The criminal justice system - although this applies less to the U.S., where rehabilitation is not seen as a valuable contribution to criminal justice - in Europe where rehab is supposed to be integral, we have no way of rehabilitating skilled hackers. On the contrary what we do is we demonize them and continue to do so after they come out of jail because we restrict their access to computers by law. Crazy world, crazy people.

The U.S. has the most advanced cyber-weaponry on the planet, and t if you look at the U.S. from the perspective of the Chinese People's Liberation Army, which runs most of its cyber activities, they look at you and they see Google and Facebook - the two largest depositories of personal data in the world - and they see the reach of the National Security Agency, which has huge digital capacity to know what is going on around the world. So the Chinese would see cyber as an un-level playing field, because the U.S. holds all sorts of advantages.

One of the problem with cyber is that it lends itself to preemptive action. Your assets in cyber-warfare are your opponents' vulnerabilities, therefore in order to quantify your assets you have to be able to ascertain how vulnerable your opponents are and that involves pre-emptive exploration of your opponents' networks. So in that sense it lends itself to some pretty nasty stuff.

There are two types of companies in the world: those that know they've been hacked, and those that don't.

I think that we're now deep into a struggle for control over the Internet and there are various actors - state, corporate, civic, criminal and military. The great genius of the Internet is its interconnectedness, but this is also what makes it an incredibly difficult problem when things start to go wrong with it and when people exploit for their own purposes.

In 2010, you have roughly 38 billion dollars spent by government on cyber and telecoms security and another 60 billion or so by private corporations. So approximately 100 billion dollars spent on security, mostly on technological solutions, which the corporates are offering governments in particular; it's a very high growth area. So everyone is climbing over each other to get the contracts for government procurement on this. There is undoubtedly an element of this and that's what encourages, in part, the whole idea of locking down the Internet.

The issue of cyber-security, cyber-crime, and cyber-malfeasance has an impact on a whole range of issues, not the least of which is civil liberties, political activity, and so on and so forth.