1980s

Steve Jobs on mediocrity & market share

From Steven Levy’s “OK, Mac, Make a Wish: Apple’s ‘computer for the rest of us’ is, insanely, 20” (Newsweek: 2 February 2004):

If that’s so, then why is the Mac market share, even after Apple’s recent revival, sputtering at a measly 5 percent? Jobs has a theory about that, too. Once a company devises a great product, he says, it has a monopoly in that realm, and concentrates less on innovation than protecting its turf. “The Mac user interface was a 10-year monopoly,” says Jobs. “Who ended up running the company? Sales guys. At the critical juncture in the late ’80s, when they should have gone for market share, they went for profits. They made obscene profits for several years. And their products became mediocre. And then their monopoly ended with Windows 95. They behaved like a monopoly, and it came back to bite them, which always happens.”

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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.

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.”

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.

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.

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.

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.

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.

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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Prescription drug spending has vastly increased in 25 years

From Clifton Leaf’s “The Law of Unintended Consequences” (Fortune: 19 September 2005):

Whatever the answer, it’s clear who pays for it. You do. You pay in the form of vastly higher drug prices and health-care insurance. Americans spent $179 billion on prescription drugs in 2003. That’s up from … wait for it … $12 billion in 1980 [when the Bayh-Dole Act was passed]. That’s a 13% hike, year after year, for two decades. Of course, what you don’t pay as a patient you pay as a taxpayer. The U.S. government picks up the tab for one in three Americans by way of Medicare, Medicaid, the military, and other programs. According to the provisions of Bayh-Dole, the government gets a royalty-free use, forever, of its funded inventions. It has never tried to collect. You might say the taxpayers pay for the hat–and have it handed to them.

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What patents on life has wrought

From Clifton Leaf’s “The Law of Unintended Consequences” (Fortune: 19 September 2005):

The Supreme Court’s decision in 1980 to allow for the patenting of living organisms opened the spigots to individual claims of ownership over everything from genes and protein receptors to biochemical pathways and processes. Soon, research scientists were swooping into patent offices around the world with “invention” disclosures that weren’t so much products or processes as they were simply knowledge–or research tools to further knowledge.

The problem is, once it became clear that individuals could own little parcels of biology or chemistry, the common domain of scientific exchange–that dynamic place where theories are introduced, then challenged, and ultimately improved–begins to shrink. What’s more, as the number of claims grows, so do the overlapping claims and legal challenges. …

In October 1990 a researcher named Mary-Claire King at the University of California at Berkeley told the world that there was a breast-cancer susceptibility gene–and that it was on chromosome 17. Several other groups, sifting through 30 million base pairs of nucleotides to find the precise location of the gene, helped narrow the search with each new discovery. Then, in the spring of 1994, a team led by Mark Skolnick at the University of Utah beat everyone to the punch–identifying a gene with 5,592 base pairs and codes for a protein that was nearly 1,900 amino acids long. Skolnick’s team rushed to file a patent application and was issued title to the discovery three years later.

By all accounts the science was a collective effort. The NIH had funded scores of investigative teams around the country and given nearly 1,200 separate research grants to learn everything there was to learn about the genetics of breast cancer.

The patent, however, is licensed to one company–Skolnick’s. Myriad Genetics, a company the researcher founded in 1991, now insists on doing all U.S. testing for the presence of unknown mutation in the two related genes, BRCA1 and BRCA2. Those who have a mutation in either gene have as high as an 86% chance of getting cancer, say experts. The cost for the complete two-gene analysis: $2,975.

Critics say that Myriad’s ultrarestrictive licensing of the technology–one funded not only by federal dollars but also aided by the prior discoveries of hundreds of other scientists–is keeping the price of the test artificially high. Skolnick, 59, claims that the price is justified by his company’s careful analysis of thousands of base pairs of DNA, each of which is prone to a mutation or deletion, and by its educational outreach programs.

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1980 Bayh-Dole Act created the biotech industry … & turned universities into businesses

From Clifton Leaf’s “The Law of Unintended Consequences” (Fortune: 19 September 2005):

For a century or more, the white-hot core of American innovation has been basic science. And the foundation of basic science has been the fluid exchange of ideas at the nation’s research universities. It has always been a surprisingly simple equation: Let scientists do their thing and share their work–and industry picks up the spoils. Academics win awards, companies make products, Americans benefit from an ever-rising standard of living.

That equation still holds, with the conspicuous exception of medical research. In this one area, something alarming has been happening over the past 25 years: Universities have evolved from public trusts into something closer to venture capital firms. What used to be a scientific community of free and open debate now often seems like a litigious scrum of data-hoarding and suspicion. And what’s more, Americans are paying for it through the nose. …

From 1992 to September 2003, pharmaceutical companies tied up the federal courts with 494 patent suits. That’s more than the number filed in the computer hardware, aerospace, defense, and chemical industries combined. Those legal expenses are part of a giant, hidden “drug tax”–a tax that has to be paid by someone. And that someone, as you’ll see below, is you. You don’t get the tab all at once, of course. It shows up in higher drug costs, higher tuition bills, higher taxes–and tragically, fewer medical miracles.

So how did we get to this sorry place? It was one piece of federal legislation that you’ve probably never heard of–a 1980 tweak to the U.S. patent and trademark law known as the Bayh-Dole Act. That single law, named for its sponsors, Senators Birch Bayh and Bob Dole, in essence transferred the title of all discoveries made with the help of federal research grants to the universities and small businesses where they were made.

Prior to the law’s enactment, inventors could always petition the government for the patent rights to their own work, though the rules were different at each federal agency; some 20 different statutes governed patent policy. The law simplified the “technology transfer” process and, more important, changed the legal presumption about who ought to own and develop new ideas–private enterprise as opposed to Uncle Sam. The new provisions encouraged academic institutions to seek out the clever ideas hiding in the backs of their research cupboards and to pursue licenses with business. And it told them to share some of the take with the actual inventors.

On the face of it, Bayh-Dole makes sense. Indeed, supporters say the law helped create the $43-billion-a-year biotech industry and has brought valuable drugs to market that otherwise would never have seen the light of day. What’s more, say many scholars, the law has created megaclusters of entrepreneurial companies–each an engine for high-paying, high-skilled jobs–all across the land.

That all sounds wonderful. Except that Bayh-Dole’s impact wasn’t so much in the industry it helped create, but rather in its unintended consequence–a legal frenzy that’s diverting scientists from doing science. …

A 1979 audit of government-held patents showed that fewer than 5% of some 28,000 discoveries–all of them made with the help of taxpayer money–had been developed, because no company was willing to risk the capital to commercialize them without owning title. …

A dozen schools–notably MIT, Stanford, the University of California, Johns Hopkins, and the University of Wisconsin–already had campus offices to work out licensing arrangements with government agencies and industry. But within a few years Technology Licensing Offices (or TLOs) were sprouting up everywhere. In 1979, American universities received 264 patents. By 1991, when a new organization, the Association of University Technology Managers, began compiling data, North American institutions (including colleges, research institutes, and hospitals) had filed 1,584 new U.S. patent applications and negotiated 1,229 licenses with industry–netting $218 million in royalties. By 2003 such institutions had filed five times as many new patent applications; they’d done 4,516 licensing deals and raked in over $1.3 billion in income. And on top of all that, 374 brand-new companies had sprouted from the wells of university research. That meant jobs pouring back into the community …

The anecdotal reports, fun “discovery stories” in alumni magazines, and numbers from the yearly AUTM surveys suggested that the academic productivity marvel had spread far and wide. But that’s hardly the case. Roughly a third of the new discoveries and more than half of all university licensing income in 2003 derived from just ten schools–MIT, Stanford, the usual suspects. They are, for the most part, the institutions that were pursuing “technology transfer” long before Bayh-Dole. …

Court dockets are now clogged with university patent claims. In 2002, North American academic institutions spent over $200 million in litigation (though some of that was returned in judgments)–more than five times the amount spent in 1991. Stanford Law School professor emeritus John Barton notes, in a 2000 study published in Science, that the indicator that correlates most perfectly with the rise in university patents is the number of intellectual-property lawyers. (Universities also spent $142 million on lobbying over the past six years.) …

So what do universities do with all their cash? That depends. Apart from the general guidelines provided by Bayh-Dole, which indicate the proceeds must be used for “scientific research or education,” there are no instructions. “These are unrestricted dollars that they can use, and so they’re worth a lot more than other dollars,” says University of Michigan law professor Rebecca Eisenberg, who has written extensively about the legislation. The one thing no school seems to use the money for is tuition–which apparently has little to do with “scientific research or education.” Meanwhile, the cost of university tuition has soared at a rate more than twice as high as inflation from 1980 to 2005.

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Time travelers on the NYC subway

From Making Light:

The funny thing is, I’ve seen time travellers in NYC. Or at any rate I’ve seen people I thought were time travellers, and one case where I was sure.

This happened one day back in the 1980s. I was riding the subway home from work, and this kid got on at 34th or 42nd. He was at most twelve but I think younger, and slightly built at that. What caught my eye first was that he was wearing a jacket with a waistline seam–not a full-blown norfolk jacket, less obtrusive than that, but in that class. Which was odd; it had been over half a century since boys’ and men’s jackets stopped having waistline seams.

I started noticing more things about him. His pants ended just below his knees. That was unobtrusive too; his pants were dark, and so were his long woolen socks. If you weren’t really looking, the combination would register as black trousers, and you wouldn’t think anything of it. He had a flat woolen cap, and a sweater on under the jacket, and his shoes were what you’d expect with the rest of the outfit. Think newsboy, turn of the century or a little later, and you’ve got it.

But what struck me as genuinely odd was that he wasn’t wearing his clothes like a costume. Those were just his clothes, and they weren’t new, either. I honestly believe that if he’d gotten onto the same subway in the same clothing but had felt like he was dressed up for a masquerade, half the car would have noticed him right away.

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Perfect Score Achieved on Pac-Man

From Twin Galaxies

For the first time in video game playing history, a perfect score was achieved on the legendary arcade game, Pac-Man.

On July 3, 1999 at 4:45 P.M., taking nearly six hours to accomplish the feat — on one quarter — Billy Mitchell, 33, a Fort Lauderdale hot sauce manufacturer visiting the famous Funspot Family Fun Center in Weirs Beach, NH, scored 3,333,360 points — the maximum possible points allowed by the game. The results will go into next year’s edition of the Twin Galaxies’ Official Video Game & Pinball Book of World Records — which is the official record book for the world of video game and pinball playing. …

To get a perfect game on Pac-Man, the player has to eat every dot, every energizer, every blue man and every fruit up to and including board 256 — where the game ends with a split screen. This must be accomplished on the first man, too.

When I was a freshman in high school in Marshall, I played Pac-Man constantly. I actually won a contest for Saline County Pac-Man champ, and my prize was an Atari 2600. My all-time high score was 1,187,000, played in the Wal-Mart lobby over the course of two hours.

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