Transparent customers. Direct marketing online



This process works even better on the Internet because of the latter's interactive nature. "The Internet is a dream to direct marketers", said Wil Lansing, CEO of the American retailer Fingerhut Companies. Many services require you to register online, requiring users to provide as much information about them as possible. And in addition, the Internet is fast, cheap and used by people who tend to be young and on the search for something interesting.

Many web sites also are equipped with user tracking technology that registers a users behaviour and preferences during a visit. For example, user tracking technology is capable of identifying the equipment and software employed by a user, as well as movements on the website, visit of links etc. Normally such information is anonymous, but can be personalised when it is coupled with online registration, or when personal identifcation has been obtained from other sources. Registration is often a prerequisite not just for obtaining a free web mail account, but also for other services, such as personalised start pages. Based on the information provided by user, the start page will then include advertisements and commercial offers that correspond to the users profile, or to the user's activity on the website.

One frequent way of obtaining such personal information of a user is by offering free web mail accounts offered by a great many companies, internet providers and web portals (e.g. Microsoft, Yahoo, Netscape and many others). In most cases, users get "free" accounts in return for submitting personal information and agreeing to receive marketing mails. Free web mail accounts are a simple and effective direct marketing and data capturing strategy which is, however, rarely understood as such. However, the alliances formed between direct advertising and marketing agencies on the one hand, and web mail providers on the other hand, such as the one between DoubleClick and Yahoo, show the common logic of data capturing and direct marketing. The alliance between DoubleClick and Yahoo eventually attracted the US largest direct marketing agency, Abacus Direct, who ended up buying DoubleClick.

However, the intention of collecting users personal data and create consumer profiles based on online behaviour can also take on more creative and playful forms. One such example is sixdegrees.com. This is a networking site based on the assumption that everybody on the planet is connected to everybody else by a chain of six people at most. The site offers users to get to know a lot of new people, the friends of their friends of their friends, for example, and if they try hard enough, eventually Warren Beatty or Claudia Schiffer. But of course, in order to make the whole game more useful for marketing purposes, users are encouraged to join groups which share common interests, which are identical with marketing categories ranging from arts and entertainment to travel and holiday. Evidently, the game becomes more interesting the more new people a user brings into the network. What seems to be fun for the 18 to 24 year old college student customer segment targeted by sixdegrees is, of course, real business. While users entertain themselves they are being carefully profiled. After all, data of young people who can be expected to be relatively affluent one day are worth more than money.

The particular way in which sites such as sixdegrees.com and others are structured mean that not only to users provide initial information about them, but also that this information is constantly updated and therefore becomes even more valuable. Consequently, many free online services or web mail providers cancel a user's account if it has not been uses for some time.

There are also other online services which offer free services in return for personal information which is then used for marketing purposes, e.g. Yahoo's Geocities, where users may maintain their own free websites, Bigfoot, where people are offered a free e-mail address for life, that acts as a relais whenever a customer's residence or e-mail address changes. In this way, of course, the marketers can identify friendship and other social networks, and turn this knowledge into a marketing advantage. People finders such as WhoWhere? operate along similar lines.

A further way of collecting consumer data that has recently become popular is by offering free PCs. Users are provided with a PC for free or for very little money, and in return commit themselves to using certain services rather than others (e.g. a particular internet provider), providing information about themselves, and agree to have their online behaviour monitored by the company providing the PC, so that accurate user profiles can be compiled. For example, the Free PC Network offers advertisers user profiles containing "over 60 individual demographics". There are literally thousands of variations of how a user's data are extracted and commercialised when online. Usually this happens quietly in the background.

A good inside view of the world of direct marketing can be gained at the website of the American Direct Marketing Association and the Federation of European Direct Marketing.

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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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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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Basics: Protected Persons

Generally copyright vests in the author of the work. Certain national laws provide for exceptions and, for example, regard the employer as the original owner of a copyright if the author was, when the work was created, an employee and employed for the purpose of creating that work. In the case of some types of creations, particularly audiovisual works, several national laws provide for different solutions to the question that should be the first holder of copyright in such works.

Many countries allow copyright to be assigned, which means that the owner of the copyright transfers it to another person or entity, which then becomes its holder. When the national law does not permit assignment it usually provides the possibility to license the work to someone else. Then the owner of the copyright remains the holder, but authorizes another person or entity to exercise all or some of his rights subject to possible limitations. Yet in any case the "moral rights" always belong to the author of the work, whoever may be the owner of the copyright (and therefore of the "economic rights").


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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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Virtual cartels, introduction

Among the most striking development of the 1990s has been the emergence of a global commercial media market utilizing new technologies and the global trend toward deregulation.
This global commercial media market is a result of aggressive maneuvering by the dominant firms, new technologies that make global systems cost-efficient, and neoliberal economic policies encouraged by the World Bank, IMF, WTO, and the US government to break down regulatory barriers to a global commercial media and telecommunication market.

A global oligopolistic market that covers the spectrum of media is now crystallizing the very high barriers to entry."

(Robert McChesney, author of "Rich Media, Poor Democracy")

The network structure of information and communication technologies means that even deregulated markets are not "free". The functional logic of global networks only tolerates a small number of large players. Mergers, strategic alliances, partnerships and cooperations are therefore the daily routine of the ICT business. They bypass competition and create "virtual cartels".

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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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Internet Protocol Number (IP Number)

Every computer using TCP/IP has a 32 bit-Internet address, an IP number. This number consists of a network identifier and of a host identifier. The network identifier is registered at and allocated by a Network Information Center (NIC), the host identifier is allocated by the local network administration.

IP numbers are divided into three classes. Class A is restricted for big-sized organizations, Class B to medium-sized ones as universities, and Class C is dedicated to small networks.

Because of the increasing number of networks worldwide, networks belonging together, as LANs forming a corporate network, are allocated a single IP number.

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Cooperative Association of Internet Data Analysis (CAIDA)

Based at the University of California's San Diego Supercomputer Center, CAIDA supports cooperative efforts among the commercial, government and research communities aimed at promoting a scalable, robust Internet infrastructure. It is sponsored by the Defense Advanced Research Project Agency (DARPA) through its Next Generation Internet program, by the National Science Foundation, Cisco, Inc., and Above.net.

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Economic rights

The economic rights (besides moral rights and in some cases also neighboring rights) granted to the owners of copyright usually include 1) copying or reproducing a work, 2) performing a work in public, 3) making a sound recording of a work, 4) making a motion picture of a work, 5) broadcasting a work, 6) translating a work and 7) adapting a work. Under certain national laws some of these rights are not exclusive rights of authorization but in specific cases, merely rights to remuneration.

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Moral rights

Authors of copyrighted works (besides economic rights) enjoy moral rights on the basis of which they have the right to claim their authorship and require that their names be indicated on the copies of the work and in connection with other uses thereof. Moral rights are generally inalienable and remain with the creator even after he has transferred his economic rights, although the author may waive their exercise.

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Copyright management information

Copyright management information refers to information which identifies a work, the author of a work, the owner of any right in a work, or information about the terms and conditions of the use of a work, and any numbers or codes that represent such information, when any of these items of information are attached to a copy of a work or appear in connection with the communication of a work to the public.

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