Clips June 25, 2003

[Lillie Coney <lillie.coney@xxxxxxx>]

Clips June 25, 2003

ARTICLES

U.S. Court Limits Defamation Scope in Internet Case
Filters May Affect Internet Access Gap 
Verizon Backs Portability Of Phone Numbers 
FTC to get MA. do-not-call list
Man sentenced for scheme to steal chips from Compaq
Weird web data foxes experts
 Survey: New Internet Privacy Laws Needed


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Reuters
U.S. Court Limits Defamation Scope in Internet Case
Tue Jun 24, 9:44 PM ET

SAN FRANCISCO (Reuters) - In what was hailed as a victory for free speech on the Internet, a U.S. appeals court ruled on Tuesday that a person who distributes another's e-mail cannot be sued for libel based on its content.


The case involved a handyman, Robert Smith, who heard one of his clients say she was the granddaughter of one of "Adolf Hitler's right-hand men." After he overheard Ellen Batzel claim to be related to Gestapo chief Heinrich Himmler, he came to believe that the paintings in her home were stolen. 


Smith then wrote an e-mail to Ton Cremers at the Museum Security Network site in Amsterdam. "I believe these paintings were looted during World War II and are the rightful legacy of the Jewish people," he wrote. 


After making some minor changes, Cremers included the e-mail in a mailing to hundreds of museum security officials. Smith later said he did not want the e-mail sent. 


Batzel sued Smith and the Netherlands Museum Association for defamation, saying she was not a Nazi descendant and did not inherit any art. 


In a complex decision, the 9th Circuit Court of Appeals, the nation's largest appeals court, cited a decision by the U.S. Congress to immunize liability for defamation to providers and users of the Internet when the content is provided by someone else. 


"Because Cremers did no more than select and make minor alterations to Smith's e-mail, Cremers cannot be considered the content provider of Smith's e-mail," a three-judge panel ruled. 


"We therefore hold that a service provider or user is immune from liability ... when a third person or entity that created or developed the information in question furnished it to the provider or user under circumstances in which a reasonable person in the position of the service provider would conclude that the information was provided for publication on the Internet." 


The consumer advocacy group Public Citizen, which had urged the court to allow people to operate computer bulletin boards and mailing lists without liability for their content, hailed the decision as "a major victory for free speech on the Internet."
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Associated Press
Filters May Affect Internet Access Gap 
Wed Jun 25,12:28 PM ET
By ANICK JESDANUN, AP Internet Writer 

NEW YORK - A pregnant teenager dependent on her library's Internet terminals is apt to find some sites that discuss abortion blocked now that the Supreme Court has endorsed software filters for computers at public libraries.


Or perhaps a student is researching gay rights for a high school assignment. He has no computer at home, and the ones at his school and library block many sites on the topic. He turns in an incomplete report. 


Monday's decision to uphold filtering requirements in libraries could hurt efforts to equalize access to the Internet among Americans. 


Minorities and low-income Americans, who are more likely to log on solely at libraries, could face an incomplete Internet because of filters that block out material on abortion, gay rights and a host of other topics besides porn. 


"It is yet another obstacle for low-income Americans to having the same kind of access and the same kind of information resources and awareness that their more well-to-do peers have," said Andy Carvin, senior associate at the Benton Foundation, a Washington, D.C., organization that studies Internet access. 


Under the law the high court affirmed, libraries must block pornography to receive certain federal technology grants. 


But the available software filters make mistakes and often block legitimate sites. House Majority Leader Dick Armey is among owners of Web sites that, though lacking anything pornographic, have at one time been filtered out. 


Many librarians plan to reject federal funding to keep unfiltered access, but poorer communities cannot afford to do so, said Judith Klug of the American Library Association. And those communities, she said, are where Americans most depend on libraries for Internet access. 


According to the Commerce Department (news - web sites), 10 percent of Internet users get access through a library. Blacks and Hispanics are more likely than whites and Asians to be in that group. 


And while 13 percent of white library users have no other access at home, work or school, 16 percent of Hispanics and 19 percent of blacks have a similar dependence on libraries. 


The Commerce report, from February 2002, also found that the lower the household income, the more likely a person is to depend on the library for Internet access. 


Klug said the filtering law puts librarians in "a position of punishing people who are poor." 


Vendors of filtering software acknowledge the flaws, but they say librarians can unblock filters upon request  a right the Supreme Court affirmed, at least for adult patrons. Susan Getgood, senior vice president at SurfControl Inc., said filters are merely tools for implementing policies the libraries develop themselves. 


David Miller, a spokesman for Family Friendly Libraries in Cincinnati, said Internet searches typically return "more material than any one person can read," so there's no harm even if an occasional site gets mistakenly blocked. 


A study from the Kaiser Family Foundation, a nonprofit research organization on health care, found that at the least-aggressive levels, filtering software blocked only 1 percent of health sites surveyed and 9 percent of sites specifically on sexual health. 


Some library patrons say they don't mind asking a librarian to unblock sites when mistakes are made. Del Hewitt, 28, understands the objectives. 


"If you want to look at porn, you should go somewhere else," Hewitt said, logging on at lunch time from a terminal at Atlanta-Fulton Public Library. "This isn't the place to do it." 

   



But "it would be embarrassing to have to go up and tell them what you're looking at, even if it is for research purposes," said Wanda Lugo, 31, who lives in a lower-income Boston neighborhood and has no other Internet access. 

Library officials say unblocking sites would be labor intensive and divert their computing staffs from such tasks as teaching senior citizens how to get online and children how to research. 

And patrons may not even know that information is being blocked and thus would not know to ask  a point noted by Justice John Paul Stevens (news - web sites) in his dissent. 

Furthermore, both the law and the high court ruling are silent on when, if ever, librarians may disable filters for minors. 

Nonetheless, the law could have one bright spot for bridging the digital divide, said Stefaan Verhulst, chief of research at the Markle Foundation, which studies policies on information technology. 

"The counter argument might be that filtering might increase the confidence among parents," he said, making them more willing to send kids to library computers unsupervised.
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Washington Post
Verizon Backs Portability Of Phone Numbers 
By Yuki Noguchi
Wednesday, June 25, 2003; Page E01 

Verizon Wireless Inc., the country's largest wireless phone company, said yesterday that it will no longer oppose a federal rule allowing customers to keep their old phone numbers when switching carriers.

Most other cell-phone companies continue to oppose the rule, which is to go into effect Nov. 24. Verizon said it won't charge customers who want to keep their numbers when they switch to or from its service, but it later might add 10 to 15 cents a month to all of its bills to cover costs. 

Phone-number portability won't affect the long-term contracts that customers sign with wireless providers. Companies may still impose fees for breaking the one- or two-year contracts common in the industry.

Still, such a change would be welcome for people like Odenton, Md., resident Brad Kragness.

"I'm in sales, and all my customers have my number, so I'm locked into my provider right now," he said yesterday. In the past three years, he said, he has considered changing his cellular provider five times but decided against it because it would be too much of a hassle.

Such consumer sentiment apparently got through to Verizon.

"Let's -- as an industry -- stop moaning and groaning about it. Our government has spoken, and our customers tell us they want it. Let's clear the decks and get it done," Verizon president and chief executive Dennis F. Strigl said in a speech yesterday at a market research conference in New York. The industry has vociferously opposed the Federal Communications Commission mandate. Phone companies have delayed implementation of the rule by arguing that it's too complicated and expensive and would worsen competitive pressures.

This month, the U.S. Court of Appeals for the District of Columbia dismissed a lawsuit attempting to delay the rule further. The industry's trade group, the Cellular Telecommunications and Internet Association, plans to challenge that decision, even without the support of Verizon.

Strigl said in an interview that he has personally received more than 100 requests from customers who want to be able to keep their numbers. 

"I truly have had friends, customers, tell me that this is a need that they'd like to have. It's the right thing to do," he said. "I think the industry stands to gain." 

Millions of people want to keep their cell phone numbers, said Chris Murray, a spokesman for Consumers Union, the nonprofit company that publishes Consumer Reports magazine.

"This issue has generated more consumer interest than any other issue I work on," Murray said. "It's Economics 101. You make a more competitive market, and consumers get better quality of service, and better prices."

The FCC needs to set clearer guidelines, the trade group said. For example, Larson said, rules governing the transfer of land-line numbers to wireless accounts are not clear. If they are not established by Labor Day, the group will request another delay, he said.

Other wireless companies are preparing for a loss by collectively spending about $1 billion to comply with the rule while continuing to fight it, said Jennifer Bowcock, a spokeswoman for Cingular Wireless. 

Verizon said it already has spent about $60 million. It is hiring and training 450 call-center workers who will work out of an office dedicated to transferring customers, said Jeffrey Nelson, a Verizon spokesman. 

Six percent of cell-phone users would switch service the day after companies permit them to keep their numbers, according to a survey released last week by the Management Network Group Inc., a consulting firm. Of those surveyed, 27 percent said they would switch providers as soon as they received better offers.

Ten million to 12 million more people per year will switch carriers if they can keep their numbers, said Roger Entner, an analyst with the Yankee Group, a market research firm. Currently, he said, about 45 million customers change providers and phone numbers in a year.

Verizon's switch is significant, an analyst said.

"This was effectively Verizon throwing up the white flag; some of the challenges have lost steam," said Craig Mallitz of Legg Mason Wood Walker. It seemed inevitable that industry wouldn't succeed in further delays, but "it's a surprise to me that Verizon wants to be such a nice guy," he said.

"Consumers will finally be able to leave their provider for one that's better and cheaper," said Jessica Zufolo, legislative director for the National Association of Regulatory Utility Commissioners, which represents state regulatory officials.

Leap Wireless, the ninth-largest wireless company, which operates in 20 states, has never opposed the FCC mandate.
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Boston Globe
FTC to get Mass. do-not-call list
1.2 million numbers from state will be added automatically
By Bruce Mohl, Globe Staff, 6/25/2003

Massachusetts officials are making it easy for consumers to bolster their defenses against telemarketers by automatically adding the 1.2 million phone numbers on the state's do-not-call list to the federal list set to launch next month.

The Federal Trade Commission has stepped up its rollout of a national do-not-call list, with Internet sign-ups slated to start July 1 and telephone sign-ups to begin about a week later in most eastern states. Telemarketers will be required to stop calling phone numbers on the list starting Oct. 1.

The federal and state laws covering telemarketing calls are similar, but the federal law is perceived as weaker because it only covers calls between states and exempts a number of industries, including airlines, phone companies, banks, savings and loans, credit card companies, brokerage houses, and insurance firms.

One weakness of the state list is the absence of any additional funds for enforcement. Attorney General Thomas F. Reilly is charged with prosecuting companies that violate the law, but he has been given no extra money for the job.

Yesterday's announcement by the state Office of Consumer Affairs means state residents who have already signed up for the Massachusetts list won't have to sign up for the federal list, but will have their numbers automatically added. A spokeswoman for the Consumer Affairs office said the process will not work in reverse, with those who sign up for the federal list automatically enrolled on the state list.

The state's list became effective April 1 and most consumers have noticed a substantial drop in telemarketing calls. The 1.2 million phone lines on the do-not-call list represent nearly half of the residential phone lines in the state.

The state and federal laws bar many but not all telemarketing calls. Exemptions are granted for telemarketing calls trying to arrange a face-to-face meeting, for calls from political and nonprofit organizations, and for calls from companies that have or have had a business relationship with the consumer in the past 24 months.

Massachusetts can register for the state list at www.mass.gov/

donotcall or by calling toll-free (866) 231-2255. Similar information for the federal list is not available yet. Bruce Mohl can be reached at mohl@xxxxxxxxxx
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USA Today
Man sentenced for scheme to steal chips from Compaq
Posted 6/24/2003 3:02 PM

HOUSTON (AP)  A Houston man has been sentenced to four years and three months in federal prison for his role in a multimillion-dollar scheme to steal microprocessors from Compaq and resell them in California. 
Former Compaq employee Delynn Montell Smith, 39, who pleaded guilty last Aug. 12 to conspiracy to transport stolen property and the interstate transportation of stolen property, was handed his punishment Monday by U.S. District Judge Vanessa Gilmore. 

Gilmore ordered Smith to forfeit four luxury cars and more than $800,000 in cash. She also ordered him to pay nearly $2.5 million in restitution to St. Paul Insurance Co. and nearly $1.9 million to Hewlett-Packard, which bought Compaq after the thefts. 

According to prosecutors, Smith smuggled Intel Pentium II and Pentium III chips from Compaq's campus northwest of Houston to co-defendant Dwayne Patterson in Long Beach, Calif., between January 1998 and November 2000. 

The government says Smith and Patterson formed a California business called Millenium Exchange Solutions to sell the microprocessors and received about $3.5 million in sales, with Patterson sending money back to Texas to pay Smith and other conspirators working at Compaq. 

Two other former Compaq workers already have pleaded guilty to their involvement. Agustine Alvar was sentenced to 2.5 years and Scott Raphael got a year and nine months on the same charges. Alvar testified against Patterson at his trial last August. 

Like Smith, Patterson also was sentenced to four years and three months. 
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BBC Online
Weird web data foxes experts
Tuesday, 24 June, 2003, 10:48 GMT 11:48 UK

Strange packets of data found on the internet are worrying net security experts. 
Some believe that the data packets are part of a new scanning tool that maps networks and reports vulnerabilities it finds. 

So far the strange packets are no threat as they do not automatically attempt to spread themselves to other networks. 

Experts also point out that the program producing the strange packets of data is riddled with bugs that prevent it working very well. 

Attack tool 

The net works as well as it does because any data you want or send is broken down into chunks, or packets, before it is despatched into cyberspace. 

One of the key parameters of these data packets is the amount of data they can transport without needing a response from their destination. 

Tweaking this parameter helps speed up or improve the reliability of data transfer. 
 
Since May net security experts have caught data packets travelling across the net that have an abnormally large data window size of 55,808 bytes. 

Efforts to track down the source of the large data packets have proved largely fruitless. 

The data packets are thought to have been despatched by computers infected with a hidden, or trojan, program that seems to be trying to map network addresses and link them with the computer resources sitting behind them. 

Many attempts to crack networks begin with computer vandals using scanning tools to root out weak points that can be easily penetrated. 

Experts believe that the strangely sized data packets are part of a distributed scanning or probing system that reports what it has found to other systems infected with the same program. 

Security firms Intrusec and Internet Security Systems have issued warnings about the data packets. 

ISS believes the packets are being formed by a scanning tool called "Stumbler". However, other security firms dispute this explanation. 

Experts say the scanning tool is little threat because its poor design prevents it quickly sharing and acting on any information it finds. 

However, some security experts believe that the badly formed packets are evidence of a new type of scanner that could slip past existing detection systems and be used to knock sites offline by swamping them with bogus data. 

Security experts are continuing to monitor the activities of the strange data packets.
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USA Today
Fined student gets donations to tune of $12K
By Jefferson Graham, USA TODAY
June 25, 2003

One of four college students who were accused of trading songs online and settled lawsuits in early May with the music industry has managed to collect his entire $12,000 fine on the Internet.

Jesse Jordan, 19, a sophomore this fall at Rensselaer Polytechnic Institute in Troy, N.Y., saw his cause picked up by the popular Web site Slashdot.org (motto: "News for Nerds. Stuff that matters"). Money began pouring in, "anywhere from 10 cents to $500. I never expected to raise the whole thing. People are very generous," says Jordan.

"Where the money comes from doesn't matter," says Matt Oppenheim of the Recording Industry Association of America. "Have we deterred these people and others from engaging in this kind of behavior? Clearly we have."

Princeton student Daniel Peng, who also settled with the RIAA, has a site (m-net.arbornet.org/danpeng) seeking aid, but has only collected $3,500 of his $15,000 fine. "I haven't been as fortunate as Jesse," says Peng. "I'm pretty far in debt."

The other two students  Aaron Sherman, who recently graduated from Rensselaer, and Joseph Nievelt of Michigan Polytechnic  haven't solicited help online.

Jordan's father, Andy, 54, a freelance information technology manager, says his son turned to the Net for help because, "as Bob Dylan once said, 'When you ain't got nothing, you got nothing to lose,' " adding, "To say that isn't copyright infringement, right?"

Jordan, working at a drugstore this summer, has been the most outspoken of the four. He was quoted in USA TODAY and other papers at the time of the settlement, and he appeared on ABC's 20/20 and CNN. He said consistently that all he did was create a search engine, and that he did nothing wrong. Nonetheless, he sent in his first payment on the fine Monday.

The RIAA has been more aggressively chasing online song traders this year  not just students but also more casual home users. It sued Internet provider Verizon for the names of four of its subscribers, and last week sent them cease-and-desist letters saying that if they didn't stop trading songs, they'd be sued.

Verizon is appealing the case. The RIAA last week filed letters of support from some 20 high-powered organizations, including the Motion Picture Association of America, the Business Software Alliance  whose members include Microsoft and Apple  and trade groups representing film and TV writers, directors and actors.

Verizon's Sarah Deutsch says the company hasn't heard from its four subscribers since the warnings went out, but three of the four had said earlier they removed the trading software from their computers.
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New York Times
June 25, 2003
Fox Television to Add HDTV to Primetime by Fall 2004
By ERIC A. TAUB

LOS ANGELES, June 24  The Fox Television Network, which previously shunned high-definition broadcasting, plans to transmit at least 50 percent of its prime-time schedule in HDTV by the season that begins in the fall of 2004, a company official told federal regulators today.

The move brings the network into line with its three main broadcast competitors, which already transmit the bulk of their prime-time dramas and comedies in HDTV, the highest available quality of digital television, or will do so shortly.

Fox, owned by the News Corporation, tempered its pledge by stating that it was unhappy about introducing HDTV, however, before the adoption of a "broadcast flag" agreement aimed at protecting those programs from piracy.

Under a proposal being considered by the Federal Communications Commission, digitally transmitted programs, which would include HDTV, would be embedded with a broadcast flag which could be used to prevent retransmission over the Internet. Consumers, however, would still be able to make copies for personal use. The agency has not indicated when it will rule on the issue.

The decision to begin the transition to the high-definition format  which provides an exceptionally sharp image rivaling a motion picture's, a wide-screen format similar to that of a movie screen, and multichannel digital sound  was revealed in a letter from Peter Chernin, president of the News Corporation, to W. Kenneth Ferree, the chief of the F.C.C.'s media bureau. 

Currently, the Fox network transmits its digital feed to local affiliates in a lower quality wide-screen format known as 480p enhanced definition.

"Without a very large television, it is hard to tell the difference in picture quality between Fox's enhanced definition and HDTV," said Josh Bernoff, principal analyst for Forrester Research. "But all the marketing is around HDTV, and Fox must have been feeling the pressure. This is a significant development, a sign that the acceptance of HDTV is accelerating."

The transition to high-definition TV will require Fox to change all its digital equipment at the network and its 182 local affiliates. In his letter to the F.C.C., Mr. Chernin pledged to have the job done by the fall of 2004. The company declined to say which programs it would transmit in high-definition. It said that it hoped to broadcast HDTV either later this year or early in 2004.

In 1996, the F.C.C. mandated that over-the-air broadcasters switch from an analog transmission system to a digital one. At the time, it did not formally demand any high-definition content in digital transmissions. But to encourage consumers to buy new televisions and speed the transition, the commission has stated its clear preference for HDTV.

For its high-definition broadcasts, the network will use a 720p transmission, the same as that used by ABC. Proponents say this format, which sends a complete picture 60 times a second, does a better job of reproducing the fast movements of sports. Both NBC and CBS transmit their HDTV programs using the interlaced 1080i format, which alternates sending odd and even lines, and thus sends a complete picture 30 times a second.

More than 5.8 million televisions that are capable of receiving a digital signal have been sold to dealers, according to the Consumer Electronics Association; an additional three million are projected to be shipped to dealers by the end of 2003. Most of those sets, however, are used to watch conventional television and DVD's; fewer than one million high-definition set-top converter boxes are in the 106 million homes that have TV. 

Currently, only 20 percent of the nation's digital broadcast channels are carried by cable TV operators. So, to see the broadcast networks' high-definition offerings, viewers must often erect an outdoor antenna or use rabbit ears, but only 6 percent of digital set owners have done so, according to Mr. Bernoff of Forrester Research. The problem, according to the cable industry, is that many of the broadcasters' digital channels are not showing high-definition programming, so there is little impetus for cable to offer them.

"With Fox's embrace of HDTV, the company should now be able to strike carriage deals with cable operators for its digital broadcasts," Mr. Bernoff said.

Early this month, Fox announced that it would offer local National Basketball Association, National Hockey League and Major League Baseball games in HDTV to Time Warner Cable subscribers. The company said that it expected to announce similar agreements with other cable companies, which would lead to the production of 200 events, or 500 hours of high-definition programming. "News Corporation is committed to becoming a leader in the production of high-definition programming on broadcast and cable television," Mr. Chernin stated in his letter.

Among its competitors, both ABC and CBS offer all of their prime-time scripted shows to their affiliates in HDTV. NBC, which now transmits "E.R.," "The Tonight Show" and "Law and Order," among others, in HDTV, will add "The West Wing" and its new situation comedies and mini-series to its high-definition lineup next season. 

The WB Network, jointly owned by AOL Time Warner and the Tribune Company, shows four programs in high-definition TV. Cable programmers that offer HDTV channels include Discovery, ESPN, HBO, HDNet and Showtime.

Fox's decision to embrace HDTV will help overcome the problems that have prevented high-definition digital television from being more widely used, said Gary Shapiro, the president and chief executive of the Consumer Electronics Association, a trade group representing electronics manufacturers. "This is another `tipping point' to help reach the inevitable widespread adoption of HDTV."
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Associated Press
Survey: New Internet Privacy Laws Needed 
Wed Jun 25, 8:48 AM ET
By TED BRIDIS, AP Technology Writer 

WASHINGTON - American consumers fundamentally misunderstand how Internet companies use their personal information, according to a new survey that concludes tougher federal privacy laws are needed.


The study from the Annenberg Public Policy Center at the University of Pennsylvania, being released Wednesday, said 86 percent of surveyed adults believe companies should be required by law to standardize the promises they make on Web sites about how personal information will be protected. 


The findings renewed demands for fresh U.S. privacy laws even as the threat of terrorism and heightened security to meet it have supplanted privacy as a cornerstone for technology policy debates in Washington. 


Timothy Muris, chairman of the Federal Trade Commission, has said the agency would step up enforcement of existing privacy laws, and privacy has not been a major issue in congressional debates. 


"This kind of privacy issue has sort of fallen down the list of things that legislators have paid attention to over the last couple years," said Robert Pitofsky, former FTC chairman. 


Industry groups largely beat back efforts to pass new privacy laws at the height of the e-commerce boom three years ago. They convinced Congress that companies could be trusted to protect online privacy (news - web sites) of their customers voluntarily except when a person's financial or health data were involved. 


Lawmakers relented over the objections of the FTC under Pitofsky, which concluded in a May 2000 report that "industry efforts alone have not been sufficient." 


Researchers said the new survey of 1,200 adult Internet users illustrates a significant gap between increasingly sophisticated collection techniques by Internet marketers and an alarming lack of knowledge by Web surfers about how companies track their online movements and use the information. 


For example, 57 percent of the adults surveyed who use the Internet at home told researchers they believed incorrectly that when a Web site publishes a privacy policy, it will not share their personal information with other Web sites or companies. Such policies typically describe what information is collected about visitors and how it is shared among companies, subsidiaries and affiliates. 


Nearly two-thirds of adults admitted never searching for information about how to protect their privacy on the Internet, and 40 percent confessed they knew "almost nothing" about how shopping sites collect and use their personal information. 


Researchers cited descriptions by The Gator Corp. of Redwood City, Calif., which makes advertising technology built into popular music-sharing software and claims 12 million users. Gator tells prospective advertisers it can display baby food ads on computer screens of young parents by quietly monitoring whether they visit Web sites about childbirth, baby names and other baby products. 


"People simply don't have any idea how data flow works with respect to the Internet," said Joseph Turow, a communications professor at Annenberg. "It's the most important finding: that a large percentage of the American population seems not to understand the complex uses of their data by marketers." 


Critics of new Internet privacy laws said the survey, conducted for Annenberg by ICR/International Communications Research of Media, Pa., was flawed. 


"These questions seem to have been asked in a way that is going to elicit the types of answers they got," said Tom Lenard, vice president for research at the Progress and Freedom Foundation, a Washington think-tank. 


A PFF study in March 2002 found that Internet sites appeared to be collecting less personal information from users and doing a slightly better job of explaining how sensitive data were used. 


Supporters enthusiastically embraced the new survey as the latest evidence for new privacy laws. 


"The overwhelming percentage of consumers continue to believe that some legal framework would help them protect their information and that personal information is still an important concern," FTC Commissioner Mozelle Thompson said. "Congress is still looking at privacy issues and privacy legislation. This isn't going away." 
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