Data and Goliath (55 page)

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Authors: Bruce Schneier

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Forrester Research believes:
James Staten (14 Aug 2013), “The cost of PRISM will be larger than ITIF projects,”
James Staten’s Blog
, http://blogs.forrester.com/james_staten/13-08-14-the_cost_of_prism_will_be_larger_than_itif_projects.

Cisco reported:
Christopher Mims (14 Nov 2013), “Cisco’s disastrous quarter shows how NSA spying
could freeze US companies out of a trillion-dollar opportunity,”
Quartz
, http://qz.com/147313/ciscos-disastrous-quarter-shows-how-nsa-spying-could-freeze-us-companies-out-of-a-trillion-dollar-opportunity.

AT&T also reported:
Anton Troianovski, Thomas Gryta, and Sam Schechner (30 Oct 2013), “NSA fallout thwarts
AT&T,”
Wall Street Journal
, http://online.wsj.com/news/articles/SB1
000
1424052702304073204579167873091999730.

IBM lost sales in China:
Wolf Richter (17 Oct 2013), “NSA revelations kill IBM hardware sales in China,”
Testosterone Pit
, http://www.testosteronepit.com/home/2013/10/17/nsa-revelations-kill-ibm-hardware-sales-in-china.html.

So did Qualcomm:
Spencer E. Ante (22 Nov 2013), “Qualcomm CEO says NSA fallout impacting China business,”
Wall Street Journal
, http://online.wsj.com/news/articles/SB1
000
1424052702304337404579214353783842062.

Verizon lost a large German:
Mark Scott (26 Jun 2014), “Irked by NSA, Germany cancels deal with Verizon,”
New York Times
, http://www.nytimes.com/2014/06/27/business/angered-by-nsa-activities-germany-cancels-verizon-contract.html.

There’s more:
Stephen L. Carter (13 Feb 2014), “U.S. tech’s costly trust gap,”
Bloomberg BusinessWeek
, http://www.businessweek.com/articles/2014-02-13/nsa-snooping-backlash-could-cost-u-dot-s-dot-tech-companies-billions.
Claire Cain Miller (22 Mar 2014), “N.S.A. spying imposing cost on tech firms,”
New York Times
, http://www.nytimes.com/2014/03/22/business/fallout-from-snowden-hurting-bottom-line-of-tech-companies.html.

wrote to the Obama administration:
Ashley Lau (18 May 2014), “Cisco chief urges Obama to curb NSA surveillance activity,”
Reuters, http://www.reuters.com/article/2014/05/18/cisco-systems-nsa-idUSL1N0O40F420140518.

the NSA intercepts:
Sean Gallagher (14 May 2014), “Photos of an NSA ‘upgrade’ factory show Cisco router
getting implant,”
Ars Technica
, http://arstechnica.com/tech-policy/2014/05/photos-of-an-nsa-upgrade-factory-show-cisco-router-getting-implant.

Mark Zuckerberg said it best:
Dominic Rushe (11 Sep 2013), “Zuckerberg: US government ‘blew it’ on NSA surveillance,”
Guardian
,
http://www.theguardian.com/technology/2013/sep/11/yahoo-ceo-mayer-jail-nsa-surveillance.

trying to build a domestic cloud:
Cornelius Rahn (13 Sep 2011), “Deutsche Telekom wants ‘German cloud’ to shield data
from U.S.,”
Bloomberg News
, http://www.bloomberg.com/news/2011-09-13/deutsche-telekom-wants-german-cloud-to-shield-data-from-u-s-.html.

German courts have recently ruled:
Allison Grande (20 Nov 2013), “Google’s policies violate German privacy law, court
says,”
Law 360
, http://www.law360.com/articles/490316/google-s-policies-violate-german-privacy-law-court-says.

Facebook:
Loek Essers (18 Feb 2014), “Facebook must comply with German data protection law,
court rules,”
PC World
, http://www.pcworld.com/article/2098720/facebook-must-comply-with-german-data-protection-law-court-rules.html.

Apple:
Loek Essers (7 May 2013), “Berlin court: Apple’s privacy policy violates German protection
law,”
Macworld
, http://www.macworld.com/article/2038070/apples-privacy-policy-violates-german-data-protection-law-berlin-court-rules.html.

banning all US companies:
Der Spiegel (5 Aug 2013), “NSA blowback: German minister floats US company ban,”
Der Spiegel
, http://www.spiegel.de/international/business/german-minister-on-eu-company-ban-for-privacy-violation-a-914824.html.

Data privacy is shaping up:
Krista Hughes (27 Mar 2014), “Data privacy shapes up as a next-generation trade barrier,”
Reuters, http://www.reuters.com/article/2014/03/27/us-usa-trade-tech-analysis-idUSBREA2Q1K120140327.

We also don’t know:
Many US tech executives are worried about protectionism against their companies.
Stephen Lawson (8 Oct 2014), “Jitters over US surveillance could break the Internet,
tech executives warn,”
IT World
, http://www.itworld.com/security/440886/jitters-over-us-surveillance-could-break-internet-tech-leaders-warn.

stepping in to take advantage:
Georg Mascolo and Ben Scott (Oct 2013), “Lessons from the summer of Snowden: The
hard road back to trust,” Open Technology Institute, New America Foundation, http://www.newamerica.net/sites/newamerica.net/files/policydocs/NAF-OTI-WC-SummerOfSnowdenPaper.pdf.
Mark Scott (11 Jun 2014), “European firms turn privacy into sales pitch,”
New York Times
, http://bits.blogs.nytimes.com/2014/06/11/european-firms-turn-privacy-into-sales-pitch.

hundreds of non-US companies:
ProtonMail is a Swiss company that is offering e-mail services that are beyond the
reach of the NSA. John Biggs (23 Jun 2014), “ProtonMail is a Swiss secure mail provider
that won’t give you up to the NSA,”
Tech Crunch
, http://techcrunch.com/2014/06/23/protonmail-is-a-swiss-secure-mail-provider-that-wont-give-you-up-to-the-nsa.

A 2000 study found:
Jonathan W. Palmer, Joseph P. Bailey, and Samer Faraj (Mar 2
000
), “The role of intermediaries in the development of trust on the WWW: The use and
prominence of trusted third parties and privacy statements,”
Journal of Computer-
Mediated Communication
5, http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.2
000
.tb00342.x/full.

customers were willing to pay more:
Janice Y. Tsai et al. (Jun 2007), “The effect of online privacy information on purchasing
behavior: An experimental study,” 6th Workshop on the Economics of Information Security
(WEIS), Pittsburgh, Pennsylvania, http://weis2007.econinfosec.org/papers/57.pdf.

there are exceptions:
Cadie Thompson (7 Mar 2014), “Want privacy online? Start-ups bet users are ready
to pay,”
NBC News
, http://www.nbcnews.com/tech/security/want-privacy-online-start-ups-bet-users-are-ready-pay-n47186.

not tracking its users:
DuckDuckGo, http://www.duckduckgo.com.

Ello is a social network:
Sharon Profis (26 Sep 2014), “10 things to know about Ello, the ad-free social network,”
CNET, http://www.cnet.com/how-to/what-is-ello-the-ad-free-social-network.

10: Privacy

The most common misconception:
This article from 1979, for example, looks at privacy as a way to conceal facts about
oneself in order to inflate one’s reputation. Richard A. Posner (1979), “Privacy,
secrecy and reputation,”
Buffalo Law Review
28, http://chicagounbound.uchicago.edu/cgi/viewcontent.cgi?article=2832&context=journal_articles.

this makes no sense:
Daniel Solove regularly demolishes the “nothing to hide” argument. Daniel J. Solove
(Nov/Dec 2007), “‘I’ve got nothing to hide’ and other misunderstandings of privacy,”
San Diego Law Review
44, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=998565. Daniel J. Solove (15
May 2011), “Why privacy matters even if you have ‘nothing to hide,’”
Chronicle of Higher Education
, https://chronicle.com/article/Why-Privacy-Matters-Even-if/127461.

Google CEO Eric Schmidt:
Huffington Post (25 May 2011), “Google CEO on privacy (VIDEO): ‘If you have something
you don’t want anyone to know, maybe you shouldn’t be doing it,’”
Huffington Post
, http://www.huffingtonpost.com/2009/12/07/google-ceo-on-privacy-if_n_383105.html.

Schmidt banned employees:
Elinor Mills (14 Jul 2005), “Google balances privacy, reach,”
CNET
, http://news.cnet.com/Google-balances-privacy,-reach/2100-1032_3-5787483.html. Randall
Stross (28 Aug 2005), “Google anything, so long as it’s not Google,”
New York Times
, http://www.nytimes.com/2005/08/28/technology/28digi.html.

Facebook’s Mark Zuckerberg:
Bobbie Johnson (10 Jan 2010), “Privacy no longer a social norm, says Facebook founder,”
Guardian
, http://www.theguardian.com/technology/2010/jan/11/facebook-privacy.

bought the four houses:
Brian Bailey (11 Oct 2013), “Mark Zuckerberg buys four houses near his Palo Alto
home,”
San Jose Mercury News
, http://www.mercurynews.com/business/ci_24285169/mark-zuckerberg-buys-four-houses-near-his-palo-alto-home.

few secrets we don’t tell
someone:
Peter E. Sand (Spring/Summer 2006), “The privacy value,”
I/S: A Journal of Law and Policy
2, http://moritzlaw.osu.edu/students/groups/is/files/2012/02/5-Sand.pdf.

We use pseudonyms:
Judith Donath (2014),
The Social Machine: Designs for Living Online,
MIT Press, https://encrypted.google.com?id=XcgmnwEACAAJ.

a remarkable naïveté:
David Kirkpatrick (2010),
The Facebook Effect: The Inside Story of the Company That Is Connecting the World
, Simon and Schuster, https://www.facebook.com/thefacebookeffect.

Privacy is an inherent human right:
Eben Moglen defines privacy in three parts: “First is secrecy, or our ability to
keep the content of our messages known
only to those we intend to receive them. Second is anonymity, or secrecy about who
is sending and receiving messages, where the content of the messages may not be secret
at all. It is very important that anonymity is an interest we can have both in our
publishing and in our reading. Third is autonomy, or our ability to make our own life
decisions free from any force that has violated our secrecy or our anonymity.” Eben
Moglen (27 May 2014), “Privacy under attack: The NSA files revealed new threats to
democracy,”
Guardian
, http://www.theguardian.com/technology/2014/may/27/-sp-privacy-under-attack-nsa-files-revealed-new-threats-democracy.
George Washington University Law School professor Daniel J. Solove divides privacy
into six parts: “(1) the right to be let alone; (2) limited access to the self; (3)
secrecy; (4) control of personal information; (5) personhood; and (6) intimacy.” Daniel
J. Solove (Jul 2002), “Conceptualizing privacy,”
California Law Review
90, http://scholarship.law.berkeley.edu/cgi/viewcontent.cgi?article=1408&context=californialawreview.

Internet ethnographer danah boyd:
danah boyd (2014),
It’s Complicated: The Social Lives of Networked Teens
, Yale University Press, p. 76, http://www.danah.org/books/ItsComplicated.pdf.

When we lose privacy:
This dystopia has been explored in fiction. Dave Eggers (2013),
The Circle
, Knopf, http://www.mcsweeneys.net/articles/a-brief-q-a-with-dave-eggers-about-his-new-novel-the-circle.

You may know this feeling:
Helen Nissenbaum (Fall 2011), “A contextual approach to privacy online,”
Daedalus
11, http://www.amacad.org/publications/daedalus/11_fall_nissenbaum.pdf. Alexis C.
Madrigal (29 Mar 2012), “The philosopher whose fingerprints are all over the FTC’s
new approach to privacy,”
Atlantic
, http://www.theatlantic.com/technology/print/2012/03/the-philosopher-whose-fingerprints-are-all-over-the-ftcs-new-approach-to-privacy/254365.

Privacy violations are intrusions:
George E. Panichas (May 2014), “An intrusion theory of privacy,”
Res Publica
20, http://link.springer.com/article/10.1007%2Fs11158-014-9240-3.

strong physiological basis for privacy:
Peter H. Klopfer and Daniel I. Rubenstein (Summer 1977), “The concept
privacy
and its biological basis,”
Journal of Social Issues
33, https://www.princeton.edu/~dir/pdf_dir/1977_Klopfer_Rubenstein_JSocIssues.pdf.

Surveillance makes us feel like prey:
Peter Watts (9 May 2014), “The scorched earth society: A suicide bomber’s guide to
online privacy,” Symposium of the International Association of Privacy Professionals,
Toronto, Ontario, http://www.rifters.com/real/shorts/TheScorchedEarthSociety-transcript.pdf.

Studies show that we are:
Sidney M. Jourard (Spring 1966), “Some psychological aspects of privacy,”
Law and Contemporary Problems
31, http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=3110&context=lcp.
Stephen T. Margulis (Jul 2003), “Privacy as a social issue and behavioral concept,”
Journal of Social Issues
59, http://onlinelibrary.wiley.com/doi/10.1111/1540-4560.
000
63/abstract.

Surveillance strips us of our dignity:
James Q. Whitman (Apr 2004), “The two western cultures of privacy: Dignity versus
liberty,”
Yale Law Journal
113, http://www.yalelawjournal.org/article/the-two-western-cultures-of-privacy-dignity-versus-liberty.

It threatens our very selves:
Michael P. Lynch (22 Jun 2013), “Privacy and the threat to the self,”
New York Times
, http://opinionator.blogs.nytimes.com/2013/06/22/privacy-and-the-threat-to-the-self.

Oliver North learned this:
They were subpoenaed in the Iran-Contra affair. Michael Tackett (14 Feb 1987), “Computer
log tells Iran tale: Printouts give probers memos by key officials,”
Chicago Tribune
, http://articles.chicagotribune.com/1987-02-14/news/8701120148_1_nsc-staff-professional-office-system-profs.

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