Director defends 'Zero Dark Thirty' torture scenes


LOS ANGELES (AP) — Director Kathryn Bigelow defends torture scenes in her Oscar-nominated film "Zero Dark Thirty," saying torture was an undeniable part of the hunt for Osama bin Laden after the terrorist attacks on Sept. 11, 2001.


The film opens by declaring it's based on firsthand accounts of actual events.


But Sen. Dianne Feinstein, D-Calif., and other lawmakers criticized the film as misleading for suggesting torture led to the location of bin Laden. Lawmakers asked Sony Pictures to attach a disclaimer that the film is fictional.


"Experts disagree sharply on the facts and particulars of the intelligence hunt, and doubtlessly that debate will continue," Bigelow wrote in the Los Angeles Times on Wednesday.


The comments were Bigelow's most explicit reaction to the controversy so far.


"As for what I personally believe, which has been the subject of inquiries, accusations and speculation, I think Osama bin Laden was found due to ingenious detective work," she continued. "Torture was, however, as we all know, employed in the early years of the hunt. That doesn't mean it was the key to finding bin Laden. It means it is a part of the story we couldn't ignore."


"War, obviously, isn't pretty, and we were not interested in portraying this military action as free of moral consequences," she added.


Bigelow wrote that torture was part of the story and the backlash may be misdirected.


"I do wonder if some of the sentiments alternately expressed about the film might be more appropriately directed at those who instituted and ordered these U.S. policies, as opposed to a motion picture that brings the story to the screen," she wrote.


Last week, Sony Pictures co-chair Amy Pascal responded forcefully to a "Zero Dark Thirty" anti-Oscar campaign waged by Ed Asner and other Hollywood actors, saying "to punish an artist's right of expression is abhorrent."


Bigelow and "Zero Dark Thirty" screenwriter Mark Boal had said previously that they "depicted a variety of controversial practices and intelligence methods that were used in the name of finding bin Laden.


"The film shows that no single method was necessarily responsible for solving the manhunt, nor can any single scene taken in isolation fairly capture the totality of efforts the film dramatizes," they said.


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Well: Exercise Can Boost Flu Shot's Potency

Phys Ed

Gretchen Reynolds on the science of fitness.

As this year’s influenza season continues to take its toll, those procrastinators now hurrying to get a flu shot might wish to know that exercise may amplify the flu vaccine’s effect. And for maximal potency, the exercise should be undertaken at the right time and involve the right dosage of sweat, according to several recent reports.

Flu shots are one of the best ways to lessen the risk of catching the disease. But they are not foolproof. By most estimates, the yearly flu vaccine blocks infection 50 to 70 percent of the time, meaning that some of those being inoculated gain little protection. The more antibodies someone develops, the better their protection against the flu, generally speaking. But for some reason, some people’s immune systems produce fewer antibodies to the influenza virus than others’ do.

Being physically fit has been found in many studies to improve immunity in general and vaccine response in particular. In one notable 2009 experiment, sedentary, elderly adults, a group whose immune systems typically respond weakly to the flu vaccine, began programs of either brisk walking or a balance and stretching routine. After 10 months, the walkers had significantly improved their aerobic fitness and, after receiving flu shots, displayed higher average influenza antibody counts 20 weeks after a flu vaccine than the group who had stretched.

But that experiment involved almost a year of dedicated exercise training, a prospect that is daunting to some people and, in practical terms, not helpful for those who have entered this flu season unfit.

So scientists have begun to wonder whether a single, well-calibrated bout of exercise might similarly strengthen the vaccine’s potency.

To find out, researchers at Iowa State University in Ames recently had young, healthy volunteers, most of them college students, head out for a moderately paced 90-minute jog or bike ride 15 minutes after receiving their flu shot. Other volunteers sat quietly for 90 minutes after their shot. Then the researchers checked for blood levels of influenza antibodies a month later.

Those volunteers who had exercised after being inoculated, it turned out, exhibited “nearly double the antibody response” of the sedentary group, said Marian Kohut, a professor of kinesiology at Iowa State who oversaw the study, which is being prepared for publication. They also had higher blood levels of certain immune system cells that help the body fight off infection.

To test how much exercise really is required, Dr. Kohut and Justus Hallam, a graduate student in her lab, subsequently repeated the study with lab mice. Some of the mice exercised for 90 minutes on a running wheel, while others ran for either half as much time (45 minutes) or twice as much (3 hours) after receiving a flu shot.

Four weeks later, those animals that, like the students, had exercised moderately for 90 minutes displayed the most robust antibody response. The animals that had run for three hours had fewer antibodies; presumably, exercising for too long can dampen the immune response. Interestingly, those that had run for 45 minutes also had a less robust response. “The 90-minute time point appears to be optimal,” Dr. Kohut says.

Unless, that is, you work out before you are inoculated, another set of studies intimates, and use a dumbbell. In those studies, undertaken at the University of Birmingham in England, healthy, adult volunteers lifted weights for 20 minutes several hours before they were scheduled to receive a flu shot, focusing on the arm that would be injected. Specifically, they completed multiple sets of biceps curls and side arm raises, employing a weight that was 85 percent of the maximum they could lift once. Another group did not exercise before their shot.

After four weeks, the researchers checked for influenza antibodies. They found that those who had exercised before the shot generally displayed higher antibody levels, although the effect was muted among the men, who, as a group, had responded to that year’s flu vaccine more robustly than the women had.

Over all, “we think that exercise can help vaccine response by activating parts of the immune system,” said Kate Edwards, now a lecturer at the University of Sydney, and co-author of the weight-training study.

With the biceps curls, she continued, the exercises probably induced inflammation in the arm muscles, which may have primed the immune response there.

As for 90 minutes of jogging or cycling after the shot, it probably sped blood circulation and pumped the vaccine away from the injection site and to other parts of the body, Dr. Kohut said. The exercise probably also goosed the body’s overall immune system, she said, which, in turn, helped exaggerate the vaccine’s effect.

But, she cautions, data about exercise and flu vaccines is incomplete. It is not clear, for instance, whether there is any advantage to exercising before the shot instead of afterward, or vice versa; or whether doing both might provoke the greatest response – or, alternatively, be too much and weaken response.

So for now, she says, the best course of action is to get a flu shot, since any degree of protection is better than none, and, if you can, also schedule a visit to the gym that same day. If nothing else, spending 90 minutes on a stationary bike will make any small twinges in your arm from the shot itself seem pretty insignificant.

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You're the Boss Blog: Ten Hard-Earned Lessons About Selling a Business

My last three posts have focused on Holly Hunter and her business sale that went bad. I want to thank Ms. Hunter for allowing her story to be told. Although she made some mistakes, she was willing to talk about them in the hope that others might learn from her experience.

But those mistakes are hardly unique to Ms. Hunter. In fact, many business owners have had similar experiences. The most important step owners can take when they think about selling their business is to make sure they understand the sales process. Once you start down the road, you’ll enter an alternate universe where the unexpected becomes the norm. Dealing with the unexpected is easier if you follow best practices.

If you decide the time is right to sell, here are 10 lessons that owners like Ms. Hunter have learned the hard way.

1. Hire an experienced team of advisers. You have spent years building your business, and you usually get only one shot at selling it. Having a team of advisers — an accountant, a business intermediary or broker, an attorney, a financial adviser and a business generalist — who have been down this road many times is crucial.

2. Use an intermediary to sell your business. Going through the sale of your business can be very difficult. You need an experienced intermediary or broker who will speak with the other party and represent you and only you in the sales process. Sellers who represent themselves almost always make mistakes that cost them time and money. This is not a time to cut corners in professional fees.

3. Make sure your advisers work only for you. As we saw with Ms. Hunter, her business broker was representing both sides of the deal. When this happens, the broker usually ends up working for no one — and problems occur.

4. Accept that the person who buys your business will change it. Most buyers have their own ideas about how things should be done. If your sale involves an earnout or seller financing, you want to make sure the seller’s actions won’t limit your ability to get paid any deferred money that is owed you.

5. Make sure you tie your most important employees to the business. Have them sign employee agreements that can be transferred to the new owner. The new owners may want you to stick around for a transition period, but they will want your main people to stay longer. Making sure they stay and don’t disrupt the company while it’s in transition is crucial to a successful sale.

6. Be sure your business continues to run well throughout the sales process — even when the sale becomes an all-consuming project. If sales fall through and the company falters while the owner is selling the company, it can hurt or even ruin a sale.

7. Be prepared for due diligence. It can feel like a colonoscopy and its real purpose may be to help buyers reduce the price they have to pay, but there is no getting around it. When businesses are getting ready to sell, I recommend  that they go through a mock due diligence process. This can help you figure out where your company’s weak points are and allow you to prepare responses for a potential buyer.

8. Get a personal financial plan done before trying to sell. One of the most common reasons seller’s remorse exists is that sellers often find out that they didn’t end up with enough money to reach their goals. A financial plan will help you determine how much money you need and set reasonable expectations.

9. Know what you will do with yourself after you sell the business. I’ve seen many sellers lose their way in life when they have no place to go. Before the sale, you were most likely spending between 40 and 60 hours a week at your business. You need to find a way to fill that time meaningfully.

10. Make sure you follow best practices even for the little things. Start, for example, by making all interested parties sign a non-disclosure agreement that has teeth. If possible, have an offering memorandum produced. Have a letter of intent in place with your buyer before you start to show sensitive corporate materials. Have a purchase and sales agreement that lays out the terms of the sale but also protects you after the sale from being sued by the buyer, the government or regulatory agencies.

Following the items above does not guarantee a happy outcome. But if you know what you’re getting into and have taken the time to follow best practices, you’ll be more likely to get the result you want. Remember, at the end of the day, it’s about using common sense. As we’ve seen over the last several weeks, it’s easy for common sense to go out the window in a business sale.

What have I missed in this list? What do you think are the most important things to check off as you sell a business?

Josh Patrick is a founder and principal at Stage 2 Planning Partners, where he works with private business owners on creating personal and business value.

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Schumer Says He’s Satisfied With Hagel on Mideast


WASHINGTON — In a boon for the Obama administration’s efforts to advance the nomination Chuck Hagel as secretary of defense, Senator Charles E. Schumer of New York, the first senator to meet privately with Mr. Hagel, told President Obama Tuesday that he is optimistic that he could vote for Mr. Hagel’s confirmation based on his grilling of Mr. Hagel on a variety of issues pertaining to Israel and Iran.


Mr. Schumer, the most influential Jewish member of the Senate, said he would await Senate confirmation hearings before making his final decision on Mr. Hagel, a Republican and former senator who was nominated last week. But after a 90-minute meeting in the West Wing of the White House on Monday, Mr. Schumer appeared to be mollified on a number of concerns he has with some votes Mr. Hagel made while serving in the Senate and myriad comments he has subsequently made regarding the nuclear threat of Iran and other matters.


“Based on several key assurances provided by Senator Hagel,” Mr. Schumer said in a prepared statement, “I am currently prepared to vote for his confirmation. I encourage my Senate colleagues who have shared my previous concerns to also support him.” Mr. Schumer is likely to have influence over many of his Senate colleagues, particularly Democrats, who have been fretting over the nomination. He called Mr. Hagel Tuesday morning to let him know he was prepared to support him.


While Mr. Schumer’s nod is unsurprising, it may be helpful to Mr. Hagel’s pursuit of the defense job, effectively neutralizing the idea that he is somehow anti-Israel. His nomination has been met with suspicion, and even outright hostility, among Republicans and Democrats who are strongly aligned with pro-Israel groups.


Mr. Schumer himself appeared cool to the prospect of Mr. Hagel’s nomination in December interview on NBC’s “Meet the Press.”


Of deepest concern to Mr. Schumer and many Israel advocacy groups, are Mr. Hagel’s positions on the nuclear threat posed by Iran, particularly his suggestions in the past that a military strike against Iran would be counterproductive. It is a position that is out of step with the Obama administration, which became increasingly hawkish on Iran during the 2012 campaign.


“On Iran, Senator Hagel rejected a strategy of containment and expressed the need to keep all options on the table in confronting that country,” Mr. Schumer said. “But he didn’t stop there. In our conversation, Senator Hagel made a crystal-clear promise that he would do ‘whatever it takes’ to stop Tehran from obtaining nuclear weapons, including the use of military force.”


As a senator from Nebraska, Mr. Hagel voted against several rounds of sanctions against Iran that ultimately passed the Senate, citing unilateral sanctions are ineffective. On this matter too, Mr. Schumer seemed to find comfort. “Senator Hagel clarified that he ‘completely’ supports President Obama’s current sanctions against Iran,” Mr. Schumer said. “He added that further unilateral sanctions against Iran could be effective and necessary.”


On nearly every other issue that Mr. Schumer brought up with Mr. Hagel — his views on the militant Islamist groups Hezbollah and Hamas, his prior comments about gays, his use of the term “Jewish lobby” to refer to Israel advocacy groups — all seemed to be tamped down in the meeting.


“I know some will question whether Senator Hagel’s assurances are merely attempts to quiet critics as he seeks confirmation to this critical post,” Mr. Schumer said. “But I don’t think so. Senator Hagel realizes the situation in the Middle East has changed, with Israel in a dramatically more endangered position than it was even five years ago.”


On Sunday, Mr. Hagel got a resounding vote of support from a fellow Republican moderate, Colin L. Powell, the former secretary of state, who said on the NBC News program “Meet the Press” that Mr. Hagel was “superbly qualified.” Mr. Powell’s remarks could well influence many Republicans who have expressed skepticism about his confirmation, although some, like Senator John McCain of Arizona, are almost certain to continue to express opposition.


Mr. Hagel offered to discuss these matters with Mr. Schumer over the phone last week, but the senator wanted to hold out for a discussion in person. Mr. Schumer, who appears to enjoy his role in the catbird seat on the Hagel matter, will also likely help to tamp down criticisms from some groups aligned with Israel, who are not eager to have a fight with the newly re-elected president.


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AP NewsBreak: Rewrite for National Book Awards


NEW YORK (AP) — The National Book Awards are getting a rewrite.


New rules announced Tuesday include a "long list" of 10 nominees to be offered for each of the four competitive categories before being narrowed to the traditional five finalists. And the pool of judges will be expanded beyond writers to include critics, booksellers and librarians.


The changes are the most extensive since the mid-1990s for the awards, presented each fall by the National Book Foundation, as the major New York publishers attempt to broaden their appeal. The publishers have been unhappy with the selection of fiction finalists in recent years and the omission of such high-profile works as Jonathan Franzen's "Freedom" and Marilynne Robinson's "Gilead."


The expansion to 10 mirrors a recent change in the Oscars, but foundation board members said they had been looking to Britain's popular Man Booker Prize as a model.


"We just basically borrowed some of their ideas," said foundation board vice president and Grove/Atlantic CEO Morgan Entrekin, citing the Bookers' use of long lists and non-writers as judges. "The Bookers do a fantastic job at getting a conversation going about good books. With the long list, for instance, you get this conversation bubbling up about what made it and then about what doesn't get on the short list."


Entrekin said that some of the recent National Book Award fiction lists, which usually get the most attention, had been "very eccentric" and that allowing critics and booksellers as judges could open up the process. The results, he thinks, will be a "little more mainstream," and less likely to include "a collection of stories by a university press."


"I think there are plenty of awards that recognize those kinds of books," Entrekin said. "If one of those books is truly the best book of the year, that's no problem. But it seemed like the judges had been recognizing lesser-known authors for the sake of choosing lesser-known authors."


The revisions cap a year-long process during which the book foundation hired an independent consulting firm to discuss the awards with booksellers, editors, writers and others in the literary community. Some ideas were rejected, such as allowing celebrities to be judges. The board also voted not to limit the number of books a publisher could submit, a suggested solution to the complaint that the time commitment needed to read hundreds of new works had made it difficult to find judges.


"We're asking people to read a lot of books, but some of these librarians and booksellers we hope to bring in are reading a lot of books anyway," Entrekin said.


"Our mission is to celebrate literature and expand its audience and we chose the path most consistent with our mission," said David Steinberger, chairman of the foundation's board and CEO of the Perseus Books Group.


This fall's long list will be announced Sept. 12, followed by the short list on Oct. 15 and the winners on Nov. 20.


The National Book Awards have changed several times since being founded in 1950. Winners, who have included William Faulkner, Ralph Ellison and Saul Bellow, were originally announced in advance of the ceremony. The number of categories and nominees have expanded and contracted, with 17 finalists for nonfiction in 1957 and more than 20 competitive categories in the early 1980s.


Awards for translation, "contemporary thought" and first novel have been added, then dropped. For a brief time, even the awards' name was changed, to the American Book Awards.


The format had been stable in recent years: competitive awards given for fiction, nonfiction, poetry and young people's literature, and five finalists announced for each category, picked by five-judge panels of writers that change annually. Over the past two decades, the National Book Foundation has attempted to draw more attention to the actual ceremony, bringing in such celebrities as Steve Martin and Andy Borowitz to host and moving the venue from a Marriott hotel ballroom to the more upscale Cipriani Wall Street.


Like the Academy Awards or the Grammys, the National Book Awards ceremony is an industry's showcase for itself, a balance between rewarding excellence and increasing sales that ideally achieves both. Major publishers are directly invested. They're represented on the board of the National Book Foundation and pay thousands of dollars for tables at the ceremony.


Ironically, publishers were happy with the fiction nominees of 2012, the last group to be voted on under the old rules. The finalists included a mix of well-known writers (Louise Erdrich, Junot Diaz, Dave Eggers) and debut novelists (Ben Fountain and Kevin Powers).


For years, foundation executive director Harold Augenbraum has issued oral instructions to judges that they should not pick books based on the publisher or commercial success or the author's reputation. In 2012, the point was reinforced in written guidelines that stated "fame or obscurity, small press or large, should have no bearing" on their decisions.


"I have no idea if that made any difference," Augenbraum said. "In fact, one judge thought the rules meant not to overlook the smaller presses."


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Well: How to Go Vegan

When I first heard former President Bill Clinton talk about his vegan diet, I was inspired to make the switch myself. After all, if a man with a penchant for fast-food burgers and Southern cooking could go vegan, surely I could too.

At the grocery store, I stocked up on vegan foods, including almond milk (that was the presidential recommendation), and faux turkey and cheese to replicate my daughter’s favorite sandwich. But despite my good intentions, my cold-turkey attempt to give up, well, turkey (as well as other meats, dairy and eggs) didn’t go well. My daughter and I couldn’t stand the taste of almond milk, and the fake meat and cheese were unappealing.

Since then, I’ve spoken with numerous vegan chefs and diners who say it can be a challenge to change a lifetime of eating habits overnight. They offer the following advice for stocking your vegan pantry and finding replacements for key foods like cheese and other dairy products.

NONDAIRY MILK Taste all of them to find your favorite. Coconut and almond milks (particularly canned coconut milk) are thicker and good to use in cooking, while rice milk is thinner and is good for people who are allergic to nuts or soy. My daughter and I both prefer the taste of soy milk and use it in regular or vanilla flavor for fruit smoothies and breakfast cereal.

NONDAIRY CHEESE Cheese substitutes are available under the brand names Daiya, Tofutti and Follow Your Heart, among others, but many vegans say there’s no fake cheese that satisfies as well as the real thing. Rather than use a packaged product, vegan chefs prefer to make homemade substitutes using cashews, tofu, miso or nutritional yeast. At Candle 79, a popular New York vegan restaurant, the filling for saffron ravioli with wild mushrooms and cashew cheese is made with cashews soaked overnight and then blended with lemon juice, olive oil, water and salt.

THINK CREAMY, NOT CHEESY Creaminess and richness can often be achieved without a cheese substitute. For instance, Chloe Coscarelli, a vegan chef and the author of “Chloe’s Kitchen,” has created a pizza with caramelized onion and butternut squash that will make you forget it doesn’t have cheese; the secret is white-bean and garlic purée. She also offers a creamy, but dairy-free, avocado pesto pasta. My daughter and I have discovered we actually prefer the rich flavor of butternut squash ravioli, which can be found frozen and fresh in supermarkets, to cheese-filled ravioli.

NUTRITIONAL YEAST The name is unappetizing, but many vegan chefs swear by it: it’s a natural food with a roasted, nutty, cheeselike flavor. Ms. Coscarelli uses nutritional yeast flakes in her “best ever” baked macaroni and cheese (found in her cookbook). “I’ve served this to die-hard cheese lovers,” she told me, “and everyone agrees it is comparable, if not better.”

Susan Voisin’s Web site, Fat Free Vegan Kitchen, offers a nice primer on nutritional yeast, noting that it’s a fungus (think mushrooms!) that is grown on molasses and then harvested and dried with heat. (Baking yeast is an entirely different product.) Nutritional yeasts can be an acquired taste, she said, so start with small amounts, sprinkling on popcorn, stirring into mashed potatoes, grinding with almonds for a Parmesan substitute or combining with tofu to make an eggless omelet. It can be found in Whole Foods, in the bulk aisle of natural-foods markets or online.

BUTTER This is an easy fix. Vegan margarines like Earth Balance are made from a blend of oils and are free of trans fats. Varieties include soy-free, whipped and olive oil.

EGGS Ms. Coscarelli, who won the Food Network’s Cupcake Wars with vegan cupcakes, says vinegar and baking soda can help baked goods bind together and rise, creating a moist and fluffy cake without eggs. Cornstarch can substitute for eggs to thicken puddings and sauces. Vegan pancakes are made with a tablespoon of baking powder instead of eggs. Frittatas and omelets can be replicated with tofu.

Finally, don’t try to replicate your favorite meaty foods right away. If you love a juicy hamburger, meatloaf or ham sandwich, you are not going to find a meat-free version that tastes the same. Ms. Voisin advises new vegans to start slow and eat a few vegan meals a week. Stock your pantry with lots of grains, lentils and beans and pile your plate with vegetables. To veganize a recipe, start with a dish that is mostly vegan already — like spaghetti — and use vegetables or a meat substitute for the sauce.

“Trying to recapture something and find an exact substitute is really hard,” she said. “A lot of people will try a vegetarian meatloaf right after they become vegetarian, and they hate it. But after you get away from eating meat for a while, you’ll find you start to develop other tastes, and the flavor of a lentil loaf with seasonings will taste great to you. It won’t taste like meat loaf, but you’ll appreciate it for itself.”

Ms. Voisin notes that she became a vegetarian and then vegan while living in a small town in South Carolina; she now lives in Jackson, Miss.

“If I can be a vegan in these not-quite-vegan-centric places, you can do it anywhere,” she said. “I think people who try to do it all at once overnight are more apt to fail. It’s a learning process.”


What are your tips for vegan cooking and eating? Share your suggestions on ingredients, recipes and strategies by posting a comment below or tweeting with the hashtag #vegantips.

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DealBook: Alibaba's Founder to Give Up C.E.O. Title, but Will Remain Chairman

After 14 years of building up the Alibaba Group into one of the biggest Internet companies in the world, Jack Ma is taking a step back from the chief executive role of the Chinese e-commerce giant.

But Mr. Ma isn’t leaving entirely; he will hold on to the role of executive chairman, he told DealBook in an interview on Monday. He plans to name his successor when his title change becomes effective on May 10.

He won’t be the only one to hand over some of the company’s reins. Mr. Ma said that most of Alibaba’s leaders “born in the 1960s” will pass their leadership responsibilities to younger colleagues, born in the 1970s and 1980s.

“We believe that they understand the future better than us, and then have a better chance of seizing the future,” he wrote in an e-mail to employees explaining his change in duties.

The shift is the biggest change yet at Alibaba in some time, as it continues to ready itself for the next chapter of its existence. Last week, the company said that it was cleaving itself into 25 smaller divisions — to give managers more flexibility.

And it follows the transformative deal that Alibaba struck with Yahoo last year, in which the Chinese company agreed to buy back about half of the stake in itself held by Yahoo, its American partner. Alibaba had long sought to repurchase the shares to help regain control over its corporate destiny.

For Mr. Ma, the decision to step back from day-to-day management was borne of several reasons. One of them was personal: the job is increasingly tiring.

“I’m 48. I’m no longer young enough to run such a fast-growing business,” Mr. Ma said in the interview. “When I was 35, I was so energetic and fresh-thinking. I had nothing to worry about.”

Come May, Mr. Ma will slide into the role of executive chairman, which he said would let him focus on broad strategic issues, as well as corporate development and social responsibility.

It is a move that the entrepreneur said had been in the works for some time. He has been training “a few candidates” among the younger generation for the chief executive position.

Speculation about who will take over is likely to focus on the heads of Alibaba’s biggest businesses, including Alibaba.com, an online market for small businesses; Taobao, an enormous consumer shopping site; and Alipay, an online payment platform.

Mr. Ma’s early departure will give his replacement time to grow into the role, Mr. Ma said. That could be important when Alibaba finally goes public, sometime down the road. Mr. Ma added that the exact timing or other details of an initial offering haven’t been determined.

Until then, Mr. Ma will remain a powerful figure within the company he founded.

“I will still be very active,” he said. “It is impossible for me to retire.”

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Bits Blog: Security Firm Discovers Cyber-Spy Campaign

SAN FRANCISCO — A Russian cybersecurity company issued a report on Monday saying that it had identified a sophisticated cyberespionage campaign that has been in operation since 2007. The spy campaign targeted a range of government and diplomatic organizations, mostly in Eastern Europe and Central Asia, but also in Western Europe and North America.

Kaspersky Lab, the firm behind the discovery, said that digital clues suggested that the perpetrators were Russian-speaking, but that the campaign did not appear to be the work of a nation state. However, as with a number of other alarming recent reports on computer spying, Kasperky’s report offered few details that would allow for independent verification and did not specifically call out the names of the organizations affected.

In an interview, Kurt Baumgartner, a senior security researcher at Kaspersky Lab, said that among the “several hundreds” of victim organizations were “embassies, consulates and trade centers.” The vast majority of infected machines were based in Russia — where Kaspersky identified 38 infected machines — followed by Kazakhstan, where 16 infected machines were identified. Six infected machines were found in the United States.

Mr. Baumgartner described the campaign as a “sophisticated and very patient multiyear effort” to extract geopolitical and confidential intelligence from computers, network devices like routers and switches, and smartphones. The malware was designed to extract files, e-mails and passwords from PCs, record keystrokes and take screenshots, and steal a user’s Web browsing history on Chrome, Firefox, Internet Explorer and Opera browsers. It could also pilfer contacts, call histories, calendars, text messages and browsing histories from smartphones, including iPhones, Windows, Nokia, Sony, and HTC phones. And it collected information about installed software, including Oracle’s database software, remote administration software and instant messaging software, like that made by Mail.Ru, a Russian e-mail and instant messaging service.

But Kaspersky said what set the campaign apart was the fact that the attackers engineered their malware to steal files that have been encrypted with a classified software, called Acid Cryptofiler, that is used by several countries in the European Union and NATO to encrypt classified information.

Researchers discovered several Russian words embedded in the malware’s code, suggesting the attackers are of Russian-speaking origin. For instance, the word “Zakladka” appears in the malware, which, in Russian and Polish, can mean “bookmark.” It is also a Russian slang term meaning “undeclared functionality” in computer software or hardware. Intriguingly, Kaspersky’s researchers said that, in Russian, it also refers to a “microphone embedded in a brick of the embassy building.” (The United States and Russia have a history of bugging each other’s embassies.)

But as sophisticated as the malware was, Kaspersky said the methods attackers used to infect systems were not. The researchers infected machines with a basic “spearphishing” attack, in which they sent malicious e-mails to people within targeted organizations that contained malicious Microsoft Excel or Microsoft Word documents. Once opened, attackers were given full access to victims’ machines through well-known security exploits that were previously used in campaigns by Chinese hackers to spy on Tibetan activists and military and energy sector targets in Asia.

Mr. Baumgartner said the attackers either used well-known exploits out of “laziness or as a clever way to hide their tracks.”

The firm said attackers created more than 60 domain names and used several server locations, mainly in Germany and Russia, to manage the network of infected machines. But it said those servers were “proxies” designed to hide the true “mother ship” command and control server.

Asked why Kaspersky decided not to identify the targets of the attack by name, Mr. Baumgartner said that Kaspersky’s investigation was still in place. 

Cybersecurity has become a significant and growing concern globally, with hackers gaining access to private corporate and military secrets, and intellectual property. Last year, Kaspersky Lab discovered several state-sponsored computer viruses including Flame, a sophisticated computer virus that spied on computers in Iran, and Gauss, a separate virus that targeted Lebanese banks. The firm said it believed both viruses were sponsored by the same nation states that created Stuxnet, a sophisticated computer virus that The New York Times has reported was a joint effort by the United States and Israel.

But Kaspersky has been less forthcoming on viruses originating in its own back yard, in Russia and neighboring states, where Russian-speaking criminal syndicates control a third of the estimated $12 billion global cybercrime market, according to the Russian security firm Group-IB.

But Kaspersky’s latest discovery could signal a turning point. The firm nicknamed the campaign by Russian speakers “Operation Red October” — Rocra for short — because it was first tipped off to the campaign in October, after one of its partners passed Kaspersky a sample of the malware used. Since then, the firm has discovered over 1,000 “modules” or components of the malware, with the earliest crafted in 2007 and the most recent component having been built as recently as last week.

“The attackers managed to stay in the game for over five years and evade detection of most antivirus products while continuing to exfiltrate what must be hundreds of terabytes by now,” Kaspersky said in its report.

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BlackBerry service outage hits Europe [updated]







BlackBerry subscribers using Vodafone in Europe, the Middle East and Africa were hit with a service outage on Friday morning that left many with no access to data services. Vodafone confirmed the outage to ZDNet but did not indicate what might have caused the service interruption. “We are aware that some BlackBerry customers are experiencing issues,” Vodafone said in a statement. “Vodafone is working closely with Research in Motion (RIMM) to restore full service as soon as possible.” Email, BlackBerry Messenger and other key services were all impacted by the outage, and Vodafone has subsequently told TechCrunch that service is in the process of being restored.


[More from BGR: How computer scientists are trying to stop smartphones and tablets from breaking the Internet]






UPDATE: RIM has issued a statement confirming that the issue lies with Vodafone and it is supporting the carrier’s efforts to restore service:


[More from BGR: ‘Apple is done’ and Surface tablet is cool, according to teens]



All BlackBerry services are operating normally but we are aware that a wider Vodafone service issue is impacting some of our BlackBerry customers in Europe, Middle East and Africa. We are supporting Vodafone’s efforts to resolve the issue as soon as possible.



This article was originally published on BGR.com


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'Argo,' 'Les Mis' win at Golden Globes


BEVERLY HILLS, Calif. (AP) — Ben Affleck got some vindication and Jodie Foster made a revelation at the Golden Globe Awards.


Affleck's "Argo" earned him best motion picture drama and director honors at Sunday night's ceremony. The awards came just a few days after Affleck was surprisingly omitted from the best-director category at the Academy Award nominations. Affleck also stars in the real-life drama as the CIA operative who orchestrated a daring rescue of six American embassy employees during the 1979 Iranian hostage crisis.


These wins seem to shake up the Oscar race, in which Steven Spielberg's stately, historical epic "Lincoln" was looking like a juggernaut. Despite seven Golden Globe nominations, "Lincoln" earned just one award: best actor for Daniel Day-Lewis' intense, richly detailed portrayal of Abraham Lincoln as he fought for passage of the 13th Amendment, abolishing slavery. Spielberg's film heads into the Feb. 24 Academy Awards with a leading 12 nominations.


The other big winner of the Hollywood Foreign Press Association's honors was "Les Miserables." Based on the international musical sensation and Victor Hugo's novel of strife and redemption in 19th century France, it won best picture musical or comedy, best actor for Hugh Jackman and best supporting actress for Anne Hathaway.


"Honestly, I would have played a musket, so I'm thrilled I got to sing a really good song," Hathaway joked backstage. She belts out the dramatic "I Dreamed a Dream" as the doomed prostitute Fantine.


But perhaps the biggest news of the night was from Foster, who came out without really coming out and suggested she was retiring from acting but then backpedaled a bit backstage. Foster was this year's recipient of the Cecil B. DeMille Lifetime Achievement Award, which is announced beforehand and is usually a pretty respectful and predictable part of the evening.


But the 50-year-old Oscar-winner for "The Silence of the Lambs" and "The Accused," who's been protective of her private life and reluctant to discuss her sexual orientation, used this opportunity to speak from the heart in a rambling and emotional speech that confirmed what long had been an open secret. The veteran actress seized control of what is every year a noisy, boozy ballroom; the crowd of A-listers quickly quieted down as it became apparent that she had something serious and important to say.


She was coy at first, suggesting she had a big announcement that would make her publicist nervous. (At this point, the audio inexplicably dropped out of the NBC broadcast, even though nothing off-color was said.)


Then she stated: "I'm just going to put it out there, loud and proud ... I am, uh, single," pausing for dramatic effect before that last word. "I hope you're not disappointed that there won't be a big coming-out speech tonight. I already did my coming-out about a thousand years ago back in the Stone Age."


She also made it sound as if this would be her last time on stage, but clarified for reporters afterward: "I could never stop acting. You'd have to drag me behind a team of horses. I'd like to be directing tomorrow. I'm more into it than I have ever been."


Among the other multiple winners of the night, "Django Unchained," Quentin Tarantino's spaghetti Western-blaxploitation mashup, earned two awards: for supporting actor Christoph Waltz as a charismatic bounty hunter and for Tarantino's script. The writer-director thanked his friends for letting him read scenes to them as he works through his scripts.


"You guys don't know how important you are to my process," he said. But he added: "I don't want input. I don't want you to tell me if I'm doing anything wrong. Heavens forbid."


"Zero Dark Thirty," which also has been a major contender throughout awards season, earned Jessica Chastain a best-actress Globe for her portrayal of a driven CIA operative at the center of the hunt for Osama bin Laden. That film's director, Kathryn Bigelow, also was left out of the best-director category at the Academy Awards even though it's up for best picture — a result of having nine best-picture nominees and only five best-director slots.


Looking ahead to how the wins for "Argo" might change the Oscar race, Affleck said backstage he tries not to handicap those kinds of things.


"We got nominated for seven Oscars," he told reporters. "If you can't be happy with that, your prospects for long-term happiness are pretty dim.


"I also didn't get the acting nomination," he added, getting a big laugh. "No one is saying I got snubbed there."


On the television side, "Game Change" and "Homeland" were the big winners with three awards apiece. "Game Change," the made-for-HBO movie about 2008 vice-presidential nominee Sarah Palin, won for best motion picture or miniseries made for television, best actress for Julianne Moore and best supporting actor for Ed Harris' portrayal of John McCain. "Homeland" was named best TV drama series, and its stars Claire Danes and Damian Lewis received the dramatic acting awards.


Co-hosts Tina Fey and Amy Poehler, longtime friends and collaborators, had playfully snarky fun with several members of the audience including Taylor Swift, Day-Lewis, Bigelow and even former President Bill Clinton, who arrived on stage to rock-star applause when he introduced "Lincoln" as one of the best-picture nominees.


Fey and Poehler were also competing against each other for best actress in a TV comedy series, Fey for "30 Rock" and Poehler for "Parks and Recreation."


Neither won. Lena Dunham claimed the comedy series Globe for "Girls."


After that, Fey and Poehler showed up on stage with cocktail glasses, with Fey joking that it was time to start drinking.


"Everyone's getting a little loose now that we're all losers," Poehler said.


Poehler's final words also referred back to the biggest moment of the night. She cracked as she was signing off: "We're going home with Jodie Foster!"


___


AP Entertainment Writers Anthony McCartney and Beth Harris contributed to this report.


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