November 27, 2024

Posts Comments

The ease of applying for a home loan

October 19, 2007 by

I’m currently in the process of purchasing a new house. I called up a well-known national bank and said I wanted a mortgage. In the space of 30 minutes, I was pre-approved, had my rates locked in, and so forth. Pretty much the only identifying information I had to provide was the employer, salary, and social security number for myself and my wife, as well as some basic stats on our investment portfolio. Interestingly, the agent said that for people in my situation (sterling credit, paying more than 20% of the down payment out of our own pocket), they believe I’m highly unlikely to ever default on the loan. As a result, they do not need me to go the trouble of documenting my income or assets beyond what I told them over the phone. They’ll take my word for it.

(In an earlier post, I discussed my name and social security number having been stolen from where they had been kept in Ohio. Ohio gave me a free subscription to Debix, which claims to be able to intercept requests to read my credit report, calling my cell phone to ask for my permission. Why not? I signed up. Well, my cell phone never buzzed with any sort of call from Debix. Their service, whatever it does, had no effect here.)

Obviously, there’s a lot more to finalizing a loan and completing the purchase of a home than there is to getting approved for a loan and locking a rate. Nonetheless, it’s striking how little personal information I had to divulge to get this far into the game. Could somebody who knew my social security number use this mechanism to borrow money against my good credit and run away to a Carribean island with the proceeds? I would have to hope that there’s some kind of mechanism further down the pipeline to catch such fraud, but it’s not too hard to imagine ways to game this system, given what I’ve observed so far.

Needless to say, once this home purchase is complete, I’ll be freezing my credit report. Let’s just hope the freezing mechanism is more useful than Debix’s notification system.

(Sidebar: an $18 charge appeared on my credit card last month for a car rental agency that I’ve never used, claiming to have a “swipe” of my credit card. I challenged it, so now the anti-fraud division is allegedly attempting to recover the signed charge slip from the car rental agency. The mortgage agent, mentioned above, saw a note in my credit report on this and asked me if I had “challenged my bank”. I explained the circumstances and all was well. However, it’s interesting to note that the “challenge”, as it apparently appears in my credit report, doesn’t have any indication as to what’s being challenged or how significant it might be. Again, the agent basically took my word for it.)

Filed Under: Uncategorized Tagged With: ,

Grokster Case Lumbers On; Judge To Issue Permanent Injunction

October 17, 2007 by

Remember the Grokster case? In which the Supreme Court found the filesharing companies Grokster and StreamCast liable for indirect copyright infringement, for “inducing” infringement by their users? You might have thought that case ended back in 2005. But it’s still going on, and the original judge just issued an interesting ruling. (Jason Schultz has a two part summary of the ruling.)

The issue now before the judge is what relief to grant the copyright-owner plaintiffs against StreamCast, which is the only defendant still standing. It’s apparently a given that the judge will eventually assess monetary damages against StreamCast. And you’d think these damages would be enough to kill StreamCast, so it’s not clear why StreamCast hasn’t just thrown in the towel, shut its doors, and handed over all its assets to the plaintiffs. Instead, StreamCast fought on, so the judge had to decide what kind of injunction, if any, to impose on StreamCast – that is, what rules would govern StreamCast’s future behavior.

The judge first considered the question of whether he could impose on StreamCast obligations (beyond payment of damages) that go beyond what the law requires of ordinary companies. Would he just award money damages and sternly command StreamCast not to break the law again; or would he go further and impose a permanent injunction? After a detailed legal analysis, he concluded that a permanent injunction was appropriate. StreamCast had actively promoted itself as a haven for infringement and “that bell cannot be unrung”.

The copyright-owner plaintiffs had asked for an injunction requiring StreamCast to apply all feasible anti-infringement technologies and to stop all infringment. StreamCast had built its own filtering technology which it said was effective enough, and much cheaper and more practical than commercially available alternatives.

The judge first rejected the plaintiff’s proposal that StreamCast be required to stop all infringement using its software. He recognized, correctly, that that would be impossible, so that such an injunction would be a death sentence for StreamCast.

Instead, the judge will require StreamCast to set up a filtering system that reasonably balances effectiveness and cost, with the strong emphasis on effectiveness. The precise details will be worked out with the help of a special master: an independent technical expert to be appointed by the judge. Which means yet more legal process to choose the special master, wait for the special master’s advice, and then order specific action from StreamCast.

All of this may be proper from a legal standpoint, but it seems unlikely to matter in practice. It’s hard to see how StreamCast can sustain a business given the legal and financial strain they must be under, and the likely ruinous monetary damages they’re still facing. I can understand why the plaintiffs might want to keep StreamCast on life support, in the hope of getting legal rulings that prove helpful elsewhere. But why does StreamCast keep fighting?

Filed Under: Uncategorized Tagged With: , , ,

Online Symposium: Future of Scholarly Communication

October 15, 2007 by

Today we’re kicking off an online symposium on The Future of Scholarly Communication, run by the Center for Information Technology Policy at Princeton. An “online symposium” is a kind of short-term group blog, focusing on a specific topic. Panelists (besides me) include Ira Fuchs, Paul DiMaggio, Peter Suber, Stan Katz, and David Robinson. (See the symposium site for more information on the panelists.)

I started the symposium with an “introductory post. Peter Suber has already chimed in, and we’re looking forward to contributions from the other panelists.

We’ll be running more online symposia on various topics in the future, so this might be a good time to bookmark the symposium site, or subscribe to its RSS feed.

Filed Under: Uncategorized Tagged With: , , , ,

attack of the context-sensitive blog spam?

October 8, 2007 by

I love spammers, really I do. Some of you may recall my earlier post here about freezing your credit report. In the past week, I’ve deleted two comments that were clearly spam and that made it through Freedom to Tinker’s Akismet filter. Both had generic, modestly complementary language and a link to some kind of credit card application processing site. What’s interesting about this? One of two things.

  1. Akismet is letting those spams through because their content is “related” to the post.
  2. Or more ominously, the spammer in question is trolling the blogosphere for “relevant” threads and is then inserting “relevant” comment spam.

If it’s the former, then one can certainly imagine that Akismet and other such filters will eventually improve to the point where the problem goes away (i.e., even if it’s “relevant” to a thread here, if it’s posted widely then it must be spam). If it’s the latter, then we’re in trouble. How is an automated spam catcher going to detect “relevant” spam that’s (statistically) on-topic with the discussion where it’s posted and is never posted anywhere else?

Filed Under: Uncategorized Tagged With: ,

Infinite Storage for Music

October 8, 2007 by

Last week I spoke on a panel called “The Paradise of Infinite Storage”, at the “Pop [Music] and Policy” conference at McGill University in Montreal. The panel’s title referred to an interesting fact: sometime in the next decade, we’ll see a $100 device that fits in your pocket and holds all of the music ever recorded by humanity.

This is a simple consequence of Moore’s Law which, in one of its variants, holds that the amount of data storage available at a fixed size and price roughly doubles every eighteen months. Extrapolate that trend and, depending on your precise assumptions, you’ll find the magic date falls somewhere between 2011 and 2019. From then on, storage capacity might as well be infinite, at least as far as music is concerned.

This has at least two important consequences. First, it strains even further the economics of the traditional music business. The gap between the number of songs you might want to listen to, and the number you’re willing and able to pay a dollar each to buy, is growing ever wider. In a world of infinite storage you’ll be able to keep around a huge amount of music that is potentially interesting but not worth a dollar (or even a dime) to you yet. So why not pay a flat fee to buy access to everything?

Second, infinite storage will enable new ways of building filesharing technologies, which will be much harder for copyright owners to fight. For example, today’s filesharing systems typically have users search for a desired song by contacting strangers who might have the song, or who might have information about where the song can be found. Copyright owners’ technical attacks against filesharing often target this search feature, trying to disrupt it or to exploit the fact that it involves communication with strangers.

But in a world of infinite storage, no searching is needed, and filesharers need only communicate with their friends. If a user has a new song, it will be passed on immediately to his friends, who will pass it on to their friends, and so on. Songs will “flood” through the population this way, reaching all of the P2P system’s participants within a few hours – with no search, and no communication with strangers. Copyright owners will be hard pressed to fight such a system.

Just as today, many people will refuse to use such technologies. But pressure on today’s copyright-based business models will continue to intensify. Will we see new legal structures? New business models? Or new public attitudes? Something has to change.

Filed Under: Uncategorized Tagged With: , ,