DIGITAL DIVIDE
Some Kids Play Keeps at Apple (Wired)
INTERNET
Software Code Has Power of Law on the Internet, Author Says
(CyberTimes)
Report: Growth of New Web Users Sinks (USA)
Group Asks FTC to Close Email Flaw (USA)
Terminix Lawsuit Aims To Mute A Web Critic (WSJ)
DISABILITIES
Web Site Provides Internet Tools To the Disabled
E-COMMERCE
E-commerce Hopes WTO Won't Construct Trade Barriers (USA)
The Internet Tax Dodge (WP)
AOL To Lure Web Surfers To Sign Up Online (SJM)
ANTITRUST
Justice Dept. Hires Firm To Study Microsoft "Remedies" (WP)
DIGITAL DIVIDE
SOME KIDS PLAY KEEPS AT APPLE
Issue: Digital Divide
Though they had the best of intentions, an equipment giveaway staged by
Apple and Canon highlight the differences between the luck of the rich and
the luck of the poor. More than a dozen celebrity parents and children, plus
several
local schoolchildren gathered at Apple's campus to learn how easy it was to
create
short digital videos. But, at the end of the event, the rich and famous went
home with the demo iMac DVs and digital camcorders equipment -- worth about
$2,400, while the poorer children were obliged to donate theirs to their
schools. "There is some irony there, but I'm not surprised about that," said
Bret Harte Elementary School teacher Bob Griffin, who escorted three
students from one of San Francisco's poorest neighborhoods. "Of all the kids
invited today, these kids are the have-nots of the group," said Griffin.
"They don't have computers at home. Two of the kids' parents don't even have
cars." Still Griffin was grateful for the donation. In attendance were such
luminaries as John Cleese, Sinbad, Jennifer Jason Leigh, Gregory Hines, and
the boxer Muhammad Ali. "The donations I usually get are from corporations
trying to get rid of their old computers, so Apple's been pretty generous,"
he said. "The average donation to the school is worth about $20."
[SOURCE: Wired News, AUTHOR: Leander Kahney]
(http://www.wired.com/news/print/0,1294,32792,00.html)
INTERNET
SOFTWARE CODE HAS POWER OF LAW ON THE INTERNET, AUTHOR SAYS
Issue: Internet/Legal Issues
In _Code and Other Laws of Cyberspace_ (Basic Books)
(http://www.code-is-law.org/), Harvard Law School Professor Lawrence Lessig
(http://cyber.law.harvard.edu/lessig.html) sees a potential menace in the
new technology of the Internet, and he issues a wake-up call. "We have been
as welcoming and joyous about the Net as the earthlings were of the aliens
in 'Independence Day'; we have accepted its growth in our lives without
questioning its final effect," Lessig writes. "But at some point we too will
come to see a potential threat. At some point we will see that cyberspace
does not guarantee its own freedom, but instead carries an extraordinary
potential for control. And then we will ask: How should we respond?"
Although the Internet is hospitable, for now, to free and anonymous speech,
that is not its intrinsic nature. Cyberspace is built on software code
instead of legal code (law). At present, cyberspace code incorporates strong
protections for free speech, prevents governments from aggressively
regulating most Internet activity and strikes a good balance between the
rights of authors to protect their works and the rights of readers to make
copies and read anonymously. Cyberspace code is already changing and may
change more drastically, owing to the demands of commercial interests. Soon,
a combination of passwords, filters, cookies, pay-as-you-view downloadable
books and digital IDs tying users' identities to their machines could
transform the Internet into a darker place, where important elements of
privacy and freedom are erased by an emerging architecture of the all-seeing
eye.
[SOURCE: CyberTimes, AUTHOR: Carl Kaplan (kaplanc( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/12/cyber/cyberlaw/03law.html)
REPORT: GROWTH OF NEW WEB USERS SINKS
ISSUE: Internet Demographics
A controversial new study by Cyber Dialogue says the growth of the nation's
online audience slowed dramatically in the first half of 1999. The
number of US adults online grew at an annualized rate of 13% the first half
of 1999 versus 58% the same period last year, according to the report. Only
3.9 million adults went online for the first time during the first six
months versus 12 million a year ago, according to the report. It estimates
the Web's U.S. adult population at 69 million and projects it will rise to
109 million, or about half of all adults, by 2003. The reason for the
slowdown according to Cyber Dialogue: Most affluent adults are already
online, and low- to moderate-income adults are not being lured into
cyberspace in big numbers. Low-to-moderate income-adults won't jump in until
wide availability of high-speed access makes the Web "resemble television,"
Analyst Tom Miller of Cyber Dialogue says. Miller predicts it will be about
two years before most non-users are tempted by fast access. Several analysts
vehemently dispute Cyber Dialogue's findings. Bruce Judson, author of Hyper
Wars, says low-cost Web devices and the big savings promised by electronic
commerce will attract less-affluent users. International Data says the
online population will grow to 177 million people, including children, by
2003.
[SOURCE: USA Today (1B), AUTHOR: Paul Davidson]
(http://www.usatoday.com/money/mds1.htm)
GROUP ASKS FTC TO CLOSE EMAIL FLAW
ISSUE: Privacy
Advocacy groups are expected to petition the FTC today to order software
makers to fix a security flaw found in most current e-mail programs. Groups
such as Junkbusters, the Electronic Privacy Information Center, the Center
for Media Education, Privacy International, Ralph Nader's Consumer Project
on Technology, the Consumer Federation of America and the Electronic
Frontier Foundation say the flaw allows messages to carry digital ID tags,
known as "cookies," that can be tracked. These cookies may not allow
Internet users to remain anonymous. Privacy experts say users' identities
could be compromised when Web site operators place cookies in files on
visitors computers to keep track of return visitors or when Web sites use
cookies to help them track visitors' movements across their Web sites.
Advertising-service companies, which place banner ads on their sites, also
send Web surfers cookies so they can keep track of which ads users have
seen.
[SOURCE: USA Today (1A), AUTHOR: Will Rodger]
(http://www.usatoday.com/life/cyber/tech/ctg802.htm)
TERMINIX LAWSUIT AIMS TO MUTE A WEB CRITIC
Issue: Free Speech
Terminix, the nation's largest termite and pest company, has filed a suit
against a California woman, charging her with trademark violations,
deceptive practices and unfair competition. Carla Virga, a secretary in
Yuba City, CA, launch a Web site critical of Terminix after the company
mishandled an inspection of her home. At issue is the way Mrs. Virga is
using the Terminix name in "meta-tags" to attract traffic to her site. "It
is like putting up a set of golden arches on the roadside but when you go
inside, there's no McDonald's," says Stephen Good, a Terminix spokesman.
Mrs. Vigra's defenders argue that the site is not engaging in unfair
competition because it accepts no money or advertising and is not looking
to divert sales. "Terminix could both set a dangerous precedent for other
consumers and insulate itself from effective criticism on the Internet,"
says Paul Levy, an attorney for Public Citizen Litigation Group, which is
representing Mrs. Virga. "It is an extreme case. It could have a chilling
effect."
[SOURCE: Wall Street Journal (B1), AUTHOR: Richard B. Schmitt]
(http://interactive.wsj.com/articles/SB944174998341805329.htm)
DISABILITIES
WEB SITE PROVIDES INTERNET TOOLS TO THE DISABLED
Issue:
The publisher of a magazine for the disabled unveiled a new Web site and
tools Thursday to make the Internet more accessible to the blind and other
disabled users. To take advantage of some features, We Media's Web site will
require some special equipment -- such as a vibrating mouse that "feels"
boxes and images on the computer screen. The for-profit site
(www.wemedia.com) is affiliated with We magazine. The launch is today,
though some services and tools will not be available for weeks or months.
The site will offer shopping, access to college courses and chat rooms.
Additionally, jobs at accessible workplaces and real estate brokers
specializing in accessible homes will be listed. While several other sites
cater to the disabled, We Media brings together site design with hardware
development. The new mouse will sell for several hundred dollars. We Media
is seeking non-profit partners to buy the tools in bulk and then offer them
for free or at a subsidized price.
[SOURCE: San Jose Mercury News, AUTHOR: Staff Writer]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/tool120399.htm)
E-COMMERCE
E-COMMERCE HOPES WTO WON'T CONSTRUCT TRADE BARRIERS
Issue: E-commerce
Companies at the World Trade Organization meeting hope to chip away a trade
barriers; e-commerce companies hope to keep them from going up. U.S.
Commerce Secretary William Daley said he is confident the global moratorium
on e-commerce customs duties, which began in May 1998, will be extended by
18 months to two years. If extended, the moratorium will prevent countries
will not be able to charge taxes on orders taken over the Internet or on
products that can be transmitted online, such as music and software. U.S.
e-commerce firms fear a backlash because of their dominance of the Internet
and because English is its primary language. The e-commerce industry also
must deal with consumer privacy, crime, insulating children and protecting
intellectual property. If not, governments may move to impose regulations
that would impede online trade.
[SOURCE: USA Today (1B), AUTHOR: Del Jones]
(http://www.usatoday.com/money/mds2.htm)
THE INTERNET TAX DODGE
Issue: Ecommerce
[Op-Ed] "Suppose someone proposed the following retail sales tax: Customers
who buy from a store with more than 10,000 square feet of floor space will
pay a 5 percent tax, but customers who buy from a store with fewer than
10,000 square feet of floor space will pay no tax." The end result would be
that sales in stores with fewer than 10,000 square feet grew more rapidly
than did sales in larger stores, and few people would think this a serious
consideration. Virginia Governor James Gilmore (R) and House Budget
Committee
Chairman John Kasich (R-OH) however do seem to take such a scenario
seriously
if replacing "stores with fewer than 10,000 square feet" with "Internet
commerce" and "stores with more than 10,000 square feet" with "ordinary
retailers." State sales taxes are placed on retail goods sold in stores that
you can walk into, but not on Internet sales, lending to the double-digit
growth rates in Internet sales. Gov Gilmore and Rep Kasich claim that taxing
Internet sales to consumers the same as ordinary retail sales would stifle
Internet growth. "If you were a retailer you might even claim -- if you
could
manage to keep a straight face -- that not taxing Internet sales promotes
economic growth." Most Internet and mail-order sales are either delivered
to or billed to identifiable Zip codes. Technology that makes Internet sales
possible also enables taxation of those sales.
[SOURCE: Washington Post (A41), AUTHOR: Henry J. Aaron, senior fellow at the
Brookings Institution]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-12/03/034l-120399-idx.html
)
AOL TO LURE WEB SURFERS TO SIGN UP ONLINE
Issue: Ecommerce
Becoming the first online service provider to adopt an affiliate marketing
program, America Online said it will pay Web site operators $15 each time
someone signs up by clicking a link to AOL posted on the site. This new
marketing strategy is a sign of the growing rivalry between Internet
service providers. "It's a lot more competitive. We've already got all the
early adopters now so everyone is going after the masses," said Chris
Atkins, director of product marketing at rival MindSpring Enterprises.
These days it is not uncommon for ISPs to spend $150 to $200 in marketing
costs to acquire each new customer. While AOL is the first online service
provider to adopt an affiliate marketing program, the scheme is already
popular among online merchants. "Affiliate marketing is just booming. It's
ideal from the marketer's standpoint because they only pay something when
there is an action they feel it's worth paying for," said Forrester
Research analyst Jim Nail. "The major business objective right now is
growing their customer base."
[SOURCE: San Jose Mercury News, AUTHOR: Deborah Kong]
(http://www.mercurycenter.com/svtech/news/indepth/docs/aol120399.htm)
ANTITRUST
JUSTICE DEPT HIRES FIRM TO STUDY MICROSOFT "REMEDIES"
ISSUE: Antitrust
The Justice Department has retained Greenhill & Co. of New York, an
investment advisory firm, for assistance in analyzing the financial impact
of
antitrust sanctions it may recommend against Microsoft. The firm is
headed by Robert F. Greenhill, who has served as president of Morgan Stanley
& Co. and chairman of Smith Barney Inc. Legal specialists say the
department's hiring of Greenhill suggests a strong desire to push for a
"structural" remedy such as a breakup. The Justice Department said in a
statement that Greenhill would assist the government in studying the "full
range" of remedies in the case. The sanctions the Justice Department is
considering include limits on the company's behavior, a corporate breakup
and a requirement that Microsoft share the software code that makes up its
dominant Windows operating system for personal computers. A Justice
Department official said that no decision has yet been made on remedies and
that the hiring of Greenhill "does not indicate what we're likely to
recommend in court or elsewhere."
[SOURCE: Washington Post (E3), AUTHOR: Rajiv Chandrasekaran]
(http://www.washingtonpost.com/wp-srv/business/feed/a11316-1999dec3.htm)
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...and we're outta here. Have a great weekend.