Brian,

...
Although I don't represent the clarity or quality of the draft as anything 
other than -00, I also don't understand what's not clear here.

For those who don't have 6973 open in front of them:

"Surveillance is the observation or monitoring of an individual's communications or 
activities... [and] can be conducted by observers or eavesdroppers at any point along the 
communications path."
a reasonable definition, when we are focusing on cyberspace.
The argument is that this definition is deficient, in that it presumes an 
individual target. The whole conceptual framework of surveillance as an 
activity presumes a target. Legal surveillance requires one in order to get the 
necessary documents signed by the necessary oversight authority. Illegal 
surveillance generally has one in mind because it's cheaper that way.
I would not interpret the definition that narrowly, just because it mentions an individual. Surveillance directed against a class of individuals seems to fit here as well.
(One could make a case that there are indiscriminate attacks by criminal 
networks, e.g. skimming keystrokes from compromised machines to search for 
credit-card numbers... while these are untargeted with respect to individual, 
they're also not really surveillance per 6973, in that it's specific types of 
data that's the goal of the eavesdropping, not the communication or the 
activity in general.)
I'd disagree here too. Grabbing keystrokes is one way to get a password or a credit card number at the source, an alternative to wiretapping. The goal would be the same for an adversary, independent
of the means by which it is accomplished.
"Pervasive surveillance" (to mangle the 6973 defintion) is "the observation or 
monitoring of all individuals' communications or activities."
I suspect that the Internet is too big even for NSA and its friends to observe _all_ individuals, so
this definition seems too narrow, in a different way.
Removing the concept of targeting (even if targeting is done after the fact) 
changes the character of the activity, both in terms of its impact on the 
monitored individual(s) (and -- at the risk of getting too far from the 
engineering -- its impact on the civil society of which the monitored 
individuals are presumed to be members) and in terms of how the impact it has 
on protocol design.
I suspect that the sort of very widespread surveillance that we have been discussing is still targeted, in a sense. It may target users of specific providers or specific web sites, either because the folks performing surveillance believe those are good places to gather the data of interest, or because those are places within their ability to surveil. (Remember the joke abut the drunk looking for his car keys under the street lamp, not because he lost them
there, but because the light was better?)
Specifically, in targetless surveillance, attempts not to become a target are 
meaningless. (Which goes back to someone's... I think it was Yoav's... stated 
desire to increase the cost of pervasive surveillance to the point that he 
dropped out of the target set, which captures nicely the level of sensitivity 
we have to infinite versus finite target sets.)
I understand Yoav's model, and it has a rational basis. However, I have concerns about increasing the "cost" for all users of some service, to make it easier for Yoav to avoid being targeted. This
seems like an externalization of cost, not my favorite economic model.

Steve
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