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Date: Friday, May 05, 2000, 2:17 PM -0400
From: Cyberscape Digest <cyberscape@faulknerinfo.com>
To: @unspecified-domain
Subject: Faulkner's Cyberscape Digest   05/05/00








CyberScape Digest 

CyberScape Digest is a weekly roundup of top internet stories. This issue
covers events from Monday 05/01/00 through Friday 05/05/00. 



Microsoft Plays for Time, Makes Deals
The worst-kept secret in recent legal history received confirmation on
April 28 when the Justice Department argued Friday that Microsoft should be
broken into two companies because conduct remedies won't change the
software giant's behavior. In support of its argument, the DoJ cited an
e-mail from Bill Gates date July 11, 1999, in which Gates allegedly
suggests redesigning Microsoft software to harm handheld competitors such
as Palm. Microsoft recently launched its Pocket PC, the company's third
attempt at a handheld device. So how did Microsoft react? The company said
it will request more time on May 10 to examine the breakup proposal in
order to prepare a defense and to gather more data. If Judge Thomas
Penfield Jackson grants Microsoft's request, the company could postpone the
determination of a final remedy for months. Still, as usual, Microsoft
refused to let legal matters get in the way of business. Hoping to build
greater security into its Windows operating system, Microsoft struck a deal
with I/O Software to use biometric devices, including fingerprint or eye
scanners, into future versions of the OS. Microsoft also linked up with
CAIS Internet to create a co-branded portal designed for travelers. The
portal will distribute content through CAIS' broadband networks in the
hospitality industry. Microsoft agreed to invest $40 million in CAIS, and
CAIS agreed to put Microsoft's BackOffice on its network, and to use
Hotmail and MSN's services.    

  

Bunches of B2B Bazaars Being Built
The craze for building B2B online marketplaces continued to spread through
a range of industries. In fact, B2B marketplaces themselves began forming
alliances. ChemConnect, a B2B Internet exchange for chemicals and plastics,
created an alliance with fob.com, a builder and operator of purchasing hubs
for manufacturing. The two companies characterized the move as a first step
toward market cooperation. In a move that uses the Internet to help create
the devices that access the Internet, several major computer makers and
suppliers teamed up to form an independent online marketplace.
Participating companies include Compaq, Hewlett-Packard, Gateway, AMD,
Quantum, and seven others. Noticeably absent from the agreement, IBM
revealed plans to create a rival online marketplace; the venerable computer
company already signed up nine partners. Working to make the Internet a
more hospitable place, rival hotel chains Marriott and Hyatt agree to team
up to create an online marketplace to link up the hospitality industry's
purchasers and suppliers. With plans to go live later this year, the B2B
marketplace will feature everything from toiletries to furniture. B2B even
acquired some heavy metal fans when Alcoa, Allegheny Technologies, Reynolds
Aluminum Supply, and five other metal companies formed an online joint
venture. Dubbed MetalSpectrum and scheduled to go live in September, the
venture will provide specialty metals and business services to companies in
the metals industry. Finally,  Commerce One received backing from a group
of Middle Eastern investors to expand into that region. Commerce One Middle
East, to be based in Dubai, will market a system to conduct commerce on the
Internet to Middle Eastern businesses. 

  

COPPA Creates Consequences
The Children's Online Privacy Protection Act went into effect in the US
just two weeks ago and is already having an effect--though possibly not the
one its sponsors intended. The Act prevents Web sites from collecting
personal information from anyone under the age of 13 without parental
consent. Instead of seeking such consent, many Web sites decided to shut
out younger users. America Online closed the accounts of all users of its
ICQ service under the age of 13. The policy change affected not only
children, but adults who lied about their age. Those users cannot get their
accounts back unless they prove they're over 13. MSN also shut out Hotmail
users under 13. Yahoo requested its customers to provide a credit card
number, full name, zip code, e-mail address, and country of residence, to
establish age. Privacy advocates complained that the information Yahoo
requested represents an overreaction, but Yahoo replied that it was legal
and necessary to collect the information. 

  

Making Deals, Taking Stakes
America Online discovered that "Coke adds life"--or at least money. The
Internet giant and the soda giant agreed to an online and offline marketing
alliance valued at $64 million. Coca-Cola will promote AOL's products and
services to its customers using its distribution network, while AOL will
market Coke's products through its online interactive brands. Gannett made
a $270 million investment in ZapMedia, an interactive television company.
In return, ZapMedia will feature Gannett's USAToday.com as the national
news source on its ZapStation Internet appliance. Gannett also gained an
equity stake in the company. IBM was very busy. Along with Compaq, it
invested $100 million in Safeguard Scientifics. Safeguard said it would use
the money to purchase Internet infrastructure companies. IBM also made a
deal worth $150 million with Kinko's. The five-year agreement lets Kinko's
install IBM's Infoprint 2000 digital-printing systems, which will allow the
copying company to accept complicated document orders over the Internet.
Intel agreed to invest $150 million in a joint venture with Excalibur
Technologies to create an interactive media services company. Intel will
own 49 percent of the new company's voting stock. Excalibur's entire
business operations will be combined with the venture, which will develop
technologies for the production and delivery of content over the Internet.
They say one should never deal with monsters, but that clearly doesn't
apply to Netplex, which signed a two-year co-branding and profit-sharing
deal with TMP Worldwide, the owner of Monster.com. Monster gained warrants
to purchase three million shares of Netplex, which could be worth up to $24
million. Additionally, Netplex will pay $5 million plus 25 to 30 percent of
the profits generated by the deal. In return, Monster will add Netplex's
MyBizOffice virtual office management service to its Web site. MP3.com
became the exclusive provider of MP3 content for LookSmart's MP3 Center.
Oracle and Panasonic agreed to work together to create systems which help
broadcasters, communications carriers, and other service providers to
product, organize, and manage content for digital interactive services. In
a deal sure to raise interest in tech stocks even higher, the London and
Frankfurt stock exchanges unveiled plans for a full merger and a
partnership with the NASDAQ stock market. The announcement moves the
technology-heavy NASDAQ closer to its goal of round-the-clock trading. Once
the deal meets with regulatory approval, NASDAQ will give European
investors the chance to trade NASDAQ 100 stocks, while 400 European stocks
would gain permission to be traded in the US. Finally, T-Online, the ISP
for Deutsche Telekom, is rumored to be in talks to purchase free UK ISP
Freeserve. If true, the merger would create an ISP with seven million
users. 

  

At Last, A New Top Level Domain Name
At the International Trademark Association meeting in Denver, MarketPlace
Domain unveiled ".mp," a new top level domain. The new TLD is designed to
be used as a "trademark centric" domain for companies that wish to assure
Web surfers that they're dealing with the real McCoy. Proctor &Gamble
claims the distinction of being one of the first customers for the new TLD;
the company purchased 25,000 ".mp" domain names. MarketPlace Domain will
ascertain that registrants truly possess a trademark to the name they want
through its alliance with NameProtect.com, a trademark research and
registration service.  

  

Beware the Love Bug!
The phrase "Love Bug" received a whole new meaning when a computer virus by
that name wreaked havoc at corporations and government agencies in Asia,
Europe, the UK, and US; victims included Microsoft, the US Department of
Defense, and London's House of Commons. Spreading practically overnight,
the virus has already inflicted more damage than Melissa, infecting more
than a million computers and causing economic losses worldwide of more than
a billion dollars. Originating in the Philippines, the virus shows up in an
e-mail with the subject line "I love you." Its attachment,
LOVE-LETTER-FOR-YOU.TXT.vbs, converts .mp3, .jpb, and other files to .vbs
files containing the virus. Not surprisingly, though anyone can receive the
message, the bug uses Microsoft Outlook to propagate--it sends copies of
itself to everyone in the victim's Outlook address book. The virus also
steals passwords and sends them to an account in the Philippines. The FBI
is investigating. They do have the start of a lead; the source code of the
worm identifies the creator as "Spyder," includes his e-mail address, and
the statement "i hate to go to school." Of course, the information is
probably a red herring; it's unlikely a virus writer would leave such a
blatant clue to finding him. Symantec and Network Associates both posted
downloadable files protecting against the Love Bug. In a strange side note,
the Love Bug even tried to infect fax machines; it caused no damage to the
machines, merely causing them to print out eight pages of raw code.
Copycats are already being reported; one has a subject line that reads
"Susitikim shi vakara kavos puodukui...," another has a subject line that
says "fwd: Joke," and a third says "Mother's Day Confirmation Order" in the
subject line. Antivirus companies expect to see more variants over the next
few days. 

  

Government, Regulatory Agencies Affect the Internet
It pays to avoid tardiness. Because it didn't quickly answer questions from
the National Association of Securities Dealers, online brokerage house
E-Trade must pay the regulatory group a $20,000 fine. Imagine if online
brokerage houses had to pay a fine every time they didn't answer their
customers' questions in a timely manner...Continuing on the topic of online
trading, the Federal Trade Commission and the Securities and Exchange
Commission settled with 14 individuals and online trading firms. Without
admitting or denying wrongdoing, the firms and individuals agreed to drop
claims that their trading systems bring users low-risk, easy money. Eleven
of the 14 will also pay fines of $10,000 each. Three firms--CompuTrade LLC,
Granite Investments, and Day Trading International--will have to include
the sentence "DAY TRADING involves high risks and YOU can LOSE a lot of
money" in all of their advertising. The FTC is so busy that it's already
investigating another online matter--this one with possible antitrust
implications. Remember the B2B Internet site that Ford, General Motors, and
Daimler Chrysler are working on? The commission is very interested, and
rumors are flying that it might target other B2B marketplace sites as well.
Meanwhile, in response to recommendations from the Advisory Commission on
Electronic Commerce, the House Judiciary Committee passed a bill granting a
five-year extension to the moratorium against new and discriminatory
Internet taxes. This is only the first hurdle for the bill, of course; the
Judiciary committee will hold a hearing on May 17 to discuss ways of
settling the issue of whether to tax Internet transactions. Finally, the
White House itself weighed in when President Clinton proposed a legislative
package that would grant online consumers greater control over their
personal information. The plan strengthens consumers' ability to keep their
financial, medical, credit card, and checking account information secret.
Companies holding such information (such as an insurance company) would be
required to receive specific consent from the consumer before sharing it
with anyone else. 

  

CEO Wanted, Should Have ICANN-Do Attitude
The Internet Corporation for Assigned Names and Numbers began searching for
a new president and CEO to succeed Michael Roberts, who agreed only to stay
aboard long enough to get ICANN started and stable. ICANN hopes to fill the
position before the end of the year. A full description of the
qualifications and responsibilities for the position is available at
ICANN's Web site, for those considering a change in position. Be warned:
candidates should have "demonstrated leadership, managerial competence,
technical credibility, and international experience" as well as "patience,
persistence, an open style, and an ability to generate an active-minded
consensus around difficult issues." And that's just the short list.  

  

Piracy Ring Indictment Snags Intel, Microsoft Employees
A federal grand jury in Chicago indicted 17 suspected members of a global
software piracy ring. Those indicted included a former employee of
Microsoft and five Intel employees. The suspects stand accused of
infringing the copyrights of more than 5000 computer programs, including
operating systems, word processing and data analysis applications, games,
and MP3 music files. Twelve suspects are believed to belong to the "Pirates
with Attitudes" (PWA) ring which government investigators infiltrated last
year. The ring distributed the pirated software through a Web site located
in Quebec. The Intel employees allegedly shipped hardware to the Web site
to increase its storage capacity, in exchange for access to the pirated
software; the Microsoft employee allegedly supplied pirated copies of
Microsoft software to the Web site, and granted unauthorized access to
Microsoft's internal network. The defendants face five years in prison and
a $250,000 fine if convicted. 

  

AOL Time Warner Unveils Executive Lineup
Those impatiently waiting to see how AOL and Time Warner's two management
teams will combine to form one company need wait no longer. AOL Chairman
and CEO Steve Case will take the position of chairman of the merged
company. Gerald Levine, Time Warner Chairman and CEO, will become CEO of
the company. Bob Pittman, AOL president and COO, will share the COO
position with Dick Parsons, Time Warner's president. Ted Turner, vice
chairman of Time Warner, will continue to hold that title with the company
after the merger, and will also be a senior advisor. AOL and Time Warner
still plan to complete their merger this fall. The merged company, AOL Time
Warner, will organize itself around its core growth drivers: advertising,
subscription services, commerce, and content. 

  

Big Brother Gains English Cousin
The UK government acknowledged that it plans to locate an Internet
monitoring center at London's MI5 headquarters. Code-named the government
technical assistant center (GTAC), will be an extension of the
international Echelon network and is expected to go live by the end of the
year. While the center will monitor all Internet e-mail by default, a Home
Office spokesperson was quoted as saying that there is no way that the
Security Services will be checking everyone's e-mail. A warrant will still
be required before an individual's e-mail can be monitored. The UK
government designated $40 million to fund the center, and plans to obligate
major ISPs to pick up the communications network bill. UK civil liberties
groups expressed their disapproval of the plan. Casper Bowden, the director
of the Foundation for Information Policy Research, maintains that the plan
will "give rise to a culture of suspicion by association." 

  

We Love the Smell of Lawsuits in the Morning...
If lawsuits actually did disperse an aroma, Microsoft would have had
company while it shopped for clothespins for its nose. Bloomberg News got
charged with libel by Hitsgalore.com, an Internet advertising firm.
Hitsgalore is seeking $500 million in damages because "defamatory" articles
by Bloomberg allegedly caused the company's stock to drop by more than 50
percent in one day. The articles stated that Hitsgalore founder Dorian Reed
failed to reveal accusations of fraud against him from a previous job.
Metallica gave Napster a list of more than 335,000 individuals whom it
claims used Napster's software to break copyright laws by sharing the
band's copyrighted songs over the Internet. The heavy metal band accused
the software company of massive copyright violations and asked that Napster
bar the individuals on its list from the company's file-swapping service.
Napster has previously stated that it will get rid of users specifically
fingered as violating copyright laws. Napster agreed to review the list,
and "If the claims are submitted properly, the company will take the
appropriate actions to disable the users Metallica has identified,"
according to the company's lawyer. In a similar lawsuit, Judge Jed Rakoff
of US District Court for the Southern District of New York ruled in favor
of the Recording Industry of America in its lawsuit against MP3.com.
According to the judge and the RIAA, MP3.com broke copyright law by
building an online data base of more than 80,000 copyrighted albums, and is
now "liable for copyright infringement." The suit originated in January as
an effort to shut down MP3's my.mp3.com service, which lets users listen to
recordings from the data base if they own an original copy of the
recording. Adding a strange bit of humor to online copyright infringement
lawsuits, Internet pet supply company Pets.com filed a suit against Robert
Smigel, creator of Triumph the Insult Comic Dog, claiming that the dog,
which is a staple of NBC's "Late Night With Conan O'Brien Show," creates
"an undesirable, unwholesome, and unsavory mental association" in
consumers' minds when it mentions Pets.com's Sock Puppet. Worse, Smigel has
claimed that the Sock Puppet is a rip-off of Triumph. While the defendants
have remained quiet, Triumph--and presumably Smigel--are expected to break
their silence on the topic of the suit sometime this week. In an attempt to
avoid a lawsuit, Pacific Bell added a disclaimer to its "Web hog"
commercials. The commercials illustrate the point that, as more users sign
up for cable modem connections in a single neighborhood, the speed of the
connections slow down, because they're shared. The commercials then point
out that DSL connections are not shared. Excite@Home threatened a lawsuit
against Pac Bell for deceptive advertising--because Pac Bell did not make
it clear that DSL connections are shared once they reach the phone
company's local switching facility. Reacting to the disclaimers,
Excite@Home thinks they are "a nice gesture," but that the ads are still
misleading. 

  

Viruses and Vulnerabilities Leave Various Victims
A security feature in Filemaker's Web Companion "may not be reliable,"
according to a statement from the company. The software allows users to
post Filemaker data bases on the Internet; the security feature is supposed
to prevent users denied access to a particular data base from viewing its
data. The company expects to post a fix within a week; until then, it
recommends the use of other forms of security, such as passwords. Those
disturbed by February's successful distributed denial-of-service attacks
against prominent Web sites gained something else to worry about. A new
hacking tool, dubbed "Mstream," combines several hacking programs,
including Trinoo, TFN2K, Stacheldraht, and Shaft to create more powerful
attack software. According to an analysis by Dave Dittrich of the
University of Washington, the program can launch a successful attack with
fewer computers.  Even gamers aren't safe. Id Software, maker of the
popular Quake games, revealed that Quake III contains a security flaw that
can permit a malicious hacker running a Quake III server to read and
overwrite files on the computer of any player connected to that server. Id
Software has issued a patch. 

  

Outage Ticker: Sprint, E-Stamp, Cable and Wireless
Sprint reported that on Tuesday at 3:10 PM, the sl-gw12-fw router in Fort
Worth experienced an outage. All customers directly connected to the router
experienced a temporary loss of connectivity. No estimated time to repair
was given. Online stamp company E-Stamp reportedly experienced several
outages this week, inconveniencing customers. Finally, in Australia, Cable
and Wireless dealt with an outage Friday caused by two fiber cuts. The
company restored service in two hours, but the outage reportedly slowed
down the Sydney stock exchange.  

  

Cyberscape Delight: Taking Stock of Political Races
With stock markets taking investors on a roller coaster ride, some might
want to turn to something a little tamer, like politics. The Iowa
Electronic Markets, founded in 1988 as an academic experiment, offers
shares in politicians for real money. In effect, it lets politically
interested persons invest in favorite candidates--no more than $500 by any
one trader--and gain or lose real money. For instance, Rudy Giuliani's
stock traded at $0.50 per share until he reported suffering from prostate
cancer, at which point it tanked worse than Microsoft's stock. Later, it
recovered to $0.30 per share. Investors can put their money down on
candidates for the House, Senate, Presidency, Mexican Presidency, and even
whether Congress will be primarily composed of Democrats or Republicans
after the upcoming elections. Its proponents claim the IEM predicts winners
and losers more accurately than opinion polls, pointing to its close
prediction of Clinton's win in 1996. Selling at the right time can make
money for savvy investors; more than one person made money on John McCain
before he threw in the towel. So far, 6000 traders put up $125,000 on
various races. The White House is said to check the site daily; so far,
Gore is four cents ahead of Bush, and in New York, Hillary Clinton and Rudy
Giuilani stand within a dime of each other. 

  

*** Terri Wells, Faulkner Information Services *** 

  

CyberScape Digest, Copyright 2000, Faulkner Information Services. All
rights reserved. 




Please contact me with any problems or questions 
  
Thank You
flash@faulkner.com

---------- 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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