Samsung Smart TVs: The next frontier for data theft and hacking [video]

Smart TVs, particularly Samsung’s (005930) last few generations of flat screens, can be hacked to give attackers remote access according to a security startup called ReVuln. The company says it discovered a “zero-day exploit” that hackers could potentially use to perform malicious activities that range from stealing accounts linked through apps to using built-in webcams and microphones to spy on unsuspecting couch potatoes. Don’t panic just yet, though. In order for the exploit to be activated, a hacker needs to plug a USB drive loaded with malicious software into the actual TV to bypass the Linux-based OS/firmware on Samsung’s Smart TVs. But, if a hacker were to pull that off, every piece of data stored on a Smart TV could theoretically be retrieved.

[More from BGR: Has the iPhone peaked? Apple’s iPhone 4S seen outselling iPhone 5]

[More from BGR: Dell confirms it will exit smartphone business, drop Android]

As if the possibility of someone stealing your information and spying on you isn’t scary enough, according to ComputerWorld, “it is also possible to copy the configuration of a TV’s remote control, which would allow a hacker to copy the remote control’s settings, and remotely change the channel.”

ReVuln told The Register it hasn’t informed Samsung of the vulnerability and plans to sell the details of in hopes of “speeding up” development of a fix. A video of the exploit as proof from ReVuln follows below.

This article was originally published by BGR

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Butler upsets No. 1 Indiana 88-86 in OT

INDIANAPOLIS (AP) — All Butler guard Alex Barlow saw Saturday was space and an opportunity to make a play.

So the unlikeliest player on the floor took a chance and made the biggest shot of the game.

When Indiana's defenders failed to converge on the 5-foot-11 walk-on, Barlow kept right on going through the lane, drove to the basket and hit a spinning 6-foot jumper with 2.4 seconds left in overtime Saturday to give the Bulldogs another stunning upset — 88-86 over No. 1 Indiana in the Crossroads Classic.

"The floater is a shot I work on a lot and I happened to get a lucky bounce," Barlow said. "It was a good feeling."

Luckily for the Bulldogs (8-2), Barlow was on the floor.

The kid who spurned college scholarship offers to play his best sport, baseball, and opted to come to Butler for only one reason — to learn how to coach basketball from Brad Stevens — showed everyone he can hoop it up, too.

Stevens didn't hesitate to constantly keep the ball in Barlow's hands after three key Butler players had already fouled out. The sophomore who had scored only 12 points in nine games this season and 18 in his college career delivered with a series of key plays.

Barlow finished with a career-high six points, came up with a big steal that led to a go-ahead 3-pointer late in overtime and finally won it with a shot that bounced off the back of the rim, straight into the air and finally through the net.

Indiana (9-1) immediately called timeout to set up a play but could only muster Jordan Hulls' heave from near half-court, a shot that faded to the left of the basket and suddenly the first college in Indiana to go to back-to-back Final Fours had another school first — its first win in five tries over a No. 1 ranked team.

The sold-out arena roared as the game ended, and the Bulldogs rushed to midcourt where they celebrated with Barlow.

"I thought he just rose up over Hulls and it looked good," Stevens said. "Don't use this as an excuse to get down on Indiana. I still think they're the team to beat in April. Our guys just played really hard and when it really mattered, they figured out a way."

Butler (8-2) has now won six straight at Bankers Life Fieldhouse, better known as the home to the NBA's Pacers, and four of the last five when this series been played in Indianapolis. The Bulldogs have wins over Marquette of the Big East, North Carolina of the ACC and back-to-back victories over Northwestern and Indiana of the Big Ten.

And Barlow, the surprising star, overshadowed a supporting cast that had strong games, too.

Roosevelt Jones scored 16 points and matched his career-highs with 12 rebounds and six assists before fouling out with 2:03 left in regulation.

Andrew Smith finished with 12 points and nine rebounds and held national player of the year candidate Cody Zeller in check until fouling out just 17 seconds after Jones.

Rotnei Clarke, who transferred to Butler from Arkansas, scored 13 of his 19 points and made three of his five 3-pointers in the second half.

In all, five Bulldogs players finished in double figures while the defense held one of America's most proficient offenses to just 42.9 percent shooting from the field.

"We cost ourselves at the end of the game defensively," coach Tom Crean said after waiting more than an hour to take questions. "They made the plays, there's no question about that. But we made the mistakes on how we guarded them."

The Hoosiers were led by Cody Zeller, who had 18 points, including a layup to tie the score at 86 with 19.3 seconds left in overtime. Victor Oladipo also had 18 points and Will Sheehey scored 13 points off the bench.

But the Bulldogs grabbed 19 offensive rebounds and outrebounded Indiana — the first team to do that this season.

Clearly, this was not the same Indiana team that won its first nine games by an average of nearly 32 points while shooting 51.5 percent from the field.

"There's a lot of things," said Zeller, who had only five rebounds and four baskets. "We got outrebounded. There's a lot of little things that we have to figure, but we'll get back to work and figure them out."

The difference Saturday was that Butler never let the Hoosiers get away from them — even when Smith and Jones went to the bench with four fouls midway through the second half.

Stevens reinserted both players with 9 minutes to go in regulation, trailing 57-50, and the Bulldogs responded with a 12-0 run that gave them a 66-59 lead with 4:31 left in regulation.

Butler still led 71-64 when Jones fouled out, and the Hoosiers answered with five straight points from the free-throw line. They finally tied the score on Yogi Ferrell's 3-pointer from the right wing with 6.1 seconds to go, and Butler's Chase Stigall missed a 3-pointer off the front of the rim as time expired.

In overtime, Indiana looked like it would take control when Zeller's layup made it 84-80 with 2:12 to play.

But the Bulldogs again rallied, getting a 3 from Clarke, a steal from Barlow that led Stigall's 3-pointer, and Barlow's improbable winning shot.

"I just figured I would throw it up to the rim," Barlow said. "If I missed it, I knew they wouldn't get a shot off. Luckily, it bounced in."

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School Yoga Class Draws Religious Protest From Christians

T. Lynne Pixley for The New York Times

Miriam Ruiz during a yoga class last week at Paul Ecke Central Elementary School in Encinitas, Calif. A few dozen parents are protesting that the program amounts to religious indoctrination. More Photos »

ENCINITAS, Calif. — By 9:30 a.m. at Paul Ecke Central Elementary School, tiny feet were shifting from downward dog pose to chair pose to warrior pose in surprisingly swift, accurate movements. A circle of 6- and 7-year-olds contorted their frames, making monkey noises and repeating confidence-boosting mantras.

Jackie Bergeron’s first-grade yoga class was in full swing.

“Inhale. Exhale. Peekaboo!” Ms. Bergeron said from the front of the class. “Now, warrior pose. I am strong! I am brave!”

Though the yoga class had a notably calming effect on the children, things were far from placid outside the gymnasium.

A small but vocal group of parents, spurred on by the head of a local conservative advocacy group, has likened these 30-minute yoga classes to religious indoctrination. They say the classes — part of a comprehensive program offered to all public school students in this affluent suburb north of San Diego — represent a violation of the First Amendment.

After the classes prompted discussion in local evangelical churches, parents said they were concerned that the exercises might nudge their children closer to ancient Hindu beliefs.

Mary Eady, the parent of a first grader, said the classes were rooted in the deeply religious practice of Ashtanga yoga, in which physical actions are inextricable from the spiritual beliefs underlying them.

“They’re not just teaching physical poses, they’re teaching children how to think and how to make decisions,” Ms. Eady said. “They’re teaching children how to meditate and how to look within for peace and for comfort. They’re using this as a tool for many things beyond just stretching.”

Ms. Eady and a few dozen other parents say a public school system should not be leading students down any particular religious path. Teaching children how to engage in spiritual exercises like meditation familiarizes young minds with certain religious viewpoints and practices, they say, and a public classroom is no place for that.

Underlying the controversy is the source of the program’s financing. The pilot project is supported by the Jois Foundation, a nonprofit organization founded in memory of Krishna Pattabhi Jois, who is considered the father of Ashtanga yoga.

Dean Broyles, the president and chief counsel of the National Center for Law and Policy, a nonprofit law firm that champions religious freedom and traditional marriage, according to its Web site, has dug up quotes from Jois Foundation leaders, who talk about the inseparability of the physical act of yoga from a broader spiritual quest. Mr. Broyles argued that such quotes betrayed the group’s broader evangelistic purpose.

“There is a transparent promotion of Hindu religious beliefs and practices in the public schools through this Ashtanga yoga program,” he said.

“The analog would be if we substituted for this program a charismatic Christian praise and worship physical education program,” he said.

The battle over yoga in schools has been raging for years across the country but has typically focused on charter schools, which receive public financing but set their own curriculums.

The move by the Encinitas Union School District to mandate yoga classes for all students who do not opt out has elevated the discussion. And it has split an already divided community.

The district serves the liberal beach neighborhoods of Encinitas, including Leucadia, where Paul Ecke Central Elementary is, as well as more conservative inland communities. On the coast, bumper stickers reading “Keep Leucadia Funky” are borne proudly. Farther inland, cars are more likely to feature the Christian fish symbol, and large evangelical congregations play an important role in shaping local philosophy.

Opponents of the yoga classes have started an online petition to remove the course from the district’s curriculum. They have shown up at school board meetings to denounce the program, and Mr. Broyles has threatened to sue if the board does not address their concerns.

The district has stood firm. Tim Baird, the schools superintendent, has defended the yoga classes as merely another element of a broader program designed to promote children’s physical and mental well-being. The notion that yoga teachers have designs on converting tender young minds to Hinduism is incorrect, he said.

“That’s why we have an opt-out clause,” Mr. Baird said. “If your faith is such that you believe that simply by doing the gorilla pose, you’re invoking the Hindu gods, then by all means your child can be doing something else.”

Ms. Eady is not convinced.

“Yoga poses are representative of Hindu deities and Hindu stories about the actions and interactions of those deities with humans,” she said. “There’s content even in the movement, just as with baptism there’s content in the movement.”

Russell Case, a representative of the Jois Foundation, said the parents’ fears were misguided.

“They’re concerned that we’re putting our God before their God,” Mr. Case said. “They’re worried about competition. But we’re much closer to them than they think. We’re good Christians that just like to do yoga because it helps us to be better people.”

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Obama Walks a Fine Line With Egyptian President

Tara Todras-Whitehill for The New York Times

Egyptians opposed to President Mohamed Morsi prayed in Tahrir Square, Cairo, on Friday. More Photos »

CAIRO — Tanks and barbed wire had surrounded Egypt’s presidential palace and crowds of protesters were swarming around last week when President Obama placed a call to President Mohamed Morsi.

Mr. Morsi and his allies in the Muslim Brotherhood stood accused of  a sudden turn toward authoritarianism, as they fulminated about conspiracies, steamrollered over opponents, and sent their supporters into a confrontation with protesters the night before that call; the clash left seven people dead. But Mr. Obama did not reprimand Mr. Morsi, advisers to both leaders said.

Instead, a senior Obama administration official said, the American president sought to build on a growing rapport with his Egyptian counterpart, arguing to Mr. Morsi that it was in his own interest to offer his opposition compromises, in order to build trust in his government.

“These last two weeks have been concerning, of course, but we are still waiting to see,” said another senior administration official, speaking on the condition of anonymity to avoid aggravating relations with Egypt. “One thing we can say for Morsi is he was elected, so he has some legitimacy.” He noted that Mr. Morsi was elected with 51 percent of the vote.

As Egyptians vote Saturday on the draft constitution, the results may also render a verdict on Mr. Morsi’s ability to stabilize the country and the Obama administration’s bet that it can build a workable partnership with a government guided by the Brotherhood — a group the United States shunned for decades as a threat to Western values and interests.

White House officials say that as Egypt’s first democratically elected president, Mr. Morsi has a unique chance to build a credible democratic process with broad participation, which is the surest source of stability.

But critics of the Brotherhood have cited Mr. Morsi’s strong-arm push for the Islamist-backed charter as vindication of their argument that Islamist politics are fundamentally incompatible with tolerance, pluralism and the open debate essential to democracy. They say that his turn to authoritarianism has discredited the Obama administration’s two-year courtship of Egypt’s new Islamist leaders.

Some say they suspect the White House may envision the trade-off it offered to the ousted president, Hosni Mubarak: turning a blind eye to heavy-handed tactics so long as he continues to uphold the stability of American-backed regional order.

And by muting its criticism, the Obama administration shares some of the blame, said Michael Hanna, a researcher at the Century Foundation in New York and an Egyptian-American in Cairo for the vote. “Silence is acquiescence,” he said, adding about Mr. Morsi: “At some point if you are so heedless of the common good that you are ready to take the country to the brink and overlook bodies in the street, that is just not O.K.”

Mr. Obama’s advisers, though, say that in Egypt the dual goals of stability and democracy are aligned, because in the math of the revolution Egyptians will no longer accept the old autocracy.

As for Mr. Morsi, administration officials and other outside analysts argue that so far his missteps appear to be matters of tactics, not ideology, with only an indirect connection to his Islamist politics. “The problem with Morsi isn’t whether he is Islamist or not, it is whether he is authoritarian,” said a Western diplomat in Cairo, speaking on the condition of anonymity because of diplomatic protocol.

What is more, the leading opposition alternatives appeared no less authoritarian: Ahmed Shafik, who lost the presidential runoff, was a former Mubarak prime minister campaigning as a new strongman, and Hamdeen Sabahi, who narrowly missed the runoff, is a Nasserite who has talked of intervention by the military to unseat Mr. Morsi despite his election as president.

“The problem with ‘I told you so’ is the assumption that if things had turned out differently the outcome would be better, and I don’t see that,” the diplomat said, noting that the opposition to the draft constitution had hardly shown more respect than Mr. Morsi has for the norms of democracy or the rule of law. “There are no black hats and white hats here, there are no heroes and villains. Both sides are using underhanded tactics and both sides are using violence.”

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AP NewsBreak: Yankees hit with $18.9M luxury tax

NEW YORK (AP) — The New York Yankees were hit with an $18.9 million luxury tax by Major League Baseball, the 10th consecutive year they will pay a penalty for their spending.

The team finished with a $222.5 million payroll for purposes of the tax, according to figures sent to teams Thursday and obtained by The Associated Press.

Following its payroll-shedding trade with the Los Angeles Dodgers last summer, Boston finished just $47,177 under the $178 million threshold. The Los Angeles Angels wound up at $176.7 million and Philadelphia at $174.5 million.

Figures include average annual values of contracts for players on 40-man rosters, earned bonuses and escalators, adjustments for cash in trades and $10.8 million per team in benefits.

New York has run up a luxury tax bill of $224.2 million over the past decade, with the fee increasing from $13.9 million last year. The Yankees' tax rate rose from 40 percent to 42.5 percent this year and figures to climb to 50 percent next season. But they hope to get under the threshold in 2014, when it rises to $189 million. Dropping under the threshold would lower their potential tax rate in 2015 to 17.5 percent.

"It affects my decision-making process, my communication about the pressure points we have," Yankees general manager Brian Cashman said, adding that market rates for free agents also impact his choices.

For the regular payroll calculation — 2012 income plus prorated shares of signing bonuses — spending by the 30 big league teams broke $3 billion for the first time at $3.15 billion after falling $43,000 short of the milestone last year.

The Yankees finished at a record $223.3 million, their 14th consecutive year as the biggest spender and topping their previous mark of $222.5 million in 2008.

However, the Dodgers could break that mark next year following a summer and autumn of acquisitions. Los Angeles currently is at $207.9 million for 21 signed players, including adjustments for the August trade with Boston that brought Adrian Gonzalez, Carl Crawford and Josh Beckett to the Dodgers. The Yankees are at $182 million for 14 players, including a deal with Ichiro Suzuki that hasn't been finalized.

"You don't get a trophy for having the highest payroll," Cashman said. "I'm not going to feel weird either way, if we're the highest or we're not the highest. That's not the issue. Just want to be the best."

Philadelphia was second at $169.7 million, followed by Boston ($168.6 million), the Angels ($160.1 million), AL champion Detroit ($140.7 million) and World Series champion San Francisco ($138.1 million).

Even while shedding some stars during the season, Miami rose from $61.9 million to $89.9 million. The Marlins figure to drop to the bottom of spending next year after trading nearly all their veterans.

Among the big slashers were the New York Mets (from $142.2 million in 2011 to $103.7 million) and the Chicago Cubs (from $140.6 million to $107.7 million).

Oakland won the AL West despite the lowest payroll in the major leagues at $59.5 million. The division rival Angels rose from $143.1 million to $160.1 million yet still missed the playoffs. They added slugger Josh Hamilton this week with a $125 million, five-year deal set to be announced Saturday.

The Dodgers, sold during the season to a group headed by Mark Walter, Stan Kasten and Magic Johnson, climbed from $109.9 million in 2011 to $129.1 million. In the last week they added pitchers Zack Greinke ($147 million over six years) and Ryu Hyun-jin ($36 million over six years).

The commissioner's office computed the average salary at a record 3,104,563, up 2.2 percent from last year's $3,039,161, The players' association, which uses a slightly different method, pegged the average at $3,213,479, up 3.8 percent.

Payroll figures are for 40-man rosters and include salaries and prorated shares of signing bonuses, earned incentive bonuses, non-cash compensation, buyouts of unexercised options and cash transactions, such as money included in trades. In some cases, parts of salaries that are deferred are discounted to reflect present-day values.

According to the collective bargaining agreement, checks to pay the luxury tax must be sent to the commissioner's office by Jan. 21.

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Life Expectancy Rises Around World, Study Finds

A sharp decline in deaths from malnutrition and infectious diseases like measles and tuberculosis has caused a shift in global mortality patterns over the past 20 years, according to a report published on Thursday, with far more of the world’s population now living into old age and dying from diseases mostly associated with rich countries, like cancer and heart disease.

Tony Karumba/Agence France-Presse — Getty Images

Children in Nairobi, Kenya. Sub-Saharan Africa lagged in mortality gains, compared with Latin America, Asia and North Africa.

The shift reflects improvements in sanitation, medical services and access to food throughout the developing world, as well as the success of broad public health efforts like vaccine programs. The results are striking: infant mortality declined by more than half from 1990 to 2010, and malnutrition, the No. 1 risk factor for death and years of life lost in 1990, has fallen to No. 8.

At the same time, chronic diseases like cancer now account for about two out of every three deaths worldwide, up from just over half in 1990. Eight million people died of cancer in 2010, 38 percent more than in 1990. Diabetes claimed 1.3 million lives in 2010, double the number in 1990.

“The growth of these rich-country diseases, like heart disease, stroke, cancer and diabetes, is in a strange way good news,” said Ezekiel Emanuel, chairman of the department of medical ethics and health policy at the University of Pennsylvania. “It shows that many parts of the globe have largely overcome infectious and communicable diseases as a pervasive threat, and that people on average are living longer.”

In 2010, 43 percent of deaths in the world occurred at age 70 and older, compared with 33 percent of deaths in 1990, the report said. And fewer child deaths have brought up the mean age of death, which in Brazil and Paraguay jumped to 63 in 2010, up from 30 in 1970, the report said. The measure, an average of all deaths in a given year, is different from life expectancy, and is lower when large numbers of children die.

But while developing countries made big strides the United States stagnated. American women registered the smallest gains in life expectancy of all high-income countries’ female populations between 1990 and 2010. American women gained just under two years of life, compared with women in Cyprus, who lived 2.3 years longer and Canadian women who gained 2.4 years. The slow increase caused American women to fall to 36th place in the report’s global ranking of life expectancy, down from 22nd in 1990. Life expectancy for American women was 80.5 in 2010, up from 78.6 in 1990.

“It’s alarming just how little progress there has been for women in the United States,” said Christopher Murray, director of the Institute for Health Metrics and Evaluation, a health research organization financed by the Bill and Melinda Gates Foundation at the University of Washington that coordinated the report. Rising rates of obesity among American women and the legacy of smoking, a habit women formed later than men, are among the factors contributing to the stagnation, he said. American men gained in life expectancy, to 75.9 years from 71.7 in 1990.

Health experts from more than 300 institutions contributed to the report, which provided estimates of disease and mortality for populations in more than 180 countries. It was published in The Lancet, a British medical journal.

The World Health Organization issued a statement on Thursday saying that some of the estimates in the report differed substantially from those done by United Nations agencies, though others were similar. All comprehensive estimates of global mortality rely heavily on statistical modeling because only 34 countries — representing about 15 percent of the world’s population — produce quality cause-of-death data.

Sub-Saharan Africa was an exception to the trend. Infectious diseases, childhood illnesses and maternity-related causes of death still account for about 70 percent of the region’s disease burden, a measure of years of life lost due to premature death and to time lived in less than full health. In contrast, they account for just one-third in South Asia, and less than a fifth in all other regions. Sub-Saharan Africa also lagged in mortality gains, with the average age of death rising by fewer than 10 years from 1970 to 2010, compared with a more than 25-year increase in Latin America, Asia and North Africa.

Globally, AIDS was an exception to the shift of deaths from infectious to noncommunicable diseases. The epidemic is believed to have peaked, but still results in 1.5 million deaths each year.

Over all, the change means people are living longer, but it also raises troubling questions. Behavior affects people’s risks of developing cancer, heart disease and diabetes, and public health experts say it is far harder to get people to change their ways than to administer a vaccine that protects children from an infectious disease like measles.

“Adult mortality is a much harder task for the public health systems in the world,” said Colin Mathers, a senior scientist at the World Health Organization.

Tobacco use is a rising threat, especially in developing countries, and is responsible for almost six million deaths a year globally. Illnesses like diabetes are also spreading fast.

Donald G. McNeil Jr. contributed reporting.

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On Instagram, a Thriving Bazaar Taps a Big Market

Instagram, the picture-sharing application that Facebook bought earlier this year, has not yet figured out a way to make money. But some of its users have.

Peter DaSilva for The New York Times

Services like Prinstagram let people turn their Instagram images into prints, wall calendars and stickers.

These entrepreneurs have realized that they can piggyback on the popularity of Instagram, which has more than 100 million users, and create their own businesses, some of which have turned out to be quite profitable. They join a long line of innovators who have found creative ways to build new services on top of existing sites and platforms.

Services like Printstagram, for example, let people turn their Instagram images into prints, wall calendars and stickers. A group of designers are building a digital picture frame for Instagram photos. Some early users of the service are leveraging their expertise and sizable followings and starting consulting agencies, advising big-name brands on how best to use Instagram themselves.

And others have simply realized that the app is a great place to post photos of things they are trying to sell. Jenn Nguyen, 26, who lives in Irvine, Calif., has 8,300 followers on Instagram, where she posts images of lavishly made-up women who are wearing her brand of false eyelashes.

“When we post a new picture of someone wearing our lashes, we instantly see sales,” she said.

Ms. Nguyen is part of a wave of entrepreneurial Instagrammers who have transformed their feeds into virtual shop windows, full of handmade jewelry, retro eyewear, high-end sneakers, cute baking accessories, vintage clothing and custom artwork.

Those who want to sell things on Instagram have to resort to surprisingly low-tech tactics. Instagram does not allow users to add links to their photo posts, so merchants have to list a phone number for placing orders, or hope their followers will type the Web address of their store into a browser.

Shoppers seem willing to put up with that hassle. Ms. Nguyen said that during a recent holiday sale, she offered Instagram followers a coupon for 35 percent off their orders. That day, she said, she netted 100 orders, about $4,000 in sales, up from her usual $500. In her photo captions she mentions her online store and highlights products that are new or soon to be sold out.

Most of the people taking this sales approach are small-scale entrepreneurs and artists, looking for another way to find customers for their consignment shops and jewelry businesses. Hundreds of larger companies and big-name brands have accounts on Instagram, but only a few have taken steps toward actually selling there. Bergdorf Goodman, the luxury retailer, has posted photographs of women’s shoes and jewelry alongside telephone numbers for the store.

Instagram is a compelling medium “because a photo translates to any language,” said Liz Eswein, one of the founders of the Mobile Media Lab, a digital agency focused entirely on helping companies figure out their Instagram strategies. “It’s easier to get lost in the shuffle on other networks” like Facebook and Twitter, she added.

Ms. Eswein, Brian DiFeo and Anthony Danielle formed the company in March after realizing that their collective Instagram followers — nearly 850,000 — and understanding of the service could be valuable to companies like Nike, Delta, Samsung and Marc Jacobs who were hoping to reach fans of their brands. Now Mobile Media Lab runs promotions and special campaigns for those clients and others.

“We aren’t saying ‘Click here and buy this product’ — it’s more about putting the image in their head and introducing them to a product within the service,” said Ms. Eswein. In that way, it’s closer to traditional advertising, Mr. DiFeo said: “It’s classic marketing. You see an ad on a billboard, or on a bus as it goes by, on TV and now, in an Instagram post. It sticks.”

The mini-industries cropping up on and around Instagram are fueled by the service’s explosive growth. In April, Instagram had 25 million users. Eight months later it has quadrupled that figure and amassed more than five billion photos. In October, the mobile service had 7.8 million daily active visitors, according to comScore, more than Twitter’s 6.6 million.

Both Facebook and Instagram declined to talk about how Instagram might make money directly. But analysts suspect that Facebook will try to weave advertising into the Instagram app at some point, much as it has with its own app.

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Rice Ends Bid to Succeed Clinton as Secretary of State

WASHINGTON — President Obama knew before he picked up the phone on Thursday afternoon what Susan E. Rice, his ambassador to the United Nations, was calling about: she wanted to take herself out of the running for secretary of state and spare him a fight.

By acceding to Ms. Rice’s request, which she had conveyed to White House aides the night before, Mr. Obama averted a bitter, potentially disruptive battle with Republicans in Congress at the start of his second term and at a time when his administration is struggling to reach a politically difficult deal on the federal budget.

In a statement, the president praised Ms. Rice and expressed some anger over the withering criticism directed at her by Republicans because of  comments she made in the aftermath of the lethal attack on the American mission in Benghazi, Libya.

“While I deeply regret the unfair and misleading attacks on Susan Rice in recent weeks,” he said, “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.”

By all accounts, Ms. Rice had been Mr. Obama’s first choice to succeed Hillary Rodham Clinton, though recently he seemed to be signaling that her nomination was far from a foregone conclusion. Her decision to withdraw, which senior officials insist Ms. Rice made without prodding from the White House, clears the way for Mr. Obama to nominate Senator John Kerry, Democrat of Massachusetts and chairman of the Senate Foreign Relations Committee, officials said.

Republicans say Mr. Kerry would sail through a confirmation process, while several senators had vowed to block Ms. Rice’s nomination, citing what they said were her misleading statements about the Sept. 11 attack that killed four Americans, including Ambassador J. Christopher Stevens.

By stepping aside, Ms. Rice will allow Mr. Obama to present a full slate of appointees to his national security team, as early as next week. Among the other candidates for key posts, officials said, is former Senator Chuck Hagel, a Nebraska Republican, for secretary of defense. Like Mr. Kerry, Mr. Hagel, a Vietnam veteran who opposed the Iraq war, would be supported by many of his former colleagues.

Their nominations would also remove a major source of tension between the White House and Congressional Republicans, who had expanded their attack on Ms. Rice from Benghazi to a broader indictment of her record as a policy maker on Africa, her role in securing American embassies in Kenya and Tanzania that came under terrorist attack, and even her personal finances.

Senator Lindsey Graham, a Republican from South Carolina and one of Ms. Rice’s fiercest critics, said Thursday that he respected her decision, but added in a statement that he planned “to continue working diligently to get to the bottom of what happened in Benghazi.”

In a letter she sent to Mr. Obama before her call, Ms. Rice attributed her decision to a recognition that “the confirmation process would be lengthy, disruptive and costly — to you and to our most pressing national and international priorities. The trade-off is simply not worth it to our country.”

Mr. Obama said he accepted her request with regret, describing her in a statement as “an extraordinarily capable, patriotic, and passionate public servant” with a “limitless capability to serve our country” — a line that one official said signaled that Ms. Rice, who will continue in her job at the United Nations, remains a candidate for other senior posts, including national security adviser.

Republicans are eager to see a new appointee, and should it be Mr. Kerry, his party’s 2004 presidential nominee, he would receive a far different reception.  “She made her own decision and I think it’s the right decision,” said Senator John Barrasso of Wyoming, a member of the Foreign Relations Committee. “I think she would have had a very hard time getting through.” Mr. Kerry, by contrast, is “immensely qualified and he would be easily confirmed,” he said.

For his part, Mr. Kerry heaped praise on Ms. Rice. In a statement, he said, “As someone who has weathered my share of political attacks and understands on a personal level just how difficult politics can be, I’ve felt for her throughout these last difficult weeks, but I also know that she will continue to serve with great passion and distinction.”

Jennifer Steinhauer contributed reporting.

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Angry Birds beats Samsung in viral marketing as mobile interest surged in 2012

This past year has shown us how effective leading smartphone and mobile app companies have become at leveraging viral videos. In Ad Age’s top-10 viral videos list for 2012, Samsung (005930) and Rovio each hog two spots. The Angry Birds Space video racked up 109 million views and the Angry Birds Star Wars hit the 41 million view mark. Meanwhile, Samsung managed to get 79 million views for its Galaxy S III video and 42 million views for the LeBron’s Day clip. It’s notable that Rovio’s Angry Birds clips were far cheaper to produce, with no major stars or lavish video production gimmickry.

The smartphone/mobile app industry thus held four of the top-10 viral video slots in 2012 — the rest of the list is a motley crew of names ranging from Invisible Children and Red Bull to Intel and M&M. It is telling that the smartphone/mobile app cluster is the only industry or cultural phenomenon that generated more than one spot on the list. Popular interest in mobile content continues surging.

It might also be a sign of the times that Apple (AAPL) did not hit the top-10. Samsung’s ultra-aggressive promotional efforts have started bearing fruit. What was once a boring, stale copycat brand in 2008 has suddenly started gripping the imaginations of consumers in a completely new way.

But perhaps even more interesting is that a mobile app company with less than 100 million euros in sales in 2011 managed to beat the mighty Samsung marketing machine in 2012. Rovio is in the vanguard of spreading mobile gaming into demographic niches that have never been all that interested in technology or gaming.

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Saints coach: Witnesses lied in NFL investigation

METAIRIE, La. (AP) — Saints assistant head coach Joe Vitt said Thursday witnesses in the NFL's bounty investigation of the New Orleans Saints have lied about him and the organization, and that their stories might change in federal court.

Alluding to a defamation lawsuit filed by Saints linebacker Jon Vilma against NFL Commissioner Roger Goodell, Vitt angrily said he feels the truth about the pay-for-pain system will come out before U.S. District Judge Ginger Berrigan, who is presiding over the pending case in New Orleans.

"If anybody's keeping a scorecard here, let's take a look at this," Vitt said. He referred back to his first meeting with reporters after the NFL released its bounty probe findings last March, in which he said, "At no point in time did our players ever cross the white line with the intention of injuring, maiming or ending the career of another player. That never took place."

Then, recounting his witness appearance in Vilma's case last summer, he added, "I've testified before a federal judge with my hand on the Bible."

"What's going to happen now is all participants, all these accusations, are going to go to federal court," Vitt continued. "They're going to go to a judge, and from top to bottom, she's going to hear testimony, and the penalty for perjury with her is going to be jail time."

Vitt's comments came a day after The Associated Press reported that former Saints defensive coordinator Gregg Williams testified in recent NFL appeal hearings that he tried to stop the Saints' bounty program, only to be overruled by Vitt. The AP obtained transcripts from the closed-door hearings, which were held for Vilma and three other players who had been punished in the bounty probe.

Those same transcripts show Vitt later denied Williams' allegation and offered to take a lie detector test, adding, "There's a lot of lying going on right now."

Vitt called Williams a liar repeatedly during his appeal hearing testimony, even saying Williams "has lost his mind in some situations."

Saints quarterback Drew Brees has been defending the integrity of his coaches, saying Wednesday it was hard to believe the NFL based its case on the testimony of Williams and former defensive assistant Mike Cerullo, "two disgruntled employees that were fired here because they did not fit the mold of what we are about."

Former NFL Commissioner Paul Tagliabue was appointed by Goodell to handle the players' appeals, and on Tuesday overturned their suspensions. However, he affirmed many of the findings of the bounty probe and found that three players, with the exception of former Saints linebacker Scott Fujita, committed "conduct detrimental" to the league.

Vitt has been serving as the Saints' interim head coach this season, except for six games when he was suspended. Saints head coach Sean Payton was suspended the entire season and general manager Mickey Loomis eight games.

The players had fought their bounty punishment with the help of their union, through the NFL's collective bargaining agreement and in federal court.

"Myself, Sean and Mickey didn't have that right," Vitt said, referring to the fact they did not have union representation. "I've already served my time. Mickey has already served his time. And to be quite frank with you, I don't know what door to knock on Park Avenue (where NFL headquarters are located) to get my reputation back. But again, I'm going to defend our players, I'm going to defend this organization and I'm going to defend our ownership."

Vitt declined to say on Thursday whether he expects to bring any legal action of his own, though he had testified before Tagliabue that he will sue Cerullo.

Although Vilma's case is pending, the judge denied the linebacker's request this week to begin the discovery process that includes the gathering of evidence and deposing of witnesses, and she is still considering an NFL motion to dismiss the case.

When asked if he could take action against Goodell or the league, Vitt responded, "There's nothing. It's history," but then added, "We'll all be before a federal judge. That's coming. We'll all be before the federal judge. And the one great thing about this country — the truth is going to prevail."

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