A Green Way to Dump Low-Tech Electronics

This month, Edward Reilly, 35, finally let go of the television he had owned since his college days.

A pile of old circuit boards, dumped safely in Seattle.

Although the Mitsubishi set was technologically outdated, it had sat for years in Mr. Reilly’s home in Portland, Me., because he did not know what else to do with it, given the environmental hazards involved in discarding it.

“It’s pretty well known that if it gets into the landfill, it gets into the groundwater,” he said. “Its chemicals pollute.”

But the day after the nationwide conversion to digital television signals took effect on June 12, Mr. Reilly decided to take advantage of a new wave of laws in Maine and elsewhere that require television and computer manufacturers to recycle their products free of charge. He dropped off his television at an electronic waste collection site near his home and, he said, immediately gained “peace of mind.”

Over the course of that day, 700 other Portland residents did the same.

Since 2004, 18 states and New York City have approved laws that make manufacturers responsible for recycling electronics, and similar statutes were introduced in 13 other states this year. The laws are intended to prevent a torrent of toxic and outdated electronic equipment — television sets, computers, monitors, printers, fax machines — from ending up in landfills where they can leach chemicals into groundwater and potentially pose a danger to public health.

The Environmental Protection Agency estimates 99.1 million televisions sit unused in closets and basements across the country. Consumer response to recycling has been enormous in states where the laws have taken effect. Collection points in Washington State, for example, have been swamped by people like Babs Smith, 55, who recently drove to RE-PC, a designated electronics collection and repurposing center on the southern edge of Seattle.

Ms. Smith’s Subaru Outback was stuffed with three aged computer towers that had languished in her basement after being gutted by her teenage sons, who removed choice bits to build their own souped-up computers. “It’s what geeks do,” she said.

Since January, Washington State residents and small businesses have been allowed to drop off their televisions, computers and computer monitors free of charge to one of 200 collection points around the state. They have responded by dumping more than 15 million pounds of electronic waste, according to state collection data. If disposal continues at this rate, it will amount to more than five pounds for every man, woman and child per year.

Use of the drop-off points was so overwhelming at first that the Washington Materials Management and Financing Authority, which oversees the program, urged consumers to consider holding off until spring.

“We were getting 18 semi loads a day when the program first started,” said Craig Lorch, owner of Total Reclaim, a warehouse on the south edge of Seattle that is among the collection points.

Still, states that pioneered the electronic recycling laws report that consumer participation remains strong over time. Maine, which was one of the first to approve such a law, in 2004, says it collected nearly four pounds of waste per person last year.

“If you make it easy, they will recycle their stuff,” said Barbara Kyle, national coordinator of the Electronics TakeBack Coalition, a nonprofit group based in San Francisco. If products are recycled rather than dumped, parts of the machines are refurbished for new use where possible; if not, they are disassembled, their glass and precious metals are recycled, and the plastics, which have no reuse market, are often shipped overseas to developing countries for disposal.

The laws vary significantly from state to state. But in most, manufacturers are responsible for the collection and recycling system, although some will pay states or counties to handle the pickup. The newest laws tend to require recycling of a broader range of items, including printers and fax machines.

Many laws, including those for New Jersey and Connecticut and New York City (none of which are yet in effect) specifically ban residents from dumping electronics into the regular trash.

Least thrilled with the patchwork of laws are electronics manufacturers. “Our hope is there will be a national law before there is a law in every state,” said Parker Brugge, vice president for environmental affairs and industry sustainability for the Consumer Electronics Association, an industry advocacy group.

Piles of copper wiring collected at Total Reclaim.

Mr. Brugge said it was difficult for manufacturers to keep up with dozens of laws and rules, many of which they consider impractical. New York City, for example, is pressing manufacturers to agree to pick up at apartment buildings.

Manufacturers say a reasonable rate for collection and processing of waste is 25 to 30 cents a pound. Still it is more than they say they can recoup from reselling the metals they harvest, particularly for televisions.

Peter M. Fannon, the vice president for technology and government policy at Panasonic’s North American subsidiary, said his company would prefer a national law that would put local governments in charge of collection and the industry in charge of recycling.

“We think it is unreasonable that an individual industry be designated as trash collector,” Mr. Fannon said.

State lawmakers counter that they cannot afford to wait for a national bill. With constant upgrades in technological capability, they say, manufacturers build obsolescence into many of their designs, causing outdated electronics to become the bane of the waste system.

The E.P.A. estimates that 2.6 million tons of electronic waste were dropped into landfills in 2007, the most recent year for which data is available. Once buried, the waste leaches poisons like chlorinated solvents and heavy metals into soil and groundwater.

Recycling programs do not address the problem of electronics that are already leaching poison in landfills. Nor do they prevent the frequent shipment of plastic shells covered with chemical flame retardants overseas to poor and developing nations; once there, they are often incinerated, because they cannot be reused, and spew toxic chemicals into the air.

The Office of the Inspector General at the Justice Department has a continuing investigation into accusations that several federal prisons with electronics recycling contracts had used inmates to do the work without taking adequate safety precautions, exposing them to unhealthy levels of airborne particles.

Ultimately, said Ms. Kyle, coordinator of the Electronics TakeBack Coalition, recycling does not eliminate the root problem: the vast amount of electronics generated in the first place and fated for disposal.

Carole A. Cifrino, the environmental specialist who manages Maine’s e-waste program, said she hoped the strict recycling would eventually prompt manufacturers to rethink their designs.

“Maybe since they have some responsibility for the cleanup,” Ms. Cifrino said, “it will motivate them to think about how you design for the environment and the commodity value at the end of the life.”

Foes No More, Ad Agencies Unite With Internet Firms

CANNES, France — Advertising agencies and Internet companies once viewed each other as foes, but are now coming together to harness the potential for online advertising. Like many other segments, online ad spending has slowed from its previous breakneck pace during the deep recession, forcing companies to devise new ways to chase fewer dollars.

Last week, Eric E. Schmidt, the chief executive of Google, and Steven A. Ballmer, his counterpart at Microsoft, for the first time attended an annual advertising industry meeting, the Cannes Lions International Advertising Festival.

With consumers spending more and more time online, analysts say Internet companies and ad agencies have no choice but to work together to develop ways to make money from digital media.

“There was an air of inevitability about it, because of the model not really working yet, and there’s so much content that will be dependent on it working,” said Paul Kemp-Robertson, editor of Contagious, an online magazine that tracks digital marketing trends.

Microsoft and Google, along with rivals like Yahoo and AOL, are looking for growth from new kinds of ads, including online video spots. But they need advertising agencies to persuade their clients to embrace these formats. Many companies are preferring to place ads linked to search engine results, whose effectiveness can be directly measured.

Microsoft made it clear that it wanted to cooperate, announcing partnerships with two leading advertising companies, WPP Group and Publicis Groupe. Yet Mr. Ballmer expressed skepticism about the extent to which advertising could be used to finance an explosion of online content.

Advertising agencies have long been big customers of Google, Microsoft and other Internet companies, shifting an increasing portion of ad budgets online. WPP Group, the largest ad agency owner, spends $850 million a year of its clients’ money with Google, according to Martin Sorrell, WPP’s chief executive. Ninety-eight percent of Google’s revenue comes from advertising, largely from “sponsored links” that appear alongside its search results.

Mr. Sorrell once called Google a “frenemy” of the ad industry, a characterization that reflected the Internet giant’s efforts to move into businesses like media buying, which in the past have been controlled by the likes of WPP. Agency executives also complained that Google remained aloof, spending hardly anything on advertising itself.

Asked during an onstage interview with Maurice Lévy, chief executive of Publicis, whether he even liked advertising, Mr. Schmidt insisted: “We love advertising.”

Microsoft, minus its chief executive, has been a prominent participant at the ad festival for several years, bringing hundreds of employees to the event. It is also a big advertiser, spending $700 million a year, according to Mr. Ballmer. But the breadth of its ambitions — in addition to buying and selling ads, the company owns an agency that creates them — has also caused alarm in some advertising quarters.

Analysts say the rivalry between Microsoft and Google may also play into their overtures to the ad industry. While Google has dominated the search business, Microsoft introduced a new search engine, Bing, last month. It has lifted Microsoft’s share of online searches in the United States to about 12 percent, according to ComScore, a research firm, from 8 percent for Microsoft’s previous engine.

Mr. Schmidt acknowledged that Google had, in recent months, found itself in the unfamiliar position of stumbling on certain projects, including efforts to develop systems for selling newspaper and radio advertising. He said marketers were also lowering their bids for keywords on Google’s search engine, where ads are sold through online auctions.

Google has also struggled to generate significant advertising from YouTube, its online video-sharing service. Mr. Schmidt said he had high hopes for new kinds of advertising formats on YouTube — some of which, he added, were developed through a partnership with Publicis.

That agreement, which has taken shape over the last year, represented the start of a thaw in the previously frosty relations between advertising companies and Internet giants.

Since then WPP has also struck a deal with Google to examine the future of digital advertising.

Last week in Cannes, WPP, whose agencies include Ogilvy & Mather and Grey, Young & Rubicam, announced a separate research deal with Microsoft.

Publicis, whose agencies include Saatchi & Saatchi and Leo Burnett, also moved to balance its partnership portfolio, announcing a broad agreement with Microsoft. The companies said they would jointly develop new kinds of digital advertising for a range of devices, including personal computers, mobile phones and Microsoft Xbox game consoles. They said they would also work on ways to send tailored advertising to individual television viewers’ sets.

Darren Huston, corporate vice president for Microsoft’s consumer and online businesses, described the linkup as “a major step forward in the relationship between our industries.”

In addition to generating new business, he said, Mr. Ballmer intended the partnership to send a signal to Microsoft employees about the benefits of working with the ad industry.

“It’s about the tone at the top,” Mr. Huston said. “What I’m saying, and what Steve is saying, is, ‘Here are some folks we’re going to work together with to crack some code.’ ”

Analysts say there may be another reason for the new friendliness between Microsoft and companies like Publicis and WPP. Microsoft has been trying to sell a digital ad agency, called Razorfish, which it acquired two years ago when it bought the agency’s parent company, aQuantive, for $6 billion.

WPP and Publicis have reportedly been among the potential buyers; both companies declined to comment.

Making sense of Windows 7 upgrade options

While it's true Windows 7 doesn't arrive on retail shelves and new PCs until October, Microsoft has announced two programs designed to give a head start to those who know they want the new operating system.

The Windows Upgrade Option, which runs through early next year, allows those buying a new Vista PC to get a free copy of Windows 7 after it hits shelves in October. The other program, which runs only through July 11, allows Windows XP and Vista users to pre-order a copy of Windows 7 Home Premium for $49 or Windows 7 Professional for $99.



In the following question-and-answer post, CNET News' Ina Fried walks you through both programs.

Who qualifies for the pre-order program?
All those who are running Windows XP or Windows Vista on their system, and whose PC is capable of running Windows 7, can upgrade that machine to Windows 7 Home Premium or Windows 7 Professional using the Windows pre-order program. However, the program is limited in both time (it runs through July 11 in the U.S.) and in terms of how many copies Microsoft will sell, although the company has not said what that limit is exactly.

Can I buy one of the upgrades if I am running Windows Vista Ultimate?
A lot of folks have been asking this since Microsoft isn't offering a discounted way to buy Windows 7 Ultimate. The answer is yes, one can buy an upgrade. However, any time one moves "down" in editions as part of an upgrade, it requires a clean installation of the operating system.

Will I get both 32-bit and 64-bit versions of the operating system?
Yes, although moving from a 32-bit version to a 64-bit version (or vice-versa) also requires a clean installation of the operating system.

How does the Windows 7 Upgrade Option program work?
Microsoft's other program, aimed at new PC buyers, gives those who buy certain Vista machines between June 26 and the end of January the ability to get a free copy of Windows 7.

The update will be provided after Windows 7 ships on October 22. Different partners are handling it different ways, with some offering the upgrade on DVD, others via download, and some PC makers offering both means.

Is it really free?
Well, Microsoft says it isn't charging the computer makers or retailers, though in some cases the PC makers themselves are tacking on a shipping and handling charge for mailing the updates.

Do all Vista PCs qualify?
No. In general, PCs with Vista Home Premium, Vista Business, or Vista Ultimate will qualify for the program. Buyers should check with their retailer or PC maker beforehand to make sure the PC is among those that qualify.

Many of the PC makers have posted more information on their Web site, including Acer, Asus, Dell, Emachines, Fujitsu, Gateway, Hewlett-Packard, Lenovo, Sony and Toshiba.

What about Netbooks?
A few Netbooks may qualify if they were running Windows Vista Business or Windows Vista Home Premium. Microsoft is still looking at options for how folks running those systems will be able to load the operating system onto their machines, which don't have CD or DVD drives. (Netbooks running Windows XP, like other XP machines, can use an upgrade version of Windows 7, though users will have to do a clean installation of the operating system.)

Is there a limit to how many computers qualify for the update program?
Yes, the program covers a maximum of 25 PCs for an organization. Microsoft says the program is designed for consumers and small businesses and notes the limit of five machines under a similar program with Windows Vista has been lifted.

Gartner analyst Michael Silver said that big businesses should press computer makers to extend the upgrade to cover any large orders between now and when Windows 7 ships. Otherwise, the only way for businesses to be covered is to purchase one of Microsoft's volume licensing programs for Windows, such as Software Assurance.

"Microsoft is encouraging organizations to buy (Software Assurance) and those that don't will need to deal with these artificial, annoying rules," Silver said.

What about those who bought Vista PC before June 26?
Again, I've gotten a lot of e-mail from owners of older Vista machines, including some that are only a few weeks or months old, wondering where their free copy of Windows 7 is. Well, the Upgrade Option only kicked in last week, so owners of older machines won't be getting a free copy. The pre-order program probably offers the cheapest option as far as getting to Windows 7.

Update: Among the questions I was asked most frequently was whether someone could move from a version of Windows XP or Vista to a different version of Windows 7. In all combinations, the answer is yes, and it can be done using the cheaper upgrade version of the operating system, though in some cases a clean installation of Windows 7 may be required.

If you are moving from Windows Vista to the same or higher version of Windows 7 and not changing from 32-bit to 64-bit, you can do what is known as an upgrade-in-place, which transfers your existing set-up to Windows 7, preserving all your settings and favorites.

If you are going to a lower-end version of Windows 7, coming from Windows XP or moving from 32-bit to 64-bit (or vice versa), you need to do a clean installation, which means backing up your data, installing the new operating system and then restoring your data and reinstalling your applications.

Canon FS200 (blue)


Product summary

The good: Ultracompact design; 37x optical zoom; mic, headphone jacks.

The bad: No optical image stabilization; no extended-life battery option.

The bottom line: Though its video isn't perfect, the Canon FS200 is one of the better standard-definition consumer camcorders available.

Specifications: Video input type: Camcorder ; Optical sensor type: CCD ; Optical zoom: 37 x ; See full specs

Price range: $305.86 - $429.99

Software Firm Buys Swedish File-Sharing Site

PARIS — A small Swedish software company said Tuesday that it would buy the Pirate Bay, a notorious Internet file-sharing service whose founders were recently sentenced to prison for copyright violations, and hoped to turn the site into a legal source of free music and movies.

The company, Global Gaming Factory, said it had agreed to pay 60 million Swedish kronor, or $7.75 million, for the Pirate Bay, which says it has 20 million users worldwide. The site, the most prominent target of the international recording industry and Hollywood movie studios in their battle against digital piracy, continues to operate despite the guilty verdicts against its four founders in April.

Hans Pandeya, chief executive of Global Gaming Factory, said the company planned to turn the Pirate Bay into a legal provider of digital content through a new business model.

“Content owners hate file-sharers, but this is going to change,” Mr. Pandeya said.

Under the new system, he said, the Pirate Bay would generate revenue from several sources, including advertising.

Also, Global Gaming Factory plans to employ new peer-to-peer technology from a Swedish company called Peerialism, to develop an ultra-fast file-sharing network that could be used to ease the strain on Internet service providers. Global Gaming Factory, a publicly traded company in Stockholm, said Tuesday that it had agreed to acquire Peerialism.

Internet service providers, some of which have complained that file-sharing traffic is clogging their networks, would be charged for the use of the new network.

Individual file-sharers who participate in the network, meanwhile, would get paid for doing so, Mr. Pandeya said.

“There’s tremendous value being created on the Internet, but what do the file-sharers get? Nothing,” Mr. Pandeya said. “What do the content owners get? Nothing.”

Previous efforts to bring unauthorized file-sharing services in from the cold have generally involved changing the business model to charge individual users for music or other content. These initiatives, including the revamped Napster, have generally had only limited success.

“There’s a huge number of unanswered questions,” an analyst at Forrester research, Mark Mulligan, said. “It will be hard to persuade the record labels to create a legal file-sharing site.”

Record companies have grown more flexible about the kinds of services they are willing to license. Universal Music Group, for instance, recently announced an agreement with a British Internet service provider, Virgin Media, to make available unlimited downloads of music, with no copy protection.

John Kennedy, chief executive of the International Federation of the Phonographic Industry, which represents major record labels, said that while the announcement by Global Gaming Factory “raised a lot of questions,” he had no objections to the Pirate Bay turning into a legitimate service, despite the implications of the site’s name.

“We’re always interested in the bad guys becoming the good guys,” Mr. Kennedy said. “I’m capable of having a sense of humor about the name, as long as they are paying for the rights.”

The Pirate Bay, whose founders remain free pending an appeal, posted an announcement of the planned sale on its site, saying that it was “time to invite more people into the project.” It tried to reassure users about Global Gaming Factory’s intentions, noting that if the new owners altered the site substantially, “nobody will keep using it.”

“That’s the biggest insurance one can have that the site will be run in the way that we all want to,” the notice said.

But comments posted on the site in response to the announcement suggested that users were wary.

“This is a sad day for Internet, pirates and freedom,” one contributor said. “Commercial control can’t lead to anything good.”

China Limits Use of Game Players’ Virtual Currency

SHANGHAI — China made public on Tuesday regulations aimed at cracking down on the use of virtual currencies amid worries that a huge underground economy was developing out of the country’s online gaming community.

The rules, issued jointly by the Ministry of Commerce and the Ministry of Culture in Beijing, could deal a blow to the country’s fast-growing online gaming industry.

Beijing said the regulations would curtail trading in virtual currencies, prevent online gambling and restrict virtual currency from being exchanged for cash or used to buy real goods.

Among other things, Chinese officials have worried that online currencies could ultimately serve as an alternative to China’s official currency, the renminbi, and have an impact on the country’s financial system.

Some of China’s biggest Internet and online gaming companies were quoted in the state-controlled media Tuesday saying that they welcomed the new rules and hoped that the rules would prevent fraud in the industry.

But some companies, including Tencent and Shanda, did not return phone calls Tuesday seeking comment.

Richard Ji, an Internet analyst at Morgan Stanley, released a brief report Tuesday, saying he expected only limited financial impact on Chinese gaming companies because much of the trading in virtual currencies and goods does not occur on the sites of big, publicly listed companies; it occurs on other Web sites.

But privately, some gaming experts say they worry that if the new rules are interpreted more broadly they could disrupt the trading in online gaming credits and virtual goods, like game weapons.

China has one of the world’s biggest online gaming markets, and tens of millions of players are believed to be earning gaming credits and even trading them for cash and goods.

Last year, trading in virtual currency in China amounted to nearly $2 billion, according to the China Internet Network Information Center.

In recent years, China has even become a center for what the gaming community calls “gold farming,” whereby young Chinese are hired to spend long hours playing popular online games, like Blizzard Entertainment’s World of Warcraft, to accumulate game credits for players in other countries, including the United States.

Some small companies in China have even created what are “virtual sweatshops,” cramped rooms where young people play online games for hours to earn credits, virtual weapons and other goods that their company then sells to customers in the United States, Taiwan, South Korea and other countries.

Many online marketplaces, like eBay and China’s Taobao, even have online advertisements offering virtual goods for sale, like the gold coins of World of Warcraft and virtual QQ coins from Tencent. Some Chinese companies have grown quickly in recent years by dealing entirely in the trading of virtual goods and weapons.

In issuing the rules this week, Beijing said they were meant to cope with a growing number of problems associated with virtual currencies, including disputes over the use of virtual coins.

The government said it would closely restrict who can issue virtual currency and forbid people from taking virtual currency from one online site and selling or trading it somewhere else.

The government also defined virtual currency and said it could no longer be exchanged for real goods.

With a flurry of new Internet-related regulations in recent months, including new measures to fight online pornography and so-called unhealthy content, Beijing seems determined to maintain control over online content in China, which now has the largest Internet population with close to 300 million users.

Japan Offers $1.7 Billion Bailout for Chip Maker

TOKYO — In its first major industry bailout since the start of the global financial crisis, Japan said Tuesday that it had put together a package of $1.7 billion in public and private money to shore up a troubled chip maker, Elpida Memory.

By using public money to prop up Elpida, Japan hopes to salvage its only major maker of dynamic random access memory chips, or DRAM, considered vital to its electronics industry. The aid package also protects the nearly 6,000 workers at Elpida, which suffered record losses last year as the demand for semiconductors fell sharply.

But in using taxpayers’ money, the government also risks keeping feeble companies on life support, which ultimately could hurt Japan’s competitiveness, analysts said. Japan has set aside 2 trillion yen, or $21 billion, in public funds to aid companies hurt in the economic slowdown.

“It’s a fine balance,” said Shinichi Ichikawa, the chief equity strategist for Japan at Credit Suisse. “Japan has decided it must save Elpida for the sake of Japanese industry,” but “going too far means keeping zombie companies alive.”

The bailout follows similar moves in other countries. The United States has poured billions of dollars in taxpayer money into the automakers General Motors and Chrysler, while Germany has shored up the automaker Opel with taxpayer money.

Japan’s rescue plan comes during its worst recession since World War II. On Tuesday, the government said Japan’s unemployment rate rose 0.2 percentage points, to 5.2 percent, in May, the highest level in nearly six years.

The Japanese economy has contracted for 12 consecutive months, despite government efforts to bolster growth with stimulus spending. Weak domestic demand and a dwindling population mean that recovery remains at the mercy of its struggling exporters, concentrated in autos and electronics.

As a maker of DRAM chips, which are used in PCs, Elpida is seen as especially important to the country’s electronics industry. Japanese officials fear that Elpida’s demise would force domestic manufacturers to rely on overseas rivals like Samsung Electronics of South Korea, the market leader.

Elpida is reeling amid a collapse in demand and an oversupply in chips that has caused prices to plummet. It suffered a loss of 179 billion yen in the year to March, after a 24 billion yen shortfall a year earlier. Weaker players, like Spansion of the United States and Qimonda of Germany, filed for bankruptcy protection earlier this year.

“Elpida is Japan’s only DRAM maker, and it has been hit by extremely severe conditions amid the global economic slump, despite its superior technology,” the trade minister, Toshihiro Nikai, said Tuesday. “Securing a supply of DRAM is very important for Japan’s industry and livelihood.”

Elpida’s aid package of 160 billion yen includes 40 billion yen in public funds and loans from the state-run Development Bank of Japan, and 100 billion yen in loans from private banks, according to a statement by the trade ministry.

Taiwan Memory, a chip maker set up by the Taiwan government to reorganize the island’s own struggling chip sector, will also invest 20 billion yen in Elpida, the ministry said. Taiwan Memory had recently announced it would partner with Elpida to develop memory chips for cellphones.

Elpida’s bailout is the first under an emergency measure that makes public money available to businesses hurt in the global economic crisis, part of the economic stimulus plans championed by Prime Minister Taro Aso. Companies that accept public money are required to develop strategies to turn around their businesses in three years.

Elpida will use the bailout to invest in cutting-edge technologies, the company’s chief executive, Yukio Sakamoto, said.

“In the competitive DRAM industry, companies without the capacity to invest are sure to lose out,” Mr. Sakamoto told reporters after the rescue package was announced. The challenge for Japan is how to handle companies seeking public funding that are shouldered with woes that go beyond the financial crisis.

Another company, Pioneer, a long-struggling electronics maker, is expected to seek billions of yen in aid, for example. Excessive government intervention “hampers necessary consolidation and industry shake-out, sapping the nation’s industrial vigor,” Nikkei, Japan’s largest business daily, wrote in a recent editorial. “The government fosters moral hazard if it extends a helping hand too readily.”

Beijing Delays Rule on Software Censor

BEIJING — Facing strong resistance at home and abroad, China on Tuesday delayed enforcement of a new rule requiring manufacturers to pre-install Internet filtering software on all new computers.

The delay by the Ministry of Industry and Information Technology, announced via Xinhua, the official news agency, came just one day before the July 1 deadline for the software to be installed on all computers produced and sold in China.

The software, called the Green Dam-Youth Escort, had caused a torrent of protests from both Chinese computer users and global computer makers, including many in the United States, since the government order became public in early June.

The Obama administration had officially warned China that the requirement could violate free-trade agreements, and sent trade officials to Beijing recently to press the government to rescind the decision. In Beijing on Tuesday, a United States Embassy spokesperson said that Washington welcomed the announcement.

China has said the software is designed to filter out pornography and violence to protect minors, but many experts say it can also block any other content that the authorities deem subversive.

The ministry said the mandatory installation would be delayed for an indefinite period to give computer producers more time to put the order into effect.

As a practical matter, the abrupt postponement bows to reality, because most of China’s computer retailers have large stocks of machines, manufactured months before the decree was announced, that have yet to be sold. Many global computer makers have declined to say how they would comply with the requirement, apparently hoping that the government would delay or reverse its decision under international pressure.

The filtering software has been the object of furious online debate since the requirement to install it was disclosed. The Ministry of Industry and Information Technology, which licensed the technology from two Chinese developers, says that the software automatically blocks Web surfers from seeing “unhealthy Internet content.” Updated lists of banned content are automatically downloaded onto users’ computers from the developers’ servers.

But the software’s current list of banned words, posted online by Chinese hackers, is laced with political topics. Businesses have complained that the software is so poorly designed that it opens computers not just to government snooping, but also to hacker attacks by vandals and criminals.

On Friday, the heads of 22 international business organizations delivered a letter to Prime Minister Wen Jiabao arguing that the Green Dam project flouted China’s professed goal of building an information-based society, and that it posed a threat to security, privacy and free speech. A day earlier, the European Union also protested, saying the software was clearly designed to limit free speech.

Global computer makers have argued that they are being forced to install untested software on their products for purposes that they may regard as objectionable.

In Washington, the Business Software Alliance, a group representing software makers worldwide, said Tuesday that it was encouraged by the government’s delay and hoped for “a thorough examination of the related technology issues.”

Green Dam works only on computers that use the Windows operating system. So far, no version has been released for Macintosh and Linux systems. Nor would the software be required in Hong Kong or Macao, said one expert who is familiar with the government’s requirement.

The Chinese government has said little about the requirement. Zhang Chenmin, the founder of one Green Dam developer, Jinhui, has frequently described the software order as voluntary and innocuous, but he did not respond Tuesday to telephone calls and text messages seeking comment.

Meanwhile, it appeared that computer makers had yet to comply with the directive, not only in the hope that the government would alter its plans but also because the order gave them scant time to test Green Dam with their machines.

Only Acer, a Taiwan manufacturer that assembles many of its products in China, has said that it would install Green Dam on its machines. A spokesman for Lenovo, China’s best-selling computer brand, did not respond to a question about its Green Dam policies, although some Beijing vendors said the software has been installed on some Lenovo models.

Hewlett-Packard — China’s No. 2 computer brand, according to the market-intelligence firm IDC — has been silent on its plans, as has Dell, the third-best-selling brand. According to the Web site Rconversation, which has published many leaked documents regarding Green Dam, Sony had already packaged a software CD with some of its computers, along with a statement warning that it was not responsible for any problems the program may cause.

Major Beijing computer retailers said most computers being sold lacked the software. One of China’s biggest electronics chains, Suning, insisted Tuesday that the government order applied only to computers manufactured after July 1, and not to those manufactured before that date but sold later at retail.

“Suning is an outlet, so we’re also playing the role of monitor” to ensure that the computers have the software as required, a company spokesperson, Min Juanqing, said. “If the computer doesn’t meet the requirement, we won’t purchase it.”

Several other vendors contacted Tuesday said that their existing stocks of computers were manufactured in April or May, and that computers equipped with Green Dam were unlikely to reach their shelves for several weeks.

One vendor, who identified himself only as Mr. Wu, acknowledged that some buyers see little but trouble in the government’s order. “Some of our clients are concerned about the security of the software,” he said. “I myself haven’t tried it yet, but we’ve been paying attention to it. I personally don’t want to install this software, but the government has asked us to install it for our kids’ good.

“But we can help you uninstall it if you want,” he said. “It could be easy to erase it completely from your computer.”

Firefox faces new challengers with 3.5 launch,

http://i.i.com.com/cnwk.1d/i/bto/20090629/firefox_3.5_logo_60x77.jpg

A funny thing to happened to Firefox on the way to vanquishing Internet Explorer: the Mozilla browser's success opened the door for a host of its other competitors.

Even as Internet Explorer's market share has slipped--down a dramatic 8 percentage points to 65.5 percent in about the last year--Firefox programmers face a surprising question: should they be more worried about the programmers in Redmond, Wash., or about those working on Apple's Safari, Google's Chrome, and Opera?

Firefox has gained about 3 percentage points to 22.5 percent in market share, according to Net Applications' statistics since July 2008, and Firefox backer Mozilla doubtless hopes for more gains with Tuesday's release of Firefox 3.5. But Apple's Safari and Google's Chrome each gained 2 percentage points, to 8.4 percent and 1.8 percent, respectively, indicating a growing appetite for alternatives to Internet Explorer that's not completely met by Firefox. Opera stayed flat at about 0.7 percent.

In short, Firefox isn't the only scrappy underdog in town, and Firefox fans' easy us-versus-them polarization is transforming into a more complicated multilateral equation.

Having other IE challengers helps legitimize Firefox, because the idea of straying from the IE fold appears more legitimate, but the alternatives also collect some of the new users venturing farther afield. For its part, though, Mozilla likes to see the glass as half full.

"One of our biggest challenges is helping people to understand that they have a choice about their Web browser, and how big a difference that choice can make," Firefox director Mike Beltzner said. "Every release is an opportunity for us to bring improvements directly to our growing user base, but also help many users indirectly by putting pressure on Microsoft to improve their product as well."

Version 3.5 has been, relatively speaking, long in the making. It began its life as what was intended to be a quick and modest upgrade to Firefox 3.0, but the version number expanded along with Mozilla's ambitions for the software.

And it is indeed an important release, both because of competitors and because of new Firefox 3.5 features.

What's in it for users?
Firefox 3.5 has a host of improvements, some the sort of thing people can notice immediately and some plumbing improvements that could help the Web in the long run. With a release in 70 languages, a lot of people will be able to try

Under the covers but providing a direct benefit it TraceMonkey, the new engine that runs Web page programs written in the common JavaScript language. That will mean Web applications such as Google Docs get faster today and, if JavaScript speed improvements continue, more sophisticated tomorrow.

Weave is a project to synchronize many browser settings across multiple versions of Firefox, on PCs and mobile devices.

Weave is a project to synchronize many browser settings across multiple versions of Firefox, on PCs and mobile devices.

(Credit: Mozilla)

Another feature people might appreciate directly is private browsing mode, which erases evidence on your computer of where you've taken your browser. It's flippantly called porn mode, but it also can be useful to keep your boss from knowing what you've been up to while on company time or searching for Valentine's Day gifts. Along with private browsing goes the ability to excise particular sites or recent activity after the fact, too--though it should be noted that none of these options erase your fingerprints from the servers you visited.

Mozilla also is excited about HTML video, which makes it possible not only to embed video in Web pages without using plug-ins such as Adobe Systems' Flash Player, but also to have that video interact with other elements on the Web page. That's not likely to revolutionize the Web in the short term, especially because of prickly issues regarding file format support, but it could help in the long run.

Design fans will be excited about embeddable fonts that can spruce up Web pages, though typeface designers might be leery of yet another avenue for unlicensed copying of their work.

Deeper down, Firefox 3.5 also adds HTML 5 storage abilities to help make Web applications work when offline, "Web Workers" to let Web applications work on tasks in the background without the user interface bogging down, and improvements to standards such as CSS and SVG for better graphics. And a geolocation function can let Web sites know where you are, handy for maps and other local services.

Collectively, it's an important foundation, though just getting them into version 3.5 is only the first step. Firefox users tend to update relatively swiftly, but they're still a minority on the Web, and Web programmers tend to wait for some critical mass before they can afford to support the latest browser features.

Fending off rivals
Competitors aren't standing still. Chrome was missing many important features such as bookmark management when it launched in September, but Google has rapidly been fleshing out the product, including the addition of rough Mac OS X and Linux versions in May. Also notably, Google has continued to drive its V8 JavaScript engine ever faster, and Chrome's extensions mechanism is rapidly maturing.

Meanwhile, Apple released Safari 4 in June for both Windows and Mac OS X. Safari uses much of the same WebKit engine for rendering Web pages that Chrome, but it uses a different JavaScript engine, called Nitro by Apple and Squirrelfish Extreme at WebKit. Apple is loudly banging the "fastest browser" drum for Safari, and though the claim is grand, it does spotlight that performance is a major issue in today's browser competition.

Don't view Firefox developers as complacent, though. Performance improvements are a top priority in the successor to Firefox 3.5, called Namoroka, including fast launch speed, a present Chrome advantage. The new version is scheduled for release in early to mid-2010.

A host of other improvements also are under development. Among them:

Weave is a project to synchronize bookmarks, passwords, preferences, and other settings across multiple browsers, including the mobile version of Firefox, code-named Fennec. Weave also can sync personas, another new feature that lets people customize Firefox's appearance.

• A project called Electrolysis is designed to improve isolation between different tabs and between plug-ins and tabs, improving security and reliability.

Jetpack is designed to be a new framework for add-ons that can be developed using Web page design standards. That's the same approach Google chose for Chrome extensions.

• People use more and more tabs, and tab management is tougher, so work is under way to address the issue--perhaps with an automatically expanding or contracting tab list on the left edge of the browser instead of on a strip along the top.

Snowl is a system that tries to unify messaging operations, whether messages originate from e-mail, Web forums, RSS feeds, social networks, or other sources.

Ubiquity is designed to let Firefox interpret a wide range of formal or informal text commands, turning the browser into a more general window on the world.

Also, Firefox has some incumbent advantages of its own--enough market share that Web developers need to test their sites for Firefox compatibility and a range of add-ons to customize the browser, for example. Those are strong enough to keep people from rapidly switching away even if they're trying other browsers, too.

So yes, Firefox has abundant new competitors. But it hasn't been pushed aside.