Feeding the data body

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The Copyright Industry

Copyright is not only about protecting the rights of creators, but has also become a major branch of industry with significant contributions to the global economy. According to the International Intellectual Property Alliance the U.S. copyright industry has grown almost three times as fast as the economy as a whole for the past 20 years. In 1997, the total copyright industries contributed an estimated US$ 529.3 billion to the U.S. economy with the core copyright industries accounting for US$ 348.4 billion. Between 1977 and 1997, the absolute growth rate of value added to the U.S. GDP by the core copyright industries was 241 %. Also the copyright industry's foreign sales in 1997 (US$ 66.85 billion for the core copyright industries) were larger than the U.S. Commerce Department International Trade Administration's estimates of the exports of almost all other leading industry sectors. They exceeded even the combined automobile and automobile parts industries, as well as the agricultural sector.

In an age where knowledge and information become more and more important and with the advancement of new technologies, transmission systems and distribution channels a further increase in the production of intellectual property is expected. Therefore as copyright establishes ownership in intellectual property it is increasingly seen as the key to wealth in the future.

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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argued could cause damage because the copies in the cache are not necessarily the most current ones and the delivery of outdated information to users could deprive website operators of accurate "hit" information (information about the number of requests for a particular material on a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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Positions Towards the Future of Copyright in the "Digital Age"

With the development of new transmission, distribution and publishing technologies and the increasing digitalization of information copyright has become the subject of vigorous debate. Among the variety of attitudes towards the future of traditional copyright protection two main tendencies can be identified:

Eliminate Copyright

Anti-copyrightists believe that any intellectual property should be in the public domain and available for all to use. "Information wants to be free" and copyright restricts people's possibilities concerning the utilization of digital content. An enforced copyright will lead to a further digital divide as copyright creates unjust monopolies in the basic commodity of the "information age". Also the increased ease of copying effectively obviates copyright, which is a relict of the past and should be expunged.

Enlarge Copyright

Realizing the growing economic importance of intellectual property, especially the holders of copyright (in particular the big publishing, distribution and other core copyright industries) - and therefore recipients of the royalties - adhere to the idea of enlarging copyright. In their view the basic foundation of copyright - the response to the need to provide protection to authors so as to give them an incentive to invest the time and effort required to produce creative works - is also relevant in a digital environment.

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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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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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Society for Worldwide Interbank Financial Telecommunication (SWIFT)

Founded in 1973 by 239 banks from 15 countries, SWIFT is responsible for maintaining the world's most important network dedicated to financial transaction processing.
Although facing competition from smart cards, e.g., SWIFT can rely on an increasing clientèle. In September 1999 SWIFT served 6,710 live users in 189 countries.

http://www.swift.com

http://www.swift.com/
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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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Next Generation Internet Program

A research and development program funded by the US government. Goal is the development of advanced networking technologies and applications requiring advanced networking with capabilities that are 100 to 1,000 times faster end-to-end than today's Internet.

http://www.ngi.gov

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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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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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Robot

Robot relates to any automatically operated machine that replaces human effort, though it may not resemble human beings in appearance or perform functions in a humanlike manner. The term is derived from the Czech word robota, meaning "forced labor." Modern use of the term stems from the play R.U.R., written in 1920 by the Czech author Karel Capek, which depicts society as having become dependent on mechanical workers called robots that are capable of doing any kind of mental or physical work. Modern robot devices descend through two distinct lines of development--the early automation, essentially mechanical toys, and the successive innovations and refinements introduced in the development of industrial machinery.

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