Articles by Andrew Grossman

Andrew Grossman formerly wrote for the TLF.


Unpopular on MySpace? Buy a few friends:

Enter FakeYourSpace.com, a business founded by Brant Walker, which offered users of MySpace.com and similar sites a way to enhance their page with photographs and comments from hired “friends”–mainly attractive models–for 99 cents a month each.

MobileAlibi.com and PopularityDialer.com offer similar services, using fake cellphone calls scheduled in advance to provide an excuse to escape a tedious situation, like a bad date, or to make the subscriber appear in demand.

(With apologies to Marginal Revolution.)

As everyone knows by now, whether the proposed Sirius-XM satellite radio merger goes through has turns, in large part, on the definition of the market in which the companies compete.

And it’s no secret that many tech analysts, being (often) forward-looking, recognize that satellite radio’s weakness is due to the competition it faces from other market segments.

But an analyst quoted in a Times column today makes a more interesting point:

“The question they have to ask now is: what problems haven’t been solved in the car?” said Michael Urlocker, a former wireless analyst with UBS Securities who is now the chief executive of The Disruption Group, a Toronto-based consulting company. “The lack of customer sign-ups on a profitable basis should be a sign that trying to create a better iPod than Apple is a losing proposition.”

In other words, satellite radio–today, tomorrow, and forever–is a losing proposition, not a powerful duopoly.

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Cnet News reports that BitTorrent (the company) is launching an online movie rental store today. As with Zudeo, a similar service from the creators of the Azureus bittorrent (the protocol) client, the movie files will reach viewers via tit-for-tat peer-to-peer networking. The question is whether consumers will bite at the chance to lend BitTorrent their bandwidth.

It’s one thing to download a movie or song directly to your computer from, say, Apple or one of the other online media stores. But bittorrent systems are different: They use your bandwidth to send the audio or video files to other computers. The result is less bandwidth fees for the movie store because it doesn’t have to pay for every byte sent to a customer.

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Nobody expected the net neutrality debate to die down with the installation of a Democratic majority in Congress, but even now, few realize that it will flare so powerfully as it is likely to do later this year.

A new IPTV service from the developers of Skype and the filesharing service Kazaa is set to force the issue. Joost is a peer-to-peer-based television-over-IP system that streams (relatively) high-quality video to users’ computers over their Internet connections. This eats up a lot of bandwidth: 320 MB in downloads and 105 MB in uploads per hour, according to the developers. They also note that “the application continues to run in the background after you close the main window,” presumably to help Joost’s developers save a bit on bandwidth costs by piggybacking on their users’ broadband connections. Running full-time, that amounts to about 225 GB downstream and 75 GB upstream per month, far more bandwidth than the average broadband user consumes today.

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Any modern society worthy of the title must have progress. But sometimes the government gets in the way. Or rather, sometimes it doesn’t. CNET bemoans a recent example:

The Food and Drug Administration set a deadline of December 1, 2006, for U.S. pharmaceutical companies to comply with regulations regarding paper trails, known as “pedigrees,” for their drugs…. [But] Judge Joanna Seybert agreed [with critics] and on December 11 granted an injunction against the implementation of the requirements. While the decision does not directly weigh on technology standards, the injunction, along with other state cases that challenge it, could subdue the rush for companies to comply and stall their adoption of RFID technology, Liard said.

That’s right; without regulation and a government mandate, RFID adoption will be stymied. Horrors.

This mentality is far from abnormal among scientists and technologists (consider the debates over stem cells and NASA funding). The march of progress is onwards and upwards, by hook or by crook. And if it’s the government’s hook, so be it–full speed ahead!

Probably most people woke up last Saturday morning to the shock that a Member of Congress had resigned over some filthy instant message exchanges with an underage page. I wasn’t so shocked. Well, it’s about time, was my first thought.

No, I don’t have any inside dirt on former Rep. Foley’s peccadillos or those of any other Member. But I have done a lot of research into how the legal system treats instant message evidence and recently put forward the first real set of guidelines as to how it ought to. (Find my full analysis here.) One thing I learned: there are a lot of sickos on the Internet. (This is news?) And so it boggles the mind that this is the first high-profile instant messaging case.

Another thing I learned: plenty of the instant message evidence that makes it into courts is obviously forged junk. That doesn’t stop it from being incredibly persuasive, especially to juries.

A few bare text files–easily falsified by a ticked-off youngster–have proved enough to wreck Foley in the public’s eye (er, well, outside of his district, anyway) and send him into rehab and “crystalized recognition” and confession even if not quite accepting “full responsibility.” But now that the FBI’s on the case, Foley’s got to be wondering whether this evidence will stand up in court. There’s no easy answer.

And the answer isn’t foreordained, either. Instant message logs are about the least reliable evidence that a prosecutor can bring into a criminal court, and in this age of AIM, MySpace, and the like, they may be the most convincing to the jury, especially when the “crimes” committed took place solely online–an increasingly frequent occurrence. Defendants have a great incentive to try to keep this stuff out of the courtroom, and they’ve got ample legal tools to make that happen. But few have even tried because getting into the technology of IM can be daunting, and understanding the technology is necessary to make the argument that IM logs should be kept far, far away from the jury. There’s little persuasive judicial precedent, then, on what courts should do about IM evidence. Still, a lawyer who’s prepared to make the argument that IM evidence is junk may stand a good chance of getting the judge to agree.

It looks like the Foley camp is already planting the seed for a vigorous defense. Foley’s lawyer has been “requested by me to fully and completely cooperate regarding any inquiries that may arise,” but stories about the genesis and purpose of the now-famous IM logs are already rife. Certainly Foley and his team have done nothing to quell the rumors that the conversations were somehow part of a prank or game–in other words, that there’s some larger story going on that the IM chat logs, as now available, don’t reveal for one reason or another. Tampering? Could be.

Then again, his post-revelation behavior makes Foley look guilty, guilty, guilty, which in the current caselaw is more important than whether the proffered evidence is like completely bogus.

(And if you want to Digg this, please do.)

Sonia’s pointed post earlier today spurred my thoughts on Adobe’s efforts to sic the European antitrust squad on Microsoft to keep PDF generation out of Office. But rather than argue over Microsoft’s position as a monopolist, I’m inclined to look towards the consumer surplus destroyed here by competition law.

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Earlier this week, Swedish authorities raided the offices and server racks of “Pirate Bay,” an extremely popular Bittorent tracker site with millions of page views per day, as part of an investigation into possible copyright infringement charges against the site’s operators. Pirate Bay stored and indexed thousands of “torrent” files, which point to files that are shared by users’ Bittorent clients. By opening a torrent, a user is able to download the files to which it points, such as a movie or computer application, and quickly begins serving to other users what has already been downloaded. As its name implies, Pirate Bay was used almost solely to facilitate piracy of copyrighted works.

For what it’s worth, the operators of Pirate Bay contend that they have violated no law because they did not serve copyrighted materials, merely pointers to such. They may be right. In any case, the site is down for now (though its operators maintain it will be back in a few weeks). What I’m wondering is, how do “copyfighters” feel about this?

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Soon computer viruses, spyware, and other malware may be a thing of the past.

If, that is, you pony up an extra $50 per year to Microsoft. This week, the software giant (obligatory cliche) announced a Windows Live OneCare, which promises to provide subscribers with “round-the-clock protection and maintenance–virus scanning, firewalls, tune ups, file backups, the whole nine yards.” This comes after years of demands from customers that the company shore up its operating systems and focus more attention on security.

Then again, regular major security flaws haven’t done much to erode Microsoft’s market share, and so perhaps there is some justification for making security an add-on service rather than a part of the operating system itself.

But one factor in the decision to sell Windows Live OneCare live, according to several industry analyst, is that Microsoft is aiming to avoid the attention of the antitrust squad. According to at least one commentator, this restrained competition is laudable:

It’s fair to argue that something like OneCare ought to be built into Windows. But think about what would happen next: The competition would probably find its air supply cut off, as people flee from the cost and complexity of adding third-party replacements for something built into Windows. And recent history has shown that Microsoft tends to slack off if it doesn’t feel a competitive threat–witness how Windows Media Player and Internet Explorer stagnated until iTunes and Firefox got Microsoft’s attention.

With OneCare, Microsoft is trying to clean up its own mess while preserving competition. That’s especially important in the security-software market, where many of the companies that have dominated it so far seem to have adopted Microsoft’s worst habits of sloth.

Remember that the ostensible purpose of antitrust law is to protect consumers. When companies become monopolists, the argument goes, they can raise prices and extract undue sums from their customers, while innovation, and the consumer benefits that come with it, stagnates.

But here, it’s consumers that are getting the short end of the stick. For fear of the antitrust boys (and perhaps because the market will bear it), Microsoft has essentially unbundled what was traditionally a part of an operating system–strong security to protect users’ files, networks, and operating environment–and is now selling it as a separate service for $50 per year. (Among UNIX-derived operating systems, for example, including advanced security auditing tools is the norm.) If antitrust concerns are behind this decision, then antitrust is costing security-conscious consumers, by my calculations, $50 per head per year.

That’s protection? It seems more like a protection scheme. One wonders whether Microsoft isn’t exactly upset that it can hint about antitrust concerns as its reason for unbundling security so as to avoid consumer ire.

Even if not in the U.S., Microsoft surely would have run into antitrust problems in the EU, where antitrust authorities are much keener to meddle, especially when a U.S. firm is involved. Recall that the company’s last settlement with the EU gave birth to “Windows N,” a version of the operating system without a bundled media player. (Not surprisingly, “N” has not exactly been a hit with consumers, leading to the joke that the ‘N’ stands for ‘no one.’)

Inadvertently, this time, the antitrust enforcers may have just created yet another version of the popular operating system: Windows NS. ‘NS’ stands for ‘no security,’ and it’s likely the version that you’re using right now.

Better than restrained competition–the sort of term that makes any economist nervous–is plain competition, unburdened by the threat of arbitrary government meddling. Without the antitrust hatchet hanging overhead, Microsoft’s OneCare might well just be a part of the operating system, correcting (perhaps; hopefully?) a series of flaws in the design of its products that have frustrated users for years.

Although the word “spyware” alone can make the blood boil for those who have struggled to remove the stuff from their computers, coming up with an actual definition of the concept is actually quite difficult. Still, the Anti-Spyware Coalition, consisting of consumer groups, Internet service providers (ISPs), and software companies, is struggling to pin one down. The group released a draft definition this week.

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