Individualized Audience Targeting

New opportunities for online advertisers arise with the possibility of one-to-one Web applications. Software agents for example promise to "register, recognize and manage end-user profiles; create personalized communities on-line; deliver personalized content to end-users and serve highly targeted advertisements". The probably ultimate tool for advertisers. Although not yet widely used, companies like Amazon.Com have already started to exploit individualized audience targeting for their purposes.

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Basics: Introduction

Copyright law is a branch of intellectual property law and deals with the rights of intellectual creators in their works. The scope of copyright protection as laid down in Article 2 of the 1996 WIPO Copyright Treaty "... extends to expressions and not to ideas, procedures, methods of operation or mathematical concepts as such." Copyright law protects the creativity concerning the choice and arrangement of words, colors, musical notes etc. It grants the creators of certain specified works exclusive rights relating to the "copying" and use of their original creation.


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Feeding the data body

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Data bunkers

Personal data are collected, appropriated, processed and used for commercial purposes on a global scale. In order for such a global system to operate smoothly, there a server nodes at which the data streams converge. Among the foremost of these are the data bases of credit card companies, whose operation has long depended on global networking.

On top of credit card companies such as Visa, American Express, Master Card, and others. It would be erroneous to believe that the primary purpose of business of these companies is the provision of credit, and the facilitation of credit information for sale transactions. In fact, Information means much more than just credit information. In an advertisement of 1982, American Express described itself in these terms: ""Our product is information ...Information that charges airline tickets, hotel rooms, dining out, the newest fashions ...information that grows money funds buys and sells equities ...information that pays life insurance annuities ...information that schedules entertainment on cable television and electronically guards houses ...information that changes kroners into guilders and figures tax rates in Bermuda ..."

Information has become something like the gospel of the New Economy, a doctrine of salvation - the life blood of society, as Bill Gates expresses it. But behind information there are always data that need to be generated and collected. Because of the critical importance of data to the economy, their possession amounts to power and their loss can cause tremendous damage. The data industry therefore locates its data warehouses behind fortifications that bar physical or electronic access. Such structures are somewhat like a digital reconstruction of the medieval fortress

Large amounts of data are concentrated in fortress-like structures, in data bunkers. As the Critical Art Ensemble argue in Electronic Civil Disobedience: "The bunker is the foundation of homogeneity, and allows only a singular action within a given situation." All activities within data bunker revolve around the same principle of calculation. Calculation is the predominant mode of thinking in data-driven societies, and it reaches its greatest density inside data bunkers. However, calculation is not a politically neutral activity, as it provides the rational basis - and therefore the formal legitimisation most every decision taken. Data bunkers therefore have an essentially conservative political function, and function to maintain and strengthen the given social structures.

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Biometrics applications: gate keeping

Identity has to do with "place". In less mobile societies, the place where a person finds him/herself tells us something about his/her identity. In pre-industrial times, gatekeepers had the function to control access of people to particular places, i.e. the gatekeepers function was to identify people and then decide whether somebody's identity would allow that person to physically occupy another place - a town, a building, a vehicle, etc.

In modern societies, the unambiguous nature of place has been weakened. There is a great amount of physical mobility, and ever since the emergence and spread of electronic communication technologies there has been a "virtualisation" of places in what today we call "virtual space" (unlike place, space has been a virtual reality from the beginning, a mathematical formula) The question as to who one is no longer coupled to the physical abode. Highly mobile and virtualised social contexts require a new generation of gatekeepers which biometric technology aims to provide.

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Private data bunkers

On the other hand are the data bunkers of the private sector, whose position is different. Although these are fast-growing engines of data collection with a much greater degree of dynamism, they may not have the same privileged position - although one has to differentiate among the general historical and social conditions into which a data bunker is embedded. For example, it can safely be assumed that the databases of a large credit card company or bank are more protected than the bureaucracies of small developing countries.

Private data bunkers include

    Banks

    Building societies

    Credit bureaus

    Credit card companies

    Direct marketing companies

    Insurance companies

    Telecom service providers

    Mail order stores

    Online stores


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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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Challenges for Copyright by ICT: Internet Service Providers

ISPs (Internet Service Providers) (and to a certain extent also telecom operators) are involved in the copyright debate primarily because of their role in the transmission and storage of digital information. Problems arise particularly concerning caching, information residing on systems or networks of ISPs at the directions of users and transitory communication.

Caching

Caching it is argued could cause damage because the copies in the cache are not necessarily the most current ones and the delivery of outdated information to users could deprive website operators of accurate "hit" information (information about the number of requests for a particular material on a website) from which advertising revenue is frequently calculated. Similarly harms such as defamation or infringement that existed on the original page may propagate for years until flushed from each cache where they have been replicated.

Although different concepts, similar issues to caching arise with mirroring (establishing an identical copy of a website on a different server), archiving (providing a historical repository for information, such as with newsgroups and mailing lists), and full-text indexing (the copying of a document for loading into a full-text or nearly full-text database which is searchable for keywords or concepts).

Under a literal reading of some copyright laws caching constitutes an infringement of copyright. Yet recent legislation like the DMCA or the proposed EU Directive on copyright and related rights in the information society (amended version) have provided exceptions for ISPs concerning particular acts of reproduction that are considered technical copies (caching). Nevertheless the exemption of liability for ISPs only applies if they meet a variety of specific conditions. In the course of the debate about caching also suggestions have been made to subject it to an implied license or fair use defense or make it (at least theoretically) actionable.

Information Residing on Systems or Networks at the Direction of Users

ISPs may be confronted with problems if infringing material on websites (of users) is hosted on their systems. Although some copyright laws like the DMCA provide for limitations on the liability of ISPs if certain conditions are met, it is yet unclear if ISPs should generally be accountable for the storage of infringing material (even if they do not have actual knowledge) or exceptions be established under specific circumstances.

Transitory Communication

In the course of transmitting digital information from one point on a network to another ISPs act as a data conduit. If a user requests information ISPs engage in the transmission, providing of a connection, or routing thereof. In the case of a person sending infringing material over a network, and the ISP merely providing facilities for the transmission it is widely held that they should not be liable for infringement. Yet some copyright laws like the DMCA provide for a limitation (which also covers the intermediate and transient copies that are made automatically in the operation of a network) of liability only if the ISPs activities meet certain conditions.

For more information on copyright (intellectual property) related problems of ISPs (BBSs (Bulletin Board Service Operators), systems operators and other service providers) see:

Harrington, Mark E.: On-line Copyright Infringement Liability for Internet Service Providers: Context, Cases & Recently Enacted Legislation. In: Intellectual Property and Technology Forum. June 4, 1999.

Teran, G.: Who is Vulnerable to Suit? ISP Liability for Copyright Infringement. November 2, 1999.

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Virtual body and data body



The result of this informatisation is the creation of a virtual body which is the exterior of a man or woman's social existence. It plays the same role that the physical body, except located in virtual space (it has no real location). The virtual body holds a certain emancipatory potential. It allows us to go to places and to do things which in the physical world would be impossible. It does not have the weight of the physical body, and is less conditioned by physical laws. It therefore allows one to create an identity of one's own, with much less restrictions than would apply in the physical world.

But this new freedom has a price. In the shadow of virtualisation, the data body has emerged. The data body is a virtual body which is composed of the files connected to an individual. As the Critical Art Ensemble observe in their book Flesh Machine, the data body is the "fascist sibling" of the virtual body; it is " a much more highly developed virtual form, and one that exists in complete service to the corporate and police state."

The virtual character of the data body means that social regulation that applies to the real body is absent. While there are limits to the manipulation and exploitation of the real body (even if these limits are not respected everywhere), there is little regulation concerning the manipulation and exploitation of the data body, although the manipulation of the data body is much easier to perform than that of the real body. The seizure of the data body from outside the concerned individual is often undetected as it has become part of the basic structure of an informatised society. But data bodies serve as raw material for the "New Economy". Both business and governments claim access to data bodies. Power can be exercised, and democratic decision-taking procedures bypassed by seizing data bodies. This totalitarian potential of the data body makes the data body a deeply problematic phenomenon that calls for an understanding of data as social construction rather than as something representative of an objective reality. How data bodies are generated, what happens to them and who has control over them is therefore a highly relevant political question.

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Databody convergence

In the phrase "the rise of the citizen as a consumer", to be found on the EDS website, the cardinal political problem posed by the databody industry is summarised: the convergence of commercial and political interest in the data body business, the convergence of bureaucratic and commercial data bodies, the erosion of privacy, and the consequent undermining of democratic politics by private business interest.

When the citizen becomes a consumer, the state must become a business. In the data body business, the key word behind this new identity of government is "outsourcing". Functions, that are not considered core functions of government activity are put into the hands of private contractors.

There have long been instances where privately owned data companies, e.g. credit card companies, are allowed access to public records, e.g. public registries or electoral rolls. For example, in a normal credit card transaction, credit card companies have had access to public records in order to verify identity of a customer. For example, in the UK citizen's personal data stored on the Electoral Roll have been used for commercial purposes for a long time. The new British Data Protection Act now allows people to "opt out" of this kind of commercialisation - a legislation that has prompted protests on the part of the data industry: Experian has claimed to lose LST 500 mn as a consequence of this restriction - a figure that, even if exaggerated, may help to understand what the value of personal data actually is.

While this may serve as an example of an increased public awareness of privacy issues, the trend towards outsourcing seems to lead to a complete breakdown of the barriers between commercial and public use of personal data. This trend can be summarised by the term "outsourcing" of government functions.

Governments increasingly outsource work that is not considered core function of government, e.g. cooking meals in hospitals or mowing lawns in public parks. Such peripheral activities marked a first step of outsourcing. In a further step, governmental functions were divided between executive and judgemental functions, and executive functions increasingly entrusted to private agencies. For these agencies to be able to carry out the work assigned to them, the need data. Data that one was stored in public places, and whose handling was therefore subject to democratic accountability. Outsourcing has produced gains in efficiency, and a decrease of accountability. Outsourced data are less secure, what use they are put to is difficult to control.

The world's largest data corporation, EDS, is also among the foremost outsourcing companies. In an article about EDS' involvement in government outsourcing in Britain, Simon Davies shows how the general trend towards outsourcing combined with advances in computer technology allow companies EDS, outside of any public accountability, to create something like blueprints for the societies of the 21st century. But the problem of accountability is not the only one to be considered in this context. As Davies argues, the data business is taking own its own momentum "a ruthless company could easily hold a government to ransom". As the links between government agencies and citizens thin out, however, the links among the various agencies might increase. Linking the various government information systems would amount to further increase in efficiency, and a further undermining of democracy. The latter, after all, relies upon the separation of powers - matching government information systems would therefore pave the way to a kind of electronic totalitarianism that has little to do with the ideological bent of George Orwell's 1984 vision, but operates on purely technocratic principles.

Technically the linking of different systems is already possible. It would also create more efficiency, which means generate more income. The question, then, whether democracy concerns will prevent it from happening is one that is capable of creating

But what the EDS example shows is something that applies everywhere, and that is that the data industry is whether by intention or whether by default, a project with profound political implications. The current that drives the global economy deeper and deeper into becoming a global data body economy may be too strong to be stopped by conventional means.

However, the convergence of political and economic data bodies also has technological roots. The problem is that politically motivated surveillance and economically motivated data collection are located in the same area of information and communication technologies. For example, monitoring internet use requires more or less the same technical equipment whether done for political or economic purposes. Data mining and data warehousing techniques are almost the same. Creating transparency of citizens and customers is therefore a common objective of intelligence services and the data body industry. Given that data are exchanged in electronic networks, a compatibility among the various systems is essential. This is another factor that encourages "leaks" between state-run intelligence networks and the private data body business. And finally, given the secretive nature of state intelligence and commercial data capturing , there is little transparency. Both structures occupy an opaque zone.

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Intellectual Property: A Definition

Intellectual property, very generally, relates to the output, which result from intellectual activity in the industrial, scientific, literary and artistic fields. Traditionally intellectual property is divided into two branches:

1) Industrial Property

a) Inventions
b) Marks (trademarks and service marks)
c) Industrial designs
d) Unfair competition (trade secrets)
e) Geographical indications (indications of source and appellations of origin)

2) Copyright

The protection of intellectual property is guaranteed through a variety of laws, which grant the creators of intellectual goods, and services certain time-limited rights to control the use made of their products. Those rights apply to the intellectual creation as such, and not to the physical object in which the work may be embodied.

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Clipper Chip

The Clipper Chip is a cryptographic device proposed by the U.S. government that purportedly intended to protect private communications while at the same time permitting government agents to obtain the "keys" upon presentation of what has been vaguely characterized as "legal authorization." The "keys" are held by two government "escrow agents" and would enable the government to access the encrypted private communication. While Clipper would be used to encrypt voice transmissions, a similar chip known as Capstone
would be used to encrypt data. The underlying cryptographic algorithm, known as Skipjack, was developed by the National Security Agency (NSA).

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Bruce Schneier

Bruce Schneier is president of Counterpane Systems in Minneapolis. This consulting enterprise specialized in cryptography and computer security. He is the author of the book Applied Cryptography and inventor of the Blowfish and Twofish encryption algorithms.

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French laws against anonymity on the Net

Since the end of June in France anonymous publishing - on the World Wide Web, in newsgroups, mailing lists or chat rooms - is prohibited. The use of pseudonyms, so popular in chat rooms, e.g., is not restricted, but the true identities of those who "publish" on the Net must be known to the users' Internet service and Internet content providers. Additionally, Internet providers are obliged to point out the possibility of blocking access to material to their customers and to offer them appropriate technology for blocking access.

Loi sur la communication audiovisuelle, http://www.legalis.net/jnet/2000/loi-audio/projetloi-fin.htm

Source: Florian Rötzer, Frankreich hat mit der Anonymität im internet Schluss gemacht, in: Telepolis, July 2, 2000

http://www.heise.de/tp
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American Express

U.S. company founded on March 18, 1850, as an express-transportation company, but today operating as a worldwide organization providing primarily travel-related and insurance services and international finance operations and banking. Headquarters are in New York City.

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Vacuum tube

The first half of the 20th century was the era of the vacuum tube in electronics. This variety of electron tube permitted the development of radio broadcasting, long-distance telephony, television, and the first electronic digital computers. These early electronic computers were, in fact, the largest vacuum-tube systems ever built. Perhaps the best-known representative is the ENIAC (Electronic Numerical Integrator and Computer, completed in 1946).

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Philip Morris

American holding company founded in 1985, the owner of several major American companies, notably Philip Morris Inc., the General Foods Corporation, and Kraft, Inc., with diversified interests in tobacco and food products. In 1988 Philip Morris acquired Kraft, Inc., a large maker of cheeses and grocery products. Philip Morris thus became one of the world's largest corporate producers of consumer goods. Its headquarters are in New York City.

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Transistor

A transistor is a solid-state device for amplifying, controlling, and generating electrical signals. Transistors are used in a wide array of electronic equipment, ranging from pocket calculators and radios to industrial robots and communications satellites.

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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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CIM

To perform manufacturing firm's functions related to design and production the CAD/CAM technology, for computer-aided design and computer-aided manufacturing, was developed. Today it is widely recognized that the scope of computer applications must extend beyond design and production to include the business functions of the firm. The name given to this more comprehensive use of computers is computer-integrated manufacturing (CIM).

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Chevron

Chevron is a U.S. petroleum corporation formed in 1926 with the merger of Standard Oil Company of California and Pacific Oil Company. Headquartered in San Francisco, it operates today in more than 90 countries, either directly or through affiliates.

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Eli Lilly & Company

Eli Lilly & Company discovers, develops, manufactures, and sells pharmaceutical and animal health care products. Research efforts are directed primarily towards discovering and developing products to diagnose and treat diseases in human beings and animals and to increase the efficiency of animal food production. Pharmaceutical products comprise neuroscience products, endocrine products and anti-invectives. Products are manufactured and distributed through owned or leased facilities in the United States, Puerto Rico, and 27 other countries and sold in approximately 160 countries.

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Internet Society

Founded in 1992, the Internet Society is an umbrella organization of several mostly self-organized organizations dedicated to address the social, political, and technical issues, which arise as a result of the evolution and the growth of the Net. Its most important subsidiary organizations are the Internet Architecture Board, the Internet Engineering Steering Group, the Internet Engineering Task Force, the Internet Research Task Force, and the Internet Societal Task Force.

Its members comprise companies, government agencies, foundations, corporations and individuals. The Internet Society is governed by elected trustees.

http://www.isoc.org

http://www.isoc.org/
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