|
Internet Use in U.S. Grows 15 Percent
According to a recent Wall Street Journal article, Internet use in the United States grew 15 percent in October to a record 115.2 million people. The Survey, conducted by Nielsen, holds the growth to be impressive given the several negative trends stemming from the slowing economy, the broad shakeout which has eliminated many dot-coms, and the stagnating market for the purchases of new personal computers. According to the survey, the average Internet user spent 19 hours, 2 minutes on line during October, compared with 17 hours, 30 minutes one year earlier.
Most Internet Users Unwilling to Pay for Content
A recent survey by the Pew Internet and Life Project found that only about 12 percent of Internet users agreed to pay for access to Web site content that was previously free. Remaining users found other free alternatives or opted not to obtain the content or service from an online source. Following the dot-com meltdown, many Internet service providers began charging for their content. This Pew survey found that Americans have quickly adjusted to the financial problems in the dot-com sector and generally still obtain the content and services they desire, while refusing to pay the content providers directly.
Software Companies Compete to Provide Saudi Internet Veil
Almost a dozen software companies are competing for a contract to help the Saudi Arabian government block access to Web sites that the government deems inappropriate for the nation's 500,000 Internet users. The Saudi contract, which analysts say could be worth several million dollars, would not only be important for its direct revenue but would also serve as a flagship that could help the winning company obtain similar contracts from other governments. Pornographic sites make up the overwhelming majority of the sites which the Saudi Arabian government wishes to block, distantly followed by sites that may be sensitive for political or religious reasons.
Anti-Terror Web Bill Raises the Stakes
Before the tragedies of September 11, individuals clever enough to infiltrate federal computer networks were considered "hackers." Following the recent passage of the USA Act, the individuals formerly known as "hackers" can now be labeled "cyberterrorists" and risk facing up to 20 years in prison. The bill grants U.S. law enforcement unprecedented freedom to eavesdrop with computer software on all forms of electronic communications and online activity. This new power has raised great concerns about the erosion of privacy by some analysts. Major provisions of the Act allow any U.S. Attorney to use the FBI's controversial Carnivore system, which can record visits to Web pages and scan e-mail messages without going to a judge. The Act also requires Internet service providers and phone companies to hand over all customer information without a court order if the FBI deems such information "relevant to an authorized investigation."
Ziff Davis Accidentally Posts Personal Information
About 12,500 magazine subscribers to the Ziff Davis computer magazines had their personal information accidentally posted on the Ziff Davis Web site recently. This information included hundreds of credit card numbers, names, and mailing addresses. An executive at one New York magazine firm called the error "a bush-league mistake for a major online publisher."
Playboy Says Customer Information Stolen
The online unit, "Playboy.com," of the nearly 50-year-old magazine sent an e-mail to customers that a hacker had accessed a portion of the company's computer systems. According to the e-mail, the intruder obtained customer information, including credit card numbers, and the company encouraged customers to contact their credit card companies to check for unauthorized charges. Playboy.com learned of the breach only after a person claiming access to its systems and customer information began e-mailing customers. The hacker in the e-mail claimed to have had access to the customer information since 1998.
New California Statute Protects Online Free Speech
A new California law written to shield individuals from retaliatory lawsuits from corporations that claim they have been disparaged online has been upheld again by a California court. These retaliatory lawsuits are referred to as "Strategic Litigation Against Public Participation" or SLAPP lawsuits. Under the new anti-SLAPP statute, defendants can force a corporation to show it has a "probability of success" on its claims of defamation. Legal experts say that this unusual statutory provision offers defendants a great deal of protection of free speech by making corporations come forward with facts that show a probability of success at the outset of litigation before attorney fees become too high. In a second defamation lawsuit by a drug research firm, a California court dismissed the lawsuit against a stockholder who posted negative comments about the company on an Internet chat room. The judge in the case said that the individual's comments were related to a matter of public interest and the company had no likelihood of prevailing in the case. Questions remain as to whether other states will adopt this California law to provide further protection of free speech to individuals.
Raising Money for Small Internet Companies
Experts say that in today's difficult economic environment, some basic rules for securing financial backing have changed and it is important for small e-businesses looking to raise capital to be aware of the changing times. One analyst at Venture Economics said that the small businesses need to be a little more inventive rather than just showing a PowerPoint presentation. Presentations to potential investors should be as interactive as possible, with certain buzzwords being avoided and any hype being eliminated. Cold calls to potential investors are almost universally shunned while a third-party introduction increases the odds 10 times of getting a foot in the door, according to this expert. Another reminder to Web entrepreneurs: "Business casual" attire is not acceptable anymore, with formal business attire being the safest and smartest approach when making a presentation. An analyst with the Gartner Group has stated that e-businesses need to target their markets more carefully by being industry specific and by looking at aiming their products at industry vertical markets such as medical billing, for instance, rather than using shotgun approaches. According to Venture Economics, it has become a great deal more difficult to raise capital, with venture capital investment of $7.7 billion in the third quarter of 2001 falling 73 percent from the third quarter of 2000. The final advice for small businesses looking to raise money is to channel their efforts carefully, target their products and services, and then carefully target the potential financiers.
Nintendo Wins Domain Name Lawsuit
In a recent case in Seattle, Washington, Nintendo was awarded $560,000 and 48 Internet domain names. Nintendo had filed a domain infringement suit against 22 defendants under the Anti-Cybersquatting Consumer Protection Act. The court ordered the domain names to be returned to Nintendo and awarded statutory damages ranging from $2,000 to $30,000 per name, for a total award of $560,000. Nintendo said this was its first mass domain name suit under the
ACPA.
Going Online to Buy a Sheep: U.N. Touts E-Commerce
According to a recent report released by the United Nations, electronic commerce has emerged relatively unscathed from the dot-com crash and the September 11 attacks and can be harnessed by developing nations to help these nations grow their economies in the future. The report acknowledges that global e-commerce is hard to measure, but growth in the sector can be expected to track the growing number of Internet users around the world with a report estimating that Web surfers will number 1 billion by the end of 2004 versus 513 million today. The U.N. report cited examples of what can be done by developing nations that are working hard to catch up with the industrialized world and benefit from e-commerce growth. One example cited was an Ethiopian Web site, "www.ethiogift.com" that offers Addis Ababa residents a choice of "medium sheep," "big sheep," or "very big sheep," available for purchase over the Internet with a credit card. A click of the mouse provides a zoom view of the "very big sheep", which are available for $97.00. The U.N. report says computers will continue to support rapid gains in productivity, as the cost of computing power keeps falling over the next several years, allowing businesses to keep finding new ways to cut costs via information technology.
Credits: Wall Street Journal; TechTV.com; NYTimes.com; USAToday.com; Wired.com; Newsbytes.com; Cnet.com; ecommercetimes.com.; Puget Sound Business Journal;
Reuters.com.
|
