[ISN] Counterfeit Software, Digital Rights Management, and Security

From: InfoSec News (isn@private)
Date: Wed Nov 05 2003 - 01:15:44 PST

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    Windevnet Security
    http://www.windevnet.com
    November 4, 2003
    
    Counterfeit Software, Digital Rights Management, and Security
    by Jason Coombs
    
    Copy protection always fails for one simple technical reason: Anything
    that exists can be copied. Even if it only exists in the memories of
    its original creators or past users, if it was created once it can be
    created again. Anything that can be engineered can be reverse
    engineered -- even if reverse engineering safeguards are built into
    the design, such as parts that self-destruct when exposed to light or
    air in order to prevent disassembly in the field. Software that
    self-destructs, self-deactivates, self-uninstalls, or calls home over
    the Internet to complain of a possible license violation are recurring
    themes in the battle to control unauthorized use or copying of
    commercial software products. Security schemes for digital media, such
    as DVD encryption, have similar themes.
    
    Copying protected intellectual property is considered illegal pirating
    when it is not allowed as "fair use" (e.g., under copyright law), it
    is a statutory infringement of another's rights when unauthorized
    benefits are derived from the copying (e.g., under trademark law), or
    counterfeiting when the quality and packaging of the copy are
    convincing enough to be publicly marketable as authentic. With so many
    misuses of intellectual property able to stem from the simple act of
    copying, digital expressions of such property are perceived as
    security "problems" for many companies that depend on copy controls
    and license restrictions for profits. Digital Rights Management (DRM)
    is supposed to solve these security problems, rein in widespread
    piracy and counterfeiting, and give artists and other creative
    geniuses whom society should reward generously with privileged,
    wealthy lifestyles the opportunity to hold out their hands expecting
    payment each time somebody views, hears, or uses one of their
    protected creations. While it has always appeared socially-absurd for
    concentrations of wealth and power to occur around certain icons,
    we've recently entered an era where many people expect technology to
    help concentrate such wealth and power rather than destabilize and
    decentralize it, and this expectation is a new technical absurdity.
    Technical capabilities that have always existed, such as the ability
    to rip, mix, burn, and share copies of entertainment media for
    entertainment purposes or counterfeiting are now capabilities of the
    prevailing marketplace.
    
    Anyone who sets out to engineer any sort of digital copy protection is
    attempting the impossible because to succeed, they must devise a
    method and apparatus that is able to prevent even a single copy from
    being made. As soon as one copy finds its way outside the confines of
    the copy protection system, infinite identical copies become possible.
    Additionally, a single near-perfect copy is often good enough, since
    infinite identical copies can then be made of it, and this poses an
    intractable problem for the recording and motion picture industries
    whose digital products must exit any copy protection device in analog
    form, as light and sound waves, in order to be enjoyed by paying
    consumers. If eyeballs or eardrums can intercept the analog media,
    then so can recording devices. Importantly, if people created the
    original work, and those people are allowed to live, then there is a
    real possibility that they will subsequently violate the terms of
    agreements not to recreate or copy the work or claim residual rights
    to the work as individuals.
    
    The motion picture industry is having serious problems with pirates
    using concealed video cameras to capture the analog output of movie
    showings in order to distribute digital copies that are good enough to
    entertain and can be shared at very low cost on the Internet. Many
    companies approach this subject from a damage control and containment
    viewpoint. For example, Microsoft uses a web crawler known as the
    Internet Scanning Tool that trolls web sites or auction postings
    looking for commercial offers of Microsoft software. Microsoft then
    finances the purchase of a sample of these products for theft
    detection and authenticity verification purposes. Other
    countermeasures are being used at the point of unauthorized copying,
    such as night vision goggles that help spot video cameras in use by
    members of a movie audience, a practice that raises real privacy
    concerns and compels us to question, or at least acknowledge, the
    inherently invasive character of commerce. While it may be reasonable
    for the motion picture industry to monitor the behavior of a movie
    audience when the audience travels to a semipublic venue to view a
    movie, it will never be reasonable, nor will it be technically
    possible, to monitor everyone, everywhere, at all times. We should not
    want this, but we've been so busy lately making commerce more
    automatic that we've been discounting (or ignoring) its potential
    risk.
    
    There is some reason to be concerned that initiatives such as Radio
    Frequency ID (RFID) tags for inventory control automation, Microsoft's
    Palladium (now known as Next Generation Secure Computing Base),
    Intel's processor ID feature, and every DRM solution that is ever
    devised may take us closer to a future in which it will seem
    reasonable to us that automated monitoring of every consumer should
    occur and is a reasonable, unobtrusive thing. As a society we've
    already decided that bits have value, are property, represent evidence
    of criminal behavior, bind us to each other under contract, and in
    many other ways shape or impact our lives. That bits can be copied
    endlessly at near-zero cost or effort, forged anonymously with
    perfection, intercepted with ease by unauthorized parties, data
    warehoused and data mined in perpetuity, for some reason doesn't cause
    us to question the wisdom of attributing to these bits the qualities
    of wealth, power, property, and market value.
    
    The security benefits of attaching RFID tags to all items of luggage
    checked by authorized airline passengers may outweigh the risk, or the
    cost, of leaving residual radio frequency trails of our subsequent
    ravels. A court order authorizing the use of a tracking device on a
    suspect's luggage may not be required if law enforcement officers
    don't have to do anything special to arrange for installation of the
    tracking device. The suspect's luggage simply goes in with all ports
    closed, unable to respond even to a ping request, and comes out with
    the equivalent of an open port with a microchip designed to receive
    and respond to incoming requests. If we capture radio signals and
    radiate responses without our knowledge or consent, it is difficult to
    imagine anyone arguing that we have not been compromised materially.
    Assurances that nothing bad will ever happen to us as a result of
    having RFID tags attached to our belongings and our persons sound
    hollow and are not very reassuring. Yet, the potential benefits for
    counterfeit prevention, DRM, and streamlined security (think automated
    employee identification at facility perimeters, or digital signature
    verification of every item in a crate full of software received by a
    retailer) may be substantial and compelling.
    
    Microsoft has a team of attorneys who assist in criminal prosecutions
    of counterfeiting or product theft cases who manage nationwide civil
    litigation against people who have been found to pass counterfeit
    merchandise. Microsoft is presently winning hundreds of thousands of
    dollars per violator in statutory infringement penalties against
    companies and individuals found to have passed counterfeit product by
    mistake. The key to winning these civil and criminal cases is showing
    that the software is in fact counterfeit. For this, Microsoft has a
    special business unit called the Product Identification Group. Compact
    Discs are manufactured with International Federation of the
    Phonographic Industry (IFPI) numbers that allow software vendors to
    determine whether or not the CD-ROM is counterfeit. If not
    counterfeit, the IFPI number indicates the point of manufacture and
    the intended distribution channel so that vendors can identify friends
    who are conspiring with foes to steal finished product or counterfeit.
    A counterfeiter who can fool Microsoft's Product Identification Group
    into accepting the product as authentic may be able to avoid detection
    and prosecution. Anyone who deals with Microsoft software product is
    obligated to educate themselves about the steps to identify
    counterfeit software. Click the "How to Tell" link at
    http://www.microsoft.com/piracy/.
    
    Product activation steps like Microsoft Product Activation (MPA) now
    provide a valuable anticounterfeiting feedback channel that, when
    combined with law enforcement or civil court action, enable Microsoft
    to identify compromised distribution channels. Over time, Microsoft is
    thus able to identify people who are untrustworthy by keeping track of
    data collected through the courts, cross-referencing and comparing
    this data to product activation, IFPI lists, and the identities of
    authorized resellers, distributors, manufacturing partners, and
    software duplication houses. Recently there has been a flurry of
    anticounterfeiting activity in the software industry, and some large
    arrests have been made by law enforcement involving millions of
    dollars' of counterfeit and stolen software products. Some of these
    cases are beginning to end up in my lap, as the defendants prepare for
    trial or try to understand how prosecutors came up with million dollar
    price tags for copies of obsolete or nonfunctioning product discs. I
    have learned while working on these cases that secrets are being kept
    that allow counterfeit detection even when IFPI numbers and other
    known anticounterfeiting measures are fooled. I have also learned that
    vendors are keeping lists of known bad people, and they use these
    lists to help decide whom to sue or file criminal complaints against.
    
    Anticounterfeiting and DRM can be complementary solutions to the
    "problems" of copying. Where DRM attempts to control the use of bits
    in a device, anticounterfeiting measures ensure that customers who pay
    to install bits into a device are paying for authentic merchandise
    and, thus, transmitting wealth signals back to the producer through an
    authorized distribution channel. Software vendors, in particular,
    could benefit from this blending of technologies. Will future versions
    of Windows (e.g., Longhorn) incorporate runtime anti-counterfeiting
    measures that help to prevent the installation of any software or data
    that doesn't bear some form of electronic authenticity mark? It's not
    hard to imagine that Longhorn may not be made available in an
    "upgrade" edition, being restricted instead to installation only on a
    Next Generation Secure Computing Base-compatible box. Perhaps PCs will
    begin to ship with the ability to blast RFID signals out at the
    physical media on which software and data are stored, listening for
    the required RFID response. Such "security" countermeasures may help
    to keep honest people honest, in a commercial sense, but they will
    never stop piracy. We should all be aware that these countermeasures
    may in fact stop counterfeiting. This is likely to be the political
    and legal leverage used to justify widespread adoption of the enabling
    DRM technology. Piracy may hurt businesses due to lost sales
    opportunities, but counterfeiting results in actual sales that enrich
    a criminal rather than a company. Recapturing that missed and diverted
    sales revenue is a high priority because the money from diverted sales
    can be proved in court and possibly reclaimed.
    
    People who advocate the widespread deployment of DRM technology and
    government support of it through law enforcement and civil court
    procedures make us feel like we only exist to be consumers and as such
    are subordinate to producers simply because we are below them in the
    economic food chain. Though this is arguably true, or at least we
    allow it to be true much of the time, when we're told the truth about
    how certain companies view us, we stop doing business with them and
    they disappear into bankruptcy with surprising speed. The company that
    succeeds in convincing us that the right of a producer to innovate and
    make profit through the ownership of intellectual property together
    take priority over certain human rights belonging to consumers will
    become a powerful and wealthy company indeed. When a company begins to
    abuse its power and economic status to the detriment of society, abuse
    legal procedures, exploit technical ignorance of elected officials,
    judges, and juries, and attempt to desensitize us to harmful things in
    order to advance business tactics, we should all begin to ask
    ourselves one thing: What can I do to stop this company, today?
    
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    Jason Coombs works as forensic analyst and expert witness in court cases
    involving digital evidence. Information security and network programming
    are his areas of special expertise. He can be reached at jasonc@private
    
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