Yet more on privacy concerns in the context of IP

by on July 5, 2007 · 8 comments

From time to time concern has erupted over the tendency of P2P filesharing software to “share” user files and directories that the user would not want shared–excel files, for example. Identity thieves were known to be mining shared files for social security numbers. Software distributors have several times denied that this continues to be a problem. Apparently that is not so. A new report from the Copyright Office shows that the problem is very much much a current one, and that filesharing software continues to default to settings that share much much more rather than less, sometimes covering the default with deceptive screen displays. TheHouse Committee on Oversight and Government Reform has taken an interest.

Privacy advocates, so far, have not; buy in too far to “business is bad” ideology (ironically perpetrated by Hollywood) and one ends up not being able to see what is right in front of one’s face.

Advertiser-supported “free” software is missing a crucial link of accountability to consumers. Consumers do not scrutinize what they are getting as carefully as they might, because it is “free.” Once they discover a problem, they lack the usual easy means of penalizing the distributor–by withholding their dollars.

How exactly does this play out in different advertiser supported markets? Broadcasting is ad-supported, for example. But broadcasting depends on a mass audience. Broadcasters need to keep eyeballs coming back repeatedly; it leads to a lowest common denominator effect that holds down the quality of programming and keeps them from serving niche markets. By and large, though, quality and other aspects of audience service can’t fall below a certain threshold. It helps, too, that everybody (almost literally) is watching.

A similar factor seems to keep Google on its toes. Google depends heavily on its reputation as the best search tool to keep people coming back. Furthermore, it has tools it can use to tailor ads so it doesn’t have a lowest common denominator quality problem; it can serve users with niche interests no problem. The quality of its service is the only good it offers; it can’t bribe anyone into overlooking problems by offering other stuff. And it has nothing to gain by slacking off on privacy or security.

Why don’t reputational factors boost the privacy and security aspects of P2P? First, the P2P networks do have something to gain by not supporting good security. If consumers were fully aware and controlled what they “shared” over P2P networks, they might share little (or nothing) rather than more, but rather take without giving. So the software tends to give a more or less gentle shove in the direction of sharing more, and makes it hard for users to control.

Reputational mechanisms here are not strong. The P2P sites may not be in business for the very long run, as they are aware of the possibility of legal challenges. Functioning in a black or grey market means that reviews and such are not as “public” as they might be. And many users are likely on the young side–inexperienced or very inexperienced consumers. Finally, the product that users seek to access through the software is not the software per se–it is the free music and movies that the software gives access to; users are in effect paid (with someone else’s hard work) to overlook problems.

Some general lessons:

Consumers should want to pay for things–from health care to music to software to privacy and security–because it creates direct accountability to producers that is hard to replicate.

Black and grey market products, however widespread, are likely to be inferior to what the product would be if legal. Many commentators on the efficacy of legislation such as the DMCA have failed to bear this in mind.

  • http://www.techliberation.com/ Tim Lee

    Black and grey market products, however widespread, are likely to be inferior to what the product would be if legal. Many commentators on the efficacy of legislation such as the DMCA have failed to bear this in mind.

    So this is an argument for repeal of the DMCA, right?

  • http://www.gigatribe.com John

    Interesting story.

    Our company makes free p2p software that completely bypasses this scenario ( http://www.gigatribe.com ); GigaTribe is encrypted file-sharing between friends (and friends only!) within a private network. This eliminates the risk of downloading corrupted or fake files. This is a new niche that I suspect will overtake the existing free-for-all between complete strangers!

  • http://www.techliberation.com/ Tim Lee

    Black and grey market products, however widespread, are likely to be inferior to what the product would be if legal. Many commentators on the efficacy of legislation such as the DMCA have failed to bear this in mind.

    So this is an argument for repeal of the DMCA, right?

  • http://www.gigatribe.com John

    Interesting story.

    Our company makes free p2p software that completely bypasses this scenario ( http://www.gigatribe.com ); GigaTribe is encrypted file-sharing between friends (and friends only!) within a private network. This eliminates the risk of downloading corrupted or fake files. This is a new niche that I suspect will overtake the existing free-for-all between complete strangers!

  • http://tieguy.org/blog/ Luis Villa

    Good point. Since email and http are used to spread corrupted files and accidentally share confidential data, I look forward to the TLF editorial suggesting we should shut those down too.

  • http://tieguy.org/blog/ Luis Villa

    Good point. Since email and http are used to spread corrupted files and accidentally share confidential data, I look forward to the TLF editorial suggesting we should shut those down too.

  • http://enigmafoundry.wordpress.com/ enigma_foundry

    First, it would be nice if some of the facts were straight.

    Free Software is not tied to its users or to market forces, Solveig says, because money doesn’t change hands. I would counter though, that, because the way the code is open for anyone to change, Free Software projects are much more intimately tied to the users than proprietary software products: if enough people don’t like something, someone will just take the code, fork it and develope it the way they want. This has happened plenty of time in FOSS project (GCC, for example or blackbox to fluxbox) So that argument about Free Software not being reactive to market forces doesn’t pass the straight face test; it doesn’t make sense, and there is plenty of examples of Free Software reacting to customer requests/demands.

    Secondly, the FOSS P2P software that I have used (gtk-gnutella) has a very easy to configure interface for deciding which directories to share.

    It does sound like, though, that the powers that be want to stop P2P and are trying to attack it from a different angle, their clamp down based on P2P being “only” a infringement tool having run out of steam.

    So what I see hear is yet another example of someone wanting use to give up our freedom for a little security.

    Ben Franklin had something to say about that….

  • http://enigmafoundry.wordpress.com eee_eff

    First, it would be nice if some of the facts were straight.

    Free Software is not tied to its users or to market forces, Solveig says, because money doesn’t change hands. I would counter though, that, because the way the code is open for anyone to change, Free Software projects are much more intimately tied to the users than proprietary software products: if enough people don’t like something, someone will just take the code, fork it and develope it the way they want. This has happened plenty of time in FOSS project (GCC, for example or blackbox to fluxbox) So that argument about Free Software not being reactive to market forces doesn’t pass the straight face test; it doesn’t make sense, and there is plenty of examples of Free Software reacting to customer requests/demands.

    Secondly, the FOSS P2P software that I have used (gtk-gnutella) has a very easy to configure interface for deciding which directories to share.

    It does sound like, though, that the powers that be want to stop P2P and are trying to attack it from a different angle, their clamp down based on P2P being “only” a infringement tool having run out of steam.

    So what I see hear is yet another example of someone wanting use to give up our freedom for a little security.

    Ben Franklin had something to say about that….

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