Anonymity on the Internet: A Fragile Concept as Revealed by Recent Events

Strategic Insights -

Fragility of online anonymity was highlighted in recent cases involving Raytheon employees whose business discussions on an internet forum were exposed due to the company's pursuit of company secrets. This has led to two worker resignations, sparking concerns about the ease with which anonymity can be compromised on the internet. Meanwhile, in other business news, U.S. manufacturers' after-tax profits took a significant tumble, CompUSA plans to introduce its own brand of PCs under $600, and Lucent Technologies has agreed to purchase Mosaix for $145 million.

Key Takeaways:

  • Raytheon's pursuit of company secrets led to the exposure of its employees' online discussions, resulting in two worker resignations and highlighting the fragility of anonymity on the internet.
  • The case illustrates how companies can use subpoenas to pierce online anonymity and gain access to sensitive information.
  • U.S. manufacturers' after-tax profits fell to an average 5.1 percent of sales in the fourth quarter of 1998, a decline from 6.2 percent in the preceding quarter and 6.0 percent in the fourth quarter of 1997.
  • CompUSA plans to introduce its own brand of PCs priced at under $600 in an effort to attract more first-time computer buyers.
  • Lucent Technologies will purchase Mosaix for approximately $145 million in stock to add software that manages telephone customer service.
  • CompUSA has been losing PC and software sales to direct sellers such as Dell Computer Corp. and Gateway 2000 Inc., as well as to companies selling over the internet.

Statistics:

  • U.S. manufacturers' after-tax profits fell to an average 5.1 percent of sales in the fourth quarter of 1998.
  • Profits on nondurable goods totaled $17.03 billion in the fourth quarter of 1998.
  • Profits on durable goods totaled a seasonally adjusted $28.48 billion in the fourth quarter of 1998.
  • Lucent Technologies agreed to pay 0.1927 share for each share of Mosaix, valuing it at $10.77 a share, a 29 percent premium to Mosaix's closing price Thursday.

Sources:

  • "ATLANTA Suit dismissed against Suburban Lodges" - Suburban Lodges of America Inc. (1998)
  • "Privacy Advocates Say Internet Anonymity Limited", Atlanta Journal-Constitution (1998)
  • "U.S. manufacturers' after-tax profits tumble", Commerce Department (1998)
  • "CompUSA plans brand of PCs under $600", CompUSA Inc. (1998)
  • "Lucent Technologies to purchase Mosaix", Lucent Technologies Inc. (1998)