Virtual cartels, oligopolistic structures

Global networks require global technical standards ensuring the compatibility of systems. Being able to define such standards makes a corporation extremely powerful. And it requires the suspension of competitive practices. Competition is relegated to the symbolic realm. Diversity and pluralism become the victims of the globalisation of baroque sameness.

The ICT market is dominated by incomplete competition aimed at short-term market domination. In a very short time, new ideas can turn into best-selling technologies. Innovation cycles are extremely short. But today's state-of-the-art products are embryonic trash.

    According to the Computer and Communications Industry Association, Microsoft is trying to aggressively take over the network market. This would mean that AT&T would control 70 % of all long distance phone calls and 60 % of cable connections.



    AOL and Yahoo are lone leaders in the provider market. AOL has 21 million subscribers in 100 countries. In a single month, AOL registers 94 million visits. Two thirds of all US internet users visited Yahoo in December 1999.



    The world's 13 biggest internet providers are all American.



    AOL and Microsoft have concluded a strategic cross-promotion deal. In the US, the AOL icon is installed on every Windows desktop. AOL has also concluded a strategic alliance with Coca Cola.


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Public Relations and the Advertising Industry

The public relations industry, the same as advertising, is concentrated in the hands of few dominant firms. Still, the striking element about corporate public relations is that PR firms are tightly related to advertising companies. Nine out of the ten biggest international PR agencies have close ties with the advertising industry. Also, looking at the largest acquisitions involving U.S. PR firms from 1997 to 1999 it is apparent that money coming from advertising agencies has played an important role.


Table: Top 10 PR Firms 1998


Rank 1998

PR Firm

Advertising Agency Related

1998 Net Fees (in U.S. $)

1997 - 1998 % Change

1

Burson-Marsteller

yes

258,417,000

4.2

2

Hill and Knowlton

yes

206,000,000

8.9

3

Porter Novelli Int.

yes

183,050,000

23.6

4

Shandwick

yes

170,300,000

7.3

5

Fleishman-Hillard

yes

160,692,000

19.1.

6

Edelman PR Worldwide

no

157,840,530

18.1

7

Ketchum

yes

125,248,000

29.6

8

BSMG Worldwide

yes

118,963,000

93.0

9

Weber PR Worldwide

yes

83,166,000

36.2

10

GCI/APCO

yes

79,667,957

28.4




With many PR agencies sold to advertising companies, the advertising industry's influence further increases; enabling them to offer their clients not only advertising services, but also know-how in marketing, public opinion, crisis and issues management and political lobbying.

Table: Acquisition of PR Agencies (1997 - 1999)

Acquired Company

Buyer

Buyers Industry

Estimated Purchase Price (in millions of U.S. $)

International PR

Interpublic Group of Cos.

Advertising

230

Fleishman-Hillard

Omicom Group

Advertising

85

Ketchum

Omnicom Group

Advertising

60

Dewe Rogerson

Incepta

Advertising

40

Financial Rel. Bd.

BSMG/TN

Public Relations

33

Weber PR

Interpublic Group of Cos.

Advertising

15

Alexander

WPP Group

Advertising

15

Charles Barker

BSMG/TN

Public Relations

15



Source: Odwyerpr.com.

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What is the Internet?

Each definition of the Internet is a simplified statement and runs the risk of being outdated within a short time. What is usually referred to as the Internet is a network of thousands of computer networks (so called autonomous systems) run by governmental authorities, companies, and universities, etc. Generally speaking, every time a user connects to a computer networks, a new Internet is created. Technically speaking, the Internet is a wide area network (WAN) that may be connected to local area networks (LANs).

What constitutes the Internet is constantly changing. Certainly the state of the future Net will be different to the present one. Some years ago the Internet could still be described as a network of computer networks using a common communication protocol, the so-called IP protocol. Today, however, networks using other communication protocols are also connected to other networks via gateways.

Also, the Internet is not solely constituted by computers connected to other computers, because there are also point-of-sale terminals, cameras, robots, telescopes, cellular phones, TV sets and and an assortment of other hardware components that are connected to the Internet.

At the core of the Internet are so-called Internet exchanges, national backbone networks, regional networks, and local networks.

Since these networks are often privately owned, any description of the Internet as a public network is not an accurate. It is easier to say what the Internet is not than to say what it is. On 24 October, 1995 the U.S. Federal Networking Council made the following resolution concerning the definition of the term "Internet": "Internet" refers to the global information system that (i) is logically linked together by a globally unique address space based on the Internet Protocol (IP) or its subsequent extensions/follow-ons; (ii) is able to support communications using the Transmission Control Protocol/Internet Protocol (TCP/IP) suite or its subsequent extensions/follow-ons, and/or other IP-compatible protocols; and (iii) provides, uses or makes accessible, either publicly or privately, high level services layered on the communications and related infrastructure described herein." (http://www.fnc.gov/Internet_res.html)

What is generally and in a simplyfiying manner called the Internet, may be better referred to as the Matrix, a term introduced by science fiction writer William Gibson, as John S. Quarterman and Smoot Carl-Mitchell have proposed. The Matrix consists of all computer systems worldwide capable of exchanging E-Mail: of the USENET, corporate networks and proprietary networks owned by telecommunication and cable TV companies.

Strictly speaking, the Matrix is not a medium; it is a platform for resources: for media and services. The Matrix is mainly a very powerful means for making information easily accessible worldwide, for sending and receiving messages, videos, texts and audio files, for transferring funds and trading securities, for sharing resources, for collecting weather condition data, for trailing the movements of elephants, for playing games online, for video conferencing, for distance learning, for virtual exhibitions, for jamming with other musicians, for long distance ordering, for auctions, for tracking packaged goods, for doing business, for chatting, and for remote access of computers and devices as telescopes and robots remotely, e. g. The Internet is a wonderful tool for exchanging, retrieving, and storing data and sharing equipment over long distances and eventually real-time, if telecommunication infrastructure is reliable and of high quality.

For a comprehensive view of uses of the Matrix, especially the World Wide Web, see ""24 Hours in Cyberspace"

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Public Relations and Propaganda

Public relations usually is associated with the influencing of public opinion. Therefore it has subsequently been linked with propaganda. Using one of the many definitions of propaganda "... the manipulation of symbols as a means of influencing attitudes on controversial matters" (Harold D. Lasswell), the terms propaganda and PR seem to be easily interchangeable.

Still many authors explicitly distinguish between public relations, advertising and propaganda. Unlike PR, which is often described as objective and extensive information of the public, advertising and propaganda are associated with manipulative activities. Nevertheless to treat public relations and propaganda as equivalents stands in the tradition of PR. Edward L. Bernays, one of the founders of public relations wrote "The only difference between propaganda and education, really, is the point of view. The advocacy of what we believe in is education. The advocacy of what we don't believe is propaganda."

Also institutions like the German Bundeswehr use the terms publics relations and propaganda synonymously. After a 1990 legislation of the former minister of defense Stoltenberg, the "psychological influence of the enemy" was ceased during peace time and the Academy for Psychological Defense renamed to Academy for Information and Communication, among other things responsible for scientific research in the field of public relations.

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WIPO

The World Intellectual Property Organization is one of the specialized agencies of the United Nations (UN), which was designed to promote the worldwide protection of both industrial property (inventions, trademarks, and designs) and copyrighted materials (literary, musical, photographic, and other artistic works). It was established by a convention signed in Stockholm in 1967 and came into force in 1970. The aims of WIPO are threefold. Through international cooperation, WIPO promotes the protection of intellectual property. Secondly, the organization supervises administrative cooperation between the Paris, Berne, and other intellectual unions regarding agreements on trademarks, patents, and the protection of artistic and literary work and thirdly through its registration activities the WIPO provides direct services to applicants for, or owners of, industrial property rights.

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Industrial design

Industrial design refers to the ornamental aspect of a useful article which may constitute of two or three-dimensional elements. To be qualified for intellectual property protection the design must be novel or original. Protection can be obtained through registration in a government office and usually is given for 10 to 15 years.

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Economic rights

The economic rights (besides moral rights and in some cases also neighboring rights) granted to the owners of copyright usually include 1) copying or reproducing a work, 2) performing a work in public, 3) making a sound recording of a work, 4) making a motion picture of a work, 5) broadcasting a work, 6) translating a work and 7) adapting a work. Under certain national laws some of these rights are not exclusive rights of authorization but in specific cases, merely rights to remuneration.

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