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TOP STORIES FOR WEDNESDAY, JULY 31, 2002
  Clarke Urges Hackers to Find and Report Bugs
  H-P Uses DMCA Against Bug Finders
  Despite FCC, WorldCom Could End Internet Services
AND
  Microsoft Enlists Academics for Security Board
  IBM to Buy Consulting Group
  Stiff Sentences for Online Fraud
  StarOffice Not Forthcoming for Mac


CLARKE URGES HACKERS TO FIND AND REPORT BUGS
Richard Clarke, the cybersecurity advisor to President Bush, told
attendees of the Black Hat conference in Las Vegas that they should
find and report software bugs that compromise computer security. Clarke
said that some of those listening "have an obligation to find the
vulnerabilities." According to Clarke, hackers should be responsible in
their disclosures of bugs, letting the software company know first and
allowing the company time to fix the bug before the weakness is made
public. If someone finds a bug and acts in good faith to see that it is
addressed, that person should not be prosecuted, Clarke said, saying
that legal protections may need to be installed for hackers disclosing
security flaws.
Associated Press, 31 July 2002
http://www.nandotimes.com/technology/story/484376p-3867743c.html

H-P USES DMCA AGAINST BUG FINDERS
In an apparent first, Hewlett-Packard has invoked the controversial
Digital Millennium Copyright Act (DMCA) to stop researchers from
releasing information about software bugs. Until now, the DMCA has been
used by copyright holders to prevent, for example, release of programs
that allow for the circumvention of copyright protections. But H-P sent
a letter to SnoSoft, a group of researchers, saying that the group
faces fines of $500,000 and jail time for releasing information about a
bug in an H-P Unix application. SnoSoft said that they notified H-P of
the flaw early enough that a patch should have been available before
public disclosure of the bug. An attorney at the Electronic Frontier
Foundation said he expects more companies to try to use the DMCA in
this way because the very broad terms and interpretation of the law
allow for such prosecution. Even in circumstances unrelated to
protecting copyright, he said, such actions "will trigger DMCA
penalties."
CNET, 30 July 2002
http://news.com.com/2100-1023-947325.html

DESPITE FCC, WORLDCOM COULD END INTERNET SERVICES
Michael Powell, chairman of the Federal Communication Commission (FCC),
told a Senate committee that his agency might not have the authority to
prevent WorldCom from shutting down its Internet services, potentially
disrupting service to thousands of customers. WorldCom operates an
Internet backbone through its UUNET subsidiary. Powell said that
although the FCC could force WorldCom to continue to provide phone
service through its bankruptcy, he was not confident that he had the
authority to do the same for the Internet services. Despite assurances
from WorldCom that it has no plans to cut off voice or data services,
Powell's comments spurred lawmakers to say they would introduce
legislation very soon to expand FCC authority to cover data services.
Wall Street Journal, 31 July 2002 (sub. req'd)
http://online.wsj.com/article/0,,SB1028040032754153920,00.html

AND
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MICROSOFT ENLISTS ACADEMICS FOR SECURITY BOARD
Earlier this year, Microsoft announced its Trustworthy Computing
Initiative, an effort to increase the security and reliability of all
of its products. On Monday, the company announced the formation of the
Trustworthy Computing Academic Advisory Board, a group fo 12 to 15
advisors to the initiative. Final members have not been selected, but
the board will include representatives from Cornell University, the
University of California at Santa Barbara, and the University of
Maryland in College Park. A representative from Microsoft said some
prospective members of the board are "critics" of the company's
technology and that the board would work directly with the company's
product divisions. He said, "We're seeking very candid advice and very
candid feedback."
InfoWorld, 29 July 2002
http://www.idg.net/ic_899403_1794_9-10000.html

IBM TO BUY CONSULTING GROUP
In its latest step into offering not just hardware and software but
information technology services, IBM announced it will buy the
consulting arm of PricewaterhouseCoopers for $3.5 billion. According to
an analyst at Merrill Lynch, IBM has an advantage over its competitors
in being able to integrate technology, and the purchase of the
consulting group extends that advantage. Most analysts agree that the
purchase is a good move for IBM. The sale benefits
PricewaterhouseCoopers by separating consulting services from the
auditing functions of the company, a combination that has come under
intense criticism in the wake of the Enron collapse. Deloitte & Touche
remains the only large auditing firm with a consulting arm, though the
company has said it will spin off the consulting business before the
end of the year.
New York Times, 31 July 2002 (registration req'd)
http://www.nytimes.com/2002/07/31/technology/31CONS.html

STIFF SENTENCES FOR ONLINE FRAUD
Two Missouri men convicted of committing online fraud have been given
12-year prison sentences, highlighting a trend toward tougher
prosecution and longer sentences for such crimes. The men were
convicted of offering items for sale on Internet auction sites but not
delivering the goods after they were paid for. An official at the
Federal Trade Commission said he thought that five or six years ago,
prosecutors might not have pursued these cases or argued for such long
sentences. The sweep that caught the two men in Missouri will lead to
at least 19 other prosecutions, according to the FTC. Records show that
online auction fraud is the leading source of Internet complaints to
the FTC.
Washington Post, 30 July 2002
http://www.washingtonpost.com/wp-dyn/articles/A21647-2002Jul30.html

STAROFFICE NOT FORTHCOMING FOR MAC
Contrary to recent news reports, Sun Microsystems and Apple Computer
are not developing a version of StarOffice for the Mac, according to an
official from Sun. Two open-source developers have produced an alpha
version of OpenOffice for Mac; StarOffice is based on the OpenOffice
suite, developed by OpenOffice.org. At a news conference Monday, the
official from Sun and the two developers said that there have been
talks between Sun and Apple, but there are no plans to move forward
with such a project. The developers said it would take them another one
to three years to finish work on their "Apple ready" version of
OpenOffice, one with all of the features and user interface of other
Apple applications.
InfoWorld, 30 July 2002
http://www.idg.net/ic_899509_1794_9-10000.html

***CORRECTION***  The July 29 issue of Edupage mentioned a Web radio
royalty of $.07 per song, per listener. The correct royalty rate is .07
cents, or $.0007. We regret the error.

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