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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2000 A.D.

2000
Convergence of telephony, audiovisual technologies and computing

Digital technologies are used to combine previously separated communication and media systems such as telephony, audiovisual technologies and computing to new services and technologies, thus forming extensions of existing communication systems and resulting in fundamentally new communication systems. This is what is meant by today's new buzzwords "multimedia" and "convergence".

Classical dichotomies as the one of computing and telephony and traditional categorizations no longer apply, because these new services no longer fit traditional categories.

Convergence and Regulatory Institutions

Digital technology permits the integration of telecommunications with computing and audiovisual technologies. New services that extend existing communication systems emerge. The convergence of communication and media systems corresponds to a convergence of corporations. Recently, America Online, the world's largest online service provider, merged with Time Warner, the world's largest media corporation. For such corporations the classical approach to regulation - separate institutions regulate separate markets - is no longer appropriate, because the institutions' activities necessarily overlap. The current challenges posed to these institutions are not solely due to the convergence of communication and media systems made possible by digital technologies; they are also due to the liberalization and internationalization of the electronic communications sector. For regulation to be successful, new categorizations and supranational agreements are needed.
For further information on this issue see Natascha Just and Michael Latzer, The European Policy Response to Convergence with Special Consideration of Competition Policy and Market Power Control, http://www.soe.oeaw.ac.at/workpap.htm or http://www.soe.oeaw.ac.at/WP01JustLatzer.doc.

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Digital Commercial Content

Starting in the mid 1990s today most traditional media can also be found online. The overwhelming majority of bigger newspapers and periodicals, but also radio and TV stations now complement their classic media formats with digital programming. For the most part they transform existing analogue information in digital form, with some additional features.

Especially the big media conglomerates, having realized the economic potential of the Internet, have started to get into the business of digital content. Not surprisingly their engagement in the virtual sphere has not brought much new concerning their programming. They offer entertainment, music, sports and some news channels. One of the reasons for this development might be, that the big commercial media companies are able to re-use already existing programming from their other ventures. Examples are Viacom's MTV Network, which now has a twin online or Time Warner's CNN, which on the Web is called CNN Interactive. Considering business economic factors this move suggests itself as hardly any further resources are needed and the already existing programming can be put in the Internet at little extra cost. Also, regarding the undeniable success of their traditional content in terms of revenue generation the digital reproduction of their classic programming concept seems to be an obvious step.

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Challenges for Copyright by ICT: Introduction

Traditional copyright and the practice of paying royalties to the creators of intellectual property have emerged with the introduction of the printing press (1456). Therefore early copyright law has been tailored to the technology of print and the (re) production of works in analogue form. Over the centuries legislation concerning the protection of intellectual property has been adapted several times in order to respond to the technological changes in the production and distribution of information.

Yet again new technologies have altered the way of how (copyrighted) works are produced, copied, made obtainable and distributed. The emergence of global electronic networks and the increased availability of digitalized intellectual property confront existing copyright with a variety of questions and challenges. Although the combination of several types of works within one larger work or on one data carrier, and the digital format (although this may be a recent development it has been the object of detailed legal scrutiny), as well as networking (telephone and cable networks have been in use for a long time, although they do not permit interactivity) are nothing really new, the circumstance that recent technologies allow the presentation and storage of text, sound and visual information in digital form indeed is a novel fact. Like that the entire information can be generated, altered and used by and on one and the same device, irrespective of whether it is provided online or offline.


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The 19th Century: Machine-Assisted Manufacturing

Eli Whitney's proposal for a simplification and standardization of component parts marked a further milestone in the advance of the automation of work processes. In 1797 he suggested the manufacture of muskets with completely interchangeable parts. As opposed to the older method under which each gun was the individual product of a highly skilled gunsmith and each part hand-fitted, his method permitted large production runs of parts that were readily fitted to other parts without adjustment and could relatively easy be performed by machines.

By the middle of the 19th century the general concepts of division of labor, assembly of standardized parts and machine-assisted manufacture were well established. On both sides of the Atlantic large factories were in operation, which used specialized machines to improve costs, quality and quantity of their products.

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1960s - 1970s: Expert Systems Gain Attendance

The concept of expert systems dates back to the 1960s but first gained prominence in the 1970s. Conclusive for this development were the insights of the Stanford University professor Edward Feigenbaum, who in 1977 demonstrated that the problem-solving capacity of a computer program rather is a result of the knowledge it posses, than of the applied programming techniques and formalisms.

Expert systems were designed to mimic the knowledge and reasoning capabilities of a human specialist in a given domain by using (top down) artificial intelligence techniques. Made possible by the large storage capacity of the computers at the time, expert systems had the potential to interpret statistics and formulate rules. An initial use of expert systems was to diagnose and treat human physical disorders, but as its applications in the market place were extensive over the course of the following years they were also employed in fields such as stock market forecast, taxation, chemistry, and geology.

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Extract of Disney’s Content Production and Distribution Holdings

Although the traditional media companies first steps into the digital sphere were fairly clumsy, they have quickly learned from their mistakes and continued to enlarge their Internet presence. Time Warner now for instance operates about 130 Web-Sites (http://www.timewarner.com/corp/about/pubarchive/websites.html). Anyhow the stronger online-engagement of the big media conglomerates by 1998 has led to the establishment of a new pattern: "More than three-quarters of the 31 most visited news and entertainment websites were affiliated with large media firms, and most of the rest were connected to outfits like AOL and Microsoft." (Broadcasting and Cable, 6/22/98).

During the last years many of the smaller players in the field of digital media have been driven out of competition by the huge media conglomerates. This mainly is a result of the advantages that the commercial media giants have over their less powerful counterparts:

    As engagement in online activities mostly does not lead to quick profits, investors must be able to take losses, which only powerful companies are able to.



    Traditional media outlets usually have huge stocks of digital programming, which they can easily plug into the Internet at little extra cost.



    To generate audience, the big media conglomerates constantly promote their Websites and other digital media products on their traditional media holdings.



    As possessors of the hottest "brands" commercial media companies often get premier locations from browser software makers, Internet service providers, search engines and portals.



    Having the financial resources at their disposition the big media firms are aggressive investors in start-up Internet media companies.



Commercial media companies have close and long ties to advertisers, which enables them to seize most of these revenues.

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Conservative vs. Progressive Think Tanks

The political orientation of think tanks is as broad as in every other kind of institutions or organizations. It ranges from conservative over centrist to progressive. Still it can be noted, that there are considerable differences between the right and the left wing of think tanks, especially concerning funding sources and revenues as well as media relations, which have considerable consequences on their perception and influence on the public as well as on policy makers.

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Late 1950s - Early 1960s: Second Generation Computers

An important change in the development of computers occurred in 1948 with the invention of the transistor. It replaced the large, unwieldy vacuum tube and as a result led to a shrinking in size of electronic machinery. The transistor was first applied to a computer in 1956. Combined with the advances in magnetic-core memory, the use of transistors resulted in computers that were smaller, faster, more reliable and more energy-efficient than their predecessors.

Stretch by IBM and LARC by Sperry-Rand (1959) were the first large-scale machines to take advantage of the transistor technology (and also used assembly language instead of the difficult machine language). Both developed for atomic energy laboratories could handle enormous amounts of data, but still were costly and too powerful for the business sector's needs. Therefore only two LARC's were ever installed.

Throughout the early 1960s there were a number of commercially successful computers (for example the IBM 1401) used in business, universities, and government and by 1965 most large firms routinely processed financial information by using computers. Decisive for the success of computers in business was the stored program concept and the development of sophisticated high-level programming languages like FORTRAN (Formular Translator), 1956, and COBOL (Common Business-Oriented Language), 1960, that gave them the flexibility to be cost effective and productive. The invention of second generation computers also marked the beginning of an entire branch, the software industry, and the birth of a wide range of new types of careers.

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Asymmetric or Public-Key-Cryptosystems

Here the keys for encryption and decryption differ. There needs to exist a private key, which is only known to the individual, and a public key, which is published. Every person has her or his own private key that is never published. It is used for decrypting only. Mathematically the different keys are linked to each other, still it is nearly impossible to derive the private key from the public one.
For sending a message to someone, one has to look up the other's public key and encrypt the message with it. The keyholder will use his/her private key to decrypt it. While everybody can send a message with the public key, the private key absolutely has to stay secret - and probably will.

"The best system is to use a simple, well understood algorithm which relies on the security of a key rather than the algorithm itself. This means if anybody steals a key, you could just roll another and they have to start all over." (Andrew Carol)

very famous examples for public-key systems are:

· RSA:
The RSA is probably one of the most popular public-key cryptosystems. With the help of RSA, messages can be encrypted, but also digital signatures are provided.
The mathematics behind are supposedly quite easy to understand (see: http://world.std.com/~franl/crypto/rsa-guts.html.

· PGP:
PGP is a public key encryption program. Most of all it is used for e-mail encryption.
It is supposed to be quite safe - until now.

· PGPi is simply the international variation of PGP.

for further information about the RSA and other key-systems visit the RSA homepage:
http://www.rsa.com/rsalabs/faq/
http://www.rsa.com/rsalabs/faq/questions.html
or:
http://www.pgpi.org

All of those tools, like hash functions, too, can help to enhance security and prevent crime.
They can theoretically, but sometimes they do not, as the example of the published credit card key of France in March 2000 showed.
For more information see:
http://news.voila.fr/news/fr.misc.cryptologie

Still, cryptography can help privacy.
On the other hand cryptography is only one element to assure safe transport of data. It is especially the persons using it who have to pay attention. A key that is told to others or a lost cryptographic key are the end of secrecy.

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Think Tanks

Think tanks, usually not so much in the focus of public attention, but even more active behind the scenes are organizations dealing with political and/or public policy issues. Mostly labeled as independent (research) institutes, they differ from pure academia in that the research that is conducted is channeled towards certain fairly specific purposes.

Some think tanks are affiliated with universities, while also governments run think tanks. Within the private think tanks, most widely known are the ideological think tanks. These organizations aim to shape public opinion and government policy over a wide range of issues so as to advance the political ideologies or approaches to public policy making which are supported by their members.

Especially the research of ideologically motivated think tanks sometimes is of questionable scholarly value and their policy prescriptions are politically motivated. The problem is compounded by links between think tanks and the media from which both parties benefit or influenced by corporate and other donors, which preclude critical assessment of the quality and objectivity of think tank research.

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Another Question of Security

Even with the best techniques it is impossible to invent a cryptographic system that is absolutely safe/unbreakable. To decipher a text means to go through many, sometimes nearly - but never really - endless attempts. For the computers of today it might take hundreds of years or even more to go through all possibilities of codes, but still, finally the code stays breakable. The much faster quantum computers will proof that one day.
Therefore the decision to elect a certain method of enciphering finally is a matter of trust.

For the average user of computers it is rather difficult to understand or even realize the dangers and/or the technological background of electronic transmission of data. For the majority thinking about one's own necessities for encryption first of all means to trust others, the specialists, to rely on the information they provide.
The websites explaining the problems behind (and also the articles and books concerning the topic) are written by experts of course as well, very often in their typical scientific language, merely understandable for laymen. The introductions and other superficial elements of those articles can be understood, whereas the real background appears as untouchable spheres of knowledge.

The fact that dangers are hard to see through and the need for security measures appears as something most people know from media reports, leads directly to the problem of an underdeveloped democracy in the field of cryptography. Obviously the connection between cryptography and democracy is rather invisible for many people. Those mentioned media reports often specialize in talking about the work computer hackers do (sometimes being presented as criminals, sometimes as heroes) and the danger to lose control over the money drawn away from one's bank account, if someone steals the credit card number or other important financial data. The term "security", surely connected to those issues, is a completely different one from the one that is connected to privacy.
It is especially the latter that touches the main elements of democracy.

for the question of security see:
http://www-db.stanford.edu/pub/gio/CS99I/security.html

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Major U.S. Think Tanks: Heritage Foundation

Heritage was started to counter what it perceived as the liberal intellectual climate of Washington in the 1970s. The Heritage Foundations mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. Heritage pursues this mission by performing research addressing key policy issues and effectively marketing these findings to its primary audiences: members of Congress, key congressional staff, policymakers in the executive branch, the nation's news media, and the academic and policy communities.

Official Organizational Status: Independent research and educational institute.

Political Orientation: U.S. Conservative

Scope/Research Areas: The Heritage Foundation's research areas include: economic issues, health and welfare, education, culture and religion, security and defense, foreign policy and international relations/institutions. Priority is given to issues, such as: Social Security reform, fundamental tax reform, livable cities, ballistic missile defense, education reform, domestic and economic policy and foreign and defense policy. Recent publications include: Feulner, Edwin J.: The March of Freedom. (1998). Holmes, K. et.al.: 1999 Index of Economic Freedom. (1998).

Funding Sources: 1998 Budget: US$ 26 million. Private donations (47 %), foundations (21 %), investment income (21 %), corporate donations (4 %). Among others US$ 1 million from the Korea Foundation - funded by South Korea's foreign ministry.

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1961: Installation of the First Industrial Robot

Industrial robotics, an automation technology relying on the two technologies of numerical control and teleoperators, started to gain widespread attendance in the 1960s. The first industrial robot was installed at General Motors in 1961. Developed by Joe Engelberger and George Devol, UNIMATE obeyed step-by-step commands stored on a magnetic drum and with its 4,000 pound arm sequenced and stacked hot pieces of die-cast metal.

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News Corporation

The News Corporation Ltd., a global media holding company, which governed News Limited (Australia), News International (U.K.), and News America Holdings Inc. (U.S.) was founded by the Australian-born newspaper publisher and media entrepreneur, Rupert Murdoch. Murdoch's corporate interests center on newspaper, magazine, book, and electronic publishing; television broadcasting; and film and video production, principally in the United States, the United Kingdom, and Australia.

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RSA

The best known of the two-key cryptosystems developed in the mid-1980s is the Rivest-Shamir-Adleman (RSA) cryptoalgorithm, which was first published in April, 1977. Since that time, the algorithm has been employed in the most widely-used Internet electronic communications encryption program, Pretty Good Privacy (PGP). It is also employed in both the Netscape Navigator and Microsoft Explorer web browsing programs in their implementations of the Secure Sockets Layer (SSL), and by Mastercard and VISA in the Secure Electronic Transactions (SET) protocol for credit card transactions.

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SOA

The U.S.-Army School of Americas (= SOA) is based in Fort Benning (Georgia); it trains Latin American and U.S. soldiers in the working-field of counter-insurgency. Some of the nearly 60.000 SOA-Graduates have been responsible for many of the worst human rights abuses and crimes in Latin America. The list of famous dictators and murderers who went through the education of that institution is tremendous. In 1996 the U.S.-Government that always tried to deny the tasks of SOA, had to admit its work - but never closed it.

For more information see the website of SOA-Watch: http://www.soaw.org

http://www.soaw.org/
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Backbone Networks

Backbone networks are central networks usually of very high bandwidth, that is, of very high transmitting capacity, connecting regional networks. The first backbone network was the NSFNet run by the National Science Federation of the United States.

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Automation

Automation is concerned with the application of machines to tasks once performed by humans or, increasingly, to tasks that would otherwise be impossible. Although the term mechanization is often used to refer to the simple replacement of human labor by machines, automation generally implies the integration of machines into a self-governing system. Automation has revolutionized those areas in which it has been introduced, and there is scarcely an aspect of modern life that has been unaffected by it. Nearly all industrial installations of automation, and in particular robotics, involve a replacement of human labor by an automated system. Therefore, one of the direct effects of automation in factory operations is the dislocation of human labor from the workplace. The long-term effects of automation on employment and unemployment rates are debatable. Most studies in this area have been controversial and inconclusive. As of the early 1990s, there were fewer than 100,000 robots installed in American factories, compared with a total work force of more than 100 million persons, about 20 million of whom work in factories.

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Kessler Marketing Intelligence (KMI)

KMI is the leading source for information on fiber-optics markets. It offers market research, strategic analysis and product planning services to the opto-electronics and communications industries. KMI tracks the worldwide fiber-optic cable system and sells the findings to the industry. KMI says that every fiber-optics corporation with a need for strategic market planning is a subscriber to their services.

http://www.kmicorp.com/

http://www.kmicorp.com/
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International Cable Protection Committee (ICPC)

The ICPC aims at reducing the number of incidents of damages to submarine telecommunications cables by hazards.

The Committee also serves as a forum for the exchange of technical and legal information pertaining to submarine cable protection methods and programs and funds projects and programs, which are beneficial for the protection of submarine cables.

Membership is restricted to authorities (governmental administrations or commercial companies) owning or operating submarine telecommunications cables. As of May 1999, 67 members representing 38 nations were members.

http://www.iscpc.org

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Slobodan Milosevic

Slobodan Milosevic (* 1941) is a Serbian political leader.
As a young man S. Milosevic joined the Communist Party, in 1984 the banker became head of the local Communist Party of Belgrade, in 1987 head of the Serb CP. Since 1989 he has been president of Serbia (since 1997 president of the new Federal Republic of Yugoslavia). During his reign the Yugoslav Republic broke up, bringing about the independence of Slovenia and Croatia and the war in Bosnia. In 1998 the Kosovo Crisis started.

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Calculator

Calculators are machines for automatically performing arithmetical operations and certain mathematical functions. Modern calculators are descendants of a digital arithmetic machine devised by Blaise Pascal in 1642. Later in the 17th century, Gottfried Wilhelm von Leibniz created a more advanced machine, and, especially in the late 19th century, inventors produced calculating machines that were smaller and smaller and less and less laborious to use.

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Neighboring rights

Copyright laws generally provide for three kinds of neighboring rights: 1) the rights of performing artists in their performances, 2) the rights of producers of phonograms in their phonograms, and 3) the rights of broadcasting organizations in their radio and television programs. Neighboring rights attempt to protect those who assist intellectual creators to communicate their message and to disseminate their works to the public at large.

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Digital Subscriber Line (DSL)

DSL connections are high-speed data connections over copper wire telephone lines. As with cable connections, with DSL you can look up information on the Internet and make a phone call at the same time but you do not need to have a new or additional cable or line installed. One of the most prominent DSL services is ISDN (integrated services digital network, for more information click here ( http://www.britannica.com/bcom/eb/article/4/0,5716,129614+15,00.html )).

http://www.britannica.com/bcom/eb/article/4/0...
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Moral rights

Authors of copyrighted works (besides economic rights) enjoy moral rights on the basis of which they have the right to claim their authorship and require that their names be indicated on the copies of the work and in connection with other uses thereof. Moral rights are generally inalienable and remain with the creator even after he has transferred his economic rights, although the author may waive their exercise.

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Microsoft Corporation

Founded by Bill Gates and Paul Allen and headquartered in Redmond, USA, Microsoft Corporation is today's world-leading developer of personal-computer software systems and applications. As MS-DOS, the first operating system released by Microsoft, before, Windows, its successor, has become the de-facto standard operating system for personal computer. According to critics and following a recent court ruling this is due to unfair competition.

http://www.microsoft.com

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/4/0,5716,1524+1+1522,00.html

http://www.microsoft.com/
http://www.britannica.com/bcom/eb/article/4/0...
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The Flesh Machine

This is the tile of a book by the Critical Art Ensemble which puts the development of artifical life into a critical historical and political context, defining the power vectors which act as the driving force behind this development. The book is available in a print version (New York, Autonomedia 1998) and in an online version at http://www.critical-art.net/fles/book/index.html

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