Articles by Sonia Arrison

Sonia Arrison is an author and policy analyst who has studied the impact of new technologies on society for more than a decade. A Senior Fellow at the California-based Pacific Research Institute (PRI) and a columnist for TechNewsWorld, she is author of two previous books (Western Visions and Digital Dialog) as well as numerous PRI studies on technology issues. A frequent media contributor and guest, her work has appeared in many publications including CBS MarketWatch, CNN, Los Angeles Times, New York Times, Wall Street Journal, and USA Today. She was also the host of a radio show called "digital dialogue" on the Voice America network and has been a repeat guest on National Public Radio and CNN's Headline News.


Yesterday, the CFI wrapped up its examination of the EC’s order to force Microsoft to remove 200 files from Windows to create the wildly unpopular Windows XPN. Now that the Court is done looking at the EC’s attempt to design software code, today everyone is focused on the issue of Microsoft’s intellectual property. Regulators have accused Microsoft of failing to provide rivals with enough information to develop software that could run as smoothly as its own on the Windows operating system. Microsoft countered that claim this morning by showing examples of client-server and server-server interoperability. Given how the different systems can talk with one another using translation-like programs, it seems rather draconian for the EC to force MS to give away their IP to rivals. Apple computer must be watching this with great interest given that they are facing similar pressure with iTunes. This case is not just about Microsoft, but about what regulators can do to any software company when rivals complain.

This is crossposted from www.soniaarrison.com.

Today’s hearing at the European Court of First Instance (CFI) focused on the Windows Media Player. Below are some key ideas that came up during the arguments.

On RealPlayer:
Some groups like ECIS–the European Committee for Interoperable Systems–attempted to argue that RealPlayer is dead. Their press release said this:

“Just as [Microsoft’s] strategy eliminated the Netscape Browser and now Real Player, unless stopped it will do the same to other technologies whenever MSFT deems them to be strategic to their business interests.”

Last I looked, RealPlayer was alive and well (and fighting with Apple over its proprietary music technology). I personally stopped using RealPlayer a while ago because I was tired of the spyware-like pop ups that Real delivered to my computer.

On browsers:
The EC attorney said that Microsoft’s browser has become stagnant because “it has a monopoly.” That’s got to be the loopiest statement I’ve heard in a while. Apparently the EC attorney is not aware of Safari, Opera, Flock, or my personal favorite, Mozilla (born from the original Netscape).

On the popularity of Windows designed by Eurocrats:
As of today, no PC manufacturer has shipped a single computer installed with Windows XPN (the n means no Windows media player). Translation: no one wants bureaucrats to design software for them.

On multiple choices for media players:
The EC seems to be assuming that consumers will only ever want to use one media player and that content providers will only want to offer their products in one format. This doesn’t make sense, at least at this point in the market’s evolution. Each media player has its merits, which is why many of us use different ones at different times. And, thanks to a nice presentation by Jonathan Zuck of the Association for Competitive Technology, the Court and all its observers got to see how fast, easy, and cheap it is for a content provider to offer up their wares in multiple formats at once (i.e, when you go to a site and it asks you if you want to use RealPlayer, Quick Time, Windows Media, etc). There are affordable translation programs like “ProCoder” or the one built into Apple’s “Final Cut Pro.” Jonathan’s demonstration showed that it took 3 steps and about 10 minutes to do the translation–a no-brainer for any content company. “It’s as simple as 1-2-3,” he said. But when the EC issued its Microsoft decision in 2004, it didn’t consider the costs or the ease of translation. It just assumed that there would be costs (the translation), but ignored the benefits (greater choice for consumers and hence the ability for content providers to grow their market and revenues).

The upshot:
It was an interesting day with both sides presenting their cases. Tomorrow, the judges start to ask questions and I’m sure those British attorneys wearing the judicial wigs will get extra hot heads. I’d better get to the gift shop and buy my Internet access cards before they sell out and I’m forced to send smoke signals.

Also, if you’re interested in listening to Podcasts of the event, Americans for Technology Leadership’s (ATL) Jim Prendergast has posted a few on ATL’s site.

I’m in Luxembourg today to watch the Microsoft hearing before the Court of First Instance. Two years ago, the European Commission found Microsoft guilty of abusing its dominant market position and imposed a record €497m ($613m) fine and ordered it to disclose key elements of its IP and offer a striped down version of Windows. The version of Windows that Microsoft was forced to put on the market hasn’t been popular and it will be interesting to see how that plays out this week. While this story is happening in Europe, it has broad implications for all American companies.

This is crossposted from www.soniaarrison.com where I am posting a bunch of comments from the hearings.

French legislators recently approved a bill that will force technology companies such as Apple Computer to share proprietary technology with rivals. Such a move is not only a recipe for disaster but completely unnecessary.

The digital music market has always been a tumultuous place. For a long time, Hollywood and Silicon Valley battled over how to sell music while avoiding the theft of digital goods. Now that there’s a truce and Apple’s iTunes store just sold its 1 billionth legally downloadable song, it’s more than a little ironic that the French government wants to essentially steal Apple’s intellectual property.

“The French implementation of the EU Copyright Directive will result in state-sponsored piracy,” Apple said in a statement. “If this happens, legal music sales will plummet just when legitimate alternatives to piracy are winning over customers.”

It’s not a given that a standardized platform would promote music piracy as Apple implies, but it is the case that if France’s bill passes the Senate in May, the country will be endorsing the theft of Apple’s intellectual property by its rivals. That’s not a good outcome and one might wonder what is motivating the French to take such drastic action.

Read more here.

Google recently created a public-relations firestorm when it unveiled a new search site in China that censors data on behalf of the Chinese government. Though the search giant’s success stems from its birth in a free country, that doesn’t mean the company is strong enough to enforce freedom around the world.

Many Americans were horrified to learn that American-grown technology firms such as Yahoo, Microsoft, Cisco, and Google are complying with the Chinese government’s demands to control information. When Yahoo handed over data last fall that landed a Chinese journalist in jail for 10 years for simply e-mailing newspaper briefing comments to a democracy group in New York, outrage followed. But the mistake many observers make is to equate the power of corporations with the power of governments.

Read more here.

Declan McCullagh and Anne Broache at CNET today report on federal agencies tracking web visitors against the rules. It’s not surprising, but it is disturbing. If government wants to increase surveillance in America and argues that we should trust them to follow the rules, then this example puts a huge dent in their argument. If a company made a similar mistake, they’d be facing a fine, but what will happen to the bureaucrats who ignore their public duties?

This is cross posted from Sonia Arrison’s blog.

More on Susan Kennedy

by on December 9, 2005

California Gov. Arnold Schwarzenegger rocked the political world recently with the appointment of Susan Kennedy, Democrat and Public Utilities Commissioner (PUC) as his chief of staff. Republicans might feel snubbed, but Kennedy’s appointment is good for the technology sector.

A thriving technology sector is good for California, and next year key policy issues will affect both consumers and technology companies. These include the so-called “Consumer Bill of Rights,” cable franchise reform, and broadband deployment.

Although the Golden State is home to Silicon Valley, many legislators remain surprisingly unaware of how their actions affect innovation, economic growth, and consumer well being. Now that Susan Kennedy is joining forces with the Governator, that ignorance should start to dissipate.

A hard-working and tough-talking Susan Kennedy didn’t know much about telecommunications issues when she was appointed to the PUC just under three years ago. But after a lot of reading, observing, and discussing, she came to the same conclusion that any honest and informed person would: the telecommunications sector is over-regulated.

Read more here.

There’s a company called Riya that offers software to search personal photos using face recognition technology. Jennifer Granick of Stanford law school wrote a piece about it and its privacy implications, but her take is old and doesn’t see the big picture. Yes, face recognition technology changes society in ways that no longer allows the type of anonymity we have been used to, but that’s not the story here. The news–and it’s GOOD news–is that the government no longer has a monopoly on this piece of surveillance tech. That means the threat of living in a big brother state actually decreases, as it allows anyone to watch the watchers. Moore’s law keeps making technology more accessible and that promotes liberty.

WiFi with your Bourbon

by on November 29, 2005

The city of New Orleans announced it will offer “free” WiFi over a network it deploys and owns. Everyone knows that “free” is not really free, making this one more disaster to add to the city’s woes. Using taxpayer dollars to subsidize porn surfing whilst people starve and go homeless is unconscionable. Hasn’t that city suffered enough?

Mayor Gavin Newsom has been pushing the idea of “free WiFi” in San Francisco, but it would be anything but free. The Mayor’s play to grant special status to only one WiFi provider in San Francisco would essentially create a government-controlled WiFi monopoly in SF. There are so many reasons to oppose a government-controlled Internet, that if I listed them all here, you’d be reading all day. To learn more, you can go to the Pacific Research Institute’s (PRI) fact page or you can see links to related data here.

PRI is calling on all San Franciscans to oppose government controlled WiFi. Please go to the PRI homepage and click on the “Fight Government-Controlled Internet in San Francisco” banner up top. This will send an e-mail to Mayor Gavin Newsom expressing your views.

If you join in–and if you pass the word on to your friends and family to join in–it will help to strengthen the voices of the free market and free speech.

Here is a open letter PRI wrote to the Mayor.