From: "Ama-gi ISPI" <Offshore@email.msn.com> Subject: IP: ISPI Clips 6.33: Patent May Threaten E-Privacy Date: Thu, 12 Nov 1998 00:08:59 -0800 To: <Undisclosed.Recipients@majordomo.pobox.com> ISPI Clips 6.33: Patent May Threaten E-Privacy News & Info from the Institute for the Study of Privacy Issues (ISPI) Thursday November 12, 1998 ISPI4Privacy@ama-gi.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ This From: WIRED news, November 11, 1998 http://www.wired.com Patent May Threaten E-Privacy http://www.wired.com/news/print_version/technology/story/16180.html?wnpg=al l by Chris Oakes, chriso@wired.com The future of a key Web standard that would give consumers control over their online privacy hangs in the balance after news emerged that a entrepreneur will likely be awarded a set of patents on the technology. The technology, the Platform for Privacy Preferences (P3P) is critical to the Internet industry's current effort to show the US government that it can look after the interests of consumers. The specification was to be used in the next versions of America Online, Netscape Communicator, Microsoft Internet Explorer, and many other software products and Web sites. "If somebody owns [P3P], they can prevent other people from using it," said Deirdre Mulligan, staff counsel for the Center for Democracy and Technology. "We put all this work into something that works, then who knows if it's going to get out there." At the core of the issue is one man, Drummond Reed, CEO of Intermind. Reed said that the US Patent and Trademark Office is expected to issue his company a patent on the idea of P3P. Intermind [ http://www.intermind.com/ ] was, until July, a member of the standards group that is collectively developing P3P. He resigned when word spread among the members that he would likely be awarded patents on technologies affecting a broad category of "automated information exchange using software objects." That sounds very much like P3P. The standard is meant to provide a way for consumers and the Web sites they visit to automatically negotiate what can and can't be done with any personal data collected by a site. The technology would reside within both Web browsers and Web sites. On a document [ http://www.intermind.com/W3CMembers/licensing_summary.htm ] on the Intermind Web site, Reed said that his company would request a minimum royalty of US$50,000 per year to a maximum of $2.5 million from companies implementing P3P, plus 1 percent of all revenues directly associated with the technology. Both Microsoft and Netscape declined to comment for this story. "P3P is the nuclear weapon of privacy," said Matt Markus, chief architect and cofounder of Privacy Bank, a company developing an automatic registration service that safeguards a user's privacy. Privacy Bank shifted its company strategy to lessen its dependence on P3P. Markus said he expects the patent will be revoked. "[The patent] is going to hurt young companies who want to help develop the solution," Markus said. "It is the snake in the grass, a complete surprise, it would really shoot the morale at my company if I was depending on [P3P]," he said. Reed acknowledges that some working group members want "to just crucify us" -- but he says his company has been up-front from the beginning that it has held intellectual property rights pertaining to P3P and other Web standards relating to "push" technology. "We have been in communication with the [Consortium] and working group members pretty much from the start," Reed said. "We've been in constant communication with W3C management and key member companies involved in this area." P3P is not yet a final standard, but progress in the World Wide Web Consortium working group has slowed since news of the pending patent seeped out in July, according to Steve Lucas, chief information officer for an Excite division that has been developing P3P-based software. "There are ways of working around P3P," he said. These include custom-made variations on the protocol that circumvent elements covered by the patent, and shifting work toward an older protocol known as the Open Profiling Standard. Lucas said companies are going ahead with work on P3P. But they are simultaneously making contingency plans should the patent have a stifling effect. If Drummond's pending patents stand, the thousands of companies doing business on the Internet could face new laws designed to protect the interests of consumers. The Federal Trade Commission, which would recommend such laws, has given the industry until the end of this year to demonstrate that it can "self-regulate," and P3P is key to that plan. "Some combination of the [P3P and Open Profiling Standard] technologies may be a more transparent way to protect consumers privacy," David Medine, an associate director at the Commission told Wired News earlier this year. Daniel Weitzner, who oversees the development of P3P at the World Wide Web Consortium, insists P3P development is still on track, but echoed the same concerns. "If anyone succeeds in extracting big licensing fees for P3P implementations, that would hamper the availability of the technology," he conceded. "Really the question turns on what happens with that patent." But working on ways to perform privacy negotiations without a standard presents a big obstacle to the industry. "Not having a standard everybody can agree on does create some interoperability problems," Lucas said. "This is a collaborative process about trying to develop socially useful protocols and now we have somebody walking away and saying they own it," added working group member Mulligan of the Center for Democracy and Technology. Weitzner said the issue now is not who said what when but what to do once the patents are issued. He declined to comment on the possibility of mistakes made in the past by W3C management. "The issue is whether or not the patent is valid, not who told what to whom or when," Weitzner said. "The concern I hear is about the attack on openness, not the timing." That issue -- how a patent might affect a Web standard -- is a new one for the W3C. "Our members have not had to face this issue because no one has had to try to stand in the way of openness in a way that Intermind appears to be doing...." The question now is "whether or not they're going to be able to hold up a standard that has a potentially significant social impact." James Glave contributed to this report. Copyright © 1994-98 Wired Digital Inc. --------------------------------NOTICE:------------------------------ ISPI Clips are news & opinion articles on privacy issues from all points of view; they are clipped from local, national and international newspapers, journals and magazines, etc. Inclusion as an ISPI Clip does not necessarily reflect an endorsement of the content or opinion by ISPI. In compliance with Title 17 U.S.C. section 107, this material is distributed free without profit or payment for non-profit research and educational purposes only. --------------------------------------------------------------------------- ISPI Clips is a FREE e-mail service from the "Institute for the Study of Privacy Issues" (ISPI). To receive "ISPI Clips" on a regular bases (up to 3 - 8 clips per day) send the following message "Please enter [Your Name] into the ISPI Clips list: [Your e-mail address]" to: ISPIClips@ama-gi.com . The Institute for the Study of Privacy Issues (ISPI) is a small contributor-funded organization based in Victoria, British Columbia (Canada). ISPI operates on a not-for-profit basis, accepts no government funding and takes a global perspective. ISPI's mandate is to conduct & promote interdisciplinary research into electronic, personal and financial privacy with a view toward helping ordinary people understand the degree of privacy they have with respect to government, industry and each other and to likewise inform them about techniques to enhance their privacy. But, none of this can be accomplished without your kind and generous financial support. If you are concerned about the erosion of your privacy in general, won't you please help us continue this important work by becoming an "ISPI Supporter" or by taking out an institute Membership? We gratefully accept all contributions: Less than $60 ISPI Supporter $60 - $99 Primary ISPI Membership (1 year) $100 - $300 Senior ISPI Membership (2 years) More than $300 Executive Council Membership (life) Your ISPI "membership" contribution entitles you to receive "The ISPI Privacy Reporter" (our bi-monthly 12 page hard-copy newsletter in multi-contributor format) for the duration of your membership. For a contribution form with postal instructions please send the following message "ISPI Contribution Form" to ISPI4Privacy@ama-gi.com . We maintain a strict privacy policy. Any information you divulge to ISPI is kept in strict confidence. It will not be sold, lent or given away to any third party. **************************************************** To subscribe or unsubscribe, email: majordomo@majordomo.pobox.com with the message: (un)subscribe ignition-point email@address or (un)subscribe ignition-point-digest email@address **************************************************** www.telepath.com/believer ****************************************************