In April 2010, David Kernell faced trial for “hacking” into then-Alaskan Governor Sarah Palin’s personal email account.

In November 12, 2010, David Kernell was indicted (i.e., a grand jury believed there was sufficient evidence to place him on trial on federal charges). Thereafter, a jury convicted him of two charges. First, computer fraud. Second, obstruction of justice. David Kernell’s defense was that his conduct was a prank. However, the jury was not pursuaded and he was sentenced to one year and one day in federal prison with a recommendation to spend his time in a halfway house.

This case is illustrative of the types of crimes an email hacker may face including: (1) Wire Fraud; (2) Computer Fraud; (3) Identity Theft; and (4) Obstruction of Justice.

A rise in attacks by hackers in 2011 is showing limits of an older generation of security software from Symantec Corp. (www.symantec.com) and McAfee Inc. (www.mcafee.com) and is placing pressure on these high-tech companies to upgrade products.

These and similar companies are seeking to keep up with cloud computing and the growth of workers plugging mobile devices into networks. According to Johannes Ullrich, a researcher at the SANS Technology Institute (www.sans.edu), none of the recent attacks tied to hacker groups such as Anonymous and Lulz Security could have been repelled by traditional antivirus programs or firewall software.

George Kurtz, who is the current chief technology officer at McAfee, now part of Intel Corp. (www.intel.com), expressed his concern by comparing the current predicament to a “security Armageddon” which is also of great concern for end users and customers.

Mall owners are harnessing digital technology to stem an erosion in their tenant base by online retailing and to promote shopper attendance to their centers.

Hammerson which is a leading European real estate company in London, United Kingdom (http://www.hammerson.com) plans to use a system which tracks shoppers to its malls by using signals from their mobile phones. Australia’s Westfield Group, Ltd. (http://www.westfield.com) plans to set up a virtual mall. Also, the Simon Property Group, Inc. (SPG) of Indianapolis (http://www.simon.com) and Paris-based Unibail-Rodamco SE (UL), are seeking to encourage consumers to add new smartphone applications.

On July 20, 2011, according to the leaders of the Senate Armed Services Committee, the Defense Department has failed to deliver to Congress a report on cyber warfare policies which may clarify the legal authorities and rules of engagement to be used in the event of a cyber attack.

Senators Carl Levin, a Michigan Democrat, and John McCain, an Arizona Republican, in a letter to Defense Secretary Leon Panetta wrote as follows:

“The continued failure to address and define the policies and legal authorities necessary for the Pentagon to operate in the cyberspace domain remains a significant gap in our national security that must be addressed.”

Google, Inc., which is currently the world’s largest Internet search company, lost its bid to seal legal documents in a patent-infringement lawsuit filed sometime in 2010 by Oracle, Corp. (ORCL). Google’s attempt to seek protection of portions of a transcript related to expert witnesses under the attorney-client privilege was futile.

The United States District Court stated that:

The document is “an incomplete draft of an e-mail message” and “never was sent to anyone.” Thus, the document is not a communication of any type, much less a communication protected by the attorney-client privilege.”

Apple, Inc. (AAPL)’s patent complaint which seeks to block imports of Samsung Electronics Co.’s Galaxy S mobile phone and Galaxy Tab computer will be reviewed by the International Trade Commission (ITC). See also http://www.usitc.gov
The ITC, which is a quasi-judicial agency in Washington, D.C., arbitrates such trade disputes and announced on August 1, 2011 that it has instituted an investigation. The commission, which may take between 15-18 months to complete the review, has the authority to block imports of products which infringe upon United States patents.

See more on www.bloomberg.com

According to the FBI, fourteen individuals were arrested on July 19, 2011 based on charges related to their alleged involvement in a cyber attack on PayPal’s website (www.paypal.com) as part of an action claimed by the group Anonymous. In addition, two more defendants were arrested on other cyber-related charges.

Read more on http://www.fbi.gov/news/news_blog

The FBI is in the beginning stages of its probe of News Corp. (NasdaqGS: NWSA) as investigators evaluate whether United States charges can be brought over claims employees hacked into a rival’s website and sought access to phone records of victims of the 9/11 attacks, a person who is familiar with the facts recently mentioned.

The Federal Bureau of Investigation plans to permit the Scotland Yard take the lead on a parallel investigation already under way in Britain. The FBI is not planning to mount an aggressive investigation into allegations that News Corp.’s payments to U.K. police officers a decade ago violated a U.S. overseas bribery law, said the officials, who prefer not be identified since they are not permitted to discuss the Justice Department’s investigation.

The Securities and Exchange Commission stated that publicly-traded companies should disclose the threat and potential impact of cyber attacks that pose a risk to their investors.

The commission made its comments in a letter to Senator Jay Rockefeller, chairman of the Senate Commerce Committee, that was released on June 8, 2011. Last month, Senator Rockefeller and four other Democratic senators wrote a letter to SEC Chairman Mary Schapiro, urging the agency to issue guidance on disclosure of data- security risk, including “material network breaches,” attacks that may result in the theft of intellectual property or trade secrets.

The threats from cyberspace grow more powerful and pernicious. Companies like Sony Corporation, Google Inc., and Lockheed Martin have admitted startling security lapses. The International Monetary Fund, last month suffered a breach leading to the loss of highly sensitive data. The United States Congress and executive branch agencies face approximately 2 billion attacks in cyberspace per month in 2010.