Another major threat to privacy from The Corporations ;-)
And yes, Google has been asked about their capability to read your
files, copied from your hardisk via Google Desktop, and they openly
stated that while they may not be doing this now their Privacy Policy
does not disallow it. In other words, and creepily, they know about
the issue and want to reserve the right to read your files in the
future.

"Your files searchable from any computer; Government welcomes Google's
new feature

It appears that controversy over Google and its services and offerings
just keep coming. Google has released a new version of its Google
Desktop local search application this week. However, what sets this
latest release from Google's previous version is that the new desktop
search copies known document formats from your computer over to
Google's servers. Google says that the feature is designed to be able
to help you search for your documents from anywhere -- provided you
log in with the account that's associated with the files.

The Electronic Frontier Foundation (EFF) cites this new feature as
being extremely dangerous to consumers. Since documents and personal
information will be on Google's servers, it will allow government
officials to demand that Google hand over information. EFF says:

Unless you configure Google Desktop very carefully, and few people
will, Google will have copies of your tax returns, love letters,
business records, financial and medical files, and whatever other
text-based documents the Desktop software can index. The government
could then demand these personal files with only a subpoena rather
than the search warrant it would need to seize the same things from
your home or business, and in many cases you wouldn't even be notified
in time to challenge it.

According to government laws and acts, privacy for online email and
stored information is very limited and only protects consumers in
certain areas. Under most circumstances, information is surrendered to
government officials when requested. Privacy concerns are on high
alert with Google's new Google Desktop. EFF says that the copying
feature can be disabled but is difficult to get to and in most cases,
users won't even realize that their files are being copied.

Upon close examination, Google's privacy policy does not restrict it
from actually scanning the files that it copies. Although it is not
performing file scans now, Google has not ruled out the possibility
that it will not do so in the future for the purposes of producing
targeted advertisements. No response from Google so far about the
concerns being brought up about its new Google Desktop tool.  If
you're looking for a nice, lightweight alternative to Google Desktop,
you may wish to try Copernic. "

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