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- Volume 4, Issue 23 Atari Online News, Etc. June 7, 2002
-
-
- Published and Copyright (c) 1999 - 2002
- All Rights Reserved
-
- Atari Online News, Etc.
- A-ONE Online Magazine
- Dana P. Jacobson, Publisher/Managing Editor
- Joseph Mirando, Managing Editor
- Rob Mahlert, Associate Editor
-
-
- Atari Online News, Etc. Staff
-
- Dana P. Jacobson -- Editor
- Joe Mirando -- "People Are Talking"
- Michael Burkley -- "Unabashed Atariophile"
- Albert Dayes -- "CC: Classic Chips"
- Rob Mahlert -- Web site
- Thomas J. Andrews -- "Keeper of the Flame"
-
-
- With Contributions by:
-
- Dan Iacovelli
-
-
-
- To subscribe to A-ONE, change e-mail addresses, or unsubscribe,
- log on to our website at: www.atarinews.org
- and click on "Subscriptions".
- OR subscribe to A-ONE by sending a message to: dpj@atarinews.org
- and your address will be added to the distribution list.
- To unsubscribe from A-ONE, send the following: Unsubscribe A-ONE
- Please make sure that you include the same address that you used to
- subscribe from.
-
- To download A-ONE, set your browser bookmarks to one of the
- following sites:
-
- http://people.delphiforums.com/dpj/a-one.htm
- http://www.icwhen.com/aone/
- http://a1mag.atari.org
- Now available:
- http://www.atarinews.org
-
-
- Visit the Atari Advantage Forum on Delphi!
- http://forums.delphiforums.com/m/main.asp?sigdir=atari
-
-
-
- =~=~=~=
-
-
-
- A-ONE #0423 06/07/02
-
- ~ AOL's IM Pie Dwindling ~ People Are Talking! ~ 50 Million Gamecubes?
- ~ Mozilla 1.0 Released! ~ FBI Wants More Powers! ~ JagFest 2K2 News!
- ~ eBay's Anti-fraud Plan ~ Hotmail Users Pay More ~ MacOffice Polished!
- ~ Xbox Ad Offends Brits! ~ Will Xbox Live Save It ~ Why Stay With AOL?
-
- -* Napster Files For Bankruptcy *-
- -* Feds Seek Better Microsoft Security *-
- -* Red Hat Accuses Sun of Microsoft Tactics! *-
-
-
-
- =~=~=~=
-
-
-
- ->From the Editor's Keyboard "Saying it like it is!"
- """"""""""""""""""""""""""
-
-
-
- I thought that I was losing my mind! Okay, so that's not necessarily
- something new. This is June, isn't it? Where's the sun? This is March and
- April weather we're having. A check of the calendar proves it's June, but
- you could have fooled me (and almost did!).
-
- I have managed to get most of my Spring rituals out of the way, dodging the
- raindrops. Still a little more to do, Mother Nature notwithstanding.
- Hopefully I can get the rest completed before my vacation in a couple of
- weeks.
-
- Not much going on lately, otherwise. Budget crunch time at work; that's
- always a real joy! No more "problem children" at work, thankfully. Just
- the same old stuff, just more of it and growing. We're all facing that
- these days, I guess.
-
- In the realm of "what in the world could they be thinking?" news, I saw a
- humorous news story on television earlier in the week. It was a story on a
- study done with a few businesses. The research was to determine if
- employees would be more productive if allowed to sleep on the job for an
- hour a day. I can just see it now - Boss comes up to employee. Er, Smith,
- please finish that report and get it to me quickly. Smith replies, Sorry
- sir, it's my nap time! Are these people for real? I won't even try to
- dispute whether or not the findings are accurate, or worthwhile for the
- employee. Are you going to pay your employees to sleep on the job?
- Whatever happened to getting a good night's sleep? Eat a good breakfast?
- Do whatever it takes on your own time! And this is from me, someone who
- really enjoys to sleep! I just thought it was a funny story. And what's
- more funny is that I'd bet that there will be people who buy into this idea
- and implement it! I'd write more about this topic but it's time for my nap!
-
- Until next time...
-
-
-
- =~=~=~=
-
-
-
- PEOPLE ARE TALKING
- compiled by Joe Mirando
- joe@atarinews.org
-
-
-
- Hidi ho friends and neighbors. First of all, I'd like to thank those of
- you who wrote to ask me about my back problem last week. I appreciate the
- kind thoughts.
-
- It was nothing serious, just a pulled muscle that resulted in muscle
- spasms for a day or so. Of course, it WOULD have to happen on the day
- that I normally write this column, right?
-
- I'm back to normal now, and the extra bed rest I've needed to get me that
- way gave me some time to think.
-
- Now anyone who knows me knows that I like to let my mind wander and sort
- of find its own path.
-
- Recognizing that my laptop computer was showing its age (it's all of three
- years old now), I bought a new one so there wouldn't be any gap if it
- decided to stop working. After looking at a lot of makes and models, I
- settled on an Apple PowerBook. I've got to tell ya, this is one slick
- machine. I don't care for OS X, but I can live with it.
-
- After a day or so of getting accustomed to the PowerBook, a though hit
- me... If Atari was still making computers, I'd like to think that THIS
- is the machine they would have come up with.
-
- Of course, several pipe dreams developed from that one thought. So I
- really had no choice but to download NoSTalgia and play around with it.
- I really haven't done much with it, but it looks promising.
-
- Well, let's get to the news and STuff from the UseNet.
-
-
-
- From the comp.sys.atari.st NewsGroup
- ====================================
-
-
-
- Since I just entered the world of Mac software, this caught my eye.
- Keith Brooks asks:
-
- "What's the latest with MagiCMac - does it run on OS X or still only pre
- OS9?"
-
-
- Robert Schaffner tells Keith:
-
- "http://www.application-systems.de/magicmacx/
- Make you own picture."
-
-
- Keith tells Robert:
-
- "Well it comes up fast from the demo program but nothing runs from my old
- applications. Of course I could be missing something because I don't read
- German. Tried IMGCOPY.PRG and got error messages with a 68000 exception of
- some sort. Tried Calamus too but got a bus error #2. Tried Papyrus 5 and got
- an error.
-
- Any hints? Any idea when an English version will be available?"
-
-
- Robert replies:
-
- "Sorry no. Try to ask ash by email. I½m sure they talk english.
- Same as here. This demo isn½t usable well. Serial mac port also is
- blocked as on any other release. Screen drawing does not work well.
- Some fragments after close magic mac x.
-
- That all tell me to wait for a final release and to wait for reports
- from other users."
-
-
- Keith tells Robert:
-
- "[I] Will be sure to keep an eye on their page and get the old German
- dictionary out to figure out what they're saying. What ever happened
- to their English site? (or is my mind playing tricks again?)"
-
-
- Robert replies:
-
- "I don't know if they had an english page or they made an translation
- of their information. Main problem of -some- developers [:)] Only one
- language available."
-
-
- Usually one to answer questions, Dr. Uwe Seimet, author of HD Driver,
- asks:
-
- "I cannot get an HP 2200D printer to work with my TT and I suspect it
- has something to do with the TT not having a bidirectional parallel
- port. When sending data to the printer everything looks OK from the
- Atari's point of view, so sending the data is possible and does not
- block. The printer, however, does not print anything and the LED's
- indicate it is not receiving any data.
-
- The same printer works fine with a Linux PC, but it did not work with a
- parallel printer cable that was manufactured about 10 years ago. I
- needed a new, bidirectional cable to get the Linux PC working with this
- printer. Can anybody explain this behaviour and whether one can do
- something in order to get such a printer properly connected to a TT?"
-
-
- Lyndon Amsdon tells Uwe:
-
- "[It's a] Pity that the HP lasers are so expensive. Cheapest I could
- find was just under 450 Euros. I've sometimes tried printing via NVDI
- from Papyrus but it didn't do anything, not even the spooler appear.
- TBH, I haven't played around enough as Papyrus has it's own drivers.
- Not many of my applications support NVDI printers.
-
-
- Uwe replies:
-
- "Papyrus has its own drivers? I would have expected software like
- Papyrus, which is quite new, to be able to use NVDI for printing.
- Anyway, as long as drivers for older LaserJet models (III or 4L etc.)
- are provided, this should not be an issue."
-
- Lyndon tells Uwe:
-
- "Well, I'm talking about Papyrus Gold (version 4) which I guess
- is getting a bit dated these days? My other apps though,
- Scooter PCB and Imagecopy don't support NVDI, both those apps
- have good Laserjet support. I will try printing from NVDI
- though, I remember it didn't like my accelerator being on when
- printing. This isn't due to the printer port feeding data too
- fast either. I managed to make it work if I used iPRN but don't
- know how that made things work.
-
- Are all HP lasers backwards compatible to the old Laserjets? My
- inkjet has almost died (only works in 720DPI) so I decided to get
- a decent laser. I need it to work with Imagecopys and Scooters
- Laserjet driver. I'm not that keen on using the NVDI drivers,
- never got them working very well."
-
-
- Uwe tells Lyndon:
-
- "As far as I can tell they are backwards compatible. This is definitely
- the case for the 2200, which is quite new. HP LaserJet III drivers for
- TempusWord work fine, for example. With the NVDI drivers I could not
- observe any problems so far. I'm currently using one of the LaserJet 5
- drivers with NVDI and the output is correct. You cannot use 1200 DPI,
- however, since the drivers only support 300 or 600 DPI. The 2200
- supports the latest versions of the PCL and PJL languages and detailed
- documentation on these languages is readily available in the Internet,
- BTW."
-
-
- Joseph Place asks:
-
- "Is MultiTOS still a commercially available product? I didn't receive it
- with my Falcon (used) and would be interested in trying it out."
-
-
- Martin Tarenskeen tells Joseph:
-
- "The kernel (MiNT) is now open-source freeware and named FreeMiNT. For the
- AES part of it (AES 4.x GEM.SYS) there are much better alternatives now:
- XaAES (freeware) and N.AES (commercial).
-
- Take a look at
-
- http://www.freemint.de
- http://sparemint.atari.org
- http://xaaes.atari.org
- http://www.woller.com
-
- The Easymint installation package is also something to consider, I just
- can't remember the URL right now. and don't forget to get the THiNG
- desktop replacement."
-
-
- Fred Horvat asks about problems he's having with CAB:
-
- "Well I've not used CAB 2.7 on my TT in a few months and now when I do
- a large number of Web Sites I used to hit now give me "File Not Found"
- in CAB. I'm using CAB2.7 with the included IConnect and I'm running
- MagiC6 on my TT. I emptied the cache and still I get the message. One
- of the sites in question is www.apple.com Most of the time I can not
- reach this site but on the rare times I can I get the main page but
- can't click on any other pages like OSX or the iBook pages. Anybody
- have any ideas?"
-
-
- Martin Byttebier tells Fred:
-
- "I don't have any probs to visit www.apple.com using Cab 2.8 with the
- MiNT-net ovl.
-
- Are you sure your settings are still the same? What about the
- proxy server? Do you use one? If so do you use the right server and the
- right syntax?"
-
-
- Kenneth Medin tells Fred:
-
- "Works fine here. Just tested http://www.apple.com/ and surfed in to the
- iBook pages etc no errors whatsoever and they do not seem to rely too
- heavily on Javascript either.
-
- This is with CAB but STinG. I suppose you have some DNS problems. Don't
- know what resources the IConnect setup has but first check if you can
- resolve the hostname www.apple.com to a dotted address."
-
-
- Grzegorz Pawlik advises Fred:
-
- "Try to delete whole disk (HD) cache ("Options -> Cache -> Delete"),
- the one that CAB stores HTML files. It might help."
-
-
- Martin Tarenskeen asks for help with an english resource file for Papillon:
-
- "Just installed an official full version of Papillon 3.04 (German).
- I tried to replace the RSC files with the translated english ones from
- D&D. But with these resources Papillon quits automatically right after the
- appearance of the opening screen. The strange thing is that these same RSC
- files worked perfectly with the Papillon 3.04 demo that I tried first.
-
- I have already seen in my RSC editor that translated resource has one
- object tree more than the original German one from my full version. (50
- against 49). They are not identical.
-
- I'm lucky to be able to read German, but I prefer English. (Not because of
- World War 2 and I'm no soccer fanatic either. In fact most Germans are OK,
- especially Atarians.
-
- What to do to make the English RSC files work with my full version
- Papillon 3.04 ?"
-
-
- Grzegorz Pawlik tells Martin:
-
- "That extra dialog box is to be used with Papillon 3.04 Service Pack 1.
- That "Service pack 1" is a Papillon extension available from ASH.
- It is in fact an update for Papillon, but instead calling it 3.06
- or whatever, they say it's "Papillon 3.04 Service Pack 1".
- This new Papillon version makes it possible to set the color pallette
- separately for each plane, using the additional dialog box from
- RSC. So maybe the English RSC from D&D website works only with
- the latest Papillon? As I say, there are two 3.04 versions, which
- are significantly different."
-
-
- Jeff Armstrong asks for help troubleshooting his TT:
-
- "Hey everyone. Lately I've been leaving my TT powered on a lot more.
- Right now I'm trying to set it up as my web server through my cable
- modem, but I've been having some troubles.
-
- After being on for a while (as in an hour or so), MiNT really starts
- to break down. Just about everything starts causing bus errors. This
- couldn't possibly be a memory problem since it has 64 meg of TT RAM.
- Memory protection is not enabled, but I don't think that should
- improve things. Also, my Minix partition really turned to crap, so
- I've recreated my entire MiNT directory structure on a FAT32 drive
- (any problem with this?) but that hasn't helped.
-
- The only thing I did notice is that the TT seems to be blowing a lot
- of hot air out of the power supply. Is this possibly an overheating
- problem?
-
- The system is in a stock TT case with a Magnum 64meg memory expansion,
- a GALAXY graphics card, and a ROM-port ethernet adapter. Any thoughts
- on what the problem is?
-
- This is really starting to get me angry. If this isn't fixed, the TT
- is going into retirement."
-
-
- Steve Sweet tells Jeff:
-
- "My first port of call would be at the PSU, new PC PSU's are very cheap
- these days."
-
-
- Jean-Luc Ceccoli adds:
-
- "Maybe the PSU is having problems - some dry capacitor causing +5v not
- to be clean, or, more possibly, too many devices for this poor PSU.
- Try with an old 250 W PC AT supply, and see if problem persists."
-
-
- Steve asks Jean-Luc:
-
- "'OLD', Why try to solve a problem with possible unreliable cures."
-
-
- Jean-Luc replies:
-
- "Just because there's almost nothing to do to plug their socket on the
- TTs to MSTe's one, except unplug one single wire!
- And because new ones are ATXs, which need either an adaptor to fit
- the TT's socket, or to modify their connector.
- And, old only means that it is not a recent ATX one, not that it
- will die as soon as it will be turned on!
- And it was only to allow (sorry, I forgot his name) to test if it
- was really the PSU without having to waste money."
-
-
- Jeff asks Jean-Luc:
-
- "This could actually cause system failures? I'm surprised, that's all.
- Ok, then does the TT just accept a standard AT power supply? I can't
- seem to remember. This sounds like it's going to be quite a project
- just to stop these system crashes.
-
- Has anyone had similar symptoms?"
-
-
- Jean-Luc replies:
-
- "The connectors of an old AT PSU will fit the TT's socket with little
- modification. For the wires, let me see...
- Well, they are the same on both connectors, except the AT's got a red
- wire between yellow and orange, where TT's got empty. You'll just
- have to unsocket this wire from the AT's connector, and plug both
- the connectors on the TT's socket, *after* checking* that the voltage
- of each colour is the same, of course!
- On the one I have there, it is good, but... who knows ?"
-
-
- Dave Wade asks about MiNTnet on his ST:
-
- "I currently have my 4Meg STE networked via a Cartridge Port NE2000
- adaptor, using STING and the old freeware version of CAB, GAPFTP and Newsie.
- The main purpose of this was to allow the exchange of files between the ST
- and my PC and as such it seems to work fairly well, but with slight niggles.
-
- The best results to date have been using one of the CLI based FTP programs
- on the ST talking to Windows/2000 FTP server. The big niggle here is that
- whilst these will allow me to do an "LCD" and change directories I can't
- make new directories on the ST or download a nested tree of files.
-
- I have tried using the graphical clients on the ST and none of these seem to
- work well with my aged system. The FTP client in Newsie does not seem to
- like the W2k ftp server and just returns a black screen when I open a
- directory. Aftp does not like my old AES and so won't work at all. MG FTP
- seems to die before it gets a connection open.
-
- The only graphical system that seems to work is to use FTP Server from
- Vassilis on the STE and run a Graphical FTP on the PC which was not the way
- round I wanted. So I was wondering if it would be possible to run MintNet
- and the SAMBA client on such a small machine. And if it was possible where
- would I look for the parts."
-
-
- Adam Klobukowski tells Dave:
-
- "It should be possible with older FreeMiNT kernels (that does not require so
- much memory), but if you do not have a hard disk it will be a very hard task.
-
- Everything you need is on http://sparemint.atari.org."
-
-
-
- Well folks, that's it for this time around. Tune in again next week,
- same time, same station, and be ready to listen to what they are saying
- when...
-
- PEOPLE ARE TALKING
-
-
-
- =~=~=~=
-
-
-
- ->In This Week's Gaming Section - Nintendo To Focus On Games, Not Hardware
- """"""""""""""""""""""""""""" 50 Million GameCubes By 2005?!
- Xbox Security Hacked! Xbox Ad Banned!
- And much more!
-
-
-
- =~=~=~=
-
-
-
- ->A-ONE's Game Console Industry News - The Latest Gaming News!
- """"""""""""""""""""""""""""""""""
-
-
-
- MIT Grad Student Hacks Into Xbox Security System
-
-
- A graduate student at the Massachusetts Institute of Technology has found a
- way to circumvent the security system for Microsoft Corp.'s Xbox video game
- console, opening the way for hackers to use it to run competing software,
- according to documents released over the weekend.
-
- The MIT computer expert, who posted his report on his university Web site,
- also questioned the security behind Microsoft's soon-to-launch online
- service, Xbox Live, saying hackers could exploit a flaw in the system to
- identify individual players from their game machines.
-
- Andrew Huang, who recently completed a PhD thesis on supercomputer
- architecture, wrote a memo May 26 describing his efforts to build hardware
- that would read the Xbox's internal security system. A link to the 15-page
- report was posted this weekend at technology news and discussion Web site
- Slashdot.org (http:/www.slashdot.org).
-
- Computer enthusiasts have been excited about the possibility of using the
- $199 Xbox, which is technologically similar to a PC, as a stand-alone
- computer running operating systems like Linux.
-
- Some see it as the ultimate slight against Microsoft -- using the software
- giant's own hardware to run software that competes against its Windows
- operating system.
-
- In the memo, Huang said the Xbox's primary security is contained in what he
- calls a "secret boot block" that is encoded into a media processor chip
- built for the Xbox by Nvidia Corp.
-
- Representatives of Microsoft and Nvidia were not immediately available for
- comment. An MIT spokesman told Reuters the university has not been received
- any request to take the paper down from its sites.
-
- Huang said he had extracted the contents of the boot block by tapping the
- data path that travels between the media chip and the central processor.
-
- By attaching a custom-designed board to that high-speed data path, Huang
- was able to capture the data transmitted between the two chips and manually
- process it to uncover the secrets contained in the "boot block."
-
- He said it took a total of three weeks to build his custom board for a
- total cost of around $50.
-
- Given the particular encryption algorithm that was used and the decryption
- key, both of which Huang has identified, "one can run original code on the
- Xbox," he said, meaning it would be possible to run things like
- unauthorized games and other operating systems on the console.
-
- Huang also said he had discovered a vulnerability in the console's
- programming, that would allow the boot-up sequence to be interrupted so
- that any code can be run on the system.
-
- In an e-mail to Reuters, Huang said he notified Microsoft in advance he
- would be publishing the paper, gave them a copy to read, and has been in
- regular contact with the company. He also said he is not working on any of
- the attempts to run Linux or other systems on the Xbox.
-
- "I know a lot of people are exploring the possibility now, but I personally
- am not spearheading any effort toward this end," he said.
-
- Huang also said in the paper he has discovered keys to the identity of the
- console owner that may, in theory, be vulnerable through an online
- connection.
-
- Huang said he separately discovered that the console's serial number is
- stored in its memory, and that the data might be readable by the central
- operating system. "What happens to this information when the Xbox is
- plugged into the Internet?" he said.
-
-
-
- Will Microsoft's Xbox Hit The Spot?
-
-
- Don't look now, but here comes Microsoft with its boldest attempt yet to
- blast into your living room -- with your teen as its biggest advocate.
-
- The software giant is pulling out all the stops to dominate a new market:
- online gaming via its Xbox video-game console.
-
- The virtual playground: Xbox Live, where gamers blast bad guys, play
- football or solve mysteries. So far, den-dwelling personal computer users
- have dominated online gaming. With Xbox Live, Microsoft this fall
- maneuvers online gaming onto the family TV.
-
- But that's only the opening shot. While Microsoft insists the Xbox is just
- a game machine -- facing a big challenge to succeed at that -- it boasts a
- beefy hard drive to store content and a broadband modem to speed content
- delivery.
-
- Eventually, the Xbox -- or something that grows from it -- could be the
- gateway for music, movies and communication services streaming into homes
- on a variety of devices, some created by Microsoft, some by others,
- company observers say.
-
- As computing power spreads from the PC throughout the home, Microsoft wants
- to make sure it remains at the center. "Xbox is the Trojan horse that gets
- them in position to become a home-entertainment hub," says Bob Sutherland,
- analyst at Technology Business Research. "This is all part of their
- long-term strategy to create a lifestyle where you end up spending more
- with them every month."
-
- Xbox is by no means a sure thing.
-
- Microsoft must elbow into a fast-growing industry dominated by entrenched
- competitors, Sony and Nintendo. It's also unclear how many consumers will
- pay to play online games. Then there is the broadband bottleneck. Only 10%
- of U.S. homes have the high-speed cable modems or digital subscriber lines
- needed to make online gaming viable.
-
- At its price, cut to $199 last month, Xbox consoles are money losers, the
- company admits. Games sell consoles, and game developers create games for
- the biggest-selling consoles. For now, Sony and Nintendo own those. So
- Microsoft must spend big to get Xbox into the market. Profit? That's
- supposed to come later from hot-selling games.
-
- "People thought they dropped the price because they were desperate, but
- that's hardly the case," says P.J. McNealy, analyst at Gartner. "It shows
- they're serious, aggressive and want to compete."
-
- Chutzpah and deep pockets may not be enough. More often than not, Microsoft
- has flopped trying to break into new markets. Its WebTV Internet browser
- and UltimateTV digital video recorder never lived up to their hype.
- Recently, it had to shelve a much-ballyhooed set of Internet consumer
- services, code-named Hailstorm, because of market resistance.
-
- But Microsoft's hand is being forced. It needs new revenue sources to shore
- up maturing software sales. The 20%-plus annual growth rate the company
- enjoyed through the 1990s has slowed closer to single digits. For two
- years, Microsoft has worked to make its software and new services
- accessible on any Web-enabled device. That includes TV set-top boxes,
- handhelds, cellphones and others.
-
- Xbox Live, too, will stake out space in the unproven market of online
- gaming for the masses. But first, the Xbox console has to crack an existing
- market. Video console and game sales hit $9.4 billion last year, surpassing
- Hollywood's U.S. box office receipts of $8.4 billion, says research firm
- NPD Group.
-
- For market leader Sony, its PlayStation consoles and games brought in 62%
- of the consumer electronic and media giant's operating profit last year.
- Nintendo's GameCube and GameBoy systems, aimed at younger gamers, are also
- big profit centers.
-
- So Microsoft has begun a five-year, $2 billion investment -- roughly half
- of what it spends each year on research and development -- to saturate
- households worldwide with Xboxes and popularize Xbox Live. Not to be
- overrun, Sony and Nintendo are battling back with price cuts and fall
- launches of online gaming services of their own.
-
- Neither is going as far as Microsoft. "We really don't know how big a
- segment it might become," says Peter MacDougall, executive vice president
- of sales and marketing for Nintendo of America.
-
- Microsoft, though, is thinking big. It has to. Xbox is more than just
- another revenue source. It is a rudimentary model of what Microsoft hopes
- its core operations look like in the future.
-
- At first, online gamers will pay a one-time fee of $49.95. For that,
- they'll get 12 months of access to Microsoft's gaming network, Xbox Live,
- where they'll compete with gamers worldwide. They'll get a unique identity.
- They'll talk to other players via headsets using speech-recognition
- software from Fonix of Salt Lake City.
-
- Microsoft will manage the network and provide services, such as matching
- gamers of comparable skills. After the first year, Microsoft will begin
- charging about $10 a month.
-
- Sound familiar? It's a microcosm of Microsoft's dot-Net strategy, upon
- which it's staking much of its future. With dot-Net, Microsoft supplies
- the platform on which Web transactions take place. It delivers some
- services and collects fees along the way. It also is working on
- technologies to help others make money using the dot-Net platform, from
- audio and video streaming to tools enabling the tracking and charging of
- digital content.
-
- "As Microsoft rolls out other initiatives, it could use Xbox, or an
- Xbox-like device, to connect them together in the home, and it all flows
- from there," says Matt Rosoff, analyst at research firm Directions on
- Microsoft. "That's the vision for five to 10 years out."
-
- Meanwhile, Xbox Senior Vice President Robbie Bach evangelizes something
- out of reach of Sony and Nintendo: an Xbox ecology enriching all who
- participate. He's selling game developers, Internet service providers and
- telecoms on a vision of steady monthly fees from a fresh source.
-
- One blue-sky example Bach cites is a data-mining service that feeds sports
- statistics in real time to gamers playing in an online fantasy sports
- league. Everyone involved benefits from new sales. How, or if, Microsoft
- would share fees is a big question.
-
- But while Bach exudes optimism, analysts and competitors say Xbox, which
- has met with disappointing sales in Europe and Japan, and Xbox Live, which
- is unproven, are fraught with more booby traps than any shoot-em-up video
- game, including:
-
- * Tough competition. PlayStation2, introduced 18 months before Xbox, is
- in 11 million U.S. homes and 30 million worldwide. Xbox is in less than
- 4 million. The Playstation2 has twice as many games, including dozens that
- are exclusive to it.
-
- Because games sell consoles, Microsoft is against the wall in winning over
- game developers. Sony is doing everything it can to widen the gap and push
- Xbox into a downward spiral of shrinking developer support and declining
- console demand.
-
- "We're driving the market," says Kazuo Hirai, president of Sony Computer
- Entertainment America. "We have a bigger installed base and the content
- to back it up."
-
- * Developer hesitancy. Microsoft needs to attract the best and brightest
- gamemakers to create compelling Xbox Live games.
-
- But its reputation for grabbing the juiciest piece of whatever business it
- gets into has some game developers worried that Microsoft might later steer
- consumers to competing Microsoft versions of hit online games.
-
- "A lot of publishers are going to be hesitant to enter a relationship
- with Microsoft because... you're playing purely on Microsoft's turf," says
- Michael Gartenberg at Jupiter Media Metrix.
-
- Game publisher Electronic Arts caused a stir at last month's Electronic
- Entertainment Expo by saying it would develop online games for
- PlayStation2, but not for Xbox Live. "We have to get to a point where what
- (Microsoft) has in mind is compatible with what we have in mind," says
- Electronics Arts CEO Larry Probst.
-
- * Steep learning curve. Akin to the movie business, one hit video game
- can carry dozens of weak titles. The recipe for hits is elusive.
- Microsoft's approach has been to provide game developers with heftier, more
- versatile hardware. But no one has come up with a dramatically different
- Xbox game.
-
- Of the 10 best-selling video games, Microsoft has only one: Halo, ranked
- 9th. Sony has six, including the top seller, Grand Theft Auto 3, says NPD
- FunWorld.
-
- Sony heads into Christmas with sequels to blockbusters, hoping to relegate
- Xbox to the same spot Microsoft once pushed PC rival Apple -- not enough
- boxes in use to justify much developer support.
-
- Security is also an issue. A graduate student at the Massachusetts
- Institute of Technology recently warned that hackers could possibly exploit
- a security flaw in Xbox Live that would identify players from their game
- machines. Microsoft says it "maintains an evolving high-end security
- system to protect its intellectual property and we see this incident as
- posing no threat to our customers or to our partners."
-
- Suppliers and competitors are watching to see if Microsoft meets its U.S.
- sales targets of 3.5 million to 4 million Xboxes sold by July, and 9
- million to 11 million by June 2003.
-
- Microsoft is hustling to make the numbers. Advertising tie-ins with Pepsi,
- Zumiez clothing stores and top rock groups will portray Xbox as part of
- the pop culture mainstream. Viral marketing via trade magazines and
- Internet chat rooms will intensify among hard-core gamers.
-
- Jupiter analyst Gartenberg contends that if Bach hits the sales targets
- and converts half of all Xbox owners into online gamers, "he will have
- knocked it out of the park for Microsoft."
-
- Bach is swinging for the fences. His five-year target: 10 million Xbox Live
- subscribers -- at $10 a month per player, a very Microsoft-like $1.2
- billion-a-year cash cow.
-
- "We really think we can drive the business for everybody," he says. "It
- will be good for ISPs, good for broadband companies, good for gamers, good
- for game publishers and good for ourselves."
-
-
-
- Nintendo President Focuses on Games
-
-
- Nintendo Co. plans to expand its share of the video game market by focusing
- on making better games rather than on building increasingly powerful game
- players, its new president said Thursday.
-
- The Kyoto-based game maker that brought the world Pokemon and Super Mario
- must take a new and distinctive approach as an entertainment company to
- compete with rivals Sony Corp. and Microsoft Corp., said Satoru Iwata, who
- took his post last week.
-
- "We can't be optimistic about the game market. No matter what great product
- you come up with, people get bored," he said, referring to game players at
- a meeting with analysts at a Tokyo hotel. "I feel like a chef cooking for a
- king who's full."
-
- Sony's PlayStation 2 machine has been leading the pack with 30 million sold
- worldwide in the three-way game war that also includes the Nintendo
- GameCube and Microsoft Xbox.
-
- Nintendo has shipped about 4 million GameCube machines, while Microsoft is
- expecting to ship 3.5 million to 4 million Xbox consoles by the end of
- June. All three makers have slashed machine prices recently to woo game
- fans around the world.
-
- Iwata, a 42-year-old game software developer who joined Nintendo two years
- ago, said selling a game console is totally different from selling, say, a
- washing machine.
-
- People won't imagine buying another washing machine unless it breaks down,
- he said. But Nintendo wants to make great games so even people who own a
- Sony PlayStation 2 will go out and get GameCube.
-
- Although Iwata declined to give details of what Nintendo has in the works,
- he gave one example of where his company hopes to differ: It won't pursue
- online games, judging them as still too limited in appeal.
-
- Nintendo is also planning more games that link the Game Boy Advance, the
- company's hit portable machine, with GameCube. It will exploit its lineup
- of exclusive games like Mario and Zelda, while working more with outside
- game developers.
-
- "The element of surprise is critical. But delivering surprise is becoming
- extremely difficult," said Hiroshi Yamauchi, Iwata's predecessor who built
- his tiny card-maker into a global video-game giant. "Game developers are
- running out of ideas."
-
- Yamauchi, 74, who is stepping down after five decades at the company's
- helm, said that developing games has grown too time-consuming and
- expensive. Nintendo hopes to come up with profitable games more quickly
- without compromising on their appeal, he said.
-
- In the latest fiscal year ended in March, Nintendo posted a profit of 106
- billion yen ($849 million), up 10 percent from the previous year, on a 20
- percent rise in sales.
-
- While scoffing at the focus on machine sales, Iwata said he remains
- determined to sell GameCube, targeting 50 million in worldwide sales by
- March 2005.
-
- "The effort to produce machines with better technology has reached its
- limit," Iwata said. "If things continue, they may lead to the decline of
- the entire game industry."
-
-
-
- Nintendo Sees 50 Million GameCube Sales by 2005
-
-
- Japanese video game giant Nintendo Co Ltd said on Thursday it aimed to sell
- 50 million of its GameCube game consoles globally by March 2005.
-
- It still has a long way to go, however, to catch Sony Corp's PlayStation 2,
- the dominant home video game platform worldwide with more than 30 million
- units shipped since its debut in March 2000.
-
- Nintendo launched the GameCube last September and has set a shipment
- target of 12 million units for the business year that started in April,
- compared with Sony's target of 20 million PlayStation 2s.
-
- President Satoru Iwata reiterated Nintendo's strategy of appealing to
- consumers with innovative games, rather than trying to build ambitious
- entertainment platforms like Sony's PlayStation 2 and Microsoft Corp's
- Xbox.
-
- "We're reaching the limits of how far we can appeal to consumers by
- boosting the machines' performance or providing more compelling graphics
- and sound," Iwata told an analysts' meeting.
-
- "For the past few years we've been looking for new ways to surprise
- people, new ways for them to have fun."
-
- Sony, Nintendo and Microsoft all announced hefty price cuts last month for
- their cutting-edge consoles, aiming to expand their customer base as they
- jostle for the fat profits to be earned from software sales.
-
- Iwata expressed concern, however, that the price-cutting fever in hardware
- may spread to software, where it could do severe damage to game makers'
- bottom lines.
-
- "We have a sense of crisis, that price cuts in software could destroy the
- game industry," he said.
-
- He also defended the company's policy of maintaining a huge hoard of cash
- rather than investing it in new businesses or elsewhere.
-
- "We have 900 billion yen ($7.25 billion) but one of our rivals, Microsoft,
- has five trillion yen," he said.
-
- "This is a high-risk business...There may come a time when we would have
- to make intensive investments."
-
- Nintendo's shares ended 0.58 percent lower at 17,100 yen on Thursday, in
- line with a 0.76 percent drop in the benchmark Nikkei average .
-
- They fell as far as 16,710 yen in the afternoon, their lowest since last
- September, and have shed more than a quarter of their value since the
- start of the year, due in part to worries about price competition.
- ($1=124.15 Yen)
-
-
-
- U.K. Unplugs "Shocking" Xbox Ads
-
-
- Regulators in the United Kingdom have given the thumbs-down to a Microsoft
- advertisement for the Xbox console that has offended some viewers.
-
- The Independent Television Commission has slammed the ad as "shocking" and
- banned the commercial from U.K. television.
-
- The ad begins with a newborn child flying through a window before aging
- decades in seconds--then crashing and screaming into a grave as an elderly
- man. It was designed to illustrate the phrase: "Life is short. Play more."
-
- The ITC, which has the power to ban ads that it considers unsuitable to be
- shown onscreen, said it received 136 complaints about the Xbox ad.
-
- The Guardian Unlimited Web site reports that the ITC has also expressed
- its displeasure to the Broadcast Advertising Clearance Center, which had
- approved the Xbox ad.
-
- In its ruling, published this week, the ITC said that "the man's screams
- throughout his life's journey suggested a traumatic experience, which,
- together with the reminder that life is short, made the final scene more
- shocking."
-
- Microsoft issued a statement in response to the ITC's ruling, apologizing
- to anyone who was offended or upset by the ad.
-
- The company is expected to continue showing the ad in cinemas, however,
- which are not regulated by the ITC.
-
- The ad can be viewed on the Playmore.com Web site, which includes a
- warning about its "potentially shocking and disturbing nature."
-
-
-
- =~=~=~=
-
-
-
- ->A-ONE Gaming Online - Online Users Growl & Purr!
- """""""""""""""""""
-
-
-
- Jagfest 2002 News
-
-
- Jagfest 2002 Goes to New Dimensions
-
- For Immediate Release:
-
- June 1st, 2002
-
- (St. Louis, MO.)-- In what could be considered an unprecedented move, the
- organizers of The Sixth Annual Atari Jaguar Festival have decided to
- broaden the scope of the event by showcasing not only the Atari Jaguar, but
- classic and next generation systems. Adding to this, Jagfest 2k2 will also
- provide an avenue for creators of "homebrew" software to show their
- creations to the world. Last years Jagfest in Milwaukee, Wisconsin set the
- stage by allowing non Atari systems to have a limited presence. This year
- that idea will be taken further by making their inclusion official.
-
- James Garvin, owner of OMC Games and a principal organizer of this year's
- Jagfest, states: "Jagfest symbolizes what can happen when a group of gamers
- actually care about their games, and it has survived this long because of
- dedication from its community. Our goal is to insure that Jagfest will
- survive for years to come, and to do this the concept of what Jagfest
- stands for can be expanded to include gaming in general. The "Jag" in
- Jagfest won't be lost, though. It will still retain a major presence in the
- show, but gamers of all types should be able to share some of the same
- heritage that has kept the Jaguar alive after all of these years. This
- change is just a natural progression of the show."
-
- Daniel Iacovelli, Founder and President of The Atari Video Club and
- co-organizer of this year's Jagfest also states:" The addition of old
- school and next generation will add a new dimension to the event. My club
- has seen the progression of this event since its start in 1997, from just
- Atari Jaguar and Lynx being shown at the first event to the addition of
- classic systems shown at the last year's event, it just seemed natural to
- continue from that plus extending it to new dimensions".
-
- The Sixth Annual Atari Jaguar Festival (dubbed Jagfest 2k2) is being held
- in downtown St. Louis, Missouri at The Mayfair Wyndham Historic Hotel.
- (806 St. Charles Street St. Louis, Missouri 63101. Phone: 314-421-2500) on
- Friday, July 12th and Saturday, July 13th 2002.
-
- For more information On Jagfest 2k2 e-mail Greg George at
- greg@ataritimes.com, James Garvin at omc@omcgames.com ,Daniel Iacovelli at
- atarivideoclub@yahoo.com or JT August at starsabre@worldnet.att.net visit
- the Jagfest 2002 site at http://omcgames.com/jagfest
-
- (be sure to visit the Jag fest message board and post your ideas for this
- event.)
-
-
-
- =~=~=~=
-
-
-
- A-ONE's Headline News
- The Latest in Computer Technology News
- Compiled by: Dana P. Jacobson
-
-
-
- Napster Files Bankruptcy Under Bertelsmann Deal
-
-
- Napster Inc. said on Monday it filed for bankruptcy protection, as German
- media giant Bertelsmann AG prepares to take over what remains of the once
- dominant Internet music-swapping service.
-
- Napster listed $7.9 million in assets and about $101 million of debts as of
- April 30, according to papers filed with its voluntary Chapter 11 petition
- at the U.S. Bankruptcy Court in Delaware.
-
- The filing is part of a comeback plan for three-year-old Napster, which
- became one of the Internet's hottest properties by allowing millions of
- people to swap music online for free.
-
- Though Napster was wildly popular, attracting nearly 60 million users at
- its peak, the music quickly died as major record labels sued the company
- for music piracy. Napster, based in Redwood City, California, has been
- offline since July.
-
- "It still holds a sense of promise of being a universal jukebox," said
- Steve Jones, who heads the communications department at the University of
- Illinois at Chicago. "The name Napster can be revived, but it would take
- more than Bertelsmann alone to do it. It requires the agreement of major
- (record) labels to get Napster up and running the way it was."
-
- A federal appeals court in San Francisco dealt closely held Napster a
- fresh setback in March, ordering it to remain shut until it complies with
- an injunction to remove all copyrighted music. Napster failed to find
- enough backing to relaunch as a royalty-paying service.
-
- "The extraordinary costs associated with developing the New Napster Pay
- Service and defending against the Prepetition Lawsuits have depleted
- (Napster's) available cash reserves," and could have forced Napster to
- close by June, Chief Financial Officer Carolyn Jensen said in a court
- filing.
-
- Calls to Napster were not immediately returned.
-
- Bertelsmann stepped in on May 17 with $8 million to buy Napster's assets.
- Napster owes Bertelsmann $91 million, court papers show.
-
- Under the Bertelsmann agreement, Napster was to voluntarily seek bankruptcy
- protection and emerge as a wholly owned unit of Europe's second-largest
- media group. The agreement requires court approval. Bertelsmann declined to
- comment.
-
- Napster said it is seeking approval for $5.125 million of
- debtor-in-possession financing from Bertelsmann, court papers show.
-
- Konrad Hilbers, who joined Napster from Bertelsmann as chief executive in
- July 2001, resigned on May 14 after the company failed to find funding to
- relaunch its service. He returned three days later when Bertelsmann offered
- the buyout.
-
- Shawn Fanning, who founded Napster as a college student in 1999, will be
- the company's chief technology officer.
-
- Napster now has about 18 employees, court papers show, down from about
- 100 earlier this year.
-
- Jones said that despite the appeals court ruling, "there may (still) be a
- limited legal means for sharing music, because we all do it without the
- Internet."
-
- Napster listed The Association of Independent Music of London, which it
- said is owed $3.79 million, as its largest unsecured creditor, followed by
- the law firm of Boies, Schiller & Flexner LLP, with $2.14 million, court
- papers show.
-
- The big recording labels that were arrayed against Napster include AOL Time
- Warner Inc.'s Warner Music, Bertelsmann's BMG, EMI Group Plc, Sony Music
- and Vivendi Universal's Universal Music.
-
- Big labels first sued Napster for copyright infringement in December 1999.
-
-
-
- Feds Seek Better Microsoft Security
-
-
- Government technology officials, tired of security holes in Microsoft's
- products, are discussing whether to use their collective purchasing power
- to force changes in the way the software giant does business.
-
- Their efforts got a boost Tuesday when consumer activist Ralph Nader joined
- the cause in a letter to the White House saying that changes in purchasing
- policy may be more effective and palatable to the administration than
- antitrust sanctions.
-
- The Bush administration gave a cool response to the four-year antitrust
- case against Microsoft, which it inherited from the Clinton administration,
- settling it last year on terms that many critics found too weak.
-
- The government is "going to have a harder time explaining this proposal
- away," Nader said. "This deals with taxpayer efficiency, promoting
- competition without resorting to regulation, and national security."
-
- It is a long-simmering problem among government officials, where almost
- every office from the smallest cubicle in Washington to aircraft carriers
- at sea use Microsoft's Windows operating system and its software - and are
- forced to install frequent security fixes.
-
- The White House Office of Management and Budget did not respond to a
- message seeking comment. In an earlier interview, however, an OMB official
- said federal officials have discussed how to deal with Microsoft's
- security problems.
-
- "We haven't gone to them as a united front yet. That's one of the options,"
- White House Information Technology chief Mark Forman said late last year.
- "This is actually much bigger than just Microsoft."
-
- Since then, the government's top computer officials have said they have
- been too busy with other computer security issues to confront Microsoft
- about the problem.
-
- Microsoft declined to discuss its conversations with the government.
-
- "We think that if Mr. Nader took a close look at the software industry he
- would find that no one delivers more technology at affordable prices to
- empower consumers worldwide," company spokeswoman Ginny Terzano said in a
- statement.
-
- While Nader's proposal also deals with ways to control Microsoft's power,
- federal officials are focused on security holes.
-
- "All of us rely on Microsoft to a greater or lesser extent, and we all
- wish Microsoft did a better job on security," said David B. Nelson, head
- of computer security at NASA.
-
- Most commercial products are made for business and consumer customers,
- Nelson said, and the growing number of software gadgets added into
- Microsoft products is a headache for federal computer buyers.
-
- "They come with all kinds of bells and whistles and every bell is a
- vulnerability," he said.
-
- Microsoft has taken some of the concerns to heart. After being embarrassed
- on an almost regular basis by security flaws in its products - including a
- debilitating problem found in its latest Windows XP operating system just
- days after its release - it began a companywide training program on
- security issues earlier this year.
-
- Open-source operating systems like Linux, which makes its software
- blueprints free to the public for inspection and changes, have made some
- headway in the government for use on large servers that store software and
- Web sites.
-
- A recent study completed for the Pentagon by Mitre Corp. recommended
- further use of open-source computing systems on the grounds that they are
- less vulnerable to computer attacks and far cheaper.
-
- Microsoft, which does not widely distribute its source codes, disputes that
- conclusion.
-
- The Nader letter, also signed by James Love of the Nader-founded Consumer
- Project on Technology, suggests the government should place limits on the
- number of Microsoft products it buys, dividing the federal pot among
- Microsoft, Apple, IBM and other companies.
-
- Decades ago, government computers ran proprietary, often outdated,
- software. While Microsoft's ubiquity increases the possibility of viruses,
- officials have said it also ensures that workers in different agencies
- will be able to share files among themselves and with others.
-
- The letter suggests the government could push Microsoft to make changes,
- using that market share limit as leverage. Many of the changes - such as
- more technical disclosure and making its products available on competing
- operating systems - mirror those suggested during the antitrust case and
- championed by the nine states still suing Microsoft.
-
-
-
- Microsoft Polishes Office for Apple
-
-
- Microsoft plans to release on Monday the first significant update to the
- Mac OS X version of Office and will also introduce a version of its instant
- messaging program designed for the latest Mac operating system.
-
- As previously reported, Service Release 1 for Office v. X is a free
- download that offers more than 1,000 tweaks, bug fixes and performance
- enhancements. Among the more noticeable changes are improvements to the
- way text appears on the screen and tweaks that let Office communicate with
- the server version of Apple Computer's FileMaker database software.
-
- The software giant is also releasing MSN Messenger 3.0, the first version
- of Microsoft's instant messaging program to fully take advantage of OS X.
- In addition to being adjusted for OS X, the new Messenger adds the ability
- to transfer files.
-
- Software that will allow a Palm handheld to synchronize directly with
- Office will be made available as a free download July 15.
-
- As Microsoft promised at an April event, the company is focusing its
- development efforts for the Mac on OS X products. The new version of
- Messenger, for example, will only run on that operating system.
-
- Although Apple CEO Steve Jobs has encouraged developers to consider OS 9
- dead, only about 1.5 million to 2 million of the 25 million Macs in use are
- running OS X, at least temporarily narrowing the market for Microsoft's Mac
- products.
-
- A five-year deal that required Microsoft to develop Internet Explorer and
- Office for the Mac is coming to a close this summer. Microsoft has
- reaffirmed its commitment to the Mac but has said it will focus largely on
- those two products and will only commit to new development of one OS
- version at a time.
-
- "We'll continue this business as long as the business case makes sense,"
- Kevin Browne, head of Microsoft's Macintosh business unit, said at the
- April event.
-
- Microsoft has not said exactly when the next major version of Office will
- debut, but the company has said it is on schedule to release new versions
- within 18 months to 24 months after a new incarnation of the Mac OS
- debuts. Microsoft started selling Office v. X last November.
-
- One key feature that is not in the Office update is the ability for Office
- to talk directly to a Microsoft Exchange server. Because the Entourage
- e-mail and calendaring program in Microsoft Office v. X does not talk
- directly to the Exchange server, Mac owners can get e-mail but can't
- manage tasks such as group calendaring.
-
- Browne has said that Microsoft is still trying to decide how it wants to
- tackle that issue.
-
- The service release also offers less noticeable changes such as faster
- scrolling, improved printing, and better performance when making charts in
- PowerPoint. Both the Office X service release and the new version of
- Messenger are scheduled to be made available Monday on the Mac section of
- Microsoft's Web site.
-
-
-
- Mozilla 1.0 - It's Alive!
-
-
- More than four years after the launch of the Mozilla.org open-source
- project, Mozilla 1.0 is ready to browse.
-
- The group released the software on the Web for download Wednesday.
-
- Mozilla 1.0 isn't the first browser to market based on Mozilla code.
- Netscape Communications, a unit of AOL Time Warner, released Netscape 6.0
- in November 2000. That release was largely judged to have been premature.
-
- Perhaps because of the negative reaction to that first release of the
- Mozilla code, and because Mozilla 1.0 is targeted at software developers,
- the organization added months and years to the development process.
-
- "Mozilla 1.0 will be compared against the latest generations of commercial
- browsers, so Mozilla spent the time necessary to make sure this release
- would indeed be ready for prime time," said a representative for Netscape,
- which created the project when it opened up its source code in 1998. Since
- then, Mozilla has operated autonomously.
-
- Mozilla has long claimed support for open standards as a core part of its
- mission. With Wednesday's release, Gecko supports World Wide Web
- Consortium recommendations including HTML 4.0, XML 1.0, the Resource
- Description Framework (RDF), Cascading Style Sheets level 1 (CSS1), and
- the Document Object Model level 1 (DOM1). Mozilla 1.0 also offers partial
- support for Cascading Style Sheets level 2 (CSS2), the Document Object
- Model level 2 (DOM2), and XHTML.
-
- Other standards supported by Gecko include SOAP 1.1, XSLT, XPath 1.0,
- FIXptr and MathML.
-
- "Mozilla.org is excited about releasing the Mozilla 1.0 code and
- development tools to the open-source community, and providing developers
- with the resources they need to freely create and view the presentation of
- their content and data on the Web," Mitchell Baker, whose title at
- Mozilla.org is Chief Lizard Wrangler, said in a statement. "As more and
- more programmers and companies are embracing Mozilla as a strategic
- technology, Mozilla 1.0 signals the advent of even further dissemination
- and adoption of open-source and standards-based software across the Web."
-
- The Mozilla movement was established in 1998 by then-independent Netscape,
- which charged the open-source project with creating a compelling
- Web-browsing technology. At the time, Netscape was battling Microsoft
- bitterly over market share. It took the risky step of publicly releasing
- the software code for its Communicator browser, aiming to win over
- developers to help fight its adversary.
-
- In an attempt to stem the increasing dominance of Microsoft's Internet
- Explorer browser, Mozilla designed Gecko--the core browsing engine of
- Mozilla browsers--to be used in third-party applications.
-
- Predictions of a Mozilla revolution proved unrealistic, as the project was
- marred by squabbling, false starts and, most importantly, Microsoft's
- breakaway victory in the contest for browser dominance.
-
- In all, it took more than two-and-a-half years for Netscape to release its
- first browser product using Mozilla technology, Netscape 6. Developers
- unanimously criticized Netscape 6 as an unfinished, bug-prone beta
- release. Future versions of Netscape 6 have corrected most of the
- browser's initial problems.
-
- The Mozilla browser's delays were exacerbated after AOL acquired Netscape
- in 1999. Although AOL continued to support Mozilla as the foundation for
- future versions of Communicator, many developers questioned the Internet
- company's commitment to the browser effort.
-
- Now some of those doubts are lifting, as AOL Time Warner is testing
- Mozilla technology in versions of its America Online and other software, a
- move that could see Microsoft's Internet Explorer ousted as the default
- browser for some 35 million Web surfers. The test, or beta, version of
- Netscape 7.0, Netscape's consumer-oriented browser released last month, is
- based on the same code as Mozilla 1.0.
-
- AOL Time Warner unit CompuServe also is using Gecko-based Netscape in its
- CompuServe 7.0 application. Other companies implementing Gecko include
- Intel, Red Hat, OEone, Nokia,Tuxia and WorldGate Communications, which uses
- the technology in its forthcoming set-top boxes.
-
- AOL's browser shift, coupled with the release of Mozilla 1.0, has prompted
- speculation about the prospects of a renewed browser battle with
- Microsoft, whose Internet Explorer now dominates the Web. AOL Time Warner
- has also filed a civil suit on behalf of Netscape, which AOL acquired in
- 1999, that alleges Microsoft engaged in illegal practices.
-
- In fact, the biggest effect of the Mozilla 1.0 release may be beyond the
- browser.
-
- Broadly, Mozilla is a programming tool for building applications that run
- on almost any operating system. While developers initially concentrated on
- building a browser, the underlying technology can be used to create many
- types of applications. Some developers have already branched into making
- Mozilla instant messaging software, media players and other applications.
-
- "Mozilla 1.0 is no watershed event in browser evolution, but (it) could
- become a significant entrant should the embedded browser market become
- more viable," said independent New York technology analyst Ross Rubin.
- "The 1.0 designation may signify some extra stability with traditional
- software users, but savvy users understand that it's kind of an arbitrary
- designation as the software develops. And most Mozilla users know what
- they're getting."
-
-
-
- Rivals Eating Into AOL's IM Pie
-
-
- AOL Time Warner runs two of the world's largest instant messaging services,
- but it may be in danger of squandering its lead in the race to sell this
- hot Internet technology to corporations.
-
- Although consumers have flocked to instant messaging by the millions,
- business customers have remained wary; some have even banned it over
- security concerns. Still, companies represent one of the most lucrative
- markets for the technology. Most consumer services are offered for free,
- but corporations appear willing to pay for IM services that offer the
- ability to encrypt messages and authenticate the identity of its users,
- among other things.
-
- AOL plans to release a corporate version of its AOL Instant Messenger
- (AIM) product, dubbed "Enterprise AIM," by summer. Like Microsoft and
- Yahoo--AOL's chief rivals in the consumer IM market--it will face
- competitors that have already established deep beachheads on the corporate
- field.
-
- "AOL unintentionally has spawned the business IM solution market by more
- or less taking their sweet time to provide security features in AIM," said
- James Kobielus, an analyst with research firm Burton Group.
-
- Although AOL, Microsoft and Yahoo have signed millions of subscribers to
- their instant messengers, the battle has focused primarily on consumer
- services until now, leaving all of them to play catch-up in the business
- arena.
-
- Few upstarts have made significant inroads to challenge these three major
- IM services for consumers. But an army of newcomers is stealing the march
- in offering instant messaging to corporations, where unauthorized IM use
- is running rampant--frequently without adequate security safeguards.
-
- This week another start-up stepped into the corporate IM void, promising
- the ability to communicate with various proprietary IM systems. Based in
- New York City and funded to the tune of $20 million by Beverly Hills,
- Calif.-based Lexington Ventures and others, Omnipod will officially launch
- its corporate-grade messaging and file-sharing product with 12 beta, or
- trial, customers, the largest of which has tens of thousands of seats,
- according to Omnipod.
-
- In addition to creating a niche for newcomers, the business market is
- already leading to paid IM services, an area that AOL, Microsoft and Yahoo
- have left aside for now.
-
- While AOL has no plans to begin charging for its consumer instant messenger
- anytime soon, it is taking steps to counter corporate challengers with the
- encrypted Enterprise AIM system, which it announced last month in a
- partnership with VeriSign.
-
- AOL isn't alone in falling behind the corporate IM curve: Yahoo currently
- offers no corporate IM solution, but a company representative said, "We
- think that corporate messaging is very interesting, and we're evaluating
- it closely."
-
- The corporate market could signal a reversal of fortune for AOL in instant
- messaging, an area it has dominated since it acquired instant messenger
- ICQ in 1998. AOL claims 150 million screen names for AIM, plus more than
- 130 million screen names for ICQ.
-
- Designed for the consumer, AOL communications applications often have been
- met with hostility in the workplace. Even at AOL Time Warner, AOL-designed
- e-mail proved so unwieldy in a corporate setting that the company
- rescinded a rule mandating its use.
-
- Meanwhile, the amount of time people spend chatting on instant messengers
- at work is ballooning. People in 82 percent of all organizations are using
- some sort of IM application, with 70 percent of those using AIM, according
- to a report issued by Osterman Research this year. Microsoft's MSN
- Messenger is a distant second with 51 percent, and Yahoo Messenger third
- with 44 percent.
-
- But those numbers account for both official and unofficial IM use. As
- companies begin to create standards for corporate-grade software, AIM's
- lead could deteriorate to the benefit of the corporate IM crowd. According
- to Osterman, IM use is official in only 34 percent of large organizations,
- 23 percent of medium-sized organizations, and 19 percent of small
- organizations; a full 23 percent of organizations surveyed blocked IM
- traffic at the firewall. Among organizations that use instant messaging in
- an official capacity, Lotus Sametime captures 69 percent of the market,
- the research firm found.
-
- Burton's Kobielus called AOL's VeriSign deal "too little, too late. Even
- if it provides tight encryption, it's not an enterprise-hostable solution.
- The business-grade market has opened up."
-
- Despite the early perception that AOL ruled the IM market, companies have
- carved out various IM niches inside and out of the business world.
-
- One company, Communicator, markets HubIM specifically for use by financial
- services firms. Customers include Credit Suisse First Boston, Goldman
- Sachs, J.P. Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley and
- Salomon Smith Barney.
-
- "It's quite a boost in IM's perceived business value when Wall Street gets
- behind it," said Kobielus, who added that several financial firms have
- banned traditional, unencrypted IM applications in the workplace.
-
- When Enterprise AIM hits the market, it will face scores of competitors,
- mostly small companies, offering secure instant messaging among an array
- of other tools. These include e-mail, file transfers, conferences, message
- broadcasts, and message archiving and security. These last two features
- are of increasing importance to financial services companies, which are in
- many cases required by the Securities and Exchange Commission (news - web
- sites) to log all instant messages.
-
- Other corporate IM competitors include Jabber, Mercury Prime, QuickSilver,
- 2Way, Ikimbo, Ezenia, NetLert, ACD Systems, Bantu, and Comverse's Odigo
- unit, acquired last week.
-
- In the coming months, AOL will likely face tougher competition for the
- corporate IM market from bigger guns as well.
-
- Lotus Development, a unit of IBM, was early to the corporate IM game with
- its introduction of the Sametime application in December 1998. Microsoft's
- Exchange software features IM software, and Novell markets a corporate IM
- application based on AIM called InstantMe. Ericsson, in conjunction with
- Oz, marketed until recently a secure wireless IM product called iPulse.
- Ericsson has since scrapped that project in favor of the Wireless Village,
- or Mobile Instant Messaging and Presence Initiative, with Motorola and
- Nokia for promoting interoperability between mobile IM systems.
-
- "Somebody is going to be the powerhouse of corporate IM," Kobielus
- predicted. "It's going to consolidate down to two or three providers,
- probably Lotus or Microsoft because they already have the groupware market
- locked up."
-
- AOL is working to insert itself into this market, making its system
- interoperable at the server level with corporate IM applications marketed
- by Sun Microsystems and Lotus.
-
- Despite the proliferation of IM services, few will likely survive, Kobielus
- predicted.
-
- "There are going to be a lot of casualties," he said.
-
-
-
- Why Do AOL Customers Stay?
-
-
- Last month MSN fired the latest salvo in its war against AOL, unveiling yet
- another campaign to steal AOL's customers. Among other lures, MSN is
- offering a less expensive monthly rate and an interim mailbox so customers
- can smoothly make the transition.
-
- The announcement set off the usual speculation as to whether MSN would
- finally put a dent in AOL's customer base and whether the latest tactics
- would mark the beginning of the end to AOL's reign.
-
- For many, the question is not if MSN will take over, but when AOL's
- customers will start to leave. It's no secret that AOL has the dubious
- distinction of routinely ranking last or next-to-last in any number of
- third-party customer-satisfaction surveys of ISPs.
-
- The most recent results came from an investment and research firm, which
- reported that 40 percent of its AOL-using clients were dissatisfied with
- its service.
-
- Another survey, the quarterly American Customer Satisfaction Index (ACSI),
- found that AOL posted -- again -- the lowest mark among e-commerce
- companies. "AOL's score is representative of a common struggle among
- portal companies -- not quite knowing what to give customers who still do
- not know exactly what they want from portals (news - web sites)," a
- spokesperson from one of the companies that administrated the survey,
- said.
-
- That might be one explanation, but it is by no means the only one.
-
- The main complaints about AOL tend to be about the quality of Web service
- it provides: connections that too often crash and slow upload and download
- rates.
-
- Many resent AOL's US$23.90 monthly fee. Then there is AOL's refusal to
- open its proprietary IM program to users of other messaging systems.
-
- And the company's customer service hasn't exactly been lauded by its users
- either. Indeed, several Web sites have sprung up for the sole purpose of
- grousing about AOL.
-
- Paradoxically, AOL continues to keep its customer base.
-
- Some AOL customers remain happy with the service. These users tend to be
- mainstream, not as quick to adopt new technology.
-
- They don't go online as often and perhaps use the service just for e-mail
- or other relatively simple transactions. In fact, AOL has marketed itself
- specifically to attract this segment of the online population.
-
- Some people -- 8 percent, according to the investment firm's survey --
- stay with AOL because they like the content. Others, mainly teenagers with
- a propensity to pepper their talk with four-letter words, are married to
- the chat groups.
-
- And there are those who have signed up on with AOL's broadband service,
- bypassing a lot of the problems with the dial-up service.
-
- But then there are the rest of AOL's users -- a distinctly unhappy group.
- Why do they continue to hang on?
-
- I know why I do. Yes, I am somewhat embarrassed to admit I have been an
- AOL user since the mid-1990s.
-
- I started using it because I used to do a lot of international travel and
- AOL was the most reliable -- and ubiquitous -- ISP outside the United
- States at that time. I stayed with it because it was just too much trouble
- to switch to another ISP and lose my e-mail address.
-
- And I suspect that is ultimately the reason why most people stay with AOL.
- Despite AOL's many annoyances, switching to a different ISP would be even
- more problematic.
-
- But I have to wonder how long AOL can coast on customer inertia. I always
- figured I would stay with AOL until the bitter end. While friends and
- family are easy enough to convert to another ISP, unfortunately, I have
- handed out my AOL e-mail address to just about every work-related contact
- I've made over the past decade. I can't let it go.
-
- But that's not the case with most of its users. AOL has shown little sign
- of providing better service or customer care -- at least from my
- perspective. Wholesale defections are a distinct possibility, especially
- now that MSN is giving AOL a serious run for its customers.
-
- The other morning I went into my home office to discover my cable modem
- had gone out, something that occasionally happens. I braced myself for what
- would no doubt be a trying ordeal -- using AOL's dial-up service to meet my
- daily deadlines.
-
- Indeed, AOL sunk below my lowest expectations. In fact, it took me several
- hours to access MSN's Web page to see how, exactly, that interim mailbox
- worked.
-
- And if I -- a relatively committed AOL user -- am seriously thinking about
- switching, that is a sure sign AOL is in deep trouble.
-
-
-
- Microsoft To Charge For E-mail Forwarding
-
-
- Microsoft's MSN said Wednesday that Hotmail users who want to retrieve
- e-mail from outside accounts through the service will have to pay up
- starting July 16.
-
- In an e-mail notice to Hotmail users, MSN announced that for $19.95 a
- year, MSN Extra Storage would allow them to continue to use POP Mail
- Retrieval. The POP service allows customers to access various e-mail
- accounts through one Hotmail account.
-
- In addition, the paid service provides 10MB of Hotmail storage, allowing
- people to send and receive larger attachments, and ensures that unused
- accounts will not expire. Hotmail requires its free users to log on every
- 30 days to keep an account active.
-
- "Those people who are already paying for MSN Extra Storage will not have
- any increase in fees," said Parul Shah, product manager for MSN. "With 110
- million Hotmail users, MSN needs to drive revenue to support the resources
- that it takes to provide free services."
-
- This move is yet another sign that the free Internet ride is over. The
- Hotmail announcement is just the latest in a series of companies beginning
- to charge for Internet services that were once free. Last month, Yahoo
- implemented fees for checking e-mail outside of its services and storing
- some data through Yahoo Photos and Briefcase.
-
- Hotmail users recently have seen some folders cleaned out and some e-mail
- messages returned to the sender as MSN attempts to convince heavy e-mail
- users to upgrade to the increased storage offered in the premium version
- of Hotmail.
-
- Separately Wednesday, MSN launched MSN Shopping Alerts, which lets
- consumers know about sales on certain e-commerce sites. This service is
- free, but Microsoft says it will eventually charge a fee for it.
-
-
-
- eBay Touts Anti-fraud Software's Might
-
-
- eBay Chief Executive Meg Whitman told shareholders at the company's annual
- meeting here Wednesday that new software was helping the popular auction
- site make "major strides" in reducing fraud.
-
- The company began testing an internally developed application called the
- Fraud Automated Detection Engine (FADE) about six months ago, and it has
- been live for roughly two months. The software collects data from
- defrauded customers, tracks it in a central database, and then predicts
- which new sellers are likely to be illegitimate.
-
- eBay executives would not say how many potentially fraudulent sales it has
- halted. But Whitman said the technology has already helped eBay reduce its
- fraudulent sales rate, which she said is at less than one-tenth of 1
- percent. Whitman said the software's ability to spot criminals will get
- better as the database of fraudulent sales grows.
-
- Whitman joked that a "low-cost computer reseller with a home domicile of
- Romania" would likely raise red flags. eBay's fraud detectors at the
- company's headquarters here could then monitor the seller, tip off police
- or the post office, and ultimately save consumers money and annoyance.
-
- eBay spokesman Kevin Pursglove emphasized that FADE would not automatically
- bar sellers based exclusively on their geography, merchandise category or
- other demographic information.
-
- "We know we've got to be careful," Pursglove said after the 45-minute
- shareholder meeting at the Silicon Valley Conference Center. "We wouldn't
- get into redlining or Zip code tracking or anything like that. The reality
- is that everyone starts at zero, with a clean record."
-
- eBay tightly guards data about fraud and doesn't disclose lists of hot
- spots for fraudulent sales, Pursglove said. He also noted that, by some
- measurements, fraudulent sales on eBay are less than one one-hundredth of
- 1 percent--lower than the figure given by Whitman in her speech.
-
- But given the fact that eBay has 9 million items for sale on any given day
- and will likely process $13 billion in gross merchandise sales in 2002,
- small percentages could add up to thousands of dollars wasted on hundreds
- of fraudulent transactions each day. The company has been working hard to
- clean up fraud, forging closer ties with police officials, the U.S. Postal
- Service, international delivery services and authorities abroad.
-
- Anecdotal evidence suggests that a disproportionate percentage of fraud
- happens from sales that originate from sellers in Eastern Europe.
- Pursglove also said that higher-priced items, such as computers and other
- electronics goods, have a higher rate of fraud than collectibles such as
- Pez dispensers and Beanie Babies. Technology products, ranging from Sun
- Microsystems servers to Dell Computer laptops and a variety of smaller
- electronic gadgets, constitute the largest category of goods sold on eBay.
-
- Sports memorabilia is also a relative hotbed of fraud, usually in the form
- of inauthentic items being sold as genuine. eBay users in San Diego filed
- a class-action suit against the company in April 2000, alleging eBay was
- negligent in allowing forged sports memorabilia into auctions and allowing
- sellers who did not have a "certificate of authenticity," which is required
- in California. In January 2001, a judge ruled that eBay was immune to the
- requirement, but the members have appealed the decision.
-
- "Sports memorabilia has had a lot of fraudulent activity for years,"
- Pursglove said. "You can see that it just migrated from the offline world
- to the online world with eBay."
-
- The fraud issue was also on shareholders' minds Wednesday. One of the few
- shareholders to ask a question during the open microphone session was an
- investor and buyer, who claimed he had a "bad experience" trying to buy an
- item from a seller several states away.
-
- In other news from the meeting, eBay shareholders approved the appointment
- of directors Scott Cook and Robert Kagle. Cook has served on eBay's board
- since 1998 and is the founder of software maker Intuit. Kagle has served
- on eBay's board since 1997. Both were approved to serve until 2005.
-
- Shareholders also approved changes to 1999 and 2001 equity incentive plans
- and ratified PricewaterhouseCoopers as the company's auditor for fiscal
- 2002.
-
- eBay kicked off the morning meeting with 13 minutes of official motions,
- followed by a half-hour presentation and brief question-and-answer session
- with Whitman. But the sparsely attended event, which featured a plate of
- small bagels and two trays of fresh fruit,may get more heft next year.
-
- When one shareholder inquired as to why only 40 shareholders attended the
- event--about half that of last year's annual meeting--Whitman said the
- company may boost the conference's profile next June. Whitmansaid she was
- impressed with the recent shareholder meeting of Seattle-based Starbucks
- Coffee, which attracted hundreds of investors and invited them to sample
- new java blends, socialize and learn more aboutthe company's business plan
- and products.
-
- eBay is hosting a larger event for eBay users--shareholders as well as
- buyers and sellers and others interested in joining the 40-million-member
- eBay community, in Anaheim, Calif., June 21-23. Depending on the success
- of eBay Live, Whitman said, she may decide to make the next shareholder
- meeting "more of an event."
-
-
-
- Red Hat Accuses Sun of Microsoft Tactics
-
-
- Last year, Red Hat CEO Matthew Szulik thought Sun Microsystems' open
- source-based alternative to Microsoft's widely used Office software would
- encourage broader use of the Linux operating system on desktops and perhaps
- loosen the iron grip of Windows.
-
- But Szulik abandoned those hopes when Sun started charging for its
- StarOffice product and changed its way of dealing with the original
- equipment manufacturers (OEMs), such as Red Hat, which can bundle it with
- their own offerings. Szulik accused Sun of adopting the domineering
- methods of mutual enemy Microsoft.
-
- Sun, Szulik said in an interview this week, "put the price tag on it and
- took the Microsoft approach with the OEMs."
-
- Mike Rogers, Sun's general manager for desktop and office-productivity
- software, bridles at the comparison. "Last time I checked, Microsoft
- didn't have Office available for $76 and didn't build in the source code,"
- he said in an interview, adding that Sun charges companies such as Red Hat
- very little for StarOffice, indicating the price could be less than $10
- per copy.
-
- In the past, Sun's StarOffice was free to consumers, but the company began
- charging for the product with the release of version 6. With that version,
- Sun also started charging companies like Red Hat to bundle the product in
- their versions of Linux.
-
- That's the change that had to do with Szulik's decision to drop StarOffice
- from Red Hat's distribution of Linux. "We think there are a variety of
- alternatives," he said. And that change also inspired the Microsoft
- comparison.
-
- Microsoft has been known to take advantage of its dominant position with
- Office software. For example, large corporations formerly could buy PCs
- with Office bundled at a deep discount to the regular Office price.
- Microsoft now requires they buy Office separately, which raises the cost.
-
- But Red Hat's strategy with its top-selling Linux product is similar to
- Sun's with StarOffice, said Giga Information Group analyst Stacey Quandt:
- Each company packages open-source components into a useful product, then
- sells it along with a support program.
-
- Sun's Rogers said he'd still like to see Red Hat include StarOffice or the
- open-source project on which it's based, OpenOffice. Distributing
- OpenOffice furthers the use of StarOffice file formats and interfaces.
- Microsoft has successfully used file formats and interfaces to keep its
- Office suite dominant.
-
- Sun and Red Hat have been allied in their dislike for Microsoft, but
- circumstances have changed now that Sun is eyeing Red Hat territory.
-
- "Relations between the two companies may be strained by the fact that Sun
- plans to create and support its own Linux version," Quandt said.
-
- Other Linux sellers, including SuSE and MandrakeSoft, have versions of
- their products that include StarOffice 6.
-
-
-
- Kazaa Users Often Expose Personal Files
-
-
- Users of the popular file-swapping program Kazaa frequently expose
- personal data to other network users by mislabeling the files that can be
- shared, according to research released by HP Labs.
-
- The research, which was published Wednesday on Hewlett-Packard's Web site,
- found that a significant percentage of Kazaa users have accidentally or
- unknowingly designated private files to be shared with everyone who has
- access to the popular Kazaa network.
-
- "The majority of the users in our study were unable to tell what files
- they were sharing, and sometimes incorrectly assumed they were not sharing
- any files when in fact they were sharing all files on their hard drive,"
- the researchers wrote.
-
- The study, conducted by computer scientists Nathaniel S. Good of HP Labs
- and Aaron Krekelberg of the University of Minnesota, points out that
- peer-to-peer programs often pose a threat to computer privacy.
-
- Those programs have been controversial in other ways as well. Sharman
- Networks, which owns the Kazaa software, recently came under a firestorm
- of criticism for linking Kazaa users, often unwittingly, into peer-to-peer
- activities unrelated to their own file sharing. And content owners
- lambaste file swapping in general for fueling massive copyright
- infringement.
-
- Good and Krekelberg scripted programs to search the Kazaa network for
- files that store Microsoft Outlook Express e-mail, with the assumption
- that these would be files that no one would intentionally share on the
- public network.
-
- The automatic queries occurred every 90 seconds for 12 hours and revealed
- 443 instances of unintentional file sharing. In that 12-hour period, 156
- Kazaa users were found to have e-mail files open for public review.
- Sixty-one percent of the searches revealed at least one e-mail file.
-
- In another test, researchers studied 20 distinct cases in which the
- Outlook mail program had been made public. Of those, 19 allowed access to
- other categories in the program, such as deleted items and mail sent. Nine
- users exposed their Web browser's cache and cookies, five exposed word
- processing programs, and two exposed what appeared to be financial data.
-
- Another experiment sought to determine whether other Kazaa users were
- trying to exploit this vulnerability by downloading files from other
- people's computers. The researchers placed dummy personal files with
- titles such as Credit Card.xls and Inbox.dbs on a server. In a 24-hour
- period, the credit card file was downloaded four times by four unique
- visitors, and the inbox file was downloaded four times by two unique
- visitors.
-
- The study said the researchers did not download any files from other Kazaa
- users.
-
- The researchers blamed shortcomings in the Kazaa installation software for
- making it easy for people to configure their software improperly and
- unknowingly share private information.
-
- Kazaa representatives were not immediately available for comment.
-
-
-
- FBI Digs Deeper Into The Web
-
-
- From the Bill Gates e-mails unveiled during the Microsoft trial to the
- Enron debacle, the digital trails people leave have provided stunning
- insight into their beliefs and habits.
-
- Now the FBI is hoping to capture and corral more such digital detritus,
- from a much wider swath of the populace, in the name of fighting terrorism.
-
- The Senate Judiciary Committee on Thursday will examine proposed Justice
- Department guidelines that would give federal investigators new license to
- mine publicly available databases and monitor Web use. The changes, which
- come after a major FBI shakeup last week, have sparked intense debate over
- the merits of expanding government surveillance powers as the country faces
- ongoing threats of terrorist attacks.
-
- Backers paint the reforms as a long overdue end to restrictions that have
- hobbled investigators and denied them access to research tools that are
- available to anyone with an Internet connection. Intelligence failures in
- the FBI and CIA have come under the spotlight amid new questions about who
- knew what in advance of the Sept. 11 suicide hijackings, which left more
- than 3,000 people dead.
-
- But civil liberties advocates warn that last week's proposal is the latest
- step along a worrying path back to the 1950s and '60s--days when
- investigators compiled dossiers on countless American citizens based on
- little more than their religious and political practices.
-
- "I hate to be in a position of telling people 'don't go online and speak'
- or 'watch what you say,' but you have to take from this that on an
- arbitrary basis, the FBI is going to be tagging people as terrorists based
- on what they say online," said Jim Dempsey, deputy director of the Center
- for Democracy and Technology.
-
- Since Sept. 11, Congress has enacted legislation that greatly expands law
- enforcement's ability to monitor communications through the so-called
- Patriot Act. America's allies have also sought to bolster laws aimed at
- aiding investigators, with the European Parliament last week approving
- guidelines that would force Internet companies to preserve data about
- their sites for possible future investigations.
-
- Last week's FBI guidelines from Attorney General John Ashcroft and FBI
- Director Robert Mueller would allow field agents to gather information
- outside of criminal investigations, relaxing regulations set in the 1970s.
- Those rules, named after then-Attorney General Edward Levi, barred the FBI
- from attending political meetings unless it had a reasonable suspicion that
- a crime was being planned.
-
- The new rules, by contrast, would authorize field agents to attend public
- meetings freely and request warrants with less interference from the main
- office. In addition, the rules would allow the FBI to monitor public
- Internet sites, libraries and religious institutions.
-
- Agency supporters say the lifting of monitoring restrictions opens the
- gate to investigation tools that have been unaccountably denied to the FBI
- until now.
-
- In an opinion piece published this week in The Wall Street Journal, L.
- Gordon Crovitz, Dow Jones' senior vice president of electronic publishing,
- said his eyes were recently opened to undue restraints on the FBI during
- the investigation into the death of Daniel Pearl, a Wall Street Journal
- reporter who was kidnapped and murdered in Pakistan this year. In
- following the case, employees of the paper found that the FBI was
- restrained from keeping information as rudimentary as news clips, he
- wrote.
-
- Employees, Crovitz said, were "surprised to learn that the FBI's
- extraordinarily professional, highly trained agents were not given access
- to the kinds of online research services now common on the desks of cub
- reporters or junior salespeople."
-
- Privacy advocates, however, say the Net monitoring rule creates greater
- possibilities than ever before for abuses because technology makes it
- easier to whittle down people's habits and divide them into patterns that
- may or may not point to terrorism. The result, they say, could be a
- crackdown on political dissidents and people who visit anti-American chat
- rooms.
-
- For years, some people have worried that marketers would profile them in
- some worrisome way by tracking their Web use. The FBI's involvement could
- raise the stakes.
-
- Technology ranging from data mining to surveillance cameras can be tied
- together to form an easily searchable database of people's religious,
- political and personal preferences. This enables the FBI, based on a
- hunch, to investigate--and possibly jail--people.
-
- Law enforcement for the most part has always been able to get information
- through a third party, such as a database company or an Internet service
- provider, via methods including subpoenas. However, the new, relaxed
- guidelines would let the FBI conduct investigations in publicly available
- nooks of the Web even if they aren't looking at a specific suspect or
- crime.
-
- "Such an approach to police authority in the United States is directly
- contrary to the First and Fourth Amendment and the system of checks and
- balances established by our form of government," a group of organizations
- including the American Library Association, the American Civil Liberties
- Union, and the Arab American Institute wrote in a letter this week to
- Senate Judiciary Chairman Patrick Leahy, D-Vt.
-
- "We are also concerned that the changes authorize unchecked surveillance
- of lawful religious and political activity, and that such surveillance
- will be targeted against Arab-Americans, Muslims and immigrants among
- others," the letter said.
-
- Others say the new surveillance culture is the price Americans have to pay
- to be safe in a post-Sept. 11 world.
-
- "The first business of government is to protect its citizens from the kind
- of threats we saw on Sept. 11," said Roger Pilon, vice president for legal
- affairs at the Cato Institute. "Nothing in these new guidelines in any way
- is in violation of constitutional protections. There's nothing illegal
- about compiling a dossier."
-
- Pilon compares the FBI's plan for more patrolling of public Web spaces to
- a beat cop walking the neighborhood.
-
- "It has been objected that this will allow agents to monitor perfectly
- legal behavior--that's true," he said. "The cop working the beat observes
- legal behavior. The reason for walking the beat is to engage in a more
- proactive effort to prevent crime."
-
- Meanwhile, those who compile databases are grappling with the plan,
- wondering if they're going to be forced into the role of skippers on new
- FBI fishing expeditions.
-
- Jerry Cerasale, senior vice president of government affairs for the Direct
- Marketing Association, said his group is still crafting a response to the
- FBI proposal.
-
- "Our guidelines say marketing data can be used for marketing purposes
- only," he said. "This is a new twist."
-
- Cerasale said his members have long had to balance law enforcement needs
- with privacy rights, but until now, the process has involved a subpoena.
-
- "You don't just give out an address to law enforcement officials, although
- the FBI would like that to happen," he said.
-
- Furthermore, previous attempts to tie databases to crime have often failed,
- underscoring the risks of relying on technology as a cop.
-
- For example, Cerasale said that despite protests from his group, the IRS
- eventually got its hands on the list of subscribers to Car and Driver
- Magazine, hoping to catch tax cheats by scouring groups of people
- interested in expensive cars. However, the search led to little more than
- a few teenage car fans who hadn't filed taxes, Cerasale said.
-
- The incident is cited as one more example of the limitations of technology.
- And the list of failed searches for a silver cyberbullet grows longer by
- the day. Some airports, for example, have removed face-recognition
- technology after it failed to identify people more than half the time.
-
- What's more, law enforcement's reliance on technology has actually tripped
- up some investigations. According to internal FBI documents obtained by
- the Electronic Privacy Information Council, a privacy watchdog, glitches
- in the Carnivore snooping system--namely, the over-collection of
- information on innocent individuals--led to the destruction of e-mails
- from a subject with ties to Osama bin Laden.
-
- But all the hand-wringing over information gathering may be for naught if
- cops can't connect the dots on the data they do collect. A series of
- revelations in recent weeks has shown that the FBI and CIA had gathered
- data hinting or warning of the Sept. 11 attacks but failed to coordinate
- and respond to the information.
-
- In one case, investigators overlooked a memo from a Phoenix field office
- warning that potential terrorists were enrolling in flight schools. In
- another case, a Minneapolis agent told FBI Director Mueller that
- bureaucratic bungles twahrted her investigation into the alleged 20th
- hijacker, Zacarias Moussaou.
-
- "I think the lesson of the last month or so--the revelations of the
- government's handling of the bits of information it had--is that there was
- not a failure at the information-gathering level," said Lee Tien, an
- attorney with the Electronic Frontier Foundation (EFF). "There was a
- failure of information going to the right place."
-
- The problem is so severe that the Senate and House intelligence committees
- are beginning an in-depth series of meeting into the matter this week.
-
- That's not to say that technology can't play an important part in nabbing
- suspected terrorists. Police have caught rapists and murderers by
- retracing digital fotoprints as mundane as a subway card reader. FBI
- agents have used the Webto snare child pornographers and drug dealers.
-
- And on Tuesday, FBI Director Mueller gave another nod to the tech world,
- announcing te happointment ofl ongtime IBM executive Wilson Lowery a hsis
- special assistant to oversee the agency's restructuring.
-
- "He combiesn the precision and insight of a chief financial officer with
- the visin oand leadership of an executive comfortable with change,
- technology and logbal issues, " Mueller said in a statement about Lowery.
-
- But the fcuos on technology still doesn't solve the basic problems, says
- the EFF's Tien.
-
- "The continual question of 'can't we do more with technology?' I think
- really misses the point," Tien said. "The weakest link in our intelligence
- is a lack of understanding of what's going on, on the groun. dThere is no
- quick fix."
-
-
-
-
- =~=~=~=
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