[iwar] [fc:Software.Licensing:.The.Hidden.Threat.to.Information.Security]

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Date: Wed, 23 Jan 2002 22:37:29 -0800 (PST)
Subject: [iwar] [fc:Software.Licensing:.The.Hidden.Threat.to.Information.Security]
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Software Licensing: The Hidden Threat to Information Security

Software licensing agreements may contain stipulations that could jeopardize
your network's security.
By Richard Forno
Jan 23 2002 6:04AM PT
<a href="http://www.securityfocus.com/columnists/55">http://www.securityfocus.com/columnists/55>

As security professionals and pundits, we often focus on the technical side
of security and are prone to overlooking quieter, but equally sinister,
security risks that affect the confidentiality, integrity, and availability
of our information assets.

We already know that nearly all software - from Microsoft Windows to
Netscape Communicator and even much shareware - is licensed, not sold, under
terms that indemnify the vendor from legal liability if the product fails,
crashes, causes other problems to a system, comes with a virus or causes any
other problem, now or in the future. Naturally, in the rush to deploy the
latest-and-greatest applications we rarely read the software license, and
when we do, itıs not done from a security perspective.

While software licensing - for better or worse - is not a new concept, what
got me thinking was how such devices, backed by federal and international
laws , pose information assurance risks to the enterprise. What concerned me
was a recent editorial on Freshmeat,net that pointed out that Borlandıs
Kylix/JBuilder software license had the following provision:

"12. AUDIT. During the term of this License and for one (1) year thereafter,
upon reasonable notice and during normal business hours, Borland or its
outside auditors will have the right to enter your premises and access your
records and computer systems to verify that you have paid to Borland the
correct amounts owed under this License and determine whether the Products
are being used in accordance with the terms of this License."

By accepting the terms of this agreement, the licensee signs over the right
to Borland to conduct random searches of the licenseeıs property and
networks. Note the complete absence of a non-disclosure agreement between
Borland (or its agents) and the software licensee for such audits. From an
information assurance perspective - let alone traditional corporate security
- I have a hard time granting a third party access to my networks and
systems in order to enforce their software license provisions. This would
offer Borland a right of search and seizure that even the government doesnıt
have. In the case of law enforcement, thatıs what search warrants are for -
only items covered in the court order are Œfair gameı to be searched, and
not anything the searchers want to go through. Borlandıs license thus
assaults the Constitutional principles of limited search and seizure that is
required by law enforcement entities.

Borland customers would be agreeing to open up a non-technical vulnerability
in their enterprise to allow untrusted outsiders free roam of their networks
and information assets in a manner that violates industry best security
practices. (Note: To Borlandıs credit, as of 16 January 2002, the firm is
reportedly revising the licensing terms for the aforementioned products in
the wake of the bad press the company has received.)

Licensing agreements may not only stipulate conditions that limit the
licenseeıs right to privacy, they may also infringe on the users right to
discuss the product. In a August 1999 PC Magazine article entitled ³The Test
That Wasnıt², lawyer Cem Kaner described how Oracle prevented the magazine
from publishing comparative reviews of its products. According to Kaner, the
magazine "planned to do something that has not been done in recent history:
a comparison of database performance on the exact same hardware. Because a
database software license prohibits publishing benchmark test results
without the vendor's written permission, negotiating for permission is
always a challenge...Oracle...formally declined to let us publish any
benchmark test results."

PC Magazine decided not to run the review. Around the same time, Network
Associates, maker of a major PC anti-virus software package, pulled a
similar stunt, with a license that read, in part,

The customer shall not disclose the results of any benchmark test to any
third party without Network Associates' prior written approval...The
customer will not publish reviews of the product without prior consent from
Network Associates.

The PC Magazine incident occurred in 1999, just after the Digital Milllenium
Copyright Act (DMCA) was signed into law. DMCA, for the uninitiated, is an
anti-consumer, anti-competitive, anti-knowledge law that was lobbied for by
the entertainment industry cartels under the guise of Œintellectual property
protection.ı The DMCA was ostensibly tabled in order to provide copyright
protection for e-commerce and electronic content providers. The reality is
that it is ripe with loopholes and words that run contrary to existing
federal laws, not to mention the Constitution. In fact, the DMCA appears to
many in the security community to be an attempt to muzzle criticisms of
vendors. In both the cases mentioned above, the DMCA was the justification
that Oracle and NAI could fall back on to deflect any public outcry over
these industry benchmarks.

Further, the Uniform Computer Information Transactions Act (UCITA) being
debated by state legislative bodies builds on DMCA and the existing
shrink-wrap software license provisions in a very sinister fashion. One
draft of the Act enabled software vendors to either remotely disable its
products and/or implement Œtime bombsı that would prevent its use until the
client renewed and paid for a new software license. That helps to explain
why you see vendors rushing to network-enable their products and assign
unique registration codes to their users - think of Microsoftıs 40-digit
Office and Windows XP Product Activation or the new online music initiatives
being pushed by the entertainment industry cartels. Not only does this mean
you are truly Œrentingı your software or music (when will there be an annual
subscription to Microsoft Windows?) but that a third-party will be able to
serve its own profiteering motives by potentially holding your information
and business operations hostage! Fred Langaıs column of January 21 in
Information Week expands on this potential scenario.

By agreeing to licenses under these conditions, users may unknowingly agree
that the products they use may self-destruct, create technical
vulnerabilities on their networks (perhaps for software license
verification) and that their information assets could be held hostage if
some bean-counter downstairs forgets to pay the annual operating system
license on the corporate desktops.

From an information assurance perspective, consider the grave community
ramifications if a vendorıs license prohibited industry reviews, benchmarks,
or analysis of its products. Would you buy a particular anti-virus product
if a magazine review said it couldnıt scan the horizon, let alone a computer
virus? Absent independent analysis from magazines and e-mail lists, the
computing public may never know what products are not only better than
others, but which ones are safer and more stable than others. Would you
knowingly deploy a product that continually ³calls home² to its vendor, or
allowed the vendor the ability to lock the product and hold your information
hostage? 

This explains the current rush by the software industry to restrict the
disclosure of software vulnerabilities...itıs less about making the Internet
safer than it is about molding public perception that a given vendorıs
products or services are as their marketing propagandists claim. In the
vendorıs ideal world, nothing should be declared a ³problem² with its
products until the vendor declares it a problem, which is exceedingly
unlikely to happen because it makes for bad PR.

From what Iıve seen, there are only a few cases (such as PC Magazine above )
where magazines have caved to software vendors and not run comparative
reviews of various products. To my knowledge, none of the published reviews
have been legally challenged ­ but they could have been. However, any
licensing provision that prohibits the independent analysis and discussion
of a productıs features ­ including its shortcomings - can, and should, be
legally challenged. Either that, or laws must be enacted that allow software
users to seek legal recourse if products are faulty or otherwise endanger
their information or the Internet in general. This was the recommendation of
a report issued by the US National Academy of Sciences last week.

As a security professional, I want ­ no, I NEED - to know the truth about
the products used by my enterprise, and that wonıt come from the major
software vendors. Objective security analysis and testing comes from
researchers around the world who arenıt under the Œthumbı of a software
vendor, and who are thus free to fold, spindle, and mutilate software and
publish their results. This is the Internetıs answer to the US Consumer
Product Safety CommissionŠ.and it has proven its worth to the Internet
community time and again.

Further Reading 

An Open Letter to Borland/Inprise Concerning Licensing

National Security and Individual Freedoms:
How the Digital Millenium Copyright Act (DMCA) Threatens Both

BadSoftware.Com ­ Legal analysis of DMCA, UCITA from Cem Kaner

Anti-DMCA.org 


Richard Forno is the coauthor of Incident Response (O'Reilly) and The Art of
Information Warfare (Universal). He helped to establish the first incident
response team for the U.S. House of Representatives, and is the former Chief
Security Officer at Network Solutions. Richard is currently writing and
consulting in the Washington, DC area. 

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