BT "must face" legal action over Phorm

06 Jun 2008

Comments: 13

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BT has received criticism over its covert Phorm trial

BT should face legal action over its trial of Phorm's information-gathering technology, according to a leading IT lecturer.

Phorm collects data on the web habits of internet users and provides related advertising based on this feedback. About 30,000 users were involved in BT's testing of the technology between 2006 and 2007, but none of them were notified.

Further reading

An internal BT document, revealing details of the scheme, was published on the whistle-blowing site WikiLeaks earlier this week. The company should now face legal action, said Dr Richard Clayton, computer security expert at the University of Cambridge.

"The BT author seems delighted that only 15-20 people noticed this was happening and looks forward to a new system that will be completely invisible," Clayton told the BBC.

"This is not how we expect ISPs to treat their customers' private communications and since, not surprisingly, it is against the law of the land, we must now expect to see a prosecution."

Approximately 7,000 BT users had a cookie file downloaded to their computers without their knowledge, according to the leaked document.

The full report can be read here.

Reader comments

Deep Packet Interception On YOUR Broadband wire

"nothing new
Google's been doing this for years

Why is it an issue when BT trials it?

Posted by: mediamanic, 06 Jun 2008"

mediamanic, you're mistaken, while Google may offer you many free and Personally useful Options in return for your Informed and Explicit Consent to use YOUR datastream WHILE you're using these services,
BT and Phorm/webwise are doing something totally different, its not rocket science, read up on it "Deep Packet Inspection/Interception".

in effect , your paying your ISP for a Broadband connection, and (in this case) BT are accepting free Deep Packet Interception kit from Phorm to wiretap that paid-for Broadband connection to intercept your datastream and that of any website owners copyrighted content for profit.

This DPI kit sits directly on the other side of your Broadband wire, and YOU can NOT stop each and every bit of your data being pushed though that DPI kit, that is then collected, processed and finally then ,and only then, anonymised, or thrown away as its deemed to contain no valuable data to their profit line at the time.

the part no one wants to talk about OC, they will be collating all this data in to an
unlawful derivative work.

and they will not be paying a single penny to the owners of that copyrighted data for the use of that or the unlawful derivative work made from it.

under UK and EU law (and US law i assume), an "unlawful derivative work" is made without consent of the website content owner, or the ISP end user (should they refuse to take part in any trials, their datastream is still collected.and processed at the DPI, but dont then get sent and see the ads onscreen) for commercial profit, and without paying you any due fees then owed for unlawful use of your data property.

apparently these are some of the laws broken by not getting Express/Explicit, and informed consent of both parties (end user AND the website content owners)or paying the profits of this unlawful derivative work to the owners of the content.

Regulation of Investigatory Powers Act 2000

Privacy and Electronic Communications (EC Directive) Regulations 2003

Computer Misuse Act 1990

Torts (Interference with Goods) Act 1977

Copyright, Designs and Patents Act 1998 (see derivative works)

Data Protection Act 1998 (IP addresses are legally defined as personally identifiable data)

this basic laymans copyright might be helpful to outline the problems BT have placed themselves in during the prior trials without getting consent.

and dont forget many websites already have explicit terms against commercial use of the sites webpage content in their notices, potentially including this very site infact.

http://www.copyrightservice.co.uk/copyright/copyright_myths

you, and indeed any BT executives or Employees might want to be sure to read and understand these two parts as regards commercial piracy of copyrighted works such as the website content owners and the unique datastreams of the end users

http://www.opsi.gov.uk/acts/acts1988/ukpga_19880048_en_5#pt1-ch6-pb5-l1g107
"...
107 Criminal liability for making or dealing with infringing articles, &c (1) A person commits an offence who, without the licence of the copyright owner?
(a) makes for sale or hire, or
(b) imports into the United Kingdom otherwise than for his private and domestic use, or
(c) possesses in the course of a business with a view to committing any act infringing the copyright, or
(d) in the course of a business ?
(i) sells or lets for hire, or
(ii) offers or exposes for sale or hire, or
(iii) exhibits in public, or
(iv) distributes, or
(e) distributes otherwise than in the course of a business to such an extent as to affect prejudicially the owner of the copyright,
an article which is, and which he knows or has reason to believe is, an infringing copy of a copyright work.

..."

http://www.opsi.gov.uk/acts/acts1988/ukpga_19880048_en_6#pt1-ch6-pb5-l1g110
"...

110 Offence by body corporate: liability of officers (1) Where an offence under section 107 committed by a body corporate is proved to have been committed with the consent or connivance of a director, manager, secretary or other similar officer of the body, or a person purporting to act in any such capacity, he as well as the body corporate is guilty of the offence and liable to be proceeded against and punished accordingly.
(2) In relation to a body corporate whose affairs are managed by its members ?director? means a member of the body corporate.
...
"

Posted by: david  09 Jun 2008

BT Deep Packet Interception for commercial piracy is Wrong, stop it now

it does far more than that.

the sort version is 'they make an "unlawful derivative work",(that's a very bad thing) it's made without consent of the website content owner, or the ISP end user...'

the information is out there if you want to learn the truth if you want to read it.

basicly Phorm/Webwise (and NebuAd etc)is using Deep Packet Inspection/Interception Hardware kit that sits directly on the other side of your ISP payed for Broadband connection, (as does NebuAd in the US etc), you cant get away from it or hide from it, if you stay with the ISP thats installed and activated it.

Posted by: david  09 Jun 2008

Simply put...

For a very simple explanation of what's happening please have a look at:

www.donottrustwebwise.org

Posted by: Simon Lindon  08 Jun 2008

Nothing New?

Since when have google been spying on ALL my internet browsing?

I have done a search and it looks like "mediamanic" is working to promote Phorm as this user has posted the same comment elsewhere.

Posted by: stop spying on me  08 Jun 2008

Re google

Google can be blocked totally, it is optional to use it.

Phorm claims you can opt out, but read up on it, it can't be blocked totally, if you block the domains it uses, you lose the ability to browse on port 80.

Google offer an easy opt-out for webmasters, phorm want to use google's opt-out so you have to block google if you want to block them.

Google brings visitors to your site, phorm sends them to your competitors.

If you want a total opt-out as a webmaster and not have to block Google, phorm wants your personal details, the domains names involved and proof of ownership.

Spot any differences between these companies yet?

Yes, that's right, phorms claims of privacy and transparency are false.

Posted by: I like my privacy  08 Jun 2008

re: mediamanic

Google is not an ISP.

Posted by: Anonymous  07 Jun 2008

nothing new

Google's been doing this for years

Why is it an issue when BT trials it?

Posted by: mediamanic  06 Jun 2008

We know why there won't be any...

There won't be any legal action because the Home Office wants to sneak in its own system for spying on everything everyone does online.

Posted by: C Blackmore  06 Jun 2008

You don't pay Google ...

... to be your ISP do you?

Posted by: Mark  06 Jun 2008

Dont match this to google

Anyone who tries to match phorm to google has no understanding on how internet works.

Google do this with your consent on their website you go to others they don't.
Phorm is in your network you will go through phorm as a proxy server in fact you will be bounced 4 times before you arrive at the website you requested. This is so phorm can add special forged cookies on to your PC.
They then go about monitoring every page you visit like having someone sat at side of you reading everything you do. ON every website you visit not just google. To website owners google bring visitors to the site Phorm will be putting adverts to them to divert them to other websites.
Also they say you can turn this off but sadly you are still passing through the phorm proxy servers just you have their word for it that they will not process it. What a laugh since the leaked reports now proves you cannot trust their word. Phishing is an add on to try and sweeten the stalking customers on the web. The company Phorm had webwise.bt.com hosted till the fire at planet which is a hosting company listed in the top 10 world known phishing hosting companies.

Posted by: BT-shareholder  06 Jun 2008

BT compared to Google

Google ONLY do it when you visit their site, and with your knowledge.
BT et al, intend collecting ALL your personal data ALL THE TIME. Their original 'opt-out' was that you could opt-out of the ads, but never out of them collecting your information

Posted by: ColinWH  06 Jun 2008

Total disregard for the law!

As an Internet Service Provider BT are permitted to use their Deep Packet Inspection kit only for the maintenance and provision of an Internet Service. Using it to spy on their customers or for any kind of commercial reason breaches several UK privacy laws. Those found guilty of breaching any of these are looking at immediate custodial sentences - NOT fines - Prison!

Posted by: Delaney  06 Jun 2008

Nothing new?

Ah the usual spin usually heard from Phorm. If you do not like the fact google records what you search for you can use a different search engine. If you know the address without searching you can enter it in to the address bar with out google recording it. Have google put dpi kits in the isp's network? Thats the huge difference here, is that BT is allowing a company with rather colourful past as 121 media (rootkits merchant), putting dpi kit in to the heart of it's network. Which will spy on EVERY http web page you visit. Just so that it can build up a profile, just to serve you specific ads. So that BT can make a bit money out of YOU. You want to look at the patent and the recent analysis of webwise system to see the full extent of what it can do and the history of 121 media(Phorm).

Posted by: scooter  06 Jun 2008

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