December 2003 - cypherpunks-legacy

Sun Sells Encryption Software Overseas, Skirting U.S. Policy
by ichudov＠algebra.com 17 Dec '03

17 Dec '03

Tomorrow's Wall Street Journal: http://interactive3.wsj.com/edition/current/articles/SB863997652645676500.h… Sun Sells Encryption Software Overseas, Skirting U.S. Policy By DAVID BANK Staff Reporter of THE WALL STREET JOURNAL MOUNTAIN VIEW, Calif. -- Sun Microsystems Inc. plans to sell advanced data-security software from a Russian supplier to overseas customers, a move that skirts U.S. export regulations and is likely to receive close U.S. government scrutiny. Sun is expected to announce Monday that it will sell encryption software licensed from Elvis+ Co., a company formed by scientists from the former Soviet space program. Sun I actually think that Elvis+ is mostly composed of the former KGB scientists, not space scientists. I may be mistaken though. -- igor has a 10% equity stake in the Russian firm. The Elvis+ products will be shipped to overseas customers from Sun distributors in third countries to keep them from falling under U.S. jurisdiction. Sun's move illustrates how global market pressures are making it increasingly difficult for U.S. officials to control the spread of advanced encryption hardware and software. The technology, which scrambles data to protect it from computer eavesdroppers, is considered vital to the growth of electronic commerce. But export of powerful encryption products is barred under U.S. export-control laws, on grounds that terrorists and others will use it to evade surveillance. Challenge to U.S. Policy The Sun action will cause the Clinton administration to face a difficult decision, said Jim Bidzos, president and chief executive of RSA Data Security Inc., a unit of Cambridge, Mass.-based Security Dynamics Technologies Inc., a major supplier of encryption technology. "The government has to shut this down, or else the competitors of Sun probably have to say, 'We're going to do the same thing,' " he said. Mr. Bidzos, a long-time critic of the export controls, praised Sun's move as "blatant and in-your-face." An administration official said Sunday the White House didn't have enough information to comment. Computer-industry executives, concerned that they could lose a valuable market to foreign competition, have long discussed strategies to exploit loopholes in the export laws. But Sun appears to be the first major company to use foreign software to supply overseas customers. Sun executives said they hadn't discussed the plans with U.S. government officials but had strictly adhered to current laws. "This is not being done to subvert export-control laws but to deliver solutions to customers," said Humphrey Polanen, general manager of Sun's network-security products group. "Never before have organizations outside of the United States had access to such advanced security software." Privacy advocates said Sun's initiative would boost their goal of making high-strength encryption widely available. "We think the benefit for security outweighs the liability for law enforcement," said Jerry Berman, executive director of the Center for Democracy and Technology in Washington, D.C. Critical Distinction Elvis+ is based in Zelenograd, a Moscow suburb that was once known as the "Soviet Silicon Valley." The company's products are based on a security protocol called SKIP that was developed by Sun, but Sun says it provided no technical assistance to the Russian company. The distinction is crucial; the export controls cover any product developed with such assistance from a U.S. company. The product, which will be marketed under the name SunScreen SKIP E, employs various encryption algorithms, or formulas, including so-called three-key triple DES and 128-bit ciphers, which security experts consider to be virtually unbreakable. The algorithms, in wide use within the U.S., are used to scramble digital communications; in general, the longer the bit length of the encryption key, the more difficult the code is to break. Current export controls allow the export of cryptography keys up to 40 bits, which have been cracked by computer hackers in as little as 10 minutes. Companies with special approval from the Commerce Department have recently begun exporting 56-bit encryption software, but customers have been clamoring for much stronger keys. Global Competition The restriction on U.S. exports has opened market opportunities for strong encryption products from foreign competitors, including Germany's Brokat Informationssysteme GmbH and Siemens Nixdorf Informationssysteme AG, a unit of Siemens AG. "Sun's announcement is further evidence that current U.S. policy is forcing companies to look overseas to obtain strong encryption," said Edward Black, president of the Computer and Communications Industry Association, a Washington D.C., trade group that is lobbying for relaxation of the export controls. Last year, RSA Data Security announced plans to fund an effort by Chinese government scientists to develop strong encryption technology, but the effort has stalled, Mr. Bidzos said. RSA now sends legally exportable products to its Japanese subsidiary, RSA Japan, for bundling with Japanese encryption software. "I can't just let this world-wide global electronic-commerce market take off without participating," Mr. Bidzos said. Sun's Mr. Polanen said SunScreen SKIP E+ will work with other products based on the SKIP protocols. A commercial version will be available in August; evaluation copies are available for download from an Elvis+ site on the World Wide Web. The software will be priced at $99 for versions that run on Microsoft Corp.'s Windows 3.1 and Windows 95 operating systems and at $149 for the Windows NT version.

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Jim Bell News
by John Young 17 Dec '03

17 Dec '03

John Painter, the Oregonian reporter of Jim Bell's arrest, said this evening that he's got another story coming out tomorrow that will reveal more of the situation, and that he'll fax a copy (which I'll post unless Alan does). Mr. Painter says: Jim's still in the Tacoma, WA, federal jail. There was a prelim today and a hearing is due Friday. The feds are keeping the case documents sealed. Speculates that someone may be squealing on Jim in a deal. Jim cannot receive calls but can call out collect. A U.S. Federal Defender has been assigned to represent Jim: Peter Avenia, tel: 253-593-6710. Mr. Avenia did not return a call. The U.S. District Court Judge is J. Kelly Arnold. Court Clerk is Kelly Miller, tel: 253-593-6313. The Oregonian's telephone: 1-800-452-1420. A man at Jim's home politely said he did not want to talk about it. Tel: 360-696-3911.

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Re: Nature of Anarchy/ Anarchy of Nature
by Blanc 17 Dec '03

17 Dec '03

Steve Schear wrote: >Even better, "The Road to Surfdom," F.A. Hayek, totally debunks the basis >of a planned economy and how the loss of property ownership and economic >freedom leads directly and inevitably to totalitarianism. ............................................................ Or my favorite of all time: "Human Action" by Ludwig von Mises. It's a large book - it could keep a collectivist New Age philosopher busy for hours. But even just reading the first few chapters would be sufficient to provide some usefully deep ideas to explain fundamental things about economic truths, of the kind which many cpunks are already in agreement with. .. Blanc .. Blanc

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Re: Mail bombs from "helpful" Cypherpunks
by Bill Stewart 17 Dec '03

17 Dec '03

At 07:26 PM 5/18/97 -0800, Tim May wrote: >As I explain in my message to Steve Schear, I have no way of >removing such "mail bombs" with my Eudora/POP system until they >have been downloaded to my machine (I don't have a shell account anymore). Eudora does have a "Only download messages less than ___K" option that can reduce this problem; I don't know if there's also a way to delete the message from Eudora without downloading it. Netscape Mail has similar options. The old Netcom Netcruiser mail client software let you download just the headers and then pick what messages to read ; I don't know if the new NetComplete stuff does that or not. Netcruiser was ugly and somewhat broken, but occasionally did useful things. # Thanks; Bill # Bill Stewart, +1-415-442-2215 stewarts(a)ix.netcom.com # You can get PGP outside the US at ftp.ox.ac.uk/pub/crypto/pgp # (If this is a mailing list, please Cc: me on replies. Thanks.)

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Re: Jim Bell goes to Jail!
by Lucky Green 17 Dec '03

17 Dec '03

At 09:12 PM 5/18/97 -0700, Alan Olsen wrote: >It is interesting that they have kept the warrent sealed. This, more than >anything makes me question the legitamacy of the whole affair. Sounds like >the IRS is planning a preemptive strike on the Common Law Courts and the >people behind them. There are two reasons I can think of immediately why the feds would keep the warrant sealed. The first is that they don't want to reveal just how little evidence they have. The second reason is that the warrant might give some clue as to future actions/other suspects. Remember that the IRS agent found the AP essay by means of an Internet search engine. That almost certainly means he is following the discussions about Jim Bell on the Net. Such as the discussion on Cypherpunks. It must be truly frightening to this person to read some of the threads on this list. Nerve gas, C4, race-specific biological weapons, bypassing airport security systems, not to mention money laundering and tax evasion, what hasn't been discussed here? The feds may not be aware that the discussions on this list are usually of a theoretical nature. Perhaps they decided to go after the "co-conspirators". Like the anarchists in California with their AR-15's who have so many mags that they can't even remember where they all are. :-) The fact that Jim is held _without bail_ would indicate to me that there is more going on than might meet the eye. -- Lucky Green <mailto:shamrock@netcom.com> PGP encrypted mail preferred "I do believe that where there is a choice only between cowardice and violence, I would advise violence." Mahatma Gandhi

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Re: Jim Bell goes to Jail!
by Lucky Green 17 Dec '03

17 Dec '03

At 10:28 PM 5/18/97 -0700, Alan Olsen wrote: >(There are also a number >of >psychological studies that show that people will do all sorts of horrific >things to their fellow man when someone in authority tells them to. If they >are led to believe that they are "bad" in some way, many will enjoy it.) Right. I read a book on that. I think it was called "The Millgram Experiment". Normal people would administer (fake, but they didn't know it) electroshocks to a subject even after the subject had stopped moving and could have been assumed to be unconscious or even dead. An excellent demonstration of the power of authority. And the gullibility of the average person. -- Lucky Green <mailto:shamrock@netcom.com> PGP encrypted mail preferred "I do believe that where there is a choice only between cowardice and violence, I would advise violence." Mahatma Gandhi

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Re: Just Say "No" to Congress
by Blanc 17 Dec '03

17 Dec '03

Vladimir Z. Nuri, blowing smoke out his ears, wrote: >the question is not "how do we hold the government accountable for >our cash" but, "*when* will we"? [and] >anyone who disbelieves in the authority of the US government >yet sends them their tax money is a hypocrite. .......................................................................... The first sentence implies that Nurilogical proposes that government should be held accountable by its citizens, including himself ("*when* will we"). On the other hand, he obviously believes in the authority of the US government, as he has always supported it in arguments on the list, especially in counter arguments against TCM. So, it appears that VZN is not *ready* to hold the government accountable, preferring not to protest when his own money is withheld for him, but hypocritically wondering when everyone will make this will happen. However, he's correct: similar to the argument I made about there being no difference between those who kill the good along with the bad & the ugly (that's from the title of a Clint Eastwood movie, for those who aren't familiar with that line), all those who argue for morality and libertarian ideals, but still "give in" when it comes to tax time, are all losers. <g> But this shameless capitulation is intellectualized away with the explanation that everyone is outnumbered by the men holding the legalized guns, who are in turn supported by all those true believers in The American Socialist Way of Life; that way being: the reception of benefits without any need to be consciously aware of, to identify, their actual source or the actual method of their obtainment. .. Blanc .. Blanc

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The Recent Trend in "Collective Contracts"
by Tim May 17 Dec '03

17 Dec '03

I'm not a lawyer, but I am interested in the various ramifications--and the constitutionality--of recent "sweeping contracts" between vendors, lawmakers, consumers, etc. Two recent example: 1. The "tobacco agreement." Supposedly a deal involving the transfer of $360 billion from some number of tobacco companies in exchange for dropping of liability suits, immunity from future claims, voluntary restrictions (!) on advertising, etc. (And the "etc." is especially complicated in this huge case.) 2. The "voluntary ratings" agreement being announced today by Al Gore and some of the television networks. (Earlier "voluntary agreements" were implemented, but, according to supporters of censorship, "failed." Hence the new push for newer voluntary restrictions.) The issue, it seems to me, is that ordinary concepts of illegality and civil liability are being swept aside in favor of these huge "deals" to reduce liability in exchange for various actions. Well, who is bound by these deals? If "Tim's Tobacco Company" starts up next year, after this deal is "signed," is his company bound by this deal? If Tim the Smoker develops lung cancer, is he blocked from suing? (Caveat: My personal and libertarian view is that lawsuits against cigarette companies are wrong and should not be supported in a free society. And lawsuits by various states to "recover health care costs" are especially bogus. By this logic, McDonald's could be sued by California because California paid out more health care benefits to meat-eaters than it did to vegetarians. Utterly bogus.) Anyway, the free speech aspects of these deals are also worrisome. The "voluntary restrictions" on advertising, for example. Would the aforementioned "Tim's Tobacco Company," not a party to this Grand Deal, be somehow bound by a deal wherein it could not sponsor sporting events? Or advertise? Or even speak out against the deal? Imagine the implications for cryptography, using the logic of these kinds of deals: "The voluntary agreement reached between the cryptography industry and Washington calls for companies to voluntarily limit key sizes to 64 bits unless a key recovery scheme is used. And Washington agrees to drop RICO charges against PGP Inc. and RSA Data Security Inc. in return. Book publishers, who became part of the negotiations last summer, have agreed to limit the information published in books in exchange for relaxations on the export requirements for computer media. " Far fetched? Perhaps. But note the similarities to these other "collective contracts." And in many ways the Telephony Act, aka CALEA (Communications Act for Law Enforcement Access), was just such a deal. When the various telecom companies essentially said "we can live with this bill," they were tacitly committing themselves to just such a collective contract. (What happens when a new telecom company starts up and finds that it has been "bound" to provide wiretap points into its switches?) It seems to me that these contracts are going to collapse completely when the Supreme Court points out that they bind nonparticipants to terms which limit their constitutionally protected rights. (Quibblers can claim that "corporations have no constitutional rights," but the publishing companies which publish newspapers would take exception to this. And so on. There are many cases where corporations are enjoying the fruits of the Constitution. As it should be.) These huge mega-deals are a crummy way to interpret the U.S. Constitution. I fear the "Grand Compromise" deal that the telecom and crypto companies are being drawn into. --Tim May There's something wrong when I'm a felon under an increasing number of laws. Only one response to the key grabbers is warranted: "Death to Tyrants!" ---------:---------:---------:---------:---------:---------:---------:---- Timothy C. May | Crypto Anarchy: encryption, digital money, tcmay(a)got.net 408-728-0152 | anonymous networks, digital pseudonyms, zero W.A.S.T.E.: Corralitos, CA | knowledge, reputations, information markets, Higher Power: 2^1398269 | black markets, collapse of governments. "National borders aren't even speed bumps on the information superhighway."

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Electronic Commerce Book
by Ravi Kalakota 17 Dec '03

17 Dec '03

Announcing a new book on Electronic Commerce -------------------------------------------- Electronic Commerce: A Manager's Guide by Ravi Kalakota and Andrew Whinston -------------------------------------------- ISBN: 0-201-88067-9, softcover, 440 pages, 1997 PUBLISHER: Addison-Wesley (1-800-822-6339) -------------------------------------------- This book is a manifesto for a new set of managers who seek to reap the elusive rewards of the online marketspace. This book offers a multitude of real-world scenarios and lessons for building value and creating the competitive edge. The book answers strategic questions such as: - What business models are competitors using in the various industry segments of e-commerce? - What are the key management questions that need to be addressed in order to create an effective buisness online? - How should companies be organized using Intranets to manage the external commerce? If you lead a small startup or work in a Fortune 1000 firm, whether your company has an established online presence, or is just starting out, The Manager's Guidemay be the most important book you read this year. Table of Contents: ------------------ 1. Introduction to Electronic Commerce Defining Electronic Commerce Brief History of Electronic Commerce Forces Fueling Electronic Commerce Electronic Forces Marketing and Customer Interaction Forces Technology and Digital Convergence Implications of Various Forces Electronic Commerce Industry Framework The Information Superhighway Multimedia Content and Network Publishing Messaging and Information Distribution Common Business Services Infrastructure Other Key Support Layers Putting the Framework into Action: Microsoft Corporation Types of Electronic Commerce Inter-organizational Electronic Commerce Intra-organizational Electronic Commerce Consumer-to-Business Electronic Commerce Intermediaries and Electronic Commerce Key Questions for Management Competitive Pressure External Threat Incorporating Changes Designing New Organizational Structures Managerial Options and Priorities Summary 2. The Internet and the Access Provider Industry Internet Service Providers Key Market Drivers for the Internet Who Is Making Money on the Internet Clarifying Internet Terminology Companies Providing Internet Access Internet Topology Differentiating Market Segments: Commercial versus Consumer Internet versus Online Services Open versus Closed Architecture Controlled Content versus Uncontrolled Content Metered Pricing versus Flat Pricing Innovation versus Control Predicting the Future of the IAP Market Convergence Leading to Competition Service and Capacity Management Customer Service, Loyalty, and Retention Marketing Customer Education Changing Technology behind Internet Access Changing Technology behind the Access Provider Summary 3. World Wide Web--Applications Brief History of the Web What Exactly Is the Web? Why Is the Web Such a Hit? The Web and Ease of Use The Web and Ease of Publishing The Web as a New Distribution Channel The Web and Network-Centric Computing The Web and New Intra-Business Applications The Web and Electronic Commerce The Web and Intra-Business Commerce Other Intranet Applications Intranet Advantages and Disadvantages Management of Intranets Understanding the Intranet Architecture Summary 4. World Wide Web--Concepts and Technology Key Concepts behind the Web Overview of the Web's Technical Architecture Interactive Web Applications Interactive Applications Interactivity and Information Integration Web Extensions for Interactive Applications Web and Database Integration Web Database Products HTML Forms and CGI Programs Web Software Developmental Tools Need for Better Programming Languages New Programming Language: Java Technically Speaking: What Exactly Is Java? Role of Java in Electronic Commerce How Does Java Work? Business Reasons for Using Java Multimedia Web Extensions Virtual Reality Modeling Language (VRML) RealAudio Internet and Web-based Telephony Directories and Search Engines Lycos Summary 5. Firewalls and Transaction Security Firewalls and Network Security Types of Firewalls Firewall Security Policies Emerging Firewall Management Issues Transaction Security Types of Online Transactions Requirements for Transaction Security Encryption and Transaction Security Secret-Key Encryption Public-Key Encryption Implementation and Management Issues World Wide Web and Security Netscape's Secure Sockets Layer Security and Online Web-based Banking Summary 6. Electronic Payment Systems Overview of the Electronic Payment Technology The Online Shopping Experience Limitations of Traditional Payment Instruments Electronic or Digital Cash Properties of Electronic Cash Digital Cash in Action Electronic Checks Benefits of Electronic Checks Electronic Checks in Action NetCheck: A Prototype Electronic Check System Electronic Check Project Online Credit Card-Based Systems Types of Credit Card Payments Secure Electronic Transactions (SET) Other Emerging Financial Instruments Debit Cards at the Point of Sale (POS) Debit Cards and Electronic Benefits Transfer Smart Cards Consumer, Legal, and Business Issues Summary 7. Electronic Commerce and Banking Changing Dynamics in the Banking Industry Changing Consumer Needs Cost Reduction Demographic Trends Regulatory Reform Technology-based Financial Services Products Home Banking History Why Will It Be Different This Time? Home Banking Implementation Approaches Home Banking Using Bank's Proprietary Software Banking via the PC Using Dial-Up Software Banking via Online Services Banking via the Web: Security First Network Bank Open versus Closed Models Management Issues in Online Banking Differentiating Products and Services Managing Financial Supply Chains Pricing Issues in Online Banking Marketing Issues: Attracting Customers Marketing Issues: Keeping Customers Back-Office Support for Online Banking Integrating Telephone Call Centers with the Web Summary 8. Electronic Commerce and Retailing Changing Retail Industry Dynamics Overbuilding and Excess Capacity Demographic Changes Consumer Behavior Technology Improvements in Electronic Retailing Online Retailing Success Stories Online Retailing: Peapod's Experience CUC International Wine on the Web: Virtual Vineyards Web-based Travel Agencies Mercantile Models from the Consumer's Perspective Distinct Phases of a Consumer Mercantile Model Prepurchase Preparation Purchase Consummation Postpurchase Interaction Management Challenges in Online Retailing Come Up with a Retailing Strategy Manage Channel Conflict Learn to Price Online Products/Services Deliver a Satisfying Shopping Experience Design the Layout of an Online Store Manage Brands Create the Right Incentives Summary 9. Electronic Commerce and Online Publishing Why Online Publishing? Online Publishing Strategies Online Publishing Approaches Full-Text and Bibliographic Databases Personalized and Customized News Business Information and News Delivery Edutainment = Education + Entertainment Online Publishing Success Stories PointCasting Time Warner's Pathfinder Disney Online Integrating TV and Data Streams: Intercasting Advertising and Online Publishing An Online Publishing Missing Piece: Measurement Digital Copyrights and Electronic Publishing Online Copyright Protection Methods Summary 10. Intranets and Supply-Chain Management Supply-Chain Management Fundamentals Pull versus Push Supply-Chain Models Elements of Supply-Chain Management Integrating Functions in a Supply Chain Managing Retail Supply Chains The Order Management Cycle (OMC) Supply-Chain Application Software Software for Supply-Chain Management Recent Trends in Application Software What Is the Business Market? Understanding the Application Software Architecture Future of Supply-Chain Software Intranets and Network-Centric Computing Intranets and Application Software Impact of the Web on Application Software Elaborating on the Intranet Architecture What Remains to Be Done? Summary 11. Intranets and Customer Asset Management Why Customer Asset Management? Challenges in Implementing Customer Asset Management Customer Asset Management and Supply Chains Online Sales Force Automation What Is Sales Force Automation? Elements of Online Sales Automation Intranets and Sales Automation What Are the Management Issues? Online Customer Service and Support The Web and Customer Service The Role of Technology in Customer Service What Are the Business Requirements? The Enabling Intranet Technology Technology and Marketing Strategy Marketing Decision Support Systems Marketing Decision Support Applications Summary 12. Intranets and Manufacturing Defining the Terminology Integrated Logistics Agile Manufacturing Emerging Business Requirements Customer-Driven Manufacturing Rapid Internal Response to Demand Changes Efficiently Managing Supply Chain Complexity Manufacturing Information Systems Discrete versus Process Manufacturing Market Types of Manufacturing Information Systems Intranet-Based Manufacturing Customer-Driven Manufacturing Real-Time Decision Support Intelligent Process Management Logistics Management Problems with Traditional Logistics Management Case Study: Microsoft Corp Integrated Logistics Objective of Modern Logistics Function Forecasting Purchasing Distribution Management Electronic Data Interchange (EDI) Benefits of EDI EDI in Action Why Has EDI Adoption Lagged? Summary 13. Intranets and Corporate Finance Intranets and Finance What Exactly Are Financial Systems? What Do Financial Systems Do? Financial Intranets Understanding the Different Software Modules Transaction Accounting and Electronic Commerce Financial Analysis and Management Accounting Inventory Accounting Payment Management Treasury and Cash Management Human Resources Management Systems HRMS Functions Size/Structure of Financials Software Market Product Strategy Financial Data Warehouses How Are Firms Using the Web for OLAP? Desirable Software Requirements Summary

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Domain names and "The Network $olution", from The Netly News
by Declan McCullagh 17 Dec '03

17 Dec '03

*********** http://pathfinder.com/netly/opinion/0,1042,1155,00.html The Netly News Network (http://netlynews.com) July 10, 1997 The Network $olution by Declan McCullagh (declan(a)well.com) It could have been the perfect way to liberate the Net from the much-reviled monopoly of Network Solutions Inc., the company that handles almost all U.S. domain name registrations. Backed by well-regarded groups such as the Internet Society, the seven-page proposal promised to reduce prices, increase choices -- and best of all, really put the screws to everyone's least favorite domain name registrar. But a month before the curtain is set to lift on a host of new domains to supplement .com and .org, the ambitious plan suddenly seems as doomed as the recently extirpated Communications Decency Act. Not only did just one government, Albania, sign the "Memorandum of Understanding" (MoU), but the U.S. actively opposed it. So did Network Solutions, after they realized with gut-wrenching dismay the consequences of losing their lucrative monopoly on .com. Yesterday another group of MoU critics met in Washington to form the Open Internet Congress, which hopes to wrest control of Net governance from "hobbyists" and "volunteers" and haul it into the mainstream. "I don't want a bunch of volunteers playing around and trying to run the show. I don't want petty battles over who's in charge and who's keeping the lights on," says Andrew Sernovitz, the president of the Association for Interactive Media, which organized the summit. Sernovitz envisions a ruthlessly commercialized cyberspace that's safe for companies like IBM, Intel, NBC and Time Warner (Netly's corporate big brother) that cough up $9,000 a year to be governing members of AIM. The talk yesterday was of revolution. Sernovitz spoke about holding an Internet "Constitutional Convention" this fall. He passed out supportive columns quoting from "Common Sense" by Thomas Paine. I even heard folks call the MoU the move that will spark the online equivalent of the Boston Tea Party. (Led, presumably, by firms like Time Warner? Since that media giant also owns CNN, you can be sure the revolution will indeed be televised.) [...]

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