can then copy
and paste the result into
<a href="https://lapo.it/asn1js">lapo.it/asn1js</a> (or use <a href="https://lapo.it/asn1js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this handy link</a>). You can also run <code>openssl asn1parse -i -inform der -in Downloads/031f2484307c9bc511b3123cb236a480d451</code> to use OpenSSL&rsquo;s parser, which is less easy to use in some ways, but easier to copy and paste.</p>

<p>In the decoded data, we can find the OID <code>1.3.6.1.4.1.11129.2.4.2</code>, indicating
the SCT list extension. Per <a href="https://tools.ietf.org/html/rfc5280#page-17">RFC 5280, section
4.1</a>, an extension is defined:</p>

<pre><code>Extension ::= SEQUENCE {
extnID OBJECT IDENTIFIER,
critical BOOLEAN DEFAULT FALSE,
extnValue OCTET STRING
— contains the DER encoding of an ASN.1 value
— corresponding to the extension type identified
— by extnID
}
</code></pre>

<p>We&rsquo;ve found the <code>extnID</code>. The &ldquo;critical&rdquo; field is omitted because it has the
default value (false). Next up is the <code>extnValue</code>. This has the type
<code>OCTET STRING</code>, which has the tag &ldquo;0x04&rdquo;. <code>OCTET STRING</code> means &ldquo;here&rsquo;s
a bunch of bytes!&rdquo; In this case, as described by the spec, those bytes
happen to contain more DER. This is a fairly common pattern in X.509
to deal with parameterized data. For instance, this allows defining a
structure for extensions without knowing ahead of time all the structures
that a future extension might want to carry in its value. If you&rsquo;re a C
programmer, think of it as a <code>void*</code> for data structures. If you prefer Go,
think of it as an <code>interface{}</code>.</p>

<p>Here&rsquo;s that <code>extnValue</code>:</p>

<pre><code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
</code></pre>

<p>That&rsquo;s tag &ldquo;0x04&rdquo;, meaning <code>OCTET STRING</code>, followed by &ldquo;0x81 0xF5&rdquo;, meaning
&ldquo;this string is 245 bytes long&rdquo; (the 0x81 prefix is part of <a href="#variable-length">variable length
number encoding</a>).</p>

<p>According to <a href="https://tools.ietf.org/html/rfc6962#section-3.3">RFC 6962, section
3.3</a>, &ldquo;obtained SCTs
can be directly embedded in the final certificate, by encoding the
SignedCertificateTimestampList structure as an ASN.1 <code>OCTET STRING</code>
and inserting the resulting data in the TBSCertificate as an X.509v3
certificate extension&rdquo;</p>

<p>So, we have an <code>OCTET STRING</code>, all&rsquo;s good, right? Except if you remove the
tag and length from extnValue to get its value, you&rsquo;re left with:</p>

<pre><code>04 81 F2 00F0007500DB74AFEEC…
</code></pre>

<p>There&rsquo;s that &ldquo;0x04&rdquo; tag again, but with a shorter length. Why
do we nest one <code>OCTET STRING</code> inside another? It&rsquo;s because the
contents of extnValue are required by RFC 5280 to be valid DER, but a
SignedCertificateTimestampList is not encoded using DER (more on that
in a minute). So, by RFC 6962, a SignedCertificateTimestampList is wrapped in an
<code>OCTET STRING</code>, which is wrapped in another <code>OCTET STRING</code> (the extnValue).</p>

<p>Once we decode that second <code>OCTET STRING</code>, we&rsquo;re left with the contents:</p>

<pre><code>00F0007500DB74AFEEC…
</code></pre>

<p>&ldquo;0x00&rdquo; isn&rsquo;t a valid tag in DER. What is this? It&rsquo;s TLS encoding. This is
defined in <a href="https://tools.ietf.org/html/rfc5246#section-4">RFC 5246, section 4</a>
(the TLS 1.2 RFC). TLS encoding, like ASN.1, has both a way to define data
structures and a way to encode those structures. TLS encoding differs
from DER in that there are no tags, and lengths are only encoded when necessary for
variable-length arrays. Within an encoded structure, the type of a field is determined by
its position, rather than by a tag. This means that TLS-encoded structures are
more compact than DER structures, but also that they can&rsquo;t be processed without
knowing the corresponding schema. For instance, here&rsquo;s the top-level schema from
<a href="https://tools.ietf.org/html/rfc6962#section-3.3">RFC 6962, section 3.3</a>:</p>

<pre><code> The contents of the ASN.1 OCTET STRING embedded in an OCSP extension
or X509v3 certificate extension are as follows:

opaque SerializedSCT&lt;1..2^16-1&gt;;

struct {
SerializedSCT sct_list &lt;1..2^16-1&gt;;
} SignedCertificateTimestampList;

Here, &quot;SerializedSCT&quot; is an opaque byte string that contains the
serialized TLS structure.
</code></pre>

<p>Right away, we&rsquo;ve found one of those variable-length arrays. The length of such
an array (in bytes) is always represented by a length field just big enough to
hold the max array size. The max size of an <code>sct_list</code> is 65535 bytes, so the
length field is two bytes wide. Sure enough, those first two bytes are &ldquo;0x00
0xF0&rdquo;, or 240 in decimal. In other words, this <code>sct_list</code> will have 240 bytes. We
don&rsquo;t yet know how many SCTs will be in it. That will become clear only by
continuing to parse the encoded data and seeing where each struct ends (spoiler
alert: there are two SCTs!).</p>

<p>Now we know the first SerializedSCT starts with <code>0075…</code>. SerializedSCT
is itself a variable-length field, this time containing <code>opaque</code> bytes (much like <code>OCTET STRING</code>
back in the ASN.1 world). Like SignedCertificateTimestampList, it has a max size
of 65535 bytes, so we pull off the first two bytes and discover that the first
SerializedSCT is 0x0075 (117 decimal) bytes long. Here&rsquo;s the whole thing, in
hex:</p>

<pre><code>00DB74AFEECB29ECB1FECA3E716D2CE5B9AABB36F7847183C75D9D4F37B61FBF64000001627313EB19000004030046304402207E1FCD1E9A2BD2A50A0C81E713033A0762340DA8F91EF27A48B3817640159CD30220659FE9F1D880E2E8F6B325BE9F18956D17C6CA8A6F2B12CB0F55FB70F759A419
</code></pre>

<p>This can be decoded using the TLS encoding struct defined in <a href="https://tools.ietf.org/html/rfc6962#page-13">RFC 6962, section
3.2</a>:</p>

<pre><code>enum { v1(0), (255) }
Version;

struct {
opaque key_id[32];
} LogID;

opaque CtExtensions&lt;0..2^16-1&gt;;

struct {
Version sct_version;
LogID id;
uint64 timestamp;
CtExtensions extensions;
digitally-signed struct {
Version sct_version;
SignatureType signature_type = certificate_timestamp;
uint64 timestamp;
LogEntryType entry_type;
select(entry_type) {
case x509_entry: ASN.1Cert;
case precert_entry: PreCert;
} signed_entry;
CtExtensions extensions;
};
} SignedCertificateTimestamp;
</code></pre>

<p>Breaking that down:</p>

<pre><code># Version sct_version v1(0)
00
# LogID id (aka opaque key_id[32])
DB74AFEECB29ECB1FECA3E716D2CE5B9AABB36F7847183C75D9D4F37B61FBF64
# uint64 timestamp (milliseconds since the epoch)
000001627313EB19
# CtExtensions extensions (zero-length array)
0000
# digitally-signed struct
04030046304402207E1FCD1E9A2BD2A50A0C81E713033A0762340DA8F91EF27A48B3817640159CD30220659FE9F1D880E2E8F6B325BE9F18956D17C6CA8A6F2B12CB0F55FB70F759A419
</code></pre>

<p>To understand the &ldquo;digitally-signed struct,&rdquo; we need to turn back to <a href="https://tools.ietf.org/html/rfc5246#section-4.7">RFC 5246,
section 4.7</a>. It says:</p>

<pre><code>A digitally-signed element is encoded as a struct DigitallySigned:

struct {
SignatureAndHashAlgorithm algorithm;
opaque signature&lt;0..2^16-1&gt;;
} DigitallySigned;
</code></pre>

<p>And in <a href="https://tools.ietf.org/html/rfc5246#section-7.4.1.4.1">section
7.4.1.4.1</a>:</p>

<pre><code>enum {
none(0), md5(1), sha1(2), sha224(3), sha256(4), sha384(5),
sha512(6), (255)
} HashAlgorithm;

enum { anonymous(0), rsa(1), dsa(2), ecdsa(3), (255) }
SignatureAlgorithm;

struct {
HashAlgorithm hash;
SignatureAlgorithm signature;
} SignatureAndHashAlgorithm;
</code></pre>

<p>We have &ldquo;0x0403&rdquo;, which corresponds to sha256(4) and ecdsa(3). The next two
bytes, &ldquo;0x0046&rdquo;, tell us the length of the &ldquo;opaque signature&rdquo; field, 70 bytes in
decimal. To decode the signature, we reference <a href="https://tools.ietf.org/html/rfc4492#page-20">RFC 4492 section
5.4</a>, which says:</p>

<pre><code>The digitally-signed element is encoded as an opaque vector &lt;0..2^16-1&gt;, the
contents of which are the DER encoding corresponding to the
following ASN.1 notation.

Ecdsa-Sig-Value ::= SEQUENCE {
r INTEGER,
s INTEGER
}
</code></pre>

<p>Having dived through two layers of TLS encoding, we are now back in ASN.1 land!
We
<a href="https://lapo.it/asn1js/#304402207E1FCD1E9A2BD2A50A0C81E713033A0762340DA8F91EF27A48B3817640159CD30220659FE9F1D880E2E8F6B325BE9F18956D17C6CA8A6F2B12CB0F55FB70F759A419">decode</a>
the remaining bytes into a SEQUENCE containing two INTEGERS. And we&rsquo;re done! Here&rsquo;s the whole
extension decoded:</p>

<pre><code># Extension SEQUENCE – RFC 5280
30
# length 0x0104 bytes (260 decimal)
820104
# OBJECT IDENTIFIER
06
# length 0x0A bytes (10 decimal)
0A
# value (1.3.6.1.4.1.11129.2.4.2)
2B06010401D679020402
# OCTET STRING
04
# length 0xF5 bytes (245 decimal)
81F5
# OCTET STRING (embedded) – RFC 6962
04
# length 0xF2 bytes (242 decimal)
81F2
# Beginning of TLS encoded SignedCertificateTimestampList – RFC 5246 / 6962
# length 0xF0 bytes
00F0
# opaque SerializedSCT&lt;1..2^16-1&gt;
# length 0x75 bytes
0075
# Version sct_version v1(0)
00
# LogID id (aka opaque key_id[32])
DB74AFEECB29ECB1FECA3E716D2CE5B9AABB36F7847183C75D9D4F37B61FBF64
# uint64 timestamp (milliseconds since the epoch)
000001627313EB19
# CtExtensions extensions (zero-length array)
0000
# digitally-signed struct – RFC 5426
# SignatureAndHashAlgorithm (ecdsa-sha256)
0403
# opaque signature&lt;0..2^16-1&gt;;
# length 0x0046
0046
# DER-encoded Ecdsa-Sig-Value – RFC 4492
30 # SEQUENCE
44 # length 0x44 bytes
02 # r INTEGER
20 # length 0x20 bytes
# value
7E1FCD1E9A2BD2A50A0C81E713033A0762340DA8F91EF27A48B3817640159CD3
02 # s INTEGER
20 # length 0x20 bytes
# value
659FE9F1D880E2E8F6B325BE9F18956D17C6CA8A6F2B12CB0F55FB70F759A419
# opaque SerializedSCT&lt;1..2^16-1&gt;
# length 0x77 bytes
0077
# Version sct_version v1(0)
00
# LogID id (aka opaque key_id[32])
293C519654C83965BAAA50FC5807D4B76FBF587A2972DCA4C30CF4E54547F478
# uint64 timestamp (milliseconds since the epoch)
000001627313EB2A
# CtExtensions extensions (zero-length array)
0000
# digitally-signed struct – RFC 5426
# SignatureAndHashAlgorithm (ecdsa-sha256)
0403
# opaque signature&lt;0..2^16-1&gt;;
# length 0x0048
0048
# DER-encoded Ecdsa-Sig-Value – RFC 4492
30 # SEQUENCE
46 # length 0x46 bytes
02 # r INTEGER
21 # length 0x21 bytes
# value
00AB72F1E4D6223EF87FC68491C208D29D4D57EBF47588BB7544D32F9537E2CEC1
02 # s INTEGER
21 # length 0x21 bytes
# value
008AFFC40CC6C4E3B24578DADE4F815ECBCE2D57A579342119A1E65BC7E5E69CE2
</code></pre>

<p>One surprising thing you might notice: In the first SCT, <code>r</code> and <code>s</code> are twenty
bytes long. In the second SCT, they are both twenty-one bytes long, and have a
leading zero. Integers in DER are two&rsquo;s complement, so if the leftmost bit is
set, they are interpreted as negative. Since <code>r</code> and <code>s</code> are positive, if the
leftmost bit would be a 1, an extra byte has to be added so that the leftmost
bit can be 0.</p>

<p>This is a little taste of what goes into encoding a certificate. I hope it was
informative! If you&rsquo;d like to learn more, I recommend &ldquo;<a href="http://luca.ntop.org/Teaching/Appunti/asn1.html">A Layman&rsquo;s Guide to a
Subset of ASN.1, BER, and DER</a>.&rdquo;</p>

<p><a name="poison"></a>Footnote 1: A &ldquo;poison extension&rdquo; is defined by <a href="https://tools.ietf.org/html/rfc6962#section-3.1">RFC 6962
section 3.1</a>:</p>

<pre><code>The Precertificate is constructed from the certificate to be issued by adding a special
critical poison extension (OID `1.3.6.1.4.1.11129.2.4.3`, whose
extnValue OCTET STRING contains ASN.1 NULL data (0x05 0x00))
</code></pre>

<p>In other words, it&rsquo;s an empty extension whose only purpose is to ensure that
certificate processors will not accept precertificates as valid certificates. The
specification ensures this by setting the &ldquo;critical&rdquo; bit on the extension, which
ensures that code that doesn&rsquo;t recognize the extension will reject the whole
certificate. Code that does recognize the extension specifically as poison
will also reject the certificate.</p>

<p><a name="variable-length"></a>Footnote 2: Lengths from 0-127 are represented by
a single byte (short form). To express longer lengths, more bytes are used (long form).
The high bit (0x80) on the first byte is set to distinguish long form from short
form. The remaining bits are used to express how many more bytes to read for the
length. For instance, 0x81F5 means &ldquo;this is long form because the length is
greater than 127, but there&rsquo;s still only one byte of length (0xF5) to decode.&rdquo;</p>

[$] Making institutional free software successful

Post Syndicated from jake original https://lwn.net/Articles/750781/rss

Many large institutions, especially government agencies, would like to
distribute their software—including the software of the vendors with whom
they contract—as free software. They have a variety of reasons, ranging
from the hope that opening the code will boost its use, all the way to
a mature understanding of the importance of community, transparency, and
freedom. There are special steps institutions can take to help ensure success,
some stemming from best practices performed by many free-software projects
and others specific to large organizations. At the 2018 LibrePlanet conference,
Cecilia Donnelly laid out nine principles for the
successful creation and maintenance of a software project under these
circumstances.

Facebook and Cambridge Analytica

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/03/facebook_and_ca.html

In the wake of the Cambridge Analytica scandal, news articles and commentators have focused on what Facebook knows about us. A lot, it turns out. It collects data from our posts, our likes, our photos, things we type and delete without posting, and things we do while not on Facebook and even when we’re offline. It buys data about us from others. And it can infer even more: our sexual orientation, political beliefs, relationship status, drug use, and other personality traits — even if we didn’t take the personality test that Cambridge Analytica developed.

But for every article about Facebook’s creepy stalker behavior, thousands of other companies are breathing a collective sigh of relief that it’s Facebook and not them in the spotlight. Because while Facebook is one of the biggest players in this space, there are thousands of other companies that spy on and manipulate us for profit.

Harvard Business School professor Shoshana Zuboff calls it “surveillance capitalism.” And as creepy as Facebook is turning out to be, the entire industry is far creepier. It has existed in secret far too long, and it’s up to lawmakers to force these companies into the public spotlight, where we can all decide if this is how we want society to operate and — if not — what to do about it.

There are 2,500 to 4,000 data brokers in the United States whose business is buying and selling our personal data. Last year, Equifax was in the news when hackers stole personal information on 150 million people, including Social Security numbers, birth dates, addresses, and driver’s license numbers.

You certainly didn’t give it permission to collect any of that information. Equifax is one of those thousands of data brokers, most of them you’ve never heard of, selling your personal information without your knowledge or consent to pretty much anyone who will pay for it.

Surveillance capitalism takes this one step further. Companies like Facebook and Google offer you free services in exchange for your data. Google’s surveillance isn’t in the news, but it’s startlingly intimate. We never lie to our search engines. Our interests and curiosities, hopes and fears, desires and sexual proclivities, are all collected and saved. Add to that the websites we visit that Google tracks through its advertising network, our Gmail accounts, our movements via Google Maps, and what it can collect from our smartphones.

That phone is probably the most intimate surveillance device ever invented. It tracks our location continuously, so it knows where we live, where we work, and where we spend our time. It’s the first and last thing we check in a day, so it knows when we wake up and when we go to sleep. We all have one, so it knows who we sleep with. Uber used just some of that information to detect one-night stands; your smartphone provider and any app you allow to collect location data knows a lot more.

Surveillance capitalism drives much of the internet. It’s behind most of the “free” services, and many of the paid ones as well. Its goal is psychological manipulation, in the form of personalized advertising to persuade you to buy something or do something, like vote for a candidate. And while the individualized profile-driven manipulation exposed by Cambridge Analytica feels abhorrent, it’s really no different from what every company wants in the end. This is why all your personal information is collected, and this is why it is so valuable. Companies that can understand it can use it against you.

None of this is new. The media has been reporting on surveillance capitalism for years. In 2015, I wrote a book about it. Back in 2010, the Wall Street Journal published an award-winning two-year series about how people are tracked both online and offline, titled “What They Know.”

Surveillance capitalism is deeply embedded in our increasingly computerized society, and if the extent of it came to light there would be broad demands for limits and regulation. But because this industry can largely operate in secret, only occasionally exposed after a data breach or investigative report, we remain mostly ignorant of its reach.

This might change soon. In 2016, the European Union passed the comprehensive General Data Protection Regulation, or GDPR. The details of the law are far too complex to explain here, but some of the things it mandates are that personal data of EU citizens can only be collected and saved for “specific, explicit, and legitimate purposes,” and only with explicit consent of the user. Consent can’t be buried in the terms and conditions, nor can it be assumed unless the user opts in. This law will take effect in May, and companies worldwide are bracing for its enforcement.

Because pretty much all surveillance capitalism companies collect data on Europeans, this will expose the industry like nothing else. Here’s just one example. In preparation for this law, PayPal quietly published a list of over 600 companies it might share your personal data with. What will it be like when every company has to publish this sort of information, and explicitly explain how it’s using your personal data? We’re about to find out.

In the wake of this scandal, even Mark Zuckerberg said that his industry probably should be regulated, although he’s certainly not wishing for the sorts of comprehensive regulation the GDPR is bringing to Europe.

He’s right. Surveillance capitalism has operated without constraints for far too long. And advances in both big data analysis and artificial intelligence will make tomorrow’s applications far creepier than today’s. Regulation is the only answer.

The first step to any regulation is transparency. Who has our data? Is it accurate? What are they doing with it? Who are they selling it to? How are they securing it? Can we delete it? I don’t see any hope of Congress passing a GDPR-like data protection law anytime soon, but it’s not too far-fetched to demand laws requiring these companies to be more transparent in what they’re doing.

One of the responses to the Cambridge Analytica scandal is that people are deleting their Facebook accounts. It’s hard to do right, and doesn’t do anything about the data that Facebook collects about people who don’t use Facebook. But it’s a start. The market can put pressure on these companies to reduce their spying on us, but it can only do that if we force the industry out of its secret shadows.

This essay previously appeared on CNN.com.

EDITED TO ADD (4/2): Slashdot thread.

Welcome Nathan – Our Solutions Engineer

Post Syndicated from Yev original https://www.backblaze.com/blog/welcome-nathan-our-solutions-engineer/

Backblaze is growing, and with it our need to cater to a lot of different use cases that our customers bring to us. We needed a Solutions Engineer to help out, and after a long search we’ve hired our first one! Lets learn a bit more about Nathan shall we?

What is your Backblaze Title?
Solutions Engineer. Our customers bring a thousand different use cases to both B1 and B2, and I’m here to help them figure out how best to make those use cases a reality. Also, any odd jobs that Nilay wants me to do.

Where are you originally from?
I am native to the San Francisco Bay Area, studying mathematics at UC Santa Cruz, and then computer science at California University of Hayward (which has since renamed itself California University of the East Hills. I observe that it’s still in Hayward).

What attracted you to Backblaze?
As a stable, growing company with huge growth and even bigger potential, the business model is attractive, and the team is outstanding. Add to that the strong commitment to transparency, and it’s a hard company to resist. We can store – and restore – data while offering superior reliability at an economic advantage to do-it-yourself, and that’s a great place to be.

What do you expect to learn while being at Backblaze?
Everything I need to, but principally how our customers choose to interact with web storage. Storage isn’t a solution per se, but it’s an important component of any persistent solution. I’m looking forward to working with all the different concepts our customers have to make use of storage.

Where else have you worked?
All sorts of places, but I’ll admit publicly to EMC, Gemalto, and my own little (failed, alas) startup, IC2N. I worked with low-level document imaging.

Where did you go to school?
UC Santa Cruz, BA Mathematics CU Hayward, Master of Science in Computer Science.

What’s your dream job?
Sipping tea in the California redwood forest. However, solutions engineer at Backblaze is a good second choice!

Favorite place you’ve traveled?
Ashland, Oregon, for the Oregon Shakespeare Festival and the marble caves (most caves form from limestone).

Favorite hobby?
Theater. Pathfinder. Writing. Baking cookies and cakes.

Of what achievement are you most proud?
Marrying the most wonderful man in the world.

Star Trek or Star Wars?
Star Trek’s utopian science fiction vision of humanity and science resonates a lot more strongly with me than the dystopian science fantasy of Star Wars.

Coke or Pepsi?
Neither. I’d much rather have a cup of jasmine tea.

Favorite food?
It varies, but I love Indian and Thai cuisine. Truly excellent Italian food is marvelous – wood fired pizza, if I had to pick only one, but the world would be a boring place with a single favorite food.

Why do you like certain things?
If I knew that, I’d be in marketing.

Anything else you’d like you’d like to tell us?
If you haven’t already encountered the amazing authors Patricia McKillip and Lois McMasters Bujold – go encounter them. Be happy.

There’s nothing wrong with a nice cup of tea and a long game of Pathfinder. Sign us up! Welcome to the team Nathan!

The post Welcome Nathan – Our Solutions Engineer appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

Camcording Piracy is Dropping, But Not In Russia

Post Syndicated from Ernesto original https://torrentfreak.com/camcording-piracy-is-dropping-but-not-in-russia-180311/

The movie industry sees movies that are illegally recorded in theaters as one of the biggest piracy threats worldwide.

To combat this, audio and video watermarking tools are used to detect pirates and their favorite locations. In addition, night-vision goggles and other spy tech are employed to monitor moviegoers during high profile film premieres.

Despite these efforts, so-called ‘cam’ releases of hundreds of films still end up on pirate sites.

In fact, the majority of all new pirated movies that appear online can be traced to a digital recording in a movie theater. This can be the movie itself, the audio, or both. The good news for the movie industry is that the total number seems to be dropping somewhat.

According to statistics gathered by the MPAA, 447 illegal recording of its members’ movies were detected in 2017. This is down 11% compared to the year before when 503 titles were recorded. This suggests that enforcement actions and preventive measures are paying off. However, this is not visible everywhere.

This week Kevin Rosenbaum of the International Intellectual Property Alliance (IIPA), which represents various industry groups including the MPAA, informed the US International Trade Commission that camcording piracy is on the rise in Russia.

In his oral testimony, Rosenbaum signaled three key copyright issues in Russia that deserve attention from the US Government.

“First is to dramatically improve enforcement against online piracy, particularly piracy sites and services directed to users outside of Russia,” Rosenbaum said.

In addition, the country also has to address the problem with the Russian collecting societies, to effectively handle music licensing. These currently lack transparency or good governance, IIPA noted.

The third issue that needs attention is camcording piracy. According to IIPA’s statement, there has been a dramatic increase in illegally recorded movies over the past several years.

“Russia must address the problem of camcording motion pictures, which has risen dramatically over the past three years (200% since 2015) and fuels online piracy,” Rosenbaum noted.

In 2015 the movie industry traced 26 camcorded copies to Russia and by last year this number had increased to 78. These releases are linked to movie theaters around the country, from Moscow, Kazan, Tatarstan, St. Petersburg, all the way up to Siberia.

The Russian camcording piracy problem was also highlighted in IIPA’s recent Special 301 submission to the US Trade Representative.

“Russia remains the home to some of the world’s most prolific criminal release groups of motion pictures.” IIPA wrote last month. “The illicit camcords that are sourced from Russia are only of fair quality, but they remain in high demand by international criminal syndicates.”

With help from the Russian-Anti Piracy Organization over a dozen cammers were caught last year. In addition, four criminal cases were launched.

IIPA hopes that these will result in convictions, to create a deterrent effect. In addition, the group highlights that Russia could strengthen its laws, perhaps with a little push from the US.

A copy of Kevin Rosenbaum’s statement before the United States International Trade Commission is available here (pdf). In addition to Russia, it also highlights issues in other countries.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons

Welcome Alex!

Post Syndicated from Yev original https://www.backblaze.com/blog/welcome-alex/

As we sail past 500 Petabytes of data stored, our Operations Department continues to grow. To that end we’ve added a brand new member to our Operations and Engineering teams, Alex! He straddles the line between Ops and Engineering, working on both internal and external systems – making sure they run smoothly. Lets learn a bit more about Alex, shall we?

What is your Backblaze Title?
Operations Engineer.

Where are you originally from?
Chicago, IL.

What attracted you to Backblaze?
The company mission and overall transparency really appealed to me. It was a great opportunity to work in an environment that aligned with my core values.

What do you expect to learn while being at Backblaze?
I expect to learn more about modern cloud technologies and data center deployments.

Where else have you worked?
I worked at a startup called Cleversafe out of college which was later acquired by IBM.

Where did you go to school?
University of Illinois at Urbana-Champaign

What’s your dream job?
NHL general manager.

Favorite place you’ve traveled?
The Cinque Terre. It’s a set of small towns along the Italian Riviera that has great hiking.

Favorite hobby?
Playing hockey.

Of what achievement are you most proud?
Graduating college with two engineering degrees.

Star Trek or Star Wars?
Neither.

Favorite food?
Homemade pizza.

Why do you like certain things?
Life’s too short not to like certain things.

Cinque Terre is definitely one of the most beautiful places on earth, as long as you don’t visit on a foggy day! If you happen to find the perfect NHL job, we’ll understand! Oh, and thanks for bringing Cosmo to the office on occasion! Welcome aboard!

The post Welcome Alex! appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

Preparing for AWS Certificate Manager (ACM) Support of Certificate Transparency

Post Syndicated from Jonathan Kozolchyk original https://aws.amazon.com/blogs/security/how-to-get-ready-for-certificate-transparency/

 

Update from March 27, 2018: On March 27, 2018, we updated ACM APIs so that you can disable Certificate Transparency logging on a per-certificate basis.


Starting April 30, 2018, Google Chrome will require all publicly trusted certificates issued after this date to be logged in at least two Certificate Transparency logs. This means that any certificate issued that is not logged will result in an error message in Google Chrome. Beginning April 24, 2018, Amazon will log all new and renewed certificates in at least two public logs unless you disable Certificate Transparency logging.

Without Certificate Transparency, it can be difficult for a domain owner to know if an unexpected certificate was issued for their domain. Under the current system, no record is kept of certificates being issued, and domain owners do not have a reliable way to identify rogue certificates.

To address this situation, Certificate Transparency creates a cryptographically secure log of each certificate issued. Domain owners can search the log to identify unexpected certificates, whether issued by mistake or malice. Domain owners can also identify Certificate Authorities (CAs) that are improperly issuing certificates. In this blog post, I explain more about Certificate Transparency and tell you how to prepare for it.

How does Certificate Transparency work?

When a CA issues a publicly trusted certificate, the CA must submit the certificate to one or more Certificate Transparency log servers. The Certificate Transparency log server responds with a signed certificate timestamp (SCT) that confirms the log server will add the certificate to the list of known certificates. The SCT is then embedded in the certificate and delivered automatically to a browser. The SCT is like a receipt that proves the certificate was published into the Certificate Transparency log. Starting April 30, Google Chrome will require an SCT as proof that the certificate was published to a Certificate Transparency log in order to trust the certificate without displaying an error message.

What is Amazon doing to support Certificate Transparency?

Certificate Transparency is a good practice. It enables AWS customers to be more confident that an unauthorized certificate hasn’t been issued by a CA. Beginning on April 24, 2018, Amazon will log all new and renewed certificates in at least two Certificate Transparency logs unless you disable Certificate Transparency logging.

We recognize that there can be times when our customers do not want to log certificates. For example, if you are building a website for an unreleased product and have registered the subdomain, newproduct.example.com, requesting a logged certificate for your domain will make it publicly known that the new product is coming. Certificate Transparency logging also can expose server hostnames that you want to keep private. Hostnames such as payments.example.com can reveal the purpose of a server and provide attackers with information about your private network. These logs do not contain the private key for your certificate. For these reasons, on March 27, 2018 we updated ACM APIs so that you can disable Certificate Transparency logging on a per-certificate basis using the ACM APIs or with the AWS CLI. Doing so will lead to errors in Google Chrome, which may be preferable to exposing the information.

Please refer to ACM documentation for specifics on how to opt out of Certificate Transparency logging.

Conclusion

Beginning April 24, 2018, ACM will begin logging all new and renewed certificates by default. If you don’t want a certificate to be logged, you’ll be able to opt out using the AWS API or CLI. However, for Google Chrome to trust the certificate, all issued or imported certificates must have the SCT information embedded in them by April 30, 2018.

If you have comments about this blog post, submit them in the “Comments” section below. If you have questions, start a new thread in the ACM forum.

– Jonathan

Interested in AWS Security news? Follow the AWS Security Blog on Twitter.

Election Security

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/02/election_securi_2.html

I joined a letter supporting the Secure Elections Act (S. 2261):

The Secure Elections Act strikes a careful balance between state and federal action to secure American voting systems. The measure authorizes appropriation of grants to the states to take important and time-sensitive actions, including:

  • Replacing insecure paperless voting systems with new equipment that will process a paper ballot;
  • Implementing post-election audits of paper ballots or records to verify electronic tallies;

  • Conducting “cyber hygiene” scans and “risk and vulnerability” assessments and supporting state efforts to remediate identified vulnerabilities.

    The legislation would also create needed transparency and accountability in elections systems by establishing clear protocols for state and federal officials to communicate regarding security breaches and emerging threats.

Backblaze and GDPR

Post Syndicated from Andy Klein original https://www.backblaze.com/blog/gdpr-compliance/

GDPR General Data Protection Regulation

Over the next few months the noise over GDPR will finally reach a crescendo. For the uninitiated, “GDPR” stands for “General Data Protection Regulation” and it goes into effect on May 25th of this year. GDPR is designed to protect how personal information of EU (European Union) citizens is collected, stored, and shared. The regulation should also improve transparency as to how personal information is managed by a business or organization.

Backblaze fully expects to be GDPR compliant when May 25th rolls around and we thought we’d share our experience along the way. We’ll start with this post as an introduction to GDPR. In future posts, we’ll dive into some of the details of the process we went through in meeting the GDPR objectives.

GDPR: A Two Way Street

To ensure we are GDPR compliant, Backblaze has assembled a dedicated internal team, engaged outside counsel in the United Kingdom, and consulted with other tech companies on best practices. While it is a sizable effort on our part, we view this as a waypoint in our ongoing effort to secure and protect our customers’ data and to be transparent in how we work as a company.

In addition to the effort we are putting into complying with the regulation, we think it is important to underscore and promote the idea that data privacy and security is a two-way street. We can spend millions of dollars on protecting the security of our systems, but we can’t stop a bad actor from finding and using your account credentials left on a note stuck to your monitor. We can give our customers tools like two factor authentication and private encryption keys, but it is the partnership with our customers that is the most powerful protection. The same thing goes for your digital privacy — we’ll do our best to protect your information, but we will need your help to do so.

Why GDPR is Important

At the center of GDPR is the protection of Personally Identifiable Information or “PII.” The definition for PII is information that can be used stand-alone or in concert with other information to identify a specific person. This includes obvious data like: name, address, and phone number, less obvious data like email address and IP address, and other data such as a credit card number, and unique identifiers that can be decoded back to the person.

How Will GDPR Affect You as an Individual

If you are a citizen in the EU, GDPR is designed to protect your private information from being used or shared without your permission. Technically, this only applies when your data is collected, processed, stored or shared outside of the EU, but it’s a good practice to hold all of your service providers to the same standard. For example, when you are deciding to sign up with a service, you should be able to quickly access and understand what personal information is being collected, why it is being collected, and what the business can do with that information. These terms are typically found in “Terms and Conditions” and “Privacy Policy” documents, or perhaps in a written contract you signed before starting to use a given service or product.

Even if you are not a citizen of the EU, GDPR will still affect you. Why? Because nearly every company you deal with, especially online, will have customers that live in the EU. It makes little sense for Backblaze, or any other service provider or vendor, to create a separate set of rules for just EU citizens. In practice, protection of private information should be more accountable and transparent with GDPR.

How Will GDPR Affect You as a Backblaze Customer

Over the coming months Backblaze customers will see changes to our current “Terms and Conditions,” “Privacy Policy,” and to our Backblaze services. While the changes to the Backblaze services are expected to be minimal, the “terms and privacy” documents will change significantly. The changes will include among other things the addition of a group of model clauses and related materials. These clauses will be generally consistent across all GDPR compliant vendors and are meant to be easily understood so that a customer can easily determine how their PII is being collected and used.

Common GDPR Questions:

Here are a few of the more common questions we have heard regarding GDPR.

  1. GDPR will only affect citizens in the EU.
    Answer: The changes that are being made by companies such as Backblaze to comply with GDPR will almost certainly apply to customers from all countries. And that’s a good thing. The protections afforded to EU citizens by GDPR are something all users of our service should benefit from.
  2. After May 25, 2018, a citizen of the EU will not be allowed to use any applications or services that store data outside of the EU.
    Answer: False, no one will stop you as an EU citizen from using the internet-based service you choose. But, you should make sure you know where your data is being collected, processed, and stored. If any of those activities occur outside the EU, make sure the company is following the GDPR guidelines.
  3. My business only has a few EU citizens as customers, so I don’t need to care about GDPR?
    Answer: False, even if you have just one EU citizen as a customer, and you capture, process or store data their PII outside of the EU, you need to comply with GDPR.
  4. Companies can be fined millions of dollars for not complying with GDPR.
    Answer:
    True, but: the regulation allows for companies to be fined up to $4 Million dollars or 20% of global revenue (whichever is greater) if they don’t comply with GDPR. In practice, the feeling is that such fines will be reserved (at least initially) for egregious violators that ignore or merely give “lip-service” to GDPR.
  5. You’ll be able to tell a company is GDPR compliant because they have a “GDPR Certified” badge on their website.
    Answer: There is no official GDPR certification or an official GDPR certification program. Companies that comply with GDPR are expected to follow the articles in the regulation and it should be clear from the outside looking in that they have followed the regulations. For example, their “Terms and Conditions,” and “Privacy Policy” should clearly spell out how and why they collect, use, and share your information. At some point a real GDPR certification program may be adopted, but not yet.

For all the hoopla about GDPR, the regulation is reasonably well thought out and addresses a very important issue — people’s privacy online. Creating a best practices document, or in this case a regulation, that companies such as Backblaze can follow is a good idea. The document isn’t perfect, and over the coming years we expect there to be changes. One thing we hope for is that the countries within the EU continue to stand behind one regulation and not fragment the document into multiple versions, each applying to themselves. We believe that having multiple different GDPR versions for different EU countries would lead to less protection overall of EU citizens.

In summary, GDPR changes are coming over the next few months. Backblaze has our internal staff and our EU-based legal council working diligently to ensure that we will be GDPR compliant by May 25th. We believe that GDPR will have a positive effect in enhancing the protection of personally identifiable information for not only EU citizens, but all of our Backblaze customers.

The post Backblaze and GDPR appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

Early Challenges: Making Critical Hires

Post Syndicated from Gleb Budman original https://www.backblaze.com/blog/early-challenges-making-critical-hires/

row of potential employee hires sitting waiting for an interview

In 2009, Google disclosed that they had 400 recruiters on staff working to hire nearly 10,000 people. Someday, that might be your challenge, but most companies in their early days are looking to hire a handful of people — the right people — each year. Assuming you are closer to startup stage than Google stage, let’s look at who you need to hire, when to hire them, where to find them (and how to help them find you), and how to get them to join your company.

Who Should Be Your First Hires

In later stage companies, the roles in the company have been well fleshed out, don’t change often, and each role can be segmented to focus on a specific area. A large company may have an entire department focused on just cubicle layout; at a smaller company you may not have a single person whose actual job encompasses all of facilities. At Backblaze, our CTO has a passion and knack for facilities and mostly led that charge. Also, the needs of a smaller company are quick to change. One of our first hires was a QA person, Sean, who ended up being 100% focused on data center infrastructure. In the early stage, things can shift quite a bit and you need people that are broadly capable, flexible, and most of all willing to pitch in where needed.

That said, there are times you may need an expert. At a previous company we hired Jon, a PhD in Bayesian statistics, because we needed algorithmic analysis for spam fighting. However, even that person was not only able and willing to do the math, but also code, and to not only focus on Bayesian statistics but explore a plethora of spam fighting options.

When To Hire

If you’ve raised a lot of cash and are willing to burn it with mistakes, you can guess at all the roles you might need and start hiring for them. No judgement: that’s a reasonable strategy if you’re cash-rich and time-poor.

If your cash is limited, try to see what you and your team are already doing and then hire people to take those jobs. It may sound counterintuitive, but if you’re already doing it presumably it needs to be done, you have a good sense of the type of skills required to do it, and you can bring someone on-board and get them up to speed quickly. That then frees you up to focus on tasks that can’t be done by someone else. At Backblaze, I ran marketing internally for years before hiring a VP of Marketing, making it easier for me to know what we needed. Once I was hiring, my primary goal was to find someone I could trust to take that role completely off of me so I could focus solely on my CEO duties

Where To Find the Right People

Finding great people is always difficult, particularly when the skillsets you’re looking for are highly in-demand by larger companies with lots of cash and cachet. You, however, have one massive advantage: you need to hire 5 people, not 5,000.

People You Worked With

The absolutely best people to hire are ones you’ve worked with before that you already know are good in a work situation. Consider your last job, the one before, and the one before that. A significant number of the people we recruited at Backblaze came from our previous startup MailFrontier. We knew what they could do and how they would fit into the culture, and they knew us and thus could quickly meld into the environment. If you didn’t have a previous job, consider people you went to school with or perhaps individuals with whom you’ve done projects previously.

People You Know

Hiring friends, family, and others can be risky, but should be considered. Sometimes a friend can be a “great buddy,” but is not able to do the job or isn’t a good fit for the organization. Having to let go of someone who is a friend or family member can be rough. Have the conversation up front with them about that possibility, so you have the ability to stay friends if the position doesn’t work out. Having said that, if you get along with someone as a friend, that’s one critical component of succeeding together at work. At Backblaze we’ve hired a number of people successfully that were friends of someone in the organization.

Friends Of People You Know

Your network is likely larger than you imagine. Your employees, investors, advisors, spouses, friends, and other folks all know people who might be a great fit for you. Make sure they know the roles you’re hiring for and ask them if they know anyone that would fit. Search LinkedIn for the titles you’re looking for and see who comes up; if they’re a 2nd degree connection, ask your connection for an introduction.

People You Know About

Sometimes the person you want isn’t someone anyone knows, but you may have read something they wrote, used a product they’ve built, or seen a video of a presentation they gave. Reach out. You may get a great hire: worst case, you’ll let them know they were appreciated, and make them aware of your organization.

Other Places to Find People

There are a million other places to find people, including job sites, community groups, Facebook/Twitter, GitHub, and more. Consider where the people you’re looking for are likely to congregate online and in person.

A Comment on Diversity

Hiring “People You Know” can often result in “Hiring People Like You” with the same workplace experiences, culture, background, and perceptions. Some studies have shown [1, 2, 3, 4] that homogeneous groups deliver faster, while heterogeneous groups are more creative. Also, “Hiring People Like You” often propagates the lack of women and minorities in tech and leadership positions in general. When looking for people you know, keep an eye to not discount people you know who don’t have the same cultural background as you.

Helping People To Find You

Reaching out proactively to people is the most direct way to find someone, but you want potential hires coming to you as well. To do this, they have to a) be aware of you, b) know you have a role they’re interested in, and c) think they would want to work there. Let’s tackle a) and b) first below.

Your Blog

I started writing our blog before we launched the product and talked about anything I found interesting related to our space. For several years now our team has owned the content on the blog and in 2017 over 1.5 million people read it. Each time we have a position open it’s published to the blog. If someone finds reading about backup and storage interesting, perhaps they’d want to dig in deeper from the inside. Many of the people we’ve recruited have mentioned reading the blog as either how they found us or as a factor in why they wanted to work here.
[BTW, this is Gleb’s 200th post on Backblaze’s blog. The first was in 2008. — Editor]

Your Email List

In addition to the emails our blog subscribers receive, we send regular emails to our customers, partners, and prospects. These are largely focused on content we think is directly useful or interesting for them. However, once every few months we include a small mention that we’re hiring, and the positions we’re looking for. Often a small blurb is all you need to capture people’s imaginations whether they might find the jobs interesting or can think of someone that might fit the bill.

Your Social Involvement

Whether it’s Twitter or Facebook, Hacker News or Slashdot, your potential hires are engaging in various communities. Being socially involved helps make people aware of you, reminds them of you when they’re considering a job, and paints a picture of what working with you and your company would be like. Adam was in a Reddit thread where we were discussing our Storage Pods, and that interaction was ultimately part of the reason he left Apple to come to Backblaze.

Convincing People To Join

Once you’ve found someone or they’ve found you, how do you convince them to join? They may be currently employed, have other offers, or have to relocate. Again, while the biggest companies have a number of advantages, you might have more unique advantages than you realize.

Why Should They Join You

Here are a set of items that you may be able to offer which larger organizations might not:

Role: Consider the strengths of the role. Perhaps it will have broader scope? More visibility at the executive level? No micromanagement? Ability to take risks? Option to create their own role?

Compensation: In addition to salary, will their options potentially be worth more since they’re getting in early? Can they trade-off salary for more options? Do they get option refreshes?

Benefits: In addition to healthcare, food, and 401(k) plans, are there unique benefits of your company? One company I knew took the entire team for a one-month working retreat abroad each year.

Location: Most people prefer to work close to home. If you’re located outside of the San Francisco Bay Area, you might be at a disadvantage for not being in the heart of tech. But if you find employees close to you you’ve got a huge advantage. Sometimes it’s micro; even in the Bay Area the difference of 5 miles can save 20 minutes each way every day. We located the Backblaze headquarters in San Mateo, a middle-ground that made it accessible to those coming from San Jose and San Francisco. We also chose a downtown location near a train, restaurants, and cafes: all to make it easier and more pleasant. Also, are you flexible in letting your employees work remotely? Our systems administrator Elliott is about to embark on a long-term cross-country journey working from an RV.

Environment: Open office, cubicle, cafe, work-from-home? Loud/quiet? Social or focused? 24×7 or work-life balance? Different environments appeal to different people.

Team: Who will they be working with? A company with 100,000 people might have 100 brilliant ones you’d want to work with, but ultimately we work with our core team. Who will your prospective hires be working with?

Market: Some people are passionate about gaming, others biotech, still others food. The market you’re targeting will get different people excited.

Product: Have an amazing product people love? Highlight that. If you’re lucky, your potential hire is already a fan.

Mission: Curing cancer, making people happy, and other company missions inspire people to strive to be part of the journey. Our mission is to make storing data astonishingly easy and low-cost. If you care about data, information, knowledge, and progress, our mission helps drive all of them.

Culture: I left this for last, but believe it’s the most important. What is the culture of your company? Finding people who want to work in the culture of your organization is critical. If they like the culture, they’ll fit and continue it. We’ve worked hard to build a culture that’s collaborative, friendly, supportive, and open; one in which people like coming to work. For example, the five founders started with (and still have) the same compensation and equity. That started a culture of “we’re all in this together.” Build a culture that will attract the people you want, and convey what the culture is.

Writing The Job Description

Most job descriptions focus on the all the requirements the candidate must meet. While important to communicate, the job description should first sell the job. Why would the appropriate candidate want the job? Then share some of the requirements you think are critical. Remember that people read not just what you say but how you say it. Try to write in a way that conveys what it is like to actually be at the company. Ahin, our VP of Marketing, said the job description itself was one of the things that attracted him to the company.

Orchestrating Interviews

Much can be said about interviewing well. I’m just going to say this: make sure that everyone who is interviewing knows that their job is not only to evaluate the candidate, but give them a sense of the culture, and sell them on the company. At Backblaze, we often have one person interview core prospects solely for company/culture fit.

Onboarding

Hiring success shouldn’t be defined by finding and hiring the right person, but instead by the right person being successful and happy within the organization. Ensure someone (usually their manager) provides them guidance on what they should be concentrating on doing during their first day, first week, and thereafter. Giving new employees opportunities and guidance so that they can achieve early wins and feel socially integrated into the company does wonders for bringing people on board smoothly

In Closing

Our Director of Production Systems, Chris, said to me the other day that he looks for companies where he can work on “interesting problems with nice people.” I’m hoping you’ll find your own version of that and find this post useful in looking for your early and critical hires.

Of course, I’d be remiss if I didn’t say, if you know of anyone looking for a place with “interesting problems with nice people,” Backblaze is hiring. 😉

The post Early Challenges: Making Critical Hires appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

Blame privacy activists for the Memo??

Post Syndicated from Robert Graham original http://blog.erratasec.com/2018/02/blame-privacy-activists-for-memo.html

Former FBI agent Asha Rangappa @AshaRangappa_ has a smart post debunking the Nunes Memo, then takes it all back again with an op-ed on the NYTimes blaming us privacy activists. She presents an obviously false narrative that the FBI and FISA courts are above suspicion.

I know from first hand experience the FBI is corrupt. In 2007, they threatened me, trying to get me to cancel a talk that revealed security vulnerabilities in a large corporation’s product. Such abuses occur because there is no transparency and oversight. FBI agents write down our conversation in their little notebooks instead of recording it, so that they can control the narrative of what happened, presenting their version of the converstion (leaving out the threats). In this day and age of recording devices, this is indefensible.

She writes “I know firsthand that it’s difficult to get a FISA warrant“. Yes, the process was difficult for her, an underling, to get a FISA warrant. The process is different when a leader tries to do the same thing.

I know this first hand having casually worked as an outsider with intelligence agencies. I saw two processes in place: one for the flunkies, and one for those above the system. The flunkies constantly complained about how there is too many process in place oppressing them, preventing them from getting their jobs done. The leaders understood the system and how to sidestep those processes.

That’s not to say the Nunes Memo has merit, but it does point out that privacy advocates have a point in wanting more oversight and transparency in such surveillance of American citizens.

Blaming us privacy advocates isn’t the way to go. It’s not going to succeed in tarnishing us, but will push us more into Trump’s camp, causing us to reiterate that we believe the FBI and FISA are corrupt.

Huang: Spectre/Meltdown Pits Transparency Against Liability

Post Syndicated from corbet original https://lwn.net/Articles/746111/rss

Here’s a blog post
from “bunnie” Huang
on the tension between transparency and product
liability around hardware flaws. “The open source community could
use the Spectre/Meltdown crisis as an opportunity to reform the status
quo. Instead of suing Intel for money, what if we sue Intel for
documentation? If documentation and transparency have real value, then this
is a chance to finally put that value in economic terms that Intel
shareholders can understand. I propose a bargain somewhere along these
lines: if Intel releases comprehensive microarchitectural hardware design
specifications, microcode, firmware, and all software source code (e.g. for
AMT/ME) so that the community can band together to hammer out any other
security bugs hiding in their hardware, then Intel is absolved of any
payouts related to the Spectre/Meltdown exploits.

Early Challenges: Managing Cash Flow

Post Syndicated from Gleb Budman original https://www.backblaze.com/blog/managing-cash-flow/

Cash flow projection charts

This post by Backblaze’s CEO and co-founder Gleb Budman is the eighth in a series about entrepreneurship. You can choose posts in the series from the list below:

  1. How Backblaze got Started: The Problem, The Solution, and the Stuff In-Between
  2. Building a Competitive Moat: Turning Challenges Into Advantages
  3. From Idea to Launch: Getting Your First Customers
  4. How to Get Your First 1,000 Customers
  5. Surviving Your First Year
  6. How to Compete with Giants
  7. The Decision on Transparency
  8. Early Challenges: Managing Cash Flow

Use the Join button above to receive notification of new posts in this series.

Running out of cash is one of the quickest ways for a startup to go out of business. When you are starting a company the question of where to get cash is usually the top priority, but managing cash flow is critical for every stage in the lifecycle of a company. As a primarily bootstrapped but capital-intensive business, managing cash flow at Backblaze was and still is a key element of our success and requires continued focus. Let’s look at what we learned over the years.

Raising Your Initial Funding

When starting a tech business in Silicon Valley, the default assumption is that you will immediately try to raise venture funding. There are certainly many advantages to raising funding — not the least of which is that you don’t need to be cash-flow positive since you have cash in the bank and the expectation is that you will have a “burn rate,” i.e. you’ll be spending more than you make.

Note: While you’re not expected to be cash-flow positive, that doesn’t mean you don’t have to worry about cash. Cash-flow management will determine your burn rate. Whether you can get to cash-flow breakeven or need to raise another round of funding is a direct byproduct of your cash flow management.

Also, raising funding takes time (most successful fundraising cycles take 3-6 months start-to-finish), and time at a startup is in short supply. Constantly trying to raise funding can take away from product development and pursuing growth opportunities. If you’re not successful in raising funding, you then have to either shut down or find an alternate method of funding the business.

Sources of Funding

Depending on the stage of the company, type of company, and other factors, you may have access to different sources of funding. Let’s list a number of them:

Customers

Sales — the best kind of funding. It is non-dilutive, doesn’t have to be paid back, and is a direct metric of the success of your company.

Pre-Sales — some customers may be willing to pay you for a product in beta, a test, or pre-pay for a product they’ll receive when finished. Pre-Sales income also is great because it shares the characteristics of cash from sales, but you get the cash early. It also can be a good sign that the product you’re building fills a market need. We started charging for Backblaze computer backup while it was still in private beta, which allowed us to not only collect cash from customers, but also test the billing experience and users’ real desire for the service.

Services — if you’re a service company and customers are paying you for that, great. You can effectively scale for the number of hours available in a day. As demand grows, you can add more employees to increase the total number of billable hours.

Note: If you’re a product company and customers are paying you to consult, that can provide much needed cash, and could provide feedback toward the right product. However, it can also distract from your core business, send you down a path where you’re building a product for a single customer, and addict you to a path that prevents you from building a scalable business.

Investors

Yourself — you likely are putting your time into the business, and deferring salary in the process. You may also put your own cash into the business either as an investment or a loan.

Angels — angels are ideal as early investors since they are used to investing in businesses with little to no traction. AngelList is a good place to find them, though finding people you’re connected with through someone that knows you well is best.

Crowdfunding — a component of the JOBS Act permitted entrepreneurs to raise money from nearly anyone since May 2016. The SEC imposes limits on both investors and the companies. This article goes into some depth on the options and sites available.

VCs — VCs are ideal for companies that need to raise at least a few million dollars and intend to build a business that will be worth over $1 billion.

Debt

Friends & Family — F&F are often the first people to give you money because they are investing in you. It’s great to have some early supporters, but it also can be risky to take money from people who aren’t used to the risks. The key advice here is to only take money from people who won’t mind losing it. If someone is talking about using their children’s college funds or borrowing from their 401k, say ‘no thank you’ — even if they’re sure they want to loan you money.

Bank Loans — a variety of loan types exist, but most either require the company to have been operational for a couple years, be able to borrow against money the company has or is making, or be able to get a personal guarantee from the founders whereby their own credit is on the line. Fundera provides a good overview of loan options and can help secure some, but most will not be an option for a brand new startup.

Grants

Government — in some areas there is the potential for government grants to facilitate research. The SBIR program facilitates some such grants.

At Backblaze, we used a number of these options:

• Investors/Yourself
We loaned a cumulative total of a couple hundred thousand dollars to the company and invested our time by going without a salary for a year and a half.
• Customers/Pre-Sales
We started selling the Backblaze service while it was still in beta.
• Customers/Sales
We launched v1.0 and kept selling.
• Investors/Angels
After a year and a half, we raised $370k from 11 angels. All of them were either people whom we knew personally or were a strong recommendation from a mutual friend.
• Debt/Loans
After a couple years we were able to get equipment leases whereby the Storage Pods and hard drives were used as collateral to secure the lease on them.
• Investors/VCs
Ater five years we raised $5m from TMT Investments to add to the balance sheet and invest in growth.

The variety and quantity of sources we used is by no means uncommon.

GAAP vs. Cash

Most companies start tracking financials based on cash, and as they scale they switch to GAAP (Generally Accepted Accounting Principles). Cash is easier to track — we got paid $XXXX and spent $YYY — and as often mentioned, is required for the business to stay alive. GAAP has more subtlety and complexity, but provides a clearer picture of how the business is really doing. Backblaze was on a ‘cash’ system for the first few years, then switched to GAAP. For this post, I’m going to focus on things that help cash flow, not GAAP profitability.

Stages of Cash Flow Management

All-spend

In a pure service business (e.g. solo proprietor law firm), you may have no expenses other than your time, so this stage doesn’t exist. However, in a product business there is a period of time where you are building the product and have nothing to sell. You have zero cash coming in, but have cash going out. Your cash-flow is completely negative and you need funds to cover that.

Sales-generating

Starting to see cash come in from customers is thrilling. I initially had our system set up to email me with every $5 payment we received. You’re making sales, but not covering expenses.

Ramen-profitable

But it takes a lot of $5 payments to pay for servers and salaries, so for a while expenses are likely to outstrip sales. Getting to ramen-profitable is a critical stage where sales cover the business expenses and are “paying enough for the founders to eat ramen.” This extends the runway for a business, but is not completely sustainable, since presumably the founders can’t (or won’t) live forever on a subsistence salary.

Business-profitable

This is the ultimate stage whereby the business is truly profitable, including paying everyone market-rate salaries. A business at this stage is self-sustaining. (Of course, market shifts and plenty of other challenges can kill the business, but cash-flow issues alone will not.)

Note, I’m using the word ‘profitable’ here to mean this is still on a cash-basis.

Backblaze was in the all-spend stage for just over a year, during which time we built the service and hadn’t yet made the service available to customers. Backblaze was in the sales-generating stage for nearly another year before the company was barely ramen-profitable where sales were covering the company expenses and paying the founders minimum wage. (I say ‘barely’ since minimum wage in the SF Bay Area is arguably never subsistence.) It took almost three more years before the company was business-profitable, paying everyone including the founders market-rate.

Cash Flow Forecasting

When raising funding it’s helpful to think of milestones reached. You don’t necessarily need enough cash on day one to last for the next 100 years of the company. Some good milestones to consider are how much cash you need to prove there is a market need, prove you can build a product to meet that need, or get to ramen-profitable.

Two things to consider:

1) Unit Economics (COGS)

If your product is 100% software, this may not be relevant. Once software is built it costs effectively nothing to deliver the product to one customer or one million customers. However, in most businesses there is some incremental cost to provide the product. If you’re selling a hardware device, perhaps you sell it for $100 but it costs you $50 to make it. This is called “COGS” (Cost of Goods Sold).

Many products rely on cloud services where the costs scale with growth. That model works great, but it’s still important to understand what the costs are for the cloud service you use per unit of product you sell.

Support is often done by the founders early-on in a business, but that is another real cost to factor in and estimate on a per-user basis. Taking all of the per unit costs combined, you may charge $10/month/user for your service, but if it costs you $7/month/user in cloud services, you’re only netting $3/month/user.

2) Operating Expenses (OpEx)

These are expenses that don’t scale with the number of product units you sell. Typically this includes research & development, sales & marketing, and general & administrative expenses. Presumably there is a certain level of these functions required to build the product, market it, sell it, and run the organization. You can choose to invest or cut back on these, but you’ll still make the same amount per product unit.

Incremental Net Profit Per Unit

If you’ve calculated your COGS and your unit economics are “upside down,” where the amount you charge is less than that it costs you to provide your service, it’s worth thinking hard about how that’s going to change over time. If it will not change, there is no scale that will make the business work. Presuming you do make money on each unit of product you sell — what is sometimes referred to as “Contribution Margin” — consider how many of those product units you need to sell to cover your operating expenses as described above.

Calculating Your Profit

The math on getting to ramen-profitable is simple:

(Number of Product Units Sold x Contribution Margin) - Operating Expenses = Profit

If your operating expenses include subsistence salaries for the founders and profit > $0, you’re ramen-profitable.

Improving Cash Flow

Having access to sources of cash, whether from selling to customers or other methods, is excellent. But needing less cash gives you more choices and allows you to either dilute less, owe less, or invest more.

There are two ways to improve cash flow:

1) Collect More Cash

The best way to collect more cash is to provide more value to your customers and as a result have them pay you more. Additional features/products/services can allow this. However, you can also collect more cash by changing how you charge for your product. If you have a subscription, changing from charging monthly to yearly dramatically improves your cash flow. If you have a product that customers use up, selling a year’s supply instead of selling them one-by-one can help.

2) Spend Less Cash

Reducing COGS is a fantastic way to spend less cash in a scalable way. If you can do this without harming the product or customer experience, you win. There are a myriad of ways to also reduce operating expenses, including taking sub-market salaries, using your home instead of renting office space, staying focused on your core product, etc.

Ultimately, collecting more and spending less cash dramatically simplifies the process of getting to ramen-profitable and later to business-profitable.

Be Careful (Why GAAP Matters)

A word of caution: while running out of cash will put you out of business immediately, overextending yourself will likely put you out of business not much later. GAAP shows how a business is really doing; cash doesn’t. If you only focus on cash, it is possible to commit yourself to both delivering products and repaying loans in the future in an unsustainable fashion. If you’re taking out loans, watch the total balance and monthly payments you’re committing to. If you’re asking customers for pre-payment, make sure you believe you can deliver on what they’ve paid for.

Summary

There are numerous challenges to building a business, and ensuring you have enough cash is amongst the most important. Having the cash to keep going lets you keep working on all of the other challenges. The frameworks above were critical for maintaining Backblaze’s cash flow and cash balance. Hopefully you can take some of the lessons we learned and apply them to your business. Let us know what works for you in the comments below.

The post Early Challenges: Managing Cash Flow appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

Are Torrent Sites Using DMCA Notices to Quash Their Competition?

Post Syndicated from Ernesto original https://torrentfreak.com/are-torrent-sites-using-dmca-notices-to-quash-their-competition-180114/

Every day, copyright holders send out millions of takedown notices to various services, hoping to protect their works.

While most of these requests are legitimate, the process is also being abused. Google prominently features examples of such dubious DMCA requests in its transparency report.

This week we were contacted by the owner of YTS.me after he noticed some unusual activity. In recent weeks his domain name has been targeted with a series of takedown notices from rather unusual people.

Senders with names such as Niklas Glockner, Michelle Williams, Maria Baader, Stefan Kuefer, Anja Herzog, and Markus Ostermann asked Google to remove thousands of YTS.me URLs.

Every notice lists just one movie title, but hundreds of links, most of which have nothing to do with the movie in question.

A few URLs from a single notice

These submitters are all relatively new and there is no sign that they are authorized by the applicable copyright holder. This, and the long list of irrelevant URLs suggest that these DMCA notices are abusive.

The owner of YTS.me believes that the senders have a clear motive. The purpose of the notices is to remove well-ranked pages and push the targeted sites down in Google’s search results.

“These all are fake people names submitting fake DMCA complaints and are not authorized to submit complaints,” the YTS.me operator notes.

“Even if they are real people they would have submitted, or are authorized to submit, complaints for only a few titles. Instead, they submit fake complaints and submit all the URLs possible on our website to degrade its ranking.”

The question that remains is, who is responsible for these notices? Looking at the list of sites that are targeted by these abusive senders we see a pattern emerge. They all target copycats of defunct sites such as YTS and ExtraTorrent.

Markus Osterman’s activity

This leads the YTS.me operator to the conclusion that one of its main competitors is sending these notices. While there is no hard evidence, it seems plausible that another YTS copycat is attempting to take the competition out of Google’s search results to gain more exposure itself.

YTS.me has a good idea of who the perpetrator(s) are – a person or group that also operates several other copycat sites. Thus far there’s no bulletproof evidence though, but it’s a likely explanation.

In any case, the DMCA takedown requests are definitely out of order and warrant further investigation by Google.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons

Blockchain Startup White Rabbit Calls on Pirate Sites to Do Business, Legally

Post Syndicated from Andy original https://torrentfreak.com/blockchain-startup-white-rabbit-calls-on-pirate-sites-to-do-business-legally-180102/

For as long as piracy has been mainstream, people have tried to find ways to monetize the system. While many have had good intentions, only models focusing on the negative (copyright trolling, for example) have enjoyed any level of success.

Blockchain startup White Rabbit is hoping to buck that trend but it’s not going to be easy. Then again, nothing worthwhile is, so what do they have to offer?

White Rabbit begins with the assumption that while they love their pirate sites, a many as 60% of pirates would happily reward creators if it was made easy enough. The startup deals with this by inviting pirates to carry on using the kinds of unauthorized sites and services they’re using already, but with a twist.

By installing the White Rabbit browser plug-in, the company will be able to see what content the user is accessing. It will then attempt to match that download to deals it’s made with the companies behind those movies or TV shows. They’ll then get paid a set amount.

“White Rabbit is a content ecosystem accessed through a plugin that recognizes the film and series you stream. The streaming sites are P2P or open server, meaning users can choose where they want to stream,” White Rabbit CEO Alan R. Milligan informs TF.

“We already have a library of films that have won and been nominated for Oscars, Cannes, Berlin and Venice film festival best film prizes – but will continue adding more films and series as we near launch.”

It’s envisioned that this mechanism will prove popular with reluctant pirates since instead of paying Netflix, Amazon, and dozens of other services, users can pay for content through one channel. And, since White Rabbit uses blockchain technology, rights holders can be ensured complete financial transparency, with user payments going straight to them without delay, cutting out the middleman.

“Users are anonymous but can offer filmmakers, artists or other content right holders (investors, distributors, sales agents) our tokens (WRT) as good faith that they are willing to pay for the content. Should the rights holders accept, we enter into a contract with the rights holder that allows them to receive revenue – and accept P2P streaming. We find, and research shows, that most people that are forced to piracy [do so] because they are just not able to access content,” Milligan adds.

White Rabbit’s CEO, who is a filmmaker himself, also sees opportunities to bring fans and filmmakers closer together. Once users have paid for content, they continue to get access via something called the Rabbit Hole, an interface which provides extras that are normally found on a DVD, such as deleted scenes etc.

The team behind White Rabbit describe themselves as “responsible rebels” hoping to spark a revolution. While that’s clearly the goal, by any measure there is a mountain to climb, not least on the content front.

When TorrentFreak first started speaking with the startup in October last year, we were told they were “closing in on 500 films” with contracts, although they wouldn’t elaborate on who might be on board. Nevertheless, that is quite a lot of movies, especially given the mainstream studios’ hatred of pirate sites and anything they might be involved in.

However, subsequent discussion suggests that those with more niche tastes might be White Rabbit’s initial target audience.

“I believe timing is of big relevance and right now a lot of producers are scared of where they´re going to go now that Netflix is enforcing its 50/50 policy. There are also so many amazing films out there that get no or little digital distribution at all,” Milligan says.

“As a Norwegian film producer there is little chance of the film being streamed in my home country – even if we won awards in Cannes and Venice. My latest film Valley of Shadows got US digital distribution, but in Norway – nada.

“My colleagues around the world are suffering the same way, not to mention all the fans who cant watch local films and series. So the indie part of the industry – which is most of us (and still representing 20-30% of cinema sales) – are very ready for change.”

But while indie producers could benefit nicely from White Rabbit, Milligan highlights problems that the big studios have, and suggests that they might like to see the startup succeed too.

“The studios will likely want to see our business model work – but they also have a problem with Netflix which has become a studio. So they´re competitors now, but Netflix has a 100M subscriber advantage. Will they all break out and create each their streaming site for their content only? That would be terrible for fans,” he notes.

That would indeed be a huge problem and it’s an issue we’ve raised here on TF on several occasions. However, if White Rabbit is to succeed, it needs to overcome significant hurdles. We raised just a handful of these with its CEO. First up, Partner Streaming Sites (PSS).

PSS sites appear to be pirate sites that will partner with White Rabbit, so the latter can tap into the formers’ userbases. When White Rabbit users stream ‘pirate’ content from a PSS, that content will be monetized, with the creator getting paid quickly and transparently. At that point, it seems, the content will become non-infringing.

But while that sounds intriguing in theory, plenty of questions remain. White Rabbit says it will share “up to $1M” from its token sale “with the most innovative, brand conscious, film and series loving streaming sites either already out there, planned or about to launch.”

The start-up says the best projects could get $100,000 each but, since its goal is to convert pirates, that necessarily means doing business with pirate sites.

So we asked; how will it be possible to do business with people that are regularly described as criminals? How will it then become possible to secure deals with filmmakers that will undoubtedly come under huge pressure from industry players not to participate in the White Rabbit scheme?

“What we are trying to do is to change digital distribution to everyone´s benefit. We have no interest in financing illegal content, we are interested in spurring innovation in streaming, access for fans and due payment for the rights holders,” Milligan explains.

“That´s what PSS can help us achieve using the WRT (White Rabbit Token) – that helps us find out who wants to be part of this model. No revenue exchanges hands until rights holders accept the token. What is important for rights holders is that we generate more revenue for them than current business models, and we haven´t even included the Rabbit Hole revenue yet.”

So what happens if a White Rabbit user tries to stream something that isn’t part of the program? According to Milligan, PSS sites must remove the content and let White Rabbit users know they must get the content legally elsewhere.

Clearly, the vast majority of pirate site users aren’t White Rabbit users now, nor will they be so in the future, so the removal of content is massively counter-productive for pirate sites. Indeed, it’s this reluctance to take down infringing content that causes them most of their problems.

So, hypothetically, what happens when the operators of streaming site X (that previously partnered with White Rabbit) get arrested and their site shut down for distributing Hollywood content that isn’t part of the program?

“PSS´s would never distribute illegal content, we are offering an opportunity to monetize. We are allowing a platform to those that see monetized P2P as beneficial to their income stream,” Milligan says.

“Hollywood is tricky though, I admit. The proof is in the pudding, so if we have to prove the value through indie and arthouse films first that´s OK. That is still 30% of the multi-billion dollar film market, so we are OK to start with that.”

The final issue is the price and where revenue goes. White Rabbit envisions a user paying $2 for film and $1 for a TV show, although producers are free to set their own price. That means 11 TV shows or five movies per month, given the Netflix model/budget of roughly $11.00 for the same period.

Revenue generated would then be split, with 75% going to the rightsholders, 15% to White Rabbit, and 10% to PSS sites. There’s also a provision for non-PSS sites to be a part of the program, but they would only get 5%, with the remaining 5% going to White Rabbit.

With an incredibly ambitious project like this, it’s easy to find reasons why it might not succeed or even fail to get off the ground. But the team behind the operation have lots of experience in relevant fields and from what we’ve seen are putting considerable effort into getting things moving, as their white paper (pdf) explains.

Currently, White Rabbit is seeking conversation with prospective Partner Streaming Sites, who will provide the content on which White Rabbit will survive. It will certainly be interesting to see which sites put themselves forward for consideration.

This is one of those projects that raises a dizzying volume of questions, with each living up to their billing as part of the Rabbit Hole. The big question is whether the Rabbit Hole will eventually lead to Wonderland or will render everyone who ventures inside feeling surreal and disorientated.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons

Facebook Rejects 31% of All Piracy Takedown Requests

Post Syndicated from Ernesto original https://torrentfreak.com/facebook-rejects-31-of-all-piracy-takedown-requests-171219/

As one of the largest user-generated platforms on the Internet, Facebook has to battle a constant stream of unauthorized copyright material.

To facilitate this process, Facebook has rolled out a few anti-piracy initiatives in recent years.

The company has a “Rights Manager” tool that automatically detects infringing material and allows owners to take down or monetize this content. In addition, Facebook uses the third-party service Audible Magic to spot and remove pirated music tracks.

Thus far, little was known about the number of copyright takedown requests Facebook processes every month, but new details released in its new transparency report a few hours ago provides some context.

During the first six months of 2017, a total of 224,464 requests were received by Facebook. One request can list a single post or file, but they can contain more items. During this period, 1,818,794 items were removed from Facebook, which is roughly 10,000 per day.

“Each report submitted by a rights holder is processed by our IP Operations team, which is a global team of trained professionals who provide around-the-clock coverage in multiple languages,” Facebook writes.

“If the report is complete and valid, the team will promptly remove the reported content, typically within a day or less, and confirm that action with the rights holder that reported it.”

Another interesting statistic is that no action was taken in response to more than 31% of the 224,464 requests. This means that none of the content highlighted in these notices was removed. These rejections could be the result of an abusive, inaccurate or incomplete request, for example.

Copyright removals

In addition to takedown requests on Facebook itself, the company also shared the same data for Instagram. The numbers are roughly a third of Facebook’s, with 70,008 requests and 685,996 removed posts or items during the first half of 2017.

The social media giant stresses that it operates with the best interests of copyright holders and users in mind. For copyright holders, the takedown process is optimized and improved where possible. At the same time, the company aims to educate users who make an occasional mistake, to prevent further problems.

Facebook users who continue to post or link to pirated content repeatedly, will be dealt with eventually though. The company regularly disables accounts, removes pages, and deletes groups to stop persistent infringers.

“In addition to removing reported content, we disable the accounts of repeat infringers in appropriate circumstances. Our repeat infringer policy applies to IP violations committed via Facebook profiles and Instagram accounts, including copyright, trademark and counterfeit,” the company writes.

This is likely the reason why several pages of pirate sites disappeared from the social media platform in recent years. Interestingly, there appears to be little to stop these repeat infringers from signing up again and starting over.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons