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TOP STORIES FOR WEDNESDAY, JULY 23, 2003
  DARPA Funding PAL Development
  WTO to Investigate U.S. Antigambling Measures
  Identity Theft Skyrockets
AND
  Boston College, MIT Fight RIAA Subpoenas
  Can Movie Studios Curb Piracy with Courtesy?
  PC-Based BuyMusic Offers Low Rates


DARPA FUNDING PAL DEVELOPMENT
The Pentagon's Defense Advanced Research Projects Agency (DARPA) is
awarding $29 million in research grants to develop an intelligent
electronic assistant. Of the total, $7 million will go to Carnegie
Mellon University to develop a so-called Perceptive Assistant that
Learns (PAL), with the balance going to several other groups to build a
wartime PAL. The device is intended to be "smart" enough to notify
attendees, for example, if a meeting is rescheduled or to change its
user's travel plans in the event of a schedule change. DARPA officials
argued that such a device could be very helpful to military commanders
who have large groups of support staff reporting substantial amounts of
information. Steven Aftergood of the Federation of American Scientists
expressed doubt that such a project legitimately falls under the
purview of DARPA. Of the notion that the PAL device would organize
users' e-mail and allocate office space, Aftergood said, "DARPA
obviously takes a very broad view of its charter."
Wired News, 23 July 2003
http://www.wired.com/news/privacy/0,1848,59724,00.html

WTO TO INVESTIGATE U.S. ANTIGAMBLING MEASURES
The World Trade Organization is investigating a complaint filed by the
Caribbean nation of Antigua and Barbuda arguing that U.S. laws meant to
stifle online gambling violate international trade agreements. Antigua
and Barbuda has long courted the online-gaming business in an effort to
minimize the country's dependence on tourism, and Chief Foreign
Affairs Representative Ronald M. Sanders said his country strictly
regulates its online gaming industry. Because many online gambling
operations are not within the jurisdiction of U.S. laws, the U.S.
government has tried to control online gambling by making it illegal
for U.S. banks and other financial institutions to do business with
offshore gambling organizations. U.S. officials said the antigambling
laws are not subject to the terms of the trade agreements. Online
gamblers in the United States reportedly constitute more than half of
the global Internet gambling market.
Washington Post, 21 July 2003
http://www.washingtonpost.com/wp-dyn/articles/A24490-2003Jul21.html

IDENTITY THEFT SKYROCKETS
Research firm Gartner Inc. reports that identity theft has risen 79
percent over the past year. Identity theft has become a significant
problem in some parts of the world, in part due to how much more
readily accessible personal information is now than in the past. The
research indicates that 3.4 percent of the U.S. population has fallen
victim to a scam and that half of those incidents were perpetrated by
friends, colleagues, or relatives. Recently the FBI and consumer groups
warned of a wave of new scams involving fake e-mails purporting to come
from legitimate e-commerce Web sites. While individuals should take
responsibility for protecting their personal information, authorities
believe that institutions need to be more careful with personal
information. Avivah Litan of Gartner cautioned that "Many banks, credit
card issuers, cell phone service providers, and other enterprises that
extend financial credit to consumers don't recognize most identity
theft fraud for what it is ... [which] causes a disincentive to fix the
problem with the urgency it requires."
BBC, 21 July 2003
http://news.bbc.co.uk/2/hi/business/3085277.stm

AND
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BOSTON COLLEGE, MIT FIGHT RIAA SUBPOENAS
Boston College and the Massachusetts Institute of Technology (MIT) have
filed legal objections to subpoenas from the Recording Industry
Association of America (RIAA). The two institutions argue that civil
law procedures require subpoenas to be filed in a court within 100
miles of those being served with the subpoenas. In this case, RIAA
subpoenas sent to the institutions were issued by a Washington, D.C.,
court. Boston College and MIT also argue that the Family Educational
Rights and Privacy Act (FERPA) guarantees them sufficient time to
notify the affected students that someone has requested disclosure of
information about them. The points at issue are purely procedural,
however, because the motions filed by the two institutions indicate
their agreement with the RIAA's right to the requested information.
The RIAA nonetheless disputed the motions, saying the subpoenas can be
issued from any federal court and that FERPA "could not trump the
university's obligation to respond to a DMCA subpoena." A spokeswoman
for DePaul University, which was also served with an RIAA subpoena,
said several people had access to the computer in question, and the
university, therefore, is unable to answer the subpoena.
Chronicle of Higher Education, 23 July 2003 (sub. req'd)
http://chronicle.com/daily/2003/07/2003072301t.htm

CAN MOVIE STUDIOS CURB PIRACY WITH COURTESY?
The movie industry has launched a campaign that adopts a friendly tone
to discourage people from downloading pirated copies of films from the
Internet. Industry officials hope that, in addition to an educational
Web site, television and in-theater ads will appeal to people's
sympathy for how piracy affects the livelihood of the average person by
featuring the likes of industry makeup artists and set painters. A
"Digital Citizenship" Junior Achievement program will educate students
about the history and implications of copyright infringement and
encourage them to spread the word to peers that it's both wrong and
illegal. The Motion Picture Association of America (MPAA) has yet to
encounter the piracy problems the recording industry has, mostly
because the technology cannot yet support making decent copies of
movies, and is considering proactive strategies such as making films
available online through legitimate services. Fred von Lohmann of the
Electronic Frontier Foundation said that while consumers may not be
ready to get their movies from the Internet, "when they are, the answer
will be to offer them a compelling legitimate alternative, not telling
them to behave themselves."
San Jose Mercury News, 22 July 2003
http://www.siliconvalley.com/mld/siliconvalley/6357756.htm

PC-BASED BUYMUSIC OFFERS LOW RATES
Recently launched BuyMusic.com, a PC-based Internet music download
site, offers more than 300,000 songs from five major recording labels
for as little as 79 cents per song and $7.95 for a full album. Whereas
other PC-based online music services such as Rhapsody require users to
pay a monthly access fee, BuyMusic is based on the Apple iTunes
pay-as-you-go model. Although the service offers more and cheaper songs
than does iTunes, it doesn't offer the same song portability due to
licensing restrictions and the Windows Media format. Because BuyMusic
CEO Scott Blum wasn't able to strike the same uniform licensing deals
with recording companies and artists as Apple's Steve Jobs, there are
different restrictions on how frequently songs may be burned onto CDs
or copied to other PCs or portable devices. All songs can be burned
onto CDs at least once. BuyMusic's entry into the online music market
is expected to prompt digital music retailers to renegotiate more
lenient terms with the record companies.
Wired News, 22 July 2003
http://www.wired.com/news/technology/0,1282,59718,00.html

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