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---------- Forwarded Message ----------
Date: Friday, February 25, 2000, 3:12 PM -0500
From: Faulkner Mail Server <mailserver@faulknerinfo.com>
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Subject: Faulkner's Cyberscape Digest 02/25/2000

                                 CYBERSCAPE DIGEST

Welcome to CyberScape Digest, a roundup of top internet stories delivered
weekly to Faulkner Information Services subscribers.

This issue of CyberScape Digest covers events from Monday 02/21 through
Friday 02/25. Here's what you should know...

Hackers Steal Headlines as Government, Businesses React
While the recent distributed denial-of-service attacks against high-profile
Web sites did not continue this week, the attacks themselves served as the
center of attention while government agencies and businesses alike began
focusing on cyber security. Topping the terror list: the Central
Intelligence Agency reported to Congress that Russia, China, and other
unnamed countries seem to be developing cyber weapons to attack US computer
networks. According to John Serabian, the CIA's information operations issue
manager, "Many of the countries whose cyber warfare programs we follow are
the same ones that realize that, in a conventional military confrontation
with the United States, they will not prevail." Meanwhile, a number of ISPs
banded together to encourage the spread of stricter security measures. Led
by Internet security firm ICSA, the Alliance for Internet Security counts
Cable One, Cable & Wireless, Digex, GlobalCenter, GTE Internetworking, Level
3, Road Runner, and Sprint among its founding members. The AIS created
security guidelines, available from ICSA's Web site, and hopes to recruit
all the major ISPs as members. One hopes such measures will be enough, with
news of various threats on the horizon. For example, a new version of
"Trinoo" has been released. Trinoo permits the placement of programs that
allow a hacker to launch DDoS attacks from a remote, "hijacked" computer.
The new version works on many Windows-based computers and can be spread as
email attachments, like a virus. These changes should make DDoS attacks
easier to launch, according to security experts. Just a day or two after
this story hit the wires, a variant of Trinoo was discovered on the
Windows-based PCs of 16 students at James Madison University; however, it is
not known whether this is the same variant mentioned in the earlier warning.
Of course, hackers can cause havoc by many means, not just DDoS attacks. In
one case, Dale Ficken, a Webcasting consultant and ICQ user, received a $100
ransom demand from a hacker who prevented him from accessing his own ICQ
account for two days. America Online restored Ficken's account to him on
Thursday. While the company believes this to be an isolated incident,
possibly involving a Trojan horse virus, Ficken himself thinks it might be
part of an attempt by Russian hackers to gain control of early ICQ user
identification numbers. In another case, two new viruses raised their ugly
heads. Symantec reported the discovery of W2K.Infis.4608, a virus that
targets Windows 2000 and spreads only if the victim is online and logged on
with administrator privileges. The virus is low-risk, and hasn't been
reported in the wild yet--unlike a new version of the PrettyPark worm.
Dubbed PrettyPark II, it slips past antivirus software because it is
uncompressed, unlike the original PrettyPark. The worm arrives as an email
attachment named PrettyPark.exe, emails itself to the addresses in the
victim's Microsoft Outlook address book, and sends the victim's passwords to
various IRC channels. Antivirus company Finjan put out the warning for
PrettyPark II. Hackers don't need digital bugs to get their hands on user
names and passwords, though: in Qatar, more than 6000 user names and
passwords were up for sale on CDs in several cities, including the country's
capital. As a result, about one-third of Qatar's Internet users found
themselves tremendously overcharged on their Internet access bills. Affected
accounts belong to government ministries, large companies, and the Royal
Court. Qtel, the only ISP in the country, is asking its users to change
their passwords.
[ http://www.cia.gov/ ], [ http://www.icsa.net/ ], [ http://www.digex.net/
], [ http://www.gte.net/ ], [ http://www.level3.com/ ], [
http://www.sprint.com/ ], [ http://www.aol.com/ ], [
http://www.symantec.com/ ], [ http://www.finjan.com/ ], [
http://www.qtel.com.qa/ ]

EU Negotiates with US, China
According to a story in the Wall Street Journal, the European Union and the
US came up with a tentative plan for settling a dispute in the handling of
data privacy that could have brought e-commerce to a standstill between
consumers and businesses in the US and EU. The matter came to a head over
the EU Privacy Directive, which grants EU member country citizens the right
to know about, correct, and delete personal data being held online in the
EU, and also to be compensated for any damages resulting from the illegal
collection of data. Similar legislation is being proposed in the US House
and Senate. The compromise reportedly would have the Federal Trade
Commission enforcing the EU Privacy Directive, and in return permit US
companies to trade in EU territories. Meanwhile, the European Union is
leaning on China to permit 51 percent non-Chinese ownership of Chinese
telecom companies. The negotiations form part of the discussions about
China's attempt to join the World Trade Organization. If successful, the
permission would exceed the 49 percent ownership negotiated by the US for
mobile and fixed-line networks, and 50 percent for the Internet and other
value-added services. China is seen as a hot telecommunications market; the
number of Chinese citizens using cell phones doubled last year, while the
country's Internet users are increasing in number at twice that rate.
[ http://europa.eu.int/ ], [ http://www.house.gov/ ], [
http://www.senate.gov/ ], [ http://www.wto.org/ ]

Microsoft Struggles With Attacks, Strange Bedfellows
The Department of Justice vs. Microsoft antitrust trial reconvened on
Tuesday with the final oral arguments from both the government and the
software giant. Microsoft trotted forth one of its major arguments, namely,
that its copyrights grant it a great deal of leeway in the way it designs
and distributes its software. US District Judge Thomas Penfield Jackson
seemed to dismiss the claim. "Copyright does not protect the conduct with
which your client is charged," he said to Microsoft lawyer John Warden. The
judge is expected to give his conclusions in a few weeks, unless a
settlement is reached. Meanwhile, the European Union's director general for
competition is taking an interest in Microsoft's Windows 2000 operating
system. The matter at issue should sound very familiar to followers of the
DoJ vs. Microsoft case: does Microsoft's bundling Windows 2000 with the
company's own server software and middleware constitute a violation of
Europe's antitrust law? While the European Commission explains that no
formal charges have been laid against the company, "We have sent Microsoft a
letter formally requesting information about Windows 2000," according to an
EC spokesperson. Microsoft is, of course, cooperating fully with the EC. The
company's software may not be popular with various governments, but it is
certainly popular with hackers. Microsoft's latest piracy lawsuits were
filed against five companies in Alabama and Mississippi. All five resellers
continued to distribute unlicensed software despite being warned to stop,
according to Microsoft. The company is seeking a permanent injunction
against the violators and may demand monetary compensation. As if legal and
copyright threats weren't bad enough, the software giant also came under
attack online. On Tuesday, the company's corporate Web site received a
"syn-flood" attack. Different from the DDoS attacks that caused so much
excitement recently, a syn-flood attack causes a Web site server to
continually send requests asking for a visiting computer's identification,
and thus eating up the PC's processing capacity. The attack caused a very
minor slowdown of the company's Web site, and Microsoft technicians quickly
traced the Internet addresses from which the attack originated and shut them
out of the company's Web site. Another online attack Microsoft faced was
some substantial criticism from old-time geeks. That's nothing new, of
course, but this time it was in response to the company's MSN Internet site
dropping support for Usenet newsgroups. Microsoft said that the MSN site
already offered, and will continue to offer, other options to the
newsgroups, including chat, message boards, email, and Web pages. Newsgroups
will still be available from Microsoft's corporate Web site. Some analysts
pointed out that it's difficult, if not impossible, to make money from
Usenet newsgroups. Microsoft maintains that its decision was driven by "ease
of use and integration of services that we can now provide in a better way
to consumers" rather than by commercial concerns. Microsoft also came under
fire this week because of its software--again. This time, it's the ActiveX
installation program. Spanish Web developer Juan Cuartango discovered that,
on a Windows box with Internet Explorer 4 or 5, the program will change a
user's machine without getting permission from the user first. The Active
Setup control is designed to grant permission to all future ActiveX controls
coming from a site during installation. Microsoft stated that the software
was designed for users who are already interested in downloading Microsoft
software, but Cuartango believes the "back door" is too easily exploited.
Microsoft is providing a patch on its Web site. Finally, Microsoft actually
found itself in agreement with one of its fiercest rivals as both it and Sun
made equity investments of $25 million each in BroadBand Office, a
high-speed Internet and telecommunications company specializing in wiring
offices. According to the companies, it is the first time they have both
taken a stake in the same start-up.     
[ http://www.usdoj.gov/ ], [ http://www.microsoft.com/ ], [
http://europa.eu.int/ ], [ http://www.msn.com/ ], [ http://www.sun.com/ ]

Gilmore Eases Hard-Line Stance Against Net Taxes
In the standoff between opponents and boosters of Internet taxation, a
leading hard-liner in the permanent ban camp may have blinked. Virginia Gov.
James Gilmore (R), chairman of the Advisory Commission on Electronic
Commerce, a federal panel assigned to make a recommendation to Congress in
April as to whether Net sales and use taxes are warranted, has backed off
from his previously adamant support for a permanent ban. Embracing a
compromise proposal drafted by business interests, Gilmore now endorses a
plan to urge Congress to pass a five-year Internet sales tax ban that would
give states time to draft legislation for simplification of their tax
structures. Following the five year moratorium on new Internet taxation,
Congress could decide whether to empower states to collect new Net taxes.
Gilmore stresses that the compromise encourages simplification and
uniformity of state sales tax codes, but does not "exchange tax
simplification for tax increases on the Internet." Opponents of the measure
fear that the open-ended proposal to allow Congress to reconsider the issue
after five years implicitly paves the way for new future Net levies. US
Treasury Secretary Lawrence Summers counters that bricks-and-mortar firms
should not shoulder all of the burden of taxation while click-and-order
businesses find sanctuary in an Internet tax haven. 
[ http://www.ecommercecommission.org/ ], [ http://www.ustreas.gov/ ]

All Right, Who's Watching Who?!
The Federal Security Service, successor to the KGB, is alarming Russian
citizens by spying on the Internet. According to Russian Internet expert
Anatoly Levenchuk, "Most Internet providers in Moscow, including all the
large providers and many in the provinces, have opened a hole" to permit FSS
agents to look through. The newly revealed spying project, called the System
of Operative and Investigative Procedures (SORM-2), raises particular fears
among Russian free speech advocates, who see this as evidence that acting
President Vladimir Putin is trying to reverse hard-won reforms--an easy
charge, considering Putin served the KGB for 15 years. Such a thing could
never happen in the US, right? Okay, stop snickering. A report released by
the European Parliament describing Echelon, a ground- and satellite-based
system for eavesdropping on communications sent over phone lines, inspired a
huge outcry in Europe. According to the report, Echelon could be violating
the privacy of European citizens and may have been used in economic and
industrial espionage. The system is operated by the National Security Agency
in cooperation with Britain, Canada, Australia, and New Zealand. European
politicians denounced the system. A spokesperson from the US State
Department, while not admitting the existence of Echelon, pointed out that
"US intelligence agencies are not tasked to engage in industrial espionage,
or obtain trade secrets for the benefit of any US company or companies."
[ http://www.fss.ru/ ], [ http://www.europarl.eu.int/ ] 

ISPs Lose More Ground on Open Access
That whistling sound was the collective sigh of cable operators over the US
Federal Communications Commission's latest decision regarding open access.
Under existing law, cable companies must make some bandwidth available for
unaffiliated video programmers to lease. Last Friday, the FCC denied a
petition from Internet Ventures and its Internet On-Ramp subsidiary,
requesting that Internet firms be covered under the same leasing rights.
Granting ISPs access to high-speed cable connections would enable them to
compete head-to-head against cable concerns, effectively compelling the
cable companies to arm their own enemy. The FCC ruled that, despite
streaming video offerings, ISPs proffer services, such as e-mail, that do
not meet the commission's definition of programming. The ruling constitutes
yet another blow to open access proponents: although America Online was
reportedly on board for this petition, AOL has withdrawn its lobbying
support for federal open access legislation, due to a shift in its interests
following its merger agreement with cable titan Time-Warner. Smaller ISPs
drawn into the fray and then left in the lurch by AOL are basically taking
on Goliath without a slingshot, having little chance for survival unless
open access legislation is adopted.
[ http://www.fcc.gov/ ], [ http://www.ivn.net/ ], [ http://www.ior.com/ ], [
http://www.aol.com/ ], [ http://www.timewarner.com/ ]   

Marketplace and Portal Proliferation
One can hardly overestimate how popular portals and marketplaces have
become--at least with the businesses creating them. BellSouth and Commerce
One, for example, agreed to jointly develop a b2b online marketplace
targeted at the telecommunications industry. The joint venture would be
independent from both its parents, which would still own a minority stake in
the as-yet-unnamed company. Concur Technologies, Nortel Networks, SAFECO,
and Microsoft are aiming for a more general arena with their e-commerce
trading network, which will be aimed at the enterprise market. The trading
network will offer users discounts on supplies of up to 65 percent. Not
strictly a portal, Ford and Trilogy created a joint venture to run Ford's
consumer Web sites; the as-yet-unnamed company (hmm, there's a lot of that
going around) will also develop Web sites for Ford dealers. Excite@Home and
Dow Jones are also teaming up on a joint venture. This one, at least, has a
name: Work.com. It will target small- to medium-sized businesses, and the
two parent companies are planning an IPO for it sometime this year. Oracle,
as always insistent on going its own way, unveiled plans for a wireless
consumer Internet portal, OracleMobile. The portal will be accessible from
Web-enabled phones, two-way pagers, and similar devices, and offer content
and services from Amazon, eBay, E*Trade, Sabre, and UPS. SAP climbed aboard
the marketplace bandwagon, offering a new marketplace called MySAP
Marketplace, and forming a new company to provide application hosting for
small- and medium-sized businesses. Toyota, not to be outdone by Ford's
deal, is teaming up with i2 Technologies on something somewhat different: a
new company, iStarXchange, that will create an electronic marketplace for
the US automotive replacement parts industry. But wait, there's more: the
Sun-Netscape Alliance is also catching the wave. It's not creating a new
portal; it's planning to ship software, called iPlanet Portal Server, that
will allow businesses to create their own Web portals for customers,
partners, and employees. If this sounds vaguely familiar, it might be
because Sybase is planning to ship similar software, which will be called
Sybase Enterprise Portal.
[ http://www.bellsouth.com/ ], [ http://www.commerceone.com/ ], [
http://www.concur.com/ ], [ http://www.nortelnetworks.com/ ], [
http://www.safeco.com/ ], [ http://www.microsoft.com/ ], [
http://www.ford.com/ ], [ http://www.trilogy.com/ ], [
http://www.excite.com/ ], [ http://www.dowjones.com/ ], [
http://www.work.com/ ], [ http://www.oracle.com/ ], [ http://www.amazon.com/
], [ http://www.ebay.com/ ], [ http://www.etrade.com/ ], [
http://www.sabre.com/ ], [ http://www.ups.com/ ], [ http://www.sap.com/ ], [
http://www.toyota.com/ ], [ http://www.i2.com/ ], [ http://www.sun.com/ ], [
http://www.netscape.com/], [ http://www.sybase.com/ ]

Acquisition Fever
MedicaLogic, provider of a PC and Internet electronic medical records system
for the physician market, is pursuing a regimen that will provide patients
with access to their medical information over the Internet. The company
plans to purchase Medscape, home of the CBS HealthWatch Web site, in a deal
valued at approximately $720 million. The merger will enable patients to
consult with physicians, view test results and diagnoses, and order
prescriptions via the HealthWatch site. In addition, MedicaLogic will spend
about $352 million to acquire Total eMed, a provider of services enabling
doctors to dictate medical notes via the Net. Iona Technologies also hopes
to boost its fiscal health by swallowing an elixer of Watershed, a
Massachusetts-based start-up specializing in Java- and XML-based
applications that enable businesses to construct Web sites. The
prescription, a dose of which Iona will soon use to market Web portal
software, will run a typically expensive $13.2 million.
[ http://www.medicalogic.com/ ], [ http://www.medscape.com/ ], [
http://healthwatch.medscape.com/ ], [ http://www.totalemed.com ], [
http://www.iona.com/ ], [ http://www.watershed.com ]

Several Companies Find Ways to Expand
Alta Vista made big plans for Europe. The search engine will establish
itself in 18 more countries by the end of December; by 2002, about 136
million European Web surfers will be able to find local search content using
Alta Vista's offerings. Over the past year, the company brought search sites
online for Germany, the UK, France, and the Netherlands--most of these in
the past four months. America Online, meanwhile, is hoping to expand its
presence in Germany's academic world. The company's German subsidiary plans
to give heavy discounts on its Internet access fees after 2 PM on weekdays
to teachers and students in Germany. Car rental company Avis also put Europe
in its sights. Many rental companies sell their cars after a certain point;
Avis Europe is looking to do this online, first in Britain and then in the
rest of Europe. Britain seems a particularly ripe market, because consumer
groups raised a furor about the price of new cars there--up to 40 percent
more expensive than in the rest of Europe. Cars need gasoline of course--and
Priceline thinks it has an answer to that one. The company will offer
name-your-price gasoline at its Web site. Customers will give their price
offers and choose three local gas stations, where they will get their
discounted gas if their bids are accepted. PSINet, an ISP with a major
expansion bug, did something different this week. Instead of purchasing yet
another ISP, it put $1 billion into a corporate venture program. The
program, called PSINet Ventures, is geared for Internet start-ups and will
exchange Internet services for equity in the start-ups. PSINet claims it is
the first company to offer such a "services for equity" model to beginning
Internet ventures.  
[ http://www.altavista.com/ ], [ http://www.aol.com/ ], [ http://www.aol.de/
], [ http://www.avis.com/ ], [ http://www.priceline.com/ ], [
http://www.psi.net/ ]

Two Companies Go Mobile
Aiming for the European mobile market--which is potentially larger than the
one in the US--Amazon made a deal with Nokia and Motorola. Users of mobile
Internet phones made by those two companies will be able to access a Web
site that will allow them to purchase books or CDs simply by typing in a
user name and password, rather than by making a voice call. Since the call
will be charged at the data rate rather than the voice rate, users should
save some money on the service. In the US, Ticketmaster Online-CitySearch
created a wireless unit to target its online ticketing service at users of
Palm Pilots, Web-enabled cell phones, and other wireless and WAP products.
[ http://www.amazon.com/ ], [ http://www.amazon.co.uk/ ], [
http://www.nokia.com/ ], [ http://www.motorola.com/ ], [
http://www.ticketmaster.com/ ]

Your Government At Work on the Internet
Sometimes the government steps in quickly, sometimes it keeps its hands off,
and sometimes it needs a little nudge. The American Society of Travel Agents
seems prepared to provide more than just a nudge. Its members are up in arms
over a 27-airline alliance that threatens to reduce their business. First
formed in November, and including major players United, Delta, Continental,
US Airways, and others, the alliance's goal is to increase Internet sales of
plane tickets and steal business from Travelocity and Expedia. The ASTA
fears the alliance will fix prices and boycott travel agents, and wants the
Department of Justice to investigate. Meanwhile, the US government is
prosecuting a case concerning a rather different threat. The Wire
Communications Act of 1961 outlawed placing or accepting bets over phone
lines--and though the law was made before the Internet was a gleam in its
founders' eyes, it could technically apply to online gambling. Jay Cohen, an
American citizen who runs an Antigua-based gambling site, is testing that
law. The US government charged him and 20 others with its violation, and he
is contesting the charges. Cohen believe he did not break any law--all bets
are received at a server located in Antigua, which is a sovereign state
where online gambling is legal. The case could create a wide precedent,
bringing up such questions as whether a non-US Web site can legally sell a
US citizen a drug not approved by the FDA. Meanwhile, a private company
found an online method of getting US citizens more involved in government.
Election.com bought NewVoter.com and will begin offering voter registration
on the Web. In March, it also will give about 800,000 Arizona democrats the
chance to vote online in the state's primary election. Of course, in many
cities voters do play an important role in government, not just in getting
officials elected but in ballot initiatives. In Holland, Michigan, a
controversial ordinance that shared space on the ballot with the Republican
presidential primary would have obligated the public library to install
Internet filters to deny children access to certain Web sites. The
ordinance, which was reportedly the first such ballot measure in the US, was
defeated by a small but respectable margin. 
[ http://www.delta-air.com/ ], [ http://www.travelocity.com/ ], [
http://www.expedia.com/ ], [ http://www.usdoj.gov/ ], [
http://www.election.com/ ], [ http://www.newvoter.com/ ]

Companies Link up in Data Synchronization Alliance
The computer and handheld industry lacks an open universal standard for
synchronizing data across different computer platforms--and Psion is doing
something about that. The handheld computer maker is joining with IBM,
Nokia, Motorola, Lotus, Palm, and Starfish Software for the SyncML
initiative, to develop such a standard. The protocol would be based on XML
and allow data to be moved easily between operating systems and devices. The
alliance, which according to Psion is "open for industry partners to join in
developing the specification," expects to deliver a SyncML specification
before the end of the year. Microsoft made itself conspicuous by its absence
from the list of founding members--but one shouldn't be too surprised, since
the software giant makes the Windows CE mobile operating system, a major
rival of Psion's EPOC OS. 
[ http://www.psion.com/ ], [ http://www.ibm.com/ ], [ http://www.nokia.com/
], [ http://www.lotus.com/ ], [ http://www.palm.com/ ], [
http://www.microsoft.com/ ]

IPO Anticipation
Israel-based RADVision revealed plans for an initial public offering of
stock in the US. The real-time voice, video, and data product supplier hopes
to sell 3.8 million shares of stock in a range of $11 to $13 per share.
Tom.com, based in Hong Kong and run by tycoon Li Ka-shing, is doing its IPO
in Hong Kong--and is exciting so much interest it is estimated that only one
in five of the 1.5 million applicants to purchase shares will actually be
able to do so. Several other companies planned IPOs for this week. Caldera
Systems said it will sell five million shares in a range of $7 to $9 per
share for its IPO; thanks to the Linux connection (Caldera makes software
based on the operating system), the stock is almost certain to go a good bit
higher than that on its first day. Nextel Partners, a unit of Nextel
communications, hoped to raise up to $423 million by offering 23.5 million
shares in a range of $16 to $18 per share. Carrier1 International, a
European voice and data service provider to telecom firms, hoped to raise
$318.8 million with its IPO. Intersil, a chipmaker, looked to sell 20
million shares in a range of $18 to $20 per share, which would raise up to
$400 million.
[ http://www.radvision.com/ ], [ http://www.tom.com/ ], [
http://www.calderasystems.com/ ], [ http://www.nextelpartners.com/ ], [
http://www.carrier1.com/ ], [ http://www.intersil.com/ ]    
Outage Ticker: Sabre, Earthlink, NDB; H&R Block Back Up
Sabre Holdings, which runs the world's largest online airline reservations
system, reported problems with two network backbone routers on Tuesday. As a
result, its system went offline for two hours, becoming inaccessible to
travelers, travel agents, and major airlines. EarthLink's 1.8 million users
experienced a service disruption Wednesday that lasted just under an hour
because of authentication errors: the company could not verify that users
were who they said they were. National Discount Brokers' Web site went
offline for more than an hour Thursday, for which it blamed hackers. Now for
some good news: after taking down the tax preparation part of its site last
week to fix a glitch that caused some users to see other users' personal
information, H&R Block finally effected repairs and brought that part of its
site back up on Monday.    
[ http://www.sabre.com/ ], [ http://www.earthlink.com/ ], [
http://www.ndb.com/ ], [ http://www.hrblock.com/ ]

Cyberscape Dee-Lite: How About Some Milk and Cookies?
One often expects to find the truly bizarre on the Internet--but how about
something as prosaic as milk and cookies? CookiesNMilk is a Web-based
delivery service specializing in fresh-baked cookies (delivered warm),
packaged cookies, and milk. It plans to add cookie dough, ice cream, vegan
cookies, and soy milk to its repertoire. Created about a year ago, with
customers on college campuses, the San Francisco-based company expanded its
service to include high-tech clients such as PC World and Bluemountain.
Orders must be placed a week in advance. And here's a bit of information as
refreshing as the cold milk it delivers: though CookiesNMilk is an Internet
firm, it is turning a profit. The company seems to have tapped into
something almost primal: thanks to strong demand outside of its delivery
area, the three founders might set up franchises in Southern California and
Chicago. Here's hoping the entrepreneurs don't overlook southern New Jersey!
[ http://www.cookiesnmilk.net/ ] 


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---------- End Forwarded Message ----------



Missy Harvey
Computer Science Librarian
Engineering & Science Library
Carnegie Mellon University
Pittsburgh, PA  15213

http://www.library.cmu.edu/usr/missy/

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      (_/'~~      ''''(;

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