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Clips May 21, 2002



Clips May 21, 2002

ARTICLES

Late fine proposed for AT&T Wireless
Big bucks stall new bill on privacy
Copyright Trial Set for Russian
Low-Tech Pen Foils CD Copy-Protection Device
Security Holes in Web Privacy Program
Beware the Internet Death Penalty  Study
Big-City Broadband Growing at High-Speed
Webcast Royalty Plan Rejected
No Match for Digital Age
Suspect Helps Police Find Body of Girl He Met on Internet
Certification deadline draws near
NMCI apps placed on fast track
CIOs' input needed
Supreme Court will rule on online registry of sex offenders
Internet can be lifeline for busy moms
ATTACK OF THE MOVIE CLONES
Late changes to a security R&D bill call for NIST cybersecurity office
Bounty offered to software bug hunters
Senate committee sets up 'emergency technology guard'
Senate panel creates cybersecurity programs, standards
White House works on data management privacy principles
Teachers claim Web sites offer students easy cheating chance
Console makers believe future of gaming is online
Library of Congress puts American history on the Web
Handheld Delivers the 411 on DNA
Tagging Books to Prevent Theft



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Seattle Times
Late fine proposed for AT&T Wireless
By Seattle Times staff and news services

WASHINGTON AT&T Wireless Services faces a $2.2 million penalty for failing to install equipment needed to pinpoint locations of customers' emergency calls.

The Federal Communications Commission yesterday proposed the fine because the Redmond company missed an October deadline to upgrade part of its network so that police can find callers who dial 911. AT&T Wireless also didn't sell the type of handsets needed for the upgrade, the agency said.

The FCC granted several waivers to many carriers, giving them more time to meet deadlines. AT&T Wireless, the nation's third-largest mobile-phone carrier, received a partial waiver granting more time for location-accuracy requirements.

But AT&T Wireless did not meet the Oct. 1 deadline to start selling the upgraded handsets, the FCC said, and it never requested a waiver of that requirement, telling the agency one was not needed.

Twenty-five percent of all new activated handsets were to be able to provide location information by the end of last year. All new activated handsets are to have that capability by the end of 2002.

An AT&T spokeswoman said that the company needed to review the FCC's proposed fine but that it disagreed with the accusations and blamed delays on vendors.

Regulatory documents revealed the vendors included Nokia and Ericsson as well as Lucent Technologies.

"Compliance with the FCC's ... mandate is not only technically complex, but it's also made challenging by circumstances beyond our control," said Rochelle Cohen, the AT&T Wireless spokeswoman.

Another AT&T Wireless representative specifically pointed the finger at handset manufacturers. "We hoped to have handsets that were compatible and some of (the vendors) didn't deliver," said spokesman Mark Siegel.

AT&T Wireless has 30 days to contest the proposed fine, seek a reduction or cancellation, or pay it.

"We strongly think the fine being proposed is way out of proportion," said Siegel.

The FCC said its investigation was continuing into whether the company misrepresented information in its waiver request filed with the agency.

Shares of AT&T Wireless closed down 42 cents, or 5.35 percent, to $7.43 yesterday.

Material from Bloomberg News and Seattle Times business reporter Nancy Gohring is included in this report.
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Big bucks stall new bill on privacy
Second attempt to bolster consumer rights looks doomed
Lynda Gledhill, Chronicle Sacramento Bureau
Tuesday, May 21, 2002
©2002 San Francisco Chronicle


URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2002/05/21/MN24313.DTL


Sacramento -- After spending millions of dollars in campaign donations and lobbying expenses, banks and insurance companies appear for a second time to have killed legislation designed to protect consumers' financial privacy.


The second attempt at increasing consumers' privacy, a compromise measure carried by Assemblyman Joe Nation, D-San Rafael, is stalled in an Assembly committee, where it appears to have little hope of winning enough votes to move forward.

Businesses, banks and insurance companies that oppose strengthening privacy rights in California have donated more than $5 million to state politicians during an 18-month period.

About $2.6 million went to Assembly members and $1.3 million to state senators. Gov. Gray Davis received more than $880,000.

California became the primary battleground between consumer groups and corporate interests after the passage of a 1999 federal financial privacy bill.

That law allowed banks to own insurance companies and vice versa.

As part of the law, the companies were required to send consumers an annual privacy statement saying how their personal information, such as bank accounts and credit histories, are being shared. Many of those forms were filled with complicated legal jargon, prompting consumer groups to try to get states to pass more consumer-friendly policies.


BUSINESS GROUPS FIGHT BILLS
Some California lawmakers moved to strengthen privacy rights, while financial institutions waged an all-out effort to block further restrictions on the sale of financial records.


"This one seems to have engaged the whole business community," said Lenny Goldberg, a longtime activist for consumer groups. "Nationally, California has become ground zero for stopping legislation by the financial industry."

The defeat of a consumer-friendly bill by Sen. Jackie Speier, D- Hillsborough, was the No. 1 priority of business groups during the last legislative session. Those same powerful interest groups now oppose Nation's follow-up compromise measure languishing in the Assembly Judiciary Committee.

Speier's bill, which was opposed by Davis, would have prohibited insurance companies and banks from selling or trading private information without first getting a consumer's permission.

Nation, who did not vote on Speier's bill, attempted this year to craft compromise legislation that would garner the support of business-friendly Democrats and Davis.

Under Nation's bill, addresses and phone numbers could be traded or sold without permission, but unlike in federal law, a customer could forbid the trade in writing. So-called sensitive information such as bank balances and loan amounts would be protected at a higher level than federal law under Nation's bill.

Nation, however, says he doesn't believe the bill will win enough votes to emerge from the Judiciary Committee.


BIG CAMPAIGN CONTRIBUTIONS
While a political furor has erupted over a $25,000 contribution by Oracle Corp. to Davis after the software company signed a $95 million contract with the state, the much larger contributions by banks and insurance companies were made with scant public scrutiny.


Assembly members who voted "no" on Speier's bill last year received an average of $27,944, according to an analysis of contributions by Common Cause. The average contribution to Assembly members who voted "yes" was $17,364.

Assembly members who refused to vote on Speier's bill last year received an average of $26,204, from financial groups. That number excludes Assemblyman Tom Calderon, D-Montebello, who was running for insurance commissioner and received more than $375,000 from insurance companies.

"I think this is an example of where money does have an impact," said Jim Knox, executive director of Common Cause. "By every analysis, this bill was one that was important to consumers and in the interest of the general public. But it got stymied on the Assembly floor."

Money was not the only influence that was used. During debate on Speier's bill, lobbyists crowded Capitol hallways to try to bring lawmakers to their side.

Financial groups, insurance companies and other interested parties paid nearly $2 million to lobbyists during the 18 months the bill was pending. Reports filed with the secretary of state do not break down how much money was spent on a particular bill.

Mark Lowe, a spokesman for the California Credit Union League, said the intense lobbying effort shows that financial contributions are not what lawmakers base their decisions on.

"If it were the money calling the shots, then why was there the need to lobby against it at the end?" he said.


DAVIS' OPPOSITION A FACTOR
Speier said she does not know if campaign contributions played a part in the bill's defeat, but she said Davis' opposition probably influenced some members.


Nation's bill is opposed by business interests and by consumer groups, which see the latest proposal as being a weak law that doesn't go far enough to protect consumers. Nation and Speier said they hope to work together on a measure.

"I think it is incumbent on the Legislature to put a bill on the governor's desk," Speier said.

Davis said last year that he would like to see reasonable privacy legislation, and his spokesman said the administration is disappointed that a compromise could not be reached.

Both politicians and lobbyists insist that campaign contributions do not influence policy.

"We make contributions to legislators consistently," Lowe said. "We have for a number of years, and we will continue to do so into the foreseeable future. It doesn't have to do with any particular legislation."

But Knox said that is exactly how lobbyists gain influence.

"This type of bill is the reason why interest groups contribute year in and year out," he said. "So when something comes up, they have already made the investment and can call in the chips."

Nation, who received more than $53,000 from interest groups opposed to Speier's bill through last September, said he does not let money influence his decisions.

"If the accusations were true, I would have financial institutions' support for my bill, but the opposite is true," he said. Nation also argued that he spent more time meeting with consumer groups than with business entities.

Shelley Curran, the advocate working on the bill for Consumers Union, said it is true that she had access to Nation, but said "in the end he didn't do what we wanted."

E-mail Lynda Gledhill at lgledhill@xxxxxxxxxxxxxxxx
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Associated Press
Copyright Trial Set for Russian
Mon May 20,11:29 PM ET

SAN JOSE, Calif. (AP) - The first criminal trial under the Digital Millennium Copyright Act (news - web sites) will begin Aug. 26, a federal judge decided Monday.

ElcomSoft Co. Ltd. of Moscow could be fined $500,000 if convicted of selling a program that let users circumvent copyright protections on electronic-book software made by Adobe Systems Inc.

Such programs are legal in Russia but banned under the 1998 Digital Millennium Copyright Act. Attorneys for the company failed this month to convince a judge that the law is too broad, vague and unconstitutional.

The case originally involved ElcomSoft programmer Dmitry Sklyarov, who was arrested after speaking at a hacker convention in Las Vegas last July. But prosecutors agreed in December to drop charges against him after the company's case is resolved.

The case is U.S. v. ElcomSoft and Dmitry Sklyarov, CR-01-20138RMW.
*********************
Reuters
Low-Tech Pen Foils CD Copy-Protection Device

LONDON -- Technology buffs have cracked music publishing giant Sony Music Entertainment Inc.'s elaborate disc copy-protection technology with a decidedly low-tech method: scribbling around the rim of a disc with a felt-tip marker.

Internet newsgroups have been circulating news of the discovery for a week, and users have pilloried Sony for deploying "high-tech" copy protection that can be defeated by paying a visit to a stationery store.

"I wonder what type of copy protection will come next?" one posting on Alt.music.prince read. "Maybe they'll ban markers." Sony did not return calls seeking comment.

Major music labels, including Sony and Universal Music, have begun selling the "copy-proof" discs as a means of tackling the rampant spread of music piracy, which they claim is eating into sales.

The technology, Key2Audio, aims to prevent consumers from copying, or "burning," music onto recordable CDs or onto their computer hard drives, which enables the music to be shared with other users over file-sharing Internet services such as Kazaa and Morpheus MusicCity.

Sony's proprietary technology, deployed on many recent releases, works by adding a track to the copy-protected disc that contains bogus data.

Because computer hard drives are programmed to read data files first, the computer will continually try to play the bogus track first. It never gets to play the music tracks elsewhere on the disc.

The result is that the copy-protected disc will play on standard CD players but not on computer CD-ROM drives, some portable devices and even some car stereo systems.

Internet postings claim that tape or even a sticky note also can be used to cover the security track.

And there are suggestions that copy-protection schemes used by other music labels can be circumvented in a similar way.
*******************
Associated Press
Security Holes in Web Privacy Program
Tue May 21, 3:32 AM ET
By D. IAN HOPPER, AP Technology Writer


WASHINGTON (AP) - A popular Internet privacy service that lets Web surfers visit sites anonymously has fixed several serious flaws, and now the service's founder is offering a reward to the finder of the bugs.


Bennett Haselton, an Internet filtering activist who runs the Peacefire Web site, found the problems with Anonymizer.com, a five-year-old service that shields users from tracking by Web sites and their Internet providers.


Haselton "came up with a new way of exploiting (Web) standards," Anonymizer president Lance Cottrell explained Monday. "They're pretty subtle."

Many major commercial sites cringe when security researchers find a hole. But Anonymizer actually encourages it through a "bug bounty."

Haselton's reward: three free years of the Anonymizer service, which costs $50 a year. Cottrell said the offer stands for anyone else who can find security holes in the service.

"We are always actively soliciting people to attack it," Cottrell said. "Trying to hide and keeping your head down is always the wrong answer."

Ordinarily, Web sites collect lots of information about visitors, including the Internet address that can lead to a visitor's geographic location, as well as shopping habits and previous Web travels.

Anonymizer keeps the visitor's information secret by standing between the customer's Web browser and the desired Web site.

Customers can use Anonymizer through the company's Web site or with a downloadable program. The service allows Web users to keep personal information away from marketing sites, or to keep their bosses from seeing their Web surfing at work.

For example, a person could use Anonymizer's service to visit the FBI (news - web sites)'s tip site and offer information truly anonymously.

The methods Haselton developed, though, could be used on a Web site to determine where the visitor is really coming from and negate the effectiveness of Anonymizer.

Independent researchers who find security holes frequently get a cold reception from Web sites. Internet companies complain that the researchers are more interested in notoriety the rush to release their find than customer safety.

The battle between the two sides has prompted several security firms, along with Microsoft Corp., to advocate limited disclosure of security holes. This has brought even more controversy among security experts.

Cottrell said his company doesn't know of any Web sites that used Haselton's methods to defeat the privacy program.

"Our customers are very open with us," Cottrell said. "I'm sure we would have heard about it."
*******************
Newsbytes
Beware the Internet Death Penalty Study


Many businesses are losing customers because of inadequate Web sites - and most don't even realize potential customers are gone before it is too late. Once these customers are gone, says a new study, they don't come back.
That is the message from Enterpulse, an e-business services firm based in Atlanta. The company surveyed 301 "heavy" Web users - defined as people who used the Internet both at home and at work at least once a day.


Sixty-six percent of respondents said they rarely or never return to a Web site where they have a bad experience.

"This finding, which we called the 'Internet death penalty,' was a huge surprise," Michael Reene, the chairman and CEO of Enterpulse today told Newsbytes.

Reene said the company felt it had identified the primary needs of sites and wanted to find the priority that people placed on characteristics such as ease of use, being up-to-date and simple navigation.

"We thought there would be a high tolerance for mediocre sites," he said. "The fact that such a high percentage of people would not return is shocking."

"A business owner cannot count those people who are going away and never coming back," he added.

Reene, who served as general manager of IBM's global telecommunications business before taking over the helm of Enterpulse in 1999, said 99 percent of the survey's respondents said a site that "works well" is very important. However, 43 percent said they were disappointed with site performance.

"We were surprised at that figure, also," he said.

The study subjects were not directed to view designated sites, said Reene. Instead, they simply visited the sites they use in their daily lives.

What can companies do? Reene suggested concentrating on three areas.

First, he said, it is important to meet customers' expectations for their Internet experience. "The Web is one way people meet you, so take it very seriously," he said.

Second, companies should understand their Web presence faces customers, and therefore sales and marketing should be in charge of the Web site, not IT or human resources, he said.

"Finally, companies should understand and embrace the minimum of expectations," Reene said. "Besides easy navigation and use, people want and expect a site to load quickly, to be visually appealing, and to have customization and personalization."

Other Web site features Reene suggests includes interactive tools - such as an interest rate planner for a tax site, or a recommender for book sites.

According to Reene, one-to-one marketing and deep personalization are not the exception any more.

"The Web is maturing as a customer channel, and customers are maturing to the Web faster than companies are ready," he said.

"Businesses need to adjust to the challenge, and if they don't, they are turning away a large group of potential customers and they'll never know they are turning them away."

Enterpulse is at http://www.enterpulse.com .

Reported by Newsbytes.com, http://www.newsbytes.com .

(20020520/Press contact: Stephen Brown for Enterpulse, 404-879-9262 /WIRES ONLINE, BUSINESS/WEBGLOBE/PHOTO)
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Newsbytes
Big-City Broadband Growing at High-Speed


The fast pace of big-city life shows up in urbanites' movement toward high-speed Internet access at home, Nielsen//NetRatings said today.
Sixty percent of the 20 largest cities in the U.S. show at-home broadband population growth of more than 50 percent for the year ending April 30, according to the audience-measurement service.


Half of those cities saw the high-speed subscriber count more than double, and broadband growth in one city - Hartford, Conn. - nearly quadrupled, Nielsen reported.

"While some barriers exist to broadband expansion such as increasing costs, there is healthy room for additional growth and adoption of broadband," NetRatings analyst T.S. Kelly said in a news release.

Overall, 25.2 million home users last month surfed the Internet by cable modem, DSL (digital subscriber line), ISDN (integrated services digital network) or LAN (local area network) compared to 15.9 million April 2001, a 58 percent rise.

The high-speed set in the nation's No. 1 population center, New York, jumped 71 percent to nearly 2.8 million, while Los Angeles grew faster - 88 percent to 1.8 million. Boston's growth was 48 percent, tech-rich San Francisco showed an increase of just 21 percent while Philadelphia, the nation's fifth-largest city, saw its broadband population jump by just shy of 70 percent.

Hartford, Conn., recorded growth of 198 percent, Baltimore's high-speed count jumped 174 percent, the Washington, D.C., broadband population rose 153 percent, Orlando, Fla. recorded a 183-percent jump and Sacramento, Calif., gained nearly 118 percent.

Growth in Chicago was just under 13 percent, in Dallas it was 12 Percent. Detroit was the only top 20 city showing single-digit broadband growth with 8 percent.

Reported by Newsbytes.com, http://www.newsbytes.com
*******************
Washington Post
Webcast Royalty Plan Rejected
By Kevin Featherly - Newsbytes
Tuesday, May 21, 2002; 12:20 PM

Librarian of Congress James Billington today rejected a proposal that would force Internet radio stations to compensate musicians and labels for the songs they broadcast, a plan that many Webcasters said would drive them out of business.

At issue was a proposal by the Copyright Arbitration Royalty Panel (CARP), which recommended charging Webcasters just over one-tenth of 1 cent for every song signal streamed from online-only radio stations.

Billington was charged by Congress with establishing the royalties under terms of the Digital Millennium Copyright Act.

A Copyright Office spokeswoman said there is no indication of which way Billington plans to ratchet the royalties, though he must issue a decision by June 20. The Copyright Office is a unit of the Library of Congress.

Webcasters and digital media proponents welcomed the rejection.

"I'm confident that the solution to this is going to be a mutually beneficial agreement worked out between the record companies and stations like mine," said William Goldsmith, owner of the online-only station Radioparadise.com. "(The recording industry is) already looking like a bunch of greedy idiots. And they don't like that."

"Today's decision by the librarian offers hope that the final royalty will be more in line with marketplace economics than was the arbitrators' proposal," said Jonathan Potter, executive director of the Digital Media Association.

Webcasters have been pushing for a percentage-of-revenue model that they say they could afford. But the music industry, represented by the Recording Industry Association of America (RIAA), argues that Webcasters are blowing smoke.

The RIAA has sought even higher royalty rates than those recommended by the arbitration panel.

The industry group this morning held out for a favorable decision, saying that Billington's options remain open.

"The librarian has rejected the arbitration panel's determination, but we do not know why or what decision the librarian will ultimately make based on the evidence presented," RIAA President Cary Sherman said in a statement. "Since both sides appealed the panel's determination, anything is possible."

Hard Lobbying

Webcasters descended on Washington D.C. during the past two weeks to lobby for favorable Webcast royalty terms, arguing that the pay-per-stream royalty model would bust their small banks.

Rather than paying royalties on each listener for each recording played an artist-and-label compensation scheme that would be unique in broadcasting history Webcasters seek an alternate plan that would require them to pay about 3 percent of their gross annual revenue to cover recording royalties.

Currently, terrestrial broadcasters do not pay to compensate artists. Traditional radio stations pay a percentage of their revenues usually about 3 percent to compensate publishers and composers.

Historically, radio stations have avoided paying recording royalties by selling lawmakers on the idea that airplay equals free promotion and thus sales, more than compensating labels and artists.

However, the recording industry argued that Webcasting songs on the Internet is not a form of promotion, rather a drain on music industry sales.

The pot began to boil on the issue in February when the U.S. Copyright Office-appointed Copyright Arbitration Royalty Panel (CARP) recommended setting a royalty rate of $.0014 for each song signal streamed to each online-only radio station listener. Many smaller Webcasters complained the rate was far too high, and would result in bankruptcy for their revenue-hungry businesses.

The RIAA initially countered Webcasters' 3-percent-of-revenue idea with a proposal that they pay about 15 percent of gross revenues. The sides failed to reach a compromise. Under terms of the DMCA, the issue went into arbitration.

The CARP panel rejected the percentage-of-revenue plan, substituting a controversial pay-per-listen plan that has drawn fire from all sides.

Philip Corwin, a Washington, D.C., digital music lobbyist whose clients include the owners of the Kazaa and Scour Exchange peer-to-peer networks, said today that he anticipated the Copyright Office would back away from the CARP ruling.

"There will be some movement in the direction of the Webcasters," Corwin said. "In particular, they might adopt an alternative with a percentage-of-revenue model with some minimum amount for small Webcasters."

Radioparadise's Goldsmith expressed similar sentiments.

"I'm not too surprised," Goldsmith said. "There's been so much thrown around in various forums in front of Congress and the press and whatnot to show that this is clearly not going to work for anyone. There's not even one organization out there that can survive under (the CARP) model."

Senators React

The Senate Judiciary Committee on May 15 heard an overview of the Webcasting industry and mulled possible changes to the Digital Millennium Copyright Act that established the arbitration process resulting in the CARP proposal.

Noting that everyone involved has appealed the plan, Judiciary Committee Chairman Patrick Leahy (D-Vt.) suggested that the parties should consider starting over their negotiations.

"Why can't everyone Congress and artists and labels and Webcasters alike take the CARP as a genuine learning experience, and sit down to determine what is the next best step?" Leahy asked. "If the parties can avoid more expense and time and reach a negotiated outcome more satisfactory to all participants, that would surely be preferable to rampant dissatisfaction."

Lobbyist and attorney Corwin said he would be surprised if the matter was sent back to arbitration.

"There's not going to be any new information developed on the record, what's the point in making everyone spend all that money on lawyers and all that time and everything again?" he said.
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Washington Post
Internet's Ruling Body Plans Vote On Address Resale Plan



By David McGuire Washtech.com Staff Writer Monday, May 20, 2002; 4:55 PM


Internet addressing authorities will vote next month on a proposal to organize the feeding frenzy surrounding expiring "dot-com" names.


The proposal, offered earlier this year by Internet addressing giant VeriSign Inc., would create an Internet address "Wait Listing Service" (WLS) that electronic speculators would use to re-register attractive dot-com addresses as they expire.

The Internet Corporation for Assigned Names and Numbers (ICANN), the group that manages the Internet's Domain Name System, said it would likely vote on the proposal at its June meeting in Bucharest, Romania.

Under the proposal, customers would go through their Internet registrars (the retail sellers of dot-com names) to buy WLS subscriptions for given names. VeriSign, which operates the dot-com registry and acts as the global wholesaler of dot-com names, would charge a wholesale rate for each subscription sold by registrars.

"It's really about bringing order to the chaos and giving individuals and small businesses a chance to get the domain names they want," VeriSign spokeswoman Cheryl Regan said today. "The current system really favors the speculative market."

With vast numbers of dot-com names expiring every month as domain name holders decline to renew contracts, many address sellers - including VeriSign - have complained that electronic speculators are flooding their servers in an attempt to snap up attractive addresses the moment they go back on the market.

The wait-listing proposal is not a "panacea" for registrars to protect their systems from prowling speculators, but it will impart some order to the distribution of lapsing domain names, Regan said.

But not all Internet registrars have applauded the VeriSign proposal.

While VeriSign's proposed pricing for the wait-listing service makes it an almost certain boon for VeriSign, it could leave retail address sellers struggling to turn a profit, said Peter Girard, general manager of Afternic, the after-market arm of Register.com.

"The price is still our major concern," Girard said.

Although VeriSign modified the wait-listing service price once, the proposed wholesale price of a WLS subscription remains high for an untested product, Girard said.

Under the first VeriSign proposal, registrars would have paid $40 for each WLS entry that their customers submitted. The first customer to submit a WLS entry for a given name would get first crack at reregistering that name when it expired.

The most recent iteration of the VeriSign proposal drops the wholesale cost from $40 to $35. The proposal also includes registrar rebates that could further reduce the per-subscription price to $24.

If registrars can sell WLS subscriptions at $100 a pop, that wholesale price may be acceptable, but no research has been done to determine how much consumers will be willing to pay for lapsing names, Girard said.

Still, Girard did not say that Register.com or Afternic planned to openly oppose the wait-listing service at the Bucharest meeting next month.

ICANN will not vote on whether to permanently establish the WLS, rather it will vote on whether to approve the program as a 12-month pilot.
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Los Angeles Times
No Match for Digital Age
Not even 'The Eminem Show' is exempt from piracy
By JON HEALEY and CHUCK PHILIPS
TIMES STAFF WRITERS


Despite extraordinary efforts to keep it under wraps, the eagerly awaited new CD from platinum-selling rapper Eminem met the same fate as every other recent release from a major artist: It went out for free on the Internet long before fans could buy it in stores.

"The Eminem Show" may still prove to be the year's biggest-selling record, with well more than 1 million copies expected to be sold in its first week alone. Yet its vulnerability to pirates demonstrates vividly how ill-prepared the music industry is for a new digital era.

Executives at Vivendi Universal, the global media conglomerate that distributes Eminem's records, held an emergency meeting Monday to discuss what further steps to take to safeguard sales. The company already had taken the unusual step of moving up the release date of "The Eminem Show" by more than a week, to today. One problem for Vivendi's Universal Music Group, and for every other record company, is that their established techniques for developing and promoting artists are threatened by the phenomenal growth of networks that let consumers download music for free.

Record companies typically incur millions of dollars in costs setting up superstar releases like "The Eminem Show" at radio and retail outlets. Labels execute lengthy global marketing campaigns incorporating several music videos and radio singles staggered over a two-year period with the aim of stimulating continued sales.

Such industry-standard campaigns, built upon gradual exposure to songs, are likely to become obsolete in a world where consumers can sample every track before a recording is even put up for sale.

"There are more than 3 billion downloads a month around the world," said Interscope Group head Jimmy Iovine, whose Vivendi Universal company released the new Eminem CD. "The problem the industry is facing right now is a level of piracy never seen before, whether its selling burned CDs in school or on the corner. This is affecting not only the record labels and artists, but anyone who has an interest in earning a living through music."

Iovine said piracy of Eminem's new CD shines a light on a problem that is damaging the careers of other lesser-known acts every day.

Because "The Eminem Show" is so widely anticipated, many fans are likely to purchase the CD even after they download it. Where piracy really hurts, Iovine said, is that it is eroding the potential fan base of new acts with one or two hits under their belt.

Iovine and other executives say fans frequently download only the best songs of a developing artist and skip buying the record. This undercuts not only sales for the company, but the artist's ability to record a second or third album.

But piracy can damage blockbusters too. Even if "The Eminem Show" sells more than a million CDs during its debut week, it is impossible to determine how many sales will be lost immediately as a result of digital pilfering--or even over the next year.

Because the profits from top-selling albums subsidize the 85% or more of the acts that don't break even, any drop in sales for the likes of Eminem undermines the support for less heralded artists.

"The Eminem Show" is expected to break the 1 million mark faster than any record since last summer. Over the last year and a half, as file-sharing services reached the mass market, only one record has sold that many copies in its first week: 'N Sync's "Celebrity," which was released in July.

With Eminem's last record selling 8.7 million copies, his label, Interscope took great pains to keep the songs from hitting the Net before the CD was released. No copies of the CD were sent to reviewers, who had to listen to the songs in Interscope's offices instead of on their own stereos.

Interscope flooded the file-sharing networks with bogus copies of the songs that played the same short segments over and over. Only after downloading would users realize they'd been had.

Nevertheless, the new CD hit the Internet in its entirety almost a month ago, and has been trickling down to the masses of file-sharing consumers ever since. The bogus files are still plentiful on the Net, but they're gradually giving way to the real thing. Meanwhile, legitimate online services--including Universal's own Pressplay--can't make the new Eminem songs available to paying customers.

The head of the Recording Industry Assn. of America's anti-piracy efforts, Frank Creighton, argues that the piracy problem can be minimized if the labels work closely with the RIAA and its international counterparts, as Eminem's label has done. The RIAA has seized more than 100,000 pirated discs over the last two weeks from two dozen outlets, Creighton said, but less than 2,000 of them were "The Eminem Show"--a much smaller percentage than is typical for a major release.

Still, the relentlessness of piracy has the major labels contemplating more aggressive tactics, including releasing albums on discs with electronic locks that deter digital copying. They've also joined the Hollywood studios in lobbying for a federal law that would require computer and consumer-electronics manufacturers to alter their designs to combat piracy.

In addition, executives at several labels are kicking around the idea of suing some universities, companies and individuals that operate computer servers that allow storage of stolen songs that can be accessed by file-sharing services.

Other interest groups, including representatives of a leading file-sharing network and a tech-industry trade association, want to tax an array of hardware, software and services to compensate copyright holders for the rampant downloading. That approach "will be a very seriously debated counterpoint for the whole Hollywood agenda," predicted Philip S. Corwin, a lobbyist for one of the file-sharing networks, Kazaa.

Global music sales declined to $32 billion last year, a 16% drop from the year before. While some in the music industry blame the overall economy and a shortage of high-quality releases, many label executives put the blame squarely on Internet piracy.

The RIAA has been battling piracy for more than 30 years, with most of that time spent on counterfeit products. Last year it seized nearly 3 million counterfeit or pirated discs, a 66% increase over the previous year.

On the Net, unauthorized digital copies of songs and CDs spread much faster and far more broadly than counterfeit discs. Although Internet piracy has been around longer than the World Wide Web, unauthorized copying has exploded in the last two years as more consumers connected to the Net at high speed and easy-to-use file-sharing services hit the market.

"What happened with the Eminem release can have a real impact on a company's ability to do business," said Sony Music Entertainment Chairman Thomas D. Mottola. "In instances where music is released on the Internet in unfinished form--which happened recently with [Sony rock act] System of the Down--artistic expression and sales can both be compromised.

"So it's not just a matter of economics, it's also a matter of protecting the creative process itself," Mottola added. "There is no doubt that technology is going to have to be part of the industry's response to piracy, but it's important to keep in mind that attitudes toward piracy are just as big an issue."

Champions of online music sharing often downplay the ethical and legal ramifications of consumers building huge collections of music without paying. Accusing music corporations of cheating artists and gouging consumers to sustain profits, they say downloading songs is a legal exercise of consumer rights that actually promotes sales.

Consumer advocates argue that it's perfectly legal for consumers to make digital copies of the CDs they buy and to record songs from their collection on custom CDs for personal use. And stopping consumers from making easy digital copies won't make much of a dent in piracy because there are other ways to "rip" songs from a disc, said Eric Garland, chief executive of BigChampagne, a company that monitors file-sharing networks.

"For most of us here on the ground, downloading the music is simply an expression of demand, of raw consumer demand, of a desire to hear it and have it," Garland said. "We create a demand like that and we expect people to behave like good little consumers and wait until the big day" of the official release.
If you want other stories on this topic, search the Archives at latimes.com/archives. For information about reprinting this article, go to www.lats.com/rights.
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New York Times
Suspect Helps Police Find Body of Girl He Met on Internet


DANBURY, Conn., May 20 (AP) Investigators found the body of a 13-year-old Danbury girl in Greenwich early today after a man she met over the Internet told them where to look, the police said.

The United States attorney, John A. Danaher III, said the man, identified as Saul Dos Reis, 25, was arrested on a federal charge of using an interstate device the Internet to entice a child into sexual activity.

Other charges were not immediately filed. But Mr. Danaher said that Mr. Dos Reis, who was arraigned on the Internet charge in federal court Monday morning, had confessed to the killing.

Mr. Danaher initially said the admission came in open court, but the Justice Department later clarified the statement, saying that Mr. Dos Reis had confessed to investigators.

"There are further steps to be taken in this investigation," Mr. Danaher said. "But we're confident that the arrest was very appropriate in this case."

The body of the girl, Christina Long, was found in a remote area of Greenwich early today using information provided by Mr. Dos Reis, officials said. She was last seen Friday at the Danbury Fair Mall.

An autopsy showed that the girl had been strangled, officials said.

Mr. Dos Reis was ordered held without bond. A hearing to argue the bond was scheduled for Friday in federal court in Bridgeport, said Harold Pickerstein, Mr. Dos Reis's lawyer.

Mr. Pickerstein would not comment on the allegations, but said he expected Mr. Dos Reis to plead not guilty to all charges. He criticized Mr. Danaher for his comments about the confession, calling them inappropriate.

"They probably would have been better off if they kept their mouths shut," Mr. Pickerstein said. "It's inappropriate, in my opinion, to discuss evidence in a case in which there has not even been a charge or an indictment."
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Federal Computer News
Certification deadline draws near


In an effort to improve the security of the commercial software it buys, the Defense Department beginning in July will prohibit the military services from purchasing information assurance products that have not met a third-party security evaluation.

Under the rule, DOD will not buy commercial software that has not been certified by the National Information Assurance Partnership (NIAP), a group formed by the National Security Agency and the National Institute of Standards and Technology. The initiative is essential as DOD increasingly uses commercial software for mission-critical functions, said Eustace King, the technology team leader for the Defense-wide Information Assurance Program, speaking May 14 during a presentation at the Navy's Connecting Technology conference in Virginia Beach, Va.

But the effort is even more critical as DOD moves toward network-centricity, where data is stored on networks and is available to those who need it, King said.

The DOD policy has received little attention despite the broad ramifications it could have for information technology buys.

It is not directed just at information assurance products, such as firewalls or intrusion-detection systems, but also at "information assurance-enabled products" such as Web browsers, operating systems and databases.

The DOD policy requires that all systems be assessed on how mission- critical the data is. That data will then determine the commensurate level of security robustness high, medium or basic, King said.

Under the National Information Assurance Acquisition Policy, the military services have been giving preference to information assurance products certified by NIAP, but beginning in July that certification will be required, King said.

Products bought before July will be exempt from the policy, King said, although the policy does require any significant upgrades to meet the certification requirement.

Capt. Sheila McCoy, a member of the Navy Department chief information officer's information assurance team, said the hope is that vendors will see the certification as an opportunity to obtain a competitive advantage.

Mary Ann Davidson, chief security officer for Oracle Corp., said that despite nearly a decade of similar requirements, many software vendors have avoided the guidelines and sought waivers instead. DOD must make security a top priority in buying decisions because it is difficult to add it on later if security is not built into a product from the start, she said.

Oracle has made security a critical part of its software development process, Davidson said. The company last week was awarded its 15th NIAP certificate for its Oracle Label Security product, she said. The product enables an organization to control access to shared data.

NSA has published the requirements for several product categories, including firewalls and operating systems. Other requirements are in the works, including those for Web security, intrusion-detection systems, virtual private networks and biometrics.

NIAP has certified about two dozen products, and others are in process, King said.

Davidson said the process can be expensive and time-consuming Oracle spends as much as $1 million to get a product certified. But the certification process has also helped the company avoid the future costs of applying patches to products, she said.
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Federal Computer Week NMCI apps placed on fast track

The Navy is developing a new process designed to speed up the way commands assess the tens of thousands of legacy applications before they become part of the Navy Marine Corps Intranet.

Migrating legacy systems has been the largest sticking point for the $6.9 billion initiative to create a single enterprise network across the Navy's shore-based sites. The move to NMCI has taken longer than anticipated due primarily to the enormous number of legacy systems in place that must be reviewed.

Under the new policy, which is expected soon, the Navy will assess the easily resolved applications immediately and isolate the systems that will take more time to review on a separate "kiosk system." That way, legacy application questions do not delay the overall NMCI rollout, said Rear Adm. Charles Munns, NMCI director.

Legacy systems must be tested to ensure that they do not interfere with the operations of the new NMCI network and that they meet NMCI, Navy and Defense Department security requirements. The Navy has nearly 70,0000 applications that must be reviewed before they will either be shifted to the new network or discontinued if not needed.

"Clearly the processes we have had in place...are not adequate," Capt. Chris Christopher, NMCI deputy director for plans, policy and oversight, said May 15.

Under the existing review process, the NMCI team treated every application as if it were an enterprise application, Munns said. Under the new process, reviewed and approved nonenterprise applications will be loaded on PCs at commands when they are ready, he said.

Once the rollout is finished, the Navy will tackle the more difficult legacy application issues, which include assessing DOD enterprise applications that the Navy is required to use, said Rick Rosenberg, EDS' NMCI program executive.

Some NMCI and EDS officials acknowledge that the faster review process will increase the number of applications that will be put onto the kiosk system. Munns expects that about one-quarter of the applications that will migrate to NMCI could be moved to kiosks.

EDS is responsible for the cost of running the kiosk systems; however, that may change in the future, Rosenberg said.

"The Navy is developing policies for how long you can maintain a kiosk," Christopher said.

The Navy also plans to discontinue more applications and require that sites shift to the enterprise applications, Munns said. NMCI has standardized on Microsoft Corp.'s Office suite.

Meanwhile, EDS and Navy officials were forced to do damage control after a published report that cited an internal EDS memo suggesting NMCI was foundering. Rosenberg called the April 25 memo from Mike Hatcher, chief delivery executive for EDS, an attempt to rally the NMCI team during what was a critical period of time. The memo says that EDS is going to begin "ruthlessly rolling out seats."

EDS officials acknowledged that the program has encountered problems. "Do we need to become more aggressive in streamlining processes? Yes. Do we need to become more aggressive in rolling seats out? The answer is yes," Rosenberg said in a May 15 briefing with reporters.
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Federal Computer Week
CIOs' input needed


Nearly six years after the Clinger-Cohen Act was signed into law, setting the stage to reform federal information technology management and establish chief information officers at federal agencies, CIOs still are trying to elbow their way into the top managerial ranks in agencies. It's about time that they have a seat, and a prominent one at that, at agencies' top managerial tables.

As pointed out by numerous CIOs at FCW Media Group's Government CIO Summit this month, CIOs still struggle to have their voices heard when top agency managers create sweeping business plans or policies. As one CIO pointed out, his position wasn't even on the agency's organizational chart.

It's been a long struggle. One week after President Clinton signed the Clinger-Cohen Act into law on Aug. 8, 1996, one of the congressional authors of the law worried that the administration was not "focusing on the importance of the CIO."

CIOs' lack of influence is doubly disconcerting given that President Bush's management agenda calls for agencies to "make the government a 'click and mortar' enterprise," according to Bush's fiscal 2003 budget request. And as pointed out by a senior Bush administration official, the other four topics in the agenda strategic management of the workforce, competitive sourcing, improved financial performance, and budget and performance integration all require strong IT components.

Mark Forman, Bush's chief e-government architect, and his team at the Office of Management and Budget have done a lot to raise the profile of IT and the CIO's role. But the message has not made it into agency secretaries' offices, CIOs say. Too often the CIO has no clout to truly help reform business processes, and policies are made without consulting the CIO or after the fact, when reform proposals are already on paper.

Without the chance to be a part of the team that decides how to reform government, IT failures and disappointments will continue. Including CIOs in the decision-making process will increase the probability of success for government reforms.
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Government Computer News
Supreme Court will rule on online registry of sex offenders
By Preeti Vasishtha


The Supreme Court will review a state law that requires the online posting of names, addresses and photographs of convicted sex offenders.

The court yesterday announced that it would consider Connecticut Department of Public Safety vs. Doe. The case originated in 1999 when two men sued Connecticut in federal court, arguing they were not dangerous and would be stigmatized if the state law were applied to them.

According to the Connecticut law, anyone convicted of a sex-related crime must supply name, address, photograph and DNA samples to the state police, which posts the information on its Web site.

Last year, the Connecticut's State Police Department posted information about 2,100 offenders on the site, which received 150,000 hits each month.

But a federal district judge sided with the men last year, ruling the posting of the personal data without a hearing to determine if they were dangerous violated the men's constitutional rights.

The Supreme Court will hear oral arguments next fall, and a ruling is expected by July 2003.
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San Francisco Gate
Internet can be lifeline for busy moms
L.A. Lorek, San Antonio Express-News
Monday, May 20, 2002
©2002 San Francisco Chronicle


URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/05/20/BU151763.DTL&type=tech



Any mother who has ever had a tired and fussy toddler throw a fit in a grocery store lane can see the benefits of shopping on the Internet.

"The Internet is so easy," said Jill Cooper of San Antonio, a stay-at-home mom with two sons, ages 4 and 5. "I don't have to leave the house with two active boys in tow. It makes it so much more convenient."

Mothers looking for a better way to shop, communicate and do research are increasingly turning to the Internet.

In fact, mothers with young children average nearly 17 hours online a week, according to a survey by America Online, the Internet service provider. AOL says that compares to about 12 hours on average for teenagers.

Mothers are not just shopping online; the top activity is keeping in touch with friends and family by e-mail and instant messages. Other favorite activities include finding driving directions and information, visiting kid- friendly sites, shopping for gifts and paying bills.

Cooper started using the Internet five years ago to keep in touch with her twin sister who lives in Kiev, Ukraine. She also e-mails other family members in Connecticut and California.

"I've always got the computer on and I try to use it when the boys are occupied," Cooper said.

The Internet is an invaluable tool for mothers, said Sharman Stein, articles editor for Working Mother magazine and the mother of 11- and 8-year- old boys.

"The Internet lets moms take care of all kinds of things they need to do without hassle," Stein said.

Stein spends about $100 per month shopping online, primarily for clothes, household goods and books. Recently, she needed to get a blue blazer and button-down shirt for her son, who is graduating from primary school. She logged on to the Internet and bought the items within minutes.

"When you are a mom and you are working, suddenly there is no time," Stein said. "The Internet helps simplify my life."

Working Mother surveyed its subscribers and found more than half spent at least $300 online in the past 12 months.

Some mothers go online to find a bargain.

According to an April Jupiter Media Metrix survey, 41 percent of women with children say they buy things online on sale that they wouldn't have bought otherwise.

"Women with kids look for online bargains," Jon Gibs, a Jupiter analyst said in the research report. "Therefore, companies looking to reach women online with kids should focus on price promotions and marketing programs such as online coupons."
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San Francisco Gate
ATTACK OF THE MOVIE CLONES
Pirated copies of "Star Wars: Episode II' and other new films gaining audience on the Internet


A week ago in a country half a world away, Martin Netter didn't have to wait until the new Star Wars blockbuster premiered in theaters today. He had already downloaded a free bootleg copy off the Internet.

"If I like the movie, I buy the DVD," said Netter, a 19-year-old Web designer from the Czech Republic, in an e-mail. "And if I don't, I'm happy I've watched (this) version first and didn't waste my money."

Although Hollywood would still cast Netter as a thief, that's not stopping him -- nor a small but growing group of downloaders -- from turning to the Internet to check out the latest flicks, even movies that haven't yet premiered.

"Spider-Man," for example, was posted online before the film's first record- breaking opening weekend was done. And online file traders are already on the lookout for "Men in Black II," due in the theaters on July 3.

Thus there was little surprise when a downloadable copy of "Star Wars: Episode II -- Attack of the Clones," apparently shot clandestinely with a digital video camera at a preview, appeared on the Internet last Thursday.

Movie industry executives say this latest example of online piracy is just another reason why they hope Congress will pass new copyright protection laws to help them combat what they call a clear and present danger to their livelihoods.

"The issue is how will we continue to deliver a paycheck to our people every week if we get to a world in which people don't have to pay to watch our content," said Preton Padden, executive vice president for governmental relations for the Walt Disney Co.


MOST STILL PAY
For the vast majority of movie fans, paying $8.50 at the box office or $20 for a DVD remains an easier, more enjoyable experience than downloading and watching a small, poor-quality video on a computer screen.


The Motion Picture Association of America frequently quotes a survey released in early 2001 that estimated 300,000 to 500,000 movies were downloaded each day, with about 1,500 Internet Relay Chat channels devoted to sharing feature films.

But the latest estimates by Boston consulting firm Viant Corp., the survey's author, show that the activity has grown incrementally in the past year to between 400,000 and 600,000 movie files per day.

That works out to about 12 million to 18 million files per month. By comparison, users of the Napster program were swapping nearly 3 billion song files per month before a court-ordered shutdown last year.


GAINING POPULARITY
But even if Hollywood isn't facing Armageddon right away, one expert who follows file sharing said the fact that an iconic film such as "Attack of the Clones" is available online could be a tipping point that drives the practice of downloading films from the fringe to the mainstream.


That could mean the trailers and other prerelease movie hype will no longer cut it for audiences who will have the chance to see a movie before they actually pay for it, said Eric Garland, president of BigChampagne, a Los Angeles research firm that follows peer-to-peer file-sharing programs.

"When you think of the nature of (the movie industry's) business model, you'd much rather have an uninformed audience coming to the table every weekend hoping to be entertained than a savvy public that is informed," Garland said.

"It's tempting to say, 'Oh gosh, look what happened to the music business and Hollywood is next,' " Garland added. But only about 2 percent of the files swapped using peer-to-peer networks like KaZaa or Gnutella are feature-length films, he said.


FILM STUDIOS ARE WORRIED
Still, industry experts fear a proliferation of free movies on the Internet would harm other standard movie industry profit windows -- home video sales, pay-per-view and broadcast. Those are key sources of revenue given that only 2 in 10 movies make back the money spent on production during their theatrical run.


"We want to be online, it would be ludicrous for us not to recognize the Internet as an incredible way to reach a wide variety of people," said Rich Taylor, spokesman for the Motion Picture Association of America. "But the Internet is a place of business. If there's looting going on there, you don't open up a Wal-Mart on that corner."

But downloaders contacted for this story said they didn't consider what they did theft, just a way to make sure they spent their entertainment dollars wisely.


SAMPLING THE GOODS
Florian Zander of Germany, for example, downloaded "Spider-Man" "just to see if it's worth watching in cinemas."


"If you like the movie, you'll surely see it in the cinema again because you cannot compare a small PC display with (lousy) sound against a huge cinema screen with Dolby-digital sound," Zander said. "And it is of course much more fun to see the movie with all your friends."

Unlike the MP3, the music file format popularized by Napster, the movie files are noticeably inferior to the original product, especially the first versions that go online. Called screeners or telesyncs, these copies are films taped off the big screen by a video camera smuggled into the theater. Often, a higher-quality version, ripped from the film's eventual DVD, later appears online.

Experts say some of the screeners are the work of people who are after the "thrill of the chase" of wanting to be the first to post a new movie online. They even take credit by superimposing their logos on the movie.

One online movie sharer with the screen name Chiara did not download the latest Star Wars because the telesync version "would spoil it when I will see it in the theater."


DOWNLOADERS ARE MOVIE FANS
"We may share movies, but above all we are a movie fan club," Chiara said. "We are the first to see a movie in the theater, we are the ones that stand in line to get the DVD first."


Netter, the downloader from the Czech Republic, first previewed "Vanilla Sky" online and loved it. "I went to the theater seven times, and I preordered the DVD. Does this mean I stole anything from 'Vanilla Sky' makers? No," he said.

But finding and downloading the latest box-office smash can consume hours if not days of effort and requires a high-speed Internet connection and enough hard drive space to download a file that can be as big as 700 MB.

Downloaders say the surest way to find a clean copy of a new movie is on Internet Relay Chat channels, a process that even veterans of the computer conferencing method warn takes some know-how.


BAIT AND SWITCH
Users of popular, consumer-friendly peer-to-peer programs like KaZaa, Grokster and BearShare also share movies, although a large number of files labeled "Spider-Man" or "Star Wars" were actually copies of films like "Panic Room," "Atlantis" or "Corky Romano."


Beginning with last November's Harry Potter movie, more mislabeled or blank video files have appeared on peer-to-peer networks, said Matt Bailey, president of Redshift Research, a Belmont, Mass., firm that studies digital entertainment

"It looks like someone is putting a fair amount of time and effort into putting these bogus files on the network" to discourage consumers, Bailey said.

Eventually, however, the number of real copies will outnumber the fake files, Bailey said.


FIGHTING BACK
The motion picture industry has stepped up efforts to track screeners, scouring the peer-to-peer networks, Internet Relay Chats, file-transfer protocol sites, Web sites and newsgroups to crack down on movie swapping.


Last year, the Motion Picture Association of America sent 54,000 e-mail notices to 1,680 Internet service providers around the world notifying them of members who were offering pirated copies of movies for downloading, said Hemanshu Nigam, the trade group's vice president of worldwide Internet enforcement.

Another 18,000 letters were mailed during the first quarter this year. Meanwhile, on April 26, the group started contacting ISPs about "repeat infringers."

The letters ask the ISPs to take whatever action they can under their own service policies to block infringers. Nigam said he's seen an 82 percent drop in the number of infringing newsgroups but noted activity on peer-to-peer networks is harder to control.

Garland believes another solution would be for movie studios to entice movie fans with free, high-quality, downloadable videos that show the first 10 or 20 minutes of a film.

"Imagine if the studios filled the Internet with the first 10 minutes of 'Spider-Man,' " Garland said. "It would be like telling a camp fire story and stopping in the middle."

"We know this is the Internet era," Garland said. "As a social phenomenon, file sharing is here to stay."

E-mail Benny Evangelista at bevangelista@xxxxxxxxxxxxxxxx
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Government Computer News
Late changes to a security R&D bill call for NIST cybersecurity office
By Jason Miller
The Senate Commerce, Science and Transportation Committee late last week passed an IT security research bill that would create a cybersecurity office at the National Institute of Standards and Technology. The bill, S 2182, now awaits a vote by the full Senate.


During markup, Sen. Ron Wyden (D-Ore.) amended the Cybersecurity R&D Act, boosting proposed five-year funding from $875 million to $977 million, to better focus government and industry efforts to improve network and software security. Changes in the bill also would give more responsibilities to the Commerce Department's NIST and the National Science Foundation to promote cybersecurity research.

The creation of the NIST office, which would be called the Office for Information Security Programs, was one of three provisions added to the bill. The office would oversee the government's efforts to buttress cybersecurity research, including a program to assist colleges and universities in entering partnerships with companies and government laboratories to conduct such research.

NIST also would have to develop benchmark security standards for agencies to implement and draft security guidelines for common software used by agencies.

The bill would require NSF to award grants for cybersecurity research to colleges, universities and companies. The bill also would encourage graduate students to teach cybersecurity in return for paying their college loans.
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USA Today
Bounty offered to software bug hunters


WASHINGTON (AP) A popular Internet privacy service that lets Web surfers visit sites anonymously has fixed several serious flaws, and now the service's founder is offering a reward to the finder of the bugs.

Bennett Haselton, an Internet filtering activist who runs the Peacefire Web site, found the problems with Anonymizer.com, a five-year-old service that shields users from tracking by Web sites and their Internet providers.

Haselton "came up with a new way of exploiting (Web) standards," Anonymizer president Lance Cottrell explained Monday. "They're pretty subtle."

Many major commercial sites cringe when security researchers find a hole. But Anonymizer actually encourages it through a "bug bounty."

Haselton's reward: three free years of the Anonymizer service, which costs $50 a year. Cottrell said the offer stands for anyone else who can find security holes in the service.

"We are always actively soliciting people to attack it," Cottrell said. "Trying to hide and keeping your head down is always the wrong answer."

Ordinarily, Web sites collect lots of information about visitors, including the Internet address that can lead to a visitor's geographic location, as well as shopping habits and previous Web travels.

Anonymizer keeps the visitor's information secret by standing between the customer's Web browser and the desired Web site.

Customers can use Anonymizer through the company's Web site or with a downloadable program. The service allows Web users to keep personal information away from marketing sites, or to keep their bosses from seeing their Web surfing at work.

For example, a person could use Anonymizer's service to visit the FBI's tip site and offer information truly anonymously.

The methods Haselton developed, though, could be used on a Web site to determine where the visitor is really coming from and negate the effectiveness of Anonymizer.

Independent researchers who find security holes frequently get a cold reception from Web sites. Internet companies complain that the researchers are more interested in notoriety the rush to release their find than customer safety.

The battle between the two sides has prompted several security firms, along with Microsoft Corp., to advocate limited disclosure of security holes. This has brought even more controversy among security experts.

Cottrell said his company doesn't know of any Web sites that used Haselton's methods to defeat the privacy program.

"Our customers are very open with us," Cottrell said. "I'm sure we would have heard about it."
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Government Executive
Senate committee sets up 'emergency technology guard'
By Molly M. Peterson, National Journal News Service


Legislation to make it easier for science and technology experts to assist government agencies during terrorist attacks or other national emergencies won quick approval Friday from the Senate Commerce, Science and Transportation Committee.

The Science and Technology Emergency Mobilization Act (S. 2037) would create a "national emergency technology guard" within the National Institute of Standards and Technology to provide science and technology assistance to federal, state and local emergency response agencies.

The panel approved the bill by unanimous consent with no debate.
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Government Executive
Senate panel creates cybersecurity programs, standards
By Molly M. Peterson, National Journal News Service

Legislation to create new cybersecurity research programs at the National Science Foundation and the National Institute of Science and Technology won quick approval Friday from the Senate Commerce, Science and Transportation Committee.


The Cyber Security Research and Development Act (S. 2182), which the panel approved by unanimous consent, aims to improve information sharing and collaboration among government, industry and academic cybersecurity researchers, while increasing the number of U.S. workers with expertise in that field.



Under a managers' amendment adopted by unanimous consent, the bill also would establish standards for cybersecurity technologies used by federal agencies. Technology industry representatives oppose the provision. They say federal standards would make it more difficult for government and industry to respond quickly to emerging cybersecurity threats.



"Such requirements are both inappropriate and unworkable, as cybersecurity threats are always changing and technologies must rapidly evolve to meet them," said Robert Holleyman, president and CEO of the Business Software Alliance, whose members include Microsoft, IBM, Intel and other high-profile technology companies.
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Government Executive
White House works on data management privacy principles
By Maureen Sirhal, National Journal's Technology Daily


As the White House unveils online government services, the nation's e-government chief said Monday that the Bush administration is working hard to balance concerns over privacy with the need for streamlined information-sharing practices.

These challenges are particularly difficult for government, Mark Forman, associate director of information technology and e-government for the White House Office of Management and Budget told the National Academy of Public Administration's privacy conference.


To meet President Bush's mandate for more effective management of federal agencies, OMB is spearheading efforts to translate some agency duties to the Internet, providing greater and more efficient access to citizens, businesses, and state and local governments.



The key to e-government rests on the ability for agencies "to get rid of redundant copies of the data" so that citizens can go to a one-stop shop to accomplish a range of tasks, Forman said. But that streamlined vision of agency access to data requires principles to ensure that personal information is not compromised and that businesses and individuals can trust the system, he added.



Forman said that in cases concerning homeland security, agencies must be able to share information in back-end operations to assess threats, for example, and that necessity may pose privacy tradeoffs.



To establish a proper balance between privacy and online service, OMB is working to establish principles for data management. The e-government initiative must make sure that the data collected is being used for its stated purpose. Means of data collection must be secure, while access to that information is maintained on a "need-to-know basis," Forman said.



And to meet those goals, OMB will continue issuing privacy management guidelines, including the requirement that all agencies submit privacy assessments of the technologies they propose to acquire. OMB also will continue to prohibit tracking technologies and will require agencies to post viable privacy policies to the Web and to appoint senior privacy officials.


Forman also cited OMB's progress on an e-authentication system, which will be the key enabler of online services. The system will ensure privacy protection by providing a "gateway" where citizens, businesses and other government agencies can obtain the proper security clearance to engage in online transactions with the federal government, he said.


"We're very committed to promoting privacy interests," Forman said. "But in the back office, integrating lines of business, you have to be able to correlate information."
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Nando Times
Teachers claim Web sites offer students easy cheating chance


(May 21, 2002 11:41 a.m. EDT) - Plagiarism has always existed, some say since the birth of formal education. But the Internet has made the temptation to steal words much harder to resist.

Faculty members say some students create entire papers using a patchwork of paragraphs from different sources without giving the original author credit for the words or ideas.

Some students cut corners with research papers because they feel the pressure to earn top grades; other students do it to keep up with their classmates.

Still others do not see the crime in lifting a few lines of someone else's work.

In a 2000-01 survey, more than half of 4,500 high school students said they had used sentences from Internet sources without citing them, according to Rutgers University professor Donald McCabe. Of those students, about a third said they cheated because they "didn't study" or they were "lazy."

Whatever the motivation, if students are plagiarizing they are not learning, said Dimitri Keriotis, an English professor at Modesto Junior College in California.

"I hate to feel that I'm a writing cop, but at the same time, the student (who plagiarizes) should not be graded equally as someone who has done original work," he said.

Faculty members now have access to anti-plagiarism technology that they hope will deter students from taking the risk - a risk that could result in failing grades, or, in extreme cases, expulsion.

Modesto Junior College and California State University-Stanislaus have started training faculty to use Turnitin.com, a computer program that matches material in student papers to articles, books and information on Web sites. Some professors have their students submit their papers to Turnitin.com before handing them in to be graded.

Turnitin.com software is keen enough to detect the origins of passages, even if some of the words have been changed. Of the 10,000 papers submitted to Turnitin.com from around the world every day, about 30 percent have some degree of plagiarism.

More than arming instructors with a tool to catch cheaters, it gives students a chance to check their work before they submit it for a grade, faculty said.

John Barrie, who founded Turnitin, said: "As a society, we had better be concerned that we could be exposing ourselves to a whole generation of students who have a shaky ethical foundation and who don't have the critical thinking skills to succeed."

In January, the Georgia Institute of Technology began investigating 186 cases of students accused of recycling assignments in two computer programming classes. Last year the University of Virginia had 157 cases of plagiarism from one physics class.

Most - if not all - schools and universities have policies or honor codes prohibiting plagiarism and cheating, but it is professors and teachers who usually determine the discipline.

Not all students understand the severity of their plagiarizing.

One student who admitted to plagiarizing filed a petition to get his failing grade reversed, said Wilma McLeod, Modesto Junior College vice president of student services. McLeod plans to stand behind the professor, but that's not always the case at every school.

In Kansas, high school teacher Christine Pelton came under fire from parents for failing 28 students for an assignment in which they copied from the Internet. Turnitin.com exposed the cheating.

But the school board succumbed to parental pressure, and Pelton resigned.

Not all plagiarism involves copying from published sources. Sometimes work is traded or sold among students.

The business of selling and recycling term papers is hardly new. Before the Internet, term papers were sold through ads in student publications. Some fraternities and sororities keep files of recycled term papers.

In the past five years, the online cheating industry has grown and made it very simple to find and buy papers.

"The proliferation of term paper mills is incredible," said Laura Boyer, a Stanislaus State reference librarian. "There are literally hundreds. They are getting very specific. Here we are talking about plagiarism, and there's a site that has term papers on ethics."

But another irony of online cheating is that most of what is on the Internet is not worth buying or stealing, said Stanislaus State English professor Renny Christopher.

In searching cheat sites, most papers that Christopher found had stale ideas and poor grammar, she said. She found a paper on Ernest Hemingway's "The Old Man and the Sea," but the paper listed the author as "John Hemingway."

"This is a paper not worth grading," she said.
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Nando Times
Console makers believe future of gaming is online

LOS ANGELES (May 20, 2002 7:52 p.m. EDT) - The video game industry is setting its sights online after a flurry of console price cuts that will put the focus less on the hardware itself and more on giving consumers reason to get hooked.

The big three machine makers - Microsoft, Sony and Nintendo - are hoping people will be willing to pay subscription fees for multiplayer interactive games. They're unveiling plans to allow play across time zones and even language barriers using high-speed Internet connections.

While the hype will run thick at this year's Electronic Entertainment Expo, many analysts say online games will take a few years to become more than a niche market as the industry works out issues starting with broadband availability and ending with their ability to offer compelling content.

"At the end of the day, online console gaming is going to be a very small market for the next couple of years," said Schelley Olhava, senior analyst at IDC, a market research firm.

The expo, which begins Wednesday and runs through Friday, gives software and hardware makers a chance to introduce new games and accessories. The industry generated $9.4 billion in sales last year, $3 billion from hardware. By contrast, Hollywood's box office gross last year was $8.4 billion.

Olhava and others believe online gaming will truly take off in 2004 or 2005, when the next generation of consoles rolls out and high-speed Internet is more pervasive. Currently, a little more than one in 10 U.S. homes have broadband connections.

"Right now, the goal is to create content to drive people who own the consoles to buy more games and, more importantly, drive people who don't own consoles to buy one," said Olhava.

Microsoft's online gaming network, called Xbox Live, is being offered for an introductory fee of about $49 a year, though officials weren't saying what they expect to charge after that.

The offer includes a headset that enables users to talk to one another via their Xbox consoles' broadband connection, effectively creating a phone service during gameplay.

Players can choose online nicknames and locate friends via a "buddy list," while the system maintains a record of their achievements and failures.

Microsoft said it would invest $2 billion in the Xbox, much of it to develop the online game network. Robbie Bach, the company's chief Xbox officer, said almost half the nearly 3.5 million Xbox owners have broadband Internet connections.

Later this week, software companies were expected to unveil versions of games for the Xbox network as well as Sony's Playstation2, which will provide online access later this year.

Unlike Microsoft's approach, Sony will not charge a subscription fee and will rely on the open Internet instead of its own closed network for interactive gaming.

Nintendo will start shipping modem and broadband adaptors later this year, but has downplayed the importance of online videogaming in the short term.

Nintendo's GameCube has shipped about 4.5 million units worldwide so far. PlayStation2 is the clear industry leader with more than 30 million units sold worldwide.

Nintendo on Monday announced the latest cut in console prices, dropping the GameCube system down to $149. Last week, the Playstation2 and Xbox saw price slashes down to $199. Unlike its competitors, the GameCube lacks a built-in DVD player.

Online video games are already popular with PC users.

Internet services such as Yahoo and Electronic Arts host card games, chess and checkers and more elaborate role-playing games on their Web sites.

Games such as "Everquest," made by Sony Online Entertainment, and "Ultima Online," from Origin Systems, have a loyal following of dedicated players who pay a monthly subscription fee plus the cost of software to play using their PCs.

Companies such as Microsoft, Sony, Nintendo and even Sega, which launched one of the early online gaming networks, believe that popularity will migrate to console online games over the next few years.

"Online gaming in the past has been pretty clunky," said Scott Burnett, director of marketing at the IBM Global Digital Media Group. "You couldn't get the same experience you could from the box at home, whether it was because of bandwidth, the design of the games or processing abilities."

IBM recently said it would join with butterfly.net to provide the technological backbone to produce online games for personal computers as well as consoles. The programming tools are based on the open-source Linux operating system.

Sega, which stopped making game consoles last year, will make online games for the other platforms. It currently has over 100 servers supporting its dial-up Sega.net service. Those computers will be transferred to support new games being developed for the Playstation2 and the Nintendo GameCube.
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Nando Times
Library of Congress puts American history on the Web


WASHINGTON (May 20, 2002 8:25 p.m. EDT) - Anyone who wants to hear Buffalo Bill's own voice at home or John Philip Sousa's original band can tune in by computer now, courtesy of the Library of Congress.

Many new computers have the necessary soundboard.

The library announced Monday it has put on line the 111th and 112th collections of materials on its "American Memory" Web site. The site now includes more than 7.5 million items, which the library says is the world's largest collection of online educational material.

"Emile Berliner and the Birth of the Recording Industry" includes more than 400 items from the library's collection of Berliner's papers and 108 of his sound recordings beginning in 1894.

Berliner was an immigrant from Germany. He patented the flat disc gramophone records that superseded the original cylindrical recordings.

Buffalo Bill - William F. Cody - rode for the Pony Express and fought in the Civil War. Soon afterward he won his nickname hunting buffalo, or bison, to feed workers who built the Kansas Pacific Railroad, His outdoor exhibition "Buffalo Bill's Wild West" remained on the road for 30 years, with Annie Oakley and Sitting Bull among its performers.

On the Web site, he can be heard expressing his views on the situation in Cuba that led to the Spanish-American War.

Sousa played in the U.S. Marine Band when he was only 13 and in later life became its leader before forming his own group. The Sousa band toured the United States and abroad for decades, playing some of his famous marches, including "The Stars and Stripes Forever."

The other new collection on the site is "The First American West: The Ohio River Valley, 1750-1820," which contains more than 15,000 pages of original material.

It covers the area west of the Appalachian mountains that fascinated the republic's founding fathers. There are comments from Thomas Jefferson and James Madison, letters, diaries, tales of migration, trade on the Ohio River, contacts with American Indians and the lives of African Americans in slavery there.
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Wired News
Handheld Delivers the 411 on DNA


The research center where the first computer mouse was born in 1963 has developed a device that could revolutionize the way doctors diagnose diseases.

SRI International's device, called Hermes, takes a very simple approach to a complicated endeavor: isolating and purifying a patient's DNA in order to get accurate and fast diagnoses.

Many scientists have tried to miniaturize and speed up the lengthy and expensive process of shipping DNA samples to labs. Results can take days or weeks but with Hermes, doctors could have results immediately.

You could determine whether someone was HIV positive, then go on to investigate what subtype they might be," said John Bashkin, program manager of the Hermes project at SRI International. This will lead to better and faster treatment, he said.

Another application is in the treatment of breast cancer. About 25 percent of cases can be treated successfully with a drug called Herceptin. Hermes could help a doctor determine immediately whether a patient is a candidate for the drug.

The device is so simple and elegant that it almost looks like a toy. A tiny magnet jumps into a well of fluid, grabs some DNA, jumps into another well to rinse itself off, then another. In the last well, it spins around and releases the DNA of interest and makes it ready for a clinician to identify.

Electromagnetic energy carries the magnet from well to well. Several tiny coils of wire situated along the bottom of the device generate a magnetic field energized by an electric current from a computer.

The device requires no mechanical moving parts, no filtering, no valves and no fluid pumping of any kind.

Other devices trying to accomplish a doctor's office diagnosis take an opposite approach. Instead of moving the sample to the various liquids as the Hermes magnet does, they bring the liquids to and from the sample.

"That's why the approaches that compete with Hermes are more complicated, requiring miniature pumps and valves, while Hermes is more simple because it just moves one thing, the magnet with the attached sample, to and from the different liquids," said Neville Bonwit, a research engineer at SRI who designed the device.

Combined with one of several nanotechnology-based devices now in development, doctors could have in their hands an extremely accurate, sensitive and fast-working device.

After the sample is isolated and purified by a device like Hermes, a clinician still needs to find a way to analyze the sample, often using a process called polymerase chain reaction (PCR), which can take hours.

Nanotechnology researchers have shortened the process and increased its accuracy.

One such nanotechnology developed at Northwestern University's Institute for Nanotechnology is 10 times faster and 100,000 times more accurate than PCR.

But before the nanotechnology is implemented, researchers have to make sure the sample is pure, so Bashkin hopes to make Hermes a modular application that would integrate with this type of nanotech.

"Unless you remove impurities, (these) chips ... could become fouled or give improper results," Bashkin said.

Chad Mirkin, the director of Northwestern's nanotech center, said the new tool sounds clever, but he couldn't make a definitive judgment until the researchers published their work in a peer-reviewed scientific journal.

"There are many ways to skin a cat, but that said, there are not too many great ways already out there to do this, so any advancement could pay big dividends," Mirkin said.

The SRI scientists hope to publish later this year.

Bashkin plans to launch a company this fall based on Hermes. A year from then he expects devices to be available for research purposes (when they won't need FDA approval). He hopes the FDA approval process, which takes about two years to complete, will begin a year later.

One of Hermes' chief competitors will be Cepheid, a company that is already making similar devices that are primarily for environmental and food DNA detection rather than "point-of-care" diagnosis of disease.

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Wired News
Tagging Books to Prevent Theft

For reference librarians, scanning endless bar codes is as tedious a daily task as dealing with stolen, lost or overdue library books.

Now, a wafer-thin, microchip-based tag the size of a postage stamp could ease their workloads.

Librarians can affix materials with security tags that contain microchips and an antenna that transmits information to a wireless reader using radio frequency identification (RFID) technology.

The technology could one day become as ubiquitous as the bar code.

Unlike bar codes, which need to be scanned manually and read individually, radio ID tags do not require line-of-site for reading. Multiple tags can be read simultaneously, through packaging or book covers.

With radio ID tags, librarians can automate check-ins and returns. Patrons can speed through self-checkout without any assistance or ever even opening a book.

An RFID tag can be read from just inches away, so librarians can simply wave a wireless wand while walking through stacks to record what books are on the shelves. The hand-held unit reads the chips and stores data that can be downloaded into the library's circulation system. Instead of weeks or months, collection inventory would take just hours.

"Inventory of the collection, normally a time-consuming process, is made easy and quick," said Patricia Mackey, librarian for Rockefeller University Library, which uses Checkpoint Systems' Intelligent Library System.

Electromagnetic sensors guard library exits, so that only checked-out books leave the building. If a book isn't signed out properly, a hidden RFID tag will trigger the sensors and an alarm will sound to alert librarians to a possible theft.

At Rockefeller University Library, a camera videotapes patrons in real time whenever an alarm is triggered, catching action that security guards might miss.

A number of vendors, such as Texas Instruments, Checkpoint Systems, 3M Library Systems and Tagsys, have introduced RFID technology to the library-security market.

But the applications for RFID technology are limitless.

"Fundamentally, the technology can and is being extended well beyond libraries," said Doug Karp, senior director of RFID operations and strategic marketing for Checkpoint Systems.

"So many things are being looked at because of what this technology can do," Karp said.

Booksellers in Great Britain hope to use RFID chips to track each book's transaction, from publisher to wholesaler and retailer to customer.

But cost and lack of standards have prevented many libraries from adopting RFID technology. RFID tags cost upwards of 50 cents, whereas bar code tags cost about 2 cents.

"Cost may be a factor for many libraries," Mackey said. "It can be costly if the library is using older technology for security purposes and it has to be replaced or if they have a very large collection to treat with security tags."
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Lillie Coney Public Policy Coordinator U.S. Association for Computing Machinery Suite 507 1100 Seventeenth Street, NW Washington, D.C. 20036-4632 202-659-9711