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TOP STORIES FOR FRIDAY, AUGUST 02, 2002
  H-P Withdraws Warning
  Utah Man Sues Under State's New Spam Law
  Survey Shows New Willingness to Pay for Digital Content
AND
  Pressplay Modifies Its Service
  Wireless Restrictions at Pentagon
  IBM Debuts New Processor Facility


H-P WITHDRAWS WARNING
Hewlett-Packard has backed down after a strong and vocal reaction
against the company's threat to use the Digital Millennium Copyright
Act (DMCA) against programmers who disclose flaws in H-P's software.
The company had sent a letter to SnoSoft, invoking the copyright
legislation as grounds for potential legal action against the
researchers for disclosing security flaws in its Unix software. Many
took the letter as an attempt to stifle independent research into
system security. According to an official at H-P, the reaction was
"significant." H-P would not comment on whether it would pursue action
against SnoSoft outside the DMCA, but the company said it would not
rely on the DMCA and that researchers who follow "industry standard
security practice" have no reason to fear legal warnings from H-P.
CNET, 1 August 2002
http://news.com.com/2100-1023-947745.html

UTAH MAN SUES UNDER STATE'S NEW SPAM LAW
A Utah man has filed a class-action lawsuit against Sprint under the
state's recently enacted legislation concerning unsolicited e-mail.
Utah's law requires that companies sending unsolicited e-mail must
provide their legal name and address, put "ADV:" in the subject, and
allow consumers to opt out of receiving more messages. The law allows
for damages of up to $10 for each unwanted e-mail that is sent, up to
$25,000 per day. Terry Gillman sued Sprint, saying the company did not
abide by the restrictions the new law places on senders of e-mail
solicitations. In an odd twist, Sprint requested that Mr. Gillman turn
over his hard drive so that the company could "better investigate and
prevent such alleged violations." An attorney for Gillman said the
request is an intimidation tactic and that it would be "ridiculous" for
all of the 1.4 million potential plaintiffs to submit hard drives.
Wired News, 1 August 2002
http://www.wired.com/news/business/0,1367,54250,00.html

SURVEY SHOWS NEW WILLINGNESS TO PAY FOR DIGITAL CONTENT
Results of a survey by the Online Publishers Association show consumers
are increasingly willing to pay for online content, though advertising
remains the primary source of revenue for commercial Web sites. The
survey examined data for online spending habits of more than one
million consumers, showing that many more users paid for digital
content than in previous years. Business and financial news sites saw
large increases in paying customers. Sports-oriented Web sites also had
increases in subscription. Many general news sites such as ABC.com and
CNN have already or will soon charge for portions of their content,
especially features such as streaming video. However, of the 1,700
sites included in the survey, the subscription revenues for the top 50
sites represent 85 percent of the total revenue for all sites, showing
that for most sites subscriptions still only generate small amounts of
income.
New York Times, 1 August 2002 (registration req'd)
http://www.nytimes.com/2002/08/01/technology/01ONLI.html

AND
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PRESSPLAY MODIFIES ITS SERVICE
The battles continue between "legitimate" online music services--those
owned or operated by music labels--and peer-to-peer file-sharing
networks, which many regard as violating copyright protections.
Pressplay, the music service of Sony and Vivendi, is expanding options
for its subscribers, including the ability to download some music
permanently. The change will give Pressplay an advantage over other
music-industry services, but they are expected to follow suit in the
coming months. Pressplay will offer several subscription levels, with
the higher priced ones allowing some portion of downloads to be
transferred to other devices, copied onto CDs, and kept even after the
subscription ends.
Wall Street Journal, 1 August 2002 (sub. req'd)
http://online.wsj.com/article/0,,SB1028152738687870280,00.html

WIRELESS RESTRICTIONS AT PENTAGON
Citing security concerns, the Pentagon's CIO, John Stenbit, said he
will release new rules soon disallowing most if not all wireless
devices in military facilities. Personal wireless devices including
cell phones and two-way pagers represent significant opportunities to
eavesdrop or otherwise compromise security in a classified environment,
according to officials at the Pentagon. In addition, wireless local
area networks (WLANs) present other possible network vulnerabilities.
In May, a security expert was able to gain access to the WLAN at the
Defense Information Systems Agency simply by sitting in his car across
the street with a laptop and scanning software. Richard Clarke,
cybersecurity advisor to President Bush, said, "We should all shut
[WLANs] off until the technology gets better."
ComputerWorld, 1 August 2002
http://www.idg.net/ic_912223_1794_9-10000.html

IBM DEBUTS NEW PROCESSOR FACILITY
IBM opened a $2.5 billion microprocessor facility this week in East
Fishkill, New York, saying that the new plant is the "most advanced of
its kind." It is the first large-scale facility to produce chips on 300
millimeter wafers rather than typical 200 millimeter ones, allowing the
company to save more than 30 percent of production costs. The plant
will mass-produce chips thinner than 0.1 micron and will also allow for
circuits smaller than 100 nanometers. The opening of the plant comes
amid tough times for IBM and for the semiconductor industry at large.
An official with IBM said the facility is an investment in the future,
pointing out that the industry is cyclical.
NewsFactor Network, 1 August 2002
http://www.newsfactor.com/perl/story/18844.html

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