Intel backs down on Pentium III tracking plans

Intel has been forced to back away from plans to ship Pentium III processors with an embedded identification tracking code, in the face of vociferous criticism and the threat of a product boycott from privacy groups.

But the partial climb-down has not satisfied campaigners who say the ID code compromises consumer privacy by tracking online transactions.

The Pentium III, due to be launched next month, will now ship with the security code in the 'off' position. Software will be made available that will allow users to turn the code back on if they want to.

With 'off' as the default position Intel says it is giving users choice of whether they want their systems to be tracked to guard against computer theft or for user verification in electronic commerce.

An Intel spokesman said the company changed its mind after a meeting with privacy groups.

When the fuss first blew up, Intel said it would ship the processors with the code activated and users could de-activate it if they wanted to. The spokesman claimed the change was made "so that if somebody wasn't technologically savvy they wouldn't have to have the code on automatically".

Privacy groups will meet with Intel again on Thursday. David Banisar, policy director at the Electronic Privacy Information Center, said the boycott was still on and that Intel's response was not a significant solution. "The burden is still on the consumer to be aware of it and care about it," Banisar said.