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The ongoing conflict between Google and China escalated earlier this month as Google announced it had discovered that the hacking of its servers had originated from the Chinese government.

The hacking code used was traced to China’s territory, but not to the Chinese government, which, not surprisingly, denies any connection to the attack. How Google came to the conclusion that the hack had come from the Chinese government has yet to be disclosed.

China currently has the most Internet users of any country in the world. JP Morgan and Chase estimates that Google will make roughly six hundred million dollars in the Chinese market in 2010. Withdrawing from China would clearly be a poor business decision.

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The state’s high court said today that sexually explicit instant messages used by a Beverly man to arrange a sexual encounter with someone he thought was a 13-year-old girl are not illegal under current state law.

The Supreme Judicial Court reversed the conviction of Matt H. Zubiel, who in 2006 used IMs to chat not with a teenager but with Plymouth County Deputy Sheriff Melissa Marino, who was searching the Internet for child predators.

In 2007, Zubiel was convicted in Plymouth Superior Court of attempted dissemination of materials harmful to a minor and was sentenced to one year in jail.

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China’s police are working with the country’s highest investigative organ and the Supreme People’s Court to release a judicial interpretation on hacking crimes, according to the People’s Daily, the official paper of the Communist Party, citing a Chinese police representative. The report gave no details, but such documents are used to direct lower-level Chinese courts on how to apply laws.

The move would be the latest of China’s efforts to strengthen laws against cybercrime, which have come alongside a growing number of reported arrests and court sentences for hacking in the country in the last year.

The report comes after Google last month drew global attention to hacking in China by saying it had been hit by cyberattacks from the country. Google cited the attacks, which resulted in the loss of intellectual property, as one reason it plans to stop censoring its China-based search engine, even if the move forces it to shut down its China offices.

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Twitter reset passwords for an unknown number of users on Tuesday whose accounts appeared to have been compromised via phishing.

“As part of Twitter’s ongoing security efforts, we reset passwords for a small number of accounts that we believe may have been compromised offsite,” the company said in a statement.

Some Twitter users apparently “used their Twitter username and password to sign up for an untrusted third-party application which then posted Tweets to their account,” a spokeswoman said.

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PITTSBURGH (AP) – A federal appeals court has revived part of a western Pennsylvania couple’s lawsuit against Internet search engine Google Inc.

But the 3rd U.S. Circuit Court of Appeals ruling says Aaron and Christine Boring will have to prove the pictures of their home on Google’s “Street View” actually hurt them to collect more than $1 from a federal court jury.

A federal magistrate last year threw out the lawsuit saying the Pittsburgh-area couple couldn’t prove the pictures actually harmed them.

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On January 22, 2010, the Supreme Court of the United States granted unlimited corporate spending on elections. The justices overturn a century of U.S. electoral law by a 5-4 vote. Millions of extra dollars are expected to start flowing from big business to Republican candidates.

Overturning a century-old restriction, the Supreme Court ruled Thursday that corporations may spend as much as they want to sway voters in federal elections.

In a landmark 5-4 decision, the court’s conservative bloc said that corporations have the same right to free speech as individuals and, for that reason, the government may not stop corporations from spending to help their favored candidates.

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U.S. DEPARTMENT OF STATE

The Newseum, Washington, D.C.

SECRETARY CLINTON: Thank you very much, Alberto, for not only that kind introduction but you and your colleagues’ leadership of this important institution. It’s a pleasure to be here at the Newseum. The Newseum is a monument to some of our most precious freedoms, and I’m grateful for this opportunity to discuss how those freedoms apply to the challenges of the 21st century.

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Redmond’s top legal mouthpiece Brad Smith is calling on US lawmakers to overhaul rules on cloud computing, just as the company ramps up its efforts to belatedly step on other vendors’ toes in that marketplace.

He asked Congress yesterday to legislate cloud computing, in a move to protect business and consumer information.

Smith’s comments came on the same day that Microsoft inked a deal with cloud rival Intuit, and spun out a survey about the relevance of small businesses climbing on board the hosted services wagon.

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Internet pirates are moving away from safe havens such as Sweden to new territories that include China and Ukraine, as they try to avoid prosecution for illegal file sharing, according to experts.

For several years, piracy groups that run services allowing music, video and software to be illegally shared online have been using legal loopholes across a wide range of countries as a way of escaping prosecution for copyright infringement.

In the last year there has been a significant shift, say piracy experts, as the groups have worked to stay beyond the reach of western law enforcement.

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PHILADELPHIA (AP) – A federal appeals court must decide whether “sexting” by three Pennsylvania teens amounts to child pornography or is a free-speech right.

A three-judge panel in Philadelphia is hearing arguments Friday in a case between a county prosecutor and the American Civil Liberties Union.

The prosecutor is threatening to file child-pornography charges against three girls after racy cell-phone images of them circulated through their high school. The photos show one girl topless and the others in bras.

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