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Cnet on turbo tax Safecast Macrovision security software

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Jim Anderson

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Feb 16, 2003, 12:37:49 PM2/16/03
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Financial software and services company Intuit is facing a growing number of
consumer complaints over anticopying technology included in the latest
version of TurboTax, its market-leading tax preparation software.

Intuit announced last year that versions of TurboTax for the 2002 tax year
and beyond would employ "product activation," a controversial but
increasingly common technique used by software companies to lock a copy of a
program to a specific PC.

But current and former TurboTax customers are complaining in online forums
such as FatWallet and in user ratings at online store Amazon.com that the
technology is hampering their use of the software and is prompting them to
consider alternatives, most notably H&R Block's TaxCut. Intuit
representatives say most of the reports are baseless.

Complaints center on potential problems in getting TurboTax to run after
changing PC or PC components. They also focus on concerns that years from
now taxpayers who need to retrieve information from previous years won't be
able to get older versions of TurboTax to run.

Lee Boszak, a retiree from Inverness, Fla., said he's used TurboTax for more
than 10 years but switched to TaxCut this year because he objects in
principle to product activation. "If I upgrade to a new PC or replace my
hard drive, I can't install or reinstall without calling Intuit," he said
via e-mail. "I have purchased TurboTax for many years, since it came on
floppies--this activation is a slap in the face to a loyal customer."

Instead, customers are assigned an activation number from Intuit, either by
the Internet or phone, when they install TurboTax. The activation number is
tied to the product "key" for that particular copy of TurboTax. Anybody who
tries to install the software using that product key after it has already
been activated using the number will be refused and invited to purchase a
valid license.

In most cases, customers who need to reinstall TurboTax on a new PC or hard
drive simply have to enter the original activation number they received,
Gulbransen said.

"Product activation does not prevent people who want to upgrade their
equipment or have to deal with a hard drive crash from changing their
hardware," he said. "We've heard from people who installed TurboTax right
away and then got a new PC for Christmas. For most people, they can
reactivate the product without even contacting us."

The same will hold true in future years if a customer needs to fire up an
older version of TurboTax, he said. "The bottom line is, if you hold on to
your activation key and product key, and you aren't going to have a
problem," Gulbransen said. "That's why we're suggesting that people keep
those numbers with the product disc in the same place they keep a copy of
their printed tax return from that year."

But TurboTax user Joel Bradford, an educator from Eugene, Ore., said it
wasn't that easy for him when he switched PCs last month. After removing
TurboTax from his old PC, he was unable to reinstall it on the new one, and
Intuit customer support offered no help.

"I tried contacting Intuit through the online tech support," he said in an
e-mail interview. "The...representative was nice enough, but he offered no
other solution than for me to buy a new license. I had the same experience
with the senior support person (telling me) that I need to buy another
license."

Customers are also complaining about Safecast, the Macrovision security
software Intuit uses to verify activation numbers. Reports have surfaced in
discussion groups and some news sites classifying Safecast--also known as
C-Dilla for the company that provided the technology to Macrovision--as
"spyware," programs surreptitiously installed on a PC that track and report
how the PC is used. Spyware programs such as Gator and Brilliant Digital
have prompted growing concern among PC users.

"I have used TurboTax for eight years, but this year they have used a highly
intrusive, insidious spyware/registration/copy protection scheme called
C-Dilla," said a user in a comment on Amazon's product page for TurboTax
Deluxe. "They don't tell you they're going to install it, there is no option
not to install it, and there is no way to get rid of it...I won't let it on
my computer."

But Gulbransen said the complaints are unfounded. "The whole C-Dilla flap is
based on misinformation," he said. "It's never been spyware; it has no
spyware components. It doesn't monitor anything; it doesn't tell us anything
about the user, their system, their PC activity. It just checks on the
random number generated when you activate the product."

Michael Glass, senior product marketing manager at Macrovision, said
Safecast simply checks for a valid license file when a program is launched.

"It's absolutely, categorically false to call this spyware," Glass said. "We
don't send any information about the user's system to either ourselves or
the software publisher. We don't monitor what you download, which Web sites
you visit, or anything like that."

Glass invited skeptics to use firewall programs or other security software
to monitor what Safecast-enabled applications are doing with their Internet
connection. "If people don't believe us, you can take an application like
ZoneAlarm and see that it's not passing information back and forth to us or
anyone else."

While Gulbransen said Intuit isn't concerned about losing sales due to the
activation dispute, the company has compiled an extensive online FAQ about
product activation in hopes of debunking common complaints.

Competitor H&R Block doesn't use any type of activation technology for its
TaxCut software and has not made any definite plans on whether to do so with
future editions, said Chrys Sullivan, the company's director of software
products.

"We think it's an interesting development in our industry," she said. "We're
watching this closely to see how the industry reacts."

Sullivan added that H&R Block has given customers a legitimate way to use a
single copy of TaxCut on multiple PCs with a new "platinum" version that
comes with a license allowing multiple installations in a single household.

"We listened to our customers and we know that a lot of them want to be able
install the software on multiple computers in the same household," she said.
"We're glad to be able to accommodate that."

privatecontact

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Feb 16, 2003, 2:36:49 PM2/16/03
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This is old news and isn't even relevant when you look at Turbo Tax
sales. Intuit just reported in its profit report that sales are up by
11%. Guess that means that people really don't view this as spyware,
but a legitemate attempt by the company to protect its investment. You
could only hope that your company would be so smart. :)

THe...@abiz.invalid

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Feb 16, 2003, 5:07:57 PM2/16/03
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On Sun, 16 Feb 2003 19:36:49 GMT, privatecontact <not...@spam.net>
wrote:

>Guess that means that people really don't view this as spyware,
>but a legitemate attempt by the company to protect its investment.

MOST people probably don't have a clue about this. :-) Only those who
have had problems or heard about it somewhere are likely to have a
viewpoint. I'd bet that the majority of those who DO know about it do
not like it. I'd also bet that the majority of the clueless would also
not like it if they DID know about it. Intuit was really counting on
hiding the real situation as best they could to keep as many as
possible clueless.

Hank Arnold

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Feb 17, 2003, 4:38:41 AM2/17/03
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Will you shut the fuck up????????????? It's old fucking
news!!!!!!!!!!!!!!!!!!

--
Regards,
Hank Arnold
"Jim Anderson" <sp2...@vision.net> wrote in message
news:v4vjin7...@corp.supernews.com...

news.primus.ca

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Feb 17, 2003, 10:06:41 PM2/17/03
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You right,
they sales are up 11%, but this is because most people find about this just
after they bought software. I bought myself software, but this is my last
purchase of Intuit product. I allways bought Intuit - I have Quicken,
QUickBooks and also tax software. But I had activation problems - after
changing computer I could not use tax software. I called Intuit (long
distance charges!!!!) and found that you can get help just during business
hours. But I work during business hours! There is no help after hours on
home usage software! So guess what, my upgrade this year was already from
Quicken to MS Money. And you can be sure that next year I'll not buy Intuits
tax software. And when upgrade cycle will come, I'll by Simply Accounting
instead of QuickBooks. Yes, I am a single person and it is not a big deal on
bottom line for Intuit. I'll probably will be able to change a mind on tax
software choice this year for couple of coovorkers, they maybe to couple
others. But bottom line - with help from me and like others like me their
sales are up 11% and not 22%.
Most interesting - I am not totally agains product activation. I use
Microsoft activation on XP products and don't complain, because it is done
properly, no programs that runs on your computer all the time and most
importantly when you need activation help - you can talk to person 24/7. I
am against activation where you can get help just during business hours and
you have no clue how many other stuff software installed on your machine.

No more Intuit for me....


"privatecontact" <not...@spam.net> wrote in message
news:3E4FE96B...@spam.net...

Steven Scharf

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Feb 18, 2003, 1:44:13 PM2/18/03
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privatecontact <not...@spam.net> wrote in message news:<3E4FE96B...@spam.net>...
> This is old news and isn't even relevant when you look at Turbo Tax
> sales. Intuit just reported in its profit report that sales are up by
> 11%.

They did not state that at all.

You need to read a little more carefully (even though it's
an honest mistake that you made). Intuit never stated that
TurboTax sales were up (that in itself is extremely significant).

They stated that TurboTax _revenue_ was up 11%. There is a big
difference here. Revenue is up because they are significantly
increasing the number of direct sales as a result of the mailing
of millions of TurboTax CDs to previous users, and increasing
their web based product sales. Direct sales and web based sales
and filing are hugely profitable and overshadow the lost sales
due to activation.

> Guess that means that people really don't view this as spyware,
> but a legitemate attempt by the company to protect its investment. You
> could only hope that your company would be so smart. :)

Shifting to direct sales is indeed very smart, and you can't
fault Intuit for willingly giving up a little market share in
order to significantly increase revenue.

"Spyware" was never the issue, the issue has always been the
activation problems, and the burden that activation has placed
on legitimate paying users. Intuit has tried to steer the media
into believing that this is a strictly a spyware issue, to divert
attention away from the real issues.

Always be on the lookout for "Implicature." Intuit wants people
to think that sales are up 11% so they don't bother to explain
that revenue being up 11% is not the same as sale being up 11%.
Intuit wants people to believe that the issue with C-Dilla is
spyware because in fact C-Dilla is not spyware.

shplink

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Feb 18, 2003, 3:14:33 PM2/18/03
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In news:4f153f94.03021...@posting.google.com,
Steven Scharf <sch...@hotmail.com> was nice enough to say:

> privatecontact <not...@spam.net> wrote in message
news:<3E4FE96B...@spam.net>...
[snip]

> "Spyware" was never the issue,
>
[snip]

In that case, PLEASE spare our NG from all this insane cross-posting!
--

A mind is like a parachute: it only works when it's open.
-Frank Zappa

The alt.privacy.spyware FAQ:
http://shplink.com/misc/FAQ.htm


Jay T. Blocksom

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Feb 19, 2003, 2:36:37 PM2/19/03
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On Sun, 16 Feb 2003 19:36:49 GMT, in <alt.privacy.spyware>, privatecontact
<not...@spam.net> wrote:
>
> This is old news and isn't even relevant when you look at Turbo Tax
> sales. Intuit just reported in its profit report that sales are up by
> 11%. Guess that means that people really don't view this as spyware,
[snip]

Wrong, for several reasons -- not the least of which is that, given the way
retail marketing and distributuion works, there has not yet been anywhere
near enough time for the fallout from this fiasco to hit Intuit's P&L sheet
(but don't worry; they'll be sure to hide it when it does come time).

> but a legitemate attempt by the company to protect its investment.

[snip]

Nonsense. It is a clear example of short-sighted greed and arrogance
overruling common sense. Forcing user-hostile functionality down the
throats of your customers is NEVER a good idea. Neither is stealing from
your customers or committing vandalism to their property..

Note: We already fought the copy-protection wars back in the early '80s
(remember "Lotus 1-2-3"?). It went away then because it was generally
considered unacceptable for a vendor to deliberately place usability
roadblocks in the path of their legitimate users. This is no different in
that respect; only a more vicious and more damaging implementation of the
same brain-dead idea. It too needs to go away. Entirely.

--

Jay T. Blocksom
--------------------------------
Appropriate Technology, Inc.
usenet01[at]appropriate-tech.net


"They that can give up essential liberty to obtain a little temporary
safety deserve neither liberty nor safety."
-- Benjamin Franklin, Historical Review of Pennsylvania, 1759.

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Mr. Mel

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Feb 19, 2003, 5:12:21 PM2/19/03
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"Jay T. Blocksom" <usenet01+...@appropriate-tech.net> wrote in message
news:f6565vge3rhgk4if2...@news.rcn.com...

i agree, i switched to another program this year !

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