"Palladium" and TCPA

Telepathic Industries Telepathic Industries" <A.Kelman at telepathic.com
Wed, 26 Jun 2002 08:45:08 +0100


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WIRED have just reported on Palladium

Microsoft Hard at Work on 'Vault'=20
Associated Press=20
6:41 a.m. June 25, 2002 PDT=20
WASHINGTON -- Microsoft has disclosed an ambitious new project to =
improve security by creating within its Windows software a virtual =
"vault" where customers would conduct electronic transactions and store =
sensitive information.=20

The effort, called "Palladium," would require consumers to buy new =
computers and other devices equipped with ultra-secure computer chips =
from Intel and Advanced Micro Devices, which already are involved in the =
project, or other companies.=20

      =20
          =20

      See also: .  Signs of 'Trustworthy Computing'=20
            .  Bill/Steve's Sexcellent Adventure=20
            .  Super-Secure Linux, Inch by Inch=20
            .  MS Security Plan: OK, Kind Of=20
            .  EarthLink's Passwords Are Naked=20
            .  Give Yourself Some Business News=20
            .  Read more Technology news=20

        =20
          =20

       =20


The project's success also depends on broad consumer adoption of such =
devices, since these highly secure computers could safely exchange =
information only among themselves.=20

Microsoft said the technology, which stemmed from early work by its =
engineers to deliver digital movies that couldn't be pirated, won't be =
available for at least 18 months. Company officials have told other =
executives in private briefings they do not expect to see mainstream =
products for at least five years.=20

"We're so early in the process, we're really just drawing the road map," =
said Mario Juarez, who is running the project for Microsoft. "This won't =
happen tomorrow or next year."=20

The project was first reported by Newsweek, although Microsoft officials =
have discussed their efforts privately for months in meetings with =
technology and civil liberties groups in Washington and elsewhere.=20

Some industry experts were skeptical of Microsoft's chance for success.=20

"If this works, it will be the first time in the history of computing =
that it works," said Bruce Schneier, a cryptography expert and author of =
Secrets & Lies, Digital Security in a Networked World.=20

"Lots and lots of encryption is broken all the time because it's done =
wrong," Schneier said. "The odds are actually zero this will be secure." =


David Farber, the Federal Communications Commission's former chief =
technologist, said he was "somewhat satisfied" with Microsoft's plans, =
but he will watch closely to ensure the company doesn't try to use =
Palladium to control the world's software markets.=20

"One has to keep their feet to the fire on how they use it," said =
Farber, who testified against Microsoft during its antitrust trial. =
"Right now, I don't see any signs there's any devious plot."=20

Supporters said the technology, to be offered as an option in an =
upcoming version of Windows, would be able to distinguish safe software =
from data containing viruses or other malicious computer code. The =
technology could be turned on and turned off. Customers could store =
within this part of Windows personal details, such as financial or =
medical records, that is encrypted and otherwise inaccessible even from =
other software running on the computer.=20

"Users can be assured that your intentions are properly carried out," =
Juarez said. "No one can masquerade as you. They're not on your =
computer."=20

Microsoft's efforts are similar to those of the Trusted Computing =
Platform Alliance, an industry group also working on new hardware =
technology to let computers distinguish "trustworthy" software. IBM has =
already shipped new laptop computers featuring such security chips.=20

Under Palladium, Intel and AMD, the world's largest chipmakers, will =
redesign computer processors to include cryptography features. Palladium =
also will require changes to video and keyboard technologies to ensure =
that a customer's typed information is displayed without changes on the =
screen. That would require billions of dollars in new equipment upgrades =
by consumers, corporations and governments.=20

Further, since a consumer's personal information will be scrambled =
within a vault and tied to a specific computer chip, that information =
could not readily be stored elsewhere in case of disaster or if the =
computer fails.=20

Microsoft also acknowledged that it hasn't resolved sensitive issues of =
permitting access by government with a court order to a person's =
encrypted data. The FBI has indicated it rarely encounters scrambled =
information during investigations, but making such technology as =
ubiquitous as Windows could invite use by criminals or terrorists.=20

"We recognize that something like this needs to be done responsibly," =
Juarez said.=20

Microsoft's name for its efforts, Palladium, comes from the statue of =
Pallas Athena, which was believed to protect the ancient city of Troy =
from invaders. In modern parlance, a palladium is considered a guarantee =
of integrity.=20


Alistair Kelman
Telepathic Industries Limited
37 Station Road
London NW4  4PN

Tel: 020 8202 8215 (direct)
Mobile: 07973 312513
Tel 020 8202 5675
Web: www.telepathic.com
E-Mail: A.Kelman@telepathic.com

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<DIV><FONT face=3DArial size=3D2>WIRED have just reported on =
Palladium</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial><STRONG>Microsoft Hard at Work on =
'Vault'</STRONG>=20
<BR></FONT><FONT face=3DVerdana,Geneva,sans-serif color=3D#000000=20
size=3D1><B>Associated Press</B> </FONT>
<P><FONT face=3DVerdana,Geneva,sans-serif color=3D#ff0000 size=3D1>6:41 =
a.m. June 25,=20
2002 PDT</FONT> <BR><FONT face=3DVerdana,Arial,Geneva,sans-serif =
color=3D#000000=20
size=3D2>WASHINGTON -- Microsoft has disclosed an ambitious new project =
to improve=20
security by creating within its Windows software a virtual "vault" where =

customers would conduct electronic transactions and store sensitive =
information.=20

<P>The effort, called "Palladium," would require consumers to buy new =
computers=20
and other devices equipped with ultra-secure computer chips from Intel =
and=20
Advanced Micro Devices, which already are involved in the project, or =
other=20
companies. </P>
<DIV align=3Dleft>
<TABLE cellSpacing=3D0 cellPadding=3D0 width=3D"50%" align=3Dleft =
border=3D0>
  <TBODY>
  <TR>
    <TD><IMG height=3D18 alt=3D" " hspace=3D0=20
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        <TBODY>
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          <TD><IMG height=3D1 alt=3D" " hspace=3D0=20
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            width=3D1></TD></TR></TBODY></TABLE><IMG height=3D5 alt=3D" =
" hspace=3D0=20
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      width=3D1><BR><B><I><FONT face=3DVerdana,Arial,Geneva,sans-serif =
color=3D#000000=20
      size=3D2>See also:</FONT></I></B>=20
      <TABLE cellSpacing=3D0 cellPadding=3D3 width=3D"100%" border=3D0>
        <TBODY>
        <TR vAlign=3Dtop>
          <TD><FONT face=3DVerdana,sans-serif =
size=3D1>=95&nbsp;</FONT></TD>
          <TD></FONT><FONT face=3DVerdana,sans-serif size=3D2><A=20
            =
href=3D"http://r.hotwired.com/r/wn_droplink/http://www.wired.com/news/bus=
iness/0,1367,51521,00.html"=20
            target=3D_top>Signs of 'Trustworthy =
Computing'</A></FONT></TD></TR>
        <TR vAlign=3Dtop>
          <TD><FONT face=3DVerdana,sans-serif =
size=3D1>=95&nbsp;</FONT></TD>
          <TD></FONT><FONT face=3DVerdana,sans-serif size=3D2><A=20
            =
href=3D"http://r.hotwired.com/r/wn_droplink/http://www.wired.com/news/mac=
/0,2125,53071,00.html"=20
            target=3D_top>Bill/Steve's <I>Sex</I>cellent=20
Adventure</A></FONT></TD></TR>
        <TR vAlign=3Dtop>
          <TD><FONT face=3DVerdana,sans-serif =
size=3D1>=95&nbsp;</FONT></TD>
          <TD></FONT><FONT face=3DVerdana,sans-serif size=3D2><A=20
            =
href=3D"http://r.hotwired.com/r/wn_droplink/http://www.wired.com/news/lin=
ux/0,1411,53004,00.html"=20
            target=3D_top>Super-Secure Linux, Inch by =
Inch</A></FONT></TD></TR>
        <TR vAlign=3Dtop>
          <TD><FONT face=3DVerdana,sans-serif =
size=3D1>=95&nbsp;</FONT></TD>
          <TD></FONT><FONT face=3DVerdana,sans-serif size=3D2><A=20
            =
href=3D"http://r.hotwired.com/r/wn_droplink/http://www.wired.com/news/bus=
iness/0,1367,47299,00.html"=20
            target=3D_top>MS Security Plan: OK, Kind =
Of</A></FONT></TD></TR>
        <TR vAlign=3Dtop>
          <TD><FONT face=3DVerdana,sans-serif =
size=3D1>=95&nbsp;</FONT></TD>
          <TD></FONT><FONT face=3DVerdana,sans-serif size=3D2><A=20
            =
href=3D"http://r.hotwired.com/r/wn_droplink/http://www.wired.com/news/pri=
vacy/0,1848,53208,00.html"=20
            target=3D_top>EarthLink's Passwords Are =
Naked</A></FONT></TD></TR>
        <TR vAlign=3Dtop>
          <TD><FONT face=3DVerdana,sans-serif =
size=3D1>=95&nbsp;</FONT></TD>
          <TD></FONT><FONT face=3DVerdana,sans-serif size=3D2>Give =
Yourself Some=20
            <A=20
            =
href=3D"http://r.hotwired.com/r/wn_droplink/http://www.wired.com/news/bus=
iness"=20
            target=3D_top>Business</A> News</FONT></TD></TR>
        <TR vAlign=3Dtop>
          <TD><FONT face=3DVerdana,sans-serif =
size=3D1>=95&nbsp;</FONT></TD>
          <TD></FONT><FONT face=3DVerdana,sans-serif size=3D2>Read more =
<A=20
            =
href=3D"http://r.hotwired.com/r/wn_droplink/http://www.wired.com/news/tec=
hnology">Technology</A>=20
            news</FONT></TD></TR><BR></TBODY></TABLE><IMG height=3D5 =
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    <TD>&nbsp;&nbsp;</TD></TR></TBODY></TABLE><BR>
<P>The project's success also depends on broad consumer adoption of such =

devices, since these highly secure computers could safely exchange =
information=20
only among themselves. </P>
<P>Microsoft said the technology, which stemmed from early work by its =
engineers=20
to deliver digital movies that couldn't be pirated, won't be available =
for at=20
least 18 months. Company officials have told other executives in private =

briefings they do not expect to see mainstream products for at least =
five years.=20
</P>
<P>"We're so early in the process, we're really just drawing the road =
map," said=20
Mario Juarez, who is running the project for Microsoft. "This won't =
happen=20
tomorrow or next year." </P>
<P>The project was first reported by <I>Newsweek,</I> although Microsoft =

officials have discussed their efforts privately for months in meetings =
with=20
technology and civil liberties groups in Washington and elsewhere. </P>
<P>Some industry experts were skeptical of Microsoft's chance for =
success. </P>
<P>"If this works, it will be the first time in the history of computing =
that it=20
works," said Bruce Schneier, a cryptography expert and author of =
<I>Secrets=20
&amp; Lies, Digital Security in a Networked World.</I> </P>
<P>"Lots and lots of encryption is broken all the time because it's done =
wrong,"=20
Schneier said. "The odds are actually zero this will be secure." </P>
<P>David Farber, the Federal Communications Commission's former chief=20
technologist, said he was "somewhat satisfied" with Microsoft's plans, =
but he=20
will watch closely to ensure the company doesn't try to use Palladium to =
control=20
the world's software markets. </P>
<P>"One has to keep their feet to the fire on how they use it," said =
Farber, who=20
testified against Microsoft during its antitrust trial. "Right now, I =
don't see=20
any signs there's any devious plot." </P>
<P>Supporters said the technology, to be offered as an option in an =
upcoming=20
version of Windows, would be able to distinguish safe software from data =

containing viruses or other malicious computer code. The technology =
could be=20
turned on and turned off. Customers could store within this part of =
Windows=20
personal details, such as financial or medical records, that is =
encrypted and=20
otherwise inaccessible even from other software running on the computer. =
</P>
<P>"Users can be assured that your intentions are properly carried out," =
Juarez=20
said. "No one can masquerade as you. They're not on your computer." </P>
<P>Microsoft's efforts are similar to those of the Trusted Computing =
Platform=20
Alliance, an industry group also working on new hardware technology to =
let=20
computers distinguish "trustworthy" software. IBM has already shipped =
new laptop=20
computers featuring such security chips. </P>
<P>Under Palladium, Intel and AMD, the world's largest chipmakers, will =
redesign=20
computer processors to include cryptography features. Palladium also =
will=20
require changes to video and keyboard technologies to ensure that a =
customer's=20
typed information is displayed without changes on the screen. That would =
require=20
billions of dollars in new equipment upgrades by consumers, corporations =
and=20
governments. </P>
<P>Further, since a consumer's personal information will be scrambled =
within a=20
vault and tied to a specific computer chip, that information could not =
readily=20
be stored elsewhere in case of disaster or if the computer fails. </P>
<P>Microsoft also acknowledged that it hasn't resolved sensitive issues =
of=20
permitting access by government with a court order to a person's =
encrypted data.=20
The FBI has indicated it rarely encounters scrambled information during=20
investigations, but making such technology as ubiquitous as Windows =
could invite=20
use by criminals or terrorists. </P>
<P>"We recognize that something like this needs to be done responsibly," =
Juarez=20
said. </P>
<P>Microsoft's name for its efforts, Palladium, comes from the statue of =
Pallas=20
Athena, which was believed to protect the ancient city of Troy from =
invaders. In=20
modern parlance, a palladium is considered a guarantee of integrity. =
</P></FONT><!-- end content --></DIV></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Alistair Kelman<BR>Telepathic =
Industries=20
Limited<BR>37 Station Road<BR>London NW4&nbsp; 4PN</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Tel: 020 8202 8215 (direct)<BR>Mobile: =
07973=20
312513<BR>Tel 020 8202 5675<BR>Web: <A=20
href=3D"http://www.telepathic.com">www.telepathic.com</A><BR>E-Mail: <A=20
href=3D"mailto:A.Kelman@telepathic.com">A.Kelman@telepathic.com</A></FONT=
></DIV></BODY></HTML>

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