Amazon offers free digital versions of purchased CDs

SAN FRANCISCO (Reuters) - Amazon.com Inc, taking aim at Apple's dominant iTunes store, on Thursday unveiled a service that it hopes will boost digital music sales and encourage more people to use its Cloud music service.
Amazon launched Amazon AutoRip, which gives customers free digital versions of music CDs they purchase from the world's largest Internet retailer.
The digital music files are automatically stored in customer libraries in remote datacenters run by Amazon, where they are available to play or download immediately through the company's Cloud Player service, the company said.
Amazon customers who have bought AutoRip-eligible CDs at any time since the company started selling discs in 1998 will also get digital versions of that music stored in their Cloud Player libraries for free, the company added.
Amazon's MP3 digital music business has been around since 2007, but its market share is less than 15 percent, according to The NPD Group. Apple Inc's iTunes store is the clear leader, with over 50 percent of the market.
The move sparked speculation that Amazon may be able to do the same for books, making Kindle ebook copies of physical titles.
"It would even be profitable for Amazon.com to pay publishers a subsidy to transition all the books purchased on Amazon.com to Kindle books," said Scott Devitt, an analyst at Morgan Stanley. "Having a digital library that is accessible only on the Kindle platform essentially locks a customer into the Kindle ecosystem forever.
"If executed, it would possibly be the largest coup in company history," he added.
An Amazon spokeswoman did not respond to an e-mail seeking comment on Thursday afternoon about a book version of AutoRip.
More than 50,000 albums are available for AutoRip. Steve Boom, head of digital music at Amazon, said the company focused on music that has been the most popular among its customers during the past 15 years.
Albums include "21" by Adele; "Overexposed" by Maroon 5; "Dark Side of the Moon" by Pink Floyd and "Thriller" by Michael Jackson.
Boom declined to estimate how many CDs Amazon expects to digitize through the new service. However, he noted that the company has sold hundreds of millions of CDs to millions of customers.
"When we picked those 50,000 titles we focused on having a substantial majority of our physical CD sales covered," he added. "People will be exposed to Cloud Player and our digital music offering, which is a good thing," Boom said. "We want to take this global."
Amazon is making a bigger push against iTunes now that the company's Kindle Fire tablets are in more consumers' hands and its Cloud Player music application is available on a range of other mobile devices, including Apple's iPhone, iPad and iPod Touch.

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Academy Launches Oscar App on Android, Amazon

LOS ANGELES (TheWrap.com) - The Academy launched its official Oscars app on Android and Amazon on Thursday, expanding its initiative to direct fans' attention from the television to the second screen.
The app, already available on the iPad and iPhone, was made available for free on the Google Play store and the Amazon app store, the Academy said. According to iTunes, the iPad app was updated earlier on Wednesday.
Developed by the Academy and Disney/ABC Television Group's digital media arm, the app allows users to see behind-the-scenes videos and stories with host Seth MacFarlane and search information about the nominees. It also features a "My Picks" ballot on which users can organize their dream-team of winners.
On Oscar night on February 24, the app will feature "Backstage Pass," a live telecast from more than a dozen cameras placed on the Red Carpet and throughout the Dolby Theatre - in the press room, the control room, backstage and elsewhere.
And a ticker on the app will notify when a users' favorite actor and actress arrives on stage.
"We're always looking for ways to bring fans closer to the show and this app provides a unique and fun way to do that," Josh Spector, the managing director of digital media and marketing for the Academy, said in a statement. "More fans than ever will be able to enjoy the full Oscar experience now that our app is available to Droid users."

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Three witnesses won't be charged in Ohio football rape case: documents

(Reuters) - At least three members of a high school football team in Steubenville, Ohio, received word they would not be prosecuted just days before testifying against teammates accused of raping a 16-year-old girl, according to documents obtained by Reuters.
In letters from Ohio Attorney General Mike DeWine's office addressed to each student's lawyer, the state committed to not prosecuting Evan Westlake, Anthony Craig and Mark Cole, three witnesses for the prosecution.
But DeWine said on Thursday his office had made no deal with any of the witnesses involved in the case.
"We have offered nothing, made no promises to any witness in this case. ... No deals have been cut with anybody," DeWine told WTOV television in comments confirmed by his spokesman.
The case has unsettled Steubenville, a city of 19,000 near the Pennsylvania border where football has a powerful influence.
Community leaders have criticized authorities, voicing suspicion they have avoided charging more players who could have been involved in order to protect the school's beloved football program.
Days after the letters were sent, all three players testified at a pre-trial hearing against teammates Ma'lik Richmond and Trenton Mays, both 16, who were charged with raping a classmate at a party attended by many teammates last August. Richmond and Mays were set to be tried as juveniles in February.
Although evidence in the criminal case showed each player "may not have conducted himself in a responsible or appropriate manner, his behavior did not rise to the level of any criminal conduct," all three letters say. "Therefore, we will not prosecute your client for his actions on August 11-12, 2012."
Walter Madison, an attorney who represents one of the students charged with rape, verified the letters' authenticity, but declined to comment further.
The letters can protect the players from criminal charges, said John Burkoff, a criminal law professor at the University of Pittsburgh.
"If the government says that it won't prosecute you and then changes its mind, you can argue that it can't go back on that," he said. "It's constitutional estoppel (an impediment)."
The letter to Westlake, dated September 28, was signed by Ohio Associate Attorney General Marianne Hemmeter. The other two letters were signed by Ohio Associate Assistant Attorney General Jennifer Brumby and dated October 9, three days before the trio testified against their teammates. Brumby and Hemmeter conducted the questioning at that hearing.
Attorney General spokesman Dan Tierney said the state decided the students would go uncharged only for the crime of illegal use of a minor in nudity-oriented material.
"We would stand by the attorney general's previous comments," he told Reuters on Thursday.
The case shot to national prominence last week when the online activist group Anonymous made public a picture of the purported rape victim being carried by her wrists and ankles by two young men. Anonymous also released a video that showed several other young men joking about an assault.

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Red Hat shares up on acquisition and 3Q results

Red Hat Inc.'s shares jumped Friday on the software company's solid third-quarter results and plans to acquire cloud-based software company ManageIQ.
THE SPARK: Red Hat said late Thursday that it would buy privately held ManageIQ for $104 million in cash.
The Raleigh, N.C., company also reported that it earned 29 cents per share for its fiscal third quarter on an adjusted basis, up a penny from the prior year and in line with analyst expectations. Its revenue for the period increased 18 percent to $343.6 million, which beats the $338 million that analysts polled by FactSet had forecast.
THE BIG PICTURE: ManageIQ's software helps businesses deploy and manage private clouds. Red Hat said the deal will expand the reach of its public-private cloud setups for its customers. The acquisition is expected to have no material impact to Red Hat's revenue for its fiscal year ending in February.
THE ANALYSIS: Stifel Nicolaus analyst Brad R. Reback said that the company has been able to maintain momentum even in a difficult environment and he thinks the latest deal offers an interesting longer-term angle for its business. He thinks the company is well positioned to generate at least 15 to 20 percent billings growth in the future. He reiterated a "Buy" rating and a $65 price target on its shares.
SHARE ACTION: Shares gained $2.25, or more than 4 percent, to $54.86 in afternoon trading. Shares have traded between $39.19 and $62.75 in the past 52 weeks.

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Dozens of Android Games, Apps Discounted for Google Holiday Sale

The Google Play store -- that's the name of the Android "app store," or the "Android Market" for those of you new to the change -- is featuring dozens of game and app sales for Android smartphones and tablets. Well, actually, it's not; you can see some of the discounted apps on the front page, but there's no special section of the website or on-device market that says where the ones on sale are, or even how to find them. And the "Holiday Surprise" feature is only a handful of deals picked by Google itself.
Here's a look at some of the major game publishers' Android sales, along with discounted creativity apps and where to find more details.
Gameloft's "Android Christmas" sale
It may be too late for Hanukkah this year, but top-tier Android publisher Gameloft has put a dozen of its titles up for sale for Christmas just $0.99 . These games are normally in the $5-7 range, making them among Android's priciest.
Besides its licensed games based on movies -- like superhero films "The Dark Knight Rises" and "The Amazing Spider-Man," and (inexplicably) "The Adventures of Tintin" -- Gameloft is best known for creating mobile versions of popular PC and console games. Not in the sense that they are official ports, so much as that they're remarkably similar, to the extent that they arguably could be official ports if the serial numbers were filed off. With that in mind, several of its Modern Combat (which are totally not Modern Warfare) and N.O.V.A. first-person shooters (which are totally not Halo) are included in the sale, although the most recent installment of the former -- Modern Combat 4 -- is not.
Superhero fans may also want to check out Marvel Games' Avengers Initiative, which isn't a Gameloft title but is also on sale for $0.99 .
Square-Enix's "Winter of Mobile" sale
Best known for having invented the jRPG genre, Square-Enix has brought several of its most popular titles to Android, and most of them are discounted (from their extremely high launch prices) for the holidays.
Crystal Defender, Chrono Trigger, and Final Fantasy have all received numerous 1-star reviews on Google Play for technical issues, and reviewers complain that the titles haven't been optimized for Android hardware. The Chaos Rings titles, however, fare much better with reviewers, and are much more steeply discounted as well, at $3.99 each compared to their usual price of $12.99. They're ports of the iOS originals, which were Square-Enix's first attempts at making "real" jRPGs for mobile devices.
SEGA's Holiday Sale
SEGA's games are on sale for the holidays across the board, on pretty much every platform. On Android, that mostly amounts to Sonic 4 (episodes 1 and 2) and Sonic CD, all of which are on sale for $0.99 . Strategy title Total War Battles and rollerblade platformer Jet Set Radio, meanwhile, are on sale for $1.99.
Creativity / productivity apps on sale
Android phones and tablets aren't just for gaming. If you didn't pick up Microsoft Office-compatible OfficeSuite Pro 6+ during Google's earlier $0.25 sale, it's discounted to $0.99 now from its regular price of $14.99. Autodesk's professional drawing apps, SketchBook Mobile and SketchBook Pro for Tablets, are $0.99 and $2.99 compared to $1.99 and $4.99 regularly, and the Jotter handwriting app -- which requires a Samsung Galaxy Note -- is half-off at $1.99.
Stay up to date
Many more Android games and apps are being discounted for the holidays. Apps such as (the aptly-named) AppSales can help keep you apprised of the latest additions. Meanwhile, the Android Police blog is maintaining an up-to-date "Enormous List" of all holiday sales.

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El MIDI, la tecnología que le abrió la puerta a la música digital, cumple 30 años

Un pequeño teclado y un ordenador portátil: hasta que apareció la tecnología MIDI, hace 30 años, nadie imaginaba que sólo con ese equipo se podría dar un concierto. Dicen los entendidos que para apreciar realmente el tema Shine on you crazy diamond , de Pink Floyd, es mejor escucharlo en vinilo.
Las emisiones de los sintetizadores estallan a través del crepitar de la púa sobre el disco, mientras la guitarra y la batería marcan un ritmo ondulante. Es un sonido enorme que define toda una época, y uno puede sumergirse por completo en el espíritu de esos años con esa versión en vinilo.
Pero más allá de la impresionante creatividad de la música, el sonido evidencia una importante limitación en la forma en la que los instrumentos musicales electrónicos se controlaban en aquel momento.
"Una banda como Kraftwerk, por ejemplo, utilizaba 200 teclados analógicos distintos", explica el músico argentino Cineplexx.
Pero la tecnología de la Interfaz Digital de Instrumentos Musicales (MIDI, según sus siglas en inglés) permitió conectar los instrumentos a una computadora y entre sí, lo que supuso un cambio enorme.
"Yo cuando doy un concierto utilizo un teclado con 20 teclas y un ordenador portátil", cuenta Cineplexx .
Con estos elementos es posible componer, secuenciar, programar, modificar y reproducir el sonido de cualquier instrumento, como "un vibráfono o un sintetizador".
Un lenguaje común
El protocolo MIDI nació en California, de la mano de Dave Smith, un fabricante de sintetizadores, que convenció a sus competidores para que adoptaran un formato en común que permitiera controlar de forma externa a los sintetizadores, con otro teclado o incluso a través de una computadora.
MIDI pronto se convertiría en el estándar industrial para conectar diferentes instrumentos electrónicos, cajas de ritmo, samplers y ordenadores. Esta tecnología abrió una "nueva era de procesamiento musical".
"Lo que hizo MIDI es permitir el nacimiento de los primeros estudios de grabación caseros", cuenta Smith en conversación con Tom Bateman, de BBC Radio 4.
El Prophet-600 de Sequential Circuits en acción


"Las computadoras eran lo suficientemente rápidas como para secuenciar notas y controlar el número de teclados y cajas de ritmos al mismo tiempo, y eso abrió paso a una industria nueva".
Fue un avance que tendría el mismo impacto en la música popular que la electrificación de guitarras, desarrollada décadas antes.
El nacimiento de la música dance
Alex Paterson , fundador de la banda de ambient dance llamada The Orb, tiene un estudio de grabación en su casa de Buckinghamshire, Reino Unido.
"Que Dios bendiga a MIDI", exclama al ser consultado.
"Fue como entrar en un sueño", cuenta, refiriéndose al sistema utilizado en 1990 para grabar el tema emblemático de la banda, Little Fluffy Clouds.
"Estaba todo allí guardado, listo para que tú lo lances, fue realmente increíble", recuerda.
Este control orquestado y secuenciado de los sonidos de sintetizadores, cajas de ritmo y samplers dio lugar a nuevas formas de producción: así nació la música dance.
Lo que hizo MIDI fue "separar la tecla del sonido", dice Cineplexx. Ahora se pueden crear órdenes digitales y asignarle a cada tecla los sonidos que se quieran.
El músico argentino ofrece una comparación interesante con las cámaras digitales y analógicas en el mundo de la fotografía.
"Hay quienes cuestionan la calidad", dice, pero destaca que en la práctica el MIDI proporcionó la posibilidad de escribir partituras digitales interpretarlas como se quiera con un pequeño teclado.
Libre acceso
El primer instrumento con capacidad MIDI fue un sintetizador llamado Prophet-600 - diseñado por Dave Smith - que comenzó a producirse en 1982.
Las computadoras Atari y Commodore 64, muy populares entre los aficionados a los videojuegos en aquella época, también podían utilizarse para controlar instrumentos MIDI a través de un cable con conectores DIN (de cinco puntas) en cada extremo.
La amplia disponibilidad del formato y la facilidad de su uso permitieron redefinir la música pop de los 80, le aportaron un fuerte sonido electrónico y engendraron muchos de los géneros musicales contemporáneos.
Dom Beken, coproductor de Alex Paterson, recuerda cómo la tecnología MIDI permitió que cualquiera pudiera crear "masivos paisajes sonoros". "Pioneros de la electrónica y antiguos punks ahora podían hacer cosas que enloquecían al público en las pistas de baile", dice.
Para Dave Smith, MIDI sólo podía triunfar si todos los fabricantes la adoptaban. "Tuvimos que regalarla", dice. La universalidad del formato fue quizás un ejemplo precursor de lo que ahora se denomina tecnología de código abierto (open source), para que cualquiera tuviera acceso.
"Por supuesto que hubiera sido divertido ganar dinero con ella", dice su creador californiano.
"Pero ese no era el plan".
Treinta años después, la tecnología MIDI se mantiene como uno de los componentes centrales de la grabación y producción profesional de música.

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Mint, otro Linux para quienes quieren explorar el mundo fuera de Windows

Una de las grandes virtudes de Linux (un sistema operativo libre para PC y otros dispositivos) es la cantidad innumerable de versiones disponibles. Estas distribuciones, además, son en su enorme mayoría de uso gratis, y representan una buena alternativa para los que no desean invertir en una licencia de Windows o quieren explorar -sin gastar- alternativas para la computadora hogareña.
Hemos recomendado en varias ocasiones opciones sencillas de usar e instalar que tienen herramientas iguales o muy similares a las que pueden encontrarse en Windows, destacando la ductilidad de las distribuciones disponibles y cómo hacer para probarlas sin complicarse demasiado , usando un CD regrabable o un pendrive, para no afectar el Windows instalado en la computadora.
En los últimos años fue Ubuntu el que más hizo para facilitarle el trabajo a los neófitos que venían de Windows, automatizando y simplificando procesos de instalación, creando un sitio amigable, sumando instrucciones de instalación y uso en lenguaje no técnico e incluso haciendo acuerdo para preinstalarlo en equipos de marca , pero la elección de la interfaz de usuario Unity (algo rígida) le hizo perder adeptos.
Una de las alternativas que venía creciendo en popularidad era Linux Mint (gratis), y los últimos números de DistroWatch , un sitio que lista las diferentes distribuciones y su popularidad, lo dan como el rey de 2012. Mint usa a Ubuntu como base, por lo que aprovecha algunas de sus herramientas (como la que permite instalarlo dentro de Windows para poder usarlo sin afectar la instalación original) y viene con una gran cantidad de componentes multimedia preinstalados, para facilitar la reproducción de audio y video, entre otras cosas (las distribuciones más "puras" suelen evitar esto para promover el uso de estándares libres de audio y video).
Hace poco más de un mes Linux Mint liberó su versión más reciente, Nadia 14, que incluye dos entornos de escritorio que resultarán muy agradables para quienes no se sienten cómodos con Unity, porque mantienen el esquema tradicional de Windows y Gnome 2.x: una barra de herramientas en la parte inferior de la pantalla, ventanas con los botones de control a la derecha, etcétera.

Linux Mint 14 tiene dos versiones: MATE (basado en Gnome 2.x, y cuyo nombre está inspirado en la yerba mate) y Cinnamon (canela, en inglés) de aspecto similar pero con algunos detalles visuales más atractivos: menús de notificaciones más sofisticados, escritorios virtuales persistentes, miniaturas en el administrador de ventanas y más.
cómo instalarlo
Cualquiera de ellas se puede meter en un pendrive o disco externo y correr desde allí o, si se quiere, instalarlas en la PC, junto con Windows (es compatible con Windows 8) o en una partición nueva. Alcanza con descargar el archivo ISO de instalación (hay uno para MATE y otro para Cinnamon). Ese archivo (900 MB, aproximadamente) se puede grabar en un DVD con una aplicación para quemar imágenes de disco: en Windows está el freeware CDBurnerXP , por ejemplo. Con el disco en la lectora, al encender al PC debería cargar primero Mint antes que Windows (si no, habrá que cambiar una configuración en el BIOS). Podremos usarlo como si estuviera instalado en la PC y luego, si queremos, instalarlo en el disco rígido de nuestra computadora, cuidando de hacerlo en una partición vacía o dentro de Windows.
Otra opción es instalarlo en una memoria USB (de 2 GB o más de capacidad). Para eso hay que usar la aplicación Image Writer (gratis, hay que cliquear donde dice win32diskimager-binary.zip para descargar el archivo). Luego habrá que cambiar la extensión del archivo de .ISO a .IMG para que Image Writer reconozca el archivo y pueda copiarlo en el pendrive (atención que borrará todo lo que está allí).
Si al prender la PC con el pendrive conectado no lo reconoce, habrá que cambiar el orden de carga de sistemas operativos, una opción que suele aparecer apenas se prende la PC (y que no estará disponible si la computadora es muy vieja) para ordenarle que cargue primero el contenido de la memoria USB.
Para quienes estén pensando en probar una distribución de Linux y buscan reducir el "choque cultural" con una interfaz de usuario que sea parecida -pero no idéntica- a la del Windows tradicional, y que además sea sencillo de usar, tienen en Linux Mint 14 Nadia una opción muy atractiva.

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Makers of $99 Android-Powered Game Console Ship First 1,200 'Ouyas'

Like Nintendo's Wii U game console, the Ouya (that's "OOH-yuh") has an unusual name and even more unusual hardware. The console is roughly the size of a Rubik's cube, and is powered by Android, Google's open-source operating system that's normally found on smartphones and tablets.
Ouya's makers, who are preparing the console for its commercial launch, encourage interested gamers to pop the case open and use it in electronics projects ... or even to write their own games for it. Especially if they're among the 1,200 who are about to receive their own clear plastic Ouya developer consoles.
Not exactly a finished product
The limited-edition consoles, which have been shipped out to developers already, are not designed for playing games on. They don't even come with any.
Rather, the point of these consoles is so that interested Android developers can write games for the Ouya, which will then be released to gamers when the console launches to the public. Fans who pledged at least $1,337 to Ouya's record-breaking Kickstarter project will get one, and while they're not quite suited for playing games on -- "we know the D-pad and triggers on the controller still need work," Ouya's makers say -- the clear plastic developer consoles serve as a preview of what the finished product will look like, and a reminder of Ouya's "openness."
You keep using that word ...
In the food and drug industries, terms like "organic" and "all-natural" are regulated so that only products which meet the criteria can have them on their labels. In the tech world, however, anyone can claim that their product is "open," for whatever definition of "open" they like.
The term was popularized by the world's rapid adoption of open-source software, like Android itself, where you're legally entitled to a copy of the programming code and can normally use it in your own projects (like Ouya's makers did). But when tech companies say that something is "open," they don't necessarily mean that the code or the hardware schematics use an open-source license.
How Ouya is "open"
Ouya's makers have released their ODK, or developer kit, under the same open-source license as Android itself. This allows aspiring game developers to practice their skills even without a developer console, and to improve the kit however they want. The hardware itself is currently a "closed" design, however, despite the clear plastic case. The makers have expressed enthusiasm for the idea of hardware hackers using it in projects, and have said, "We'll even publish the hardware design if people want it," but so far they haven't done so.
What about the games?
The most relevant aspect of "openness" to normal gamers is that Ouya's makers say "any developer can publish a game." This model is unusual for the console world, where only select studios are allowed to publish their wares on (for instance) the PlayStation Network, but is more familiar to fans of the anything-goes Google Play store for Android. Several big-name Android developers -- including console game titan Square-Enix -- have already signed up to have their wares on the Ouya.
Preordered Ouya game consoles (the normal ones, not the developer edition) will ship in April. They will cost $99 once sales are opened to the general public.
Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.

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Samsung is replacing faulty Galaxy S IIIs that are suddenly dying for no reason

Samsung (005930) is reportedly quietly replacing faulty Galaxy S III devices according to many users on XDA Developers. The issue appears to be related to the NAND becoming corrupted and killing off the Galaxy S III’s mainboard, which causes the phone to essentially “brick” itself. Users have reported the issues have affected some devices after 150-200 days after purchase. Users on XDA Developers and Reddit are also saying Samsung is replacing affected smartphones (rooted or not) with new ones that could potentially be just as faulty in another 200 days. The Galaxy S III made headlines last week when an XDA forum member discovered that a security hole in its Exynos-4 processor was vulnerable to app-based malware attacks. Samsung has since said it will patch the hole as soon as possible.

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Insight: Security fears dogged Canada debate on China energy bid

OTTAWA (Reuters) - In September, two months after China's state-owned CNOOC Ltd made an unexpected $15.1 billion bid for Canadian energy company Nexen Inc, Canada's spy agency told ministers that takeovers by Chinese companies may threaten national security.
The rare warning from the Canadian Security Intelligence Service (CSIS), which was disclosed to Reuters by intelligence sources, did not stop the takeover. That was approved by Canadian authorities earlier this month.
But the intervention and an influential U.S. lawmaker's warning in October that Canadian companies should be careful about doing business with Chinese telecom equipment companies Huawei Technologies Co and ZTE Corp made the approval process for the deal more difficult than initially expected.
"CSIS did not like the Nexen bid and thought it was a bad idea for Chinese firms to be investing in the oil sands. It all played into their greater fears about firms like Huawei," said one person familiar with the agency's concerns. "They do not want to wake up one day and realize a crucial sector of the economy is under the control of foreign interests."
And after listening to the spy service, which usually keeps a low profile, Canada drew up surprisingly tough foreign investment rules that were unveiled when approving the Nexen deal, China's biggest-ever successful foreign takeover. In a clampdown on companies it deems influenced by foreign governments, Canada will block similar purchases in the future.
CSIS has been silent about what it said to Ottawa on the Nexen transaction, and it declined to comment for this story. It didn't specifically recommend the CNOOC deal be blocked, but rather warned more generally about such deals with Chinese entities, the person said.
In reality, the government was unlikely to want to block the CNOOC bid, given a high-profile push by Prime Minister Stephen Harper earlier in the year to boost ties with China, and given that a lot of Nexen's assets are outside Canada, and it has underperformed other energy companies.
SPECIFIC WORRIES
By pushing back aggressively, CSIS ensured that it got foreign investment policy tightened significantly to deter similar such takeovers by companies under the sway of foreign governments.
"I think people at CSIS and elsewhere are going 'Good. That was a very good response by the government'," said Ray Boisvert, a former CSIS assistant director of intelligence, who retired this year after almost three decades at the agency.
"It did reflect some of those deep strategic concerns that practitioners have had about this kind of investment."
Specific worries include theft of Canadian intellectual property, espionage, computer hacking and foreign companies gaining too much influence over crucial sectors of the economy, said the person familiar with the agency's views.
The government could, in theory, nationalize assets if it thought foreign control was problematic. But the pro-business Conservatives would likely find it politically unpalatable to take such a step.
"To be blunt, Canadians have not spent years reducing the ownership of sectors of the economy by our own governments, only to see them bought and controlled by foreign governments instead," Harper said as he announced the new investment rules.
In October, the U.S. House of Representatives' Intelligence Committee urged U.S. firms to stop doing business with Huawei and another Chinese telecom equipment company ZTE on the grounds that Beijing could use products made by the two companies to spy.
The House Intelligence Committee's chairman, Rep. Mike Rogers, a Michigan Republican, urged Canada to take a similar stance, and two days later, the Canadian government indicated it would not let Huawei help build a secure government communications network because of possible security risks.
"The Huawei business caused a lot of political complications for the CNOOC bid," another person familiar with the CNOOC deal said of the U.S. committee's report.
Both Huawei and ZTE have repeatedly denied the allegations in the report, and China's foreign ministry dismissed as "baseless" the idea that security concerns could impede commercial ties.
"We hope that the relevant party can objectively and justly treat Chinese companies' overseas investment and cooperation plans, and stop actions which harm Chinese companies' image and do more to benefit the promotion of bilateral trade and business cooperation," said ministry spokeswoman Hua Chunying.
CLANDESTINE SUPPORT
In its annual report, released in September, CSIS noted risks that included espionage and illegal technology transfers, and said some foreign state-owned enterprises had "pursued opaque agendas or received clandestine intelligence support for their pursuits" in Canada.
The agency did not give details, but added: "When foreign companies with ties to foreign intelligence agencies or hostile governments seek to acquire control over strategic sectors of the Canadian economy, it can represent a threat to Canadian security interests."
CSIS, hit by controversy in 2010 after its head suggested China had too much influence over some Canadian provincial politicians, did not mention any country or firm in its report.
It is unclear how much, if any, influence the United States had on the Canadian authorities' foreign investment policy.
Fen Hampson, head of the global security program at the Centre for International Governance Innovation in Waterloo, Ontario, said he had learned that a U.S. official visited Ottawa in the last few months to discuss mutual concerns about foreign state-owned enterprises.
U.S. Ambassador David Jacobson told Reuters he was not aware of such a meeting, but he noted that officials from the two countries met constantly. "I would be surprised if almost any issue you could think of has not come up in one or more of those conversations," he said. "The United States has not sought to influence Canada's decision with respect to that (CNOOC's bid)... We respect that decision."
The Canadian government did not respond to a request for a comment.
Chinese companies have bought up smaller Canadian energy firms before, but the July 23 bid for Nexen was their first attempt to buy one of the larger players.
Nexen has assets in Canada, the North Sea, Nigeria and the Gulf of Mexico. Technology that Nexen and its partners use for deep sea drilling could interest CNOOC. [ID:nL4N09N3R5]
Asked about the CSIS concerns, a spokeswoman for Industry Minister Christian Paradis replied: "The government has the authority to take any measures it considers necessary to protect national security."
Yet two people close to the deal noted that the Canadian government did not exercise its option to do a separate review of the potential security risks of the CNOOC-Nexen bid, again signaling its concerns were tied to overall Chinese investment rather than to this particular deal.
Under the new rules, which Paradis is responsible for enforcing, foreign state-owned enterprises can no longer buy controlling stakes in assets in the oil sands, the biggest reserve of crude oil outside Saudi Arabia and Venezuela.
Such enterprises can buy minority stakes in the oil sands, or majority stakes in companies outside the oil sands. Companies deemed to have strong government links will be treated with particular caution wherever they propose to invest.
"When it comes to our security and intelligence services, they would rather pull up the drawbridge than let it down," said Hampson, co-author of a report on trade ties between Canada and emerging nations that he discussed with Harper in June.

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Huawei shows off 6.1-inch Android phablet ahead of CES [video]

It looks like things are going to get worse before they start to get better. Further blurring the line between a smartphone that is too big to be used comfortably and a tablet the is too small to be used efficiently, Huawei has plans to unveil a new smartphone-tablet hybrid device at the Consumer Electronics Show in early January. The Android “phablet” was recently shown off by a Huawei executive outside of a Huawei store in Guangzhou, China, and Engadget lists among the device’s key specs a 6.1-inch 1080p display with a pixel density of 316 ppi, a 1.8GHz quad-core processor, a 4,000 mAh battery and a case that measure just 9.9 millimeters thick. A video of the device follows below.

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Iran says defeats cyber attack on industrial sites

DUBAI (Reuters) - An Internet virus attacked computers at industrial sites in southern Iran, in an apparent extension of a covert cyber war that initially targeted the country's nuclear facilities, an Iranian official said.
Iran, the world's No. 5 oil exporter, has tightened online security since its uranium enrichment centrifuges were hit in 2010 by the Stuxnet computer worm, which Tehran believes was planted by arch-adversaries Israel or the United States.
The unit tasked with fighting cyber attacks, the Passive Defence Organisation, said a virus had infected several sites in Hormozgan province in recent months but was neutralised.
"Enemies are constantly attacking Iran's industrial units through Internet networks in order to create disruptions," Ali Akbar Akhavan, head of the Hormozgan branch of the organisation, was quoted as saying by the Iranian Students' News Agency on Tuesday.
"This virus has even penetrated some manufacturing industries in Hormozgan province, but with timely measures and the cooperation of skilled hackers in the province, the progress of this virus was halted," Akhavan said.
"As an example, the Bandar Abbas Tavanir Co., a producer of electricity in the province and even adjacent provinces, has been the target of Internet attacks in recent months," he said.
Bandar Abbas is the capital of Hormozgan province on Iran's southern coast and home to an oil refinery and container port.
Israeli officials have threatened military action against Iranian nuclear facilities if Western sanctions on Tehran's banking and oil sectors do not persuade the Islamic Republic to shelve its disputed atomic program.
Western powers suspect Iran is trying to develop the means to produce nuclear weapons. Tehran says it is enriching uranium only for civilian energy.
Iranian authorities said in April that a computer virus was detected inside the control systems of Kharg Island - which handles the vast majority of Iran's crude oil exports - but the terminal had remained operational.
Cyber attackers also slowed Iran's Internet and attacked its offshore oil and gas platforms this year, Iranian officials have said.

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Iran media report new cyberattack by Stuxnet worm

TEHRAN, Iran (AP) — An Iranian semi-official news agency says there has been another cyberattack by the sophisticated computer worm Stuxnet, this time on the industries in the country's south.
Tuesday's report by ISNA quotes provincial civil defense chief Ali Akbar Akhavan as saying the virus targeted a power plant and some other industries in Hormozgan province in recent months.
Akhavan says Iranian computer experts were able to "successfully stop" the worm.
Iran has repeatedly claimed defusing cyber worms and malware, including Stuxnet and Flame viruses that targeted the vital oil sector, which provides 80 percent of the country's foreign revenue.
Tehran has said both worms are part of a secret U.S.-Israeli program that seeks to destabilize Iran's nuclear program.
The West suspects Iran is pursuing a nuclear weapons program, a charge Tehran denies.

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