SUNDAY FEBRUARY 21, 2016 Managing Editor Waylon Harris (870) 935-5525
| BUSINESS/CLASSIFIEDS |
THE JONESBORO SUN
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Trinamic promotes two
JONESBORO — Rick Bailey and Greg Markum have been promoted by Trinamic Corporation, headquartered in Jonesboro. Trinamic owns AutoMail LLC, a software development company, and DOC, Document Output Center, an outsource provider of document creation and delivery services with a satellite facility in St. Louis. The announcement
was made by Harry Herget and Steve Smith, Trinamic founders. Bailey was named vice president and marketing manager of Trinamic Corporation. Bailey’s current role as Midwest regional sales manager will continue with the added responsibilities of planning and coordinating marketing activities for the entire company. He is a graduate of Northern Illinois University in
DeKalb. “Bailey has the professional experience and technical skills to define Trinamic’s marketing objectives and to translate them into optimal sales results,” Herget said. Greg Markum has been named Trinamic’s assistant vice president and manager of technical services. He also serves as Trinamic’s security and compliance officer. In his new role, Markum
will manage the company’s customer service department. Markum earned a degree in computer science at Arkansas State University. “Success today relies heavily on technically talented people like Greg. When combined with successful management experience, you’ve got a very valuable human resource and an important corporate asset,” Smith said.
Profit or patriotism? What’s driving fight between U.S., Apple BY TAMI ABDOLLAH AND ERIC TUCKER Associated Press
WASHINGTON — Apple Inc. and the U.S. government are making their cases before anyone steps into a courtroom over a judge’s order forcing Apple to help the FBI hack into an iPhone in a terrorism case. Their legal arguments are expected to pit digital privacy rights against national security interests, and could affect millions of cellphone users. Apple has until next Friday to protest in court the decision by a U.S. magistrate judge in California, according to two people familiar with the case who spoke on condition of anonymity to describe ongoing, private legal discussions. One person said Apple had requested an extension and that the judge granted it during a teleconference Thursday with lawyers in the case. Prosecutors had opposed the request, the person said. The publicly available court docket wasn’t immediately updated to reflect the new schedule. Meanwhile, the public relations campaigns are already under way. Is Apple adequately cooperating with federal agents investigating last year’s deadly attack in San Bernardino, California? Is this simply a dispute to recover information from an iPhone used by the gunman, or a broader fight affecting the privacy rights of citizens who use
Apple’s flagship product? Is this about profits or patriotism? The Justice Department asked the judge to order Apple to create sophisticated software that the FBI could load onto the phone to bypass a self-destruct feature that erases all data after 10 consecutive, unsuccessful attempts to guess the unlocking passcode. Prosecutors said Apple could help the FBI “but has declined to provide that assistance voluntarily,” and they said Apple could perform the task easily. That point is crucial because the government can’t compel a company’s help in some cases if doing so would be unreasonably burdensome, even though the U.S. would almost certainly pay Apple for the work. Apple CEO Tim Cook distanced the company from the suggestion that it was protecting the privacy of an extremist. “The FBI asked us for help in the days following the attack, and we have worked hard to support the government’s efforts to solve this horrible crime,” Cook said. “We have no sympathy for terrorists.” Cook also said the FBI’s latest demand went beyond previous requests for help: “The U.S. government has asked us for something we simply do not have, and something we consider too dangerous to create,” Cook said. “They have asked us to build a backdoor to the iPhone.”
AP Photo/Ringo H.W. Chiu
An Apple iPhone 6s Plus smartphone is displayed at an Apple store in Los Angeles in September. On Wednesday, a federal judge ordered Apple Inc. to help the FBI hack into an encrypted iPhone used by Syed Farook, who along with his wife, Tashfeen Malik, killed 14 people in December in the worst terror attack on U.S. soil since Sept. 11, 2001. Apple has helped the government before in this and previous cases, but this time Apple CEO Tim Cook said no and Apple is appealing the order. The term “backdoor,” describing a behind-thescenes method that hackers use to gain unauthorized access, has for years colored the discussion of how the government can obtain protected information or eavesdrop on encrypted communications from criminals or terrorists. The government is stressing that it wants help to unlock only the work-issued iPhone used by Syed Farook, who along with his wife killed 14 people in December. But Apple says helping the U.S. bypass its encryption locks on Farook’s iPhone would threaten the privacy of all its customers. “While the government may argue that its use would be limited to this case, there is no way to guarantee such control,” Cook said, adding: “Ultimately, we fear that this demand would undermine the very
freedoms and liberty our government is meant to protect.” FBI Director James Comey has been slow to criticize U.S. technology executives over such concerns, describing them as “good people” who share the bureau’s commitment to public safety. But in recent months, he suggested companies have the technical capability to help the FBI but don’t have a business interest. “Lots of good people have designed their systems and their devices so that judges’ orders cannot be complied with, for reasons that I understand,” Comey told the Senate Judiciary Committee one week after the California shootings. “I’m not questioning their motivations. The question we have to ask is, should they change their business model?”
Big tech companies joining Apple in encryption fight BY BRANDON BAILEY AND MICHAEL LIEDTKE Associated Press
SAN FRANCISCO — The tech industry is starting to line up with Apple in its fight against the federal government over the encryption it uses to keep iPhones secure. Earlier this week, a U.S. magistrate ordered Apple to help investigators break into an iPhone used by one of the San Bernardino mass shooters. Apple was given until Tuesday to challenge that ruling, but a person familiar with the case says Apple has been granted an extension until next Friday. The court order sets the stage for a legal clash that could determine whether tech companies or government authorities get the final say on just how secure devices like smartphones can be. Federal officials say they’re only asking Apple for limited assistance. Other leading tech companies were initially silent when the case erupted. But several are now voicing support for Apple CEO Tim Cook’s argument that the federal order would degrade iPhone security, making users more vulnerable to spies and cyber thieves. “We stand with @tim_cook and Apple (and thank him for his
leadership)!” Twitter chief executive Jack Dorsey wrote in a tweet Thursday afternoon. In a statement late Thursday, Facebook said it condemns terrorism and also appreciates the essential work of law enforcement in keeping people safe. But it said it will “fight aggressively” against requirements for companies to weaken the security of their systems. “These demands would create a chilling precedent and obstruct companies’ efforts to secure their products,” the statement said. Google CEO Sundar Pichai had earlier voiced support for Apple in a series of tweets. “Forcing companies to enable hacking could compromise users’ privacy,” Pichai wrote on Wednesday, adding that the case “could be a troubling precedent.” Yahoo’s chief information security officer, Bob Lord, chimed in with his support of Apple, although there was no word from that company’s embattled CEO, Marissa Mayer. “Ordering a company to hack one targeted system is clearly the first step to ordering them to backdoor them all,” Lord tweeted Friday with the hashtags “slipperyslope” and “usersfirst.” Apple’s recent iPhones use
encryption security that Apple itself can’t unlock. The government isn’t asking Apple to help break the iPhone’s encryption directly, but to disable other security measures that prevent attempts to guess the phone’s passcode. Cook argues that once such a tool is available, “the technique could be used over and over again, on any number of devices.” Law enforcement insists that safeguards could be employed to limit use of the workaround to the particular phone at hand. For months, Cook has engaged in a sharp, public debate with government officials over his company’s decision to shield the data of iPhone users with strong encryption — essentially locking up people’s photos, text messages and other data so securely that even Apple can’t get at it. Law-enforcement officials from FBI Director James Comey on down have complained that terrorists and criminals may use that encryption as a shield. While tech companies have spoken against broad government surveillance in the past, the Obama administration has recently sought to enlist the tech industry’s help in fighting terrorism.
Paragould Hays announces new store manager PARAGOULD — Hays Supermarkets announced Chris Watson as store manager for Hays on East Kingshighway in Paragould. Watson takes over for Barry Hestand, who was recently named store manager for the Walnut Ridge location. Watson had been serving as store manager at the Hays on Nettleton in Jonesboro for four years prior to accepting the new role. Watson was also a store manager at the Hays on Gee Street in Jonesboro and has held different positions at Hays for 14 years. “Chris was the clear choice to take over this store for us. He’s been with Hays a long time and has an extensive history with this store,” Jon David King, vice president of operations, stated. “He is a hard-
working manager dedicated to making his store as successful as it can possibly be.” Before Joining Hays, Watson was an assistant store manager for Big Star in Paragould. “I’m Watson looking forward to returning home to Paragould. Having worked at Hays No. 10 prior to managing in Jonesboro, it’s a homecoming for me,” Watson said. “Rekindling relationships with coworkers and customers will be a joy.” Watson and his wife Sheri live in Paragould with their kids, Emily and Rachel.
Consumer prices show signs of acceleration BY JOSH BOAK Associated Press
WASHINGTON — U.S. consumer prices were unchanged in January, as the rising costs of housing and health care were largely offset by cheaper oil. But the annual pace of inflation showed signs of acceleration. The Labor Department said Friday that prices have risen 1.4 percent over the past 12 months, compared to a year ago when annual inflation was close to zero. Consumer prices climbed at the fastest annual rate since October 2014. Core inflation, which excludes volatile energy and food costs, rose 0.3 percent in January. Over the past 12 months, this category closely watched by the Federal Reserve has climbed 2.2 percent. The rising tempo for inflation follows a Fed decision in December to raise a key short-term interest rate for the first time in nearly a decade. But the turmoil in the stock and bond markets after the Fed rate hike suggested to many investors that inflation might barely budge amid a slowing global economy. Jennifer Lee, a senior economist at BMO Capital Markets, said that January’s report on consumer prices affirms the Fed’s decision and raises the potential for further rate increases later this year. “In a way, this justifies the December rate hike and keeps the Fed at the rate hike table,” she said.
The combination of a strong dollar and cheaper oil has suppressed inflation across much of the economy. Gasoline prices at the pump have dropped 24 percent over the past year to a national average of $1.72 a gallon. At the same time, economic growth struggles worldwide have pushed up the value of the dollar, making foreign imports cheaper. But the rate of gasoline prices declining slowed in January, weakening its downward pull on inflation. Housing expenses — which account for a third of the consumer price index— have risen 3.2 percent from a year ago. Medical services are up 3.3 percent. In January, prices also rose on a monthly basis for airfare, clothing and autos, while food expenses were flat. The Fed is closely following inflation, looking for assurance that it will accelerate to 2 percent in its preferred measure. That particular measure of personal consumption places less of an emphasis on housing. It posted a modest annual increase of 0.6 percent in December. Fed officials have said they are increasingly unsure about the path of inflation after raising a key interest rate in December from a record low set in late 2008. The quarter-point increase pushed the federal funds rate from near zero to a range of 0.25 percent to 0.5 percent.
AP Photo/Lynne Sladky
Shoppers walk along Lincoln Road Mall, a pedestrian area featuring retail shops and restaurants in Miami Beach, Fla. Consumer prices for January were unchanged, according to a Labor Department report.