Monday, May 14, 2012

Social Impacts of Technology



This article looks at a range of issues relating technology to globalisation, community and power.  The article is primarily for your reflection. At the time of writing many of the things we discuss here are just developing, and as such are not extensively covered as yet in peer-reviewed journals which lag current affairs by two or more years given the publication schedules of the journals. As such the primary source of information here is the mainstream press (along with some not-so-mainstream sources).  The purpose is to give an overview of these emerging issues using a very broad brush approach. If you are really interested in one or more issues, then it is recommended that you research these more thoroughly using additional resources to those provided here. Please note, that while I personally strongly believe that computer technology has a place in our society and that the internet in particular provides a very empowering set of tools, there appears little doubt that this technology (in particular) is associated with a range of unresolved problems which seem to be primarily social and political in their nature.

At this point we will summarise the legal issues as they relate to internet use based on Schneider (2007).  Typically all businesses in a jurisdiction need to follow a set of laws or face fines and possibly jail. As to what laws they need to follow, traditionally these would be demarked by territorial borders. As such, geographical boundaries logically coincide with changes in culture and law and when crossing physical boundaries people receive notice that one set of rules is being replaced with another as physically moving geographically requires visas and checks. Thus people receive constructive notice of legislative change when crossing international boundaries, even if they are not informed specifically. Laws in the physical world normally only apply to people who live within the jurisdiction of the respective governments and legal systems (which may be inter-governmental). Thus setting up a business requires an awareness of local laws and businesses that trade between countries are required to become familiar with and to obey multiple sets of laws. Again in the physical world, effects are determined by proximity. For example, businesses with the same or similar names may cause problems if located in the same suburb, but possibly not if they are in different cities or states.

The right to create and enforce laws in a physical area derives from the mandate of those who are subject to them. Some cultures allow a high degree of autonomy and authority while others have strict limits on government authority.

Schneider (2007) argues that any business on the web is automatically a global business. This creates a number of complications, particularly for the small business that has maybe traditionally only operated in a local area. Once they create a web-page for the convenience of their customers, like it not, they are now a global business. Similarly, users of the web may be purchasing from businesses whilst unaware of that business’s physical location. For one thing, it is not always obvious that one is moving across jurisdictional boundaries (i.e there is no physical constructive notice). Also the fact that a person may be physically located in one jurisdiction whilst participating in transactions in another can lead to difficulties in determining which jurisdictional laws apply when there are disputes.  Courts may defend the laws of other jurisdictions according to a principle of judicial comity (friendly civility), but are reluctant to serve as forums for international disputes. 

Often a factor in any disputes will depend on the agreement, or contract, between the parties. Contracts consist of the following elements:

1.      An offer of a good or service at a specified price;
2.      An acceptance of that offer and its associated terms; and
3.      Consideration, the exchange.

An implied contract may exist if parties act as if a contract exists, even if no contract has been written or signed.  But we will see as we continue that contracts are only one possible complication in relation to operating over multiple jurisdictions. In fact, if the popular press is any measure then a large number of disputes are based around issues of copyright and also intellectual property (which also link to jurisdictional disputes).

Intellectual property includes all products of the human mind. This includes protections offered by the issuing of patents and granting of copyright. Copyright is granted by a government to the author or creator and gives the holder the sole right to print, publish or sell the copyrighted work. Copyright applies to books, music, artworks, recordings and architectural drawings, choreographic works, product packaging and computer software. Copyright does not include ideas, just their expression. Note though that under copyright laws an arrangement of facts could be considered subject to copyright, such as a directory of services that have been categorised. Considering these implications of copyright you may ask the legitimate question as to whether or not copyright is breached when you download a web page, as this produces a copy of the web-page (which is subject to copyright) on the client machine for you to view? However, under the law this is considered fair use of the copyrighted material. If you were to redistribute it then that would probably be another matter. In the USA fair use of copyrighted material (in the USA) includes: 
  
  • Copying work for use in criticism; 
  • Comment and news reporting; and 
  • Teaching, scholarship or research.  

Being so broad, this can be difficult to interpret and courts play a key role here. If you make fair use of a work, you must include a citation to the original work to avoid charges of plagiarism. One interesting and famous case in relation to copyright involved Napster. Napster provided a network that allowed millions of people to share music copied from CDs into MP3 format. Recording companies considered this copyright violation on a grand scale and sued Napster. Napster argued that it had only provided the “machinery” used in the violations, much as VCR’s allow the copying of videos.  Controversially the court found Napster was guilty of vicarious copyright infringement, in other words, that it was capable of supervising the infringing activity and that it profited from it.

Brafman and Beckstrom (2007) describe how the large record labels approached internet swapping of music using their traditional approach of bringing law suits against the companies associated with these activities. Napster is a case in point here. However, Brafman and Beckstrom (2007) describe how with the new technologies of the internet these strategies have not been effective; that for all the law suits they are bringing against piracy, there appears to be no material change in pirating.  Why is this? What has changed to make a time honoured business model suddenly so vulnerable? (and you may well also ask: Why doesn’t the music industry realise that this is not working? - Brafman and Beckstrom have an explanation for that too, but we will not go into that here).  Brafman and Beckstrom (2007) describe how the music industry was successful against Napster because it wasn’t decentralised and this allowed the labels to cripple the company’s central server and to pursue the corporate management in the court system. Following Napster Niklas Zennstrom released a peer-to-peer file sharing program called Kazaa.  Within 12 months 250 million copies of the program were downloaded and music swapping continued.  Kazaa had no active server that could be shutdown and Zennstrom used a range of strategies to minimise legal cases with the large labels (and also physically avoided being handed subpoenas by men on motorbikes working for the large labels).  When eventually the record labels sued Kazaa and its users, Zennstrom adopted a nomadic strategy and moved the organisation to Vanuatu outside of the jurisdiction of American and European legal systems.  Meanwhile the labels pursued legal action against Grokster and eDonkey. For every legal battle conducted by the labels new file sharing software was being released, and it was becoming more and more decentralised. Brafman and Beckstrom (2007) describe how this culminated with a program called eMule.  eMule is completely decentralised. It is open-source, there is no owner to sue, no-one even knows who started it. Brafman and Beckstrom (2007) quote Sam Yagan, head of eDonkey: “eMule is a rogue network, its open-source, there’s no way for them to pursue the entity eMule” (p. 25). Thus the record labels’ dogged determination to hold on to a traditional centralised business model seemed only to accelerate the development of the new decentralised model.  Now it appears that, perhaps out of sheer desperation, these organisations - being unable to sue the organisations that provide the software - pursue individual users as scapegoats for their legal ire.  It seems that they do this in the hope that these high profile cases will deter others in an apparent attempt to create a regime of fear so as to maintain their market power. We will see some examples of this in the following notes.

Case Studies

In the following sections we look at some case studies from the media (mainstream and not so mainstream) to gain a broad-brush picture of some of the issues associated with information and technology in recent years. We begin with intellectual property law and copyright.

IP and Copyright

In addition to controversy around copyright, there is the related concept of intellectual property.  A prominent case in this regard was the patenting by Amazon of a One-click Online Purchasing System.  Amazon sought, and received, patent rights for this technology which has been criticised as being a trivial and obvious technical approach to online purchasing.  Amazon used this patent to seek royalties from many other online businesses, a most famous case being against Barnes and Noble booksellers, but also issued a licence to Apple. The contentiousness of this patent has resulted in many suggesting that a reform of the patent system is necessary, as the justification for the patent system is to allow organisations a period of exclusive rights to an idea so as to recover the costs of development and to thus encourage investment in research and development (Engleman 2010).  The argument is that the system is being abused when trivial technologies, which required little development, are being patented.  Amazon’s patent was contested in 2006 by a disgrunted New Zealand customer who found evidence of the technology pre-existing the Amazon claim in 1997 (Engleman 2010).  This lead to a review of the patent, but ultimately resulted in only minor restrictions to its application (Crouch and Ratanen 2010). 
Before we move on to look at examples of copyright violation, it is recommended you watch the following video as an overview to these topics:


The video raises a couple of issues. One is the one-sided use of the law to defend the rights of large entertainment companies, which on one hand make liberal use of the ‘creative commons’ yet on the other hand ruthlessly pursue those who make use of their own work (which itself is often based on our cultural capital). The other issue is the use of legal mechanisms to ensure that the rights of these large organisations (as they see it) can be enforced across the globe, regardless of changes in jurisdiction. The use of trade agreements is the primary vehicle for this, and is perhaps considered efficient, as they circumvent much parliamentary debate and many democratic processes.  These treaties are highly contentious. In January 2012 protests were held in Poland following the UK and 21 other European Union member states signing an international copyright agreement treaty called ACTA (Anti-Counterfeiting Trade Agreement). The protesters believed that this treaty could be used as a basis for censoring the internet (a topic we will return to later) (Arthur 2012). Zappone (2012b) describes how a US sponsored Trans-Pacific Partnership may allow US domiciled businesses to deal with legal issues originating in Australia with legal processes operating outside of Australia.  This same treaty was the subject of a petition signed by 30 Australian organisations and sent to Federal Parliament on 14 March 2010 (AFTINET 2010).  The petitioners argued that, among other things, the treaty would allow US businesses to sue the Australian government if Australian legislation, such as environmental protections or other public interest laws, ‘harmed’ their investments here. 

This issue of international jurisdictions extending beyond or outside of a country no doubt came as a surprise for Hew Griffiths who must be one of the first people in the modern world to find himself sent off to stand trial in a country he had never visited for laws that apply only in that country and not his home country, where the so-called offences were committed (Nguyen 2007).  Hew was extradited for intellectual property crime; allegedly "cracking" copy-protected software and media products and distributing them for free.  At that time he was facing 10 years in jail in Nevada USA. Needless to say, this extradition practice has been questioned; NSW Chief Judge in Equity, Peter Young, is quoted as saying: "International copyright violations are a great problem. However, there is also the consideration that a country must protect its nationals from being removed from their homeland to a foreign country merely because the commercial interests of that foreign country are claimed to have been affected by the person's behaviour in Australia and the foreign country can exercise influence over Australia”. Peterson (2012) also questions this behaviour saying:  “The US will go to the ends of the earth to protect its big entertainment corporations […] The Americans have no qualms about interfering in our domestic politics and local legal systems”.  Peterson (2012) continues to describe how the US entertainment industry (through the Motion Picture Association) targeted the relatively small ISP iiNet to try and establish a binding common law precedent that would make ISPs responsible for the unauthorised file-sharing of their customers.

The latest move in this regard on the Australian landscape appears to be the introduction of the Cybercrime bill which is described by Bessant (2012) as follows:
“The Cybercrime Bill proposes to expand the power of local police and ASIO to access Australian citizens' digital communications, and to supply that data to foreign police and intelligence agencies. It does this by tying Australia to the European Convention on Cybercrime (2001) to which we recently became a signatory. The aim of that convention is to create a common legal framework that eliminates ‘jurisdictional hurdles’ and fosters co-operation for securing global protection against cybercrime.

Censorship

Another issue commonly in the press is the perception of attempts by governments to censor the internet.  China is famous for its “Great Firewall” that filters the information Chinese citizens can access. Branigan (2010) begins her article with:

“When vicious inter-ethnic violence broke out in Urumqi last year, Chinese authorities flooded the city with soldiers. But next came an unexpected step: they cut off internet access across the vast north-western region of Xinjiang. Controlling the information flow was as crucial as controlling the streets, it seemed.” 

Perhaps having witnessed the role of communications media in uprisings as part of the Arab Spring (Pollock 2011) governments are wary of online and mobile communications technology?  These concerns may also be behind a proposal by British Prime Minister David Cameron to restrict the use of services such as Facebook, Twitter and BlackBerry Messenger in the case of riots (Moses 2011). For their part, internet companies and internet users are wary of attempts to restrict access to the internet or other communications.  Wikipedia protested against proposed legislation in the US (refered to as SOPA or iPirate) aimed at online piracy. Wikipedia’s founder Jimmy Wales is quoted as saying: “we simply cannot ignore the fact that SOPA and PIPA endanger free speech both in the United States and abroad, and set a frightening precedent of Internet censorship for the world" (Rushe 2012).  In Australia censorship laws have been proposed aimed at blocking child-pornography and other illegal sites.  Critics argue that the legislation, and the processes around the filtering, are open to be used more broadly and may include legal sites also (Moses 2009).

If you are interested in learning more on the iPirate legislation see the following short video:


Politics, Power and Cyberwars

Wikileaks has played a role in the embarrassment of a number of political figures and nations through its release of diplomatic cables which were intended to be confidential (Associated Press 2010; Mann 2010). In 2010 Amazon (which hosted Wikileaks) shutdown the Wikileaks servers, apparently at the request of US government officials. PayPal and the credit card organisations (Visa and MasterCard) also stopped processing funds directed towards Wikileaks: and all this even though Wikileaks had not been convicted of breaking any laws (Townsend, Duval smith & Halliday 2010; Saul 2010).  As a result a minor cyberwar broke out whereby a group of hackers referred to as ‘Anonymous’ started denial of service attacks on the organisations that withdrew their services from Wikileaks bringing some of them down (Townsend et al 2010; Moses 2010).  This war has continued in relation to crackdowns on internet piracy resulting in the 2012 arrest of some Anonymous members (Associated Press, 2012).  However, cyberwar is not just conducted by disgruntled activist citizens, it appears that sovereign states also engage in these activities. Australian government sources suspect that Chinese intelligence agencies were involved in a hacking scandal in which the computers of federal ministers, including the Prime Minister, were accessed (Benson 2011). Benson (2011) states that one MP said they regularly received informal warnings from security agencies that "foreign" interests may be trying to access computers and telephones. However it seems that use of the Internet by national security agencies is not limited to interstate snooping, but also directed at citizens.  Lévesque (2012) quotes Joseph Fitsanakis as the co-author of a study into the use of the internet by intelligence agencies as follows:
“We explain that Facebook, Twitter, YouTube, and a host of other social networking platforms are increasingly viewed by intelligence agencies as invaluable channels of information acquisition. We base our findings on three recent case studies, which we believe highlight the intelligence function of social networking.”

However, Lévesque (2012) suggests the results of the study described by Fitsanakis are misleading.  She argues that the study leads us to believe that social media is solely an intelligence gathering tool, when other reports show that it is also used for the creation of fake identities in support of covert operations, thus such social media tools may also be used to spread propaganda or mis-information.

It seems that even this does not cover the complete extent of cyber snooping.  Millar (2010) discusses claims that Australian government departments were interfering with the opposition’s communications and email systems. But the most concerning claim in relation to the manipulation of information in domestic politics is the evidence that Fitrakis (2011) provides on how the electronic voting system used in the US during the 2004 elections were manipulated to distort the voting outcome so as to ensure a victory for President Bush.  There are also claims by the Iranian government that the US government has deliberately infected computers operated by the Iranian government with the Stuxnet virus in an apparent attempt to hamper the development and use of nuclear technologies (Dehghan 2012). This virus has also allegedly affected the oil export industry in Iran as well as the ability of everyday people to use fuel cards when filling vehicles.

Privacy and Personal Vulnerability

The next two issues we cover in this lesson are those of online privacy and personal vulnerability.  Online privacy is a topic that most active internet users have at least a passing familiarity with. Arthur (2012) summarises some issues including, smart phone apps that copy all your contact details (your friend’s names, emails and phone numbers), search engines that track the sites you visit even if you are not using that search engine, and the now familiar example of the supermarket identifying a teenage girl as pregnant from her purchases. Add to this the ability for mobile devices to track your physical movements over time and there seems to be little information about yourself that is not available for information collection (Arthur 2011).  However, a more sinister example of stores using your data against you is offered by some cases where Ikea is accused of illegal surveillance practices whereby they aimed to collect information on unhappy shoppers who were engaged in litigation with the company, and also its own employees (Chrisafis, 2012).  In fact, even if organisations do their best to try and not identify customers you may not be protected.  Chakrabortty (2010) describes how data provided by AOL to researchers, which was deliberately designed to protect the identity of individuals, was sufficient for an average person to identify at least some of the people whose data had been collected.  The ability to secretly record conversations using mobile technology is another area of concern - enough to lead some into purchasing,  and using, illegal devices which jam mobile phone use in a small local area (Grubb, 2012). Perhaps the recent evidence of illegal hacking by News corporation provides evidence that such fears are somewhat justified (Sabbagh & O'Carroll 2012).  Even legal searches of online data may be used to damage the reputations of people as in the case of an Australian employed as a nanny by British PM David Cameron (Levy 2012).  In this case, the article in the British tabloid Daily Mail seemed to take advantage of the employment relationship to a prominent British citizen to create sensationalised press.   This perhaps can be explained by the overall effect of the WWW on traditional print media business models as best explained elsewhere.

A final example for the collection and use of personal information is provided in a Wall St Journal article by Efrati and Clark (2012) where they discuss Google’s collecting of private data from Wi-Fi’s as they drove around streets and took photos for the Google Street View project. This lead to the company being fined for breaching privacy laws.
In relation to privacy there appears to be a kind of propaganda war developing between proponents of personal privacy and states in regard to the roll out of increasing powers of state surveillance (both legal and technical). These include allegations that the FBI created and distributed key-stroke recording devices to circumvent the need to obtain court orders to install spy software on personal computers. It also seems that that may have been done with collusion of at least some companies who produce and distribute virus checking programs (Jackson 2001).  Pressofortruth.tv released what appears to be a promotion video calling for action against the Cyber Intelligence Sharing Protection Act (known as CISPA) on April 27 2012. If you are interested a link is provided below (7.22 minutes):


Burghardt (2012) makes the following statements in relation to his concerns:

“From driftnet surveillance to data mining and link analysis, the secret state has weaponized our data, "criminal evidence, ready for use in a trial," as Cryptohippie famously warned.”

And:

“With the exponential growth of fiber optic and wireless networks, the mass of data which can be ’mined’ for "actionable intelligence," covering everything from eavesdropping on official enemies to blanket surveillance of dissidents is now part of the landscape: no more visible to the average citizen than ornamental shrubbery surrounding a strip mall.”

The “Report on the Surveillance society” produced for the British Information Commissioner in 2006 summarised a range of benefits and risks of surveillance (mostly risks).  One of their points was (Wood, 2006):  

“.. most profoundly, all of today’s surveillance processes and practices bespeak a world where we know we’re not really trusted. Surveillance fosters suspicion.  The employer who installs keystroke monitors at workstations, or GPS devices in service vehicles is saying that they do not trust their employees. The welfare benefits administrator who seeks evidence of double-dipping or solicits tip-offs on a possible ‘spouse-in-the-house’ is saying they do not trust their clients. And when parents start to use webcams and GPS systems to check on their teenagers’ activities, they are saying they don’t trust them either. Some of this, you object, may seem like simple prudence. But how far can this go? Social relationships depend on trust and permitting ourselves to undermine it in this way seems like slow social suicide” (pg 3).

A BBC News article summarising the report’s concerns and the Information Commissioner’s reaction is available here. There are also some who are concerned about the effects on individuals in the modern internet environment with its culture of constant communication.  However, this appears to be highly contentious, with strong views either way (Hughes, 2012). Perhaps evidence of people’s concern regarding the use of computers by children is provided by Richtel (2011) when he describes a school in Silicon Valley that avoids computers and technology, even though many of the students’ parents work in technology fields:

“While other schools in the region brag about their wired classrooms, the Waldorf school embraces a simple, retro look: blackboards with colourful chalk, bookshelves with encyclopaedias, wooden desks filled with workbooks and pencils.”

He quotes one parent as follows:

“At Google and all these places, we make technology as brain-dead easy to use as possible. There's no reason why kids can't figure it out when they get older.''

Society and Business

There are two remaining social aspects we identify here.  These, and many others, will be looked at again in other posts.  The first is the growing dependence individuals and institutions have on ICT for the day to day running of our affairs.  Examples of this vulnerability are provided by recent bank ICT failures. One serious failure at the NAB prevented customers from accessing their accounts for 2 days (and also appears to have not processed transactions associated with those accounts during that time) (Zappone, 2010).  This is not an isolated incident, as CommBank ATMs also went down recently (Zappone 2012). The final issue we look at here is in relation to the production of our high-tech gadgets and tools in sovereign states that do not have very strong labour movements or environmental protections.  This has been dominant in the mainstream press recently as a result of the efforts of Mike Daisey to publicise problems at Foxconn, the large factory that manufactures many of Apple’s products.  This has lead Apple to seek independent audits of conditions at the manufacturer (Garside, 2012). 

References        


Brafman, O & Beckstrom, A 2007, The Starfish and the Spider: The Unstoppable Power of Leaderless Organisations, Penguin.
 Guardian, 29 March 2012, viewed 1 April 2012.


Schneider, G. 2007. Electronic Commerce. Thomson.

Zappone, C 2012b ‘US Business Seeks Australian Legal Loophole’, The Age, 2 March, Accessed 2 March 2012. (NB: This article was removed from The Age website a few hours after being posted.)


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