Defiant Assad pledges to continue fighting

BEIRUT (AP) — A defiant Syrian President Bashar Assad rallied a chanting and cheering crowd Sunday to fight the uprising against his authoritarian rule, dismissing any chance of dialogue with "murderous criminals" that he blames for nearly two years of violence that has left 60,000 dead.
In his first public speech in six months, Assad laid out terms for a peace plan that keeps himself in power, ignoring international demands to step down and pledging to continue the battle "as long as there is one terrorist left" in Syria.
"What we started will not stop," he said, standing at a lectern on stage at the regal Opera House in central Damascus — a sign by the besieged leader that he sees no need to hide or compromise even with the violent civil war closing in on his seat of power in the capital.
The theater was packed with his supporters who interrupted the speech with applause, cheers and occasional fist-waving chants, including "God, Bashar and Syria!"
The overtures that Assad offered — a national reconciliation conference, elections and a new constitution — were reminiscent of symbolic changes and concessions offered previously in the uprising that began in March 2011. Those were rejected at the time as too little, too late.
The government last year adopted a constitution that theoretically allows political parties to compete with Assad's ruling Baath Party. It carried out parliamentary elections that were boycotted by his opponents.
Assad demanded that regional and Western countries must stop funding and arming the rebels trying to overthrow him.
"We never rejected a political solution ... but with whom should we talk? With those who have an extremist ideology, who only understand the language of terrorism? "Or should we with negotiate puppets whom the West brought?" he asked.
"We negotiate with the master, not with the slave," he answered.
As in previous speeches and interviews, he clung to the view that the crisis was a foreign-backed plot and not an uprising against him and his family's decades-long rule.
"Is this a revolution and are these revolutionaries? By God, I say they are a bunch of criminals," he said.
He stressed the presence of religious extremists among those fighting in Syria, calling them "terrorists who carry the ideology of al-Qaida" and "servants who know nothing but the language of slaughter."
He said the fighters sought to transform the country into a "jihad land."
Although he put up a defiant front, Assad laid out the grim reality of the violence, and he spoke in front of a collage of photos of what appeared to be Syrians killed in the fighting.
"We are now in a state of war in every sense of the word," Assad said, "a war that targets Syria using a handful of Syrians and many foreigners. It is a war to defend the nation."
He said Syria will take advice but not dictates from anyone — a reference to outside powers calling on him to step down.
The speech, which was denounced by the West, including the U.S. and Britain, came amid stepped-up international efforts for a peaceful way out of the Syrian conflict. Previous efforts have failed to stem the bloodshed.
U.N.-Arab League envoy Lakhdar Brahimi met Assad last month to push for a peace plan for Syria based on a plan first presented in June at an international conference in Geneva. The proposal calls for an open-ended cease-fire and the formation of a transitional government until new elections can be held and a new constitution drafted.
The opposition swiftly rejected Assad's proposals. Those fighting to topple the regime have repeatedly said they will accept nothing less than his departure, dismissing any kind of settlement that leaves him in the picture.
"It is an excellent initiative that is only missing one crucial thing: His resignation," said Kamal Labwani, a veteran dissident and member of the opposition's Syrian National Coalition umbrella group.
"All what he is proposing will happen automatically, but only after he steps down," Labwani told The Associated Press by telephone from Sweden.
Haitham Maleh, an opposition figure in Turkey, said Assad was offering the initiative because he feels increasingly besieged by advancing rebels.
"How could he expect us to converse with a criminal, a killer, a man who does not abide by the law?" he asked.
Assad has spoken only on rare occasions since the uprising began, and Sunday's speech was his first since June. His last public comments came in an interview in November to Russian TV in which he vowed to "live and die" in Syria.
On Sunday, he seemed equally confident in the ability of his troops to crush the rebellion despite the recent fighting in Damascus.
"He did not come across as a leader under siege, nor as a leader whose regime is on the verge of collapse," said Fawaz A. Gerges, head of the Middle East Center at the London School of Economics.
"He seemed determined that any political settlement must come on his terms, linking those terms with the Syrian national interest as if they are inseparable," he said.
U.S. State Department spokeswoman Victoria Nuland said in a statement that Assad's speech was "yet another attempt by the regime to cling to power and does nothing to advance the Syrian people's goal of a political transition."
British Foreign Secretary William Hague called Assad's speech "beyond hypocritical." In a message posted on his official Twitter feed, Hague said "empty promises of reform fool no one."
European Union foreign policy chief Catherine Ashton's office said in a statement that the bloc will "look carefully if there is anything new in the speech, but we maintain our position that Assad has to step aside and allow for a political transition."
Foreign Minister Ahmet Davutoglu of Turkey said the speech was filled with "empty promises" and repetitive pledges of reform by a leader out of touch with the Syrian people.
"It seems (Assad) has shut himself in his room, and for months has read intelligence reports that are presented to him by those trying to win his favor," Davutoglu told reporters in the Aegean port city of Izmir on Sunday.
Turkey is a former ally of Damascus, and while Ankara first backed Assad after the uprising erupted, it turned against the regime after its violent crackdown on dissent.
Observers said the speech signaled the violence would continue indefinitely as long as both sides lacked the ability to score a victory on the battlefield.
Randa Slim, a research fellow at the New America Foundation in Washington, said Assad's made clear he has no intention of making way for a political transition.
"He sees himself rather as an orchestrator and arbiter of a process to be organized under his control," she said.
The Internet was cut in many parts of Damascus ahead of the address, apparently for security reasons, and some streets were closed.
At the end of his speech, loyalists shouted: "With our blood and souls we redeem you, Bashar!"
As he was leaving the hall, supporters pushed forward and swarmed around him to try to talk to him. Nervous security guards tried to push them away.
Many shouted "Shabiha forever!" — referring to the armed regime loyalists whom rebels have blamed for sectarian killings.
Amid the melee, Assad quickly shook hands with some of them and blew kisses to others.
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Egypt Copts mark Christmas with fear of future

CAIRO (AP) — Egypt's minority Christians were celebrating their first Christmas after the election of an Islamist president and a new pope — and following adoption of a constitution many argue has an Islamist slant.
Christians gathered in Cairo's main cathedral Sunday for Midnight Mass on the eve of Orthodox Christmas led by their new pope. Pope Tawadros II was elected in November to replace longtime Pope Shenouda III, who died in March after 40 years as the leader of the church.
Islamist President Mohammed Morsi called Tawadros with Christmas greetings and sent one of his aides to the Christmas mass.
Concerned for their future and their ancient heritage in Egypt, some Copts are reportedly considering leaving the country.
As Egypt struggles with the role of religion in society, many Copts are aligning themselves with moderate Muslims and secular Egyptians who also fear the rise of Islamic power.
Amir Ramzy, a Coptic Christian and a judge in Cairo's court of appeals, said Christmas is a chance to retreat and pray for a "better Egypt."
"Christians are approaching Christmas with disappointment, grief and complaints, fearing not only their problems but Egypt's situation in general," Ramzy said. "During the reign of (ousted President Hosni) Mubarak and the (military rulers), mainly Christians were facing problems, but now with the Muslim Brotherhood leaders, each and every moderate Egyptian is facing problems."
In one of his first public messages after his enthronement, Tawadros said the ouster of Mubarak opened the way for a larger Coptic public role, encouraging them to participate in the nation's evolving democracy.
Egypt's Coptic Christians, who make up about 10 percent of Egypt's 85 million people, have long complained of discrimination by the state and the country's Muslim majority. Clashes with Muslims have occasionally broken out, sparked by church construction, land disputes or Muslim-Christian love affairs.
Following the ouster of Mubarak in 2011, sectarian violence rose, and attacks on churches sent thousands of Coptic protesters into the streets. A protest in October 2011 was violently quelled by the country's military rulers, leaving 26 people dead and sparking further outrage.
Ereny Rizk, 34, whose brother George died in that incident, said it was the second Christmas without him, but that the election of a new pope has raised her spirits.
"I felt like he's my father. Having him lessened the severity of my grief," she said. "I definitely thought about leaving the country, but two things stopped me. First the churches and the monasteries in Egypt, our heritage that I'll be missing. Also, I decided not to let my brother's blood go in vain."
The violence has abated, and 2012 was characterized more by the struggle for political and religious rights, said Hossam Bahgat, the director of the Egyptian Initiative for Personal Rights.
"It is not actual frequent sectarian violence, it is fear of further marginalization and second class citizenship," he said, adding that Egypt has been deeply polarized as it drafted the constitution. Christians and liberals walked out of the committee writing it, complaining that their concerns were not being addressed by the Islamist majority.
Youssef Sidhom, the editor of Egypt's main Coptic newspaper, Watani, said Christians are more concerned for the identity of Egypt, saying that legislation based on the new constitution will be focus of attention out of fear of restrictions on the way of life of Christians and their freedom of worship and expression.
"Egypt is stepping into 2013 split and divided between Copts and moderate Muslims on one side confronting political Islam and fundamentalists on the other side," Sidhom said. "It will only be (resolved) through reconciliation, and this is the challenge that we will have to meet."
Ishak Ibrahim, a researcher with EIPR who monitors religious freedom cases in Egypt, said Coptic Christians are facing two new sets of problems: cases of insulting Islam and fear for their life style because of increasingly assertive radical Islamists.
In October, two Coptic boys were put in a juvenile detention after locals accused them of urinating on pages of the Quran, Islam's holy book. It was one in a series of cases against Coptic Christians in the same period, following the fury over an anti-Islam film produced in the United States. The case against the boys was later dropped after mediation.
Ibrahim said some wealthy Copts, who have connections abroad, have temporarily sought to leave Egypt.
"But the majority (of Christians) are also less fortunate," he said. "Like most Egyptians, they are with little education and have difficult economic conditions."
Verna Ghayes, a 21-year old arts student, also noted the deteriorating economic situation. Her father, an architect, lost his job because of a tight market. She felt the hardships, have, in turn, encouraged Christians to seek relief from God.
"With all the unfortunate events that are happening to Egypt, Christians came closer to God, they started to pray more, believing that only God could handle it," she said. "For me that's the good thing, and everything is according to God's plan," she said.
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Merkel highlights economy in German election year

BERLIN (AP) — Chancellor Angela Merkel highlighted Germany's economic strength as she kicked off campaigning Saturday for an important state vote that comes months before national elections, and she brushed aside worries about the weakness of her party's coalition partner.
Merkel's center-right party faces a tough battle to extend its 10-year hold on Lower Saxony state, a northwestern region of 8 million people, in the Jan. 20 election there. Polls suggest the center-left opposition has a good chance of winning, which would give it a significant boost ahead of September national elections in which Merkel will seek a third term.
Merkel made clear that her Christian Democrats will make "economic competence, together with jobs — and jobs that are well-qualified and fairly paid," along with economic strength, a keystone of this year's campaigns. She identified opposition plans for tax increases as one battleground.
"We believe that we do, of course, need income for the state, so we are not talking about tax cuts at this point," Merkel said at a televised news conference after her party's leadership met in Wilhelmshaven, a port city in Lower Saxony.
"But we believe that tax increases ... are not good for current economic developments, for medium-sized companies in particular but also for big companies," she added.
The number of Germans out of work averaged just under 2.9 million last year, the lowest since 1991. Germany's jobless rate of less than 7 percent contrasts with figures well over 20 percent in troubled eurozone partners Greece and Spain.
The strong German economy, and Merkel's hard-nosed management of Europe's debt crisis, have helped keep her popularity high and her party ahead in polls.
But the weakness of the pro-market Free Democratic Party, her junior coalition partner, means that her center-right alliance lacks a majority in surveys. The party, which campaigned at Germany's last election for tax cuts that it failed to obtain, has taken much of the blame for frequent coalition squabbling.
In Lower Saxony, polls show the FDP short of the 5 percent support needed to stay in the state legislature, which endangers popular conservative governor David McAllister's chances of keeping his job.
However, Merkel said she is "very optimistic that the (Free Democrats) will, on their own strength, with their ideas and their share in the success of the work of both the Lower Saxony state government and the federal government, be able to convince people."
The Lower Saxony election follows a rough start for Merkel's center-left challenger in the national elections, former Finance Minister Peer Steinbrueck.
He drew criticism this week for saying the chancellor earns too little and that Merkel has an advantage because she's a woman — adding to earlier controversy over his high earnings from public speaking. Merkel coolly dismissed a question about her challenger's performance.
"To be honest, I take care of my own performance and I'm very satisfied with that," she said. "The rest is for others to comment on."
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Austria plugs regional finance loopholes after scandal

VIENNA (Reuters) - Austria's finance minister played down the risks to regional finances on Saturday after a Salzburg civil servant gambled hundreds of millions of euros of taxpayers' money on high-risk derivatives.
Speaking a day after federal and provincial officials agreed on steps to curb speculative use of public funds, Maria Fekter said in a radio interview that local authorities had already acted to reduce deals that had potential to blow up.
"Lots of people learned from the situation after 2007 and the risks that emerged on financial markets, changed their ways and gradually reduced very risky positions," she told state broadcaster ORF.
But she noted that regions still had lots of foreign- currency debt on their books that needed to be cut in phases.
The head of the country's auditing agency warned in a magazine interview this week that the Salzburg case could be just the tip of an iceberg and that "ticking time bombs worth billions" may lurk in local authorities' opaque finances.
Fekter and state officials agreed on Friday that Austria should amend its constitution to rule out high-risk public financing such as currency speculation or entering derivative contracts for anything other than hedging purposes.
Details now need to be worked out by mid-year.
Austria said last month it planned stricter controls over regional finances after the Salzburg flap.
Salzburg officials have said they sacked a finance director after determining she used doctored documents and false signatures to hide a trail of losses from deals that started more than a decade ago.
They put the book loss at 340 million euros ($444 million), but experts are still trying to determine the state's exact exposure.
The woman, identified only as Monika R., has denied any wrongdoing, but two of her supervisors have also had to go in a widening scandal that will probably lead to fresh elections this year in Salzburg, governed by Social Democrat Gabi Burgstaller.
Austrian states have 8.2 billion euros of debt, or 8.1 percent of the country's public debt.
The national FMA markets watchdog has said it would welcome a more centralized approach to regional financing even though it saw no risk at this stage to overall financial stability.
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"Cliff" concerns give way to earnings focus

NEW YORK (Reuters) - Investors' "fiscal cliff" worries are likely to give way to more fundamental concerns, like earnings, as fourth-quarter reports get under way next week.
Financial results, which begin after the market closes on Tuesday with aluminum company Alcoa , are expected to be only slightly better than the third-quarter's lackluster results. As a warning sign, analyst current estimates are down sharply from what they were in October.
That could set stocks up for more volatility following a week of sharp gains that put the Standard & Poor's 500 index <.spx> on Friday at the highest close since December 31, 2007. The index also registered its biggest weekly percentage gain in more than a year.
Based on a Reuters analysis, Europe ranks among the chief concerns cited by companies that warned on fourth-quarter results. Uncertainty about the region and its weak economic outlook were cited by more than half of the 25 largest S&P 500 companies that issued warnings.
In the most recent earnings conference calls, macroeconomic worries were cited by 10 companies while the U.S. "fiscal cliff" was cited by at least nine as reasons for their earnings warnings.
"The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome," said Kurt Winters, senior portfolio manager for Whitebox Mutual Funds in Minneapolis.
Negative-to-positive guidance by S&P 500 companies for the fourth quarter was 3.6 to 1, the second worst since the third quarter of 2001, according to Thomson Reuters data.
U.S. lawmakers narrowly averted the "fiscal cliff" by coming to a last-minute agreement on a bill to avoid steep tax hikes this weeks -- driving the rally in stocks -- but the battle over further spending cuts is expected to resume in two months.
Investors also have seen a revival of worries about Europe's sovereign debt problems, with Moody's in November downgrading France's credit rating and debt crises looming for Spain and other countries.
"You have a recession in Europe as a base case. Europe is still the biggest trading partner with a lot of U.S. companies, and it's still a big chunk of global capital spending," said Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York.
Among companies citing worries about Europe was eBay , whose chief financial officer, Bob Swan, spoke of "macro pressures from Europe" in the company's October earnings conference call.
REVENUE WORRIES
One of the biggest worries voiced about earnings has been whether companies will be able to continue to boost profit growth despite relatively weak revenue growth.
S&P 500 revenue fell 0.8 percent in the third quarter for the first decline since the third quarter of 2009, Thomson Reuters data showed. Earnings growth for the quarter was a paltry 0.1 percent after briefly dipping into negative territory.
On top of that, just 40 percent of S&P 500 companies beat revenue expectations in the third quarter, while 64.2 percent beat earnings estimates, the Thomson Reuters data showed.
For the fourth quarter, estimates are slightly better but are well off estimates for the quarter from just a few months earlier. S&P 500 earnings are expected to have risen 2.8 percent while revenue is expected to have gone up 1.9 percent.
Back in October, earnings growth for the fourth quarter was forecast up 9.9 percent.
In spite of the cautious outlooks, some analysts still see a good chance for earnings beats this reporting period.
"The thinking is you need top line growth for earnings to continue to expand, and we've seen the market defy that," said Mike Jackson, founder of Denver-based investment firm T3 Equity Labs.
Based on his analysis, energy, industrials and consumer discretionary are the S&P sectors most likely to beat earnings expectations in the upcoming season, while consumer staples, materials and utilities are the least likely to beat, Jackson said.
Sounding a positive note on Friday, drugmaker Eli Lilly and Co said it expects profit in 2013 to increase by more than Wall Street had been forecasting, primarily due to cost controls and improved productivity.
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Verizon Offering $5 Shared 4G Plan for Samsung Galaxy Camera

Imagine the powerful Samsung Galaxy S III smartphone, except that it can't make phone calls and its backplate has been replaced by a digital camera -- handgrip, zoom lens, and all. That's basically the Samsung Galaxy Camera in a nutshell, and whether it's a small, awkwardly-shaped Android tablet or a digital camera that you can play Modern Combat 3 on depends on how you look at it.
When the Galaxy Camera launched last month, it was only available in white, and cost $499 on AT&T's network with a month-to-month data plan. But on Dec. 13, it launches on Verizon's network, in both white and black. The Verizon Galaxy Camera costs $50 more up front, but in return it has 4G LTE instead of HSPA+, and Verizon is offering a "promotional price" for the monthly charge: Only $5 to add it to a Share Everything plan, instead of the usual $10 tablet rate.
A 4G digital camera
While it's capable of functioning as an Android tablet (or game machine), the biggest reason for the Samsung Galaxy Camera's 4G wireless Internet is so it can automatically upload photos it takes. Apps such as Dropbox, Photobucket, and Ubuntu One offer a limited amount of online storage space for free, where the Galaxy Camera can save photos without anyone needing to tell it to. Those photos can then be accessed at home, or on a tablet or laptop.
Most smartphones are able to do this already, but few (with the possible exception of the Windows Phone powered Nokia Lumia 920) are able to take photos as high-quality as the Galaxy Camera's.
Not as good of a deal as it sounds
Dropbox is offering two years' worth of 50 GB of free online storage space for photos and videos, to anyone who buys a Samsung Galaxy Camera from AT&T or Verizon. (The regular free plan is only 2 GB.)
The problem is, you may need that much space. The photos taken by the Galaxy Camera's 16 megapixel sensor take up a lot more space, at maximum resolution, than ordinary smartphone snapshots do. Those camera uploads can eat through a shared data plan, and with Verizon charging a $15 per GB overage fee (plus the $50 extra up-front on top of what AT&T charges) it may make up for the cheaper monthly cost.
On top of that, the Galaxy Camera's photos are basically on par with a $199 digital camera's -- you pay a large premium to combine that kind of point-and-shoot with the hardware equivalent of a high-end smartphone.
It does run Android, though, right?
The Galaxy Camera uses Samsung's custom software for its camera app, and lacks a normal phone dialer app. Beyond that, though, it runs the same Android operating system found on smartphones, and can run all the same games and apps.
Some apps don't work the same on the Galaxy Camera as they do on a smartphone, however. Apps which only run in portrait mode, for instance, require you to hold the camera sideways to use them (especially unpleasant when they're camera apps). And while it can make voice and even video calls over Skype, it lacks a rear-facing camera or the kind of speaker you hold up close to your ear. So you may end up making speakerphone calls and filming the palm of your hand.
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Selling flak jackets in the cyberwars

SAN FRANCISCO (Reuters) - When the Israeli army and Hamas trade virtual blows in cyberspace, or when hacker groups like Anonymous rise from the digital ether, or when WikiLeaks dumps a trove of classified documents, some see a lawless Internet.
But Matthew Prince, chief executive at CloudFlare, a little-known Internet start-up that serves some of the Web's most controversial characters, sees a business opportunity.
Founded in 2010, CloudFlare markets itself as an Internet intermediary that shields websites from distributed denial-of-service, or DDoS, attacks, the crude but effective weapon that hackers use to bludgeon websites until they go dark. The 40-person company claims to route up to 5 percent of all Internet traffic through its global network.
Prince calls his company the "Switzerland" of cyberspace - assiduously neutral and open to all comers. But just as companies like Twitter, YouTube and Facebook have faced profound questions about the balance between free speech and openness on the Internet and national security and law enforcement concerns, CloudFlare's business has posed another thorny question: what kinds of services, if any, should an American company be allowed to offer designated terrorists and cyber criminals?
CloudFlare's unusual position at the heart of this debate came to the fore last month, when the Israel Defense Forces sought help from CloudFlare after its website was struck by attackers based in Gaza. The IDF was turning to the same company that provides those services to Hamas and the al-Quds Brigades, according to publicly searchable domain information. Both Hamas and al-Quds, the military wing of the Palestinian Islamic Jihad, are designated by the United States as terrorist groups.
Under the USA Patriot Act, U.S. firms are forbidden from providing "material support" to groups deemed foreign terrorist organizations. But what constitutes material support - like many other facets of the law itself - has been subject to intense debate.
CloudFlare's dealings have attracted heated criticism in the blogosphere from both Israelis and Palestinians, but Prince defended his company as a champion of free speech.
"Both sides have an absolute right to tell their story," said Prince, a 38-year old former lawyer. "We're not providing material support for anybody. We're not sending money, or helping people arm themselves."
Prince noted that his company only provides defensive capabilities that enable websites to stay online.
"We can't be sitting in a role where we decide what is good or what is bad based on our own personal biases," he said. "That's a huge slippery slope."
Many U.S. agencies are customers, but so is WikiLeaks, the whistle-blowing organization. CloudFlare has consulted for many Wall Street institutions, yet also protects Anonymous, the "hacktivist" group associated with the Occupy movement.
Prince's stance could be tested at a time when some lawmakers in the United States and Europe, armed with evidence that militant groups rely on the Web for critical operations and recruitment purposes, have pressured Internet companies to censor content or cut off customers.
Last month, conservative political lobbies, as well as seven lawmakers led by Ted Poe, a Republican from Texas, urged the FBI to shut down the Hamas Twitter account. The account remains active; Twitter declined to comment.
MATERIAL SUPPORT
Although it has never prosecuted an Internet company under the Patriot Act, the government's use of the material support argument has steadily risen since 2006. Since September 11, 2001, more than 260 cases have been charged under the provision, according to Fordham Law School's Terrorism Trends database.
Catherine Lotrionte, the director of Georgetown University's Institute for Law, Science and Global Security and a former Central Intelligence Agency lawyer, argued that Internet companies should be more closely regulated.
"Material support includes web services," Lotrionte said. "Denying them services makes it more costly for the terrorists. You're cornering them."
But others have warned that an aggressive government approach would have a chilling effect on free speech.
"We're resurrecting the kind of broad-brush approaches we used in the McCarthy era," said David Cole, who represented the Humanitarian Law Project, a non-profit organization that was charged by the Justice Department for teaching law to the Kurdistan Workers' Party, which is designated by the United States as a terrorist group. The group took its case to the Supreme Court but lost in 2010.
The material support law is vague and ill-crafted, to the point where basic telecom providers, for instance, could be found guilty by association if a terrorist logs onto the Web to plot an attack, Cole said.
In that case, he asked, "Do we really think that AT&T or Google should be held accountable?"
CloudFlare said it has not been contacted about its services by the U.S. government. Spokespeople for Hamas and the Palestinian Islamic Jihad, told Reuters they contracted a cyber-security company in Gaza that out-sources work to foreign companies, but declined to comment further. The IDF confirmed it had hired CloudFlare, but declined to discuss "internal security" matters.
CloudFlare offers many of its services for free, but the company says websites seeking advanced protection and features can see their bill rise to more than $3,000 a month. Prince declined to discuss the business arrangements with specific customers.
While not yet profitable, CloudFlare has more than doubled its revenue in the past four months, according to Prince, and is picking up 3,000 new customers a day. The company has raked in more than $22 million from venture capital firms including New Enterprise Associates, Venrock and Pelion Venture Partners.
Prince, a Midwestern native with mussed brown hair who holds a law degree from the University of Chicago, said he has a track record of working on the right side of the law.
A decade ago, Prince provided free legal aid to Spamhaus, an international group that tracked email spammers and identity thieves. He went on to create Project Honey Pot, an open source spam-tracking endeavor that turned over findings to police.
Prince's latest company, CloudFlare, has been hailed by groups such as the Committee to Protect Journalists for protecting speech. Another client, the World Economic Forum, named CloudFlare among its 2012 "technology pioneers" for its work. But it also owes its profile to its most controversial customers.
CloudFlare has served 4Chan, the online messaging community that spawned Anonymous. LulzSec, the hacker group best known for targeting Sony Corp, is another customer. And since last May, the company has propped up WikiLeaks after a vigilante hacker group crashed the document repository.
Last year, members of the hacker collective UgNazi, whose exploits include pilfering user account information from eBay and crashing the CIA.gov website, broke into Prince's cell phone and email accounts.
"It was a personal affront," Prince said. "But we never kicked them off either."
Prince said CloudFlare would comply with a valid court order to remove a customer, but that the Federal Bureau of Investigation has never requested a takedown. The company has agreed to turn over information to authorities on "exceedingly rare" occasions, he acknowledged, declining to elaborate.
"Any company that doesn't do that won't be in business long," Prince said. But in an email, he added: "We have a deep and abiding respect for our users' privacy, disclose to our users whenever possible if we are ordered to turn over information and would fight an order that we believed was not proper."
Juliannne Sohn, an FBI spokeswoman, declined to comment.
Michael Sussmann, a former Justice Department lawyer who prosecuted computer crimes, said U.S. law enforcement agencies may in fact prefer that the Web's most wanted are parked behind CloudFlare rather than a foreign service over which they have no jurisdiction.
Federal investigators "want to gather information from as many sources as they can, and they're happy to get it," Sussmann said.
In an era of rampant cyber warfare, Prince acknowledged he is something of a war profiteer, but with a wrinkle.
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Merry Christmas, America-Haters?

When TNT was preparing its annual special "Christmas in Washington" with the president of the United States, you'd think the last star musician they would consider to join the official caroling would be Psy, the South Korean rapper. What on Earth is Christmasy about this man's invisible-horse-riding dance to his dorky disco-rap hit "Gangnam Style"? It's not exactly the natural flip-side to "O Holy Night." But TNT couldn't resist this year's YouTube sensation.
This inane publicity stunt backfired when the website Mediaite reported on Dec. 7 that Psy (real name: Park Jae-sang) had participated in a 2002 protest in which he crushed a model of an American tank with a microphone stand. But that's nothing compared to the footage of a 2004 performance after a Korean missionary was slaughtered by Islamists in Iraq. These lyrics cannot be misunderstood.
"Kill those f—-ing Yankees who have been torturing Iraqi captives ... Kill those f—-ing Yankees who ordered them to torture ... Kill their daughters, mothers, daughters-in-law and fathers ... Kill them all slowly and painfully."
This isn't just anti-American. It's anti-human.
Guess where this story first surfaced in the American media? CNN, from the same corporate family tree as TNT. It was posted back on Oct. 6 on CNN's iReport, an open-source online news feature that allows users to submit stories for CNN consideration.
The Korean one-hit wonder put out the usual abject careerist apology, but he weirdly said, "I'm deeply sorry for how these lyrics could be interpreted." Those darn lyrics and those darn people who misinterpret lyrics about killing Yankees' mothers. It is like Barack Obama expressing regret for the awful things said about Susan Rice, ignoring the awful things said by Susan Rice.
Psy is now a millionaire. As Jim Treacher wrote at the Daily Caller: "So far he's made over $8 million from the song, about $3 million of it from the people he once wanted to kill." Brad Schaeffer at Big Hollywood noted his own father fought for South Korea's independence in the Korean War: "Had it not been for 'f——-g Yankees' like my Dad, this now-wealthy South Korean wouldn't be 'Oppan Gangnam Style' so much as 'Starving Pyongyang Style.'" (Gangnam is a posh district in the South Korean capital of Seoul.)
Despite the controversy, neither the Obama White House nor the TNT brass felt it was necessary to send Psy packing before the Dec. 9 taping. On Saturday, ABC reporter Muhammad Lila merely repeated, "the White House says the concert will go on and that President Obama will attend, saying that they have no control over who performs at that concert."
What moral cowardice. On Monday morning, another pliant publicist, NBC correspondent Peter Alexander, calmly relayed that the White House did take control on the Psy front — on its own "We The People" website, where the people may post petitions to the president for their fellow citizens to sign. A petition asking Obama to dump Psy from the Christmas concert was itself dumped. Alexander explained: "But that petition was removed because the rules say the petitions only apply to federal actions. And, of course, the President had no say over who the private charity chose to invite."
This is double baloney. The White House hasn't removed silly "federal action" petitions like the one asking to "Nationalize the Twinkie Industry," or one to "Secure resources and funding, and begin construction of a Death Star by 2016." They removed one that they didn't want people to sign.
As for Obama having "no say over" who appeared on the TNT show, the president could easily declare he wasn't going to share a stage with this America-hater. Or he could have obviously placed one phone call to Time Warner CEO Jeff Bewkes (an Obama donor), and expressed the dismay of the President of the United States.
Instead, the Obamas came and honored Psy. Yes, the president honored a man who despised America enough to want its citizens slaughtered.
John Eggerton of Broadcasting and Cable magazine observed, "At the end of the taping, when the First Family customarily shakes hands and talks briefly with the performers, the First Lady gave Psy a hug, followed by a handshake from the President, who engaged Psy in a short, animated discussion — at one point Psy appeared to rock back with laughter — and patted the singer on the shoulder."
I never thought I'd ever view a Christmas special featuring a hideous hater of America celebrated by the President of the United States.
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Why does Google build apps for its rival Apple's iPhone?

Why help a key competitor? Two words: Advertising and data
There isn't any other way to say it: Apple and Google really don't like each other. Apple CEO Steve Jobs vowed to destroy the Google geniuses behind the Android operating system for allegedly stealing the basic mechanics of the iPhone. Apple and Google-partner Samsung are constantly at one another's throats over patents. And most recently new Apple CEO Tim Cook gave two of Google's most popular products — Google Maps and YouTube — the boot from iOS 6.
Then the unthinkable happened: Fans started turning on Apple. Even the most gushy tech critic had to admit that Apple's replacement for Google Maps was a train wreck, a rare blight on the company's otherwise stainless track record (a failure, notes Zara Kessler at Bloomberg, which ironically might ultimately benefit Apple).
Why, then, would Google throw its chief rival a life preserver this week and deliver Google Maps to iOS — as well as handing over Chrome and an awesome new Gmail app in recent weeks? Two main reasons:
1. Potential advertising: "Google doesn't make money off of Android which is open source; they make money when people use Google services," Joel Spolsky, CEO of Stack Overflow, tells Wired. Google Maps on the iPhone doesn't have ads yet, although the Android version does. In the end, Google's primary concern is to get its services in front of as many eyeballs as possible — even if those eyeballs are peering into an iPhone.
SEE MORE: Steve Jobs' mysterious iMac-controlled yacht
2. More data with which to make its products better: Google Maps is every marketer's dream. Mapping software gives them invaluable consumer data to work with, like the city you live in, the stores you shop at, the restaurants you frequent, where you get your coffee, and much, much more. "Google needs the traffic that iOS users bring," says Casey Newton at CNET. Those millions of iPhone owners unknowingly feed Google the analytics it needs to make Google Maps the superior, celebrated product it's become. The same goes for Chrome. And Gmail.
And "Google is hardly the first company to aggressively support a rival platform for selfish reasons," says Ryan Tate at Wired.
Microsoft was a strong backer of Apple's Macintosh for decades because its core business was selling applications [Word, Excel, etc.], not Microsoft's competing operating system Windows… Google's willingness to ship iOS apps could look smarter as time goes on. The company trounces Apple when it comes to all things cloud, not just maps and e-mail; its social network, search engine, and highly optimized data centers could give its iOS apps an even bigger edge in the coming years.
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Samsung Smart TVs: The next frontier for data theft and hacking [video]

Smart TVs, particularly Samsung’s (005930)last few generations of flat screens, can be hacked to give attackers remote access according to a security startup called ReVuln. The company says it discovered a “zero-dayexploit” that hackers could potentially use to perform malicious activities that range from stealing accounts linked through apps to using built-in webcams and microphones to spy on unsuspecting couch potatoes. Don’t panic just yet, though. In order for the exploit to be activated, a hacker needs to plug a USB drive loaded with malicious software into the actual TV to bypass the Linux-based OS/firmware on Samsung’s Smart TVs. But, if a hacker were to pull that off, every piece of data stored on a Smart TV could theoretically be retrieved.
[More from BGR: Has the iPhone peaked? Apple’s iPhone 4S seen outselling iPhone 5]
[More from BGR: Dell confirms it will exit smartphone business, drop Android]
As if the possibility of someone stealing your information and spying on you isn’t scary enough, according to ComputerWorld, “it is also possible to copy the configuration of a TV’sremote control, which would allow a hacker to copy the remote control’s settings, and remotely change the channel.”
ReVuln told The Register it hasn’t informed Samsung of the vulnerability and plans to sell the details of in hopes of “speeding up” development of a fix. A video of the exploit as proof from ReVuln follows below.
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