Virtual cartels; mergers

In parallel to the deregulation of markets, there has been a trend towards large-scale mergers which ridicules dreams of increased competition.

Recent mega-mergers and acquisitions include

SBC Communications - Ameritech, $ 72,3 bn

Bell Atlantic - GTE, $ 71,3

AT&T - Media One, $ 63,1

AOL - Time Warner, $ 165 bn

MCI Worldcom - Spring, $ 129 bn

The total value of all major mergers since the beginnings of the 1990s has been 20 trillion Dollars, 2,5 times the size of the USA's GIP.

The AOL- Time Warner reflects a trend which can be observed everywhere: the convergence of the ICT and the content industries. This represents the ultimate advance in complete market domination, and a alarming threat to independent content.

"Is TIME going to write something negative about AOL? Will AOL be able to offer anything other than CNN sources? Is the Net becoming as silly and unbearable as television?"

(Detlev Borchers, journalist)

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Biometric applications: surveillance

Biometric technologies are not surveillance technologies in themselves, but as identification technologies they provide an input into surveillance which can make such as face recognition are combined with camera systems and criminal data banks in order to supervise public places and single out individuals.

Another example is the use of biometrics technologies is in the supervision of probationers, who in this way can carry their special hybrid status between imprisonment and freedom with them, so that they can be tracked down easily.

Unlike biometric applications in access control, where one is aware of the biometric data extraction process, what makes biometrics used in surveillance a particularly critical issue is the fact that biometric samples are extracted routinely, unnoticed by the individuals concerned.

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Product Placement

With television still being very popular, commercial entertainment has transferred the concept of soap operas onto the Web. The first of this new species of "Cybersoaps" was "The Spot", a story about the ups and downs of an American commune. The Spot not only within short time attracted a large audience, but also pioneered in the field of online product placement. Besides Sony banners, the companies logo is also placed on nearly every electronic product appearing in the story. Appearing as a site for light entertainment, The Spots main goal is to make the name Sony and its product range well known within the target audience.

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Legal Protection: WIPO (World Intellectual Property Organization)

Presumably the major player in the field of international intellectual property protection and administrator of various multilateral treaties dealing with the legal and administrative aspects of intellectual property is the WIPO.

Information on WIPO administered agreements in the field of industrial property (Paris Convention for the Protection of Industrial Property (1883), Madrid Agreement Concerning the International Registration of Marks (1891) etc.) can be found on: http://www.wipo.org/eng/general/index3.htm

Information on treaties concerning copyright and neighboring rights (Berne Convention for the Protection of Literary and Artistic Works (1886) etc.) is published on: http://www.wipo.org/eng/general/index5.htm

The most recent multilateral agreement on copyright is the 1996 WIPO Copyright Treaty. Among other things it provides that computer programs are protected as literary works and also introduces the protection of databases, which "... by reason of the selection or arrangement of their content constitute intellectual creations." Furthermore the 1996 WIPO Copyright Treaty contains provisions concerning technological measures, rights management information and establishes a new "right of communication to the public". It is available on: http://www.wipo.org/eng/diplconf/distrib/treaty01.htm

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Hill & Knowlton

Although it is generally hard to distinguish between public relations and propaganda, Hill & Knowlton, the worlds leading PR agency, represents an extraordinary example for the manipulation of public opinion with public relations activities. Hill & Knowlton did not only lobby for countries, accused of the abuse of human rights, like China, Peru, Israel, Egypt and Indonesia, but also represented the repressive Duvalier regime in Haiti.

It furthermore played a central role in the Gulf War. On behalf of the Kuwaiti government it presented a 15-year-old girl to testify before Congress about human rights violations in a Kuwaiti hospital. The girl, later found out to be the daughter of Kuwait's ambassador to the U.S., and its testimony then became the centerpiece of a finely tuned PR campaign orchestrated by Hill & Knowlton and co-ordinated with the White House on behalf of the government of Kuwait an the Citizens for a Free Kuwait group. Inflaming public opinion against Iraq and bringing the U.S. Congress in favor of war in the Gulf, this probably was one of the largest and most effective public relations campaigns in history.

Running campaigns against abortion for the Catholic Church and representing the Church of Scientology, large PR firms like Hill & Knowlton, scarcely hesitate to manipulate public and congressional opinion and government policy through media campaigns, congressional hearings, and lobbying, when necessary. Also co-operation with intelligence agencies seems to be not unknown to Hill & Knowlton.

Accused of pursuing potentially illegal proxy spying operation for intelligence agencies, Richard Cheney, head of Hill & Knowltons New York office, denied this allegations, but said that "... in such a large organization you never know if there's not some sneak operation going on." On the other hand former CIA official Robert T. Crowley acknowledged, that "Hill & Knowlton's overseas offices were perfect 'cover` for the ever-expanding CIA. Unlike other cover jobs, being a public relations specialist did not require technical training for CIA officers." Furthermore the CIA, Crowley admitted, used its Hill & Knowlton connections to "... put out press releases and make media contacts to further its positions. ... Hill & Knowlton employees at the small Washington office and elsewhere distributed this material through CIA assets working in the United States news media."

(Source: Carlisle, Johan: Public Relationships: Hill & Knowlton, Robert Gray, and the CIA. http://mediafilter.org/caq/)

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Other biometric technologies

Other biometric technologies not specified here include ear recognition, signature dynamics, key stroke dynamics, vein pattern recognition, retinal scan, body odour recognition, and DNA recognition. These are technologies which are either in early stages of development or used in highly specialised and limited contexts.

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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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Legal Protection: European Union

Within the EU's goal of establishing a European single market also intellectual property rights are of significance. Therefore the European Commission aims at the harmonization of the respective national laws of the EU member states and for a generally more effective protection of intellectual property on an international level. Over the years it has adopted a variety of Conventions and Directives concerned with different aspects of the protection of industrial property as well as copyright and neighboring rights.

An overview of EU activities relating to intellectual property protection is available on the website of the European Commission (DG Internal Market): http://www.europa.eu.int/comm/internal_market/en/intprop/intprop/index.htm

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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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Vinton Cerf

Addressed as one of the fathers of the Internet, Vinton Cerf together with Robert Kahn developed the TCP/IP protocol suite, up to now the de facto-communication standard for the Internet, and also contributed to the development of other important communication standards. The early work on the protocols broke new ground with the realization of a multi-network open architecture.

In 1992, he co-founded the Internet Society where he served as its first President and later Chairman.

Today, Vinton Cerf is Senior Vice President for Internet Architecture and Technology at WorldCom, one of the world's most important ICT companies

Vinton Cerf's web site: http://www.wcom.com/about_the_company/cerfs_up/

http://www.isoc.org/
http://www.wcom.com/
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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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Cutting

The cutting of pictures in movies or photographs is highly manipulative: it is easy to produce a new video out of an already existing one. The result is a form of manipulation that is difficult to contradict. A reputation destroyed by this, is nearly impossible to heal.

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Technological measures

As laid down in the proposed EU Directive on copyright and related rights in the information society technological measures mean "... any technology, device, or component that, in the normal course of its operations, is designed to prevent or inhibit the infringement of any copyright..." The U.S. DMCA (Digital Millennium Copyright Act) divides technological measures in two categories: 1) measures that prevent unauthorized access to a copyrighted work, and 2) measures that prevent unauthorized copying of a copyrighted work. Also the making or selling of devices or services that can be used to circumvent either category of technological measures is prohibited under certain circumstances in the DMCA. Furthermore the 1996 WIPO Copyright Treaty states that the "... contracting parties shall provide adequate legal protection and effective legal remedies against the circumvention of effective technological measures that are used by authors..."

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Internet Architecture Board

On behalf of the Internet Society, the Internet Architecture Board oversees the evolution of the architecture, the standards and the protocols of the Net.

Internet Society: http://www.isoc.org/iab

http://www.isoc.org/
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Gerard J. Holzmann and Bjoern Pehrson, The Early History of Data Networks

This book gives a fascinating glimpse of the many documented attempts throughout history to develop effective means for long distance communications. Large-scale communication networks are not a twentieth-century phenomenon. The oldest attempts date back to millennia before Christ and include ingenious uses of homing pigeons, mirrors, flags, torches, and beacons. The first true nationwide data networks, however, were being built almost two hundred years ago. At the turn of the 18th century, well before the electromagnetic telegraph was invented, many countries in Europe already had fully operational data communications systems with altogether close to one thousand network stations. The book shows how the so-called information revolution started in 1794, with the design and construction of the first true telegraph network in France, Chappe's fixed optical network.

http://www.it.kth.se/docs/early_net/

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Intellectual property

Intellectual property, very generally, relates to the output that result from intellectual activity in the industrial, scientific, literary and artistic fields. Traditionally intellectual property is divided into two branches: 1) industrial property (inventions, marks, industrial designs, unfair competition and geographical indications), and 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.

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Donna Haraway

Ever since the publication of her Cyborg Manifesto Donna Haraway has been providing widely received theoretical contributions to the debate around artificial life. In the "Manifesto" she considers the political and social implications of the advent of artificial beings. A radical feminist, Haraway combines in her theoretical approach philosophy, cultural studies and gender studies.

Hyperlink to Donna Haraway: http://www.asahi-net.or.jp/~RF6T-TYFK/haraway.htmlWired Archive interviews with DH: http://www.wired.com/wired/archive//5.02/ffharaway.html?person=donna_haraway&topic_set=wiredpeople

http://www.asahi-net.or.jp/~RF6T-TYFK/haraway...
http://www.wired.com/wired/archive//5.02/ffha...
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Amazon.com

Amazon.com is an online shop that serves approx. 17 mn customers in 150 countries. Starting out as a bookshop, Amazon today offers a wide range of other products as well.

Among privacy campaigners, the company's name has become almost synonymous with aggressive online direct marketing practices as well as user profiling and tracking. Amazon and has been involved in privacy disputes at numerous occasions.

http://www.amazon.com/
http://www.computeruser.com/newstoday/00/01/0...
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Core copyright industries

Those encompass the industries that create copyrighted works as their primary product. These industries include the motion picture industry (television, theatrical, and home video), the recording industry (records, tapes and CDs), the music publishing industry, the book, journal and newspaper publishing industry, and the computer software industry (including data processing, business applications and interactive entertainment software on all platforms), legitimate theater, advertising, and the radio, television and cable broadcasting industries.

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