Data Miners Dig a Little Deeper

Michelle Kessler & Byron Acohido:

When customers sign up for a free Hotmail e-mail account from Microsoft, they’re required to submit their name, age, gender and ZIP code.

But that’s not all the software giant knows about them.

Microsoft takes notice of what time of day they access their inboxes. And it goes to the trouble of finding out how much money folks in their neighborhood earn.

Why? It knows a florist will pay a premium to have a coupon for roses reach males 30-40, earning good wages, who check their e-mail during lunch hour on Valentine’s Day.

Microsoft is one of many companies collecting and aggregating data in new ways so sophisticated that many customers may not even realize they’re being watched.

FBI Plans New Net-Tapping Push

Declan McCullagh:

The FBI has drafted sweeping legislation that would require Internet service providers to create wiretapping hubs for police surveillance and force makers of networking gear to build in backdoors for eavesdropping, CNET News.com has learned.

FBI Agent Barry Smith distributed the proposal at a private meeting last Friday with industry representatives and indicated it would be introduced by Sen. Mike DeWine, an Ohio Republican, according to two sources familiar with the meeting.

Sensenbrenner on Immigration

Mark Leibovich:

In recent weeks, Mr. Sensenbrenner has refused to yield on anything, derided what he calls the “amnesty” of the Senate bill and warned that he is willing to walk away without a compromise. He says his views have been influenced by the flood of immigration-related cases coming through his office and what he sees as the failure of previous immigration reform efforts he has worked on.

He is known as one of the toughest negotiators in Congress, which invites another canine metaphor from a colleague. “Sensenbrenner is a pit bull,” says Representative Ric Keller, a Florida Republican on the Judiciary Committee. “And the Senate negotiators he’s up against are wearing Milk-Bone underwear.”

Sensenbrenner has been a powerful friend of many Non-Wisconsin special interests such as the recording industry.

Hilary Rosen Gets DRM Religion?

Eliot Van Buskirk:

Obviously, Apple has a business strategy that says “proprietary” works for them. The record companies, I think, have tried to convince Apple to open up their system. I don’t think that’s been successful. The choice now is to either go unprotected so everybody has the same shot and the market expands, or to continue down what I think is an unfriendly path for consumers and the industry, because I don’t think it’s growing as fast as it can.

I understand there’s a rabid philosophy on both sides of this to protect or not to protect … and I actually am not that black and white about it. I think if people want to protect their content, and want to have a DRM or a business model that limits its distribution, that’s okay. If others don’t want to, that’s okay too. That’s why I like Creative Commons. It’s all about choice. What I have focused on is what will most dramatically expand the music market at a time when device choices feel so limited and the service side is so underutilized.

Honda Plans Turbodiesel for US

Kathy Jackson:

John Watts, manager of Honda’s U.S. product planning, said Honda plans to introduce a clean-burning, 2.2-liter turbodiesel in the United States within three years.

“That 2.2 could probably crank out about 200 horsepower and about 220 (pounds-feet of) torque at little rpm,” he said at a press event here. “Vehicles like the Pilot (SUV) and Odyssey (minivan) are too big for a four-cylinder.”

Ted Levitt

Laurel Delaney:

One of my favorite people (minds) on the planet and the person who coined the term “globalization” died at age 81: Theodore Levitt. The reason why Professor Levitt became such a force in my life was because in the ’80s — before any individual or company was thinking about going global — he turned me on to the importance of looking at the world as your market. He also knew how to deconstruct and solve problems by asking the right questions. Something to this day I still find myself doing. Here are some things I will remember the most about Levitt:

• Harvard Business Review — He holds the record with Peter Drucker for publishing the most articles in HBR.

• What turned me on to Levitt — “The Globalization of Markets” and five other great articles authored by HBR talents.

Using the term “globalization” in a 1983 Harvard Business Review article about the emergence of standardized, low-priced consumer products. He defined that globalization as the changes in social behaviors and technology which allowed companies to sell the same products around the world.

AOL: “Certain Death or Free Plus Ads”?

Henry Blodget:

The WSJ reports that AOL is considering making online access to its service–including, importantly, email–free. (AOL email users currently have to pay for one of the company’s subscription plans, although much of the rest of the company’s content is already free.) Per the WSJ, this move would vaporize about one-quarter of the company’s revenue, or $2 billion. The company estimates that it would also result in the loss of 8 million paying subscribers.

Blodget also notes that Vonage’s recent IPO continues to be black comedy (public at 17, now 8.25 after just a month….