Databody economy and the surveillance state

Databody economy Surveillance state
Promise Reality Promise Reality
universal prosperity universal commercialisation total security total control
frictionless market pacified society political harmony death of democracy


The glamour of the data body economy clouds economic practices which are much less than glamorous. Through the seizure of the data body, practices that in the real political arena were common in the feudal age and in the early industrial age are being reconstructed. The data body economy digitally reconstructs exploitative practices such as slavery and wage labour. However, culturally the data body is still a very new phenomenon: mostly, people think if it does not hurt, it cannot be my body. Exploitation of data bodies is painless and fast. Nevertheless, this can be expected to change once the awareness of the political nature of the data body becomes more widespread. As more and more people routinely move in digitised environments, it is to be expected that more critical questions will be asked and claims to autonomy, at present restricted to some artistic and civil society groups trying to get heard amidst the deafening noise of the commercial ICT propaganda, will be articulated on a more general level.

The more problematic aspect of this development may be something else: the practices of the data body economy, themselves a reconstruction of old techniques of seizure, have begun to re-colonise real political space. Simon Davis, Director of the London-based privacy campaigners Privacy International, one of the foremost critics of modern-day technologies of surveillance and data capturing, has warned against the dangers of a loss of autonomy and undermining of civic rights that are being generated when workplaces are clogged with digital equipment allowing the constant monitoring and surveillance of workers. Unless current trends towards data capturing remain unchecked, the workplace of the future will have many features of the sinister Victorian workhouses that appear Charles Dickens novels, where any claims for autonomy were silenced with references to economic efficiency, and the required discipline imposed by a hierarchy of punishments.

The constant adaptation process required from the modern individual has anonymised and structuralized punishment, which now appears in the guise of error messages and the privatisation of risk.

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The Piracy "Industry"

Until recent years, the problem of piracy (the unauthorized reproduction or distribution of copyrighted works (for commercial purposes)) was largely confined to the copying and physical distribution of tapes, disks and CDs. Yet the emergence and increased use of global data networks and the WWW has added a new dimension to the piracy of intellectual property by permitting still easier copying, electronic sales and transmissions of illegally reproduced copyrighted works on a grand scale.

This new development, often referred to as Internet piracy, broadly relates to the use of global data networks to 1) transmit and download digitized copies of pirated works, 2) advertise and market pirated intellectual property that is delivered on physical media through the mails or other traditional means, and 3) offer and transmit codes or other technologies which can be used to circumvent copy-protection security measures.

Lately the International Intellectual Property Alliance has published a new report on the estimated trade losses due to piracy. (The IIPA assumes that their report actually underestimates the loss of income due to the unlawful copying and distribution of copyrighted works. Yet it should be taken into consideration that the IIPA is the representative of the U.S. core copyright industries (business software, films, videos, music, sound recordings, books and journals, and interactive entertainment software).)

Table: IIPA 1998 - 1999 Estimated Trade Loss due to Copyright Piracy (in millions of US$)





Motion Pictures

Records & Music

Business Applications

Entertainment Software

Books





1999

1998

1999

1998

1999

1998

1999

1998

1999

1998

Total Losses

1323

1421

1684

1613

3211

3437

3020

2952

673

619



Total Losses (core copyright industries)

1999

1998

9910.0

10041.5




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Recent "Digital Copyright" Legislation: U.S.

DMCA (Digital Millennium Copyright Act)

The debates in the House and Senate preceding the signing into law of the DMCA by U.S. President Clinton in October 1998 indicated that the principal object of the Act is to promote the U.S. economy by establishing an efficient Internet marketplace in copyrighted works. The DMCA implements the two 1996 WIPO treaties (WIPO Performances and Phonograms Treaty and WIPO Copyright Treaty) and addresses a variety of issues that arose with the increased availability of content in digital form. The Act 1) creates a series of "safe harbor" defenses (which are subject to a variety of conditions that must be met) for certain common activities of ISPs (Internet Service Provider), 2) bars the circumvention of technological protection measures that protect copyrighted works, 3) prohibits the distribution or provision of false copyright management information with the intent to induce or conceal infringement, 4) establishes an exemption for making a copy of a computer program for purposes of maintenance or repair, and 5) contains provisions concerning the "webcasting" of sound recordings on the Internet and the making of (digital) copies of copyrighted works by nonprofit libraries and archives.

A full-text version of the DMCA is available from:
The Library of Congress: Thomas (Legislative Information on the Internet): http://thomas.loc.gov/cgi-bin/cpquery/z?cp105:hr796:

Moreover the U.S. Copyright Office provides a memorandum, which briefly summarizes each of the five titles of the DMCA (pdf format): http://lcweb.loc.gov/copyright/legislation/dmca.pdf

The DMCA has been criticized for not clarifying the range of legal principles on the liability of ISPs and creating exceptions to only some of the provisions; therefore giving copyright owners even more rights.

Among the variety of comments on the DMCA are:

Lutzker, Arnold P.: Primer on the Digital Millennium: What the Digital Millennium Copyright Act and the Copyright Term Extension Act Mean for the Library Community. http://www.arl.org/info/frn/copy/primer.html

Lutzker & Lutzker law firm and the Association of Research Libraries: The Digital Millennium Copyright Act: Highlights of New Copyright Provision Establishing Limitation of Liability for Online Service Providers. http://www.arl.org/info/frn/copy/osp.html

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Linking and Framing: Cases

Mormon Church v. Sandra and Jerald Tanner

In a ruling of December 1999, a federal judge in Utah temporarily barred two critics of the Mormon Church from posting on their website the Internet addresses of other sites featuring pirated copies of a Mormon text. The Judge said that it was likely that Sandra and Jerald Tanner had engaged in contributory copyright infringement when they posted the addresses of three Web sites that they knew, or should have known, contained the copies.

Kaplan, Carl S.: Copyright Decision Threatens Freedom to Link. In: New York Times. December 10, 1999.

Universal Studios v. Movie-List

The website Movie-List, which features links to online, externally hosted movie trailers has been asked to completely refrain from linking to any of Universal Studio's servers containing the trailers as this would infringe copyright.

Cisneros, Oscar S.: Universal: Don't Link to Us. In: Wired. July 27, 1999.

More cases concerned with the issue of linking, framing and the infringement of intellectual property are published in:

Ross, Alexandra: Copyright Law and the Internet: Selected Statutes and Cases.

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Copyright Management and Control Systems: Metering

Metering systems allow copyright owners to ensure payment to or at the time of a consumer's use of the work. Those technologies include:

Hardware Devices

Those have to be acquired and installed by the user. For example under a debit card approach, the user purchases a debit card that is pre-loaded with a certain amount of value. After installation, the debit card is debited automatically as the user consumes copyrighted works.

Digital Certificates

Hereby a certification authority issues to a user an electronic file that identifies the user as the owner of a public key. Those digital certificates, besides information on the identity of the holder can also include rights associated with a particular person. Vendors can so control access system resources, including copyrighted files, by making them available only to users who can provide a digital certificate with specified rights (e.g. access, use, downloading).

Centralized Computing

Under this approach all of the executables remain at the server. Each time the executable is used, the user's computer must establish contact with the server, allowing the central computer to meter access.

Access Codes

Access code devices permit users to "unlock" protective mechanisms (e.g. date bombs or functional limitations) embedded in copyrighted works. Copyright owners can meter the usage of their works, either by unlocking the intellectual property for a one-time license fee or by requiring periodic procurement of access codes.

Copyright Clearinghouses

Under this approach copyright owners would commission "clearinghouses" with the ability to license the use of their works. A user would pay a license fee to obtain rights concerning the intellectual property.


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Copyright Management and Control Systems: Post-Infringement

Post-infringement technologies allow the owners of copyrighted works to identify infringements and thus enhance enforcement of intellectual property rights and encompass systems such as:

Steganography

Applied to electronic files, steganography refers to the process of hiding information in files that can not be easily detected by users. Steganography can be used by intellectual property owners in a variety of ways. One is to insert into the file a "digital watermark" which can be used to prove that an infringing file was the creation of the copyright holder and not the pirate. Other possibilities are to encode a unique serial number into each authorized copy or file, enabling the owner to trace infringing copies to a particular source, or to store copyright management information.

Agents

Agents are programs that can implement specified commands automatically. Copyright owners can use agents to search the public spaces of the Internet to find infringing copies. Although the technology is not yet very well developed full-text search engines allow similar uses.

Copyright Litigation

While not every infringement will be the subject of litigation, the threat of litigation helps keep large pirate operations in check. It helps copyright owners obtain relief for specific acts of infringement and publicly warns others of the dangers of infringement.

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Challenges for Copyright by ICT: Copyright Owners

The main concern of copyright owners as the (in terms of income generation) profiteers of intellectual property protection is the facilitation of pirate activities in digital environments.

Reproduction and Distribution

Unlike copies of works made using analog copiers (photocopy machines, video recorders etc.) digital information can be reproduced extremely fast, at low cost and without any loss in quality. Since each copy is a perfect copy, no quality-related limits inhibit pirates from making as many copies as they please, and recipients of these copies have no incentive to return to authorized sources to get another qualitatively equal product. Additionally the costs of making one extra copy of intellectual property online are insignificant, as are the distribution costs if the copy is moved to the end user over the Internet.

Control and Manipulation

In cross-border, global data networks it is almost impossible to control the exploitation of protected works. Particularly the use of anonymous remailers and other existing technologies complicates the persecution of pirates. Also digital files are especially vulnerable to manipulation, of the work itself, and of the (in some cases) therein-embedded copyright management information.

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Basics: Acquisition of Copyright

The laws of almost all countries provide that protection is independent of any formalities. Copyright protection then starts as soon as the work is created.

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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 and the "Information Society" Metaphor

Today the talk about the so-called "information society" is ubiquitous. By many it is considered as the successor of the industrial society and said to represent a new form of societal and economical organization. This claim is based on the argument, that the information society uses a new kind of resource, which fundamentally differentiates from that of its industrial counterpart. Whereas industrial societies focus on physical objects, the information society's raw material is said to be knowledge and information. Yet the conception of the capitalist system, which underlies industrial societies, also continues to exist in an information-based environment. Although there have been changes in the forms of manufacture, the relations of production remain organized on the same basis. The principle of property.

In the context of a capitalist system based on industrial production the term property predominantly relates to material goods. Still even as in an information society the raw materials, resources and products change, the concept of property persists. It merely is extended and does no longer solely consider physical objects as property, but also attempts to put information into a set of property relations. This new kind of knowledge-based property is widely referred to as "intellectual property". Although intellectual property in some ways represents a novel form of property, it has quickly been integrated in the traditional property framework. Whether material or immaterial products, within the capitalist system they are both treated the same - as property.

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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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Problems of Copyright Management and Control Technologies

Profiling and Data Mining

At their most basic copyright management and control technologies might simply be used to provide pricing information, negotiate the purchase transaction, and release a copy of a work for downloading to the customer's computer. Still, from a technological point of view, such systems also have the capacity to be employed for digital monitoring. Copyright owners could for example use the transaction records generated by their copyright management systems to learn more about their customers. Profiles, in their crudest form consisting of basic demographic information, about the purchasers of copyrighted material might be created. Moreover copyright owners could use search agents or complex data mining techniques to gather more information about their customers that could either be used to market other works or being sold to third parties.

Fair Use

Through the widespread use of copyright management and control systems the balance of control could excessively be shifted in favor of the owners of intellectual property. The currently by copyright law supported practice of fair use might potentially be restricted or even eliminated. While information in analogue form can easily be reproduced, the protection of digital works through copyright management systems might complicate or make impossible the copying of material for purposes, which are explicitly exempt under the doctrine of fair use.

Provisions concerning technological protection measures and fair use are stated in the DMCA, which provides that "Since copying of a work may be a fair use under appropriate circumstances, section 1201 does not prohibit the act of circumventing a technological measure that prevents copying. By contrast, since the fair use doctrine is not a defense e to the act of gaining unauthorized access to a work, the act of circumventing a technological measure in order to gain access is prohibited." Also the proposed EU Directive on copyright and related rights in the information society contains similar clauses. It distinguishes between the circumvention of technical protection systems for lawful purposes (fair use) and the circumvention to infringe copyright. Yet besides a still existing lack of legal clarity also very practical problems arise. Even if the circumvention of technological protection measures under fair use is allowed, how will an average user without specialized technological know-how be able to gain access or make a copy of a work? Will the producers of copyright management and control systems provide fair use versions that permit the reproduction of copyrighted material? Or will users only be able to access and copy works if they hold a digital "fair use license" ("fair use licenses" have been proposed by Mark Stefik, whereby holders of such licenses could exercise some limited "permissions" to use a digital work without a fee)?

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Saddam Hussein

Saddam Hussein joined the revolutionary Baath party when he was a university student. In 1958 he had the head of Iraq, Abdul-Karim Qassim, killed. Since 1979 he has been President of Iraq. Under his reign Iraq fought a decade-long war with Iran. Because of his steady enmity with extreme Islamic leaders the West supported him first of all, until his army invaded Kuwait in August 1990, an incident that the USA led to the Gulf War. Since then many rumors about a coup d'état have been launched, but Saddam Hussein is still in unrestricted power.

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Amazon.Com

Amazon.Com was one of the first online bookstores. With thousands of books, CDs and videos ordered via the Internet every year, Amazon.Com probably is the most successful Internet bookstore.

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Total copyright industries

The total copyright industries encompass the "core copyright industries" and portions of many other industries that either create, distribute, or depend upon copyrighted works. Examples include retail trade (a portion of which is sales of video, audio, software, and books, for example), the doll and toy industry, and computer manufacturing.


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Blaise Pascal

b. June 19, 1623, Clermont-Ferrand, France
d. August 19, 1662, Paris, France

French mathematician, physicist, religious philosopher, and master of prose. He laid the foundation for the modern theory of probabilities, formulated what came to be known as Pascal's law of pressure, and propagated a religious doctrine that taught the experience of God through the heart rather than through reason. The establishment of his principle of intuitionism had an impact on such later philosophers as Jean-Jacques Rousseau and Henri Bergson and also on the Existentialists.

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Defense Advanced Research Project Agency (DARPA)

DARPA (Defense Advanced Research Projects Agency) is the independent research branch of the U.S. Department of Defense that, among its other accomplishments, funded a project that in time was to lead to the creation of the Internet. Originally called ARPA (the "D" was added to its name later), DARPA came into being in 1958 as a reaction to the success of Sputnik, Russia's first manned satellite. DARPA's explicit mission was (and still is) to think independently of the rest of the military and to respond quickly and innovatively to national defense challenges.

In the late 1960s, DARPA provided funds and oversight for a project aimed at interconnecting computers at four university research sites. By 1972, this initial network, now called the ARPAnet, had grown to 37 computers. ARPANet and the technologies that went into it, including the evolving Internet Protocol (IP) and the Transmission Control Protocol (TCP), led to the Internet that we know today.

http://www.darpa.mil

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AT&T

AT&T Corporation provides voice, data and video communications services to large and small businesses, consumers and government entities. AT&T and its subsidiaries furnish domestic and international long distance, regional, local and wireless communications services, cable television and Internet communications services. AT&T also provides billing, directory and calling card services to support its communications business. AT&T's primary lines of business are business services, consumer services, broadband services and wireless services. In addition, AT&T's other lines of business include network management and professional services through AT&T Solutions and international operations and ventures. In June 2000, AT&T completed the acquisition of MediaOne Group. With the addition of MediaOne's 5 million cable subscribers, AT&T becomes the country's largest cable operator, with about 16 million customers on the systems it owns and operates, which pass nearly 28 million American homes. (source: Yahoo)

Slogan: "It's all within your reach"

Business indicators:

Sales 1999: $ 62.391 bn (+ 17,2 % from 1998)

Market capitalization: $ 104 bn

Employees: 107,800

Corporate website: http://www.att.com http://www.att.com/
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Extranet

An Extranet is an Intranet with limited and controlled access by authenticated outside users, a business-to-business Intranet, e.g.

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Internet Engineering Steering Group

On behalf of the Internet Society, the Internet Engineering Steering Group is responsible for the technical management of the evolution of the architecture, the standards and the protocols of the Net.

http://www.ietf.org/iesg.html

http://www.ietf.org/iesg.html
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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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Bill Clinton

William J. Clinton (* 1946) studied law at Yale University, then taught at the University of Arkansas. He was elected Arkansas attorney general in 1976 and served as a governor until 1992. That year he became U.S.-President, the first democratic President after a row of Republicans. His sexual affairs not only cost him nearly his career but he also had to distract from his private affairs: he thought of fighting another war against Saddam Hussein in February 1999. Short afterwards he had a more interesting enemy, Slobodan Milosevic - and the NATO was most willing to fight with him.

For more information see: http://www.whitehouse.gov/WH/glimpse/presidents/html/bc42.html

http://www.whitehouse.gov/WH/glimpse/presiden...
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Wide Area Network (WAN)

A Wide Area Network is a wide area proprietary network or a network of local area networks. Usually consisting of computers, it may consist of cellular phones, too.

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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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