Protected: American courts and government and the f-word
Protected: American courts and government and the f-word Read More »
law
Richard Stallman on why “intellectual property” is a misnomer
From Richard Stallman’s “Transcript of Richard Stallman at the 4th international GPLv3 conference; 23rd August 2006” (FSF Europe: 23 August 2006):
Anyway, the term “intellectual property” is a propaganda term which should never be used, because merely using it, no matter what you say about it, presumes it makes sense. It doesn’t really make sense, because it lumps together several different laws that are more different than similar.
For instance, copyright law and patent law have a little bit in common, but all the details are different and their social effects are different. To try to treat them as they were one thing, is already an error.
To even talk about anything that includes copyright and patent law, means you’re already mistaken. That term systematically leads people into mistakes. But, copyright law and patent law are not the only ones it includes. It also includes trademark law, for instance, which has nothing in common with copyright or patent law. So anyone talking about “quote intellectual property unquote”, is always talking about all of those and many others as well and making nonsensical statements.
So, when you say that you especially object to it when it’s used for Free Software, you’re suggesting it might be a little more legitimate when talking about proprietary software. Yes, software can be copyrighted. And yes, in some countries techniques can be patented. And certainly there can be trademark names for programs, which I think is fine. There’s no problem there. But these are three completely different things, and any attempt to mix them up – any practice which encourages people to lump them together is a terribly harmful practice. We have to totally reject the term “quote intellectual property unquote”. I will not let any excuse convince me to accept the meaningfulness of that term.
When people say “well, what would you call it?”, the answer is that I deny there is an “it” there. There are three, and many more, laws there, and I talk about these laws by their names, and I don’t mix them up.
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Debt collection business opens up huge security holes
From Mark Gibbs’ “Debt collectors mining your secrets” (Network World: 19 June 2008):
[Bud Hibbs, a consumer advocate] told me any debt collection company has access to an incredible amount of personal data from hundreds of possible sources and the motivation to mine it.
What intrigued me after talking with Hibbs was how the debt collection business works. It turns out pretty much anyone can set up a collections operation by buying a package of bad debts for around $40,000, hiring collectors who will work on commission, and applying for the appropriate city and state licenses. Once a company is set up it can buy access to Axciom and Experian and other databases and start hunting down defaulters.
So, here we have an entire industry dedicated to buying, selling and mining your personal data that has been derived from who knows where. Even better, because the large credit reporting companies use a lot of outsourcing for data entry, much of this data has probably been processed in India or Pakistan where, of course, the data security and integrity are guaranteed.
Hibbs points out that, with no prohibitions on sending data abroad and with the likes of, say, the Russian mafia being interested in the personal information, the probability of identity theft from these foreign data centers is enormous.
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More problems with voting, election 2008
From Ian Urbina’s “High Turnout May Add to Problems at Polling Places” (The New York Times: 3 November 2008):
Two-thirds of voters will mark their choice with a pencil on a paper ballot that is counted by an optical scanning machine, a method considered far more reliable and verifiable than touch screens. But paper ballots bring their own potential problems, voting experts say.
The scanners can break down, leading to delays and confusion for poll workers and voters. And the paper ballots of about a third of all voters will be counted not at the polling place but later at a central county location. That means that if a voter has made an error — not filling in an oval properly, for example, a mistake often made by the kind of novice voters who will be flocking to the polls — it will not be caught until it is too late. As a result, those ballots will be disqualified.
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About a fourth of voters will still use electronic machines that offer no paper record to verify that their choice was accurately recorded, even though these machines are vulnerable to hacking and crashes that drop votes. The machines will be used by most voters in Indiana, Kentucky, Pennsylvania, Tennessee, Texas and Virginia. Eight other states, including Georgia, Maryland, New Jersey and South Carolina, will use touch-screen machines with no paper trails.
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Florida has switched to its third ballot system in the past three election cycles, and glitches associated with the transition have caused confusion at early voting sites, election officials said. The state went back to using scanned paper ballots this year after touch-screen machines in Sarasota County failed to record any choice for 18,000 voters in a fiercely contested House race in 2006.
Voters in Colorado, Tennessee, Texas and West Virginia have reported using touch-screen machines that at least initially registered their choice for the wrong candidate or party.
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Most states have passed laws requiring paper records of every vote cast, which experts consider an important safeguard. But most of them do not have strong audit laws to ensure that machine totals are vigilantly checked against the paper records.
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In Ohio, Secretary of State Jennifer Brunner sued the maker of the touch-screen equipment used in half of her state’s 88 counties after an investigation showed that the machines “dropped” votes in recent elections when memory cards were uploaded to computer servers.
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A report released last month by several voting rights groups found that eight of the states using touch-screen machines, including Colorado and Virginia, had no guidance or requirement to stock emergency paper ballots at the polls if the machines broke down.
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Matthew, the blind phone phreaker
From Kevin Poulsen’s “Teenage Hacker Is Blind, Brash and in the Crosshairs of the FBI” (Wired: 29 February 2008):
At 4 in the morning of May 1, 2005, deputies from the El Paso County Sheriff’s Office converged on the suburban Colorado Springs home of Richard Gasper, a TSA screener at the local Colorado Springs Municipal Airport. They were expecting to find a desperate, suicidal gunman holding Gasper and his daughter hostage.
“I will shoot,” the gravely voice had warned, in a phone call to police minutes earlier. “I’m not afraid. I will shoot, and then I will kill myself, because I don’t care.”
But instead of a gunman, it was Gasper himself who stepped into the glare of police floodlights. Deputies ordered Gasper’s hands up and held him for 90 minutes while searching the house. They found no armed intruder, no hostages bound in duct tape. Just Gasper’s 18-year-old daughter and his baffled parents.
A federal Joint Terrorism Task Force would later conclude that Gasper had been the victim of a new type of nasty hoax, called “swatting,” that was spreading across the United States. Pranksters were phoning police with fake murders and hostage crises, spoofing their caller IDs so the calls appear to be coming from inside the target’s home. The result: police SWAT teams rolling to the scene, sometimes bursting into homes, guns drawn.
Now the FBI thinks it has identified the culprit in the Colorado swatting as a 17-year-old East Boston phone phreak known as “Li’l Hacker.” Because he’s underage, Wired.com is not reporting Li’l Hacker’s last name. His first name is Matthew, and he poses a unique challenge to the federal justice system, because he is blind from birth.
…
Interviews by Wired.com with Matt and his associates, and a review of court documents, FBI reports and audio recordings, paints a picture of a young man with an uncanny talent for quick telephone con jobs. Able to commit vast amounts of information to memory instantly, Matt has mastered the intricacies of telephone switching systems, while developing an innate understanding of human psychology and organization culture — knowledge that he uses to manipulate his patsies and torment his foes.
…
Matt says he ordered phone company switch manuals off the internet and paid to have them translated into Braille. He became a regular caller to internal telephone company lines, where he’d masquerade as an employee to perform tricks like tracing telephone calls, getting free phone features, obtaining confidential customer information and disconnecting his rivals’ phones.
It was, relatively speaking, mild stuff. The teen though, soon fell in with a bad crowd. The party lines were dominated by a gang of half-a-dozen miscreants who informally called themselves the “Wrecking Crew” and “The Cavalry.”
…By then, Matt’s reputation had taken on a life of its own, and tales of some of his hacks — perhaps apocryphal — are now legends. According to Daniels, he hacked his school’s PBX so that every phone would ring at once. Another time, he took control of a hotel elevator, sending it up and down over and over again. One story has it that Matt phoned a telephone company frame room worker at home in the middle of the night, and persuaded him to get out of bed and return to work to disconnect someone’s phone.
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A botnet with a contingency plan
From Gregg Keizer’s “Massive botnet returns from the dead, starts spamming” (Computerworld: 26 November 2008):
A big spam-spewing botnet shut down two weeks ago has been resurrected, security researchers said today, and is again under the control of criminals.
The “Srizbi” botnet returned from the dead late Tuesday, said Fengmin Gong, chief security content officer at FireEye Inc., when the infected PCs were able to successfully reconnect with new command-and-control servers, which are now based in Estonia.
Srizbi was knocked out more than two weeks ago when McColo Corp., a hosting company that had been accused of harboring a wide range of criminal activities, was yanked off the Internet by its upstream service providers. With McColo down, PCs infected with Srizbi and other bot Trojan horses were unable to communicate with their command servers, which had been hosted by McColo. As a result, spam levels dropped precipitously.
But as other researchers noted last week, Srizbi had a fallback strategy. In the end, that strategy paid off for the criminals who control the botnet.
According to Gong, when Srizbi bots were unable to connect with the command-and-control servers hosted by McColo, they tried to connect with new servers via domains that were generated on the fly by an internal algorithm. FireEye reverse-engineered Srizbi, rooted out that algorithm and used it to predict, then preemptively register, several hundred of the possible routing domains.
The domain names, said Gong, were generated on a three-day cycle, and for a while, FireEye was able to keep up — and effectively block Srizbi’s handlers from regaining control.
“We have registered a couple hundred domains,” Gong said, “but we made the decision that we cannot afford to spend so much money to keep registering so many [domain] names.”
Once FireEye stopped preempting Srizbi’s makers, the latter swooped in and registered the five domains in the next cycle. Those domains, in turn, pointed Srizbi bots to the new command-and-control servers, which then immediately updated the infected machines to a new version of the malware.
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The NSA and threats to privacy
From James Bamford’s “Big Brother Is Listening” (The Atlantic: April 2006):
This legislation, the 1978 Foreign Intelligence Surveillance Act, established the FISA court—made up of eleven judges handpicked by the chief justice of the United States—as a secret part of the federal judiciary. The court’s job is to decide whether to grant warrants requested by the NSA or the FBI to monitor communications of American citizens and legal residents. The law allows the government up to three days after it starts eavesdropping to ask for a warrant; every violation of FISA carries a penalty of up to five years in prison. Between May 18, 1979, when the court opened for business, until the end of 2004, it granted 18,742 NSA and FBI applications; it turned down only four outright.
Such facts worry Jonathan Turley, a George Washington University law professor who worked for the NSA as an intern while in law school in the 1980s. The FISA “courtroom,” hidden away on the top floor of the Justice Department building (because even its location is supposed to be secret), is actually a heavily protected, windowless, bug-proof installation known as a Sensitive Compartmented Information Facility, or SCIF.
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It is true that the court has been getting tougher. From 1979 through 2000, it modified only two out of 13,087 warrant requests. But from the start of the Bush administration, in 2001, the number of modifications increased to 179 out of 5,645 requests. Most of those—173—involved what the court terms “substantive modifications.”
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Contrary to popular perception, the NSA does not engage in “wiretapping”; it collects signals intelligence, or “sigint.” In contrast to the image we have from movies and television of an FBI agent placing a listening device on a target’s phone line, the NSA intercepts entire streams of electronic communications containing millions of telephone calls and e-mails. It runs the intercepts through very powerful computers that screen them for particular names, telephone numbers, Internet addresses, and trigger words or phrases. Any communications containing flagged information are forwarded by the computer for further analysis.
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Names and information on the watch lists are shared with the FBI, the CIA, the Department of Homeland Security, and foreign intelligence services. Once a person’s name is in the files, even if nothing incriminating ever turns up, it will likely remain there forever. There is no way to request removal, because there is no way to confirm that a name is on the list.
In December of 1997, in a small factory outside the southern French city of Toulouse, a salesman got caught in the NSA’s electronic web. Agents working for the NSA’s British partner, the Government Communications Headquarters, learned of a letter of credit, valued at more than $1.1 million, issued by Iran’s defense ministry to the French company Microturbo. According to NSA documents, both the NSA and the GCHQ concluded that Iran was attempting to secretly buy from Microturbo an engine for the embargoed C-802 anti-ship missile. Faxes zapping back and forth between Toulouse and Tehran were intercepted by the GCHQ, which sent them on not just to the NSA but also to the Canadian and Australian sigint agencies, as well as to Britain’s MI6. The NSA then sent the reports on the salesman making the Iranian deal to a number of CIA stations around the world, including those in Paris and Bonn, and to the U.S. Commerce Department and the Customs Service. Probably several hundred people in at least four countries were reading the company’s communications.
…
Such events are central to the current debate involving the potential harm caused by the NSA’s warrantless domestic eavesdropping operation. Even though the salesman did nothing wrong, his name made its way into the computers and onto the watch lists of intelligence, customs, and other secret and law-enforcement organizations around the world. Maybe nothing will come of it. Maybe the next time he tries to enter the United States or Britain he will be denied, without explanation. Maybe he will be arrested. As the domestic eavesdropping program continues to grow, such uncertainties may plague innocent Americans whose names are being run through the supercomputers even though the NSA has not met the established legal standard for a search warrant. It is only when such citizens are turned down while applying for a job with the federal government—or refused when seeking a Small Business Administration loan, or turned back by British customs agents when flying to London on vacation, or even placed on a “no-fly” list—that they will realize that something is very wrong. But they will never learn why.
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General Michael Hayden, director of the NSA from 1999 to 2005 and now principal deputy director of national intelligence, noted in 2002 that during the 1990s, e-communications “surpassed traditional communications. That is the same decade when mobile cell phones increased from 16 million to 741 million—an increase of nearly 50 times. That is the same decade when Internet users went from about 4 million to 361 million—an increase of over 90 times. Half as many land lines were laid in the last six years of the 1990s as in the whole previous history of the world. In that same decade of the 1990s, international telephone traffic went from 38 billion minutes to over 100 billion. This year, the world’s population will spend over 180 billion minutes on the phone in international calls alone.”
Intercepting communications carried by satellite is fairly simple for the NSA. The key conduits are the thirty Intelsat satellites that ring the Earth, 22,300 miles above the equator. Many communications from Europe, Africa, and the Middle East to the eastern half of the United States, for example, are first uplinked to an Intelsat satellite and then downlinked to AT&T’s ground station in Etam, West Virginia. From there, phone calls, e-mails, and other communications travel on to various parts of the country. To listen in on that rich stream of information, the NSA built a listening post fifty miles away, near Sugar Grove, West Virginia. Consisting of a group of very large parabolic dishes, hidden in a heavily forested valley and surrounded by tall hills, the post can easily intercept the millions of calls and messages flowing every hour into the Etam station. On the West Coast, high on the edge of a bluff overlooking the Okanogan River, near Brewster, Washington, is the major commercial downlink for communications to and from Asia and the Pacific. Consisting of forty parabolic dishes, it is reportedly the largest satellite antenna farm in the Western Hemisphere. A hundred miles to the south, collecting every whisper, is the NSA’s western listening post, hidden away on a 324,000-acre Army base in Yakima, Washington. The NSA posts collect the international traffic beamed down from the Intelsat satellites over the Atlantic and Pacific. But each also has a number of dishes that appear to be directed at domestic telecommunications satellites.
Until recently, most international telecommunications flowing into and out of the United States traveled by satellite. But faster, more reliable undersea fiber-optic cables have taken the lead, and the NSA has adapted. The agency taps into the cables that don’t reach our shores by using specially designed submarines, such as the USS Jimmy Carter, to attach a complex “bug” to the cable itself. This is difficult, however, and undersea taps are short-lived because the batteries last only a limited time. The fiber-optic transmission cables that enter the United States from Europe and Asia can be tapped more easily at the landing stations where they come ashore. With the acquiescence of the telecommunications companies, it is possible for the NSA to attach monitoring equipment inside the landing station and then run a buried encrypted fiber-optic “backhaul” line to NSA headquarters at Fort Meade, Maryland, where the river of data can be analyzed by supercomputers in near real time.
Tapping into the fiber-optic network that carries the nation’s Internet communications is even easier, as much of the information transits through just a few “switches” (similar to the satellite downlinks). Among the busiest are MAE East (Metropolitan Area Ethernet), in Vienna, Virginia, and MAE West, in San Jose, California, both owned by Verizon. By accessing the switch, the NSA can see who’s e-mailing with whom over the Internet cables and can copy entire messages. Last September, the Federal Communications Commission further opened the door for the agency. The 1994 Communications Assistance for Law Enforcement Act required telephone companies to rewire their networks to provide the government with secret access. The FCC has now extended the act to cover “any type of broadband Internet access service” and the new Internet phone services—and ordered company officials never to discuss any aspect of the program.
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The National Security Agency was born in absolute secrecy. Unlike the CIA, which was created publicly by a congressional act, the NSA was brought to life by a top-secret memorandum signed by President Truman in 1952, consolidating the country’s various military sigint operations into a single agency. Even its name was secret, and only a few members of Congress were informed of its existence—and they received no information about some of its most important activities. Such secrecy has lent itself to abuse.
During the Vietnam War, for instance, the agency was heavily involved in spying on the domestic opposition to the government. Many of the Americans on the watch lists of that era were there solely for having protested against the war. … Even so much as writing about the NSA could land a person a place on a watch list.
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For instance, during World War I, the government read and censored thousands of telegrams—the e-mail of the day—sent hourly by telegraph companies. Though the end of the war brought with it a reversion to the Radio Act of 1912, which guaranteed the secrecy of communications, the State and War Departments nevertheless joined together in May of 1919 to create America’s first civilian eavesdropping and code-breaking agency, nicknamed the Black Chamber. By arrangement, messengers visited the telegraph companies each morning and took bundles of hard-copy telegrams to the agency’s offices across town. These copies were returned before the close of business that day.
A similar tale followed the end of World War II. In August of 1945, President Truman ordered an end to censorship. That left the Signal Security Agency (the military successor to the Black Chamber, which was shut down in 1929) without its raw intelligence—the telegrams provided by the telegraph companies. The director of the SSA sought access to cable traffic through a secret arrangement with the heads of the three major telegraph companies. The companies agreed to turn all telegrams over to the SSA, under a plan code-named Operation Shamrock. It ran until the government’s domestic spying programs were publicly revealed, in the mid-1970s.
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Frank Church, the Idaho Democrat who led the first probe into the National Security Agency, warned in 1975 that the agency’s capabilities
“could be turned around on the American people, and no American would have any privacy left, such [is] the capability to monitor everything: telephone conversations, telegrams, it doesn’t matter. There would be no place to hide. If this government ever became a tyranny, if a dictator ever took charge in this country, the technological capacity that the intelligence community has given the government could enable it to impose total tyranny, and there would be no way to fight back, because the most careful effort to combine together in resistance to the government, no matter how privately it is done, is within the reach of the government to know. Such is the capacity of this technology.”
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George Clinton and the sample troll
From Tim Wu’s “On Copyright’s Authorship Policy” (Internet Archive: 2007):
On May 4, 2001, a one-man corporation named Bridgeport Music, Inc. launched over 500 counts of copyright infringement against more than 800 different artists and labels.1 Bridgeport Music has no employees, and other than copyrights, no reported assets.2 Technically, Bridgeport is a “catalogue company.” Others call it a “sample troll.”
Bridgeport is the owner of valuable copyrights, including many of funk singer George Clinton’s most famous songs – songs which are sampled in a good amount of rap music.3 Bridgeport located every sample of Clinton’s and other copyrights it owned, and sued based on the legal position that any sampling of a sound recording, no matter how minimal or unnoticeable, is still an infringement.
During the course of Bridgeport’s campaign, it has won two important victories. First, the Sixth Circuit, the appellate court for Nashville adopted Bridgeport’s theory of infringement. In Bridgeport Music, Inc. v. Dimension Films,4 the defendants sampled a single chord from the George Clinton tune “Get Off Your Ass and Jam,” changed the pitch, and looped the sound. Despite the plausible defense that one note is but a de minimus use of the work, the Sixth Circuit ruled for Bridgeport and created a stark rule: any sampling, no matter how minimal or undetectable, is a copyright infringement. Said the court in Bridgeport, “Get a license or do not sample. We do not see this as stifling creativity in any significant way.”5 In 2006 Bridgeport convinced a district court to enjoin the sales of the bestselling Notorious B.I.G. album, Ready to Die, for “illegal sampling.”6 A jury then awarded Bridgeport more than four million dollars in damages.7
The Bridgeport cases have been heavily criticized, and taken as a prime example of copyright’s excesses.8 Yet the deeper problem with the Bridgeport litigation is not necessarily a problem of too much copyright. It can be equally concluded that the ownership of the relevant rights is the root of the problem. George Clinton, the actual composer and recording artist, takes a much different approach to sampling. “When hip-hop came out,” said Clinton in an interview with journalist Rick Karr, “I was glad to hear it, especially when it was our songs – it was a way to get back on the radio.”9 Clinton accepts sampling of his work, and has released a three CD collection of his sounds for just that purpose.10 The problem is that he doesn’t own many of his most important copyrights. Instead, it is Bridgeport, the one-man company, that owns the rights to Clinton’s work. In the 1970s Bridgeport, through its owner Armen Boladian, managed to seize most of George Clinton’s copyrights and many other valuable rights. In at least a few cases, Boladian assigned the copyrights to Bridgeport by writing a contract and then faking Clinton’s signature.11 As Clinton puts it “he just stole ‘em.”12 With the copyrights to Clinton’s songs in the hands of Bridgeport – an entity with no vested interest in the works beyond their sheer economic value – the targeting of sampling is not surprising.
1 Tim Wu, Jay-Z Versus the Sample Troll, Slate Magazine, Nov. 16, 2006, http://www.slate.com/id/2153961/.
2 See Bridgeport Music, Inc.’s corporate entity details, Michigan Department of Labor & Economic Growth, available at http://www.dleg.state.mi.us/bcs_corp/dt_corp.asp?id_nbr=190824&name_entity=BRIDGEPORT%20MUSIC,%20INC (last visited Mar. 18, 2007).
3 See Wu, supra note 1.
4 410 F.3d 792 (6th Cir. 2005).
5 Id. at 801.
6 Jeff Leeds, Judge Freezes Notorious B.I.G. Album, N.Y. Times, Mar. 21, 2006, at E2.
7 Id.
8 See, e.g., Matthew R. Broodin, Comment, Bridgeport Music, Inc. v. Dimension Films: The Death of the Substantial Similarity Test in Digital Samping Copyright Infringemnt Claims—The Sixth Circuit’s Flawed Attempt at a Bright Line Rule, 6 Minn. J. L. Sci. & Tech. 825 (2005); Jeffrey F. Kersting, Comment, Singing a Different Tune: Was the Sixth Circuit Justified in Changing the Protection of Sound Recordings in Bridgeport Music, Inc. v. Dimension Films?, 74 U. Cin. L. Rev. 663 (2005) (answering the title question in the negative); John Schietinger, Note, Bridgeport Music, Inc. v. Dimension Films: How the Sixth Circuit Missed a Beat on Digital Music Sampling, 55 DePaul L. Rev. 209 (2005).
9 Interview by Rick Karr with George Clinton, at the 5th Annual Future of Music Policy Summit, Wash. D.C. (Sept. 12, 2005), video clip available at http://www.tvworldwide.com/showclip.cfm?ID=6128&clip=2 [hereinafter Clinton Interview].
10 George Clinton, Sample Some of Disc, Sample Some of D.A.T., Vols. 1-3 (1993-94).
11 Sound Generator, George Clinton awarded Funkadelic master recordings (Jun. 6, 2005), http://www.soundgenerator.com/news/showarticle.cfm?articleid=5555.
12 Clinton Interview, supra note 9.
George Clinton and the sample troll Read More »
George Clinton and the sample troll
From Tim Wu’s “On Copyright’s Authorship Policy” (Internet Archive: 2007):
On May 4, 2001, a one-man corporation named Bridgeport Music, Inc. launched over 500 counts of copyright infringement against more than 800 different artists and labels.1 Bridgeport Music has no employees, and other than copyrights, no reported assets.2 Technically, Bridgeport is a “catalogue company.” Others call it a “sample troll.”
Bridgeport is the owner of valuable copyrights, including many of funk singer George Clinton’s most famous songs – songs which are sampled in a good amount of rap music.3 Bridgeport located every sample of Clinton’s and other copyrights it owned, and sued based on the legal position that any sampling of a sound recording, no matter how minimal or unnoticeable, is still an infringement.
During the course of Bridgeport’s campaign, it has won two important victories. First, the Sixth Circuit, the appellate court for Nashville adopted Bridgeport’s theory of infringement. In Bridgeport Music, Inc. v. Dimension Films,4 the defendants sampled a single chord from the George Clinton tune “Get Off Your Ass and Jam,” changed the pitch, and looped the sound. Despite the plausible defense that one note is but a de minimus use of the work, the Sixth Circuit ruled for Bridgeport and created a stark rule: any sampling, no matter how minimal or undetectable, is a copyright infringement. Said the court in Bridgeport, “Get a license or do not sample. We do not see this as stifling creativity in any significant way.”5 In 2006 Bridgeport convinced a district court to enjoin the sales of the bestselling Notorious B.I.G. album, Ready to Die, for “illegal sampling.”6 A jury then awarded Bridgeport more than four million dollars in damages.7
The Bridgeport cases have been heavily criticized, and taken as a prime example of copyright’s excesses.8 Yet the deeper problem with the Bridgeport litigation is not necessarily a problem of too much copyright. It can be equally concluded that the ownership of the relevant rights is the root of the problem. George Clinton, the actual composer and recording artist, takes a much different approach to sampling. “When hip-hop came out,” said Clinton in an interview with journalist Rick Karr, “I was glad to hear it, especially when it was our songs – it was a way to get back on the radio.”9 Clinton accepts sampling of his work, and has released a three CD collection of his sounds for just that purpose.10 The problem is that he doesn’t own many of his most important copyrights. Instead, it is Bridgeport, the one-man company, that owns the rights to Clinton’s work. In the 1970s Bridgeport, through its owner Armen Boladian, managed to seize most of George Clinton’s copyrights and many other valuable rights. In at least a few cases, Boladian assigned the copyrights to Bridgeport by writing a contract and then faking Clinton’s signature.11 As Clinton puts it “he just stole ‘em.”12 With the copyrights to Clinton’s songs in the hands of Bridgeport – an entity with no vested interest in the works beyond their sheer economic value – the targeting of sampling is not surprising.
1 Tim Wu, Jay-Z Versus the Sample Troll, Slate Magazine, Nov. 16, 2006, http://www.slate.com/id/2153961/.
2 See Bridgeport Music, Inc.’s corporate entity details, Michigan Department of Labor & Economic Growth, available at http://www.dleg.state.mi.us/bcs_corp/dt_corp.asp?id_nbr=190824&name_entity=BRI DGEPORT%20MUSIC,%20INC (last visited Mar. 18, 2007).
3 See Wu, supra note 1.
4 410 F.3d 792 (6th Cir. 2005).
5 Id. at 801.
6 Jeff Leeds, Judge Freezes Notorious B.I.G. Album, N.Y. Times, Mar. 21, 2006, at E2.
7 Id.
8 See, e.g., Matthew R. Broodin, Comment, Bridgeport Music, Inc. v. Dimension Films: The Death of the Substantial Similarity Test in Digital Samping Copyright Infringemnt Claims—The Sixth Circuit’s Flawed Attempt at a Bright Line Rule, 6 Minn. J. L. Sci. & Tech. 825 (2005); Jeffrey F. Kersting, Comment, Singing a Different Tune: Was the Sixth Circuit Justified in Changing the Protection of Sound Recordings in Bridgeport Music, Inc. v. Dimension Films?, 74 U. Cin. L. Rev. 663 (2005) (answering the title question in the negative); John Schietinger, Note, Bridgeport Music, Inc. v. Dimension Films: How the Sixth Circuit Missed a Beat on Digital Music Sampling, 55 DePaul L. Rev. 209 (2005).
9 Interview by Rick Karr with George Clinton, at the 5th Annual Future of Music Policy Summit, Wash. D.C. (Sept. 12, 2005), video clip available at http://www.tvworldwide.com/showclip.cfm?ID=6128&clip=2 [hereinafter Clinton Interview].
10 George Clinton, Sample Some of Disc, Sample Some of D.A.T., Vols. 1-3 (1993-94).
11 Sound Generator, George Clinton awarded Funkadelic master recordings (Jun. 6, 2005), http://www.soundgenerator.com/news/showarticle.cfm?articleid=5555.
12 Clinton Interview, supra note 9.
George Clinton and the sample troll Read More »
How Obama raised money in Silicon Valley & using the Net
From Joshua Green’s “The Amazing Money Machine” (The Atlantic: June 2008):
That early fund-raiser [in February 2007] and others like it were important to Obama in several respects. As someone attempting to build a campaign on the fly, he needed money to operate. As someone who dared challenge Hillary Clinton, he needed a considerable amount of it. And as a newcomer to national politics, though he had grassroots appeal, he needed to establish credibility by making inroads to major donors—most of whom, in California as elsewhere, had been locked down by the Clinton campaign.
Silicon Valley was a notable exception. The Internet was still in its infancy when Bill Clinton last ran for president, in 1996, and most of the immense fortunes had not yet come into being; the emerging tech class had not yet taken shape. So, unlike the magnates in California real estate (Walter Shorenstein), apparel (Esprit founder Susie Tompkins Buell), and entertainment (name your Hollywood celeb), who all had long-established loyalty to the Clintons, the tech community was up for grabs in 2007. In a colossal error of judgment, the Clinton campaign never made a serious approach, assuming that Obama would fade and that lack of money and cutting-edge technology couldn’t possibly factor into what was expected to be an easy race. Some of her staff tried to arrange “prospect meetings” in Silicon Valley, but they were overruled. “There was massive frustration about not being able to go out there and recruit people,” a Clinton consultant told me last year. As a result, the wealthiest region of the wealthiest state in the nation was left to Barack Obama.
Furthermore, in Silicon Valley’s unique reckoning, what everyone else considered to be Obama’s major shortcomings—his youth, his inexperience—here counted as prime assets.
[John Roos, Obama’s Northern California finance chair and the CEO of the Palo Alto law firm Wilson Sonsini Goodrich & Rosati]: “… we recognize what great companies have been built on, and that’s ideas, talent, and inspirational leadership.”
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The true killer app on My.BarackObama.com is the suite of fund-raising tools. You can, of course, click on a button and make a donation, or you can sign up for the subscription model, as thousands already have, and donate a little every month. You can set up your own page, establish your target number, pound your friends into submission with e-mails to pony up, and watch your personal fund-raising “thermometer” rise. “The idea,” [Joe Rospars, a veteran of Dean’s campaign who had gone on to found an Internet fund-raising company and became Obama’s new-media director] says, “is to give them the tools and have them go out and do all this on their own.”
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“What’s amazing,” says Peter Leyden of the New Politics Institute, “is that Hillary built the best campaign that has ever been done in Democratic politics on the old model—she raised more money than anyone before her, she locked down all the party stalwarts, she assembled an all-star team of consultants, and she really mastered this top-down, command-and-control type of outfit. And yet, she’s getting beaten by this political start-up that is essentially a totally different model of the new politics.”
Before leaving Silicon Valley, I stopped by the local Obama headquarters. It was a Friday morning in early March, and the circus had passed through town more than a month earlier, after Obama lost the California primary by nine points. Yet his headquarters was not only open but jammed with volunteers. Soon after I arrived, everyone gathered around a speakerphone, and Obama himself, between votes on the Senate floor, gave a brief hortatory speech telling volunteers to call wavering Edwards delegates in Iowa before the county conventions that Saturday (they took place two months after the presidential caucuses). Afterward, people headed off to rows of computers, put on telephone headsets, and began punching up phone numbers on the Web site, ringing a desk bell after every successful call. The next day, Obama gained nine delegates, including a Clinton delegate.
The most striking thing about all this was that the headquarters is entirely self-sufficient—not a dime has come from the Obama campaign. Instead, everything from the computers to the telephones to the doughnuts and coffee—even the building’s rent and utilities—is user-generated, arranged and paid for by local volunteers. It is one of several such examples across the country, and no other campaign has put together anything that can match this level of self-sufficiency.
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But while his rivals continued to depend on big givers, Obama gained more and more small donors, until they finally eclipsed the big ones altogether. In February, the Obama campaign reported that 94 percent of their donations came in increments of $200 or less, versus 26 percent for Clinton and 13 percent for McCain. Obama’s claim of 1,276,000 donors through March is so large that Clinton doesn’t bother to compete; she stopped regularly providing her own number last year.
“If the typical Gore event was 20 people in a living room writing six-figure checks,” Gorenberg told me, “and the Kerry event was 2,000 people in a hotel ballroom writing four-figure checks, this year for Obama we have stadium rallies of 20,000 people who pay absolutely nothing, and then go home and contribute a few dollars online.” Obama himself shrewdly capitalizes on both the turnout and the connectivity of his stadium crowds by routinely asking them to hold up their cell phones and punch in a five-digit number to text their contact information to the campaign—to win their commitment right there on the spot.
How Obama raised money in Silicon Valley & using the Net Read More »
How movies are moved around on botnets
From Chapter 2: Botnets Overview of Craig A. Schiller’s Botnets: The Killer Web App (Syngress: 2007):
Figure 2.11 illustrates the use of botnets for selling stolen intellectual property, in this case Movies, TV shows, or video. The diagram is based on information from the Pyramid of Internet Piracy created by Motion Picture Arts Association (MPAA) and an actual case. To start the process, a supplier rips a movie or software from an existing DVD or uses a camcorder to record a first run movie in the theaters. These are either burnt to DVDs to be sold on the black market or they are sold or provided to a Release Group. The Release Group is likely to be an organized crime group, excuse me, business associates who wish to invest in the entertainment industry. I am speculating that the Release Group engages (hires) a botnet operator that can meet their delivery and performance specifications. The botherder then commands the botnet clients to retrieve the media from the supplier and store it in a participating botnet client. These botnet clients may be qualified according to the system processor speed and the nature of the Internet connection. The huge Internet pipe, fast connection, and lax security at most universities make them a prime target for this form of botnet application. MPAA calls these clusters of high speed locations “Topsites.”
. . .
According to the MPAA, 44 percent of all movie piracy is attributed to college students. Therefore it makes sense that the Release Groups would try to use university botnet clients as Topsites. The next groups in the chain are called Facilitators. They operate Web sites and search engines and act as Internet directories. These may be Web sites for which you pay a monthly fee or a fee per download. Finally individuals download the films for their own use or they list them via Peer-to-Peer sharing applications like Gnutella, BitTorrent for download.
How movies are moved around on botnets Read More »
The various participants in phishing schemes
From Chapter 2: Botnets Overview of Craig A. Schiller’s Botnets: The Killer Web App (Syngress: 2007):
Christopher Abad provides insight into the phishing economy in an article published online by FirstMonday.org (http://www.firstmonday.org/issues/ issue10_9/abad/). The article, “The economy of phishing: A survey of the operations of the phishing market,” reveals the final phase of the phishing life cycle, called cashing. These are usually not the botherders or the phishers. The phishers are simply providers of credential goods to the cashers. Cashers buy the credential goods from the phishers, either taking a commission on the funds extracted or earned based on the quality, completeness, which financial institution it is from, and the victim’s balance in the account. A high-balance, verified, full-credential account can be purchased for up to $100. Full creden- tials means that you have the credit card number, bank and routing numbers, the expiration date, the security verification code (cvv2) on the back of the card, the ATM pin number, and the current balance. Credit card numbers for a financial institution selected by the supplier can be bought for 50 cents per account. The casher’s commission of this transaction may run as much as 70 percent. When the deal calls for commissions to be paid in cash, the vehicle of choice is Western Union.
The continuation of phishing attacks depends largely on the ability of the casher’s to convert the information into cash. The preferred method is to use the credential information to create duplicate ATM cards and use the cards to withdraw cash from ATM terminals. Not surprisingly the demand for these cards leans heavily in favor of banks that provide inadequate protections of the ATM cards. Institutions like Bank of America are almost nonexistent in the phisher marketplace due to the strong encryption (triple DES) used to protect information on its ATM cards.
The various participants in phishing schemes Read More »
1st criminal case involving a botnet
From Chapter 2: Botnets Overview of Craig A. Schiller’s Botnets: The Killer Web App (Syngress: 2007):
The first criminal case involving a botnet went to trial in November 2005. Jeanson James Ancheta (a. k. a. Resili3nt), age 21, of Downey, California, was convicted and sentenced to five years in jail for conspiring to violate the Computer Fraud Abuse Act, conspiring to violate the CAN-SPAM Act, causing damage to computers used by the federal government in national defense, and accessing protected computers without authorization to commit fraud.
1st criminal case involving a botnet Read More »
The latest on electronic voting machines
From James Turner’s interview with Dr. Barbara Simons, past President of the Association for Computing Machinery & recent appointee to the Advisory Board of the Federal Election Assistance Commission, at “A 2008 e-Voting Wrapup with Dr. Barbara Simons” (O’Reilly Media: 7 November 2008):
[Note from Scott: headers added by me]
Optical Scan: Good & Bad
And most of the voting in Minnesota was done on precinct based optical scan machines, paper ballot which is then fed into the optical scanner at the precinct. And the good thing about that is it gives the voter immediate feedback if there is any problem, such as over-voting, voting twice for a candidate.
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Well there’s several problems; one is–well first of all, as you say because these things have computers in them they can be mis-programmed, there can be software bugs. You could conceivably have malicious code. You could have the machines give you a different count from the right one. There was a situation back in the 2004 race where Gephardt in one of the Primaries–Gephardt received a large number of votes after he had withdrawn from the race. And this was done–using paper ballots, using optical scan paper ballots. I don’t know if it was this particular brand or not. And when they were recounted it was discovered that in fact that was the wrong result; that he had gotten fewer votes. Now I never saw an explanation for what happened but my guess is that whoever programmed these machines had mistakenly assigned the slot that was for Kerry to Gephardt and the slot that was for Gephardt to Kerry; that’s my guess. Now I don’t know if that’s true but if that did happen I think there’s very little reason to believe it was malicious because there was really nothing to be gained by doing that. So I think it was just an honest error but of course errors can occur.
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DRE Studies
Ohio conducted a major study of electronic voting machines called the Everest Study which was commissioned by the current Secretary of State Bruner, Secretary of State Bruner and this study uncovered huge problems with these–with most of these voting systems, these touch screen voting systems. They were found to be insecure, unreliable, difficult to use; basically a similar study had been studied in California not too much earlier called the Top to Bottom Review and the Ohio study confirmed every–all of the problems that had been uncovered in California and found additional problems, so based on that there was a push to get rid of a lot of these machines.
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States Using DREs
Maryland and Georgia are entirely touch screen States and so is New Jersey. In Maryland they’re supposed to replace them with optical scan paper ballots by 2010 but there’s some concern that there may not be the funding to do that. In fact Maryland and Georgia both use Diebold which is now called Premier, paperless touch screen voting machines; Georgia started using them in 2002 and in that race, that’s the race in which Max Cleveland, the Democratic Senator, paraplegic from–the Vietnam War Vet was defeated and I know that there are some people who questioned the outcome of that race because the area polls had showed him winning. And because that race–those machines are paperless there was no way to check the outcome. Another thing that was of a concern in Maryland in 2002 was that–I mean in Georgia in 2002 was that there were last minute software patches being added to the machines just before the Election and the software patches hadn’t really been inspected by any kind of independent agency.
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More on Optical Scans
Well I think scanned ballots–well certainly scanned ballots give you a paper trail and they give you a good paper trail. The kind of paper trail you want and it’s not really a paper trail; it’s paper ballots because they are the ballots. What you want is you want it to be easy to audit and recount an election. And I think that’s something that really people hadn’t taken into consideration early on when a lot of these machines were first designed and purchased.
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Disabilities
One of the things that was investigated in California when they did the Top to Bottom Review was just how easy is it for people with disabilities to use these touch screen machines? Nobody had ever done that before and these test results came back very negatively. If you look at the California results they’re very negative on these touch screen machines. In many cases people in wheelchairs had a very difficult time being able to operate them correctly, people who were blind sometimes had troubles understanding what was being said or things were said too loudly or too softly or they would get confused about the instructions or some of the ways that they had for manual inputting; their votes were confusing.
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There is a–there are these things called Ballot Generating Devices which are not what we generally refer to as touch screen machines although they can be touch screen. The most widely used one is called the Auto Mark. And the way the Auto Mark works is you take a paper ballots, one of these optical scan ballots and you insert it into the Auto Mark and then it operates much the same way that these other paperless–potentially paperless touch screen machines work. It has a headphone–headset so that a blind voter can use it; it has–it’s possible for somebody in a wheelchair to vote, although in fact you don’t have to use this if you’re in a wheelchair; you can vote optical scan clearly. Somebody who has severe mobility impairments can vote on these machines using a sip, puff device where if you sip it’s a zero or one and if you puff it’s the opposite or a yes or a no. And these–the Auto Mark was designed with disability people in mind from early on. And it faired much better in the California tests. What it does is at the end when the voter with disabilities is finished he or she will say okay cast my ballot. At that point the Auto Mark simply marks the optical scan ballot; it just marks it. And then you have an optical scan ballot that can be read by an optical scanner. There should be no problems with it because it’s been generated by a machine. And you have a paper ballot that can be recounted.
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Problems with DREs vs Optical Scans
One of the things to keep in–there’s a couple things to keep in mind when thinking about replacing these systems. The first is that these direct recording electronic systems or touch screen systems as they’re called they have to have–the States and localities that buy these systems have to have maintenance contracts with the vendors because they’re very complicated systems to maintain and of course the software is a secret. So some of these contracts are quite costly and these are ongoing expenses with these machines. In addition, because they have software in them they have to be securely stored and they have to be securely delivered and those create enormous problems especially when you have to worry about delivering large numbers of machines to places prior to the election. Frequently these machines end up staying in people’s garages or in churches for periods of time when they’re relatively insecure.
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And you need far fewer scanners; the security issues with scanners are not as great because you can do an audit and a recount, so altogether it just seems to me that moving to paper based optical scan systems with precinct scanners so that the voter gets feedback on the ballot if the voter votes twice for President; the ballot is kicked out and the voter can vote a new ballot.
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And as I say there is the Auto Mark for voters with disabilities to use; there’s also another system called Populex but that’s not as widely used as Auto Mark. There could be new systems coming forward.
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1/2 of DREs Broken in Pennsylvania on Election Day
Editor’s Note: Dr. Simons wrote me later to say: “Many Pennsylvania polling places opened on election day with half or more of their voting machines broken — so they used emergency paper ballots until they could fix their machines.”
The latest on electronic voting machines Read More »
Tracking children who might commit a crime later
From Mark Townsend and Anushka Asthana’s “Put young children on DNA list, urge police” (The Guardian: 16 March 2008):
Primary school children should be eligible for the DNA database if they exhibit behaviour indicating they may become criminals in later life, according to Britain’s most senior police forensics expert.
Gary Pugh, director of forensic sciences at Scotland Yard and the new DNA spokesman for the Association of Chief Police Officers (Acpo), said a debate was needed on how far Britain should go in identifying potential offenders, given that some experts believe it is possible to identify future offending traits in children as young as five.
Tracking children who might commit a crime later Read More »
Craigslist “everything is free!” scams
Robert Salisbury
From “Man scammed by Craigslist ad” (The Seattle Times: 24 March 2008):
The ads popped up Saturday afternoon, saying the owner of a Jacksonville home was forced to leave the area suddenly and his belongings, including a horse, were free for the taking, said Jackson County sheriff’s Detective Sgt. Colin Fagan.
But Robert Salisbury had no plans to leave. The independent contractor was at Emigrant Lake when he got a call from a woman who had stopped by his house to claim his horse.
On his way home he stopped a truck loaded down with his work ladders, lawn mower and weed eater.
“I informed them I was the owner, but they refused to give the stuff back,” Salisbury said. “They showed me the Craigslist printout and told me they had the right to do what they did.”
The driver sped away after rebuking Salisbury. On his way home he spotted other cars filled with his belongings.
Once home he was greeted by close to 30 people rummaging through his barn and front porch.
From “Couple held in Craigslist theft case” (The Seattle Times: 1 April 2008):
Police on Monday arrested a Medford couple who allegedly used hoax postings on Craigslist to cover up their own thefts from a rural Jacksonville residence later inundated by Craigslist readers who thought the house’s contents were free pickings for the taking.
Amber D. Herbert, 28, and Brandon D. Herbert, 29, were taken into custody on burglary, theft and computer crime charges involving the Craigslist hoax that drew international attention and cost the victim several thousand dollars, authorities said.
…the Herberts told police they took several saddles from the property and sold them over the Internet.
Laurie Raye
From “Tacoma woman’s house emptied after craigslist hoax” (The Seattle Times: 5 April 2007):
Laurie Raye said she had everything stripped from her home after someone placed a fake ad on the San Francisco-based Internet site, a collection of online classifieds.
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Raye had recently evicted a tenant and cleaned out the rental.
The ad posted last weekend welcomed people to take for free anything they wanted from the home. It has since been pulled from the site, but not before the residence was stripped of light fixtures, the hot water heater and the kitchen sink.
Neighbors said they saw strangers hauling items away, apparently looking for salvage material.
Even the front door and a vinyl window were pilfered, Raye said.
“In the ad, it said come and take what you want. Everything is free,” she said. “Please help yourself to anything on the property.”
From “Woman charged after Craigslist posting resulted in a house stripped” (The Seattle Times: 17 May 2007):
Pierce County prosecutors have filed charges against the niece of a woman whose house was stripped clean after a Craigslist.org posting advertised that everything in the home was free.
Nichole Blackwell, 28, was charged with second-degree burglary, malicious mischief and criminal impersonation for allegedly posting an ad that read, “Moving out … House being demolished. Come and take whatever you want, nothing is off limits,” on the online classifieds Web site, according to charging documents from Pierce County Superior Court.
It wasn’t until six days after the ad was posted that Laurie Raye, owner of the home in the 1200 block of East 64th Street in Tacoma, checked on the house to find it stripped.
Nearly everything that wasn’t bolted down — and some stuff that was — was taken.
People, thinking that they could remove whatever they wanted, grabbed the refrigerator, front door and kitchen sink, among other things, according to the documents.
Police believe Blackwell disliked Raye and was particularly upset because Raye had recently evicted Blackwell’s mother from the house.
Craigslist “everything is free!” scams Read More »
Cheating, security, & theft in virtual worlds and online games
From Federico Biancuzzi’s interview with security researchers Greg Hoglund & Gary McGraw, authors of Exploiting Online Games, in “Real Flaws in Virtual Worlds” (SecurityFocus: 20 December 2007):
The more I dug into online game security, the more interesting things became. There are multiple threads intersecting in our book: hackers who cheat in online games and are not detected can make tons of money selling virtual items in the middle market; the law says next to nothing about cheating in online games, so doing so is really not illegal; the kinds of technological attacks and exploits that hackers are using to cheat in online games are an interesting bellwether; software is evolving to look very much like massively distributed online games look today with thick clients and myriad time and state related security problems. [Emphasis added]
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In Brazil, a criminal gang even kidnapped a star MMORPG player in order to take away his character, and its associated virtual wealth.
The really interesting thing about online game security is that the attackers are in most cases after software running on their own machine, not software running on somebody else’s box. That’s a real change. Interestingly, the laws we have developed in computer security don’t have much to say about cheating in a game or hacking software on your own PC.
Cheating, security, & theft in virtual worlds and online games Read More »
Lots of good info about the FBI’s far-reaching wiretapping of US phone systems
From Ryan Singel’s “Point, Click … Eavesdrop: How the FBI Wiretap Net Operates” (Wired News: 29 August 2007):
The FBI has quietly built a sophisticated, point-and-click surveillance system that performs instant wiretaps on almost any communications device, according to nearly a thousand pages of restricted documents newly released under the Freedom of Information Act.
The surveillance system, called DCSNet, for Digital Collection System Network, connects FBI wiretapping rooms to switches controlled by traditional land-line operators, internet-telephony providers and cellular companies. It is far more intricately woven into the nation’s telecom infrastructure than observers suspected.
It’s a “comprehensive wiretap system that intercepts wire-line phones, cellular phones, SMS and push-to-talk systems,” says Steven Bellovin, a Columbia University computer science professor and longtime surveillance expert.
DCSNet is a suite of software that collects, sifts and stores phone numbers, phone calls and text messages. The system directly connects FBI wiretapping outposts around the country to a far-reaching private communications network.
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The $10 million DCS-3000 client, also known as Red Hook, handles pen-registers and trap-and-traces, a type of surveillance that collects signaling information — primarily the numbers dialed from a telephone — but no communications content. (Pen registers record outgoing calls; trap-and-traces record incoming calls.)
DCS-6000, known as Digital Storm, captures and collects the content of phone calls and text messages for full wiretap orders.
A third, classified system, called DCS-5000, is used for wiretaps targeting spies or terrorists.
What DCSNet Can Do
Together, the surveillance systems let FBI agents play back recordings even as they are being captured (like TiVo), create master wiretap files, send digital recordings to translators, track the rough location of targets in real time using cell-tower information, and even stream intercepts outward to mobile surveillance vans.
FBI wiretapping rooms in field offices and undercover locations around the country are connected through a private, encrypted backbone that is separated from the internet. Sprint runs it on the government’s behalf.
The network allows an FBI agent in New York, for example, to remotely set up a wiretap on a cell phone based in Sacramento, California, and immediately learn the phone’s location, then begin receiving conversations, text messages and voicemail pass codes in New York. With a few keystrokes, the agent can route the recordings to language specialists for translation.
The numbers dialed are automatically sent to FBI analysts trained to interpret phone-call patterns, and are transferred nightly, by external storage devices, to the bureau’s Telephone Application Database, where they’re subjected to a type of data mining called link analysis.
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The numerical scope of DCSNet surveillance is still guarded. But we do know that as telecoms have become more wiretap-friendly, the number of criminal wiretaps alone has climbed from 1,150 in 1996 to 1,839 in 2006. That’s a 60 percent jump. And in 2005, 92 percent of those criminal wiretaps targeted cell phones, according to a report published last year.
These figures include both state and federal wiretaps, and do not include antiterrorism wiretaps, which dramatically expanded after 9/11. They also don’t count the DCS-3000’s collection of incoming and outgoing phone numbers dialed. Far more common than full-blown wiretaps, this level of surveillance requires only that investigators certify that the phone numbers are relevant to an investigation.
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In the 1990s, the Justice Department began complaining to Congress that digital technology, cellular phones and features like call forwarding would make it difficult for investigators to continue to conduct wiretaps. Congress responded by passing the Communications Assistance for Law Enforcement Act, or CALEA, in 1994, mandating backdoors in U.S. telephone switches.
CALEA requires telecommunications companies to install only telephone-switching equipment that meets detailed wiretapping standards. Prior to CALEA, the FBI would get a court order for a wiretap and present it to a phone company, which would then create a physical tap of the phone system.
With new CALEA-compliant digital switches, the FBI now logs directly into the telecom’s network. Once a court order has been sent to a carrier and the carrier turns on the wiretap, the communications data on a surveillance target streams into the FBI’s computers in real time.
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The released documents suggest that the FBI’s wiretapping engineers are struggling with peer-to-peer telephony provider Skype, which offers no central location to wiretap, and with innovations like caller-ID spoofing and phone-number portability.
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Despite its ease of use, the new technology is proving more expensive than a traditional wiretap. Telecoms charge the government an average of $2,200 for a 30-day CALEA wiretap, while a traditional intercept costs only $250, according to the Justice Department inspector general. A federal wiretap order in 2006 cost taxpayers $67,000 on average, according to the most recent U.S. Court wiretap report.
What’s more, under CALEA, the government had to pay to make pre-1995 phone switches wiretap-friendly. The FBI has spent almost $500 million on that effort, but many traditional wire-line switches still aren’t compliant.
Processing all the phone calls sucked in by DCSNet is also costly. At the backend of the data collection, the conversations and phone numbers are transferred to the FBI’s Electronic Surveillance Data Management System, an Oracle SQL database that’s seen a 62 percent growth in wiretap volume over the last three years — and more than 3,000 percent growth in digital files like e-mail. Through 2007, the FBI has spent $39 million on the system, which indexes and analyzes data for agents, translators and intelligence analysts.
Lots of good info about the FBI’s far-reaching wiretapping of US phone systems Read More »
If concerts bring money in for the music biz, what happens when concerts get smaller?
From Jillian Cohen’s “The Show Must Go On” (The American: March/April 2008):
You can’t steal a concert. You can’t download the band—or the sweaty fans in the front row, or the merch guy, or the sound tech—to your laptop to take with you. Concerts are not like albums—easy to burn, copy, and give to your friends. If you want to share the concert-going experience, you and your friends all have to buy tickets. For this reason, many in the ailing music industry see concerts as the next great hope to revive their business.
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It’s a blip that already is fading, to the dismay of the major record labels. CD sales have dropped 25 percent since 2000 and digital downloads haven’t picked up the slack. As layoffs swept the major labels this winter, many industry veterans turned their attention to the concert business, pinning their hopes on live performances as a way to bolster their bottom line.
Concerts might be a short-term fix. As one national concert promoter says, “The road is where the money is.” But in the long run, the music business can’t depend on concert tours for a simple, biological reason: the huge tour profits that have been generated in the last few decades have come from performers who are in their 40s, 50s, and 60s. As these artists get older, they’re unlikely to be replaced, because the industry isn’t investing in new talent development.
When business was good—as it was when CD sales grew through much of the 1990s—music labels saw concert tours primarily as marketing vehicles for albums. Now, they’re seizing on the reverse model. Tours have become a way to market the artist as a brand, with the fan clubs, limited-edition doodads, and other profitable products and services that come with the territory.
“Overall, it’s not a pretty picture for some parts of the industry,” JupiterResearch analyst David Card wrote in November when he released a report on digital music sales. “Labels must act more like management companies, and tap into the broadest collection of revenue streams and licensing as possible,” he said. “Advertising and creative packaging and bundling will have to play a bigger role than they have. And the $3 billion-plus touring business is not exactly up for grabs—it’s already competitive and not very profitable. Music companies of all types need to use the Internet for more cost-effective marketing, and A&R [artist development] risk has to be spread more fairly.”
The ‘Heritage Act’ Dilemma
Even so, belief in the touring business was so strong last fall that Madonna signed over her next ten years to touring company Live Nation—the folks who put on megatours for The Rolling Stones, The Police, and other big headliners—in a deal reportedly worth more than $120 million. The Material Girl’s arrangement with Live Nation is known in the industry as a 360-degree deal. Such deals may give artists a big upfront payout in exchange for allowing record labels or, in Madonna’s case, tour producers to profit from all aspects of their business, including touring, merchandise, sponsorships, and more.
While 360 deals may work for big stars, insiders warn that they’re not a magic bullet that will save record labels from their foundering, top-heavy business model. Some artists have done well by 360 contracts, including alt-metal act Korn and British pop sensation Robbie Williams. With these successes in mind, some tout the deals as a way for labels to recoup money they’re losing from downloads and illegal file sharing. But the artists who are offered megamillions for a piece of their brand already have built it through years of album releases, heavy touring, and careful fan-base development.
Not all these deals are good ones, says Bob McLynn, who manages pop-punk act Fall Out Boy and other young artists through his agency, Crush Management. Labels still have a lot to offer, he says. They pay for recording sessions, distribute CDs, market a band’s music, and put up money for touring, music-video production, and other expenses. But in exchange, music companies now want to profit from more than a band’s albums and recording masters. “The artist owns the brand, and now the labels—because they can’t sell as many albums—are trying to get in on the brand,” McLynn says. “To be honest, if an artist these days is looking for a traditional major-label deal for several hundred thousand dollars, they will have to be willing to give up some of that brand.
”For a young act, such offers may be enticing, but McLynn urges caution. “If they’re not going to give you a lot of money for it, it’s a mistake,” says the manager, who helped build Fall Out Boy’s huge teen fan base through constant touring and Internet marketing, only later signing the band to a big label. “I had someone from a major label ask me recently, ‘Hey, I have this new artist; can we convert the deal to a 360 deal?’” McLynn recalls. “I told him [it would cost] $2 million to consider it. He thought I was crazy; but I’m just saying, how is that crazy? If you want all these extra rights and if this artist does blow up, then that’s the best deal in the world for you. If you’re not taking a risk, why am I going to give you this? And if it’s not a lot of money, you’re not taking a risk.”
A concert-tour company’s margin is about 4 percent, Live Nation CEO Michael Rapino has said, while the take on income from concessions, T-shirts, and other merchandise sold at shows can be much higher. The business had a record-setting year in 2006, which saw The Rolling Stones, Madonna, U2, Barbra Streisand, and other popular, high-priced tours on the road. But in 2007, North American gross concert dollars dropped more than 10 percent to $2.6 billion, according to Billboard statistics. Concert attendance fell by more than 19 percent to 51 million. Fewer people in the stands means less merchandise sold and concession-stand food eaten.
Now add this wrinkle: if you pour tens of millions of dollars into a 360 deal, as major labels and Live Nation have done with their big-name stars, you will need the act to tour for a long time to recoup your investment. “For decades we’ve been fueled by acts from the ’60s,” says Gary Bongiovanni, editor of the touring-industry trade magazine Pollstar. Three decades ago, no one would have predicted that Billy Joel or Rod Stewart would still be touring today, Bongiovanni notes, yet the industry has come to depend on artists such as these, known as “heritage acts.” “They’re the ones that draw the highest ticket prices and biggest crowds for our year-end charts,” he says. Consider the top-grossing tours of 2006 and 2007: veterans such as The Rolling Stones, Rod Stewart, Barbra Streisand, and Roger Waters were joined by comparative youngsters Madonna, U2, and Bon Jovi. Only two of the 20 acts—former Mouseketeers Justin Timberlake and Christina Aguilera—were younger than 30.
These young stars, the ones who are prone to taking what industry observer Bob Lefsetz calls “media shortcuts,” such as appearing on MTV, may have less chance of developing real staying power. Lefsetz, formerly an entertainment lawyer and consultant to major labels, has for 20 years published an industry newsletter (now a blog) called the Lefsetz Letter. “Whatever a future [superstar] act will be, it won’t be as ubiquitous as the acts from the ’60s because we were all listening to Top 40 radio,” he says.
From the 1960s to the 1980s, music fans discovered new music primarily on the radio and purchased albums in record stores. The stations young people listened to might have played rock, country, or soul; but whatever the genre, DJs introduced listeners to the hits of tomorrow and guided them toward retail stores and concert halls.
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Today, music is available in so many genres and subgenres, via so many distribution streams—including cell phones, social networking sites, iTunes, Pure Volume, and Limewire—that common ground rarely exists for post–Baby Boom fans. This in turn makes it harder for tour promoters to corral the tens of thousands of ticket holders they need to fill an arena. “More people can make music than ever before. They can get it heard, but it’s such a cacophony of noise that it will be harder to get any notice,” says Lefsetz.
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Most major promoters don’t know how to capture young people’s interest and translate it into ticket sales, he says. It’s not that his students don’t listen to music, but that they seek to discover it online, from friends, or via virtual buzz. They’ll go out to clubs and hear bands, but they rarely attend big arena concerts. Promoters typically spend 40 percent to 50 percent of their promotional budgets on radio and newspaper advertising, Barnet says. “High school and college students—what percentage of tickets do they buy? And you’re spending most of your advertising dollars on media that don’t even focus on those demographics.” Conversely, the readers and listeners of traditional media are perfect for high-grossing heritage tours. As long as tickets sell for those events, promoters won’t have to change their approach, Barnet says. Heritage acts also tend to sell more CDs, says Pollstar’s Bongiovanni. “Your average Rod Stewart fan is more likely to walk into a record store, if they can find one, than your average Fall Out Boy fan.”
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Personally, [Live Nation’s chairman of global music and global touring, Arthur Fogel] said, he’d been disappointed in the young bands he’d seen open for the headliners on Live Nation’s big tours. Live performance requires a different skill set from recorded tracks. It’s the difference between playing music and putting on a show, he said. “More often than not, I find young bands get up and play their music but are not investing enough time or energy into creating that show.” It’s incumbent on the industry to find bands that can rise to the next level, he added. “We aren’t seeing that development that’s creating the next generation of stadium headliners. Hopefully that will change.”
Live Nation doesn’t see itself spearheading such a change, though. In an earlier interview with Billboard magazine, Rapino took a dig at record labels’ model of bankrolling ten bands in the hope that one would become a success. “We don’t want to be in the business of pouring tens of millions of dollars into unknown acts, throwing it against the wall and then hoping that enough sticks that we only lose some of our money,” he said. “It’s not part of our business plan to be out there signing 50 or 60 young acts every year.”
And therein lies the rub. If the big dog in the touring pack won’t take responsibility for nurturing new talent and the labels have less capital to invest in artist development, where will the future megatour headliners come from?
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Indeed, despite its all-encompassing moniker, the 360 deal isn’t the only option for musicians, nor should it be. Some artists may find they need the distribution reach and bankroll that a traditional big-label deal provides. Others might negotiate with independent labels for profit sharing or licensing arrangements in which they’ll retain more control of their master recordings. Many will earn the bulk of their income from licensing their songs for use on TV shows, movie soundtracks, and video games. Some may take an entirely do-it-yourself approach, in which they’ll write, produce, perform, and distribute all of their own music—and keep any of the profits they make.
There are growing signs of this transition. The Eagles recently partnered with Wal-Mart to give the discount chain exclusive retail-distribution rights to the band’s latest album. Paul McCartney chose to release his most recent record through Starbucks, and last summer Prince gave away his newest CD to London concertgoers and to readers of a British tabloid. And in a move that earned nearly as much ink as Madonna’s 360 deal, rock act Radiohead let fans download its new release directly from the band’s website for whatever price listeners were willing to pay. Though the numbers are debated, one source, ComScore, reported that in the first month 1.2 million people downloaded the album. About 40 percent paid for it, at an average of about $6 each—well above the usual cut an artist would get in royalties. The band also self-released the album in an $80 limited-edition package and, months later, as a CD with traditional label distribution. Such a move wouldn’t work for just any artist. Radiohead had the luxury of a fan base that it developed over more than a dozen years with a major label. But the band’s experiment showed creativity and adaptability.
If concerts bring money in for the music biz, what happens when concerts get smaller? Read More »
Details on the Storm & Nugache botnets
From Dennis Fisher’s “Storm, Nugache lead dangerous new botnet barrage” (SearchSecurity.com: 19 December 2007):
[Dave Dittrich, a senior security engineer and researcher at the University of Washington in Seattle], one of the top botnet researchers in the world, has been tracking botnets for close to a decade and has seen it all. But this new piece of malware, which came to be known as Nugache, was a game-changer. With no C&C server to target, bots capable of sending encrypted packets and the possibility of any peer on the network suddenly becoming the de facto leader of the botnet, Nugache, Dittrich knew, would be virtually impossible to stop.
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Dittrich and other researchers say that when they analyze the code these malware authors are putting out, what emerges is a picture of a group of skilled, professional software developers learning from their mistakes, improving their code on a weekly basis and making a lot of money in the process.
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The way that Storm, Nugache and other similar programs make money for their creators is typically twofold. First and foremost, Storm’s creator controls a massive botnet that he can use to send out spam runs, either for himself or for third parties who pay for the service. Storm-infected PCs have been sending out various spam messages, including pump-and-dump stock scams, pitches for fake medications and highly targeted phishing messages, throughout 2007, and by some estimates were responsible for more than 75% of the spam on the Internet at certain points this year.
Secondly, experts say that Storm’s author has taken to sectioning off his botnet into smaller pieces and then renting those subnets out to other attackers. Estimates of the size of the Storm network have ranged as high as 50 million PCs, but Brandon Enright, a network security analyst at the University of California at San Diego, who wrote a tool called Stormdrain to locate and count infect machines, put the number at closer to 20,000. Dittrich estimates that the size of the Nugache network was roughly equivalent to Enright’s estimates for Storm.
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“The Storm network has a team of very smart people behind it. They change it constantly. When the attacks against searching started to be successful, they completely changed how commands are distributed in the network,” said Enright. “If AV adapts, they re-adapt. If attacks by researchers adapt, they re-adapt. If someone tries to DoS their distribution system, they DoS back.”
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The other worrisome detail in all of this is that there’s significant evidence that the authors of these various pieces of malware are sharing information and techniques, if not collaborating outright.
“I’m pretty sure that there are tactics being shared between the Nugache and Storm authors,” Dittrich said. “There’s a direct lineage from Sdbot to Rbot to Mytob to Bancos. These guys can just sell the Web front-end to these things and the customers can pick their options and then just hit go.”
Once just a hobby for devious hackers, writing malware is now a profession and its products have helped create a global shadow economy. That infrastructure stretches from the mob-controlled streets of Moscow to the back alleys of Malaysia to the office parks of Silicon Valley. In that regard, Storm, Nugache and the rest are really just the first products off the assembly line, the Model Ts of P2P malware.
Details on the Storm & Nugache botnets Read More »