The Department of Internal Affairs has admitted that the internet filter is now operational and is already being used by ISPs Maxnet and Watchdog. It appears that Maxnet have not told their customers that they are diverting some of their internet traffic to the government system to be filtered.

Thomas Beagle, spokesperson for Tech Liberty, “We’re very disappointed that the filter is now running, it’s a sad day for the New Zealand internet.”

The DIA refuses to say which other ISPs will be joining the filter, claiming the right to negotiate in secret. Tech Liberty understands that Telstra Clear, Telecom and Vodafone have said they will implement the filter, with Orcon, Slingshot and Natcom saying that they won’t.

David Zanetti, technical spokesperson for Tech Liberty, “We fear that the filter will reduce the stability of the internet in New Zealand. It is a single point of failure, introduces a new and very tempting target for hackers, and by diverting traffic will cause issues with modern internet applications.”

The takedown of 100 servers used to control Zeus-related botnets may be a short-lived victory, security researchers said after discovering that about a third of the orphaned channels were able to regain connectivity in less than 48 hours.

The resurrection of at least 30 command and control channels came after their internet service provider found a new upstream provider to provide connectivity to the outside world, autonomous system records

“The problem is that as soon the C&Cs are reachable from the internet again, the cybercriminals can regain the control of their botnet and can safely move the stolen data away from those AS’s to a safer place or to a backup server,” a researcher connected to the Zeus Tracker service told The Register. “Very bad.”

One example of a severed server that was able to reconnect was this one. In all, about 100 of the 249 C&C servers Zeus Tracker monitored lost connectivity. Since then, 30 have been able to reconnect. The researcher, who asked not to be identified by name, said he expected more of the malicious servers will reconnect over time.

China warned Google, the world’s largest search engine, against flouting the country’s laws on Friday, as expectations grow for a resolution to a public battle over censorship and cyber-security.

The chief executive of Google, Eric Schmidt, said this week he hoped to announce soon a result to talks with Chinese authorities on offering an uncensored search engine in China.

With videos of catwalk shows, pictures of glamorous models and a catalog of chic products, luxury brands are creating “digital mirrors” online as they turn to the internet to tap into growing e-commerce demand.

The traditional print advert in a glossy magazine is no longer the only way to communicate with the public and fashion houses are now reaching out to their consumers through websites, Facebook pages, Twitter accounts and phone applications.

The sudden takedown of an Internet provider thought to be helping spread one of the most promiscuous pieces of malicious software out there appears to have cut off criminals from potentially millions of personal computers under their control.

But the victory was short-lived. Less than a day after a service known as “AS Troyak” was unplugged from the Internet, security researchers said Wednesday it apparently had found a way to get back online, and criminals were reconnecting with their unmoored machines.

Google is adding a bike lane with its latest online mapping option.

The new bicycling directions available on Google Maps Wednesday supplement the guidance already provided to motorists and pedestrians. The biking directions initially will be available only for the United States.

Google spent the past six months tweaking its mapping service so it could recommend routes that would steer bicyclists away from big hills and heavily congested streets.

The United States is studying whether it can legally challenge Chinese Internet restrictions that hurt Google and other U.S. companies operating in China, but direct talks with Beijing might yield faster results, the top U.S. trade official said on Tuesday.

“We are still dialoguing not just with Google, but with other Internet providers, to make sure we fully understand what is happening in China,” U.S. Trade Representative Ron Kirk said in remarks at the National Press Club.

With shrinking audiences, deep layoffs and two management shake-ups, MySpace, the one-time leader in Internet social networking, has had a rocky year.

Mike Jones, who took over as co-president last month with Jason Hirschhorn, said that even within MySpace some employees have lost the will to keep fighting.

The Internet was built on freedom of expression. Society wants someone held accountable when that freedom is abused. And major Internet companies like Google and Facebook are finding themselves caught between those ideals.

Sex.com, often touted as one of the most valuable Internet domain names, is due to head to the auction block next week.

DOM Partners LLC, a New Jersey lender that backed a 2006 purchase of the domain name for a reported $14 million, is foreclosing on the Internet property, and is due to auction it on March 18 at New York law firm Windels Marx Lane & Mittendorf LLP, according to legal notices.