Flickr version here.
Monsieur Churchill
Library of Congress gets it right
The LoC is the official rulemaker on legal exceptions to the provisions of the Digital Millennium Copyright Act (which makes it a crime to circumvent DRM measures designed to protect intellectual property). It’s just issued some really good new rules — one of which loosens Apple’s iron grip on iPhones, while another permits non-commercial remixing of commercial video. The Electronic Frontier Foundation, which pressed for the rule changes, reports it thus:
San Francisco – The Electronic Frontier Foundation (EFF) won three critical exemptions to the DMCA anticircumvention provisions today, carving out new legal protections for consumers who modify their cell phones and artists who remix videos — people who, until now, could have been sued for their non-infringing or fair use activities.
“By granting all of EFF’s applications, the Copyright Office and Librarian of Congress have taken three important steps today to mitigate some of the harms caused by the DMCA,” said Jennifer Granick, EFF’s Civil Liberties Director. “We are thrilled to have helped free jailbreakers, unlockers and vidders from this law’s overbroad reach.”
The exemptions were granted as part of a statutorily prescribed rulemaking process, conducted every three years to mitigate the danger the DMCA poses to legitimate, non-infringing uses of copyrighted materials. The DMCA prohibits “circumventing” digital rights management (DRM) and “other technical protection measures” used to control access to copyrighted works. While the DMCA still chills competition, free speech, and fair use, today’s exemptions take unprecedented new strides towards protecting more consumers and artists from its extensive reach.
The first of EFF’s three successful requests clarifies the legality of cell phone “jailbreaking” — software modifications that liberate iPhones and other handsets to run applications from sources other than those approved by the phone maker. More than a million iPhone owners are said to have “jailbroken” their handsets in order to change wireless providers or use applications obtained from sources other than Apple’s own iTunes “App Store,” and many more have expressed a desire to do so. But the threat of DMCA liability had previously endangered these customers and alternate applications stores.
In its reasoning in favor of EFF’s jailbreaking exemption, the Copyright Office rejected Apple’s claim that copyright law prevents people from installing unapproved programs on iPhones: “When one jailbreaks a smartphone in order to make the operating system on that phone interoperable with an independently created application that has not been approved by the maker of the smartphone or the maker of its operating system, the modifications that are made purely for the purpose of such interoperability are fair uses.”
“Copyright law has long held that making programs interoperable is fair use,” confirmed Corynne McSherry, EFF’s Senior Staff Attorney. “It’s gratifying that the Copyright Office acknowledges this right and agrees that the anticircumvention laws should not interfere with interoperability.”
EFF also won a groundbreaking new protection for video remix artists currently thriving on Internet sites like YouTube. The new rule holds that amateur creators do not violate the DMCA when they use short excerpts from DVDs in order to create new, noncommercial works for purposes of criticism or comment if they believe that circumvention is necessary to fulfill that purpose. Hollywood has historically taken the view that “ripping” DVDs is always a violation of the DMCA, no matter the purpose.
“Noncommercial videos are a powerful art form online, and many use short clips from popular movies. Finally the creative people that make those videos won’t have to worry that they are breaking the law in the process, even though their works are clearly fair uses. That benefits everyone — from the artists themselves to those of us who enjoy watching the amazing works they create,” added McSherry.
So presumeably, the Downfall meme is safe.
Advertising: our newest sunset industry?
Some of my best friends work in advertising. Or used to. It was a great business once. It won’t be so great ten years from now, because it was an industry based on a media ecosystem that is rapidly eroding. Two interesting pieces on the Web today provide insights on this.
The first is a long blog post by Eric Clemons, who is Professor of Operations and Information Management at the Wharton School of the University of Pennsylvania. In it, he argues that the Internet shatters all forms of advertising. “The problem is not the medium, the problem is the message, and the fact that it is not trusted, not wanted, and not needed,” he writes. The nub of his argument is contained in four propositions:
* People don’t trust ads. There is a vast literature to support this. Is it all wrong?
* People don’t want ads. Again, there is a vast literature to support this. Think about your own behavior, you own channel surfing and fast forwarding and the timing of when you leave the TV to get a snack. Is it during the content or the commercials?
* People don’t need ads. There is a vast amount of trusted content on the net. Again, there is literature on this. But think about how you form your opinion of a product, from online ads or online reviews?
* There is no shortage of places to put ads. Competition among them will be brutal. Prices will be driven lower and lower, for everyone but Google.
The second piece is by Frédéric Filloux, who with Jean-Louis Gassée, writes Monday Note, one of the most thoughtful essay-blogs on the Web. In this week’s edition, he writes about a fascinating, detailed study of the 18-24 generation conducted by the French polling institute BVA. According to Frédéric’s summary, these people do not rely for information on a single group but on several, each with a different degree of trust.
The three concentric circles are : close friends and family as the core, a group of 20 to 30 pals whom they trust, and the “Facebook friends” of 200 or so, which acts as an echo chamber. Beyond these groups, behaviors such as elusiveness, temptation to trick and circumvent the social system will prevail.
How do they get the news? No wonder why the group is crucial to the Digital Native getting his information. First of all, the fastest is the best. Forget about long form journalism. Quick TV newscasts, free commuter newspapers, bursts of news bulletins on the radio are more than enough. The group will do the rest: it will organize the importance, the hierarchy of news elements, it will set the news cycle’s pace.
More chilling: the group’s belief in its power to decide what’s credible and what’s not. Truth – at least perceived truth – seems to emerge from an implicit group vote, in total disregard for actual facts. If the group believes it, chances are it is “true”. When something flares up, if it turns out to be a groundless rumor, it’s fine since it won’t last (which is little consolation for the victim of a baseless rumor); and the news cycle waves are so compressed that old-fashioned notions such as reliability or trustfulness become secondary. Anyway, because they are systematically manipulated, the Digital Natives don’t trust the media (when they themselves are not the manipulators).
Consequently, resources can only be group-related or collectively-driven. The perfect example is Wikipedia: because it is crowd-powered and carries an image of neutrality, it is embraced as trustworthy. In addition, Wikipedia is accessible, straightforward and well structured. As a result, many Digital Natives acknowledge turning to Wikipedia to check facts, or to get a good digest of the class there where given.
Note that advertising figures nowhere in this.
For Afghanistan, read “shambles”
It’s difficult to know where to start with the Wikileaks stash of documents reported on today by the Guardian, NYT and Der Spiegel.
1. Maybe we should begin with what we can learn from the continued existence of Wikileaks, despite all the best efforts of dozens of powerful companies and governments to exterminate it. There’s a thoughtlessness about journalistic acceptance of the proposition that Wikileaks confirms the truth of John Gilmore’s celebrated aphorism that “the Internet interprets censorship as damage and routes around it”. The implication is that all one has to do is publish something on a website somewhere and then the truth is out. Sadly, that’s often not the case: one of the hard lessons we libertarians have learned over the last two decades is that it’s all too easy to censor the Web: all you need is a take-down letter from a lawyer in most cases, and nine out of ten ISPs or hosting services will take down a site, no questions asked. (That’s been the chilling effect of the ‘Demon Internet’ case.)
The indestructibility of Wikileaks, despite the best efforts of the cream of the world’s corporate and national security goons to muzzle it, stems from the amazing commitment, determination and technical know-how of the group of activists behind it. To get a feeling for what’s involved, it’s worth having a look at Raffi Khatchadourian’s remarkable New Yorker profile of Julian Assange, the prime mover behind the service. Most of the technical detail behind Wikileaks’s operations are hidden, but here’s what Khatchadourian found out:
As it now functions, the Web site is primarily hosted on a Swedish Internet service provider called PRQ.se, which was created to withstand both legal pressure and cyber attacks, and which fiercely preserves the anonymity of its clients. Submissions are routed first through PRQ, then to a WikiLeaks server in Belgium, and then on to “another country that has some beneficial laws,” Assange told me, where they are removed at “end-point machines” and stored elsewhere. These machines are maintained by exceptionally secretive engineers, the high priesthood of WikiLeaks. One of them, who would speak only by encrypted chat, told me that Assange and the other public members of WikiLeaks “do not have access to certain parts of the system as a measure to protect them and us.” The entire pipeline, along with the submissions moving through it, is encrypted, and the traffic is kept anonymous by means of a modified version of the Tor network, which sends Internet traffic through “virtual tunnels” that are extremely private. Moreover, at any given time WikiLeaks computers are feeding hundreds of thousands of fake submissions through these tunnels, obscuring the real documents. Assange told me that there are still vulnerabilities, but “this is vastly more secure than any banking network.”
And the moral of this? Using the Internet to further ‘disruptive transparency’ takes a lot more than simply posting stuff to a website.
2. Then there’s the question of what the Wikileaks stash tells us about the war. Amy Davidson went digging and pulled up this interesting snippet. Dated November 22nd, 2009, it was submitted by a unit called Task Force Pegasus and describes how a US convoy was stopped on a road in southern Afghanistan at an illegal checkpoint manned by what appeared to be a hundred insurgents, “middle-age males with approx 75 x AK-47’s and 15 x PKM’s.”
These weren’t “insurgents” at all, at least not in the die-hard jihadi sense that the American public might understand the term. The gunmen were quite willing to let the convoy through, if the soldiers just forked over a two or three thousand dollar bribe; and they were in the pay of a local warlord, Matiullah Khan, who was himself in the pay, ultimately, of the American public. According to a Times report this June (six months after the incident with Task Force Pegasus), Matiullah earns millions of dollars from NATO, supposedly to keep that road clear for convoys and help with American special-forces missions. Matiullah is also suspected of earning money “facilitating the movement of drugs along the highway.” (He denied it.)
That is good to know, says Ms Davidson, and she’s right.
The Obama Administration has already expressed dismay at WikiLeaks for publicizing the documents, but a leak that informs us that our tax dollars may be being put to use as seed money for a protection racket associated with a narcotics-trafficking enterprise is a good leak to have. And the checkpoint incident is, again, only one report, from one day. It will take some time to go through everything WikiLeaks has to offer—the documents cover the period from January, 2004 to December, 2009—but it is well worth it, especially since the war in Afghanistan is not winding down, but ramping up.
3. Finally, there’s the grotesque absurdity of the war itself. To someone of my age who lived through the Vietnam era, the parallels are very striking. What really takes my breath away now, though, is the intellectual and evidential poverty of the justifications for it — especially the threadbare mantra of the Labour and Coalition administrations that British soldiers are dying in Helmand in order to protect the good citizens of Bradford. In that context, George Packer had a good piece in the New Yorker on July 5, which said, in part:
With allies like Canada and Holland heading for the exits, American troops are dying in larger numbers than at any point of the war—on bad days, ten or more. The number of Afghan civilian deaths remains high, despite the tightened constraints of McChrystal’s rules of engagement. The military key to counterinsurgency is protection of the population, but the difficulty in securing Marja and the delay of a promised campaign in Kandahar suggest that the majority of Afghan Pashtuns no longer want to be protected by foreign forces. The political goal of counterinsurgency is to strengthen the tie between civilians and their government, but the Afghan state is a shell hollowed out by corruption, and at its center is the erratic figure of President Karzai. Since last fall, when he stole reëlection, Karzai has accused Western governments and media of trying to bring him down, fired the two most competent members of his cabinet, and reportedly threatened to join the Taliban and voiced a suspicion that the Americans were behind an attack on a peace conference he recently hosted in Kabul. In the face of his wild performance, the current American approach is to tiptoe around him, as if he would start behaving better if he could just be settled down. Meanwhile, aid efforts are in a bind: working with the government nourishes corruption; circumventing it further undermines its legitimacy.
The Wikileaks stash shows how badly “protection of the population” is going. So,
Obama is trapped—not by his generals but by the war. It takes great political courage to face such a situation honestly, but if in a year’s time the war looks much the way it does now, or worse, Obama will have to force the public to deal with the likely reality: Americans leaving, however slowly; Afghanistan slipping into ethnic civil war, with many more Afghan deaths; Pakistan backing the Pashtun side; Al Qaeda seizing the chance to expand its safe haven. These consequences would require a dramatically different U.S. strategy, and a wise Administration would unify itself around the need to think one through before next summer.
Maybe there was a chance after 9/11 of doing what no foreign power in history had ever managed to do — create a semblance of a unified nation-state from the chaotic patchwork of fiefdoms that is Afghanistan. But that was blown by the Bush administration’s obsession with Iraq, which drained away the colossal effort that would have been needed to re-model Afghanistan. So now there’s no option except to accept the inevitable. The game’s over, and the West blew it. And, as far as I can see, there’s no Plan B.
Growing pains
This morning’s Observer column.
Over the past two months, Apple’s market capitalisation (ie its value as measured by the stock market) averaged out at $229.8bn.
The corresponding figure for Microsoft was $215.9bn. And yes, you read those numbers correctly: Apple is now worth significantly more than Microsoft, and the difference isn’t just a flash in the Wall Street pan.
This has implications for all of us who follow these things. The mainstream media, for example, need to discard the rose-tinted spectacles through which they have viewed Apple ever since Steve Jobs returned to the helm in 1997. Apple is no longer the Lucky Little Company That Could but a looming, secretive, manipulative corporate giant.
Recent developments suggest that Apple itself also needs to adjust to its new status as just another company…
Apropos the Microsoft comparison, Randall Stross has a useful piece in today’s NYT. Microsoft continues to be a formidable company, but from the viewpoint of investors it’s become more like GE or Big Oil (excepting BP, perhaps) — a good ‘banker’ stock for a part of one’s pension portfolio.
Dell and its Intel Habit
This is lovely.
On Thursday, the Securities and Exchange Commission released some communications between Dell and Intel executives that shed more light on this matter. It shows Dell executives telling investors one thing and telling each other the exact opposite.
According to the S.E.C., Kevin Rollins, Dell’s chief executive for part of the period in question, bragged in 2004 that Dell’s ability to meet or exceed Wall Street expectations for 12 quarters in a row was “driven by our tightly controlled supply chain, highly efficient infrastructure and direct relationships with customers.”
And yet, at around the same time, Mr. Rollins wrote to Michael S. Dell, the company’s founder, that “for 3 qtrs now, Intel money has made the qtr. A bad way to run the railroad,” according to the S.E.C.
Later, Mr. Rollins wrote to Mr. Dell about Intel, saying “We are going to have to get off their drug . . . “. There was much more.
The information disgorgement came as the S.E.C. hit Dell with accounting fraud charges, and the company settled the matter with a $100 million fine and no admission of any wrongdoing.
At the heart of the S.E.C.’s complaint against Dell was the claim that Dell hid its reliance on rebates from Intel from investors. Intel rewarded Dell for not using A.M.D. chips, and Dell became more and more dependent on payments from Intel to meet quarterly financial targets, according to the S.E.C.
Dell’s management highlighted how the company was tweaking its supply chain or dealing with changes in component costs when it explained swings in quarterly results to investors. These executives, including Mr. Dell, failed to stress that Dell’s quarters were being made or broken by rebates from Intel that fluctuated depending on Dell’s financial needs and loyalty, according to the complaint.
Other e-mail messages talk about Dell needing to beg Intel for money to meet quarterly goals and show Mr. Rollins being less than direct when asked about effect Intel’s rebates had on Dell’s quarterly performance.
Interesting also how this addiction was entirely unnoticed by Tom Friedman, one chapter of whose The World is Flat: The Globalized World in the Twenty-first Century was devoted to a gripping paen of praise for Dell’s lean, mean and tightly-integrated supply chain.
The game
We turned a corner in deepest Provence this afternoon, and came on a serious boules match in full swing.
Flickr version here.
Facebook, pop. 500 million
Yep. According to Mr Zuckerberg,
As of this morning, 500 million people all around the world are actively using Facebook to stay connected with their friends and the people around them.
Yay! And some of those 500 million may one day come to regret some aspects of their social networking.
According to a recent survey by Microsoft, 75 percent of U.S. recruiters and human-resource professionals report that their companies require them to do online research about candidates, and many use a range of sites when scrutinizing applicants — including search engines, social-networking sites, photo- and video-sharing sites, personal Web sites and blogs, Twitter and online-gaming sites. Seventy percent of U.S. recruiters report that they have rejected candidates because of information found online, like photos and discussion-board conversations and membership in controversial groups.