GILC Alert, Volume 5, Issue 6



GILC Alert
Volume 5, Issue 6
August 27, 2001

Welcome to the Global Internet Liberty Campaign Newsletter.

Welcome to GILC Alert, the newsletter of the Global Internet Liberty
Campaign. We are an international organization of groups working for
cyber-liberties, who are determined to preserve civil liberties and human
rights on the Internet.
We hope you find this newsletter interesting, and we very much hope that you
will avail yourselves of the action items in future issues.
If you are a part of an organization that would be interested in joining
GILC, please contact us at <gilc@gilc.org>.
If you are aware of threats to cyber-liberties that we may not know about,
please contact the GILC members in your country, or contact GILC as a whole.
Please feel free to redistribute this newsletter to appropriate forums.

===============================================
Free expression
[1] China installs "Internet Police" censorware
[2] Russian Ebook programmer released on bail
[3] Court forces new round in DVD weblinks case
[4] Singapore restricts political sites
[5] Thailand initiative may stifle Net speech
[6] German official seeks US Net censor help
[7] New California anonymous Net speech battle
[8] Website exposes Afghan gov't abuses
[9] New efforts underway to bridge digital divide

Privacy
[10] South African bill sparks privacy fears
[11] Disappointment over Australian cybercrime report
[12] US gov't avoids disclosure on keystroke taps
[13] US Congress orders report on Carnivore spyware
[14] Privacy fears over Aussie universal bank site
[15] Geolocation software threatens Net privacy
[16] Weak P3P privacy promoted in Windows XP
[17] Report: webbug tracking is increasing
[18] New toilet emails medical info

===============================================
[1] China installs "Internet Police" censorware
===============================================
Beijing is implementing new technology and other restrictions to shut out
online dissent.

According to the official Xinhua news agency, "Internet Police" software has
already been installed on computers in the northwestern city of Xi'an. The
device deters users from accessing websites with controversial content in a
variety of ways. Among other things, it issues warnings to individuals if
they attempt to visit such webpages, then denies access if users keep on
trying. In addition, the program captures screen shots and sends them a
central facility, making it easier for government censors to detect and
track critics along the Information Superhighway.

Additionally, Chinese officials have imposed further regulations on news
coverage in the Land of the Dragon. As announced on state television, it is
illegal to publish materials that negate "the guiding role of Marxism,
Leninism, Mao Zedong and Deng Xiaoping's theories, [g]oes against the
guiding principles, official line or policies of the Communist Party," or
"violates party propaganda discipline," Also banned is "content that guides
people in the wrong direction, is vulgar or low." Chinese commisars are set
to create a special division for approval or censorship under these new
regimes. On top of all this, Mainland China's Supreme People's Court has
laid down rules that will hold Internet users liable for "malicious" use of
domain names.

Meanwhile, Communist agents held a secret trial for Huang Qi, the proprietor
of the "Tianwing Missing Persons Website" who was arrested on charges of
"instigation to subvert state power." Huang had republished articles written
by other people about the 1989 Tiananmen massacre, the Falun Gong spiritual
movement and other topics deemed taboo by the government. A trial had been
postponed after Huang collapsed during public proceedings, allegedly because
he had been beaten in jail. There is also speculation that government
officials delayed the trial in order to help Beijing's bid for the 2008
Summer Olympics. Details as to the outcome of the secret sessions have yet
to surface.

Read "China puts Webmaster on trial," Associated Press, Aug. 20, 2001 at
http://www.salon.com/tech/wire/2001/08/20/china/index.html

See Steven Bonisteel, "Trial Resumes For Jailed Chinese Webmaster Huang Qi,"
Newsbytes, Aug. 17, 2001 at
http://www.newsbytes.com/news/01/169130.html

See also "Chinese webmaster tried for subversion," BBC News Online, Aug. 17,
2001 at
http://news.bbc.co.uk/hi/english/world/asia-pacific/newsid_1496000/1496107.s
tm

For more about Chinese blocking and tracking systems, read "Online Police
Appear in Internet Bars in Xi'an," Xinhua News Agency, Aug. 7, 2001 at
http://www.cnd.org/Global/01/08/07/010807-9.html

For further details on new Chinese press restrictions, see "You Don't Say:
China forbids publication of seven types of content," China Online, Aug. 13,
2001 at
http://www.chinaonline.com/topstories/010813/1/c01080805.asp

Read "'Malicious cyber-squatters to face civil punishments," China Online,
July 25, 2001 at
http://www.chinaonline.com/issues/internet_policy/newsarchive/secure/2001/ju
ly/c01072310.asp

===============================================
[2] Russian Ebook programmer released on bail
===============================================
A Russian computer scientist who gave a presentation on Ebook encryption
codes is still facing serious criminal charges.

The programmer, Dmitry Sklyarov, had developed a program that circumvents
the copy protection scheme contained on Adobe Systems electronic books. He
created the program as part of an effort to allow Ebook readers to view such
products on whatever computers they like. After writing a paper on the
subject and presenting it to the public at a Las Vegas computer convention,
United States government agents arrested him on charges of violating the
controversial Digital Millennium Copyright Act (DMCA), which restricts the
right of computer users to circumvent any program that "effectively controls
access" to copyrighted works. In early August, Sklyarov was finally released
on US $50 000 bail, but was ordered to remain in Northern California. His
next court appearance has been postponed until Aug. 30, 2001, when he will
find out whether Federal officials will continue to prosecute him. If
convicted, he could get 5 years in prison and a US $500 000 fine.

Both the case and the DMCA have drawn strong protests from Internet users
around the world who fear that these legal developments will threaten free
expression, particularly in the scientific community. Earlier this year, the
Recording Industry Association of America had written a letter to a
Princeton University professor, Edward Felten, suggesting that he might face
a DMCA-styled lawsuit if he presented a research paper on decrypting a
certain digital watermark copy protection scheme. Felten, who is represented
by the Electronic Frontier Foundation (EFF-a GILC member) sued the RIAA and
eventually gave his presentation on Aug. 15, 2001; the case is still
ongoing. A similar battle has arisen in the Netherlands, where a computer
scientist, Niels Ferguson, held off publishing his research results on an
Intel copy protection system "for fear of prosecution and/or liability under
the U.S. DMCA law" on one of his many visits to the United States.

These moves have also generated interest in various US proposals, such as
the Music Online Competition Act (MOCA), which would ease intellectual
property-based restrictions along the Information Superhighway. Ironically,
while Sklyarov continues to encounter legal hurdles in the United States, he
faces no such problems under the laws of his home country. Dmitry
Chepchugov, who directs the Russian Interior Ministry's technology division,
said that "[i]f this case was being reviewed in Russia, we would have
nothing against Dmitry Sklyarov."

For press coverage of the Sklyarov case, visit a special EFF archive under
http://www.eff.org/IP/DMCA/US_v_Sklyarov/media.html

For further background materials about the Sklyarov case, click
http://www.eff.org/IP/DMCA/US_v_Sklyarov/

For more on the Felten and Ferguson cases, read Mike Musgrove,
"Digital-Music Code Crackers Tell All," Washington Post, Aug. 16, 2001, page
E3 at
http://www.washingtonpost.com/wp-dyn/articles/A17617-2001Aug15.html

See also Lisa M. Bowman, "Professor unveils anti-copying flaws," ZDNet News,
Aug. 16, 2001 at
http://www.zdnet.com/zdnn/stories/news/0,4586,5095789,00.html

For more on the Russian government's refusal to prosecute Sklyarov, see
"Adobe Hacker off Hook in Russia," Associated Press, Aug. 9, 2001 at
http://www.wired.com/news/print/0,1294,45966,00.html

For further information on what happened at the Sklyarov bail hearing, read
Carrie Kirby, "Accused in copyright case out on bail," San Francisco
Chronicle, Aug. 7, 2001, page E2 at
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2001/08/07/BU139975.DTL&;
type=printable

For more on British protests against the prosecution of Skylarov, read Wendy
McAuliffe, "London protesters slam US copyright laws," ZDNet UK, Aug. 3,
2001 at
http://www.zdnet.com/zdnn/stories/newsbursts/0,7407,2801413,00.html

The text of MOCA is posted under
http://www.digmedia.org/whatsnew/moca.pdf

For more reaction to MOCA, read "Online music bill 'meets disapproval'," BBC
News, Aug. 6, 2001 at
http://news.bbc.co.uk/hi/english/entertainment/new_media/newsid_1475000/1475
799.stm

===============================================
[3] Court forces new round in DVD weblinks case
===============================================
A college student and budding computer scientist has suffered a serious
court setback in a high profile copyright case.

The case centers around DeCSS-a primitive computer program that unscrambles
the copy protection scheme used in DVDs. It was created to help users of the
Linux operating system play DVDs on their computers. Over the past year and
a half, the entertainment industry, through the DVD Content Control
Association (DVD CCA) and the Motion Picture Association of America (MPAA),
has waged legal battles in both New York and California to prevent Internet
users from linking to websites that have DeCSS. Many experts fear that these
actions may stifle free expression in cyberspace.

One of the defendants, Matthew Pavlovich, had posted DeCSS on a DVD player
development mailing list that he operated. After the initial lawsuit was
filed, a court ruled that Pavlovich can be forced to answer charges in
California, largely because "California is commonly known as the center of
the motion picture industry" and that he somehow should have known that
posting DeCSS was "injuriously affecting the motion picture and computer
industries in California." The ruling despite the fact that Pavlovich, whose
defense is being coordinated by the Electronic Frontier Foundation (EFF-a
GILC member) performed all of these actions thousands of miles away and has
never lived in California. An appeal is expected shortly.

An EFF press release on the ruling is available at
http://www.eff.org/IP/Video/DVDCCA_case/20010808_eff_pavlovich_pr.html

The text of the ruling is posted under
http://www.eff.org/Cases/DVDCCA_case/20010807_pavlovich_appelate_ruling.html

===============================================
[4] Singapore restricts political sites
===============================================
The government of Singapore has issued a series of tough restrictions
concerning online political activity, even as the country gears up for
national elections.

While the full details of this plan have still to be released, it would
apparently ban political content on the World Wide Web except on the
official sites of various political parties. In addition, those official
sites would have to comply with certain regimes, including moderators for
chat areas. The bill would not allow anonymous campaign paraphernalia, but
would require the printer, publisher and advertiser to be specifically
identified, for possible future government prosecution. Moreover, the state
Singapore Broadcast Authority is already requiring registration of all
political websites.

Opposition leaders scoffed at the new regulations, arguing that they
constituted yet another attempt by the ruling People's Action Party to
silence dissent. Indeed, the Singporean government had already banned such
things as singing during political rallies and political advertisements in
video or film form. Chee Soon Juan of the Singapore Democratic Party said
that the proposed standards were just "another way the government is trying
to crack down on the use of the internet. They know it is one way the
opposition can use it and be on level playing field with the ruling party."

Unfortunately, the new strictures have already led one organization to
shutdown its web activities. The SBA had ordered Sintercom (a GILC member)
to register with government agents and to refrain from discussion various
prohibited "themes" including "material that is objectionable on the grounds
of public interest, public morality, public order, public security, national
harmony" or speech that "offends against good taste or decency." In spite of
protests, SBA insisted that Sintercom "exercise judgement and ensure that
the contents on their websites comply with the SBA Internet Code of
Practice." Sintercom has since closed down, although the precise reasons for
this move are not clear.

For the latest details, see "Singapore net law dismays opposition," BBC
News, Aug. 14, 2001 at
http://news.bbc.co.uk/hi/english/world/asia-pacific/newsid_1490000/1490425.s
tm

Read John Aglionby, "Singapore plans purge of net politics," The Guardian,
July 27, 2001 at
http://www.guardianunlimited.co.uk/internetnews/story/0,7369,528129,00.html

Further background information is available from DFN under
http://dfn.org/focus/singapore/web-laws.htm

For additional details on the Sintercom shutdown, click
http://www.sintercom.org/sba/index.html

===============================================
[5] Thailand initiative may stifle Net speech
===============================================
Thailand officials are implementing a new tracking and blocking system to
prevent people from seeing various types of Internet content.

Under this plan, Internet service providers will have to block user access
to given websites. ISPs will also have to log information about their users'
activities and retain these records for a minimum of 3 months. Clauses will
be introduced into customer contracts so that computer users can be held
responsible for viewing or accessing of controversial online materials. The
scheme even goes so far as to mandate service providers to standardize their
system clocks, so as to ensure accurate user tracking records.

It is unclear what effect these efforts will have on Internet speech,
particularly since Thai authorities apparently have not disclosed any
specific criteria as to what content will be censored. Despite these
concerns, however, many telecommunications companies reportedly have agreed
to this plan.

See Karnjana Karnjanatawe, "Thailand Moves To Crack Down On Web Content,"
Bangkok Post, July 26, 2001 at
http://www.newsbytes.com/news/01/168353.html

===============================================
[6] German official seeks US Net censor help
===============================================
A senior German government official wants his American counterparts to
shutdown websites in the United States.

German Interior Minster Otto Schily is pushing such these measures as a way
to silence various forms of so-called hate speech. Such materials are
illegal under German law, but are often available via sites in the United
States, where there are tougher protections for freedom of expression.
Schily said that he will travel to the US in the fall of 2001 to meet with
"responsible officials" to help carry out this plan. He also mentioned that
these meetings will feature discussions on how to use civil lawsuits as a
weapon against US web creators.

Some observers are worried about this apparent attempt to impose German
speech restrictions on citizens in another country. Indeed, Schily
previously had pushed for several other bizarre methods to curb
controversial content, including letting government agents disrupt private
websites via spam and denial of service attacks. Andy Muller-Maguhn from the
Chaos Computer Club (CCC-a GILC member) accused Schily of "trying to shoot
the messenger," adding that "Mr. Schily seems to want a very strong
government, and not let the people make their own opinions on what makes
reality." Similar concerns were aired by opposition party official
Hans-Joachim Otto, who doesn't "expect any spectacular agreement in a
German-American meeting with Mr. Schily. He should not have the illusion
that he can bring his own German standards as a general standard between the
United States and Germany. It's not possible and it's not even desirable."

Read Ned Stafford, "German Official To Visit U.S. In Effort To Shut Down
Hate Sites," Newsbytes, Aug. 22, 2001 at
http://www.newsbytes.com/news/01/169280.html

See also Steve Kettman, "Germany's Anti-Hate Push Angers," Wired News, Aug.
8, 2001 at
http://www.wired.com/news/print/0,1294,45907,00.html

===============================================
[7] New California anonymous Net speech victory
===============================================
A California court has upheld the right of Internet users to speak without
having to divulge their identities first.

One of these rulings rejected an attempt by Pre-Paid Legal Services Inc. to
discover the real names of 8 Yahoo chatroom users. They had posted several
comments that took the company to task, particularly in its treatment of
employees. The firm then sued, claiming that it wanted to find out whether
the online speakers had divulged any trade secrets. However, the defendants,
who were represented by the Electronic Frontier Foundation (EFF-a GILC
member), feared possible reprisals if their identities were revealed.

The judge reaffirmed the principle that Internet users have the right to
anonymous free expression under the United States Constitution. She went on
to hold that this speech interest was strong enough to override Pre-Paid
Legal's desire to find personal information about the defendants. EFF Senior
Staff Counsel Lee Tien welcomed this decision, hoping it would "signal to
other companies that judges will not permit corporate executives to abuse
the courts in ferreting out critics."

An EFF press release on this subject is available at
http://www.eff.org/sc/ppls/20010813_eff_ppls_pr.html

See David McGuire, "Judge Rejects Attempt To Unmask Online Speakers,"
Newsbytes, Aug. 13, 2001 at
http://www.newsbytes.com/news/01/168972.html

See Lisa M. Bowman, "Court: Posters' IDs can stay under wraps," ZDNet News,
Aug. 13, 2001 at
http://www.zdnet.com/filters/printerfriendly/0,6061,5095619-2,00.html

===============================================
[8] Website exposes Afghan gov't abuses
===============================================
A women's website is helping expose the excesses of Afghanistan's rulers.
But government censors may prevent anyone in the country from seeing it.

The Revolutionary Association of the Women of Afghanistan (RAWA) has created
a site that chronicles human rights violations, many of which have been
perpetrated by the ruling Taliban elite. These materials include a large
gallery of photographs that depict such grim events as summary executions of
women, children being forced to live in squalor, starving peasants, and even
forced amputations as criminal punishment. Besides these images, the site
stores news updates and accounts of life in the troubled nation. The
individuals who help put together these webpages remain anonymous in order
to head off possible harassment; indeed, RAWA's founder was murdered several
years ago by Afghan government agents.

Unfortunately, various forces have apparently made it difficult for much of
the website's potential audience to view these materials. The Taliban
government recently made it illegal for anyone in the country to use the
Information Superhighway. Moreover, severe problems with the nation's
infrastructure have prevented many Afghanis from going online in the first
place. In spite of these difficulties, the website continues to draw more
public attention to the plight of women in the beleaguered Central Asian
country.

The RAWA homepage can be reached via
http://www.rawa.org/

Read Julia Scheeres, "Risking All to Expose the Taliban," Aug. 10, 2001 at
http://www.wired.com/news/print/0,1294,45974,00.html

=================================================
[9] New efforts underway to bridge digital divide
=================================================
Several initiatives have been launched recently to allow more people to
enter the Information Superhighway.

Some of these projects have been developed by the Association of Southeast
Asian Nations (ASEAN), including an e-ASEAN framework and Asian IT Belt
Initiative, to enhance information technology resources in the region. ASEAN
ministers have announced that they are "determined to use ICT [Information
Communications Technology] as a tool for narrowing the development gap and
closing the digital divide within and among member countries as well as
between ASEAN and the rest of the world." In addition, the governments of
India and Brazil are offering email accounts to remotely located citizens in
their respective countries, which can be accessed by logging on at local
post offices.

Meanwhile, various private institutions have also started programs to bridge
the digital divide. In Uganda, for example, a new non-profit Internet
service provider named The Source has been created to help users go online.
Despite having to work with second hand equipment and deal with relatively
high licensing fees, the organization was able to open an Internet café in
the capital that offers personal email accounts and web access at low cost.
The Source's founders now hope that others will use their project "as a
springboard for ideas to begin similar projects that can serve communities"
throughout Africa.

In addition, the Center for Democracy and Technology (CDT-a GILC member) and
the non-profit Internews have launched the Global Internet Policy
Initiative, which is intended to promote reforms in developing countries
that will support an open and more affordable Internet, and thereby help
bridge the digital divide. GIPI has full-time policy coordinators in 11
countries, including Russia, Indonesia and Nigeria, working with local
stakeholders in consultative, coalition-based efforts to promote the
principles of a decentralized, accessible, user-controlled, and
market-driven Internet. Recently, GIPI signed a cooperative agreement with
the United Nations Development Programme, and is planning to expand further
in Asia, Africa, and Latin America.

For further details about Uganda's The Source ISP, click
http://home.att.net/~africantech/Internet/Uganda-ISP.htm

For more on the Indian universal email program, see Ram Dutt Tripathi,
"India sets up e-post office," BBC News Online, Aug. 13, 2001 at
http://news.bbc.co.uk/hi/english/world/south_asia/newsid_1489000/1489470.stm

See David Legard, "ASEAN in push to reduce digital divide," IDG News, July
24, 2001 at
http://idg.net/ic_656219_1794_9-10000.html

Read Paulo Rebelo, "Casting a Wider Net in Brazil," July 30, 2001 at
http://www.wired.com/news/print/0,1294,45526,00.html

The GIPI homepage is located at
http://www.gipiproject.org

=================================================
[10] South African bill sparks privacy fears
=================================================
A proposal to revise government surveillance laws in South Africa is drawing
fierce criticism over its potential privacy ramifications.

Among other things, the Interception and Monitoring Bill 2001 allows the
government to monitor of all telecommunications systems, including mobile
phones, internet and e-mail. One provision states that "no service provider
may provide any telecommunication service which does not have the capacity
to be monitored." Towards this end, the proposal empowers the Minister of
Communications to issue directives and thereby force telecommunications
companies to comply with government surveillance specifications (including
connections to "central monitoring centres"). Furthermore, the bill's broad
exceptions would allow law enforcement officials and members of the South
African Defense Forces in many cases to avoid the need for judicial approval
before intercepting certain types of data (such as "call related
information").

Many experts are worried that the proposal will allow massive government
intrusions into cyberspace. In formal comments submitted to the South
African government, Privacy International (a GILC member) charged that the
Bill "represents a step backwards ... and is inconsistent with international
standards on human rights and the legal requirements of the South African
Constitution." The group pointed out that the provisions "for authorizing
surveillance" failed to "include meaningful limitations to prevent abuses,"
and suggested that "journalism, civic protest, trade union organizing and
political opposition" might be "subjected to unwarranted surveillance
because the individuals involved have different interests and goals than
those in power." The organization also pointed out the Bill's loose
definition of "call related information" may allow government agents to
track users (such as through mobile phones) without a court order. Hearings
on these and other concerns will take place in a few weeks; a formal
decision on whether to adopt the measure may occur before the end of the
year.

The text of the bill is available at
http://www.pmg.org.za/bills/Interception0107.htm

Privacy International's comments on the bill are posted under
http://www.privacyinternational.org/countries/south_africa/pi-sa-intercept-l
etter.html

Read Declan McCullagh, "So. Africa Weighs Police Spy Law," Wired News, Aug.
17, 2001 at
http://www.wired.com/news/print/0,1294,46124,00.html

See Philippa Garson, "Protests over SA 'snooping' bill," BBC News, Aug. 13,
2001 at
http://news.bbc.co.uk/hi/english/world/africa/newsid_1484000/1484698.stm

======================================================
[11] Disappointment over Australian cybercrime report
======================================================
An Australian government report regarding a new cybercrime proposal is
drawing fire from privacy advocates.

An Australian Senate committee issued the document to address civil
liberties concerns over the Cybercrime Bill 2001. That proposal, among other
things, would greatly expand the power of government agents to conduct
surveillance along computer networks. It also would impose absolute criminal
liability for many Internet activities, including "unauthorized impairment
of electronic communication," with no exceptions for individuals who access
computers by mistake of fact. People who are found liable under the plan
could face 10 year jail sentences. Proponents claim that the Bill is needed
to conform with a proposed international cybercrime Convention that is
currently being considered by the Council of Europe--a treaty may be signed
by European government ministers in mid-September, but has already attracted
heavy criticism from privacy experts as well as telecommunications
providers.

In the report, the Senate committee granted its assent to the Bill, although
it did suggest a few changes to certain provisions. For example, it held
that that the proposal should be amended "to provide for the destruction of
all personal information collected by law enforcement agencies, which is not
relevant to an investigation, after a period of 3 months but subject this
time frame being extended on the authorisation of a senior officer."
However, some of these changes actually benefitted government investigators;
for example, the panel recommended that law enforcement officials be allowed
to retain seized computer equipment for longer periods of time (5 days,
rather than 72 hours).

Many observers feel that the report did not go far enough in protecting
privacy rights online. Greg Taylor from Electronic Frontiers Australia
(EFA-a GILC member) charged that the "Committee made some fairly superficial
changes to the wording of the Bill but nothing substantial. We're
disappointed with the Report overall." Taylor pointed out that portions of
revised plan would still grant government agents greater access to private
encryption keys, under threat of criminal penalties: "If you've lost that
key, how do you prove you actually have and you're not just using that
explanation as an excuse? We've asked that it be excised from the bill until
it is properly investigated. The way the Bill is currently worded could
criminalise innocent behaviour...behaviour designed to protect computer
systems."

The Senate Committee report is available (in PDF format) under
http://www.aph.gov.au/senate/committee/legcon_ctte/cybercrimebill01/cybercri
me_bill01.pdf

For further background information, visit the EFA website under
http://www.efa.org.au/Campaigns/cybercrime.html

See Rachel Lebihan, "Australian cyberCrime Bill 'overpowers' inquiry," ZDNet
Australia, Aug. 22, 2001 at
http://www.zdnet.com.au/printfriendly?AT=2000020826-20256107

=================================================
[12] US gov't avoids disclosure on keystroke taps
=================================================
The United States government has invoked a little known law to avoid having
to provide more details on a new computer interception technique.

The technique has become a key issue in the case of Nicodemo Scarfo, an
alleged mobster who was targeted by the US Federal Bureau of Investigations
(FBI) for wiretapping purposes. FBI agents decided to go beyond traditional
surveillance methods and installed a device on the keyboard of Scarfo's home
computer that apparently recorded every letter and character he typed. The
exact nature and capabilities of these taps is unclear; after government
prosecutors indicted Scarfo, they gave few details regarding this technique
to the presiding judge.

This secrecy angered Federal judge Nicholas Politan, who explained: "In this
new age of rapidly evolving technology, the Court cannot make a
determination as to the lawfulness of the Government's search in this matter
without knowing specifically how the search was effectuated." The judge held
that the "government has not satisfactorily confirmed for the court that the
keylogger device did not operate in conjunction with the computer's modems,
or otherwise to cause the interception of a communication," which would
violate US wiretapping statutes. Politan then commanded prosecutors to
provide "a report explaining fully how the key logger device functions."
However, government officials then moved for reconsideration, claiming
protection from disclosure under the Classified Information Procedures Act.
Politan granted this last request and ruled that the government need provide
the defense with only an unclassified summary of the keylogging method by
September 14, 2001.

The Scarfo case is being watched very closely by privacy advocates. David
Sobel from the Electronic Privacy Information Center (EPIC-a GILC member)
noted that keystroke logging systems presented new civil liberties
challenges: "Because of this technology there are a lot of gray areas, but
law enforcement is always attempting to resolve them in favor of more
aggressive techniques."

See "FBI keeps its bugging secrets," BBC News Online, Aug. 24, 2001 at
http://news.bbc.co.uk/hi/english/sci/tech/newsid_1508000/1508109.stm

Background materials on the Scarfo case (including motions and court orders)
are archived at the EPIC website under
http://www.epic.org/crypto/scarfo.html

===================================================
[13] US politicians order Carnivore spyware report
===================================================
Several recent events may lead to greater disclosure about a highly
publicized Internet spy tool.

Carnivore was created by the United States Federal Bureau of Investigations
(FBI). It can be attached to the server of a given Internet service provider
and intercepts all Internet transmissions that come through the server.
Afterwards, it parses out pertinent material, based on keywords provided by
the administrator. The latest version of the program, known as Enhanced
Carnivore or DCS 1000, uses the Windows 2000 operating system and reportedly
includes improvements such as better filtering and triggering capabilities
as well as greater capacity (presumably to cope with high-speed broadband
networks).

Many Internet user groups have criticized both Carnivore and its progeny
over the past year as being serious threats to online privacy. After the
initial revelations concerning Carnivore appeared, the Electronic Privacy
Information Center (EPIC-a GILC member) filed a request for more details
under the Freedom of Information Act (FOIA). After a Federal judge ordered
the United States Department of Justice (DOJ) to formally respond to EPIC's
request, US government officials released a series of documents on the
subject which, however, contained a number of omissions. For example, none
of these papers contained any analysis of whether the use of Carnivore-type
programs was legal; in any case, the documents that actually had been
released were heavily redacted.

Nevertheless, in spite of these omissions, the DOJ moved to end EPIC's
inquiry, saying that it had fulfilled its FOIA obligations. EPIC has since
filed papers challenging these assessments and arguing that, if anything,
the DOJ should be releasing still more information, due to apparent failure
to disclose key documents regarding Carnivore's abilities and legal
implications. A ruling is expected within the next few weeks.

Meanwhile, various US politicians have taken an interest in trying to
determine the legality of Carnivore. As a result, the US House of
Representatives has approved a measure (contained within an appropriations
bill) that would require greater government disclosures regarding the
controversial interception tool. More specifically, the adopted legislation
would force the US Attorney General to provide a report (at the end of
Fiscal Years 2001 and 2002) with details on the scope of the Carnivore
program, how many times it has been approved for use during the 2002 Fiscal
Year, who at DOJ reviews surveillance requests, and the criteria used for
approving such requests. The measure will now go to the Senate for further
consideration.

More recently, there are indications that the use of Carnivore may be
expanded to intercept text messages transmitted through wireless networks.
Michael Altschul from the Cellular Telecommunications and Internet
Association warned in an Aug. 15, 2001 letter that "[i]f the industry is not
provided the guidance and time to develop solutions for packet surveillance
that intercept only the target's communications, it seems probable that
Carnivore, which intercepts all communications in the pathway without the
affirmative intervention of the carrier, will be widely implemented."
Altschul was referring to deadlines pursuant to the Communications
Assistance for Law Enforcement Act (CALEA), which essentially requires
telecom providers to make their networks wiretap-friendly. EPIC's David
Sobel commented that these technical difficulties could open "the door to
the collection of communications of people who aren't even named in [court]
orders."

Read Robert O'Harrow Jr., "FBI's 'Carnivore' Might Target Wireless Text,"
Washington Post, Aug. 24, 2001, page E1 at
http://www.washingtonpost.com/wp-dyn/articles/A54155-2001Aug23.html

EPIC's latest filing in its Carnivore FOIA requests is posted under
http://www.epic.org/privacy/carnivore/discovery_motion.pdf

See Brian Krebs, "Group Asks Court To Get Info On FBI E-Mail Snooping Tool,"
Newsbytes, Aug. 10, 2001 at
http://www.newsbytes.com/news/01/168926.html

A press release from Rep. Barr on the Carnivore reporting amendment is
posted under
http://hillsource.house.gov/barr/newsdescr.asp?N=20010724085005

See Lisa M. Bowman, "House pulls Carnivore into the light," ZDNet News, July
23, 2001 at
http://www.zdnet.com/zdnn/stories/news/0,4586,5094558,00.html

See also "Congress Wants FBI Monitor," Associated Press, July 24, 2001 at
http://cbsnews.com/now/story/0,1597,303019-412,00.shtml

====================================================
[14] Privacy fears over Aussie universal bank sites
====================================================
Australian websites that purport to be one-stop shops for personal financial
transactions are heightening concerns about online privacy.

Several Australian companies, including Commonwealth Bank, AMP, Macquarie
Bank and others, have each created new services that permit customer
information to be aggregated. The idea is for individuals to access accounts
from different institutions (including brokerage houses and even airline
frequent flier mile programs as well as banks) from a single spot on the
World Wide Web. In addition to collecting all of this sensitive data in one
place, the scheme requires users to provide their names and passwords to
third parties upfront.

These systems have provoked concern from consumer privacy groups, who fear
that it will cause security problems. Chris Connolly from the Australian
Consumer Policy Centre said that "We've spent more than a decade telling
people not give anyone else their PINs, and now the Commonwealth, ninemsn
and AMP are saying it's okay. It raises legal questions, as under the
electronic funds transfer code of conduct you're not supposed to give your
PIN to a third party." Similarly, Delia Rickard from the Australian
Securities and Investments Commission charged that if "I were a consumer I
wouldn't be giving my PIN to an account aggregator without first checking
with my financial institution if they would consider that a breach of the
terms and conditions."

Indeed, it is unclear whether these practices would violate Australia's
upcoming privacy directive. These rules, which are scheduled to take effect
December 17, 2001, require companies to do several things, such as provide
public notices as to what is done how personal information is handled.
Similarly, the centralized banking website programs may not pass muster
under the Australian Internet Industry Association's self-regulatory privacy
guidelines, which are meant to patch perceived weaknesses in the directive.

See Caitlin Fitzsimmons, "PINs 'at risk' in online banking," Australian IT,
Aug. 14, 2001 at
http://australianit.news.com.au/common/storyPage/0,3811,2580393%5E442,00.htm
l

Additional details on Australia's online privacy directives are available in
"Australian privacy confusion escalates," ZDNet Australia, Aug. 17, 2001 at
http://www.zdnet.com.au/printfriendly?AT=2000020814-20255322

For more on Australian privacy self-regulation, read Selina Mitchell, "IIA
code to bolster privacy," Australian IT, Aug. 14, 2001 at
http://australianit.news.com.au/common/storyPage/0,3811,2581498%255E442,00.h
tml

====================================================
[15] Geolocation software threatens Net privacy
====================================================
New computer programs may be able to trace the geographic location of
Internet users. But is this technological innovation such a good thing?

That's what privacy advocates are wondering as several companies, including
Quova, are pushing ahead with the development of geolocation software.
Quova's GeoPoint technology consists of equipment software installed on a
gateway server through which users' computers must go to access a given
website. GeoPoint then collects visitors' Internet Protocol numbers and
locates them based on maps of some 4 billion IP addresses. According company
literature, this tracking can be done in real time and be broken down by
Latitude and Longitude as well as other geographic categories (including
Postal Code, Metro Area and so forth). These products are being pitched for
use in a variety of purposes, including region-based Internet content
blockers and targeted mass-marketing campaigns.

Some observers warn that the tracking capabilities of these products may
erode individual liberties both online and off. David Sobel from the
Electronic Privacy Information Center (EPIC-a GILC member) warned: "Right
now oppressive governments around the world are not able to keep information
away from their citizens as they had [before the Information Superhighway]."
As such, Sobel added, the uninhibited use of geolocation software may lead
to "a serious loss of one of the main benefits of the internet."

For more on Quova geolocation software, click
http://www.quova.com/service.htm

Read Matthew Leising, "New software pinpoints location of web users,"
Financial Times, Aug. 1, 2001 at
http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3T4GY9VPC&liv
e=true&useoverridetemplate=ZZZFKOXOA0C&tagid=ZZZC00L1B0C&subheading=informat
ion%20technology

====================================================
[16] Weak P3P privacy promoted in Windows XP
====================================================
The newest version of the world's most commonly used operating system is
getting more negative reviews from privacy advocates.

In a complaint filed in late July with the United States Federal Trade
Commission (FTC), a coalition of groups, including GILC members the
Electronic Privacy Information Center (EPIC), Computer Professionals for
Social Responsibility (CPSR) and the Electronic Frontier Foundation (EFF)
charged that Microsoft's Windows XP will seriously erode the privacy of
computer users. The complaint alleged that Microsoft's release of Windows XP
and related products such as Passport and Hailstorm will shift control of
sensitive information away from respective users to the company and will
allow the company to exchange this personal data among a whole host of
business partners. In addition, the filed papers suggested that Microsoft's
statements regarding the privacy implications of this scheme are misleading,
and drew attention to past flaws in Microsoft products that have allowed
"intruders unauthorized access to files, most recently ... the 'CodeRed'
virus." Thus, computer users may be coerced into providing sensitive details
about themselves to the software giant and be left without "meaningful or
effective control over the use of that information within Microsoft."

Afterwards, Microsoft made a few changes, including a requirement for
Passport affiliated merchants to utilize Platform for Privacy Preferences
software (P3P), which was developed by the software giant and is due to be
included within the latest version of the Internet Explorer browser.
However, these minor alterations did little to appease critics. Indeed,
EPIC, CPSR, EFF and a number of other organizations filed an amended
complaint with the FTC, charging that even with the changes, individuals who
wish to use many of XP's features (including Passport) must still give out
large amounts of personal information. The document also charged that
broader use of P3P would not be enough to protect user privacy, calling the
system "a complicated and confusing language ... that fails to provide any
assurance of compliance with baseline privacy standards, including the FTC's
own privacy standards." Furthermore, the groups suggested that Microsoft's
Kids Passport "collects unnecessary personally identifiable information"
from children, in violation of the US Child Online Privacy Protection Act
(COPPA).

These groups urged the FTC to launch a formal investigation of these
Microsoft activities and to order the company to take several key steps to
protect user privacy. These steps include ordering Microsoft "to block the
sharing of personal information among Microsoft areas ... absent explicit
consent," incorporation of techniques to "allow users of Windows XP to gain
access to Microsoft web sites without disclosing their actual identity," and
providing better notice to users.

An analogous filing may soon come from the United Kingdom, based on concerns
that XP may not comply with the US-European Union privacy safe harbor
agreement. That plan, among other things, requires US companies must notify
European users how their private data is being handled and allows concerned
individuals to limit access to such information. Yet despite these
difficulties, other companies have plans to create their own centralized
personal information storage services. For example, America Online is
working on a similar Magic Carpet program to store such tidbits as people's
names, addresses and credit card numbers.

The revised complaint over Windows XP privacy problems (in PDF format) is
posted under
http://epic.org/privacy/consumer/MS_complaint2.pdf

For more on possible British privacy complaints against Windows XP, see
Brian Krebs, "U.K. Resident To Name Microsoft in FTC Privacy Complaint,"
Newsbytes, Aug. 16, 2001 at
http://www.newsbytes.com/news/01/169104.html

Read Jonathan Krim, "Microsoft's One-ID Plan Again Draws Fire Over Privacy,"
Washington Post, Aug. 16, 2001, page E1 at
http://www.washingtonpost.com/wp-dyn/articles/A16617-2001Aug15.html

Read "Windows XP sparks privacy fears," Agence France Presse, Aug. 16, 2001
at
http://australianit.news.com.au/common/storyPage/0,3811,2605243%5E442,00.htm
l

For more on America Online's Magic Carpet identity harvesting service, read
Alec Klein and Ariana Eunjung Cha, "AOL May Launch Own Internet ID Service,"
July 26, 2001, page E1, at
http://www.washingtonpost.com/wp-dyn/articles/A56191-2001Jul26.html

Further details on how flaws in Microsoft products help computer bug
attacks, see "Net Intruders," Christian Science Monitor, Aug. 15, 2001
edition at
http://www.csmonitor.com/2001/0815/p8s2-comv.html

====================================================
[17] Report: webbug tracking is increasing
====================================================
Despite signs that show customer unease with current online privacy
environments, many e-businesses are continuing to track users through a
variety of means, especially webbugs.

For example, according to a new report by the Internet consulting firm
Cyveillance, the use of webbugs has gone up more than five-fold over the
past 3 years. Also known as "pixel tags," webbugs are tiny image files
embedded in webpages. They are used to identify and track computer users and
are often more difficult to block than cookies. According to Cyveillance
officials, many tested sites contradicted their own privacy policies by
using webbug tracking technology and passing along the collected information
to third parties. Indeed, webbug use has become so prevalent that software
(including Bugnosis) has now been developed to allow users to detect and
avoid them.

The report warns that as "public awareness levels begin to rise, the fact
that websites are collecting information from visitors without permission is
likely to generate more controversy." This argument is supported by other
recent studies from the Australian government and the financial analysis
firm Ernst and Young. Australian government researchers discovered that more
than 90 percent of surveyed individuals wanted "businesses to seek
permission before using their personal information for marketing." In
addition, "[t]he importance of good privacy practices to businesses that
deal with personal information was further reinforced with the finding that
'respect for, and protection of, my personal information' was, overall, the
aspect of service that mattered most to the largest proportion of
consumers." Similarly, the Ernst and Young paper found that such things as
online credit card fraud were among the most prevalent fears of would-be
e-shoppers, and that 80 percent of those surveyed said that they would be
more likely to visit a particular webpage if it used encryption or digital
certificates.

Read Alfred Hermida, "Web bugs spying on net users," BBC News, Aug. 16, 2001
at
http://news.bbc.co.uk/hi/english/sci/tech/newsid_1493000/1493152.stm

See also Stefanie Olsen, "Web bug swarm grows 500 percent," CNet News, Aug.
14, 2001 at
http://news.cnet.com/news/0-1005-200-6873202.html

Bugnosis is available at
http://www.bugnosis.org

The Australian government report on privacy attitudes is available via
http://www.privacy.gov.au/research/index.html#1.1

For more about the Ernst and Young paper, read Jennifer Foreshew, "Security
key to net success," Australian IT, Aug. 14, 2001 at
http://australianit.news.com.au/common/storyPage/0,3811,2579410%255E442,00.h
tml

====================================================
[18] New toilet emails medical info
====================================================
The latest threat to Internet privacy may be soon be in your bathroom.

Several companies, including U.K.-based Twyford Bathroom, have developed
computerized toilets that perform tests on human waste. In doing so, they
can determine whether users have certain health problems, including
pregnancy, low fiber diet, and various diseases. These toilets can then send
this medical information over the Internet to a variety of recipients, such
as supermarkets (should there be any nutritional deficiencies). As one
bathroom expert quipped, "Why shouldn't toilets be linked to the Internet?"

These devices have drawn considerable alarm from many quarters as an
apparent invasion of privacy. One leading gastroenterologist expressed fears
that the high-technology toilets would "result in a lot of unnecessary
further testing." It is also unclear whether the manufacturers have
developed any specific systems or rules to prevent privacy abuses. However,
for the time being, it may be some time before these digital bathroom
appliances become widespread, mainly because they are still very expensive.
Indeed, a single Twyford Bathroom VIP toilet costs a hefty US $5 000.

See Michael Y. Park, "More Than an Average Joe's 'John'," Fox News, Aug. 9,
2001 at
http://foxnews.com/story/0,2933,31677,00.html

=========================================================
	ABOUT THE GILC NEWS ALERT:
=========================================================
The GILC News Alert is the newsletter of the Global Internet Liberty
Campaign, an international coalition of organizations working to protect and
enhance online civil liberties and human rights.  Organizations are invited
to join GILC by contacting us at
gilc@gilc.org.

To alert members about threats to cyber liberties, please contact members
from your country or send a message to the general GILC address.

To submit information about upcoming events, new activist tools and news
stories, contact:

Christopher Chiu
GILC Coordinator
American Civil Liberties Union
125 Broad Street, 17th Floor
New York, New York 10004
USA

Or email:
cchiu@aclu.org

More information about GILC members and news is available at
http://www.gilc.org

You may re-print or redistribute the GILC NEWS ALERT freely.

To subscribe to the alert, please send e-mail to
gilc-announce@gilc.org

with the following message in the body:
subscribe gilc-announce

========================================================
PUBLICATION OF THIS NEWSLETTER IS MADE POSSIBLE BY A
GRANT FROM THE OPEN SOCIETY INSTITUTE (OSI)
========================================================


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