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TOP STORIES FOR FRIDAY, DECEMBER 20, 2002 Feds Look for Increased Internet Monitoring Stanford Studies Slow Adoption of E-Procurement Watchdog Group Criticizes Video Game Makers AND Apple Adjusts Staffing, Faces Pressure in Education Market German Court Approves Restricting Content Movie Studios Invoke DMCA for Latest Suit FEDS LOOK FOR INCREASED INTERNET MONITORING A proposal in the current version of the National Strategy to Secure Cyberspace report, to be released in early 2003, requires that Internet service providers (ISPs) comply with the government�s efforts to build an "early-warning center" to monitor the Internet. Subject to Congressional and regulatory approval, the report defines an Internet strategy for the Department of Homeland Security to defend against Internet-based attacks, as well as computer viruses and worms. The new version gives government a central role over industry for the monitoring center. While intended to gauge the status of the worldwide network overall, the system could function as a wiretap, prompting concerns "about the privacy implications of this as well as liability," according to Stewart Baker, a lawyer for many ISPs. Tiffany Olson of the President's Critical Infrastructure Protection Board points to the need to view and monitor the "entire picture" of the Internet and argues that gathering the data would not necessarily require monitoring individual use. Yet an industry official cautions that providing such data would necessitate real-time monitoring and envisions the system as more invasive than Carnivore, the FBI�s heavily criticized e-mail surveillance system. New York Times, 20 December 2002 (registration req'd) http://www.nytimes.com/2002/12/20/technology/20MONI.html STANFORD STUDIES SLOW ADOPTION OF E-PROCUREMENT Research from the Stanford University Business School suggests that despite the slow adoption of business-to-business (B2B) transactions to date, e-procurement programs offer a level of costs savings and competitive advantage that will spur their use. B2B transactions are seen as risky, according to the research, and potentially difficult to integrate with existing corporate practices and policies. One of the researchers at Stanford said, "They're not just betting on the technology, but also on which technology." Some business have aggressively adopted B2B transactions, however, and the Stanford research argues that the benefits to e-procurement outweigh the risks and that these companies will lead the way for significant growth in the e-procurement industry over the next two years. IDG, 19 December 2002 http://www.idg.net/ic_993293_1794_9-10000.html WATCHDOG GROUP CRITICIZES VIDEO GAME MAKERS The National Institute on Media and the Family has given the video game industry a grade of "F," both for the violent and degrading content of many games and for the industry's inability to keep such M-rated (mature) games out of the hands of children. In seven years of grading the video games, this is the first time the institute has handed out an "F." David Walsh, president of the institute, said the games were especially popular with teenage boys. He pointed out that a Federal Trade Commission study last year showed that kids between the ages of 13 and 16 were able to buy M-rated games 78 percent of the time. Walsh argued that the games should be rated "AO," or adult-only, limiting their sale to persons over 18. Douglas Lowenstein, president of the Interactive Digital Software Association, said his industry is not to blame. There is a market for such games, he said, and parents should bear responsibility for keeping them away from children. Nando Times, 20 December 2002 (registration req'd) http://www.nandotimes.com/technology/story/683184p-5083551c.html AND ***************************************************** APPLE ADJUSTS STAFFING, FACES PRESSURE IN EDUCATION MARKET According to a filing with the Securities and Exchange Commission, Apple Computer laid off 180 employees in the fourth quarter, though the company's staffing level is higher than it was a year ago. The document also notes that Apple is facing increasing pressure in the education market, once a stronghold for the company. Sales to K-12 and higher education customers fell 21 percent in fiscal 2002. In the previous year, education sales had accounted for 26 percent of Apple's revenue. Sales of Macintosh machines fell 14 percent over the same period of time. In the document, Apple said, "These developments are consistent with industry data showing the company losing market share in the U.S. education market in each of the last two fiscal years," and noted that the company will have difficulty improving its "overall profitability" if sales of Power Mac systems do not recover. CNET, 19 December 2002 http://news.com.com/2100-1040-978535.html GERMAN COURT APPROVES RESTRICTING CONTENT A German court ruled Thursday that requiring Internet service providers (ISPs) to block neo-Nazi Web content that originates outside of Germany does not violate the ISPs rights. The ruling paves the way for forcing German ISPs' to block Web sites, including at least two hosted in the United States, that include neo-Nazi content. Several other recent legislative efforts around the globe have tried to place limits on Web content from other jurisdictions. Critics charge that ISPs should not be cast in the role of Internet police. They also contend that such restrictions will create a morass of regulations around the world that will stifle the Internet. Wired News, 20 December 2002 http://www.wired.com/news/culture/0,1284,56945,00.html MOVIE STUDIOS INVOKE DMCA FOR LATEST SUIT Start-up company 321 Studios creates software that allows users to make copies of DVDs. In April the company took the proactive step of asking a federal court to declare its product legal, given threats from the movie industry for copyright-infringement lawsuits. This week, seven movie studios filed such a suit, saying that 321 Studios violates the Digital Millennium Copyright Act (DMCA) by selling illegal products that cause "grave and irreparable harm" to the movie industry. 321 Studios sells a product called DVD Copy Plus, which makes less than optimal copies of DVDs, and a newer product called DVD-Xcopy, which creates exact copies of DVDs. Representatives from 321 Studios argue that their products are intended for owners of DVDs to make back-up copies for their own use, an action that is protected as fair use. ZDNet, 20 December 2002 http://zdnet.com.com/2100-1106-978580.html ***************************************************** EDUPAGE INFORMATION To subscribe, unsubscribe, or change your settings, visit http://www.educause.edu/pub/edupage/edupage.html Or, you can subscribe or unsubscribe by sending e-mail to [EMAIL PROTECTED] To SUBSCRIBE, in the body of the message type: SUBSCRIBE Edupage YourFirstName YourLastName To UNSUBSCRIBE, in the body of the message type: SIGNOFF Edupage If you have subscription problems, send e-mail to [EMAIL PROTECTED] For past issues of Edupage or information about translations of Edupage into other languages, visit http://www.educause.edu/pub/edupage/edupage.html ***************************************************** OTHER EDUCAUSE PUBLICATIONS EDUCAUSE publishes periodicals, including "EQ" and "EDUCAUSE Review," books, and other materials dealing with the impacts and implications of information technology in higher education. 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