-Caveat Lector-

March 7, 1999

 Microsoft Will Fix Privacy Problem

 By The Associated Press

 WASHINGTON (AP) -- Microsoft Corp., whose Windows software runs
most of the world's personal computers, acknowledged that the latest
version of its dominant operating system can be used to help trace the
identity of authors of some types of electronic documents.

 A software programmer, Richard M. Smith of Brookline, Mass., first
noticed last week that documents created using Microsoft's popular Word
and Excel programs in tandem with its Windows 98 operating system
included within their hidden software code a 32-digit number unique to his
computer.

 The number, called a Globally Unique Identifier, is at least partly based on
a 12-digit number unique to a computer's so-called Ethernet network
adapter, a hardware device common in business environments that allows
high-speed Internet connections.

 The disclosure carries important privacy implications, since those
documents can be traced back to a specific computer even when an author
wishes to remain anonymous.

 The majority of home computers aren't equipped with such network cards --
 although they're becoming more common as even consumers in their
homes opt for high-speed Internet connections.

 But even without an Ethernet card installed, Windows 98 still generates
this 32-digit identifier -- it merely bases the number for those computers on
a ``dummy'' network address that is the same for all such machines.

 Robert Bennett, Microsoft's group product manager for Windows, said
Sunday that the company will create a software tool to let customers clear
the ID number from the Windows repository of system settings, called its
Registry.

 The ID number is transmitted to Microsoft whenever a customer registers
his copy of Windows 98 using the automated ``registration wizard''
included in Windows.

 ``Since people's Ethernet addresses are also being placed into Word
documents, someone at Microsoft could use this database to look up
where a document came from,'' Smith warned in e-mail.

 Bennett said Microsoft was investigating whether the number ever was
sent to the company even when customers had explicitly indicated they
didn't want information sent about their computers, such as their network
address.

 ``Microsoft is in no way using that identifier, or any identifier, to track user
behavior or to do any marketing,'' Bennett said, adding it was never
intended to be sent regardless of consumer preference.

 ``If it is, it's just a bug,'' Bennett said. ``If it is indeed happening, and we
have testers working this weekend, we'll absolutely fix that.''

 Bennett promised that Microsoft also will wipe any of those numbers from
its internal databases that the company can determine may have been
inadvertently collected.

 Privacy groups said they were appalled by Microsoft's decision to
generate an identifier that can so easily be traced.

 They warned, for example, that a coworker could easily verify the address
of a colleague's network card and then prove whether that colleague
anonymously wrote specific Word or Excel documents.

 ``The impact is, if you have one of these tattooed numbers, you can extract
the Ethernet address of the computer that created the document,'' said
Jason Catlett, president of Junkbusters Corp. of Green Brook, N.J., which
lobbies on privacy issues.

 Microsoft's decision and its implications comes as Congress considers
whether to propose new federal privacy laws governing the high-tech
industry.

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