The Spam and Attention Bond Mechanism FAQ

Mark Benerofe, Vortex Communications
Thede Loder, Marshall Van Alstyne, Rick Wash, University of Michigan



Note: This document is one of a group of related documents that together describe the Attention Bond Mechanism (ABM). The ABM is a means of using sender-posted bonds to eliminate spam, restore message quality, and improve the value of communication for email and for other media.

The other documents are:

This document is also available as a PDF

 


1      General

1.1       Q: What is spam?

1.2       Q: What is the Attention Bond Mechanism?

1.3       Q: What is a Bond?

1.4       Q: How does the Attention Bond Mechanism work?

1.5       Q: What is a whitelist?

1.6       Q: Will there be an easy way to add lots of senders to my whitelist?

1.7       Q: How much does the sender put at risk?

1.8       Q: Does the sender have to pay for every message?

1.9       Q: What is a reasonable size for a bond?

1.10     Q: Will the ABM be complicated to use?

1.11     Q: How does it work (in more detail)?

1.12     Q: Can you show me a diagram?

1.13     Q: How does a sender post a requested bond?

1.14     Q: How can I add senders to my whitelist?

1.15     Q: How will use of the ABM change the value of email as a medium?

1.16     Q: When everyone uses the ABM, what are the effects?

1.17     Q: So I get back control of my mailbox?

1.18     Q: Why does the ABM work?

1.19     Q: Paying someone you know to receive your email seems weird.  What about etiquette?

1.20     Q: Why wouldn’t you just seize the bond all the time?

1.21     Q: What prevents the recipient from taking the money, regardless of the message value?

1.22     Q: Who gets the payment if a recipient decides the email is spam?

1.23     Q: Can I keep my existing email address?

1.24     Q: Is the ABM a universal spam cure-all?

1.25     Q: What if the sender does not have an escrow account when they are challenged?

1.26     Q: Will I have to check a second mailbox for email that was misclassified?

1.27     Q: Will using the ABM require a credit card or a bank account?

2      Bond and Warranty

2.1       Q: What is a bond?  What is a warranty?

2.2       Q: What is the purpose of a sender posted bond for email?

2.3       Q: Why a bond and not a warranty?

2.4       Q: How is an Attention Bond different from a product warranty?

2.5       Q: What are the advantages of allowing customized (per-person) bond sizes?

2.6       Q: What is my optimal bond size?  How often should I seize the bond?

3      Comparison to other Approaches

3.1       Q: Why won’t filters solve the problem?

3.2       Q: What about other market-oriented approaches?

3.3       Q: Isn’t the Attention Bond Mechanism really a combination of several other solutions?

3.4       Q: Why is the Attention Bond Mechanism a good solution?

3.5       Q: What other benefits does deployment of the ABM provide?

3.6       How does the ABM compare to other solutions?

3.6.1        How does the ABM compare to regulation and legislative solutions (such as CAN-SPAM)?

3.6.2        How does the ABM compare to filters?

3.6.3        How does the ABM compare to sender-pays solutions?

3.6.4        How does the ABM compare to computational challenges?

3.6.5        How does the ABM compare to community filters?

3.6.6        How does the ABM compare to challenge-response with CAPTCHAs?

3.6.7        How does the ABM compare to one-time email addresses?

3.6.8        How does the ABM compare to Whitelisting?

3.6.9        How does the ABM compare to Blacklists?

3.6.10      How does the ABM compare to a flat tax?

3.6.11      How does the ABM compare to a flat postage fee?

3.6.12      How does the ABM compare to using email stamps (e-stamps)?

3.6.13      How does the ABM compare to Brightmail?

3.6.14      How does the ABM compare to Ironport?

3.6.15      How does the ABM compare to Ironport’s Bonded Sender Program?

3.6.16      How does the ABM compare to Goodmail?

3.6.17      How does the ABM compare to Microsoft’s Penny-Black?

3.6.18      How does the ABM compare to Bankable Postage?

3.6.19      How does the ABM compare to Microsoft’s “Caller-id”?

3.6.20      How does the ABM compare to Domain Keys?

3.6.21      How does the ABM compare to SPF?

3.6.22      How does the ABM compare to Yahoo’s Filtering?

3.6.23      How does the ABM compare to Cloudmark?

3.6.24      How does the ABM compare to Vipul’s Razor?

3.6.25      How does the ABM compare to Reputation Systems?

4      Security, Viruses, Honeypots, and Authentication

4.1       Q: What about possibility of fraud or a virus triggering bond payments?

4.2       Q: What prevents someone from setting up many mailboxes, setting a high warranty, advertising the addresses everywhere, then collecting all of the warranties (similar to creating a ‘honeypot’)?

4.3       Q: Does this mechanism require strong identities?

4.4       Q: What is the role of stronger authentication of individual identity?

4.5       Q: Why are Certifying Authorities not needed for individual identities?

5      Infrastructure and Costs

5.1       Q: Doesn't this require infrastructure?

5.2       Q: Who runs the payment system?

5.3       Q: How will the costs of tracking the warranties be covered?  Can it be done cost effectively and or will such costs prohibit the adoption of the system?

5.4       Q: Will existing mail clients need to be changed?

5.5       Q: Does this design require changes to SMTP?

5.6       Q: What happens if warranties are demanded in foreign currencies?

6      Compatibility with Existing Uses

6.1       Q:  How does this system work with mailing lists that I subscribe to?

6.2       Q: How is this compatible with e-commerce and customer relationships?

6.3       Q: What if I have forgotten my password to a website and need it to be emailed to me?

6.4       Q: What if I meet someone at a conference and they give me their business card with their email address and I write them?

6.5       Q: How will the ABM work for large institutions?

6.6       Q: What does my IT department need to do once we begin using the ABM?

6.7       Q: What about friends and family?

6.8       Q: How does the ABM work with children under 18?

6.9       Q: Many people access their email from Internet cafes and do not have accounts with ISPs.  How those without bank accounts, ISP accounts, or credit cards use an escrow account?

7      Effects on Participants

7.1       Q: If I am a marketer, will this system stop me from reaching my customers?

7.2       Q: What are the effects on Marketers?

7.3       Q: Will I have to pay taxes on any warranties I claim?

8      Adoption

8.1       Q: Why would anyone participate?

8.2       Q: How can user adoption be encouraged?

8.3       Q: Why should marketers participate?

8.4       Q: What are the benefits to ISPs?

9      Social Implications

9.1       Q:  Will this cause a loss of freedom of speech?

9.2       Q: If everyone starts using the ABM, what happens to anonymous email?

10        Other

10.1     Q: Is this really a new idea?

10.2     Q: So what’s your contribution?

 

1         General

1.1    Q: What is spam?

A:  We define spam as any email that you would rather have not received.  It is important to note that with this definition, we assume you know whether or not something is spam only after you have received it. 

An alternative definition is “any email for which after reading the email, you feel that if you could charge the person sending it to you for wasting your time, you'd do it.” 

The above definition excludes things like email that represent a bill or a death in your family.  In the case of a bill, despite the fact that you would rather not have to pay it and hate being reminded of it, you typically still want to pay since the alternatives to not paying are usually worse. 

1.2    Q: What is the Attention Bond Mechanism?

A: The Attention Bond Mechanism is a means to improve the value of communication between two parties and increase the likelihood that such communication is mutually desired.  In other words, it is a means of eliminating spam.  It can be used for many different communications media, including email, phone, SMS, and instant messaging.  This FAQ focuses primarily on its application to email and spam. 

1.3    Q: What is a Bond?

A: A bond is a sum of money (or other exchangeable good) which one party in a transaction sets aside with a third party before the primary transaction occurs, as a show of good faith. 

A bond is similar to a warranty, but not the same.  The difference between a bond and a warranty is that a warranty is a promise to pay, but is not paid or set aside in advance.  If the second party to a transaction (the recipient, in the case of spam) is dissatisfied, with a warranty she must request payment from the first party.  With a bond, she instead requests payment from the third party, which holds the bond. 

The third party plays the role of an escrow.  The bond is placed with the third party, who provides the service to both primary parties of holding the bond and releasing it when certain events occur. 

Example Bonds:

For better or for worse, perhaps the most widely known example of a bond is a “bail bond”.  In the situation where a suspected criminal offender captured, they are sometimes required to post a bond in order to leave custody of authorities.  The money set aside as the bond constitutes a promise to return to a trial for formal interaction in person.  Should they not return on the promised date, the bond money is forfeit. 

It is important that the bond is large enough such that showing up in court is actually in the best interest of the suspect offender.  Bonds are also used as investment instruments, in housing purchases, and for providers of contracting services.  

1.4    Q: How does the Attention Bond Mechanism work?

A: Email from a sender who is pre-approved or whitelisted (See Q: What is a whitelist?) goes directly to the recipient.  A sender who is not pre-approved by the intended recipient is required to post a small sum of money (a bond) in order for his email to be delivered.  In effect, the sender warranties the content of his email and pre-pays the warranty in the form of the posted bond. 

Assume, for example, that a sender sends an email and receives notification that he is required to post a bond to ensure delivery.   Assume also that he then posts the bond (see “Q: How does the sender post a requested bond?”).  When the bond is posted, the email is delivered to the recipient. 

Once the email is in possession of the recipient, the recipient can choose whether or not to claim the bond.  If the recipient claims it, bond money is transferred to her and the sender loses it.  If instead the recipient is satisfied with the email, she allows the bond to be returned to the sender unclaimed and no money changes hands.

1.5    Q: What is a whitelist?

A:  A whitelist is a list of identities of approved senders.  Whitelists are used to route email from selected senders around filtering, screening, or additional challenges and allow the email to be placed directly into the recipient’s mailbox.  A requirement for an efficient whitelist is that the identity of the sender of the message is cheaply and easily recognizable, yet hard (or computationally expensive) to fake. 

See also “How does the ABM compare to Whitelists?” and “How does the ABM compare to Blacklists

1.6    Q: Will there be an easy way to add lots of senders to my whitelist?

A: A software program can be designed which scans through your mail folders and adds senders with whom you’ve had prior correspondence.  It could allow you to modify or remove entries.  This type of management will not be required most of the time, but can be done periodically as needed.  Third party reputation systems can be integrated when they become more available to further reduce or eliminate the management load for users. 

1.7    Q: How much does the sender put at risk?

A: The sender must post a bond at least as large as the size required by the recipient.  It could be pennies or more than $5.00.  See What is a reasonable size for a bond?

1.8    Q: Does the sender have to pay for every message?

A: The sender does not have to pay anything if they are sending email to people with which they correspond regularly, for example to friends, family, co-workers, other professionals, or mailing list subscribers.  These senders will typically be whitelisted by recipients (see “What is a Whitelist?”).  The sender may have to pay if he sends email to someone with whom he has never had prior communication, or to someone who does not want the communication. 

1.9    Q: What is a reasonable size for a bond?

A:  For most people, a good size bond is likely to be somewhere between a few cents and less than $1.00. 

If a recipient demands too large a bond, marketers will avoid them altogether or only rarely take the risk of sending an email.  This might be fine for some users of email, but a recipient’s friends might choose to avoid sending to them as well.  With a very high bond, the recipient risks alienating young or less developed relationships, particularly if the senders are risk-averse.  A sender may not want to risk losing a large sum of money when the relationship with the recipient is tenuous or where an expectation of future interaction is limited. 

On the other hand, if a recipient demands too small a bond, she will end up receiving spam.  It is likely that for each person, there is a unique optimal size.  Over time, more sophisticated recipients will learn what is most appropriate for their own social and business relationships, and set the bond accordingly.  To make it easy initially, recipients can simply take a default size provided by their ISP or escrow agency, or may use the default in whatever software tool they use for mail.  Most users may never need to change the default. 

1.10   Q: Will the ABM be complicated to use?

A: From the standpoint of the average user, the ABM will be simple to use.  The complexity of the underlying system, including the details of its operation, various parties involved, and protocols used can be hidden from the end user, just as the complexity of the underlying Internet or the stock market is hidden from users today.  Existing mail clients can be adapted to hide the complexity and provide a very simple set of options.  ISPs and corporations will be able to automate the setup of the accounts required by the ABM for their users.  Users of email who want greater control of their accounts (or greater visibility) or want customized options will be able to set up their own accounts or have access to services that provide greater levels of control. 

1.11   Q: How does it work (in more detail)?

A: The inbox of the recipient is protected by a whitelist.  The recipient has control of which identities are on the whitelist.  Any email sent from a sender listed on the whitelist is immediately delivered to the recipient’s inbox.  Email from a sender not on the whitelist is blocked and the sender is sent a challenge message.

Up to this point, the design of the ABM is quite similar to existing challenge-response systems, but hereafter the approach differs. 

With the ABM, the challenge message contains a request for the sender to post a bond to an escrow account controlled by the recipient (see “Q: What is a reasonable size for the bond?” for a discussion of bond size).  The recipient’s escrow account can be set up in advance or when first required.  The recipient can set it up with a third party escrow service, or it could be set up on behalf of the recipient by their ISP, a bank, or by their employer. 

The challenge reaches the sender in both human readable and machine-readable formats, which a sender to manually respond to the challenge, but also lets software operated by the sender automatically respond.   If the sender chooses to accept the challenge, they authorize posting of the requested bond.  Once the bond is posted with the recipient’s escrow service, the recipient’s mail system receives a notification.  This notification triggers delivery of the original email into the recipient’s inbox. 

When the recipient opens the email, she can see the associated bond and may decide whether or not to claim it.  She might think, for example, "no, this is spam, I'm going to collect the bond", or think, "This is a direct marketing offer for a product I am not interested in.  I will collect the bond as compensation for having to review it."  Or they may say to themselves “this is interesting,” then review, keep and/or respond to the mail and not collect the bond, as they would if the email is from a friend, family member, or business associate. 

By default, if the recipient does not explicitly choose to keep the bond, the bond is automatically returned to the sender after a few days.  If the recipient chooses to keep the bond, she notifies her escrow service by clicking on a button.  The value of the bond is then deposited into her own general-use account.  

To avoid the extra work of having to respond to challenges by hand, a sender may choose to activate a policy, similar to the following: “If I ever send someone an email and they respond with a challenge, as long as the amount of the challenge asks for less than $0.50, it’s ok to automatically post the bond.  For any requested bond larger than $0.50, return the challenge to my inbox so that I may review it and decide.”  Such a policy could be implemented in software on the sender’s mail servers, and would reduce the number of times direct intervention is required.  With such a setup, most of the time the posting of bonds would be transparent and automatic.  

1.12   Q: Can you show me a diagram?  

A: For a diagram that outlines the various parties, their interactions and the steps involved see the How it Works document. 

1.13   Q: How does a sender post a requested bond?

A: The sender posts a bond by authorizing their escrow agency to move the amount of money requested as a bond into an account controlled by the intended recipient.  This can be done with a mouse click when the sender receives the challenge, or they may set things up so that it can be done automatically by establishing a policy with their own mail servers.  See “How does it work (in greater detail)”

1.14   Q: How can I add senders to my whitelist?

A: There are several ways to add senders to your whitelist.  One way is to use your mail tool when a message from a new sender arrives.  You could do this simply by clicking on a button.  Another way is to use your email software to manually add a sender’s identity by typing it in.  Since this could be a nuisance if you are adding many senders, you could make use of a software feature that automatically adds your list of contacts or scans your archived mail folders and your outbox for identities of those who are already acceptable to you.  This would need to be done only once during setup, though there may be reasons to manage the whitelist later.  


When sending email, your mail system can automatically add the identity of the recipients you have specified if they are not already whitelisted.  This way, when they reply to your email they will already be on your whitelist and the reply will not be blocked. 

 

A third automatic method is analogous to a “letter of introduction” commonly used in the last century.  If someone you know “cc’s” a third party they want you to know, then the system can automatically grant that person a temporary waiver until you can evaluate whatever they send.  

1.15   Q: How will use of the ABM change the value of email as a medium?

A:  It will help restore the value of email by making it reliable again. 

In addition to eliminating spam, it expands the use of email by allowing payments, making it easier for users and companies to maintain relationships.  It increases the value of the information marketplace by allowing marketers, first-time senders and recipients to fine-tune their communications, letting each side tell the other what they want and how much they are willing to pay for it. 

1.16   Q: When everyone uses the ABM, what are the effects?

A: By participating in this system, you help improve the quality of information exchanged through email, and reduce unnecessary waste and email volume that clogs networks and increases costs.  Such costs are ultimately are paid for by consumers and businesses.  In general, everyone’s productivity will increase, with the exception of the spammers.  You’ll be able to immediately prevent the delivery of billions of spam messages that are designed to break through today’s filtering systems from landing your mailbox.   You will also help maintain the values and promise of email – and squarely put the “cost” on those who abuse the system.  This is in contrast to some other proposed solutions (economic or otherwise), some of which tax everyone indiscriminately and degrade the value of email. 

1.17   Q: So I get back control of my mailbox?  

A: Yes, control you will get.  No more spam.  One exception: if you do receive email from someone you don’t know, it will have money attached.  Although the default bond size will probably work fine, you’ll be able to fine-tune it if you like.  Set your bond size just right and you can turn what would have been an annoyance into something you are happy you received.  

If you never want to receive email from someone unknown to you, you can simply use the whitelist part of the ABM by itself. 

1.18   Q: Why does the ABM work?

A: It works because it lets both the recipient and the sender cheaply negotiate the terms under which both want communication.  This is accomplished without third party human mediation or taxes.  The low costs are possible because software on both sides can handle the first few rounds of communication – no human involvement unless they want to be involved. 

Unlike existing challenge-response solutions, the ABM allows relationships to be established entirely via email without requiring the sender to use other forms of communication such as the phone, the web, or instant messaging. 

1.19   Q: Paying someone you know to receive your email seems weird.  What about etiquette?  

A: Etiquette will evolve around this mechanism, just as etiquette has evolved around voicemail, email and instant messaging.  The design of the ABM assumes honesty, but will ultimately punish those who abuse it.  If you improperly collect the bond or set your required bond too high, senders will take you off their list.  See What is a reasonable size for a bond?

1.20   Q: Why wouldn’t you just seize the bond all the time?  

A: Nothing in the ABM directly prevents you from always seizing posted bonds.  However, by always seizing bonds you could hurt yourself more than you hurt others. If you just try to make money off other people, then they will stop communicating with you; marketers will quickly blacklist those recipient identities that always seize the bond, or achieve the same effect by tracking and managing lists of those senders that regularly release it.  See the ”honeypot” question. 

When you collect bonds more often, you increase the costs to the senders.  Consequently, less email will be sent to you, and you probably do not want to lose email from you friends or work associates.  But when spammers are the senders, collecting from them is ok.  So, rather than keeping the bonds all the time, you will want to keep them from spammers, but not from your friends. 

1.21   Q: What prevents the recipient from taking the money, regardless of the message value?

A: The ABM enables the recipient to seize the money solely at her discretion.  Nothing, other than perhaps etiquette and good judgment, prevents claiming a bond. 

Why is this ok?  The ABM puts the burden on the sender to think carefully about to whom they are sending email.  If it really is to a friend or acquaintance, the sender should have no fear of sending an email and, if necessary, posting the bond.  

1.22   Q: Who gets the payment if a recipient decides the email is spam?   

A: The recipient is the main benefactor.  However, a small portion will be necessary to cover the costs of the escrow agencies and to provide the right incentives for the ISPs or enterprises that operate the recipient’s and sender’s email accounts.  This size of this portion should be low (perhaps a few percent) due to competition between service providers. 

1.23   Q: Can I keep my existing email address?  

A: Yes you can.  There is no reason to lose your present email address if your ISP or web-mail provider supports a system that implements the ABM.  Even if you regularly access your mail with a traditional client such as Eudora or Outlook, you should be able to keep your address.  However, if you switch providers, you might not be able to take your address with you.   This is no different than the way it works today. 

1.24   Q: Is the ABM a universal spam cure-all?

A: No.  There are certain types of mailbox uses for which the ABM would be inappropriate.  For example, suggestion drop boxes, sales and info email addresses, and any situation where the recipient wants no barriers, what so ever, to be placed in front of the sender. 

For example, the New York Times, CNN, and many local newspapers and broadcasters have an email address that people can use to send anonymous tips of breaking stories.  Any additional barrier on such addresses address, aside from the unavoidable costs to the sender of taking the initiative, is too much.   In cases such as these, recipients can set the threshold to zero cents, and may want to use an appropriate filtering solution.  Fortunately, due to the small number of people who would get submitted emails, spammers may not even be justified in sending to these addresses. 

1.25   Q: What if the sender does not have an escrow account when they are challenged?

A: If the sender does not already have an escrow account setup, they can set one up before they respond to the challenge.  The challenge email can contain instructions as to where to go to get started.  Alternatively, they can contact the recipient through other means, and ask to be added to their whitelist. 

To aid the adoption, if the recipient chooses they can optionally include in a challenge message references alternatives other than bond payment that do not require account creation with an escrow agency.  During early days of adoption, few people will have escrow accounts, so this alternative can make things a little easier for the typical sender until the infrastructure becomes widespread. 

For example, the alternative challenge could be a CAPTCHA (like a Turing Test), where the sender is required to take a simple test that is designed to prove they are human, similar to what is used today by challenge-response systems.  See “Q: How does the ABM compare to Challenge-Response?”

1.26   Q: Will I have to check a second mailbox for email that was misclassified?

This is an option, but not a requirement.  The recipient’s mail server can be instructed to deliver email from a non-whitelisted sender (a suspect sender) into a separate mailbox (commonly called a ‘grey mail’ box).  The recipient can then view the contents of this mailbox at any time.  When notification is received from the recipient’s escrow agency that a sender has posted a bond for a particular message, that message is ‘promoted’ out of the ‘grey mail’ box and placed the recipient’s primary mailbox. 

1.27   Q: Will using the ABM require a credit card or a bank account?

A:  In order to post bonds or collect them, users of ABM will need an escrow account.  Escrow accounts can be set up in advance for users by their ISPs or by their employers.  Alternatively, users can set up an escrow account directly through an escrow agency on their own.  Users should be able to support multiple email addresses per escrow account if this is desired.  

 

To post a requested bond will require the sender to have an account that has a high enough balance.  The funding of this account could be accomplished through a credit card payment, or through other payment means.  In the case where the account is setup by an ISP, the funding for this escrow account balance could come from an additional payment on top of that for the first month of service. 

 

If a recipient claims bonds, over time the sum of claimed bonds will accumulate unless they are spent paying bonds to others.  At some point, if the balance gets high enough, the recipient may want to transfer money out of the account to a general-purpose bank account.  The ACH checking network would be suitable for these transfers, if the size of the transfer was set large enough to offset the transaction cost.

 

2         Bond and Warranty

2.1    Q: What is a bond?  What is a warranty?

A: In lay terms, a bond is a risk that a person on one side of a transaction takes to prove to the other party that he will find the completed transaction valuable. Technically, this is described as a “contingent liability with an expiration date”.  A warranty is a promise to pay compensation for dissatisfaction after the transaction completes as opposed to setting it aside in advance as with a bond.  See the previous section, Q: What is a Bond?

2.2    Q: What is the purpose of a sender posted bond for email?

A: The purpose is to make spam too expensive for spammers to send. The bond is required only for first-time communication from a stranger, or for subsequent communication if a recipient has removed the sender from her whitelist. 

The sender who believes his message is not spam is willing to put up that money - to risk it - to prove that if the recipient reads the email, they will agree that it is not spam.  Spammers, in general, cannot afford to take this risk.  

Of course, the bond can also represent a pledged amount of money a legitimate marketer is willing to spend to reach a person in exchange for his or her time.  Again, the recipient can decide to accept it or not. 

2.3    Q: Why a bond and not a warranty?

A: For tangible products and services, a higher quality warranty (one that is likely to be more costly to provide if requested) implies that the goods offered will satisfy.  Someone offering a poor quality product or service will find warranties more expensive than someone offering higher quality because they will need to spend money fixing their broken promises.  The good guys incur much lower warranty costs.  In the digital world, such a warranty can be used to imply “even though you don’t know me, my message is worth your time.”

The trouble is, in the online world, it is possible for the party offering a warranty to “split the scene” after the primary transaction completes, and just disappear.  This means there is no way to track them down, and no way to enforce the claim on the unpaid warranty.  Warranties cannot be used.  In short, the Internet is like the Wild West, so it's wise to collect cash, up front, before providing spending additional effort. 

It is for this reason we propose a bond, paid up front, rather than a warranty.  The bond goes to a third party before the transaction completes.  The third party, who requires both a good reputation and significant sunk costs to retain and attract customers, will not disappear after the transaction, even if the sender does.  Therefore a claim on the bond can be effective, and the recipient gets paid the amount of the bond. 

2.4    Q: How is an Attention Bond different from a product warranty?

A: There are two primary differences.  The first difference is that with the Attention Bond, the money for the bond is collected up front, yet with a warranty, it is only promised. 

Attention Bonds also differ from standard product warranties in that recipients of email get to choose the size of the bond, allowing customization.  Usually, in the non-electronic world, the cost of customizing a warranty to each individual buyer of a product is too great and so it is rarely done.

2.5    Q: What are the advantages of allowing customized (per-person) bond sizes?

A: The advantage is primarily economic.  Different people have different value for their time, have different tastes, and may want to receive more or less communication from outsiders.  The best bond size will be somewhat different for each person.  A fixed bond has little flexibility and cannot accommodate these differences. 

2.6    Q: What is my optimal bond size?  How often should I seize the bond? 

A: You should be guided by three factors.  First, if your time is very valuable, you want to set a higher warranty level.  If high enough, any strangers are unlikely to bother you.  Second, if new information is valuable to you, you should set a lower warranty level.  This encourages more people to contact you with new ideas, observations, and information.  Finally, you need to decide when to force senders to honor their warranty.  If they’re bothering you with useless sales pitches, then go ahead and claim it -- they’ve wasted your time.  If someone is your long lost high school buddy, then you’re glad they reached you and you don’t need to bother claiming it.  Pick the factors that are most important to you.

 

3         Comparison to other Approaches

3.1    Q: Why won’t filters solve the problem?

A: Technology-based filters are required in many situations and useful, but they don't solve the problem. And they have two terrible side effects. First, they create a technical “arms race” - with spammers on one side and filter makers and Internet service providers on the other.  You, the recipient, are stuck in the middle. This kind of battle only increases the volume and variety of junk the spammers send to try to get their message through.  Second, while some filters claim to get closer to 99.8% effectiveness - false positives are still a problem. The incidence of false positives (a false positive is good email that is incorrectly classified as spam) is increasing with filters already in use as they are modified to include more screening criteria and rules. 

For many, the occurrence of these false positives is intolerable. For example, AOL is constricting its filters so tightly that some moms coordinating after-school activities can no longer rely on email and are returning to the phone. Admissions departments are having email acceptances simply "dropped" as bulk mail, which means students don’t receive them. Emails that include website addresses are often determined by the filters to be “spam” even between people with a long history of communications between their two addresses.

Even spam filter experts at the January 2004 MIT conference on spam (www.spamconference.org) report losing "good mail" from friends and business associates - including valuable contracts - in their bulk mail and spam folders because they were misclassified. 

One commonly implemented means to address the problem of false positives it to provide a ‘grey-mail’ box, in which suspect messages are placed for later review.  Unfortunately, although use of a grey-mail box reduces the likelihood of missing an important email, there are two problems.   Unless you check your ‘grey-mail’ box as often as you do your regular inbox, delays are introduced.  And, if you have to periodically go through the grey-mail box to check to see if something important was misclassified, you still end up having to look at all the spam.

Both of these side effects of filtering- the technical arms race and false positives- devalue the entire medium of email.  They damage email’s accessibility, convenience, reliability, authenticity, and low cost, and destroy the way it helps people and creates communities.  And filtering provides no incentive to the “good” players using email – personal users, legitimate businesses, and marketers – to improve and fine-tune their communications.   It provides a lot of incentive to spammers to figure out how to outwit the filters.

3.2    Q: What about other market-oriented approaches?

A: As compared to email-stamps, a flat tax on email, or per-email postage fees, the Attention Bond Mechanism has the advantage that charges are levied against the sender only when the recipient claims the bond, rather than every time an email is sent.  Between people who have whitelisted each other, the cost sending email via the ABM is the same as it is today – indistinguishable from zero.  Solutions that advocate a per-email charge raise the costs for everyone - spammers and non-spammers alike.  The result is the loss of the cost advantage of the medium.  

With computational challenges, where the sender’s computer is forced to compute the answer to a suitably difficult problem, the cost incurred by the sender is non-recoverable. It is a pure loss.  Literally, the sender has been forced to pay with time and energy and to heat the environment with their CPU.  (While a sophisticated scheme of sharing or tracking compute cycles and distributing problems of general social value would be possible to set up, this overhead is unlikely to be worthwhile, and computation is not nearly as flexible or tangible as money from the perspective of the recipient.) 

Worse, in order for a computational solution to really work, the total cost of providing the CPU time would need to be comparable to the cost of a bond – perhaps several cents.  At around $0.00001 per CPU-second, this could mean several thousand seconds, introducing an unacceptable delay in delivery.  If computed in advance, the work effort must be tracked, similar to the accounting for cash, and thus no better than the ABM. 

Another proposed bond approach is to require companies to post a single large bond with a trusted entity, usually the maker or service provider of anti-spam filtering systems (see “How does the ABM compare to Ironport’s Bonded Sender Program”).  Similar to community filtering, if enough recipients indicate that an email is spam, the sender is required to forfeit the bond.  Unfortunately, this solution only works if the filters work, and filters have problems with false positives.  As it is a form of community filtering, this approach also has the ‘tyranny of the minority’ problem in that others end up deciding what you get to read.  Since the value of the forfeit bond is given to the filtering company itself or to some otherwise uninvolved third party (perhaps a non-profit), the single bond approach lacks the incentive compatibility of the ABM.  The recipient does not get compensated for their lost time or annoyance.

3.3    Q: Isn’t the Attention Bond Mechanism really a combination of several other solutions?

A: The ABM is essentially a combination of several simple and well-known technologies.  The ABM combines whitelists, challenge-response, digital identities and authentication with an agent-enabled negotiation and payment system. 

Use of stronger identities, combined with the whitelist, allows email from pre-approved senders to be correctly identified and routed around the monetary challenge with low cost.  Challenge-response gives the sender notification that their email didn’t make it and provides them a chance to ensure that it does.  The agent-based negotiation allows the cost of both the challenge and response to be handled cheaply by computers. 

3.4    Q: Why is the Attention Bond Mechanism a good solution?

A: Unlike pure technological approaches, such as all types of filtering, the ABM is less subject to an arms race.  It will not result in an increase in spam email traffic.  It short-circuits the expensive cycle of spammers and filter makers endlessly trying to out smart each other.  Specifically, it punts the arms race into the realm of cryptography, where carefully controlled communication is well studied and has known outcomes. 

False positives are no longer a problem; important email can be sent reliably without concern for loss.  If email does not get through to the recipient, there is no way for them to collect the bond.  Without false positives, there is no longer a requirement for recipients to scan a list of suspect email to prevent accidental deletion, saving time and money.

The ABM gives each individual the ability to have their own definition of spam, accounting for their unique tastes.   In contrast, community based filtering designs, such as Cloudmark or Yahoo’s filters, may delete email that you want because it was thought to be spam by other community members.   One could consider this problem to be another form of false positive, or a tyranny of the vocal minority.  

The ABM facilitates exchange instead of shutting it down.  It allows sender and recipient to cheaply negotiate the terms and conditions under which both can be satisfied and gain.  Filters, which cut off communication, stop this process from happening and therefore stop potentially gainful exchange and relationships.  

The ABM allows email from automated systems to go through as long as they are from whitelisted addresses or the sender has posted the bond.  Challenge-response systems, with reverse-Turing tests as the only means of validating the sender, stop the flow of email from automated systems, which are very cost efficient and their use is often desired by both sender and recipient.  

Unlike banning and labeling laws, the ABM is not subject to problems with multiple jurisdictions, lack of incentive compatibility, and does not have the costs of enforcement and adjudication.  

3.5    Q: What other benefits does deployment of the ABM provide?

A:  There are many other benefits, starting with support for quality direct marketing.   Many Fortune 1000 companies, legitimate small businesses, and others have shied away from email for fear of being viewed as a "spammer" – something that could compromise the integrity of their brands and their hard-earned reputations.  Attention Bonds let these legitimate marketers back into the medium.

Next, use of sender bonds will result in a reduction in search costs (the overhead of finding someone’s address).  With sender bonds, recipients have the incentive to publish their email address rather than obscure it.  There is no more fear of having your email address “spidered” by search software, viruses or a screen scraper.  If you are sent an email, it is a chance to earn a payment. This ultimately adds value to the information marketplace and communities created by it, because legitimate people and businesses can find you easily and put up the bond to reach you.  

The use of sender bonds will also allow mid-sized ISPs to continue to compete with major ISPs. The biggest players (AOL, Microsoft-MSN/Hotmail, Earthlink, etc.) are very focused on spam because of the added infrastructure costs to carry the traffic of billions of messages each day.  Spam now constitutes more than 60% of email.  These trafficking costs are huge.  But, as hard as it is for the large scale ISPs, it is even harder for the mid-size ISPs, which have fewer resources. Unless the spam problem is addressed in a cost-effective way, small and mid-sized ISPs will keep dropping out, creating less competition and ultimately less choice and value for the consumer, since only the larger ISPs can support and suffer the added costs over time.

 

Other benefits include:

3.6    How does the ABM compare to other solutions?

Solutions and solution classes discussed below. 

3.6.1      How does the ABM compare to regulation and legislative solutions (such as CAN-SPAM)?

<to be completed: enforcement costs, tax collection costs, not incentive compatible with the recipient (recipient has no opportunity for compensation), evasion costs for spammers, deadweight loss. >

3.6.2      How does the ABM compare to filters?

The ABM will not suffer from false positives and false negatives.  No period visits to a grey-mail box are necessary.  With most filters, if an email is filtered to the grey-mail box or erased, the recipient sender does not receive notification.  With the ABM, the sender receives a challenge where they can post the bond to ensure delivery.  Whereas filtering is subject to an arms race of filters vs. ever changing techniques used by spammers, the ABM makes use of stronger means of identity, which will ultimately uses cryptography. 

 

With the ABM, the sender runs the risk of paying the recipient the amount of the posted bond.  With filtering, the recipient has no chance of getting any compensation. 

 

Filters use ex ante classification (i.e. they look at the content before the email is delivered).  A filter can be considered an externalization of the recipient’s preferences.  The filter judges message quality, based upon its contents, in behalf of the recipient.  However, the preferences are not exact, but are simply an approximation, subject to the form and limitations of how they are represented in the filter and the knowledgebase available to it.  The ABM uses ex-post verification.  After the email is delivered, it is the recipient themselves that decides if it is spam.  The recipient’s assessment of the email is certain to be better than that of a filter (or at least for the foreseeable future).

 

The popularity of filters leads to an increase in the overall amount of spam sent, since senders may try multiple permutations of the same basic message to get a message through.  This leads to an increase in traffic, most of it junk.  While the ABM does require some additional communication to occur beyond just the delivery of the original message, the extra transmissions can be relatively small.  Since second attempts are no more likely to pass through than the first, the incentive to try multiple messages disappears, and with it the excess bandwidth consumed. 

 

(See Why won’t filters solve the problem?)

3.6.3      How does the ABM compare to sender-pays solutions?

Sender-pays is a general term which describes a class of anti-spam solutions that are designed to pass some of the recipient’s costs to the senders, or increase the cost to senders.  The primary effect is that senders who bear more costs will be more targeted (rather than indiscriminate) when sending.  If the costs are sufficiently high, senders will choose not to send at all.   

 

There are several forms of sender pays, including a flat tax, a per-message delivery fee (postage), computational challenges, and bonds.  Although the sender clearly pays when required to take a CAPTCHA (with their effort/time), challenge response is not usually considered sender pays.  The ABM is a form of sender-pays. 

 

(see How does the ABM compare to a flat tax?, How does the ABM compare to computational challenges?, How does the ABM compare to a flat postage fee?, How does the ABM compare to Ironport’s Bonded Sender Program?, Q: How does the Attention Bond Mechanism work?)

3.6.4      How does the ABM compare to computational challenges?

<to be completed: Hashcash, Cam-Ram, Bankable Postage>

3.6.5      How does the ABM compare to community filters?

<to be completed: Yahoo, Cloudmark, Vipul’s Razor>

3.6.6      How does the ABM compare to challenge-response with CAPTCHAs?

The key advantage over traditional challenge-response is the use of automatic posting and return of the response (in the form of a bond).  This removes the requirement for direct human interaction and does not exclude email that is automatically generated and sent.  Also, since the human task of solving a CAPTCHA can be outsourced to a place where labor is inexpensive, bulk senders can reduce their costs, yet individual senders with a higher cost of labor pay comparatively more.  

3.6.7      How does the ABM compare to one-time email addresses?

<to be completed: One time addresses, distinct-per user, or per-group, allows whitelisting and black listing, but with additional up front communications overhead and management>

3.6.8      How does the ABM compare to Whitelisting? 

While a whitelist can do a good job, especially when coupled with stronger sender identities, a whitelist alone is not enough.  The reason is there are unknown senders out there from whom you want email.  In order for a conversation to start with these unknowns, there must be a way for them to contact you.  This means one of two things: you force them to use another medium, such as the telephone, fax, or snail-mail (non-electronic mail), or you must provide a grey-mail box or alternative address that you check on a regular basis.  The first approach creates more costs for the sender, the other creates more costs for you. 

3.6.9      How does the ABM compare to Blacklists?

Blacklists are lists of sender addresses and source mail servers that have been known to send spam in the past.  Information from many sources (available to receiving mail servers) help indicate where (and who) an email is from.   By deleting email that arrives from those named on the blacklist, spam can be reduced. 

 

If spammers were confined to using the same machines (with the same IP addresses) to send all their spam, blacklists would work quite well.  Unfortunately, spammers are able to acquire new machines and new addresses from which to send mail with relative easy and low costs, either through grey-market ISPs (often located in other countries) or by making use of compromised machines (those that have been broken into by hackers).  Since source identities are cheap, blacklists are largely ineffective, and like filters, subject to an arms race. 

 

The ABM uses stronger identity for the senders, and uses a whitelist.  Emails sent from someone not on the whitelist are challenged, rather than deleted or quarantined in a grey-mail box.  The sender, if he includes a return address, can be notified immediately that his mail did not complete its journey, and can choose to authorize a bond to ensure delivery. 

3.6.10 How does the ABM compare to a flat tax?

3.6.11 How does the ABM compare to a flat postage fee?

3.6.12 How does the ABM compare to using email stamps (e-stamps)?

A: With the ABM, you don’t pay if you’re not sending spam.  Email can remain free whenever it is between two parties that want to communicate -- even when they are initially strangers.   With e-stamps, you pay every time, all the time, regardless of intent or use.  Valuable communication will be lost.  

 

A flat tax (or postage fee) must to be collected.  Even if the government subsidizes the cost of implementing and operating a collection system, the proceeds do not directly go to recipients, but rather to the government or private agency authorized do to the collection.  In contrast, with the ABM, the recipient receives the bulk of the financial benefit as a transfer from the sender. 

 

A flat tax or per-email postage also has the disadvantage of being ‘one size fits all’.  For many recipients, the default flat tax may not be high enough to eliminate spam.  Individual preferences for quality and content are possible with the ABM. 

3.6.13 How does the ABM compare to Brightmail?

Brightmail’s solution is a form of filter, where the filter rules are generated dynamically at a central facility and then published out to all the mail servers of its customers.  As a filter, it is subject to the problems of false negatives, false positives (very few in their particular implementation), and includes a grey mail box.  Brightmail has the operational overhead of running an operations center to create new rules, due to the arms-race nature of filtering.    The costs for this are then passed down to the customers.  The ABM does not use filters. 

Senders (primarily organizations that intend to do broadcast email campaigns as part of their business operations) may pay, through Ironport’s Bonded Sender Program (in partnership with Brightmail) to ensure their email is delivered through the filters.  In a sense, this is similar to paying protection money: ‘If you pay us, we won’t block your spam’.  The drawback to this approach, from the standpoint of the recipient (target mailbox owner), is that none of the money collected reaches them.  With the ABM, the bulk of payment by senders is used as the risk, and is transferred to the recipient if collected.   

(See Q: Why won’t filters solve the problem? And How does the ABM compare to Ironport’s Bonded Sender Program?)

3.6.14 How does the ABM compare to Ironport?

<to be completed: hardware solution for software filters>

3.6.15 How does the ABM compare to Ironport’s Bonded Sender Program?

<to be completed: sender-pays, use of bond, but recipient doesn’t get seized bond, bond size is not set by recipient, and pricing scheme increases start up costs for small companies>

3.6.16 How does the ABM compare to Goodmail? 

3.6.17 How does the ABM compare to Microsoft’s Penny-Black?

Penny Black is the name of a set of spam reduction projects at Microsoft Research, and is not a specific solution to spam.  (See How does the ABM compare to Bankable Postage?)

3.6.18 How does the ABM compare to Bankable Postage?

 Microsoft’s Penny Black group’s proposal for Bankable Postage is similar to the ABM, with the exception that the ABM allows transfers of utility (money) between sender and recipient, while Bankable Postage requires some additional transfer steps to achieve some aspects of the ABM.  Also, with Bankable Postage, the currency of transfer is sunk computational costs, and while possible, it does not include recipient chosen variable bond sizes. 

3.6.19 How does the ABM compare to Microsoft’s “Caller-id”?

Caller-id is a proposed means of increasing the strength of the sender’s identity in an email.  In particular, the source mail server of the message (domain) can be verified as valid for the sender listed in the message.  Microsoft and others propose that senders of email register the possible source addresses of their mail servers with the Internet’s Domain Name Service (DNS). 

In general, strengthening identity is needed for many of the proposed solutions, including the ABM.  When coupled with a whitelist, strong identity can be very effective at blocking spam.  However, whitelist and identity alone do not solve the problem of first contact.  If you block everything from those you do not already know, they are forced to contact you through some other means.  This means added cost (even to senders you want to hear from), and delay.  The ABM solves this problem.

3.6.20 How does the ABM compare to Domain Keys?

3.6.21 How does the ABM compare to SPF?

SPF, Domain Keys and Caller-ID are all means of increasing the strength of the sender identity, which make it more costly for spammers to pose as someone else.  This makes whitelists more effective. 

3.6.22 How does the ABM compare to Yahoo’s Filtering?

Yahoo’s anti-spam system uses a combination of regular filters and community filtering (although it may use other technologies as well).  Drawbacks to their approach include false negatives and false positives, need for a bulk mail folder (grey-mail box), and the ‘tyranny of the vocal minority’ of the community filters.  (See How does the ABM compare to community filters?, and Q: Why won’t filters solve the problem?)

3.6.23 How does the ABM compare to Cloudmark?

<to be completed: both are forms of community filtering: not individualized, neighbors decide what you get to read>

3.6.24 How does the ABM compare to Vipul’s Razor?

3.6.25 How does the ABM compare to Reputation Systems?

<to be completed: Brightmail’s reputation system, or others, such as a email address accrediting agency, etc>

 

4         Security, Viruses, Honeypots, and Authentication

4.1    Q: What about possibility of fraud or a virus triggering bond payments?

A: There is a possibility of fraud (see the next “honeypot” question too).  It might be possible for someone to write a malicious virus that causes people's mail tool to send messages to addresses owned by the virus writers.  The virus writers could attempt to claim the warranty and keep the money.

Proper safeguards will be important, but as with any financial network, it may be impossible to completely eliminate the risks.  However, liability, at maximum, would be limited to the current balance in the compromised person's escrow account.  In addition, escrow agencies could provide limits on liability, similar to the way credit card owners have limited liability if their card is stolen.  Due to the tracking of payments and means of getting money out of the system for use, covering one's tracks is made more difficult than with a purely anonymous system.  

4.2    Q: What prevents someone from setting up many mailboxes, setting a high warranty, advertising the addresses everywhere, then collecting all of the warranties (similar to creating a ‘honeypot’)?  

A: Nothing prevents this from happening, and we’ll argue that this is not a bad thing.  If marketers stand to lose money when sending email to unknown addresses, they have the incentive to find out ahead of time if these addresses actually belong to a consumer that might buy their product.  The very threat of this type of thing will stop frivolous broadcast spam.  It is quite likely that a secondary industry will appear to help marketers determine the validity of new email accounts in advance of their ‘first contact’ campaigns.  

Should would-be harvesters of marketing warranties create many new identities; the net effect will be that smart marketers won’t just send money to random new user IDs.  They’ll send it to people who’ve proven to be valuable contacts in the past.  The presence of honey and of honeypots causes both sides to do the right thing.  Good netizens will welcome the honey.  Honeypots create targeted and valuable communications.

As with banking and credit agencies, reputation agencies will emerge to serve the marketing community.  Marketers will target campaigns at those identities with proven track records of making purchases, while new and unproven identities will have ‘bad or unknown credit’.  As a result, informed senders will not send at all or will only be willing to pay a very small bond due to the high risk of dealing with an unknown recipient. 

4.3    Q: Does this mechanism require strong identities?

A: While it may not require identities to be cryptographically-strong, stronger identities are definitely a component of any workable and successful solution to spam.  Whitelists that rely solely on the sender addresses and other easy to fake header information of email, allow a spammer to guess which identities may be on the whitelist, fake an identity, and get their email through. Millions of people would have the source address “orders@amazon.com” on their white list, and so without stronger identity this knowledge can be easily exploited.

4.4    Q: What is the role of stronger authentication of individual identity?

A: Because it is trivial to spoof the source address of an email, the adoption of a stronger means of authentication is an important aspect of the design. Prior to spam there wasn't enough of a reason for most people to switch to a more authenticated format. Authentication was also hindered by the fact that most mail tools were (and still are) clumsy at best in signing messages automatically and managing identities. This technology can be made simple for people to use.

4.5    Q: Why are Certifying Authorities not needed for individual identities?  

A: Certifying Authorities are needed when you wish to tie a real-world identity to a digital identity, thus leveraging the real-world reputation.  With email between individuals, reputation can be established over time, entirely within the context of the medium.  While some people may wish to have their identities signed by a CA, it’s not necessary.  What is important is that it is difficult for someone to fake someone else’s identity.  Several commonly used public-key crypto systems have this property.

 

5         Infrastructure and Costs

5.1    Q: Doesn't this require infrastructure?

A: Absolutely. But the spam wars already require a huge amount of infrastructure and it is growing exponentially as the technical arms race continues. ISPs are hit hard, corporations are hit hard, and so are consumers. It costs time. It costs money. It costs brainpower. Any real solution will require infrastructure. So that money should be spent on the right solution and the right infrastructure, which will put an end to the escalating costs. In this case, that means using either bearer bonds or an escrowed "wire transfer" to facilitate the exchange of warranties. Mail gateways that service large user bases (Hotmail, Yahoo and major corporations and ISPs for example), will need to provide their users with whitelist management and identity based blocking at their gateway, or at least allow clients to implement a means of doing so on their own.

5.2    Q: Who runs the payment system?

A: There will likely be several parties involved.  Each sender and recipient will need a relationship with an escrow agency, where the funds they make use of for posting warranties are kept.  For most users, the agency could be their current ISP.  Marketers will maintain relationships with special escrow agencies that are focused on their unique needs.  One or more underwriters of the electronic payments will be necessary, independent of the escrow agencies that maintain a relationship with customers (senders, as individuals or as marketers, and recipients).  

5.3    Q: How will the costs of tracking the warranties be covered?  Can it be done cost effectively and or will such costs prohibit the adoption of the system?  

A: Ultimately, the senders pay for the cost of the infrastructure, analogous to the way users of the U.S. mail system pay for its operation.  The companies that provide the infrastructure, escrow agencies and underwriters, may get revenue from at least two sources: transaction fees and account holder float.  

The majority of this income will be from transaction fees - a small commission on any warranties that are claimed by recipients.  Knowledgeable marketers consider the lifetime-value of acquiring a customer when deciding whether or not to target them.  If this lifetime value is high enough, the marketer can justify significant acquisition costs – and spend money to gain a new customer.  The ABM provides a means for companies to reach new customers, as well as maintain relationships with existing ones.  If a marketer wants new customers and sends out bulk emails to establish new relationships, many recipients will choose to keep the warranty.  Nevertheless, for many marketers, it will remain profitable to do the campaign, and the responses they get back over time will let them target their service offers and market smarter.  

Meanwhile, average individual senders (non-marketers), whose warranties are rarely seized, will suffer little in the way of losses yet will be able to accumulate money due to claiming the bonds of direct markers if such email is received.  The result is that most individual users will be able to make use of the system for free, and they may even profit.  If individuals accumulate money in their accounts, it can be dispersed via a wire transfer when it reaches a certain size so as to keep the overhead cost of the wire transfer to a minimum.  The system as a whole will operate similarly to the way long distance companies do their tracking and accounting today.  Telcos track sub-penny transactions across multiple providers for a single call, and do so for a month at a time (there are phone companies that bill by the second, at $0.03 a minute).  At the end of the month they send a single bill.  

Escrow companies can bring in addition revenue by making use of ‘float’, via the practice of lending out currently held money in bulk.  Most individual account holders, or at least those with no prior relationship with an escrow company, will be required to pre-fund their accounts to some minimum ($5 for example).  These accounts may very well accumulate funds during use from claimed warranties and have an even higher value.  With many millions of account holders, the float on the sum of their accounts will be significant, and will help offset the operational costs.  

The bulk of the costs are essentially subsidized by the direct marketers, and the costs are still lower to them than traditional means (contrast losing 10 cents every time for sending an email vs. a loss of 35 cents to send you an advertisement in the mail).  The ISPs and enterprises, which provide email accounts to individual users, can share some of the revenue provided by the float and commissions to cover some or all of their costs.  

5.4    Q: Will existing mail clients need to be changed?

A: To provide the smoothest and most integrated user experience, existing clients will need to be modified, but this is not a requirement.   Those using POP or IMAP to access their mail (some users of Outlook, Eudora, and web mail interfaces such as Yahoo and Hotmail) can initially use an Internet hosted proxy service.  However, over time, makers of these clients and providers of mail services will want to update their user interfaces to provide management of the users’ whitelist and escrow accounts, and to give users the ability to adjust and personalize some characteristics such as the size of their minimum warranty.   Essentially, they will want to update their software and interfaces to support this solution, just as they have made modifications to support the existing filtering and blocking systems now in use.

5.5    Q: Does this design require changes to SMTP?

A: No changes are necessary.  All information needed to make the system work can be wrapped inside a regular message, facilitated by existing standards such as S/MIME.

5.6    Q: What happens if warranties are demanded in foreign currencies?

A: When a sender is required to provide a warranty for a recipient in a country with a different currency, the warranty must be exchanged into the native currency of the recipient.  The exact details of this need to be worked out and are outside of our expertise.  

Sender's may wish to establish escrow accounts managed in foreign countries for foreign currencies.  During account setup, when the account holder funds the account, they could pay with a credit card and the funds would be exchanged at that time at the current exchange rate.  Account funds would be held subsequently in the native currency.

6         Compatibility with Existing Uses

6.1    Q:  How does this system work with mailing lists that I subscribe to?

A: Subscribers would need to add the mailing list’s source address to their white list at the time they signup (this can be facilitated by a link on the lists’ webpage).  When subscribing to a list, the list operator may send the subscriber a challenge (a demand for a warranty), which subscriber would have to post.  If a subscriber removes the mailing list from their whitelist, it can have the same effect as unsubscribing.  The next time an email comes from the mailing list, it will be bounced with a challenge back to the list operator, at which point they can automatically remove the subscriber from their list and prevent future mailings, or elect to post the warranty.

6.2    Q: How is this compatible with e-commerce and customer relationships?

A: For new customers, when signing up on a website, the website operators should notify the customer what identities will be used to send them email.  The customer can add the identity to their whitelist, a simple process that can be facilitated by use of a special link embedded in the e-commerce site’s web page.  If clicked, the link triggers an update to the users’ whitelist.  

In the case that the customer has not modified their whitelist, when the ecommerce company sends them an email (for example, if the email contains a confirmation of an order), the company can decide how it responds if challenged.  The company might respond by posting a warranty as requested, which the customer/recipient would be able to claim and the company accepts as a cost of doing business.  However, the content of the email can be customized with an incentive NOT to claim the warranty (a coupon or discount for future use) that at the same time encourages the recipient to shop again.  Also, any time the customer does claim the warranty, the company will have a record of it and can use this in making decisions for future interactions with the customer.  

The company might decide that demanded warranty is too high, in which case the email is undelivered and the customer will need to log into the web site to get their information.  A notification of the current status of the whitelist can be placed in the account management section of the marketer’s website, reminding the customer they can increase the ease of communication by modifying their whitelist.  

For existing customers, if the customer already has the e-commerce company on their whitelist, no warranty will have to be posted and communications will continue as they have before.  

6.3    Q: What if I have forgotten my password to a website and need it to be emailed to me?  

A: Typically, you would already have the website's identity on your whitelist, so the email with your password would go to your mailbox without being blocked and challenged.  If it is not, the form you use to request the password can give you the correct identity to add to your whitelist before you make the request.  

As an alternative, the form used to request your lost password can ask that you provide an additional passpharse (other than your password) as input.  You add this second passphrase to your whitelist, and the email sent from the website containing your password would contain the second passphrase in its subject line.  Your whitelist would recognize the passphrase and allow the email through rather than issue a challenge to it.  In effect, your whitelist enforces this policy: "allow any email with the passphrase ‘xxxxx’ in the subject line to pass through to my inbox."

6.4    Q: What if I meet someone at a conference and they give me their business card with their email address and I write them?

A: You would post the warranty (depending upon its size), but assume that the recipient would not collect it when they see the note that says “nice to meet you at the conference, I am following up to discuss…” If they do collect the bond, then you know they aren’t interested in talking to you.  We expect that etiquette will develop quickly in this area.  

6.5    Q: How will the ABM work for large institutions?

A: The needs of large institutions, such as universities, non-profits, and large businesses are often different than those of individuals. If the corporation is providing the email accounts, advanced whitelist management capabilities will be needed to implement appropriate policies.  For example, it may be important for members of a company, such as its executive team or managers to be able to broadcast email to employees to make announcements or create mailing lists.  Also, it should be easy to whitelist entire domains or specific administrative groups within or associated with the institution, so divisional, department-wide, or global whitelists are required.

For productivity or other policy reasons, an institution may want to set or enforce certain minimum and maximum warranty sizes (again by division, group, office, person), and be able to track the flow of any warranty payments collected or posted by company employees.  Email will be managed as part of a company’s overall communication strategy; the corresponding server software must be as sophisticated as its environment.

6.6    Q: What does my IT department need to do once we begin using the ABM?

A: Servers that perform whitelist enforcement and management, manage other user preferences, generate and store of identities, facilitate the posting and claiming of warranties, hold inboxes, and communicate with an off-site escrow facility will all be required somewhere in a company’s overall service architecture.  Updates to existing email client software may also be desirable, but not required.  It will be possible to outsource many of these activities, including regular operations.  The entire system could be implemented as a web-based email service, implemented entirely locally (even the escrow accounts), or some combination in between. As the market for such software develops, an IT department will be able to choose their level of operational involvement.  

Unfortunately, like any spam solution rolled out system-wide, some integration will be necessary if a company chooses to operate one or more of the components in-house.  However, there is no reason why the ABM should be any more difficult than other solutions in this regard.  

6.7    Q: What about friends and family?  

A: Email from friends and family on your whitelist comes through to your mailbox as it did before.  A friend or family member not on your whitelist will need to be added to the whitelist in advance (by giving you their email in person or by phone), or they can send you an email with a warranty and you simply accept the email and do not collect the warranty, then place them on the whitelist for the future.  

6.8    Q: How does the ABM work with children under 18?  

A: The Attention Warranty System helps families, parents and children get control of kids' mailboxes. Setting the warranty high enough on kids' email accounts will block porn and other unwanted spam emails, and limit marketers from reaching children. Children can add new friends to their white list on their own if permissioned to do so by their parents (major ISP software such as AOL already provides for various levels of parental permissioning and delegation of authority regarding email, instant messaging, etc.), or see their parents if required. Children using email as sub accounts on major ISPs (AOL, Earthlink, MSN, United, cable companies and telcos) that already have sophisticated parental/minor controls will be able to add escrow accounts and allocations at the discretion of the master account or screename holder who manages the account billing. This is already the case for other fee-based services from these ISPs. Freemail accounts such as yahoo, hotmail, and others, will require credit cards that will be subject to the same governance issues they are today for online shopping and fee-based services.  

6.9    Q: Many people access their email from Internet cafes and do not have accounts with ISPs.  How those without bank accounts, ISP accounts, or credit cards use an escrow account?

A: The Internet cafes can provide an escrow account for their patrons.  Senders using cafes can pay in cash in their local currency to the cyber cafe owner, who can have one or more escrow accounts for use of their patrons.  If recipients claim any warranties put up by a sender, the cafe can keep track and debit from the sender's local account. 

7         Effects on Participants

7.1    Q: If I am a marketer, will this system stop me from reaching my customers?

A: No, in fact it improves your ability to reach them.  Existing customers can simply white list the marketer, so that communication comes through to them, providing the service and quality they expect.  Prospects can do the same, and/or set a threshold or “price” for their attention, which gives the marketer a good sense of the recipient’s interest, value and they can measure their marketing cost against that information and ongoing feedback based on response rates from recipients to various campaigns.

7.2    Q: What are the effects on Marketers?

A: This system helps legitimate marketers. Those who have retreated from email marketing for fear of tainting their brand and products can re-enter legitimately and smartly.  Those skilled in database marketing may have an added advantage in that they can better refine their target lists.  And because it is an economic system that allows the recipients to “signal” and provide information in terms of value and interest back to marketers (the senders), ultimately it makes the marketers smarter and more efficient about how to successfully reach the right targets.

7.3    Q: Will I have to pay taxes on any warranties I claim?  

A: If you are earning significant amounts of money through collected warranties, it is likely that you will be taxed.  The specifics are not yet determined.  We expect that for most people, the sum of money earned in collected warranties will be below the $600 threshold necessary for reporting.  However, in the case where an account owner has earned more, their escrow company can require the owner to furnish their taxpayer ID an can issue a 1099 statement for tax purposes.

 

8         Adoption

8.1    Q: Why would anyone participate?

A: Users of the ABM will get greater value from their email and will not be troubled by spam.  Strangers simply can’t reach you if they’re unwilling to pledge that they will not waste your time.  Corporations will see their costs of trafficking spam greatly reduced, as will ISPs.

8.2    Q: How can user adoption be encouraged?  

A mail tool plug-in or a proxy service can be offered for free that includes a traditional challenge-response system along with means of handling warranties.   This offers immediate benefit for those most troubled by spam, even before warranties are regularly risked.  As the installed base grows, it will become cost effective for marketers to communicate with the participants, and paying the warranties in bulk will be simple.  Because the ABM offers recipients the opportunity to profit from any unwanted interruptions, users have a greater incentive to stay with it than other spam solutions.  

8.3    Q: Why should marketers participate?

A: The ABM allows marketers to reach their potential customers, and is it will be competitive to other means - cheaper than regular mail via the post office.  

8.4    Q: What are the benefits to ISPs?

A: ISPs and web mail providers, aside from ultimately realizing the cost savings of reduced spam, can gain a valuable revenue stream.  They serve a channel to the consumer and as such can obtain a portion of the money shared by all the infrastructure parties in the value chain.  The marketers fund the top of the chain, and the ISP acts as an agent, helping their customers manage flows of information and funds.  The escrow companies and underwriters (some of which might also be ISPs) also stand to make significant profits in the form of transaction fees.

 

9         Social Implications

9.1    Q:  Will this cause a loss of freedom of speech?  

A: No.  People are still free to start their own newspaper, television station, radio station, and do their own desktop publishing offline. They can still send emails to everyone they know and have been whitelisted by, and encourage recipients to forward them on to others.  They can set up a website, list it on search engines, and email random addresses if they are willing to post a warranty, and if the recipient finds the speech of value, then the recipient can read it and not collect the warranty.  If the recipient views it as spam, they can collect the warranty and delete the email.  The right to be left alone is as fundamental as freedom of speech.   Consumers can unlist their telephone number, or sort their mail based on bulk postage vs. first class and throw out the bulk mail.   This is no different.  In fact, if the warranty mechanism helps you rise above the noise of people shouting for attention, it could increase the ability to reach people you care about.

9.2    Q: If everyone starts using the ABM, what happens to anonymous email?

A: Anonymous email without a warranty can still be sent, no different than today.  Mailboxes that do not challenge unknown senders will still be able to receive email from anonymous sources.  However, since many mailbox owners will require a sender to post a warranty if they are unrecognized, email without payment will be blocked (if it didn’t work this way, spam would be rampant).  To address this, several options will be available.  The standard escrow agencies can offer secondary addresses for which they agree not to reveal the identity of the sender unless there is a court order.  These accounts can be funded through a regular account or a separate payment, but would appear as ‘anonymous’ to any recipient.  You as a sender would have to be doing something illegal in order for your identity to be divulged.  This provides the same level of anonymity afforded by websites and webmail companies that let people post and send without revealing their true identity.  

Those who require anonymity beyond this level will still have options, though at increasing costs and less convenience.   For example, companies could offer to receive payment by anonymous digital cash (or cash paid in person or by mail), and email could be sent through these services by accessing them from a cyber-caf.
 
In general, the cost of discovering a sender’s identity can be made arbitrarily large, but as the level of anonymity increases, so will the cost to the sender who wishes to remain hidden. 

10   Other

10.1   Q: Is this really a new idea?

A: The concept of charging the sender, as applied to email, has been floating around the Internet for many years.  In fact, the general concept of paying for the attention of someone else has been around as long as professional services have existed. Accountants, lawyers, doctors and engineers have long charged for their time, either by the hour or by project duration.  The fees involved were high enough to cover the costs of the accounting.  For example, a professional might bill at $200 an hour for a job, $20 of which is lost to the accounting process as overhead.  If you are not a professional who can charge these rates, and say, make $20 an hour, it’s hardly justifiable to use an expensive accounting system.  

The ABM is possible because the costs of the accounting have dropped dramatically due to information technology.  Since the costs are lower, the ability to perform careful accounting is becoming available to everyone, regardless of hourly rate.  Your computer can keep track for you.  When an advertiser wants some of your time, they pay for it (or at least risk the payment) in the form of the bond.  The ABM just gives people the ability to cost-effectively account for and charge for their time, even if the time is measured in seconds.

10.2   Q: So what’s your contribution?

A: As far as we know, we’re the first to formally prove that all parties can potentially be better off than even a perfect filtering technology.  The idea is that promoting the right kinds of valuable electronic interaction among friends, acquaintances, business associates, marketers and strangers can make everyone happier than simply shutting off communication.  For the academically inclined, the proof can be found here – http://ssrn.com/abstract=488444 .

This has implications for how to approach solving the spam problem, what kinds of regulation are fruitful and what should be avoided, and how standards and technologies can work together to make it happen.  We have focused on how to maintain (and to the degree that the email medium has already been damaged by spam, restore) the unique properties and value of email.  Most importantly, we have tried to find a system where everyone has the incentive to improve the quality of the email information marketplace, so that innovation can continue, and to present it as a workable solution.  This system focuses the costs and penalties on those (spammers) who are abusing it, does not unfairly penalize good-citizen users by constricting flow with filters or imposing tax burdens and costs, and provides a valuable way for marketers to connect with existing and potential customers (recipients), while giving the customers control over what is theirs – their mailbox.



Version 45.0, last edited 2004-06-02