February 2011

When the Internet Nearly Fractured, and How It Could Happen Again

When the entire country of Egypt was forced offline by its government last month, it served as a global wake-up call that the Internet is a more fragile medium than we imagine it to be. What happened in Egypt was particularly striking, but other, subtler tests of the Internet's resilience abound.

Turn your eye to the domain name system, for example. Commonly referred to as DNS, the domain name system is the obscure but almost unimaginably important process whereby memorable names like "TheAtlantic.com" get translated into the numbers that actually pinpoint The Atlantic's place on the Internet. There, in the innards of the Internet, there's controversy brewing. The Department of Homeland Security's Immigrations and Customs Enforcement division and the Department of Justice have been targeting domain names for takedowns, and the United States Senate is considering a bill that would empower the Attorney General to blacklist website names from the Internet's directories. But this isn't the first time that DNS has been a contested space. In one particularly curious episode from the modern Internet's early days, a man named Eugene Kashpureff ignited a battle over the future of the global network that brought him face-to-face with the Royal Canadian Mounted Police.

AT&T, Faced With Verizon Threat, Becomes More Like Groupon

Is AT&T's new venture into location-based deals -- the first such move by a US carrier on such a scale -- a bit of necessary improvisation, having lost its lucrative iPhone exclusivity? "ShopAlerts by AT&T" is a new service, the first of its kind launched on such a scale by a major mobile carrier in the U.S. AT&T customers in New York, L.A., Chicago, and San Francisco can opt into the service, which offers deals based on location. It works like this: AT&T sets up a "geo-fence," a virtual perimeter around a shop or other area, and if you wander into that region, you'll get a text alert from one of AT&T's partners that's offering a deal. (AT&T's initial partners include KMart, JetBlue, and Kibbles 'n Bits, so be on the lookout when nearing a KMart, airport, or pet store.) By offering the place-based deals, AT&T is venturing into a hot market--the daily deals model set off by Groupon, as well as the location-based buying offered by Foursquare and Facebook Deals, active now on iPhone and Android. Given that the deals are ultimately offered through mobile phones, it makes sense for carriers to want to get in on this market.

Health Systems Must Boost Patient Education On EHRs

Healthcare providers and hospital staff should take a more active and defined role in helping patients understand and use electronic health records (EHRs) and personal health records in order to achieve meaningful use.

That was the conclusion of PricewaterhouseCoopers (PwC) Health Research Institute's report, "Putting Patients into Meaningful Use." According to PwC's research, even though more health systems are involving physicians, health insurers, and patients in their meaningful use initiatives, they seem less confident about achieving full adoption within the government-specified time frame. By 2015, health systems that have not achieved Stages 1, 2, and 3 EHR compliance will see their Medicare reimbursements decrease. But the report found that only 82% of respondents -- down from 90% last year -- said they will achieve meaningful use before penalties kick in. As health systems finalize the workflow data requirements, they appear to be more concerned about the meaningful use complexities and time needed for implementations.

Department of Justice threatens to nix Google merger

Apparently, the Justice Department has made it clear to Google that it’s willing to go to court to block its acquisition of travel software-maker ITA – and Google has responded by stepping up negotiations to save the deal.

Sources say that a deal between Google and DOJ’s antitrust lawyers could be “days away,” but others also warn that negotiations about the $700 million acquisition could fall apart at any time. Among conditions on the table are possible provisions under which Google would license ITA software to rivals and others aimed at easing industry concerns that Google will use its search dominance to unfairly disadvantage rivals in the online travel business.

Antitrust chief focuses on innovation

A veteran of the tech industry’s antitrust wars, Christine Varney was in the middle of another one last year as cable giant Comcast was seeking Justice Department approval for its acquisition of NBC Universal.

The nation’s top antitrust enforcer, Varney zeroed in immediately on the potential competitive hurdle to the deal at a meeting with public interest groups in her office. “She very quickly honed in on the online video problem,” Corie Wright, policy counsel for Free Press, recalled of the meeting last summer. “That was a good sign. That showed she was being proactive in looking at the far-reaching implications of the merger.” Varney’s office impressed public interest lawyers by working with the FCC to wrangle concessions out of Comcast and NBC that recognized the emerging online video market as a potential competitor to cable in the digital age. The companies agreed to requirements to make programming available to online video distributors on the same terms they offer to cable providers. “We don't have a particular dog in that fight or a particular vision of how it should turn out,” Varney said, “but what we are concerned about is that the market — and the market participants — be able to continue to innovate.”

Microsoft Wants You to Control Your Phone by Touching Yourself

Kinect's "using your body as a controller" feature was one of technology’s big hits last year -- not only have users had fun dancing up a storm and racing cars with official Kinect games, but a whole community has emerged to dream up new and inventive ways of hacking the system that tracks 20 joints in your body.

But if you think that's Microsoft's last foray into unconventional means of controlling digital devices, think again. The Seattle giant has a whole team of smarty-pants researchers tasked with imagining new and freaky ways we might one day turn on our mp3 players, dial phones, and, who knows, maybe even power up a microwave for a little burrito action. One of the projects they’re working on is "Skinput," a system that would allow you to control devices simply by hitting specific points on your arm. Not a device on your arm. Just your arm itself.

February 28, 2011 (Getting Net Access to All)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, FEBRUARY 28, 2011

Sorry we're late.


UNIVERSAL SERVICE/UNIVERSAL BROADBAND
   The FCC's role in getting Internet access to all
   GOP stopgap measure slashes $29 million in rural broadband funds
   Consumer group wants to tax Netflix to pay for rural broadband
   Full Deployment of Rural Wireless Broadband will Create and/or Retain 117,000 Jobs
   USF Reform Battle Lines Being Drawn

INTERNET/BROADBAND
   Peers or not? Comcast and Level 3 slug it out at FCC's doorstep
   NTIA Request for Comments on the Internet Assigned Numbers Authority Functions
   Quinn not ready to sign Internet sales tax bill

TELEVISION/RADIO
   Judges Hard to Read In FCC Ownership Case Argument
   Fox News Chief, Roger Ailes, Urged Employee to Lie, Records Show
   PBS Faces New Threat in Federal Budget
   FCC Explores Improved TV Ratings, V-Chip
   Lobbying Intensifies As Cable Firms Aim To End Retransmission Battles
   Comcast, NBC deal opens door for online video
   Comcast, NBC deal opens door for online video
   At Comcast, No Fear of Web Video
   Cablers Ready For Interactive Advertising
   NCTA Seeks To Protect Us From Terrorists Too Lazy To Search Cable Public Files
   Ex-radio engineer for Gaddafi regime uses newfound freedom to broadcast encouraging messages to rebels in Tripoli

CONTENT
   Google makes major change in search ranking algorithms
   Google's Search Cleanup Has Big Effect
   At Comcast, No Fear of Web Video
   E-books are a hot story at libraries
   Hollywood Studios Lose Appeal on Australian Piracy Lawsuit
   Bloggers Lead with Deficit, Egypt

PRIVACY
   Google's Latest Privacy Flub: Asking Kids For Partial SS Numbers
   Web's Hot New Commodity: Privacy
   PubMatic: Consumers Confused About Online Tracking
   Cablers Ready For Interactive Advertising

LABOR
   President Obama tasks tech execs with social issues, not just the economy
   Talent War Crunches Start-Ups

DIVERSITY
   Rep Rush 'grossly underwhelmed' by FCC's 'lip service' on civil rights issues

ADVERTISING
   Cablers Ready For Interactive Advertising
   PubMatic: Consumers Confused About Online Tracking
   85% of Marketers Going Mobile

STORIES FROM ABROAD
   Ex-radio engineer for Gaddafi regime uses newfound freedom to broadcast encouraging messages to rebels in Tripoli
   Hollywood Studios Lose Appeal on Australian Piracy Lawsuit

MORE ONLINE
   White House wants 'disruptive' shift in IT strategy, Kundra says
   Former colleagues laud new White House deputy CTO for innovation
   Hey Pepco: There's an app for that
   Technology Industry Groups Increase Advocacy With New Website
   Maine laptop program offers lessons in ed-tech implementation

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UNIVERSAL SERVICE/UNIVERSAL BROADBAND

FCC'S ROLE IN UNIVERSAL BROADBAND
[SOURCE: Washington Post, AUTHOR: Malkia Cyril]
[Commentary] In a post-Civil Rights era, we should be beyond a time when there were such clear gaps in the rights and opportunities for different members of our society. Unfortunately, the Feb. 17 news article "Survey maps out digital divide" confirmed what low-income Americans have known for a long time: America has work to do before our vision of an equal society is a reality. The data released by the Commerce Department definitively shows that large sections of the country have little to no access to high-speed Internet service. This means drastically fewer opportunities for millions of Americans to take classes, apply for jobs or attract employers to struggling areas. To make sure that efforts to increase Internet access are effective, we need the Federal Communications Commission to have the authority to set real and meaningful rules for Internet service providers to benefit all Americans. The Senate must counteract the House's recent mistake and block the amendment that would strip the FCC of its ability to do its job. When it comes to the digital divide, the FCC is our best chance of getting an effective and equitable solution.
benton.org/node/51520 | Washington Post | see original article
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TEMP BUDGET PROPOSAL
[SOURCE: The Hill, AUTHOR: Sara Jerome]
A stopgap measure that would fund the government until March 18 slashes broadband subsidies at the Agriculture Department. The short-term Continuing Resolution, designed to avert a government shutdown, finds over $4 billion in cuts by slashing $1.24 billion from government programs and $2.7 billion in earmarks. That includes $29 million in broadband loan subsidies administered by the Agriculture Department, which were "duplicative of several other federal programs," according to GOP description of the plan. "The Agriculture Inspector General has uncovered abuses and inconsistencies in the program as well as a lack of focus on the rural communities it is intended to serve," it said. The provision is unlikely to meet pushback as President Obama had included this cut in his 2011 budget request. The stopgap measure aims to evade the controversies of the House spending passed last week, which axed funds for top Democratic priorities. The stopgap measure gives the Senate and House time to negotiate a deal funding the government at reduced levels further into the year. Senate Democrats have shown signs of support.
benton.org/node/51510 | Hill, The
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NETFLIX AND USF
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Mark Cooper, director of research for the Consumer Federation of America (CFA), says Netflix should have to pay into the Universal Service Fund. "The Internet is not an infant industry anymore. It can certainly bear the burden of making sure that wires and the communications mediums are there," Cooper said. Phone companies pay into the Federal Communications Commission's $8 billion telecom fund, which subsidizes phone service in high-cost and rural areas. They write off the cost on consumer telephone bills. The FCC is trying to migrate the subsidies to fund broadband rather than phone calls this year. As it begins the overhaul, the question of who must contribute into the fund is heating up. It would be "legitimate" to force Netflix and other high-bandwidth companies to contribute to the fund, said Cooper, a longtime consumer advocate.
benton.org/node/51505 | Hill, The
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IMPACT OF UNIVERSAL WIRELESS BROADBAND
[SOURCE: Rural Cellular Association, AUTHOR: Press release]
A study by Dr. Raul Katz, Adjunct Professor in the Division of Finance and Economics at Columbia Business School, on the economic impact that full deployment of wireless broadband on rural America. Based on the premise that extending roaming obligations to data services and requiring interoperability among all carriers operating in the 700 MHz spectrum band will enable investment in wireless broadband infrastructure in unserved and underserved areas, Katz’s study shows that this investment will result in the creation and/or retention of 117,000 jobs in the nineteen states that have the lowest broadband availability and penetration in the United States. Dr. Katz said, “Rural carriers face two significant obstacles in terms of investing in broadband services in rural areas: 1) interoperability and data roaming challenges and 2) a large portion of the public funds dedicated to broadband deployment are being assigned to fiber optics infrastructure. As shown in the study, the opportunity cost of not allowing smaller, rural and regional carriers to roam onto the national carriers’ networks or interoperate in the 700 MHz band is significant. If Congress and the FCC were to advance these policy changes, accessibility to service would have a major economic impact, including creating or saving 116,862 jobs between 2011 and 2014 in the nineteen states with lowest broadband coverage.”
http://rca-usa.org/press/rca-press-releases/full-deployment-of-rural-wir...
Roaming means 116K jobs, rural cell firms say (The Hill)
benton.org/node/51472 | Rural Cellular Association | The Hill
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USF REFORM LINES DRAWN
[SOURCE: Telecompetitor, AUTHOR: Joan Engebretson]
With the Federal Communications Commission set to undertake the Herculean task of reforming today’s voice-focused Universal Service system to one focused on broadband, policy wonks are taking the opportunity to promote their own agendas, including a mixture of policy recommendations with which small telcos would agree—and others with which small telcos would disagree. A report by an economist at KSF Partners, on the other hand, omits any discussion about the CETC program. Instead, the report titled “A Growing Burden: Taxes and Fees on Wireless Service,”, argues that the average U.S. wireless consumer now faces taxes, fees and government surcharges of 16.3%, which it says is double the average 7.4% rate imposed on other general goods and services. Dollars that wireless companies receive through the CETC program are not factored into the calculation–not surprisingly, considering that KSF clients include several wireless carriers. As the report explains, some of the charges on wireless are exacted at the state or even local level, and the author speculates that the charges have increased as government entities seek new revenue streams in a down economy. The report also points the finger at the USF program, however, noting self-servingly that the fund size has been increasing without explaining the role that CETCs have played in causing that increase.
benton.org/node/51471 | telecompetitor
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TELEVISION/RADIO

AILES URGES EMPLOYEE TO LIE
[SOURCE: New York Times, AUTHOR: Russ Buettner]
It was an incendiary allegation — and a mystery of great intrigue in the media world: After the publishing powerhouse Judith Regan was fired by HarperCollins in 2006, she claimed that a senior executive at its parent company, News Corporation, had encouraged her to lie two years earlier to federal investigators who were vetting Bernard B. Kerik for the job of homeland security secretary. Regan had once been involved in an affair with Mr. Kerik, the former New York City police commissioner whose mentor and supporter, former Mayor Rudolph W. Giuliani, was in the nascent stages of a presidential campaign. The News Corporation executive, whom she did not name, wanted to protect Mr. Giuliani and conceal the affair, she said. Now, court documents filed in a lawsuit make clear whom Ms. Regan was accusing of urging her to lie: Roger E. Ailes, the powerful chairman of Fox News and a longtime friend of Mr. Giuliani. What is more, the documents say that Ms. Regan taped the telephone call from Mr. Ailes in which Mr. Ailes discussed her relationship with Mr. Kerik.
benton.org/node/51528 | New York Times
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PBS BUDGET CUTS
[SOURCE: New York Times, AUTHOR: Elizabeth Jensen]
With the new Congress, Republicans again have made public broadcasting a target for cuts, and the petitions and on-air appeals are back. This time, however, even a recent Capitol appearance by Arthur, the booking-loving aardvark, may not be enough to fully stave off a reduction in financing. Mike Riksen, NPR’s vice president of policy and representation, told member stations in January that a confluence of events — the growing deficit, questions about the role of the government in media, budget concerns on both sides of the political isle and in both houses, objections to a perceived left-wing bias — had created “the most determined, organized and sophisticated challenge to federal funding for public radio — ever.” Underscoring that assessment, on Feb. 19, the House approved a bill for 2011 that cut all financing for the Corporation for Public Broadcasting for the year 2013, the first time in recent memory that such a zeroing-out measure passed a vote. Representative Kevin Brady, Republican of Texas, said recently on “The Diane Rehm Show” on NPR that public broadcasting’s audience, “I think, are discerning viewers who understand frankly, we've got ourselves in a mess as a nation fiscally and that we’re going to have to make some tough decisions.” Even moderate Republicans who once were reliable backers of federal financing for public broadcasting have offered little support.
benton.org/node/51526 | New York Times
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FCC CONSIDERS V-CHIP UPDATE
[SOURCE: National Journal, AUTHOR: David Hatch]
The Federal Communications Commission is exploring an overhaul of the nation’s television ratings, potentially enabling the use of alternatives from religious, parental, and other groups that utilize more-rigorous standards, government, industry, and advocacy sources said. Parents could program their televisions to filter content based on guidance from Focus on the Family and similar organizations that have independent ratings, the sources said. Key to all of this is updating the so-called V-chip, which is required by the Telecommunications Act of 1996. The technology, installed in all TV sets with screens that are 13 inches or larger, allows viewers to use the ratings to block programming they consider objectionable. Also under discussion is the idea of adopting more-uniform standards for how TV shows, and perhaps other forms of entertainment, are rated. In recent weeks, the office of FCC Chairman Julius Genachowski has been reaching out to a variety of groups concerned about the issue regarding possible changes to the ratings scheme.
benton.org/node/51495 | National Journal
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COMCAST DEAL FOR ONLINE VIDEO
[SOURCE: Associated Press, AUTHOR: Joelle Tessler]
New Internet video services from companies such as Netflix and Apple are offering a glimpse of a home entertainment future that doesn't include a pricey monthly cable bill. To challenge the cable TV industry's dominance in the living room, though, online video services need popular movies and TV shows to lure viewers, and access to high-speed Internet networks to reach them. Yet they have had no rights to either — until now. To win government approval to take over NBC Universal last month, cable giant Comcast Corp. agreed to let online rivals license NBC programming, including hit shows such as "30 Rock" and "The Office." Comcast also agreed not to block its 17 million broadband subscribers from watching video online through Netflix, Apple's iTunes and other rivals yet to come. Those requirements aim to ensure that the nation's largest cable TV company, with nearly 23 million video subscribers in 39 states, cannot stifle the growth of the nascent Internet video business. Although they apply only to Comcast and NBC, these conditions could serve as a model for other big entertainment companies in dealing with new online competitors. They also send a powerful message that the government believes these promising young rivals deserve an opportunity to take on established media companies.
benton.org/node/51503 | Associated Press
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CONTENT

GOOGLE CHANGES SEARCH SYSTEM
[SOURCE: Los Angeles Times, AUTHOR: Jessica Guynn]
Google, under fire for letting some websites manipulate its powerful search engine, has made a major change to the way it ranks results. The change to Google's algorithms, which it employs to help users find what they want when they search the Web, is aimed at helping websites with original content and information, including in-depth reports or "thoughtful" analysis, rank higher. The change affects about 12% of queries, Google said. Making such a significant change to the search engine in such a public way marks a rare admission of fallibility by Google, which handles about two-thirds of the world's search queries and generates most of its sales from search advertising. Despite the dominance of its search engine, Google has taken hits in recent months for allowing sites to rise in search results that deliver questionable or little value to Web searchers. Vivek Wadhwa, a visiting scholar at UC Berkeley's School of Information, described Google in a blog post as a "tropical paradise for spammers and marketers."
benton.org/node/51516 | Los Angeles Times | USAToday
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GOOGLE SEARCH UPDATE
[SOURCE: Wall Street Journal, AUTHOR: Amir Efrati]
Google's move last week to lower the search rankings of websites that the company said offer little useful information appears to be having a dramatic impact, according to firms that study search-engine data. Many websites that previously ranked highly in searches for certain keywords on Google dropped sharply following the change in the company's search algorithms, the firms found. Some of the sites that were hurt defended the quality of their content, arguing that they had been unfairly lumped with bad actors on the Internet. Meanwhile, some well-known social-networking, retail and news sites emerged as apparent winners, rising in Google's rankings. Google has said the change was aimed, among other things, at sites with what it calls "low quality" content: just enough information to appear in search results and lure users to pages loaded with advertisements. It estimated that the new algorithms would affect about 12% of U.S.-based search queries and would expand to non-U.S. queries in the near future.
benton.org/node/51514 | Wall Street Journal
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LABOR

PRESIDENT OBAMA OPENS JOBS COUNCIL MEETING
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Homework for the tech executives on President Barack Obama's jobs council is more than just the economy — it's consideration for his social priorities, too. President Obama opened the first meeting of his jobs council by stressing the need to knock down regulatory obstacles and help businesses compete abroad, but he also put a word in for social issues. "We want to make sure that we're also putting a little pressure on you guys to figure out how do we make sure that the economy is working for everybody," he said to a room full of business executives. This means considering a number of items not critical to their bottom lines. "How do we make sure that every child out there who’s willing to work hard is going to be able to succeed?" President Obama said. "How do we make certain that working families across the country are sharing in growing productivity and that we're not simply creating an economy in which one segment of it is doing very well, but the rest of the folks are out there treading water?" Still, President Obama made it clear that competitiveness and jobs will be the driving focus of the council. He stressed efforts to streamline regulations and reform the tax system.
benton.org/node/51508 | Hill, The | President Obama
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DIVERSITY

RUSH UNDERWHELMED BY FCC
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
Rep Bobby Rush (D-IL) says he's tired of the Federal Communications Commission's lack of progress on civil rights issues. “To date, I have been grossly underwhelmed by the lip service and platitudes I have heard from this commission regarding the importance of concluding commission proceedings, studies and reports that can dramatically affect the fortunes of minority viewers, listeners, new market entrants, established businesses and entrepreneurs," Rep. Rush said. "Their words aren't matching up with their actions."
benton.org/node/51509 | Hill, The | B&C
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Fox News Chief, Roger Ailes, Urged Employee to Lie, Records Show

It was an incendiary allegation — and a mystery of great intrigue in the media world: After the publishing powerhouse Judith Regan was fired by HarperCollins in 2006, she claimed that a senior executive at its parent company, News Corporation, had encouraged her to lie two years earlier to federal investigators who were vetting Bernard B. Kerik for the job of homeland security secretary. Regan had once been involved in an affair with Mr. Kerik, the former New York City police commissioner whose mentor and supporter, former Mayor Rudolph W. Giuliani, was in the nascent stages of a presidential campaign. The News Corporation executive, whom she did not name, wanted to protect Mr. Giuliani and conceal the affair, she said. Now, court documents filed in a lawsuit make clear whom Ms. Regan was accusing of urging her to lie: Roger E. Ailes, the powerful chairman of Fox News and a longtime friend of Mr. Giuliani. What is more, the documents say that Ms. Regan taped the telephone call from Mr. Ailes in which Mr. Ailes discussed her relationship with Mr. Kerik.

PBS Faces New Threat in Federal Budget

With the new Congress, Republicans again have made public broadcasting a target for cuts, and the petitions and on-air appeals are back. This time, however, even a recent Capitol appearance by Arthur, the booking-loving aardvark, may not be enough to fully stave off a reduction in financing. Mike Riksen, NPR’s vice president of policy and representation, told member stations in January that a confluence of events — the growing deficit, questions about the role of the government in media, budget concerns on both sides of the political isle and in both houses, objections to a perceived left-wing bias — had created “the most determined, organized and sophisticated challenge to federal funding for public radio — ever.” Underscoring that assessment, on Feb. 19, the House approved a bill for 2011 that cut all financing for the Corporation for Public Broadcasting for the year 2013, the first time in recent memory that such a zeroing-out measure passed a vote. Representative Kevin Brady, Republican of Texas, said recently on “The Diane Rehm Show” on NPR that public broadcasting’s audience, “I think, are discerning viewers who understand frankly, we've got ourselves in a mess as a nation fiscally and that we’re going to have to make some tough decisions.” Even moderate Republicans who once were reliable backers of federal financing for public broadcasting have offered little support.

Web's Hot New Commodity: Privacy

As the surreptitious tracking of Internet users becomes more aggressive and widespread, tiny start-ups and technology giants alike are pushing a new product: privacy. Companies including Microsoft Corp., McAfee Inc.—and even some online-tracking companies themselves—are rolling out new ways to protect users from having their movements monitored online. Some are going further and starting to pay people a commission every time their personal details are used by marketing companies. "Data is a new form of currency," says Shane Green, chief executive of a Washington start-up, Personal Inc. , which has raised $7.6 million for a business that aims to help people profit from providing their personal information to advertisers.