Matt Damon fracking film in Berlin festival lineup

BERLIN (Reuters) – The Berlin film festival on Thursday announced the first movies of its 2013 lineup, and among the main competition entries will be U.S. director Gus Van Sant‘s drama starring Matt Damon and centering around the controversial shale gas industry.

“Promised Land” will have its international premiere at the annual cinema showcase, although it is scheduled to be launched first in the United States.

According to online reports, “The Bourne Identity” star Damon was originally down to direct the movie tackling the practice of hydraulic fracturing, or “fracking” for shale gas, which has raised concerns over its environmental impact.

The film reunites the actor and film maker after Van Sant directed Damon in the acclaimed 1997 drama “Good Will Hunting”.

Damon was nominated for a best actor Academy Award for his performance and won a screenplay Oscar along with co-writer Ben Affleck for a movie that helped launch their Hollywood careers.

Also in the main competition in Berlin is “Gloria”, directed by Chilean film maker Sebastian Lelio, Korean entry “Nobody’s Daughter Haewon” directed by Hong Sangsoo and Romanian picture “Child’s Pose” by Calin Peter Netzer.

There will be a world premiere for “Paradise: Hope”, the final installment of Austrian director Ulrich Seidl’s Paradise trilogy, while out of competition in Berlin is 3D animation film “The Croods”, featuring the voice of Nicolas Cage.

And under the Berlinale Special heading comes documentary “Redemption Impossible”.

The 63rd Berlin film festival runs from February 7-17.

(Reporting by Mike Collett-White, editing by Paul Casciato)

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Menopause quality of life unchanged by soy supplements

NEW YORK (Reuters Health) – Menopausal women who took soy supplements during a two-year trial reported no differences in quality of life compared to their counterparts taking placebo pills, U.S. researchers report.

It’s possible that soy could still offer women some benefits through menopause, said the study’s lead author Dr. Paula Amato, from Oregon Health and Science University in Portland, “but I think if you are similar to the subjects in the study, then probably taking supplements isn’t going to make a huge impact on your quality of life.”

In light of health concerns attached to taking hormones, soy has been seen as an attractive alternative for relieving menopausal symptoms. But research on the effectiveness of soy extracts for hot flashes and other bothersome symptoms has yielded conflicting results so far.

In the new report, published in the medical journal Menopause, Amato and her colleagues looked not just at specific symptoms but overall quality of life measures among healthy women, mostly in their 50s and six years or more into menopause on average.

Several hundred women were asked to take supplement pills three times a day for two years. Among them, 126 took a fake supplement that contained no soy extract, while 135 women took tablets containing a total of 80 milligrams a day of soy protein and another 123 women took 120 mg each day.

At the start of the study and again one and two years into it, the women filled out a quality of life survey that asked about mental, physical and sexual health as well as about hot flashes.

In each of the surveys, the women in all three groups scored similarly on the main measures in the questionnaire.

“From our study and the good amount of the literature to date it appears that taking soy supplements after menopause does not improve quality of life,” said Amato. “We can’t really recommend it to our patients.”

Mark Messina, president Nutrition Matters and an adjunct professor at Loma Linda University in California, cautioned against concluding that the key ingredients in soy supplements, known as isoflavones, don’t have any effect on hot flashes, however.

“Unfortunately, because of the severe limitations of this study, very little if anything can be learned about isoflavones and hot flashes,” Messina wrote in an email to Reuters Health.

For one, he said, the levels of a particular type of isoflavone – called genistein – were lower than in other studies that have found benefits from soy extracts.

Additionally, the researchers originally set out to look at the effects of soy extracts on bone health, and did not recruit women specifically with hot flash or quality of life concerns in mind.

“So in my opinion, no useful information about isoflavones and hot flashes is provided by this study,” said Messina, who regularly consults for companies that make or sell soy foods and supplements.

Isoflavone companies market the supplements, sold for about $ 17 for 90 50-mg pills, as “potentially” easing the changes associated with menopause.

Amato agreed that the study has some limitations, and that the findings can’t be generalized to all forms of soy in all types of women.

For instance, “taking supplements just might not be the same as eating a high soy content diet your entire life,” she told Reuters Health.

But “if you look at this specific supplement for this particular group of women for this reason, quality of life, I’m convinced by this study it’s not terribly helpful,” she added.

SOURCE: http://bit.ly/UsyPIY Menopause, online December 3, 2012.

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20 children, 6 adults killed at Conn. school shooting

NEWTOWN, Conn. (AP) — A gunman opened fire inside a Connecticut elementary school, killing 26 people, including 20 children, by blasting his way through the building as young students cowered helplessly in classrooms while their teachers and classmates were shot.

The attack, coming less than two weeks before Christmas, was the nation's second-deadliest school shooting, exceeded only by the Virginia Tech massacre in 2007.

The gunman killed himself and another person was found dead at a second scene, leading to a total toll of 28, authorities said.

Panicked parents raced to Sandy Hook Elementary School, about 60 miles northeast of New York City, looking for their children in the wake of the shooting. Students were told to close their eyes by police as they were led from the building.

Robert Licata said his 6-year-old son was in class when the gunman burst in and shot the teacher.

"That's when my son grabbed a bunch of his friends and ran out the door," he said. "He was very brave. He waited for his friends."

He said the shooter didn't utter a word.

A photo taken by The Newtown Bee newspaper showed a group of young students — some crying, others looking visibly frightened — being escorted by adults through a parking lot in a line, hands on each other's shoulders.

Stephen Delgiadice said his 8-year-old daughter was in the school and heard two big bangs. Teachers told her to get in a corner, he said.

"It's alarming, especially in Newtown, Connecticut, which we always thought was the safest place in America," he said. His daughter was fine.

Andrea Rynn, a spokeswoman at the hospital, said it had three patients from the school but she did not have information on the extent or nature of their injuries.

Mergim Bajraliu, 17, heard the gunshots echo from his home and ran to check on his 9-year-old sister at the school. He said his sister, who was fine, heard a scream come over the intercom at one point. He said teachers were shaking and crying as they came out of the building.

"Everyone was just traumatized," he said.

Richard Wilford's 7-year-old son, Richie, is in the second grade at the school. His son told him that he heard a noise that "sounded like what he described as cans falling."

The boy told him a teacher went out to check on the noise, came back in, locked the door and had the kids huddle up in the corner until police arrived.

"There's no words," Wilford said. "It's sheer terror, a sense of imminent danger, to get to your child and be there to protect him."

At the White House, a tearful President Barack Obama said he grieved about the massacre as a father first, declaring "our hearts are broken today." He promised action to prevent such tragedies again but did not say what that would be.

The scene in the White House briefing room was one of the most outwardly emotional moments of Obama's presidency.

"The majority of those who died were children — beautiful, little kids between the ages of 5 and 10 years old," Obama said.

He paused for several seconds to keep his composure as he teared up and wiped an eye. Nearby, two aides cried and held hands as they listened to Obama.

"They had their entire lives ahead of them — birthdays, graduations, wedding, kids of their own," Obama continued about the victims. "Among the fallen were also teachers, men and women who devoted their lives to helping our children."

___

Associated Press writers Jim Fitzgerald in Newtown, Pete Yost in Washington, D.C., and Michael Melia in Hartford contributed to this report.

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NKorea rocket launch shows young leader as gambler

PYONGYANG, North Korea (AP) — A triumphant North Korea staged a mass rally of soldiers and civilians Friday to glorify the country’s young ruler, who took a big gamble this week in sending a satellite into orbit in defiance of international warnings.

Wednesday’s rocket launch came just eight months after a similar attempt ended in an embarrassing public failure, and just under a year after Kim Jong Un inherited power following his father’s death.

The surprising success of the launch may have earned Kim global condemnation, but at home the gamble paid off, at least in the short term. To his people, it made the 20-something Kim appear powerful, capable and determined in the face of foreign adversaries.

Tens of thousands of North Koreans, packed into snowy Kim Il Sung Square, clenched their fists in a unified show of resolve as a military band tooted horns and pounded on drums.

Huge red banners positioned in the square called on North Koreans to defend Kim Jong Un with their lives. They also paid homage to Kim Jong Un’s father, Kim Jong Il, and his grandfather, North Korean founder Kim Il Sung.

Pyongyang says the rocket put a crop and weather monitoring satellite into orbit. Much of the rest of the world sees it as a thinly disguised test of banned long-range missile technology. It could bring a fresh round of U.N. sanctions that would increase his country’s international isolation. At the same time, the success of the launch could strengthen North Korea’s military, the only entity that poses a potential threat to Kim’s rule.

The launch’s success, 14 years after North Korea’s first attempt, shows more than a little of the gambling spirit in the third Kim to rule North Korea since it became a country in 1948.

“North Korean officials will long be touting Kim Jong Un as a gutsy leader” who commanded the rocket launch despite being new to the job and young, said Kim Byung-ro, a North Korea specialist at Seoul National University in South Korea.

The propaganda machinery churned into action early Friday, with state media detailing how Kim Jong Un issued the order to fire off the rocket just days after scientists fretted over technical issues, ignoring the chorus of warnings from Washington to Moscow against a move likely to invite more sanctions.

Top officials followed Kim in shrugging off international condemnation.

Workers’ Party Secretary Kim Ki Nam told the crowd, bundled up against a winter chill in the heart of the capital, that “hostile forces” had dubbed the launch a missile test. He rejected the claim and called on North Koreans to stand their ground against the “cunning” critics.

North Korea called the satellite a gift to Kim Jong Il, who is said to have set the lofty goal of getting a satellite into space and then tapped his son to see it into fruition. The satellite, which North Korean scientists say is designed to send back data about crops and weather, was named Kwangmyongsong, or “Lode Star” — the nickname legendarily given to the elder Kim at birth.

Kim Jong Il died on Dec. 17, 2011, so to North Koreans, the successful launch is a tribute. State TV have been replaying video of the launch to “Song of Gen. Kim Jong Il.”

But it is the son who will bask in the glory, and face the international censure that may follow.

Even while he was being groomed to succeed his father, Kim Jong Un had been portrayed as championing science and technology as a way to lift North Korea out of decades of economic hardship.

“It makes me happy that our satellite is flying in space,” Pyongyang citizen Jong Sun Hui said as Friday’s ceremony came to a close and tens of thousands rushed into the streets, many linking arms as they went.

“The satellite launch demonstrated our strong power and the might of our science and technology once again,” she told The Associated Press. “And it also clearly testifies that a thriving nation is in our near future.”

Aside from winning him support from the people, the success of the launch helps his image as he works to consolidate power over a government crammed with elderly, old-school lieutenants of his father and grandfather, foreign analysts said.

Experts say that what is unclear, however, is whether Kim will continue to smoothly solidify power, steering clear of friction with the powerful military while dealing with the strong possibility of more crushing sanctions. The United Nations says North Korea already has a serious hunger problem.

“Certainly in the short run, this is an enormous boost to his prestige,” according to Marcus Noland, a North Korea analyst at the Peterson Institute for International Economics in Washington.

Noland, however, also mentioned the “Machiavellian argument” that this could cause future problems for Kim by significantly boosting the power of the military — “the only real threat to his rule.”

Successfully firing a rocket was so politically crucial for Kim at the onset of his rule that he allowed an April launch to go through even though it resulted in the collapse of a nascent food-aid-for-nuclear-freeze deal with the United States, said North Korea analyst Kim Yeon-su of Korea National Defense University in Seoul.

The launch success consolidates his image as heir to his father’s legacy. But it could end up deepening North Korea’s political and economic isolation, he said.

On Friday, the section at the rally reserved for foreign diplomats was noticeably sparse. U.N. officials and some European envoys stayed away from the celebration, as they did in April after the last launch.

Despite the success, experts say North Korea is years from even having a shot at developing reliable missiles that could bombard the American mainland and other distant targets.

North Korea will need larger and more dependable missiles, and more advanced nuclear weapons, to threaten U.S. shores, though it already poses a shorter-range missile threat to its neighbors.

The next big question is how the outside world will punish Pyongyang — and try to steer North Korea from what could come next: a nuclear test. In 2009, the North conducted an atomic explosion just weeks after a rocket launch.

Scott Snyder, a Korea specialist for the Council on Foreign Relations, wrote recently that North Korea‘s nuclear ambitions should inspire the U.S., China, South Korea and Japan to put aside their issues and focus on dealing with Pyongyang.

If there is a common threat that should galvanize regional cooperation, “it most certainly should be the prospect of a 30-year-old leader of a terrorized population with his finger on a nuclear trigger,” Snyder said.

____

Jon Chol Jin in Pyongyang, and Foster Klug and Sam Kim in Seoul, South Korea, contributed to this report. Follow Jean H. Lee on Twitter: (at)newsjean.

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Xbox 720 and PlayStation 4 might not launch until 2014

Nintendo (NTDOY) says its kickstarted the next generation of video game consoles with the Wii U. But considering its graphics and processing power are comparable to Microsoft’s (MSFT) Xbox 360 and Sony’s (SNE) PlayStation 3, hardcore gamers are holding out for the next Xbox, tentatively dubbed “Xbox 720,” and next-generation PlayStation, tentatively called PS4. Rumors insist Microsoft and Sony will both launch their next consoles in the fall of 2013, but SemiAccurate, the website that first reported the next Xbox could see a delay, says there is a bit of confusion over how the consoles are progressing and when they’ll arrive.

According to SemiAccurate, the next Xbox is currently code-named “Kryptos” and not “Durango” anymore, and the next PlayStation is now code-named “Thebes” rather than “Orbis.” The PS4 will reportedly have a 28-nanometer AMD chipset and will be produced by IBM or Global Foundries.

SemiAccurate says the PS4 could be released in spring of 2014 or fall 2014 and the Xbox 720 could still see the delay from fall 2013 to 2014.

Xbox World claimed last month that the next Xbox will have a Blu-ray disc drive, Kinect 2.0, directional audio, TV output and input, an “innovative controller” and support for augmented reality glasses – all packaged in a magnesium alloy shell that will supposedly use the same patented “VaporMg” process found on the Surface tablet.

Not only that, but Microsoft is also working on an “Xbox Lite,” according to reports from earlier this year.

As for PS4 details, VG247 reported in November that Sony has already sent out various developer kits with specs including 16GB of RAM and 256GB of storage.

Sony and Microsoft are expected to reveal their next consoles at E3 2013 this coming June.

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Documents: Prisoner plotted to kill Justin Bieber

LAS CRUCES, N.M. (AP) — An imprisoned man whose infatuation with Justin Bieber included a tattoo of the pop star on his leg has told investigators in New Mexico he hatched a plot to kill him.

Court documents in a New Mexico district court say Dana Martin told investigators he persuaded a man he met in prison and the man’s nephew to kill Bieber, Bieber’s bodyguard and two others not connected to the pop star.

He told investigators that Mark Staake and Tanner Ruane headed east, planning to be near a Bieber concert scheduled in New York City. They missed a turn and crossed into Canada from Vermont. Staake was arrested on an outstanding warrant. Ruane was arrested later.

The two men face multiple charges stemming for the alleged plot.

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U.S. faces task of running dozens of health exchanges

WASHINGTON (Reuters) – Fourteen U.S. states and the District of Columbia so far have told the federal government they plan to operate healthcare exchanges under President Barack Obama‘s reform law, leaving Washington with the daunting task of creating online marketplaces for at least two-thirds of the country.

On the eve of a federal deadline for states to say whether they will run their own exchanges, a top U.S. healthcare policy official told lawmakers that the exchanges will start enrolling eligible families starting on October 1, 2013.

“I am confident that states and the federal government will be ready in ten months, when consumers in all states can begin to apply,” Gary Cohen, director of the Center for Consumer Information and Insurance Oversight, told a health oversight panel in the U.S. House of Representatives.

Cohen, whose agency is part of the U.S. Department of Health and Human Services (HHS), was among federal officials who testified alongside state health authorities at a hearing of the House Energy and Commerce Subcommittee on Health.

In written testimony, Cohen said 15 states have told the administration they will operate their own exchanges. He later explained under questioning that the count comprises 14 states and the District of Columbia.

Separately, HHS officials confirmed the count of 14 states but could not immediately explain why Cohen’s written testimony contained a higher number.

Some experts say the number of states planning to operate their own exchanges could reach 18 by the time the deadline arrives Friday. Still, the nonpartisan Kaiser Family Foundation, which tracks healthcare issues, says only two states – Utah and Florida – remain undecided.

That would leave at least 30 states in which the administration would be required to run exchanges, a challenge that is raising questions about how successfully U.S. officials can implement a key provision of the healthcare reform law, known to opponents and advocates alike as “Obamacare”.

“I don’t envy them for the job that they have,” said Dennis Smith, a former federal healthcare official who now heads health services in Wisconsin, a state that has decided not to pursue its own exchange.

“At the end of the day, you’re trying to connect a buyer to a seller. And the fundamental things required to do that are not yet in place,” he said.

The Patient Protection and Affordable Care Act, which Obama signed into law more than 2-1/2 years ago, is expected to extend health coverage to more than 30 million uninsured Americans. Those who enroll starting in October would be covered by insurance from January 1, 2014.

POLITICAL THEATER

About half of those newly insured individuals would purchase private coverage from online exchanges at federally subsidized rates. Ultimately, the number of people finding coverage through exchanges is expected to reach 26 million, according to the nonpartisan Congressional Budget Office.

The remainder would be covered by expanding the Medicaid program for the poor to cover all adults earning up to 133 percent of the federal poverty level, or about $ 15,000 for individuals and $ 30,600 for a family of four.

Thursday’s hearing provided a political stage for partisan rhetoric about Obama’s health reforms, which have survived repeated Republican repeal efforts, a nail-biting consideration by the Supreme Court and the Presidential election campaign.

Republicans and state officials from Republican-led states complained about compliance costs and accused HHS of delaying the release of vital details and rules needed to move forward on the exchanges and on the planned Medicaid expansion.

“The uncertain regulatory environment and the overall lack of response from HHS are not encouraging the states or the health plans to move forward,” said Representative Michael Burgess, a Texas Republican.

In response, Congressional Democrats and their state allies stressed the law’s benefits for senior citizens, protections for young adults and the sick, and the prospective economic benefits from an expected influx of billions of dollars in federal money.

“The (Republican) move now is to delay implementation under the guise of lack of information,” said Representative Frank Pallone, a New Jersey Democrat.

“The world in fact is not coming to an end,” he added. “The nation will be better because of the Affordable Care Act.”

States that don’t run their own exchanges would opt for one of two alternatives: a federally facilitated exchange that requires minimal state participation, or a federal partnership exchange in which states help by performing certain duties.

Kaiser Family Foundation expects six states to choose the partnership option and two dozen to opt for federally facilitated exchanges. Cohen said the count so far is four partnerships and seven facilitated exchanges.

States have until February 15 to say whether they intend to seek a federal partnership exchange. Four have done so already, Cohen said.

The administration will have to engineer an information technology system capable of processing operations in a way that meet the needs of healthcare consumers in different states.

Experts say the biggest challenge will likely be providing adequate customer service to handle enrollment, as well as fielding a technology system capable of interfacing seamlessly with the system of each state government.

Cohen told the panel the administration is building a website with interactive capabilities and a call center and has begun testing a data services hub to determine eligibility.

(Reporting by David Morgan; Editing by Ros Krasny, Jilian Mincer, Nick Zieminski and David Gregorio)

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Rice drops out of race for top State post

Susan Rice, the embattled U.S. Ambassador for the U. N., withdrew her name from consideration Thursday to be Secretary of State.

"If nominated, I am now convinced that the confirmation process would be lengthy, disruptive and costly — to you and to our most pressing national and international priorities," Rice wrote in a letter to President Barack Obama, NBC News first reported.

President Barack Obama confirmed her withdrawal in a statement Thursday afternoon, saying, "While I deeply regret the unfair and misleading attacks on Susan Rice in recent weeks, her decision demonstrates the strength of her character, and an admirable commitment to rise above the politics of the moment to put our national interests first."

Talk of Rice being nominated to succeed Hillary Clinton stirred significant controversy following Rice's role in the handling of the Sept. 11, 2012 attack on the U.S. Embassy in Benghazi, Libya.

Republicans accuse Rice of misleading the public about intelligence which indicated the attack was premeditated. And the White House has been accused of ignoring requests for increased security at the embassy.

Rice's withdrawal is a loss for the administration, which had staunchly defended Rice amid significant criticism, and will be viewed as a win for Arizona Republican Sen. John McCain and other Republican senators who had vowed to block Rice's confirmation.

Republican Sen. Lindsey Graham of South Carolina, one of Rice's leading detractors, declared Thursday, "I respect Ambassador Rice's decision" and said Obama "has many talented people to choose from" to succeed Clinton.

Graham accused the administration of "stonewalling" efforts to look into the Benghazi attack and vowed to keep "working diligently to get to the bottom of what happened."

Speculation regarding who will be chosen as the next Secretary of State now shifts to Sen. John Kerry (D-Mass.)

Obama is expected to overhaul much of his foreign policy and national security teams for the coming term. Defense Secretary Leon Panetta is departing, the position of Director of the CIA is open following the David Petraeus scandal. s second term. And Homeland Security Secretary Janet Napolitano is rumored to be looking to replace Attorney General Eric Holder.

Olivier Knox contributed to this report.

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Cuban lawmakers meet to consider economy, budget

HAVANA (AP) — Cuban lawmakers are holding the second of their twice-annual sessions with a year-end report expected on the state of the country’s economy.

Legislators are also to approve next year’s budget.

Cuban leaders have sometimes used the parliamentary gatherings to make important announcements or policy statements.

Observers will be watching for word on the progress of President Raul Castro‘s economic reform plan and efforts to promote younger leaders.

The unicameral parliament will reconvene in February with a new membership following elections. It is then expected to name Castro to another five-year term.

State-run media said Castro presided over Thursday’s session.

It was not open to international journalists.

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Selling flak jackets in the cyberwars

SAN FRANCISCO (Reuters) – When the Israeli army and Hamas trade virtual blows in cyberspace, or when hacker groups like Anonymous rise from the digital ether, or when WikiLeaks dumps a trove of classified documents, some see a lawless Internet.

But Matthew Prince, chief executive at CloudFlare, a little-known Internet start-up that serves some of the Web’s most controversial characters, sees a business opportunity.

Founded in 2010, CloudFlare markets itself as an Internet intermediary that shields websites from distributed denial-of-service, or DDoS, attacks, the crude but effective weapon that hackers use to bludgeon websites until they go dark. The 40-person company claims to route up to 5 percent of all Internet traffic through its global network.

Prince calls his company the “Switzerland” of cyberspace – assiduously neutral and open to all comers. But just as companies like Twitter, YouTube and Facebook have faced profound questions about the balance between free speech and openness on the Internet and national security and law enforcement concerns, CloudFlare‘s business has posed another thorny question: what kinds of services, if any, should an American company be allowed to offer designated terrorists and cyber criminals?

CloudFlare’s unusual position at the heart of this debate came to the fore last month, when the Israel Defense Forces sought help from CloudFlare after its website was struck by attackers based in Gaza. The IDF was turning to the same company that provides those services to Hamas and the al-Quds Brigades, according to publicly searchable domain information. Both Hamas and al-Quds, the military wing of the Palestinian Islamic Jihad, are designated by the United States as terrorist groups.

Under the USA Patriot Act, U.S. firms are forbidden from providing “material support” to groups deemed foreign terrorist organizations. But what constitutes material support – like many other facets of the law itself – has been subject to intense debate.

CloudFlare’s dealings have attracted heated criticism in the blogosphere from both Israelis and Palestinians, but Prince defended his company as a champion of free speech.

“Both sides have an absolute right to tell their story,” said Prince, a 38-year old former lawyer. “We’re not providing material support for anybody. We’re not sending money, or helping people arm themselves.”

Prince noted that his company only provides defensive capabilities that enable websites to stay online.

“We can’t be sitting in a role where we decide what is good or what is bad based on our own personal biases,” he said. “That’s a huge slippery slope.”

Many U.S. agencies are customers, but so is WikiLeaks, the whistle-blowing organization. CloudFlare has consulted for many Wall Street institutions, yet also protects Anonymous, the “hacktivist” group associated with the Occupy movement.

Prince‘s stance could be tested at a time when some lawmakers in the United States and Europe, armed with evidence that militant groups rely on the Web for critical operations and recruitment purposes, have pressured Internet companies to censor content or cut off customers.

Last month, conservative political lobbies, as well as seven lawmakers led by Ted Poe, a Republican from Texas, urged the FBI to shut down the Hamas Twitter account. The account remains active; Twitter declined to comment.

MATERIAL SUPPORT

Although it has never prosecuted an Internet company under the Patriot Act, the government’s use of the material support argument has steadily risen since 2006. Since September 11, 2001, more than 260 cases have been charged under the provision, according to Fordham Law School’s Terrorism Trends database.

Catherine Lotrionte, the director of Georgetown University’s Institute for Law, Science and Global Security and a former Central Intelligence Agency lawyer, argued that Internet companies should be more closely regulated.

“Material support includes web services,” Lotrionte said. “Denying them services makes it more costly for the terrorists. You’re cornering them.”

But others have warned that an aggressive government approach would have a chilling effect on free speech.

“We’re resurrecting the kind of broad-brush approaches we used in the McCarthy era,” said David Cole, who represented the Humanitarian Law Project, a non-profit organization that was charged by the Justice Department for teaching law to the Kurdistan Workers’ Party, which is designated by the United States as a terrorist group. The group took its case to the Supreme Court but lost in 2010.

The material support law is vague and ill-crafted, to the point where basic telecom providers, for instance, could be found guilty by association if a terrorist logs onto the Web to plot an attack, Cole said.

In that case, he asked, “Do we really think that AT&T or Google should be held accountable?”

CloudFlare said it has not been contacted about its services by the U.S. government. Spokespeople for Hamas and the Palestinian Islamic Jihad, told Reuters they contracted a cyber-security company in Gaza that out-sources work to foreign companies, but declined to comment further. The IDF confirmed it had hired CloudFlare, but declined to discuss “internal security” matters.

CloudFlare offers many of its services for free, but the company says websites seeking advanced protection and features can see their bill rise to more than $ 3,000 a month. Prince declined to discuss the business arrangements with specific customers.

While not yet profitable, CloudFlare has more than doubled its revenue in the past four months, according to Prince, and is picking up 3,000 new customers a month. The company has raked in more than $ 22 million from venture capital firms including New Enterprise Associates, Venrock and Pelion Venture Partners.

Prince, a Midwestern native with mussed brown hair who holds a law degree from the University of Chicago, said he has a track record of working on the right side of the law.

A decade ago, Prince provided free legal aid to Spamhaus, an international group that tracked email spammers and identity thieves. He went on to create Project Honey Pot, an open source spam-tracking endeavor that turned over findings to police.

Prince’s latest company, CloudFlare, has been hailed by groups such as the Committee to Protect Journalists for protecting speech. Another client, the World Economic Forum, named CloudFlare among its 2012 “technology pioneers” for its work. But it also owes its profile to its most controversial customers.

CloudFlare has hosted 4Chan, the online messaging community that spawned Anonymous. LulzSec, the hacker group best known for targeting Sony Corp, is another customer. And since last May, the company has propped up WikiLeaks after a vigilante hacker group crashed the document repository.

Last year, members of the hacker collective UgNazi, whose exploits include pilfering user account information from eBay and crashing the CIA.gov website, broke into Prince’s cell phone and email accounts.

“It was a personal affront,” Prince said. “But we never kicked them off either.”

Prince said CloudFlare would comply with a valid court order to remove a customer, but that the Federal Bureau of Investigation has never requested a takedown. The company has agreed to turn over information to authorities on “exceedingly rare” occasions, he acknowledged, declining to elaborate.

“Any company that doesn’t do that won’t be in business long,” Prince said. But in an email, he added: “We have a deep and abiding respect for our users’ privacy, disclose to our users whenever possible if we are ordered to turn over information and would fight an order that we believed was not proper.”

Juliannne Sohn, an FBI spokeswoman, declined to comment.

Michael Sussmann, a former Justice Department lawyer who prosecuted computer crimes, said U.S. law enforcement agencies may in fact prefer that the Web’s most wanted are parked behind CloudFlare rather than a foreign service over which they have no jurisdiction.

Federal investigators “want to gather information from as many sources as they can, and they’re happy to get it,” Sussmann said.

In an era of rampant cyber warfare, Prince acknowledged he is something of a war profiteer, but with a wrinkle.

“We’re not selling bullets,” he said. “We’re selling flak jackets.”

(Reporting By Gerry Shih in San Francisco and Nidal al-Mughrabi in Gaza; editing by Jonathan Weber and Claudia Parsons)

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