“We Don’t Have the Rule of Law”: Barrett Brown on Incarceration, Journalism and His Next Steps

Barrett Brown at his residence in Dallas, Texas, on Saturday, May 20, 2017. (Photo: Candice Bernd)Barrett Brown at his residence in Dallas, Texas, on Saturday, May 20, 2017. (Photo: Candice Bernd)

Barrett Brown, who was arrested in 2012 and subsequently imprisoned for his reporting on hacked emails from private intelligence contracting firms, was unexpectedly back in the news recently after he was rearrested during a check-in for “failure to obtain permission” to speak to the press.

In 2011, Brown not only exposed that the private intelligence firm Stratfor had been snooping on activists on behalf of corporations, but also revealed plans by intelligence contractors to hack and smear activists.

Brown pleaded guilty in 2014 to two charges related to obstruction of justice and threatening an FBI agent. Truthout was in the courtroom when he was ultimately sentenced to five years and three months in prison. Last year, Brown won a National Magazine Award for his columns in The Intercept about his experiences in prison. He was released to a halfway house in November and then subsequently released to his residence under house arrest. Since May 25, he has been on supervised release.

In a sit-down interview with Truthout at his Dallas residence, Brown detailed his recent rearrest and discussed his ideas for creating new online models for civic engagement and journalism. He also shared some of his plans for what to do next, now that he is no longer incarcerated. The following transcript has been edited for clarity and length.

Candice Bernd: Just to start, I wanted to ask you a little about your current house-arrest situation and the terms of your probation. Are you currently allowed to use a computer or the internet?

Barrett Brown: Well, the terms of my supervised-release period, which is set by the court in sentencing, last for two years. It begins five days from [May 20]. Now, the [Bureau of Prisons (BOP)] has nonetheless decided that they have the right to unilaterally interpret those terms of confinement as applying partially to my BOP supervision period, which has gone on for the past six months, and that’s incorrect. So, as soon as I got to the halfway house, I was informed that I could not use computers, the internet or even a PlayStation 4, for instance, because it has internet access, and according to a regional BOP representative, can be turned into a “micro computer,” whatever that is. I think she may have misread an article about the US government having used like 20,000 PlayStation 4s to build a supercomputer.

This is a pattern we’ve seen, when I was in the prison and then outside; most recently, when I was rearrested a few weeks ago for talking to the press, even though, as I showed, that’s not in the BOP policy. You have local officials making up policy, refusing to put policy in writing, calling the [US] Marshalls and having them arrest you illicitly, without any documentation, to enforce that, and then backing off when lawyers get involved. That’s pretty much the pattern of the BOP in general.

Can you provide any updates regarding that rearrest incident?

After the lawyers from Haynes and Boone up in New York that Wick Allison of D Magazine hired for me threatened [the BOP], challenging my confinement in a court, they immediately released me. I was taken back to the halfway house, and I hadn’t had a chance to talk to these lawyers since that morning, so I didn’t really know what was going on. I got there and the director of the halfway house took me in his office, and there was some other fellow there who he claimed was his new program director, and said, “Here are these two forms, and the BOP wants you to sign them,” and I said, “Well, what happens if I don’t sign them?” and he said, “Well, we’re back to where we were last week.”

I kept trying to get him to admit that this was again, a threat for a false arrest if I don’t comply with these non-policies. The forms in question, one of them was a form I’d already signed six months prior at my own request. It was a form that allows the BOP to respond to questions about my case in press. Six months ago [the regional BOP representative] had declined to talk to reporters about this computer thing because those forms weren’t signed. So I said let me have that form, and I signed it. So they gave me the same form I had already signed, and then another form, for inmates who are in a prison to give permission to … media representative[s to interview them]. So they wanted me to sign this other form, and modified it to apply to this situation.

So, [the halfway house director] made me sign a form that said, “I consent to all future interviews.” This wasn’t the same form that they had brought in last time. They weren’t talking anymore about getting permission for interviews on each individual instance, and they weren’t talking anymore about getting me to have PBS or VICE or whoever sign another form, which again is for getting into a prison. So they backed off that…. I think a decision was probably made, again by the regional [BOP] office, just based on no real legal strategy, just based on kind of a haphazard, wriggling, low-intelligence, imaginary legal strategy. So I said I would sign these forms — they were different forms — if I could take copies with me, and so he allowed that, and I did that.

Since then there’s been no word on it…. I could pursue this, but there’s other things I’d be more interested in pursuing regarding the BOP. So I haven’t come to a decision yet on what to do, if anything. I think it’s actually more important just to show that this is what can happen to you. That’s the thesis I’m trying to present. These things are ingrained in our system. They’re [systemic]. They’re not just, “Oh, these things happen.” This is a [systemic] flaw in our system.

We don’t have the rule of law. We just don’t. It’s a myth, a dangerous myth.

I’m curious to know what other issues you do plan to continue to pursue, journalistically, legally or otherwise, regarding the BOP and the prison-industrial complex, especially as it relates to your own experiences.

I have this book with [Farrar, Strauss and Giroux] that will come out next year. A third of that will be about prisons, not just for the sake of the prison story but also, again, to present my thesis as to what the institutions in this country are actually like, and why they have to be opposed more aggressively. In legal terms, what I’m interested in is a law firm that wants to challenge the constitutionality of the administrative-remedy process. The Prison Litigation Reform Act requires [prisoners], if they want to take someone to court or challenge anything, to go through this long, involved process that the BOP or state prisons, respectively, oversee, and can interfere with at will, as I’ve documented with The Intercept when I went through this process after they took away my email for a year, illicitly. They’ll send you back forms from the regional office, and say, “You’ve got to make three copies of this, and you have until this day to do it,” and that day is negative. It’s 15 days before you received it. So you have negative 15 days to comply. Stuff like that. That didn’t just happen to me. It happens regularly. It’s [systemic]. It’s a shadow policy.

But even when a National Magazine Award-winning journalist presents it in The Intercept, nothing comes of it because it has to hit that threshold that things have to meet for people to care or for Congress to get involved. So, it all flows back into that same thesis, that eventually, we’re going to have to engage in enhanced civil disobedience to get these things changed.

Can you discuss that last point a little more? You mentioned before that journalists should have constituencies to promote this kind of massive civil disobedience, and you talked about your plans for building [an open-source, end-to-end-encrypted collaborative] “pursuance” system platform to build online civic entities that would do just that. Can you explain how this collaborative software will work?

This is something I was attempting to do in 2009. I recruited 75 people, including a core group of professionals and academics and we were building a system. It was originally supposed to be used to better perpetuate information — for bloggers and journalists to better share information using this mechanism I developed. But it’s expanded since then into what we call a process-democracy platform, a platform for massive civic collaboration. There’s basically a universe. We’re going to seed it with maybe 100 people in different entities — that includes institutions and nonprofits.

Anonymous, for instance — you have an [internet relay chat] room, and you have people flowing in. How do you decide who has the right to make what arrangements? Who has the right to do what? It’s all very amorphous. It’s very agile obviously, but it also burns out, which is what happened. It was burning out back then. It was subject to all kinds of internal and external threats that just couldn’t be defended against. Now, with this, the mechanism is, you’re in this server and every other person in this server [has] the same rights. You have the right to create what’s called a “pursuance,” which is an entity. It looks like this:

A diagram of several different types of pursuance online entities, some of which can be linked up together. (Courtesy: Barrett Brown)A diagram of several different types of “pursuance” online entities, some of which can be linked up together. (Courtesy: Barrett Brown)

You are, like everyone else, a little circle in this universe. You can create a sphere. So, having created this entity, you’re in control of its DNA/constitution, its centrality of being. You’re the only one connected to it at first. You define it entirely. Now, as time goes on, you may, for instance, bring people in under yourself, who are answering to you, but who have joined knowing what the role is, knowing what [the] relationship is. It’s a defined relationship. In general, those people have the ability to bring on people under them in different ways. Another way of doing it is, you create one [pursuance], and immediately let several other people have the same rights to it as you. You have several people connected to the central aspects of the pursuance, and you’re sort of running things democratically. Certain things require a unanimous vote or a majority vote among the people who are going to do work connected to it.

Several pursuances [can] connect to each other via both formal connections that are defined between the control of the pursuances, and informal connections that are between different participants. These more formal connections that are decided by whoever has agency over the pursuance, those tend to be more formal. Those are like agreements that say, “We proceed ethically in this particular case. We have this defined set of things we do and don’t do. We have information sharing agreements. We share resources.”

The original purpose of making it like this was intended to figure out how you build something like Reddit, or some other kind of online entity, and expect it to grow without having to worry about the average user base declining in quality — like Reddit for instance. Reddit starts out with early adapters. It’s very informative. You have people providing commentary on articles. It was, for a while, really the most effective way of getting actual information on things. Then it changes, obviously. So how do you get it so that you can expect this thing to grow without having to worry about decline in its quality?

The way [the pursuance] system works, it doesn’t matter if on the margins quality declines, because on the margins, these people are free to bring on people, but they still have to handle them. So if it’s data gathering, for instance, if you’re a journalist or you’re running a crowd-sourced project, and you bring on a few people, each person who’s bringing on people obviously have an impetus to bring on actual quality people to the best of their ability because they have to deal with them, and bad information, useless information, that comes out of these distant [peripheries] on the system are not going to make it up the submission, and there’s a whole mechanism for all of that.

So that was the original impetus. There are a lot of other features that make this work for different things. There’s a great mass of people out there who are tweeting and commenting, and they’re upset, and there’s some portion who are very honest people who are capable, who are knowledgeable, but who are not being provided with (a) the ability to help and (b) the ability to rise. If you present people the ability to do things correctly, and by doing things correctly, rise to a position where they have the ability to do things on a larger scale, and if you make it apparent that that ability is there, and if we provide examples of it working and provide a degree of leadership, and frankly, propaganda as to why the time has come for this kind of thing, then it will work.

Circumstances have arisen that have made this more viable. The country has deteriorated, and not just deteriorated, but suddenly, and very quickly in a way that’s plain…. So, this or something like it, is inevitable. It’s intended to give rise to a viable, cogent super-organism of opposition.

It sounds like you have a lot in the works, and I wanted to also discuss your next steps. You’ve made statements about seeking citizenship in Germany after your probation is done. Is that still your plan?

That was a decision I came to recently. Whether I move to Iceland or Germany, it doesn’t matter for the future of this [pursuance] project. The foundation will be based here. All that is kind of set. Even if I were to die tomorrow this thing would go forward because we have really good people in place that I managed to find, luckily.

Iceland is a country that is sympathetic to resistance to entrenched institutions. They just knocked down one of their own institutions with street protests. Prior to that it already had a base of a movement in Reykjavik. [Where I go] can’t be one of the Five Eyes. It can’t be a country … [where] I’d be subject to [arrest]. It has to be something where the US can’t just run in there, and grab somebody. It has to be a country that will not easily extradite someone. But Germany, the temperament of the country right now, on the whole, is such that they’re not going to hand me over to the US for whatever reason. And I can’t stay in the US because I can’t get work done if I’m always subject to these little gusts of bureaucracy, which I am. It won’t be for another year or so. I’m on probation for another two years. That generally goes down to one year if you don’t act up. So in a year from now I’ll be in a position to leave.

I wanted to also discuss the lawsuit in California concerning people who have donated to your legal fund. Could you explain that in a little more detail?

So, after I was imprisoned, [supporter and activist] Kevin Gallagher started up the “Free B[arrett] B[rown]” organization to help me out. Among the main things they did was raising money so I could get some private attorneys as opposed to the public defenders I have down here.

He raised like $5,000 at this point. The DOJ [Department of Justice], the prosecutor down here and the FBI agents … decided that they would unofficially subpoena the WePay company that was being used to hold the money, and asked them to provide all information, not just about how much money was in there, but who had donated it — all the information they had, all the identities of the donors, and they obtained that. Meanwhile, they had posted a [court] motion … saying that the money that had been raised to get me private lawyers should instead go to offset the cost of the public defender that I hadn’t asked for, and was planning to replace. Obviously, the real purpose of this was twofold. One was to prevent me from being able to get a private attorney. It’s a very unusual move [for] the DOJ. This “money-should-be-paid” thing, it’s really [an] incentive for people who have been accused of a crime who suddenly win the lottery or have an inheritance or something. Something changes from their original financial circumstance such that a case can be made that they should pay part of the public defender [costs]. It’s never used for someone who has $5,000 being raised to get a private attorney. Obviously it doesn’t make sense because, if I’m going [with] a private attorney, then there will be no cost to the state.

So, this was discovered later on, that that had happened. Over the last few years, Kevin Gallagher had been preparing a lawsuit on it. Gallagher, along with an anonymous donor who is remaining anonymous for the purpose of this [lawsuit], are challenging that move on a number of grounds. There are several legal aspects of this, sort of overlapping, but in some case mutually exclusive, different legal problems with what they did.

One of which is that they did the process very unusually, and sort of contrary to the actual law of how they’re supposed to do these things. Another being that, clearly, there’s a pattern already of them trying to obtain information on my supporters. For instance, they sought to obtain, and did obtain, the identities of everyone who contributed to the Echelon 2 dot org wiki.

So [my supporters] sued for the right for people to donate to politically-oriented causes without being identified by the FBI illicitly, especially when the FBI, in this case, has a pattern of trying to determine your supporters. So [the government has] filed their response. It happened about a week ago [from May 20]. They’re making these claims that, “Oh, no, that’s silly. How could anyone think that? We just wanted to save the state money.” So that will go on for a while. There will be counter-motions and all…. They were asking to settle, and that’s not going to happen.

But that’s something again that can be used to illustrate the actual nature of the DOJ, which is very important now because both parties ignore the DOJ, the FBI and what they do to activists, and what they do to regular people every day, until their partisan agenda is suddenly threatened by it. That’s why you saw the Democrats and the Republicans both seesawing and praising [former FBI Director James] Comey and all that … then changing their minds the next day.

Anything you want to add, or think is important to highlight?

None of this will change until a degree of insurgency becomes acceptable, which it now is to some extent. I know people now who wouldn’t have thought this five, six years ago, now agree with me that the government is frankly illegitimate in many ways and should be treated as such. I think that will become more evident. Let’s say, even if they successfully remove this administration, we still have this 35 percent of people in this country who will support any fascist authoritarian like this, and they’re still there. They may increase in number.

Even under the Obama administration, which was supposed to be the most reasonable, progressive administration ever, these institutions didn’t change. Obama could have changed the BOP through executive order or any number of things. He just didn’t. The point is that we have to realize that we cannot hope to be effective via this system. It’s worked in the past, sometimes, but we’ve also seen republics collapse. We’ve seen republics become untenable.

We’ve already achieved a constitutional police state in this country. We’ve created a country in which 70, 80 million Americans are technically criminal because of all the bizarre drug laws, and crime laws we’ve created. That’s an extraordinary fact of this country — that we can only survive as a country to the extent that we do not enforce our own laws. That’s becoming a more visible problem since we had a situation in which both the candidates in the last election probably had committed crimes, and then both sides had to determine why it was OK.

It just goes to show that this whole thing is a charade that no one really believes in. Every time you tell a lie publicly it’s because you don’t agree with the underlying premise of democracy, which is that the people should have the facts. And both sides do it. It’s something that’s in place to keep us from killing each other, but it’s not something that we really deep down, unconsciously, see as legitimate. I think that will become more apparent very easily. It’s very easy for this to all break down.

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Ministry mulls new law that discloses prices of medicines

KUALA LUMPUR: Drug firms and medicine suppliers will have to disclose the prices of their products in the near future under a proposed amendment to the law.

Health Ministry (Pharmaceutical Services Division) senior director Dr Salmah Bahri said the move would allow patients access to the retail prices of medicine contained in its database.

“At present, there is already a database of some 23,000 drugs and medicines.

“However, it is more towards providing consumer information on a voluntary basis by the companies and suppliers,” she said in an interview with The Star.

She was speaking after addressing participants at the Improving Health Innovation and Access to Medicines Seminar here on Friday.

The Sales of Drugs Act, said Dr Salmah, would be amended to make it compulsory for companies and suppliers to register the retail prices of their products with the database.

“There is no legal compulsion to register their products with the database at the moment.

“That is why we need to have the law to compel them to do so or face punishment,” she said.

The creation of a price list database of medicines would also provide greater transparency in the industry, said Dr Salmah.

Earlier, during her address, she said the ministry was in talks with stakeholders to find a solution to provide better access to drugs for the treatment of some 500,000 Malaysians with Hepatitis C.

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New Anacortes-built trawler could be grounded by old law, endangering two local firms

The largest, most modern American-made trawler built in nearly three decades may be barred from fishing in U.S. waters, with financial repercussions to its local builder and buyer “so draconian that neither company may survive.”

That’s the scenario painted by the law firm that Anacortes shipyard Dakota Creek Industries has hired to seek a rare waiver from a century-old law called the Jones Act, which they acknowledge wasn’t properly followed when the shipyard began building the state-of-the art, $75 million vessel America’s Finest.

The shipyard’s mistake — using too much foreign steel that was modified before coming into the U.S. — could mean the advanced ship must be sold abroad at a big loss.

According to the law firm’s May 16 briefing paper on the situation, that could “eliminate two Washington companies (and) more than 500 highly paid and skilled trade jobs.”

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Fishermen’s Finest, a fishing company based in Anacortes and Kirkland, hoped the 264-foot catcher processor would represent a big upgrade from its two 40-year-old vessels, and help make the fishing industry here safer and more sustainable.

But as it nears completion, the vessel threatens to sink both the fishing company and the shipbuilder.

Charlie Papavizas, a Jones Act expert at the Winston & Strawn law firm in Washington, D.C., who’s not involved with the case, said that without a waiver there are no good options for the companies.

Legislation passed early this decade opened the door for replacing the nation’s aging fishing fleets. That led Fishermen’s Finest to take the plunge, deciding to replace one of its two nearly 40-year-old ships.

It has already spent $62 million of the estimated $75 million cost of the ship, which is 86 percent complete and expected to be ready in November.

“Someone has to go first,” said Dennis Moran, president of Fishermen’s Finest. He compared it to penguins lining up at the edge of the ice, ready for one to venture in and test whether the water is safe.

“We’re the penguin and now everyone is waiting to see if we pop our head up,” he said.

What is the Jones Act?

The Jones Act, the common name for the Merchant Marine Act of 1920, regulates a wide range of ship-related laws, from workers injured at sea to when passengers can board cruise ships.

In order to fish or transport goods and people within U.S. waters, a ship must be assembled in the U.S. by American workers, and all major parts of the hull must be made with American materials.

Steel plates, beams or bars can be bought abroad and still qualify, but work on these materials must be done in an American shipyard.

“A foreign worker drilling a single hole, or making a single bend on a 2-ton steel plate will automatically disqualify the entire weight of that plate” as American-made under the Jones Act, no matter how much additional work is done on it in the U.S., according to the briefing paper by Jon Waldron, a maritime lawyer at Blank Rome in Washington, D.C.

Such foreign-made parts are limited to 1.5 percent of a ship’s weight, under Coast Guard rules.

But because Dakota Creek had parts of the hull cut and bent in Holland before being processed in the U.S., America’s Finest has about 10 percent foreign parts by weight, according to Blank Rome.

Waldron’s brief says the actual value of the foreign work on the steel was only $275,000, or 0.4 percent of the ship’s cost — but “because the foreign work was done on many different plates, all those plates are disqualified.”

Jim Gilmore, director of public affairs of At-sea Processors Association, a Seattle-based industry group for the Alaskan fishery, said he’s never heard of a similar situation with a ship coming out of an American shipyard without qualifying under the Jones Act. It’s a rule most shipyards should know, he said.

Dakota Creek Vice President Mike Nelson said the company was unfamiliar with details such as the 1.5 percent standard. Company officials were also unaware that compliance could be checked beforehand by submitting plans to a Coast Guard office, he said.

Industry shifts

Moran of Fishermen’s Finest said there’s a lot riding on the completion of the catcher processor — a ship that uses long nets for catching fish and then processes them and stores them onboard.

Dakota Creek built the last 200-plus-foot Jones Act-compliant catcher processor in the United States — the Starbound in 1989.

After that, regulations designed for fishery conservation limited which vessels could fish and made it difficult to replace or add ships to a fleet. In the past decade, fresh rules began allowing a new vessel to be added to a fleet if it replaces another.

Moran said America’s Finest would be a “big step” in bringing the industry updated technology that reduces greenhouse emissions, improves safety and uses more of the fish that are caught. Nelson believes the new technology would end up saving fishing companies money in the long run.

Moran said Dakota Creek does have a contractual obligation to give Fishermen’s Finest a Jones Act-compliant ship.

Waldron said this isn’t an attempt to set a precedent for more ships to gain exceptions, or to overturn the Jones Act; Dakota Creek is trying to get a case-specific exception for this ship only.

Political salvage effort

Jones Act waivers have been granted before, but a situation like this is extremely rare, said Papavizas, the independent attorney.

For example, someone who buys a 10- to 12-person commercial passenger vessel at a boat show might not know the Jones Act requirements and later find out that the vessel would be considered foreign, not American. In order to legally operate the ship in U.S. waters they would need to be granted an exemption.

Papavitaz said he didn’t expect the case to set any precedent. Even if Dakota Creek obtains a Coast Guard waiver, ”There’s not a high chance of this flying a second time,” he said.

The lobbying effort has gained support from U.S. Rep. Rick Larsen, whose district includes Anacortes. The House transportation and infrastructure committee on May 24 approved a Larsen-sponsored amendment to the Coast Guard Authorization Act of 2017 that would allow an exemption for America’s Finest.

Larsen told his colleagues Dakota Creek is vital to his district and “a lifeline to the U.S. maritime industry,” adding, “It’s not a mistake we made, but one we can solve.”

Douglas Wagoner, a Larsen spokesman, said the congressman had learned about the issue with the trawler the week before, and 225 Dakota Creek workers urged him to take action.

The waiver would still have to be passed by both houses of Congress.

Nelson is hoping that happens by late summer or early fall, before the expected delivery of the ship. If the companies can get past their current mess, he believes the America’s Finest embodies technology that would end up saving the fishing industry money in the long run.

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A case for diversity: Local law firms say attracting, keeping minorities a challenge

hopes her appointment as the first woman to lead a global automaker will inspire young women and men to pursue careers in science.

Mary Barra’s first appearance before reporters since getting the job in December eclipsed the glitzy rollout of the GMC Canyon small pickup truck Sunday at an old industrial building north of downtown Detroit.

Barra, who officially takes the job on Wednesday, led the truck-unveiling ceremony and then was immediately surrounded by several hundred journalists.

Responding to a question about being an inspiration to women, Barra said she hopes her engineering credentials make her a role model for young people. “With my technical background — I’m an electrical engineer — and I can motivate young women or young men to pursue a career in science,” she said.

Barra, 52, who was appointed by the board on Dec. 10 to replace the outgoing Dan Akerson, avoided a question about whether she’s under more pressure at work because she’s a woman. “I come to work every day. I work my hardest. We’re focused on the goal. We’re aligned. That’s the way I look at it,” she said.

Barra gave 11 carefully scripted answers to reporters’ questions before leaving the building, repeating several times that the company is focused on its customers. She wasn’t directly asked about her plans to lead the nation’s largest automaker, but described her management style as “collaborative.”

Barra joined GM at age 18 as a co-op student, working for several months at a time at GM’s Pontiac division while studying for her engineering degree at General Motors Institute, a Flint, Michigan, college then owned by the company.

She graduated from GMI, now Kettering University, in 1985, and GM eventually sent her to Stanford University to earn an MBA. When she returned, she rotated through a number of jobs, including executive assistant to then-CEO Jack Smith, a role often given to rising stars. She headed midsize car engineering and managed GM’s Detroit-Hamtramck plant.

Just after GM’s 2009 bankruptcy, then-CEO Ed Whitacre put her in charge of human resources, a stop that isn’t normally along the CEO track. But in Barra’s case HR was key. GM had to keep talented people from jumping ship so it had bench strength to recover. Few people left.

In 2011, Akerson plucked Barra from HR to run GM’s huge worldwide product development, an operation he says was in chaos at the time.

During her tenure, GM rolled out many new products including the acclaimed Chevrolet Impala big car, and new full-size and small pickup trucks. It also has made progress building multiple vehicles off the same underpinnings to save money. But it still lags behind rival Ford Motor Co. in the number of global cars it builds.

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Womble Carlyle, NC’s biggest law firm, combines with UK firm

The state’s largest law firm is combining with a British firm, doubling the size of each firm and giving the North Carolina partner its first international office.

Womble, Carlyle, Sandridge & Rice, a Southeastern regional powerhouse that traces its roots to Winston-Salem in 1876, will lose its marquee name, and become Womble Bond Dickinson.

Under the transatlantic combination, which becomes effective in October, the U.S. and U.K. firms will collaborate but will operate autonomously with independent management, akin to two subsidiaries. The two firms had previously announced an alliance in June 2016 and are now formalizing the business relationship with changes in the name and board structure of the organizations. (The name is already changed on the firm’s website.)

“Their clients become our clients and vice-versa,” said Betty Temple, Womble Carlyle’s CEO. “It’s an asset for our local market here when companies from the U.K. invest here or open operations here, they can have a law firm locally. They don’t have to go to New York or D.C.”

The deal will not result in layoffs, Womble Carlyle spokesman Bruce Buchannan said. Womble Carlyle has offices in South Carolina, Georgia, Virginia, Maryland, Delaware, District of Columbia and in California’s Silicon Valley.

Temple and Jonathan Blair, the managing partner of Bond Dickinson, will co-chair the combined board of directors, the firms said Thursday in an announcement. Temple will lead U.S. operations while Blair will lead the U.K. lawyers.

Womble Carlyle has about 500 lawyers in 15 offices, while Bond Dickinson has about 580 lawyers in eight offices. The firms’ combined revenue will exceed $410 million.

Womble Carlyle generated revenue of $281 million in 2016, ranking as the 114th largest law firm in the United States, according to the American Lawyer publication.

The two firms will remain financially independent. Temple said that keeping the finances separate has tax benefits as a result of each firm not having to file tax returns in both countries.

The firms blend well because they have a similar culture and values, Temple said, which was borne out during the informal alliance created last year. Temple would not share details from the discussion of Womble Carlyle’s 174 partners about changing the firm’s name, but said it is ultimately not the most important thing.

“The bigger issue is what we are versus the name,” she said. “For years, frankly, we’ve been called Womble by most of our clients.”

The firms are calling the deal a “strategic alliance” in which the U.S. lawyers will not be practicing law in England and the U.K. lawyers will not be advising clients in the United States, Buchannan said. But the firms have clients with business interests in the United States and the United Kingdom.

Womble Carlyle is the product of seven previous mergers as the firm expanded its reach across the Southeast over the years. The firm opened its Raleigh office in 1982, and in 1995 became the first North Carolina law firm to establish a website, according to its website.

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New cyber law enforced

BEIJING: China ushered in a tough new cybersecurity law, following years of fierce debate around the controversial legislation that many foreign business groups fear will hit their ability to operate in the country.

The law, passed by China’s parliament in November, requires local and overseas firms to submit to security checks and store user data within the country.

The top cyber authority said on Wednesday that it was not targeting foreign firms with the new law, after over 50 overseas companies and business groups lobbied against the legislation that includes stringent data storage and surveillance requirements.

“The purpose is to safeguard national cyberspace sovereignty and national security… rather than to restrict foreign enterprises,” the Cyberspace Administration of China (CAC) said in a statement on its website.

The law has sparked fierce push-back by firms and lobby groups that say vague wording of the regulations leaves foreign firms vulnerable to abstract interpretations of the rules.

Earlier this month, the CAC met foreign business groups in a closed-door meeting to try to allay these fears, including an 18-month phase-in period for aspects of the regulations, according to attendees.

According to a revised draft of the rules, a phase-in period until the end of 2018 would relate to measures affecting cross-border data transfers, which has been one of the most contentious elements of the new law.

The CAC notice on Wednesday made no mention of a phase-in period. It added the law is not designed to hinder international trade or the flow of data across the Chinese border.

Firms and lobby groups say the late changes to the law, while positive, leave most of the original legislation intact and remain broad. The law’s impact will therefore depend on how Beijing enforces it.

On top of internationally common standards, such as requiring user consent before moving data beyond country borders, the new cyber law also mandates companies store all data within China and pass security reviews.

This fits China’s ethos of “cyber sovereignty” – the idea that states should be permitted to govern and monitor their own cyberspace, controlling incoming and outgoing data flows.

China maintains a strict censorship regime, banning access to foreign news outlets, search engines and social media including Google and Facebook. — Reuters

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Nobody’s sure how China’s new cyber law works

Ransomware 'WannaCry' attack explained

Ransomware ‘WannaCry’ attack explained

China’s controversial new cybersecurity law came into effect Thursday in the face of criticism and confusion from international companies.

The new law is meant to strengthen the protection of personal information and combat online fraud. But some experts say it’s vague and leaves foreign businesses, especially tech firms, confused about how it will affect their operations.

For one thing, Chinese lawmakers approved the law late last year, but left many of the details regarding rules and implementation to regulators like the Cyber Administration of China, the country’s internet regulator.

“The legislators kicked the can on some of the more difficult aspects,” said Paul McKenzie, a managing partner at law firm Morrison & Foerster in Beijing.

Related: Global firms to China: Put new cyber rules on hold

While the law has officially taken effect already, the internet regulator says the work of putting in place the new rules and standards isn’t finished yet, according to a transcript of a news conference posted on its website Wednesday.

One of the most contentious parts of the new law involves measures allowing China to conduct security reviews of technology products and services that could affect national security. Critics have slammed the plans as intrusive and trade-inhibiting.

As the law kicks in, it remains unclear what kinds of products fall under the vague “national security” definition and how the reviews will work in practice.

china web browser security

In May, dozens of industry organizations, including the U.S. Chamber of Commerce, lobbied the Chinese government to delay the cybersecurity law, citing concerns over unfair advantages for Chinese companies and trade barriers.

China’s internet regulator did delay one part of the law which requires certain companies to store personal and “significant data” on servers in China.

Related: Critics slam China’s ‘draconian’ new cybersecurity law

Critics had warned that requirement would hinder trade and innovation, as foreign businesses operating in China usually need to transfer information outside the country.

On Thursday, the regulations on data storage were “still murky,” said McKenzie. Companies have now been given a grace period until 2018 to comply.

From a practical perspective, some companies may face an uncomfortable wait until the rules of the new cybersecurity law become more clearly defined. Penalties for businesses that run afoul of the law can be steep.

Failing to comply with the requirement to keep data in China, for example, could cost companies anywhere from 50,000 to 500,000 yuan ($7,350 to $73,500).

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Hudson River tunnel project opens door to private firms

By Hilary Russ
| NEWARK, N.J.

The board overseeing the construction of a new train tunnel under New York’s Hudson River agreed on Thursday to solicit information from private-sector construction and finance firms about how to complete the multibillion-dollar project.

The tunnel, part of national rail company Amtrak’s $24 billion Gateway Program, could potentially use a public-private partnership (P3) model to build and finance portions of the project, John Porcari, interim director of the Gateway Program Development Corporation, told board trustees.

“We’re really looking for the best ideas from around the world,” he said. Requesting information from private companies is different than actually requesting bids, which would come later.

Private firms have been “consistently… reaching out throughout the gestation of this whole project” and “there’s a very high level of interest,” he told reporters after the meeting.

The project is moving ahead as pressure mounts on the region’s overburdened transportation system.

This summer, Amtrak plans to replace tracks and switches in its existing century-old tunnel into New York’s Pennsylvania Station, the site of recent derailments and the source of misery for tens of thousands of commuters.

In a slide show, Porcari described the need for a new tunnel in the corporation’s starkest terms yet, saying there could be “colossal impacts” that cascade nationwide without one.

But there is uncertainty about whether Gateway will ultimately get all the federal funding it needs under the Trump administration.

Meanwhile, the corporation still lacks a permanent director and some internal governance structures, including a procurement process.

Former Port Authority vice-chairman Scott Rechler said in a recent interview that big projects sometimes do not do all the preparatory work necessary if they do not know where all their money will come from.

However, without those things in place, it is harder to get the money, he said.

“Gateway is a little bit in that mode right now,” he said. “Even hiring a permanent director. It’s hard to fill the job if you don’t know where the source of funds is coming from.”

Richard Bagger, who represents New Jersey on the corporation’s board, said a search committee is meeting weekly with a professional search firm.

“We expect the search to be progressing actively over the summer and are hoping to conclude by September,” he told reporters.

Trustees also voted on Thursday to look for an outside law firm to lay out a procurement process and finish other structural matters.

(Reporting by Hilary Russ; Editing by Daniel Bases)


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