Pakistan militants kill 41 in mass execution, attack on Shi’ites






PESHWAR, Pakistan (Reuters) – Pakistani militants, who have escalated attacks in recent weeks, killed at least 41 people in two separate incidents, officials said on Sunday, challenging assertions that military offensives have broken the back of hardline Islamist groups.


The United States has long pressured nuclear-armed ally Pakistan to crack down harder on both homegrown militants groups such as the Taliban and others which are based on its soil and attack Western forces in Afghanistan.






In the north, 21 men working for a government-backed paramilitary force were executed overnight after they were kidnapped last week, a provincial official said.


Twenty Shi’ite pilgrims died and 24 were wounded, meanwhile, when a car bomb targeted their bus convoy as it headed toward the Iranian border in the southwest, a doctor said.


New York-based Human Rights Watch has noted more than 320 Shias killed this year in Pakistan and said attacks were on the rise. It said the government’s failure to catch or prosecute attackers suggested it was “indifferent” to the killings.


Pakistan, seen as critical to U.S. efforts to stabilize the region before NATO forces withdraw from Afghanistan by the end of 2014, denies allegations that it supports militant groups like the Afghan Taliban and Haqqani network.


Afghan officials say Pakistan seems more genuine than ever about promoting peace in Afghanistan.


At home, it faces a variety of highly lethal militant groups that carry out suicide bombings, attack police and military facilities and launch sectarian attacks like the one on the bus in the southwest.


Witnesses said a blast targeted their three buses as they were overtaking a car about 60 km (35 miles) west of Quetta, capital of sparsely populated Baluchistan province.


“The bus next to us caught on fire immediately,” said pilgrim Hussein Ali, 60. “We tried to save our companions, but were driven back by the intensity of the heat.”


Twenty people had been killed and 24 wounded, said an official at Mastung district hospital.


CONCERN OVER EXTREMIST SUNNI GROUPS


International attention has focused on al Qaeda and the Pakistani Taliban.


But Pakistani intelligence officials say extremist Sunni groups, lead by Lashkar-e-Jhangvi (LeJ) are emerging as a major destabilizing force in a campaign designed to topple the government.


Their strategy now, the officials say, is to carry out attacks on Shi’ites to create the kind of sectarian tensions that pushed countries like Iraq to the brink of civil war.


As elections scheduled for next year approach, Pakistanis will be asking what sort of progress their leaders have made in the fight against militancy and a host of other issues, such as poverty, official corruption and chronic power cuts.


Pakistan’s Taliban have carried out a series of recent bold attacks, as military officials point to what they say is a power struggle in the group’s leadership revolving around whether it should ease attacks on the Pakistani state and join groups fighting U.S.-led forces in Afghanistan.


The Taliban denies a rift exists among its leaders.


In the attack in the northwest, officials said they had found the bodies of 21 men kidnapped from their checkpoints outside the provincial capital of Peshawar on Thursday. The men were executed one by one.


“They were tied up and blindfolded,” Naveed Anwar, a senior administration official, said by telephone.


“They were lined up and shot in the head,” said Habibullah Arif, another local official, also by telephone.


One man was shot and seriously wounded but survived, the officials said. He was in critical condition and being treated at a local hospital. Another had escaped before the shootings.


Taliban spokesman Ihsanullah Ihsan claimed responsibility for the attacks.


“We killed all the kidnapped men after a council of senior clerics gave a verdict for their execution. We didn’t make any demand for their release because we don’t spare any prisoners who are caught during fighting,” he said.


The powerful military has clawed back territory from the Taliban, but the kidnap and executions underline the insurgents’ ability to mount high-profile, deadly attacks in major cities.


This month, suicide bombers attacked Peshawar’s airport on December 15 and a bomb killed a senior Pashtun nationalist politician and eight other people at a rally on December 22.


(Additional reporting by Saud Mehsud in DERA ISMAIL KHAN and Gul Yousufzai in QUETTA; Writing by Katharine Houreld; Editing by Michael Georgy and Ron Popeski)


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‘The Hobbit’ stays atop box office for third week






LOS ANGELES (AP) — “The Hobbit: An Unexpected Journey” continues to rule them all at the box office, staying on top for a third-straight week with nearly $ 33 million.


The Warner Bros. fantasy epic from director Peter Jackson, based on the J.R.R. Tolkien novel, has made $ 222.7 million domestically alone.






Two big holiday movies — and potential awards contenders — also had strong openings. Quentin Tarantino‘s spaghetti Western-blaxploitation mash-up “Django Unchained” came in second place for the weekend with $ 30.7 million. The Weinstein Co. revenge epic, starring Jamie Foxx and Christoph Waltz, has earned $ 64 million since its Christmas Day opening.


And in third place with $ 28 million was the sweeping, all-singing “Les Miserables.” The Universal Pictures musical starring Hugh Jackman and Anne Hathaway has made $ 67.5 million since debuting on Christmas.


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Democrats, Republicans apart on key “fiscal cliff” issues: Reid






WASHINGTON (Reuters) – Senate Majority Leader Harry Reid said on Sunday that Democrats and Republicans still had key differences in talks to avert a looming year-end “fiscal cliff,” and he had not been able to make a counteroffer to the latest Republican proposal.


“I’ve had a number of conversations with the president and at this stage we’re not able to make a counteroffer,” Reid said on the Senate floor.






He said that as the day wears on, Democrats may be able to make such an offer.


“I think that the Republican leader has shown absolutely good faith. It’s just that we’re apart on some pretty big issues,” Reid added. (Reporting By David Lawder; Editing by David Brunnstrom)


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From IPads to Crocs, New Patent Law Protects Design






One of Apple’s key weapons in its legal battle against competitors is a special type of patent that protects the visual appearance of a product. Critics have denounced these patents as a way to own “rounded rectangles”, but we may have to get used to seeing a lot more of them. Last week President Obama signed a law that will increase the term and scope of so-called design patents. The law could offer U.S. designers a new way to fight knockoffs—but some fear it will strain an already overburdened Patent Office and make America’s troubled patent system even more dysfunctional.


Design patents, which protect the ornamental features of an invention, are nothing new. To get a better idea of what they are, imagine a new type of fork that can pick up food better than ever before. The inventor could get a regular patent for the pickup function—but she could also get a design patent for distinct scrollwork built into the handle of the fork. A more familiar example is the design patents that cover the look and feel of Apple’s iPad.






Few people had heard of design patents until recently, when shoe company Crocs (CROX) used them to chase away rivals or Apple (AAPL) used its design patents to hammer Samsung (005930) for allegedly copying the iPhone and iPad. Design patents have also become more popular as the Supreme Court has taken an increasingly dim view of many conventional utility patents. (See the picture at right, posted by leading patent blog Patently-O, for examples of design patents in court right now.)


The just-signed Patent Law Treaties Implantation Act of 2012 will see more design patent requests flood in from more places. The main purpose of the law is to harmonize America’s design patent laws with the rest of the world—in particular, by letting “inventors” use a single application filed anywhere in the world to seek design rights in many countries at once. For instance, Ikea could submit drawings of a chair in Sweden and get a U.S. design patent based on the same application. The law, which will take effect in about a year, will also increase the design patent term from 14 years to 15 years and allow applicants to seek 100 different design inventions with a single application.


Richard Stockton, a patent lawyer at Banner & Witcoff in Chicago, says that traditionally, the first people to call him about design patents are manufacturers who outsource production to China but then discover the factory owner is replicating their product.


Now, though, he expects the new treaty rules will lead more foreign companies to apply for design patents in the U.S.


“Asia is very interested. A lot of people think there will be a snowball effect,” says Stockton. He adds that recent court fights between Apple and Samsung have awakened people to the fact that design patents are easier to get than utility patents.


“I’ve obtained them in 60 days with some elbow grease,” claimed Stockton, adding that a “good rule of thumb” price for a basic design patent application is $ 2,500 to $ 3,000 all-in, vs. several times that for a regular patent. (The 60-day figure might be an outlier—others say it usually takes more than a year.)


Stockton says design patents also pack more of a damages punch than regular patents because, if they are infringed, a court must award damages based on the value of the whole invention, not just a patented feature.


Sarah Burstein, a design patent expert at the University of Oklahoma, is skeptical that the new law is necessary and fears that lawyers will game design patents in the same way they have gamed other parts of the patent system. “The devil is in the details,” she said in a phone interview, and she predicted that more applications will arrive from Japan, Asia, and the rest of the world. U.S. designers, meanwhile, can likewise seek rights in more places.


Burstein is especially concerned about how the new law, as it stands, requires the U.S. Patent Office to reject design applications from foreign countries within a certain period of time. If it doesn’t, under the treaty, the applicant is entitled to design rights in America. And if a flood of new applications arrive, will the Patent Office be able to handle them? The office is already struggling to clear backlog and retain qualified examiners with starting salaries that begin around $ 42,000.


Burstein worries that the law’s current structure could lead companies to seek design rights first in countries with weaker standards and then use those overseas rights as a quick way to get design patent protection in the U.S.


And while the new protections could help U.S. designers in theory, Burstein believes any benefits will not be widespread.


“This won’t help poor design students,” she said.


A bigger question may be why Congress passed the law in the first place. America’s technology and retail sectors are already buckling under a wave of spurious patent lawsuits, many of which involve “patent trolls” using old patents to extort licensing fees. The new law could provide yet more ammunition for the trolls to shake down productive companies. And while most people would agree that inventors should have the right to stop ripoffs, America already has robust trademark and trade dress rules that let them do just that.


Ultimately, design patents may be yet one more area where America discovers that intellectual property rules are a lot like salt—a little bit can be great, but too much ruins everything.


Also from GigaOM:
Social 2013: The Enterprise Strikes Back (subscription required)


GigaOM’s Top 10 Cleantech Posts of 2012


Newspapers and Guns: If Data Are Available, Should They Always Be Published?


Is Congress Really Capable of Legislating the Future?


Christmas Content: E-books Boom, IOS Uplift


Businessweek.com — Top News





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2 arrested after Guinea treasury chief killed






CONAKRY, Guinea (AP) — Officials in the West African nation of Guinea say they’ve arrested two suspects in the case of the killing of the country’s treasury chief, who was shot to death nearly two months ago.


Authorities paraded the pair in front of journalists Friday. Aissatou Boiro was killed as she was driving home. She had launched an investigation into the loss of 13 million francs ($ 1.8 million) which went missing from the state coffers.






The government says the suspects were found with Boiro‘s computer memory stick and mobile telephone.


The men denied any involvement in her slaying and said a friend had given them the items.


Boiro’s colleagues say she had zero tolerance for corruption and was intent on putting an end to the mismanagement of state funds.


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NORAD Santa trackers draw record number of phone calls, social media followers






PETERSON AIR FORCE BASE, Colo.NORAD says it drew a record number of phone calls and social media followers during its NORAD Tracks Santa operation on Christmas Eve.


The North American Aerospace Defence Command said Friday volunteers answered more than 114,000 calls, up 12,000 from 2011.






NORAD’s Santa Facebook page had more than 1.2 million followers, up from about 1 million last year. More than 129,000 people followed on Twitter, up from 101,000 last year.


NORAD got 11,000 emails, up from 7,700 in 2011.


More than 1,250 volunteers answered phone calls, including first lady Michelle Obama.


NORAD Tracks Santa began in 1955 when a newspaper listed the wrong number for children to call Santa. They wound up calling the Continental Air Defence Command, NORAD’s predecessor.


The operation is based at Peterson Air Force Base, Colo.


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Matt Damon tackles “fracking” issue in the “Promised Land”






LOS ANGELES (Reuters) – The hot-button topic of “fracking” has finally made its way to Hollywood in the new movie “Promised Land,” out in U.S. theaters on Friday, with actors Matt Damon and John Krasinski teaming up to further the debate on the energy drilling technique.


The film explores the social impact of hydraulic fracturing drilling technique, or “fracking,” which has sparked nation-wide environmental and political battles over its impact on drinking water, U.S. energy use, seismic activity and other areas.






“Promised Land” will see Damon, 42, reunite with director Gus Van Sant for the third time, following their success with 1997 film “Good Will Hunting and 2002′s “Gerry.”


In their latest film, Damon plays a corporate salesman who goes to a rural U.S. town to buy or lease land on behalf of a gas company looking to drill for oil. He soon faces opposition from a slick environmentalist, played by Krasinski.


In real life, Damon hasn’t shied away from getting involved in political and social issues, working with charities and organizations to eradicate AIDS in developing countries, bringing attention to atrocities in Sudan’s Darfur region, providing safe drinking water and stopping trees from being chopped and used for junk mail.


Yet “Promised Land,” which Damon also co-wrote and produced, doesn’t take a noticeable stance on “fracking.” The actor would not publicly state his own views, telling Reuters that he didn’t think his opinion had “any bearing” on the film.


“The point is that the movie should start a conversation. It’s certainly not a pro-fracking movie, but we didn’t want to tell people what to think,” Damon said.


The actor said he and Krasinski never set out to make a socially conscious film, and “fracking” was added in later, as a backdrop to the story.


“It wasn’t that we said we wanted to make a movie about ‘fracking’ as much as we wanted to make a movie about American identity, about real people. We wanted to make a movie about the country today, where we came from, where we are and where we are headed,” Damon said.


“‘Fracking’ was perfect because the stakes are so incredibly high and people are so divided. It asks all the questions about short-term thinking versus long-term thinking.”


Hydraulic fracturing entails pumping water laced with chemicals and sand at high pressure into shale rock formations to break them up and unleash hydrocarbons. Critics worry that “fracking” fluids or hydrocarbons can still leak into water tables from wells, or above ground.


FROM ‘ADJUSTMENT BUREAU’ TO ‘PROMISED LAND’


At first glance, the pairing of Damon with Krasinski may not come across as the perfect fit, as Damon has primarily been associated with longtime friend and collaborator Ben Affleck, both of whom won Oscars for writing “Good Will Hunting.”


Damon later become a colleague and friend to a number of key Hollywood players, including George Clooney and Brad Pitt, with whom he co-starred in the “Ocean’s Eleven” franchise.


Krasinski, 33, is best known for playing sardonic Jim Halpert on NBC’s long-running television series, “The Office,” and has had occasional supporting roles in films such as 2008′s “Leatherheads.”


Damon and Krasinski came together after meeting through Krasinski’s wife, Emily Blunt, who co-starred with Damon in the 2011 film “The Adjustment Bureau.” Damon said he and his wife started double-dating with Krasinski and Blunt, through which their collaboration on “Promised Land” came about.


The duo’s busy work schedules forced them to moonlight on weekends to make “Promised Land.”


“John showed up at my house every Saturday at breakfast and we would write all day until dinner,” Damon said. “Then we’d do it again on Sunday. I have four kids so he would come to me.”


But Damon’s determination to make the film his feature directorial debut fell through when his acting schedule changed, making it impossible to direct “Promised Land,” so he turned to Van Sant.


“My first inclination was to send the script to somebody I’d worked with before,” he said. “Gus seemed like the most obvious choice and I realized later that I’d never written anything that anyone else had directed, except Gus. I have a real comfort level with him.”


Damon said he has not given up on his dream of directing movies and has his eye on a project at movie studio Warner Bros., which has a deal with Damon and Affleck’s joint production company, Pearl Street Films.


With Affleck’s third directorial effort “Argo” becoming an awards contender, Damon joked that the film’s success can only be a good thing for his own budding directing career.


“I now happen to be partnered with the hottest director in Hollywood!” he said, laughing.


(Reporting By Zorianna Kit, Editing by Piya Sinha-Roy and Paul Simao)


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Brazil president, cancer survivor, pronounced healthy






BRASILIA (Reuters) – Brazilian President Dilma Rousseff, who survived lymphoma cancer in 2009, was pronounced healthy by doctors after a routine exam on Friday.


Rousseff’s health was “within normal levels,” according to a statement released by her office following the check-up at the Sirio-Libanes Hospital in Sao Paulo, one of South America‘s leading cancer treatment centers.






Rousseff underwent chemotherapy in 2009 and briefly wore a wig, but the cancer went into remission and she appeared to be in good health by the time she staged her winning campaign for the presidency in 2010.


Concerns over her health have faded since then, although a bout with pneumonia and a lengthy recovery in 2011 have kept the issue on some investors’ radar screens.


(Reporting by Ana Flor, Writing by Brian Winter; Editing by Doina Chiacu)


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Reasons to Be Scared of Microsoft Stock






The early days of January are typically a time of unbridled optimism. This will be the year we lose 10 pounds and learn to speak French; Japan will turn itself around; Microsoft (MSFT) stock will pull itself out of a decade of doldrums.


Most analysts are betting that the Redmond computer company’s time has come. The company’s fiscal-year revenue has nearly tripled to $ 74 billion in the last 10 years. At $ 27, the shares trade right at their 10-year average and yield more than it costs the company to issue debt. Redmond has Skunk-Worked an exciting new tablet and operating system it’s eager to showcase. It’s all backed by ridiculous amounts of free cash and a fortress-like balance sheet. The 12-month price target on the stock forecasts a 25 percent gain.






Still, the company has attracted at least one major detractor with a big megaphone: Barry Ritholtz, an asset manager who runs a quantitative research firm and founder of the well-trafficked blog The Big Picture. He considers the company a “classic value trap,” not unlike what its customers Dell (DELL) and Hewlett Packard (HPQ) were at the start of this annus horribilis. The problem, he says, is Microsoft Chief Executive Officer Steve Ballmer. “As long as he is running the show—he has missed every major trend in tech over the past decade—I have no confidence in the company.”


He has company. Activist investor David Einhorn has wanted Ballmer out for more than a year and was long the shares in hopes that such an ouster would boost Microsoft’s returns. The stock is up 3 percent this year, compared with the S&P 500’s 14 percent gain. The 13 years since Ballmer became CEO have included the Vista debacle, a thankfully thwarted bid to overpay for Yahoo! (YHOO), the ceding of search supremacy to Google (GOOG), and Apple’s (AAPL) envisioning and dominating much of the smartphone and tablet markets. Meanwhile, where’s that “Skype Phone” in every palm?


‘Value trap’ is a funny term, says Bill Koefoed, Microsoft’s general manager of investor relations. Microsoft, he says, is trading in line with the big-cap technology sector, which has recently been out of favor with investors.


“Enterprise tech hasn’t been as sexy to the press. But our relevance to the enterprise has grown in a huge way. Our database business is growing faster than Oracle’s (ORCL) and IBM’s (IBM).”


Koefoed says people focus on Windows, which provides a quarter of Microsoft’s overall revenue, but not on the comparable 25 percent contribution from the company’s servers and tools division, which he emphasizes that Ballmer has grown, from a $ 3 billion business, to a $ 19 billion enterprise over the past decade. ”Over time, the stock price works itself out. We’re doing a whole bunch of things to be shareholder-friendly. Over time, that will be reflected in our share price.”


Meanwhile, Koefoed says, it was under Ballmer that the company initiated and consistently increased its dividend—with Microsoft shareholders overwhelmingly backing the CEO last month.


Ritholtz is unpersuaded “Think of the difference between what is revealed by a single snapshot of Microsoft today vs. an extended video. Yes, you can see the current situation of lots of cash, a low price-earnings multiple, name recognition, enterprise usage. But what about the trajectory and changes to the underlying market for their goods and services?”


He says that other than Kinnect for Xbox 360, “it’s hard to see what Microsoft gets for its billions of [research and development] dollars.”


“The competitive landscape has been moving against Microsoft,” wrote N. Landell-Mills of Indigo Equity Research after Microsoft’s “uninspiring” latest quarterly report, which involved the company raising its dividend 15 percent. The analyst called the organization “un-innovative and complex” and “a digital dinosaur.”


The full rollout of Windows 8 could, of course, change that state of affairs. Not that early signs are promising.


With the PC replacement cycle stretched out and assailed by competition that Microsoft failed to oppose, Ritholtz has taken to comparing its fate to that of Maytag (WHR). “It was,” he says, “once hugely successful and innovative and created lots of products and markets. Now you replace your dishwasher every 10 years; that’s the only time you ever think of Maytag.”


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China tightening controls on Internet






BEIJING (AP) — China‘s new communist leaders are increasing already tight controls on Internet use and electronic publishing following a spate of embarrassing online reports about official abuses.


The measures suggest China’s new leader, Xi Jinping, and others who took power in November share their predecessors’ anxiety about the Internet’s potential to spread opposition to one-party rule and their insistence on controlling information despite promises of more economic reforms.






“They are still very paranoid about the potentially destabilizing effect of the Internet,” said Willy Lam, a politics specialist at the Chinese University of Hong Kong. “They are on the point of losing a monopoly on information, but they still are very eager to control the dissemination of views.”


This week, China’s legislature took up a measure to require Internet users to register their real names, a move that would curtail the Web’s status as a freewheeling forum to complain, often anonymously, about corruption and official abuses. The legislature scheduled a news conference Friday to discuss the measure, suggesting it was expected to be approved.


That comes amid reports Beijing might be disrupting use of software that allows Web surfers to see sites abroad that are blocked by its extensive Internet filters. At the same time, regulators have proposed rules that would bar foreign companies from distributing books, news, music and other material online in China.


Beijing promotes Internet use for business and education but bans material deemed subversive or obscene and blocks access to foreign websites run by human rights and Tibet activists and some news outlets. Controls were tightened after social media played a role in protests that brought down governments in Egypt and Tunisia.


In a reminder of the Web’s role as a political forum, a group of 70 prominent Chinese scholars and lawyers circulated an online petition this week appealing for free speech, independent courts and for the ruling party to encourage private enterprise.


Xi and others on the party’s ruling seven-member Standing Committee have tried to promote an image of themselves as men of the people who care about China’s poor majority. They have promised to press ahead with market-oriented reforms and to support entrepreneurs but have given no sign of support for political reform.


Communist leaders who see the Internet as a source of economic growth and better-paid jobs were slow to enforce the same level of control they impose on movies, books and other media, apparently for fear of hurting fledgling entertainment, shopping and other online businesses.


Until recently, Web surfers could post comments online or on microblog services without leaving their names.


That gave ordinary Chinese a unique opportunity to express themselves to a public audience in a society where newspapers, television and other media are state-controlled. The most popular microblog services say they have more than 300 million users and some users have millions of followers reading their comments.


The Internet also has given the public an unusual opportunity to publicize accusations of official misconduct.


A local party official in China’s southwest was fired in November after scenes from a videotape of him having sex with a young woman spread quickly on the Internet. Screenshots were uploaded by a former journalist in Beijing, Zhu Ruifeng, to his Hong Kong website, an online clearing house for corruption allegations.


Some industry analysts suggest allowing Web surfers in a controlled setting to vent helps communist leaders stay abreast of public sentiment in their fast-changing society. Still, microblog services and online bulletin boards are required to employ censors to enforce content restrictions. Researchers say they delete millions of postings a day.


The government says the latest Internet regulation before the National People’s Congress is aimed at protecting Web surfers’ personal information and cracking down on abuses such as junk e-mail. It would require users to report their real names to Internet service and telecom providers.


The main ruling party newspaper, People’s Daily, has called in recent weeks for tighter Internet controls, saying rumors spread online have harmed the public. In one case, it said stories about a chemical plant explosion resulted in the deaths of four people in a car accident as they fled the area.


Proposed rules released this month by the General Administration of Press and Publications would bar Chinese-foreign joint ventures from publishing books, music, movies and other material online in China. Publishers would be required to locate their servers in China and have a Chinese citizen as their local legal representative.


That is in line with rules that already bar most foreign access to China’s media market, but the decision to group the restrictions together and publicize them might indicate official attitudes are hardening.


That comes after the party was rattled by foreign news reports about official wealth and misconduct.


In June, Bloomberg News reported that Xi’s extended family has amassed assets totaling $ 376 million, though it said none was traced to Xi. The government has blocked access to Bloomberg’s website since then.


In October, The New York Times reported that Premier Wen Jiabao’s relatives had amassed $ 2.7 billion since he rose to national office in 2002. Access to the Times’ Chinese-language site has been blocked since then.


Previous efforts to tighten controls have struggled with technical challenges in a country with more than 500 million Internet users.


Microblog operators such as Sina Corp. and Tencent Ltd. were ordered in late 2011 to confirm users’ names but have yet to finish the daunting task.


Web surfers can circumvent government filters by using virtual private networks — software that encrypts Web traffic and is used by companies to transfer financial data and other sensitive information. But VPN users say disruptions that began in 2011 are increasing, suggesting Chinese regulators are trying to block encrypted traffic.


Curbs on access to foreign sites have prompted complaints by companies and Chinese scientists and other researchers.


In July, the American Chamber of Commerce in China said 74 percent of companies that responded to a survey said unstable Internet access “impedes their ability to do business.”


Chinese leaders “realize there are detrimental impacts on business, especially foreign business, but they have counted the cost and think it is still worthwhile,” said Lam. “There is no compromise about the political imperative of controlling the Internet.”


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