December 2003 - cypherpunks-legacy

Trade secrets / moderator liability
by Greg Broiles 17 Dec '03

17 Dec '03

As reported by Michael Froomkin's correspondent, the Uniform Trade Secrets Act <http://www.execpc.com/~mhallign/usta.html> (enacted with local modifications in, as I understand it, 40 states, among them California) says that third parties may be held liable for misappropriation of a trade secret where the third party knows or has reason to know that they are doing so. For example, California Civil Code section 3426.3 says: 3426.3.(a) A complainant may recover damages for the actual loss caused by misappropriation. A complainant also may recover for the unjust enrichment caused by misappropriation that is not taken into account in computing damages for actual loss. (b) If neither damages nor unjust enrichment caused by misappropriation are provable, the court may order payment of a reasonable royalty for no longer than the period of time the use could have been prohibited. (c) If willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subdivision (a) or (b). And misappropriation is defined in California Civil Code section 3426(1)(b) as: (1) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or (2) Disclosure or use of a trade secret of another without express or implied consent by a person who: (A) Used improper means to acquire knowledge of the trade secret; or (B) At the time of disclosure or use, knew or had reason to know that his or her knowledge of the trade secret was: (i) Derived from or through a person who had utilized improper means to acquire it; (ii) Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or (iii) Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or (C) Before a material change of his or her position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake. My other concern about moderator liability for approving/distributing trade secret material is in the criminal context. For example, the Economic Espionage Act of 1996 (HR 3723, now found at 18 USC 1831 et seq, <ftp://ftp.loc.gov/pub/thomas/c104/h3723.enr.txt> ) says that some trade secret violations are now a federal crime; and California Penal Code section 499c(b) also criminalizes some wrongful acts relating to trade secrets. Specifically, I think it's feasible to find aiding & abetting (and, more remotely, conspiracy) liability where a moderator knowingly and substantially contributes to public disclosure of a trade secret. It seems to me that there's a murky middle period, where the trade secret is known to some wrong people, but is still substantially a secret, where third party liability is present. But once a wide distribution of the secret is made, I don't think it's meaningful to talk about further distribution as misappropriation. If there's no common-sense "it's no longer a secret" safety valve, trade secret would provide time-unlimited protection to publically available information, which I think would be preempted by (or frustrate the purpose of) Congress' limited grants of protection to information via patent and copyright. But this is only my conjecture about how things ought to work, given the responsibilities created for third parties by statutes like the UTSA; I don't know of cases on this issue and given my work/bar review schedule, won't have time to find them any time soon. Also, as I mentioned in my previous message, I think there are good arguments that neither of the prominent trade secret disclosures I'm familiar with that have occurred (in part) via the list would create moderator liability. I'm mentioning moderator liability (and writing what's turning into a long message about it) not because I think it's an especially big danger but because I think it's an interesting public policy issue. I don't have the teeniest clue how other nations' laws might treat third parties who assist or enable the wide dissemination of trade secret materials. Perhaps other list members can offer a local perspective. -- Greg Broiles gbroiles(a)c2.net 510-986-8779 voice 510-986-8777 fax

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Re: [IDEA] Cypherpunks Super Computer (was Re: The Upcoming DES Challenge)
by Hal Finney 17 Dec '03

17 Dec '03

[Sorry if this is a re-post...] From: "Frank O'Dwyer" <fod(a)brd.ie> > However, what if there was a safe scripting language with bignum > arithmetic and other cryptographic primitives, and what if > lots of people ran a service that would accept scripts in > that language and respond with the answer? Say, a Safe-TCL > interface to Peter Gutmann's cryptlib, running at idle > priority? Sort of like a distributed batch queue, and also > a bit like the way jobs are (were?) submitted to Crays. The > Cypherpunks Super Computer. It need not be significantly slower > than raw code if the primitives are high level enough. A few years ago I coded up a TCL interface to Pr0duct Cypher's PGPTOOLS library. It did bignum arithmetic from the command line, and also let you use MD5 and IDEA on files and buffers. Unfortunately I had a major disk crash and was never able to recover my last version, and I never got back to it. Safe-TCL has never gotten the scrutiny of Java, but IMO if it ever does it will be found to suffer from its own flaws. At this point I think Java is farther along the path to safety. I do like the idea of a widely available, installed, crypto-capable scripting language. This would be an ideal basis for trying out new crypto protocols and algorithms, without having to write a whole program from scratch. We have been talking about setting up DC nets for years, for example. The concept is so simple as to be almost trivial. But the infrastructure is the hard part - dealing with the I/O issues, the multiple architectures, all the configuration issues. I suspect that Java, when it gets its security API, may be a good candidate for this kind of system. It's already got high level socket I/O, and with a bignum package and some basic crypto primitives like one way functions, you could do a lot with it. You still have the problem of trading off safety for utility, though. Hal

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No Subject
by Bovine Remailer 17 Dec '03

17 Dec '03

> >The Path To Revolution > >You Don't Have To Be There To Experience It > >By Linton Weeks >Washington Post Staff Writer >Thursday, January 9 1997; Page C5 >The Washington Post > >The computer is a revolutionary tool. > >It really is. Revolutionaries, counterrevolutionaries, >extremist groups, radical wings, separatist movements, >cults, and their critics and sympathizers are aswarm on >the Net. Never before have so many people had direct access >to information from every angle. It's like a teeming >hive of Gutenbergs. > >For instance, the Tupac Amaru Revolutionary Movement, >the Peruvian guerrillas who took hostages in the Japanese >embassy in Lima just before Christmas, has a Web presence. Its >"Solidarity Page," with a link to the official Spanish-language >Tupac Amaru site in Europe, is nursed by a Toronto-based group >called Arm the Spirit. > >The solidarity page is touted on a more elaborate site >sponsored by the U.S. Committee to Support the Revolution in >Peru. Based in Berkeley, this committee sings the song of the >Communist Party of Peru, also known as Shining Path. > >"Welcome to a real revolution in cyberspace!" reads the >Shining Path page. "We expose the lies about the >revolution put forward by the U.S.-backed Fujimori regime and >its apologists, while opposing U.S. and other foreign >intervention. We organize against the repression and >terror directed at the revolution and the Peruvian people." > >Sinn Fein, the radical political wing of the Irish Republican >Army, the armed and rebellious Sri Lankan Liberation Tigers >of Tamil Eelam and a multitude of U.S.-based "Aryan" >revolutionaries also have carefully designed Web sites. (Such >sites are so devoid of humor that it seems likely these people >really are who they say they are.) > >These are prime spots for unfiltered propaganda. Here in the >home of the free and the frenetic, the Net is protected by >the First Amendment and the wholesale distribution of >political information -- the good, the bad, the ugly -- is as >old as Thanksgiving. Thomas Paine would have had an amazing home page. > >The Shining Path pages are elaborate. Various links highlight >"the crimes of the U.S.-backed Fujimori regime," list the >political prisoners in Peru, reprint the press releases of Shining >Path and Tupac Amaru and offer a gallery of incendiary souvenirs >you can buy -- leaflets, buttons, T-shirts and cassettes of >revolutionary music. > >The site also gives users a way to "hook up with, support >and/or join us." But it warns those interested not to use >e-mail, because U.S. government officials might be monitoring >it. "We encourage you to contact us by postal mail, phone or fax." > >"Terrorist fund-raising is illegal in this country," said one >U.S. State Department staffer who was reluctant to talk about >the government's monitoring of any Web pages. Speaking only on >background, the staffer said that extremist Web sites are mostly >posted by U.S. citizens and are viewed as domestic material, >which is under the jurisdiction of the FBI and the Justice >Department, both of which have Web sites. > >"There is genuine international concern that this information >is freely available -- and that it's legal," the staffer said. > >John Russell of the Justice Department said, "There are First >Amendment considerations and there are legitimate law enforcement >concerns." The Justice Department, he said, would like >"to find a legal and acceptable procedure" to discover who >is posting the information. He said several law enforcement >agencies, including the FBI, ATF and DEA, are planning a joint >meeting soon to discuss the proliferation of such rabble-rousing pages. > >The Internet brings the far-flung complexities and dangers of the >world a little closer to home. The bright side is that most >people savvy enough to use the Internet may also be sophisticated >enough to sort out the truth in the information supplied by >various groups such as Tupac Amaru, Sinn Fein and the Department of Justice. > >GETTING THERE: >Tupac Amaru at http://burn.ucsd.edu/~ats/mrta.htm >Shining Path at http://www.calyx.com/~peruweb/csrp.htm >Sinn Fein at http://www.irlnet.com/sinnfein >Liberation Tigers of Tamil Eelam at http://www.eelam.com >State Department at http://www.state.gov >FBI at http://www.fbi.gov >Department of Justice at http://www.usdoj.gov. > >(Source: The Washington Post, http://www.washingtonpost.com) > >---- > >

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Key Escrow Good, GAK Bad
by Ken Kirksey 17 Dec '03

17 Dec '03

> To me, Key Recovery cryptography is like using a condom with a >hole in it. No thanks. I agree in principle, and I doubt I would ever use a key recovery system if I had a choice. But, speaking as a network manager, I know that private key recovery (not GAK) can be an enhancement to security. I'll give an example. About a year ago, my boss wanted to protect his file of annual financial projections for the company from prying eyes on our Macintosh network. I installed CurveEncrypt on his machine, showed him how to use it, and gave him the standard lecture on choosing a good passphrase. I stressed that he needed to chose a passphrase easy to remember, because if he forgot it, there was no way to get his file back. Well, he forgot his passphrase. He spent an hour trying every combination he could think of, interjecting a curse here and there for color. He is now totally off using encryption to protect sensitive information. He refuses to use it, and he discourages anyone in the office from using it. I know that his position is unfair, but he _is_ the boss, so he makes the rules. And he is a typical computer user. If your average joe forgets his passphrase and loses two days worth of work, he's not likely to encrypt his work again. (Or he's likely to write down his passphrase in the future). If we were using a Key Escrow system, this situation could have been avoided. Yes, using a key escrow system is less secure that using a non-key escrow system, but I'd argue that using a strong key escrow system is better than using no encryption at all in situations like this. Our network is less secure that it could be because of one user's bad experience. Ken

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Thanks.
by DataETRsch＠aol.com 17 Dec '03

17 Dec '03

Hi, Thanks for clearing up that file size query for me. You are right about that 258 (it's actually 256) header attribute. In that header is where the IMDMP special security option settings are stored (if they are indeed enabled). But the options are rarely ever used by most developers. For more information, download UDCM V2.0 from: http://members.aol.com/DataETRsch/udcm.html and view the help documentation. Also, the 256 byte header itself is encrypted with a 128-bit encryption code. Thanks again! :-) Jeremy... President DataET Research Data Engineering Technologies

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Install UDCM properly before using it...
by DataETRsch＠aol.com 17 Dec '03

17 Dec '03

Hi again, The shareware version of UDCM *must* be installed before use. Run "install.exe" after decompression of the archive. JUST INCASE YOU DON'T KNOW WHAT THE HELL I AM TALKING ABOUT: Greetings! I am Jeremy K. Yu-Ramos, president of DataET Research, Data Engineering Technologies. I am sending you this message to let you know that DataET Research has recently initiated the distribution of UDCM, Universal Data Cryptography Module. UDCM implements a revolutionarily new, extremely advanced and sophisticated, digital data encryption algorithm named IMDMP, Integrated Mathematical Data Manipulation and Positioning. Extensive research shows that IMDMP is more advanced than DES, RSA, IDEA, and PGP. UDCM (the IMDMP algorithm)... o Is a royalty-free Windows DLL module featuring advanced cryptography. o Contains more than 140 procedures and functions. o Is a very cost-effective size of only 57 kilobytes. o Implements the IMDMP encryption algorithm. o Is more advanced than all of the industry standard encryption algorithms. o Allows encryption keys as large as 256 bytes (2048 bits). o Includes 18 sub-algorithms. o Processes all forms of binary and ASCII files. o Allows multiple encryption layer levels. o Has absolutely no back-doors or magical keys. o Does not store encryption keys in files. o Processes files as large as 2,147,483,390 bytes. o Has a 100% data preservation rating. o Includes Y2K compliant time and date locking features. o Has NCSC compliant data cleaning and wiping capabilities. o Includes file specific unique encryption features. o Includes file authentication guard features. o Includes unique encryption signaturing features. o Includes data importance and sensitivity stamping features. UDCM can be accessed through programs developed with popular application and database programming languages and environments such as: C, C++, Visual Basic, PowerBuilder, Delphi, OOP Pascal, Turbo Pascal, SmallTalk, dBase, Paradox, Access, Sybase, Oracle, etc. DataET Research has released a shareware version of UDCM named UDCM V2.0. To download UDCM V2.0 for free, please go to: http://members.aol.com/dataetrsch/udcm.html. I hope you will consider applying UDCM in the software you develop. Thank-you very much for your time. Jeremy... President DataET Research Data Engineering Technologies

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Re: Key Escrow Good, GAK Bad
by Douglas Barnes 17 Dec '03

17 Dec '03

This whole line of reasoning is exactly what the government is preying on -- and it's working with a lot of people. However, it's a red herring. By and large, the government doesn't care about file-level encryption, the sort where the Key Escrow systems you're outlining would be useful. Furthermore, this kind of encryption can be done pretty much in isolation -- it's not a communication medium, so it's less susceptible to attacks on standardization. What the government is mostly concerned with is encryption that's used for communicating, where there is no similar feeling on the part of individuals or industry that something like key escrow is needed. It is a classic bait-and-switch maneuver. Furthermore, if people really wanted Key Escrow, the government wouldn't have to be putting the thumbscrews to software companies to get them to adopt it -- the market would perform this function quite nicely. FWIW, Doug At 04:31 PM 1/9/97 -0500, you wrote: >> To me, Key Recovery cryptography is like using a condom with a >>hole in it. No thanks. > >I agree in principle, and I doubt I would ever use a key recovery system >if I had a choice. But, speaking as a network manager, I know that >private key recovery (not GAK) can be an enhancement to security. > >I'll give an example. About a year ago, my boss wanted to protect his >file of annual financial projections for the company from prying eyes on >our Macintosh network. I installed CurveEncrypt on his machine, showed >him how to use it, and gave him the standard lecture on choosing a good >passphrase. I stressed that he needed to chose a passphrase easy to >remember, because if he forgot it, there was no way to get his file back. > >Well, he forgot his passphrase. He spent an hour trying every >combination he could think of, interjecting a curse here and there for >color. He is now totally off using encryption to protect sensitive >information. He refuses to use it, and he discourages anyone in the >office from using it. I know that his position is unfair, but he _is_ >the boss, so he makes the rules. > >And he is a typical computer user. If your average joe forgets his >passphrase and loses two days worth of work, he's not likely to encrypt >his work again. (Or he's likely to write down his passphrase in the >future). If we were using a Key Escrow system, this situation could have >been avoided. Yes, using a key escrow system is less secure that using a >non-key escrow system, but I'd argue that using a strong key escrow >system is better than using no encryption at all in situations like this. > Our network is less secure that it could be because of one user's bad >experience. > >Ken >

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Problems with UDCM V2.0?
by DataETRsch＠aol.com 17 Dec '03

17 Dec '03

Hi, If you are even having the slightest problem with UDCM, do not hesitate to send us a message at: DataETRsch(a)aol.com. Remember that the *shareware* version of UDCM MUST BE INSTALLED BEFORE USE. Run "install.exe" after decompression. JUST INCASE YOU DON'T KNOW WHAT THE HELL I AM TALKING ABOUT: Greetings! I am Jeremy K. Yu-Ramos, president of DataET Research, Data Engineering Technologies. I am sending you this message to let you know that DataET Research has recently initiated the distribution of UDCM, Universal Data Cryptography Module. UDCM implements a revolutionarily new, extremely advanced and sophisticated, digital data encryption algorithm named IMDMP, Integrated Mathematical Data Manipulation and Positioning. Extensive research shows that IMDMP is more advanced than DES, RSA, IDEA, and PGP. UDCM (the IMDMP algorithm)... o Is a royalty-free Windows DLL module featuring advanced cryptography. o Contains more than 140 procedures and functions. o Is a very cost-effective size of only 57 kilobytes. o Implements the IMDMP encryption algorithm. o Is more advanced than all of the industry standard encryption algorithms. o Allows encryption keys as large as 256 bytes (2048 bits). o Includes 18 sub-algorithms. o Processes all forms of binary and ASCII files. o Allows multiple encryption layer levels. o Has absolutely no back-doors or magical keys. o Does not store encryption keys in files. o Processes files as large as 2,147,483,390 bytes. o Has a 100% data preservation rating. o Includes Y2K compliant time and date locking features. o Has NCSC compliant data cleaning and wiping capabilities. o Includes file specific unique encryption features. o Includes file authentication guard features. o Includes unique encryption signaturing features. o Includes data importance and sensitivity stamping features. UDCM can be accessed through programs developed with popular application and database programming languages and environments such as: C, C++, Visual Basic, PowerBuilder, Delphi, OOP Pascal, Turbo Pascal, SmallTalk, dBase, Paradox, Access, Sybase, Oracle, etc. DataET Research has released a shareware version of UDCM named UDCM V2.0. To download UDCM V2.0 for free, please go to: http://members.aol.com/dataetrsch/udcm.html. I hope you will consider applying UDCM in the software you develop. Thank-you very much for your time. Jeremy... President DataET Research Data Engineering Technologies

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Ignore all the messages about...
by DataETRsch＠aol.com 17 Dec '03

17 Dec '03

Hi again, In the the help documentation of the shareware version of UDCM, there may appear to be a message that reads: Describing the algorithmic contents of the IMDMP encryption algorithm is well beyond the scope of this on-line manual. In fact, there is currently absolutely no documentation that exists outside of the corporate domain of DataET Research that actually explains the IMDMP encryption algorithm in any true detail, and DataET Research does not intend to release or disclose any such sensitive documentation to the general public, ETC. ETC. ETC. ETC. ETC. ETC. PLEASE DISREGARD THE ABOVE MESSAGE COMPLETELY. Jeremy... President DataET Research Data Engineering Technologies

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Re: MNET
by Guy Hoogewerf 17 Dec '03

17 Dec '03

cypherpunks(a)toad.com wrote: Dear Future M-NET subscriber, ************************************************************* * The M-NET HOME PAGE * * http://www.hk.super.net/~alamo/mnet/home.html * ************************************************************* Thank you for your interest in the M-Net Webpage. I encourage you to PRINT and read this "Introductory Newsletter" in its entirety. Although it is longer in length than M-Net's regualar update the contents will give you a good idea of the products and opportunity available through subscription to our service. M-Net, in itself, is a great part time income opportunity. All you do is offer the products and services of M-Net to others. You can do this via the Internet as I have, or just to a few freinds and contacts. Just help get the word out - whether by Internet ads, flyers, postcards, classifieds, or word of mouth. Choose any method you're comfortable with . . . they all work. After all, almost everyone has to pay a telephone bill and would like more income! Whenever anyone that you (or your subscribers) have shared M-Net with subscribes to the service, your income grows. The compensation plan is described in detail in this introduction. You can quickly develop an income of $300.00 to even $3,000.00 or more per month! ======================== GETTING STARTED IS EASY! ======================== To get started, simply send in a completed form and start saving money straight away. ============================================================== You can subscribe to M-Net's service: mailto:ccr@netvigator.com ============================================================== ...or you can use the subscription form at the end of this introduction. In addition to the service you will receive a welcome package which includes a Company Manual, brochures, and extra Introductory Newsletters. I look forward to hearing from your shortly. Yours in success, Guy Hoogewerf M-Net Associate ID# 11167 8/F, Yau Shun Building 46-50, D'Aguilar Street Central, Hong Kong Tel: (852) 2868 6198 Fax: (852) 2524 1233 ============================================================== INTRODUCTION TO M-NET ============================================================== "I would rather benefit from 1 % of 100 peoples effort than benefit from 100% of my own". The words of John Paul Getty. M-Net, founded by Ed Brinskely, offers the average American the tools and education they need to: 1. Reduce their telephone bills with simple innovative system of Call-back, and 2. To increase their income with a solid home based business. M-Net may be contacted at: 8/F, Yau Shun Builing 46-50, D'Aguilar Street Central, Hong Kong Tel: (852) 2868 4198 Fax: (852) 2524 1233 NO SPECIAL SKILLS are required to be successful with the M-Net Program. We firmly believe that the vast majority of people do not want a "hand out," but merely a "helping hand" and that is the mission of M-Net. If you are looking for sound, time tested advice to help you take control of your finances and runaway debt, combined with a solid home business income opportunity, and are not afraid of a little honest hard work, then you owe it to yourself to learn all you can about the M-Net program. Unlike "get-rich-quick" schemes, a legitimate program requires an investment of your time and resources in order to succeed. Let's face it, hard work, dedication, commitment and persistence are what built this country and made people wealthy in the process. And the M-Net program is no different. However, M-Net offers one distinct advantage over many other opportunities available today. M-Net saves your business money on your communication needs. Other opportunities require you to invest money which you may not have. M-Net offers and teaches you teaches you sound financial principles, strategies and techniques to help you free up the resources it takes to achieve success! M-Net will also show you how to get onto the Internet with minimal cost so solving two of the entrepreneur's largest business expenses, advertising and telephone costs. The M-Net program offers a unique pay plan that rewards you with a $25 commission on all your first level subscribers and pays you a total of 12.5% through 10 levels on everyone's telephone bill! You can easily qualify for commissions on all 10 levels by simply sponsoring just one person... just one. M-Net furnishes you with all the tools necessary to finance this exciting, home business opportunity's quick growth, enabling you to develop a substantial monthly income for you and your family. You'll receive the education, promotional materials, and support while you provide the desire, dedication, hard work and perseverance. And you don't even need a computer to succeed with the M-Net program either. A substantial income can be built by ANYONE simply by telling their friends! After all they will want to save money as well!! With an incredible pay plan and proven income producing system (along with a little simple hard work), you will succeed in developing the extra income to take that extra hoiday you wanted or to help pay off that morgage you have. Please feel free to call the M-Net office at (852) 2868 4198 anytime with questions, comments, or suggestions. The doors are always open and a voice mail system is available 24 hours a day to take your calls. Some Statistics: š 1/3 of all produce in America was shifted through a Multi- Level Marketing Program in 1995. š There are 8,000 Multi-Level-Marketing Companies Worldwide. š A MLM Company opened this year in China. They had 23,000 new customers in 2 weeks š Telecommunications is the third largest Industry worldwide, it is also the fastest growing. My Point: š Multi-Level-Marketing is the ultimate way to market a product. Three simple reasons: I. The Consultant benefits from commissions, no investment, minimal work, a rewarding experience. II. The user benefits from reduced prices, no middle men. III. The Producer benefits from reduced distribution costs, direct links with consumer needs Benefits to you the consultant: All customer Service and Support is taken care of by M-Net and their home company MTC. As an M-net Consultant you are paid to spread the word. The limits to your earnings are unknown and they are residual. You carry on been paid even after you retire from the program. You participate in a unique set of products. M-Net can offer you a complete telemanagement system. i.e. Callback services, Travel Cards, Fully Itemised billing, and other more technical services such as; conference calls, Free phone lines, Fax on Demand, Autocall and Air freight Services. š No other Telephone Callback Company can do this. You receive the lowest rates ALL round the world. M-Net, unlike any other company, offers you discount services from Every Country to Every Country Worldwide. š Examples are calling; your Children at School, from a hotel you might be staying at, or just calling your family abroad. Requirements from you: M-Net is a non-profit service to supply you with all the information you need to understand the Telephone Industry and products M-Net provide. There is a minimal introduction fee of US$99.99 to cover these costs, but by the end of the first month you would have made back the initial investment either with the savings on your Bill or through just connecting 5 people to M-Net's service. Free connection to the network is also included when subscribing as an associate. As time goes by and the money starts to come in, you will want to spend more time on this project, anything up to 1 hour a week is all it takes. A simple guide as to how much time is required is the more time you invest the greater your return on investment. ====================================================== The aim of the Concept. ====================================================== The aim is not to make a million in one month. What M-Net are offering is a constant growing income every month. The aim is not to sell as many Callback systems as quickly as possible either. M-Net are saying Callback is, already, a sold product. Everyone knows it saves you money. M-Net are offering a way to make money out of Callback. Just because it is the cheapest has little to do with it. You can sell a Callback a hundred times but wont get everybody using it. M-net are saying, by becoming an Associate, you most likely will use the service for your own benefit (its free to join after all). Added to that as a Associate, you will ensure you, that you yourself, get maximum benefit out of using the system. So, you are an Associate first and a user second (you do not have to use it). I would now like to offer an example; ====================================================== The Twelve Year Plan. ====================================================== You find just one person who wants to use the service in one year, i.e. a long time. During the following year both you and he find one person each. You now have four people using the system. In the third year all four of you find one person, you have eight in your group. Year four and it doubles again, 16 and again in the fifth year to 32, 64, 128, 256, 512, 1024, 2048 and finally at the end of the twelfth year 4,096. What you will find is, depending on how much time people are willing to invest, some people will find up to 20 people a year while others will be comfortable with only one a year. Speeding This Up. Taking this example further; the next stage is to speed up this progress of multiplication. There are two easy ways to do this. 1. Shorten the Time. instead of 1 person every year how about one person every month. This gives you an income of over US$3,000 a month within a year. How this happens I will explain later. 2. Increase the number of Sponsorships. Instead of just one person a year or month, why not 3 or 5. This can be demonstrated by taking the pattern of 2,4,8,16,32,64 and so on and doing it with three people instead of one. 1,3,9, 27,81,243 and so on...Or even better with 5. 1,5,25,125,625. The Multiplication factor is important and akes the ultimate difference. How Does This Fit In With M-Net ? The Commission Pay Plan is, like the system itself, as simple as possible. There are three areas. You receive a commission of 1% on anybody and everybody's telephone bill on 10 levels of your group or organization. On the third level you recieve a bonus commission of 2.5% extra. Your customers will also recieve a commission as a customer if they introduce anyone to the system. They will recieve 0.5% on 10 levels of a potential organzation that you may inadvertently build up for them. There is a pay out of $25 on each new member. $5 is given to the Associate who accepts the subscription and $20 for the customer who referred that new member. If you are the Associate and the referring member i.e. the new member is your introduction then you recieve the full $25. So!! Levels # of Associates Commission Monthly Earnings You 0 0 0 1 4 1% US$ 4.00 2 13 1% US$ 13.00 3 40 3.5% US$ 14.00 4 121 1% US$ 121.00 5 364 1% US$ 364.00 6 1,093 1% US$ 1,093.00 7 3,280 1% US$ 3,280.00 8 9,841 1% US$ 9,841.00 9 29,524 1% US$ 29,524.00 10 88,573 1% US$ 88,573.00 This assumes an average of $100 is spent per member and every Assoicate has the ability to find three further Associates. This does not allow for the many people who would just become customers, thereby increasing thse figures. This is a cumulative calculation =============================================== How To Sponsor! =============================================== Back to first principals again. M-Net know and do not expect anyone to be able to reach these magic figures just like that. No one is sent out to spread the word on their own. Sponsoring is about support and passing on information. Like Chinese whispers but ensuring the message is not altered. It is M-Net job to ensure the message remains the same, let them worry about this. That is what their complete support and back up service to their associates is for. Sponsoring is about keeping it simple, no one is expected to get involved in Telecommunications, there is no need to. Each person can take technical side of the business as far as they want to, it is up to them. Each person just uses the product themselves or at least knows how to use it even if they do not use it. The easiest way, as in any business, to sponsor is to get someone else to do it. So only involve people who are prepared to sponsor others, Only involve small numbers i.e. 3 or 5. The returns are greater this way and the input by you less. The Challenge is; Do you know 3 people who spend as little as US$100 a month on their phone bill? Do these people know 3 people who spend US$100 a month? and so on. These are your customers. We in Hong Kong as M-Net principal office here, provide a full support service. This includes a telephone service to answer any questions. Twice weekly meetings for Assoicates to come and introduce new Associates and to learn of new developments with in M-Net, and a Bi-Weekly News Bulletin is sent out to keep every one updated. The purpose of these services are threefold: 1. To encourage maximum communication between M-Net and its users, 2. To ensure the continued growth of M-Net 3. To provide Educational Material on how to create a MLM business with minimum input. ================================================== Summary =================================================== With this huge support network behind you, you should not only be encouraged but also receive a healthy regular income only a few months after you join. You now have a description of the philosophy of MLM, and an example with some notes on how to go about it. I would strongly recommend you come to a meeting and find out more. MLM is NOT a hidden catch business, it is a very viable spare time occupation, which more than adequately rewards you. To get started, simply send in a completed form and start saving money straight away. ================================================== You can apply to subscribe to M-Net's service: mailto:ccr@netvigator.com ================================================== ...or you can use the subscription form at the end of this introduction. In addition to the service you will receive a welcome package which includes a Company Manual, brochures, and extra Introductory Newsletters. ================================================== HOW TO SAVE MONEY WITH M-NET USER GUIDE ================================================== Fact: In 1994, the residents of Hong Kong spent over 1,200,000,000 minutes calling the rest of the World. What is Callback? Callback is an innovative system designed specifically to cut the cost of your International telephone bill. Its formula is simple.To call from any country worldwide you call a computer in the USA and that computer supplies you with a US dial tone. You are now paying US prices (the cheapest in the world) and bypassing the big costs of local telephone companies ! To Use Callback Dial 001, 1, and then your passport access number (10 digit number given to you by M-Net). You can program this number into your phones memory. · When you hear the first of three short rings, hang up. Your phone will ring in 2-5 seconds. This is the computer in the USA calling you back. ž Pick up the phone, listen for the US dial tone, and then (if you are calling the USA) dial the number of the person you are calling. When calling a country other than the USA, dial 011, followed by the Country Code, Area Code and then telephone number. It really is that simple! Mis-dials and Multiple Calls If you are making multiple calls or you mis-dial the number you wanted, you dont have to repeat this process. When the first call is completed, and the other party has hung up, press the # key on your phone, and the computer will again provide you with a dial tone, then just dial again. Autodialers An Autodialer is available, this small device detects when you are dialing an IDD number, it then automatically routes the number for you through the MTC system. Giving you trouble free IDD calling. Speed Dial To make life even easier, you can also preprogram up to 99 of your friends, clients, telephone numbers to be accessed by dialing only 3 numbers! To Use Use Callback to get the US dial tone. · Press the * key ž Press in the Index number for the person you wish to call, press * key

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