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Clips October 7, 2002



Clips October 7, 2002

ARTICLES

Labels, Webcasters Reportedly Reach Deal [E-Royalty Rates]
Report Calls for Plan of Sharing Data to Prevent Terror [Privacy]
FBI official: Biometrics not ready for large-scale uses
Lawmakers Tuning In to New Media Issues [Legislation]
Music Industry in Global Fight on Web Copies [Piracy]
Codebusters Crack Encryption Key
Russian Hacker Sentenced to 3 Years
Army looking to outsource
Homeland proposal up in air
NIMA center to set geospatial standards
When duty calls Brenton Greene's [National Communications System]
Web site takes copyright fight to the Supreme Court
Study: National security needs more IT, defined powers
Hackware Author Arrested -- Maybe

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Los Angeles Times
Labels, Webcasters Reportedly Reach Deal
Internet: Sources say the long-awaited pact calls for lower royalty payments by small online radio stations.
By JON HEALEY
October 7 2002


Record labels and small Internet radio stations reached a long-awaited agreement Sunday that calls for significantly lower royalty payments for online music broadcasts, sources close to the negotiations said.

Unless Congress changes the law quickly to implement the deal, however, these Webcasters will have to pay three years of back royalties Oct. 20 at the full rate set by the librarian of Congress. That rate--0.07 cent per song per listener, or $92 per listener per year for an all-music station--could drive many small Webcasters out of business.

The agreement Sunday came in response to pressure from leaders of the House and Senate judiciary committees, who are expected to take the lead in trying to implement a compromise through legislation. Lawmakers have been heavily lobbied by small Webcasters who fear that their industry will be destroyed if they are forced to pay high royalty rates.

The deal offers no relief to large Webcasters, such as Yahoo Inc.'s Santa Monica-based subsidiary Launch, or mid-size ones such as Radio Free Virgin in Los Angeles or Live365 in Foster City, Calif. Negotiations last week between the labels and large Webcasters on a long-term deal failed to bear fruit, despite signs of progress.

Sources on both sides of Sunday's deal, who spoke on the condition of anonymity, said it was a two-year agreement that calls for Webcasters to pay back and future royalties equal to 8% to 12% of their revenue or 5% to 7% of their expenses, whichever was higher.

The deal, which also would let back royalties be paid in installments, initially applies only to Webcasters with less than $1 million in revenue.

One potential sticking point for the small Webcasters' deal is payments to artists. Today, the labels are bound by contract to pay about half of the Webcasting royalties directly to performing artists. Some artists' unions and trade groups are insisting that any legislation for small Webcasters should also mandate direct payments to artists, but the labels have not agreed to such a provision.

The artists unions flexed their muscles last week, lining up top Democrats to oppose a bill to delay Webcasting royalty payments for six months. The sponsor, House Judiciary Committee Chairman F. James Sensenbrenner Jr. (R-Wis.), withdrew the bill, avoiding almost certain defeat on the House floor.

Sensenbrenner is expected to take a bill implementing the deal to the House floor as early as today.

The proposed rate for small Webcasters is higher than the percentage of revenue that cable and satellite TV companies pay for their digital broadcasting services. Still, it would generate significantly smaller royalties than the 0.14 cent per song originally proposed by a federal arbitration panel, the source said.

The librarian of Congress cut the panel's proposal in half, but small Webcasters still pleaded for a percentage-of-revenue deal that would take into account the slumping advertising market. Large Webcasters favored a per-song royalty but were eager for a lower rate.
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New York Times
Report Calls for Plan of Sharing Data to Prevent Terror
By JUDITH MILLER


A bipartisan report by some of the nation's leading information technology and national security experts recommends that the Bush administration develop a system to share intelligence gathered in the United States and abroad among local, state and federal agencies while developing guidelines to protect against abuses.

The 173-page report, which is scheduled to be released today, outlines what its authors call a "road map" for establishing truly national, decentralized information systems that would both protect privacy and prevent terror.

Toward that end, the report, "Protecting America's Freedom in an Information Age," strongly endorses giving responsibility for analyzing such information not to the Federal Bureau of Investigation, but to a new domestic intelligence center inside President Bush's planned Department of Homeland Security. Legislation to create the department is mired in Congressional wrangling over such issues as whether labor laws should apply to the agency's employees.

The study also calls upon President Bush to devise new guidelines on what information federal agencies may and may not collect about individuals in the United States and with whom, and under what circumstances, such data may be shared.

Finally, it warns that while Washington must play a critical role in gathering and analyzing data aimed at preventing terror, state and local officials will inevitably provide much of the information needed to protect the nation. Information systems that exclude them, or prevent them from receiving and contributing to such federal data, are destined to fail, the study concludes.

Unless information provided by state and local officials, as well as the private sector, is shared with Washington, "we may wind up getting all of the disadvantages of invasion of privacy with none of the national security gains," conclude the task force's co-chairmen, Zoë Baird, the president of the New York-based Markle Foundation, and James L. Barksdale, a businessman and former chief executive of Netscape.

Although the Bush administration did not commission the report or formally participate on the 44-member panel that studied the issues for more than six months, senior administration officials who followed the group's work praised the effort.

"This impressive group of people was definitely asking all the right questions, and have come up with some very reasonable first answers," one senior administration official said.

Several task force members are scheduled to meet today with Tom Ridge, the president's homeland security adviser, to discuss their findings. "They've gotten people who normally don't talk to one another privacy advocates and former intelligence and national security officials to agree on some basic prescriptions for safeguarding civil liberties and protecting America," the official said. "That's fairly impressive."

The study, sponsored by the Markle Foundation, was conducted with two influential research groups the Brookings Institution and the Center for Strategic and International Studies and with the Miller Center for Public Affairs at the University of Virginia. The center's president, Philip Zelikow, a former White House official who is close to Bush administration officials, is the task force's executive director.

"Our study shows that the information and technology that could have prevented the 9/11 attacks already exists," Mr. Zelikow said in an interview. "Had such systems been in place," he said, "Sept. 11 might have been the nation's most important intelligence coup, instead of a day of national tragedy."

The report says that while federal agencies are investing some $50 billion a year on information technology partly to prevent terrorism, "almost none of this money is being spent to solve the problem of how to share this information and intelligence among those agencies." In this fiscal year's $38 billion request for domestic security, for instance, the Bush administration has asked for only $200 million for "information integration, and is having trouble getting even that."

Ashton Carter, a professor at the Kennedy School of Government at Harvard University and a former defense official, said the group's endorsement of presidential guidelines for safeguarding privacy was based on the standards developed by the National Security Agency, which monitors telephone and electronic communications overseas. The agency has "a good history of discipline" about monitoring conversations of Americans abroad, he said.

The report argues strongly for automated, interactive information systems that include data collected by the private sector as well as tips from local and state agencies, which the study calls the "real front lines of homeland security." The F.B.I. has 11,500 agents, but there are more than 50 times as many state and local law enforcement officers. Whereas the F.B.I. has some 100 analysts working on domestic counterterrorism intelligence, the report states, the Los Angeles Police Department alone has 40 such analysts, and New York's counterterrorism effort is larger still.

"America will make a mistake if we create an old-fashioned centralized mainframe supercomputer architecture rather than a network of personal computers," Ms. Baird said.

Treading carefully in one of the most sensitive policy areas, particularly for conservative Republicans, the task force avoids recommending the creation of a stand-alone domestic collection agency such as Britain's MI-5 or placing that responsibility under the F.B.I.

"The people running criminal investigations should not be seeking all kinds of information from businesses, state and local officials all over the country," Ms. Baird said.

The case for "fundamental separation" of criminal investigation and domestic counterintelligence "is strong," the report concludes.
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Government Computer News
FBI official: Biometrics not ready for large-scale uses
By Dipka Bhambhani


Agencies are not yet ready to deploy biometrics on a large scale, an FBI IT official said, and projects like the agency's own U.S. Border Control Entry and Exit System have a long way to go.

"Biometric identification is not a technology that is applicable on an agencywide basis," Selena Hutchinson, the FBI's acting deputy CIO, said in an interview.

The FBI has been using fingerprint indicia for the past decade to identify criminals and do background checks on its own employees with its Integrated Automated Fingerprint Identification System (IAFIS) system. The Defense Department can use biometrics for its Common Access Cards.

"In all cases, biometrics are used in context of the mission and not agencywide," Hutchinson said.

She said agencies can learn from some of her own challenges implementing and using IAFIS. "The implementation of biometrics technology in the context of large-scale identification systems is a very complex task that requires the development of new business processes that must meet often contradictory requirements," Hutchinson said.

Agencies must work together, continue to investigate vendors productsand stick with fingerprints. Fingerprint technology is the only biometric used on a large scale, she said.

"The processes must provide security, rapid processing, minimal impediment to travel, be socially acceptable, and meet legal and international treaty requirements," she said.

At a biometrics conference in Arlington, Va., in September, Hutchinson said that new systems already impose complex operational requirements making user cooperation an integral part of the system's success.

"The development of these business processes requires careful analysis and planning," she said.
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Los Angeles Times
Lawmakers Tuning In to New Media Issues
Technology: From file sharing to digital TV, members of Congress are pushing bills that would affect everyday lives of Americans.
By EDMUND SANDERS and JON HEALEY
October 6 2002


WASHINGTON -- Rep. Howard L. Berman has a daughter who's a big fan of downloading music online, but the Mission Hills Democrat is sponsoring a bill that might block file-swapping.

Then there's Rep. W.J. "Billy" Tauzin (R.-La.), who was so mesmerized by the crystalline images of a high-definition TV Super Bowl broadcast that he's pushing the nation to adopt digital television, a costly transition that would require millions of Americans to replace their TV sets.

And Sen. Ernest F. Hollings (D-S.C.) made a fan of Walt Disney Co. by introducing a bill requiring anti-piracy devices in new technology, but he's the entertainment industry's staunchest foe in blocking big media mergers.

As Hollywood starts to take center stage again in Washington, lawmakers--for different reasons--are promoting legislation that would have a significant effect on consumers' everyday activities, including buying TVs, taping favorite programs and downloading songs. Unlike past congressional efforts that centered on complaints about sex and violence in movies and songs, the current battles concern more arcane topics, such as analog versus digital TV or copyright infringement.

Although entertainment issues can lead to more headlines and fatter campaign chests, messing with Americans' television sets or restricting how they use their computers is fraught with political risk.

Tauzin, who as a member of the House Energy and Commerce Committee has tackled Enron Corp. and energy reform, is facing one of his biggest gambles in an effort to push the nation toward digital TV. After criticism two weeks ago about the potential cost to consumers, the lawmaker distanced himself somewhat from a proposal, written by his staff, that would have required consumers to buy expensive digital TVs or obtain converter boxes to keep their current sets working after Dec. 31, 2006.

"There's no more dangerous place in America than getting between an American consumer and his television set," Tauzin said.

When Berman returned home this summer to find out what constituents were thinking, he was surprised to learn that outrage over his file-sharing bill was as strong, and sometimes stronger, than concerns about a possible invasion of Iraq.

"I knew this would be a controversial idea and I liked that," Berman said. "But I've been surprised at how the bill has been mischaracterized."

Lure of a Challenge

Despite the risks, politicians find entertainment-related issues hard to resist, in part because they strike a chord with voters.

"The risk is there can be repercussions if your name is attached to a plan that has gone awry," said Andy Spahn, who was an aide to former Sens. Gary Hart of Colorado and Alan Cranston of California and now handles political affairs for DreamWorks SKG. "But if you demonstrate leadership and effectiveness, it's something you can campaign on."

Rep. Rick Boucher (D-Va.) has established himself as a dependable ally of technology companies and their customers. But he faces fierce opposition from a wide array of entertainment and publishing companies for his proposed Digital Media Consumer Rights Act, which would strengthen consumer rights to make copies of songs and movies.

Sen. Orrin G. Hatch (R-Utah) is one of the architects of a 1998 law intended to make the Internet safe for copyright holders and new digital distribution businesses. The law has helped record companies in their fight against piracy, but Hatch isn't in the labels' corner now. For two years he has prodded them to embrace the Internet and treat artists better by avoiding exploitative contracts and irregular accounting for royalties. And he's losing patience.

Lawmakers probably won't pass any laws related to entertainment or media until next year. But behind-the-scenes work, lobbying and bill-drafting are underway.

Tauzin said he realized the potential for digital television while attending a Super Bowl game as a guest of Disney. During important plays, he would watch a 50-inch high-definition TV set in the luxury box rather than watch the live action.

"The picture was so much better," said Tauzin, a self-described TV addict who now has his own digital set.

Tauzin is preparing to introduce a bill that would speed the rollout of digital TV, a technology that promises richly detailed pictures, CD-quality sound and dozens of extra channels. He adopted the digital TV cause when it became clear that the major TV industries would miss the 2006 digital conversion date that was set in a 1996 law he helped write.

Getting TVs to move at "computer speed" is vital for the nation, Tauzin said, and will help spur the rollout of high-speed Internet access.

"Television has to migrate to digital," Tauzin said.

The transition to digital TV has prompted a lobbying melee among cable operators, broadcasters, set manufacturers and Hollywood studios. But such squabbling can be a boon to a Capitol Hill deal maker because it may generate heavy campaign contributions from all sides, said Larry Noble, executive director of the Center for Responsive Politics in Washington. Tauzin has received about $62,000 in contributions in the current election cycle, from 2000 to 2002, from entertainment and cable companies, and $2,000 from consumer electronics makers, the center said.

Technology Battle

Berman is trying to tackle another problem that has vexed Congress: file sharing. The recording industry says it is losing billions through the illegal online trading of copyrighted music files, but the file-swapping networks have attracted millions of young people.

His Peer-to-Peer Piracy Prevention Act would give entertainment companies more leeway to block copyrighted materials on file-sharing networks, letting them jam users' computers electronically and mount other technical counterattacks. Berman said he was attracted by the idea of allowing entertainment companies and file-sharing networks to duke it out with new kinds of technology.

But Berman's bill also may "sanction a Wild, Wild West" in which record companies and file-sharing networks unleash ever-evolving technology in which innocent consumers get hurt, warned Gigi Sohn, president of Public Knowledge, a public interest group opposed to the bill.

She noted that Warner Bros., producer of the movie "Harry Potter and the Sorcerer's Stone," increasingly relies on automated software that searches the hard drives of network users for pirated versions of the hit movie. The studio recently demanded that an Internet service provider terminate a child's account after the software program mistook the child's "Harry Potter" book report for a pirated copy of the movie.

Berman and some of his bill's co-sponsors say they have been astounded by the avalanche of criticism they have received since introducing the bill. He's been spending lots of time defending the legislation and attempting to explain to young people the harm of illegal file-sharing, including to his 22-year-old daughter.

"We talk about it, but I'm not sure I've stopped her from doing it," Berman said.

He says his staff came up with the idea for the bill, not industry groups. Still, the legislation has enhanced his standing with industry players. Berman is frequently among the top recipients of campaign contributions from Hollywood. In the current election cycle, Berman has collected $192,000 from TV, music and other media companies and their employees, according to the Center for Responsive Politics.

Another bill coveted by the entertainment industry is Hollings' proposed Consumer Broadband and Digital Television Promotion Act, which would require computer and consumer electronics manufacturers to install government-approved anti-piracy technology in digital audio and video devices. The bill is a response to demands by Hollywood studios for more protection from free swapping of films and TV programs over the Internet.

The populist Hollings is a surprising emissary for the entertainment industry on the anti-piracy front, given his battles with media conglomerates on another issue they care deeply about: relaxation of media ownership rules. Concerned that media companies are growing too large and powerful, Hollings is threatening to block the Federal Communications Commission, which his Senate Commerce Committee oversees, if the FCC moves too aggressively to lift ownership limits.

Diametrically opposed to Hollings' anti-piracy legislation, Boucher has become the technology industry's point man on fair use--the provision of copyright law that gives people some freedom to make copies of books, music and movies for personal use. Boucher on Thursday introduced a bill to ensure that copyright owners can't use the 1998 Digital Millennium Copyright Act to roll back the fair-use rights of consumers, libraries and others who buy media in digital formats.

"The fair-use debate ... is the next most important issue that we have to address," Boucher said. "Fair use is fundamental to the vibrant exercise of our democracy, because the right to speak relies upon the right to use a broad array of information."

The 1998 law makes it a crime for anyone to pick an electronic lock that controls access to a digital book, song, game or video, even if the person paid for, say, a DVD copy of "Shrek" and wanted to take a copy of the film on a trip. This anti-circumvention provision, Boucher said, has alarmed libraries, universities, telecommunications companies and electronics manufacturers, all of whom worry about the public's ability to use copyrighted material.

"Most of these [technology] companies would tell you that the single most important thing that we need to do today is achieve the broad deployment into homes and businesses of [high-speed Internet] architectures," he said. And consumers won't demand these broadband connections, Boucher said, unless they can enjoy downloadable music, movies and other material freely in their homes, cars and other places.

Songwriter's Crusade

In the post-Napster era, Hatch is the only member of Congress with multiple CDs of songs for sale online. A 26-year veteran of the Senate and a leader on copyright issues, Hatch said he started writing inspirational songs in 1995, partly because he wanted to learn more about the inner workings of the music industry.

Not long after penning his first tunes, Hatch helped push through Congress two bills designed to turn the Internet into a profitable new distribution pipeline for the record labels and other entertainment companies. The first, in 1996, created a "digital performance right" that entitled labels and artists to collect royalties from Internet radio stations. The second, the Digital Millennium Copyright Act, gave copyright owners a host of tools to combat piracy as an incentive for them to embrace the Net.

But those bills haven't borne the fruit he expected, Hatch said, despite his campaign for the record labels to "take advantage of the Internet for the benefit of artists and fans." One sore point is the fate of Napster, the pioneering and now bankrupt online file-sharing service. After being introduced to Napster in 1999, Hatch unsuccessfully pressed the labels to strike licensing deals that would transform the popular service into a legitimate business before file-sharing piracy became a global problem. Although some legitimate online music sites run by record companies are slowly gaining momentum, Hatch said, "I am disappointed that we haven't gone faster in this area."

Recently, Hatch has urged the labels to make out-of-print recordings available online and has circulated a measure that would compel the labels to give online music distributors access to those recordings, a move Hatch thinks would help artists and consumers by reviving sales of out-of-print recordings.

The Judiciary Committee hasn't been as active on music issues since Democrats took control of the Senate and the panel.

Still, Hatch said, he hopes to have more hearings next year and possibly move some legislation.

"We've got to find some way that puts incentives to the creative side of this endeavor," he said.

Sanders reported from Washington, Healey from Los Angeles.
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New York Times
Music Industry in Global Fight on Web Copies
By AMY HARMON

Having vanquished the music swapping service Napster in court, the entertainment industry is facing a formidable obstacle in pursuing its major successor, KaZaA: geography.

Sharman Networks, the distributor of the program, is incorporated in the South Pacific island nation of Vanuatu and managed from Australia. Its computer servers are in Denmark and the source code for its software was last seen in Estonia.

KaZaA's original developers, who still control the underlying technology, are thought to be living in the Netherlands although entertainment lawyers seeking to have them charged with violating United States copyright law have been unable to find them.

What KaZaA has in the United States are users millions of them downloading copyrighted music, television shows and movies 24 hours a day.

How effective are United States laws against a company that enters the country only virtually? The answer is about to unfold in a Los Angeles courtroom.

A group of recording and motion picture companies has asked a federal judge to find the custodians of KaZaA liable for contributing to copyright infringement and financially benefiting from it. If the group wins, it plans to demand an immediate injunction. Sharman would then have to stop distributing KaZaA or alter the program to block copyrighted material, which it says is not possible because of how its technology works.

Sharman asked the court last week to dismiss the case, asserting that because the company has no assets or significant business dealings in the United States, the court has no jurisdiction over it. Moreover, the company said, because the Internet does not recognize territorial boundaries, anything Sharman does with KaZaA at the behest of a judge in Los Angeles would affect 60 million users in over 150 countries. Arguments are scheduled for Nov. 18.

"What they're asking is for a court to export the strictures of U.S. copyright law worldwide," said Roderick G. Dorman, a lawyer for Sharman. "That's not permitted. These are questions of sovereignty that legislatures and diplomats need to decide."

Legal experts say the Los Angeles judge, Stephen V. Wilson of Federal District Court, may well decide his court has jurisdiction over Sharman because Americans download software from its Web site and the company makes money from showing them advertisements.

The struggle over how to apply sometimes conflicting national laws to a medium that pays little mind to geographic boundaries is likely to remain at the heart of the lawsuit, if it proceeds. While there is broad international agreement on what constitutes direct copyright infringement, the penalty for those who enable others to infringe has not yet garnered such consensus.

None of the entities being sued in association with KaZaA distribute copyrighted material themselves. Instead, the software enables millions of people to search for files on each other's personal computers when they are connected to the Internet. When a KaZaA user types the name of an artist or title into a search box, a list of matching files that other users have placed in a "shared" folder on their hard drives appears on the screen. The user can then click on an item to download a copy.

Under the copyright law of most countries, people who use software like KaZaA to download copyrighted material from each other would almost certainly be liable for infringement. The conflict is over whether distributing software that makes it easy for people to break the law is itself a copyright violation.

"The question is whether there is liability in making it possible to infringe," said Jane C. Ginsburg, a professor at Columbia University who teaches international copyright law. "If there are genuine markets for the software in different countries, it could be very difficult to figure out which law to apply."

In the Napster case, a federal appeals court in San Francisco found that the company was likely to be held liable for violating United States copyright law and ordered it to stop operating until the case could go to trial. Napster has since filed for bankruptcy and its service has been defunct for more than a year.

An appeals court in the Netherlands, however, ruled earlier this year that it was legal to distribute the KaZaA software there. "Insofar as there are acts that are relevant to copyright, such acts are performed by those who use the computer program and not by KaZaA," a translation of the court's ruling provided by Sharman's lawyers says.

That case is on appeal to the highest court of the Netherlands, but music industry lawyers say it has little bearing on the KaZaA case in Los Angeles, even if it is upheld. The global reach of the Internet, they say, does not take away the right of the United States to enforce its laws when they have an impact on its citizens, within its borders.

"The copyright industries around the world are not going to stand still and let other companies build businesses off the sweat of their brow simply because they're willing to set up shop in some other country," said Matt Oppenheim, a lawyer for the Recording Industry Association of America.

Nearly three million people typically use the KaZaA Media Desktop software at any given time, collectively providing access to half a billion files, Sharman said, roughly double Napster's usage at its peak. In addition to music, KaZaA makes it possible to trade other digital files, including pictures, text and video.

Although a vast majority of files exchanged with the software appear to be copyrighted works, people also use it to trade material that is not subject to copyright restrictions. For that reason, critics have said that banning it would unnecessarily restrict speech and technological innovation. They say Hollywood is simply trying to avoid the daunting process of pursuing individual users, and a potential public relations backlash from suing its own customers.

But the entertainment industry has so far prevailed in all of its legal actions against companies based in the United States that they have accused of contributing to infringement. Napster, Aimster and Audiogalaxy have either shut down or altered their services. Sharman's assertion that it cannot change its software to screen out copyrighted material, entertainment lawyers suggest, has more to do with the advertising revenue it would lose once people could no longer download popular music and movies than with technological reality.

Two other companies whose software enables file trading are named in the Los Angeles case. But one of those, StreamCast Networks, the distributor of a program called Morpheus, is based in the Nashville suburb of Franklin. The other, Grokster, is incorporated in the West Indies but is owned by a California family.

The difference with Sharman is that even if the entertainment companies win their lawsuit, the enforcement of any judgment may rely entirely on legal authorities in other nations, and their cooperation is not assured. Last year, for instance, a federal court in San Jose, Calif., declined to honor the judgment of a court in France that prohibited Yahoo from displaying Nazi materials to French citizens visiting its auction Web site. The court said the First Amendment principles of the United States trumped the French ruling, and it would not be enforced.

The Sharman case may well raise again the unsettled question of whether Internet companies should be forced to adhere to the laws of every country whose citizens have access to their Web sites.

Some copyright experts object to that notion, on pragmatic grounds and because they say it contradicts the Jeffersonian principle that governments derive their powers from the consent of the governed. But the alternative, for a company to be bound only by the laws of the country where it is headquartered, could lead to a race to incorporate in countries whose laws are the most lax.

Sharman officials have said that the company is registered on Vanuatu because of its favorable tax conditions, and that it will abide by the laws of Australia. Australia is one of nearly 150 countries that have signed the Bern Convention for the Protection of Literary and Artistic Works, which sets minimum levels of copyright protection.

Jurisdictional issues aside, Sharman's lawyers say that their software is fundamentally different from Napster's because the company's servers do not control a central index of what files reside on which of its users' computers. The company says that even if it ceased operations entirely, people who already have the software would be able to exchange files.

The Hollywood companies suing Sharman dispute the assertion that it has no control over the network of people who use it. Meanwhile, they are still sorting out who owns what with respect to the KaZaA program, and what continent they are on.

Nikki Hemming, the chief executive of Sharman, which is based in Sydney, Australia, is scheduled to meet with the entertainment industry's lawyers soon to give a deposition, though at the request of her lawyers, the meeting will probably take place in Canada. Niklas Zennstrom and Janis Friis, who developed the software, are being sought in Europe. And according to a lawyer for the record industry, the programmers in Estonia who once possessed a copy of the program's source code told a judge there last week that they no longer had it, but they would not say where it was.
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Wired News
Codebusters Crack Encryption Key
By Andy Patrizio


It took four years, 331,000 participants and a difficult legal case, but the relentless efforts of Distributed.net and its supporters have finally broken a 64-bit encryption key developed by RSA Data Securities.

When Distributed.net set up shop in 1997 to test various forms of encryption by essentially breaking through them, organizers figured it could take 100 years to uncover the RC5-64 sequence due to limited computer power and the fact that so many people would have to participate in the effort. Still, they forged ahead.

"We had confidence the rate would improve and that Moore's Law would help us cut down on that time," said David "Nugget" McNett, president of Distributed.net.

Not to mention a $10,000 reward put up by RSA -- along with Distributed.net and the Free Software Foundation, which provided the software used in the effort -- that would go to the person who found the secret message.

There was so much data to analyze for the project that when the key was eventually found in mid-September, McNett and his crew of participants around the world initially overlooked the winning entry. It read: "The unknown message is: Some things are better left unread."

The man who discovered the secret message used a 450-MHz Pentium II to find the solution. A resident of Tokyo, Japan, he has asked to remain anonymous.

With so much time and hardware needed to process the keyspace, it would seem that 64-bit encryption is secure, right? McNett isn't convinced. "(It's) safe for any secret that's not still a secret in two years," he said. "I certainly wouldn't use it to keep the secret formula to Coca-Cola a secret. People with secrets to keep should factor in not only the importance of the secret but the timeliness."

While the accomplishment of breaking the 64-bit encryption standard is noteworthy, there are even greater challenges ahead for Distribution.net.

Next up is breaking through RC5-72, RSA's next highest encryption key. RSA also has a 128-bit key, but trying to break a key that long is practically impossible because there are so many combinations of keys to consider, McNett said.

"Major advances would have to be made in keyrate processing before that would be even approachable," he said.

Along with SETI@Home, Distributed.net was one of the earliest distributed computing projects - so-called because it split up a massive computing problem into small, manageable pieces solved by a large number of volunteers running programs on their individual computers.

The nonprofit organization, based in Austin, Texas, relies on contributors to provide both servers and bandwidth. Two years ago, it merged with United Devices, a commercial operation that runs a distributed computing project geared toward finding cancer treatments.

During the past two years, the quest to break RC5-64 has endured its share of intrigue.

There was the legal case involving David McOwen, who was fired from his job at DeKalb Technical College and charged by the state of Georgia with putting the Distributed.net client on school computers without permission. The case outraged supporters of distributed computing projects, who raised more than half McOwen's $20,000 legal bill. The case was eventually settled.

At one point, a laptop owned by one of the project's participants was stolen. Fortunately, the thief didn't realize that a program was running in the background on the computer he had swiped. When he connected the machine to the Internet, it reconnected the laptop to the Distributed.net servers, and the organization was able to track down the thief using his IP address.

"Sort of like LoJack for the computer," chuckled McNett.
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New York Times
Protesting the Big Brother Lens, Little Brother Turns an Eye Blind
By JOHN MARKOFF

AN FRANCISCO, Oct. 6 Confronted with the unblinking eyes of surveillance cameras, Michael Naimark believes he can hide in plain sight with the aid of a $1 laser pointer.

Mr. Naimark, a Silicon Valley artist and technologist, decided to try turning the tables on what he saw as the potential for Big Brother surveillance after the Sept. 11 attacks.

His is a Little Brother response: using inexpensive laser pointers to temporarily blind those omnipresent electronic eyes. He plans to post his 13-page, single-spaced treatise on the subject this week on his Web site, www.naimark.net.

"The question `if a camera's aimed at me can I not be in the image?' became a haunting obsession," he said. "The answer is yes."

But in these security-conscious times, one person's civil liberties can be another's shortsighted anarchy.

"It's possible that Harry Potter's invisibility cloak may not be viewed as a good thing for the community," said Kevin Kelly, an editor at Wired magazine. "We have laws prohibiting jamming police radar. It will be interesting to see if camera-jamming becomes illegal."

Nonetheless, Mr. Naimark's obsession is emblematic of a national debate that is growing as video cameras proliferate a proliferation that results both from falling monitoring costs, made possible by the Internet, and increasing safety concerns in the face of crime and terrorism.

In his research, Mr. Naimark discovered that there was already military literature widely available about using lasers to blind sensors, and that it was relatively simple to become invisible in front the cameras that now watch over many public spaces in this country.

"I began by aiming an inexpensive laser pointer directly into the lens of a video camera," he writes. "The results were striking. The tiny beam neutralized regions of the camera sensor far larger than the actual size of the beam. Properly aimed, it could block a far-away camera from seeing anything inside of a large window."

While Mr. Naimark acknowledged that he had some ethical discomfort about his project because his information could be useful to terrorists, he decided to go ahead.

"My interest and motivation is to provide the creative community with some stimulating and provoking stuff," he writes. "These are stimulating and provoking times."

In recent weeks there have been a growing number of incidents involving video-surveillance cameras, ranging from the mother who recently surrendered after she was recorded hitting her 4-year-old daughter in an Indiana parking lot to a man who filed a $1.5 million lawsuit against the Marriott hotel chain last month after discovering a video camera hidden in a bathroom light fixture.

The growing reliance on surveillance is giving some of the pioneers of the video camera industry second thoughts.

"I have lots of worries about how this technology is being used," said John Graham, who is the founder of BroadWare Technologies, a Cupertino, Calif., maker of software for video-camera networks, and who was one of the first researchers to send audio and video over the Internet.

"I've become Big Brother, but I didn't mean to be," Mr. Graham said. "It's just that there's no money in education or scientific collaboration."

The rush to surveillance in the wake of Sept. 11 is revitalizing a growing group of civil liberties activists who, like Mr. Naimark, are determined to limit the spread of networks of inexpensive video cameras that are appearing in virtually all public spaces.

In New York City, the Surveillance Camera Players, a guerrilla theatre troupe, is placing hand-drawn maps of video camera locations on the Internet and staging brief politically inspired performances in front of the cameras.

The group was co-founded by Bill Brown, an American literature scholar, who said the troupe was sympathetic to Mr. Naimark's opposition to the ubiquitous video eyes but took a different tack, highlighting the emerging surveillance world through a series of street parodies.

"His methods are quite different from ours," Mr. Brown said. "We're philosophical anarchists. We never engage in illegal activity, but we believe the greatest weakness of those who operate the surveillance systems is that they require secrecy."

One person who said he occasionally sees Mr. Brown's group perform is Brian Curry, the chief executive and founder of EarthCam, based in New York City, which makes surveillance camera systems and operates a network of seven cameras aimed at Times Square that constantly beam video images over the Internet.

His Web site, www.earthcam.com, attracts 50,000 to 75,000 visitors each day, Mr. Curry said, and he frequently sees people standing in Times Square waving at his cameras while they talk on their cellphones.

"We're offering a window on the world that is very much like sitting in a restaurant and looking out on the street," he said. "To try to inhibit this by saying it represents a brave new society where people are losing their privacy is far-fetched."

EarthCam's business changed after Sept. 11, he said, because there was an increased reluctance to travel and more interest in using video cameras rather than personal visits.

He also argued that the Internet video camera fills a social role in a changing society where people no longer know their neighbors, taking the place of the neighbor who would keep an vigilant eye on a neighborhood.

"People move a lot, and they're not home a lot," he said. "Internet cameras have helped fill the gap."

Indeed for some, the Internet camera is a step toward a global village. Gregory P. Galanos of Mobius Venture Capital in Silicon Valley now keeps a remote eye on his second home on a Greek island, where he has installed four cameras that send pictures over the Internet each hour. He can see ships passing and watch workers remodeling his home. "It gives me peace of mind," he said.

That is not the view of a group of privacy advocates in Washington, who are suing the Metropolitan Police Department under the Freedom of Information Act to force disclosure of technical information about a network of video cameras that has been established in the city.

The value of video cameras to improve safety and detect terrorists has been greatly overrated, according to Marc Rotenberg, the executive director of the Electronic Privacy Information Center, a nonprofit advocacy group based in Washington.

Like the Surveillance Camera Players, Mr. Rotenberg said he worries that while Internet-viewable cameras might offer entertainment, there are other networks of private and law enforcement cameras that collect information secretly on behalf of the government.

"There has been a reduction in privacy and there has been an expansion in government secrecy," he said. "We give up our privacy, but we don't gain openness in exchange."

That view contrasts sharply with that of David Brin, a physicist and author who has argued that universally accessible cameras will increase transparency in modern society without encroaching on traditional civil liberties.

"My metaphor is that databases are expansions of human memory and the cameras are the extension of human vision," he said, adding that the challenge is to make certain that new laws have provisions for "watching the watchers."

Such a viewpoint upsets other civil libertarians, who see the growing encroachment of video cameras as simply deepening the power of law enforcement and society's elites.

"I sometimes wonder if I'm living on the same planet as David Brin," said Philip E. Agre, an associate professor of information studies at the University of California at Los Angeles. "Everyone can watch the common people, but that has nothing to do with the political question of who can watch the powerful."

Mr. Naimark, the artist who believes he can disable security monitors, said he would be satisfied if he stirred debate on surveillance.

"One role of the artist in the contemporary world is to hold a mirror up to society," he said. "The artist is a social critic, and the artistic angle is in exposing and revealing and provoking things."
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Associated Press
Russian Hacker Sentenced to 3 Years
Sat Oct 5, 3:39 AM ET


SEATTLE (AP) - A Russian man snared in an FBI ( news - web sites) scheme to catch computer hackers has been sentenced to three years in prison for convictions on 20 counts of conspiracy, fraud and related computer crimes.



Vasily Gorshkov, 27, of Chelyabinsk, Russia, was also ordered by U.S. District Judge John Coughenour to pay restitution of nearly $700,000 for losses he caused to Speakeasy Network of Seattle, and the online credit card payment company PayPal of Palo Alto, Calif., U.S. Attorney John McKay said Friday.

Gorshkov was one of two men from his home town persuaded to travel to the United States as part of an FBI probe into Russian computer intrusions directed at Internet Service Providers, e-commerce sites and online banks in the United States.

The FBI set up a bogus Seattle computer security company called Invita Security to snag the hackers, inviting them to demonstrate their skills. They arrived Nov. 10, 2000, and met with undercover FBI agents, ostensibly to discuss a partnership.

Gorshkov discussed their hacking prowess at that videotaped meeting and took responsibility for various hacking activities, the U.S. attorney said in a statement. Gorshkov shrugged off any concern about the FBI, saying the agency could not get them in Russia.

As the Russians demonstrated their skills at the shell company, the FBI used what amounted to computer eavesdropping to gather the tools it needed to reach across the Internet and break into their computer system in Russia.

The men were arrested after the meeting.

Alexey Ivanov, 23, was transported to Connecticut to face charges in a computer intrusion at the Online Information Bureau of Vernon, Conn. The status of his case was not immediately known late Friday.
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Federal Computer Week
Army looking to outsource
BY Dan Caterinicchia
Oct. 4, 2002


Army Secretary Thomas White said the service cannot truly transform unless its business processes are part of the plan. Therefore, he said the Army will "privatize every non-core function" that it can develop a good business case for including information technology and communications positions.

The Army already has begun the outsourcing process for work on its family housing units some of which are in decrepit condition and will spend $700 million to privatize that area in fiscal 2003, with work to be completed by 2007, White said. He added that any non-core IT and communications functions also could be outsourced.

"We're already doing that business with [the Defense Information Systems Agency], where roughly 85 percent of the work is outsourced," White told Federal Computer Week immediately following an Oct. 3 luncheon speech sponsored by the Washington, D.C., chapter of the Armed Forces Communications and Electronics Association.

The decision to privatize any IT or communications areas would be made by the Army's new Network Enterprise Technology Command (Netcom), White told FCW, but "anytime we can take a non-core function and get a value proposition for it, we'll do it."

Netcom, which officially launched Oct. 1, was created to manage the Army's IT and networks enterprisewide.

Most of White's speech focused on the Army's ongoing transformation and transition to the Objective Force, which will transform the service's forces to make them better able to survive an all-out fight.

Employing a popular business term, White said the quality of the Army's personnel is the key to maintaining a "sustainable competitive advantage" as the world's premier Army. "And whether we leverage that with technology is really the challenge of transformation," he said.
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Federal Computer Week
Homeland proposal up in air
BY Judi Hasson
Oct. 7, 2002


President Bush's plan to reorganize the federal government with the creation of the Homeland Security Department has stalled due to a dispute over union membership and other protections for federal employees who will work there.

Although the legislation moved quickly through the House, the Senate has not been able to reach an agreement about the rights of 170,000 workers who would move into the new department from various agencies, including the Customs Service, the Immigration and Naturalization Service and the Coast Guard.

Bush wants more flexibility in managing those workers, including removing them from unions if they are involved in homeland security-related work. However, the Senate has resisted such changes.

With only a few days left until the Senate recess, lawmakers said Oct. 1 that it was extremely unlikely that Congress would complete work on the legislation before the November elections.

"The bill's on a life-support system," said Sen. Fred Thompson (R-Tenn.).

The reorganization would be the biggest for the federal government since 1947 when the War Department was renamed the Defense Department and would limit the power of some agencies in their traditional roles.

Sen. Zell Miller (D-Ga.) said the public would have some very tough questions if another terrorist attack were to occur and the United States did not have the department in place. "There's going to be a lot of second-guessing," he said. "Why? Why in the world did you put workers' protection above the protection of American lives?"
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Federal Computer Week
NIMA center to set geospatial standards
NCGIS reflects agency's new role as information resource
BY Dan Caterinicchia
Oct. 7, 2002


The National Imagery and Mapping Agency is establishing a center to address standards and interoperability issues related to technologies, data architecture and software used by the private sector and the defense, intelligence and homeland security communities.

The National Center for Geospatial Intelligence Standards (NCGIS) will oversee NIMA's evolution toward an enterprisewide standards management policy for the National System for Geospatial Intelligence, said retired Air Force Lt. Gen. James Clapper, NIMA's director.

Teri Dempsey, NIMA's chief geospatial intelligence standards officer, will lead NCGIS. The center will help ensure a standards-based approach essential for interoperability. Center officials hope to boost interoperability:

* Among traditional military service and command users of geospatial intelligence.

* For operational plans that include international partners, as well as the agency's domestic counterparts.

* Across the geospatial intelligence enterprise, which includes imagery, imagery intelligence and geospatial information produced by NIMA, as well as in collaboration with other nations and the private sector.

* Throughout the numerous components of tools, equipment, training and people that form the national system.

NIMA is moving away from developing products and instead will focus on providing information, Dempsey said. Therefore, setting geospatial standards becomes essential. The standards center will help provide the flexibility and fiscal oversight necessary to ensure that its customers' geospatial intelligence needs are met without duplicating efforts from government and commercial entities, Dempsey said.

"The goal is increased data interoperability and a lot of that is behind the scenes, modeling different types of data," she said during a Sept. 30 interview with Federal Computer Week. As the chief geospatial intelligence officer, Dempsey is the single point of contact for all standards activities within NIMA, the Defense Department and the intelligence community.

Mark Reichardt, executive director for outreach and community adoption at the Open GIS Consortium Inc. (OGC), said that NIMA has been an OGC member for years and is heavily involved in creating standards for interoperability with industry.

"This is the next step, focusing resources and priorities toward making sure they are working with the various standards organizations to reach their goals," Reichardt said.

Dempsey said the new center should be operational by early next year. A draft memorandum is under review and briefings are scheduled for mid-October with senior management officials in participating agencies and companies to gather their input before the center's launch.

An integrated product team, composed of NIMA's internal and external customers, will then be launched and will run through early spring to further refine customer input into how the center should operate, she said.

John Pike, director of GlobalSecurity.org, which monitors space and military programs, said he was surprised that it has taken NIMA this long to establish the standards center.

"I would have thought that NIMA would have already implemented the organization needed to continue the standardization work begun by the Central Imagery Office," one of the agency's predecessors, Pike said.

"The problem is that the underlying technology continues to evolve, and so there is an ongoing need for the standards established by NIMA to evolve," he said. "With the impending transition to the Future Imagery Architecture...there would surely be a need for NIMA to get their ducks lined up, lest they be swamped by a torrent of pixels."

The center will be headquartered in Sterling, Va., for about three years. After that, the center's location will be determined as part of NIMA's overall reorganization.

NCGIS will add about four permanent government employees to the agency's existing 20 standards development personnel and also augment their staff with five to 10 contract employees, Dempsey said, adding that the center's funding will be part of the overall multimillion-dollar standards budget.

***

NCGIS goals

The National Center for Geospatial Intelligence Standards has three immediate priorities:

* Establishing how to assign Extensible Markup Language (XML) tags to critical data so the National Imagery and Mapping Agency can use commercial software when available.

* Creating a Geographic Markup Language to include the catalog-type data that XML can tag as well as content.

* Reviewing and consolidating NIMA's numerous formats, and deciding which, if any, should continue to be used or if commercial packages are better.
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Federal Computer Week
When duty calls Brenton Greene's priorities are the country's priorities
BY Dan Caterinicchia
Oct. 7, 2002


It's easy for people to say they are committed to making the United States a safer place to live, but it's often more difficult to actually do it. Unless you're Brenton Greene.

As deputy manager of the National Communications System (NCS), Greene manages the nation's emergency communications capabilities an increasingly important responsibility since last year's Sept. 11 terrorist attacks, which illuminated the vulnerability of the country's communications systems.

But a look at his résumé which includes helping develop a national policy on critical infrastructure protection and commanding nuclear attack submarines proves that Greene's commitment to his country is not new.

Maybe that's why his current job is a good fit. NCS, which is co-managed by the White House and the Defense Information Systems Agency, assists the president, the National Security Council and federal agencies with their telecommunications functions and coordinates the government's national security and emergency preparedness communications.

NCS comprises 22 different agencies as well as the Government Emergency Telecommunications Service, which prioritizes access for government workers, and the emerging Wireless Priority Service (WPS), which makes it easier for national security officials and first responders equipped with special phones to make emergency calls.

Government officials have been pushing for the establishment of WPS since the terrorist attacks wreaked havoc on wireless telephone networks, and Greene said the agency's top priority is establishing a successful initial operating capability for the system.

"It's moving ahead exceptionally well today, and the national footprint for the initial capability should be in place by December of this year," Greene said. T-Mobile USA Inc. (formerly VoiceStream) will support the system, but the goal is to also include other wireless providers by the time the system is completed at the end of 2003, he added.

"We want to have all the major carriers engaging in the program. That's in the national best interest, but also requires more funding."

Air Force Lt. Gen. Harry Raduege Jr., who is the director of DISA and worked with Greene before he started at NCS in April 2001, said he was excited to see his old colleague come on board.

"He is a visionary who has the ability to look beyond today's environment and plan for the future," Raduege said. "He transformed the NCS organizational structure, working hard to ensure that the National Communications System remained a relevant force in the national security/emergency preparedness arena in today's rapidly changing environment."

A large part of that changing environment is NCS' impending move to the proposed Homeland Security Department. Greene said he has been working closely with the transition-planning group from the proposed department and also has been collaborating with representatives from other affected agencies, including the National Infrastructure Protection Center, the Critical Infrastructure Assurance Office and the General Services Administration's Federal Computer Incident Response Center.

"We started meeting together to ensure we were integrating interagency capabilities to support" the proposed department, Greene said, adding that he and other representatives did not wait to be told to start talking, but were already collaborating when the transition team came calling.

Greene said once the legislation is in place to launch the new department, there will be a "whole lot of capabilities in place on Day One" thanks to the "tremendous range of national-level capabilities" that NCS offers. "The key element is that none of these elements are lost."

Raduege is convinced that based on Greene's track record, including his performance following last year's terrorist attacks, NCS' transition to the new department is in good hands.

"He continues to work tirelessly to ensure that the NCS will do everything necessary to provide the emergency communication needs of our nation," Raduege said.

When Greene isn't busy worrying about the nation's emergency communications needs which he admits isn't often enough he enjoys spending time with his wife, Debra, and their two sons, Andrew, 11, and Adam, 7. Greene's hobbies include fly-fishing and hiking, although "it's sometimes challenging to find the time. I'm starting to enjoy doing them with my sons."

"I have a passion for national security work, and sometimes I don't feel I devote as much time as I want to my family," Greene said. "It's a tough trade-off and balance."

The 53-year-old said retirement isn't in the cards. "Hey, I'm still young," he said. Considering that his family is among the millions of people he helps protect, it's easy to understand his devotion.

"Running the day-to-day operations of NCS is the opportunity to make a difference and advance a number of national capabilities that really support our homeland security needs, protection of our society and all that's important," Greene said.

***

The Brenton Greene file

Position: Deputy manager of the National Communications System.

Résumé: Previously managed critical infrastructure protection programs for Sandia National Laboratories. His work establishing and serving as commissioner of the President's Commission on Critical Infrastructure Protection (1996-97) earned him a Secretary of Defense Medal for Outstanding Public Service. Created the Defense Department's Infrastructure Policy Directorate and was its first director.

Military career: Graduated from the U.S. Naval Academy in 1971 and was commander of two nuclear attack submarines, USS Skipjack and USS Hyman G. Rickover.

Proudest moment: In addition to his family and his distinguished military career, Greene is most proud of taking part in DOD's critical infrastructure protection efforts. "I'm extremely proud of what we did there, and the significance today is a lot greater than when we were doing it," he said.
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USA Today
Web site takes copyright fight to the Supreme Court


LOS ANGELES (AP) Mickey Mouse's days at Disney could be numbered and paying royalties for warbling George Gershwin tunes could become a thing of the past if the U.S. Supreme Court sides with an Internet publisher in a landmark copyright case this week.

The high court will hear the case Wednesday that could plunge the earliest images of Disney's mascot and other closely held creative property into the public domain as early as next year.

If upheld, the precedent-setting challenge could cost movie studios and heirs of authors and composers millions of dollars in revenue as previously protected material becomes available free of charge.

At issue is a 1998 law that extended copyright protection an additional 20 years for cultural works, thereby protecting movies, plays, books and music for a total of 70 years after the author's death or for 95 years from publication for works created by or for corporations.

The law was almost immediately challenged by Stanford University law professor Lawrence Lessig on behalf of Eric Eldred, who had been posting work by Nathaniel Hawthorne, Henry James and others on his Web site.

The plaintiffs lost their case at trial and then on appeal but stunned many observers by persuading the Supreme Court to hear the case.

"Nobody has ever attacked the extension of copyright before," said Lionel Sobel, editor of the Entertainment Law Review. He said the Internet has pumped up the demand for images that are now protected.

"Now we have thousands of people who want to create a Web site and would like to have ready access to a whole library of materials," Sobel said.

The Copyright Term Extension Act of 1998 was sponsored by late Rep. Sonny Bono and quickly became known as the "Mickey Mouse Extension Act" because of aggressive lobbying by Disney, whose earliest representations of its squeaky-voiced mascot were set to pass into the public domain in 2003.

The impact of the law extends far beyond corporations. Small music publishers, orchestras and even church choirs that can't afford to pay high royalties to perform some pieces said they suffer by having to wait an additional 20 years for copyrights to expire.

Compositions such as Gershwin's Rhapsody in Blue, which would have passed into the public domain in 1998, now are protected until 2018 at least. Books by Ernest Hemingway and F. Scott Fitzgerald also were due to become public property.

Lessig claims Congress acted unconstitutionally by extending copyright protection 11 times over the past 40 years. The plaintiffs contend the Constitution grants Congress the right to grant copyright protection for a limited time and that the Founding Fathers intended for copyrights to expire so works could enter the public domain and spark new creative efforts to update them.

The plaintiffs also claim that by extending copyright protection retroactively, Congress has in effect made copyright perpetual largely in response to corporate pressure.

The government and groups representing movie studios and record labels argue that the Constitution gives Congress, not the courts, the job of balancing the needs of copyright holders and the public, especially in the face of new technology.

Backers of the extension also argue that the Internet and digital reproduction of movies and music threaten the economic viability of creating those works, thus requiring greater protection.

"This is essentially a dispute about policy dressed up as a Constitutional question," The Walt Disney Co. said in a statement. "Eldred is simply trying to second-guess what Congress has already decided, and we believe the Supreme Court should reject their attempt."

Disney has come under special criticism because the company reaped a fortune making films from such public domain fairy tale characters as "Snow White" and "Cinderella," but is fighting to prevent others from doing the same with characters like Mickey Mouse and Donald Duck.

Legal experts said it would be unlikely that Disney and other companies would suffer immediate harm if copyrights expire on their movies and characters.

Mickey Mouse, for instance, is not only a character but a corporate trademark, which never expire as long as they are in use.

Only the copyright on the Mickey portrayed in Disney's earliest films, such as 1928's Steamboat Willie, would expire in the next few years. The more rounded, modern mouse familiar today is a later creation and would remain protected for several more years.
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Info World
Study: National security needs more IT, defined powers
By Scarlet Pruitt
October 7, 2002 9:10 am PT


FUTURE EFFORTS TO combat domestic terrorism should utilize more information technology and separate information collection and law enforcement powers in order to ensure a more transparent legal process, a national security task force concluded in a report released Monday.
[Story see: http://www.infoworld.com/articles/hn/xml/02/10/07/021007hnsecurenation.xml?s=IDGNS]


The report can be found at: http://www.markletaskforce.org/
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Wired News
Hackware Author Arrested -- Maybe
By Brian McWilliams

When Scotland Yard jubilantly announced the arrest of a London-based malware author nicknamed Torner last month, most Internet users probably drew a blank.

After all, Torner's Linux-based Tornkit hacking program was hardly in the same league as Melissa or Love Bug, the mainstream Windows worms created by David Smith and Onel de Guzman, respectively.

But to Teresa Hall and a group of other system administrators and Internet users, Torner was public enemy No. 1.

"He was a cyberterrorist ... an abuser and a low human," said Hall, a Tennessee grandmother of three who volunteers as an operator for IRCnet, an Internet relay chat network where Torner and his crew ran wild for much of 2000 and 2001, according to Hall.

Hall and her fellow "IRCops" contend that Torner not only wrote Tornkit -- a "rootkit" program that lets a computer cracker take control of a compromised Linux computer without being detected -- but also that Torner and his cohorts were the program's most active users.

"Everybody knew that they were running a huge DDoSnet, built using Tornkit," said Tony den Haan, operator of an IRCnet chat channel devoted to Linux that den Haan said was repeatedly brought down by distributed denial-of-service (DDoS) attacks.

What's more, Torner's victims allege that the hacker headed up the X-Org Web defacement group and that he was one of the founders of Fluffy Bunny, a notorious hacking crew that vandalized numerous high-profile websites.

A Scotland Yard spokesman would not comment on the allegations against Torner. In fact, authorities have not yet identified or even charged the 21-year-old man arrested on Sept. 17 at his home in the swank Thames-side neighborhood of Surbiton.

But Hall said Torner essentially confessed to her and others, brazenly announcing when he was about to launch a DDoS attack, and even revealing his true identity and posting pictures of himself with other hackers on the Web.

As a result, Torner's trackers said they were able to deliver him to law enforcement last year on a platter -- actually on a CD-ROM containing chat log files, Web pages, photos and other evidence. Included among the files was a list of dozens of systems the group claims Torner and associates compromised.

But not everyone who has encountered Torner or his gang considers them worthy of the Internet's most-wanted list.

"The fact that some of them manage to root insecure boxes does not make them unique," said Johan Boger, an IRCnet coordinator. "There are far more organized hacker groups out there."

Indeed, news of the arrest of Tornkit's alleged author has caused some hand-wringing among security researchers. They fear police may have overreacted by hauling in a hacker on charges of merely writing a potentially malicious program.

A German security expert who uses the nickname Mixter, however, noted that Tornkit contained "back doors," so that whenever a cracker used it to "root" a computer, Torn and his friends secretly gained control of it.


"Torner has been a black hat all the way ... this is something that clearly should be prosecuted," said Mixter.


An analysis of Tornkit posted online in 2001 concurred. The author of the document, a hacker who uses the nickname Mostarac, said the program's secret back doors appear to send information back to Torn whenever Tornkit is installed on a compromised computer.

Detective Constable Andrew Crocker, head of the computer crime squad of the Surrey police, confirmed that the unit is investigating "numerous cases where the Torn rootkit has been used." But Crocker refused to comment specifically on the Torner case.

According to Hall, Surrey police have privately confirmed what the hacker revealed to her -- that Torner was the online handle used by Samir Rana, a London resident who is the grandson of Talat Mahmood, a popular singer from India.

Joshua Dodds, a Torner associate who uses the hacker alias AnnihilaT, and who is listed in Tornkit's Read Me file, confirmed in an online chat interview last week that Torner owned the pink stuffed toy depicted in website defacements by Fluffy Bunny.

And in its August 2001 defacement of CNN's N-tv.de site, Fluffy Bunny included a greeting to Richard Brownhall, a Surrey police agent who had previously led the investigation into X-Org.

The London man arrested for writing Tornkit is currently free on bail, which does not involve a financial commitment, according to Scotland Yard. The suspect is scheduled to return Oct. 29 for more police interviews and possible charges.
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Lillie Coney
Public Policy Coordinator
U.S. Association for Computing Machinery
Suite 510
2120 L Street, NW
Washington, D.C. 20037
202-478-6124
lillie.coney@xxxxxxx