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TOP STORIES FOR WEDNESDAY, SEPTEMBER 07, 2005
  UT Hacker Gets Fine, Probation
  Tutoring Online, Overseas
  Kazaa Found Guilty of Copyright Violations in Australia
  CA Hops on the Open Source Bandwagon
  Growth of Online Banking Stalls Amid Hacking Fear


UT HACKER GETS FINE, PROBATION
A former student at the University of Texas at Austin has been
sentenced for hacking into the university computer system, a charge on
which a federal jury convicted him in June. Christopher Andrew Phillips
has been ordered to pay $170,000 in restitution for his crimes and to
serve five years of probation. Phillips was found guilty of damaging
the university's computers and of illegally possessing close to 40,000
Social Security numbers. The jury acquitted him of intending to profit
from the personal information he obtained. In addition to the fine and
probation, Phillips is forbidden from using the Internet for five years
except for school or for work and only under the supervision of his
parole officer. In a statement, U.S. Attorney Johnny Sutton said,
"[Phillips] found out the hard way that breaking into someone else's
computer is not a joke."
Houston Chronicle, 7 September 2005
http://www.chron.com/cs/CDA/ssistory.mpl/metropolitan/3342919

TUTORING ONLINE, OVERSEAS
Online tutoring services, which typically offer cost and scheduling
advantages over local programs, have begun outsourcing some tutoring
positions. Although some online tutoring companies that serve the U.S.
market limit tutors to people living in North America, some now employ
tutors in countries including India, South Africa, the Philippines, and
Chile. As with other examples of outsourcing, the primary motivation is
cost: Growing Stars, a California-based tutoring company, charges $30
an hour for U.S.-based tutors and $20 an hour for tutors in India, who
are paid the equivalent of $230 per month. Burck Smith, chief executive
and co-founder of Washington, D.C.-based online tutoring company
SmarThinking, said his company has seen demand grow by 50 percent over
the past few years, and the company signed 20 new clients, including
high schools and colleges, for services this fall. Critics of online
tutoring argue that there is already little oversight to such programs,
resulting in questionable quality, and that using tutors from overseas
only serves to make monitoring even more difficult.
New York Times, 7 September 2005 (registration req'd)
http://www.nytimes.com/2005/09/07/education/07tutor.html

KAZAA FOUND GUILTY OF COPYRIGHT VIOLATIONS IN AUSTRALIA
An Australian court this week ruled in favor of the Recording Industry
Association of America (RIAA) in its lawsuit against the developers of
the Kazaa file-sharing service for copyright violations. The ruling is
the second major blow to file traders this year, after the U.S. Supreme
Court in June found Grokster liable for the copyright violations of its
users. The court in Australia said that Sydney-based Sharman Networks,
which owns and operates Kazaa, is well aware that its network is widely
used to illegally trade copyrighted files and has done little to curb
the practice other than adding warnings on the site. Those warnings, as
well as an end user agreement that users must sign, "are ineffective to
prevent, or even substantially to curtail, copyright infringements by
users," said Judge Murray Wilcox in his ruling. Wilcox ordered Sharman
to install filters on Kazaa to limit copyright violations within two
months or discontinue the service. Wilcox also ordered Sharman to pay
the majority of the RIAA's legal costs, and later this year a hearing
will be held to assign damages that Sharman must pay to the
entertainment industry.
Internet News, 6 September 2005
http://www.internetnews.com/xSP/article.php/3532336

CA HOPS ON THE OPEN SOURCE BANDWAGON
Following IBM's lead, Computer Associates International (CA) has
announced that it will allow open source developers to use 14 of its
patents free of charge. Earlier this year, IBM, which has been one of
the strongest corporate backers of open source technology, said it
would forgo royalties on 500 of its patents. The CA patents that will
be offered address application development, data analytics, and systems
management. CA also announced an agreement with IBM under which the two
companies will exchange license rights. According to Mark Barrenechea,
executive vice president of technology strategy and chief technology
architect at CA, the deal will give customers easier access to the
range of intellectual property available without charge.
ZDNet, 7 September 2005
http://news.zdnet.com/2100-3513_22-5852500.html

GROWTH OF ONLINE BANKING STALLS AMID HACKING FEAR
A new survey by Ipsos Insight shows that the number of people who use
the Internet for banking has reached a plateau, but that those who do
their banking online are conducting growing numbers of transactions.
According to the survey, roughly 39 percent of Americans use the
Internet for personal banking--the same number as a year ago. Concern
over online security for personal information was identified as a
leading reason why more people are not turning to the Web for banking.
Survey respondents expressed concerns about the possibility of hackers
stealing sensitive information, about online scams that dupe users into
revealing personal data, and about the practice among some banks of
selling customers' personal information to third parties. Of those who
conduct banking online, most are using the Web for growing numbers of
financial transactions, including paying bills and managing retirement
accounts, according to the survey.
CNET, 6 September 2005
http://news.com.com/2100-1038_3-5851061.html

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