Chinese Man Pleads Guilty in Copyright Violation Case

Nearly five years ago, a Chinese man named Xiang Li registered several domain names, including www.crack99.com, and embarked on an ambitious, and ultimately illegal, venture.

Mr. Li, who was based in Chengdu, paid a network of computer experts to scour the Internet to find commercial software they could “crack,” meaning they bypassed security protocols designed to prevent unauthorized access or reproduction.

Ultimately, Mr. Li offered more than 2,000 pirated software products that could be used as applications in the military, engineering, space exploration, mathematics and explosive simulation, and sold them at a fraction of their retail price, which federal prosecutors said was over $100 million.

Among his biggest customers were an electronics engineer at NASA and the chief scientist at a government military contractor, but his clients also included students, inventors and small-business owners. Mr. Li sold the products for $20 to $1,200, accepting payments by Western Union and MoneyGram, according to government documents.

But Mr. Li’s criminal enterprise officially ended last year when he was arrested by undercover agents. On Monday, he pleaded guilty in Federal District Court in Delaware to one count of conspiring to steal copyrighted software. He faces a maximum of five years in prison.

Mr. Li, who is 36, could not be reached for comment, nor could his lawyer, Mingli Chen. Mr. Li’s wife, Chun Yan Li, was also indicted on charges of participating in the illegal scheme; she remains at large, presumably in China, officials said.

Mr. Li was arrested in June 2011 in Saipan in the Northern Mariana Islands during a meeting that had been arranged by undercover agents posing as American businessmen. The agents arranged the meeting under the guise of picking up their purchase of pirated software, design packaging and 20 gigabytes of proprietary data, and to discuss a plan to transmit cracked software over the Internet so they could resell it to small businesses in the United States.

After the arrest, agents recovered six disks from Mr. Li containing an assortment of data pirated from an unidentified American software company, including military and civilian aircraft image models and a software module containing data about the International Space Station.

Edward J. McAndrew, one of the prosecutors on the case, said Mr. Li’s arrest was among the largest criminal copyright cases to be successfully prosecuted by the government.

Mr. McAndrew and his colleague, David L. Hall, explained in court documents that once Mr. Li obtained cracked software, he would advertise it on his Web sites, which also included www.cad100.net and www.dongle-crack-download.com. Mr. Li’s customers would then wire him money, some of which he deposited in an account at the Bank of China. From February 2008 to June 2011, Mr. Li and his customers exchanged more than 25,000 e-mails about pirated products, according to the government, which obtained a search warrant for his Gmail account.

Mr. Li used his Gmail account to orchestrate more than 500 illegal transactions with customers in at least 28 states and more than 60 foreign countries, according to court documents. Software was pirated from more than 200 manufacturers.

Mr. McAndrew said none of the pirated software obtained by the undercover agents from Mr. Li contained classified material. But Mr. McAndrew said the government could not determine whether any classified material was distributed to other buyers since it did not have access to all the pirated products that Mr. Li sold.

One of Mr. Li’s biggest customers was Cosburn Wedderburn, a NASA electronics engineer, who bought 12 cracked software programs with a retail value exceeding $1.2 million. Another was Dr. Wronald Best, chief scientist at an unidentified government contractor that provides services to the United States military and law enforcement, like radio transmissions, microwave technology and vacuum tubes used in military helicopters. Dr. Best exchanged more than 260 e-mails with Mr. Li to obtain 10 cracked software programs, with a retail value of more than $600,000, prosecutors said.

Both Mr. Wedderburn and Dr. Best pleaded guilty to one count of conspiracy to commit criminal copyright infringement. Both are awaiting sentencing.

Starting in January 2010, undercover agents began buying pirated software from Mr. Li’s Web sites, receiving electronic files with the pirated software or hyperlinks that allowed the agents to download the software from servers in the United States.

In all, the agents paid the Lis $8,615 for the software.

For instance, in January 2010, the agents bought a pirated copy of Satellite Tool Kit 8.0, a software product from Analytical Graphics that has a retail value of more than $150,000. The software includes several functions used by the military and intelligence communities, including three-dimensional warfare simulations.

Mr. Li’s e-mails suggest he was aware of the illegality of his venture, prosecutors say. “I am not a crack production engineers (my job is to collect)(.) This is an international organization created to crack declassified document (s),” he said in a 2009 e-mail. In another he wrote, “I need to use your money to seek the help of experts to cracker master I earn 10 percent of the profits.”

One customer asked who did the cracking. “Experts crack,” Mr. Li wrote. “Chinese people. Sorry can not reveal more.”

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Economic Scene: Health Care and Pursuit of Profit Make a Poor Mix

Thirty years ago, Bonnie Svarstad and Chester Bond of the School of Pharmacy at the University of Wisconsin-Madison discovered an interesting pattern in the use of sedatives at nursing homes in the south of the state.

Patients entering church-affiliated nonprofit homes were prescribed drugs roughly as often as those entering profit-making “proprietary” institutions. But patients in proprietary homes received, on average, more than four times the dose of patients at nonprofits.

Writing about his colleagues’ research in his 1988 book “The Nonprofit Economy,” the economist Burton Weisbrod provided a straightforward explanation: “differences in the pursuit of profit.” Sedatives are cheap, Mr. Weisbrod noted. “Less expensive than, say, giving special attention to more active patients who need to be kept busy.”

This behavior was hardly surprising. Hospitals run for profit are also less likely than nonprofit and government-run institutions to offer services like home health care and psychiatric emergency care, which are not as profitable as open-heart surgery.

A shareholder might even applaud the creativity with which profit-seeking institutions go about seeking profit. But the consequences of this pursuit might not be so great for other stakeholders in the system — patients, for instance. One study found that patients’ mortality rates spiked when nonprofit hospitals switched to become profit-making, and their staff levels declined.

These profit-maximizing tactics point to a troubling conflict of interest that goes beyond the private delivery of health care. They raise a broader, more important question: How much should we rely on the private sector to satisfy broad social needs?

From health to pensions to education, the United States relies on private enterprise more than pretty much every other advanced, industrial nation to provide essential social services. The government pays Medicare Advantage plans to deliver health care to aging Americans. It provides a tax break to encourage employers to cover workers under 65.

Businesses devote almost 6 percent of the nation’s economic output to pay for health insurance for their employees. This amounts to nine times similar private spending on health benefits across the Organization for Economic Cooperation and Development, on average. Private plans cover more than a third of pension benefits. The average for 30 countries in the O.E.C.D. is just over one-fifth.

We let the private sector handle tasks other countries would never dream of moving outside the government’s purview. Consider bail bondsmen and their rugged sidekicks, the bounty hunters.

American TV audiences may reminisce fondly about Lee Majors in “The Fall Guy” chasing bad guys in a souped-up GMC truck — a cheap way to get felons to court. People in most other nations see them as an undue commercial intrusion into the criminal justice system that discriminates against the poor.

Our reliance on private enterprise to provide the most essential services stems, in part, from a more narrow understanding of our collective responsibility to provide social goods. Private American health care has stood out for decades among industrial nations, where public universal coverage has long been considered a right of citizenship. But our faith in private solutions also draws on an ingrained belief that big government serves too many disparate objectives and must cater to too many conflicting interests to deliver services fairly and effectively.

Our trust appears undeserved, however. Our track record suggests that handing over responsibility for social goals to private enterprise is providing us with social goods of lower quality, distributed more inequitably and at a higher cost than if government delivered or paid for them directly.

The government’s most expensive housing support program — it will cost about $140 billion this year — is a tax break for individuals to buy homes on the private market.

According to the Tax Policy Center, this break will benefit only 20 percent of mostly well-to-do taxpayers, and most economists agree that it does nothing to further its purported goal of increasing homeownership. Tax breaks for private pensions also mostly benefit the wealthy. And 401(k) plans are riskier and costlier to administer than Social Security.

From the high administrative costs incurred by health insurers to screen out sick patients to the array of expensive treatments prescribed by doctors who earn more money for every treatment they provide, our private health care industry provides perhaps the clearest illustration of how the profit motive can send incentives astray.

By many objective measures, the mostly private American system delivers worse value for money than every other in the developed world. We spend nearly 18 percent of the nation’s economic output on health care and still manage to leave tens of millions of Americans without adequate access to care.

Britain gets universal coverage for 10 percent of gross domestic product. Germany and France for 12 percent. What’s more, our free market for health services produces no better health than the public health care systems in other advanced nations. On some measures — infant mortality, for instance — it does much worse.

In a way, private delivery of health care misleads Americans about the financial burdens they must bear to lead an adequate existence. If they were to consider the additional private spending on health care as a form of tax — an indispensable cost to live a healthy life — the nation’s tax bill would rise to about 31 percent from 25 percent of the nation’s G.D.P. — much closer to the 34 percent average across the O.E.C.D.

A quarter of a century ago, a belief swept across America that we could reduce the ballooning costs of the government’s health care entitlements just by handing over their management to the private sector. Private companies would have a strong incentive to identify and wipe out wasteful treatment. They could encourage healthy lifestyles among beneficiaries, lowering use of costly care. Competition for government contracts would keep the overall price down.

We now know this didn’t work as advertised. Competition wasn’t as robust as hoped. Health maintenance organizations didn’t keep costs in check, and they spent heavily on administration and screening to enroll only the healthiest, most profitable beneficiaries.

One study of Medicare spending found that the program saved no money by relying on H.M.O.’s. Another found that moving Medicaid recipients into H.M.O.’s increased the average cost per beneficiary by 12 percent with no improvement in the quality of care for the poor. Two years ago, President Obama’s health care law cut almost $150 billion from Medicare simply by reducing payments to private plans that provide similar care to plain vanilla Medicare at a higher cost.

Today, again, entitlements are at the center of the national debate. Our elected officials are consumed by slashing a budget deficit that is expected to balloon over coming decades. With both Democrats and Republicans unwilling to raise taxes on the middle class, the discussion is quickly boiling down to how deeply entitlements must be cut.

We may want to broaden the debate. The relevant question is how best we can serve our social needs at the lowest possible cost. One answer is that we have a lot of room to do better. Improving the delivery of social services like health care and pensions may be possible without increasing the burden on American families, simply by removing the profit motive from the equation.

E-mail: eporter@nytimes.com;

Twitter: @portereduardo

Read More..

Economic Scene: Health Care and Pursuit of Profit Make a Poor Mix

Thirty years ago, Bonnie Svarstad and Chester Bond of the School of Pharmacy at the University of Wisconsin-Madison discovered an interesting pattern in the use of sedatives at nursing homes in the south of the state.

Patients entering church-affiliated nonprofit homes were prescribed drugs roughly as often as those entering profit-making “proprietary” institutions. But patients in proprietary homes received, on average, more than four times the dose of patients at nonprofits.

Writing about his colleagues’ research in his 1988 book “The Nonprofit Economy,” the economist Burton Weisbrod provided a straightforward explanation: “differences in the pursuit of profit.” Sedatives are cheap, Mr. Weisbrod noted. “Less expensive than, say, giving special attention to more active patients who need to be kept busy.”

This behavior was hardly surprising. Hospitals run for profit are also less likely than nonprofit and government-run institutions to offer services like home health care and psychiatric emergency care, which are not as profitable as open-heart surgery.

A shareholder might even applaud the creativity with which profit-seeking institutions go about seeking profit. But the consequences of this pursuit might not be so great for other stakeholders in the system — patients, for instance. One study found that patients’ mortality rates spiked when nonprofit hospitals switched to become profit-making, and their staff levels declined.

These profit-maximizing tactics point to a troubling conflict of interest that goes beyond the private delivery of health care. They raise a broader, more important question: How much should we rely on the private sector to satisfy broad social needs?

From health to pensions to education, the United States relies on private enterprise more than pretty much every other advanced, industrial nation to provide essential social services. The government pays Medicare Advantage plans to deliver health care to aging Americans. It provides a tax break to encourage employers to cover workers under 65.

Businesses devote almost 6 percent of the nation’s economic output to pay for health insurance for their employees. This amounts to nine times similar private spending on health benefits across the Organization for Economic Cooperation and Development, on average. Private plans cover more than a third of pension benefits. The average for 30 countries in the O.E.C.D. is just over one-fifth.

We let the private sector handle tasks other countries would never dream of moving outside the government’s purview. Consider bail bondsmen and their rugged sidekicks, the bounty hunters.

American TV audiences may reminisce fondly about Lee Majors in “The Fall Guy” chasing bad guys in a souped-up GMC truck — a cheap way to get felons to court. People in most other nations see them as an undue commercial intrusion into the criminal justice system that discriminates against the poor.

Our reliance on private enterprise to provide the most essential services stems, in part, from a more narrow understanding of our collective responsibility to provide social goods. Private American health care has stood out for decades among industrial nations, where public universal coverage has long been considered a right of citizenship. But our faith in private solutions also draws on an ingrained belief that big government serves too many disparate objectives and must cater to too many conflicting interests to deliver services fairly and effectively.

Our trust appears undeserved, however. Our track record suggests that handing over responsibility for social goals to private enterprise is providing us with social goods of lower quality, distributed more inequitably and at a higher cost than if government delivered or paid for them directly.

The government’s most expensive housing support program — it will cost about $140 billion this year — is a tax break for individuals to buy homes on the private market.

According to the Tax Policy Center, this break will benefit only 20 percent of mostly well-to-do taxpayers, and most economists agree that it does nothing to further its purported goal of increasing homeownership. Tax breaks for private pensions also mostly benefit the wealthy. And 401(k) plans are riskier and costlier to administer than Social Security.

From the high administrative costs incurred by health insurers to screen out sick patients to the array of expensive treatments prescribed by doctors who earn more money for every treatment they provide, our private health care industry provides perhaps the clearest illustration of how the profit motive can send incentives astray.

By many objective measures, the mostly private American system delivers worse value for money than every other in the developed world. We spend nearly 18 percent of the nation’s economic output on health care and still manage to leave tens of millions of Americans without adequate access to care.

Britain gets universal coverage for 10 percent of gross domestic product. Germany and France for 12 percent. What’s more, our free market for health services produces no better health than the public health care systems in other advanced nations. On some measures — infant mortality, for instance — it does much worse.

In a way, private delivery of health care misleads Americans about the financial burdens they must bear to lead an adequate existence. If they were to consider the additional private spending on health care as a form of tax — an indispensable cost to live a healthy life — the nation’s tax bill would rise to about 31 percent from 25 percent of the nation’s G.D.P. — much closer to the 34 percent average across the O.E.C.D.

A quarter of a century ago, a belief swept across America that we could reduce the ballooning costs of the government’s health care entitlements just by handing over their management to the private sector. Private companies would have a strong incentive to identify and wipe out wasteful treatment. They could encourage healthy lifestyles among beneficiaries, lowering use of costly care. Competition for government contracts would keep the overall price down.

We now know this didn’t work as advertised. Competition wasn’t as robust as hoped. Health maintenance organizations didn’t keep costs in check, and they spent heavily on administration and screening to enroll only the healthiest, most profitable beneficiaries.

One study of Medicare spending found that the program saved no money by relying on H.M.O.’s. Another found that moving Medicaid recipients into H.M.O.’s increased the average cost per beneficiary by 12 percent with no improvement in the quality of care for the poor. Two years ago, President Obama’s health care law cut almost $150 billion from Medicare simply by reducing payments to private plans that provide similar care to plain vanilla Medicare at a higher cost.

Today, again, entitlements are at the center of the national debate. Our elected officials are consumed by slashing a budget deficit that is expected to balloon over coming decades. With both Democrats and Republicans unwilling to raise taxes on the middle class, the discussion is quickly boiling down to how deeply entitlements must be cut.

We may want to broaden the debate. The relevant question is how best we can serve our social needs at the lowest possible cost. One answer is that we have a lot of room to do better. Improving the delivery of social services like health care and pensions may be possible without increasing the burden on American families, simply by removing the profit motive from the equation.

E-mail: eporter@nytimes.com;

Twitter: @portereduardo

Read More..

France Rejects Plan by Internet Provider to Block Online Ads

PARIS — In a potential test case for Europe, the French government on Monday ordered a big Internet service provider to stop blocking online advertisements, saying the company had no right to edit the contents of the Web for users.

Charles Platiau/Reuters

Fleur Pellerin, left, France’s minister for the digital economy, with Maxime Lombardini, chief executive of Iliad, the parent company of the French Internet service provider Free.

The dispute has turned into a gauge of how France, and perhaps the rest of Europe, will mediate a struggle between telecommunications providers against Internet companies like Google, which generate billions of dollars in revenue from traffic that travels freely on their networks.

European telecommunications companies want a share of that money, saying they need it to finance investments in faster broadband networks — and, as the latest incident shows, they are willing to flex their muscles to get it.

Until now, European regulators have taken a laissez-faire approach, in contrast to the U.S. Federal Communications Commission, which has imposed guidelines barring operators of fixed-line broadband networks from blocking access to sites providing lawful content.

On Monday, Fleur Pellerin, the French minister for the digital economy, said she had persuaded the Internet service provider, Free, to restore full access. The company, which has long balked at carrying the huge volume of traffic from sites owned by Google without compensation, had moved last week to block online ads when it introduced a new version of its Internet access software.

“An Internet service provider cannot unilaterally implement such blocking,” Ms. Pellerin said at a news conference Monday, after meetings with online publishing and advertising groups, which had complained about a possible loss of revenue.

While she acknowledged that it could be annoying “when five ads pop up on a site,” she added that advertising should not be treated differently from other kinds of content. “This kind of blocking is inconsistent with a free and open Internet, to which I am very attached.”

While rejecting the initiative by Free, Ms. Pellerin said it was legitimate for the company to raise the question of who should pay for expensive network upgrades to handle growing volumes of Internet traffic.

French Internet analysts said advertisements appearing on Google-owned sites or distributed by Google appeared to have been the only ones affected — fueling speculation that the move was a tactic to try to get Google to share some of its advertising revenue with Internet service providers. Google’s YouTube video-sharing site is the biggest bandwidth user among Internet companies.

Google was not represented at the meetings Monday with Ms. Pellerin. In an interesting twist, its case was effectively argued by other Web publishers, including French newspapers, even though these sites, in a related dispute, are seeking their own revenue-sharing arrangement with Google. Separately, French tax collectors are also looking into the company’s fiscal practices, under which it largely avoids paying corporate taxes in France by routing its ad revenue through Ireland, which has lower rates. One proposal that has been discussed would be to use receipts from a tax on Google to support local Web sites.

In yet another dispute involving Free and Google, the French telecommunications regulator is investigating complaints that the Internet provider has been discriminating against YouTube. In that case, a French consumer organization, UFC-Que Choisir, said it suspected that Free was limiting customer access to YouTube because of the high amount of bandwidth that the site consumed.

Ms. Pellerin said these issues would be examined separately. Still, the timing of Free’s move raised questions, given that it came only days before a scheduled meeting among Ms. Pellerin, Internet companies and telecommunications operators to discuss the financing and regulation of new, higher-speed networks.

“Should users be held hostage to these commercial negotiations? That is not obvious to me,” said Jérémie Zimmermann, a spokesman for La Quadrature du Net, a group that campaigns against restrictions on the Internet.

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Japan’s Cleanup After a Nuclear Accident Is Denounced

Ko Sasaki for The New York Times

Bags of contaminated soil outside the Naraha-Minami school near the Fukushima Daiichi nuclear power plant.

NARAHA, Japan — The decontamination crews at a deserted elementary school here are at the forefront of what Japan says is the most ambitious radiological cleanup the world has seen, one that promised to draw on cutting-edge technology from across the globe.

Ko Sasaki for The New York Times

Workers reflected in the glass of the Naraha-Minami Elementary School

But much of the work at the Naraha-Minami Elementary School, about 12 miles away from the ravaged Fukushima Daiichi nuclear power plant, tells another story. For eight hours a day, construction workers blast buildings with water, cut grass and shovel dirt and foliage into big black plastic bags — which, with nowhere to go, dot Naraha’s landscape like funeral mounds.

More than a year and a half since the nuclear crisis, much of Japan’s post-Fukushima cleanup remains primitive, slapdash and bereft of the cleanup methods lauded by government scientists as effective in removing harmful radioactive cesium from the environment.

Local businesses that responded to a government call to research and develop decontamination methods have found themselves largely left out. American and other foreign companies with proven expertise in environmental remediation, invited to Japan in June to show off their technologies, have similarly found little scope to participate.

Recent reports in the local media of cleanup crews dumping contaminated soil and leaves into rivers has focused attention on the sloppiness of the cleanup.

“What’s happening on the ground is a disgrace,” said Masafumi Shiga, president of Shiga Toso, a refurbishing company based in Iwaki, Fukushima. The company developed a more effective and safer way to remove cesium from concrete without using water, which could repollute the environment. “We’ve been ready to help for ages, but they say they’ve got their own way of cleaning up,” he said.

Shiga Toso’s technology was tested and identified by government scientists as “fit to deploy immediately,” but it has been used only at two small locations, including a concrete drain at the Naraha-Minami school.

Instead, both the central and local governments have handed over much of the 1 trillion yen decontamination effort to Japan’s largest construction companies. The politically connected companies have little radiological cleanup expertise and critics say they have cut corners to employ primitive — even potentially hazardous — techniques.

The construction companies have the great advantage of available manpower. Here in Naraha, about 1,500 cleanup workers are deployed every day to power-spray buildings, scrape soil off fields, and remove fallen leaves and undergrowth from forests and mountains, according to an official at the Maeda Corporation, which is in charge of the cleanup.

That number, the official said, will soon rise to 2,000, a large deployment rarely seen on even large-sale projects like dams and bridges.

The construction companies suggest new technologies may work, but are not necessarily cost-effective.

“In such a big undertaking, cost-effectiveness becomes very important,” said Takeshi Nishikawa, an executive based in Fukushima for the Kajima Corporation, Japan’s largest construction company. The company is in charge of the cleanup in the city of Tamura, a part of which lies within the 12-mile exclusion zone. “We bring skills and expertise to the project,” Mr. Nishikawa said.

Kajima also built the reactor buildings for all six reactors at the Fukushima Daiichi plant, leading some critics to question why control of the cleanup effort has been left to companies with deep ties to the nuclear industry.

Also worrying, industry experts say, are cleanup methods used by the construction companies that create loose contamination that can become airborne or enter the water.

At many sites, contaminated runoff from cleanup projects is not fully recovered and is being released into the environment, multiple people involved in the decontamination work said.

Makiko Inoue contributed reporting from Tokyo.

This article has been revised to reflect the following correction:

Correction: January 8, 2013

Earlier versions of this article misspelled the name of the construction company in charge of the cleanup of the city of Tamura. It is the Kajima Corporation, not Kashima.

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Google’s Rivals Say F.T.C. Antitrust Ruling Missed the Point

WASHINGTON — One of the more surprising conclusions drawn by the Federal Trade Commission when it dropped its nearly two-year antitrust investigation into Google last week was that Google, far from harming consumers, had actually helped them.

Alex Wong/Getty Images

Jon Leibowitz, right, the Federal Trade Commission chairman, speaking last week after the decision was announced.

But some critics of the inquiry now contend that the commission found no harm in Google’s actions because it was looking at the wrong thing.

Instead of considering harm to people who come to Google to search for information, Google’s competitors and their supporters say that the government should have been looking at whether Google’s actions harmed its real customers — the companies that pay billions of dollars each year to advertise on Google’s site.

In its reports, the F.T.C. did not detail how it defined harm or what quantitative measures it had used to determine that Google users were better off.

But interviews with people on all sides of the investigation — government officials, Google supporters, advocates for Microsoft and other competitors, and antitrust experts and economists — show that many of the yardsticks the commission used to measure its outcomes were remarkably similar to Google’s own. Not surprisingly, they cast Google in a favorable light.

At issue were changes that Google made in recent years to its popular search page. Google makes frequent adjustments to the formulas that determine what results are generated when a user enters a search. Currently, it makes more than 500 changes a year, or more than one each day.

Users rarely notice the changes in the formulas, or algorithms, that generate search results, but businesses do. If a change in the formulas causes a business to rank lower in the order of results generated by a search, it is likely to miss potential customers.

What customers are now seeing reflects changes in the format of Google results. For certain categories of searches — travel information, shopping comparisons and financial data, for example — Google has begun presenting links to its own related services.

People close to the investigation said that Google had presented the F.T.C. with the results of tests with focus groups hired by an outside firm to review different versions of a Google search results page. After Google acquired ITA, a travel search business, in 2011, it began testing a new way to display flight results.

The company asked test users to compare side-by-side examples of a results page with just the familiar 10 blue links to specialty travel sites with a page that had at the top a box containing direct links to airlines and fares.

People who reviewed the Google data said tests with hundreds of people showed that fewer than one in five users preferred the page with links only. Users said they liked the box of flight results, so Google reasoned that making the change was better for the consumer.

“There is a deep science to search evaluation,” Amit Singhal, a senior vice president who oversees Google’s search operation, said in an interview on Friday. “A lot of work goes into every change we make.”

But the changes were not better for companies or alternative travel sites that were pushed off the first page of results by Google’s flight box and associated links. By pushing links to competing sites lower, Google might be making things easier for people who come to it for free search. But it also is having a negative effect on competitors, shutting off traffic for those sites.

Drawing fewer customers as a result of Google’s free links, those competitors are forced to advertise more to draw traffic. And advertisers who aren’t competitors have fewer places to go to reach consumers, meaning Google can use its market power to raise advertising prices.

“There might be no consumer harm if Google eliminates Yelp,” said one Microsoft advocate, who spoke on the condition of anonymity because of the likelihood of further interactions with the F.T.C. “But advertisers certainly are harmed.”

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Global Update: China Moves to Prevent Spread of Yellow Fever From Africa

In a move that underlines how many Chinese citizens now work in Africa, China’s quarantine officials recently urged greater efforts to make sure that a yellow fever epidemic now raging in Sudan does not come back to China.

Local health authorities were asked to scan all travelers arriving from Sudan for fevers. Chinese citizens planning travel to Sudan were advised to get yellow fever shots. Customs officers were told that containers arriving from Sudan might have stray infected mosquitoes inside.

Sudan’s epidemic is considered the world’s worst in 20 years. Sweden, Britain and other donors have paid for vaccinations. The United States Navy’s laboratory in Egypt has helped with diagnoses.

Estimates of the number of Chinese working in Africa, many in the oil and mining industries or on major construction projects, range from 500,000 to 1 million. Experts on AIDS have previously warned that the workers could become a new means of bringing that disease to China, which has a low H.I.V.-infection rate.

ProMED-mail, a Web site that follows emerging diseases, has tracked reports about the Sudan outbreak, with its moderators adding valuable context. China’s mosquito-killing winters make a large yellow fever outbreak there unlikely, moderators said. But Sudan’s containment efforts are troubled. For example, vaccinated people cannot get cards proving they have had shots, but the cards are reported to be for sale at police checkpoints.

Australia’s now-endemic dengue fever, according to ProMED moderators, may have come from mosquitoes arriving in containers from East Timor.

Read More..

Global Update: China Moves to Prevent Spread of Yellow Fever From Africa

In a move that underlines how many Chinese citizens now work in Africa, China’s quarantine officials recently urged greater efforts to make sure that a yellow fever epidemic now raging in Sudan does not come back to China.

Local health authorities were asked to scan all travelers arriving from Sudan for fevers. Chinese citizens planning travel to Sudan were advised to get yellow fever shots. Customs officers were told that containers arriving from Sudan might have stray infected mosquitoes inside.

Sudan’s epidemic is considered the world’s worst in 20 years. Sweden, Britain and other donors have paid for vaccinations. The United States Navy’s laboratory in Egypt has helped with diagnoses.

Estimates of the number of Chinese working in Africa, many in the oil and mining industries or on major construction projects, range from 500,000 to 1 million. Experts on AIDS have previously warned that the workers could become a new means of bringing that disease to China, which has a low H.I.V.-infection rate.

ProMED-mail, a Web site that follows emerging diseases, has tracked reports about the Sudan outbreak, with its moderators adding valuable context. China’s mosquito-killing winters make a large yellow fever outbreak there unlikely, moderators said. But Sudan’s containment efforts are troubled. For example, vaccinated people cannot get cards proving they have had shots, but the cards are reported to be for sale at police checkpoints.

Australia’s now-endemic dengue fever, according to ProMED moderators, may have come from mosquitoes arriving in containers from East Timor.

Read More..

Judge Sends Back $20 Million Settlement to Bank of America Suit

Two pension funds that agreed to a relatively small settlement with the directors of Bank of America over its acquisition of Merrill Lynch are being ordered by a federal judge to strike a better deal beginning on Monday.

The judge, P. Kevin Castel, voiced clear reservations about the $20 million settlement in a ruling on Friday, concluding that fees requested by the lawyers for the two funds could consume “some, most or all” of the money. The deal was reached last spring, months before two other pension funds in a separate lawsuit negotiated a $2.4 billion settlement with the bank over the Merrill purchase.

Lawyers representing the pension funds in the $20 million settlement — the Louisiana Municipal Police Employees’ Retirement System and the Hollywood Police Officers’ Retirement System, of Florida — last October asked the court to approve payments of as much as $13 million in legal fees, or 65 percent of the amount proposed under the settlement.

The pension funds have accused Kenneth D. Lewis, the former chief executive of Bank of America, and his fellow directors of misleading investors about Merrill’s deteriorating financial condition. Bank of America’s $50 billion purchase of Merrill Lynch was announced by Mr. Lewis in the fall of 2008 as the financial crisis was deepening, and it generated billions of dollars in losses for the bank. Those losses led to Bank of America’s second request for bailout money under the government’s Troubled Asset Relief Program.

In addition to $20 million in cash, the proposed settlement would also require Bank of America to institute corporate governance changes. Among them are an enhanced director-education program and the creation of a new board committee dedicated to oversight of major acquisitions by the company. The case was brought as a so-called derivative action, on behalf of the bank itself.

In a deposition, Mr. Lewis testified that before Bank of America stockholders voted to approve the acquisition he received loss estimates relating to Merrill that were far greater than those reflected in the merger documents filed with regulators. Shareholders rely on statements made in these filings to decide whether to approve transactions their companies have proposed; companies must disclose facts that could be meaningful for shareholders as they weigh voting on a deal.

Given these and other facts of the various litigations, the shareholders who filed the parallel case in Delaware against the bank’s directors objected to the terms of the $20 million settlement. In court filings, lawyers representing these shareholders said that representatives of the Louisiana and Florida plaintiffs had done little investigation, deposing only two of the bank’s directors, and failed to ascertain whether the board had sufficient assets to contribute to a settlement.

The lawyers in the Delaware case also argued in court that the $20 million settlement was grossly inadequate because of $500 million in directors’ and officers’ insurance purchased by Bank of America that is available to satisfy the matter. In addition, the lawyers said, the directors are not contributing personally to the settlement in spite of having the financial resources to do so. Directors are rarely held personally liable in lawsuits against companies.

In addition to these objections, the lawyers in the Delaware case noted that the $20 million is far lower than the $150 million fine paid by the bank in 2010 to resolve a lawsuit brought by the Securities and Exchange Commission over the Merrill acquisition.

Amid these arguments, Bank of America settled another class-action case in September involving the same allegations about the Merrill purchase. Under that deal, the bank agreed to pay $2.4 billion, dwarfing the amount the Louisiana and Florida plaintiffs had settled for in April. The $2.4 billion settlement was brought by lawyers representing public pension funds in Ohio and Texas. That case was also heard by Judge Castel.

Another possible sticking point in the proposed $20 million settlement is how much of the money will go to the lawyers representing the Louisiana and Florida pension funds. Last October, those lawyers asked the court to approve payments of as much as $13 million in legal fees, or 65 percent of the amount proposed under the settlement.

Late Friday, Judge Castel voiced clear reservations on the deal, writing, “The court has not yet been persuaded of the fairness, reasonableness and adequacy of a settlement of the derivative claims against defendant Lewis in exchange for corporate governance reforms of unquantifiable value and $20 million in cash, some, most or all of which may be consumed by plaintiffs’ attorneys’ fees.”

Joseph E. White III, a lawyer at Saxena White who represents the Louisiana and Florida pension funds, did not immediately return a phone call or respond to an e-mail seeking comment on Sunday.

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India Ink: India's Rape and Sexual Assault Laws Under Scrutiny

The death of a young rape victim in from Delhi has reopened a debate in India about the country’s sexual assault and rape laws, as sweeping changes are being demanded to improve women’s rights in the country.

Compared to the much of the rest of the world, sections of India’s laws covering rape are inadequate and narrowly defined, critics say. And India’s way of delivering justice to rape victims is replete with loopholes, they say.

The debate comes as the Indian government reviews the country’s laws and punishments for sexual assault, in the wake of widespread protests and calls for judicial action. The government has formed a panel of three legal experts, headed by a former chief justice of India, J.S. Verma, to review possible amendments, including those that would impose more stringent punishment. The committee is expected to submit its report by the end of January.

India’s current definition of rape is steeped in outmoded traditions, making the possibility of a conviction unlikely in many cases, human rights activists said. The law, which dates from 1860, has been amended only twice since then, in 1983 and 2003. “There is need for a much broader definition of rape, as is accepted by international standards,” said Meenakshi Ganguly, South Asia director of Human Rights Watch.

Currently, section 375 of the Indian Penal Code is defined as vaginal-penile intercourse against a woman’s consent. Excluded from the law is the rape of a woman by her husband if the woman is above 15 years of age.

“The world is changing, and because there are changes in society we need to modify the definition of the rape law,” said Monica Joshi, a law officer at the Human Rights Law Network in New Delhi who specializes in women’s cases. “The law needs to include things like oral penetration, anal penetration, insertion of a foreign object into a woman’s body, dating rape, marital rape and deal with direct and indirect consent.”

Both Britain and most states in the United States consider marital rape a legal offense, noted Pinky Anand, a Supreme Court lawyer who specializes in cases for women, constitutional law and international law.

Still, there is a “progressive” part of Indian law compared to laws in some parts of the United States and in Britain, said Mrinal Satish, an associate professor at the National Law University in Delhi, who is completing his doctoral dissertation at Yale Law School. In India, the prosecution is required to prove that the defendant knew that the woman was not consenting to intercourse and only relies on the victim’s testimony, not the defendant’s belief, Mr. Satish said.

But this is also where the ambiguities arise. The court, said Mr. Satish, has to be satisfied that the woman’s testimony is reliable. Stereotyping based on certain characteristics, like whether the victim is a virgin or married, plague judgments in rape cases and usually have a negative impact, he said.

The current law also lacks clarity about punishments for a convicted rapist. According to section 376 of the Indian Penal Code, the minimum sentence for a convicted rapist is seven to 10 years, while the maximum sentence is life imprisonment. Gang rape carries a punishment of 10 years to life imprisonment. However, in certain situations a convicted rapist can get away with serving less time.

“The law allows the judge discretion to award a lesser punishment in special cases such as an aged person or a person of unsound mind,” says Ujjwal Nikam, a special public prosecutor for the government of Maharashtra whose expertise is in criminal law.

Sentencing guidelines for judges in India are nonexistent, which could lead to lenient sentences in rape cases, critics say.

“Unlike some other countries, such as the United States and England, India does not have sentencing guidelines, which provide rules and principles for judges to follow while sentencing,” said Mr. Satish. This contributes to the “rampant disparity” in punishments for rape cases, he said.

Legal experts in India are debating increasing the maximum punishment for rape in India, which could include the death penalty.

Some activists and advocates believe that an enhancement in the punishment will create a greater deterrent against rape. “The principle problem with rape laws in the country is that they don’t seem to be serving enough of a deterrent to criminals,” said Ms. Anand. “The rate of rape is horrifying, and the conviction rate is unsatisfactory. Capital punishment is the only answer.”
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However, activists warn of the dangers of imposing the death penalty in rape cases, citing the increased chances that rapists would attempt to kill their victims, among other risks.

Another punishment being considered is chemical castration, the administration of medication designed to decrease libido and sexual activity, which is used on sex offenders in South Korea, Russia and Israel. In the United States, chemical castration is used in California, Florida and Louisiana.

Several legal experts argue there is also need to review the sexual assault law in India. Under section 354 of the Indian Penal Code, sexual assault is described as “outraging the modesty of a woman” – a description considered archaic, subjective and limited by legal experts. “We need to increase the ambit of sexual assault to include harassment, verbal abuse, groping, acid attacks, stalking and cyber crime,” said Ms. Anand.

Punishment for sexual assault should also be increased, activists said. Currently sexual assault crimes carry a maximum punishment of two years, but most convicted criminals can walk away by paying a small fee. “Criminals who repeatedly commit sexual assault if not convicted will then progress to higher crimes like rape,” said Ms. Anand.

A sexual assault bill currently pending in Parliament introduces some of these measures by increasing the punishment for molestation from two years to five years in prison, and sexual harassment from one year to three years.

The law itself is not the only problem. “When it comes to the problems – they lie in the system and how the legal system deals with rape cases,” Mr. Satish said. It’s important that the evidence is built. And if that’s weak, then the court is left with evidence on the bases it cannot convict.”

A draft bill has been submitted to the panel by the ruling Congress Party suggests chemical castration of rapists in rare cases, longer sentences for rape and setting up fast-track courts.
The bill should be named after the Delhi gang rape victim, Shashi Tharoor, the Indian minister of state for human resource development, said on Twitter on Jan. 1. The thought struck a chord with the victim’s parents, according to local media reports. (The woman’s name has only been reported so far by a British newspaper, which said it had the father’s permission. Reports Monday said his permission had not been given.)

Lawyers and activists are hopeful that the national attention garnered by this particular rape will spur the government to action. “Gender issues have not been given primacy up until now, but this time around civil society has raised enough of a voice that it cannot be ignored,” said Ms. Anand.

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