Highlights on the Way to a Global Commercial Media Oligopoly: 1990s

-1994

Viacom multimedia and industrial corporation takes control of Paramount Communications for US$ 9.6 billion, as well as Blockbuster Entertainment, a huge video store chain, for US$ 8.4. billion.

1995

Entertainment giant Disney buys Capital Cities-ABC for US$ 19 billion.

The industrial and broadcasting company Westinghouse Corp. buys out CBS for US$ 5.4 billion.

In a US$ 7.2 billion deal, Time Warner acquires Turner Communications, owner of prime cable TV channels CNN, TBS and TNT and a major classic American film library.

1996

Westinghouse/CBS buys Infinity Broadcasting's large group of radio stations.

Murdoch and News Corp. acquire ten more TV stations and TV production studios with the US$ 2.5 billion purchase of New World Communications Group.

Viacom buys half of UPN-TV network, adding that to its other holdings, which include eleven TV stations, along with MTV, VH-1, and other cable TV channels and Paramount movie studios.

1997

Radio Groups Chancellor Media and Evergreen merge and are linked by ownership with Capstar Broadcasting; they also buy ten radio stations from Viacom. By mid-1997 Chancellor/Capstar controls no fewer than 325 radio stations around the United States.

Chancellor/Capstar's controlling ownership group, Hicks Muse Tate & Furst, buys the seventh largest radio group, SFX, adding another seventy-two radio stations, making a total of nearly four hundred stations controlled by this one source.

Westinghouse-CBS buys out American Radio Systems, the fourth largest radio chain in total audience, which gives Westinghouse-CBS over 170 radio stations with a total audience nearly equal to that of the Chancellor/Capstar group.

Giant European-based print and electronic publishing and data base corporations Reed Elsevier and Wolters Kluwer merge.

1998

Bertelsmann buys the Random House-Alfred A. Knopf-Crown Publishing group of book publishers from Newhouse/Advance Publications, adding to its Bantam-Doubleday-Dell publishing group and giving Bertelsmann by far the largest English-language publishing operations.

1999

AOL, the worlds leading Internet service provider and Time Warner, the worlds leading classical media company merge in a US$ 243.3 billion deal.

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The Privatization of Censorship

According to a still widely held conviction, the global data networks constitute the long desired arena for uncensorable expression. This much is true: Because of the Net it has become increasingly difficult to sustain cultural and legal standards. Geographical proximity and territorial boundaries prove to be less relevant, when it does not affect a document's availability if it is stored on your desktop or on a host some thousand kilometers away. There is no international agreement on non-prohibited contents, so human rights organizations and nazi groups alike can bypass restrictions. No single authority or organization can impose its rules and standards on all others. This is why the Net is public space, a political arena where free expression is possible.

This freedom is conditioned by the design of the Net. But the Net's design is not a given, as Lawrence Lessig reminds us. Originally the design of the Net allowed a relatively high degree of privacy and communication was not controlled directly. But now this design is changing and this invisible agora in electronic space is endangered. Governments - even elected ones - and corporations introduce new technologies that allow us to be identified, monitored and tracked, that identify and block content, and that can allow our behaviour to be efficiently controlled.

When the World Wide Web was introduced, soon small independent media and human rights organizations began to use this platform for drawing worldwide attention to their publications and causes. It seemed to be the dawning of a new era with authoritarian regimes and multinational media corporations on the looser side. But now the Net's design is changing according to their needs.

"In every context that it can, the entertaining industry is trying to force the Internet into its own business model: the perfect control of content. From music (fighting MP3) and film (fighting the portability of DVD) to television, the industry is resisting the Net's original design. It was about the free flow of content; Hollywood wants perfect control instead" (Lawrence Lessig, Cyberspace Prosecutor, in: The Industry Standard, February 2000).

In the United States, Hollywood and AT&T, after its merger with MediaOne becoming the biggest US cable service provider, return to their prior positions in the Seventies: the control of content and infrastructure. If most people will access the Net via set up boxes connected to a TV set, it will become a kind of television, at least in the USA.

For small independent media it will become very hard to be heard, especially for those offering streaming video and music. Increasingly faster data transmissions just apply to download capacities; upload capacities are much - on the average about eight times - lower than download capacities. As an AT&T executive said in response to criticism: "We haven't built a 56 billion dollar cable network to have the blood sucked from our veins" (Lawrence Lessig, The Law in the Code: How the Net is Regulated, Lecture at the Institute for Human Sciences, Vienna, May 29th, 2000).

Consumers, not producers are preferred.

For corporations what remains to be done to control the Net is mainly to cope with the fact that because of the Net it has become increasingly difficult to sustain cultural and legal standards. On Nov 11, 1995 the German prosecuting attorney's office searched Compuserve Germany, the branch of an international Internet service provider, because the company was suspected of having offered access to child pornography. Consequently Compuserve blocked access to more than 200 newsgroups, all containing "sex" or "gay" in their names, for all its customers. But a few days later, an instruction for access to these blocked newsgroups via Compuserve came into circulation. On February 26, 1997, Felix Somm, the Chief Executive Officer of Compuserve Germany, was accused of complicity with the distribution of child and animal pornography in newsgroups. In May 1998 he received a prison sentence for two years. This sentence was suspended against a bail of about 51.000 Euro. The sentence was justified by pointing to the fact that Compuserve Germany offered access to its US parent company's servers hosting child pornography. Felix Somm was held responsible for access to forbidden content he could not know of. (For further information (in German) click here.)

Also in 1995, as an attack on US Vice-President Al Gore's intention to supply all public schools with Internet access, Republican Senator Charles Grassley warned of the lurking dangers for children on the Net. By referring to a Time magazine cover story by Philip Elmer-Dewitt from July 3 on pornography on the Net, he pointed out that 83,5% of all images online are pornographic. But Elmer-Dewitt was wrong. Obviously unaware of the difference between Bulletin Board Systems and the Net, he referred misleadingly to Marty Rimm's article Marketing Pornography on the Information Superhighway, published in the prestigious Georgetown Law Journal (vol. 83, June 1995, pp. 1849-1935). Rimm knew of this difference, of course, and stated it clearly. (For further information see Hoffman & Novak, The Cyberporn debate, http://ecommerce.vanderbilt.edu/cyberporn.debate.html and Franz Wegener, Cyberpornographie: Chronologie einer Hexenjagd; http://www.intro-online.de/c6.html)

Almost inevitably anxieties accompany the introduction of new technologies. In the 19th century it was said that traveling by train is bad for health. The debate produced by Time magazine's cover story and Senator Grassley's attack caused the impression that the Net has multiplied possible dangers for children. The global communication networks seem to be a inexhaustible source of mushrooming child pornography. Later would-be bomb recipes found on the Net added to already prevailing anxieties. As even in industrialized countries most people still have little or no first-hand experience with the Net, anxieties about child pornography or terrorist attacks can be stirred up and employed easily.

A similar and related debate is going on about the glorification of violence and erotic depictions in media. Pointing to a "toxic popular culture" shaped by media that "distort children's view of reality and even undermine their character growth", US right-wing social welfare organizations and think tanks call for strong media censorship. (See An Appeal to Hollywood, http://www.media-appeal.org/appeal.htm) Media, especially films and videos, are already censored and rated, so it is more censorship that is wanted.

The intentions for stimulating a debate on child pornography on the Net were manifold: Inter alia, it served the Republican Party to attack Democrat Al Gore's initiative to supply all public schools with Internet access; additionally, the big media corporations realized that because of the Net they might have to face new competitors and rushed to press for content regulation. Taking all these intentions together, we can say that this still ongoing debate constitutes the first and most well known attempt to impose content regulation on the Net. Consequently, at least in Western countries, governments and media corporations refer to child pornography for justifying legal requirement and the implementation of technologies for the surveillance and monitoring of individuals, the filtering, rating and blocking of content, and the prohibition of anonymous publishing on the Net.

In the name of "cleaning" the Net of child pornography, our basic rights are restricted. It is the insistence on unrestricted basic rights that needs to be justified, as it may seem.

Underlying the campaign to control the Net are several assumptions. Inter alia: The Net lacks control and needs to be made safe and secure; we may be exposed inadvertently to pornographic content; this content is harmful to children. Remarkably, racism seems to be not an issue.

The Net, especially the World Wide Web, is not like television (although it is to be feared this is what it might become like within the next years). Say, little Mary types "Barbie" in a search engine. Click here to see what happens. It is true, sometimes you might have the opportunity to see that pornography is just a few mouse clicks away, but it is not likely that you might be exposed to pornographic content unless you make deliberate mouse clicks.

In reaction to these anxieties, but in absence of data how children use the Internet, the US government released the Communications Decency Act (CDA) in 1996. In consequence the Electronic Frontier Foundation (EFF) launched the famous Blue Ribbon Campaign and, among others, America Online and Microsoft Corporation supported a lawsuit of the American Civil Liberties Union (ACLU) against this Act. On June 26, 1997, the US Supreme Court ruled the CDA as unconstitutional under the provisions of the First Amendment to the Constitution: The Communications Decency Act violated the basic right to free expression. After a summit with the US government industry leaders announced the using of existing rating and blocking systems and the development of new ones for "inappropriate" online resources.

So, after the failing of the CDA the US government has shifted its responsibility to the industry by inviting corporations to taking on governmental tasks. Bearing in the mind the CompuServe case and its possible consequences, the industry welcomed this decision and was quick to call this newly assumed responsibility "self-regulation". Strictly speaking, "self-regulation" as meant by the industry does not amount to the regulation of the behaviour of corporations by themselves. On the opposite, "self-regulation" is to be understood as the regulation of users' behaviour by the rating, filtering and blocking of Internet content considered being inappropriate. The Internet industry tries to show that technical solutions are more favourable than legislation und wants to be sure, not being held responsible and liable for illegal, offensive or harmful content. A new CompuServe case and a new Communications Decency Act shall be averted.

In the Memorandum Self-regulation of Internet Content released in late 1999 by the Bertelsmann Foundation it is recommended that the Internet industry joins forces with governmental institutions for enforcing codes of conduct and encouraging the implementation of filters and ratings systems. For further details on the Memorandum see the study by the Center for Democracy and Technology, An Analysis of the Bertelsmann Foundation Memorandum on Self-Regulation of Internet Content: Concerns from a User Empowerment Perspective.

In fact, the "self-regulation" of the Internet industry is privatized censorship performed by corporations and right-wing NGOs. Censorship has become a business. "Crucially, the lifting of restrictions on market competition hasn't advanced the cause of freedom of expression at all. On the contrary, the privatisation of cyberspace seems to be taking place alongside the introduction of heavy censorship." (Richard Barbrook and Andy Cameron, The Californian Ideology)

While trying to convince us that its technical solutions are appropriate alternatives to government regulation, the Internet industry cannot dispense of governmental backing to enforce the proposed measures. This adds to and enforces the censorship measures already undertaken by governments. We are encouraged to use today's information and communication technologies, while the flow of information is restricted.

According to a report by Reporters Sans Frontières, quoted by Leonard R. Sussman in his essay Censor Dot Gov. The Internet and Press Freedom 2000, the following countries totally or largely control Internet access: Azerbaijan, Belarus, Burma, China, Cuba, Iran, Iraq, Kazakhstan, Kirghizstan, Libya, North Korea, Saudi Arabia, Sierra Leone, Sudan, Syria, Tajikistan, Tunisia, Turkmenistan, Uzbekistan, and Vietnam.

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Beautiful bodies

However, artificial beings need not be invisible or look like Arnold Schwarzenegger in "Terminator". "My dream would be to create an artificial man that does not look like a robot but like a beautiful, graceful human being. The artificial man should be beautiful". Nadia Thalman's hopes for beautiful robots may become reality in the work of MIRALab, a research laboratory attached to the University of Geneva dedicated to realistic modelling of human functionalities. The laboratory has produced an artificial Marylyn Monroe showing just how beautiful artificial creatures can be, and there is a biography featuring details of her career and her - however virtual - love life. Yet beautiful creatures have been made before, at leas on the movie screen. Frank-N-furter, the protagonist of the Rocky Horror picture show ("I've been making a man / with blond hair and a tan / and he is good for relieving my /tension) did set remakrable esthetic standards.

While in Hindu mythology, avatars are bodies chosen by gods for their representation on earth, often animals such as swans or horses, the avatars populating cyberspace have a different function. The cyber bodies of real people, often 3 dimensional images of creatures whose aesthetics reflects both the tastes prevalent in the entertainment and advertising industries as the state of art in visual representation.

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The 17th Century: The Invention of the First "Computers"

The devices often considered the first "computers" in our understanding were rather calculators than the sophisticated combination of hard- and software we call computers today.

In 1642 Blaise Pascal, the son of a French tax collector, developed a device to perform additions. His numerical wheel calculator was a brass rectangular box and used eight movable dials to add sums up to eight figures long. Designed to help his father with his duties, the big disadvantage of the Pascaline was its limitation to addition.

Gottfried Wilhelm von Leibniz, a German mathematician and philosopher, in 1694 improved the Pascaline by creating a machine that could also multiply. As its predecessor Leibniz's mechanical multiplier likewise worked by a system of gears and dials. Leibniz also formulated a model that may be considered the theoretical ancestor of some modern computers. In De Arte Combinatoria (1666) Leibniz argued that all reasoning, all discover, verbal or not, is reducible to an ordered combination of elements, such as numbers, words, colors, or sounds.

Further improvements in the field of early computing devices were made by Charles Xavier Thomas de Colmar, a Frenchmen. His arithometer could not only add and multiply, but perform the four basic arithmetic functions and was widely used up until the First World War.

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Extract of Disney’s Content Production and Distribution Holdings

Although the traditional media companies first steps into the digital sphere were fairly clumsy, they have quickly learned from their mistakes and continued to enlarge their Internet presence. Time Warner now for instance operates about 130 Web-Sites (http://www.timewarner.com/corp/about/pubarchive/websites.html). Anyhow the stronger online-engagement of the big media conglomerates by 1998 has led to the establishment of a new pattern: "More than three-quarters of the 31 most visited news and entertainment websites were affiliated with large media firms, and most of the rest were connected to outfits like AOL and Microsoft." (Broadcasting and Cable, 6/22/98).

During the last years many of the smaller players in the field of digital media have been driven out of competition by the huge media conglomerates. This mainly is a result of the advantages that the commercial media giants have over their less powerful counterparts:

    As engagement in online activities mostly does not lead to quick profits, investors must be able to take losses, which only powerful companies are able to.



    Traditional media outlets usually have huge stocks of digital programming, which they can easily plug into the Internet at little extra cost.



    To generate audience, the big media conglomerates constantly promote their Websites and other digital media products on their traditional media holdings.



    As possessors of the hottest "brands" commercial media companies often get premier locations from browser software makers, Internet service providers, search engines and portals.



    Having the financial resources at their disposition the big media firms are aggressive investors in start-up Internet media companies.



Commercial media companies have close and long ties to advertisers, which enables them to seize most of these revenues.

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Commercial vs. Independent Content: Human and Financial Resources

Concerning their human and financial resources commercial media and independent content provider are an extremely unequal pair. While the 1998 revenues of the world's leading media conglomerates (AOL Time Warner, Disney, Bertelsmann, Viacom and the News Corporation) amounted to US$ 91,144,000,000 provider of independent content usually act on a non-profit basis and to a considerable extent depend on donations and contributions.

Also the human resources they have at their disposal quite differ. Viacom for example employs 112,000 people. Alternative media conversely are mostly run by a small group of activists, most of them volunteers. Moreover the majority of the commercial media giants has a multitude of subsidiaries (Bertelsmann for instance has operations in 53 countries), while independent content provider in some cases do not even have proper office spaces. Asked about their offices number of square meters Frank Guerrero from RTMark comments "We have no square meters at all, because we are only on the web. I guess if you add up all of our servers and computers we would take up about one or two square meters."

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1970s: Computer-Integrated Manufacturing (CIM)

Since the 1970s there had been a growing trend towards the use of computer programs in manufacturing companies. Especially functions related to design and production, but also business functions should be facilitated through the use of computers.

Accordingly the CAD/CAM technology, related to the use of computer systems for design and production, was developed. CAD (computer-aided design) was created to assist in the creation, modification, analysis, and optimization of design. CAM (computer-aided manufacturing) was designed to help with the planning, control, and management of production operations. CAD/CAM technology, since the 1970s, has been applied in many industries, including machined components, electronics products, equipment design and fabrication for chemical processing.

To enable a more comprehensive use of computers in firms the CIM (computer-integrated manufacturing) technology, which also includes applications concerning the business functions of companies, was created. CIM systems can handle order entry, cost accounting, customer billing and employee time records and payroll. The scope of CIM technology includes all activities that are concerned with production. Therefore in many ways CIM represents the highest level of automation in manufacturing.

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Server

A server is program, not a computer, as it sometimes said, dedicated to store files, manage printers and network traffic, or process database queries.

Web sites, the nodes of the World Wide Web (WWW), e.g., are stored on servers.

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Internet Software Consortium

The Internet Software Consortium (ISC) is a nonprofit corporation dedicated to the production of high-quality reference implementations of Internet standards that meet production standards. Its goal is to ensure that those reference implementations are properly supported and made freely available to the Internet community.

http://www.isc.org

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Whitfield Diffie

Whitfield Diffie is an Engineer at Sun Microsystems and co-author of Privacy on the Line (MIT Press) in 1998 with Susan Landau. In 1976 Diffie and Martin Hellman developed public key cryptography, a system to send information without leaving it open to be read by everyone.

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VISA

Visa International's over 21,000 member financial institutions have made VISA one of the world's leading full-service payment network. Visa's products and services include Visa Classic card, Visa Gold card, Visa debit cards, Visa commercial cards and the Visa Global ATM Network. VISA operates in 300 countries and territories and also provides a large consumer payments processing system.

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The World Wide Web History Project

The ongoing World Wide Web History Project was established to record and publish the history of the World Wide Web and its roots in hypermedia and networking. As primary research methods are used archival research and the analysis of interviews and talks with pioneers of the World Wide Web. As result a vast of collection of historic video, audio, documents, and software is expected. The project's digital archive is currently under development.

http://www.webhistory.org/home.html

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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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CIM

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

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Bulletin Board Systems

A BBS (bulletin board system) is a computer that can be reached by computer modem dialing (you need to know the phone number) or, in some cases, by Telnet for the purpose of sharing or exchanging messages or other files. Some BBSs are devoted to specific interests; others offer a more general service. The definitive BBS List says that there are 40,000 BBSs worldwide.

Bulletin board systems originated and generally operate independently of the Internet.

Source: Whatis.com

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Nadia Thalman

Nadia Thalman is director of MIRAlab at the University of Geneva, Switzerland. Thalmann has become known as the creator of "virtual Marylyn", an installation which allowed visitors to literally to slip into Marylyn's shoes. Thalman's work is located at interface between science and art. It is about modelling human bodies for science and creative purposes, e.g. as virtual actors in movies. Thalman insists that artificial beings must be beautiful, in addition to being useful, as we will be living with them at close quarters.

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Adi Shamir

Adi Shamir was one of three persons in a team to invent the RSA public-key cryptosystem. The other two authors were Ron Rivest and Leonard M. Adleman.

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Expert system

Expert systems are advanced computer programs that mimic the knowledge and reasoning capabilities of an expert in a particular discipline. Their creators strive to clone the expertise of one or several human specialists to develop a tool that can be used by the layman to solve difficult or ambiguous problems. Expert systems differ from conventional computer programs as they combine facts with rules that state relations between the facts to achieve a crude form of reasoning analogous to artificial intelligence. The three main elements of expert systems are: (1) an interface which allows interaction between the system and the user, (2) a database (also called the knowledge base) which consists of axioms and rules, and (3) the inference engine, a computer program that executes the inference-making process. The disadvantage of rule-based expert systems is that they cannot handle unanticipated events, as every condition that may be encountered must be described by a rule. They also remain limited to narrow problem domains such as troubleshooting malfunctioning equipment or medical image interpretation, but still have the advantage of being much lower in costs compared with paying an expert or a team of specialists.

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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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DES

The U.S. Data Encryption Standard (= DES) is the most widely used encryption algorithm, especially used for protection of financial transactions. It was developed by IBM in 1971. It is a symmetric-key cryptosystem. The DES algorithm uses a 56-bit encryption key, meaning that there are 72,057,594,037,927,936 possible keys.

for more information see:
http://www.britannica.com/bcom/eb/article/3/0,5716,117763+5,00.html
http://www.cryptography.com/des/

http://www.britannica.com/bcom/eb/article/3/0...
http://www.cryptography.com/des/
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Automation

Automation is concerned with the application of machines to tasks once performed by humans or, increasingly, to tasks that would otherwise be impossible. Although the term mechanization is often used to refer to the simple replacement of human labor by machines, automation generally implies the integration of machines into a self-governing system. Automation has revolutionized those areas in which it has been introduced, and there is scarcely an aspect of modern life that has been unaffected by it. Nearly all industrial installations of automation, and in particular robotics, involve a replacement of human labor by an automated system. Therefore, one of the direct effects of automation in factory operations is the dislocation of human labor from the workplace. The long-term effects of automation on employment and unemployment rates are debatable. Most studies in this area have been controversial and inconclusive. As of the early 1990s, there were fewer than 100,000 robots installed in American factories, compared with a total work force of more than 100 million persons, about 20 million of whom work in factories.

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Ron Rivest

Ronald L. Rivest is Webster Professor of Electrical Engineering and Computer Science in MIT's EECS Department. He was one of three persons in a team to invent the RSA public-key cryptosystem. The co-authors were Adi Shamir and Leonard M. Adleman.

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