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| | | February 1, 2004
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Sunday, February 1, 2004 |
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Doom and gloom after worst worm attack ever
A single day was needed for a highly-virulent worm to become the worst Internet infection ever, crippling e-mail servers worldwide and making a bid to attack the two most prominent open-source antagonists. Only discovered on Monday, the virus identified by different network security companies as MyDoom, Novarg or a variant of the Mimail worm spread swiftly across the globe and reached its peak in just 27 hours, according to e-mail security company MessageLabs.
Spoofing senders' addresses, the worm arrives via e-mail messages looking either as innocent delivery failure reports or error messages. After infecting a computer system, MyDoom opens a backdoor on the PC for hackers to exploit, aggressively scours the hard drive for e-mail addresses, copies itself in the shared folder of the popular file-sharing application Kazaa, and prepares to flood the web site of Utah-based UNIX vendor The SCO Group, starting February 1.
Finnish antivirus software maker F-Secure dubbed the worm the worst ever virus incident in computer history, claiming at one point 20 to 30 percent of all e-mail traffic on the Internet was generated by MyDoom. Network Associates estimated 400,000 to 500,000 PCs were infected worldwide. The situation, however, was even aggravated by an obsolete feature in server antivirus software, which informs senders of incoming messages when they include a virus. Experts said a quarter of all MyDoom-related messages were actually notifications of infections. Network security pundits, however, agreed that previous worm outbreaks had taught users a lesson and many corporate e-mail systems were adequately protected. Nevertheless, the gigantic distribution effects were indisputably seen as MyDoom got an edge by luring e-mail users to open the attachments, a technique referred to as 'social engineering'.
The attack component of the worm led analysts to believe MyDoom was the work of a Linux proponent. The virus is programmed to launch a denial-of-service attack against www.sco.com, the web site of The SCO Group, which last year launched multibillion litigation against the open-source community, claiming Linux illegally incorporated SCO-owned UNIX intellectual property. SCO announced it will offer a $250,000 reward to the person who provides information leading to the arrest and the conviction of the worm's author.
But SCO was not the only company attacked by MyDoom. A second, even more potent variant appeared, which was set to also launch an attack on the web site of software giant Microsoft. In addition, MyDoom.B prevented infected machines from accessing security web sites, thus causing problems for antivirus programs to get updated virus definitions. Following its policy of offering bounties for the creators of particularly damaging worms, Microsoft said it will also award $250,000 for information leading to the author of the second variant.
As MyDoom wreaked havoc around the world, increasing its pool of participants for the February 1 attacks against SCO and Microsoft, the U.S. Department of Homeland Security announced the creation of a National Cyber Alert System. The program administered by the U.S. Computer Emergency Response Team (CERT) will be informing subscribers about the software security vulnerabilities as they emerge.
More from: AP (via Wired News) | CNET News.com 1 2 3 4 5 6 7 8 9 | Computerworld 1 2 3 4 5 | CRN | eWeek 1 2 3 4 | InformationWeek | InternetNews.com 1 2 3 | NewsFactor 1 2 3 | The Register 1 2 | Reuters 1 2 3 4 5 | Svetlozar Online | TechWeb 1 2 3 4 5 6 | VNUNET.com 1 2 3 4 5 6 7 | The Washington Post | Wired News 1 2
Gateway seeks to reemerge with a bid for eMachines
Struggling computer maker Gateway announced it will acquire rival eMachines in an attempt to reemerge as a leader in the market. In the past couple of years, Gateway has been suffering from a steep drop in earnings largely due to fierce competition and increasingly slimming profit margins. At the same time, privately-held eMachines, with its strong retail presence, has been one of the fastest-growing makers of desktops and notebooks.
Gateway will be buying eMachines for $30 million in cash and 50 million shares of stock. The total value of the deal is estimated to exceed $260 million and is expected to be completed by mid-March. According to Gateway, the combined company will be the third largest PC manufacturer in the United States and the eight worldwide. Under the agreement, the CEO of eMachines, Wayne Inouye, would become Gateway's chief executive, while Gateway's founder and current CEO Ted Waitt would only remain chairman of the board.
The move is widely seen as an acknowledgement of Gateway's increasingly deteriorating position in the PC market. Just a day before the announcement, the company posted a loss of $114 million and announced a 27 percent fall in unit shipments in comparison with the same period a year ago. With eMachines on board, Gateway will expand its product line and will have more retail channels to distribute its products.
More from: AP (via USA Today) | CNET News.com 1 2 3 | Computerworld | eWeek 1 2 | InfoWorld | InternetNews.com | Reuters | The Washington Post
Booble angers Google
Newly launched adult search engine Booble has angered Internet search giant Google. According to Booble, the look and feel of Booble.com, which mimics those of the popular search engine, were not left unnoticed by Google's trademark enforcement team. Just twenty-four hours after the site was unveiled, Google sent an e-mail to Booble demanding a transfer of the domain name and cessation of all activities tarnishing the Google brand. On Thursday, Booble responded saying the site is clearly a parody and explicitly says it is not affiliate with Google. Legal experts, however, noted building a search engine by copying the design of another may not stand in court with the 'parody' argument.
But trademark issues have also struck Google itself. After several warnings issued last year, Michigan-based American Blind and Wallpaper Factory Inc. filed a lawsuit against the search company for violating its trademark by selling keyword-based advertising to competitors on search terms such as American Blind and American Blinds. The suit names Netscape Communications Corp. and Ask Jeeves Inc., whose web sites feature Google advertising, as co-defendants.
American Blind and Wallpaper Factory claims it is illegal to profit from the company's brand by selling ad space to rival companies. Google on its side has said American and blind are descriptive terms and should not be protected by copyright law. Analysts, however, agree that if Google loses a court battle the case will have resounding implications over the keyword-based advertising formula that is increasingly gaining popularity as a highly-profitable online revenue source.
More from: CNET News.com 1 2 | Computerworld | InternetNews.com 1 2 | Reuters
In Other News...
 A Dutch judge struck a blow to Linux seller Lindows ruling the company's product infringes on Microsoft's Windows trademark. A preliminary injunction will block Lindows from selling and advertising its products in the Netherlands, Belgium and Luxembourg. Swedish and Finnish courts have also barred the company from marketing its products.
Mike Rowe, the 17-year-old Canadian teenager who resisted Microsoft's threats to give up the domain MikeRoweSoft.com and publicized his story, has reached a deal with the software giant and settled out of court. In exchange for transferring the domain name to the software maker, Rowe will receive help on setting up his new web site at MikeRoweForums.com, a subscription to the Microsoft Developer Network web site, a free Microsoft certification course, a free family visit to the Microsoft Research Tech Fest in Redmond, Washington, and a free Xbox game console.
Microsoft has announced it plans to move away from object-based programming and further turn to the Extensible Markup Language (XML) in future version of Windows. The software giant will no longer invest efforts into the currently used methods for communication between programs, the Common Object Model (COM) and the Distributed Component Object Model (DCOM), signaling major changes in the development of future Windows-compatible applications.
Microsoft officially said it will hold off the release of a browser modification which will address changes required by the ruling in the case of its patent dispute with Chicago-based Eolas Technologies. The company which is both appealing the ruling and attempting to invalidate the patent will not make changes until a final order to do so is issued.
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