Archive for August, 2003

Europe Taking on Microsoft?

Wednesday, August 6th, 2003

  • AP: EU Alleges Microsoft Abuses
    . Backed by new evidence, the European Union on Wednesday accused Microsoft Corp. of trying to monopolize markets for server software and audiovisual players and gave the U.S. giant a last chance to defend itself before demanding changes in its Windows operating system.

  • It probably won’t matter. Microsoft can use the legal system there the same way it’s used the system here — fight like hell, delay wherever possible and stall when the inevitable settlement is written. And then, of course, fail to honor the terms of the settlement, forcing the legal system to step in again. So by the time any serious action is undertaken, it’s too late.

    Worked pretty well in the U.S., except that Microsoft got the government itself to change sides. Let’s see, $50 billion in cash, and counting, and more power than ever in its monopoly markets, plus real (if not yet appreciated) inroads into vital new markets.

    Thanks to our amazingly short attention span, Americans are bored with the Microsoft story, another great advantage for the serial lawbreaker. Well, guess what? The boys in Redmond aren’t bored with pursuing their control over choke points of tomorrow’s commerce and communications. They’re working hard, as aways, and making serious progress. By the time people notice again, it may be too late.

    Comments


    Posted by: on August 6, 2003 12:37 PM

    Dan hits this right on the nose. With corporate scandals, terrorism concerns, etc… MS flies under the radar after the JD sell out. Sadly, once some of the $50M starts moving around, the consumer will lose again when the EU capitulates to a toothless remedy. As Dan suggests, some “free” markets are in jeopardy…


    Posted by: on August 7, 2003 07:57 AM

    The way things are going, in a couple of decades Microsoft will own everything. Capitalism will end up being replaced with a feudal system, with every citizen held in vassalage to Bill Gates II.


    Posted by: on August 8, 2003 05:32 AM

    The only force on Earth that can stop Microsoft now is the free market….aided by a sluggish econonmy. Free software has changed the playing field in some key MS markets (Servers and Office productivity products). I think we have a long road a head, but Open Source, and price competition from it, will begin to erode MS Hegemony.

    What we really need is for government to declare they will only purchase, and deal in, software that supports open, non-patent encumbered file formats.


    Posted by: on August 8, 2003 01:26 PM

    aNonMooseCowherd: BG II is actually BG IV. Get your facts straight.

    Terms of Disservice

    Tuesday, August 5th, 2003

    In my Sunday column I talked about why I’ve moved to VoIP, voice over Internet Protocol, for my domestic and international long-distance phone calls. I chose Packet8 over Vonage for several reasons, only one of which was price.

    The other key reason had to do with a pet peeve: the terms of service. Packet8’s “Terms and Conditions of Service” could be better, but they were miles better than Vonage’s “Terms of Service.”

    Now, I’m accustomed to ridiculous terms of service from the technology industry. Most of the time we end up with little or no choice — and virtually never do potential customers actually read this legal boilerplate that tends to give us no rights while explictly permitting the vendor to treat us as chattel.

    In this case, the difference turned out to be stark. Vonage prohibits business use by residential customers.

    I called Vonage to ask if any of its residential users were not, therefore, technically in violation of the agreement. After all, it’s impossible to imagine a home user of such a system not making, at the very least, an occasional call to the office.

    A Vonage spokeswoman said the purpose of that language was to prevent people from “gaming” the system — that is, setting up such abusive things as call centers or fax-blasting operations that would amount to cheating. Trust us, said a spokeswoman, we’re not looking to bust our customers.

    I believed her, and some of my friends are extremely happy with Vonage’s service. But she was missing the point that was a deal-killer for me — that Vonage reserves the right to change customers’ deals in mid-stream. No one using the service for a home office, for example, could be certain that Vonage wouldn’t suddenly decide that he or she was in violation, and order a change in service tiers.

    Packet8, a unit of 8×8 Inc., had similarly restrictive terms of service when I first checked. Again, I asked some questions and pointed out that virtually all residential customers would be technically in violation.

    Hmmm, said Huw Rees, vice president of sales and marketing of 8×8, those terms did look a bit Draconian. and the next day, they’d been changed. Now Packet8, which also sells an Internet videophone service, specifically permits “reasonable business use” by its residential customers.

    True enough, Packet8 could also unilaterally decide that my business calls — maybe a dozen in a day when I’m working from home — are somehow abusive. But Rees, like his Vonage counterpart, said the goal was to prevent gross abuse.

    Notice the difference. Both companies reserve the right to challenge customers whose calling patterns are abusive. But one starts by saying “No.”

    I’m more likely to patronize businesses that start by saying “Yes.”


    Reader challenge: Let’s collect all the most ridiculous or overbearing terms of service. Please post them in a comment here (note: just list the page URL on a line by itself, as blog postings here don’t recognize embedded HTML). Or send them to me by e-mail at and I’ll post them here. Thanks.

    Comments


    Posted by: joe on August 5, 2003 12:38 PM

    https://www.hushmail.com/login.php?subloc=termslite

    Hush may terminate your access to the Service and any related service(s) at any time, with or without cause, with or without notice, effective immediately, for any reason whatsoever. Hush has no obligation to store or forward the contents of your account.


    Posted by: on August 5, 2003 06:31 PM

    I have to say, I do love Vonage. And being a student, I truly never make business calls – though your concerns about the draconian terms of service are certainly justified.

    I also wonder, can numbers be ported from Vonage to Packet8? I had to change my phone # when I first signed up with Vonage, and while I’d like to switch to Packet8 because of pricing, I’m hesitant to change my # yet again.


    Posted by: Eric W on August 6, 2003 08:14 AM

    I used DSL for several years. Then Northpoint went bankrupt, and finally Telocity (DirectTV) dumped me and hundreds of thousands of users becuase they couldn’t become a monopoly. When it came time to find an new broadband provider, I had recieved such terrible tech support from SBC (the last mile provider for my DSL the whole time) I was determined to never deal with them.

    So I went with (holds nose) Adelphia. It raised my cable bill $20. So not even SBC’s $29.95 per month, for the first year, DSL deal is even a close consideration. Who knows what it will cost after that first year is up? The competition should be dead by then if the government lets SBC have their monopolistic way.

    DSL was great because it had a static IP address, but it was much slower than cable. I kept it anyway since it let me run Apache Web server on my Mac. Now I can’t, so I have to pay another web services provider a fee to have my web page. Such service! ISPs don’t need to offer adequate services when they have monopoly power. And we pay the price.

    I hope some day I can just hook my computer up directly to the Internet and not have to let these monopolistic powers determine what I can and can’t do with my computer on the net. I know there are dangers to that, but I’ll take that over their trying to turn the Internet into another one-way cable TV revenue stream.

    Why should the owners of the pipeline be allowed to control what flows through those pipes? Because they’re the ones with the money to sway political powers.


    Posted by: on August 10, 2003 05:07 PM

    Dan, no offense, but I find this particularly ironic, given:

    “Although we do not have any obligation to monitor reader comments posted to this Weblog, we reserve the right at all times to review them and to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable to us in our sole discretion and to disclose any information necessary to satisfy the law, regulation, or government request.”


    Posted by: Barry Ritholtz on November 19, 2003 12:35 PM

    You should be aware that packet 8 — or someone reselling their services — is a massive spammer.
    Next time you speak with them, please ask them why they are willing to use such a disreputable
    form of advertising.

    I would be very hesitant to promote them because of that . . .


    Posted by: bbphone on December 12, 2003 11:01 AM

    For more info on Packet8 and a $20 Packet8 discount coupon code, please visit http://solarice.typepad.com/packet8/


    Posted by: Packet 8 on March 13, 2004 01:16 PM

    I think Packet8’s terms of service are not different than any other phone company!

    On the Road…

    Friday, August 1st, 2003

    Few if any postings until late Saturday or Sunday…

    Comments

    PacBell Challenges Copyright Cartel

    Friday, August 1st, 2003

  • Mercury News: Pac Bell Internet sues over subpoenas. Pacific Bell Internet Service said a cascade of subpoenas and 16,700 take-down notices from an electronic “bounty hunter” are turning it from an Internet service provider into the Internet police. The San Francisco-based unit of SBC Communications sued the recording industry, a New York software company and a San Francisco porn site in federal court Wednesday, saying it is being inundated with legal orders and can see no end in sight.

  • I’ve taken my shots at SBC and its Pacific Bell subsidary, but this deserves compliments. The company is sticking up for its customers as well as its own business.

    The music industry wants to turn ISPs in to copyright cops. The industry doesn’t want to go through the bother of persuading a judge that a user is a probable infringer — so it’s blanketing the nation’s courts with subpoenas based solely on one side’s allegations.

    As an SBC lawyer told the Mercury News’ Dawn Chmielewski, “These DMCA subpoena powers allow anyone to write a simple letter and obtain a subpoena by nothing more than the stamp from a clerk of court that can be used to ask for the private information of any Internet user.” This is unacceptable abuse of the system.

    If the record companies have evidence — and they surely do in many cases — they should be compelled to show some of it first. Once again, a little balance would go a long way.

    Comments


    Posted by: Kim Helliwell on August 1, 2003 02:35 PM

    I’m curious how this case will differ from the Verizon case? I haven’t seen that mentioned in any of the stories about this that I’ve read. It appears to be a difference of degree or volume, rather than of kind. So, how will the legal system get around the precedent of the Verizon case? Won’t we just end up with DMCA upheld, once again, and the Copyright Cartel still triumphant?


    Posted by: Kim Helliwell on August 1, 2003 05:07 PM

    I should have said: “How will Pacbell get around the precedent of the Verizon case?”


    Posted by: Dan Gillmor on August 1, 2003 05:31 PM

    Different federal circuit. Judges around here are savvier about technology.


    Posted by: on August 2, 2003 07:46 AM

    I have to agree with both Dan and Kim, but I lean more to Kim.

    While the judges are more savvy in the San Ramon area than others, our legal system is very precedent-savvy, as well. Sure, the volume is higher – and that, along with the “show us the suspicions” – will probably be the crux of SBC’s issues.

    But break the case down, request by request. Each one – alone – is upheld to some degree by the Verizon precedent.

    Just a bunch of the same, instead of one.

    My take: SBC is NOT doing this for their customers. NO. They are doing it for two reasons: 1) To save themselves the time and effort (both this time and in the future; if there was keystroke combo that would e-mail the request info to RIAA, they’d do it…), and 2) To protect themselves against future lawsuits. From both the customers (who will make some sort of privacy-invasion argument), AND the RIAA — hey, if RIAA is correct, and SBC customers are trading pirated files…well, SBC can be held for some sort of contributory infringment.

    And who will the RIAA go after first? The 15-year-old who trades InSynch files, or … a multi-billion dollar company?

    Yeah, that’s a toughie…

    Repeat after me: It’s all about the litigation (witness the SCO vs. IBM fiasco..)


    Posted by: on August 2, 2003 09:22 AM

    My take? SBC probably got served out the wazoo and doesn’t want to do the work. We deal with them constantly as an ISP and they never fail to do the least work possible in their legal and billing departments.


    Posted by: Sunidesus on August 2, 2003 05:42 PM

    Here’s hoping that the judge in that case does the right thing instead of bowing down to the RIAA like the rest of the government has been doing.


    Posted by: on August 5, 2003 10:40 AM

    Dear Mr. Gillmor,

    I’m afraid you fundamentally misunsterstand the subpoena process in civil litigation. In the federal courts, parties are empowered to issue subpoenas requiring others — both parties and non-parties — to hand over documents and appear for depositions, etc. This has been the case since at least the early part of the 20th Century (possibly earlier — I am not a legal historian), but in any case well before anyone had conceived of the Internet or the DMCA. The issuance of a subpoena does not require court approval; private parties issue them directly by themselves. Subpoenas are ALWAYS “based solely on one side’s allegations.” The recipient can, however, fight the subpoena in court. Nearly every subpoena seeks information that the recipient considers “private” and wishes to keep that way — business records, personal information, etc.

    The expedited subpoena provisions of the DMCA are really not a major change from the situation in pre-DMCA days. Prior to the DMCA, the copyright owner could file suit against a “John Doe,” and then issue a subpoena to the ISP seeking the identity of the alleged infringer (with no court approval necessary for the subpoena). The DMCA’s expedited subpoena provisions simply streamline the process, allowing the copyright owner to issue the subpoena directly, BEFORE filing suit. But in neither case does a court have to look at a subpoena prior to its issuance to decide whether it is legitimate. Your quarrel appears to be with the civil discovery process in general, not with the DMCA in particular.

    One last point: You say that SBC may get a different result in federal court in California because “Judges around here are savvier about technology.” This is not fair. First, many federal judges in the DC Circuit are savvy about technology. But, more importantly, I think you misunderstand the role of judges in such a case. The vast majority of judges decide cases by asking, “What does the statute require?” They do not — as you imply they should — ask, “Do I think it’s a good statute? And, if not, how should I write an opinion in accord with how I would have preferred the statute was written.” Like it or not (obviously you don’t), the DMCA authorizes the type of subpoenas that the RIAA has been issuing. But it’s the fault of Congress, not of the judges who are under an obligation to interpret the law faithfully as it was written — not as they might prefer it to be.