Swartz' death fuels debate over computer crime

NEW YORK (AP) — Internet freedom activist Aaron Swartz, who was found dead in his Brooklyn apartment Friday, struggled for years against a legal system that he felt had not caught up to the information age. Federal prosecutors had tried unsuccessfully to mount a case against him for publishing reams of court documents that normally cost a fee to download. He helped lead the campaign to defeat a law that would have made it easier to shut down websites accused of violating copyright protections.
In the end, Swartz's family said, that same system helped cause his death by branding as a felon a talented young activist who was more interested in spreading academic information than in the fraud federal prosecutors had charged him with.
The death by suicide of Swartz, 26, was "the product of a criminal justice system rife with intimidation and prosecutorial overreach," his family said in a statement Saturday.
Swartz was only the latest face of a decades-old movement in the computer science world to push more information into the public domain. His case highlights society's uncertain, evolving view of how to treat people who break into computer systems and share data not to enrich themselves, but to make it available to others.
"There's a battle going on right now, a battle to define everything that happens on the Internet in terms of traditional things that the law understands," Swartz said in a 2012 speech about his role in defeating the Internet copyright law known as SOPA. Under the law, he said, "new technology, instead of bringing us greater freedom, would have snuffed out fundamental rights we'd always taken for granted."
Swartz faced years in prison after federal prosecutors alleged that he illegally gained access to millions of academic articles through the academic database JSTOR. He allegedly hid a computer in a computer utility closet at the Massachusetts Institute of Technology and downloaded the articles before being caught by campus and local police in 2011.
"The government used the same laws intended to go after digital bank robbers to go after this 26-year-old genius," said Chris Soghoian, a technologist and policy analyst with the American Civil Liberties Union's speech, privacy and technology project.
Existing laws don't recognize the distinction between two types of computer crimes, Soghoian said: Malicious crimes committed for profit, such as the large-scale theft of bank data or corporate secrets; and cases where hackers break into systems to prove their skillfulness or spread information that they think should be available to the public.
Swartz was an early advocate of freer access to data. He helped create Creative Commons, a system used by Wikipedia and others to encourage information sharing by helping people to set limits about how their work can be shared. He also helped create the website Reddit and RSS, the technology behind blogs, podcasts and other web-based subscription services.
That work put Swartz at the forefront of a vocal, influential community in the computer science field that believes advocates like him should be protected from the full force of laws used to prosecute thieves and gangsters, said Kelly Caine, a professor at Clemson University who studies people's attitudes toward technology and privacy.
"He was doing this not to hurt anybody, not for personal gain, but because he believed that information should be free and open, and he felt it would help a lot of people," she said.
Plenty of people and companies hold an opposing view: That data theft is as harmful as theft of physical property and should always carry the same punishment, said Theodore Claypoole, an attorney who has been involved with Internet and data issues for 25 years and often represent big companies
"There are commercial reasons, and military and governmental reasons" why prosecutors feel they need tools to go after hackers, Claypoole said. He said Swartz's case raises the question of, "Where is the line? What is too much protection for moneyed interests and the holders of intellectual property?"
Elliot Peters, Swartz's attorney, told The Associated Press on Sunday that the case "was horribly overblown" because JSTOR itself believed that Swartz had "the right" to download from the site. Swartz was not formally affiliated with MIT, but was a fellow at nearby Harvard University. MIT maintains an open campus and open computer network, Peters said. He said that made Swartz's accessing the network legal.
JSTOR's attorney, Mary Jo White — formerly the top federal prosecutor in Manhattan — had called the lead Boston prosecutor in the case and asked him to drop it, said Peters, also a former federal prosecutor in Manhattan who is now based in California.
Reached at home, the prosecutor, Stephen Heymann, referred all questions to the spokeswoman for the U.S. Attorney's office in Boston, Christina Dilorio-Sterling. She did not immediately respond to an email and phone message seeking comment.
Swartz's trial was set to begin in April, with an early hearing scheduled for later this month. He was charged with two sets of crimes: fraud, for downloading the articles illegally from JSTOR; and hacking into MIT's computer network without authorization, Peters said.
Peters said Swartz "obviously was not committing fraud" because "it was public research that should be freely available;" and that Swartz had the right to download from JSTOR, so he could not have gained unauthorized access.
As of Wednesday, the government took the position that any guilty plea by Swartz must include guilty pleas for all 13 charges and the possibility of jail time, Peters said. Otherwise the government would take the case to trial and seek a sentence of at least seven years.
JSTOR, one alleged victim, agreed with Peters that those terms were excessive, Peters said. JSTOR came over to Swartz's side after "he gave the stuff back to JSTOR, paid them to compensate for any inconveniences and apologized," Peters said.
MIT, the other party that Swartz allegedly wronged, was slower to react. The university eventually took a neutral stance on the prosecution, Peters said. But he said MIT got federal law enforcement authorities involved in the case early and began releasing information to them voluntarily, without being issued a subpoena that would have forced it to do so.
Swartz's father, Bob, is an intellectual property consultant to MIT's computer lab, Peters said. He said the elder Swartz was outraged by the university's handling of the matter, believing that it deviated from MIT's usual procedures.
In a statement emailed to the university community Sunday, MIT President L. Rafael Reif said he had appointed a professor to review the university's involvement in Swartz's case.
"Now is a time for everyone involved to reflect on their actions, and that includes all of us at MIT," Reif said in the letter.
Claypoole, the legal expert, said there will always be people like Swartz who believe in the free flow of information and are willing to "put their thumb in the eye of the powers that be."
"We've been fighting this battle for many years now and we're going to continue to fight it for a long time," he said.
For Swartz's family, the matter was clearer-cut, said Peters, his lawyer.
"Our consistent response was, this case should be resolved in a way that doesn't destroy Aaron's life and takes into account who he really is, and what he was doing."
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U.S. stake sale of GM to revive image

DETROIT (Reuters) - The sale of the U.S. Treasury's stake in General Motors and a possible credit rating upgrade of the U.S. automaker in 2013 will help distance the company from the stigma of its 2009 bankruptcy restructuring.
"We lose the stigma of 'Government Motors'," GM Treasurer James Davlin said on Sunday during a speech at a conference of automotive analysts. "People will be more focused on the things that they should, which is our underlying operations."
The U.S. Treasury outlined plans last month to sell its GM stake over the next 12 to 15 months. Last week, Chief Executive Dan Akerson said he expects GM to earn an investment-grade credit rating in 2013.
GM is already "trending toward investment grade," Davlin said. He pointed to GM's eleven-quarter streak of profits, its large financial cushion and its strong position in the world's two largest automotive markets, the United States and China.
"We want to ensure we have the liquidity to make it through the cyclicality of the industry," Davlin said, speaking to reporters and analysts a day before the Detroit auto show.
Until recently, uncertainty over when and how the U.S. Treasury would sell its 26-percent stake hurt GM's overall market value, Davlin said. But GM shares have risen nearly 20 percent since the U.S. government announced its exit strategy.
GM shares are ended at $30.36 per share on Friday.
Still GM has a number of challenges ahead, most prominently of which is Europe. GM is struggling to stem years of losses in the depressed and highly competitive European market where its core brands are Opel and UK-based Vauxhall.
It has made inroads in restructuring its European operations, including announcing plans to close its assembly plant in Bochum, Germany. But Akerson said he is not yet satisfied with GM's current position.
"That's probably my greatest concern -- how quickly can we turn that around," Davlin said, of Europe.
He also predicted that the U.S. dollar would rise against the Japanese yen and the euro this year. This would represent a "slight headwind" to GM, which must convert its earnings overseas into U.S. dollars. GM is also expecting a stable U.S. economy in 2013.
"We don't see a big rebound in the economy or a return to financial doldrums," Davlin said, of 2013.
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Swartz' death fuels debate over computer crime

NEW YORK (AP) — Internet freedom activist Aaron Swartz, who was found dead in his Brooklyn apartment Friday, struggled for years against a legal system that he felt had not caught up to the information age. Federal prosecutors had tried unsuccessfully to mount a case against him for publishing reams of court documents that normally cost a fee to download. He helped lead the campaign to defeat a law that would have made it easier to shut down websites accused of violating copyright protections.
In the end, Swartz's family said, that same system helped cause his death by branding as a felon a talented young activist who was more interested in spreading academic information than in the fraud federal prosecutors had charged him with.
The death by suicide of Swartz, 26, was "the product of a criminal justice system rife with intimidation and prosecutorial overreach," his family said in a statement Saturday.
Swartz was only the latest face of a decades-old movement in the computer science world to push more information into the public domain. His case highlights society's uncertain, evolving view of how to treat people who break into computer systems and share data not to enrich themselves, but to make it available to others.
"There's a battle going on right now, a battle to define everything that happens on the Internet in terms of traditional things that the law understands," Swartz said in a 2012 speech about his role in defeating the Internet copyright law known as SOPA. Under the law, he said, "new technology, instead of bringing us greater freedom, would have snuffed out fundamental rights we'd always taken for granted."
Swartz faced years in prison after federal prosecutors alleged that he illegally gained access to millions of academic articles through the academic database JSTOR. He allegedly hid a computer in a computer utility closet at the Massachusetts Institute of Technology and downloaded the articles before being caught by campus and local police in 2011.
"The government used the same laws intended to go after digital bank robbers to go after this 26-year-old genius," said Chris Soghoian, a technologist and policy analyst with the American Civil Liberties Union's speech, privacy and technology project.
Existing laws don't recognize the distinction between two types of computer crimes, Soghoian said: Malicious crimes committed for profit, such as the large-scale theft of bank data or corporate secrets; and cases where hackers break into systems to prove their skillfulness or spread information that they think should be available to the public.
Swartz was an early advocate of freer access to data. He helped create Creative Commons, a system used by Wikipedia and others to encourage information sharing by helping people to set limits about how their work can be shared. He also helped create the website Reddit and RSS, the technology behind blogs, podcasts and other web-based subscription services.
That work put Swartz at the forefront of a vocal, influential community in the computer science field that believes advocates like him should be protected from the full force of laws used to prosecute thieves and gangsters, said Kelly Caine, a professor at Clemson University who studies people's attitudes toward technology and privacy.
"He was doing this not to hurt anybody, not for personal gain, but because he believed that information should be free and open, and he felt it would help a lot of people," she said.
Plenty of people and companies hold an opposing view: That data theft is as harmful as theft of physical property and should always carry the same punishment, said Theodore Claypoole, an attorney who has been involved with Internet and data issues for 25 years and often represent big companies
"There are commercial reasons, and military and governmental reasons" why prosecutors feel they need tools to go after hackers, Claypoole said. He said Swartz's case raises the question of, "Where is the line? What is too much protection for moneyed interests and the holders of intellectual property?"
Elliot Peters, Swartz's attorney, told The Associated Press on Sunday that the case "was horribly overblown" because JSTOR itself believed that Swartz had "the right" to download from the site. Swartz was not formally affiliated with MIT, but was a fellow at nearby Harvard University. MIT maintains an open campus and open computer network, Peters said. He said that made Swartz's accessing the network legal.
JSTOR's attorney, Mary Jo White — formerly the top federal prosecutor in Manhattan — had called the lead Boston prosecutor in the case and asked him to drop it, said Peters, also a former federal prosecutor in Manhattan who is now based in California.
Reached at home, the prosecutor, Stephen Heymann, referred all questions to the spokeswoman for the U.S. Attorney's office in Boston, Christina Dilorio-Sterling. She did not immediately respond to an email and phone message seeking comment.
Swartz's trial was set to begin in April, with an early hearing scheduled for later this month. He was charged with two sets of crimes: fraud, for downloading the articles illegally from JSTOR; and hacking into MIT's computer network without authorization, Peters said.
Peters said Swartz "obviously was not committing fraud" because "it was public research that should be freely available;" and that Swartz had the right to download from JSTOR, so he could not have gained unauthorized access.
As of Wednesday, the government took the position that any guilty plea by Swartz must include guilty pleas for all 13 charges and the possibility of jail time, Peters said. Otherwise the government would take the case to trial and seek a sentence of at least seven years.
JSTOR, one alleged victim, agreed with Peters that those terms were excessive, Peters said. JSTOR came over to Swartz's side after "he gave the stuff back to JSTOR, paid them to compensate for any inconveniences and apologized," Peters said.
MIT, the other party that Swartz allegedly wronged, was slower to react. The university eventually took a neutral stance on the prosecution, Peters said. But he said MIT got federal law enforcement authorities involved in the case early and began releasing information to them voluntarily, without being issued a subpoena that would have forced it to do so.
Swartz's father, Bob, is an intellectual property consultant to MIT's computer lab, Peters said. He said the elder Swartz was outraged by the university's handling of the matter, believing that it deviated from MIT's usual procedures.
In a statement emailed to the university community Sunday, MIT President L. Rafael Reif said he had appointed a professor to review the university's involvement in Swartz's case.
"Now is a time for everyone involved to reflect on their actions, and that includes all of us at MIT," Reif said in the letter.
Claypoole, the legal expert, said there will always be people like Swartz who believe in the free flow of information and are willing to "put their thumb in the eye of the powers that be."
"We've been fighting this battle for many years now and we're going to continue to fight it for a long time," he said.
For Swartz's family, the matter was clearer-cut, said Peters, his lawyer.
"Our consistent response was, this case should be resolved in a way that doesn't destroy Aaron's life and takes into account who he really is, and what he was doing.
Read More..

Bruins on ice at BU as they wait for NHL season

BOSTON (AP) — Boston Bruins defenseman Dennis Seidenberg drove by the TD Garden on Tuesday morning on his way to Boston University, where a handful of his teammates have been skating to keep in shape while waiting for the NHL season to start.
"I got a really good feeling imagining going out on the ice and getting excited about being able to play again," he said. "I'm so excited to be here."
After spending much of the NHL lockout playing in his native Germany, Seidenberg flew back to Boston on Monday after hearing that NHL players and owners had reached agreement on a new collective bargaining agreement that would end the lockout after almost four months. The NHL players association must still vote to ratify the deal; both sides are hoping to officially open training camps later this week to prepare for a 48- or 50-game season that would start Jan. 19.
"Every day I was sitting on my computer, looking at the news, looking at the rumors," Seidenberg said. "I was hoping for something to happen."
Seidenberg joined about a dozen NHL players on the ice in a practice run by former BU star Mike Grier. Among the Bruins taking part on Tuesday in the two-hour workout were goaltender Tuukka Rask, defenseman Johnny Boychuk, and forwards Shawn Thornton and Brad Marchand.
Lucic said he opted not to sign with a foreign team, choosing instead to recover from the last two, long seasons.
Now, he said, he knows he has some catching up to do.
"It was rest that I feel I needed," he said. "I've built up a lot of nagging injuries that I've been trying to take care of. Hopefully, I'll feel better this season."
The Bruins, who won the Stanley Cup in 2011, lost in the first round to Washington last season.
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NHL owners, players move closer to votes

NEW YORK (AP) — All that is left of the NHL lockout are a pair of votes by owners and players.
If both sides approve the tentative deal reached over the weekend — as expected — training camps will be open by Sunday.
The league's board of governors will meet on Wednesday in New York, and the 30 club owners will vote on the agreement that was reached in the early morning hours of Sunday after a 16-hour negotiating session.
If a majority approves, the NHL will move one step closer toward the official end of the lockout that began Sept. 16.
The league and the players' association were still working on one more key piece of business on Tuesday night that must be settled before hockey is truly back.
"We are trying to finalize a summary document, and we are very close on that," NHL deputy commissioner Bill Daly told The Associated Press in an email. "That will be turned into a (memorandum of understanding) with more detailed language that won't be signed until this coming weekend."
The union was waiting for that initial document before it scheduled a vote for its more than 700 members. A majority of players also must approve the deal before the lockout can end.
If there are no snags, ratification could be finished by Saturday and training camps could open Sunday. A 48-game regular season would then be expected to begin on Jan. 19.
"(We) don't need a signed document to complete ratification process," Daly wrote, "but we do need a signed agreement to open camps. The goal is to get that done by Saturday so that we can open camps on Sunday."
The NHL has yet to release a new schedule. The regular season was supposed to begin on Oct. 11.
The deal was reached Sunday, the 113th day of the lockout, and seemingly saved a season that was delayed for three months and cut nearly in half. It took a marathon final bargaining session in a New York hotel for the agreement to finally be completed at about 5 a.m.
The lockout led to the cancellation of at least 480 games, depending on the length of the upcoming season. That brings the total of lost regular-season games to a minimum of 2,178 during three lockouts under Commissioner Gary Bettman.
The damage is significant. Perhaps $1 billion in revenue could be lost this season, given about 40 percent of the regular-season schedule won't be played. Players also will lose a large part of their salaries, not to mention time from their careers.
Hockey's first labor dispute was an 11-day strike in 1992 that led to the postponement of 30 games. Bettman became the commissioner in February 1993. He presided over a 103-day lockout in 1994-95 that ended with a deal on Jan. 11, then a 301-day lockout in 2004-05 that made the NHL the only major North American professional sports league to lose an entire season. The NHL obtained a salary cap in the agreement that followed that dispute and now wanted more gains.
The NHL's revenue of $3.3 billion last season lagged well behind the NFL ($9 billion), Major League Baseball ($7.5 billion) and the NBA ($5 billion), and the deal will lower the hockey players' percentage from 57 to 50 — owners originally had proposed 46 percent.
This was the third lockout among the major U.S. sports in a period of just more than a year. A four-month NFL lockout ended in July 2011 with the loss of only one exhibition game, and an NBA lockout caused each team's schedule to be cut from 82 games to 66 last season.
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Maple Leafs fire GM Brian Burke as season nears

TORONTO (AP) — Brian Burke's brash and outspoken style wasn't a good fit for the new corporate owners of the Toronto Maple Leafs.
The Maple Leafs fired their general manager Wednesday with the NHL season set to resume this month following a tentative settlement ending the lockout.
Maple Leaf Sports & Entertainment President Tom Anselmi said at a news conference that longtime Burke assistant David Nonis will fill the job. Burke will stay as a senior adviser.
Anselmi acknowledged that four years without a playoff berth factored into the decision. But ultimately, he added, ownership wanted a different look at the top.
Canada's largest telecommunication companies, Rogers Communications and BCE Inc., took control of the Toronto Maple Leafs and NBA's Toronto Raptors after the 1.3 billion deal closed in August.
"Brian had a style and we knew what we were getting when he was hired a number of years ago," Anselmi said. "This is really about a change in leadership voice and leadership direction."
Anselmi fired Burke on Wednesday morning, the announcement startling many. Nonis was among those who didn't see the firing coming.
"Brian, when we were talking this morning, said 'I get it, ownership is changing,'" Anselmi said.
The new board of directors let Burke go before the Maple Leafs might have had a chance to make the playoffs in a lockout-shortened season. Toronto has not made the playoffs since Burke was hired in 2008. The club last played in the postseason in 2004 and hasn't won a Stanley Cup since 1967.
Anselmi stressed that the personnel Burke put in place will make for a seamless transition. Nonis, without Burke's outsized personality, said there won't be a great player turnover.
Before joining Toronto, Burke spent more than three seasons with the Anaheim Ducks, leading them to a Stanley Cup title in 2007. Nonis worked with Burke in Anaheim and when Burke was general manager of the Vancouver Canucks. Nonis also replaced Burke in Vancouver, compiling a record 130-91-25 as general manager.
Burke's most debated move was a deal with Boston in 2009 when he acquired forward Phil Kessel for two first-round draft picks and a second-round selection. The Bruins used the picks to select star forward Tyler Seguin, Dougie Hamilton and Jared Knight.
Toronto forward Joffrey Lupul called the timing of the dismissal "weird."
"We haven't made the playoffs in however many years so the blame is falling right now on the GM," he said. "He's the guy the brought a lot of us in and we didn't get the job done."
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Turkish agency blamed by U.S. companies for intercepted Web pages

SAN FRANCISCO (Reuters) - An agency of the Turkish government deployed a deceptive version of some Google Inc web pages, possibly to monitor activity by its employees, major Internet companies said on Thursday.
The reports are the latest in a series of incidents in which hackers or governments have taken advantage of the loose rules surrounding the standard security for financial and other sensitive sites, those with Web addresses starting with Https.
In the most recent case, an Ankara public transit agency known as EGO, obtained the capacity to validate such Web pages from a Turkish Internet authority called TurkTrust, which is among the hundreds of entities treated as reliable by all major Internet browsers, Microsoft Corp said in a blog post.
Last month, EGO issued an improper certificate that told some visitors to Google they had reached it securely when they had not, Google said. The ruse was detected because unlike other browsers, Google's Chrome warns users and the company if an unexpected certificate is authenticating a Google site.
Google asked TurkTrust, which said it had "mistakenly" granted the right to authenticate any site to two organizations in August 2011. Google also warned browser makers including Microsoft and Mozilla, makers of Internet Explorer and Firefox, and all three will now block sites that were authenticated by EGO and another TurkTrust customer.
Though only Google was demonstrably faked, giving EGO access to Gmail and search activity, many other pages could have been faked without any of the real companies knowing about it. Spokesmen for the Turkish Embassy in Washington and the consulates in New York and Los Angeles could not be reached for comment.
Few details were provided by the technology companies, but one person involved with the issue said that it appeared that the fake Google.com had been displayed on one internal network.
"The logical theory is that the transportation agency was using it to spy on its own employees," said Chris Soghoian, a former Federal Trade Commission technology expert now working for the American Civil Liberties Union.
Validation authority alone isn't enough to intercept traffic, the most likely goal of the project. The authenticator would also have to come in contact with the Web user.
A similar situation developed in 2011, when Dutch certificate authority DigiNotar said it had been hacked and that certificates had been stolen. Google later warned that a fake certificate for its site was showing up in Iran, and it warned Gmail users in that country to change their passwords.
Soghoian and other technologists have complained for years that the system behind Https sites is broken, but the industry has been slow to change.
Among other issues, the certificate authorities can resell the right to authenticate and don't have to disclose who their customers are.
"The entire Web relies on every single certificate authority being honest and secure," Soghoian said. "It's a ticking time bomb."
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Huawei launches the Ascend P1 in the U.S. for $450 through Amazon

Despite its attempts to attract new customers with high-end phones, Huawei (002502) remains relatively unknown to U.S. consumers. The company is looking to change that and on Thursday announced the availability of the Ascend P1 smartphone. The Android-powered device is equipped with a 4.3-inch Super AMOLED display, a 1.5GHz dual-core processor, 1GB of RAM and an 8-megapixel rear camera. The handset is also one of the thinnest smartphones on the market, measuring in at 7.6 millimeters. BGR reviewed the Ascend P1 earlier this year and found it to be a decent smartphone. Huawei is offering the device carrier-unlocked through Amazon (AMZN) for $449.99. Read more for Huawei’s press release.
[More from BGR: Samsung confirms plan to begin inching away from Android]
Huawei’s Ascend P1 Launches in U.S.
[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]
Super thin Huawei Ascend P1 comes with 1.5 GHz dual-core processor and Android 4.0 ICS OS
PLANO, Texas, Jan. 3, 2013 /PRNewswire/ — Huawei, a leading global information and communications technology (ICT) solutions provider, today announced an unlocked version of the Huawei Ascend P1 is available to U.S. consumers through Amazon.com. The Huawei Ascend P1 comes equipped with 1.5 GHz dual-core processor and is one of the fastest models in class, capable of handling 3D games effectively.
“The Ascend P1 is perfect for consumers looking to get the most out of their device,” said Michael Chuang, Executive Vice President of Huawei Device USA. “Whether it’s for playing games, streaming music and videos, or sharing multimedia in the home or workplace, the Ascend P1 offers unparalleled performance and a truly unique mobile experience.”
The Ascend P1 offers users a movie theatre-quality cinematic experience with its super AMOLED, 4.3 inch screen and 5.1 Dolby Surround Sound System. In addition, at only 7.69 mm thick, the Huawei Ascend P1 is one of the thinnest smartphones on the market. The 64.8 mm frame allows the Ascend P1 to sit comfortably in the user’s palm, giving them the ability to navigate all the phone’s features with a single hand.
The Huawei Ascend P1 is available online at Amazon.com for $449.99.
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Relive Every Great Moment of 2012 in Just 4 Minutes

The ball has dropped which means it's time to begin alphabetizing your New Year's resolutions. But before welcoming in 2013 and throwing out last year's memories, take one last chance to relive all the glorious, splendid, heartbreaking, tragic, viral, sweet, crazy and fantastic moments of the past 12 months.
[More from Mashable: Google Wants You to Add to Its Global New Year’s Resolution Map]
From Honey Boo Boo to the birth of Blue Ivy, SOPA to NASA, iPhone 5 releases to GIF domination, Gabby Douglas' golden moments to Chick-Fil-A PR nightmare, cannibals to a Cruise-Holmes split, to a string of mass shootings that will make us remember this year's incredible heroes and victims -- here's to you, 2012.
SEE ALSO: Emotional Viral Video Looks Back at 'What Brought Us Together' in 2012
[More from Mashable: 8 Tech Resolutions for the New Year]
And best of luck 2013, you've got no Mayan apocalypse, Olympic games or U.S. presidential election on the books -- just hope K-Stew cheats on R-Patz again so we'll all have something to eulogize in 2014.
BONUS: 16 Things You Forgot Happened in 2012
1. GoDaddy Supported SOPA and Faced the Consequences
Technically this debacle took place in the last week of 2011, but the backlash lasted well into 2012. GoDaddy, the popular domain registrar and web hosting company, showed early support for the Stop Online Piracy Act (SOPA), a hotly contested bill regarding copyright violations that was introduced by U.S. Representative Lamar S. Smith. Many Internet users believed SOPA would lead to extreme censorship of the web and were shocked to hear that GoDaddy supported it. As a result, hundreds of high-profile sites joined a boycott and mass-transfer movement sparked by Ben Huh, founder of the Cheezburger Network, moving their domains away from GoDaddy. The company eventually withdrew its support for SOPA, but not before it lost many customers. In September 2012, GoDaddy faced another PR nightmare when its DNS servers went down due to a distributed denial of service attack, and with the servers went many customers' websites for a long period of time. The company apparently didn't have a backup plan, furthering soiling its reputation. Image courtesy of Flickr, dsleeter_2000.
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Iran arrests 5 musicians over dissident contacts

TEHRAN, Iran (AP) — Iranian police have arrested five members of an underground band suspected of producing music for Farsi-speaking, dissident satellite channels based in the U.S.
The semiofficial Fars news agency quotes senior police official Col. Sadeq Rezadoost as saying the band was producing songs for Los Angeles-based Iranian singers and providing videos to Farsi-speaking, dissident TV channels.
The Wednesday report says the five have been handed over to the judiciary for trial. It did not name the band.
Women-only groups are banned in Iran, and Western music is rejected as "decadent." Many Iranians turn to underground bands to get bootleg videos of foreign-based singers.
Contact with foreign-based dissident media outfits is also banned in Iran.
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Iranians freed in major prisoner swap in Syria

DAMASCUS, Syria (AP) — Rebels freed 48 Iranians on Wednesday in exchange for more than 2,000 prisoners, including women and children, held by Syrian authorities — a deal struck after rare negotiations involving regional powers Turkey, Qatar and Iran.
It was the first major prisoner swap since the uprising began against President Bashar Assad nearly 22 months ago.
Iran is one of Assad's main allies, and the Iranians, who were seized outside Damascus in August, were a major bargaining chip for factions trying to bring down his regime in the civil war that has killed more than 60,000 people.
The exchange also highlighted the plight of tens of thousands of detainees languishing in Syrian prisons, many of whom were picked up at street protests and have not been heard of since.
The group of 48 Iranians arrived Wednesday at the Sheraton hotel in several vans escorted by Syrian security forces. Looking disheveled but healthy, they were greeted by Iran's ambassador in Damascus, Mohammad Riza Shibani, and several Iranian clerics who distributed a white flower to each of the men, some of whom broke down in tears.
"The conditions placed (by the captives) were difficult, but with much work ... we succeeded in securing this release," Shibani told reporters. "I hope such tragedies will not be repeated."
He said their release was a result of elaborate and "tough" negotiations, but did not elaborate. The Syrian government, which rarely gives details on security-related matters, had no official comment and it was not clear what prompted the exchange.
Rebels claimed the captives were linked to Iran's powerful Revolutionary Guard, but Tehran has denied that, saying the men were pilgrims visiting Shiite religious sites in Syria.
But U.S. State Department spokeswoman Victoria Nuland described most of the Iranians as "members of the Iranian Revolutionary Guard," calling it "just another example of how Iran continues to provide guidance, expertise, personnel, technical capabilities to the Syrian regime."
The rebels had threatened to kill the captives unless the Assad regime halted military operations against the opposition.
It was not clear what prompted the government to negotiate the exchange, but opposition leaders said the Assad regime felt obligated to please its Iranian backers.
"The Iranian hostages had become an embarrassment to the regime," said Bassam al-Dada, a Turkey-based coordinator with the rebel Free Syrian Army. "Iran was pushing for a solution and Assad could not afford to cross his Iranian master," he said.
Kamer Kasim, an analyst at the Ankara-based International Strategic Research Organization, linked Assad's agreement to the swap to Damascus' desire not to be seen as the intransigent party, after it rejected U.N. envoy Lakhdar Brahimi's peace deal. He said Iran has long been pressing for the release, and Syria was eager to maintain good relations with Tehran.
"The Iranian government supports the Syrian regime of Bashar Assad, and its possible refusal of the exchange deal might have harmed this relationship," Kasim said.
A spokesman for a Turkish Islamic aid group that helped coordinate the release said the regime had agreed to release 2,130 people in exchange for the Iranians.
As of Wednesday evening, it was not clear how many of those had been freed.
Turkish Prime Minister Recep Tayyip Erdogan praised the swap, but expressed regret that many remain locked up by the Syrian government.
"Let's hope that they may be released as well and let's hope that the process is beneficial for all," Erdogan said during a visit to Niger.
He said the deal was brokered with the help of a Turkish and a Qatari aid organization, and added that Turkey had been talking with the rebels during the negotiations. Four Turks and "a number of Palestinians" were among the prisoners released by the Syrian government, he said.
Speaking in Istanbul, Umit Sonmez of the Foundation for Human Rights and Freedoms and Humanitarian Relief which coordinated the negotiations, said the 48 Iranians were handed over to aid workers soon after the Syrian regime let a group go.
Sonmez said the Syrian prisoners included "ordinary people or friends or relatives of the rebels."
"This is the largest prisoner exchange to date," Sonmez said. "We are pleased that people from all sides who were held and victimized have finally been freed."
"Turkey and Qatar, who have influence over the rebels, spoke with the rebels. They also spoke with Iran. Iran for its part spoke with Syria."
Turkey's state-run agency Anadolu Agency also said a group of people, including women and children, held in the Syrian Interior Ministry building in Damascus had been released and were escorted onto buses. The report could not be confirmed because of government restrictions on journalists in Syria.
Bulent Yildirim, the head of the Turkish aid organization, told Anadolu in Damascus that 1,000 people have been released so far, including 74 women and a number of children between the ages of 13 and 15.
Some photographs released from the aid organization showed a group of women lined up against a wall, apparently waiting to be released. Most seemed to be hiding their faces from the camera. Another showed a group of men, their heads shaven, standing in a room.
Regime forces and rebels have exchanged prisoners before, most arranged by mediators in the suburbs of Damascus and in northern Syria, but the numbers ranged from two to 20 prisoners. The Syrian Red Crescent also has arranged exchanges of bodies from both sides.
Nadim Houry, deputy Middle East director for the New York-based Human Rights Watch, said "tens of thousands" of Syrian activists, opposition supporters and members of their families remain jailed in Syria since the uprising began in March 2011.
Many of those in government custody have had no contact with the outside world for months and no access to a lawyer. Most are being held by the state security services around the country, Houry said.
"For every person released, thousands remain detained and thousands more cannot be accounted for," he Told the Associated Press.
The rebels are also known to be holding a group of nine Lebanese Shiites, at least two Iranian engineers and scores of pro-regime supporters and captured soldiers.
Russia's Foreign Ministry said senior Russian and U.S. diplomats will discuss the Syrian crisis in talks later this week with Brahimi.
In a speech Sunday, a defiant Assad ignored international demands to step down and said he is ready to talk — but only with those "who have not betrayed Syria."
He outlined his vision for a peace initiative that would keep him in power to oversee a national reconciliation conference, elections and a new government. But he also vowed to continue to fight terrorists — a term the government uses for the rebels.
The opposition rejected his offer, which also drew harsh international criticism.
Russian officials said Assad's proposals should be taken into consideration.
Syria's Information Minister Omran al-Zoubi said countries such as the United States and its Western allies have dismissed the president's initiative "before even having the time to translate it."
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Fraser reported from Ankara, Turkey. Associated Press writers Ali Akbar Dareini in Tehran, Matthew Lee in Washington and Barbara Surk and Zeina Karam in Beirut contributed to this story.
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Hamas flagship university grooms Hebrew teachers


 
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In this Monday, Jan. 7, 2013 photo, …
Enlarge Photo
In this Monday, Jan. 7, 2013 photo, …
GAZA CITY, Gaza Strip (AP) — Hamas' flagship university in Gaza has a new diploma on offer — Hebrew, the official language of its arch-foe Israel.
Gaza's Hamas rulers say they want to produce qualified teachers as the government gradually introduces Hebrew studies in its high schools. The aim is simple: It wants Palestinians in Gaza to learn their enemy's language.
"As Jews are occupying our lands, we have to understand their language," said Education Ministry official Somayia Nakhala.
There are 19 students enrolled in the first one-year Hebrew diploma course offered at the Islamic University in Gaza City, a stronghold of Hamas, the Islamic militant group that has ruled Gaza since 2007. Hamas does not recognize Israel, is officially pledged to its destruction and has killed hundreds of Israelis in suicide bombings, rocket strikes and other attacks.
Officials hope graduates will become Hebrew teachers. Hamas has already begun offering Hebrew studies as an elective to ninth graders in 16 schools, and plans to expand the program to dozens of other schools in the coming months.
Israel occupied Gaza for 38 years after capturing it, along with the West Bank and east Jerusalem, in the 1967 Mideast war. Since withdrawing its settlers and troops from Gaza in 2005, Israel has fought two wars against Hamas and restricts access to the territory by air, land and sea.
The coastal strip still relies on Israeli-run crossings for most consumer goods, and Gaza patients must receive special permits to reach medical care in Israel or the West Bank.
Students need to "understand what's going on, like wars, medical treatment in Israel, in the West Bank," said the Education Ministry's Nakhala.
There is no shortage of Hebrew speakers in Gaza, at least among older residents. For years, Gaza Palestinians entered Israel to work in restaurants, construction and other menial jobs. Thousands of others learned the language while held in Israeli prisons. In quieter times, many Israelis would come to Gaza to fix their cars, bargain hunt or eat at local restaurants.
But after the outbreak of the first Palestinian uprising in the late 1980s, Israelis stopped coming. After a second uprising erupted in 2000, Israel sharply restricted the entry of Gazans. Since Israel's pullout and the subsequent Hamas takeover, direct contact between the sides is virtually nonexistent.
This tortured relationship with Israel was on display during Hebrew class this week at the Islamic University.
Two women, their faces veiled in line with conservative Muslim beliefs, practiced Hebrew in a doctor-patient dialogue. When the conversation turned to the chilly weather, another student described being cold while held in an Israeli prison because he wasn't given a blanket.
"Saval maspik," he said in broken Hebrew. "Suffered enough."
Discussing medical terms, lecturer Kamal Hamdan and a student created a dialogue between Palestinian paramedics and Israeli officials, asking how many people were wounded in an Israeli military incursion into Gaza.
Hamdan noted the similarities between Arabic and Hebrew, which are both Semitic tongues. He pointed at parts of his body, calling out the words.
"Rosh. Ras," he said, speaking in Hebrew, then Arabic as he pointed at his head. "Af, anf," he said, gesturing toward his nose, "Re-ot, Ri-a," he said, speaking the words for lungs.
"The head is 'rosh'?" a student asked. "Ah!" he exclaimed as it clicked.
"Even if there's a difference in politics, culture, even if there is an occupation and oppression, the languages resemble each other," Hamdan told the students.
The conversation even delved gingerly into Zionism, Israeli life and history.
In discussing the Israeli health care provider, "Maccabi," Hamdan told the students the word referred to ancient Jewish rebels. That led to a discussion of the early Zionist hero Joseph Trumpeldor, who helped bring Jewish immigrants to Palestine and was killed in 1920 while defending a Jewish settlement. Hamdan repeated a phrase attributed to the fighter as he died: "It is good to die for our country."
Some students said they were studying Hebrew to understand Israeli TV and radio broadcasts, which are easily accessible in Gaza.
Ghada Najjar, 26, described her frustration at not understanding Israeli news broadcasts during the last major round of Israel-Hamas fighting in November. At the time, Israel pounded Gaza from air and sea, while Palestinian militants fired rockets toward cities deep in Israeli territory.
"It's a weapon, even if it's not very powerful, to understand," said the mother of two.
Jihad Abu Salim, 24, said he began studying Hebrew after participating in a four-month coexistence program at New York University.
"I felt it was my duty to learn more about their history, politics and culture," he said.
Palestinian students in Gaza face unique challenges to learning Hebrew. Because of Israeli restrictions, few will ever practice the language with native speakers.
Contact with Israelis is frowned upon in Gaza, where it angers many residents who have lost loved ones or suffered injuries in fighting.
A small group of Gaza residents, mostly traders and medical officials, regularly enter Israel for business purposes. However, Hamas bristles at other contacts, and the government recently banned Gaza journalists from working for Israeli media. Some Gaza residents who communicate with Israeli friends on email or Skype say they shy away from discussing those relationships with others.
Hostile attitudes have left veteran Hebrew-language teachers treading a careful line. Like most Gaza residents, they view Israel bitterly after years of conflict. But they also have memories of more peaceful times, when they could freely enter Israel to study Hebrew.
Instructor Jamal al-Hadad, 60, railed against what he called linguistic theft, noting the many Arabic words that have been incorporated into modern Hebrew. "Like they stole Palestine, they also stole our words," al-Hadad said.
But he also proudly showed off a collection of poems he had written in Hebrew, a mix of pro-Palestinian rhymes and odes to love. And he said he objected to the idea he was merely teaching the language of his foes.
"It is the language of our enemies," he said. "But it is also the language of our neighbors."
Mixed attitudes are common on both sides of the Israeli-Palestinian divide.
Arabic is supposed to be mandatory in Israeli high schools from 7th to 10th grade, but only about half of them teach it. In most cases, students take it for two years, according to the coexistence group Abraham Fund.
Israeli Arabic language specialists are typically sought for military and intelligence positions, to monitor Arabic media, interrogate Palestinian suspects, handle Palestinian informants or use it during undercover operations.
In Gaza, high schools stopped teaching Hebrew in the mid-1990s, after a Palestinian self-rule government took over civilian affairs. Last year, the Hamas government decided to bring the language back — an acknowledgment that Gazans need the language to deal with Israelis, a people they are intertwined with for the foreseeable future. And while Hebrew had been offered as an elective at several Gaza universities, this is the first diploma to exclusively focus on the language.
Regardless of Hamas' intentions, teaching Hebrew could open doors of understanding, said Gershon Baskin, an Israeli peace activist.
"It has the potential to change world views," said Baskin. "Facebook, email, chatting, the whole world is open. You can't prevent contact if people want contact."
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Soccer-English League Cup semifinal results

Jan 8 (Infostrada Sports) - Results from the English League Cup Semifinal first leg matches on Tuesday
Semifinal
Tuesday, January 8, first leg
Bradford City (IV) - Aston Villa 3-1 (halftime: 1-0)
Next Fixtures (GMT):
Wednesday, January 9
Chelsea v Swansea City (1945)
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Soccer-Lowly Bradford stun Aston Villa in League Cup first leg

LONDON, Jan 8 (Reuters) - Fourth tier Bradford City continued their heroics with a 3-1 home victory over Premier League Aston Villa in the Capital One (League) Cup semi-final first leg on Tuesday.
Bradford, who had already disposed of Wigan Athletic and Arsenal, took the lead when Nahki Wells scored from close range in the first half before Rory McArdle doubled the advantage after the break.
Villa squandered several good chances with substitute Darren Bent guilty of arguably the worst miss of the night heading over an open goal in the second half before Andreas Weimann pulled a goal back late on for the visitors.
It proved to be a brief ray of light on a grim evening for Villa however as Carl McHugh added gloss to the scoreline with two minutes remaining.
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UPDATE 1-Soccer-English League Cup semifinal summaries

Jan 8 (Infostrada Sports) - Summaries from the English League Cup Semifinal first leg matches on Tuesday
Bradford City (IV) 3 Naki Wells 19, Rory McArdle 77, Carl McHugh 88
Aston Villa 1 Andreas Weimann 83
Halftime: 1-0; Attendance: 22,245
- - -
Next Fixtures (GMT):
Wednesday, January 9
Chelsea v Swansea City (1945)
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Worldwide Supply Appoints New Inside Sales Account Executives

Experienced inside sales professionals to manage existing accounts as well as prospect new clients for the rapidly growing recognized leader in the secondary networking hardware marketplace.

Franklin, NJ (PRWEB) January 03, 2013
Worldwide Supply, the recognized leader in the secondary networking hardware marketplace, today announced the appointment of Melissa M. Montgomery-Pascual and Alexander A. Pascual to the roles of Inside Sales Account Managers.
With over twenty years of experience in sales, this team will be tasked with growing Worldwide Supply’s existing accounts as well as prospecting new relationships. "We’re excited to have two very dynamic, seasoned sales professional join our team as we expand our reach into new business segments and strive to continue growing market share with current clients," says Jay VanOrden, CEO of Worldwide Supply.
Prior to joining Worldwide Supply, Melissa Montgomery-Pascual held a Senior Account Executive position with Network Hardware Resale. She also is owner of Melimarmonte, a successful line of Women and Children’s luxury garment and accessory fashions. She holds a BA from the University of Arizona, Tucson. Alexander (Ace) Pascual comes to us from Planet Solar, Inc. where he held the position of National Sales Manager. Ace also has significant networking experience from his tenure at Network Hardware Resale. He holds a BA from the University of Arizona, Tucson.
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About Worldwide Supply
Worldwide Supply is a recognized leader in the secondary network hardware marketplace, providing and buying networking and telecommunication equipment to, and from, companies globally. Some companies sell used networking gear to Worldwide Supply. Others may be searching for items ranging from used cisco routers to optics transceivers and beyond.
Headquartered in northern New Jersey, and with offices in California, Colorado, Massachusetts, New York, North Carolina and Texas, Worldwide Supply provides a full line of certified pre-owned and new-surplus networking and telecommunication products from major manufacturers such as Cisco, Juniper, Arris, Calix, Extreme and Motorola.
Worldwide Supply backs the products it sells with an industry-leading lifetime warranty.
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Wiccan Spells Online: PsychicTarot.us Puts the Power of Wicca to Benefit

The new metaphysical services marketplace, PsychicTarot.us, has announced the creation of their online platform allowing users to tap into the power of Wiccan spell craft and practitioners to sell their services. Followers of Wicca can list their services for sale to the public and people interested in the benefits can shop amongst the listed gigs.

Santa Barbara, CA (PRWEB) January 03, 2013
The new age services community and marketplace, PsychicTarot.us, today announced the launch of a section dedicated to Wiccan spells. Users of the site can list their beneficial spells for sale to the public and earn money with their talents, while shoppers can compare and purchase from their favored practitioner. The website will allow buyers to request enchantments (white magic only) from real Wiccans to benefit their health, wealth, happiness and other areas of their life.
"The Wiccan community is vibrant and active, we are proud to create this opportunity for people to earn money, have fun, and connect with people interested in their talents," stated Irina Shayk, representative for PsychicTarot.us. "People can list their spells or rituals for $5 and up to $50, and are limited only by their creativity."
For those who aren't familiar with the Wiccan religion, Wikipedia defines it is as a modern interpretation of several ancient pagan religions. It is often referred to as witchcraft because the adherents of the religion believe in the casting of spells to change nature and people's behavior.
According to the site, Wicca is centered around the worship of the masculine and feminine aspects of nature as represented by the moon and the sun and personalized as the moon goddess and the horned man. There are many different branches of Wicca, though many of them have as one of their cores beliefs the ideal of "An ye harm none, do what thou wilt", which derives from an ancient pagan proverb.
In a recent New York Times witchcraft report detailing the success of a local Goddess shop, the belief system is quite popular and there is a demand for the spells. PsychicTarot.us intends to connect these business owners with a global market online.
"The popularity of movies that portray the occult over the past few years have really increased the number of people who are interested not only in Wicca, but in many aspects of metaphysical pursuits. Science in many ways is simply catching up to ancient wisdom," added Ms. Shayk.
PsychicTarot.us provides a few suggestions for people who join and wish to list their services:

Love spells
Prosperity spells
A spell for good luck
Spells for continued or improved health
Success spells
Starting as low as $5, prices are reasonable for someone new looking to dabble, while more in powerful services can be listed for as much as $50 to the public. Whether one believes or not in the power of a Wiccan enchantment, the new online marketplace is sure to be great fun for visitors and professionals alike.
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ListedBy’s Stephan Piscano Perspective Featured In REI Voice Magazine’s 2013 Market Predictions

Feature projects outlook from ten prominent U.S. city, state and national real estate industry leaders and city executives.

Napa, CA (PRWEB) December 31, 2012
ListedBy (http://www.ListedBy.com), the first free online real estate marketplace and social network with live bidding public real estate auctions and ‘Best Offer’ functionality today announced that its CEO and Founder Stephan Piscano’s outlook for the real estate industry has been featured by REI Voice Magazine (http://www.reivoice.com) as part of its 2013 Market Predictions feature.
“2013 could be your last opportunity to realize huge returns on investment properties,” wrote Piscano, for REI Voice 2013 Market Predictions. “We started telling all of our partners, clients and investors at the end of 2011, that 2012 would be the last opportunity to see deals like we had been seeing for the last 3 years, and I personally told all those close to me that we would look back at 2012 and ask, how much did we capitalize on it?”
Opinions and forward outlook from ten high profile experts in real estate make up this year’s predictions. The article covers perspectives at the city, state and national levels, and features thoughts from prominent insurance, asset management and real estate investment senior managers as well as REALTOR® council, county assessment and city economic development executives.
Continued Piscano: “I believe that interest rates remaining low, combined with lack of inventory, combined with the potential for rapid inflation will cause the market to continue to rise in 2013 and beyond. There will still be exceptional investment opportunities. It will be several years before the market is fully recovered but this year could be your last opportunity for a while to capitalize on the unreal 23% ROI (Return On Investment) type of investment properties for a while. Investors will start seeing more types of real estate investments take place such as owner-carry-financing, due to the millions of Americans who have damaged credit but still may have solid income or in some cases even be multimillionaires who are tired of buying everything cash and want leverage.”
ListedBy also published The 2013 Real Estate Market, a forward looking opinion on the market based on two possible economic scenarios for the coming year. The article can be viewed at http://blog.listedby.com.
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About ListedBy
ListedBy is the first free online real estate marketplace and social network with live bidding auction and ‘Best Offer’ functionality. Buyers, sellers, real estate professionals and service providers join ListedBy to network and to list, research, buy and sell real estate assets in a collaborative, transparent environment. ListedBy is headquartered in Napa, and is privately funded. For ongoing news, please visit http://www.listedby.com/about.
ListedBy, LB Social and the ListedBy logo are trademarks or registered trademarks of ListedBy, LLC and / or its affiliates in the U.S. and other countries. Third party trademarks and brands mentioned are the property of their respective owners.
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Canada spending growth sluggish in November, Mastercard says

(Reuters) - Canada's holiday shopping season got off to a slow start in November with retail sales rising only 1.3 percent from the previous year, compared with 4.2 percent growth a year earlier, according to data released by MasterCard on Thursday.
Still, the shopping season was still young in November. MasterCard Advisors, the payment company's research and consulting division, found that in recent years, holiday shopping peaks from December 20 to December 22.
"Many Canadians may have gotten an early start with Black Friday and Cyber Monday this year, but it's still a very young phenomenon in Canada," Senior Vice-President Richard McLaughlin, said in a release.
The Friday after U.S. Thanksgiving is the unofficial start to the holiday shopping season south of the border, and in recent years retailers have imported Black Friday sales to Canada.
Some also promote online sales the following Monday.
Canada's online retail sales continued to grow in November, increasing 26.4 percent.
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Chevron to buy stake in Kitimat LNG from Encana, EOG

CALGARY, Alberta (Reuters) - Chevron Corp said on Monday it will enter the Canadian liquefied natural gas business with the acquisition of the 50 percent stake in the Kitimat LNG project held by Encana Corp and EOG Resources Inc.
Chevron will take Encana's and EOG's 30 percent stakes in the LNG-export project for an undisclosed price as the No.2 U.S. oil company looks to jumpstart North American natural gas exports.
It will also buy the two companies' interest in a pipeline serving the project, at Kitimat, 650 kilometers (400 miles) north of Vancouver, and will pay $550 million for a half stake in 644,000 acres of exploration lands in the Horn River and Liard shale-gas fields owned by Apache Corp.
Apache will then pay Chevron $150 million to raise its stake in the British Columbia project and associated lands to 50 percent, netting the U.S. independent oil and gas producer $400 million from the transaction.
Analysts say the addition of a deep-pocketed partner increases the likelihood that the multi-billion dollar Kitimat LNG -- the most advanced of a handful of gas-export facilities slated for British Columbia's northern coast -- will be completed.
"With Chevron involved it will happen sooner than it otherwise would have," said Michael Dunn, an analyst with FirstEnergy Capital.
Though no price was given, Robert Morris, an analyst with Citi Research, estimates that Encana and EOG each received about $450 million for their stakes and the exploration lands.
Kitimat LNG was last year awarded Canada's first LNG export license by the National Energy Board, allowing it to export 10 million tons of LNG per year. The project is slated to begin shipping gas to Asian markets by 2017.
Other Canadian LNG facilities are planned by Royal Dutch Shell Plc, Malaysia's Petronas, BG Group Plc and others, making British Columbia a rival to the U.S. Gulf coast, where nine projects have been announced and one, Cheniere Energy Inc's, Sabine Pass project, is already under construction.
Chevron has existing LNG projects in Australia, Africa and South America. Adding the Canadian operation will let it tap high-priced export markets and escape a domestic gas market that remains depressed because of burgeoning production from shale gas fields.
"This investment grows our global LNG portfolio and builds upon our LNG construction, operations and marketing capabilities," George Kirkland, Chevron's vice chairman, said in a statement. "It is ideally situated to meet rapidly growing demand for reliable, secure, and cleaner-burning fuels in Asia, which are projected to approximately double from current levels by 2025."
Encana said the sale of its stake was consistent with its plan to focus on its core natural gas business and that the deal will reduce its future capital commitments while EOG will now focus on U.S. crude oil production.
The acquisition is expected to close it the first quarter of 2013.
Chevron shares fell $1.00 to $108.71 by early afternoon on the New York Stock Exchange while Apache fell $1.35 to $78.65 and EOG dropped 72 cents to $122.83
Encana shares were down 51 Canadian cents at C$19.62 on the Toronto Stock Exchange.
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Ontario government imposes new contracts on teachers

TORONTO (Reuters) - Ontario's government said on Thursday it will impose labor contracts on tens of thousands of teachers in Canada's most populous province as part of its controversial push to reduce a large budget deficit.
Education Minister Laurel Broten announced contract terms covering some 130,000 teachers that included a broad wage freeze, a reduction in the number of sick days and limits on the number of sick days teachers are allowed to cash out when they retire.
Ontario's Liberal government, which holds only a minority of seats in the provincial parliament, managed to reach tough new deals with other teacher groups and its doctors but failed to come to terms with the larger group of elementary and secondary school teachers.
The showdown led many teachers to drop extracurricular activities and take other job action such as one-day strikes.
The new deal will save the province C$250 million ($253.79 million) in 2012-13 and C$540 million in 2013-14, the government said in a statement. In addition, the government will realize one time savings of C$1.1 billion from changes to the sick day policy.
The new contracts will expire in August, 2014.
Ontario Premier Dalton McGuinty, who announced late last year that he would resign once the Liberals elect a new leader in January, pledged last March that the government would reduce its C$14 billion deficit by holding the line on public sector wages.
The government passed a law last fall covering its public sector workers that froze wages, cut sick days and limited their right to strike. The legislation, which sparked furious opposition from labor groups, set the bargaining deadline for last December 31.
Ontario's teachers are among the highest paid in Canada, a country where educators rank as some of the best compensated in the world.
Credit rating agencies have repeatedly warned Ontario that tackling its deficit would require tough austerity measures.
Healthcare and education make up about 70 percent of Ontario's spending, with wages and fees accounting for more than half of the expenses.
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League, players continue to talk as deadline looms

The National Hockey League and locked out players appeared closer to a new labor deal that would salvage a partial season after Wednesday's midnight deadline passed without the union filing a disclaimer of interest and dissolving.
With the lockout reaching its 110th day, negotiations began under an NHL Players Association (NHLPA) threat to decertify, freeing individual players to file anti-trust lawsuits against the league.
NHL commissioner Gary Bettman told reporters that the union never played the disclaimer card during any negotiations and that both parties and a U.S. mediator would be back at the bargaining table at 10 am ET (1500 GMT) on Thursday.
"The word disclaimer has yet to be uttered to us by the players association," Bettman told reporters as he left meetings at the league's Manhattan offices. "When you disclaim interest as a union you notify the other side.
"We have not been notified. It has never been discussed so there is no disclaimer."
While one deadline passed, another is looming large on the horizon, Bettman having set a January 19 limit for the puck to drop on a shortened 48-game schedule.
With the clock ticking, both Bettman and NHLPA chief Donald Fehr could agree on one thing - that much work needs to be done if there is to be a season.
"If you have a river to cross you have to build a bridge or do something else if you are going to cross the river," said Fehr, deflecting any questions about the disclaimer of interest. "We've moved closer on some issues but work remains to be done."
The two sides have spent three days in New York exchanging proposals and counter proposals and appeared to inching slowly towards a deal.
PENSION ISSUE
The back-and-forth diplomacy continued on Wednesday, with brief meetings in the morning and a longer session that began at 8 pm stretching into Thursday morning.
There have been indications the two sides are close to agreement on major issues - such has how to split $3.3 billion in revenue - contract lengths and revenue sharing but they remain far apart on others.
Player pension plans and how they are funded has suddenly popped up as the hot topic along with where the salary cap ceiling should be set.
The league wants a cap locked in at $60 million while the players are believed to be seeking something in the $65-67 million range.
"It's been a long day with lots of meetings both internal and with the players association, and the process will be continuing tomorrow morning," Bettman said.
"There has been some progress but we are still apart on a number of issues, but as long as the process continues I am hopeful.
"On some issues we agreed, on some we moved towards each other and on some we said 'no'. I think that applies to both parties."
Players have been locked out since mid-September and the league has cancelled games up to January 14, more than 50 percent of the regular season which was scheduled to start in October.
The dispute is the NHL's fourth work stoppage in 20 years and first since a lockout forced the cancellation of the entire 2004-05 season.
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NHL negotiations go late. No union disclaimer

 Hockey players are sticking together as a union for now and are working long and late hours with the NHL to try to reach a new collective bargaining agreement to get the game back on the ice.
The sides met in small groups throughout the day Wednesday and then held a full-scale bargaining session with a federal mediator at night that lasted nearly five hours and didn't wrap up until about 1 a.m. Thursday.
They planned to get back at it less than 10 hours later.
The biggest detail to emerge from Wednesday night's marathon talks was that Donald Fehr is still the executive director of the players' association, which passed on its first chance to declare a disclaimer that would dissolve the union and turn it into a trade association.
Last month, players voted overwhelmingly in favor of giving the union executive board the right to declare the disclaimer, but that permission expired at midnight Wednesday. The disclaimer would allow individual players to file antitrust lawsuits against the NHL.
Fehr wouldn't address the issue at all, calling it an "internal matter," but NHL Commissioner Gary Bettman said all the union would need to do is inform the league that it was taking the action for it to happen.
"The word disclaimer has yet to be uttered to us by the players' association," Bettman said. "It's not that it gets filed anywhere with a court or the NLRB. When you disclaim interest as a union, you notify the other side. We have not been notified and it's never been discussed, so there has been no disclaimer."
Even though the deadline expired, a new vote by players can be held anytime to restore the authorization.
"All I can tell you about that is the players retain all the legal options they have always had and we don't talk about legal matters," Fehr said.
The thought was that the union wouldn't take action Wednesday if it saw progress was being made. Neither side would characterize the talks or address what, if any, movement toward common ground was reached.
Both the league and the players were tightlipped about how many things still need to be worked out and what topics are keeping them apart. But the discussions went well enough for the NHL and the union to agree to the mediator's request to start talking again at 10 a.m. Thursday.
"I'm not going to get into the details," Bettman said. "There's been some progress but we're still apart on a number of issues. As long as the process continues I am hopeful."
Bettman has told the union that a deal must be in place by Jan. 11 in order for a 48-game season to be played beginning eight days later.
The night session Wednesday began shortly after 8 p.m. EST. The sides also met for about an hour during the afternoon when the union gave its latest proposal to the league, a response to the NHL's counteroffer on Tuesday.
Neither side said much regarding Wednesday's discussions, but it is believed that the pension issue has become a major stumbling block.
"The pension plan is a very complicated issue," Bettman said. "The number of variables and the number of issues that have to be addressed by people who carry the title actuary or pension lawyer are pretty numerous and it's pretty easy to get off track.
"That is something we understand is important to the players."
The union's proposal Wednesday makes four offers between the sides since the NHL restarted negotiations Thursday with a proposal.
A small group meeting on the pension issue was held Wednesday morning before the players' association presented its offer. A deal can't be done without a resolution on pensions.
The league presented the players with a counteroffer Tuesday night in response to one the union made Monday.
The lockout reached its 109th day Wednesday, and Bettman has said that the league told the union a deal needs to be in place by next week so a 48-game season can begin on Jan. 19. All games through Jan. 14 along with the All-Star game have been canceled, claiming more than 50 percent of the original schedule.
Fehr believed an agreement on a players-funded pension had been reached before talks blew up in early December. That apparently wasn't the case, or the NHL has changed its offer regarding the pension in exchange for agreeing to other things the union wanted.
The salary-cap number for the second year of the deal — the 2013-14 season — hasn't been established, and it is another point of contention. The league is pushing for a $60 million cap, while the union wants it to be $65 million.
In return for the higher cap number players would be willing to forgo a cap on escrow.
"We talk about lots of things and we even had some philosophical discussions about why particular issues were important to each of us," Bettman said. "That is part of the process."
The NHL proposed in its first offer Thursday that pension contributions come out of the players' share of revenues, and $50 million of the league's make-whole payment of $300 million will be allocated and set aside to fund potential underfunding liabilities of the plan at the end of the collective bargaining agreement.
Last month, the NHL agreed to raise its make-whole offer of deferred payments from $211 million to $300 million as part of a proposed package that required the union to agree on three nonnegotiable points. Instead, the players' association accepted the raise in funds, but then made counterproposals on the issues the league stated had no wiggle room.
"As you might expect, the differences between us relate to the core economic issues which don't involve the share," Fehr said of hockey-related revenue, which will likely be split 50-50.
The NHL is the only North American professional sports league to cancel a season because of a labor dispute, losing the 2004-05 campaign to a lockout. A 48-game season was played in 1995 after a lockout stretched into January.
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UPDATE 1-NHL-League, players continue to talk as deadline looms

* Deadline to start season looming
* Lots of work remains to save season (Adds detail, quotes)
Jan 2 (Reuters) - The National Hockey League and locked out players appeared closer to a new labour deal that would salvage a partial season after Wednesday's midnight deadline passed without the union filing a disclaimer of interest and dissolving.
With the lockout reaching its 110th day, negotiations began under an NHL Players Association (NHLPA) threat to decertify, freeing individual players to file anti-trust lawsuits against the league.
NHL commissioner Gary Bettman told reporters that the union never played the disclaimer card during any negotiations and that both parties and a U.S. mediator would be back at the bargaining table at 10 am ET (1500 GMT) on Thursday.
"The word disclaimer has yet to be uttered to us by the players association," Bettman told reporters as he left meetings at the league's Manhattan offices. "When you disclaim interest as a union you notify the other side.
"We have not been notified. It has never been discussed so there is no disclaimer."
While one deadline passed, another is looming large on the horizon, Bettman having set a Jan. 19 limit for the puck to drop on a shortened 48-game schedule.
With the clock ticking, both Bettman and NHLPA chief Donald Fehr could agree on one thing - that much work needs to be done if there is to be a season.
"If you have a river to cross you have to build a bridge or do something else if you are going to cross the river," said Fehr, deflecting any questions about the disclaimer of interest. "We've moved closer on some issues but work remains to be done."
The two sides have spent three days in New York exchanging proposals and counter proposals and appeared to inching slowly towards a deal.
PENSION ISSUE
The back-and-forth diplomacy continued on Wednesday, with brief meetings in the morning and a longer session that began at 8 pm stretching into Thursday morning.
There have been indications the two sides are close to agreement on major issues - such has how to split $3.3 billion in revenue - contract lengths and revenue sharing but they remain far apart on others.
Player pension plans and how they are funded has suddenly popped up as the hot topic along with where the salary cap ceiling should be set.
The league wants a cap locked in at $60 million while the players are believed to be seeking something in the $65-67 million range.
"It's been a long day with lots of meetings both internal and with the players association, and the process will be continuing tomorrow morning," Bettman said.
"There has been some progress but we are still apart on a number of issues, but as long as the process continues I am hopeful.
"On some issues we agreed, on some we moved towards each other and on some we said 'no'. I think that applies to both parties."
Players have been locked out since mid-September and the league has cancelled games up to Jan. 14, more than 50 percent of the regular season which was scheduled to start in October.
The dispute is the NHL's fourth work stoppage in 20 years and first since a lockout forced the cancellation of the entire 2004-05 season.
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FDA Moves on New Food Safety Rules

The FDA proposed new rules today that would require US food distributors to implement additional measures to combat food-borne illness. The guidelines are aimed at improving food handling in both the agriculture and manufacturing sectors after a series of recent disease outbreaks in peanuts, cantaloupe, cheese, and leafy green vegetables that killed scores of Americans.
Food safety organizations welcomed the new rules after a long delay.
“Under the old rules, we’ve been reacting to food contaminations after they happened,” Ami Gadhia of Consumers Union said in a statement. ”The goal here is to prevent deadly outbreaks before people get hurt.  We’re anxious to dive deep into these proposed rules so we can review and comment on the details.”
One rule would require growers, manufacturers and distributors to develop formal plans for preventing contamination, including techniques for cleaning equipment and keeping animals out of crops. Mandatory contingency plans for outbreaks would also be required of businesses, to be approved by the government. The rule would apply to both foreign and domestic suppliers, provided their goods are bound for US consumption.
Another rule proposes enforceable safety standardization in the production and harvesting of produce.
According to the Centers for Disease Control, 3,000 Americans died last year from food-borne illnesses, with an additional 130,000 hospitalized.
In an effort to stave off industry protests Food and Drug Administration officials stressed the rules would be implemented on a risk-based scale, with higher emphasis placed on foods intended to be eaten raw. For example, fresh tomatoes bound for supermarket produce aisles would be held to much stricter standards than beans intended to be cooked and canned.
The FDA estimates it will take roughly a year for the government to move toward implementing the rules, including a 120-day period for public comment. After adoption the largest agriculture businesses will have two years to comply, and small-scale producers will have extensions well beyond that time frame.
Most American food distributors are already in compliance with many of the regulations set out today, but many are voluntary and the government believes stricter enforcement could have prevented deaths from recent highly publicized outbreaks. For example, during the 2011 listeria outbreak in cantaloupes federal investigators found dirty processing equipment and standing pools of old water on the floor of the Colorado farm that produced them. The contaminated produce was linked to 33 deaths.
But these measures are part of the Food Safety Modernization Act, a sweeping series of regulatory changes to the industry that have been tied up in the Obama administration for well over a year. As the first major overhaul of the FDA in decades, President Obama signed the legislation into law with modest Republican support from Congress two years ago to the day, with a one-year deadline to see its first policies put into practice.
Speculation of political motivations at work cropped up during the delays, fueled after the rules were hung-up at the Office of Management and Budget in the review process. Some industry watchers suggest the administration may have sought to deny Republicans an additional talking point during an election year by tabling new proposals.
Pew Research reports there have been 15 major outbreaks regarding FDA-related products since the FSMA was signed into law, resulting in 40 deaths.
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Canada meets key aboriginal demand amid blockades

OTTAWA (Reuters) - Canada's prime minister will meet with native leaders next week to discuss social and economic issues, an olive branch to an angry aboriginal movement that has blockaded rail lines and threatened to close Canada's borders with the United States.
Stephen Harper made no mention of the aboriginal protests in a statement on Friday announcing the January 11 meeting.
But the meeting is a key demand from native Chief Theresa Spence, who has been on a hunger strike for 25 days on an island within sight of the Canadian Parliament in Ottawa.
Spence's spokesman Danny Metatawabin told reporters, on the snowy ground outside her traditional teepee, that she would continue her hunger strike until she was satisfied with the outcome of next week's meeting.
Spence's hunger strike has been one of the most visible signs of a protest movement called Idle No More, which had announced plans for blockades on Saturday all along the U.S.-Canadian border.
It was not clear if these blockades would now be called off, or if there would be any disruptions at the border crossings between the two big trading partners.
The movement is not centrally organized, and Metatawabin said he would not tell others what to do. Several hours after Harper's announcement, the Idle No More website still had a call up for blockades on Saturday.
Demonstrators blocked a Canadian National Railway Co line in Sarnia, Ontario, for about two weeks until Wednesday, and there were shorter blockades elsewhere in the country, including one that delayed passenger trains between Montreal and Toronto for several hours on Sunday.
Harper said next Friday's meeting would address economic development, aboriginal rights and the treaty relationship between the government and native groups. He described it as a follow-up to a meeting with aboriginal leaders last January as well as talks in November with Assembly of First Nations National Chief Shawn Atleo.
"While some progress has been made, there is more that must be done to improve outcomes for First Nations communities across Canada," Harper said in a statement.
DISMAL CONDITIONS
Many of Canada's 1.2 million aboriginals live on reserves where conditions are often dismal, with high rates of poverty, addiction and suicide.
Treaties with Ottawa signed a century ago finance their health and education in a way that many experts say is now dysfunctional.
Speaking to reporters in Oakville, Ontario, Harper sidestepped a question on whether he had agreed to the meeting because of Spence's hunger strike and fear the protests could snowball like last year's Occupy Movement.
Asked about the demonstrations, he said: "People have the right in our country to demonstrate and express their points of view peacefully as long as they obey the law, but I think the Canadian population expects everyone will obey the law in holding such protests."
Idle No More was sparked by legislation that activists say Harper rushed through Parliament without proper consultation with native groups and which affects their land and treaty rights. But it has broadened into a complaint about conditions in general for native Canadians.
In her meeting with reporters after Harper's announcement, Spence said she planned to attend the meeting in person along with three of her supporters and she wanted the governor general - Queen Elizabeth's representative - and the Ontario premier to attend as well.
She stood flanked by her daughter and several supporters, some of them holding up feathers. There were several minutes of drumming and singing before she and her spokesman began talking.
When asked what she needed to hear from the prime minister in order to start eating again, she said, "a positive result because there's a lot of issues we need to discuss" and that they should discuss the issues as equal partners.
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Competition affects who gets a liver transplant

NEW YORK (Reuters Health) - More competition between medical centers that perform liver transplants may mean sicker patients get lower-quality donor organs, a new analysis suggests.
When more than one center has patients on the same donor list, the centers have an incentive to get organs for as many of their own patients as possible, researchers explained.
So doctors are more likely to take the first available organ when their patient is at the top of the transplant list - whether or not that pairing has the best chance to succeed - rather than risk the organ will go to another center.
"There is the question whether competition decreases the ability of a center to better match donor and recipient characteristics," Dr. John Paul Roberts from the University of California, San Francisco and his colleagues wrote.
They analyzed data on more than 38,000 liver recipients who had transplants from non-living donors between 2003 and 2009.
The transplants were done at 112 medical centers in 47 so-called distribution areas - some that were covered by only one center and some that fed organs to multiple transplant centers.
Roberts and his colleagues found "clinically important differences" showing patients who received organs were initially worse off, with a higher risk of dying or having their transplant fail, in areas that had more medical centers in competition for the same organs.
For example, 10 percent of patients who received organs at centers with no competition had the worst scores for liver disease severity pre-transplant, compared to more than 28 percent of those in the high-competition distribution areas.
Areas with high competition also transplanted more organs that were considered at higher risk of failing, according to the new findings published in the journal Liver Transplantation.
Although that might not be the best way of distributing organs on a society-wide scale, it could be considered a plus for the people who otherwise wouldn't get an organ or for livers that would otherwise be considered too low quality and be discarded.
"If you're a sick, high-risk patient… then it's in your interest that somebody will take more of a risk on you. The alternative is not surviving," said Dr. Michael Charlton, a liver disease researcher from the Mayo Clinic Transplant Center in Rochester, Minnesota.
Competition, he said, does increase access for patients. So people who are very sick and are turned away by a center that's the only place for transplants in its distribution area might have better luck elsewhere - if they can afford to travel, that is.
"The practice, in terms of choosing patients who can undergo liver transplantation and accepting organs that are already listed for transplantations, varies significantly between centers," Charlton, who wasn't involved in the new study, told Reuters Health.
Still, he cautioned that the way the researchers measured competition - comparing the market shares for each transplant center in a given area - doesn't account for the effect of a center's reputation for good outcomes, for example.
In that situation, a popular, higher-volume center would experience less competition from other centers and might also have better transplant records - so pure competition might not be the only explanation for outcomes.
Charlton pointed to the Scientific Registry of Transplant Recipients as a place where patients can go to see how many people various centers have on their organ waitlist in addition to how well their patients do after getting a transplant. (For liver transplants, that information can be found here:).
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HBO to make adaption of AIDS play

Julia Roberts and Mark Ruffalo will star in an HBO movie adaptation of "The Normal Heart," the play about the onset of the AIDS crisis in New York City in the early 1980s.
HBO said Friday that Ryan Murphy, maker of "Eat Pray Love" and the TV show "Glee," will direct the film.
Larry Kramer's play about the men who joined him to help form the Gay Men's Health Crisis debuted in 1985 and was brought to Broadway again in 2011, winning a Tony Award for best revival.
Roberts will portray Dr. Emma Brookner, a paraplegic doctor who treated several of the earliest AIDS victims. Ruffalo plays Ned Weeks, who sought answers when he saw the disease begin to kill many gay people he knew.
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FDA Aims to Reduce Contaminated Food Via New Rules

With one in six people in America developing a foodborne illness each year , the U.S. Food and Drug Administration is moving forward with the proposal of two new rules as required by the Food Safety Modernization Act , FSMA, signed into law Jan. 4, 2011. Some might say, "At long last," since this is the first major action by the federal agency since the legislation was signed into law by President Barack Obama.
New FDA-Proposed Rules Address Manufacture, Handling and Processing of Food
The first rule deals with foreign and domestic manufacturers of food for human consumption would require these manufacturers to develop a plan to prevent their products from causing foodborne illnesses, and should a problem develop, the manufacturers would be required then to develop a plan to address the issue.
The second rule addresses farms that grow fruits and vegetables by setting national standards for water quality used in the production and handling of such crops.
Implementation of New Food Safety Rules
The FDA's proposed new rules will be published in the Federal Register as required with a 120-day open period for comments and concerns by citizens before the new rules will become final.
Don't look for immediate enactment of the rules, even when the public comment period comes to and end. The federal agency will review the comments and make any necessary adjustments to the rules, with the beginning of implementation expected to be about a year, Taylor explained to USAToday.com .
The deputy commissioner also revealed that implementation of these rules will require re-training of government inspectors, but as of yet no one knows where funding will come from for the changes.
New Food Safety Regulations Shift Focus from Reaction to Prevention
Michael R. Taylor, deputy commissioner for foods and veterinary medicine at the FDA, said in an interview that the new rules "set the basic framework for a modern, science-based approach to food safety" and shift the focus of food safety to one of prevention rather than reaction.
Taylor addressed the rationale that required two years for the federal agency to go from Jan. 1, 2011 to enactment on the law: The FDA has come to the realization that one-size-fits-all rules and regulations don't address the complexity of the issues, or the practicality of genuine solutions.
TheHill.com reported that some food safety advocates were angered by the long delay, and the Center for Food Safety filed a lawsuit in August against the FDA and the Obama administration for bypassing interval deadlines in the law without taking action.
Bottom Line
The U.S. Centers for Disease Control and Prevention estimated that nearly 130,000 Americans are hospitalized each year from foodborne illnesses and approximately 3,000 deaths annually result from these preventable infections. The safety of food in the United States is either important or it isn't; the federal government dragging its feet in the implementation of, and funding for, the Food Safety Modernization Act belies the very law it established.
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Tubular raises $2.5 million to serve burgeoning YouTube industry

SAN FRANCISCO (Reuters) - Tubular, a small San Francisco start-up that provides analytics for YouTube content creators, has raised $2.5 million in venture capital in the latest sign of how far the business ecosystem has evolved around the Google-owned video repository.
YouTube was once known as Wild West of online video, but over the past two years Google has focused on raising the quality of YouTube content through a series of direct investments and the cultivation of third-party "networks".
The result is a cluster of small studios, mostly based in Los Angeles, that acts like a digital Hollywood, pumping out slick YouTube hits.
With the ultimate goal of hosting enough high-quality content to lure big-spending advertisers to YouTube, Google doled out more than $100 million last year in grants to its networks and bedroom stars.
In May Google led a group of investors who poured $35 million into Machinima, a leading network, to stoke growth in the YouTube industry.
That market has now grown to the point that it can support its own start-ups, says Tubular's founder Rob Gabel.
COMPETITION
As more semi-professional and professional YouTube creators enter the sector, with increasing competition among them, there is a growing need for analytical services.
Tubular is one such service, allowing customers to monitor and measure when videos get the most views and comments, or the sources of referred traffic.
The software includes a dashboard that displays the real-time analytics, which are generated by tapping into a stream of data provided by YouTube.
"If YouTube is a multibillion-dollar market, then that's billions of dollars going out to content creators who can then invest that again," said Gabel, a former Machinima employee.
"On every platform, from Google to Facebook to Twitter, people have turned to third parties' helpful tools."
At a high level, the pie is large and continuing to grow rapidly. Former Citi analyst Mark Mahaney estimates that YouTube will bring Google a total of $3.6 billion in 2012.
Rich Heitzmann, a co-founder of FirstMark Capital, which led Tubular's latest funding round, said that Google is far from wringing out all of the potential revenue from YouTube.
"We think the ecosystem is at least the size of Facebook's, considering it has a billion users and if you consider the time spent on YouTube," Heitzmann said.
"The advertising opportunities are there, and yet the ecosystem hasn't evolved technologically."
SUSTAINABLE BUSINESS
Other investors in Tubular's first tranche of equity financing included High Line Venture Partners, SV Angel, Lerer Ventures and Bedrocket Media Ventures.
Still, Gabel is betting that he can create a long-term, sustainable business on YouTube's platform at a time when some Silicon Valley companies are wary of building on the backs of larger companies.
Twitter, for instance, courted controversy this year when it made a business decision to shut off its firehose of data for a number of popular third-party developers to drive more visitors to its own site.
Allen DeBevoise, the CEO of Machinima who is also a Tubular investor, said that YouTube has reason to foster its independent developers rather than squash them.
"It's a thriving and fast-moving ecosystem now," he said. "But a lot of players are needed to make it all work."
Though Gabel acknowledges that the YouTube industry's rapid expansion is no guarantee of success, he has high hopes.
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Instagram tests new limits in user privacy

SAN FRANCISCO (Reuters) - Instagram, which spurred suspicions this week that it would sell user photos after revising its terms of service, has sparked renewed debate about how much control over personal data users must give up to live and participate in a world steeped in social media.
In forcefully establishing a new set of usage terms, Instagram, the massively popular photo-sharing service owned by Facebook Inc, has claimed some rights that have been practically unheard of among its prominent social media peers, legal experts and consumer advocates say.
Users who decline to accept Instagram's new privacy policy have one month to delete their accounts, or they will be bound by the new terms. Another clause appears to waive the rights of minors on the service. And in the wake of a class-action settlement involving Facebook and privacy issues, Instagram has added terms to shield itself from similar litigation.
All told, the revised terms reflect a new, draconian grip over user rights, experts say.
"This is all uncharted territory," said Jay Edelson, a partner at the Chicago law firm Edelson McGuire. "If Instagram is to encourage as many lawsuits as possible and as much backlash as possible then they succeeded."
Instagram's new policies, which go into effect January 16, lay the groundwork for the company to begin generating advertising revenue by giving marketers the right to display profile pictures and other personal information such as who users follow in advertisements.
The new terms, which allow an advertiser to pay Instagram "to display your username, likeness, photos (along with any associated metadata)" without compensation, triggered an outburst of complaints on the Web on Tuesday from users upset that Instagram would make money from their uploaded content.
The uproar prompted a lengthy blog post from the company to "clarify" the changes, with CEO Kevin Systrom saying the company had no current plans to incorporate photos taken by users into ads.
Instagram declined comment beyond its blog post, which failed to appease critics including National Geographic, which suspended new posts to Instagram. "We are very concerned with the direction of the proposed new terms of service and if they remain as presented we may close our account," said National Geographic, an early Instagram adopter.
PUSHING BOUNDARIES
Consumer advocates said Facebook was using Instagram's aggressive new terms to push the boundaries of how social media sites can make money while its own hands were tied by recent agreements with regulators and class action plaintiffs.
Under the terms of a 2011 settlement with the Federal Trade Commission, Facebook is required to get user consent before personal information is shared beyond their privacy settings. A preliminary class action lawsuit settlement with Facebook allows users to opt-out of being included in the "sponsored stories" ads that use their personal information.
Under Instagram's new terms, users who want to opt-out must simply quit using the service.
"Instagram has given people a pretty stark choice: Take it or leave, and if you leave it you've got to leave the service," said Kurt Opsahl, a senior staff attorney with the Electronic Frontier Foundation, a Internet user right's group.
What's more, he said, if a user initially agrees to the new terms but then has a change of mind, their information could still be used for commercial purposes.
In a post on its official blog on Tuesday, Instagram did not address another controversial provision that states that if a child under the age of 18 uses the service, then it is implied that his or her parent has tacitly agreed to Instagram's terms.
"The notion is that minors can't be bound to a contract. And that also means they can't be bound to a provision that says they agree to waive the rights," said the EFF's Opsahl.
BLOCKING CLASS ACTION SUITS
While Facebook continues to be bogged in its own class action suit, Instagram took preventive steps to avoid a similar legal morass.
Its new terms of service require users with a legal complaint to enter arbitration, rather than take the company to court. It prohibits users from joining a class action lawsuit unless they mail a written "opt-out" statement to Facebook's headquarters in Menlo Park within 30 days of joining Instagram.
That provision is not included in terms of service for other leading social media companies like Twitter, Google, YouTube or even Facebook itself, and it immunizes Instagram from many forms of legal liability, said Michael Rustad, a professor at Suffolk University Law School.
Rustad, who has studied the terms of services for 157 social media services, said just 10 contained provisions prohibiting class action lawsuits.
The clause effectively cripples users who want to legally challenge the company because lawyers will not likely represent an individual plaintiff, Rustad argued.
"No lawyers will take these cases," Rustad said. "In consumer arbitration cases, everything is stacked against the consumer. It's a pretense, it's a legal fiction, that there are remedies."
Instagram, which has 100 million users, allows consumers to tweak the photos they take on their smartphones and share the images with friends. Facebook acquired Instagram in September for $715 million.
Instagram's take-it-or-leave-it policy pushes the envelope for how social networking companies treat user privacy issues, said Marc Rotenberg, the executive director of the Electronic Privacy Information Center.
"I think Facebook is probably using Instagram to see how far it can press this advertising model," said Rotenberg. "If they can keep a lot of users, then all those users have agreed to have their images as part of advertising.
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