Re: consulting question.... (DRM)

2009-05-30 Thread Jerry Leichter

On May 29, 2009, at 8:48 AM, Peter Gutmann wrote:


Jerry Leichter leich...@lrw.com writes:


For the most part, software like this aims to keep reasonably honest
people honest.  Yes, they can probably hire someone to hack around  
the

licensing software.  (There's generally not much motivation for J
Random User to break this stuff, since it protects business software
with a specialized audience.) But is it (a) worth the cost; (b) worth
the risk - if you get caught, there's clear evidence that you broke
things deliberately.


I think a far more important consideration for license-management  
software
isn't how secure is it but how obnoxious is it for legitimate  
users?  I
know a number of people who have either themselves broken or  
downloaded tools
to break FlexLM and similar schemes, and in every single case they  
were
legitimate users who were prevented from using their legally  
purchased product by the license-mismanagement tools, or who after  
spending hours or even days fighting with the license-mismanagement  
software found it easier to break the protection than to try and  
figure out what contortions were required to keep the license- 
checking code happy

I agree 100%.

The most important thing to keep in mind when doing license management  
software is that it has *NO* value to the *customer*.  The guys who  
sell this stuff will always claim that it helps the customer keep  
track of licenses or some such rot - but it's complete nonsense.  In  
fact, license management code has *negative* customer value.  That  
doesn't mean it doesn't have a legitimate role - the cash registers in  
the supermarket add a negative value to all the sold, but the  
supermarket wouldn't be there without them.  But unless you  
understand, deep down, that this is something that you're imposing on  
your customer and that therefore it needs to be as close to invisible  
and fail-safe as possible; and you act *effectively* on that basis -  
you're just going to encourage circumvention or a search for  
alternatives to your software.


-- Jerry

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: white-box crypto Was: consulting question....

2009-05-30 Thread Brecht Wyseur


James Muir wrote:
 Alexander Klimov wrote:
   
 On Tue, 26 May 2009, James Muir wrote:
 
 There is some academic work on how to protect crypto in software from
 reverse engineering.  Look-up white-box cryptography.

 Disclosure:  the company I work for does white-box crypto.
   
 Could you explain what is the point of white-box cryptography (even
 if it were possible)?
 

 The introduction to the following paper (from SAC 2002) gives a very
 good overview of white-box crypto:

 http://www.scs.carleton.ca/%7Epaulv/papers/whiteaes.lncs.ps
   

The aim of white-box cryptography is to implement cryptographic
primitives in such a way that they remain /secure/ against software
analysis. The 'white-box' refers to the fact that the adversary has full
access to the software implementation and control over its execution
environment.

Its prior objective would obviously be the protection of secret keys
that are embedded in key instantiated implementations of encryption
schemes. But often it goes beyond that objective. In some practical
settings it will indeed turn out that the resulting white-box
implementation behaves as a public-key primitive, as you point out, but
for other applications, that might be overshooting the objective.

The paper that James mentioned introduced the subject of white-box
cryptography into academia. In the mean time, the subject received more
interest, and has been studied further on. For more information
(introduction and subsequent research), I'm happy to point you to my PhD
dissertation of March this year, entitled white-box cryptography.

https://www.cosic.esat.kuleuven.be/publications/thesis-152.pdf

I also wrote a (rather theoretical) paper to settle a concrete
definition of white-box cryptography, which you can find on e-print:
http://eprint.iacr.org/2008/273.
   
 If I understand correctly, the only plausible result is to be able to
 use the secret key cryptography as if it were the public-key one, for
 example, to have a program that can do (very slow, btw) AES
 encryption, but be unable to deduce the key (unable to decrypt). If
 this is the case, then why not use normal public-key crypto (baksheesh
 aside)?
 

 You're right -- a white-box implementation of a symmetric cipher
 essentially creates an asymmetric cipher.  Despite this, there are still
 situations where you might want a whitebox AES implementation running on
 a client.  Consider a server that sends out updates to several hundred
 clients (each client has its own key).  The clients are subject to
 whitebox attacks but the server is not.  Rather than force the server to
 do several hundred public-key operations when it needs to push out an
 update, we might be able to save the server some work if use a symmetric
 cipher.

 -James

   
Consider a DRM application that contains a key-instantiated decryption
algorithm and some authentication scheme. In that case you want to
prevent the extraction of the secret key, otherwise an adversary could
easily circumvent the authentication scheme. Deploying a public-key
cipher wouldn't help achieving this objective, since it is a matter of
how you implement the decryption operation and entangle it with the
authentication scheme.

Another example might be a mobile agent system, where a signing key
would need to be embedded in the software such that the agent can sign
contracts.


Brecht
http://whiteboxcrypto.com

-- 
Brecht Wyseur
Katholieke Universiteit Leuven  tel. +32 16 32 17 21
Dept. Electrical Engineering-ESAT / COSIC   fax. +32 16 32 19 69
Kasteelpark Arenberg 10, B-3001 Leuven-Heverlee, BELGIUMoffice 01.53

   brecht.wys...@esat.kuleuven.be
   http://homes.esat.kuleuven.be/~bwyseur

P=NP if (P=0 or N=1)
GPG Pub key: https://homes.esat.kuleuven.be/~bwyseur/pubkey
GPG Fingerprint: 890C 7C0B F1D9 597E F205 87C8 B716 D7D3 20F8 353F

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question.... (DRM)

2009-05-30 Thread John Ioannidis

John Gilmore wrote:
...


PPS: On a consulting job one time, I helped my customer patch out the
license check for some expensive Unix circuit simulation software they
were running.  They had bought a faster, newer machine and wanted to
run it there instead of on the machine they'd bought the node-locked
license for.  The faster their simulation ran, the easier my job was.
Actually, I think we patched the Unix kernel or C library that the
program depended upon, rather than patch the program; it was easier.



Kernel. Instead of calling the subroutine that would retrieve the 32-bit 
hostid from the PROM, you just did a load immediate with the right 
number.  The instructions were the same length, so everything worked fine :)


Not that I know of any places that actually did this, of course :)

/ji

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question.... (DRM)

2009-05-29 Thread John Gilmore
Their product inserts program code into 
 existing applications to make those applications monitor and report
 their own usage and enforce the terms of their own licenses, for 
 example disabling themselves if the central database indicates that 
 their licensee's subscription has expired or if they've been used 
 for more hours/keystrokes/clicks/users/machines/whatever in the 
 current month than licensed for.
 
 The idea is that software developers could use their product instead
 of spending time and programming effort developing their own license-
 enforcement mechanisms...

Many people have had the same idea before.  The software license
manager field is pretty full of little companies (and divisions of
big ones).  Your prospect might be able to find a niche in there
somewhere, if they study their competition to see what's missing and
how they can build up an edge.  But customers tend to hate software
that comes managed with license managers, so it takes an exceptional
company to fight the uphill sales battle to impose them.  (And having
a company switch from License Manager A to License Manager B requires
reissuing licenses to every customer, an extraordinary customer-
support hassle.)  Only in markets where the customer has no effective
choice (of a competing DRM-free product) does it tend to work.

My last startup, Cygnus, sold un-license-managed compilers,
competiting with some entrenched companies that sold license-managed
compilers.  We kept seeing how our own automated overnight software
builds would fail using our competitors' compilers because the license
manager would screw up -- or merely because the local net or Internet
was down.  Or it would hang overnight awaiting an available license,
and doing no work in the meantime.  Our compiler always ran when you
asked it to.

We got tens of thousands of people to switch to our (free) GNU C and
C++ compilers, and enough of them paid us for support and development
that our company kept growing.  Our best selling point against Sun's
compilers, for example, was that ours didn't use any license manager.
Once you bought or downloaded it, it was yours.  It would run forever,
on as many machines as you liked, and you were encouraged to share it
with as many friends as you could.  It was simple for us to invade
their niche when they had deliberately forsworn a feature set like that.

John Gilmore

PS:  Our trade-show giveaway button one year was License Managers Suck;
 it was very popular.

PPS: On a consulting job one time, I helped my customer patch out the
license check for some expensive Unix circuit simulation software they
were running.  They had bought a faster, newer machine and wanted to
run it there instead of on the machine they'd bought the node-locked
license for.  The faster their simulation ran, the easier my job was.
Actually, I think we patched the Unix kernel or C library that the
program depended upon, rather than patch the program; it was easier.

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: white-box crypto Was: consulting question....

2009-05-29 Thread James Muir
Alexander Klimov wrote:
 On Tue, 26 May 2009, James Muir wrote:
 There is some academic work on how to protect crypto in software from
 reverse engineering.  Look-up white-box cryptography.

 Disclosure:  the company I work for does white-box crypto.
 
 Could you explain what is the point of white-box cryptography (even
 if it were possible)?

The introduction to the following paper (from SAC 2002) gives a very
good overview of white-box crypto:

http://www.scs.carleton.ca/%7Epaulv/papers/whiteaes.lncs.ps

 If I understand correctly, the only plausible result is to be able to
 use the secret key cryptography as if it were the public-key one, for
 example, to have a program that can do (very slow, btw) AES
 encryption, but be unable to deduce the key (unable to decrypt). If
 this is the case, then why not use normal public-key crypto (baksheesh
 aside)?

You're right -- a white-box implementation of a symmetric cipher
essentially creates an asymmetric cipher.  Despite this, there are still
situations where you might want a whitebox AES implementation running on
a client.  Consider a server that sends out updates to several hundred
clients (each client has its own key).  The clients are subject to
whitebox attacks but the server is not.  Rather than force the server to
do several hundred public-key operations when it needs to push out an
update, we might be able to save the server some work if use a symmetric
cipher.

-James




signature.asc
Description: OpenPGP digital signature


white-box crypto Was: consulting question....

2009-05-29 Thread Brecht Wyseur
2009/5/27 Alexander Klimov alser...@inbox.ru mailto:alser...@inbox.ru:
 On Tue, 26 May 2009, James Muir wrote:
 There is some academic work on how to protect crypto in software from
 reverse engineering.  Look-up white-box cryptography.

 Disclosure:  the company I work for does white-box crypto.

 Could you explain what is the point of white-box cryptography (even
 if it were possible)?

White-box crypto is about implementing cryptographic primitives in
such a way that they remain /secure/ against software analysis. The
'white-box' refers to the fact that the adversary has full access to
the software implementation and control over its execution
environment.

The prior objective would obviously be the protection of secret keys
in key instantiated implementations of encryption schemes, but often
it goes beyond that. In some practical settings you would want the
resulting white-box implementations to behave as a public-key
primitive, as you mention below.

You can find formal definitions of white-box cryptography in a paper I
recently wrote: http://eprint.iacr.org/2008/273
http://eprint.iacr.org/2008/273. More information on
white-box crypto you can find in my PhD dissertation of March this
year.
https://www.cosic.esat.kuleuven.be/publications/thesis-152.pdf
https://www.cosic.esat.kuleuven.be/publications/thesis-152.pdf


 If I understand correctly, the only plausible result is to be able to
 use the secret key cryptography as if it were the public-key one, for
 example, to have a program that can do (very slow, btw) AES
 encryption, but be unable to deduce the key (unable to decrypt). If
 this is the case, then why not use normal public-key crypto (baksheesh
 aside)?

Consider a DRM application that contains a key-instantiated decryption
algorithm and some authentication scheme. In that case you want to
prevent the extraction of the secret key, otherwise an adversary could
easily circumvent the authentication scheme. Deploying a public-key
cipher wouldn't help achieving this objective, since it is a matter of
how you implement the decryption operation and entangle it with the
authentication scheme.

Another example might be a mobile agent system, where a signing key
would need to be embedded in the software such that the agent can sign
contracts.

Regards,
Brecht
http://whiteboxcrypto.com

-- 
Brecht Wyseur
Katholieke Universiteit Leuven  tel. +32 16 32 17 21
Dept. Electrical Engineering-ESAT / COSIC   fax. +32 16 32 19 69
Kasteelpark Arenberg 10, B-3001 Leuven-Heverlee, BELGIUMoffice 01.53

   brecht.wys...@esat.kuleuven.be
   http://homes.esat.kuleuven.be/~bwyseur

P=NP if (P=0 or N=1)
GPG Pub key: https://homes.esat.kuleuven.be/~bwyseur/pubkey
GPG Fingerprint: 890C 7C0B F1D9 597E F205 87C8 B716 D7D3 20F8 353F

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question.... (DRM)

2009-05-29 Thread Peter Gutmann
Jerry Leichter leich...@lrw.com writes:

For the most part, software like this aims to keep reasonably honest  
people honest.  Yes, they can probably hire someone to hack around the  
licensing software.  (There's generally not much motivation for J  
Random User to break this stuff, since it protects business software  
with a specialized audience.) But is it (a) worth the cost; (b) worth  
the risk - if you get caught, there's clear evidence that you broke  
things deliberately.

I think a far more important consideration for license-management software 
isn't how secure is it but how obnoxious is it for legitimate users?  I 
know a number of people who have either themselves broken or downloaded tools 
to break FlexLM and similar schemes, and in every single case they were 
legitimate users who were prevented from using their legally purchased product 
by the license-mismanagement tools, or who after spending hours or even days 
fighting with the license-mismanagement software found it easier to break the 
protection than to try and figure out what contortions were required to keep 
the license-checking code happy.  I've experienced this myself with a software 
tool I use, there are some (as I found out after several hours of searching 
support forums) well-known problems with it that the vendor doesn't seem 
interested in fixing, and that you can eventually resolve either with some 
registry hacks and other low-level changes or by downloading haxor tools 
that'll achieve the same result with a few minutes work (just for the record, 
I took the multi-hour route).  So if your license-management software is 
sufficiently obnoxious that it turns legitimate users into DMCA-violators, you 
have a problem.

Peter.

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question....

2009-05-27 Thread James Muir
Ray Dillinger wrote:
 Does anyone feel that I have said anything untrue?

 Can anyone point me at good information uses I can use to help prove
 the case to a bunch of skeptics who are considering throwing away
 their hard-earned money on a scheme that, in light of security
 experience, seems foolish?

Security is relative -- you need to evaluate it against a threat model
and consider what goals you are trying to achieve.  A software solution
may succeed in deterring attackers from developing a way to strip the
DRM from a $0.99 mp3; if the mp3 only costs $0.99, then may be it isn't
worth the trouble of reverse engineering the software.

There is some academic work on how to protect crypto in software from
reverse engineering.  Look-up white-box cryptography.

Disclosure:  the company I work for does white-box crypto.

-James




signature.asc
Description: OpenPGP digital signature


Re: consulting question....

2009-05-27 Thread John Ioannidis
If you've already explained to them that what they are trying to do is 
both impossible and pointless, and they still want your consulting 
services, take as much of their money as you can and don't feel bad 
about it!  Maybe you can get some more people on this list hired, too :)


/ji

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question.... (DRM)

2009-05-27 Thread Ray Dillinger
On Tue, 2009-05-26 at 18:49 -0700, John Gilmore wrote:
 It's a little hard to help without knowing more about the situation.
 I.e. is this a software company?  Hardware?  Music?  Movies?
 Documents?  E-Books?  

It's a software company. 

 Is it trying to prevent access to something, or
 the copying of something?  What's the something?  What's the threat
 model?  Why is the company trying to do that?  Trying to restrain
 customers? 

Its customers would be other software companies that want to produce 
monitored applications.  Their product inserts program code into 
existing applications to make those applications monitor and report
their own usage and enforce the terms of their own licenses, for 
example disabling themselves if the central database indicates that 
their licensee's subscription has expired or if they've been used 
for more hours/keystrokes/clicks/users/machines/whatever in the 
current month than licensed for.

The idea is that software developers could use their product instead
of spending time and programming effort developing their own license-
enforcement mechanisms, using it to directly transform on the
executables as the last stage of the build process.

The threat model is that the users and sysadmins of the machines 
where the monitored applications are running have a financial 
motive to prevent those applications from reporting their usage.

 What country or countries does the company
 operate in?  What jurisdictions hold its main customer bases?  

They are in the US.  Their potential customers are international.
And their customers' potential clients (the end users of the 
monitored applications) are of course everywhere. 

 Why should we bother?  Isn't it a great idea for DRM fanatics to
 throw away their money?  More, more, please!  Bankrupt yourselves
 and drive your customers away.  Please!

You're taking a very polarized view.  These aren't DRM fanatics; 
they're business people doing due diligence on a new project, and
likely never to produce any DRM stuff at all if I can successfully
convince them that they are unlikely to profit from it.

Bear


-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question.... (DRM)

2009-05-27 Thread Darren J Moffat

John Gilmore wrote:

It's only the DRM fanatics whose installed bases of customers
are mentally locked-in despite the crappy user experience (like
the brainwashed hordes of Apple users, or the Microsoft victims)
who are troublesome.  In such cases, the community should


I assume the Apple reference here is aimed at iTunes.  You do know that 
iTunes Music Store no longer uses any DRM right ?


--
Darren J Moffat

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


white-box crypto Was: consulting question....

2009-05-27 Thread Alexander Klimov
On Tue, 26 May 2009, James Muir wrote:
 There is some academic work on how to protect crypto in software from
 reverse engineering.  Look-up white-box cryptography.

 Disclosure:  the company I work for does white-box crypto.

Could you explain what is the point of white-box cryptography (even
if it were possible)?

If I understand correctly, the only plausible result is to be able to
use the secret key cryptography as if it were the public-key one, for
example, to have a program that can do (very slow, btw) AES
encryption, but be unable to deduce the key (unable to decrypt). If
this is the case, then why not use normal public-key crypto (baksheesh
aside)?

-- 
Regards,
ASK

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question.... (DRM)

2009-05-27 Thread Jerry Leichter
The introduction of the acronym DRM has drawn all the hysteria it  
always does.


The description you've posted much more closely matches license (or  
sometimse entitlement) management software than DRM.  There are many  
companies active in this field.  Many are small, but Microsoft sells  
some solution and there are moderately large companies around.  Some  
of these have been around for many years.


Traditionally, license management software looked at local files or  
databases rather than out on the Internet.  However, I'm sure Internet  
options exist.


The better software of this sort is challenging to crack.  Certainly,  
none of it is *impossible* to crack - though the best dongle-based  
systems are probably extremely difficult (but also unacceptable for  
most kinds of software).


For the most part, software like this aims to keep reasonably honest  
people honest.  Yes, they can probably hire someone to hack around the  
licensing software.  (There's generally not much motivation for J  
Random User to break this stuff, since it protects business software  
with a specialized audience.) But is it (a) worth the cost; (b) worth  
the risk - if you get caught, there's clear evidence that you broke  
things deliberately.


Probably the greatest use for such software is not in preventing  
unlicensed users from running it at all but in enforcing contractual  
limits - e.g., you can only use this to manage up to X machines.   
Every company that has sold software with that kind of contract will  
likely find that, unless the software enforces the limitation, its  
customers will exceed it - often unknowingly, often by large factors.


I'd suggest that you, and the company you're consulting to, spend some  
time understanding the market.  What kind of software vendors are you  
selling to?  B2B is a very different marketplace from consumer.   
Within B2B, high touch sales are very different from mass market.   
If you go international, a great deal depends on where you think  
you're going to sell.  If you are ultimately depending on contractual  
enforcement, with the licensing software just an encouragement to good  
behavior, you're fine in the US and Western Europe, but you're not  
going to have a happy time in, say, Russia and China.


A Google search on license management software turns up many hits,  
including an overview article that may be useful:  http://software.forbes.com/license-management-software 
  (One thing to be aware of is that this phrase is a bit ambiguous,  
covering both software a vendor puts in to its code to manage  
licenses, and software sold to large end users to help them keep track  
of what licenses they are using.  The listing in the article covers  
both, but is still incomplete - it misses one of the long-established  
companies, Acresso Software - a new name - that sells the FLEXnet  
license enforcement software, a business it's been in for at least 10  
years or so.)


-- Jerry

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question.... (DRM)

2009-05-27 Thread Nathan Loofbourrow
On Wed, May 27, 2009 at 2:01 AM, Darren J Moffat darren.mof...@sun.com wrote:
 John Gilmore wrote:

 It's only the DRM fanatics whose installed bases of customers
 are mentally locked-in despite the crappy user experience (like
 the brainwashed hordes of Apple users, or the Microsoft victims)
 who are troublesome.  In such cases, the community should

 I assume the Apple reference here is aimed at iTunes.  You do know that
 iTunes Music Store no longer uses any DRM right ?

For the music, that's true, but not for the other items sold there
(movies, TV shows, and especially not iPhone apps, as any iPhone
developer who's jumped through those DRM hoops will tell you).

n

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question....

2009-05-27 Thread Roland Dowdeswell
On 1243421494 seconds since the Beginning of the UNIX epoch
Marcus Brinkmann wrote:


 However, it also sounds like they are shifting the
burden of proof.  Shouldn't they convince you (whoever they make the DRM
for) that their system is working?  Have we really reached a situation where
non-experts believe that DRM works until proven otherwise?  That seems an
extraordinary marketing success of the sellers of DRM technology, because it
stands against a mountain of evidence in the history of computing.

I have noticed in my years as a security practitioner, that in my
experience non-security people seem to assume that a system is
perfectly secure until it is demonstrated that it is not with an
example of an exploit.  Until an exploit is generated, any discussion
of insecurity is filed in their minds as ``academic'', ``theoretical''
or ``not real world''.  This of course makes it quite difficult to
cause various issues to be fixed in practice as it is generally
more time consuming to construct and explain an exploit than to
simply fix the bug that has been discovered.

The next refrain that one is likely to hear even after demonstrating
that a security issue exists is ``How many people know how to do
that?''  I've actually heard that in some rather amusing circumstances
such as ``Well, how many people actually know how to read or edit
XML?''  It is a tricky conversation to explain to people that XML
is not in fact an encryption mechanism---especially if they have
seen any machine produced XML recently.  Of course, this is one of
the more amusing examples but others abound.

I'm interested in asking people what rhetorical techniques they
use to overcome such difficulties in practice?

--
Roland Dowdeswell  http://Imrryr.ORG/~elric/

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question.... (DRM)

2009-05-27 Thread Bill Squier
This is getting a bit far afield from cryptography, but proper threat  
analysis is still relevant.


On May 27, 2009, at 4:07 AM, Ray Dillinger wrote:


On Tue, 2009-05-26 at 18:49 -0700, John Gilmore wrote:

It's a little hard to help without knowing more about the situation.
I.e. is this a software company?  Hardware?  Music?  Movies?
Documents?  E-Books?


It's a software company.


Is it trying to prevent access to something, or
the copying of something?  What's the something?  What's the threat
model?  Why is the company trying to do that?  Trying to restrain
customers?


Its customers would be other software companies that want to produce
monitored applications.  Their product inserts program code into
existing applications to make those applications monitor and report
their own usage and enforce the terms of their own licenses, for
example disabling themselves if the central database indicates that
their licensee's subscription has expired or if they've been used
for more hours/keystrokes/clicks/users/machines/whatever in the
current month than licensed for.

The idea is that software developers could use their product instead
of spending time and programming effort developing their own license-
enforcement mechanisms, using it to directly transform on the
executables as the last stage of the build process.

The threat model is that the users and sysadmins of the machines
where the monitored applications are running have a financial
motive to prevent those applications from reporting their usage.


If this is really their threat model, it's ill-considered.  First, no  
reputable company in their right mind would play games with software  
licensing in an attempt to save a few dollars.  In fact, most  
companies bend over backwards with internal audits and other  
mechanisms to ensure they are in compliance.  The risk is far too  
great to do otherwise -- both to reputation and to the bottom line.


They may counter that they are attempting to nudge into compliance  
reputable companies that are simply not large enough or savvy enough  
to ensure their own compliance.  In this case, something far less  
complex than what is traditionally implied by DRM can be used.


Thus, the users you are now considering are members of _disreputable_  
companies.  Since DRM is easily circumvented, and the company is  
disreputable, you have a reasonable expectation that your DRM will be  
ineffective.


Second, sysadmins have no financial motive, unless they are also the  
owners.  It is irrelevant to the sysadmin whether the business pays an  
appropriate amount for licenses. His salary is still his salary.


Finally, large institutions (let's take financial firms as this is my  
area of expertise) will not install software that has hard expirations  
or other restrictive licensing mechanisms.  The reason is simple.   
These mechanisms cause outages -- sometimes because of snafus in the  
renewal of licenses, sometimes because of poor code quality in the  
enforcement mechanism.  At my firm, any such scheme is an immediate  
non-starter.


-wps

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question....

2009-05-27 Thread Ray Dillinger
On Wed, 2009-05-27 at 10:31 -0400, Roland Dowdeswell wrote:

 I have noticed in my years as a security practitioner, that in my
 experience non-security people seem to assume that a system is
 perfectly secure until it is demonstrated that it is not with an
 example of an exploit.  Until an exploit is generated, any discussion
 of insecurity is filed in their minds as ``academic'', ``theoretical''
 or ``not real world''.  

This matches my experience as well.  Have any exploits of this 
particular scheme been found in the wild? is always one of the 
first three questions, and the answer is one of the best predictors
of whether the questioner actually does anything.  For best results 
one must be able to say something like, Yes, six times in the 
last year and start naming companies, products, dates, and 
independent sources that can be used to verify the incidents.  To 
really make the point one should also be able to cite financial 
costs and losses incurred.

Because companies don't like talking about cracks and exploits 
involving their own products, nor support third parties who attempt
systematic documentation of same, it is frequently very hard to 
produce sufficient evidence to convince and deter new reinventors 
of the same technology. This failure to track and document exploits
and cracks is a cultural failure that, IMO, is currently one of the
biggest nontechnical obstacles to software security. 

Bear


-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


consulting question....

2009-05-26 Thread Ray Dillinger

At a dinner party recently, I found myself discussing the difficulties 
of DRM (and software that is intended to implement it) with a rather 
intense and inquisitive woman who was very knowledgeable about what 
such software is supposed to do, but simultaneously very innocent of 
the broad experience of such things that security people have had.  
She was eager to learn, and asked me to summarize what I said to her 
in an email. So I did 

And it turns out that she is an executive in a small company which is 
now considering the development of a DRM product.  I just got email
from her boss (the CEO) offering to hire me, for a day or two 
anyway, as a consultant.  If I understand correctly, my job as
consultant will be to make a case to their board about what hurdles 
of technology and credibility that small company will find in its 
path if it pursues this course.

So now I need to go from Dinner party conversation mode to
consultant mode and that means I need to be able to cite specific
examples and if possible, research for the generalities I explained 
over dinner.  I'll be combing Schneier's blog and using Google to 
fill in details of examples I've already cited to get ready for 
this, but any help that folks could throw me to help illustrate 
and demonstrate my points (the paragraphs below) will be much
appreciated.

I explained to her that the typical experience of monitored or
protected software (software modified for DRM enforcement) is that
some guy in a randomly selected nation far outside the jurisdiction 
of your laws, using widely available tools like debuggers and hex 
editors, makes a cracked copy and distributes it widely, and 
that current efforts in the field seem more focused on legislation 
and international prosecutions than on software technology.  Software-
only solutions, aside from those involving a Trusted Computing Module
(which their proposed project does not - She seemed unaware of both 
the Trusted Computing Platform and the controversy over it) are no
longer considered credible.  I cited the example of DeCSS, whose 
crack of players for DRM'd movies used techniques generally 
applicable to any form of DRM'd software. 

I explained that in the worst case, such software works by making 
unacceptable compromises of security or autonomy on the machines where
it is installed, citing the infamous and widespread Sony Rootkit, (and 
IMO also the TCM system, but I didn't go into that messa worms at
dinner) and that these compromises usually become public and do 
serious damage to both the credibility of DRM systems generally and
the cash flow of the companies that perpetrate them (ISTR Sony wound
up losing something over 6 million in the US judgement alone on that 
one, and spent considerably more than that on legal fees in the US 
and several other nations). 

Finally, I explained the cheap attacks available to a sysadmin who 
does not want his DRM'd software reporting its usage statistics; for 
example having a firewall that filters outgoing packets. 

Does anyone feel that I have said anything untrue?

Can anyone point me at good information uses I can use to help prove 
the case to a bunch of skeptics who are considering throwing away 
their hard-earned money on a scheme that, in light of security
experience, seems foolish?

Ray Dillinger


-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com


Re: consulting question.... (DRM)

2009-05-26 Thread John Gilmore
It's a little hard to help without knowing more about the situation.
I.e. is this a software company?  Hardware?  Music?  Movies?
Documents?  E-Books?  Is it trying to prevent access to something, or
the copying of something?  What's the something?  What's the threat
model?  Why is the company trying to do that?  Trying to restrain
customers?  Competitors?  Trying to build a cartel?  Being forced to
do it by a cartel?  Is their product embedded?  Online?  Hardware?
Software?  Battery powered?  Is it on a phone network?  On the
Internet?  On no network?  What country or countries does the company
operate in?  What jurisdictions hold its main customer bases?  How
much hassle will its customers take before they switch suppliers?
What kind of industry standards must the company adhere to?  What
other equipment or data formats do they have/want to interoperate
with?

Most DRM is probably never cracked, because the product it's in
never gets popular enough that anyone talented wants to crack it.
If they only sell a thousand units, will they be happy?  Or do they
hope/plan/need to sell millions of units?

Most DRM exists to build a cartel -- to make an artificial monopoly --
not to prevent *customers* from copying things, but to prevent
*competitors* from being able to build compatible or interoperable
equipment.  This is largely because US reverse-engineering law makes
such a cartel unenforceable in court, unless you use DRM to make it.

 Can anyone point me at good information uses I can use to help prove 
 the case to a bunch of skeptics who are considering throwing away 
 their hard-earned money on a scheme that, in light of security
 experience, seems foolish?

Why should we bother?  Isn't it a great idea for DRM fanatics to
throw away their money?  More, more, please!  Bankrupt yourselves
and drive your customers away.  Please!

It's only the DRM fanatics whose installed bases of customers
are mentally locked-in despite the crappy user experience (like
the brainwashed hordes of Apple users, or the Microsoft victims)
who are troublesome.  In such cases, the community should
intervene on behalf of the users -- not to prevent the company
from wasting its time and money.

John

-
The Cryptography Mailing List
Unsubscribe by sending unsubscribe cryptography to majord...@metzdowd.com