St. Patfrisk—the Patron Saint of Boston Irish Cops?

I just came across the term “patfrisk,” which seems to be almost exclusively a Massachusettsism, though the “pat frisk” (or “pat-frisk”) version also appears with some frequency in New York and Minnesota.  The first reference to “patfrisk” is in 1995 and to “pat frisk” in 1969, but without any self-consciousness, so it makes me think that it had been in the air before.

Patfrisk appears to be defined as a “carefully limited search of the outer clothing of [a] person[] … to discover weapons” (authorized by the Court in Terry v. Ohio). The term is likely a frisk × patdown portmanteau, but it’s not clear to me how it differs from just a frisk. I crave enlightenment, if there is some subtle distinction.

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It’s time to pay attention when attention stops paying

Did you ever wonder where all those trillion dollar tech valuations come from?  Turns out, a lot of the money comes from online programmatic advertising, an industry that gets little attention even from the companies it’s making wealthy, such as Google. That lack of attention is pretty ironic, because lack of attention is what’s going to kill the industry, according to Tim Hwang, former Google policy maven and current research fellow at the Center for Security and Emerging Technology (CSET).  In our interview, Tim Hwang explains the remarkably complex industry and the dynamics that are leaching the value out of its value proposition. Tim thinks we’re in an attention bubble, and the pop will be messy.  I’m persuaded the bubble is real but not that its end will be disastrous outside of Silicon Valley.

But first, in the news roundup Sultan Meghji and I celebrate was seems like excellent news about a practical AI achievement in predicting protein folding. It’s a big deal, and an ideal problem for AI, with one exception.  The parts of the problem that AI hasn’t solved would be a lot easier for humans to work on if AI could tell us how it solved the parts it did figure out.  Explainability, it turns out, is the key to collaborative AI-human work.

Opening the ‘Black Box’ of Artificial Intelligence | RealClearScience 

We welcome first time participant and long-time listener Jordan Schneider to the panel. Jordan is the host of the unmissable ChinaTalk podcast. Given his expertise, we naturally ask him about … Australia.

Actually, it’s a natural, because Australia is now the testing ground for many of China’s efforts to bend independent countries to its will using cyber power along with trade leverage. Among the highlights: Chinese tweets about Australian war crimes, boosted by a hamhanded bot campaign. And in a move that ought to be front an center in future justifications of the Trump administration’s ban on WeChat, the platform refused to carry the Australian prime minister’s criticism of the war-crimes tweet. Tom Cotton and Marco Rubio, call your office!

And this will have to be the Senators’ fight, because it looks more and more as though the Trump administration has thrown in the towel. Its claim to be negotiating a TikTok sale after ordering divestment is getting thinner; now the divestment deadline has completely disappeared, as the government simply says that negotiations will continue.   Nick Weaver is on track to win his bet with me that CFIUS won’t make good on its Tiktok order before the mess is shoveled onto Joe Biden’s plate.

Whoever was in charge of beating up WeChat and TikTok may have checked out of the Trump administration early, but the team that’s sticking pins in other Chinese companies is still hard at work. Jordan and Brian talk about the addition of SMIC to the amorphous Defense blacklist. And Congress has passed a law (awaiting Presidential signature) that will make life hard for Chinese firms listed on U.S. exchanges.

China, meanwhile, isn’t taking this lying down, Jordan reports. It is mirror-imaging all the Western laws that it sees as targeting China, including bans on exports of Chinese products and technology. It is racing (on what Jordan thinks is a twenty-year pace) to create its own chip design capabilities.

And with some success. Sultan, the podcast’s resident DeHyper, takes some of the hype out of China’s claims to quantum supremacy.  But even dehyped, China’s achievement should be making those who rely on RSA-style crypto just a bit nervous (and that’s all of us, of course).

Michael Weiner previews the still veiled state antitrust lawsuit against Facebook and promises to come back with details as soon as it’s filed. In quick hits, I explain why we haven’t covered the Iranian claim that their scientist was rubbed out by an Israeli killer robot machine gun: I don’t actually believe them.

Brian explains that another law aimed at China and its use of Xinjian forced labor is attracting lobbyists but likely to pass. Apple, Nike, and Coca-Cola have all taken hits for lobbying on the bill; none of them say they oppose the bill, but it turns out there’s a reason for that. Lobbyists have largely picked the bones clean.

President Trump is leaving office in typical fashion – gesturing in the right direction but uninteresting in actually getting there. In a “Too Much Too Late” negotiating move, the President has threatened to veto the defense authorization act if it doesn’t include a repeal of section 230 of the Communications Decency Act. If he’s yearning to wield the veto, Dems and GOP alike seem willing to give him the chance.  They may even override, or wait until January 20 to pass it again.

Finally I commend to interested listeners the oral argument in the Supreme Court’s Van Buren case, about the Computer Fraud and Abuse Act. The Solicitor General’s footwork in making up quasitextual limitations on the more sweeping readings of the Act is admirable, and it may well be enough to keep van Buren in jail, where he probably belongs for some crime, if not this one.

Download the 341st Episode (mp3)

You can subscribe to The Cyberlaw Podcast using iTunes, Google Play, Spotify, Pocket Casts, or our RSS feed. As always, The Cyberlaw Podcast is open to feedback. Be sure to engage with @stewartbaker on Twitter. Send your questions, comments, and suggestions for topics or interviewees to CyberlawPodcast@steptoe.com. Remember: If your suggested guest appears on the show, we will send you a highly coveted Cyberlaw Podcast mug!

The views expressed in this podcast are those of the speakers and do not reflect the opinions of their institutions, clients, friends, families, or pets.

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It’s time to pay attention when attention stops paying

Did you ever wonder where all those trillion dollar tech valuations come from?  Turns out, a lot of the money comes from online programmatic advertising, an industry that gets little attention even from the companies it’s making wealthy, such as Google. That lack of attention is pretty ironic, because lack of attention is what’s going to kill the industry, according to Tim Hwang, former Google policy maven and current research fellow at the Center for Security and Emerging Technology (CSET).  In our interview, Tim Hwang explains the remarkably complex industry and the dynamics that are leaching the value out of its value proposition. Tim thinks we’re in an attention bubble, and the pop will be messy.  I’m persuaded the bubble is real but not that its end will be disastrous outside of Silicon Valley.

But first, in the news roundup Sultan Meghji and I celebrate was seems like excellent news about a practical AI achievement in predicting protein folding. It’s a big deal, and an ideal problem for AI, with one exception.  The parts of the problem that AI hasn’t solved would be a lot easier for humans to work on if AI could tell us how it solved the parts it did figure out.  Explainability, it turns out, is the key to collaborative AI-human work.

Opening the ‘Black Box’ of Artificial Intelligence | RealClearScience 

We welcome first time participant and long-time listener Jordan Schneider to the panel. Jordan is the host of the unmissable ChinaTalk podcast. Given his expertise, we naturally ask him about … Australia.

Actually, it’s a natural, because Australia is now the testing ground for many of China’s efforts to bend independent countries to its will using cyber power along with trade leverage. Among the highlights: Chinese tweets about Australian war crimes, boosted by a hamhanded bot campaign. And in a move that ought to be front an center in future justifications of the Trump administration’s ban on WeChat, the platform refused to carry the Australian prime minister’s criticism of the war-crimes tweet. Tom Cotton and Marco Rubio, call your office!

And this will have to be the Senators’ fight, because it looks more and more as though the Trump administration has thrown in the towel. Its claim to be negotiating a TikTok sale after ordering divestment is getting thinner; now the divestment deadline has completely disappeared, as the government simply says that negotiations will continue.   Nick Weaver is on track to win his bet with me that CFIUS won’t make good on its Tiktok order before the mess is shoveled onto Joe Biden’s plate.

Whoever was in charge of beating up WeChat and TikTok may have checked out of the Trump administration early, but the team that’s sticking pins in other Chinese companies is still hard at work. Jordan and Brian talk about the addition of SMIC to the amorphous Defense blacklist. And Congress has passed a law (awaiting Presidential signature) that will make life hard for Chinese firms listed on U.S. exchanges.

China, meanwhile, isn’t taking this lying down, Jordan reports. It is mirror-imaging all the Western laws that it sees as targeting China, including bans on exports of Chinese products and technology. It is racing (on what Jordan thinks is a twenty-year pace) to create its own chip design capabilities.

And with some success. Sultan, the podcast’s resident DeHyper, takes some of the hype out of China’s claims to quantum supremacy.  But even dehyped, China’s achievement should be making those who rely on RSA-style crypto just a bit nervous (and that’s all of us, of course).

Michael Weiner previews the still veiled state antitrust lawsuit against Facebook and promises to come back with details as soon as it’s filed. In quick hits, I explain why we haven’t covered the Iranian claim that their scientist was rubbed out by an Israeli killer robot machine gun: I don’t actually believe them.

Brian explains that another law aimed at China and its use of Xinjian forced labor is attracting lobbyists but likely to pass. Apple, Nike, and Coca-Cola have all taken hits for lobbying on the bill; none of them say they oppose the bill, but it turns out there’s a reason for that. Lobbyists have largely picked the bones clean.

President Trump is leaving office in typical fashion – gesturing in the right direction but uninteresting in actually getting there. In a “Too Much Too Late” negotiating move, the President has threatened to veto the defense authorization act if it doesn’t include a repeal of section 230 of the Communications Decency Act. If he’s yearning to wield the veto, Dems and GOP alike seem willing to give him the chance.  They may even override, or wait until January 20 to pass it again.

Finally I commend to interested listeners the oral argument in the Supreme Court’s Van Buren case, about the Computer Fraud and Abuse Act. The Solicitor General’s footwork in making up quasitextual limitations on the more sweeping readings of the Act is admirable, and it may well be enough to keep van Buren in jail, where he probably belongs for some crime, if not this one.

Download the 341st Episode (mp3)

You can subscribe to The Cyberlaw Podcast using iTunes, Google Play, Spotify, Pocket Casts, or our RSS feed. As always, The Cyberlaw Podcast is open to feedback. Be sure to engage with @stewartbaker on Twitter. Send your questions, comments, and suggestions for topics or interviewees to CyberlawPodcast@steptoe.com. Remember: If your suggested guest appears on the show, we will send you a highly coveted Cyberlaw Podcast mug!

The views expressed in this podcast are those of the speakers and do not reflect the opinions of their institutions, clients, friends, families, or pets.

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$75 Billion in Band-Aids Won’t Cure Ailing Airlines

topicseconomics

Regal Cinemas announced in early October that it will temporarily close all 536 of its U.S. locations as the COVID-19 pandemic continues to keep customers away. This move affects about 40,000 employees across the country. Yet nobody in Congress is talking about a bailout for theaters.

Now compare that with the airline industry.

In April, Congress passed a $50 billion bailout for the airlines, including $25 billion in subsidized loans and another $25 billion meant to keep most airline workers employed until the end of September. As predicted, since consumers were not yet ready to fly, this taxpayer-funded band-aid only postponed the inevitable.

American Airlines and United Airlines furloughed 32,000 employees in the fall, claiming they had no choice without another $25 billion. So House Speaker Nancy Pelosi (D–Calif.), President Donald Trump, and many Senate Republicans drew the obvious conclusion: The bailout should be bigger.

Advocates of the additional $25 billion bailout say a new injection of funding will be used to restore 35,000 jobs. But as my colleague Gary Leff and I show in new research published by George Mason University’s Mercatus Center, the math doesn’t add up.

Assuming an average annual salary of $100,000, supporting 35,000 airline employees for six months—the time covered under the new proposed bailout—should cost a total of $1.7 billion. Yet airlines are asking for $25 billion, which works out to $715,000 per job temporarily saved. A more plausible explanation is that—as with the first bailout—airlines are planning on using taxpayers’ money, rather than their own, to cover the salaries of those who are at risk of furlough and the salaries of employees they have no intention of furloughing.

Airline representatives have argued that another bailout would not only help them bring back furloughed workers but also protect workers who went on leave back in April to avoid termination. Don’t buy it. First, there is no indication that airlines plan to furlough those people. If they did, they would have had to notify them 60 days in advance, which they have not done. Second, the concern that airlines will make additional, yet-to-be-announced furloughs strengthens the argument against payroll support. If airlines feel a need to furlough on-leave workers who aren’t currently costing them a dime, that suggests the industry is not expecting to do better anytime soon.

Some companies are taking a different approach to retaining their employees. Southwest Airlines, for example, is asking its labor unions to accept pay cuts through the end of 2021 to prevent furloughs and layoffs. Singapore Airlines has done the same.

Airlines also have access to capital markets and have many durable assets they can sell or use as collateral to secure additional financing, even during a crisis. And even without sacrificing these lucrative assets, airlines can turn to their credit-card-issuing partners for liquidity, as they have in response to past financial challenges.

Sadly, as long as demand for air travel remains deflated, there will be no way for airlines to avoid slimming down their payrolls. Subsidies provided under the cover of payroll programs are not necessary to protect an industry that can, and perhaps should, pursue restructuring through bankruptcy. Airlines can continue to fly safely during this process as a judge imposes a stay on creditors’ claims and gives the carriers breathing room until consumers are ready to come back.

Unlike special favors granted by Congress, the bankruptcy process is equitable. It shifts the cost of the crisis onto airline investors, who make good returns during good times in exchange for shouldering the decreased value of their investments during bad times, instead of taxpayers. Without another bailout, the skies that the airlines fly will be fair as well as friendly.

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via IFTTT

$75 Billion in Band-Aids Won’t Cure Ailing Airlines

topicseconomics

Regal Cinemas announced in early October that it will temporarily close all 536 of its U.S. locations as the COVID-19 pandemic continues to keep customers away. This move affects about 40,000 employees across the country. Yet nobody in Congress is talking about a bailout for theaters.

Now compare that with the airline industry.

In April, Congress passed a $50 billion bailout for the airlines, including $25 billion in subsidized loans and another $25 billion meant to keep most airline workers employed until the end of September. As predicted, since consumers were not yet ready to fly, this taxpayer-funded band-aid only postponed the inevitable.

American Airlines and United Airlines furloughed 32,000 employees in the fall, claiming they had no choice without another $25 billion. So House Speaker Nancy Pelosi (D–Calif.), President Donald Trump, and many Senate Republicans drew the obvious conclusion: The bailout should be bigger.

Advocates of the additional $25 billion bailout say a new injection of funding will be used to restore 35,000 jobs. But as my colleague Gary Leff and I show in new research published by George Mason University’s Mercatus Center, the math doesn’t add up.

Assuming an average annual salary of $100,000, supporting 35,000 airline employees for six months—the time covered under the new proposed bailout—should cost a total of $1.7 billion. Yet airlines are asking for $25 billion, which works out to $715,000 per job temporarily saved. A more plausible explanation is that—as with the first bailout—airlines are planning on using taxpayers’ money, rather than their own, to cover the salaries of those who are at risk of furlough and the salaries of employees they have no intention of furloughing.

Airline representatives have argued that another bailout would not only help them bring back furloughed workers but also protect workers who went on leave back in April to avoid termination. Don’t buy it. First, there is no indication that airlines plan to furlough those people. If they did, they would have had to notify them 60 days in advance, which they have not done. Second, the concern that airlines will make additional, yet-to-be-announced furloughs strengthens the argument against payroll support. If airlines feel a need to furlough on-leave workers who aren’t currently costing them a dime, that suggests the industry is not expecting to do better anytime soon.

Some companies are taking a different approach to retaining their employees. Southwest Airlines, for example, is asking its labor unions to accept pay cuts through the end of 2021 to prevent furloughs and layoffs. Singapore Airlines has done the same.

Airlines also have access to capital markets and have many durable assets they can sell or use as collateral to secure additional financing, even during a crisis. And even without sacrificing these lucrative assets, airlines can turn to their credit-card-issuing partners for liquidity, as they have in response to past financial challenges.

Sadly, as long as demand for air travel remains deflated, there will be no way for airlines to avoid slimming down their payrolls. Subsidies provided under the cover of payroll programs are not necessary to protect an industry that can, and perhaps should, pursue restructuring through bankruptcy. Airlines can continue to fly safely during this process as a judge imposes a stay on creditors’ claims and gives the carriers breathing room until consumers are ready to come back.

Unlike special favors granted by Congress, the bankruptcy process is equitable. It shifts the cost of the crisis onto airline investors, who make good returns during good times in exchange for shouldering the decreased value of their investments during bad times, instead of taxpayers. Without another bailout, the skies that the airlines fly will be fair as well as friendly.

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Brickbat: Closely Tracked

phonetracking_1161x653

The U.S. Department of Homeland Security’s inspector general is investigating whether Customs and Border Protection’s purchase of cellphone location data without warrants is improper. The agency has paid nearly half a million dollars to access a database compiled by a marketer that collects data from cellphone apps. In 2018, the U.S. Supreme Court ruled the government must generally obtain a warrant to obtain such data from cellphone carriers, but Customs and Border Protection argues that because it is buying the information from a third party, not carriers, the decision does not apply.

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Brickbat: Closely Tracked

phonetracking_1161x653

The U.S. Department of Homeland Security’s inspector general is investigating whether Customs and Border Protection’s purchase of cellphone location data without warrants is improper. The agency has paid nearly half a million dollars to access a database compiled by a marketer that collects data from cellphone apps. In 2018, the U.S. Supreme Court ruled the government must generally obtain a warrant to obtain such data from cellphone carriers, but Customs and Border Protection argues that because it is buying the information from a third party, not carriers, the decision does not apply.

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Is This Kraken a Few Tentacles Short of a Full Octopus?

Sidney Powell ‘Kraken’ lawsuit dismissed in Georgia after defeat in Michigan.” I haven’t followed the litigation closely enough to opine on the merits, but so far it appears that the Kraken hasn’t really done much against any titans.

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