Archive for October, 2000

Microsoft Hack: What’s the Truth?

Monday, October 30th, 2000

Microsoft has given out several different versions of the hacking attack it suffered recently. The truth is getting — as so often happens with Microsoft — impossible to discern.

The Register has one of the better stories on this situation. But the questions are still out there, and Microsoft has not begun to answer them in a way that will satisfy anyone who wants to believe, however forlornly, that the world’s largest, richest and most powerful software company has even half a clue about security.

Microsoft has never seemed to give much of a hoot about security. Features and maintaining the monopoly have always mattered more than the safety of customers’ data. Chickens come home to roost, even in Redmond.


Copyright Holders Victorious

Wall Street Journal: Federal office backs companies’ right to limit ‘Net content access. The decision is the latest signal that the legal landscape for digital copyright issues is sorting out largely in favor of copyright owners.

The Copyright Office of the Library of Congress agreed to only two minor exceptions in the Digital Millennium Copyright Act. The law was written to favor copyright owners, and it has all but abolished the rights of the rest of us.

Surprised? Not me, but then again the copyright wars have made me somewhat cynical.


Our Next President

  • Michael Kinsley: The Emperor’s New Brain. The problem is probably laziness or complacence rather than actual inability, and journalists’ reluctance to call someone who may well be our next commander in chief a moron is understandable. But if George W. Bush isn’t a moron, he is a man of impressive intellectual dishonesty and/or confusion.
  • David Shribman: Missing the points. From beginning to end, the steady diet of traditional fare has given the campaign a warmed-over feeling, as if it were being conducted in a parallel universe. This was a 20th-century presidential campaign conducted in the 21st century

    I grow ever-more disillusioned with my own profession after campaigns like this one. Journalism has almost totally failed this year, and we will be worse off for it.

  • An Independent Press

    Sunday, October 29th, 2000

    We have, on balance a free press in the United States. Many other parts of the world can’t say that, and an organization in Prague is doing something about it.

    More in my Sunday column.


    Technology and Human Beings

    CamdenOperaHouse: < br>

    Technology’s soul is most apparent by its absence. Silicon Valley remains disturbingly preoccupied with money and velocity, the binary values of today’s tech culture.

    Not here, not in Camden, Maine. Not this weekend, anyway.

    I’ve been participating in a conference like few others. It’s called Pop!Tech, and it is a reaffirmation of the values that matter most in a world where soulless technology has come to play such a dominant role.

    The subtitle of Pop!Tech, which took place at the beautifully restored Camden Opera House (pictured above, with MIT’s Rodney Brooks speaking), was “Being Human in the Digital Age” — an apt theme. At this gathering, technologists, educators, artists, politicians and others contemplated what really matters in this New Economy equation. People.

    “How does it really affect the bottom line of your life?” asked Mike Hawley, a professor a the MIT Media Lab.

    And how does it affect other people’s lives?

    Each session seemed more interesting than the one before. Wonderful sparks flew when the governor of Maine, Angus King, sat on a panel with Whit Diffie, inventor of public-key encryption, and the American Civil Liberties Union’s Ira Glasser. King sounds libertarian, but is authoritarian when the mood strikes — he’s a big advocate of fingerprinting Maine’s schoolteachers.

    I was struck by the number of speakers who talked about human values, the ones that truly matter. I wonder if the technologists present really heard what they were being told.

    Let’s assume technology is morally neutral, said Rushworth Kidder, founder and president of the Institute for Global Ethics, based here in Maine. “I’ll grant that it is,” he said, “if you’ll grant to me that human beings engaged in technology are part of a moral community and they must make moral choices in the face of astonishing change.”

    Overall, the human race is becoming more ethical, Kidder said. But is the pace of ethical improvement keeping pace with Moore’s Law? No. Witness the ability of a single individual at a keyboard to create damage on a level once reserved to nation-states.

    “We may be better than our ancestors, but that may not be good enough,” Kidder said.

    Questions of right and wrong are easy. It’s the conflicts between right and right — when each choice can be justified as meeting some value — that are the difficult ones, Kidder said.

    MetcalfeAndSculley:
    Above are the principal hosts of the conference, Bob Metcalfe and John Sculley, as they served locally made ice cream during a Saturday afternoon break.

    I’ll be writing more about the conference, but not until much later today.

    Misplaced Nostalgia on Antitrust

    Friday, October 27th, 2000

    With the likelihood of a George W. Bush presidency growing, the laissez-faire crowd is looking forward to a return to the Reaganesque days when federal consumer protection officials did their jobs pretty much by not enforcing the law. But the anti-antitrust mavens and protectors of corporate prerogatives won’t be home free.

    That’s because Tom Miller, the attorney general of Iowa, and his counterparts around the country will still be around. And this crowd of law enforcers sees consumer protection as one of its top duties.

    In fact, the Reagan years “really energized the states,” Miller said Thursday. “The kind of enforcement we believed in just wasn’t going to happen unless we did it.”

    Miller, who headed the antitrust committee of the National Association of Attorneys General from 1996-98 and still heads the committee overseeing the Microsoft case, was careful to avoid any comment on what might happen in this year’s presidential and congressional elections. But he made clear that the next occupants of the White House and the Capitol won’t be the only people making antitrust and consumer protection policy.

    During the Clinton years the states and federal government have been more partners than adversaries in these areas, though there are always turf questions and disputes over the specifics. “The states play a complementary role,” said Miller, a longtime leader among the state officials.

    Microsoft partisans are mistaken if they think the antitrust cases will go away under a Bush presidency, should the former president’s son be elected next month. Certainly Bush, while carefully avoiding specific comment on the case, has used all the code words necessary to show that he’s on Microsoft’s side.

    But the state attorneys general plan to pursue the case no matter what, Miller said.

    “We will proceed,” he said. “We will not settle or do anything that takes away from our fundamental goal: that Microsoft has to change its fundamental approach in how they deal with the marketplace when they have a monopoly.”

    Miller is a Democrat. But consumer protection has been a hugely popular part of the agenda for Republican attorneys general, too. It’s not just part of the job. It’s also one of the ways these folks get noticed by their constituents as they climb the political ladder. Plenty of Republican attorneys general have ridden the position to the governor’s chair, and helping everyday folks deal with corporate misbehavior has been a smart way to do it. It’s good for constituents — and for office holders.

    “We believe in what we’re doing,” Miller said. That’s good for all of us.

    Network Solutions and Hoarding

    Thursday, October 26th, 2000

    Network Solutions, the monopolistic domain-name registrar and database holder now owned by VeriSign, has been keeping expired domain names off the market with the apparent intention of auctioning them off, according to critics.

    The situation has attracted a lawsuit alleging illegal hoarding.

    Network Solutions denies it’s doing anything of the sort. “We delete names as they expire” from the central database, says Doug Wolford, NSI’s group general manager of Web presence services.

    I’m looking forward to seeing what happens in this case. Someone’s not telling the truth.


    A Privacy Fraud

    Congress seems poised to pass a so-called “privacy bill” that prohibits the sale of Social Security numbers — except that the legislation is so ridden with loopholes that it actually makes the problem worse.

    As the Washington Post reported yesterday, “One exception also would permit state and local governments to continue selling records containing Social Security numbers. The provision is worded in such a way that, critics say, it would allow businesses buying those records to use Social Security numbers with no legal restraints.”

    This fraudulent reform is apparently being pulled off at the behest of the Individual Reference Services Group, made up of big marketers. These people are defending to the death their right to buy and sell your most personal information — and to deny you the right to have any authority to tell them to stop.


    Meanwhile at the Justice Department…

    Wall Street Journal: Computer-crime treaty evokes criticism from U.S. tech firms. Another provision outlaws possession, in some circumstances, of network-security tools that experts typically use to diagnose computer systems; authorities fear those tools could be used by hackers. The treaty also would require citizens to disclose passwords or unscrambling keys to unlock data police seize in criminal cases.

    The Clinton administration’s outright hostility to civil liberties is on display again. These folks will do anything and go anywhere to defeat your rights in the name of security.

    Not that a Republican administration would be much better…


    On the Road

    I’m heading to Maine for the Pop!Tect conference, subtitled “Being Human in the Digital Age” — a fascinating gathering of technology and the humanities. I’ll be moderating a panel with MIT’s Pattie Maes and author Ellen Ullman. Stay tuned for reports.

    Absentee Senator on Technology

    Wednesday, October 25th, 2000

    I’ll be voting sometime during the next week, having retrieved my absentee ballot yesterday at the Registrar of Voters’ office in San Jose. I take the franchise seriously. You should, too. End of civic sermon.

    The polls show Dianne Feinstein leading her Republican challenger, Tom Campbell, in the race for Senate. People apparently like the incumbent’s views on a lot of issues.

    But when it comes to technology this one is no contest. Cambell understands the issues. Feinstein plainly does not.

    The difference is most apparent when you look at the two candidates’ Web sites. Cambell discusses several key technology issues on his site with clarity and, even if you don’t agree with what he says, apparent conviction. Feinstein’s site, conversely, barely mentions technology.

    The incumbent, moreover, has been actively hostile on issues that people who care about technology consider important. She’s repeatedly indicated her willingness to suspend fundamental civil liberties in pursuit of speech on the Internet if she dislikes that speech — an astonishing position for any politician who claims to understand why we have a Bill of Rights. She’s supported restrictive encryption policies. Campbell has been much more sensible.

    Campbell also spoke out on one of the key issues of the past few years when he voices support for the antitrust suit against Microsoft. I don’t recall Feinstein ever opening her mouth on this.

    There are other reasons to consider Campbell. He’s a voice of reason on the failed drug war, urging treatment instead of filling jails with drug users. Feinstein is for more and more and more of the same old stuff — a drug war that does more to corrupt and harm our society than we seem to understand.

    An interesting race.


    New Economy Firms Less Forthcoming

    Mercury News: Annual Reports Skimpier . “This is an indictment of institutional investors’ judgment over the last couple of years,” said Shelly Taylor, publisher of the study.

    Not to mention the Wall Street’s greed…

    Post Being Recovered

    Tuesday, October 24th, 2000

    The contents of this post have not been recovered from the archives yet.

    Techies and Pols: Not so Different?

    Sunday, October 22nd, 2000

    Technology executives and politicians have more in common than the former would care to admit. At least that’s my observation after many years observing both.

    Here’s my Sunday column explaining why:

    In another journalistic lifetime I covered politics, including several statewide campaigns and one presidential contest. It turned out to be fine training for the technology world, because leading politicians and the tech elite share some key attributes.

    The parallels are not precise, of course. But over the years I’ve noticed some fairly uncanny similarities among these folks and their vocations.

    Let’s look at the major ones.

    Compressed Time: There’s never enough.

    This may seem counterintuitive, because we generally perceive government to be working slowly. But when it comes to compressing vast effort into too little time, a political campaign strongly resembles technology’s product-development cycle.

    Campaigns have drop-dead deadlines, namely Election Day. Candidates, campaign staffs and supporters work unreal hours. A campaign is called a race for good reason: there’s only one winner.

    The technology business lives on Internet Time. Instead of Election Day, the deadline is the product launch date. Being second, in a market where the first mover has a massive advantage, can be a disaster.

    The analogy continues even after Election Day or product shipment, because the cycle just starts again. No politician or tech executive ever feels he or she can relax for long. Someone is waiting to take advantage of any weakness.

    Hype and Lies: Why tell the truth when exaggeration or deception works better?

    Maybe this and other less-noble attributes are related to the lack of time, or the public’s incredibly short attention span. They’re still unnerving.

    Building up a candidate or CEO — a campaign or product — is an exercise in raw hype. Consultants and marketing people orchestrate buzz and attention with cynical tactics that nonetheless seem to work.

    Politicians learn to say anything to get elected and do anything to stay in office. The incessant distortions from presidential candidates Al Gore and George W. Bush are sickening. They are not surprising.

    Tech executives are equally brazen. The word “vaporware” — denoting a product that has been promised but which fails to arrive in any timely way, if ever — was coined by technologists. And Microsoft Corp. Chairman Bill Gates’ videotaped deposition in the Microsoft antitrust trial showed a man so unfamiliar with honesty that it helped poison his colleagues’ subsequent testimony.

    Masters of the Universe: Big achievements engender bigger egos.

    Egomania doesn’t always accompany power, and arrogance doesn’t necessarily equate with wealth. But there does seem to be a relationship, and nowhere more so than in politics and technology.

    When sycophants are constantly telling you how great you are, it must be easy to start believing in your greatness. You convince yourself that the rules are for other people. Gore repeatedly violated the rules to which he’d agreed in last week’s debate, and when asked about this by a reporter, he responded that he didn’t care.

    What’s legal isn’t necessarily right, but that distinction eludes many in the tech industry. Oracle Corp.’s Larry Ellison called it a public service when his company paid private investigators to go Dumpster diving — or was it “opposition research”? — in search of sleazy activities by Microsoft.

    Degree of Difficulty: This stuff is hard.

    Politicians face competing interests. They live in a world where compromise is not only necessary but valuable. Getting anything done is enormously difficult. The press and the public carp when politicians fail to achieve perfection, but to politicians, that just shows how poorly informed the rest of us tend to be.

    Technologists, too, shake their heads at the criticism. By some measures, it’s something of a miracle that million-line software programs work as well as they do. Bugs are part of the system, and users just don’t appreciate the challenge.

    Changing the World: Deep down, technology and political people genuinely believe they’re making a difference.

    Politicians can have cynical motives, and frequently do cynical things. But I’ve often been moved by their deep-down commitment to public service. The system in which they operate is corrupting, but most are not corrupt.

    Technology people have tended to distinguish themselves from typical widget-makers and others in the business world. Their field is so nascent, and such a catalyst of change, that they can dream, sometimes realistically, of having outsize impacts.

    All these similarities make me wonder sometimes why the tech leaders exhibit such contempt for politicians. Maybe, when it comes to certain characteristics, it takes one to know one.


    Support Microsoft, Get $$$

    Wall Street Journal: Bounty Payments (paid registration required). A letter to a member of Congress from a mayor or local Republican Party official is worth $200, the guidelines say.

    No comment necessary.

    Arts and Silicon Valley

    Friday, October 20th, 2000

    The arts are an afterthought in the richest place on the planet. That’s shameful.

    A local organization is trying to do something about the situation, and a CD-ROM simulation is part of the campaign. More in my Friday column.


    Bush Versus Antitrust

    Not that there was any serious doubt about it, George W. Bush has made it clear that he’d look unfavorably on antitrust enforcement (Reuters) if elected president.

    There was a time when true conservatives believed in protecting competition. No more, sadly.


    Crime Pays?

    Wall Street Journal: Teenage stock manipulator got away with most trades. While (the SEC) forced the teenager to disgorge $285,000, including interest, he actually made about $800,000 trading small-company stocks — meaning he kept more than $500,000 in profits.

    Outage of Pocket

    Thursday, October 19th, 2000

    Sorry for the absence yesterday. We had a severe problem with our Internet connection, and by the time it came back up I had to head out to give several talks.


    Gore, and What’s Right

    After the third presidential debate — or joint appearance, as Dan Rather puts it more accurately — Al Gore was interviewed by CNN. The reporter noted that Gore had repeatedly broken the rules, which both sides had agreed to follow, by directly addressing Bush and the audience.

    “I don’t care,” Gore said, adding that he wanted to make his points and, in effect, would pretty much do as he pleased.

    From my viewpoint, the rules were stupid. Gore and Bush should have allowed direct questioning of each other and the ability to follow up an audience member’s question for clarity (or whatever).

    But Gore’s flippant view of rules was more than disturbing. It was a bit scary.

    This is a man who believes the rules are only for other people. Is this what we want in a president?


    Proposition 39

    California voters are facing a pivotal vote on whether we care enough about our kids’ education to pay for it. This is Proposition 39, which has won the endorsement of an array of technology leaders.

    More in this column.


    Talking about Money

    Dave Winer: Transcendental Money. Transcendental money is the amount of money required to transcend time. It makes just enough money to satisfy all your reasonable needs, wants and desires, but no more.

    A River Flows Through It

    Friday, October 13th, 2000

    vltava: Vltava River in Prague
    The Vltava River flows through Prague and is after the imposing Prague Castle on the hill, the most notable feature of the local landscape.


    Dot-com Confidence, and a Hard Look

    Or maybe the word should be “arrogance” — because even in the wake of the current market debacle and the real-world return to rationality, the dot-com executives here at the European Technology Roundtable Exhibition managed to pretend they weren’t all that concerned. Good acting, I guess.

    I had a useful chat with Paul Deninger, the chairman and CEO of Broadview, a mergers-and-acqusitions advisor focusing on information technology. He’s been outspoken for at least a year now about the ugly charade that has played out in the tech marketplace.

    Entrepreneurs, venture capitalists, investment bankers and brokerages managed to shift almost all risk into the public markets by taking companies public ridiculously soon, often businesses that operated on a wing and a prayer, not any serious fundamental value. The people with the least information and the most to lose — average folks who bought into the hype and wanted into that “Internet stock thing” — were the suckers.

    “Small investors are all at a disadvantage,” he says in a classic understatement.

    But Deninger has a theory that the day traders, also among the biggest losers in the recent downturn, share the blame. Through profound ignorance of fundamentals, they created markets for companies that had unsustainable business models.

    When companies needed secondary financing, the day traders were’t around, and helped create a double-whammy against survival.

    “Day traders don’t own,” Deniger points out. “They trade.”

    Most of them lose, too. It’s a shame if they’re dragging everyone down with them.