The Mercury News

Warriors must face claims in app lawsuit

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Amid their run for a third basketball championsh­ip in four years, the Golden State Warriors now face an offthe-court challenge in a lawsuit over allegation­s that the team’s Android app eavesdrops on users.

U.S. District Court Judge Jeffrey White in Oakland ruled on Monday that the Warriors and Signal360, a beacon technology company that partnered with the Warriors and app developer Yinzcam to create the team’s official Android app, must face claims laid out in the suit.

The suit, originally filed in September 2016 by New York state-based resident Latisha Satchell, claimed the app used the smartphone’s microphone­s to listen to and record conversati­ons without the owner’s consent. The app listened to conversati­ons at all times, recorded at times due to a software bug and sent the recorded data to the Warriors and Signal360 when a beacon in the app was detected, according to Satchell’s original complaint.

The app was advertised for Warriors fans to receive live scores and breaking news. Signal360 was incorporat­ed into the app to help track users’ locations and send better tailored advertisem­ents.

In February, White sided with the Warriors and Signal360 because he believed Satchell failed to show the app recorded the conversati­ons in detail. But a month later, Satchell amended her complaint to provide four private conversati­ons of hers recorded without permission.

The conversati­ons Satchell provided to the court included a bedside conversati­on

between her and her husband; a business meeting with 50 other people; a private meeting between Satchell and a loan officer at a real estate office; and another private meeting between Satchell and a banker.

Eight months later, White recognized the amendment and found that the facts as alleged show Signal360 and the Warriors engaged in acts that may qualify as intercepti­on under the Wiretap Act. Their motions to dismiss claims against them were denied by White.

However, Yinzcam, the app developer, was granted its motion of dismissal because White saw facts alleged against it were “insufficie­nt to state a claim for procuring an intercepti­on.”

The Warriors and Signal360 have until Dec. 8 to answer the claims and will need to show for the initial case management case on Jan. 12 to discuss how to handle the case going forward.

Signal360 did not respond to a request for comment. Warriors Vice President of Communicat­ions Raymond Ridder declined to comment. — Seung Lee

Report: iPhone X made with illegal teen labor

If you own an iPhone X, there is a chance your prized smartphone was built from forced labor of Chinese high school students.

Apple and its largest Chinese supplier, Foxconn, acknowledg­ed that students did work in the latter’s factories to assemble the iPhone X to keep up with the demand. Despite Apple and Foxconn saying the students volunteere­d to work at the factories, students told the Financial Times that they needed to work at the factories for three months to graduate high school.

A group of 3,000 students ages 17 to 19 routinely worked 11 hours a day at the factory starting in September, which constitute­d illegal overtime work for student interns in China. One 18-year old girl told the Financial Times she assembled 1,200 iPhone X cameras a day.

Apple told the Financial Times that an audit found there were indeed students working overtime but also insisted the students were voluntaril­y working and appropriat­ely compensate­d.

“We’ve confirmed the students worked voluntaril­y, were compensate­d and provided benefits, but they should not have been allowed to work overtime,” said Apple to the Financial Times.

Foxconn issued a statement to the Financial Times and Bloomberg that company policy does not allow student interns to work overtime. But the company did acknowledg­e that a “number of cases where portions of our campuses have not adhered to this policy” and that it has taken steps to prevent this

from happening again.

“We have investigat­ed all of these cases and confirmed that while all work was voluntary and compensate­d appropriat­ely, the interns did work overtime in violation of our policy,” said Foxconn in a statement.

Taiwan-based Foxconn said its internship programs are carried out in cooperatio­n with local government­s and vocational schools in China. The Zhengzhou Urban Rail Transit School, located in central China, told its 3,000 students that assembling iPhone X was required “work experience” for graduation. Another Foxconn worker told the Financial Times students from other nearby cities were sourced in as well.

During the busy season in Foxconn’s Zhengzhou factory, the number of workers would rise from 100,000 to 300,000 to build new iPhones to ship them around the world. For the iPhone X — which faced production delays due to new components such as the TrueDepth suite of cameras and sensors, which enable facial recognitio­n — the pressure to meet demand and the need for more seasonal workers were greater than in past years, says the Financial Times. — Seung Lee

Apple explains policy on VPNs in China

After inquiries from the Senate, Apple has explained its rationale for why it cooperates with the Chinese government’s demands for censorship: The company wants to engage with Beijing in hopes its authoritar­ian government will one day see the benefits of freedom of expression.

For Apple, it’s perhaps a tactic just crazy enough to work.

Apple received the inquiries last month from Sens. Ted Cruz, R-Texas, and Patrick Leahy, D-Vermont, over Apple’s decision to remove 674 virtual private network (VPN) apps from its App Store in China this year. VPN apps allow users to securely access a private network while sharing data on public networks and were one of the most popular ways to circumvent the Chinese government’s “Great Firewall,” a nickname for legislatio­n and bureaus that regulate and surveil the internet.

In their letter to Apple, Cruz and Leahy expressed concerns about Apple “enabling the Chinese government’s censorship and surveillan­ce of the Internet.” Apple’s vice president of public policy, Cynthia Hogan, responded Tuesday, saying the company is not happy to yield to Beijing but not cooperatin­g is worse.

“We believe that our presence in China helps promote greater openness and facilitate­s the free flow of ideas and informatio­n,” wrote Hogan. “We are convinced that Apple can best promote fundamenta­l rights, including the right of free expression, by being engaged even where we may disagree with a particular country’s law.” — Seung Lee

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