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Atari Online News, Etc. Volume 04 Issue 22
Volume 4, Issue 22 Atari Online News, Etc. May 31, 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:
Francois Le Coat
Grzegorz Pawlik
To subscribe to A-ONE, change e-mail addresses, or unsubscribe,
log on to our website at: www.atarinews.org
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To unsubscribe from A-ONE, send the following: Unsubscribe A-ONE
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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 #0422 05/31/02
~ Study of Online Piracy ~ People Are Talking! ~ Eureka News Update!
~ PC Prices Drop Lower! ~ Court Overturn Filters ~ Rave Nintendo Titles
~ AT&T High-Speed Shock! ~ Nintendo: Price Loser? ~ No Microsoft News!!!
~ Whose Laws Rule WWW? ~ ~ NY Spam Crackdown!
-* Who Were You In "Past Life"? *-
-* Aussie Spammer Sues Anti-Spam Backer *-
-* FBI Says Cybercrime Now A "Top-10" Priority *-
=~=~=~=
->From the Editor's Keyboard "Saying it like it is!"
""""""""""""""""""""""""""
I think I saw the sun for all of five minutes this week! What a rotten
week. If it weren't for the "fact" that we needed the rain, it would have
been a total disaster weather-wise. Hopefully, it's supposed to be a nice
weekend. Hey, we've earned it!
At least we had a short work week due to the holiday here. It's always nice
to have those long weekends! The down side as far as A-ONE goes is we had
one less day of news to follow. In all likelihood, this will be a smaller-
than-usual issue this week. Hey, even Joe Mirando found an excuse for not
getting his column in this week! Imagine, he's laid-up with chronic back
problems. But, it happens occasionally.
Hey, I just want to say this this week's issue contains NO mention of the
Microsoft antitrust case! This is probably the first week in perhaps a
couple of years that the case hasn't made the news, and this magazine. Must
be a new scandal brewing!
Anyway, in keeping with the short holiday week, I'll spare you all some deep
philosophical ramblings and we'll get right to the important stuff.
Until next time...
=~=~=~=
Update From June of Eureka :-)
Hi all,
I have uploaded the june release of Eureka on my WEB page.
My software is a 2D Graph Describer and a 3D Modeller. About
news, I can tell that the compatibility of POV 3.1 export
is now good when using POV 3.5. The LDG screen driver is
now better handled, and more compatible with some platforms.
I can say that Tos2Win is now OK, though it was very tricky
since then. The RAM is also better managed. Thanks to that,
I could run Eureka + OpenGl in 4Mb of memory on my Falcon
and MagiC Mac demo. These are my references about a minimal
configuration. Of course, without OpenGl, Eureka should
work in 1Mb of memory (can anyone tell me more ?). I also
performed some optimizations in speed. Shortly, I strongly
recommend it to you ! Any comment is welcomed.
So, see you soon for updated news of ATARI front-line ...
-- Francois LE COAT
Eureka 2.12 Author (2D Graph Describer, 3D Modeller)
http://eureka.atari.org
lecoat@atari.org
Past Life ;-) for Atari
Hi!
Have you ever wondered who were you in your past life?
Now you have the chance to check it out with your
Atari-compatible computer. Just enter the day, month
and year when you were born in THIS life, and my prg
will tell you who you were in your PREVIOUS life.
The original version has been written by Natalie V. Zubar.
I have only made the Atari version. It works with all Ataris,
but 640x400 display is needed (so use ST-HIGH on STs).
It is a GEM program of course.
You may find it at http://gregory.atari.pl/pastlife.htm
So have fun with the secret esoteric wisdom ;-)))
--
Grzegorz Pawlik
http://marijuana.atari.org/
=~=~=~=
PEOPLE ARE TALKING
compiled by Joe Mirando
joe@atarinews.org
[Editor's note: Joe's column for this week is missing due to illness. He'll
be back next week.]
=~=~=~=
->In This Week's Gaming Section - Nintendo A "Loser" In Price War?
""""""""""""""""""""""""""""" Nintendo Gets Rave Game Press!
=~=~=~=
->A-ONE's Game Console Industry News - The Latest Gaming News!
""""""""""""""""""""""""""""""""""
Nintendo Faces Fallout From Console Price War
Japanese video game giant Nintendo Co. Ltd. ushered in a new management
team last week as the old guard stepped aside, but its main problem remains
-- blistering competition in the game console business.
The effect of that is likely to show up in the company's earnings due out
on Thursday, two weeks after dominant Sony Corp. triggered an industry-wide
price war by cutting the price of its best-selling PlayStation consoles.
Analysts say Nintendo, which makes game consoles and software, could see
sales of its "GameCube" console suffer this year as Sony and newcomer U.S.
newcomer Microsoft raise the pricing pressure.
Still, they add that Nintendo's software line-up looks promising and
should benefit from strong industry-wide console sales, taking up the
slack from the GameCube.
The weak yen is expected to give earnings a boost for last business year,
but profit growth looks set to slow going forward, especially with the yen
showing signs of strength.
The company revised up its 2001/02 earnings forecast last month to a group
net profit of 110 billion yen from 80 billion. The weak Japanese currency,
which boosted overseas sales and repatriated earnings, added some 50
billion yen to its group current profit.
The Nihon Keizai Shimbun business daily said last month that Nintendo is
likely to post 640 billion yen ($5.13 billion) in sales this year,
compared with a company estimate of 550 billion yen for 2001/02.
But the newspaper said operating profit may only edge up to 130-140
billion yen for the year to next March from an estimated 120 billion yen
last year.
Takashi Oka, chief analyst at Tsubasa Securities, said he expects further
price cuts this business year, which could suppress Nintendo's profits.
"I expect Nintendo to slash the GameCube price again at the end of this
year," Oka said.
Sony slashed a third from the U.S. price of its PlayStation 2 (news - web
sites) console and announced cuts in Europe and Japan, triggering a quick
response from Microsoft, which knocked around a third off the price of its
"Xbox."
Nintendo was forced to follow, announcing it would cut the price of its
GameCube machine in Japan to 19,800 yen ($157.90) from 25,000 yen in a bid
to regain its price advantage.
Concerns that this will hit Nintendo's bottom line have been hurting its
share price. They have dropped more than 22 percent this year,
underperforming a 14 percent rise by the benchmark Nikkei average.
Nintendo will face the challenge from Sony and Microsoft with a new
leadership after announcing on Friday that its charismatic president
Hiroshi Yamauchi, 74, would step down after more than half a century at
the helm.
Yamauchi, outspoken but publicity-shy and a stand-out with his purple
suits and plainspoken style, guided Nintendo's meteoric rise from a tiny
maker of card games to a videogame powerhouse.
Nintendo said it sold a combined 3.8 million GameCubes in Japan and the
United States last business year after the machine hit the market in
September and November respectively.
Sales in Europe have been going strong since the May 3 debut, Nintendo
said. The Nihon Keizai reported Nintendo would aim to ship 12 million
GamCubes globally this year.
The hand-held Game Boy Advance, Nintendo's ace product, is expected to
shine again, with the newspaper saying shipments would be 19 million units
this business year.
Nobumasa Morimoto, analyst at Tokyo-Mitsubishi Securities, said that
despite the tough fight against Sony and Microsoft, Nintendo should be
able to beef up its profits from software sales as it has built up a loyal
following of avid young game players.
"Kids never buy games that are not interesting to them; they are very
finicky consumers. Nintendo has sold millions of games under such strict
screening," he said.
Nintendo last week announced the newest version of its flagship "Mario"
game, due for release in August. The series featuring Mario, the rotund
plumber in red overalls, has sold tens of millions of copies worldwide.
The company also plans to roll out more of its popular "Zelda" games later
this year, which analysts say should help it to boost sales of the
GameCube during the crucial Christmas holiday season.
Game Press Gives Nintendo Raves for Coming Titles
Nintendo's familiar cast of characters -- Mario, Samus, Link and others --
has taken top awards from the gaming press after showing off the titles it
hopes will give it an edge in the hyper-competitive video game market this
holiday season.
Nintendo Co. Ltd. topped the best-of lists on GameSpy.com
(http://www.gamespy.com) and IGN.com (http://www.ign.com), a unit of IGN
Entertainment Inc. Both sites released their lists for the Electronic
Entertainment Expo, the industry's major trade show, on Friday.
Those honors followed Thursday's release of a top-10 list from Gamers.com
(http://www.gamers.com), the Web site for leading game magazines like
"Computer Gaming World" and "Electronic Gaming Monthly," a list also lead
by Nintendo.
IGN awarded its "Best of Show" to "Metroid Prime," a Nintendo-developed
title starring "Samus," a female warrior in a severe-looking suit of
armor. The game is the latest in a franchise that goes back to the
mid-1980s.
GameSpy took a broader view, however, giving its Best of Show award to
Nintendo's entire lineup, both its long-standing internal franchises and
independently-developed titles.
"We'd fault their lack of originality, except they continue to impress us
-- and we're not alone, judging by the hordes attacking their booth,"
GameSpy's editors said at the end of a 23-page "Best Of" special on their
site.
Gamers.com picked "The Legend of Zelda" as its No. 1, the latest title in
a franchise working toward its 20th year. The game has been the source of
controversy within the gaming community because of its use of "cel-shaded"
graphics, which some have said makes the game look like a cartoon.
Game publishers often tout such awards in their promotional materials,
although their impact on sales is unclear.
Spurred by the plethora of advanced consoles on the market, U.S. video
game hardware and software sales topped $9 billion in 2001, with an even
larger tally expected in 2002.
For three of the five gaming platforms, IGN and GameSpy agreed on the top
titles for the show.
For Sony Corp.'s PlayStation 2 (PS2), both went for "Kingdom Hearts,"
published by Square Co. Ltd. and based in part on characters from Walt
Disney Co.
For Microsoft Corp.'s Xbox, both chose one of the most talked-about games
of the show, "Blinx: The Time Sweeper," published by Microsoft and
featuring a cat who can travel in four dimensions (including time).
On the personal computer, sometimes ignored as a gaming platform, IGN and
GameSpy agreed on "DOOM III," to be published by Activision Inc. At the E3
show in Los Angeles, people waited on line for hours to see a
demonstration.
The two sites differed on their top choices for Nintendo's two platforms,
the GameCube console and the Game Boy Advance handheld platform.
IGN went with "Metroid Prime" for the GameCube and "Metroid Fusion" for
the Game Boy Advance, while GameSpy chose "Animal Crossing" for the
GameCube and "Castlevania: Harmony of Dissonance" for the handheld.
The top-10 list from Gamers.com included three titles each for the PS2 and
the GameCube, two for the Xbox, and one each for the Game Boy Advance and
the PC.
Of the PS2 titles, the site rated Sega Corp.'s "Shinobi" highest, at No. 3
overall. Of the Xbox titles, it gave the highest spot to Ubi Soft's "Tom
Clancy's Splinter Cell."
=~=~=~=
A-ONE's Headline News
The Latest in Computer Technology News
Compiled by: Dana P. Jacobson
Court Overturns Library Filtering Law
A federal court has struck down a law that would have required libraries
to block children's access to offensive Web material or lose federal
funds, handing a win to librarians and free-speech advocates.
In a ruling Friday that blasted Web filtering technology for blocking both
too much and too little on the Internet, a panel of the U.S. District
Court for the Eastern District of Pennsylvania said the Children's
Internet Protection Act (CIPA) violated the First Amendment and urged
libraries to adopt other means to protect children from inappropriate
material.
"Filtering products are currently unable to block only visual depictions
that are obscene, child pornography, or harmful to minors (or only content
matching a filtering product's category definitions) while simultaneously
allowing access to all protected speech (or all content not matching the
blocking product's category definitions)," the judges wrote. "Any software
filter that is reasonably effective in blocking access to Web pages that
fall within its category definitions will necessarily erroneously block a
substantial number of Web pages that do not fall within its category
definitions."
Congress passed the law in 2000, prompting groups such as the American
Civil Liberties Union (ACLU) and the American Library Association (ALA) to
sue to overturn it on free-speech grounds.
Friday's ruling cited multiple examples of the products' tendencies to
overblock--one of the main arguments by opponents of the bill. The court
noted that Web filters had erroneously labeled as adult or sexually
explicit sites including those of orphanages, political candidates and
churches.
"Although software filters provide a relatively cheap and effective,
albeit imperfect, means for public libraries to prevent patrons from
accessing speech that falls within the filters' category definitions, we
find that commercially available filtering programs erroneously block a
huge amount of speech that is protected by the First Amendment," the
judges wrote.
Filtering companies scrambled to defend themselves after the ruling.
David Burt, a spokesman for filter software maker N2H2, said he was
surprised by the tone of the ruling. "I thought they would come down with
something a little more moderate than that," he said.
Burt compared a filtering company's efforts with those of the antivirus
community, saying that the software companies have to rush to keep up with
the constantly changing Web.
"We're never going to be 100 percent, and it seems like the court expects
us to be 100 percent," he said.
Burt said library clients contribute to about 2 percent of the company's
revenue, and he expects that many will continue to use filters on certain
machines in spite of the ruling.
Not surprisingly, librarians praised the decision.
"We are ecstatic that libraries can continue to serve our public and give
them the information they need," said Carrie Gardner, chairwoman of the
ALA's intellectual freedom roundtable.
Gardner said the ruling won't lead to immediate changes in libraries. She
said some libraries already offer a filtering option on some machines, and
she doubts they will stop doing that.
"A lot of libraries came to the decision to filter after having a dialogue
with their communities," she said. "I don't know of anyone who's willing
to push that aside."
Friday's ruling means libraries won't have to put filters on every machine.
Although the judges noted that some young people use libraries to access
porn, they pointed out that the filters will not necessarily block out all
material inappropriate for minors.
"Those public libraries that have responded to these problems by using
software filters have found such filters to provide a relatively effective
means of preventing patrons from accessing sexually explicit material on
the Internet. Nonetheless, out of the entire universe of speech on the
Internet falling within the filtering products' category definitions, the
filters will incorrectly fail to block a substantial amount of speech,"
they wrote.
The judges suggested other methods of dealing with the problem than
relying solely on filters. These methods include letting minors use
unfiltered machines when accompanied by parents and putting terminals out
of view of most patrons so they wouldn't be offended by material on the
screen.
"While none of these less restrictive alternatives are perfect, the
government has failed to show that they are significantly less effective
than filtering software, which itself fails to block access to large
amounts of speech that fall within the categories sought to be blocked,"
the judges wrote.
When it was passed, CIPA marked the latest in a long line of attempts by
lawmakers to crack down on Web content. Courts also have overturned parts
of earlier laws--including the Communications Decency Act--saying they
violated free speech. Another law, the Child Online Protection Act, is
still moving through the courts after a challenge by the ACLU.
Any appeal to Friday's ruling would automatically go to the U.S. Supreme
Court.
Chip Cuts Pull Low PC Prices Lower
Personal computers, which any savvy shopper can pick up on the Internet for
as little a $600, are about to become cheaper still, analysts said on
Tuesday.
Intel Corp. this weekend slashed prices on microprocessors by as much as
53 percent, making it possible for PC makers to cut prices and potentially
spur demand in the doggedly weak PC market.
"Historically, that's why PC prices have dropped every year -- passing
those component prices through and hopefully maintaining gross margin as a
PC manufacturer," said Barry Jaruzelski, a managing partner in the global
technology practice at Booz Allen Hamilton in New York.
PC prices fell in 2001 amid a price war led by Dell Computer Corp. , which
used its direct business model to gain market share and maintain profits
while its competitors booked losses trying to keep up.
Demand from both corporations and consumers weakened in 2001 due to the
economic and technology spending decline and as PC buyers began replacing
computers less frequently.
As Dell cut prices, Hewlett-Packard Co. and Gateway Inc. tried to keep up,
lowering prices to try to retain market share and spur overall demand.
So far in 2002, prices have remained low, although research firm Gartner
Dataquest said prices did increase slightly in the first quarter from the
fourth quarter, when companies cut prices to jumpstart holiday sales.
But demand for PCs is off from the fourth quarter, with unit sales down in
this year's first quarter. HP said recently consumer demand dropped off as
its April quarter ended.
As a result of continued weak demand, the Intel cuts and stable pricing of
other components such as memory, lower PC prices are likely, analysts
agreed. And the first company they say will take advantage of the cuts is
Dell, which has low inventories and a direct line to its customers.
A representative of Dell, the No. 2 personal computer maker, wasn't
immediately available for comment.
"The way (Dell) benefits is that they have less inventory," said Bear
Stearns analyst Andrew Neff. For instance, he said, "If I cut the price
today, I'm going to get your business because I'm going to be going up
against somebody else at a higher price."
Competitors like Hewlett-Packard who use distributors and sell their PCs
to consumers through computer stores, have weeks of inventories of PCs
that were built with more expensive chips that they need to sell.
Intel cut the price of its second-fastest processor, the Pentium 4 running
at 2.4 gigahertz, by 29 percent to $400 from $562. It also cut its fastest
mobile chip by 45 percent to $348 from $637.
Modem Owners Get AT&T Cable Surprise
A new pricing structure from AT&T will result in modem owners paying an
extra $7 for their high-speed Internet service.
AT&T Broadband Internet will announce later Tuesday several changes to the
way it charges for its cable modems. AT&T marketing executives framed the
changes as price reductions based on the decreasing cost of hardware, but
the end result will be higher costs for roughly 162,500 AT&T customers who
own their own cable modems.
Almost all AT&T broadband customers now pay $35.95 per month for high-speed
Internet service. Those who lease modems through AT&T pay an additional $10
per month for a total of $45.95, and those who own their own modems pay no
additional fee.
Starting on June 1 in most regions, AT&T will increase the monthly service
rate to $42.95. Customers who lease their modem from AT&T will have their
lease fee reduced by $7, paying an additional $3 per month for the modem.
That will make their monthly bill come to $45.95 - the same price they paid
last month.
But bills will increase for the 10 percent of AT&T's 1.63 million
customers who own their own modems. Their monthly service fee will also go
up to $42.95, which means they're going to pay $7 per month more than they
paid last month.
Although the price restructuring will appear in customers' next statement,
modem owners won't feel the sting for six months. AT&T will include in the
next statement six coupons for $7 off monthly service, letting modem owners
off the hook for the new rates until January. New subscribers who own their
own modems will pay $42.95 per month as soon as they sign up.
Darrel Hegar, vice president of Internet services for Englewood,
Colo.-based AT&T Broadband, said the changes reflected price reductions for
cable modems. When home broadband access became popular in the late 1990s
and in 2000, cable modems cost $300 or more. But in the past two years, the
price has dropped to $100 or less, thanks in part to aggressive marketing
promotions at computer hardware stores.
Hegar also noted that AT&T's service is still priced lower than alternative
broadband service from DSL (digital subscriber line) providers, which
typically charge $50 or more per month. Although connection speeds for
cable modem users aren't as consistent as those for DSL subscribers, cable
modem users generally report faster upstream speeds.
"If you look at the price of our service, it really still reflects one of
the best values in the marketplace," Hegar said Tuesday morning. "Cable
Internet continues to be the best way to access broadband vs. DSL or
satellite. If you look at availability, speed and price, we are still a
value leader."
Based on the number of people paying an additional $7 per month, AT&T
stands to gain $1.14 million in monthly revenue from the restructuring.
But it's unclear why AT&T representatives announced the restructuring as
a break for modem leasers as opposed to a simple price hike for 10 percent
of customers.
The decision to increase prices for modem owners could be due to the fact
that owners have sunk more of their own money into the service and would be
less likely to switch to DSL or another broadband alternative, according to
Mark Kersey, broadband industry analyst for La Jolla, Calif.-based research
group ARS.
"People who own their modems are pretty much locked in to staying with
AT&T," Kersey said. "It's a way to extract a little more money out of a
small percentage of people. That's a fairly politically smart thing to do
because it doesn't affect the vast majority of customers."
The restructuring could also be an effort to make AT&T's broadband unit
more attractive to smaller rival Comcast, which in December announced its
intention to purchase the AT&T unit for about $37 billion. The combined
company, AT&T Comcast, would be the No. 1 U.S. cable TV operator with more
than 22 million subscribers. But the structure of the new company recently
came under fire, and shareholders are beginning to question whether to
approve the deal.
Despite efforts to boost revenue, AT&T cannot raise monthly broadband rates
indiscriminately. Although demand for high-speed Internet connections is
still growing, the economic slump has slowed growth somewhat and has
resulted in a growing number of broadband defectors. And the industry is
still reeling from the painful collapse of former front-runner Excite@Home.
The company's demise caused cable partners, particularly AT&T, to scramble
to migrate consumers to independent networks, causing customer service
nightmares for millions of people. Before its collapse last fall,
Excite@Home had 4.1 million customers and controlled about 45 percent of
the U.S. home-broadband market.
Customers are already grumbling that the government should regulate
broadband service and access rates, which have risen steadily in the past
year. An ARS study determined that cable broadband Internet prices rose
12 percent in 2001, from an average of $39.40 per month in January to
$44.22 per month in December. Consumer DSL prices rose 10 percent during
the same time frame from $47.18 in January to $51.67 in December.
Alleged Spammer On Hot Seat Again
The New York Attorney General's office filed a lawsuit Monday against an
alleged junk e-mailer, in the latest crackdown on unsolicited commercial
e-mail, or spam.
New York Attorney General Eliot Spitzer charged MonsterHut, a Niagara
Falls, N.Y.-based direct marketer, with sending 500 million e-mails to
people whom it falsely claimed had requested the material.
"Every day New Yorkers are being inundated with unsolicited commercial
e-mail," Spitzer said in a statement. "Some of the spam is a vehicle for
fraud; some of the spam is inherently fraudulent...This lawsuit is the
next battle in our continuing fight against online fraud and an attempt to
help consumers maintain control of their e-mail in-boxes."
MonsterHut could not be immediately reached for comment.
The suit adds to a long-running dispute between MonsterHut and PaeTec
Communications, the Internet service provider MonsterHut used to host its
Web site and shuttle e-mail to millions of recipients. Earlier this month,
a New York state appeals court granted PaeTec permission to discontinue
Internet service to MonsterHut on the grounds that it violated its
contract and PaeTec's acceptable-use policy by sending spam. The decision
reversed an injunction that earlier had prevented it from cutting service
to the direct marketer.
The charge of the New York Attorney General's office is aligned with other
government efforts to stamp out spam. Earlier this year, the Federal Trade
Commission launched a campaign to fight fraudulent e-mail. Already, that
agency has announced several spam-related busts, including thwarting
dozens of alleged Web scammers in conjunction with law enforcement from
six U.S. states and Canada.
Lawmakers are also on a fast track to pass a bill that would help deter
spam. Earlier this month, anti-spam legislation was approved and sent to
the floor by the Senate Commerce Committee with unanimous support from
Democrats and Republicans. If passed, the bill would give the FTC the
authority to impose fines up to $10 each on e-mails that violate existing
state laws against spam, with a cap of $500,000.
Spitzer's lawsuit, filed Monday in New York Supreme Court, charges
MonsterHut CEO Todd Pelow and Chief Technical Officer Gary Hartl with
fraudulently representing the company's marketing service. The suit
attacks claims that the company obtains permission from consumers before
it sends e-mail to their addresses, a practice known as "opt-in."
According to the complaint, the company's e-mail lists are only partially
opt-in and include many unwitting recipients.
The suit seeks a court order preventing MonsterHut from sending
unsolicited e-mail through other ISPs based in New York. It also aims to
enjoin MonsterHut from falsely representing its business and to require
the company to disclose how it obtained all of its consumers' e-mail
addresses. In addition, the suit asks that MonsterHut's Pelow and Hartl
pay civil penalties and court costs for its violations of New York's
consumer protection laws.
Aussie Spammer Sues Anti-spammer
An alleged Australian spammer is suing an anti-spam advocate after being
blacklisted by a spam prevention Web site, in what is believed to be a
first of its kind case worldwide and one that could end up bigger than
Ben Hur, according to a source close to the proceedings.
Perth-based T3 Direct is seeking compensation of $24,708 (AU$43,750) from
Joseph McNichol, whom it alleges caused the company to be blacklisted on
the spews.org Web site.
Blacklisted sites distribute lists of Internet Protocol (IP) addresses
online that are believed to be involved in spamming activities, enabling
end users to block traffic from such IP addresses.
Because other blacklisted sites have been sued and shut down, SPEWS - Spam
Prevention Early Warning System - operates in secret, with no listed
contact details. It is a not-for-profit organization.
A writ of summons was filed against McNichol on May 24, upon receipt of
which he was given 10 days to confirm his awareness of the charges.
"It's only the second spam-related lawsuit in Australia and the first of
its kind worldwide," said Troy Rollo of the Coalition against Unsolicited
Bulk E-mail. "It's the first time someone has gone and sued someone else
just for saying they are a spammer."
T3 is seeking loss and damages of $7,907 (AU$14,000) for replacing blocked
or compromised IP numbers, $2,683 (AU$4,750) for labor costs of
technicians to establish an alternative e-mail system, $2,824 (AU$5,000)
to purchase a new server computer and $11,296 (AU$20,000) for loss of
income it claims to have incurred over a 20-day waiting period for a new
Internet connection to be installed.
Rollo, who claims some of the damages being sought by T3 Direct are
-clearly not justified based on the pleadings of the case,- is in the
midst of establishing a Web site for the case from which a legal defense
fund will be set up for McNichol.
Jeremy Malcolm, an independent Perth-based solicitor who specializes in IT
law and is representing McNichol, said he wouldn't be putting in a defense
straight away and would be applying for a summary judgment in the hopes of
not having to go to trial.
Malcolm described the statement of claim against his client as a "fairly
weak claim" brought about to intimidate a critic of T3 Direct.
"We will defend it as strongly as we can."-
Mark Reynolds, president of Western Australia Internet Association,
claimed it had received many complaints about T3 Direct over the years.
In response to many, many complaints this year about spam, Reynolds said
the Association is working on a policy derived in consultation with its
members that will enable it to recommend to its members - 60 ISPs in
WA - what they should do in regards to spam. As the WA Internet Association
owns and operates WA-based exchanges which most ISPs exchange information
on for a low cost, Reynolds said the ultimate aim was to enforce its
spam policies for users of that network and if ISPs chose to ignore the
Association's policy deny them use of the network.
Reynolds also said it was the first case of its kind he had heard of.
"It's the first time a known spam organization is suing an end user who
made public complaints about receiving spam." Reynolds added that as
overseas anti-spam organizations had already got wind of the proceeding,
it could end up bigger than Ben Hur.
Nichols aired his view about T3 Direct's activities on his Web site,
www.vtgts.com.
T3 Direct's legal representatives, Perth-based Tan and Tan Solicitors, did
not return ZDNet Australia's calls by press time.
FBI: Cybercrime Is Now A 'Top 10 Priority'
The director of the FBI announced Wednesday that a major reorganization of
the agency would include a new focus on cybercrime and technology.
Protecting the United States against "cyber-based attacks and
high-technology crimes" is one of the FBI's top 10 priorities, Director
Robert Mueller said at a news conference detailing a major reorganization
of the agency.
Preventing high-tech crime "is a protection of our infrastructure," he
said. Cyberterrorism and cybercrime can happen anywhere, and "you need the
overarching responsibility in an agency such as the FBI."
The cybercrime focus is part of a major reorganization that will also add
new agents and put more resources toward preventing terrorism.
The FBI recently announced a new "Cyber Division" to coordinate the
agency's technology-related efforts. The division is being charged with
supervising investigations of federal violations where the Internet,
computer systems and networks "are exploited as the principal instruments
or targets of criminal activity," the FBI has said.
Larry Mefford, who had served as associate special agent in charge of the
San Francisco Field Office, was named assistant director of the Cyber
Division.
The reorganization comes as news that a glitch in the FBI's e-mail wiretap
system could have hindered investigations into terrorist threats.
Mueller also said Wednesday that upgrading technology to support the FBI
was a top priority.
"Upgrading our technology means not just getting our computers on board
and our hard drives, but everybody from the top to the bottom getting
facile with the technology," he said. The FBI has been "years behind where
it should be."
Study Looks At Online Piracy
More than one third of all American Internet users have downloaded
commercial software online, yet have failed to pay for all the copies they
have made, according to a survey released by the Business Software Alliance
(BSA), an organization of which Apple is a member.
The Business Software Alliance is dedicated "to promoting a safe and legal
online world." Besides Apple, members include Adobe, Autodesk, Bentley
Systems, Borland, CNC Software/Mastercam, Macromedia, Microsoft, Symantec
and Unigraphics Solutions.
The BSA survey of 1,026 Internet users found that nearly half have
downloaded commercial software at some time, and that 81 percent of them
haven't paid for all the copies they made. In fact, 57 percent of those
who have downloaded software either seldom or never pay for the copyrighted
works they download, according to the study conducted by Ipsos Public
Affairs. Twelve percent say they have committed software piracy.
The survey was conducted among a national cross-section of U.S. households
in the Ipsos Internet panel, which is a nationally representative panel of
30,000 households across the United States. The margin of error is plus or
minus 3.1 percent.
"This is the first time we've identified end user attitudes about online
theft," Robert Holleyman, president and CEO of BSA, said in announcing the
survey results. "And what we found is a disturbing behavioral trend that
violates copyright laws and costs billions of dollars and hundreds of
thousands of jobs every year."
Though many may not realize they're breaking the law, it's clear that a
large number of Internet users who download software make "situational"
decisions about whether to pay for it or not, he said. When asked if they
would consider downloading a commercial software program to save money --
even if it might be an unlicensed or pirated version -- almost half of them
say it would depend on the circumstances.
Interestingly, the survey also showed that 95 percent of Internet users
surveyed think software creators should be paid for their work. And
85 percent believe strong intellectual property protections are crucial for
protecting the revenues companies depend on to fund research and
development.
Still, Holleyman said the "alarming degree" of online consumer piracy
points to the need for enhanced education and enforcement programs aimed at
maintaining a safe and legal online world for both consumers and software
creators. For this reason, BSA has deployed new tools such as MediaForce's
automated solution, which crawls the Web to detect infringing copies of
BSA, said Bob Kruger, BSA vice president of enforcement.
The organization recently began using MediaForce's MediaSentry system to
patrol the Internet for unauthorized copies of software programs on
peer-to-peer systems, Internet Relay Chat (IRC) channels, Web sites, File
Transfer Protocol (FTP) sites and newsgroups. In the three months since
MediaSentry has been incorporated in BSA's enforcement program, more than
8,500 notices have been sent to software infringers' Internet service
providers (ISPs). That's 5,200 more notices than BSA sent in all of 2001.
What's more, BSA has formally introduced the MediaSentry investigation
system, which lets the organization expand and manage its investigative
efforts more effectively by automating a large portion of its notification
and compliance program, Kruger said. The system enhances BSA's online
investigations by "crawling" the Internet for infringing copies of BSA
member software programs and providing BSA investigators with a
comprehensive system for acting upon the results, he explained.
Kruger said that several factors contribute to the pervasiveness of
software piracy online, including the growing number of Internet users,
increases in bandwidth and transmission speed, the popularity of Internet
auction sites, and the heightened sense of anonymity when consumers commit
piracy at home. While people may understand that software developers
depend on licensing fees to create their works, "they don't appreciate how
their own conduct undermines this creativity," he added.
"We need to explain how their actions contribute to lost jobs and lost
investment in new and innovative products," Kruger said. "A big part of
stopping piracy is correcting the misconceptions."
BSA is boosting its education efforts aimed to enlighten users about
software ethics and compliance, he said. The organization recently
partnered with Weekly Reader to create an educational curriculum about
piracy and safe software use for U.S. and Canadian elementary and middle
school classrooms. Last year, BSA was also awarded a federal grant to raise
public awareness about cyber crime, with particular emphasis on school-age
children.
Whose Laws Rule On the Wild Wild Web?
Former Yahoo CEO Tim Koogle could find himself cuffed if he sets foot on
French soil. His alleged crime: Allowing the posting of Nazi collectibles
on Yahoo's U.S.-based site--an action Holocaust survivors say violates
France's war crimes laws.
In another case, Russian software programmer Dmitry Sklyarov was jailed
after entering the United States last year. The charges related to
providing software that could be used to crack e-books, an action that is
not a crime in his homeland but that violates U.S. copyright law, federal
authorities say.
These are only two examples of companies and executives that do business
online and are being dragged into foreign courts for selling products or
posting materials that are legal in their own countries but that offend
the sensibilities or violate the laws of another land. Such challenges
increasingly include criminal charges.
"That is the scariest prospect for people who are either posting or doing
business on the Internet," said Mike Godwin, a policy fellow at the Center
for Democracy and Technology. "If you operate a Web site that's accessible
in France or even if you're an (Internet service provider) who provides
services in France, you might find yourself touching down at the airport
there and being served."
Disagreements over how to apply local laws to the Internet have simmered
for years but are now reaching full boil. A French court this month set a
January 2003 trial date in the case against Yahoo and Koogle. The United
States, meanwhile, will take on Sklyarov's employer, ElcomSoft, in a trial
scheduled to begin Aug. 26. Charges against Sklyarov were dropped in
exchange for his testimony in the pending suit against his employer.
Both cases underscore burgeoning rifts in efforts to craft international
agreements in key areas of law enforcement.
Several nations are trying to sort out cross-border Net issues with
treaties, but it's been a divisive battle. So far, copyright is one of the
few areas where nations have reached some consensus, such as through a
World Intellectual Property Organization (WIPO) copyright agreement
ratified in 1996.
The United States used the WIPO agreement to lay the groundwork for the
Digital Millennium Copyright Act, the law U.S. prosecutors used to charge
Russia-based ElcomSoft. The United States and 34 other countries signed the
WIPO treaty, which went into effect this March. Several states in the
former Soviet Union have signed on; Russia has not.
Treaties that would govern other areas are even more contentious, partly
because of conflicts over cultural issues such as privacy and free speech.
For example, Europe has strict rules about consumer privacy and the
posting of material that could be considered racist, meaning sites based
in the United States and elsewhere risk crossing the line by posting
certain content, even if it's legal in their home countries.
Members of the Council of Europe have spent years hammering out a
cybercrime treaty, which is still awaiting approval by member nations.
Critics of the plan argue that it may, among other things, prevent the use
of any tool that could be used for hacking or severely restrict speech.
On Friday, members of a Council of Europe committee signed off on a
provision that would make it a crime to distribute racist or xenophobic
material via computer systems, a move legal experts say could lead to more
cases like Yahoo's.
"What you're likely to see is more and more countries around the world
adopting hate-speech laws and enforcing them," said Jonathan Band, an
attorney with Morrison Forrester who has advised the United States on the
treaty. "That could really create a big problem for the Internet."
Meanwhile, the United States and several other nations around the world
are still working out details of a Hague Convention treaty that would
require nations to enforce each other's laws on a variety of topics, a
plan critics say could stifle speech and commerce on the Web.
So far, the lack of sound international cyberlaws has hampered at least
one major criminal case. Prosecutors dropped charges against the student
who allegedly released the mischievous I Love You virus, which wreaked
havoc by multiplying and distributing itself across millions of computers
around the globe. The student lived in the Philippines, which at the time
had no specific laws preventing the action.
Certainly, conflicts over jurisdiction have been around for centuries, but
the Internet introduces a new set of questions about how to apply
cross-border laws. In the physical world, the ground rules are relatively
well established, bolstered by years of international treaties, case law
and agreements between specific nations that dictate how such laws are
applied and enforced.
For example, a person hawking girlie calendars in a conservative Muslim
land is clearly violating the laws there, as is someone who knowingly
ships wine to a dry county. Generally, laws governing such issues have
considered whether the seller was actively trying to promote products to a
population that's banned from buying them.
But the Web changes the dynamics. When you put up a Web site, virtually
anyone can stop by and shop. And often, sites aren't selling items but are
merely posting speech that some might find objectionable.
Without treaties or consistent case law, the question remains: What
constitutes doing business on the Web?
Is putting up a Web site enough to warrant prosecution? Or must you target
it to specific populations? What about disclaimers? Is it a deterrent to
plaster a warning across your site saying "these pages are for U.S.
residents only"?
So far, such questions have for the most part gone unanswered. But the
legal tangle will surely be unraveled as conflicting laws governing issues
such as gambling, obscenity and copyright clash on the borderless Web.
Perhaps no case highlights the confusing thicket of jurisdictional issues
on the Web more than the Yahoo imbroglio. The saga began two years ago
when two French human rights groups sued Yahoo, arguing that the posting
of historical Nazi items on the company's U.S.-based site violated French
law prohibiting the display of racist material. A French judge sided with
the groups, ordering Yahoo to block French citizens from accessing the
site or face steep fines. However, Yahoo turned to the U.S. courts and
asked a judge to declare the French law unenforceable here. He did.
Now, the company is facing another set of charges that it, along with
former CEO Koogle, violated the country's war crime laws by displaying the
items. In perhaps the most curious aspect of the case, the American Yahoo
site at issue had no physical presence in France.
That's in contrast to ElcomSoft, whose employees traveled to the United
States, and which allegedly was offering the disputed software via some
U.S.-based servers.
Yahoo has pulled the disputed items from its site and says it will no
longer allow such postings. Furthermore, the company has a host of local
sites tailored to many countries--including France--that obey the laws of
each land and have never allowed posting of items illegal in those
countries.
The case is scheduled to go to trial early next year. Koogle could face
jail time as a result of the charges. He did not return calls seeking
comment.
Some fear jurisdictional disputes could set off a firestorm of
recrimination, where prosecution of a foreign company in one country
prompts retaliatory laws in another, escalating isolated scuffles into
all-out war.
"If we do it with the DMCA, another country is going to do it with another
law," said Joseph Burton, an attorney with Duane Morris who's representing
ElcomSoft. "It's a pretty horrible situation."
Meanwhile, some countries seem to want to have it both ways. Take the
United States, for example. Courts and law enforcement here have
repeatedly reached across borders and clamped down on foreign companies
accused of violating U.S. copyright law on the Web.
In addition to U.S. prosecutors filing criminal charges against ElcomSoft,
a U.S. judge ordered Canadian company iCraveTV.com to shutter its site
after American broadcasters complained it was stealing their copyrighted
works. An Italian Web site had to block U.S. citizens' access to its site
on orders from a U.S. court.
However, when the shoe is on the other foot, U.S. courts have sometimes
said foreign laws do not apply here, such as when a U.S. judge decided
that the French ruling ordering Yahoo to block French citizens' access to
its site is not enforceable in America.
"There is a certain hypocrisy," said Doug Isenberg, an Atlanta-based
Internet lawyer who publishes the GigaLaw.com site and is not involved in
the cases. "I don't know that you can ultimately have it both ways."
Many of those who track such jurisdictional issues think the problems
prompted by the borderless Web eventually could be resolved by treaty, but
how such a pact will look is anyone's guess, given the conundrums already
posed by the Hague and the Council of Europe's cybercrime treaty.
Some have argued that the Web should be regulated as an international
resource.
"Indeed, the places most analogous to the Internet, in a jurisdictional
sense, are outer space and the international waters," ElcomSoft attorneys
wrote in one of their briefs.
While parties on both sides of such cases wage debates over whose laws
apply, there is one thing they can agree on: The confusing snarls over
jurisdiction will continue for years. Indeed, most of the cases so far
have involved the United States, France and Canada, regions hardly known
for restrictive laws governing speech and commerce.
What happens when countries with harsher laws--such as those governed by
dictators or strict religious rules--weigh in with judgments of their own
and reach across borders to try to enforce them?
"These things are going to continue around the world because, as near and
dear as the First Amendment is to us, other countries have different
histories and different cultural sensitivities," said Richard Jones, an
attorney with Coudert Brothers representing French human rights groups
that have sued Yahoo over the Nazi paraphernalia.
Organizations including the American Civil Liberties Union wrote in their
brief supporting Yahoo: "The French court's order is but one example of the
sort of judgment that this and other American courts can expect to see with
increasing frequency as Internet use expands throughout the world."
=~=~=~=
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