Posted at 10:35 p.m. PST Tuesday, February 9, 1999
The Pentium III's job I
Ahead of 'rollout,' Intel will meet privacy groups over
serial numbers
BY TOM QUINLAN
Mercury News Staff Writer
Hundreds of software and hardware companies will spend the next
two weeks extolling the abilities of Intel Corp.'s Pentium III
processors to handle vast amounts of audio and video data in
record time.
But Intel's marketing prowess will be tested this time around,
because more attention is being given to the inclusion of a serial
number in the Pentium III than to the technological advances in this new processor that should
improve everything from games to speech recognition.
The official -- and lengthy -- ''rollout'' of the Pentium III will begin Feb. 17, when Intel showcases
the software and hardware peripherals designed to exploit the chip's ability to handle multimedia
data of all types -- including video, digital images, speech, sound, and graphics. On Feb. 24, PC
companies will release new computers built around the chip.
The more interesting event may be one Intel hadn't originally scheduled. This Friday the company
will be meeting with a number of ''privacy'' groups, including the American Civil Liberties Union
and the Center for Democracy and Technology, as part of its ongoing effort to quell a protest
against the use of Processor Serial Numbers in every Pentium III.
The PSN is a unique number generated by the Pentium III processor. It is intended to add a layer
of security for individuals and business that want to use the Internet or internal networks for
conducting electronic commerce or transferring personal information back and forth. The PSN
identifies the system that's being used -- allowing a business, for instance, to ascertain that it's
sending information to a computer user authorized to receive it.
Privacy and consumer advocates worry that the PSN will also compromise computer users by
broadcasting their identity over the Internet. They've called for a boycott of Intel products. And in
recent weeks, many computer companies have decided to ship their products with the serial
number turned off.
Hoped for better
That's certainly not the reaction Intel was hoping for.
With hundreds of software companies ready to introduce programs crafted for the Pentium III,
PC manufacturers were counting on the chip to fuel sales of a new line of cutting edge computers
that promised breathtaking performance at a premium price.
Systems from Hewlett-Packard Co., IBM, Compaq Computer Corp., Dell Computer Corp.,
Micron Electronics, and NEC/Packard-Bell will be built around the Pentium III's multimedia
features. The so-called Katmai instructions in the new chip also take full advantage of the growing
opportunities for high-speed Internet access.
Most of the early systems using the Pentium III would be loaded for bear, with 128MB of RAM,
3D graphics boards with a minimum of 8MB of RAM, built-in audio and DVD players. Prices will
fall in the $2,500 to $3,000 range.
As it turns out, many of these same companies -- HP, Dell, Micron Electronics and Compaq
Computer Corp. -- will also turn off the PSN number in their Pentium III designs. Intel now
supports that position, even though its original plan was for computers to ship with the PSN
enabled.
Most companies will disable the PSN through changes to the computer's BIOS -- the embedded
software that directs the PC's internal operations -- to mask the PSN. Some others, however, will
include a software utility that can turn the number on or off.
''You wonder if Intel ever asked anybody before they went ahead and launched this program,''
noted Richard Doherty, founder of the market research firm Envisioneering Inc. ''They hold
seminars on everything, but they don't tell anyone about this. It's amazing.''
Now there are fears that the controversy may keep the Pentium III from jump-starting new
product lines.
''The improvement in its ability to handle multimedia data is really dramatic,'' Doherty said. ''This
is performance that actually does what a consumer wants.''
And some are even questioning whether Intel will bring the current Pentium III to market at all.
Privacy concerns
Although Intel has privately told PC manufacturers that it has no intention of permanently disabling
or removing the PSN numbers, the company is concerned that the privacy issue might spur either
Congress or a federal agency such as the Federal Trade Commission to seek authority over
products like the Pentium III.
''Intel really wants to make sure that federal government doesn't get involved in regulating this
area,'' noted Rob Enderle, an industry analyst for the San Jose-based market research firm Giga
Information Systems.
If it can't reassure privacy groups that the PSN is harmless, Intel might even delay introduction of
the chip while it devises a version that eliminates or disables the security number, Enderle
suggested.
But few computer manufacturers expected Intel to give up so easily.
''A lot of Intel's future plans require the PSN to be there,'' an executive at one computer company
noted. ''They don't have any intention of removing that number from the processors.''
While he wouldn't confirm any specific meeting between Intel and privacy organizations, Intel
spokesman Tom Waldrop that ''we have met, and will continue to meet, with a number of
organizations. That will be ongoing.''
''We've been talking to these groups for a long time,'' Waldrop noted. ''They indicated that they
would be more comfortable with a system that let the user decide that they wanted to opt in rather
than having to opt out, and so we're doing that.''
But that may not be enough.
Electronic Privacy Information Center and JunkBusters are still issuing calls on their Web sites for
a boycott of Intel products.
And even organizations that have not joined the boycott are looking for something more than a
security number that's turned off.
''Certainly that's a better option then having it turned on at the start,'' said Deirdre Mulligan, staff
counsel at the Center for Democracy and Technology, ''but we don't think it's necessary that we
have to have security that puts privacy at risk.''
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