Sequoia Voting Systems plans to publicly release the source code for its new optical scan voting system, the company announced Tuesday–a remarkable reversal for a voting machine maker long criticized for resisting public examination of its proprietary systems.

The company’s new public source optical-scan voting system, called Frontier Election System, will be submitted for federal certification and testing in the first quarter of next year. The code will be released for public review in November, the company said, on its web site. Sequoia’s proprietary, closed systems are currently used in 16 states and the District of Columbia.

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Wal-Mart (WMT) was the victim of a serious security breach in 2005 and 2006 in which hackers targeted the development team in charge of the chain’s point-of-sale system and siphoned source code and other sensitive data to a computer in Eastern Europe, Wired.com has learned.

Internal documents reveal for the first time that the nation’s largest retailer was among the earliest targets of a wave of cyberattacks that went after the bank-card processing systems of brick-and-mortar stores around the United States beginning in 2005. The details of the breach, and the company’s challenges in reconstructing what happened, shed new light on the vulnerable state of retail security at the time, despite card-processing security standards that had been in place since 2001.

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The Department of Justice has finally admitted it in court papers: The nation’s telecom companies are an arm of the government–at least when it comes to secret spying.

Fortunately, a judge says that relationship isn’t enough to squash a rights group’s open records request for communications between the nation’s telecoms and the feds.

The Electronic Frontier Foundation wanted to see what role telecom lobbying of the Justice Department played when the government began its year-long, and ultimately successful, push to win retroactive immunity for AT&T (T) and others being sued for unlawfully spying on American citizens.

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Copyright filtering technology is a form of copyright infringement, according to a lawsuit against document service Scribd.

The lawsuit, lodged in a Texas federal court Friday, broaches a novel legal theory in which the U.S. courts have never squarely decided.

The suit maintains that the copying and insertion of a copyrighted work into a filtering system without compensating the copyright holder, or obtaining their consent, is a violation of the Copyright Act. The case comes as copyright filtering technology is quickly becoming a behind-the-scenes feature on university sites, user-generated content sites and online social networking venues.

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A Defense Department intelligence analyst hit with a federal computer hacking charge last week says he’s being made a scapegoat for a security slip-up that sent a password in a nationwide terrorism investigation to “tens of thousands” of analysts without the need-to-know.

“I think on one of the blogs, somebody said, how about this: I give you my username and password, you log into my account, and then I file criminal charges against you,” said Brian Keith Montgomery, in a telephone interview with Threat Level on Thursday. “That person hit it right on the head.”

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Security researchers have spent a lot of time the last couple of years cracking building access systems from the level of the user device–RFID and smartcards, for example.

But a researcher in Texas found that he could crack one electronic access system at the network control level and simply open a door with a spoofed command sent over the network, eliminating the need for an access card.

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Talk of cyberwar is in the air after more than two dozen high-level websites in the United States and South Korea were hit by denial-of-service attacks this week. But cooler heads are pointing to a pilfered five-year-old worm as the source of the traffic, under control of an unsophisticated hacker who apparently did little to bolster his borrowed code against detection.

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A computer programmer working for Goldman Sachs was arrested last week on charges that he stole proprietary source code for software his employer uses to make sophisticated, high-speed, high-volume stock and commodities trades.

Sergey Aleynikov, who earned nearly $400,000 in his job, allegedly stole 32 megabytes of data over four days in June and transferred it to a website hosted in Germany before trying to erase his tracks from Goldman Sachs’ network.

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Thursday’s $1.92 million file-sharing verdict against a Minnesota mother of four could provide copyright reform advocates with a powerful human symbol of the draconian penalties written into the nearly-35 year old Copyright Act. Then again, maybe not.

A Minnesota federal jury stung Jammie Thomas-Rasset with the enormous fine after concluding she infringed copyrights on 24 music tracks by sharing them on the Kazaa peer-to-peer network. It was the defendant’s second trial: The first ended in a $222,000 verdict for the same songs, but was nullified after the judge presiding over the case said he provided faulty jury instructions that favored the recording industry.

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Veterans suffering anxiety and paranoia following the theft of a government hard drive containing the medical histories and Social Security numbers of 198,000 of their brethren cannot recover financial damages, a federal appeals court says.

The 11th U.S. Circuit Court of Appeals, in largely dismissing a class-action, ruled Wednesday that the veterans could recoup at least $1,000 under the Privacy Act if they could show financial damages, not mental anguish.

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In a sparsely decorated office suite two floors above a neighborhood of strip malls and car dealerships, former oncologist Douglas Jackson is struggling to resuscitate a dying dream.

Jackson, 51, is the maverick founder of E-Gold, the first-of-its-kind digital currency that was once used by millions of people in more than a hundred countries. Today the currency is barely alive.

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Forget the new cyber security czar position that President Barack Obama announced last week.

The real sign that the White House might be finally taking cyber security seriously came in an announcement on Friday that Jeff Moss, aka “Dark Tangent” and the former hacker behind the annual DefCon hacker confab in Las Vegas, has been appointed to the Department of Homeland Security’s Advisory Council (HSAC).

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RealNetworks (RNWK) is upping the ante in litigation seeking to prevent it from distributing DVD-copying software. The company argues the Hollywood studios are a “price-fixing cartel” that have no right to prevent consumers from duplicating the movie discs.

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Whether the public has a right to make a “fair use” copy of DVDs is on trial in a San Francisco federal court. Yet the public may never know whether the verdict was reached fairly because the presiding judge removed the press just as the nuts and bolts of the case was to be aired out. U.S. District Judge Marilyn Hall Patel’s contempt for the media is widely known by the San Francisco tech press.

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A south Korean blogger was acquitted Monday of spreading false information in a widely-watched case about Internet free speech that could have sent him to prison for 18 months.

Reuters reported from Seoul that the court threw out charges Park Dae-sung had intentionally depressed market sentiment by posting false information on his blog. “Even if there was recognition that it was false information, he cannot be seen as having acted on purpose to harm public interest considering the situation at the time including the special nature of the foreign exchange market,” the court told Reuters by telephone.

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