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Subject:
From:
Kelly Pierce <[log in to unmask]>
Reply To:
Kelly Pierce <[log in to unmask]>
Date:
Mon, 19 Mar 2001 20:32:59 -0600
Content-Type:
TEXT/PLAIN
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TEXT/PLAIN (132 lines)
You never know who is listening on the Internet.

kelly




The Wall Street Journal


    January 17, 2001


E-People

Online Detective Agency Keeps
An Eye On Potential 'Enemies'

   By STEPHANIE GRUNER
   Staff Reporter of THE WALL STREET JOURNAL

   When critics of companies such as Unilever, Burger King or BMW have
   something nasty to say, it's often Roy Lipski who hears it first. Mr.
   Lipski is the 29-year-old British founder of Infonic Ltd.
   (www.infonic.com), a Web detective agency that keeps blue chips
   informed about their online foes.

   Just this past autumn when Ben & Jerry's loyalists heaped fresh
   criticism on the ice-cream maker's parent company, Unilever NV, Mr.
   Lipski's firm, which daily monitors the Internet for the Anglo-Dutch
   consumer-goods giant, quickly notified it of spreading discontent.

   "Companies are like sieves now," says Mr. Lipski. "If you look at a
   company like Nike, there are a million pages dedicated to Nike of
   which less than half are created by Nike."
   graphic

   Just like a real detective agency, Infonic is tucked away in a
   hard-to-find back alley in London. The small, no-frills office is
   relatively quiet, save the buzz of a dozen or so employees tapping
   away on keyboards as they pop in on online chat sites, newsgroups, and
   news aggregator services, looking for dirt by typing in phrases like
   "boycott Ben & Jerry's" or, say, "Burger King bites."

   With online chat about companies potentially as explosive -- not to
   mention as embarrassing -- as a Jerry Springer show, corporations are
   increasingly hiring online sleuthing services to monitor their brands.
   PR Newswire unit eWatch in the U.S. tracks rumors, employees' and
   clients' gripes, stock banter on investor sites and activists' talk
   online for more than 800 companies. Other firms, such as Internet
   Crimes Group Inc. (www.internetcrimesgroup.com) in the U.S., unmask
   supposedly anonymous online critics as well as cyber criminals.

   Infonic is one of a handful of such sleuthing firms based in Europe. A
   little more than three years old, the company serves some of the
   biggest names in business, including Diageo PLC, which owns well-known
   brands such as Guinness and Burger King, jeans giant Levi Strauss &
   Co. and Shell Chemicals.

   But dabbling in spy work often turns dangerous. Last autumn word
   spread fast online that Sony Corp. had used Infonic to fight an
   ongoing environmental campaign against it. A document from Sony,
   detailing activists' campaigns as well as a strategy for fighting
   organizations such as Greenpeace and Friends of the Earth -- who are
   pushing for regulations to make electronics manufacturers responsible
   for their toxic waste -- leaked onto the Web. Soon, articles appeared
   reporting that Sony had been using Infonic to spy on activists --
   tarnishing both companies' reputations. Mr. Lipski says his firm never
   actually worked for Sony, but rather had pitched it business, which
   resulted in Infonic being mentioned in the document.

   Critics worry, however, that online monitoring services potentially
   violate personal privacy and freedom of speech. "They work undercover,
   so you never know what exactly they are doing," says Eveline Lubbers,
   an activist and author who is writing a book due out this autumn about
   corporate counter-strategies online. She points to companies such as
   Northwest Airlines, which uses eWatch. Last year Northwest tracked
   down employees suspected of organizing via the Internet a call-in-sick
   campaign, which disrupted service over the Christmas holidays. The
   airline then won a court order to search computer hard drives at the
   homes of some flight attendants suspected of using the Internet to run
   the campaign. Renu Aldrich, a spokeswoman at eWatch's parent company,
   PR Newswire, shies away from any involvement in the Northwest episode,
   explaining: "We're just a conduit for information here. However anyone
   uses that information is up to the company."

   Mr. Lipski, a geneticist by training disputes the Big Brother image.
   "I feel very strongly that focusing on the dark side of the Internet
   is missing half the point," he says. With more online chatter from
   employees, customers, journalists and activists, it's difficult for
   companies to stay in the conversation, he says. Further, with
   increasing online transparency and freewheeling conversations, he says
   he's helping companies create new ways of engaging the public. For
   example, at Infonic's suggestion, Diageo now posts both positive and
   negative news stories about itself on its own Web site as long as they
   are factually accurate.

   When talk of a potential boycott hit Unilever late last year, Infonic
   quickly alerted the company about the online threat. Protests posted
   at savebenandjerrys.com (www.savebenandjerrys.com) said Unilever
   hadn't kept its promises to uphold the brand's socially responsible
   agenda and rejected Unilever's new choice of leader for the
   Vermont-based unit. By the time the story hit the mainstream press,
   Unilever, through its weekly updates and more timely alerts from
   Infonic, had become well-versed in the concerns.

   Mr. Lipski, a onetime fixed-income analyst at Goldman Sachs, who
   scored his first Infonic clients by cold-calling them from his
   bedroom, says business is now booming. Infonic raised $1.2 million
   (1.3 million euros) in venture capital last year and doubled its
   client base to 38.

   Still, he cringes at the cloak-and-dagger image, recoiling from labels
   such as online detective agency or sleuthing service. In addition to
   providing an Internet monitoring service, he says, Infonic conducts
   Internet-based research and consults on how to engage with online
   audiences.

   "There's no snooping taking place here," he says. "This is all public
   access information. It's no more snooping than doing market research."

   Write to Stephanie Gruner at [log in to unmask]


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