Washington wins 3 trophies at NAACP Image Awards

LOS ANGELES (AP) — Kerry Washington was a triple threat at the NAACP Image Awards.

The star of ABC's "Scandal" picked up a trio of trophies at the 44th annual ceremony: outstanding actress in a drama series for "Scandal," supporting actress in a motion picture for "Django Unchained" and the President's Award, which is given in recognition of special achievement and exceptional public service.

"This award does not belong to me," said Washington, who plays a slave separated from her husband in "Django Unchained," as she picked up her first trophy of the evening for her role in the film directed by Quentin Tarantino. "It belongs to our ancestors. We shot this film on a slave plantation, and they were with us along every step of the way."

Washington, who plays crisis management consultant Olivia Pope on "Scandal," serves on President Barack Obama's Committee on the Arts and the Humanities.

Don Cheedle was awarded the outstanding actor in a comedy series trophy for his role as a slick management consultant in Showtime's "House of Lies."

"This doesn't belong just to me, but I am taking it home tonight," joked Cheedle.

A few winners weren't present at the Shrine Auditorium to pick up their trophies, including Denzel Washington for outstanding actor in a motion picture for "Flight," Viola Davis for outstanding actress in a motion picture for "Won't Back Down" and Omar Epps for supporting actor in a drama series for Fox's "House."

"Red Tails," the drama about the Tuskegee Airmen, was honored as outstanding motion picture.

"Look! I beat Quentin Tarantino," beamed "Red Tails" executive producer George Lucas as he accepted the award.

LL Cool J, who was honored as outstanding actor in a drama series for CBS' "NCIS: Los Angeles," dedicated his trophy to fellow nominee Michael Clarke Duncan, "The Green Mile" and "The Finder" actor who died last year.

"I wish his family well," said LL. "Let's give it up for him."

Gladys Knight sang during the in memoriam segment, but the beginning of her performance wasn't heard on the live NBC broadcast because of a technical glitch.

Sidney Poitier presented Harry Belafonte with the Spingarn Award, which honors outstanding achievement by an African American. His honor was followed by a serenade from Wyclef Jean and Common.

Other winners at the ceremony hosted by talk show host Steve Harvey included Loretta Devine as supporting actress in a drama series for "Grey's Anatomy," Cassi Davis as outstanding actress in a comedy series and Lance Gross as outstanding supporting actor in a comedy series for TBS' "Tyler Perry's House of Payne."

The Image Awards are presented annually by the National Association for the Advancement of Colored People, and the group's members select the winners.

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Online:

http://www.naacpimageawards.net

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Follow AP Entertainment Writer Derrik J. Lang on Twitter at http://www.twitter.com/derrikjlang

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Birth Control Rule Altered to Allay Religious Objections

WASHINGTON — The Obama administration on Friday proposed yet another compromise to address strenuous objections from religious organizations about a policy requiring health insurance plans to provide free contraceptives, but the change did not end the political furor or legal fight over the issue.

The proposal could expand the number of groups that do not need to pay directly for birth control coverage, encompassing not only churches and other religious organizations, but also some religiously affiliated hospitals, universities and social service agencies. Health insurance companies would pay for the coverage.

The latest proposed change is the third in the last 15 months, all announced on Fridays, as President Obama has struggled to balance women’s rights, health care and religious liberty. Legal experts said the fight could end up in the Supreme Court.

Kathleen Sebelius, the secretary of health and human services, said the proposal would guarantee free coverage of birth control “while respecting religious concerns.”

But Kyle Duncan, the general counsel of the Becket Fund for Religious Liberty in Washington, which is representing employers in eight lawsuits, said the litigation would continue. “Today’s proposed rule does nothing to protect the religious freedom of millions of Americans,” Mr. Duncan said.

Religious groups dissatisfied with the new proposal want a broader, more explicit exemption for religious organizations and protection for secular businesses owned by people with religious objections to contraceptive coverage.

The tortured history of the rule has played out in several chapters. The Obama administration first issued standards requiring insurers to cover contraceptives for women in August 2011, less than a month after receiving recommendations to that effect from the National Academy of Sciences. In January 2012, the administration rejected a broad exemption sought by the Roman Catholic Church for insurance provided by Catholic hospitals, colleges and charities. After a firestorm of criticism from Catholic bishops and Republican lawmakers, the administration offered a possible compromise that February. But it left many questions unanswered and did not say how coverage would be provided for self-insured religious organizations.

Under the new proposal, churches and nonprofit religious organizations that object to providing birth control coverage on religious grounds would not have to pay for it.

Female employees could get free contraceptive coverage through a separate plan that would be provided by a health insurer. Institutions objecting to the coverage would not pay for the contraceptives.

Chiquita Brooks-LaSure, who helped develop the proposal as deputy director of the federal office that regulates health insurance, said: “Under the proposed rule, insurance companies — not churches or other religious organizations — will cover contraceptive services. No nonprofit religious institution will be forced to pay for or provide contraceptive coverage, and churches and houses of worship are specifically exempt.”

Moreover, she said, “Nonprofit religious organizations like universities, hospitals or charities with religious objections won’t have to arrange, contract or pay for coverage of these services for their employees or students.”

But some of the lawsuits objecting to the plan have been filed by businesses owned by people who say they have religious reasons for not wanting to provide contraceptive coverage. Under the proposed rule, “for-profit secular employers” would have to provide birth control coverage to employees, even if the business owners had a religious objection to the idea.

Insurers said they were studying the proposal, but had questions about how it would work. Many insurers asked where they would get the money to pay for birth control pills if — as the proposed rule says — they cannot “impose any premium, fee or other charge” for the coverage. The 2010 health care law generally requires employers to provide women with coverage at no cost for “preventive care and screenings,” which the administration says must include contraceptives for women under most health plans.

The administration says employers must cover sterilization and the full range of contraceptive methods approved by the Food and Drug Administration, including emergency contraceptive pills, like those known as ella and Plan B One-Step. Employers that do not provide such coverage will be subject to financial penalties.

The proposed rule is somewhat ambiguous about exactly who would pay the cost of contraceptive coverage.

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Dow Jones index closes above 14,000

Americans are doing something they haven't done in years — they're buying stocks.

Individual investors are pouring money into the stock market this year. They've been drawn by the powerful rally in share prices and are desperate for better returns than the minuscule yields available from bonds and bank accounts.

This renewed enthusiasm helped the Dow Jones industrial average achieve a milestone Friday, surging above 14,000 points for the first time since the financial crisis struck.

The world's best-known stock index has more than doubled from its crisis-era low and is nearing an even more impressive mark — a new all-time high. After closing at 14,009.79 points on Friday, the Dow is less than 155 points from its October 2007 peak.

"We've come a long way," said Seth Masters, chief investment officer at Bernstein Wealth Management Group in New York. "There was a great financial crisis five years ago and there was a lot of repair that had to happen in the corporate world and for consumers."

The surge in the Dow is part of a broader rebound in stock markets around the world, many of which are up 6% or more this year.

The rally is a measure of the recovery from the debilitating financial crisis that lashed the economy. And the improved optimism among investors stands in sharp contrast to the anxiety that pervaded financial centers and world capitals during the crisis.

Investors at the time feared a cataclysmic meltdown after the historic collapse of Lehman Bros. and the seizing up of capital markets throughout the world. The Federal Reserve took a series of emergency measures, including dramatically lowering interest rates and introducing unprecedented stimulus programs to revive growth.

Now investors are hoping that the gruelingly slow convalescence in the U.S. economy and job market will quicken as the year progresses.

"Investors are perceiving that the economy is doing better — that the worst days are behind us," said Paul Zemsky, chief investment officer of multi-asset strategies at ING Investment Management in New York.

On Friday, the Labor Department reported that the U.S. economy added 157,000 jobs in January. The report pushed stocks higher, sending the Dow up nearly 150 points.

That was fewer jobs than economists predicted, but the report also showed that employment growth was faster than thought in 2012, with 127,000 more jobs added in November and December than the government's previous estimates.

Small investors' renewed interest in stocks has been driven by their search for an alternative to the maddeningly low interest rates on fixed-income investments.

Joe Mills had long invested in stock mutual funds in his 401(k) retirement account. But he was earning next to nothing in a money-market mutual fund, so he bought his very first stock in August 2011.

He now has stakes in four companies, including Apple Inc. and Procter & Gamble.

"I feel like the risk of having zero return [in bonds] over the next 20 years is greater than the risk of selecting some stocks," said Mills, a 44-year-old structural engineer from Beckley, W.Va.

The rush into stocks is a mixed blessing, experts say.

Stocks have offered the best returns historically, and aging baby boomers deeply behind in retirement savings need all the help they can get.

But their renewed interest underscores how many people missed the rally for fear of getting scorched by another bear market.

"People by and large over the last five or six years have been deeply seared by the experience of 2008 and the ups and downs in stocks since then," said Masters of Bernstein Wealth Management. "There has actually been a bull market since March 2009, but they really don't feel at all like they've been in a bull market."

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Mahony stripped of public church duties

Los Angeles Archbishop Jose Gomez  on Thursday announced dramatic actions in response to the priest abuse scandal, saying that Cardinal Roger Mahony would be stripped of public duties in the church and that Santa Barbara Bishop Thomas J. Curry has stepped down.

Gomez said in a statement that Mahony -- who led the L.A. archdiocese from 1985 to 2011 -- "will no longer have any administrative or public duties."

Gomez also announced the church has released a trove of confidential church files detailing how the Los Angeles archdiocese dealt with priests accused of molestation.

Gomez wrote in a letter to parishioners that the files would be disturbing to read.

"I find these files to be brutal and painful reading. The behavior described in these files is terribly sad and evil. There is no excuse, no explaining away what happened to these children. The priests involved had the duty to be their spiritual fathers and they failed," he wrote. "We need to acknowledge that terrible failure today."

Gomez's statement came a week after the release of internal Catholic church records. The records showed 15 years before the clergy sex abuse scandal came to light, Mahony and Curry discussed ways to conceal the molestation of children from law enforcement. Those records represent just a fraction of the files the church released Thursday. The Times is now reviewing those files.

DOCUMENT: Los Angeles Archdiocese priest abuse files

The records released last week offer the strongest evidence yet of a concerted effort by officials in the nation's largest Catholic diocese to shield abusers from police. The newly released records, which the archdiocese fought for years to keep secret, reveal in church leaders' own words a desire to keep authorities from discovering that children were being molested.

The records contain memos written in 1986 and 1987 by Mahony and Curry, then the archdiocese's chief advisor on sex abuse cases. In the confidential letters, Curry proposed strategies to prevent police from investigating three priests who had admitted to church officials that they had abused young boys.

Curry suggested to Mahony that they prevent the priests from seeing therapists who might alert authorities and that they give the priests out-of-state assignments to avoid criminal investigators. Mahony, who retired in 2011, has apologized repeatedly for errors in handling abuse allegations.

Gomez's letter detailed changes in the status of Curry and Mahony in the church.

"Effective immediately, I have informed Cardinal Mahony that he will no longer have any administrative or public duties. Auxiliary Bishop Thomas Curry has also publicly apologized for his decisions while serving as Vicar for Clergy. I have accepted his request to be relieved of his responsibility as the Regional Bishop of Santa Barbara,” Gomez wrote in a letter.

The records were released hours after a judge signed an order requiring the church to do so.

In a written order, Los Angeles County Superior Court Judge Emilie H. Elias gave the church a Feb. 22 deadline to turn over about 30,000 pages of internal memos, psychiatric reports, Vatican correspondence and other documents.

“Let’s just get it done,” Elias said in court Thursday.

Her order brought to a close five and a half years of legal wrangling and delays and set the stage for a raft of new and almost certainly embarrassing revelations about the church’s handling of pedophile priests.

DOCUMENT: Los Angeles Archdiocese priest abuse files

The files Elias ordered released are the final piece of a landmark 2007 settlement between the archdiocese and about 500 people who said clergy abused them. As part of that $660-million settlement, the archdiocese agreed to hand over the personnel files of accused abusers. Victims said the files would provide accountability for church leaders who let pedophiles remain in the ministry; law enforcement officials said the records would be important investigative tools.

But the release was delayed for years by appeals and the painstaking process of reading and redacting 89 files, some hundreds of pages long. A private mediator in 2011 ordered the church to black out the names of victims and archdiocese employees not accused of abuse, saying he wanted to avoid “guilt by association.”

Earlier this month, at the urging of the Los Angeles Times and the Associated Press, Elias ordered the names restored, saying the public had a right to know what Mahony and others in charge did about abuse. The church complained about the cost of restoring the redactions and suggested to the judge earlier this week that generic cover sheets for the files listing top officials and their dates of service should suffice.

After criticism from attorneys for the victims and the media, the church abandoned that plan and its lawyers said in court Thursday “anybody in a supervisory role” would be named in the documents. Elias’ order specified that the names of the archbishop, the vicar who handled clergy abuse, bishops and the heads of Catholic treatment centers for pedophiles be included.

Here is Gomez's full letter:

My brothers and sisters in Christ,

This week we are releasing the files of priests who sexually abused children while they were serving in the Archdiocese of Los Angeles.

These files document abuses that happened decades ago. But that does not make them less serious.

I find these files to be brutal and painful reading. The behavior described in these files is terribly sad and evil. There is no excuse, no explaining away what happened to these children. The priests involved had the duty to be their spiritual fathers and they failed.

We need to acknowledge that terrible failure today. We need to pray for everyone who has ever been hurt by members of the Church. And we need to continue to support the long and painful process of healing their wounds and restoring the trust that was broken.

I cannot undo the failings of the past that we find in these pages. Reading these files, reflecting on the wounds that were caused, has been the saddest experience I’ve had since becoming your Archbishop in 2011.

My predecessor, retired Cardinal Roger Mahony, has expressed his sorrow for his failure to fully protect young people entrusted to his care. Effective immediately, I have informed Cardinal Mahony that he will no longer have any administrative or public duties. Auxiliary Bishop Thomas Curry has also publicly apologized for his decisions while serving as Vicar for Clergy. I have accepted his request to be relieved of his responsibility as the Regional Bishop of Santa Barbara.

To every victim of child sexual abuse by a member of our Church: I want to help you in your healing. I am profoundly sorry for these sins against you.

To every Catholic in the Archdiocese of Los Angeles, I want you to know: We will continue, as we have for many years now, to immediately report every credible allegation of abuse to law enforcement authorities and to remove those credibly accused from ministry. We will continue to work, every day, to make sure that our children are safe and loved and cared for in our parishes, schools and in every ministry in the Archdiocese.

In the weeks ahead, I will address all of these matters in greater detail. Today is a time for prayer and reflection and deep compassion for the victims of child sexual abuse.

I entrust all of us and our children and families to the tender care and protection of our Blessed Mother Mary, Our Lady of Guadalupe and Our Lady of the Angels.

Sincerely yours in Christ,

RELATED:

L.A. church molestation records spark call for criminal inquiry

Steve Lopez: It's too late for Cardinal Roger Mahony's apologies

--  Harriet Ryan, Hector Becerra, Ashley Powers and Victoria Kim

Photo: Cardinal Roger Mahony in the entrance processional for the Mass for the Reception of Coadjutor Archbishop of Los Angeles Jose Gomez. Credit: Don Bartletti / Los Angeles Times

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BSkyB to offer sports channels online for daily fee

LONDON (Reuters) – BSkyB will offer its popular sports channels online for a daily fee, seeking new customers to offset slowing growth at its core pay-TV service amid sluggish consumer spending.

Sky, Britain’s dominant pay-TV group which provides fixed-line telephony, TV and broadband to 10.7 million households, has adapted its strategy during the economic downturn after years of chasing new subscribers to its core TV offering.

The group added 25,000 subscribers to its pay-TV service in the three months to the end of December, well down on the more than 100,000 users it used to routinely add each quarter.

In response, it has focused on selling more products such as high definition TV and broadband to existing customers, and moving online to reach those not willing to sign up to a monthly contract. The approach has enabled the group to consistently post strong financial results and pay higher dividends.

“Although we expect the consumer environment in 2013 to remain challenging, we have a strong set of plans for the year ahead,” Chief Executive Jeremy Darroch said on Thursday.

Darroch said the group would offer its sports channels, which show everything from Premier League soccer to Formula One motor racing and cricket, on its new online service called Now TV in the next few months.

Viewers, who do not need to sign up to a contract, will be able to pay 9.99 pounds to watch all six Sky Sports channels for 24 hours. It has already shown movies via the online offering to 25,000 customers since its launch last year.

The new internet drive will help BSkyB compete with existing online services such as Lovefilm and with BT Vision, which has won the right to show its own sports content, but it is also having to bet that its existing customers will not downgrade to the cheaper online offering to save money.

CUSTOMER LOYALTY

The group’s performance in the first half of the year showed that, despite the pressures on consumer spending, customer loyalty had remained relatively solid, with subscribers spending on average 568 pounds a year, up 24 pounds on the year before.

“Net additions were slightly below our estimates reflecting the tough consumer environment,” analysts at Numis said. “(But) encouragingly, take up of new products continues to increase, driving customer satisfaction and loyalty.”

Those customers taking all three main services – TV, broadband and telephony – accounted for 33 percent of the user base, up 4 percentage points year on year.

The rise in customers helped the group to post first-half operating profit up 8 percent to 647 million pounds ($ 1 billion) against a forecast of 632 million pounds. Cost control helped the group pay an interim dividend up 20 percent to 11 pence.

“We believe the BSkyB investment case has evolved over the past year or so, with the challenging consumer environment making the addition of new households to the (pay-TV) service more difficult,” Numis said.

“The group has rightly prioritized the increased penetration of multiple products, notably HD and broadband, which drive average revenue per user and reduce churn over the medium/long term. We are supportive of investment in products such as Now TV which offer an attractive risk/return in our view.”

Shares in BSkyB were up 1 percent to 819 pence in mid-morning trade, following a 21 percent rise in the last 12 months, and valuing the group at 13.2 billion pounds.

(Reporting by Kate Holton; Editing by Rhys Jones and Mark Potter)

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Appeals judges: Anti-paparazzi law appears legal

LOS ANGELES (AP) — An appeals panel says California's anti-paparazzi statute appears to be constitutional based on a brief filed by prosecutors.

A preliminary statement by three judges in Los Angeles requires a judge who dismissed charges aimed at a paparazzo who authorities say was driving recklessly to review his order. The judge may stick to his ruling, which would trigger a full appeal, or he could schedule further arguments on the case against freelance photographer Paul Raef.

Raef was the first person charged under the new law after a high-speed chase involving Justin Bieber last year.

Superior Court Judge Thomas Rubinson dismissed two charges in November, ruling the law is too broad and is unconstitutional.

Raef's attorney David S. Kestenbaum says he is asking Rubinson to stand by his ruling and allow a full appeal.

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During Trial, New Details Emerge on DuPuy Hip

When Johnson & Johnson announced the appointment in 2011 of an executive to head the troubled orthopedics division whose badly flawed artificial hip had been recalled, the company billed the move as a fresh start.

But that same executive, it turns out, had supervised the implant’s introduction in the United States and had been told by a top company consultant three years before the device was recalled that it was faulty.

In addition, the executive also held a senior marketing position at a time when Johnson & Johnson decided not to tell officials outside the United States that American regulators had refused to allow sale of a version of the artificial hip in this country.

The details about the involvement of the executive, Andrew Ekdahl, with the all-metal hip implant emerged Wednesday in Los Angeles Superior Court during the trial of a patient lawsuit against the DePuy Orthopaedics division of Johnson & Johnson. More than 10,000 lawsuits have been filed against DePuy in connection with the device — the Articular Surface Replacement, or A.S.R. — and the Los Angeles case is the first to go to trial.

The information about the depth of Mr. Ekdahl’s involvement with the implant may raise questions about DePuy’s ability to put the A.S.R. episode behind it.

Asked in an e-mail why the company had promoted Mr. Ekdahl, a DePuy spokeswoman, Lorie Gawreluk, said the company “seeks the most accomplished and competent people for the job.”

On Wednesday, portions of Mr. Ekdahl’s videotaped testimony were shown to jurors in the Los Angeles case. Other top DePuy marketing executives who played roles in the A.S.R. development are expected to testify in coming days. Mr. Ekdahl, when pressed in the taped questioning on whether DePuy had recalled the A.S.R. because it was unsafe, repeatedly responded that the company had recalled it “because it did not meet the clinical standards we wanted in the marketplace.”

Before the device’s recall in mid-2010, Mr. Ekdahl and those executives all publicly asserted that the device was performing extremely well. But internal documents that have become public as a result of litigation conflict with such statements.

In late 2008, for example, a surgeon who served as one of DePuy’s top consultants told Mr. Ekdahl and two other DePuy marketing officials that he was concerned about the cup component of the A.S.R. and believed it should be “redesigned.” At the time, DePuy was aggressively promoting the device in the United States as a breakthrough and it was being implanted into thousands of patients.

“My thoughts would be that DePuy should at least de-emphasize the A.S.R. cup while the clinical results are studied,” that consultant, Dr. William Griffin, wrote.

A spokesman for Dr. Griffin said he was not available for comment.

The A.S.R., whose cup and ball components were both made of metal, was first sold by DePuy in 2003 outside the United States for use in an alternative hip replacement procedure called resurfacing. Two years later, DePuy started selling another version of the A.S.R. for use here in standard hip replacement that used the same cup component as the resurfacing device. Only the standard A.S.R. was sold in the United States; both versions were sold outside the country.

Before the device recall in mid-2010, about 93,000 patients worldwide received an A.S.R., about a third of them in this country. Internal DePuy projections estimate that it will fail in 40 percent of those patients within five years; a rate eight times higher than for many other hip devices.

Mr. Ekdahl testified via tape Wednesday that he had been placed in charge of the 2005 introduction of the standard version of the A.S.R. in this country. Within three years, he and other DePuy executives were receiving reports that the device was failing prematurely at higher than expected rates, apparently because of problems related to the cup’s design, documents disclosed during the trial indicate.

Along with other DePuy executives, he also participated in a meeting that resulted in a proposal to redesign the A.S.R. cup. But that plan was dropped, apparently because sales of the implant had not justified the expense, DePuy documents indicate.

In the face of growing complaints from surgeons about the A.S.R., DePuy officials maintained that the problems were related to how surgeons were implanting the cup, not from any design flaw. But in early 2009, a DePuy executive wrote to Mr. Ekdahl and other marketing officials that the early failures of the A.S.R. resurfacing device and the A.S.R. traditional implant, known as the XL, were most likely design-related.

“The issue seen with A.S.R. and XL today, over five years post-launch, are most likely linked to the inherent design of the product and that is something we should recognize,” that executive, Raphael Pascaud wrote in March 2009.

Last year, The New York Times reported that DePuy executives decided in 2009 to phase out the A.S.R. and sell existing inventories weeks after the Food and Drug Administration asked the company for more safety data about the implant.

The F.D.A. also told the company at that time that it was rejecting its efforts to sell the resurfacing version of the device in the United States because of concerns about “high concentration of metal ions” in the blood of patients who received it.

DePuy never disclosed the F.D.A. ruling to regulators in other countries where it was still marketing the resurfacing version of the implant.

During a part of that period, Mr. Ekdahl was overseeing sales in Europe and other regions for DePuy. When The Times article appeared last year, he issued a statement, saying that any implication that the F.D.A. had determined there were safety issues with the A.S.R. was “simply untrue.” “This was purely a business decision,” Mr. Ekdahl stated at that time.

This article has been revised to reflect the following correction:

Correction: February 1, 2013

A headline on Thursday about a patient lawsuit against DePuy Orthopaedics, a unit of Johnson & Johnson, misstated the start of the trial in some copies. It began last week, not on Wednesday.

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Hackers target Western news organizations in China

More than 30 journalists and executives at Western news organizations in China, including the New York Times and the Wall Street Journal, have had their computers hacked, according to the news organizations and a security firm that monitors such attacks.

Over the last four months, the hackers managed to infiltrate the Times' computers, the newspaper reported Thursday. It said hackers had penetrated its computers and obtained passwords for reporters and other employees.

The hackers have been blocked and security tightened to prevent another attack, which followed an investigation by the paper into finances of relatives of Wen Jiabao, China's premier.

Mandiant Corp., a security firm brought into the case by the Times, said it found that hackers using techniques associated with the Chinese military stole emails, contacts and files from 30 journalists and executives and maintained a short list of journalists whose accounts have been repeatedly attacked.

That finding, first reported in the New York Times, was part of a December report that was expected to be made public soon, a Mandiant spokeswoman said Thursday.

The Wall Street Journal said that it too had been targeted by Chinese hackers.

Paula Keve, spokeswoman for the Journal's parent company, Dow Jones & Co., said: "Evidence shows that infiltration efforts target the monitoring of the Journal's coverage of China, and are not an attempt to gain commercial advantage or to misappropriate customer information."

Bloomberg News was targeted as well — after it published an article June 29 about the wealth of relatives of Xi Jinping, the current general secretary of the Communist Party and the person expected to become president in March. No computer breach took place.

"Our security was not compromised," Ty Trippet, a spokesman for Bloomberg, said Thursday.

"Newspapers and journalists are high-value targets," said James Lewis, a senior fellow at the Center for Strategic and International studies. "They have really good sources, and they don't publish everything."

But they are just one target in many. Cyber-security experts say the United States has become increasingly vulnerable to foreign hackers who could target the nation's power grid, gas pipelines and other crucial infrastructure.

Those same hackers routinely and aggressively break into a wide range of corporate America's computers, including those of oil and financial companies.

Yet corporations have blocked legislation on Capitol Hill that would require higher standards to protect against breaches, saying it would be too costly and burdensome.

The full extent of how deeply hackers have penetrated into corporate America is not known. Companies are usually reluctant to talk publicly about attacks or to share information with the government.

"We know that every Fortune 500 company has had a problem, and probably every Fortune 1,000 company has had a problem too," Lewis said.

High-profile attacks like the ones that targeted Internet search giant Google Inc. three years ago may make it seem as if computer networks in the U.S. are under rising attack, but Lewis said networks are just under "sustained" attack.

"It's as bad as it can be. What's happening is that people are noticing it. That's a big change," Lewis said. "Four years ago nobody could spell cyber-security. Now everyone's waking up to the fact that the networks we depend on are totally insecure."

Cybersecurity experts said they are optimistic that the U.S. government is developing a cyber arsenal capable of repelling attacks.

Alan Paller, director of research at the SANS Institute, said the Defense Department has a growing ability to defend against sophisticated attacks — to protect crucial infrastructure and the Defense Department itself. It also has developed a "cyber offense," the ability to "project power" and to carry out sophisticated attacks itself, Paller said.

The hackers routed their attacks through computers at U.S. universities, according to the New York Times. Hackers installed malicious software that allowed them to enter the newspaper's computers. The software, known as malware, was "identified by computer security experts as a specific strain associated with computer attacks originating in China," the newspaper said.

Chinese officials denied they were responsible.

"Chinese laws prohibit any action including hacking that damages Internet security," China's Ministry of National Defense told the New York Times. It added: "To accuse the Chinese military of launching cyber attacks without solid proof is unprofessional and baseless."

Eileen M. Murphy, the Times' vice president for corporate communications, said Thursday the newspaper stood by the story.

michael.muskal@latimes.com

jessica.guynn@latimes.com

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California restricts hiring after dual-paycheck revelations

SACRAMENTO — Gov. Jerry Brown's administration has restricted state departments' hiring authority following revelations that hundreds of public employees were receiving pay for second state jobs in addition to their normal salaries.

Workers receiving more than one state paycheck, known in official parlance as "additional appointments," were found in a variety of departments and agencies, including the California Public Employees Retirement System and the Department of Corrections and Rehabilitation, and in several state hospitals.

The Brown administration did not ban the practice, but any such hire must now be approved by its Office of Human Resources.

"It appears that in some cases people were paid additionally for the job they were hired to do in the first place," said Assemblyman Jeff Gorell (R-Camarillo), who introduced a bill Wednesday to ban salaried state employees from holding more than one state job. "It's inappropriate at best and potentially abusive," he said.

Gorell said the proliferation of double paychecks highlights the need for more legislative oversight of the executive branch.

"It's clear that the governor and his administration don't fully understand what's happening in these agencies," he said.

Documents provided by the state controller's office show that 571 nonunion employees hold more than one position in various departments. The records do not show what those employees were paid.

The Sacramento Bee reported that dozens of state corrections officers received additional compensation beyond that of their regular jobs — some of which paid up to $20,000 per month. The paper also reported that the chief psychiatrist at Napa State Hospital, who receives an annual salary of more than $275,000, was receiving an additional $125 per hour for work as a staff psychiatrist.

"It's a scam," said Jamie Court, president of Consumer Watchdog, a nonprofit advocacy agency. "Many people in all kinds of different jobs work for a set salary understanding that sometimes that means working long hours. Unfortunately, that's not always the culture of government."

A spokesman for the state's largest public employee union said the extra pay was for managers and other nonunion employees who are not eligible for overtime. Most unionized workers receive overtime if they put in extra hours.

A spokesman for CalPERS said it had allowed salaried workers to receive extra pay since June 2011 to help the agency launch and test a new technology project. Brad Pacheco said that using existing workers saved CalPERS an estimated $1.6 million that would have been spent to hire outside consultants and train new staff.

The human resources agency issued a statement saying that officials were "conducting a full review to determine whether there is any justification for continuing this practice."

anthony.york@latimes.com

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RIM rebrands as BlackBerry; launches nifty new devices

NEW YORK (Reuters) – Research In Motion Ltd on Wednesday unveiled the long-delayed line of smartphones it hopes will put it on the comeback trail, but it disappointed investors by saying U.S. sales of its all-new BlackBerry 10 devices will not start until March, sending its share price tumbling 12 percent.

Chief Executive Thorsten Heins also announced that RIM was abandoning the name it has used since its inception in 1985 to take the name of its signature product, signaling his hopes for a fresh start for the company that pioneered on-your-hip email.

“From this point forward, RIM becomes BlackBerry,” Heins said at the New York launch. “It is one brand; it is one promise.”

RIM, which is already starting to call itself BlackBerry, had initially planned to launch the new BlackBerry 10 devices a year ago. But it pushed the release date back twice as it struggled to perfect a new operating system.

Ahead of Wednesday’s announcements, analysts had said that any launch after February would be a black mark for the Canada-based company.

“The biggest disappointment was the delay in the U.S., that it will take so long before the devices get going there,” said Eric Jackson, founder and managing Partner at Ironfire Capital LLC in New York.

Heins said the delays reflected the need for U.S. carrier testing, although carrier AT&T Inc offered few clues on what that meant. Instead, the carrier merely stated it was enthusiastic about the devices and would announce availability, pricing and other information at a later date.

“Carriers in all other parts of the world get their devices through the testing process significantly faster than the U.S. carriers do,” said John Jackson, an analyst at IDC, adding that the U.S. process can often take “weeks” longer.

Nevertheless investors were extremely disappointed with the delay and RIM shares on the Nasdaq ended the day 12 percent lower at $ 13.78. Its Toronto-listed shares fell by almost the same margin to close at C$ 13.86.

RIM launched its first BlackBerry back in 1999 as a way for busy executives to stay in touch with their clients and their offices, and the company quickly cornered the market for secure corporate and government emails.

But its star faded as competition rose and the BlackBerry is now a far-behind also-ran in the race for market share, with a 3.4 percent global showing in the fourth quarter – down from 20 percent three years before. Its North American market share is even smaller – a mere 2 percent in the fourth quarter.

RIM shares have tumbled along with the company’s market share and the stock is down 90 percent since its 2008 peak. Despite the pullback on Wednesday, RIM‘s share price has more than doubled over the last four months, reflecting the growing buzz about its new devices.

TOUCH COMPETITION

The new BlackBerry 10 phones will compete with Apple’s iPhone and devices using Google’s Android technology, both of which have soared above the BlackBerry in a competitive market.

The BlackBerry 10 devices boast fast browsers, new features, smart cameras and – unlike previous BlackBerry models – enter the market primed with a large application library, including services such as Skype and the popular game Angry Birds.

The BlackBerry Z10 touchscreen device, in black or white, will be the first to hit the market, with a country-by-country rollout that starts in Britain on Thursday.

A Q10 model, equipped with a small “qwerty” keyboard that RIM made into its trademark, will launch globally in April.

“I’m still confident that a lot of the subscriber base are going to want the upgrade to BlackBerry 10. It’s a very strong improvement over what they currently have. This is not going to cause mass defections from iOS and Android, but it doesn’t have to be a success for RIM. You’ve got to start somewhere,” said Jackson of Ironfire, which owns shares in RIM.

The Z10 device won a lukewarm review from The Wall Street Journal’s tech blogger Walt Mossberg, who complained of a shortage of apps.

On the other hand, David Pogue, who writes for The New York Times, apologized for describing BlackBerry as doomed in the past. The Z10 touchscreen device was “lovely, fast and efficient, bristling with fresh, useful ideas,” he said.

While technology analysts conceded that RIM has done quite a remarkable job on many of the features of BlackBerry 10 and on the array of its app selection for a new platform, many argue it will be a very tough slog for RIM to regain its crown.

“I don’t think that RIM will return to its glory days,” said Charles Golvin, analyst at Forrester Research. “Success for them looks like staunching the bleeding and clawing back a percentage or point or two of market share.”

Announcements about pricing so far have been in line with expectations. U.S. carrier Verizon Wireless said the phone would cost $ 199 for a two-year contract, while Canada’s Rogers Communications is quoting C$ 149 ($ 150) for certain three-year plans.

GLITZY LAUNCH

RIM picked a range of venues for its global launch parties, including Dubai’s $ 650-a-night Armani Hotel, which occupies six floors of the Burj Khalifa, the world’s tallest tower.

The New York event took place in a sprawling basketball facility on the Lower East Side of Manhattan, just north of the Manhattan Bridge. The BlackBerry has been “Re-designed. Re-engineered. Re-invented,” RIM said.

RIM, which is splurging on a Super Bowl ad to promote its new phones, also introduced Grammy-winning singer-songwriter Alicia Keys as its global creative director.

“I was in a long-term relationship with BlackBerry and then I started to notice some new, kind of hotter, attractive, sexier phones at the gym, and I kind of broke up with you for something that had a little more bling,” Keys said at the New York launch.

“But I always missed the way you organized my life and the way you were there for me at my job, and so I started to have two phones – I was kind of playing the field. But then … you added a lot more features … and now, we’re exclusively dating again, and I’m very happy,” she said.

($ 1=$ 1.0029 Canadian)

(Writing by Janet Guttsman; editing by Frank McGurty, Lisa Von Ahn, Peter Galloway, G Crosse)

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