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Palladium may police your motherboard 
Thursday, September 19 2002
by Bernie Goldbach


Most commentators have no real knowledge of Microsoft's Palladium, but several
articulate opinions of the initiative have emerged from the Irish Open Mailing
List. 



More has been written about Microsoft's Palladium (Pd) security initiative than
about any other computer security topic in 2002, and no wonder. Called "Pd" by
Microsoft, Palladium allegedly implements the Trusted Computing Platform Alliance
(TCPA) specification. But others say Pd is a digital Garda that arrests any
software attempting to use copyrighted content in an unapproved manner.



Quite simply, Pd is Microsoft's attempt to build a trusted computer. Different
users of a computer system would face limitations on their activities, while
working in separately defined areas of the computer's workspace. Because software
engineers cannot achieve this operating condition alone, Pd combines a
hardware/software solution to ensure that your computer plays only the content
for which you've paid. Pd equates to chip-enforced Digital Rights Management
(DRM).





Based on technical specifications studied by Open Mailing List members, Pd
affects the CPU, the motherboard chip set, input devices and video output
devices. Additionally, Pd calls for a tamper-resistant secure processor.
Microsoft intends to design a system so that hardware attacks do not result in
class breaks. This means even if one machine is compromised, it doesn't help
break into any others.





At the moment, Pd is merely a theory and would take years to reach production. It
requires major support from both Intel and AMD, and those chipmakers have a
history of non-cooperation. This technology may never make it to market, yet its
potentially far-reaching implications have already made it a hot topic of
debate.





There are features of Pd that tie programs and data to CPU and to the user, then
encrypt them for privacy. These same features would enhance the revenue line for
software companies, because when someone sells a Pd-equipped computer, he or she
will probably clear the keys first so that no one can read his files or use his
identity. This would also erase all software on the machine. Consequently, people
would not be able to resell software.





"Hasn't Windows XP already started the ball rolling with compulsory
registration and communication back to the Microsoft mothership?" asked Web
designer Jonathan Morton.





"Worse than that," said Peter Rose, CTO of TEKenable. "Windows XP Service
Pack 1 and Windows 2000 Service Pack 3 contain a new condition that asks you to
allow Windows to go and install future updates." These upgrades download
automatically without your intervention.





The insinuation that he couldn't control or transfer his software irritated Ross
Cooney, technical director at Antivirus.ie. He dropped Microsoft off his desktop
last month and now uses a RedHat system, OpenOffice and kMail.





"While Linux has a long way to go before it is a consumer product, I can see
the pace of growth increasing faster than Palladium," said Cooney.





No one on the Irish Open Mailing List thought Microsoft would code Pd to prevent
Linux from running. But those who have examined Microsoft's storehouse of patents
say there is an ominous dimension behind Palladium's development. Microsoft has a
patent for a DRM Operating System. If Pd successfully enters the market, the Open
Source Community will face difficult choices. Computers running Linux or any
other non-Microsoft operating system may not use the chip. When Pd is left off
the motherboard, copyrighted DVDs or music CDs will fail to play. If a Pd chip is
used, someone has to pay Microsoft for the rights, since it owns the patent.





"The laws and technology go further in limiting our ability to copy data than
copyright was ever meant to," claimed programmer Jon Hanna, "and do so at a
cost which will serve the interests of larger companies over small companies,
consultants and sole traders."





"Microsoft have to accommodate big media," said Ruth Maher from South
Tipperary, "because they can't afford to have media companies not make their
content available on Microsoft platforms."





At first glance, people do not trust Pd-equipped machines. They think Pd will
lead down a road where personal computers are no longer personal property.
Instead, PCs would be owned by subscription service accounts. "From what I have
heard from relatively trusted sources, I won't be putting it near my home
machine," said Tom Murphy, managing director at Spin Solutions in Dublin.





Tim Kirby, MD of Xi Creative in Dublin, believes the Pd discussion is yet another
affirmation for his switch to Apple. "I don't mind paying to buy or rent
software or equipment," said Kirby. "But losing control of the power and
flexibility of my personal computer would be too great a price to pay."