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Atari Online News, Etc. Volume 03 Issue 50
Volume 3, Issue 50 Atari Online News, Etc. December 14, 2001
Published and Copyright (c) 1999 - 2001
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:
Tim Conrardy
Pascal Ricard
Gregory D. George
To subscribe to A-ONE, change e-mail addresses, or unsubscribe,
log on to our website at: www.atarinews.org
and click on "Subscriptions".
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To download A-ONE, set your browser bookmarks to one of the
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Visit the Atari Advantage Forum on Delphi!
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=~=~=~=
A-ONE #0350 12/14/01
~ Judge Shares Concerns! ~ People Are Talking! ~ ExciteAtHome Lives!
~ HP, Compaq Deal Debate ~ Europe Shareware News! ~ "Charming Chaos"!
~ Napster Appeal Case On ~ Where Are The Scooters ~ AOL On Mac OS X!
~ Israeli Teens Arrested ~ Hackers "Improve" Xbox ~ MusicNet Service!
-* FBI Confirms Magic Lantern! *-
-* Google Brings DejaNews Archive Back *-
-* Antivirus Software Firms Say No To The FBI *-
=~=~=~=
->From the Editor's Keyboard "Saying it like it is!"
""""""""""""""""""""""""""
There's an old saying in New England that states simply: "If you don't like
the weather, wait a minute!" Last week I was singing the praises of Mother
Nature because the weather had been gorgeous last week, temperatures in the
60s and 70s. Well, true to the adage above, Saturday night it snowed! We
got 7 inches of the wet stuff in my area! Am I ever glad I purchased that
snowblower in early fall! Cleaned off the driveway, paths to the cellar
bulkhead, dogs' pen, and shed; and even cleaned a few other paths throughout
various areas in the yard! It was wonderful! The most that I had to lift
was the gas can from the shed to the driveway! One of the greater
investments (or as my wife puts it, toys!) I've made. So I guess winter is
beginning to set in, although the temperatures have remained above normal
since. I can't complain.
I don't have a lot to talk about this week since I'm putting the bulk of
this week's issue together earlier than usual. My boss has invited all of
her managers over for dinner on the night that I put the most work into each
week's issue, so I'll "lose" a night of working on the magazine. And the
week is still young. However, we do have some interesting news this week.
The HP/Compaq deal continues to heat up; and the Microsoft case takes yet
another interesting twist! And there's lots more.
Until next time...
=~=~=~=
Charming Chaos Month
Hi All
This Month at the Atari-MIDI mailing list we are covering Electronic
Cows great algorithmic application called "Charming Chaos". So far we
are covering some ground with some uploads and information as we are
learning this application as a group. I would welcome anyone here to
join us as well.See signature for link to the list. We could use more
input.
If you have not tried this wonderful program, now is the time. You do
not need to be a musician to get something out of it, but by tweaking
parameters can come up with some cool stuff.Here is some info as well
as the download link on ECows site.
Charming Chaos
Charming Chaos is an algorithmic MIDI sequencer, with a built-in DNA
Seed Construction tool that enables you to create your own algorithms.
Music composed in Charming Chaos can be recorded in real-time to disk
as a type 0 MIDI file, ready to use in your favourite MIDI sequencing
package for further editing. If that's not enough, Charming Chaos also
runs as both a desktop accessory and a standalone GEM program, so you
can run it at the same time as another sequencer.
Main Features:
4x4 note polyphonic parts
10 programmable DNA seeds
Scale /velocity/ MIDI controller groove mapping templates.
Internal/external MIDI sync.
Real-time MIDI file recording
Programmable MIDI mixer
Portemento/program change and MIDI channel settings
Real-time MIDI input modulation.
Requirements:
Tos1.02-4.04 STFM, STE, TT, Falcon
1 Mb of memory (more may be required when run as an ACC.
640x480 display
(ST HI, TT MED, TT HI, Falcon High color modes.
Will not work in ST MED or Low.)
MIDI Module required. MIDI input source recommended.
Upload section for the Atari-MIDI mailing list: Charming Chaos MIDI
files and DNA seeds. The TXT file of the manual is also there:
http://groups.yahoo.com/group/atari-midi/files/AOTM/DEC2001_CHARM/
Web page at Electronic Cow:
http://dspace.dial.pipex.com/electronic_cow/chaos.htm
Download:
http://dspace.dial.pipex.com/electronic_cow/software/chaos.zip
The manual:
http://dspace.dial.pipex.com/electronic_cow/manuals/chaos.htm
Hope to see you at Atari-MIDI!
Tim Conrardy
If you use Atari for Midi come join us at Atari-Midi!
Tim's Atari Midi World : http://tamw.atari-users.net
Mirror: http://sites.netscape.net/timconrardy/index.htm
Atari-Midi Mailing List: http://www.yahoogroups.com/group/atari-midi
Make a PDF press release with Calamus SL Lite and PDF Print
You can read on Europe Shareware site an article (in French) about how
to make a press release with Calamus SL Lite and PDF Print.
http://www.europe-shareware.org/pages/calamus/1.html
The document is under Open Content license, so that you can put it on
your site, modify it and spread it at will, as soon as the author's name
and original address of the article are given. Calamus SL Lite and PDF
Print are distributed by Europe Shareware and you can download the
shareware version of Calamus from our site:
http://www.europe-shareware.org
Best regards,
P. Ricard (ES)
--
Europe Shareware http://www.europe-shareware.org
=~=~=~=
PEOPLE ARE TALKING
compiled by Joe Mirando
joe@atarinews.org
Hidi ho friends and neighbors. Well, I don't know why it surprises me,
but The Holidays are rushing headlong toward us. I don't know about
you, but I'm just not ready. There's been so much going on everywhere
in the world that a holiday seems somewhat out of place this year.
But that's probably when holidays do us the most good. We really need
to take time to stop every once in a while and take stock of what's
important to us. Now I'm not trying to go "Preacher Joe" on you. Heck,
I'm just as turned-around as everyone else is. But I DO try to take
some time out every once in a while to see what's going on.
I'd also like to take a moment to congratulate every member of the Team
Atari SETI@home search group. The 49 of us have contributed more than
65 YEARS of CPU time toward the search for extraterrestrial life. Of
course some have contributed more than others, and some have actually
fallen by they side of the road, but the fact remains that we're doing
it together. It'd be great if we could join in the search with our
Atari computers, but that's just not going to happen. As with most
things, we'll just have to set our sites high and be content with the
knowledge that we've done our best.
Now let's get to the news, hints, tips, and info from the UseNet.
From the comp.sys.atari.st NewsGroup
====================================
Curt Wendel asks about installing BSD on a TT:
"Anyone have good experience installing NetBSD Linux onto the TT or
Falcon? I picked up a CD which is supposed to be able to install on
M68K systems for $3.99 and I would like to install BSD onto my TT030,
I've found notes in some readme's on the disk about support for TT's
and 19" monitors and other features, but the installs on disk are
really focused on i386, MacPPC, VAX, Alpha, MIPs systems and no
specific M68K install, any help welcomed."
Iggy Drougge asks Curt:
"First of all, are you talking NetBSD or Linux? Those are two different
OSes."
John Nicholas Oakes tells Curt:
"Check which version you have. I tried NetBSD 1.5 but it was limited
for graphics on an normal TT030. if are using HD Driver for hard drive
booting do not bother, use Debian/Linux instead. If you would like the
installation details I will download from my Wasabi version1.5."
Fred Horvat adds:
"I installed Linux on my plain 4/4 TT and it works fine but's an older
version. I just had a 8 meg TOS partition, a Linux partition and a
Linux swap partition and clicked on the installer program and an about
1 1/2 hours later booted into Debian Linux. I had a 1X CD-ROM drive
otherwise would have been quicker."
Stephane Montarsolo asks for help with MagiC on a Falcon:
"I am using a Falcon fitted with a CT2A accelerator board. I recently
installed Magic 6.1, considering it was high time to get into
multitasking operating systems. Everything fine so far (with the help
of the french Atari newsgroup - sorry to be French) except one thing :
I became used to having available extended screen modes on my Falcon
(640*480*tc or 800*600*256) under single Tos using Centscreen (uses
well the extra capacities of the CT2 board), but now, under Magic, I
have not yet found a way to use those. The only thing I got so far is
Centscreen running with a Standard video mode (I know because I got the
screensaver feature kicking on) but I have been unable to change screen
modes or even boot into an extended mode. I am up to now using magxdesk
as desktop.
I tried launching Centek's Videomod.app but this has no effects (does
not work either under single Tos).
Anybody succeeded and got the "magic" recipe for it ?"
Lyndon Amsdon tells Stephane:
"Yes, you will need that (Videomod.app) for use under Magic. Maybe you
are not operating it correctly. You make the screen you want with
CentVidel and save it with a name to your video.dat. Then open up
videomod.app in magic and select the one you want a click on the save
button. This will set the default screen size. You then reboot, and
hey presto, new screen rez!"
Derryck Croker adds his experiences:
"Although I'm able to adjust screen sizes and all that, it's totally
useless for me. Part of the screen gets duplicated at one edge of the
monitor, and there is pixel garbage at the bottom of the screen.
I therefore use Videlity. It's supposed to be free these days, but I'm
afraid that I don't know where you can download it from."
Well folks, that's it for this week. I know it's short, but I figure
that with The Holidays now fully upon us, you've got better things to
do right now.
There'll probably be a lot of opportunities for partying and
merry-making but, please, be responsible. Remember: This is a special
time for EVERYONE!
Until next time, keep your ears open so that you'll hear what they're
saying when...
PEOPLE ARE TALKING
=~=~=~=
->In This Week's Gaming Section - Kids' Research Looks at Video Games
""""""""""""""""""""""""""""" 'Sheep Raider'! Atari Times Update!
Hackers, Programmers "Improve" Xbox
And more!
=~=~=~=
->A-ONE's Game Console Industry News - The Latest Gaming News!
""""""""""""""""""""""""""""""""""
Kids' Research Looks at Video Games
Video games lack racial and gender diversity, but even many of those for
young players include violence, a children's research group said Monday.
Children Now said it studied the 10 best-selling games for a variety of
game systems, including Sony PlayStation and PlayStation 2 and Nintendo's
Game Boy Color and Game Boy Advance, along with games made for computers.
Based on the games, the report said nearly all the game heroes are white
males, and that women represent just 16 percent of human characters.
The group said women generally were portrayed as bystanders or secondary
characters. Eighty-six percent of black women were portrayed as victims of
violence, and there were no Hispanic female characters, the study said.
The study also said that 89 percent of games contained some violent
content, half of which harmed game characters.
Children Now said 79 percent of games for ages six and up contained
violence.
The study said few of the games studied had features that appealed to
girls, such as controllable female characters, the ability to create
something and cooperative play.
``Research shows that girls prefer different video game features than
boys," said Katharine E. Heintz-Knowles, a former professor of
communications studies at the University of Washington at Seattle who
conducted the study for Children Now.
``Being comfortable with and enjoying video games and computers may help
girls develop an interest in careers in technology, a field in which women
are significantly under-represented."
Yashuhiro Minagawa, a spokesman for Nintendo in Tokyo, said the games the
company offers are not all violent and that different games appeal to
different interests.
``They are generally accepted as family-oriented," he said. ``It's
difficult to say all video games are violent, because there are many games,
such as puzzle games and sports games, that aren't."
Children Now suggested parents read game descriptions, rent games before
buying them and talk to other parents about games.
Children Now is an independent, nonpartisan research and action
organization.
Ewe'll Have A Great Time With "Sheep Raider"
The baaaaad news about ``Looney Tunes Sheep Raider," featuring Daffy Duck,
Porky Pig and several other Warner Bros. favorites, is the animation. At
times, the characters in this PlayStation game are depicted with odd angles
that would make any self-respecting animator cringe.
The game also features a studio audience filled with cheering Looney Tunes
characters, but as you swing the camera around, you discover that the
characters are as flat as cardboard cutouts.
The good news? You'll get over it. And once you do, you're in for a lot of
fun.
``Sheep Raider" is based on the classic cartoons where Sam, a sheepdog,
is responsible for guarding a flock of sheep and Ralph, a wolf and the
cousin of Wile E. Coyote, is determined to steal them. The running gag is
that Sam and Ralph work regular hours, suspending the roles of predator
and prey when it's time to punch the timeclock or take a lunch break.
In this game, Ralph is required to fulfill more than 15 missions,
collecting one sheep each time. In an early quest, for example, players
must make Ralph disguise himself as a bush so he can sneak past Sam. In
another, Ralph has to get a sheep across a long rope-and-wood bridge that
can only hold one animal at a time. To help meet the objectives, you can
order tools such as rocket packs, catapults, sheep attractant and dynamite
from the famous Acme Corporation.
``Sheep Raider" preserves the classic Looney Tunes humor. When the bridge
collapses beneath him, Ralph momentarily remains in mid-air, then his body
stretches out like hot cheese dripping over the edge of a pizza slice as
he hurtles toward the chasm. Of course, in the next scene, he's back in
one piece, determined to pick up at the point where things went awry.
It's challenging, it's comical, and ewe'll have a great time for $20.
Hackers, Programmers "Improve" Xbox
From its cutting-edge graphics processor to the video game industry's
first built-in hard drive, Microsoft's Xbox has been praised as one of the
most technologically sophisticated game devices ever. But that's just not
good enough for hardware and software experimenters who have been
tinkering with the Xbox since the day it went on sale.
From the relatively benign efforts of software coders looking to
capitalize on the Xbox's latent online capacity to hardware geeks willing
to risk warranties and good sense in pursuit of better performance, the
PC-derived design of the Xbox has encouraged an unprecedented level of
tinkering for a game machine in the few weeks it has been on the market.
"It's a very powerful piece of hardware--that's what motivates us," said
Dan Johnson, a high school senior from Sugarland, Texas, and creator of
XboxHacker, a Web site dedicated to disseminating the latest information
on Xbox tweaks. "It has the potential to do so much else. We can write
lots of programs eventually to really exploit this thing."
That's why Johnson--a computer programming buff who has previously hacked
the ePod Web appliance to run Windows CE programs--has spent more time
tinkering with his Xbox than playing games on it.
"I went to Wal-Mart the night before it came out and waited until they
opened to get one," he said. "I played a couple of games, and then I
started looking for the screws in the case to get it open."
Johnson has made limited modifications to his Xbox so far, preferring to
leave the riskier work to more hard-core hackers. "I'm very curious, but I
kind of draw the line at soldering," he said.
Even for hackers without such limitations, Xbox achievements have been
limited so far, thanks to numerous protection measures Microsoft built
into the console.
Hackers have managed to use a faster ATA-100 cable to connect the
console's hard disk and DVD drive. Beyond that, hardware hackers are still
in research mode, working to crack password schemes and dissect the basic
BIOS programming instructions built into the machine.
"I thought it would be easier than it is," Johnson said. "I think
Microsoft put a lot more time into hacking and protection stuff than we
anticipated.
"I think we're slowly making more and more progress. Just in the last
couple of days, we've figured out some of the hard drive passwords--now we
can access stuff on the Xbox hard drive with a PC."
PCs play a large part in most Xbox hacking activities. Other game consoles
are custom-built machines that defy easy modification. Nintendo's new
GameCube, for example, doesn't use standard DVD media or even standard
screws to hold the case together.
The Xbox, however, mostly uses off-the-shelf PC hardware, including a
Pentium III processor and standard hard drive, attracting the interest of
" overclocking" enthusiasts who normally spend their time souping up PCs.
"It's basically a computer, and computer hardware is what I do," said
Keith Whitsitt, owner and editor of overclocking site Icrontic, one of the
first sites to explore the guts of the Xbox.
"I was kind of surprised at how not locked-down it was," Whitsitt said. "I
thought it was going to be more of a challenge. Honestly, I didn't have to
try that hard to crack the Xbox."
Hacker goals include discovering methods to swap out Xbox components, so
original parts can be replaced with a bigger hard drive or faster
processor. Whitsitt sees significant interest in modifying the Xbox so it
will run standard Linux and Windows software.
Johnson envisions hackers turning the Xbox into an all-purpose
home-entertainment center, capable of playing audio and video in the
MPEG-4 and DivX formats and handling games for other systems through the
use of emulator software.
"I have a whole big stack of old cartridge games," Johnson said. "It would
be great to have an arcade system where you could play all kinds of games
using emulators."
One of the grandest goals, however, may be to crack the various encryption
and protection schemes built into Xbox hardware and software to allow Xbox
games to run on PCs, a move that could undercut the market for genuine
Xbox hardware.
Some hackers "will definitely want to be able to load the Xbox operating
system onto a PC and run games on a computer," said Whitsitt. "I'm sure
that was Microsoft's No. 1 priority when they made the thing, to make sure
that doesn't happen. But anything can be reverse-engineered, and the Xbox
isn't going to be an exception."
Gartner analyst P.J. McNealy said that even if hackers succeed in rigging
Xbox games to play on a PC, Microsoft has little to fear from such a
fringe element.
"It would be a worse problem if people could convert Xbox games into a
file format they could share online and burn onto a DVD," he said. "But
just given the tiny number of DVD burners on the market today, even that
wouldn't be much of a threat.
"It's possible this could be a threat to the distribution channels for
Microsoft in 2003 or 2004. I think it's hard to assess at this point, but
I don't see any significant threat now."
Microsoft representatives were not available to comment on Xbox
modifications, but the Xbox owners' manual strongly warns against such
activities, and opening the console's case voids the warranty.
Microsoft has given grudging approval to a more modest type of Xbox tweak,
however. A pair of Linux programmers and online PC gaming site GameSpy
each have developed software to allow Xbox users to run multiplayer games
over broadband Internet connections, a capability Microsoft plans to offer
by mid-2002.
Both systems take advantage of the system's capability for connecting
several Xbox units into a local network for multiplayer gaming. By hooking
up the Xbox to a broadband-connected PC and running special software on
the PC, the independent XboxGW software and the Xbox " tunnel" for the
GameSpy Arcade online service allow Xbox owners to expand that local
networking capability to online connections.
"Rooty," one of the programmers behind XboxGW, says the software is just a
way to deliver a capability Microsoft is still working on.
"When we got our Xboxes, we were promised broadband technology and
multiplayer games," he said. "We were pretty disappointed when it wasn't
there, so we decided to see what we could do. It was pretty easy. We had
it working within like three days of getting the Xbox."
GameSpy founder and CEO Mark Surfas voiced similar motivations. "We've
looked forward to console multiplayer gaming ever since we started the
company back in 1995," he said. "Having the Xbox come out with the
Ethernet port was something we were looking forward to, and we didn't want
to wait to be able to do something with that Ethernet port."
Response to both programs has been enthusiastic, with hundreds of players
hosting online matches each night for games such as "Halo." Even Microsoft
has been mildly approving, recognizing XboxGW and the GameSpy service as
creative but technically daunting approaches to online gaming, while
Microsoft puts finishing touches on its Xbox network.
"It's amazing and exciting to see the lengths that gamers will go to in
order to take their Xbox games online," said Xbox product manager James
Bernard. "We think (these) efforts are an interesting science experiment
by and for hard-core gamers. (But) in order to engage several players,
voice, content download and online support with no PC required, gamers
will have to wait for the Xbox online service. And it will be worth it."
Rooty agrees, by and large. "This project was never designed to have more
than a six-month life," he said. "We're not looking to replace anything
Microsoft is doing."
Surfas acknowledged GameSpy's Xbox service as something of a research lab
for Microsoft as the company finishes its online Xbox service.
"They're clearly very interested in what's going on with hard-core gamers
and what they want from online gaming," he said.
=~=~=~=
->A-ONE Gaming Online - Online Users Growl & Purr!
"""""""""""""""""""
THE ATARI TIMES RETURNS TO PRINT WITH 2001 YEAR-END SPECIAL ISSUE
December 13, 2001
For immediate release:
WINTER HAVEN, FL - The Atari Times Online Newsletter has announced a
special print issue to be released in the month of December, 2001.
50 copies of the 2001 Year-End Special Issue will be printed. This 100
page issue contains features, reviews, and previews for all Atari home
systems that have appeared on the website over the past year. These
include articles for the Jaguar, Lynx, 7800, 5200, 2600, and home
computers.
In addition, the 2001 Year End Special Issue will also include 15 pages
on previously unreleased material as well as a color cover and a free
copy of Issue #11, known as "the lost issue."
Gregory D. George, editor and writer for The Atari Times commented,
"People have been asking me to do a print issue again for the past
several years, and I'm excited that it has come to fruition. This is one
of my proudest achievements and this issue brings back a lot of good
memories."
The pre-order pricing of the 2001 Year End Special Issue is $16.95 with
shipping charges included. After December 14th, the price will be
$19.95, also with shipping included. More information on The Atari Times
2001 Year-End Special Issue, including a table of contents, can be found
at http://www.ataritimes.com/specialfeatures/2001_YearEnd.html
The Atari Times is a web-based newsletter devoted to all Atari game
systems. Updates to the site are on a weekly basis. Visit
http://www.ataritimes.com/ for Atari related news, previews, reviews,
and feature articles.
=~=~=~=
A-ONE's Headline News
The Latest in Computer Technology News
Compiled by: Dana P. Jacobson
Judge Questions Private Microsoft Suits Settlement
A judge on Monday questioned a proposed settlement of private antitrust
suits against Microsoft Corp., raising doubts about its dollar value and
wondering if it favored the software giant over rival Apple Computer Inc.
Microsoft and most of the class-action attorneys in the case are in favor
of a deal that would require the company to spend more than $1 billion to
put software and computers into some of the poorest U.S. schools.
But U.S. District Judge J. Frederick Motz said he might have to subtract
the value of donated software as well as the value of goodwill the
settlement generates for Microsoft.
``If Microsoft is generating goodwill out of this, it should put more into
this," Motz told Robert Hall, an economist testifying in favor of the
settlement on Microsoft's behalf.
Earlier on Monday, Motz appeared to share concerns raised by Apple that the
agreement would flood schools with refurbished personal computers running
Microsoft's Windows operating system and other software.
``If in the solution there are structural biases, however good the
intention, then that's something that's got to be of concern," Motz said.
Critics also say the settlement helps Microsoft make further inroads into
the school market where Apple has traditionally been strong.
Meanwhile, some lawyers in the case say the deal is a fraction of what
Microsoft owes for abusing its monopoly over personal computer operating
systems and overcharging millions of people for software.
``The judge has clearly expressed concerns about the settlement," Dan
Furniss, an attorney representing Californian consumers, told reporters
outside the court.
Motz is trying to weigh the value of the proposed settlement against the
probability Microsoft could lose and pay more if the class-action suits
were allowed to proceed in court.
Motz asked Microsoft why it did not just distribute the money and let
schools spend it on whatever software they liked.
Microsoft deputy general counsel Tom Burt said the software giant could
help more schools under the proposed settlement, distributing more software
at a lower cost than if the same schools went out and bought programs on
the open market.
Burt accused Apple of trying to take Microsoft's settlement money and get
it spent on Apple products. ``Microsoft believes this settlement fully
maximizes the value of this case," he said.
The preliminary hearing on the private suits settlement proposal was
continuing. Motz held a day of hearings on the settlement last month.
The private suits are separate from the over three-year-old landmark
antitrust case being heard in Washington, D.C., in which Microsoft agreed
last month to settle with the U.S. Justice Department and nine of the
states that had joined that suit.
Another nine states have said that settlement is inadequate and proposed
their own remedies in a filing last week with District Judge Colleen
Kollar-Kotelly.
Justice Defends Microsoft Settlement
A top Justice Department lawyer defended the government's antitrust
settlement with Microsoft Wednesday, telling senators that the deal
complies with previous court rulings and will restore competition put in
jeopardy by the software giant's illegal practices.
Justice antitrust chief Charles A. James faced skeptical senators in the
abbreviated hearing and rebutted concerns that the proposed settlement is
unenforceable and has too many loopholes.
``So much of what has been called loopholes are carve-outs necessary to
facilitate pro-competitive behavior," James said.
The senators were due to hear from Microsoft lawyer Charles ``Rick" Rule,
as well as several Microsoft critics. But the hearing was cut short after
two hours because of an unrelated procedural matter, and will be
rescheduled.
Several senior members of the Senate Judiciary Committee said they doubted
the settlement would promote competition in the industry. They said they
wanted to see an end to the case, but were not impressed by the settlement
terms.
``Rather than closing the book on the case," said Sen. Orrin Hatch,
R-Utah, ``the proposed settlement only appears to be the end of the latest
chapter."
Hatch cited a letter from former Netscape executive Jim Barksdale, who said
that under the terms of the proposed settlement, Netscape, a Microsoft
rival, would never have existed.
``If the (settlement) goes into effect, it will subject an entire industry
to dominance by an unconstrained monopolist, thus snuffing out competition,
consumer choice and innovation in perhaps our nation's most important
industry," Barksdale wrote.
Netscape has since been bought by the company that is now AOL Time Warner.
Barksdale remains an AOL board member.
The Bush administration settled with Microsoft to get immediate relief for
consumers, officials said. The settlement requires that Microsoft allow
consumers to remove some features in Windows and release some of the
Windows blueprints to competitors so they can write compatible software.
In March, a federal judge is scheduled to decide whether the settlement is
good for consumers.
Also Wednesday, Microsoft responded to calls for stronger penalties from
nine states who have not settled with the software giant. In a court
document, Microsoft said the proposed remedies, which range from making the
company sell a stripped-down version of Windows to disclosing more of the
Windows blueprints to competitors, are ``extreme."
Microsoft lawyers said the state attorneys general ``seek to punish
Microsoft and to advance the commercial interests of powerful corporate
constituents - Microsoft competitors such as Sun Microsystems, Oracle,
Apple and Palm."
Sen. Mitch McConnell, R-Ky., was the only senator among the five present
who defended the company. McConnell cited a poll that found Americans favor
a settlement in the case.
Committee chairman Patrick Leahy, D-Vt., retorted that ``the majority of
people favor a settlement, but I don't think they favor any settlement,
they favor a good settlement."
Two Microsoft competitors, software firms Red Hat and Liberate
Technologies, sent executives to testify before the committee.
Red Hat head Matthew Szulik, whose Linux operating system product was
called a ``cancer" by Microsoft chief executive Steve Ballmer, wrote that
the settlement will do nothing to stop Microsoft's illegal practices.
``Biologists know that an unbalanced ecosystem, one dominated by a single
species, is more vulnerable to collapse," Szulik wrote. ``I think we're
seeing this today. Under the consent decree, it will continue and probably
get worse."
HP, Compaq Deal Now in Hands of Shareholder Adviser
The fate of the largest computer merger in U.S. history now rests largely
on a small Maryland firm charged with advising some of the nation's largest
index and public pension funds.
Hoping to salvage their much-maligned merger, Hewlett-Packard Co. and
Compaq Computer Corp. have stepped up preparations for several crucial
meetings with analysts at Institutional Shareholder Services, likely to
take place next month.
Merging companies typically place a great deal of weight on such meetings
since ISS recommendations influence the voting habits of some of the
largest U.S. stockholders.
But for Hewlett-Packard and Compaq, ISS' recommendation takes an even
greater sense of importance following last Friday's events -- when HP's
largest shareholder, the David and Lucile Packard Foundation, joined other
members of the firm's founding families and said it would vote against the
deal.
``We would liken the (merger's) prospects to the (best-of-seven-games)
World Series in which proponents of the deal have lost the first two games
and are behind in the third," said George Elling, a Deutsche Banc analyst,
in a research note. ``From here, HP and Compaq management can still get the
merger done, albeit it will be more difficult."
ISS will not make its formal recommendation on HP/Compaq until two or three
weeks before the official shareholder vote. The companies have not yet
announced that date, in part because they are trying to wrap up various
regulatory approvals first, but it is expected to be some time late in the
first quarter.
The companies have already been in communication with ISS informally,
however, and are supplying the firm with data supporting the merger,
sources said.
Still, in a series of meetings Friday night after the Packard Foundation
released its decision, executives of both companies concluded the odds
still favored getting the deal approved, according to sources close to the
discussions.
While the Hewlett and Packard families control roughly 18 percent of HP's
outstanding shares, slightly more than half of the company's shares are in
the hands of institutional holders, which tend to be more influenced by a
merger's strategic rationale than emotional issues, such as job losses.
The Packard family has opposed the merger because they believe it will
create a less stable asset and dilute the company's traditional printing
franchise by injecting it into the lower-margin personal computer market
and competitive computer services market.
The companies, however, contend the deal will give the company better depth
long-term, particularly if it is able to grow the services unit and focus
more on high-end computers.
Since HP and Compaq need only to have a majority of the voting shares
approve the merger, the executives decided they could still win approval,
sources said.
An essential component to winning those votes, however, is a thumbs-up
recommendation from ISS, which serves more than 700 institutional clients
worldwide. About half of those clients, including several that hold
Hewlett-Packard or Compaq shares, either let ISS vote their shares or are
greatly influenced by the Rockville, Maryland-based group's
recommendations.
``The belief is if we win ISS, then it's a horse race again," said one
source familiar with the companies' thinking.
Indeed, the strongest source of optimism lies in ISS' methodology, which
places great weight on a merger's rationale and the board's diligence
putting it together.
``At the top of the list for us always are ... the economics of the deal
itself. Does this deal make sense?" said Patrick McGurn, director of ISS'
corporate programs. ``Our horizon is probably mid-term. We're not looking
10 years down the road, but we aren't looking a quarter ahead either."
On that point, Hewlett-Packard and Compaq are confident they can win. Even
the Packard Foundation, several executives note, said it understood the
deal's strategic rationale.
ISS also almost always supports friendly mergers, proxy experts said. When
deals are contested or become hostile, the odds of a positive
recommendation drop to about half.
Some analysts argue the deal's hurdles may be higher than the firms think.
Bear Stearns analyst Andrew Neff said Monday he believes ISS' decision
would be based partially on a Booz Allen analysis the foundation used to
decide against the deal.
And, there is no guarantee the institutional clients will follow ISS' lead
this time. ISS is thought to have direct influence over between 10 percent
and 15 percent of Hewlett-Packard's shares and influence over a
``significant minority" on top of that, according to two sources.
But many, given the merger's high profile, may make their own decision,
regardless of their arrangement with ISS.
Israeli Teens Confess To Launching 'Goner' Worm
Four Israeli teenagers have confessed to being behind the "Goner" computer
worm that has affected hundreds of thousands of computers around the
world, police were quoted as saying this weekend.
The four high school students, all aged 15 or 16, were arrested in
Nahariya, in northern Israel, and taken into custody, according to
published reports. After one confessed to creating and spreading the worm,
which has slowed considerably but still is infecting systems, the other
three also admitted to it, law enforcement officials reportedly said.
Security experts said the four youths may have been apprehended because
they left their online nicknames in the worm's computer code, reports
said. Also, the fact that the worm targeted some instant chat users led
investigators with Israel's computer crime squad to believe the
perpetrators of the worm may have been teenagers.
Under Israeli law, the four could serve between three and five years in
jail, according to reports.
Experts warned that the Goner worm had the potential to be the most
destructive virus since "Love Letter" hit home and corporate personal
computers last year, causing US$8.7 billion in damages, according to
Computer Economics.
Security software firm McAfee last week designated Goner a high outbreak
worm, giving it its most severe rating. Other called the worm "incredibly
fast-moving," and issued warnings.
A Tokyo security firm gave Goner its second-highest ranking and a Hong
Kong computer emergency agency issued warnings. However, after wreaking
havoc in Europe and the U.S., the worm never caused significant damage in
Asia, where instant chat programs, which the worm uses to spread rapidly,
are not as widely used.
Security experts reportedly have said Goner has affected up to 80,000
computers in 19 countries, including Israel.
The Goner worm was designed after Melissa, the notorious and costly worm
that caused millions of dollars of damage in 1999. That worm had the
ability to escape detection by antivirus software and security firewalls.
The Goner virus started getting notice earlier this month, first in
Europe, and especially in France and Germany.
A mass-mailer worm disguised as a screen-saver, Goner propagates itself
through the Internet and other networks. It is distributed by e-mail
mainly to Microsoft Outlook users, although users of Outlook 2001, the
latest version, are less apt to fall victim because the program blocks
potentially harmful attachments by default.
Outlook 2001 also provides warnings to users when a program tries to
access a user's address book, which the virus uses to mail itself to other
victims.
Goner is not a self-activating worm. It contains a payload inside that
must be activated by the user. When activated, the worm deletes files from
computers and then e-mails itself to addresses in the user's address book.
It also uses a fake error message to disguise itself.
The worm tries to delete security software, exposing users to further
attacks. In addition, it installs a "back door," which could turn
computers into launch pads for denial-of-service attacks. Antivirus firms
were able to issue antidotes to the worm because, though potentially
costly, it is not complicated.
The worm closely follows the Badtrans worm, which also targeted Microsoft
Outlook users.
Poetic Goker Disables Antivirus Potection
Not all Internet worms contain misspellings and sex references. In fact,
Goker (w32.goker.a@mm) is even a little poetic. Unfortunately, this worm
will attempt to contact everyone in your Microsoft Outlook address book,
potentially tying up e-mail servers with excess traffic. Goker also
contains an mIRC script that allows the worm to spread from infected users
to other IRC users who share the same channel. In rare cases, Goker can
spread via a Web page, asking users who happen upon an infected Web page
to download a file called Web.exe. At this time, Goker is not known to
damage data files, but it will disable antivirus software running at the
time of infection. Goker currently ranks a 4 on the ZDNet Virus Meter.
How it works
Goker arrives as e-mail with one of the following subject lines:
* If I were God and didn't belive in myself would it be blasphemy
* The A-Team VS KnightRider...who would win?
* Just one kiss, will make it better. just one kiss, and we will be
alright.
* I can't help this longing, comfort me.
* And I miss you most of all, my darling...
* ...When autumn leaves start to fall
* It's dark in here, you can feel it all around. The underground.
* I will always be with you sometimes black sometimes white ...
* ...and there's no need to be scared, you re always on my mind.
* You just take a giant step, one step higher.
* The air will hold you if you try, trust my wings of desire. Glory,
Glorified...
The body of the e-mail contains one or more of the following:
* Happy Birthday
* Yeah ok, so it's not yours it's mine :)
* The horizons lean forward, offering us space to place new steps of
change.
* I like this calm, moments before the storm
* Darling, when did you fall...when was it over?
* Will you meet me...and we'll fly away?!
* You should like this, it could have been made for you
* speak to you later
* They say love is blind...well, the attachment probably proves it.
* Pretty good either way though, isn't it?
* still cause for a celebration though, check out the details I
attached
* This made me laugh
* Got some more stuff to tell you later but I can't stop right now
* so I'll email you later or give you a ring if thats ok?!
* Speak to you later
The attached filename consists of a random number combined with some of
these strings:
* tgfdfg
* jhfxvc
* cgfd2
* trevc
* t6tr
* ffdasf
* glkfh
* fhjdv
* qesac
* kujzv
* weafs
* twat
* rewfd
* gfdsf
* hgbv
* fdsc
* p0olik
* 3tgf
* rf43dr
* t54refd
* ut545a
* r4354gkjw
* vgrewu
* xw54re
* y343rv
* z3vdf
Lastly, the filename has one of these extensions: .pif, .scr, .exe, .com,
or .bat.
If the attached file is opened, the worm adds the infected user's name to
the end of the message and sends copies of the mail to all addresses in
the Microsoft Outlook address book. Goker also contains a script called
script.ini. If an infected user joins an IRC channel, Goker sends the
infected file karen.exe to new users joining that channel. The worm looks
for specific words used on the channel and will change a user's nickname
to variations on Karen, such as KarenWorm or KarenGobo, or change the
user's channel to #teamvirus.
If the infected computer is also a Web server running Microsoft IIS, Goker
can infect the Default.htm page so that outsiders who visit the site will
be asked to download a file called Web.exe. The infected Web page contains
the text "We Are Forever."
On infected computers, Goker looks for and disables several popular
antivirus products, including Symantec, F-Secure, Kaspersky, Sophos, and
Trend Micro.
Removal
Almost all the antivirus software companies have updated their signature
files to include this worm. For more information on removing Goker from
your system, see Central Command, Computer Associates, F-Secure,McAfee,
Panda, Sophos, Symantec, and Trend Micro.
Court OKs ExciteAtHome Deal with Comcast, Cox
The Bankruptcy Court in San Francisco approved Internet service provider
ExciteAtHome Corp.'s plans to temporarily provide access to Comcast Corp.
and Cox Communications Inc. subscribers, the cable companies said on
Tuesday.
Comcast and Cox each reached a deal with the bankrupt company to provide
network services each company's cable modem subscribers for three months
for $160 million in lieu of subscriber fees it would have normally paid
ExciteAtHome.
Each company is in the process of building its own high-speed network to
replace ExciteAtHome's network. Comcast will begin moving customers to its
network this month and will be completed by the end of February. The
company has said it will spend about $75 million to build the network.
Cox has also said it plans to build its own high-speed network.
Early Archive of Net Rants and Raves Restored
A virtual treasure chest of over 700 million message postings, chronicling
everything from the fall of the Berlin Wall to Pee Wee Herman jokes, has
been restored on the Internet, much to the delight of Net fans.
Popular Internet search service Google acquired the UseNet discussion group
archive last February when it purchased the now defunct DejaNews.com.
The earliest message postings had been taken down by then, triggering
consternation among nostalgic Net heads.
The privately held Google on Tuesday made good on its promise, bringing
back an essential voice of the Internet's early years. Rants, reviews, and
``new" discoveries in all their unedited glory have been restored, dating
back to 1981.
``Google's UseNet archive is a veritable international treasure," one user
wrote on Wednesday. ``I really don't think I'd want to suffer another
interruption of access to it."
The restored postings run the gamut from the odd to the touching.
For example, in January, 1986 and November, 1989 users posted timely
personal accounts of the U.S. space shuttle Challenger crash and the fall
of the Berlin wall, respectively.
``As we sit here in West Berlin this morning, we are just discussing the
news about the wall -- its open and may soon be no more!!!!," one dispatch
reads.
Over the years, UseNet has attracted the good, bad and ugly, including
comment and debate on every facet of current events and popular culture.
Originally the domain of academics and computer enthusiasts, the discussion
group, which predates the dawn of the World Wide Web by a dozen years, has
evolved into a global forum growing in popularity alongside the Internet
itself.
The earliest message is dated May 12, 1981, four years before the birth of
America Online, the world's largest Internet service provider. It's an
obscure product review for a Versatec V-80 electrostatic plotter, which
carries an $8,500 price tag.
A few weeks later, the first reference to Microsoft appears in the form of
a tame synopsis of a BYTE magazine article describing the company's newest
Unix software launch.
In July, 1983, a user mentions Madonna in passing in a statement about
album speeds. It was the first of over 570,000 UseNet postings on the
artist.
It's not all irrelevant blather either.
In December, 1982, a contributor posted on UseNet the first message about
AIDS, triggering a string of poignant responses from concerned users
sharing information on the deadly disease.
``The disease sounds very frightening...Seems like the public should be
more aware of it," one alarmed respondent wrote.
The tradition of chronicling news events, sometimes as they happen, is a
legacy that lives on today with UseNet. On Sept. 11, hundreds of thousands
of users streamed onto the service sharing observations and theories as the
events unfolded.
In reintroducing the archive, Google calls it ``the most complete
collection of UseNet articles ever assembled and a fascinating first-hand
historical account."
One contributor on Wednesday took up the challenge, discovering what may be
the first UseNet reference to British rock band The Who. ``And after
discovering that little gem, I'm off to get a life," the user wrote.
U.S. Reaches Deal to Free Russian Programmer
The United States agreed on Thursday to free Russian software programmer
Dmitry Sklyarov in exchange for testimony against his company about alleged
violations of U.S. copyright law, lawyers for both sides said.
Sklyarov, who has been at the center of a widely publicized case involving
free speech rights in cyberspace, will be able to return to Russia once the
government has completed deposing him, said his defense attorney, John
Keker.
Under the cooperative agreement, Sklyarov admitted to writing a program
that allowed for digital books to be copied and transferred but did not
plead guilty to any charges, said Assistant U.S. Attorney Matt Jacobs.
The criminal charges against him will be dropped after he testifies on
behalf of the U.S. government and completes court-ordered supervision for
at least one year, Jacobs said.
Once in Russia, Sklyarov will be prohibited from violating any U.S.
copyright laws and will be required to phone in to a court officer in the
United States once a month, according to Jacobs.
Sklyarov was arrested in July after giving a presentation in Las Vegas
about software he had developed which allows people using Adobe Systems
Inc. eBook Reader software to copy and print digital books, transfer them
to other computers and have the computer read them aloud.
Keker predicted that Sklyarov's testimony would lead to an acquittal for
his Moscow-based employer, ElcomSoft Co. Ltd.
``He wrote a program that showed that Adobe encryption was worthless and a
threat to all the copyright owners relying on Adobe software," said Keker.
``This is the subject of his PhD thesis.
``The government may have a misunderstanding about what happened, and the
motivation," Keker added.
Prosecutors declined to comment on what value Sklyarov's testimony would
have to their case.
Sklyarov, who turns 27 on Dec. 18, and ElcomSoft were both charged with
selling and conspiring to sell technology designed to circumvent the U.S.
Digital Millennium Copyright Act, a law enacted last year which bans the
sale of technology that thwarts copyright protections in computer and
electronic programs.
Sklyarov, who was released on $50,000 bail, pleaded not guilty in August
and has been living in San Mateo, California, pending resolution of his
case, which had not been expected to go to trial until June or later.
He faced up to 25 years in jail if convicted. His employer still faces
$2.25 million in fines if found guilty.
As the first person charged under the controversial DMCA, Sklyarov quickly
became a cause celebre among cyber-activists, who charge that the new U.S.
law is too broad and impedes software development.
Following his arrest, Russia warned computer experts of the dangers of
visiting the United States.
The deal, in the form of a ``diversion agreement" approved Thursday by
U.S. Federal Court Judge Ronald Whyte, will require Sklyarov to testify in
the trial of ElcomSoft -- a move defense lawyers say could actually bolster
the Russian company's case.
``ElcomSoft offered to take Dmitry's place and substitute the company as
the sole defendant in this case," Joe Burton, attorney for ElcomSoft, said
in a statement.
``The company knows that neither Dmitry nor they committed any criminal
acts and believes that in the end, they will be found innocent of any and
all charges the U.S. Government is bringing against them," Burton said.
ElcomSoft Chief Executive Officer Alex Katalov welcomed the deal to free
Sklyarov, saying the programmer's welfare has been the company's top
priority.
``This decision actually liberates us from worrying about Dmitry going to
jail," Katalov said in a statement. ``Now this risk is removed, the
company can pursue its own defense more aggressively."
Sklyarov himself -- who has become an unlikely poster boy for free speech
activists around the globe -- said he was relieved that he and his family
could finally contemplate returning home.
``Until I'm in Russia, it is too early to say that I'm happy. But this
agreement looks like (the) first significant change in my situation for
last five months, (my) first real chance to get home," he said.
Sklyarov, who is currently completing his doctorate, is living with his
wife and two young children who joined him from Russia after his release on
bail.
Robin Gross, staff attorney for the Electronic Frontier Foundation, said
public pressure had led to the agreement.
``We are thrilled the government has finally realized that the public does
not support prosecution of this young man for writing software," she said.
Apple's OS X Brings America Online
America Online said Tuesday that it has readied a Mac OS X version of its
flagship software, marking another key program that has been reworked for
Apple Computer's new operating system.
The arrival of AOL for Mac OS X, which had been available only in a beta,
or test, version follows the delivery last month of Microsoft Office v. X
for Mac OS X, perhaps the most eagerly awaited Mac OS X program.
Although older Macintosh programs work in the so-called classic
environment of Mac OS X, programs must be tweaked to take advantage of the
operating system's new features such as improved stability and its Aqua
user interface.
Analysts have said it is critical for major applications to be available
for Mac OS X before use of the operating system will take off. One of the
key remaining programs is Adobe Systems' Photoshop, which is not expected
to be optimized for OS X until next year.
AOL, a division of AOL Time Warner, is the world's largest online service,
with 32 million subscribers.
In addition to adding Mac OS X support, the new version of AOL's software
allows members to sort e-mail messages by sender, subject, date or type.
It also includes the latest versions of Microsoft's Internet Explorer and
Macromedia's Flash software.
AOL and Apple have been working together on several projects in recent
months. In November, Apple introduced a new version of its AirPort
wireless networking software that allows Mac owners to share an AOL
connection within a wireless home network.
"We'll continue to look for opportunities to extend the AOL experience to
the Mac community by programming the AOL service in ways that enhance the
Macintosh user's experience," Peter Ashkin, president of product strategy
for AOL, said in a statement.
Apple released Mac OS X in March and has started including it on new
Macintoshes. However, for now, Mac OS 9 is still the default operating
system on new machines.
AOL Launches Test Version of MusicNet Service
America Online, the Internet service of AOL Time Warner Inc., said on
Tuesday it introduced a test version of the long-promised MusicNet music
subscription service and expects a full launch of the service next month.
The service, which was established by three of the world's largest record
labels -- AOL Time Warner's Warner Music Group, Bertelsmann AG's BMG
Entertainment, and EMI Group Plc, -- along with Internet media delivery
service RealNetworks Inc., was also launched last week on RealNetworks
hrough its RealOne service.
Similar to RealNetworks' offering, subscribers to America Online, the
world's largest Internet service provider, will be able to download or
``stream" 100 songs a month from a selection of 78,000 songs for a monthly
fee of $9.95.
AOL is betting that the MusicNet service will help the service establish a
broader music presence on the Internet. One of the selling points of the
new version of AOL software, AOL 7.0, is more features like the AOL Radio
service.
``The introduction of MusicNet 1.0 will expand our range of music offerings
and represents an important starting point for an entirely new way to
purchase music online," said Kevin Conroy, general manager of AOL Music.
The move comes a week after independent online music firm Listen.com rolled
out its Rhapsody subscription service. Rival subscription service
Pressplay, a joint venture between Vivendi Universal's Universal Music
Group and Sony Corp.'s Sony Music, is expected to launch its service later
this month.
After fighting a successful legal battle to stop the unlicensed traffic of
copyrighted songs on the Internet that peaked with the court ordered
shutdown of the free Napster service in July, the record industry has been
criticized for waiting so long to launch its own online services.
At the same time, some industry watchers remain skeptical that the new
fee-based services will be able to gain ground against other free
file-swapping services that still operate online.
``MusicNet is not something that's going to change the business
overnight," said Bob Pittman, co-chief operating officer at AOL Time
Warner Inc., to reporters at Internet World. ``We are realistic about what
it is and what it is not."
But he noted that the new technology could give a boost to a music industry
that has been sagging from weaker sales. He noted that the current business
environment was similar to the early 1980s. At that time, MTV and compact
discs emerged as new ways to promote and sell music, he said.
Pittman was one of the founders of MTV.
Appeals Court Hears Napster Case
Both sides in the battle over the song-swapping service Napster asked a
federal appeals court to modify lower court rulings that have kept the
company idle since July.
One injunction, issued by U.S. District Judge Marilyn Hall Patel this
summer, unfairly places the burden on the major record labels to constantly
monitor Napster and complain every time two users swap a file in violation
of the record company's copyrights, the attorney representing the recording
industry said.
Russell Frackman told a three-judge panel of the 9th U.S. Circuit Court of
Appeals Monday that Napster should bear the responsibility to police its
own system.
``Their obligation is to police to the fullest, not hide their heads,"
Frackman said.
The major record labels sued Napster Inc. in 1999, claiming the service
violates its copyrights by allowing users to trade unauthorized copies of
songs.
Napster shut down in July after Patel ordered that the service not operate
until it could guarantee that it would filter out 100 percent of all
copyright violations.
Napster remains idle while it works to unveil a new, subscription-based
service.
Patel has ruled that the record labels must not only provide a list of the
names of protected songs for Napster to take off its system, but actual
computer file names created by Napster users.
Frackman said that ruling went too far.
``It imposes on us an enormous, continuing and brand new burden," Frackman
said. ``We have to be on the system, find a person, locate the file, give
notice and three days later Napster takes it down."
Judge Robert Beezer challenged Frackman, saying that the song-by-song
enforcement system gives the record companies a list of violations to
present to a jury once the case goes to trial.
``If they keep violating your stuff, keep telling them to get it off and
then when you go to trial, there's your evidence," Beezer said.
The record companies are seeking the maximum statutory damages of $100,000
for each work infringed and believe the total amount of damages will exceed
$100 million. No trial date has been set.
The attorney for Napster took issue with a number of Patel's actions,
including her reliance on a technical consultant for advice.
Lawrence Robbins told the appeals court that adopting a ``zero tolerance
policy," requiring Napster to filter out every possible copyright
violation, did not reflect the limits of the technology in use and is a
harsher standard than the law requires.
``(Judge Patel said) 'You stay down until you can assure me that there will
not appear anywhere on that system an infringing work,"' Robbins said.
``That is not respecting the limitations of the architecture."
``I respect the architecture, but I also respect the copyright law,"
Beezer said.
Robbins also said the record labels should be required to provide specific
computer file names so Napster can take the file off its
system and, if
necessary, bar the person who posted the file.
It is not known when the court will rule on the appeals.
Antivirus Firms Say They Won't Create FBI Loophole
Anti-virus software vendors said on Monday they don't want to create a
loophole in their security products to let the FBI or other government
agencies use a virus to eavesdrop on the computer communications of
suspected criminals.
Under a project code named ``Magic Lantern," the U.S. Federal Bureau of
Investigation is creating an e-mail-borne virus or Trojan horse that hides
itself on the computer and captures all keystrokes made, including
passwords that could be used to read encrypted mail, according to a report
on MSNBC.com in November.
Despite subsequent reports to the contrary, officials at Symantec Corp.
and Network Associates Inc. said they had no intention of voluntarily
modifying their products to satisfy the FBI. Spokesmen at two other
computer security companies, Japan-based Trend Micro Inc. and the U.S.
subsidiary of UK-based Sophos PLc., made similar statements.
All four anti-virus companies said they had not contacted or been contacted
by the U.S. government on the matter.
The FBI declined to confirm or deny the report about ``Magic Lantern,"
when it was first published by MSNBC.com and a spokesman was not available
for comment on Monday.
``We're in the business of providing a virus-free environment for our users
and we're not going to do anything to compromise that security," said Tony
Thompson of Network Associates.
``Symantec's first priority is to protect our customers from malicious and
illegal attacks," Symantec Chief Executive John W. Thompson said in a
statement. ``We have no intention of creating or leaving a hole in our
software that might compromise that security."
If anti-virus vendors were to leave a hole for an FBI-created Trojan horse
program, malicious hackers would try to exploit the hole too, experts said.
``If you leave the weakness for the FBI, you leave it for everybody," said
Fred Cohen, an independent security expert and digital forensics professor
at the University of New Haven.
From the industry perspective, leaving a hole in anti-virus software would
erode public confidence and damage the reputation of the vendor, sending
customers to competing companies, the vendors said.
The government would have to convince all anti-virus vendors to cooperate
or the plan wouldn't work, since those not cooperating would have a market
advantage and since they all share information, said a Symantec
spokeswoman.
``The thought that you would be able to convince the industry as a whole to
do this is kind of naive," she said.
Symantec and Networks Associates, both of whom have investments in China,
would not jeopardize their footings in that market, said Rob Rosenberger,
editor of www.vmyths.com, a Web site that debunks virus hoaxes.
``If (the Chinese) thought that the company was a tool of the CIA, China
would stop using those products in critical environments," Rosenberger
said. ``It is in the best interest of anti-virus vendors not to heed the
call of the FBI."
``We always try to cooperate with the authorities when it's appropriate.
Having said that, our No. 1 goal is to protect our customers," said
Barbara Woolf of Trend Micro. ``I've heard reports that the government is
upset this got out and is going back to the drawing board."
Appeasing the U.S. government would be difficult for vendors who have
parent companies and customers outside the United States, they said.
``If the laws of the land were to change to permit this kind of activity
then we would abide by the law," said David Hughes, president of Sophos'
U.S. subsidiary.
But ``how would a vendor provide protection for customers outside of the
specific jurisdiction?" Hughes asked. ``If we were to do this for the U.S.
government we'd also have to do it for the government of any other nation
that would want to do something similar."
FBI Confirms 'Magic Lantern' Project Exists
An FBI spokesman confirmed on Wednesday that the U.S. government is working
on a controversial Internet spying technology, code-named ``Magic Lantern",
which could be used to eavesdrop on computer communications by suspected
criminals.
``It is a workbench project" that has not yet been deployed, said FBI
spokesman Paul Bresson. ``We can't discuss it because it's under
development."
The FBI has already acknowledged that it uses software that records
keystrokes typed into a computer to obtain passwords that can be used to
read encrypted e-mail and other documents as part of criminal
investigations.
Magic Lantern reportedly would allow the agency to plant a Trojan horse
keystroke logger on a target's PC by sending a computer virus over the
Internet, rather than require physical access to the computer as is now the
case.
Malicious hackers have been known to use e-mail or other remote methods for
installing spying technology, security experts said.
When word of Magic Lantern leaked out in published reports in November,
civil libertarians said the program could easily be abused by overzealous
law enforcement agencies.
When asked if Magic Lantern would require a court order for the FBI to use
it, as existing keystroke logger technology does, Bresson said: ``Like all
technology projects or tools deployed by the FBI it would be used pursuant
to the appropriate legal process."
Major anti-virus vendors this week said they would not voluntarily
cooperate with the FBI and said their products would continue to be updated
to detect and prevent viruses, regardless of their origin, unless there was
a legal order otherwise.
Doing so would anger customers and alienate non-U.S. customers and
governments, they said, adding that there had been no requests by the FBI
to ignore any viruses.
The FBI set a precedent in a similar case by asking Internet service
providers to install technology in their networks that allows officials to
secretly read e-mails of criminal investigation targets.
While the FBI requires a court order to install its technology, formerly
called ``Carnivore," some service providers reportedly comply voluntarily,
while court orders are relatively easy to get, civil libertarians argue.
Given the hijacking attacks of Sept. 11, it is also conceivable that the
U.S. government would enlist the aid of private companies to combat
terrorism and help its war effort, said Michael Erbschloe, vice president
of research at Computer Economics, which analyzes the impact of viruses.
``In previous wars, including World War II, the government had the power to
call on companies to help; to commandeer the technology," said Erbschloe,
author of ``Information Warfare: How to Survive Cyber Attacks."
``If we were at war the government would be able to require technology
companies to cooperate, I believe, in a number of ways, including getting
back door access to information and computer systems."
Scooter Craze Fades Along with Dot-Coms
Where have all the scooters gone?
Once a symbol of dot-com cool and a major fad that rolled across the
nation, Razors and other ``push scooters" are now begging for buyers,
retailers say.
Many of the hip Internet set who were scootering down the hilly streets of
this city by the bay just a year ago have shifted to more traditional modes
of transportation, reflecting the more sober mood of the recessionary
times.
``For people who used them because they were cool, hip and fun, the fad is
probably over," said Monica Noordam, a spokeswoman for San Francisco
online learning company DigitalThink Inc., which still keeps scooters on
hand for staff to zip between its three buildings.
But even with a corporate blessing, scooters for its 300 workers in San
Francisco are not used as much as in their heyday.
``You see two to five people zipping around," she Noordam.
When the dot-com money was hot, scooters -- especially push scooters --
abounded on San Francisco streets.
``No more than a Razor-scooter ride from a multitude of cultural
attractions and contradictions!" says a loft developer in apartment
advertisements that now seem nostalgic.
But manufacturers and retailers tell the sad story of today's market. In
one of the biggest sales drops in recent memory for any product, Huffy
Corp. said its scooter sales plunged from $44 million in last year's third
quarter to "virtually no scooters" this year.
Meanwhile, San Francisco-headquartered retailer Sharper Image Corp., which
sells a wide range of gadgets and novelties, reported a 20 percent drop in
its November sales -- and blamed nearly all of the decline on scooters.
What happened to the scooter craze? Analysts say the adolescent toys fit
the mood in San Francisco's boom days, when a generation of
twenty-somethings enjoying easy success at a young age was still clinging
to kid's toys. The California fad inspired younger buyers throughout the
country.
But as the dot-com bubble burst, so did scooter sales -- and an already
saturated kids' market moved on to other toys.
Nationally, scooter sales peaked in last December, and no other outdoor
recreational product has come along to offer the same kick to retail sales,
said Kristine Koerber, an analyst at WR Hambrecht.
``Last year was huge for scooter sales," said Koerber. ``It was a fad. We
had a year of a scooter craze and then it died."
Now, it's being looked at a classic fad.
Between 8 million and 12 million scooters were sold in the United States
last year, according to Katherine Mahoney, a spokeswoman for Razor USA Llc,
the biggest U.S. scooter maker.
Privately-held Razor last year sold more than 5 million scooters, said
Mahoney.
While the buyers were mostly younger, and spread throughout the company, it
was the Internet industry's ``urban hipsters" helped who trigger the
initial sales surge, said Mahoney.
``That audience influences a lot of trends," she said. ``The first person
I saw on a scooter was a 30ish person in a suit in Manhattan."
While scooters have saturated the children's market, scooters bought in
2000 have yet to suffer enough wear and tear to be replaced, Mahoney said.
Sharper Image recently cited the bursting of the ``scooter bubble" as a
major reason for a decline in overall sales. Its November sales fell 20
percent year-over-year on a same-store basis. Excluding sales of the Razor
Scooter -- the high-end and best-known brand-- same-store sales were down
just 1 percent.
``All of our sales channels still face difficult comparisons to last year's
exceptional sales gains, primarily driven by the Razor Scooter
phenomenon," Sharper Image Chief Executive Richard Thalheimer said on
Thursday.
In another sign of the collapse, bicycle maker Huffy Corp. posted a $2.8
million third-quarter loss, compared with a year-earlier profit of $5.2
million, after selling "virtually" no scooters in the third quarter.
A year earlier, Huffy had $44 million in scooter sales.
Once, scooters were in such demand, shortages made them hard to get. But
now retailers are trying to spur sales with bargains. The Sharper Image Web
site advertises the Razor Wheel.e Scooter at a $20 discount, or about 40
percent off, for $29.95. A year-ago, many souped-up models were selling for
$1000 and more.
=~=~=~=
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