-Caveat Lector-

 Now promise us they won't put the Clipper Chip
 technology in the new MMX-2 instruction set....


 Intel to electronically ID chips
 ---------------------------------
 E-commerce, anti-theft and anti-fraud efforts
 to benefit, but privacy concerns are real.

 By Robert Lemos, ZDNN <http://www.zdnet.com>

 Intel Corp. will unveil plans to embed identification
 numbers in its PC processors on Thursday, said industry
 insiders and cryptographers familiar with the company's
 efforts.

 In doing so, the Santa Clara, Calif., chip maker could be
 sounding the death knell for anonymity on the Internet.

 "The application is a double-edged sword.  On the one hand
 it offers more security -- for e-commerce and information
 security," said Barry Steinhardt, associate director and
 privacy expert at the American Civil Liberties Union.

 Do you think Intel's plan for registering chips is good
 for consumer protection -- or bad for personal privacy?
 Add your comments to the bottom of this page.

 "As a pure privacy issue, it allows for a means of
 tracking individuals on the Net."

 Intel briefed the ACLU and others on the details of its
 new identification scheme in hopes of heading off any
 protest by privacy advocates about its new initiative.

 The plan calls for Intel to put a machine-specific ID and
 a random number generator in every processor, said sources
 familiar with the plans.

 The random-number generator will aid e-commerce by
 allowing PCs to encrypt data more securely, while the ID
 numbers will allow merchants to verify a user's identity
 and prevent stolen PCs from getting on the Internet.

 What of privacy?

 In fact, the plan is sort of a cross between vehicle
 identification numbers and caller ID.

 Users who buy a PC will have the ID number feature turned
 on automatically.  Merchants and other "trusted" parties
 will be able to verify a user's identity.

     'The application is a double-edged sword. It offers
      more security ... [and] it allows for a means of
      tracking individuals on the Net.'
                         -- Barry Steinhardt, ACLU

 For those users who want to remain private, Intel
 (Nasdaq:INTC) will provide a software patch to turn off
 the function.  This sort of scheme -- which is referred
 to as "opt out" because consumers have to opt out of
 participating -- mimics the current state of the industry.

 That bodes ill for privacy, though.  "We would rather that
 Intel have the patch installed as the default," said the
 ACLU's Steinhardt, who stated that such a policy would let
 consumers choose whether they wanted to e-commerce-enhance
 their PC.

 But more significantly, if the technology is seen as
 enabling e-commerce, then users may (effectively) not
 have a choice of opting in or out -- the feature may be
 required of users by companies before any transactions
 are made.

 Such worries also extend to the collecting of
 identification information.

 "Intel says they're not keeping a database matching users
 to their ID numbers," said Steinhardt, "but the temptation
 down the road for someone to keep a database will, most
 likely, be too great.  It will happen."


 Stronger security

 Still, even with such concerns, there is no denying the
 benefits of the scheme.

 "It's a matter of pros and cons," said Michael Slater,
 principal analyst for chip watcher Micro Design Resources
 Inc.  "There is a lot of benefit for e-commerce with
 [Intel's] method."

 The identification numbers could act like their vehicular
 counterparts -- essentially blacklisting stolen PCs from
 the Internet.

 "This kills theft," said one cryptographer at this week's
 RSA Data Security Conference, who had been briefed by
 Intel on its plans.  "As soon as you go on the Internet,
 you will be detected."

 For merchants on the Internet, having proof-positive of
 their customers will end consumer fraud and cut the cost
 of doing business with customers you can't see.


 End of overclocking

 And for Intel, the ID scheme takes care of a problem that
 has been plaguing them for years: Illegal overclocking.

      'As soon as you go on the Internet,
       you will be detected.'
                  -- Cryptographer


 Overclocking is the act of running the processor at higher
 speeds, usually an act of the hardware hacker.

 But Intel has repeatedly run into companies that buy, say,
 a 300MHz Celeron processor, overclock it to 400MHz, and
 then sell it as a 400MHz processor.

 Not only does this result in lost profits for Intel, but
 if the processor has problems running at the higher speed,
 Intel is the one blamed -- not the PC maker.

 But with an electronic ID attached to each processor,
 consumers will be able to check their processor against
 Intel's database of products and find out at what speed
 the processor was sold.

 This still allows hobbyists who want to overclock their
 PCs to do so, while cracking down on the frauds.

 Intel refused to comment for this story.



- - - - - - - - - - - - - - - - - - -

At 11:28 AM 1-21-1999 EST, you wrote:

 News: alt.conspiracy
 From: Insanity Set <[EMAIL PROTECTED]>
 Date: Wed, Jan 20, 1999
 Subj: INTEL Creates a Tattle-tale chip


 As long as you click and buy or talk about your favorite
 rock group, no one will bother you.

 Because now every packet you send can be traced to a
 specific processor. YOURS!  Its a cookie that you can
 NEVER delete!

 Isn't that an odd name for a company? Intel. Think about it.

      http://cnnfn.com/digitaljam/wires/9901/20/intel_wg/

 Intel chips to carry IDs

 The world's largest chipmaker plans to put a unique ID as
 well as a random number generator in every processor,
 starting with its next-generation Pentium III chip.

 Because it is wired directly into the chip, the feature
 could enable computer users to be tracked as they surf the
 Internet, analysts said.




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