[comp.org.eff.talk] How much is information really worth?

howell@bert.llnl.gov (Louis Howell) (09/10/90)

The lack of a consensus on ethical standards among computer users is
serious, but even if one existed I'm not sure how much effect it would
have on law enforcement, the media, and the public in general, who
wouldn't know what we were talking about.  The destructive hackers would
continue to get all the attention and thus color people's opinions of
the whole community.  All the agreement in the world won't help if the
regulations are being written by outsiders who don't know what they are
doing.

For example, our society still has not come up with any consistent way
to put a value on information.  Copyright and patent laws have been
tailored to the corporate arena, where typical infractions are large
enough to merit serious penalties, the legal costs are minor compared
to the other sums involved, and no lives are ruined in the process.
Attempts to apply this legal system to individuals and small software
sweatshops appears to be the moral equivalent of correcting a wayward
child by swatting him over the head with a 2-by-4.

In the recent Bell South fiasco, the company apparently put a value on
the stolen 911 document roughly equivalent to the entire cost of
producing it.  This strikes me as completely absurd, since only a copy
was made---Bell South did not lose the use of the document or suffer
any other financial loss as a result of the incident.  If you go by
some kind of "fair market value" criterion, the value would be closer
to that of a paperback book.  Even if trade secrets were involved, as
was originally thought, it still seems unfair to charge a thief with
the cost of the entire development project.  Some kind of lost revenue
standard seems more reasonable, but computing it could be a legal
nightmare.

For an item that is on the market, even valuing the information at
market value may not be appropriate.  To be specific, suppose some
software company spends about $100,000 to write a great C compiler.
They put it on the market for $1000, and it sells.  Now suppose some
high school hacker manages to snarf a copy of this compiler for his
own personal use.  He gets caught, and is charged with stealing it.
What now is the value of the object he has stolen (which can make a
big difference in court)?  To say $100,000 is absurd, since the
company still has the compiler.  Even $1000 may be too high, though.
The company has not lost $1000 in revenue because there is no way
the kid could have afforded to buy the program.  If he couldn't
steal it, he still wouldn't have bought it, so the effect on the
company is the same as if he had done nothing at all!  If the company
loses nothing, is it not better that the kid have the use of the
best tools for his work?

This argument won't work for any tangible object.  If a crook steals
a diamond ring, it is silly to argue that he would not have otherwise
bought it, since there is still a real diamond ring missing.  With
information theft, though, it's hard to say that anyone really loses.

I'm not seriously suggesting that this type of software theft should
be legal, since then there would be no way for the company to recoup
its investment.  There is no practical way to implement a socialist
"welfare distribution" system, since even those who could pay would
find it easy to obtain free copies of anything.  The trouble is in
trying to couple an economy of tangible goods that are expensive to
reproduce with one of intangible goods that can be reproduced for
almost nothing.  It's a tough problem, and I don't claim to have a
pat answer.

On the other hand, in my example the fact does remain that no one was
hurt.  The offense strikes me as more comparable to a minor case of
shoplifting than to the theft of a tangible $1000 object.  I certainly
wouldn't call it a felony, and seriously damaging the career of such
a talented kid would probably be a net harm to society.  I propose that
the appropriate penalty be just enough to "teach the kid a lesson",
but no more.

Any thoughts?  Just how much SHOULD information be worth?
--
Louis Howell

  "A few sums!" retorted Martens, with a trace of his old spirit.  "A major
navigational change, like the one needed to break us away from the comet
and put us on an orbit to Earth, involves about a hundred thousand separate
calculations.  Even the computer needs several minutes for the job."

gl8f@astsun7.astro.Virginia.EDU (Greg Lindahl) (09/11/90)

In article <1990Sep10.095011@bert.llnl.gov> howell@bert.llnl.gov (Louis Howell) writes:
>The lack of a consensus on ethical standards among computer users is
>serious, but even if one existed I'm not sure how much effect it would
>have on law enforcement, the media, and the public in general, who
>wouldn't know what we were talking about.  The destructive hackers would
>continue to get all the attention and thus color people's opinions of
>the whole community.

Actually, I think that most hackers DO have a fairly common ethical
standard, which criminals just don't share. We could force everyone to
sit through 6 hours of ideological instruction a day, and it's not
clear that a single crime will be prevented.

Effective law enforcement, on the other hand, could deter crime
without running all over our constitutional rights. I'm sure lots of
us have ideas on that topic. We don't have to throw away our rights
just to catch a few bad apples.

--
"Perhaps I'm commenting a bit cynically, but I think I'm qualified to."
                                              - Dan Bernstein

sblair@synoptics.com (Steven Blair) (09/11/90)

In article <1990Sep10.190108.29008@murdoch.acc.Virginia.EDU>,
gl8f@astsun7.astro.Virginia.EDU (Greg Lindahl) writes:
|> In article <1990Sep10.095011@bert.llnl.gov> howell@bert.llnl.gov
(Louis Howell) writes:
|> [BUNCH OF STUFF DELETED]...
|> 
|> Effective law enforcement, on the other hand, could deter crime
|> without running all over our constitutional rights. I'm sure lots of
|> us have ideas on that topic. We don't have to throw away our rights
|> just to catch a few bad apples.
|> 
|> --
|> "Perhaps I'm commenting a bit cynically, but I think I'm qualified
to."
|>                                               - Dan Bernstein


Define effective law enforcement. Perhaps, you meant Educated law
enforcement. Ask Steve Jackson, or many of the other *persecuted*
others whether they felt that the law enforcement was effective.

I submit that you're missing the whole point here. If law enforcement
was effective, the war on (drugs, alcohol, sex, prostitution, gambling)
would be won.

Absolute power corrupts absolutely is one result of a non educated
law enforcement community.

Deterence to crime is best shown in a Middle-Eastern country's
behavior:
break the law, loose a body appendage. That's deterrence to crime.

Unless you can crash educate the law enforcement authorities, you'll
never
achive any sort of parity.

As far as constitutional right, that's a joke. You no longer have any
--
Steven C. Blair		Network Operations Center
SynOptics Communications Inc. Mountain View, California
INTERNET: sblair@synoptics.com  sblair@excalibur.synoptics.com
PROBLEMS/EMAIL: HOSTMASTER@SYNOPTICS.COM postmaster@synoptics.com
---->>RIP Stevie Ray Vaughan 1954-1990 You Will Be *Missed*<<----

gl8f@astsun.astro.Virginia.EDU (Greg Lindahl) (09/11/90)

In article <1990Sep10.131335@synoptics.com> sblair@synoptics.com (Steven Blair) writes:
>
>Define effective law enforcement.

I mean law enforcement wich deters without violating constitutional
rights. I have no idea if this is posible; however, this is what the
law should be.

Note that there is no "War on Hacking" -- you're pretty much free to
do whatever you want in your basement, with no phone line ;-) The
serious computer crimes involve stealing classified secrets and money,
while happening to use a computer.

Feel free to try to figure out if the police can deter robbery; that
is a bit outside this groups' charter. We can, at the very least, help
the law remember the constitution.

--
"Perhaps I'm commenting a bit cynically, but I think I'm qualified to."
                                              - Dan Bernstein

brnstnd@kramden.acf.nyu.edu (Dan Bernstein) (09/13/90)

In article <1990Sep10.095011@bert.llnl.gov> howell@bert.llnl.gov (Louis Howell) writes:
> For an item that is on the market, even valuing the information at
> market value may not be appropriate.  To be specific, suppose some
> software company spends about $100,000 to write a great C compiler.
> They put it on the market for $1000, and it sells.  Now suppose some
> high school hacker manages to snarf a copy of this compiler for his
> own personal use.  He gets caught, and is charged with stealing it.

No. He hasn't stolen anything; he's only broken copyright law. Assuming
the company has registered the copyright, that's $50,000.

Our society values information quite highly.

---Dan

howell@bert.llnl.gov (Louis Howell) (09/13/90)

In article <29892:Sep1300:33:5290@kramden.acf.nyu.edu>,
brnstnd@kramden.acf.nyu.edu (Dan Bernstein) writes:
|> In article <1990Sep10.095011@bert.llnl.gov> howell@bert.llnl.gov (Louis
Howell) writes:
|> > For an item that is on the market, even valuing the information at
|> > market value may not be appropriate.  To be specific, suppose some
|> > software company spends about $100,000 to write a great C compiler.
|> > They put it on the market for $1000, and it sells.  Now suppose some
|> > high school hacker manages to snarf a copy of this compiler for his
|> > own personal use.  He gets caught, and is charged with stealing it.
|> 
|> No. He hasn't stolen anything; he's only broken copyright law. Assuming
|> the company has registered the copyright, that's $50,000.
|> 
|> Our society values information quite highly.

A fine that large is intended to deter a publisher from illegally reproducing
a document, a fairly large-scale enterprize.  It isn't fair to apply similar
penalties to individuals just because technological advances make it possible
for them to do something only an organization could do before.  I'm asking
what a reasonable penalty SHOULD be.

Anyway, has he really broken copyright law?  He hasn't tried to sell it
or otherwise distribute it, publicly perform it, or anything like that.
If I steal a book, and use (read) it, all I've done is steal a book.  I
haven't broken its copyright.  What's the difference?  Does it make a
difference to the law if he steals a physical floppy disk or if he copies
it?  How about if he steals it but doesn't run it?  It strikes me as odd
that copyright law could apply to making copies only for your own use.
It seems like yet another unenforcable law, since violations are difficult
to detect.

--
Louis Howell

  "A few sums!" retorted Martens, with a trace of his old spirit.  "A major
navigational change, like the one needed to break us away from the comet
and put us on an orbit to Earth, involves about a hundred thousand separate
calculations.  Even the computer needs several minutes for the job."