Online data capturing

Hardly a firm today can afford not to engage in electronic commerce if it does not want to be swept out of business by competitors. "Information is everything" has become something like the Lord's prayer of the New Economy. But how do you get information about your customer online? Who are the people who visit a website, where do they come from, what are they looking for? How much money do they have, what might they want to buy? These are key questions for a company doing electronic business. Obviously not all of this information can be obtained by monitoring the online behaviour of web users, but there are always little gimmicks that, when combined with common tracking technologies, can help to get more detailed information about a potential customer. These are usually online registration forms, either required for entry to a site, or competitions, sometimes a combination of the two. Obviously, if you want to win that weekend trip to New York, you want to provide your contact details.

The most common way of obtaining information about a user online is a cookie. However, a cookie by itself is not sufficient to identify a user personally. It merely identifies the computer to the server by providing its IP number. Only combined with other data extraction techniques, such as online registration, can a user be identified personally ("Register now to get the full benefit of xy.com. It's free!")

But cookies record enough information to fine-tune advertising strategies according to a user's preferences and interests, e.g. by displaying certain commercial banners rather than others. For example, if a user is found to respond to a banner of a particular kind, he / she may find two of them at the next visit. Customizing the offers on a website to the particular user is part of one-to-one marketing, a type of direct marketing. But one-to-one marketing can go further than this. It can also offer different prices to different users. This was done by Amazon.com in September 2000, when fist-time visitors were offered cheaper prices than regular customers.

One-to-one marketing can create very different realities that undermine traditional concepts of demand and supply. The ideal is a "frictionless market", where the differential between demand and supply is progressively eliminated. If a market is considered a structure within which demand / supply differentials are negotiated, this amounts to the abolition of the established notion of the nature of a market. Demand and supply converge, desire and it fulfilment coincide. In the end, there is profit without labour. However, such a structure is a hermetic structure of unfreedom.

It can only function when payment is substituted by credit, and the exploitation of work power by the exploitation of data. In fact, in modern economies there is great pressure to increase spending on credit. Using credit cards and taking up loans generates a lot of data around a person's economic behaviour, while at the same restricting the scope of social activity and increasing dependence. On the global level, the consequences of credit spirals can be observed in many of the developing countries that have had to abandon most of their political autonomy. As the data body economy advances, this is also the fate of people in western societies when they are structurally driven into credit spending. It shows that data bodies are not politically neutral.

The interrelation between data, profit and unfreedom is frequently overlooked by citizens and customers. Any company in a modern economy will apply data collecting strategies for profit, with dependence and unfreedom as a "secondary effect". The hunger for data has made IT companies eager to profit from e-business rather resourceful. "Getting to know the customer" - this is a catchphrase that is heard frequently, and which suggests that there are no limits to what a company may want to about a customer. In large online shops, such as amazon.com, where customer's identity is accurately established by the practice of paying with credit cards, an all business happens online, making it easy for the company to accurately profile the customers.

But there are more advanced and effective ways of identification. The German company Sevenval has developed a new way of customer tracking which works with "virtual domains". Every visitor of a website is assigned an 33-digit identification number which the browser understands as part of the www address, which will then read something like http://XCF49BEB7E97C00A328BF562BAAC75FB2.sevenval.com. Therefore, this tracking method, which is advertised by Sevenval as a revolutionary method capable of tracking the exact and complete path of a user on a website, can not be simple switched off. In addition, the method makes it possible for the identity of a user can travel with him when he / she visits one of the other companies linked to the site in question. As in the case of cookies, this tracking method by itself is not sufficient to identify a user personally. Such an identification only occurs once a customer pays with a credit card, or decides to participate in a draw, or voluntarily completes a registration form.

Bu there are much less friendly ways of extracting data from a user and feeding the data body. Less friendly means: these methods monitor users in situations where the latter are likely not to want to be monitored. Monitoring therefore takes place in a concealed manner. One of these monitoring methods are so-called web bugs. These are tiny graphics, not more than 1 x 1 pixel in size, and therefore invisible on a screen, capable of monitoring an unsuspecting user's e-mails or movements on a website. Leading corporations such as Barnes and Noble, eToys, Cooking.com, and Microsoft have all used web bugs in advertising campaigns. Richard Smith has compiled a web bugs FAQ site that contains detailed information and examples of web bugs in use.

Bugs monitoring users have also been packaged in seemingly harmless toys made available on the Internet. For example, Comet Systems offers cursor images which have been shown to collect user data and send them back to the company's server. These little images replace the customary white arrow of a mouse with a little image of a baseball, a cat, an UFO, etc. large enough to carry a bug collecting user information. The technology is offered as a marketing tool to companies looking for a "fun, new way to interact with their audience".

The cursor image technology relies on what is called a GUID (global unique identifier). This is an identification number which is assigned to a customer at the time of registration, or when downloading a product. Many among the online community were alarmed when in 1999 it was discovered that Microsoft assigned GUIDS without their customer's knowledge. Following protests, the company was forced to change the registration procedure, assuring that under no circumstances would these identification numbers be used for tracking or marketing.

However, in the meantime, another possible infringement on user anonymity by Microsoft was discovered, when it as found out that MS Office documents, such as Word, Excel or Powerpoint, contain a bug that is capable of tracking the documents as they are sent through the net. The bug sends information about the user who opens the document back to the originating server. A document that contains the bug can be tracked across the globe, through thousands of stopovers. In detailed description of the bug and how it works can be found at the Privacy Foundation's website. Also, there is an example of such a bug at the Privacy Center of the University of Denver.

Of course there are many other ways of collecting users' data and creating appropriating data bodies which can then be used for economic purposes. Indeed, as Bill Gates commented, "information is the lifeblood of business". The electronic information networks are becoming the new frontier of capitalism.

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History: European Tradition

Only in Roman times the first rights referring to artistic works appeared. Regulations resembling a lasting exclusive right to copy did not occur until the 17th century. Before copyright was a private arrangement between guilds able to reproduce copies in commercial quantities.

In France and Western European countries "droits d'auteur" or author's rights is the core of what in the Anglo-American tradition is called copyright. Such rights are rooted in the republican revolution of the late 18th century, and the Rights of Man movement. Today in the European system the creator is front and center; later exploiters are only secondary players.

France

During the 18th century France gradually lost the ability to restrict intellectual property. Before the Revolution, all books, printers and booksellers had to have a royal stamp of approval, called a "privilege". In return for their lucrative monopoly, the French guild of printers and booksellers helped the police to suppress anything that upset royal sensibilities or ran contrary to their interests. Still there were also a whole lot of underground printers who flooded the country with pirated, pornographic and seditious literature. And thousands of writers, most at the edge of starvation.

In 1777 the King threatened the monopoly by reducing the duration of publisher's privileges to the lifetime of the authors. Accordingly a writer's work would go into the public domain after his death and could be printed by anyone. The booksellers fought back by argumenting that, no authority could take their property from them and give it to someone else. Seven months later, in August 1789, the revolutionary government ended the privilege system and from that time on anyone could print anything. Early in 1790 Marie-Jean-Antoine-Nicolas de Caritat, Marquis de Condorcet proposed giving authors power over their own work lasting until ten years after their deaths. The proposal - the basis for France's first modern copyright law - passed in 1793.

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National Science Foundation (NSF)

Established in 1950, the National Science Foundation is an independent agency of the U.S. government dedicated to the funding in basic research and education in a wide range of sciences and in mathematics and engineering. Today, the NSF supplies about one quarter of total federal support of basic scientific research at academic institutions.

http://www.nsf.gov

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/0/0,5716,2450+1+2440,00.html

http://www.nsf.gov/
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