-Caveat Lector-

http://www.theregister.co.uk/content/4/25940.html
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MS Palladium protects IT vendors, not you - paper
By John Lettice
Posted: 28/06/2002 at 10:27 GMT

Ross Anderson of Cambridge University has published a lengthy and informative
paper/FAQ on Palladium, the Trusted Computing Platform Alliance (TCPA), their
relationship and their implications. His take is that Microsoft's Palladium,
soft-announced by the company earlier this week, will be built on TCPA
hardware, adding some extra features as it goes along. Some of these
features, he notes, will the there in order to make the package look more
attractive, while some of the components of Palladium are already shipping in
Xbox and WinXP.

TCPA itself provides for a monitoring component to be included in future PCs.
In phase one Anderson expects it to be an add-on chip on the motherboard, but
further down the line it will be in the CPU. It's more crackable as an
add-on, as you could conceivably get around it by monitoring bus traffic, but
once it's in the CPU this becomes a lot harder, and he speculates about the
likely effects in the event of TCPA/Palladium being to all intents and
purposes uncrackable.

Aside from providing the music business with workable DRM, it would also
allow software companies to lock in their users. The more
Palladium/TCPA-enabled apps there are, the more this will be the case, and it
will also have the tendency to favour existing players while locking out new
entrants.

Anderson refers to the chip as the "Fritz" chip, after senator Fritz Hollings
who has been "working tirelessly" to make TCPA compulsory. On boot, Fritz
"checks that the boot ROM is as expected, executes it, measures the state of
the machine; then checks the first part of the operating system, loads and
executes it, checks the state of the machine; and so on. The trust boundary,
of hardware and software considered to be known and verified, is steadily
expanded. A table is maintained of the hardware (audio card, video card etc)
and the software (O/S, drivers, etc); if there are significant changes, the
machine must be re- certified. The result is a PC booted into a known state
with an approved combination of hardware and software. Control is then handed
over to enforcement software in the operating system - this is presumably
Palladium if your operating system in Windows."

Note the similarities here to what Xbox is doing already.

"Once the machine is in this state, Fritz can certify it to third parties:
for example, he will do an authentication protocol with Disney to prove that
his machine is a suitable recipient of 'Snow White'. The Disney server then
sends encrypted data, with a key that Fritz will use to unseal it. Fritz
makes the key available only so long as the environment remains
'trustworthy'. For this purpose, 'trustworthy' means that the media player
application won't make any unauthorised copies of content."

That's an example of the sort of procedure you'd encounter when the system is
applied to the entertainment business. However, TCPA-enabled applications
will likely have their security policies administered by remote servers, and
this has other implications. What you're allowed to read could be censored
for reasons other than copyright, so for example the scientologists might
"convince a court that a certain document should be banned [and] get an order
against a policy server." So to what extent could unpalatable and leaked
documents be banned or disappeared?

It will be possible to turn TCPA off, but if it achieves critical mass then
this will mean you don't have access to TCPA-enabled applications, which may
isolate you a tad. "If the applications that use TCPA / Palladium are more
attractive to the majority of people, you may end up simply having to use
them - just as many people have to use Microsoft Word because all their
friends and colleagues send them documents in Microsoft Word."

Anderson elaborates this, based on how this control has been used in the
past:

"TCPA appears designed to maximise the effect, and thus the economic power,
of such plays. Given Microsoft's record of competitive strategic plays, I
expect that Palladium will support them. So if you control a TCPA-enabled
application, then your policy server can enforce your choice of rules about
which other applications will be allowed to use the files your code creates.
These files can be protected using strong cryptography, with keys controlled
by the Fritz chips on everybody's machines. What this means is that a s
uccessful TCPA-enabled application will be worth much more money to the
software company that controls it, as they can rent out access to their
interfaces for whatever the market will bear. So there will be huge pressures
on software developers to enable their applications for TCPA; and if
Palladium is the first operating system to support TCPA, this will give it a
competitive advantage over GNU/Linux and MacOS with the developer community."

The most significant beneficiaries, he argues, will not be the content
industries, but the incumbents in the IT business. "I expect the most
significant economic effect will be to strengthen the position of incumbents
in information goods and services markets at the expense of new entrants.
This may mean a rise in the market cap of firms like Intel, Microsoft and IBM
- but at the expense of innovation and growth generally. The majority of the
innovations that spur economic growth are not anticipated by the
manufacturers of the platforms on which they are based; and technological
change in the IT goods and services markets is usually cumulative. Giving
incumbents new ways to make life harder for people trying to develop novel
uses for their products will create all sorts of traps and perverse
incentives."

TCPA could also, as argued here the other day, undermine the GPL. Modified
code would still be covered under the GPL, but " it will not make full use of
the TCPA features unless you have it signed, and have a certificate that
enables you to use the TCPA Public Key Infrastructure (PKI). That is what
will cost you money (if not at first, then eventually).

"Even if a philanthropist does a not-for-profit secure linux, the resulting
product would not really be a GPL version of a TCPA operating system, but a
proprietary operating system that the philanthropist could give away free.
(There are still issues about who would pay for use of the PKI that hands out
user certs.)"

"People believed that the GPL made it impossible for a company to come along
and steal code that was the result of community effort. That may have been
the case so long as the processor was open, and anyone could access
supervisor mode. But TCPA changes that. Once the majority of PCs on the
market are TCPA-enabled, the GPL won't work as intended."

He concludes: "TCPA and Palladium do not so much provide security for the
user, but for the PC vendor, the software supplier, and the content industry.
They do not add value for the user. Rather, they destroy it, by constraining
what you can do with your PC - in order to enable application and service
vendors to extract more money from you."

You have been warned. The full document, which you should read several times
a week until further notice, is available here. ®
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