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Browsing Category philosophy

The Perception of Privacy

June 5, 2012 · by parasam

Another in my series of posts on privacy in our connected world…  with a particular focus on photography and imaging

As I continue to listen and communicate with many others in our world – both ‘real’ and ‘virtual’ (although the lines are blurring more and more) – I recognize that the concept of privacy is rather elusive and hard to define. It changes all the time. It is affected by cultural norms, age, education, location and upbringing. There are differing perceptions of personal privacy vs collective privacy. Among other things, this means that most often, heavy-handed regulatory schemes by governments will fail – as by the very nature of a centralized entity, the one-size-must-fit-all solution will never work well in this regard.

A few items that have recently made news show just how far, and how fast, our perception of privacy is changing – and how comfortable many of us are now with a level of social sharing that would have been unthinkable just a few years ago. An article (here) explains ‘ambient video’ as a new way that many young people are ‘chatting’ using persistent video feeds. With technologies such as Skype and OoVoo that allow simultaneous video ‘group calls’ – teenagers are coming home from school, putting on the webcam and leaving it on in the background for the rest of the day. The group of connected friends are all ‘sharing’ each other’s lives, in real time, on video. If someone has a problem with homework, they just shout out to the ‘virtual room’ for help. [The implications for bandwidth usage on the backbone of networks for connecting millions of teens with simultaneous live video will be reserved for a future article!]

More and more videos are posted to YouTube, Vimeo and others now that are ‘un-edited’ – we appear, collectively, to be moving to more acceptance of a casual and ‘candid’ portrayal of our daily lives. Things like FaceTime, Skype video calls and so on make us all more comfortable with sharing not only our voices, but our visual surroundings during communication. Maybe this shouldn’t be so surprising, since that is what conversation was ‘back in the day’ when face-to-face communication was all there was…

We are surrounded by cameras today:  you cannot walk anywhere in a major city (or even increasingly in small towns) without being recorded by thousands of cameras. Almost every street corner now has cameras on the light poles, every shop has cameras, people by the billions have cellphone cameras, not to mention Google (with StreetView camera cars, GoogleEarth, etc.)  One of the odd things about cameras and photography in general is that our perceptions are not necessarily aligned with logic. If I walk down a busy street and look closely at someone, even if they see me looking at them, there might either complete disregard, or at most a glance implying “I see you seeing me” and life moves on. If I repeat the same action but take that person’s picture with a big DSLR and a 200mm lens I will almost certainly get a different reaction, usually one that implies the subject has a different perception of being ‘seen’ by a camera than a person. If I repeat the action again with a cellphone camera, the typical reaction is somewhere in between. Logically, there is no difference: one person is seeing another, the only difference is a record in a brain, a small sensor or a bigger sensor.

Emotionally, there is a difference, and therein lies the title of this post – The Perception of Privacy. Our interpretations of reality govern our response to that reality, and these are most often colored by past history, perceptions, feelings, projections, etc. etc.  Many years ago, some people had an unreasonable fear of photography, feeling that it ‘took’ something from them. In reality we know this to be complete fallacy:  a camera captures light just like a human eye (well, not quite, but you get the idea). The sense of permanence – that a moment could be frozen and looked at again – was the difference. With video, we can now record whole streams of ‘moments’ and play them back. But how different really is this from replaying an image in one’s head, whether still or moving? Depending on one’s memory, not very different at all. What is different then? The fact that we can share these moments.. Photography, for the first time, gave us a way to socialize one person’s vision of a scene with a group. It’s one thing to try to describe in words to a friend what you saw – it’s a whole different effect when you can share a picture.

Again, we need to see the logic of the objective situation:  if a large group shares a visual experience (watching a street performer for example) what is the difference between direct vision and photography? Here, the subject should feel no difference, as this is already a ‘shared visual experience’ – but if asked, almost every person would say it is different, in some way. There is still a feeling that a photograph or video is different from even a crowed of people watching the same event. Once again, we have to look to what IS different – and the answer can only be that not only can a photo be shared, but it can shared ‘out of time’ with others. The real ‘difference’ then of a photo or video of a person or an event is that it can be viewed in a different manner than ‘in the moment’ of occurrence.

As our collective technology has improved, we now can share more efficiently, in higher resolution, than in the days of campfire songs and tales. Books, newspapers, movies, photos, videos… it’s amazing to think just how much of technology (in the largest sense – not just Apple products!) has been focused on methods improving the sharing of human thought, voice, image. We are extremely social creatures and appear to crave, at a molecular level, this activity. In many cultures today, we see a far more relaxed and tolerant attitude towards sharing of expression and appearance (nudity / partial nudity, no makeup, candid or casual appearance in public, etc. etc.) than existed a decade ago. We are becoming more comfortable in ‘existing’ in public – whether that ‘public’ is a small group of ‘friends’ or the world at large.

One way of looking at this ‘perception of privacy’ is through the lens of a particular genre of photography:  streetphotography. While, like most descriptions of a genre, it’s hard to pin down – basically this has evolved to mean candid shots in public – sort of ‘cinema vérité’ in a still photo. Actually, the term paparazzi is a ‘sub-group’ of this genre, with typically their focus limited to ‘people of note’ (fashion, movie, sports personalities) – whose likenesses can be sold to magazines. While this small section has undoubtably overstepped the bounds of acceptable behavior in some cases, it should not be allowed to taint the larger genre of artistic practice.

The facts, in terms of what’s legally permissible, for ‘streetphotography’ do vary by state and country, but for most of the USA here are the basics – and just like other perceptions surrounding photography, they may surprise some:

  • Basically, as the starting premise, anything can be photographed at any time, in any place where there is NOT a ‘reasonable expectation of privacy’.
  • This means, that similar to our judicial system where ‘innocent until proven guilty’ is the byword, in photography, the assumption is that it is always permissible to take a picture, unless specifically told not to by the owner of the property on which you are standing, by posted signs, or if you are taking pictures of what would generally be accepted as ‘private locations’ – and interestingly there are far fewer of these than you might think.
  • The practice of public photography is strongly protected in our legal system under First Amendment rulings, and has been litigated thousands of times – with most of the rulings coming down in the favor of the photographer.
  • Here are some basic guidelines:  [and, I have to say this:  I am not a lawyer. This is not legal advice. This is a commentary and reporting on publicly available information. Please consult an attorney for specific advice on any legal matter].
    • Public property, in terms of photography, is “any location that offers unfettered access to the public, and where there is not a reasonable expectation of privacy”
    • This means, that in addition to technically public property (streets, sidewalks, public land, beaches, etc. etc.), that malls, shops, outdoor patios of restaurants, airports, train stations, ships, etc. etc. are all ‘fair game’ for photos, unless specifically signposted to the contrary, or if the owner (or a representative such as a security guard) asks you to refrain from photography while on their private property.
    • If the photographer is standing on public property, he or she can shoot anything they can see, even if the object of their photography is on private property. This means that it is perfectly legal to stand on the sidewalk and shoot through the front window of a residence to capture people sitting on a sofa… or for those low flying GoogleEarth satellites to capture you sun-bathing in your back yard… or to shoot people while inside a car (entering the car is forbidden, that is clearly private property).
    • In many states there are specific rulings about areas within ‘public places’ that are considered “areas where one has a reasonable expectation of privacy” such as restrooms, changing rooms, and so on. One would think that common sense and basic decorum would suffice… but alas the laws had to be made…
    • And here’s an area that is potentially challenging:  photography of police officers ‘at work’ in public. It is legal. It has been consistently upheld in the courts. It is not popular with many in police work, and often photographers have been unjustifiably hassled, detained, etc. – but ‘unless a clear and obvious threat to the security of the police officer or the general public would occur due to the photography’ this is permitted in all fifty states.
    • Now, some common sense… be polite. If requested to not shoot, then don’t. Unless you feel that you have just captured the next Pulitzer (and you did it legally), then go on your way. There’s always another day, another subject.
    • It is not legal for a policeman, security guard or any other person to demand your camera, film, memory cards – or even to demand to be shown what you photographed. If they attempt to take your camera they can be prosecuted for theft.
    • One last, but very important, item:  laws are local. Don’t get yourself into a situation where you are getting up close and personal with the inside of a Ugandan jail… many foreign countries have drastically different laws on photography (and even in places where national law may permit, local police may be ignorant… and they have the keys to the cell…)  Always check first, and balance your need for the shot against your need for freedom… 🙂

What this all shows is that photography (still or moving) is accepted, even at the legal level, as a fundamental right in the US. That’s actually a very interesting premise, as not many things are specifically called out in this way. Most other practices are not prohibited, but very few are specifically allowed. For instance, there is no specific legal right to carpentry, although of course it is not prohibited. The fact that imaging, along with reporting and a few other activities are specifically allowed points to the importance of social activities within our culture.

The public/private interface is fundamental to literally all aspects of collective life. This will be a constantly evolving process – and it is being pushed and challenged now at a rate that has never before existed in our history – mainly due to the incredible pace of technological innovation. While I have focused most of this discussion on the issues of privacy surrounding imaging, the same issues pertain to what is now called Big Data – that collection of data that describes YOU – what you do, what you like, what you buy, where you go, who you see, etc. Just as in imaging, the basic tenet of Big Data is “it’s ok unless specifically prohibited.” While that is under discussion at many levels (with potentially some changes from ‘opt out’ to ‘opt in’), many of the same issues of ‘what is private’ will continue to be open.

Who owns the rain? A discussion on accountability of what’s in the cloud…

March 30, 2012 · by parasam

As the ‘cloud’ overshadows more and more of our daily lives, it is imperative that we collectively engage in some serious discussion regarding the water vapor that is stored there…

Like so much of the ‘real world’, the virtual world is also being cast into dialectical aspects:  in particular the storage capability of the cloud. Much ado has been made recently of cyberlocker sites, such as MegaUpload, who allegedly allowed and even promoted the storage and sharing of copyrighted material. On the one side we have the so-called ‘black hat’ sites:  Pirate Bay, MegaUpload, 4Shared, Rapidshare, etc. – and on the other side, the perceived ‘white hat’ sites:  BoxNet, DropBox, iCloud, Facebook, YouTube, AmazonEC, etc. As with most anything, these are highly arbitrary, and impossible to prove, labels. That has not stopped the popular press from weighing in, and oft times enforcing, a prejudicial outlook on a given ‘cloud’.

I am making no defense of, or even an analysis of, the particular business practices of any given cloud storage site or entity. I am however pointing out that a lot of finger-pointing is going on that really lacks logic of any kind. I simply detest bad science. Or illogical assumption that is unsupported by fact. I won’t even start on the issues surrounding global warming – that must wait for a separate post… (Yes, we’re getting hotter. Right now. It’s happened in the past though. Yes, I agree that we humans are doing things that seriously don’t help this situation. But the worst thing we can do is to falsely overstate or make claims that are unsupported by fact. That only gives the ostrich-heads fuel to oppose any changes in behavior that would be beneficial.]

Ok, back to clouds and rain. Yes, stealing content (movies, music, etc.) and storing it in the cloud for the sole purpose of giving it away (thereby depriving the content owner of their rightful income), or even worse, selling it and keeping all the profit, is illegal and morally wrong. Period. But at this time we are killing the messenger… When hurricane Katrina devastated New Orleans, I heard a lot of blame going around, but I can’t recall a single instance of anyone screaming at the clouds – even though that’s precisely where all the water came from (well, to be completely accurate the wind that pushed the storm surge caused a lot of the flooding as well). So why is it that we are so up in arms today about the storage facilities for all the ‘rain’ that is inside our digital clouds?

How do we really measure and judge that Apple’s iCloud, for example, is a ‘good guy’ and 4Shared is a ‘bad guy’? Reputation? There are no large scale factual measurements of the real files stored in either site. There are a lot of assumptions that certain sites, such as PirateBay, MegaUpload (now defunct), and others cater to those individuals who steal content and upload it for either real profit or ‘denial-of-income’ attacks on the rightful content owners. However, if it was possible, I would bet that a really large amount of technically illegally obtained or shared content is sitting right now in iCloud, BoxNet, DropBox and many other sites that have the ‘white hat’ shine on them today…

The truth is that, barring any real hardcore file analysis measurement, it is impossible to say what is where. In fact, many of the so-called ‘white hat’ sites are actually more opaque than the so-called ‘pirate sites’ – in that the pirate sites often allow public scouring and downloading after paying an access fee – while DropBox and other similar sites basically host private cyberlockers. Now while technically the terms of service (and they vary here, I am not quoting from any one particular site) don’t allow wholesale sharing of your password, so in theory an account holder of a BoxNet account can’t put up 10,000 music files and then post the password openly on the internet for anyone to download – there are rather simple technical workarounds for that. To avoid a public spanking I won’t divulge the details, but as long as a user was willing to support even a single computer that ‘reflected’ the private account through an anonymous connection… well you get the picture. Any reasonably clever 14-year-old can pull this off…

The real philosophical trouble here is that the current heavy-handed legislation that is being used to shut down sites such as MegaUpload are based on ‘bad science’. These kinds of laws can open a very big door through which truckloads of ‘unintended consequences’ can drive through… Even a short term shutdown of a site can financially ruin that business, whether or not the action is later supported in court and rescinded. How would you feel if YouTube was seized and closed by the Justice Department? The difference between YouTube and MegaUpload is only one of perceived scale of ‘obnoxious behavior’… copyrighted material is illegally posted on YouTube every minute – the difference is that YouTube makes a serious and honest effort to take down such content when found or notified. But still just a feeling or perception of behavior should not be sufficient to warrant drastic actions such as a complete site shutdown without a significant and factual backing – which is not the case with MegaUpload. Remember, this is at this time an allegation and a set of indictments – that have not been proven in court.

I am offering no defense for this particular business, and they may very well be guilty as charged – the issue I bring to the table for discussion is the general premise that ‘cyberlockers are bad things.’ That is just patently false. We need to refine our legal efforts to address the ‘real’ criminal aspect and actions, and find a way to prove that factually so that when indictments are brought forward they are done so based on logic and evidence. It’s a very tricky slope, and one that will take much thought. At the core of this whole issue is the need to somehow inspect content, either on it’s way up to the cloud, or inside the cloud. And that can clearly make Pandora look like the owner of a very tiny box in comparison… Who gets to look? How is content assessed to be ‘legal’? What happens if this data is used for alternate means (the huge current issue of data accumulation by websites for targeted advertising which is unapproved by users)? For instance, the so-called ‘registration’ required by the Egyptian state police of all internet users in that country is in and of itself not necessarily an evil thing… the use of that data by internal security forces to disappear, harm and even kill people based on that knowlege – and the subsequent monitoring of data transmitted by those users – is unquestionably repugnant.

Unchecked, the current form of legislative overkill and heavy-handed action could put a serious dent in the functionality of the cloud infrastructure. This is already obvious if you dig around and see the amount of legal hours being billed to Facebook, Google, Amazon, Apple and others that host large cyberlocker sites. They are worried – and rightfully so. Our US government is not alone in this type of behavior, similar actions are either on the books or are contemplated in many countries. As noted, some cultures are already far more ‘policed’ today than the USA. Asian countries in general – whose base cultures are more consensus oriented than Western European and American cultures – already allow their governments a great latitude in monitoring and inspection of their respective private citizens’ web behavior.

I don’t want to see modern technology used to easily deny rightful income to artists and entertainment companies. I do want to ensure that anyone that uploads or stores content of their own (and this included purchased copyrighted material that falls under fair use policy for limited personal sharing, backup and viewing on alternative devices) is not subject to penalty. What if I create or purchase art that others may find offensive? The First Ammendment easily affords protection to speech and printed material – the laws are much less tested in regards to clouds…

In general, I hope to promote thought, discussion and eventually a dialog that will improve our collective understanding and actions towards how these new wonderful technical entities in our lives are matched to our laws, morals and cultural norms. It is an adjustment – the rate of technical innovation has vastly outstripped the pace of development of our legal and cultural systems. But let’s have some open and honest conversation about these issues before we end up living with badly designed rules that are unwittingly harmful to many innocents.

Privacy, Security and the Virtual World…

March 27, 2012 · by parasam

I’ve written on this before, and will again I am sure. It’s an important issue that interests and concerns me, and I assume many of my readers as well. The issue of privacy and security is fundamental, and much of human history and our legal system has been concerned with these issues. “A man’s house is his castle and fortress, et domus sua cuique tutissimum refugium” was written in 1628 by Sir Edward Coke in his legal treatise The Institutes of the Laws of England – (the Latin at end of the sentence translates to and each man’s home is his safest refuge). This principle has been used by countless societies since then to allow defense of what is considered ‘private property’ – whether this be real or virtual.

The recent rate of technological innovation has vastly outstripped the pace of our legal systems as well as even our social, cultural and philosophical consensus. We are now forced to grapple with realities that were only months or a few years back not even conceptualized. And the challenges keep on coming. Here are some recent examples of really good ideas that can have some really bad consequences…

♦ We have all heard much about ‘locational privacy’ – the result of our personal location being revealed through GPS, cellphone tower triangulation, WiFi hotspot location, etc. etc. While incredibly useful and convenient (just ask Siri “where can I get a pizza?”, and with no further information she gives you 3 choices within a few hundred meters…) – this technology can also provide unwitting information for stalkers, abusive partners, criminals, or just plain overzealous advertisers to invade our sense of personal privacy.

Another example:  recently mall owners were thwarted in their attempts to track shoppers without notification using their mobile devices. PathIntelligence was hired by Promenade Temecula in southern California and Short Pump Town Center in Redmond, VA to test their FootPath Technology system – without knowledge or consent of shoppers. Basically, the system uses the TMSI signal (Temporary Mobile Subscriber Identifier) – which is emitted continuously anytime a cellphone is powered on [it’s part of the basic cellphone technology – allowing a user’s phone to be identified by a nearby tower, so that when the user wants to place a call a link can be established and authenticated]. There is no way for a user to know they are being monitored in this fashion, and the only way to not be detected is to turn your phone off – not a realisitic answer – particularly if you don’t know you’re being monitored in the first place! The full article is here.

The upside of this technology is [supposedly] anonymous foot traffic info so retailers in malls can see where patrons go when they leave Macy’s for example – which fast food place do they go to next? This of course can be consumed by targeted ad campaigns.The downside:  using ‘orthogonal data mining’ techniques (whereby separate databases are ‘mined’ for information based on specific search parameters that yield collective data that is much more informative than any one particular database may yield), it would be entirely possible, for example, to derive the following information: – a so-called ‘anonymous’ shopper buys perfume at Macy’s, using their Macy’s charge card. Since the fine print on your charge agreement with Macy’s is different (and, like most department and other chain stores – allows much more use of your personal data) than your generic VISA or MasterCard, your purchase is now linked to your past history of Macy’s shopping. Now, while the FootPath system only tracks ‘anonymous’ cellphones, it doesn’t take rocket science to start following digital breadcrumbs.. Shopper “Jane Doe” buys perfume at 10:18AM in Macy’s; an anonymous shopper leave Macy’s at 10:21AM and goes to Steve Madden (women’s shoes, for you clueless guys) and buys a pair of sandals, again on a charge card… you get the picture… At best, your patterns, lifestyle, etc. are merged into what is often being called a ‘creepybase’ – a database so personally identifying as to have a significant ‘creep factor’ – and worth a lot to advertisers who desire the most detailed profiles possible. At worst, your ‘profile’ is sold off to criminals who (and this real BTW!) build ‘target profiles’ of people that buy at certain stores (i.e. have a certain level of income), and how long they take to do that… so they won’t be home when their homes are robbed…

♦ Again, another example of how basic locational services (GPS, often augmented with WiFi hotspot triangulation) is being extended. Google was awarded a patent recently for a new technology to determine not just where you are but what you are doing: based on ambient sounds, temperature and any other data that can be measured, either directly or indirectly, by your smartphone or other data device. An actual example provided by Google in the patenet application: “You’re attending a baseball game and call Google’s 411 service for information about a nearby restaurant. The cheers of the crowd and the sounds of the announcer are picked up by your phone. Google’s system analyzes the background noise, takes into account your location, determines that you’re at a ballgame and delivers related ads or links to your phone with sports scores and news.”But did the user know that their call to information was being monitored in that fashion, and used for targeted advertising? And remember, the web never, never, never forgets. Anything. Ever. Regardless of what anyone or any company tells you. And oh by the way the next time you call in sick when the surf’s up… better not be at the beach with a wave crashing in the background… (soundproof padded rooms for certain phone calls will soon be necessary…)

♦ There are new technologies that aim to ‘read’ moods and emotions of speakers. By using advanced voice recognition software that is sensitive to not only the actual words, but the contextual semantics of speech and word patterns, tonal variances in speech sounds, breathing cadence, etc. the algorithms can, on the good side, be used to identify sales pitches that are disguised; scam artists that seek to prey on the eldly, etc. But, since this game is a contstant cat-and-mouse, within a week expect the ‘bad guy’ to be self-monitoring his own speech patterns with such a tool – and using it to analyze his mark’s speech to see if the person on the other end of the phone is suspicious, distressed – or calm and accepting.

♦ Face recognition has received a lot of press recently – it’s getting a LOT better, and is now within the reach of a casual consumer, not just police departments. Researchers at Carnegie Mellon University recently identified about a third of all randomly selected, previously unknown (to the researchers) subjects, just using facial recognition technology recently acquired by Google. With a little social engineering, that figure went up to over 70%. And that’s not all: The professor running the research showed:  “As a demonstration of his latest project, Prof. Acquisti also built a mobile-phone app that takes pictures of people and overlays on the picture a prediction of the subject’s name and Social Security number. He said he won’t release the app, but that he wanted to showcase the power of the data that can be generated from a single photo.” This particular research typically got the first five numbers of the SSN correct on the first attempt, all 9 numbers after only 4 attempts.Now, a new startup (Faced.me) has an app that will shortly release that allows VERY fast facial recognition (under 1 second) – and then can automatically link to that person’s Facebook, Twitter, LinkedIn accounts. Now this can be cool – a useful tool for salepeople, tradeshows, conventions, etc. — but the potential ‘creep factor’ is obvious… troll a shopping mall for teenage girls (who are notoriously lax with online security, and tend to post their life story, and pictures, on just about every social site) and snap pix, get IDs, log into FB page, – well you get the picture…

♦ Augmented Reality (AR) has been around for some time, but only recently has it moved from motion picture screens as ‘magic’, and heads-up displays of fighter aircraft (where terrain-following radar is used to call up actual photos from a flight path to better identify obstacles and targets when flying at extremely low altitude (and yes, fighter aircraft DO fly under bridges!). You can now download an app for your iPhone or iPad (Autonomy’s Aurasma) that performs automatic AR on images that are in it’s library. For instance, you point your iPhone camera (while in the Aurasma app) at a still photo of a sporting event, within seconds a live video overlays the still of the game highlights… it’s an advertisers mecca:  point this app at billboards, storefronts, print ads in magazines – and a targeted video that is tuned to the user (using of course all the other bits we have discussed above) starts playing.However… now the ‘cloud’ knows exactly what you are looking at, what you like while you are there, etc. etc. And, BTW, do you know that ALL of the iPhone (and iPad) hardware is available to any app developer – just because you are using the rear-facing camera to run the AR app, for example, does not mean the little front-facing camera (that sees you!) cannot be turned on and used at the same time… and of course with facial recognition – and the fact that you are so close to the camera – sophisticated facial feature analysis algorithms can read your emotional state, track where your eyes are focused on the image (and since the image is being fed to you by the app, the app creator knows exactly what part of the image is catching your eye)…  [big note:  I am NOT saying that this particular app – Aursama – does this, nor do I even suspect that it does – just pointing out what is perfectly legal, feasible and possible today].

The above are just a few examples of how recent technological advancements have put real pressure on our sense of privacy and security. I am not advocating a return to kerosene lanterns and horses – I personally derive much benefit from these new features. I like the fact that I can just raise my phone and ask Siri “Is it going to rain today?” – no matter where I am – and with no other information provided directly by me – I get my answer in a few seconds. But we collectively must address these new ‘freedoms’ and figure out how to protect our ‘castles’ – even if they are made of virtual bits and not bricks.

I don’t yet have a plethora of answers for these challenges, nor am I sure I even have all the questions… but here are a few points for consideration:

    • The definition of privacy has a lot to do with the concept of boundaries.  The walls of your house are a boundary:  police need a warrant to enter without invitation, defense against criminal entry is usually legal, etc.  Even in public, the inside of your car is a boundary, again, any broach of this boundary without invitation is considered a breach of privacy. And that was recently extended by US Supreme Court to mean that police can’t stick a GPS tracking device on the outside of a car without a warrant…As a society, we must respect boundaries, both social, physical and moral. Without such respect, chaos ensues. Some boundaries are already accepted as ‘virtual’ – but well respected in both moral and legal realms. Even in a public place, if you go to kiss a girl and she says “No!” – you are most definitely crossing a boundary if you don’t respect that – and you will likely have significant consequences if you don’t…
    • What then are the virtual ‘boundaries’ of data about our behavior? Who owns that data that is collected about our purchasing habits, travel preferences, musical likes, etc.? How do we collectively establish a normative acceptable protocol for targeted advertising that won’t creep out consumers (remember the Target scandal over pregnancy products pitches?) and yet at the same time prove effective so that company ad spends are seen to be worthwhile? Remember, that there is no such thing as free. Ever. Only alternatively funded. Every ‘free’ Google search you get to make is paid for by those pesky little ads at top and side of page. The internet that we know and love costs a LOT to run. Forbes estimates $200 billion per year. And that’s just operating expenses, not capital investment. While it’s really impossible to say, several sages that know much more than me about this have estimated a world-wide investment of $2 trillion is currently invested in the entire internet infrastructure. Now that’s enough cash to even get China’s attention… And most of us access this for a very small cost (just our data costs from internet provider) and pay nothing further for all the sites we visit (with small percentage of paying customers:  porn and news are the two largest ‘paywalls’ on the ‘net). So we must all thank the advertisers. They pay for most of the rest.
    • Assuming that at some point we come to a collective agreement on ‘what is ok and what is not’ in terms of virtual behavior (and this is not simple – the internet by it’s very nature has no effective ‘nation-state’ boundaries) then how do we police this? Today, with only very small exceptions (and even then mostly unenforceable) in the World Court, all legal redress is localized. Witness the tremendous difficulty that movie studios have with enforcing even egregious piracy actions from off-shore server farms. The combined forces of NSA, CIA, FBI, etc. etc. are frequently brought to bear on international money laundering, etc. – with many more failures than they will ever admit. If these boys, with their almost inexhaustable store of high-tech toys, can’t easily wrestle the beast of recalcitrant bits to the ground, what chance will the virtual equivalent of ‘small claims court’ have for the average citizen? These are real questions that must be resolved.

A Tale of Two Booksellers…

March 7, 2012 · by parasam

This is a short story of a recent personal experience – but I believe it carries some important observations for business, customer service and the new paradigm of consumption from the cloud.

Once upon a time there were ‘real’ books, rather heavy tomes made of flattened tree bits, embossed with ink derived from carbon and oil. In those distant past times many small booksellers stocked and sold these volumes, often with great knowledge, enthusiasm and insight into their customers’ needs and desires – for both knowledge and entertainment. But… the little pesky electron came along… and after some developement eventually inhabited bits of silicon and glass, and before you could recite “Little Red Riding Hood” we had IBMs, Apples, Microsofts and other new life forms…

Eventually almost all real things became translucent blobs of bits that originated in the Cloud of Everything, and with the correct credit gods these bits of life would rain down the pipes and wires and pour into your pads and pods and phones to stimulate the eyes in almost the same way as the books of old would do. Funny how certain nostalgic actions are required to make the process of reading enjoyable – many many hours of psychological testing finally showed the wizards of C++ that a complicated animation was required – the page turn – for a user to move from one screen of text to the next. A simple snap actually took one out of the reading experience.

All of this took, unfortunately, a toll on the small independent booksellers – another form of disintermediation – and with the drive of the consumer to save a penny no matter what, and the awful silence of empty stores – and tills – the coalescence of book-clouds eventually focused on a border, a noble barn and a river. The challenge of making a buck in the cloud is quite awesome – talk about emporer’s new clothes:  most of the top twenty ‘places to go in the cloud’ are STILL losing money – lots and lots and lots of money. When GM lost this much, the planet quaked and the almighty Congress had to dip in our coffers… when the cloudsellers lose this much, Wall Street just prints more stock and it sells as fast as it’s available…

Perception is EVERYTHING!

Back to our tale… eventually the Borders of one fine business came crashing down, leaving only the ‘little’ guy

and the big guy…

Now back when there were three… I preferred to shop at Borders – (guess I rented from Avis as well…) – I liked their bookshops better – and even during the ‘transformative years’ – when I still liked to browse a real bookshop, even if I then bought the book online since I preferred to read on my tablet I found their treatment of the customer better.

I had initially tried out the Big River, but was turned off by two things:  I still preferred to browse in a real space where I could wander and see things that I was not searching for – no one, and I mean no one, has figured out how to do this in the cloud. And that’s a really big deal. But we’ll save that story for another day…  My other issue with the amazing Amazon was an overly busy interface. For someone that started out selling books – which if done correctly can be graphic masterpieces – their web site is just plain offensive. It reminds me of shopping at the clearance sale at Ross or Filene’s Basement – overcrowded, disorganized and chaotic.

So I ended up at the Noble Barne – and I liked their reader app for the iPad a bit better than the Kindle one anyway. After all, I was there to buy and read books, nothing else. I liked the focus of BN on being (mostly) a bookseller, even in the cumulo-nimbus white puffy arena. The Big River now was selling everything from washing machines to recording studios… books had become almost a sideline. I, more or less, endured this for about a year. I remember reading in the news shortly after Borders sunk into the tarpit of bankruptcy and legal fees that Barnes & Noble CEO was worrying that Amazon could ‘spend them into the ground’ in terms of technology and infrastructure – but his hope and plan was to stay tightly focused on their book-reading customers – and offer them a superior experience – along with good enough technical prowess to compete with the monster. BN made noise about the huge investment they were making in technology, etc. to continue to pile more angels into their cloud, and make the experience as close to the bookshops of olden days as possible.

Well… just like waking up from the last page of a good Grimm’s Fairy Tale… little cracks in the plaster got wider… I first started having trouble with the BN site last year – it would often become unresponsive. E-mails to the guardian angels were ignored or took days to hear back – maybe, just like hailstones, my mail went up and down and up and down and… ??  Then – and to be fair this was an external wrench in the works – Apple kicked everyone out of their ‘in-app’ purchase nest… after all, if you are the most capitalized company on earth, then obviously you need even higher profits – no matter if your users are hit with more cumbersome purchasing process. So now we all had to go out to Safari or whatever to purchase our e-books, then return to the reader app to read them.

Now this did give both the Nook and Kindle hardware a bit of a leg up – since this issue only arose on the iDevice… but, with about an 80% market share it was a complete non-starter for BN to suggest to me that I should go buy a Nook for reading – they basically were saying “Apple doesn’t matter” – that’s a bit like looking at a tsunami coming in and sticking your head in the sand saying “it’s only a wave…”

From late fall last year into winter (ok, northern hemisphere – and I should know better as I make my home in one of the southernmost bits of land on the planet – but I work in the North so tend to write from that point of view) this experience only got worse and worse. Basically it has been impossible to buy a book on BN.com on any Apple iOS device for months now. I have to go to a PC/Mac and make the purchase, then I can download and read on the pad. The e-mails to angels, then the archangels, then to Gabriel himself – all basically went nowhere. The replies were scripted, with no attention to the facts presented. The ‘solutions’ (buy a Nook), etc. were insulting.

I still wanted to give the little guy another chance before falling in the River with most everyone else… so I actually tried an abnormal procedure – to call a person (at least I had hoped to find a carbon life form, and not Siri’s sister) that could maybe shed some light on what had now become a travesty of an experience. I won’t bore you with details, but once upon a time I could sign into my account on BN.com and then make my purchases with a single click. Yes, I did get a nice little dialog that said “Are you sure?” – that’s cool, one more click and I’m done. But now… even though I am signed in, EVERY time that I make a purchase, I get redirected to another page where I have to sign in again, then redirected to a 3rd page where I have to accept the purchase, then… I get back to the original page and see the purchase is confirmed. Only that experience, as clumsy as it is, only works on a computer, not a mobile device. The whole process just hangs on anything but a laptop/desktop.

So… I eventually talk to a human or two… after a number of really horrible phone-menu-from-hell trips – and I’m sorry here, I am not being (too) politically incorrect, but please Mr. Noble – I’m not stupid. When someone who is completely obvious as having English as his 3rd or 4th language introduces himself as “John” and proceeds to attempt to speak with a cadence and lexicon that is totally unauthentic – it’s insulting to his native culture and my intelligence. Reading every response off a computer screen sounds just like what it is – and therefore the customer is never really heard. I don’t mind that you want to save costs and source your helpdesk in Mumbai or Delhi, but speaking on the phone IS a skill – hire and train staff to be good at it – but natural. If we are all going to be living in the cloud together, let’s at least celebrate our diversity but work towards a common understanding.

Sadly, the fork in the road was reached – I ran out of my last patience pill, and have thrown down David and gone to Goliath… with the same restrictions from Apple (no in-app purchasing) I was able to go from the Kindle reader to Safari on iPad, purchase my book, and return to find it already loading, with a total of 4 taps. No extra sign in. Just about as simple a process as could be, given Apple’s current policy.

I still don’t like the look of the website. I’m getting used to the little differences in the Kindle app reader – but my blood pressure is down from the cloud and I can now spend my time reading instead of fighting poorly implemented technology, ignorant and uncaring staff, and a general feeling of inferiority in not being able to make something work that’s supposedly simple.

I hope that this is seen as not just another flame on the internet – but rather an example of how ‘that which matters’ is your customer. Always. Forever and ever and ever. Nothing else matters. In spite of the miracles of technology, only real carbon-based organisms eventually consume your products. Even though the largest portion of communication on the web today is M2M (Machine to Machine) – all of this is only to facilitate some human’s consumption of either a product or a service somewhere. So please Mr./Mrs. Merchant… take care of the ONLY resource that matters: your people. That means your customers (first) and your employees. Train them. Support them. Critique them. CARE enough to CARE. Your future really absolutely does depend on it. I just voted with my wallet. If enough others make the same decision, another Border will fall…

Ubiquitous Computational Fabric (UCF)

March 6, 2012 · by parasam

Ok, not every day do I get to coin a new term, but I think this is a good description for what I see coming. The latest thing in the news is “the PC is dead, long live the tablet…”   actually, all forms of current ‘computers’ – whether they are desktops, laptops, ultrabooks, tablets, smartphones, etc. have a life expectancy just short of butter on pavement on a warm afternoon.

We have left the Model “T” days, to use an automotive analogy – where one had to be a trained mechanic to even think about driving a car – and moved on just a little bit.

Ford Model “T” (1910)

We are now at the equivalent of the Model “A” – a slight improvement.

Ford Model “A” (1931)

The user is still expected to understand things like:  OS (Operating Systems), storage, apps, networking, WiFi security modes, printer drivers, etc. etc. The general expectation is that the user conform his or her behavior to the capabilities of the machine, not the other way around. Things we sort of take for granted – without question –
are really archaic. Typing into keyboards as the primary interface. Dealing with a file system – or more likely the frustration that goes along with dealing with incompatible filing systems… Mac vs PC… To use the automobile for one more analogy:  think how frustrating it would be to have to go to different gas stations depending on the type of car you had… because the nozzle on the gas pump would only fit certain cars!

A few “computational systems” today have actually achieved ‘user friendly’ status – but only with a very limited feature set, and this took many, many years to get there:  the telephone is one good example. A 2 yr old can operate it without a manual. It works more or less the same anywhere in the world. In general, it is a highly reliable system. In terms of raw computational power, the world-wide telephone system is one of the most powerful computers on the planet. It has more raw bandwidth than the current ‘internet’ (not well utilized, but that’s a different issue).

We are now seeing “computers” embedded into a wide variety of items, from cars to planes to trains. Even our appliances have built-in touch screens. We are starting to have to redefine the term ‘computer’ – the edges are getting very fuzzy. Embedded sensors  are finding their way into clothing (from inventory control tags in department stores to LED fabric in some cutting edge fashions); pets (tracking chips); credit cards (so-called smart cards); the atmosphere (disposable sensors on small parachutes are dropped by plane or shot from mortars to gather weather data remotely); roads (this is what powers those great traffic maps) and on and on.

It is actually getting hard to find a piece of matter that is not connected in some way to some computing device. The power is more and more becoming ‘the cloud.’ Our way of interacting with computational power is changing as well:  we used to be ‘session based’ – we would sit down at a desktop computer and switch gears (and usually employ a number of well chosen expletives) to get the computer up and running, connected to a printer and the network, then proceed to input our problems and get results.

Now we are an ‘always on’ culture. We just pick up the smartphone and ask Siri “where the heck is…” and expect an answer – and get torqued when she doesn’t know or is out of touch with her cloud. Just as we expect a dial tone to always be there when we pick up the phone, we now expect the same from our ‘computers.’ The annoyance of waiting for a PC to boot up is one of several factors users report on for their attraction to tablets.

Another big change is the type of connectivity that we desire and expect. The telephone analogy points to an anachronistic form of communication: point-to-point. Although, with enough patience or the backup of extra software, you can speak with several people at once, the basic model of the phone system is one-to-one. The cloud model, Google, blogs, YouTube, Facebook, Twitter etc. has changed all that. We now expect to be part of the crowd. Instead of one-to-one we now want many-to-many.

Instead of a single thread joining one user to another, we now live in a fabric of highly interwoven connectivity.

When we look ahead – and by this I mean ten years or so – we will see the extension of trends that are already well underway. Essentially the ‘computer’ will disappear – in all of its current forms. Yes, there will still be ‘portals’ where queries can be put to the cloud for answers; documents will still be written, photographs will still be manipulated, etc. – but the mechanisms will be more ‘appliance like’ – typically these portals will act like the handsets of today’s cellphone network – where 99% of the horsepower is in the backoffice and attached network.

This is what I mean by Ubiquitous Computational Fabric (UCF). It’s going to be an ‘always on’, ‘always there’ environment. The distinction of a separate ‘computer’ will disappear. Our clothing, our cars, our stoves, our roads, even our bodies will be ‘plugged in’ to the background of the cloud system.

There are already small pills you can swallow that have video cameras – your GI tract is video-ed and sent to your doctor while the pill moves through your body. No longer is an expensive and invasive endoscopy required. Of course today this is primitive, but in a decade we’ll swallow a ‘diagnostic’ pill along with our vitamins and many data points of our internal health will be automatically uploaded.

As you get ready to leave the bar, you’ll likely have to pop a little pill (required to be offered free of charge by the bar) that will measure your blood alcohol level and transmit approval to your car before it will start. Really. Research on this, and the accompanying legislation, is under way now.

The military is already experimenting with shirts that have a mesh of small wires embedded in the fabric. When a soldier is shot, the severing of the wires will pinpoint the wound location and automatically transmit this information to the medic.

Today, we have very expensive motion tracking suits that are used in computer animation to make fantasy movies.

Soon, little sensors will be embedded into normal sports clothing and all of an athlete’s motions will be recorded accurately for later study – or injury prevention. One of the most difficult computational problems today – requiring the use of the planet’s most massive supercomputers – is weather prediction. The savings in human life and property damage (from hurricanes, tornadoes, tsunamis, earthquakes, etc.) can be staggering. One of the biggest problems is data input. We will see a massive improvement here with small intelligent sensors being dropped into formative storms to help determine if they will become dangerous. The same with undersea sensors, fault line sensors, etc.

The real winners of tomorrow’s business profits will be those companies that realize this is where the money will flow. Materials science, boring but crucial, will allow for economic dispersal of smart sensors. Really clever data transmission techniques are needed to funnel the amount of collected information through oft time narrow pipes and difficult environments. ‘Spread-spectrum computing’ will be required to minimize energy usage, provide the truly reliable and available fabric that is needed. Continual understanding of human factor design will be needed to allow the operation of these highly complex systems in an intuitive fashion.

We are at an exciting time:  to use the auto one more time – there were early Ford engineers who could visualize Ferraris – even though the materials at time could not support their vision. We need to support those people, those visionaries, those dreamers – for they will provide the expertise and plans to help us realize what is next. We have only scratched the surface of what’s possible.

DI – Disintermediation

February 28, 2012 · by parasam

Disintermediation – a term you should come to know. Essentially this means “to remove the intermediary.” This has always been a disruptive process in cultures – whether affecting religion, law, education or technology. In religion, one well-known example was the rise of the Lutheran church when they felt the ‘intermediary’ process of pope, cardinals, bishops, etc. of the Catholic form was no longer necessary for the common man to connect to their belief in God.

Higher education used to be exclusive to those that could afford to attend brick-and-mortar campuses; now we have iTunesU, distance learning and a host of alternative learning environments open to virtually anyone with the time and focus to consume the knowledge.

Bringing questions of law was traditionally handled by barristers, attorneys and others – ensconced in a system of high cost and slow delivery of service. Today we have storefront paralegal offices, online access to many governmental and private legal services and a plethora of inexpensive software for preparation of common legal forms.

Each of these areas of practice fought long and hard to preserve the intermediary. We were told that our souls might be lost without the guidance of trained priests, that we might lose everything we owned if we prepared legal documents without assistance, and that only a trained professor could teach us anything.

We, collectively, begged to differ. And we slowly, with much bloodshed, sweat and tears, succeeded to emancipate ourselves from the yoke of enforced intermediation. However, like many true tools, knowledge is often represented as a sharp two-edged sword. Going it alone has consequences. There is no substitute for the compassion and experience of spiritual advisor, no matter his or her title. There are many areas of law where the specialized knowledge of legal codes, not to mention the oratorical skills of an experienced courtroom jouster, are essential to victory.  The guidance and explanation of one who has mastered the knowledge of a subject – not to mention the special skills of teaching, of helping a student to reach comprehension – are many times critical to the learning process.

Now we are confronting a new locus of disintermediation:  the provisioning of access to the ‘cloud’ of entertainment and information. The internet – in its largest sense – is in a new stage of democratization. The traditional providers of access (telcos, cable tv, satellite) are in a fight for their collective lives – and they are losing. Attempting to hold onto an outmoded business model is simply ‘dead man walking’ philosophy. At the most you can walk more slowly – but you will reach the hangman’s noose irregardless.

This will not be an overnight change, but we have already seen just how quickly ‘internet time’ moves. The velocity of change is on an exponential upwards curve, and nothing in our recent past has given us any reason to doubt this will alter anytime soon.

There are a number of factors that are fueling this:  the explosion of the number of content creators; the desire of traditional content creators (studios, episodic tv) to sell their content to as wide an audience as rapidly as possible; the high cost and oft-perceived low value-add of traditional NSPs (Network Service Providers – telco, cable, etc.)

One of the biggest reasons that has helped to propel this change in consumer behavior is knowledge:  as little as ten years ago the average media consumer associated the ‘channel’ and the ‘content’ as the same thing. Movies or news on TV came out the wall on a cord (no matter what fed the cord) – or movies could be seen on a plastic disk that you rented/bought. The concept of separation of content from channel did not exist.

Today, even the average 6-year-old understands that he or she can watch SpongeBob on almost anything that has a screen and a speaker. The content is what matters, how it gets there and on what device it is consumed just doesn’t matter much. Not a great thing for makers of networks or devices…

Fortunately the other side of the sword does exist… while the traditional models of telco provisioning of services are either antiquated or obsolete (the time/distance model of tariffs, high cost for low functionality, etc.), the opportunity for new business models does exist. What is disruptive for one set of structures is opportunistic for others.

Once content is ‘unbound’ from its traditional channels, a new world of complexity sets in:  metadata about the content gains importance. Is it SD or HD? What’s the aspect ratio: 4:3 or 16:9? What codec was used (for instance if it was Flash I can’t see it on my iPad), etc. etc.

Finding the content, or the version of it that you want, can be challenging. Licensing and other DRM (Digital Rights Management) issues add to the confusion. If voice communication (aka the telephone) is stripped out of its network and now becomes an ‘app’, (for instance like Skype), who sells/supports the app? If all “private networks” (telco, cable, satellite) become essentially data pipes only, what pricing models can be offered that will attract consumers yet allow such companies to run profitably? There is a growing tendency for “un-bundling” and other measures of transparency – for instance overseas mobile phone operators are backing away from cellphone handset subsidies. This was due in large part to the prevalence of  prepaid phone contracts in these regions – for which no subsidized phones can be provided. This has the knock-on effect of reducing iPhone sales and increasing Android (and other) less expensive phone hardware penetration. For instance, in the last year or so the sales of iPhones has fallen considerably in Greece, Spain, Portugal and Italy… Hmmm, wonder why??

All of these questions will assume larger and larger importance in the near future. Current modalities are either failing outright or becoming marginalized. We have heard the moniker “Content is King” – and it’s still true, much to the chagrin of many network providers. When one is thirsty, you pay for water, not the pipes that it arrives in…

Here’ s another anecdotal piece that helps to demonstrate that you cannot underestimate the importance of content ownership:  as is well known, VFX (Visual Special Effects) are now the ‘star’ of most movies. A decade ago, actors carried a movie, now it’s the effects… Do the research. Look at 2011 box office stats. Try to find a movie that was in top 20 grossing that did NOT have significant special effects… Now here’s the important bit:  one would think that the firms that specialize in creating such fantastic imagery would be wildly successful… NOT. It’s very, very expensive to create this stuff. It takes ungodly amounts of processing power, many really clever humans, and ridiculous amounts of time. Rango just won the Oscar… and in spite of the insanely powerful computers we have today, it took TWO YEARS to animate this movie!

The bottom line is that the ONLY special effects firms that are in business today or are remotely profitable, are the ones connected to either studios or consortiums that themselves own the content on which this magic is applied.

Content is water at the top of the hill. The consumers are at the bottom with their little digital buckets out, waiting to be filled. They just don’t care which path the water runs down the hill… but they DO care that it runs quickly, without damming up, and without someone trying to siphon off  ‘their’ water…

This is not all settled. Many battles will be won and lost before the outcome of the ‘war’ is known. New strategies, new generals, new covert forces will be deployed.

Stay tuned.

How ‘where we are’ affects ‘what we see’..

February 17, 2012 · by parasam

I won’t often be reposting other blogs here in their entirety, but this is such a good example of a topic on which I will be posting shortly I wanted to share this with you. “Contextual awareness” has been proven in many instances to color our perception, whether this is visual, auditory, smell, taste, etc.

Here’s the story:  (thanks to Josh Armour for his post that first caught my attention)

Care for another ‘urban legend’? This was has been verified as true by a couple sources.
A man sat at a metro station in Washington DC and started to play the violin; it was a cold January morning. He played six Bach pieces for about 45 minutes. During that time, since it was rush hour, it was calculated that 1,100 people went through the station, most of them on their way to work.
Three minutes went by, and a middle aged man noticed there was musician playing. He slowed his pace, and stopped for a few seconds, and then hurried up to meet his schedule.
A minute later, the violinist received his first dollar tip: a woman threw the money in the till and without stopping, and continued to walk.
A few minutes later, someone leaned against the wall to listen to him, but the man looked at his watch and started to walk again. Clearly he was late for work.
The one who paid the most attention was a 3 year old boy. His mother tagged him along, hurried, but the kid stopped to look at the violinist. Finally, the mother pushed hard, and the child continued to walk, turning his head all the time. This action was repeated by several other children. All the parents, without exception, forced them to move on.
In the 45 minutes the musician played, only 6 people stopped and stayed for a while. About 20 gave him money, but continued to walk their normal pace. He collected $32. When he finished playing and silence took over, no one noticed it. No one applauded, nor was there any recognition.
No one knew this, but the violinist was Joshua Bell, one of the most talented musicians in the world. He had just played one of the most intricate pieces ever written, on a violin worth $3.5 million dollars.
Two days before his playing in the subway, Joshua Bell sold out at a theater in Boston where the seats averaged $100.
This is a real story. Joshua Bell playing incognito in the metro station was organized by the Washington Post as part of a social experiment about perception, taste, and priorities of people. The outlines were: in a commonplace environment at an inappropriate hour: Do we perceive beauty? Do we stop to appreciate it? Do we recognize the talent in an unexpected context?
One of the possible conclusions from this experience could be:
If we do not have a moment to stop and listen to one of the best musicians in the world playing the best music ever written, how many other things are we missing?
Thanks +Kyle Salewski providing the actual video link here: Stop and Hear the Music
+Christine Jacinta Cabalo Points out that Joshua Bell has this story on his website: http://www.joshuabell.com/news/pulitzer-prize-winning-washington-post-feature
http://www.snopes.com/music/artists/bell.asp

Whose Data Is It Anyway?

February 17, 2012 · by parasam

A trending issue, with much recent activity in the headlines, is the thorny topic of what I will call our ‘digital shadow’. By this I mean collectively all the data that represents our real self in the virtual world. This digital shadow is comprised of both explicit data (e-mails you send, web pages you browse, movies/music you stream, etc.) and implicit data (the time of day you visited a web page, how long you spent viewing that page, the location of your cellphone throughout the day, etc.).

Every time you move through the virtual world, you leave a shadow. Some call this your digital footprint. The size of this footprint or shadow is much, much larger than most realize. An example, with something as simple as a single corporate e-mail sent to a colleague at another company:

Your original e-mail may have been a few paragraphs of text (5kB) and a two page Word document (45kB) for a nominal size of 50kB. When you press Send this is cached in your computer, then copied to your firm’s e-mail server. It is copied again, at least twice, before it even leaves your company: once to the shadow backup service (just about all e-mail backup systems today run a live parallel backup to avoid losing any mail), and again to your firm’s data retention archive – mandated by Sarbanes-Oxley, FRCP (Federal Rules of Civil Procedure), etc.

The message then begins its journey across the internet to the recipient. After leaving the actual e-mail server the message must traverse your corporation’s firewall. Each message is typically inspected for outgoing viruses and potentially attachment type or other parameters set by your company’s communications policy. In order to do this, the message is held in memory for a short time.

The e-mail then finally begins its trip on the WAN (Wide Area Network) – which is actually many miles of fiber optic cable with a number of routers to link the segments – that is what the internet is, physically. (Ok, it might be copper, or a microwave, but basically it’s a bunch of pipes and pumps that squirt traffic to where it’s supposed to end up).

A typical international e-mail will pass through at least 30 routers, each one of which holds the message in its internal memory for a while, until that message moves out of the queue. This is known as ‘store and forward’ technology. Eventually the message gets to the recipient firm, and goes through the same steps as when it first left – albeit in reverse order, finally arriving at the recipient’s desktop, now occupying memory on their laptop.

While it’s true that several of the ‘way-stations’ erase the message after sending it on its way to make room for the next batch of messages, there is an average memory utilization for traffic that is quite large. A modern router must have many GB of RAM to process high volume traffic.

Considering all of the copies, it’s not unlikely for an average e-mail to be copied over 50 times from origin to destination. If even 10% of those copies are held more or less permanently (this is a source of much arguing between legal departments and IT departments – data retention policies are difficult to define), this means that your original 50kB e-mail now requires 250kB of storage. Ok, not much – until you realize that (per the stats published by the Radicati Group in 2010) approximately 294 billion e-mails are sent EACH DAY. Do the math…

Now here is where life gets interesting… the e-mail itself is ‘explicit data’, but many other aspects (call it metadata) of the mail, known as ‘implicit data’ are also stored, or at least counted and accumulated.

Unless you fully encrypt your e-mails (becoming more common, but still only practiced by a small fraction of 1% of users) anyone along the way can potentially read or copy your message. While, due to the sheer volume, no one without reason would target an individual message, what is often collected is implicit information:  how many mails a day does a user or group of users send? Where do they go? Is there a typical group of recipients, etc. Often times this implicit information is fair game even if the explicit data cannot be legally examined.

Many law enforcement agencies are permitted to examine header information (implicit data) without a warrant, while actually ‘reading’ the e-mail would require a search warrant. At a high level, sophisticated analysis using neural networks are what is done by agencies such as the NSA, CSE, MI5, and so on. They monitor traffic patterns – who is chatting to whom, in what groups, how often, and then collating these traffic patterns against real world activities and looking for correlation.

All of this just from looking at what happened to a single e-mail as it moved…

Now add in the history of web pages visited, online purchases, visits to social sites, posts to Facebook, Twitter, Pinterest, LinkedIn, etc. etc. Many people feel that they maintain a degree of privacy by using different e-mail addresses or different ‘personalities’ for different activities. In the past, this may have helped, but today little is gained by this attempt at obfuscation – mainly due to a technique known as orthogonal data mining.

Basically this means drilling into data from various ‘viewpoints’ and collating data that at first glance would be disparate. For instance, different social sites may be visited by what appears to be different users (with different usernames) – until a study of ‘implicit data’ [the ip address of the client computer] is seen to be the same…

Each web session a user conducts with a web site transmits a lot of implicit data:  time and duration of visit, pages visited, cross-links visited, ip address of the client, e-mail address and other ‘cookie’ information contained on the client computer, etc.

The real power of this kind of data mining comes from combining data from multiple web sites that are visited by a user. One can see that seemingly innocuous searches for medical conditions, coupled with subsequent visits to “Web MD” or other such sites could be assembled into a profile that may transmit more information to an online ad agency than the user may desire.

Or how about the fact that Facebook (to use one example) offers an API (programmatic interface) to developers that can be used to troll the massive database on people (otherwise known as Facebook) for virtually anything that is posted as ‘public’. Since that privacy permission state is the default (unless a user has chosen specifically to restrict it) – and now with the new Facebook Timeline becoming mandatory in the user interface – it is very easy for an automatic program to interrogate the Facebook archives for the personal history of anyone that has public postings – in chronological order.

Better keep all your stories straight… a prospective employer can now zoom right to your timeline and see if what you posted personally matches your resume… Like most things, there are two sides to all of this:  what propels this profiling is targeted advertising. While some of us may hate the concept, as long as goods and service vendors feel that advertising helps them sell – and targeted ads sell more effectively at lower cost – then we all benefit. These wonderful services that we call online apps are not free. The programmers, the servers, the electricity, the equipment all costs a LOT of money – someone has to pay for it.

Being willing to have some screen real estate used for ads is actually pretty cheap for most users. However, the flip side can be troubling. It is well known that certain governments routinely collect data from Facebook, Twitter and other sites on their citizens – probably not for these same citizens’ good health and peace of mind… Abusive spouses have tracked and injured their mates by using Foursquare and other location services, including GPS monitoring of mobile phones.

In general we collectively need to come to grips with the management of our ‘digital shadows.’ We cannot blindly give de facto ownership of our implicit or explicit data to others. In most cases today, companies take this data without telling the user, give or sell it without notice, and the user has little or no say in the matter.

What only a few years ago was an expensive process (sophisticated data mining) has now become a low cost commodity. With Google’s recent change in privacy policy, they have essentially come out as the world’s largest data mining aggregator. You can read details here, but now any visit to any part of the Google-verse is shared with ALL other bits of that ecosystem. And you can’t opt out. You can limit certain things, but even that is suspect:  in many cases users have found that data that was supposed to be deleted, or marked as private, in fact is not. Some companies (not necessarily Google) have been found to still have photos online years after being specifically served with take-down notices.

And these issues are not just relegated to PC’s on your desk… the proliferation of powerful mobile devices running location-based apps have become an advertiser’s dream… and sometimes a user’s nightmare…

No matter what is said or thought by users at this point, the ‘digital genie’ is long out of the bottle and she’s not going back in… our data, our digital shadow, is out there and is growing every day. The only choice left is for us collectively, as a world culture, to accept this and deal with it. As often is the case, technology outstrips law and social norms in terms of speed of adoption. Most attempts at any sort of unified legal regulation on the ‘internet’ have failed miserably.

But that doesn’t mean this should not happen, but such regulation must be sensible, uniformly enforceable, equitable and fairly applied – with the same sort of due process, ability for appeal and redress, etc. that is available in the ‘real world.’

The first steps toward a more equitable and transparent ‘shadow world’ would be a universal recognition that data about a person belongs to that person, not to whomever collected it. There are innumerable precedents for this in the ‘real world’, where a person’s words, music, art, etc. can be copyrighted and protected from unauthorized use. Of course there are exceptions (the ‘fair use’ policy, legitimate journalistic reporting, photography in public, etc.) but these exceptions are defined, and often refined through judicial process.

One such idea is presented here, whether this will gain traction is uncertain, but at least thought is being directed towards this important issue by some.

[shortly after first posting this I came across another article so germane to this topic I am including the link here – another interesting story on data mining and targeted advertising]

Anonymity, Privacy and Security in the Connected World

February 3, 2012 · by parasam

Anonymity:  the state of lacking individual characteristics, distinction or recognizability.

Privacy:  the quality or state of being apart from observation, freedom from unauthorized intrusion.

Security:  defending the state of a person or property against harm or theft.

The dichotomy of privacy versus social participation is at the root of many discussions recently concerning the internet, with technology often shouldering the blame for perceived faults on both sides. This issue has actually been with us for many thousands of years – it is well documented in ancient Greece (with the Stoics daring to live ‘in public’ – sharing their most private issues and actions:  probably the long forerunner of Facebook…); continuing up until our current time with the social media phenomenon.

This is a pervasive and important issue that sets apart cultures, practices and personality. At the macro-cultural level we have societies such as North Korea on one side – a largely secretive country where there is little transparency; and on the other side perhaps Sweden or the Netherlands – where a more homogeneous, stable and socialistic culture is rather open.

We have all experienced the dualistic nature of the small village where ‘everyone knows everybody’s business’ as compared to the ‘big city’ where the general feeling of anonymity pervades. There are pros and cons to both sides:  the village can feel smothering, yet there is often a level of support and community that is lacking in the ‘city’.  A large urban center has a degree of privacy and freedom for individual expression – yet can feel cold and uncaring.

We enjoy the benefits of our recent social connectedness – Facebook, Twitter, etc. – yet at the same time fear the invasiveness of highly targeted advertising, online stalking, threats to our younger children on the web, etc. There is really nothing new about this social dilemma on the internet – it’s just a new territory for the same old conundrum. We collectively have to work out the ground rules for this new era.

Just as we have moved on from open caves and tents to houses with locked doors behind gated communities, we have moved our ‘valuables’ into encrypted files on our computers and depend on secure and reliable mechanisms for internet banking and shopping.

The challenge for all of us that seek to adapt to this ‘new world order’ is multi-faceted. We need to understand what our implicit expectations of anonymity, privacy and security are. We also need to know what we can explicitly do to actually align our reality to these expectations, should we care to do so.

Firstly, we should realize that a profound and fundamental paradigm shift has occurred with the wide-spread adoption of the internet as our ‘collective information cloud.’ Since the birth of the internet approximately 40 years ago, we have seen a gradual expansion of the connectedness and capability of this vehicle for information exchange. It is an exponential growth, both in physical reality and philosophical impact.

Arthur C. Clarke’s observation that “Any sufficiently advanced technology is indistinguishable from magic” has never been more true… going back thousands of years in philosophy and metaphysics we see the term “akashic records” [Sanskrit word] used to describe “the compendium of all human knowledge.” Other terminology such as “master library”, “universal supercomputer”, “the Book of Knowledge”, and so on have been used by various groups to describe this assumed interconnected fabric of the sum of human knowledge and experience.

If one was to take an iPad connected to the ‘cloud’ and time travel back even a few hundred years, this would be magic indeed. In fact, you would likely be burned as a witch… people have always resisted change, and fear what they don’t understand – weather forecasting and using a voice recognition program (Siri??) to ask and receive answers from the ‘cloud’ would have seriously freaked most observers…

Since we humans do seem to handle gradual adaption, albeit with some resistance and grumbling, we have allowed the ‘internet’ to insidiously invade our daily lives until most of us only realize how dependent we are on this when it goes away. Separation of a teenage girl from her iPhone is a near-death experience… and when Blackberry had a network outage, the business costs were in the millions of dollars.

As ubiquitous computing and persistent connectivity become the norm the world over, this interdependence on the cloud will grow even more. And this is true everywhere, not just in USA and Western Europe. Yes, it’s true that bandwidth, computational horsepower, etc. are far lower in Africa, Latin America, etc. – but – the use of connectivity, cellphones and other small computational devices has exploded everywhere. The per-capita use of cellphones is higher in Africa than in the United States…

Rose Shuman, an enterprising young woman in Santa Monica, formed Question Box, a non-profit company that uses a simple closed-circuit box with a button, mike and speaker to link rural farmers and others in Africa and India to a central office in larger towns that actually have internet access, thereby extending the ‘cloud’ to even the poorest communities with no direct online connectivity. Many other such ‘low-tech’ extensions of the cloud are popping up every day, serving to more fully interconnect a large portion of humanity.

Now that this has occurred we are faced with the same issues in the cloud that we have here on the ground:  how to manage our expectations of privacy, etc.

Two of the most basic exchanges within any society are requests for information and payment for goods or services. In the ‘good old day’ information requests were either performed by reading the newspaper or asking directions at the petrol station; payments were handled by the exchange of cash.

Both of these transactions had the following qualities:  a high level of anonymity, a large degree of privacy, and good security (as long as you didn’t lose your wallet).

Nowadays, every request for information on Google is sold to online advertisers who continually build a detailed dossier on your digital life – reducing your anonymity substantially; you give up a substantial amount of privacy by participation in social sites such as FaceBook; and it’s easier than ever to ‘follow the money’ with credit-card or PayPal transactions being reported to central clearing houses.

With massive ‘data mining’ techniques – such as orthogonal comparison, rule induction and neural networks – certain data warehouse firms are able to extract and match facets of data from highly disparate sources and assemble an uncannily accurate composite of any single person’s habits, likes and travels.  Coupled with facial recognition algorithms, gps/WiFi tracking, the re-use of locational information submitted by users and so on, if one has the desire and access, it is possible to track a single person on a continual basis, and understand their likes for food and services, their political affiliation, their sexual, religious and other group preferences, their income, tax status, ownership of homes and vehicles, etc. etc.

The more that a person participates in social applications, and the more that they share on these apps, the less privacy they have. One of the side effects of the cloud is that it never forgets… in ‘real life’ we tend to forget most of what is told to us on a daily basis, it’s a clever information reduction technique that the human brain uses to avoid overload. It’s just not important to remember that Martha told us in passing last week that she stopped at the dry cleaner… but that fact is forever burnt into the cloud’s memory, since we paid for the transaction with our credit card, and while waiting for the shirts to be brought up from the back we were on our phone Googling something – and Google never forgets where you were or what you asked for when you asked…

These ‘digital bread crumbs’ all are assembled on a continual basis to build various profiles of you, with the hope that someone will pay for them. And they do.

So… what can a person do? And perhaps more importantly, what does a person want to do – in regards to managing their anonymity, privacy and security?

While one can take a ‘bunker mentality’ approach to reducing one’s exposure to such losses of privacy this takes considerable time, focus and energy. Obviously if one chooses to not use the internet then substantial reductions in potential loss of privacy from online techniques occur. Using cash for every transaction can avoid tracking by credit card use. Not partaking in online shopping increases your security, etc.

However, even this brute-force approach does not completely remove the threats to your privacy and security:  you still have to get cash from somewhere, either an ATM or the bank – so at least those transactions are still logged. Facial recognition software and omniscient surveillance will note your presence even if you don’t use FourSquare or a cellphone with GPS.

And most of us would find this form of existence terribly inconvenient. What is reasonable then to expect from our participation in the modern world which includes the cloud? How much anonymity is rightfully ours? What level of security and privacy should be afforded every citizen without that person having to take extraordinary precautions?

The answers of course are in process. This discussion is part of that – hopefully it will motivate discussion and action that will spur onwards the process of reaching a socially acceptable equilibrium of function and personal protection. The law of unintended consequences is very, very powerful in the cloud. Ask any woman who has been stalked and perhaps injured by an ex-husband that tracked her via cellphone or some of the other techniques discussed above…

An interesting side note:  at virtually every ‘battered woman’s center’ in the US now the very first thing they do is take her cellphone away and physically remove the battery. It’s the only way to turn it off totally. Sad but true.

There is not going to a single, simple solution for all of this. The ‘data collection genie’ is so far out of the bottle that it will be impossible on a practical basis to rewind this, and in many cases one would not want to. Nothing is for free, only alternatively funded. So in order to get the usefulness many of us find by using a search engine, a location-based query response for goods or services, etc. – the “cost” of that service is often borne by targeted advertising. In many cases the user is ok with that.

Perhaps the best solution set will be increased transparency on the use of the data collected. In theory, the fact that the government of Egypt maintains massive datasets on internet users and members of particular social applications is not a problem… but the use that the military police makes of that data can be rather harmful to some of their citizens…

We in the US have already seen efforts made in this direction, with privacy policies being either voluntarily adhered to, or mandated, in many sectors. Just as physical laws of behavior have been socially built and accepted for the common good, so does this need to occur in the cloud.

Rules for parking of cars make sense, with fines for parking in areas that obstruct traffic. Breaking into a bank and stealing money will incur punishment – which is almost universal anywhere in the world with a relative alignment of the degree of the penalty. Today, even blatant internet crime is highly variable in terms of punishment or penalty. With less than 20% of the 196 countries in the world having any unified set of laws for enforcement of criminal activity on the internet, this is a challenging situation.

Today, the truth is that to ensure any reliable degree of anonymity, privacy and security of one’s self in the cloud you must take proactive steps at an individual level. This requires time, awareness, knowledge and energy. Hopefully this situation will improve, with certain levels of implicit expectations coming to the norm.

Comments on SOPA and PIPA

January 23, 2012 · by parasam

The Stop Online Piracy Act (SOPA) and Protect Intellectual Property Act (PIPA) have received much attention recently. As is often the case with large-scale debate on proposed legislation, the facts and underlying issues can be obscured by emotion and shallow sound-bites. The issues are real but the current proposals to solve the problem are reactive in nature and do not fully address the fundamental challenge.

[Disclaimer:  I currently am employed by Technicolor, a major post-production firm that derives substantial income from the motion-picture industry and associated content owners / distributors. These entities, as well as my employer itself, experience tangible losses from piracy and other methods of intellectual property theft. However, the comments that follow are my personal opinions and do not reflect in any way the position of my employer or any other firm with which I do business.]

For those that need a brief introduction to these two bills that are currently in legislative process:  both bills are similar, and – if enacted – would allow enforcement of the following actions to reduce piracy of goods and services offered via the internet, primarily from off-shore companies.

  1. In one way or another, US-based Internet Service Providers (ISPs) would be required to block the links to any foreign-based server entity that had been identified as infringing on copyrighted material.
  2. Payment providers, advertisers and search engines would be required to cease doing business with foreign-based server sites that infringed on copyrighted material.

The intent behind this legislation is to block access to the sites for US-based consumers, and to remove or substantially reduce the economic returns that could be generated from US-based consumers on behalf of the offending web sites.

For further details on the bills, with some fairly objective comments on both the pros and cons of the bills, check this link. [I have no endorsement of this site, just found it to be reasonable and factual when compared with the wording of the bills themselves.]

The issues surrounding “piracy” (aka theft of intellectual or physical property) are complex. The practice of piracy has been with us since inter-cultural commerce began, with the first documented case being the exploits of the Sea Peoples who threatened the Aegean and Mediterranean seas in the 14th century BC.

Capture of Blackbeard

With the historical definition of piracy constrained to theft ‘on the high seas’ – i.e. areas of ocean that are international, or beyond the jurisdiction of any one nation-state – the extension of the term ‘piracy’ to describe theft based within the international ocean of the internet is entirely appropriate.

While the SOPA and PIPA bills are focused on ‘virtual’ property (movies, software, games and other forms of property that can be downloaded from the internet), modern piracy also affects many physical goods, from oil and other raw materials seized by Somali pirates off the east coast of Africa to stolen or counterfeit perfume, clothing and other tangibles offered for sale over the internet. The worst form of piracy today takes the form of human kidnapping on the high seas for ransom. More than 1,100 people were kidnapped by pirates in 2010, with over 300 people currently being held hostage for ransom by pirates at the time of this article (Jan 2012). The larger issue of piracy is of major international concern, and will require proactive and persistent efforts to mitigate this threat.

While the solutions brought forward by these two bills are well-intentioned, they are reactive in nature and fall short of a practical solution. In addition, they suffer from the same heavy-handed methods that often accompany legislative attempts to modify human behavior. Without regard to any of the underlying issues, and taking no sides in terms of this commentary, governmental attempts to legislate alcohol and drug consumption, reproductive behavior and cohabitation lifestyles have all been either outright failures or fraught with difficulty and have produced little or none of the desired results.

Each side in this current debate has exaggerated both the risks and rewards of the proposed legislation. From the content owner’s side the statements of financial losses are overblown and are in fact very difficult to quantify. One of the most erroneous bases for financial computation of losses is the assumption that every pirated transaction would have been money that the studio or other content owner would have received if the content had been legally purchased. This is not supported by fact. Unfortunately many pirated transactions are motivated by cost (either very low or free) – if the user had to pay for the content they simply would choose not to purchase. It is very difficult to assess the amount of pirated transactions, although many attempts are made to quantify this value.

What certainly can be said is that real losses due occur and they are substantial. However, it would better serve both the content owners, and those that desire to assist these rightsholders, to pursue a more conservative and accurate assessment of losses. To achieve a practical solution to the challenge of Intellectual Property (IP) theft, this must be treated as a business use case, and set aside the moral aspects of this issue. The history of humanity is littered with the carcasses of failed attempts to legislate morality. Judgments of behavior do not generate cash, collection of revenue is the only mechanism that factually puts money in the bank.

Any action in commerce has a financial cost. In order to make an informed choice on the efficacy of a proposed action, the cost must be known, as well as the potential profit or loss. If a retail store wants to reduce the assumed losses due to shoplifting, the cost of the losses must be known as well as the cost of additional security measures in order to make a rational decision on what to spend to resolve the problem. If the cost of securing the merchandise is higher than the losses, then it makes no sense to embark on additional measures.

Overstating the amount of losses due to piracy could appear to justify expensive measures to counteract this theft – if implemented the results may in fact only add to the overall financial loss. In addition, costs to implement security are real, while unearned revenue is potential, not actual.

On the side of the detractors to the SOPA and PIPA legislation, the claims of disruption to the fabric of the internet, as well as potential security breaches if link blocking was enabled are also overstated. As an example, China currently practices large scale link blocking, DNS (Domain Name Server) re-routing and other technical practices that are similar in many respects to the proposed technical solutions of the proposed Acts – and none of this has broken the internet – even internally within China.

The real issue here is that these methods don’t work well. The very nature of the internet (a highly redundant, robust and reliable fabric of connectivity) works against attempts to thwart connections from a client to a server. We have seen many recent attempts by governments to restrict internet connectivity to users within China, the Arab states, Libya, etc – and all have essentially failed.

For both sides of this discussion, a more appropriate direction for legislation, funding and focus of energy is to treat this issue for what it is factually:  a criminal activity that requires mitigation from the public sector through police and judicial efforts, and from the private sector through specific and proven security measures. Again, the analogy of current practices in retail merchandising may be useful:  the various technologies of RFI scanners at store exits, barcoded ‘return authorization tags’ and other measures have proven to substantially reduce property and financial loss without unduly penalizing the majority of honest consumers.

Coupled with specific laws and the policy of prosecuting all shoplifters this two-pronged approach (from both public and private sector) has made substantial inroads to merchandise loss in the retail industry.

Content protection is a complex issue and cannot be solved with just one or two simple acts no matter how much that may be desired. In addition, the actual financial threat posed by piracy of movies and other content must be honestly addressed: it is sometimes convenient to point to perceived losses due to piracy rather than other reasons – for instance poor returns due to simply that no one liked the movie… or distribution costs that are higher than ideal, etc.

A part of the overall landscape of content protection is to look at both the demand side as well as the supply side of the equation. Both the SOPA and PIPA proposals only address the supply side – they attempt to reduce access to, or disrupt payment for – the supply of assets. Most consumers make purchase choices based on a cost/benefit model, even if unconsciously so:  therefore at first glance, the attractiveness of downloading a movie for ‘free’ as opposed to paying $5-$25 for the content is high.

However, there are a number of mitigating factors that make the choice more complex:

  • Quality of the product
  • Ease of use (for both getting and playing the content)
  • Ease of re-use or sharing the content
  • Flexibility of devices on which the content may be consumed
  • Potential of consequences for use of pirated material

With careful attention to the above factors (and more), it is possible for legal content to become potentially more attractive than pirated content, at least for a percentage of consumers. It is impossible to prevent piracy from occurring – the most that is reasonable to expect is a reduction to the point where the financial losses are tolerable. This is the same tactic taken with retail merchandise security – a cost/benefit analysis helps determine the appropriate level of security cost in relation to the losses.

In terms of the factors listed above:

  • Legal commercial content is almost always of substantially higher quality than pirated content, raising the attractiveness of the product.
  • For most consumers (i.e. excluding teenage geeks that have endless time and patience!) a properly designed portal or other download experience CAN be much easier to operate than linking to a pirate site, determining which files to download, uncompressing, etc. etc.Unfortunately, many commercial sites are not well designed, and often are as frustrating to operate as some pirate sites. Attention to this issue is very important, as this is a low cost method to retain legal customers.
  • Depending on the rights purchased, and whether the content was streamed or downloaded, the re-use or legal sharing of purchased content (i.e. within the home or on mobile devices owned by the content purchaser) should ideally be straightforward.Again, this is often not the case, and again motivates consumers to potentially consider pirated material as it is often easier to consume on multiple devices and share with others. This is a very big issue and is only beginning to be substantially addressed by such technologies as UltraViolet, Keychest and others.Another issue that often complicates this factor is the enormously complex and inconsistent legal rights to copyrighted material. Music, books, movies, etc. all have highly divergent rules that govern the distribution and sale of the material. The level of complexity and cost of administering these rights, and the resultant inequities in availability make pirated material much more available and attractive than it should be.
  • With the recent explosion of types of devices available to consume digital content (whether books, movies, tv, music, newspapers, etc.) the consumer rightly desires a seamless consumption model across the devices of their choice. This is often not provided legally, or is available only at significant cost. This is yet another area that can be addressed by content owners and distributors to lower the attractiveness of pirated material.
  • The issue of consequences for end-users that may be held accountable for downloading and consumption of pirated material is complex and fraught with potential backlash to content owners that attempt enforcement in this area. Several recent cases within the music industry have shown that the adverse publicity garnered by content owners suing end users has had a high cost and is generally perceived to be counter-productive.The bulk of legal enforcement at this time is concentrated on the providers of pirated material all through the supply chain, as opposed to the final consumer. This is also a more efficient use of resources, as the effort to identify and legally prosecute potentially millions of consumers of pirated material would be impractical compared to degrading the supply chain itself – often operated by a few hundreds of individuals.There have been recent attempts by some governments and ISPs to monitor and identify the connections from an end consumer to a known pirate site and then mete out some level of punishment for this practice. This usually takes the form of multiple warnings to a user followed by some degradation or interruption of their internet service. There are several factors that complicate the enforcement of this type of policy:
    • This action potentially comes up against privacy concerns, and the level and invasiveness of monitoring of a user’s habits and what they download vary greatly by country and culture.
    • Many so-called ‘pirate’ sites offer a mix of both legally obtained material, illegally obtained material, and storage for user generated content. It is usually impossible to precisely determine which of these content types a user has actually downloaded, so the risk is high that a user could be punished for a perfectly innocent behavior.
    • It is too easy for a pirate site to keep one (or several) steps ahead of this kind of enforcement activity with changing names, ip addresses, and other obfuscating tactics.

In summary, it should be understood that piracy of copyrighted material is a real and serious threat to the financial well-being of content producers throughout the world. What is called for to mitigate this threat is a combined approach that is rational, efficient and affordable. Emotional rhetoric and draconian measures will not solve the problem, but only exacerbate tensions and divert resources from the real problem. A parallel approach of improving the rights management, distribution methodology and security measures associated with legal content – aided by consistent application of law and streamlined judicial and police procedure world-wide – is the most effective method for reducing the trafficking of stolen intellectual property.

Education of the consumer will also help. Although, as stated earlier, one cannot legislate morality – and in the ‘privacy’ of the consumer’s internet connection many will take all they can get for ‘free’ – it cannot hurt to repeatedly describe the knock-on effects of large scale piracy on the content creation sector. The bottom line is that the costs of producing high quality entertainment are significant, and without sufficient financial return this cannot be sustained. The music industry is a prime example of this:  more labels and music studios have gone out of business than remain in business today – as measured from 1970 to 2011. While it is true that the lowered bar of cost due to modern technology has allowed many to ‘self-produce’ it is also true that some of the great recording studios that have gone out of business due to decreased demand and funding have cost us – and future generations – the unique sound that was only possible in those physical rooms. These intangible costs can be very high.

One last fact that should be added to the public awareness concerning online piracy:  the majority of these sites today are either run by or funded by organized criminal cartels. For instance, in Mexico the production and sale of counterfeit DVDs is used primarily as a method of laundering drug money, in addition to the profitable nature of the business itself (since no revenues are returned to the studios whose content is being duplicated). The fact that the subscription fees for the online pirate site of choice is very likely funding human trafficking, sexual slavery, drug distribution and other criminal activity on a large scale should not be ignored. Everyone is free to make a choice. The industry, and collective governments, need to provide thoughtful, useful and practical measures to help consumers make the right choice.

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