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November 8, 2009 9:07 PM PST

Well, this hacker has quite the sense of humor.

Reports started spreading this weekend that iPhone users in Australia had been falling victim to "ikee," a worm that replaces default wallpaper with a picture of Rick Astley, the British pop singer whose song "Never Gonna Give You Up" has gained eternal infamy thanks to the mainstreaming of the "Rickrolling" prank craze. The photo is accompanied by the message "ikee is never gonna give you up," and it's apparently quite difficult to remove. According to security firm Sophos, this is the first worm detected that targets the iPhone.

The vulnerability is pretty specific: the phones must be jailbroken in order to be affected, and it appears to spread by searching an infected phone's contacts to find other jailbroken-phone users who have installed the Unix software SSH (secure shell) but haven't yet changed their passwords from Apple's default root password, "alpine."

Sophos says that it has not heard of any occurrences of the worm outside Australia, and that while it doesn't appear to do anything worse than irritate and embarrass affected users, that it highlights the vulnerabilities that jailbroken phones face.

Originally posted at Apple
November 6, 2009 1:40 PM PST

Former Alaska Gov. Sarah Palin is a lightning rod for controversy, but a recent attempt to keep a low profile might just result in, well, more press. The onetime vice presidential hopeful Palin, who stepped down from the governorship this summer, will be speaking at a Right to Life event in Milwaukee, Wis., on Friday evening, and her team has mandated that there are no reporters allowed--or gadgets.

According to CNN, laptops, cell phones, cameras, and anything else that could potentially be used as a recording device will not be allowed into the auditorium. Tickets to the event were $30.

It's not an unprecedented move by any means. Advance screenings of movies, for instance, regularly have a no-cell-phones policy now that just about any phone can be used as a recording device. And Palin is hardly the only high-profile politician to put a no-press, no-recording rule in place for a speech: Former Vice President Al Gore did just that for a keynote address at the RSA security conference in early 2008.

But the funny part is that banning the press will generally do very little good, since anyone with a notebook or a good memory could easily post quotes or a synopsis to a blog or Twitter account within minutes of the event ending. In this case, as with Gore's press ban at RSA, it's likely that Palin's move will just end up stirring up more buzz.

Considering her book "Going Rogue: An American Life" is coming out in a matter of days, that might ultimately turn out well--or not.

Originally posted at Politics and Law
November 5, 2009 6:38 PM PST

The industry P.R. frenzy over scams in ads and offers on social networks goes on: Facebook announced on Thursday evening in a post on its developer blog that since it updated its developer platform terms of service this summer, it has disabled two ad networks that it says were running deceptive advertisements.

This comes in the wake of allegations that some companies that power offer- and survey-related moneymaking operations for social-gaming applications on platforms like Facebook's have effectively been scamming users into paying for services without disclosing those costs. One of them, Offerpal Media, has been particularly visible in the crosshairs.

"This battle is not new and it's far from over," the post by Facebook's Nick Giano wrote. "We faced stimulus scam ads on our own system earlier this year and pushed them off the site with rigorous enforcement. We did the same months later when deceptive ads from third-party ad networks appeared in applications. We're doing that again now as we see them appear in the form of offers."

Additionally, Facebook--which has said for quite some time that many of the activities highlighted in the "app scam" controversy are already banned by its terms of service--included in the post that more than 100 developer applications have been either "suspended or brought into compliance" over advertising issues, and that more than half of them were used by at least 1 million Facebook members per month. It's not clear whether these were all related to scams, or to other advertising-related infringements like the Burger King marketing campaign that encouraged users to "unfriend" their contacts in exchange for a free cheeseburger.

Facebook representatives declined to name which ad networks or applications it has banned. But the company did ban two companies in June, Social Hour and Social Reach, citing ad network policy violations. It's possible that the two ad networks mentioned in Facebook's blog post were banned months ago, given the "since July" language.

Earlier this week, MySpace--another big destination for social-network apps--announced that it had updated its terms of service to ban app scams. Prior to that, several prominent application manufacturers announced that they had banned potentially deceptive offers, despite the fact that they are responsible for a big chunk of virtual-goods revenues.

An update was made to this post at 7:51 a.m. PT on November 6 to note that Facebook banned two ad networks in June.

November 5, 2009 2:54 PM PST

It looks like the brouhaha surrounding social-app moneymaker Offerpal Media is bigger than founder Anu Shukla's "sh*t, double sh*t, and bullsh*t" response to the accusation that its business is built on scamming consumers. It's got upcoming developments in two lawsuits, one in which it's the plaintiff and one in which Shukla is a defendant.

VentureBeat's Dean Takahashi reported Thursday that a lawsuit was filed in an Alameda County, Calif., superior court against Shukla and co-founder Michael Liu on behalf of Kevin Halpern, who alleges that he helped found the company and was then shut out. In a court complaint, Halpert says that in exchange for offering his social-networking expertise to what would become Offerpal, Shukla promised him a 15 to 20 percent stake in the company that never came to fruition.

The defendant's motion to dismiss the breach-of-contract suit is scheduled for November 24, according to public court documents. On Wednesday, Offerpal had announced that Shukla would be leaving her post as CEO and would be replaced by digital-ad veteran George Garrick.

But that's not the only legal dispute that Offerpal is in. There's a judicial settlement conference scheduled for Friday in the trademark infringement lawsuit that Offerpal filed against Kickflip, a former customer that went on to create a competing business, called Gambit, according to a person familiar with the court details. The suit was originally filed in April, and the status of a potential settlement is currently unclear because most of the events thus far, as well as Friday's scheduled meeting, have been behind closed doors.

But the reason why Offerpal has been in the news so much as of late has been because of Shukla's public altercation with TechCrunch's Michael Arrington at last month's Virtual Goods Summit in San Francisco. In response to Arrington's allegations that Offerpal's profitable business, used by many social-gaming companies as a way for users to earn virtual goods in-game, actually misleads players into signing up for paid offers and subscriptions.

Following the Arrington-Shukla spat, a number of high-profile names in the gaming and social-networking world came out against developer-app scams and misleading ads. Offerpal maintains that it runs a legitimate business. But it's clear that this company's issues run quite a bit deeper than a single PR fiasco.

November 4, 2009 4:51 PM PST

Offerpal Media, a company that helps social-network app creators make money from offers and surveys, on Tuesday announced that it had replaced its CEO in the wake of a high-profile onstage argument at a conference and subsequent press over whether it's scamming consumers who fill out offers in order to earn virtual goods in social games.

Anu Shukla, who founded the company and had been serving as CEO since its 2007 launch, will be replaced by George Garrick, who has served as the CEO of Flycast Communications, Wine.com, Jingle Networks, and Mochi Media. Shukla "will still be involved and help guide the company," an Offerpal representative told CNET News.

A statement from Shukla makes it sound like the company's been CEO-hunting for months ("I have known George for a long time...After many months of searching, I believe that George is the best CEO to scale the company to new heights. I am looking forward to working with him closely"). But the timing is a little too good to be coincidental: a firestorm erupted over Offerpal and other companies in its niche after TechCrunch's Michael Arrington confronted Shukla while she was on a panel at the Virtual Goods Summit in San Francisco last month. Arrington accused Shukla of running a scam operation that tricks consumers into unwittingly spending money--and of course, he then blogged about it.

Shukla's response to Arrington was "sh*t, double sh*t, and bullsh*t."

But the industry has taken the controversy seriously. Social game makers like the massive Zynga have come out and said that they would ban potentially shady and misleading offers, even though those might make up a sizeable chunk of revenue, and on Tuesday social network MySpace joined the debate and said that it had modified its terms of service to outlaw "app scams."

Shukla was interviewed by VentureBeat's Dean Takahashi in a lengthy article published on Tuesday.

This post was expanded at 4:55 p.m. PT.

November 4, 2009 9:29 AM PST
(Credit: The Beatles)

No, the digitally remastered Beatles catalog hasn't come to Apple's iTunes. But it has come to an apple-shaped USB device.

Retailing for $279.99, the collection will be released December 8 in North America, three months after the September 9 release of the remastered set of the band's albums (as well as The Beatles: Rock Band video game). The apple shape is in reference to Apple Corps, the Beatles music publisher--which in the past, you may recall, sued tech giant Apple in a trademark dispute.

(Credit: The Official Beatles Shop)

When the release of the remastered Beatles catalog and Rock Band game were announced for September 9, 2009 (the band has a song called "Revolution 9"), speculation arose that a concurrently scheduled Apple Inc. announcement might bring the catalog, still unavailable for digital download on the Web, to iTunes. That didn't happen. But with the release of the USB collection, the albums are available in non-CD digital form for the first time.

In addition to MP3 and FLAC versions of 14 stereo titles, according to a release, the 16GB device contains "all of the remastered CDs' visual elements, including 13 mini-documentary films about the studio albums, replicated original UK album art, rare photos and expanded liner notes."

Correction 10:45 a.m. PST: This story initially misstated the release date. It is December 8 in North America. Also, the type of lawsuit Apple Corps filed against Apple Inc. has been corrected. It was a trademark dispute.

Originally posted at Digital Media
November 3, 2009 5:26 PM PST

In the wake of a firestorm over just how much of social-gaming companies' profits can be attributed to potentially scammy offers and incentives, News Corp.'s MySpace has taken a stand (and, it could be said, taken advantage of the PR opportunity) by coming out vocally against them.

"We're adding a fifth principle (to our developer terms of use) that clarifies a specific use case that we feel is particularly damaging to the user experience: promotions that include hidden renewals without specific opt-in will not be permitted," a company blog post by CEO Owen Van Natta read. "Because it's our belief opt-out offers are misleading and do not have the best interests of the users in mind, we will be updating our Terms of Use this week to better clarify this for users and developers."

What exactly is he referring to? In many of the most popular (and profitable) games built for big social-networking platforms like Facebook and MySpace, players can progress faster in the game by either buying virtual goods with "real" money, or by completing offers and surveys from a partner company like the prominent Offerpal Media. Critics say that many of these offers aren't actually free, and unwittingly can sign users up for expensive subscriptions or programs.

After a public confrontation between TechCrunch's Michael Arrington and Offerpal CEO Anu Shukla at last week's Virtual Goods Summit event in San Francisco, game makers like Zynga and RockYou put out statements saying that they're cracking down on offers that are potentially misleading.

Could this lead to real industry changes? Yes. But keep in mind that Facebook, the biggest destination for these social games, already bans this stuff in theory. "Ads cannot be deceptive or fraudulent about any offer made," the company's advertising guidelines read, and adds "if an ad includes a price, discount, or 'free' offer...the destination URL for the ad must link to a page that clearly and accurately offers the exact deal the ad has displayed (and) the ad must clearly state what action or set of actions is required to qualify for the offer."

But judging by the amount of sketchiness that allegedly takes place on the platform, it seems like advertisers aren't necessarily following these guidelines. Whether MySpace's stance against them can lead to a legitimate crackdown has yet to be seen.

November 3, 2009 4:22 PM PST

So how do you say "fail whale" en español? Twitter has launched a Spanish translation, according to a blog post Tuesday (in Spanish) by co-founder Biz Stone.

It's the first of multiple volunteer-assisted translations for the microblogging site, the post explained. A look at Twitter's public timeline will show that it's used in many languages across the world, but until this point, the Twitter.com site has been English only. Now, users can go into their settings to translate it into Spanish.

This could be key as Twitter attempts to grow bigger overseas amid allegations that its traffic has plateaued. Facebook, for example, saw significant growth overseas when it started launching user-translated versions of its site.

To better inform the Twittering masses, we have gone to the trouble of plugging the term "fail whale" into Google Translate to see how you say it in Spanish. That didn't go too well with the algorithm, so we tried "whale of failure" and came out with "la ballena de fracaso." Unfortunately, that just doesn't have the same ring.

But this is not actually the first time that Twitter has toyed with launching a non-English edition. Last year, Twitter board member Joi Ito hyped up the launch of a standalone Twitter Japan site, powered by an investment from Ito's Digital Garage, that was notable because it was ad-supported (Twitter still hasn't rolled out ads or even said that it will for sure).

Biz Stone filled in CNET News on the status of Twitter Japan via e-mail on Tuesday night: "(It's) doing very well. A few of us were there a few weeks ago to launch a brand new mobile service. We had a really fun tweetup in Tokyo."

Twitter hasn't said what the next translations of its site will be, though presumably they'd pick a language that's already spoken by many users or one spoken in a region where it hopes to make big inroads. Or they could just be cutesy and launch in Klingon or Pirate.

This post was updated at 10:40 p.m. with comment from Biz Stone.

November 3, 2009 4:00 AM PST

I have a love song to write. I don't know yet whether it will be a tragic ballad or an exuberant ode to the triumph of happiness. But it's a love song for sure: I have fallen for Spotify, the latest buzzworthy "free music" service. After months of trying to find a great way to find and listen to music online, I believe I have met my match.

No, Spotify technically isn't available in the U.S. just yet, though the U.K.-based company hopes to bring the software stateside by the end of the year. My acceptance of an invite code sent by a generous friend therefore may or may not have been in gross violation of some international laws or statutes or regulations. But that's OK. Spotify, we can have an illicit romance for now.

You see, I needed this in my life. I had been thinking about "music discovery" of late. Last week, at the tail end of a trip in which I had been covering Google's splashy Los Angeles debut of its music search service in partnership with MySpace and Lala, I was sitting in the lobby of the Standard Hotel in West Hollywood, a shameless hipster magnet designed in the manner of tacky Southwest-desert motels and which features a constant soundtrack of semi-edgy music picks from '90s-era Britpop to lo-fi and LCD Soundsystem remixes. As a parade of attractive, Sunset Strip rocker types drifted to the check-in desk, I was sitting next to a cactus, intermittently holding up my iPhone to a speaker, using audio-recognition app Shazam to find out exactly what was playing.

Considering the cooler-than-thou crowd, I probably looked awfully silly. But Shazam has been my preferred method of music discovery because I just haven't found anything else I really like. Queuing up a Pandora station makes for great party music, but I've never been enthralled by its recommendations for me. Music blog aggregator Hype Machine has very well-done charts to track the songs that are getting blogged and tweeted about the most, but they can be a little bit predictable once you've already listened to the latest mashup of Kanye West and MGMT. I use Last.fm, owned by CNET News parent company CBS, to tabulate listening-history charts, but have never found myself hooked by its recommendations or radio stations. (Sorry, bosses.)

Social music and discovery services are a mess, frankly. Some of them have terrible user interfaces, and others are slowly becoming the victim of poorly conceived business models (many of which relied too heavily on advertising strategies that have yet to bear fruit) and ill-fated licensing agreements with the major labels. Still others, in striving to get a leg up on competitors, veered into editorial curation--exclusive album-listening debuts, promotions and tie-ins, and the like. That can make for a whole lot of clutter.

Then along came my Spotify invite, and everything changed. The service makes no attempts on the surface to be an "influencer" in and of itself, instead just offering access to full-length streams of just about any song. That's daunting at first. When you first load up Spotify, you're greeted with basic top-music charts that are notably uninspiring (Black Eyed Peas? Kings of Leon?) and searches don't bring you anything other than, well, what you searched for. Social-networking features like Facebook and Twitter sharing are sparse and well-hidden. If you don't know where to look, it can be a little bit dull.

Instead, the "discovery" process is left up to third parties. Create a playlist on Spotify, and you can assign it an HTML address so that when people click on it (assuming they have Spotify accounts) the playlist will open right up. A popular U.K. music blog called Drowned in Sound has a feature called "Spotifridays," where a selection of popular music from that week is packaged into a Spotify playlist, eliminating the need to click around through various Web browsers and streaming-music embeds. A friend sent me a link to Drowned in Sound's playlist of top songs of the first half of 2009. I was set for the next 7.6 hours.

Then, this happened: My Amazon MP3 bill started escalating as my "shopping cart" filled up with songs from bands I'd never heard of before, like the Veils, Let's Wrestle, and the Big Pink. The no-brainer Spotify platform, and how easy it is for anyone to use it to create playlists and share them in a way that doesn't involve a single wacky embeddable widget, was making me buy music.

But Spotify's long-term prospects are still hazy. Its dual business models, monthly subscriptions (for ad-free accounts and access to its iPhone app) and advertising for free accounts, have historically failed to hold up in the face of the micropayments-based iTunes. CEO Daniel Ek has even acknowledged that profits aren't flooding in yet and accused the labels of inflating licensing fees. The specter of SpiralFrog, another hyped free-music service that went down in flames earlier this year, is still in recent memory.

It's also unclear as to how the Spotify service, currently available in Sweden, Norway, the U.K., Finland, France, and Spain, will fare in the U.S. when it arrives here. Google's new music search feature, which is right now restricted to the States, may give a big advantage to competitors MySpace Music and Lala as search traffic is directed there. There's also the potential money drain: Government regulations over licensing fees last year. Digital music, you could say, is an industry with a lot of emotional baggage.

Generally, when there are glaring roadblocks in a new relationship, it's a red flag that you shouldn't get too attached. But this is one where I'm willing to fight to keep it alive. I hear there's a chance I'll be shut out of Spotify entirely in a few weeks unless I tweak my IP address somehow to fool the service into thinking I'm in one of its approved countries. Or unless I cough up the money for a premium subscription.

And I'd consider that. Money can't buy me love, but it could buy me Spotify. And right now they're sort of one and the same.

November 2, 2009 8:58 AM PST

Amazon's acquisition of shoes-and-more retailer Zappos is complete, the e-commerce giant said in a release Monday. The company in July had announced its intent to make the purchase, for about $850 million in cash and stock.

Zappos, which made a name for itself based on outside-the-box customer service principles, will stay independent from the Amazon.com brand and will continue to operate out of its Las Vegas headquarters.

Numbers released by J.P. Morgan Research in conjunction with the acquisition announcement predict that Zappos will post moderate, single-digit growth for the 2009 fiscal year after raking in $635 million in revenues last year.

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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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