News : Facebook lets users comment on new terms of service

By Anupreeta Das

NEW YORK (Reuters) - Facebook is asking its members to help shape its governance policies after drawing their ire for a policy change that many perceived as being overbearing and potentially compromising privacy.

From now on, the social networking site will be guided by a set of principles that reflect its dedication to transparency and openness in communication, Facebook said on Thursday.

Two draft documents are being put to test under what Facebook Chief Executive Mark Zuckerberg called a "new model of governance."

The "Facebook Principles" lay out the startup company's philosophy on privacy and control of information, while the "Statement of Rights and Responsibilities" are operating guidelines based on its big-picture stance.

Any Facebook member can access these proposals on the site and opine on them over the next few days. The networking site will incorporate people's reviews when firming up governance policies. Future policy changes will follow the same democratic model, the company said.

"It's a big statement that we trust users and we want their involvement in the process," Zuckerberg said in an interview.

The move comes after thousands of people reacted angrily to a revision in Facebook's terms of service earlier this month that suggested it was asserting permanent control over people's personal information even after they quit the site.

Facebook responded to the controversy last week by reverting to its old terms of service for the short term, as it solicited feedback from members and figured out how to create a new user agreement.

The new proposals make it clear that Facebook users have ultimate control over their information, including messages and photographs.

One of the 10 principles states that people should own their information and have the freedom to take it with them wherever they go, including removing it from Facebook.

The "Statement of Rights and Responsibilities," which replaces the old terms of use, translates the principles into specific rules.

Simon Davis, director of Privacy International, a watchdog organization, said it was a "bold move" on Facebook's part. "The devil will be in the detail, but, overall, we applaud these positive steps," he said.

(Reporting by Anupreeta Das; Editing by Richard Chang)

News : Apple investors get no satisfaction on Jobs

By Gabriel Madway

CUPERTINO, California (Reuters) - Apple Inc Chief Executive Steve Jobs wasn't even there, but at times it seemed like it was all anyone talked about at the firm's annual shareholders' meeting on Wednesday.

In a lively, one-hour gathering at the firm's headquarters in Cupertino, shareholders asked about the absent executive, serenaded the charismatic corporate chieftain, and spoke privately about the continued mystery surrounding his health.

Jobs -- who co-founded Apple and is credited with transforming it into a consumer juggernaut after returning as CEO a decade ago -- announced in January he would take a five-month leave of absence, handing over the reins of the firm and saying his health problems were "more complex" than originally thought.

All executives would say was that Jobs remained deeply involved in decision-making despite ceding control over day-to-day operations -- adhering almost verbatim to previous statements on a subject of persistent market speculation.

"If there's new information that we deem important to disclose, that will happen," said co-lead director Arthur Levinson, CEO of Genentech, adding that the board has met all its disclosure responsibilities.

The company also declined to answer questions about reports that the U.S. Securities and Exchange Commission was examining Apple's conduct in disclosing Jobs' health problems, which will keep the widely respected executive sidelined till at least June.

Some bristled at the board's continued reticence on Jobs' status. AFL-CIO representative Brandon Rees, who pinpointed on the company's disclosures during a question-and-answer session, said he was not satisfied after the meeting.

"I was disappointed that the board was not more forthcoming ... It's an important shareholder question, as to who will lead this company."

But it was clear Jobs continued to command the loyal support and affection of attendees. Shareholders even launched into an impromptu chorus of "Happy Birthday" for Jobs, who turned 54 Tuesday.

JUST WASN'T THE SAME

Shareholders noted that the meeting just wasn't the same without the charismatic Jobs.

Neal Pann said he believed in both the company's executive team and its prospects, but sounded a note of pessimism around the lack of information about Jobs' health.

"I got the response I expected, which was no response."

Getting down to more mundane business, shareholders voted to re-elect the company's eight-member board, which included Google CEO Eric Schmidt and former U.S. Vice President Al Gore, who attended the meeting.

And four proposals -- all opposed by the company, including a so-called "say-on-pay" resolution -- failed to garner shareholder approval.

Proposals related to a company environmental sustainability report, political contributions and health care also failed to pass.

During his presentation, Chief Operating Officer Tim Cook said the company's annual revenue has nearly quadrupled over the past four years on surging sales of Macintosh computers, iPods and iPhones. Apple is widely acknowledged as one of the most powerful brands in the world.

But the issue of Jobs himself -- often portrayed as a tech visionary and the main thrust behind Apple's current market prowess -- was never far from investors' minds.

In 2004, Jobs was treated for a rare type of pancreatic cancer. He appeared gaunt at an Apple event in June 2008, touching off rumors that his cancer had returned. The company has not managed to completely quash that speculation.

Facing a prolonged recession and drought in consumer spending, Apple has been unable to shake questions regarding the future of its charismatic CEO, who has been out of public view for more than a month.

Legal experts say Apple could face lawsuits over its health-related disclosures -- or lack thereof -- although that part of the law is seen as something of a gray area.

(Editing by Edwin Chan, editing by Gerald E. McCormick, Bernard Orr)

News : U.S. spy agency may get more cybersecurity duties

By Randall Mikkelsen

WASHINGTON (Reuters) - The spy agency that ran the Bush administration's warrantless eavesdropping program may get more responsibility for securing U.S. computer networks, President Barack Obama's intelligence chief told Congress on Wednesday.

Director of National Intelligence Admiral Dennis Blair said the National Security Agency, which is responsible for codebreaking and electronic spying, should assume a greater role in cybersecurity because of its technological prowess and current role in detecting attacks.

"There are some wizards out there ... who can do stuff. I think that capability should be harnessed and built on," Blair said in testimony to the House of Representatives intelligence committee.

Blair acknowledged that many Americans distrust the agency, which operated former President George W. Bush's secret program of warrantless electronic spying on some Americans' overseas phone calls.

"The NSA is both intelligence and military, two strikes out in terms of the way some Americans think about a body that ought to be protecting their privacy and civil liberties," Blair said.

Government concern over computer network vulnerability has risen as computer hackers become more sophisticated.

"A number of nations, including Russia and China, can disrupt elements of the U.S. information infrastructure," Blair said. "Cyber-defense is not a one-time fix; it requires a continual investment."

Billions of dollars are at stake. Defense contractors Northrop Grumman Corp, Lockheed Martin and Boeing Co are working on classified cybersecurity projects for the U.S. government.

Software and telecommunications companies also are likely to play a major role, said Democratic Representative Dutch Ruppersberger, whose Maryland district includes the NSA.

Earlier this month, President Barack Obama ordered a 60-day cybersecurity review and named Melissa Hathaway, the top cyber official with the intelligence director's office, to a White House post overseeing the effort.

Some lawmakers have said the Homeland Security Department, which plays a leading role in U.S. computer security and is in charge of protecting federal civilian networks, is not up to the job.

Blair said he agreed: "The National Security Agency has the greatest repository of cyber talent."

"They're the ones who know best about what's coming back at us, and it is defenses against those sorts of things that we need to be able to build into wider and wider circles."

News : UK rules out charges against Pentagon hacker

By Michael Holden

LONDON (Reuters) - British prosecutors said on Thursday they would not bring charges against a computer expert accused by a U.S. attorney of the "biggest military hack of all time," dealing a blow to his bid to avoid extradition.

Gary McKinnon was arrested by British police in 2002 after U.S. prosecutors charged him with illegally accessing computers, including the Pentagon, U.S. army, navy and NASA systems, and causing $700,000 worth of damage.

A British court ruled in 2006 that he should be extradited to the United States to face trial. If convicted by a U.S. court, he could face up to 70 years in prison. McKinnon has been battling the British court decision ever since.

His lawyers asked Britain's Director of Public Prosecutions (DPP) to consider a request to prosecute him in Britain where they believe he would receive a much shorter sentence.

But the Crown Prosecution Service (CPS) said a review had concluded it would be wrong for him to face trial at home.

"These were not random experiments in computer hacking, but a deliberate effort to breach U.S. defense systems at a critical time which caused well documented damage," said Alison Saunders, head of the CPS Organized Crime Division.

"They may have been conducted from Mr. McKinnon's home computer -- and in that sense there is a UK link -- but the target and the damage were transatlantic."

MILITARY NETWORKS

McKinnon is accused of causing the entire U.S. Army's Military District of Washington network of more than 2,000 computers to be shut down for 24 hours.

He has told Reuters he was just a computer nerd who wanted to find out whether aliens really existed and became obsessed with trawling large military networks for proof.

At the time of his indictment, Paul McNulty, U.S. Attorney for the Eastern District of Virginia, said: "Mr. McKinnon is charged with the biggest military computer hack of all time."

The CPS decision does not spell the end of McKinnon's legal battle. Last month, London's High Court ruled McKinnon, who has been diagnosed with Asperger's Syndrome, could seek a judicial review of the government's decision to extradite him.

His lawyers argue his health would suffer and he would be at real risk of suicide if he was handed over to U.S. authorities.

"Mr. McKinnon will still remain in the United Kingdom as the judicial review proceedings against the (U.K.) Secretary of State remain outstanding and we are hopeful that those proceedings will be successful," his lawyer Kaim Todner said in a statement.

(Reporting by Michael Holden)

News : Virtual body rehab

Dutch researchers have developed a system they say could help people learn to walk and balance sooner after an injury or stroke by displaying a virtual image of their body and moving muscles on the screen in real time.

Monitors placed all over a patient's body send digital images to the virtual body, which shows on a giant screen exactly which muscles are moving and exactly how they flex and contract.

Researchers say the immediate visualization of muscle forces could help speed up rehabilitation of patients learning how to walk or balance again.

It could dramatically benefit stroke sufferers, amputees, people recovering from injuries as well as athletes who want to improve technique or prevent injury.

(SOUNDBITE) (English) MICHIEL WESTERMANN, MOTEK MEDICAL CHIEF EXECUTIVE OFFICER

(SOUNDBITE)(English) ESTER BUUR, MOTEK DEVELOPER

News : Le Croupier brings 3D casino to UK

The online subsidiary of the French hotels and casino company Lucien Barriere says its new offering represents 'the world's first truly online 3D casino'.

The virtual casino LeCroupier.com is a replica of the company's casino in Deauville, France.

Initially, only UK residents are allowed to gamble real money on the platform, but there are plans to launch it in other European markets by the end of 2009.

Reuters Technology Correspondent Matt Cowan reports.

News : China opens bidding on moon probe technology

BEIJING (Reuters) - China will open competitive bidding so that domestic schools and institutions can help build crucial parts of the country's moon exploration craft, an official newspaper said on Wednesday.

In October 2003, China became the third country to put a man in space with its own rocket, after the former Soviet Union and the United States. And the government has made expanding the nation's presence in space, and eventually reaching the moon, a cornerstone of its bid to rise as a technological power.

But the State Administration of Science, Technology and Industry for National Defense has decided contributions from the country's universities, institutes and other "qualified" institutions are needed for crucial parts of the lunar effort, which aims to put an unmanned buggy on the moon by 2012, the Guangming Daily reported.

"Our country's lunar exploration research and development project will be opened to all of society, bringing in a competitive mechanism," the report said, citing an unnamed administration official.

The report did not say whether listed companies could also bid to help build the technology, which includes a landing vehicle and moon explorer. And it did not suggest that bidding would be open to foreign entities.

The lunar effort had more than 90 elements of "key technology" that must be mastered, the report said.

Over 30 universities and colleges recently attended a meeting to discuss participating in the moon exploration effort, said the paper.

China's aerospace program is run secretively and has close links to the country's military. Its first lunar probe, the Chang'e-1, finished its mission in October after orbiting the moon thousands of times without landing.

Beijing officials have said the country is also looking to eventually put astronauts on the moon, but the government has not announced any schedule for that much more ambitious task.

(Reporting by Yu Le; Editing by Nick Macfie)

News : Spray your tag on West Bank wall online

RAMALLAH, West Bank (Reuters) - It could turn out to be the world's longest graffiti space -- the massive concrete barrier separating Israel from the Palestinians.

Over the Internet, a group of Palestinian graffiti artists is offering to spray-paint your personal message on Israel's towering security wall in the occupied West Bank.

It costs 30 euros ($40) per message and they can be as solemn or wacky as you want. Everything goes, except for obscene, offensive or extremist hate speech. Clients get three digital pictures of the finished product.

The 8-meter (25-foot) high barrier of massive concrete slabs is part of a 620-km (385-mile) fence Israel says is intended to keep suicide bombers out, and which can be dismantled at some point in the future when peace reigns.

But with its slit-eyed watchtowers and burgeoning Palestinian protest graffiti, it is already reminiscent of the hated Berlin Wall, which divided the German capital for 28 years before it was torn down 10 years ago.

The taggers at www.sendamessage.nl are members of the Palestinian Peace and Freedom Youth Forum, which set up the scheme in collaboration with a Dutch Christian organization.

"It is a new way to speak with the people, that we the Palestinians exist," says graffiti artist Yusef Njm.

"We are not only throwing stones and clashing. We are alive. We think in a new way to tell them that we are alive."

Organizers stress that revenue does not go to buy weapons for the Palestinians. It is intended to support grassroots social and cultural projects in the West Bank.

(Writing by Douglas Hamilton; editing by Michael Roddy)

News : Google joins EU antitrust case against Microsoft

SAN FRANCISCO (Reuters) - Google Inc has added its voice to the case against Microsoft Corp as the European Commission probes antitrust charges related to the software giant's Internet Explorer browser.

"Google believes that the browser market is still largely uncompetitive, which holds back innovation for users," Sundar Pichai, Google vice president product manager, wrote in a blog post on Tuesday.

Google introduced the Chrome browser last year, which has taken little market share.

The Internet company joins the Mozilla foundation, producer of the Firefox Web browser, and Norway's Opera, a privately held company. Google adds the voice of a significant and well-financed player in the case against Microsoft.

In January, European regulators brought formal charges against Microsoft for abusing its dominant market position by bundling its Internet Explorer Web browser with its Windows operating system, which is used in 95 percent of the world's personal computers.

If the preliminary views expressed in the EC's Statement of Objections are confirmed, Microsoft could be subject to a fine and an order requiring it to cease bundling its browser and operating system.

In 2007, European Union courts upheld the European Commission's finding that Microsoft violated antitrust law by bundling its Windows Media player with the Windows operating system. It also found Microsoft used illegal tactics against RealNetworks real player.

The company has been fined more than $2 billion for its violations and for failing to carry out remedies imposed by the Commission.

In 2000, a U.S. judge decided that Microsoft had broken the law after it combined its Internet Explorer browser and the Windows operating system. The most serious violations of the law were upheld on appeal, but the company continued to bundle its operating system and browser.

Google competes with Microsoft in several markets, including online search engines.

Pichai wrote that the company hopes its perspective in launching Chrome will "be useful as the European Commission evaluates remedies to improve the user experience and offer consumers real choices."

Interveners traditionally provide background information, legal theories and proposed remedies to the Commision in cases.

(Reporting by Alexei Oreskovic and David Lawsky, editing by Matthew Lewis)

News : Apple says Steve Jobs is still involved

By Gabriel Madway

CUPERTINO, California (Reuters) - Apple Inc Chief Executive Steve Jobs remains deeply involved in company decisions despite ceding control over operations, executives told shareholders, while waving off questions about reports of a regulatory probe into disclosure.

In a one-hour annual meeting at the firm's headquarters in Cupertino, California, executives cautiously adhered to previous statements while fielding questions about Jobs' health -- a subject of persistent market speculation.

But they declined to answer questions about reports that the U.S. Securities and Exchange Commission was examining Apple's conduct in disclosing Jobs' health problems, which will keep the widely respected executive sidelined till at least June.

Facing a prolonged recession and drought in consumer spending, Apple has been unable to shake questions regarding the future of its charismatic CEO, who has been on medical leave and out of public view for more than a month.

Jobs -- who co-founded Apple and is credited with transforming it into a consumer juggernaut after returning as CEO a decade ago -- announced in January that he would take a five-month leave of absence, handing over the reins of the firm and saying his health problems were "more complex" than originally thought.

"Nothing has changed" since that announcement, co-lead director Arthur Levinson said in response to shareholders' questions at the firm's headquarters in Cupertino, California.

Legal experts say Apple could face lawsuits over its health-related disclosures -- or lack thereof -- although that part of the law is seen as something of a gray area.

Still, the mood at Wednesday's annual meeting was casual. Shareholders joined in a "Happy Birthday" chorus for Jobs, who was absent but turned 54 on Tuesday.

In 2004, Jobs was treated for a rare type of pancreatic cancer. He appeared gaunt at an Apple event in June 2008, touching off speculation that his cancer had returned. The company has not managed to completely quash that speculation.

The global economic slowdown has crushed consumer spending, and Apple's array of pricey Macintosh computers, iPhones and iPods is starting to feel the pinch. Analysts say the company needs to launch a new blockbuster product this year to help galvanize growth.

(Editing by Edwin Chan, editing by Gerald E. McCormick)

News : Facebook reverses course on privacy policy

By Alexei Oreskovic

SAN FRANCISCO (Reuters) - Facebook's efforts to build a business model around its online social network have hit another roadblock, as a backlash by its users forced the company to reverse a new policy.

The dispute involves changes that Facebook had made to its terms of service agreement. Some critics said the changes appeared to give the company a perpetual right to content that users post on the network.

People Against the new Terms of Service, a Facebook group created to oppose the changes, counted more than 88,000 users on Wednesday.

The about-face by Facebook underscores the sensitivity that many consumers have about their personal data, even on sites where they freely share information about their lives with online friends.

And it reflects the challenges facing Facebook as it seeks to squeeze money out of its network of 175 million users and to offset the costs of its rapid growth.

Facebook is quickly burning through its initial funding, said Sanford Bernstein analyst Jeffrey Lindsay. Among other things, the social network needs to pay for the computers and equipment that host its online service around the world.

"That's real money," said Lindsay. "They're realizing that they have to get a business model."

As a private company, Facebook does not disclose financial information. Lindsay said the site is rumored to generate $100 million to $300 million a year, most of it through an advertising arrangement with Microsoft Corp, which owns a 1.6 percent stake in Facebook.

Getting a better return from the business is proving tricky for Facebook.

It introduced a service called Beacon in 2007 that tracked individuals' online activity -- such as purchases made at participating e-commerce Web sites -- and reported the data to the individuals' Facebook friends. But the service raised privacy hackles, and Facebook made changes to make it easier for users to turn the service off.

In response to the latest dispute, Facebook CEO Mark Zuckerberg initially wrote in a blog post on Monday that users ultimately own and control their personal information.

On Tuesday evening, Zuckerberg said the company would revert to its original terms of service as it works on crafting a less objectionable service agreement.

Where that leaves Facebook's developing business model is unclear.

The company's gold mine is the rich trove of user information that people generate on its network, said IDC social media analyst Caroline Dangson, because the data could be used for targeted advertising or sold to research firms.

But the company needs to find the right balance between monetizing the data and respecting people's privacy.

"We're early in the process of trying to figure this out and understanding what consumers will tolerate," said Dangson.

And the evolving Facebook demographic, which increasingly includes older users and international users, means that privacy expectations are not uniform. According to Bernstein's Lindsay, Facebook needs to tread carefully.

"Our view is there are plenty of ways that Facebook should be able to make a lot of money, but they seem to be making one mistake after another," said Lindsay.

"If they're not careful," he said, "mistakes of that magnitude will cost them their user base."

(Reporting by Alexei Oreskovic; Editing by Gary Hill)

News : Sci-fi laser stiches wounds

It could be a scene from a sci-fi movie -- doctors instantly sealing a patient's wounds using little more than a laser beam.

A group of scientists from Tel Aviv University have discovered that by meticulously controlling a laser's heat they can use it to weld the skin shut.

This method of mending means the skin is less likely to tear and is more watertight than traditional needle and thread stitching of a wound.

Experiments on real patients in Israeli operating rooms have proven successful. Their wounds have healed faster and with less scarring.

The scientists hope to see their invention in operating rooms around the world in a few years time.

(SOUNDBITE) (English) AVRAHAM KATZIR, PHYSICS PROFESSOR TEL AVIV UNIVERSITY

News : Obama orders 60-day cybersecurity review

WASHINGTON (Reuters) - President Barack Obama on Monday ordered an immediate 60-day review of federal cyber security efforts and named Melissa Hathaway, a top U.S. intelligence official, to oversee the effort, according to a White House statement.

Hathaway, who served as a top cyber security adviser to Mike McConnell, the former director of national intelligence, will conduct the review for the White House National Security and Homeland Security Councils.

The review, which will examine what the federal government already is doing to protect vital U.S. computer networks, underscores mounting concerns about the risks of cyber attacks, and points to a growing market for U.S. contractors.

Northrop Grumman Corp, Lockheed Martin Corp and Boeing Co, the Pentagon's biggest contractors, already are working on a variety of cyber security projects for the U.S. government, many of which are classified.

Industry executives say the sector will be one of their fastest-growing markets in coming years, and analysts say it could generate over $10 billion in contracts by 2013.

Hathaway, who had been coordinating cyber security efforts for the intelligence community, will serve as acting senior director for cyber space during the review period, according to the White House statement, which was released late on Monday.

Obama highlighted the importance of safeguarding the nation's vital computer networks against enemy attacks during his campaign, and has promised to appoint a national cyber adviser to coordinate federal agency efforts and develop a national cyber policy.

Just before he left office last month, McConnell told reporters that the Internet had introduced an unprecedented level of vulnerability. "If you get in our systems and you're trying to destroy banking records or electric power distribution or transportation, it could have a debilitating effect on the country," he said.

The Senate last month confirmed Adm. Dennis Blair to be the new director of national intelligence, replacing McConnell.

Immediately upon taking office, the Obama administration underscored the importance of protecting U.S. information networks in a posting on the White House website.

It pledged to work with industry, researchers, and citizens to "build a trustworthy and accountable cyber infrastructure that is resilient, protects America's competitive advantage, and advances our national and homeland security."

The White House also said it would initiate a drive to develop next-generation secure computers and networking for national security applications; establish tough new standards for cyber security and physical resilience; battle corporate cyber espionage and target criminal activity on the Internet.

(Reporting by Andrea Shalal-Esa; editing by Carol Bishopric)

News : Amazon launches Kindle 2

Online retailer Amazon.com unveils a slimmer, revamped version of its electronic reading device.

The redesigned Kindle got favorable reviews at the launch in New York City. But the unchanged $359 price tag was a disappointment to some. Jeanne Yurman reports from New York. SOUNDBITES:

Jeff Bezos, CEO, Amazon.com >li?Avi Greengart, Research Director, Current Analysis

Sal Cangeloso, Senior Editor, Geek.com

News : Social web sites sign EU pact vs. "cyber-bullying"

BRUSSELS (Reuters) - Seventeen social networking sites in Europe including Facebook and MySpace signed on Tuesday a pact aimed at curbing "cyber-bullying" and protecting the privacy of underage users, the European Commission said.

The Commission, the 27-nation EU's executive arm, said the agreement will cut the risks of children harassing peers online and curb "grooming" -- the practice of adults befriending children online with the intention of committing sexual abuse.

"It is an important step forward toward making our children's clicks on social networking sites safer in Europe," Viviane Reding, EU Commissioner for Information Society and Media said in a statement.

The use of social networks has grown over the past year by 35 percent in Europe and is expected to more than double to 107.4 million users by 2012, the Commission said, warning that this would expose more children to risks online

MySpace owned by News Corp. last week revealed to a U.S. investigative task force that it had barred some 90,000 registered sex offenders from using the site over the last two years.

The Commission said the voluntary agreement was hoped to:

* Ensure that private profiles of users under the age of 18 are not searchable on the websites or search engines.

* Provide an easy to use and accessible "report abuse" software button, allowing users to report inappropriate contact from or conduct by another user with one click.

* Make sure that the full online profiles and contact lists of website users who are registered as under-18s are set to "private" by default, making it harder for people with bad intentions to get in touch with young people.

The British Home Office took similar steps to improve online safety last April, while 49 State Attorneys General in the United Sates have signed similar separate agreements with Myspace and Facebook.

The other sites that signed the EU agreement include: Arto, Bebo, Dailymotion, Giovani.it, Google/YouTube, Hyves, Netlog, Nasza-klaza.pl, One.lt, Skyrock, StudiVZ, Sulake/Habbo Hotel, Yahoo!Europe, and Zap.lu.

(Reporting by Bate Felix; editing by Mark John)