Edupage, May 05, 2003

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TOP STORIES FOR MONDAY, MAY 05, 2003
  Music Industry Explores Fighting Piracy with Malicious Software
  Study Addresses Linux Desktop Myths
  Government Issues New Rules to Increase Security
  Strong Start for Apple Music Store
  No Rebound for IT Job Market


MUSIC INDUSTRY EXPLORES FIGHTING PIRACY WITH MALICIOUS SOFTWARE
Record companies are investigating a number of technological
countermeasures to music piracy, some of which may never be used
because they are illegal themselves. Record companies have already
deployed "spoof" files--files that masquerade as music files but don't
do anything when downloaded--onto peer-to-peer networks, but they have
not had much impact on piracy. New tactics include so-called Trojan
horse files, which simply redirect file traders to sites where they can
purchase music, and "freeze" files, which lock up a file trader's
computer for a specified period of time. Another kind of program,
called "silence," is designed to look through a file trader's hard
drive for copyrighted music and delete any such files it locates. All
five of the major record labels are reportedly involved in developing
counterpiracy measures. None would reveal specifics, but
representatives of several firms involved said all of the measures
eventually deployed will be legal.
New York Times, 4 May 2003 (registration req'd)
http://www.nytimes.com/2003/05/04/business/04MUSI.html

STUDY ADDRESSES LINUX DESKTOP MYTHS
A new report from Gartner, Inc. attempts to debunk some myths
surrounding the use of Linux on the desktop. Michael Silver, author of
the report, stressed that the goal of the report is not to present a
negative image of Linux but to clarify the strengths and weaknesses of
Linux for different applications. Among the notions that the report
explains as myths are that Linux is free, that moving to Linux avoids
forced upgrades, that using Linux leads to longer hardware life, and
that skills easily transfer to Linux. Silver said there are potential
benefits to migration to Linux on the desktop but warned that the cost
savings likely will not be as great as many expect. Ted Schadler of
Forrester Research notes that significant growth is expected in the
Linux sector over the next three to five years, particularly for Asian
and Eastern European governments.
NewsFactor Network, 5 May 2003
http://www.newsfactor.com/perl/story/21431.html

GOVERNMENT ISSUES NEW RULES TO INCREASE SECURITY
The U.S. Treasury Department has issued final rules regarding the
Customer Identification Program (CIP), part of the USA Patriot Act. CIP
regulations require banks and other financial institutions to collect
certain information about customers, verify the information, and
compare it to lists of terrorists and terrorist organizations. Affected
institutions will have to develop processes for collecting and managing
the required information, ensure that institutional policies meet the
letter of the new rules, and train employees on the new procedures. The
Securities Industry Association expressed concern last fall that
financial institutions have enough time to adapt to the new rules, and
the government then decided to give companies until October 1 for full
compliance. The Securities and Exchange Commission (SEC) has also
enacted new rules concerning electronic communication with customers.
Securities firms must now maintain a log of all electronic
communication for six years. Although the SEC's rule is not specific,
one observer suggested that firms must keep a complete record not only
of e-mail but also of instant messages to be in compliance with the new
rule.
ComputerWorld, 2 May 2003
http://www.idg.net/ic_1311934_9677_1-5047.html

STRONG START FOR APPLE MUSIC STORE
Apple Computer's newly launched online music service--the iTunes Music
Store--saw more than one million downloads in its first week of
operation, the company said. The service, which is currently only
available for Macintosh computers, sells individual songs for 99 cents,
and many albums are priced at $9.99. Recording industry executives have
argued that sales of individual songs exacerbates the slowing sales of
albums. Apple noted, however, that half of the songs sold during the
first week were sold as part of albums. The store's launch coincided
with the release of iTunes 4, Apple's music application, and a slimmer
model of the iPod. According to Apple, downloads of iTunes 4 and sales
of the new iPod have been very strong in the week since the music
service was launched. Some analysts said Apple's early success
indicates a wide base of consumers who are willing to pay for legal
downloads of music.
CNET, 5 May 2003
http://news.com.com/2100-1027_3-999701.html

NO REBOUND FOR IT JOB MARKET
A new survey from the Information Technology Association of America
(ITAA) forecasts the hiring of fewer than 500,000 IT workers over the
next year. In 2000, the IT sector was predicted to add 1.6 million
jobs, and in 2002 the number was 1.1 million. Aside from weakness in
the high-tech economy, the ongoing shift of jobs overseas is adding to
the slowdown in hiring. The first quarter of 2003 saw a net increase of
86,000 IT jobs, but this was below the gain of 97,000 in the last
quarter of 2002, which had the slowest growth of the four quarters last
year. Harris N. Miller, president of the ITAA, said, "If the demand for
IT workers is an indicator of business growth, our survey results are
not encouraging."
Internet News, 5 May 2003
http://dc.internet.com/news/article.php/2201051

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