"Android handsets secretly logging keystrokes, SMS messages?"

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In the nearly 20-minute video clip, Eckhart shows how software developed by mobile-device tracker Carrier IQ logs each keystroke and then sends them off to locations unknown. In addition, when Eckhart tried placing a call, Carrier IQ's software recorded each number before the call was even made.
Eckhart started making waves across the privacy community earlier this month after he dug into software developed by Carrier IQ that, he said, runs behind the scenes in Android-based devices to track what users are doing. Eckhart called the software a "rootkit," due to its ability to access device data while concealing its presence.
As one might expect, Carrier IQ took offense to Eckhart's claim, saying that its software is a "diagnostic tool" for companies to "improve the quality of the network, understand device issues, and ultimately improve the user experience." The company also sent Eckhart a cease-and-desist letter and demanded he issue an apology for calling its software a rootkit.
Just days later, Carrier IQ did an about face after the Electronic Frontier Foundation responded to its cease-and-desist letter, saying that Eckhart's comments and research are protected under the Copyright Act's fair use provision.
"Our action was misguided and we are deeply sorry for any concern or trouble that our letter may have caused Mr. Eckhart," the company said in response to the EFF's letter. "We sincerely appreciate and respect EFF's work on his behalf, and share their commitment to protecting free speech in a rapidly changing technological world." . . .