May 2008

Autodesk Smackdown

by on May 22, 2008 · 12 comments

I love understated sarcasm in judicial opinions. From yesterday’s Autodesk decision:

Not only has Autodesk failed to surmount the thorny issues of privity and mutual assent inherent in its contention that its License binds Mr. Vernor and his customers, it has ignored the terms of the License itself. The Autodesk License is expressly “nontransferable.” License: Grant of License. Autodesk does not explain how a nontransferable license can bind subsequent transferees.

This decision from a district judge is a victory for the First Sale Doctrine and common sense. But it highlights conflicting Ninth Circuit precedents, and explicitly chooses one in favor of the others, so the Ninth Circuit seems likely to step in and resolve the conflict.

connectkentucky-1.jpgI’d like to tap TLF’s incredibly smart readers for some help. Does anyone know what ConnectKentucky is or how it works? If you do, I’d much appreciate you post a comment explaining it. Its website is typified by language like this passage from its homepage:

ConnectKentucky connects people to technology in world-altering ways: improving the lives of the formerly disconnected; renewing hope for previously withering rural communities; driving increases in the number of tech-intensive companies and jobs; and nurturing an environment for lifetime learning, improved healthcare, and superior quality of life. … ConnectKentucky develops and implements effective strategies for technology deployment, use, and literacy in Kentucky, creating both the forum and the incentive for interaction among a variety of people and entities that would not otherwise unite behind common goals and a shared vision. This level of teamwork is making Kentucky a better place for business and a better place to live.

Most press articles about the organization are no better at explaining exactly what it does, and its Wikipedia entry is so-so. The best explanation I’ve found is from an article in the Economist:

Internet service providers could not be sure that there were enough [potential customers] in the Kentucky countryside to justify new investment in cabling or wireless transmitters. But by the end of this year, Mr Mefford boasts, 98% of residents will have access to inexpensive broadband services. This is primarily because of ConnectKentucky’s effort to map broadband demand in communities that didn’t have access, he says, which indicated that enough people in Kentucky farm country would sign up if providers entered the market. At the same time, the organisation also talked up high-speed internet services to sceptical residents, creating demand where it was slack.

Ars Technica also had this useful description:

ConnectKentucky is a public/private partnership that has boosted broadband availability from 60 percent to more than 90 percent in just two and a half years and used mapping techniques to identify current gaps in service. Once those were discovered, the group helped to create a regulatory environment that encouraged private investment, then partnered with companies on a market-driven approach to rolling out new lines, even in rural areas. 80 percent of the funding came from state and federal government agencies, while 20 percent was put up by the companies involved. By the end of this year, 100 percent of Kentucky homes should be able to access broadband of at least 768Kbps.

I’m asking because the program has many times been hailed as a model for other states and for the nation. So here are my questions: What exactly does ConnectKentucky (and its parent Connected Nation) do? How serious is lack of broadband mapping? Is there a market failure here (i.e. why aren’t private parties generating this sort of data)? What sort of changes did it secure “to create a regulatory environment that encouraged private investment”? Why is it up to a mostly government-funded organization to “talk[] up high-speed internet services to sceptical residents”? Who are the private partners in this public-private partnership?

UPDATE: Here is an article by Art Brodsky critical of ConnectKentucky’s origins and effectiveness, and here is CK’s response.

Stuck with limited ISP choices, broadband users are increasingly angry with the growing number of providers that poke around in their customers’ traffic. From resetting Bittorrent sessions to sniffing packets for URLs, more and more providers are wielding their power as the “man in the middle” to monitor and manipulate traffic in unpopular and possibly illegal ways. While these practices can be beneficial, tech-savvy consumers are understandably agitated. Congress is now considering legislation that would outlaw these ISP practices.

Instead of urging lawmakers to enact sweeping new laws that would often do more harm than good, broadband users should look to the recent emergence of commercial secure tunneling services. These services remind us that the marketplace is perfectly capable of resolving skirmishes without government getting involved.

Numerous companies have begun to offer encrypted tunnels using Virtual Private Networks (VPNs). These networks have long been used for a variety of reasons, and are popular with network security experts because of how well they protect data from outside snooping. By tunneling traffic through secure links, broadband users can break free from the constraints imposed by ISPs on certain types of traffic. Routing peer to peer applications through these tunnels makes them almost entirely indistinguishable from other types of traffic—even to stateful packet inspection tools like Sandvine that are undeterred by header encryption.

Tunneling traffic via encrypted, remote servers is also one of the toughest targets for ISPs. Many corporate users and university students connect to VPNs for necessary reasons, and there’s no easy way for an ISP to distinguish “legitimate” VPN traffic from the other kind. And with new secure tunneling firms popping up all the time, simply blocking the IP-address ranges of known tunnels is no solution. Absent a VPN Whitelist—highly infeasible given the growing number of VPNs in the wild—ISPs will soon realize that, no matter how much they invest in packet inspection tools like Sandvine and Phorm, informed users will always find a way to stay a step ahead.

Continue reading →

Fidel on phoneIt’s long been clear that America’s 40-year embargo on trade with Cuba has been an abject failure. It didn’t lead to an ouster of the Castro regime and has probably hurt the Cuban people much more than it has helped. As my old Cato colleague Dan Griswold put it:

Economic sanctions rarely work. Trade and investment sanctions against Burma, Iran, and North Korea have failed to change the behavior of any of those oppressive regimes; sanctions have only deepened the deprivation of the very people we are trying to help.

And there is no better example of how we are hurting the very people we are trying to help than when we place embargoes on communications technologies. I bring this up because you may have heard that President Bush just announced that the embargo will be modified “to allow Americans to send mobile phones to family members in Cuba.” The White House press release also noted that. “President Bush repeated his offer to license U.S. non-governmental organizations (NGOs) and faith-based groups to provide computers and internet to the Cuban people – if Cuban rulers will end their restrictions on Internet access.” And, Dan Fisk, NSC Senior Director for Western Hemisphere Affairs, also noted at a White House press briefing on the subject: “if Cubans can own cell-phones or mobile phones, then they should be allowed to freely and publicly express themselves. If Cubans can own computers, then it would seem that they should be allowed to have unfettered access to the Internet.”

My question is: What took our government so long to realize this? This was all just as true 10 years ago as it is today. In my opinion, if we really wanted to be encouraging regime change in Cuba, our government should have been boxing up cell phones, PCs and other digital gadgets long ago and dropping them on Cuba’s shores! These are technologies of freedom, after all. They can empower the masses and help them organize dissent and express their opposition to the statist thugs in the ruling regime.

And why is the White House only allowing family members to send over phones, or limiting the offer of PC shipments to just NGOs or faith-based groups? We ought to let anybody who wants to donate communications and computing devices ship whatever they have over. Hell, this might me our solution to the e-waste problem in America! Just send all those old gadgets to Cuba! I’m sure the Cuban people would love to have them, and I would love to see what they might do with them if they were digitally empowered in this fashion. How sad that our government only grants selective permission for it to happen.

Of course, God only knows how they will go about getting any service on those phones or PCs in such a repressed land. Perhaps we can set up cell towers and WiMax nodes on boats circling the island 24/7!

Fun with Headlines

by on May 22, 2008 · 8 comments

UK to streamline identity theft with data retention proposal, I report over at Ars.

The Rural Cellular Association wants the FCC to eliminate exclusivity arrangements between cellphone carriers and manufacturers of popular handsets.

For many consumers, the end result of these exclusive arrangements is being channeled to purchase wireless service from a carrier that has monopolistic control over the desired handset and having to pay a premium price for the handset because the market is devoid of any competition for the particular handset.

Exclusivity deals are common throughout the business world and often serve procompetitive purposes.  And there is no way to condemn AT&T-Apple iPhone, Verizon Wireless-LG Voyager or Sprint Nextel-Samsung Ace without condemning exclusivity generally.  For one thing, there are five major cellphone carriers and many smaller competitors.  AT&T (Mobility), the largest, has an approximate market share of only 26 percent.  You can’t argue this is a concentrated market.  The only thing unique about this market is the unnecessary presence of a legacy regulator.

The obvious course of action for the rural carriers is to partner with a handset manufacturer and develop something of their own which customers will want.  “If you build a better mousetrap…,” as they say.  Perhaps some rural carriers lack the imagination or the ingenuity.  But it’s really not the job of government to try to compensate for that. 

Continue reading →

Over at Techdirt I channel Adam Thierer and take the ACLU to task for its inexplicable decision to weigh in on the media ownership fight. I would think that if anything, as a civil liberties organization they would be on the side of opposing government regulation of private media outlets, but what do I know?

The opinion of the Techdirt readership is almost unanimous in their disagreement with me, but a lot of the comments don’t make a lot of sense. I focused on one specific claim in the ACLU’s press release: that the media universe is controlled by six media companies. This isn’t even close to true, which I documented in some detail. But this seems to have totally gone over the heads of Techdirt’s readers. The commenters either (1) changed the subject to some other media ownership pet peeve (Clear Channel sucks, local news is too concentrated, the media are too liberal, the media are too conservative) or (2) ignored what I wrote altogether, writing as if it were an established fact that 6 companies controlled all media outlets. One representative commenter wrote “having 6 or so conglomerates control the information the non-Techdirt reading elite see is bad.” But as I pointed out, this pseudo-statistic isn’t even close to being right. Even leaving aside Internet sources, there are a lot more than six companies controlling significant media outlets. Maybe the industry is still too concentrated, but the first step is to at least get the facts right.

For reasons I don’t really understand, this seems to be an issue on which peoples’ opinions are particularly impervious to facts and rational argument. For whatever reason, people really hate the media, and so they’ve somehow managed to convince themselves that one of the most fiercely competitive industries around is in fact a cozy oligopoly. It’s not true, but it seems to make people happy to believe it is, and no amount of contrary evidence seems to make an impression on them.

Let There Be Light

by on May 21, 2008 · 10 comments

Who says Twitter isn’t useful?


Control Lights with Twitter from Justin Wickett on Vimeo.

Via TechCrunch

Bruce Schneier is a smart and interesting guy. His sound thinking on computer security has influenced me a great deal, and it extrapolates well into related fields like national security. So I’m always interested to find writings of his with which I disagree. A recent essay in Wired, entitled “Our Data, Ourselves” is one. It calls for “a comprehensive data privacy law.”

This law should protect all information about us, and not be limited merely to financial or health information. It should limit others’ ability to buy and sell our information without our knowledge and consent. It should allow us to see information about us held by others, and correct any inaccuracies we find. It should prevent the government from going after our information without judicial oversight. It should enforce data deletion, and limit data collection, where necessary. And we need more than token penalties for deliberate violations.

If he really believes that these rules should govern the collection and use of data – “all information about us”! – what an administrative nightmare that would be to implement. The benefits of doing so would be quite small in comparison.

Some of these things are agreeable, such as judicial oversight of government data collection (the Fourth Amendment is that law) but even a solid libertarian like myself wouldn’t endorse judicial oversight of government officials looking up information about me on public Web sites, for example.

And should I have a right to review any email in which people discuss this blog post and its author? Incredible.

The flaw in this article (beyond its carelessness) is Bruce’s treatment of these information practices as all-new, and needing an all-new regulatory regime, just because decision-making is now undertaken using “data.”

“Whoever controls our data can decide whether we can get a bank loan, on an airplane or into a country. Or what sort of discount we get from a merchant, or even how we’re treated by customer support.”

But it’s always been true that decisions like these are made using “data” – perhaps not in digital form, but data/information all the same. When has a decision ever been made not using “data”? We don’t need to throw out old rules about privacy, fairness, and so on just because information is digitized.

Many of Schneier’s premises are correct. The change from analog to digital data systems does cause a lot more tracks to form behind people as they traverse the economy and society. This creates lots of efficiency, convenience, wealth, and problems – threats to privacy, fair treatment, personal security, seclusion, and liberty. Let’s deal with them – each one – on their merits rather than trying to write a single law to overhaul the use of information in society.

Reversing the course of a river would be a tiny problem compared to what Schneier proposes.