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HavenCo In Trouble?

Evil Al writes "News.com is reporting on the talk given by Ryan Lackey, former CTO of HavenCo, at DefCon. Lackey claims that the company is teetering on the edge due to internal upheaval and lack of customers. Oh, and 9/11, of course."

34 of 305 comments (clear)

  1. i think... by jeffy124 · · Score: 4, Insightful

    ...it's the more the fact the company only had a whopping six customers.

    --
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    1. Re:i think... by Zeinfeld · · Score: 4, Informative
      ...it's the more the fact the company only had a whopping six customers.

      According to Lackey the problem was that HavenCo failled to realize the pure vision of the founders. He pretty much sounds like one of those unreconstructed 1960s communists that claim that the reason the USSR failled is because it was not communist enough.

      The fact that they only had 6 customers would explain why the UK authorities appear to have shown so little interest. The platform is inside UK teritorial waters - period. The UK government does not recognize 'Prince Roy' and in this case it is the opinion of the executive and not the judiciary that is relevant. Extreeme ideologues like Lackey can believe what they want, the scheme was doomed from the start because they were not immune to UK law.

      The US citizens were certainly not immune from US law. The US has in recent years exported a large number of its laws. For that matter so has the UK.

      Under UK law the platform as a man made object is therefore a ship. Ships do not have territorial claims. A ship that does not carry the flag of a recognized nationality is subject to the law of any country that cares to exercise jurisdiction.

      There are plenty of real countries where the authorities will turn a bloind eye to any enterprise - at a price. Nigeria for example where the government tollerates the advance fee fraud spammers who have them on the payroll.

      The HavenCo employees all went to and from the platfom through Heathrow airport. They could have been arrested by the UK authorities any time they wanted to. Lackey was working in the UK without a work permit.

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    2. Re:i think... by azzy · · Score: 5, Informative

      It was however outside of UK territorial waters at the time it was claimed. And as such was not under UK law. The UK extender their territorial waters around it when it was claimed. The legal/political position is a little unclear, however a UK judge has previously declared he had no authority over it as it wasn't part of the UK.

    3. Re:i think... by filledwithloathing · · Score: 5, Informative
      The platform is inside UK teritorial waters - period. The UK government does not recognize 'Prince Roy' and in this case it is the opinion of the executive and not the judiciary that is relevant.
      Actually when Sealand was "founded", UK Territorial waters only extended 3 miles. You cannot claim territory by extending your Territorial Waters under International Law. Since the UK courts have ruled that they have no jurisdiction in Sealand it would seem that Sealand was and is a country.

      The UK could not extend it's Territorial Waters 100 miles and then claim the beaches of Normandy.

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    4. Re:i think... by arkane1234 · · Score: 4, Informative

      He pretty much sounds like one of those unreconstructed 1960s communists that claim that the reason the USSR failled is because it was not communist enough.

      I hate to sound like a stickler but I'm going to, anyway.
      The original socialist movement away from mother Russia's old Czar ruling was stealthfully turned into a form of totalitarian "dictatorship" shortly after the revolution. So, in actuality, the "communists" you speak of weren't truely speaking of communism as it was currently in mother russia, they were talking about what the true intent was in the beginning.

      It was a glimmer of hope for the Russians until that revolution turned out how it did.

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    5. Re:i think... by filledwithloathing · · Score: 5, Informative
      Actually the Brittish briefly tried to retake Sealand but thought better of it when Sealand shot back.
      By late 1968, the British navy had become aware of the new situation off the coast of England. They were interested in terminating the state of affairs brought about by an error committed by the most senior military authorities without causing too much uproar.

      Units of the navy entered the territorial waters claimed by Roy of Sealand. As he was aware of his sovereignty, Roy of Sealand threatened the navy by undertaking defensive activity. Shots were fired from Sealand in warning. Since Roy of Sealand was still an English citizen, he was thus accused of extensive crimes in Britain and was summoned to an English court. The result of this lawsuit in Chelmsford, Essex was a spectacular success for Sealand's claim to sovereignty. In its judgment of 25 November 1968, the court declared that it was not competent in Roy of Sealand's case as it could not exert any jurisdiction outside of British national territory. This is the first de facto recognition of the Principality of Sealand. English law had ruled that Sealand was not part of the United Kingdom, nor did any other nation claim it, hence Prince Roy's declaration of a new Sovereign State was de facto upheld.

      The UK's legal system has consistently treated Sealand as a sovereign nation.
      "If Sealand irritates anyone sufficiently, they're toast."
      ...so is Luxembourg, Liechtenstein, Iceland, Ireland, Portugal, Belgium, the Netherlands, Denmark, etc., etc., etc.
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  2. It was only a matter of time... by joshv · · Score: 5, Insightful

    These guys never had a workable business plan to begin with. They were selling bandwidth at a huge premium over what it costs just a few miles away in the UK. If you are able to pay that much, you are probably doing something illegal to begin with, and HavenCo won't host you.

    This was a solution looking for a problem that never materialized. The idea certainly captured the imagination of slashdotters though.

    -josh

    1. Re:It was only a matter of time... by Anonymous Coward · · Score: 4, Insightful

      Except that the article specifically states that the reason Lackey decided to leave HavenCo was because the Sealand "royal family" would not allow them to host a web site that would allow streaming copyrighted movies.

      It is also mentioned that Sealand does not allow the hosting of any activity that violates international law or can be connected to terrorism, so there goes your mobile nuclear bomb.

      Did you happen to read the article?

    2. Re:It was only a matter of time... by Kamel+Jockey · · Score: 4, Insightful

      they will host everything not forbidden by Sealand's law

      The only problem is that Sealand's Law is whatever their "Crown Prince" says it is. As quoted from the linked article:

      During an interview with the BBC, the family said it would readily "turn customer information over to the authorities if there was any serious problem with our stuff," Lackey said
      So no matter what the AUP may say, the real "terms of service," like the law in general in Sealand, is whatever their "ruling family" says it is. Companies like stable governments. They do not want to take risks dealing with governments that change the way they do business in a rapid manner. With this latest change, Sealand has become no different than any other jurisdiction in which internet service is offered. As a result, they can only compete on price, and with cheaper prices and more reliable service elsewhere, companies will skip over Sealand.

      Also from the article:

      Lackey ... said another problem was the Sealand family's tinkering with the network connection

      No company will want anything to do with any government touching their connectivity in such an arbitrary manner, especially when they are paying a premium for Internet Access whose claim to fame is that they "don't do that." Another thing Lackey mentioned was Sealand's attempt to tax its customers. That is another example of a bait-and-switch tactic which will drive away existing business and scare away future customers.

      --
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    3. Re:It was only a matter of time... by sxltrex · · Score: 5, Funny

      Did you happen to read the article?

      You're new here, aren't you? ;-)

    4. Re:It was only a matter of time... by sql*kitten · · Score: 4, Insightful

      The only problem is that Sealand's Law is whatever their "Crown Prince" says it is.

      Sealand's law is whatever the British Government will let them get away with. A frigate's detachment of Marines could re-occupy the platform in minutes without breaking a sweat. The Crown Prince is tolerated because Britain has a tradition of tolerating eccentrics so long as they don't harm anyone. If Sealand were to declare that it was willing to break British laws wholesale, bearing in mind that it is strategically located, it would rapidly - and perhaps physically - cease to exist.

  3. Re:RIAA Air Force by nsda's_deviant · · Score: 4, Interesting

    ha, that is true

    but if you meant "bombers" as in "port spamming" or such, it is very conceivable. if people can distrubute music and RIAAs requests recieve no action by HavenCo since RIAA has no jurisdiction (this was exactlly HavenCo's stategy), then RIAA would be inclined to use every security hole-IP DOS attack-anything that they could come up with because again, who would stop them? Itd be cool to watch tho, it would be the wild wild west cyber.

  4. no wonder they're in trouble! by drgroove · · Score: 5, Funny

    given by Ryan Lackey, former CTO of HavenCo, at DefCon

    Even their ex-CTO was a Lackey!

  5. poltiics? by freedommatters · · Score: 4, Insightful

    "The key lesson on this is if you're going to put a 'co-lo' facility somewhere, political and contract stability in that jurisdiction is very important" er, yes, and i thought the political aspect was meant to be one of the main selling points, ie, it wasn't governed by the UK. perhaps they should have sorted that one out before they tried to make their billions. surely they are just a very late casualty of the dot.com bubble?

  6. acceptable use policy by Carbon+Unit+549 · · Score: 5, Informative

    Their acceptable use policy defeats the purpose of the haven?!

    HavenCo said on Monday that its acceptable use policy "stands as originally written. However it is the case that principality law forbids any act...which is against international law, linked with terrorism, or contrary to international custom and practice. These restrictions are in keeping with those found in any country."

    That bold bit pretty much covers everything.

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  7. Bad Publicity? by StickMang · · Score: 5, Interesting

    From the article:
    Tan was prepared to pay HavenCo millions of dollars to host a Web site that would let customers stream movies from legally purchased DVDs, something that was not clearly illegal because only one customer at a time could view each stream, Lackey said. The Sealand royal family balked over the possibility of bad publicity, Lackey said. "I decided as soon as I got out of the meeting that I was going to quit," Lackey said.

    No wonder they're going under. They're HavenCo, they should be hosting these types of sites. They turn down hosting sites like this that seem almost custom fitted to their business model! The king of sealand must be a quirky fellow indeed.

    1. Re:Bad Publicity? by dasmegabyte · · Score: 4, Funny

      Does "quirky fellow" mean "complete idiot?"

      Now I feel really insulted. I'm always getting called quirky!

      --
      Hey freaks: now you're ju
  8. no solution to legal responsibilities by mblase · · Score: 4, Insightful

    The "gimmick" for this business was that they could host sites outside of one's own country, thus protecting one from legal liability for the content. Correct me if I'm wrong, but wasn't it demonstrated that the legal responsibility for content on a web site lies with the site's owner, not the hosting provider, and thus the owner would be held responsible under the laws of the country where he lived?

  9. Business and lunatics by duffbeer703 · · Score: 5, Funny

    Who in the hell is going to do business with some lunatic who fancies himself as the "Prince" of a gun platform?

    --
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    1. Re:Business and lunatics by mr_luc · · Score: 4, Funny

      That is a very funny question, and I have to think that the only business that could consider it seriously would be a casino. That kind of flashiness would seem to fit right in. I can hear the TV ads now:

      "Wanna know just how Exciting our Online Gambling Site is? OUR site is hosted on a rusting gun tower 6 miles off of the coast of England, run by a man that claims it as his own sovereign nation. That's right -- this gambling site is hosted out of a basketball-court-sized country called Sealand!"
      "Reliability? Security? Just remember that all of your financial transactions are subject to the whims of a man that fancies himself a king!"

      I like those odds.

    2. Re:Business and lunatics by Tackhead · · Score: 5, Funny
      > "Reliability? Security? Just remember that all of your financial transactions are subject to the whims of a man that fancies himself a king!"

      And how'd 'e get to be king, eh? By exploitin' the geeks! Supreme authority 'as got to come from a widely distributed peer-to-peer network, not from some farcical aquatic hosting company!

      I mean, if I went around sayin' I was king just because some moistened bint threw a bunch of servers and a fiber-optic link at me, they'd put me away!

    3. Re:Business and lunatics by arkane1234 · · Score: 4, Funny

      What in the hell is a moistened bint?

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    4. Re:Business and lunatics by jbert · · Score: 4, Informative

      "bint"

      Noun. Colloquial, mildly offensive term for "woman", esp. attractive womain. See "trim", "bird", etc.

      "moistened"

      Adjective. Made wet, or "wetted".

      "moistened bint": humourously (sp?) constructed phrase referring to the "Lady of the Lake", a character in Arthurian legend who is the source of the sword Excalibur, used by King Arthur. The sword symbolises Arthur's right of rule and so, in effect, the power of government ultimately resides with the wet woman in question.

  10. All about the price by mcgroarty · · Score: 5, Informative
    I wanted to host there, but a low-end box on a trickling 64kbit line was $500/month!

    They really need to offer lower rates to fill those racks up a bit more, save the novelty premiums for those last slots.

  11. SARS by gr8_phk · · Score: 4, Funny
    Oh, and 9/11, of course.

    But what about SARS? Blaming 9/11 is old-school.

  12. Ruling requested..... by Darth_brooks · · Score: 4, Interesting
    Although its legal status is unclear, Sealand lies within the territorial boundary of 10 miles claimed by England.

    It's legal status was determined a long time ago. here is a good place to start.


    "On October 1st, 1987, Britain extended its territorial waters from 3 to 12 nautical miles. At nearly the same time, Prince Roy declared the extension of Sealand's territorial waters to be a like 12 nautical miles, so that right of way from the open sea to Sealand would not be blocked by British claimed waters. No treaty has been signed between Britain and Sealand to divide up the overlapping areas, but a general policy of dividing the area between the two countries down the middle can be assumed. International law does not allow the claim of new land during the extension of sea rights, so Sealand's sovereignty was safely "grandfathered" in. Britain has no more right to Sealand's territory than Sealand has to the territory of the British coastline that falls within its claimed 12 nautical mile arc."

    Since sealand was outside the initial 3 mile border when it was first claimed, England cannot claim sealand for itself. It would be similar to the United States attempting to annex Cuba by extending the border a further 90 miles south.

    "Some nations might have tried to use this as an excuse to try to claim all of the territory of the weaker and not well recognized nation regardless of international law, however, this has not been the case. Britain has made no attempt to take Sealand, and the British government still treats it as an independent State. Prince Roy continues to pay no British National Insurance during the time he resides on Sealand subsequent to a ruling by the British Department of Health and Social Security's solicitors branch. Also, there was another fire arms incident in 1990 when a ship strayed too near Sealand and warning shots were again fired. The ship's crew made complaints to British authorities and a newspaper article ran detailing the incident. Yet despite Britain's severe prohibition of firearms, British authorities have never pursued the matter. This is a clear indication that Britain's Home Office still considers Sealand to be outside their zone of control."

    --
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  13. Help your friends at Sealand! by mblase · · Score: 5, Funny

    They're short on money, but I'm sure someone would be willing to send them a few million to keep afloat.

    They're just another victim of the dot-com fallout, really. Yet another company that completely missed the boat.

    I mean, their business directors must really be lost at sea as to how to resolve these problems.

    Perhaps they'd succeed with a new software strategy? Say, pier-to-pier filesharing?

    Oh, I kill me....

  14. Re:Not worth the money... by admbws · · Score: 5, Interesting

    The real truth is, you could find a colocation facility in China or other far-eastern country that would host you a hell of a lot cheaper. They are simply not competitive.

    Furthermore, if I was hosting seriously illegal content on a huge scale, I would question the militarial resiliance of Sealand too. They are just a small fort, probably with no real defences to speak of anymore. Would a certain country or two we know go as far as invading it because the rampant piracy was hurting their economy? These countries have already ignored the UN's opinion on a certain military campaign very recently. At least only a very stupid country would dare invade China!

  15. Re:Havenco an interesting case... by goraknotsteve · · Score: 4, Interesting

    My old office used to have an "inert gas" fire suppresion system that meant you could only enter the server room with special dongles. If any of the dongles were in use then the system would not flood the room until they were all back in the slots outside the room. Can't remember what the gas was though, but there were certainly emergency gas masks in the room for use in case the system failed. This was in a fairly old server room in a fairly old fashioned office so don't know how commonplace these things are. Sorry if this is slightly off-topic but thought it meritted a reply.

    --
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  16. Re:Havenco an interesting case... by deblassc · · Score: 5, Informative

    this is total BS according to Lackey.

    havenco did not have a "sealed oxegen free room" it had 5 lan racks with about 15 servers on there.... thats it.

    apparently they spent more money on getting a flakey wireless link up then they did on servers.

    also in the talks he said that sealand has like 2 people residing there now.... and he said that a armed takeover would take about 10 minutes..... so anyone have a chopper I can borrow?

  17. Re:Why the sudden reversal from Ryan Lackey? by rdl · · Score: 4, Interesting

    Different YEAR.

    My Defcon 11 talk describes the problems and why I've gone public (I have more responsibility to the public than to HavenCo, once management begins to engage in fraud)

    I'll be at Linuxworld Expo today, if anyone wants to talk about this...should be easy to spot. (I'm on BART right now)

    I'm posting an in-depth story for slashdot in a day or so, using objective proof of my claims, so there won't be any more "it is this way" "no it isn't" "yes it is" press release communication :)

  18. Re:Oh Please...... by smcavoy · · Score: 5, Funny

    Sending royal marines into a "sovereign" nation would be a violation international law, oh wait never mind.

  19. Re:DefCon slides by rdl · · Score: 4, Informative

    http://www.metacolo.com/papers/dc11-havenco/

  20. Re:What a way to kill a career by rdl · · Score: 4, Interesting

    There is fraudulent business activity to the extent of criminality, which is why it is made public.

    The information I have made public is entirely from public sources, so please read the defcon talk before making assumptions.

    I've certainly had no shortage of work since leaving HavenCo, and am well respected in the security and networking communities.