Download Valley

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Download Valley is a cluster of software companies in Israel, producing and delivering adware to be installed alongside downloads of other software. [1] The primary purpose is to monetize shareware and downloads. These software items are commonly browser toolbars, adware, browser hijackers, spyware, and malware. Another group of products are download managers, possibly designed to induce or trick the user to install adware, when downloading a piece of desired software or mobile app from a certain source.

Contents

Although the term references Silicon Valley, it does not refer to a specific valley or any geographical area. Many of the companies are located in Tel Aviv and the surrounding region. It has been used by Israeli media [2] as well as in other reports related to IT business. [3]

Download managers from Download Valley companies have been used by major download portals and software hosts, including Download.com [4] by CNET, Softonic.com and SourceForge.

Economy

The smaller adware companies SweetPacks and SmileBox were purchased by the larger company Perion Networks for $41 million and $32 million. iBario claimed to be worth $100 million [5] in early 2014. Conduit was valued at $1.4 billion by JP Morgan in 2012. [6]

Revenues are frequently near $100 million to several $100 million for large companies (Perion: $87 million in 2013, Conduit: claimed $500 million in 2012 [6] ), with much lower operating and net income (Perion: $3.88 million operating, $310.000 net income in 2013).

All these numbers are highly volatile since technical and legal preconditions quickly change profit opportunities. In 2013 and 2014, changes in web browsers to prevent unwanted toolbar installs and a new policy by Microsoft towards advertising [7] lead to the expectation that the main profit methods of the companies would soon work no longer. The Perion stock lost roughly two-thirds of its value during 2014, from over $13.25 in January to $4.53 on 29 December. [8]

Adware

Many of the products may be designed in a way to install while not being solicited by the user who downloads the desired product, and to create revenue from software usually distributed as free. For this, they may use invasive and harmful techniques.

To achieve installs, such installers may: [9] [10]

Installed adware frequently attempts to hide its identity, prevent disabling, removing, or restoring previous settings, spy on the user's system and browsing habits, download and install further unwanted software, or open backdoors for possibly malicious attacks.

Many security software vendors list these products in the category of potentially unwanted programs [14] [15] (PUP, also PUS or PUA [16] ) or grayware [17] and offer detection and removal. This category is distinct from genuine malware and is used for software from companies that can, as opposed to criminal underground programmers, threaten with or practice litigation.

In 2013, the Download Valley company iBario was accused by security software vendor Trend Micro, of distributing the Sefnit/Mevade malware through an installer and being related to a Ukrainian company considered immediately responsible for the malware. [18] [19]

Security software circumvention

An unnamed Download Valley executive admitted to the Wall Street Journal [7] that some companies employ teams of up to 15 developers to break through security suites that try to block their software.

Companies linked to the term

See also

Related Research Articles

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Browser hijacking is a form of unwanted software that modifies a web browser's settings without a user's permission, to inject unwanted advertising into the user's browser. A browser hijacker may replace the existing home page, error page, or search engine with its own. These are generally used to force hits to a particular website, increasing its advertising revenue.

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Zango,, formerly ePIPO, 180solutions and Hotbar, was a software company that provided users access to its partners' videos, games, tools and utilities in exchange for viewing targeted advertising placed on their computers. Zango software is listed as adware by Symantec, and is also labeled as a potentially unwanted program by McAfee. Zango was co-founded by two brothers: Keith Smith, who served as the CEO; and Ken Smith, who served as the CTO.

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Babylon is a computer dictionary and translation program developed by the Israeli company Babylon Software Ltd. based in the city of Or Yehuda. The company was established in 1997 by the Israeli entrepreneur Amnon Ovadia. Its IPO took place ten years later. It is considered a part of Israel's Download Valley, a cluster of software companies monetizing "free" software downloads through adware. Babylon includes in-house proprietary dictionaries, as well as community-created dictionaries and glossaries. It is a tool used for translation and conversion of currencies, measurements and time, and for obtaining other contextual information. The program also uses a text-to-speech agent, so users hear the proper pronunciation of words and text. Babylon has developed 36 English-based proprietary dictionaries in 21 languages. In 2008–2009, Babylon reported earnings of 50 million NIS through its collaboration with Google.

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Genieo Innovation is an Israeli company, specializing in unwanted software which includes advertising and user tracking software, commonly referred to as a potentially unwanted program, adware, privacy-invasive software, grayware, or malware. They are best known for Genieo, an application of this type. They also own and operate InstallMac which distributes additional 'optional' search modifying software with other applications. In 2014, Genieo Innovation was acquired for $34 million by Somoto, another company which "bundles legitimate applications with offers for additional third party applications that may be unwanted by the user". This sector of the Israeli software industry is frequently referred to as Download Valley.

The Conduit toolbar was an online platform that allowed web publishers to create custom toolbars, web apps, and mobile apps at no cost. It was developed by Conduit Inc. but demerged to Perion Network. Conduit had approximately 260,000 registered publishers who have collectively created content downloaded by more than 250 million end users. Web apps and pieces of content developed through Conduit's platform can be distributed and exchanged online via the Conduit App Marketplace. As of 2010, 60 million users consumed apps from the marketplace on a daily basis.

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Superfish was an advertising company that developed various advertising-supported software products based on a visual search engine. The company was based in Palo Alto, California. It was founded in Israel in 2006 and has been regarded as part of the country's "Download Valley" cluster of adware companies. Superfish's software is malware and adware. The software was bundled with various applications as early as 2010, and Lenovo began to bundle the software with some of its computers in September 2014. On February 20, 2015, the United States Department of Homeland Security advised uninstalling it and its associated root certificate, because they make computers vulnerable to serious cyberattacks, including interception of passwords and sensitive data being transmitted through browsers.

Conduit Ltd. is an international software company. From its founding in 2005 to 2013, its most well-known product was the Conduit toolbar, which was widely-described as malware. In 2013, it spun off its toolbar business; today, its main product is a mobile development platform that allows users to create native and web mobile applications for smartphones.

A potentially unwanted program (PUP) or potentially unwanted application (PUA) is software that a user may perceive as unwanted or unnecessary. It is used as a subjective tagging criterion by security and parental control products. Such software may use an implementation that can compromise privacy or weaken the computer's security. Companies often bundle a wanted program download with a wrapper application and may offer to install an unwanted application, and in some cases without providing a clear opt-out method. Antivirus companies define the software bundled as potentially unwanted programs which can include software that displays intrusive advertising (adware), or tracks the user's Internet usage to sell information to advertisers (spyware), injects its own advertising into web pages that a user looks at, or uses premium SMS services to rack up charges for the user. A growing number of open-source software projects have expressed dismay at third-party websites wrapping their downloads with unwanted bundles, without the project's knowledge or consent. Nearly every third-party free download site bundles their downloads with potentially unwanted software. The practice is widely considered unethical because it violates the security interests of users without their informed consent. Some unwanted software bundles install a root certificate on a user's device, which allows hackers to intercept private data such as banking details, without a browser giving security warnings. The United States Department of Homeland Security has advised removing an insecure root certificate, because they make computers vulnerable to serious cyberattacks. Software developers and security experts recommend that people always download the latest version from the official project website, or a trusted package manager or app store.

WiperSoft is an anti-spyware program developed by Wiper Software. It is designed to help users protect their computers from such threats as adware, browser hijackers, worms, potentially unwanted programs (PUPs), trojans, and viruses. Currently available only for Microsoft Windows.

References

  1. Hate Pop-Up Ads? Microsoft Tries Drawing Line in the Sand - Wall Street Journal, 4 June 2014
  2. Game over in Download Valley? Haaretz, Inbal Orpaz, Orr Hirschauge, 22 August 2013
  3. Conduit Diversifies Away From 'Download Valley' Wall Street Journal, Orr Hirschauge, updated 15 May 2014
  4. 3. IronSource, Downloads Ltd Calcalist, Assaf Gilad. 15 April 2013
  5. 1 2 Meet iBario, Israel's $100 million Internet empire Times of Israel, David Shamah, 19 May 2014
  6. 1 2 Conduit, Israel’s First Billion Dollar Internet Company Archived 9 December 2014 at the Wayback Machine Pandodaily, Mick Weinstein, 9 April 2012
  7. 1 2 Hate Pop-Up Ads? Microsoft tries drawing line in the sand Wall Street Journal, Orr Hirschauge, 4 June 2014
  8. "Stock Performance".
  9. Download Wrappers and Unwanted Software are pure evil Scott Hanselman, 12 February 2014
  10. Download.com Caught Adding Malware to Nmap & Other Software insecure.org
  11. CNET Joins the Dark Side, its Download.com Attempts to Fill Your Computer With Crapware Groovypost, Austin Ruthruff, 21 July 2013
  12. 1 2 Genieo installer tricks keychain Malwarebytes unpacked, Thomas Reed, 31 August 2015
  13. DYLD_PRINT_TO_FILE exploit found in the wild Malwarebytes unpacked, Thomas Reed, 3 August 2015
  14. Potentially Unwanted Program borrows tricks from malware authors, Malwarebytes unpacked (blog), Jérôme Segura, 31 December 2014
  15. Potentially Unwanted Programs, Spyware and Adware Archived 2 January 2015 at the Wayback Machine McAfee Whitepater, October 2005
  16. What is a potentially unwanted application? ESET Home Support, September 2014
  17. Grayware: Casting a Shadow over the Mobile Software Marketplace Symantec, Dick O'Brien, 26 February 2014
  18. When Adware Goes Bad: The InstallBrain and Sefnit connection Trend Micro, 7 July 2014
  19. Research Ties Sefnit/Mevade Malware To Ukraine/iBario in Israel Trend Micro, updated 8 August 2014
  20. "Bitdefender Premium Technical Services". Bitdefender.
  21. Butcher, Mike (16 September 2013). "Conduit, Worth $1.4BN, Merges With Email Giant Perion (Worth $153M) To Take Its Place On NASDAQ".
  22. Genieo develops artificial intelligence for analyzing Internet users' behavior Globes, Aviv Levy, 27 July 2014
  23. Shavit, Ilan. "Israeli IronSource raises $85-100 million from Ten investors".
  24. "Funmoods Toolbar". www.pcrisk.com.
  25. Installcore Installation technology and list of features
  26. Google and Firefox pull the Stylish browser extension that tracked your every move - alphr, 9 July 2018
  27. Chrome and Firefox pull history-stealing browser extension - Sophos, 5 July 2018
  28. Hirschauge, Orr (25 December 2013). "Another blow to Israel's 'Download Valley' as Google bans toolbars". Haaretz.com. Retrieved 11 September 2015. Among the companies in Download Valley most likely to be hurt by the change are the startups Revizer, Superfish, CrossReader and the Client Connect division of the company Conduit ...