ZTE guilty of violating U.S. sanctions, will pay $892 million for shipping goods to Iran and North Korea

A massive settlement in the U.S. follows years of wrongdoing.

ZTE has plead guilty to allegations that it violated U.S. laws relating to its involvement in the transfer of U.S. telecom equipment to both Iran and North Korea, as well as lying to federal investigators by insisting that such shipments had stopped. The settlement of $892 million and guilty plea relates to a period between 2010 and 2016 when ZTE shipped over $30 million in U.S.-based products to Iran, as well as took part in over 280 shipments of controlled items to North Korea.

Aside from the poor optics of such deals, ZTE was breaking U.S. laws that prohibit sales of U.S.-made technology to the two countries. Officially, ZTE agreed to plead guilty to violating the International Emergency Economic Powers Act, obstruction of justice, and making a material false statement.

The division of ZTE we’re discussing here isn’t necessarily the same we’re used to talking about on Android Central. Beyond making consumer-facing products like phones under the same brand, ZTE is also a massive business in telecommunication and internet infrastructure equipment around the world — precisely the type of products we’re talking about in relation to this settlement. In this case, ZTE was involved with shipping routers, processors and servers.

ZTE, for its part, issued a complete press release with its reaction to the settlement. In the release, which you can read in full below, ZTE’s CEO Dr. Zhao Xianming said:

“ZTE acknowledges the mistakes it made, takes responsibility for them, and remains committed to positive change in the company. Instituting new compliance-focused procedures and making significant personnel changes has been a top priority for the company. We have learned many lessons from this experience and will continue on our path of becoming a model for export compliance and management excellence. We are committed to a new ZTE, compliant, healthy and trustworthy.”

Above and beyond the $892 million in penalties under the settlement, an additional $300 million will be paid to the U.S. Commerce Department if ZTE fails to comply with requirements set by the settlement over the next seven years.

Press release:

ZTE Corporation Reaches Settlement with U.S. Authorities

March 7, 2017, Shenzhen, China – ZTE Corporation （0763.HK / 000063.SZ）today announced that it has entered into a global settlement with the U.S. government regarding its historical conduct relating to U.S. export controls and sanctions. While the agreement with OFAC takes effect immediately, the agreement with DOJ is pending approval from the United States District Court for the Northern District of Texas. Similarly, Court approval of the DOJ agreement is a prerequisite before BIS will issue its settlement Order.

As part of the resolution, ZTE has agreed to a criminal and civil penalty of $892,360,064, and an additional penalty of $300,000,000 to BIS that will be suspended during the seven-year term on the condition that the Company complies with the requirements in the agreement with BIS and that ZTE will continue to work with an independent compliance monitor and auditor.

“ZTE acknowledges the mistakes it made, takes responsibility for them, and remains committed to positive change in the company,” said Dr. Zhao Xianming, Chairman and CEO of ZTE Corporation. “Instituting new compliance-focused procedures and making significant personnel changes has been a top priority for the company. We have learned many lessons from this experience and will continue on our path of becoming a model for export compliance and management excellence. We are committed to a new ZTE, compliant, healthy and trustworthy.”

Dr. Zhao was named Chairman and Chief Executive Officer of ZTE Corporation in April 2016 with a mandate to lead a new ZTE with a best-in-class export compliance program.
“The agreements we reached will enable us to move forward in a stronger position than ever before,” continued Dr. Zhao. “We are grateful to all of our customers, partners, employees and stakeholders who have stood by us throughout this difficult time. With this agreement behind us and our compliance program firmly established, we can confidently grow our business with suppliers, continue to provide innovative technology solutions to our partners, and execute our growth strategies as a new ZTE.”

“ZTE has made tremendous progress in building a world-class compliance program and I look forward to working with others in the company’s leadership to further build and improve our operations and processes,” said Matt Bell, who was appointed Chief Export Compliance Officer in November 2016. “We are creating a global team of experienced compliance professionals, and our compliance trainings have been strengthened and reinforced at every level of the company. We are constantly reviewing and improving policies and procedures to keep up with an ever-changing regulatory landscape and working to reinforce the strategic business advantage a strong compliance program has in the marketplace. Our global legal and compliance professionals will continue to work together to identify risk across the company and continually improve the effectiveness of our overall compliance program.”

Under Dr. Zhao’s direction, ZTE remains focused on enhancing its procedures and controls and continuing to create a strong compliance culture throughout the organization. During recent months, the company has invested in extensive reforms to create a leading export compliance program including the following actions:

• New CEO and Company Leadership. ZTE appointed Dr. Zhao as Chairman and Chief Executive Officer and made major changes to the senior management team, all of whom have a mandate of leading a new ZTE with a best-in-class export compliance program.
• New Compliance Committee. ZTE created a Chief Executive Officer-led Compliance Committee with the authority and remit to significantly change the Company’s policies and procedures, and provide greater oversight of support for the compliance initiatives.
• Restructured Legal and Compliance Departments. ZTE removed compliance from the responsibility of the legal department and created a separate compliance department with increased headcount to build the compliance program with full independence.
• New U.S. Lawyer Named Chief Export Compliance Officer. A new Chief Export Compliance Officer, U.S. lawyer Matt Bell, was hired with responsibility for overseeing the continued development and improvement of the global export compliance program. Mr. Bell has experience developing and improving compliance programs for major multinational companies throughout his career.
• Expanded Export Control Compliance Manual. ZTE issued a new Export Control Compliance Manual created in conjunction with the review of BIS to provide more detailed guidance to the employees. ZTE also now requires an annual Compliance Commitment Agreement from all employees.
• New Automated Tools and Processes. ZTE implemented a software automation tool which screens shipments from ZTE Corporation and certain subsidiaries for export control obligations. The system is used to determine which items are subject to the Export Administration Regulations (EAR), provides embargo and restricted party screening on the transactions, and places shipments on hold that require detailed classification analysis, application of license exceptions, or application of licenses when necessary. ZTE continues to make significant investments in automation to roll this out to its subsidiaries around the world.
• Global Export Controls Training. ZTE trained over 45,000 employees on export controls and sanctions laws and company policies in 2016. ZTE is continuing these general awareness trainings in 2017 while also rolling out more targeted training for critical functions such as sales, procurement, R&D and supply chain.
  BIS will recommend that ZTE be removed from the Entity list, conditioned on court approval of the DOJ agreement, entry of the plea, and the issuance of BIS’s settlement Order.

“ZTE has created strong partnerships with many U.S. suppliers that support nearly 130,000 high-tech jobs,” Dr. Zhao emphasized. “Coupled with recent efforts to streamline operations and our innovative leadership around 5G, ZTE will be well-positioned for positive overall performance. The company anticipates continued growth and business expansion over the next several years as we continue to work with our partners around the world.”

Tomb Raider reboot highlights two paths for gaming on NVIDIA Shield TV

NIVIDIA has added a couple noteworthy titles to the Shield TV’s ever-growing game library, highlighting the different ways gamers can play on the Shield.

The marquee title arriving on NVIDIA Shield is Tomb Raider, the gritty 2013 reboot of the iconic gaming franchise, starring Lara Croft. Available as a download through the Google Play Store, the game offers a reimagined origin story for the first Queen of Gaming, giving the action adventure franchise a total overhaul and a new breath of life. While it’s a few years old, it’s a really polished game that looks and plays great on the Shield.

Also coming to the Shield, by way of NVIDIA’S GeForce NOW streaming service, is Marvel Heroes 2016, a free-to-play massive multiplayer online action role-playing game that was previewed by NVIDIA at CES as part of Geforce NOW’s new ability to stream online multiplayer games. Marvel Heroes is free to play for all members subscribed to the GeForce NOW service.

Reasons to stream your games

There’s always been a semi-regular stream of titles announced and released for the Shield, but the way NIVIDIA paired these two game launches together sure feels like a not-so-subtle message from NVIDIA to gamers: game streaming is the future. It’s the most efficient way to play your games on the Shield. And when you step back and consider all the facts, NVIDIA’s right.

For starters, consider that Tomb Raider, available for $15.99 from the Play Store, takes up over 5GB of space. If you went with the larger 500GB Shield, and have it loaded with movies, TV shows, music, and games, you may have to clear out some old games or movies to make space for the download. If you have the 16GB Shield, Tomb Raider will take up basically half of your available internal storage. It’s the same issue I have with my Xbox One — the frustration of only being able to have a handful of games installed on your console at one time.

Just the thought of having to install, uninstall, and otherwise manage games via digital downloads often makes me want to put down the controller before I’ve even picked it up.

Meanwhile, not only do GeForce NOW subscribers not have to worry about balancing their internal storage, but they also have quick streaming access to a library of fantastic games streamed at 1080p and 60fps, with titles including The Witcher 3, Just Cause 2, and… what’s that? Tomb Raider — same game, delivered two different ways, on the same console.

Maybe it’s just me, but just the thought of having to install, uninstall, and otherwise manage games via digital downloads often makes me want to put down the controller before I’ve even picked it up. This comes after waiting through the download and install process for getting Tomb Raider from the Google Play Store. It adds a new level of annoyance while trying to add convenience — especially with a 16GB NVIDIA Shield TV hooked up to my HDTV.

Personally, I don’t think I’d manage to sit down and play via GeForce NOW enough to get the same value I’d get from NVIDIA’s $7.99/month streaming service the same way i justify the other streaming services I rely on, like Netflix and Apple Music (quietly turns off the comment section). But then again, NVIDIA also offers GameStream as a great back up to play PC games on my Shield, which is just another reason to love the Shield as a gaming platform.

For your consideration

If you already have an NVIDIA Shield TV, it’s well worth your time and effort to check out Tomb Raider — whether you prefer to “own” it from the Google Play Store or stream it from the GeForce NOW. Running into storage space constraints? Don’t forget that the NVIDIA Shield does support expandable storage.

For those of you just considering buying an NVIDIA Shield, if the gaming possibilities are playing a part in buying decision, you’ll definitely want to consider whether something like GeForce NOW could fill your needs. That $100 you save on a 16GB Shield could essentially pay for a full year of GeForce Now, which’ll save you time and frustration dealing with less space.

NVIDIA Shield Android TV

• Read our Shield Android TV review
• The latest Shield Android TV news
• Shield vs. Shield Pro: Which should I buy?
• Join the forum discussion
• Complete Shield Android TV specs

Amazon

Nokia 8 tipped for June, flagship said to come with Snapdragon 835

While there were plenty of rumours prior to Mobile World Congress at the end of February Nokia did not unveil a flagship smartphone at the show. Instead of the much-speculated Nokia 8, it announced the Nokia 3, 5 and the European edition of the Nokia 6. It also showed the new Nokia 3310 for the first time.

That still leaves space for a bone fide premium model, which commonly goes by the name Nokia 8 but could actually end up being called something entirely different.

The latest murmurings from China are that phone manufacturer HMD Global, which produces handsets under the Nokia brand, will launch its top-of-the-range device in June. In fact, it might have a couple to announce, with “big” and “small” screens.

• Nokia 8 Android phone: Release date, rumours and spec
• Nokia 6 preview: A solid start for the new Android Nokia
• This is the new Nokia 3310

Reports also suggest that it will sport the Qualcomm Snapdragon 835 chipset, 4GB and/or 6GB of RAM depending on device, “at least” a 23-megapixel camera and full-metal body.

Prices have even been touted, with the smaller variant coming in at 4,000 yuan (£475), the larger at 4,500.

Nokia has said that it will have more announcements in 2017 so it definitely has something up its sleeve, but whether these phones are part of the line-up is yet to be seen.

Until then, the outstanding response the new Nokia 3310 has had will surely fill the gap.

Engadget giveaway: Win a Marantz receiver courtesy of Auro Technologies!

You may have updated your set to 4K HDR to dazzle your eyes, but don’t let your ears miss out on the all the fun. Auro Technologies offers an extremely immersive theater experience with its Auro-3D audio standard. Using a capable 9.1 or 10.1 speaker configuration, you can enjoy realistic three-dimensional sound created through “height layers” and acoustic reflection. The audio experience simulates the sense of location being dictated by the onscreen action. This week Auro Technologies has provided us with a Marantz 9.2 channel receiver that supports Auro-3D for one incredibly lucky reader this week. This top-of-the-line gear ticks all the right boxes for a future-proof setup including HEOS streaming, WiFi, Bluetooth, AirPlay, a 4K full-rate pass-through, HDR and HDCP 2.2 support. All you need to do is head to the Rafflecopter widget below for up to three chances at winning this stellar home theater setup courtesy of Auro Technologies and its Auro-3D software.

a Rafflecopter giveaway

• Entries are handled through the Rafflecopter widget above. Comments are no longer accepted as valid methods of entry. You may enter without any obligation to social media accounts, though we may offer them as opportunities for extra entries. Your email address is required so we can get in touch with you if you win, but it will not be given to third parties.
• Contest is open to all residents of the 50 States, the District of Columbia, and Canada (excluding Quebec), 18 or older! Sorry, we don’t make this rule (we hate excluding anyone), so direct your anger at our lawyers and contest laws if you have to be mad.
• Winners will be chosen randomly. One (1) winner will receive one (1) Marantz SR7011 9.2 surround sound receiver ($2,199 value).
• If you are chosen, you will be notified by email. Winners must respond within three days of being contacted. If you do not respond within that period, another winner will be chosen. Make sure that the account you use to enter the contest includes your real name and a contact email. We do not track any of this information for marketing or third-party purposes.
• This unit is purely for promotional giveaway. Engadget and AOL are not held liable to honor warranties, exchanges or customer service.
• The full list of rules, in all its legalese glory, can be found here.
• Entries can be submitted until March 8th at 11:59PM ET. Good luck!

Amazon hands over Alexa data after murder suspect gives the okay

Amazon has agreed to hand over Alexa data to prosecutors in a murder trial after the defendant, an Echo owner, gave permission. The company had initially refused to do so, saying it “seeks to protect the privacy rights of its customers” and that Alexa’s questions and answers are protected by the first amendment. The case involves Arkansas resident James Bates, who is charged with the murder of a man found dead in his hot tub in November, 2015.

The medical examiner ruled that there had been a fight and that the victim, Victor Collins, died from a combination of strangulation and drowning. His body had cuts, bruises and other signs and violence and police found blood in the hot tub, according to court documents.

While Alexa is constantly listening, it only records data after the “Alexa” or “Amazon” commands are given. However, the Echo speaker was reportedly streaming music near the tub, and investigators believe it could have been awakened intentionally or accidentally. If so,the presence of a recording could tell them if Bates was awake when he said he was sleeping, for instance.

Our obligation is to investigate all of the available evidence, whether [it] proves useful or not.

Bates said law enforcement could review his Echo device because “he is innocent of all charges in the matter,” his lawyers said. The prosecutors said they’re “pleased” to have access to the data, as “our obligation is to investigate all of the available evidence, whether [it] proves useful or not.”

Amazon twice declined to hand over the voice data, saying that its users’ requests and Alexa’s responses were covered by protected speech laws under the US Constitution. It also claimed that investigators can’t prove that they couldn’t find the incriminating information elsewhere. However, the suspect’s acquiescence means that Amazon’s arguments about Alexa’s legal rights will remain untested.

Source: 5 News Online

Land Rover’s Project Hero SUV launches a drone to aid rescue workers

It’s no secret that drones are useful for surveying situations where it might be too dangerous for a human to tread. This includes tough terrain that search and rescue teams encounter and Jaguar Land Rover built a vehicle to lend a hand. The company’s Special Vehicle Operations (SVO) unit designed and built a unique version of its Discovery SUV for use by the Austrian Red Cross. Officially called Project Hero, the vehicle features a roof-mounted drone landing system.

What’s more, Project Hero’s drone setup has self-centering and magnetic retention tech that allows a small UAV to land while the vehicle is in motion. Jaguar Land Rover says this is the first system of its kind. Once airborne, the drone can send live footage of an area to rescue teams so they can respond more efficiently in situations like earthquakes, landslides and avalanches.

To further aid rescuers, the floor in the back of the Discovery slides out to make a mobile work surface and its heavy duty material protects any gear stored underneath. The vehicle is also equipped with power and a range of plug configurations to fit several different regions as well as all the requisite radio gear needed to maintain contact in remote locations.

For now, Project Hero will be based at the Red Cross training center in Erzberg before making the move to Vienna in June. The vehicle will be used in simulations to help develop new methods and on test runs for complex rescue scenarios like natural disasters. Jaguar Land Rover says the Red Cross will also use the SUV when it provides support following certain events. If the automaker’s other research is any indication, future versions of Project Hero could also be autonomous over any terrain.

Source: Land Rover

Razer’s new digital currency is both outdated and enticing

The last thing the gaming industry needs is another digital currency system that supplants dollars for an exclusive “points” system — and yet that’s exactly what Razer invited me to see at its San Francisco offices last week. The company’s pitch was almost contradictory. Razer zVault is a digital wallet system designed to unify payments across platforms encumbered by a myriad of other fragmented digital wallets.

It sounds ridiculous, but it’s already moderately successful: over six weeks, the zVault pilot program has already tracked over 370,000 transactions using zVault’s zGold currency. That’s probably due in part to the fact that zVault boasts a burgeoning rewards program that offers users discounts, free games and a second bonus currency that can be used to buy Razer accessories and laptops.

Here’s how it works: zVault users load their digital wallets up with denominations of $30, $50 or $100 in cash, which is then converted to zGold, crediting 100 units of Razer’s currency for every dollar deposited. After spending it on Steam keys from stores like GamersGate and Indie Gala, Razer will credit a second digital currency, zSilver, to the user’s account. zSilver works kind of like credit card reward points, and can be redeemed for Razer products and discounts. Razer says it plans to offer gift cards for other stores on the zSilver shop soon, too.

That alone is pretty enticing, but Razer’s bid for zVault’s success goes deeper. Buying Steam keys with zGold can net users discounts on their total purchases (up to 15 percent) and free games. The digital currency can also be used to purchase DLC add-ons and in-game items in titles like Paladins and Smite. On top of that, using Razer’s Cortex software or Arena eSports platform can earn users extra zSilver. In fact, that kind of seems like the point — using the zVault rewards system to drive more users to use Razer’s software suite and entrench themselves deeper in the company’s ecosystem.

That’s a lot carrots to hang in front of prospective users, but the system on a whole still feels a little odd. With the exception of in-game real money currencies like Perfect World’s ZEN, point-based digital wallets are outmoded. Absolutely nobody looks back on Wii and Microsoft points with fondness. Still, if anybody can make an anachronistic points system work, it might be Razer. The company’s fans are notoriously loyal — there’s a reason Razer products win Engadget’s CES people’s choice award on a regular basis. That loyalty has been enough to make zVault’s Razer Insider pilot program a success. If the company can expand its retailer partnerships and reward offerings, it just might draw attention from the rest of the gaming community, too.

Source: Razer

BBC and ITV’s ‘BritBox’ streaming service arrives in the US

The BBC and ITV have banded together to launch their own subscription streaming service in the US. They’ve teased “BritBox” before, but now it’s actually here, for $6.99 per month on the web, Apple TV and Android (Roku, Chromecast and iOS apps are in the works.) If you’ve wanted a Netflix equivalent for Top Gear, Doctor Who and The Great British Bake Off, however, you’ll be sorely disappointed. At launch, the service is being propped up by older classics such as Miss Marple and Sherlock Holmes (the one starring Jeremy Brett, not the Benedict Cumberbatch reboot.)

The two companies have, however, promised to release episodes of new and ongoing shows 24 hours after their British broadcast. These are mostly soaps, unfortunately — think EastEnders, Emmerdale, Holby City and Casualty. Most of the BBC’s heavy-hitters, it would seem, are being left out to ensure BBC America — the cable and satellite channel joint-owned by BBC Worldwide and AMC — remains attractive in the States.

That’s not to say BritBox has no value, however. You’ll find award-winning comedies such as Blackadder, Absolutely Fabulous and Gavin & Stacey (the show James Corden co-created, co-wrote and starred in). It’s also the exclusive home for the complete series of Sharpe — the Napoleonic Sean Bean extravaganza — and will serve as the US premieres for the BBC’s fresh crime drama New Blood, and ITV’s Tutankhamun. All told, the Britbox team says there are “thousands” of hours to peruse. The problem, of course, will be quality, rather than quantity. If the library is packed with “filler” content, few people will want to pay for a monthly subscription.

Source: BritBox

Pinterest adds visual search to its handy browser extensions

Pinterest introduces new ways for its users to access pinned items on the regular and today it’s revealing yet another. Starting tomorrow, you can employ the company’s visual search tech to hunt for things from inside its browser extensions. How does it work? Well, you can hover over an image on the site you’re reading to find related items on Pinterest without having to leave that page.

For now, the new visual search is only available for Chrome, but the company says the feature will hit extensions for other browsers “in the future.” To give it a go in Chrome, you’ll need to download the browser button extension and hover over any image on a web page. You’ll notice a magnifying glass beside the familiar red “save” button.

Click that new icon and adjust the window to focus on an item to see a list of categories and results for in real time. You can also use the tool to discover specific objects, products, patterns and colors. What’s more, right clicking the background of a web page and selecting “search” will allow you to do some hunting with the entire page rather than just one image. Again, the new functionality launches tomorrow for Chrome, so you’ll be able to use it in a matter of hours.

This attack alarm is baked into a ring

The obvious issue with a personal attack alarm is that if you don’t have one in your hand, it’s pointless. We’ve seen a few devices that incorporate technology inside jewelry, which is the method adopted by Nimb’s smart ring. After a successful crowdfunding campaign last year, the company is preparing to ship the first version of the hardware by May.

The idea behind Nimb is simple: The device is a ring with a tiny button tucked discreetly on the underside. Should the wearer feel that they are in danger, a three-second press will trigger an alert on your phone via Bluetooth. You’ll be told the message was successfully sent with a gentle vibration, too quiet for anyone else to hear.

The alert will be sent to three nominated contacts, giving up your location and a canned message indicating that you are in trouble. If you subscribe to Nimb’s $10-a-month service, your alert will also be sent to a 24/7 contact centre that will dispatch help and record the audio coming out of your smartphone. Details about how the contact centre will work are still being hammered out, but you can pay for a year’s worth of service when you buy the ring itself.

Nimb is available to pre-order now for $130 in either black or white, with shipments expected to begin in May.

Source: Nimb