The Internet has fashioned a new and complicated environment for an age-old dilemma that pits the demands of security against the desire for freedom.

The Internet obviously changes things; we've seen that in the music industry above all else. As an author, I'm now having to deal with the fact that it's happening in the publishing industry as well. And publishing is going through a very difficult time. Some view it as positive, some negative, but nobody really knows how to deal with it. If you're an author it looks very challenging because your work can be pirated so easily and there's very little you can do about it.

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.

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 internet is fracturing into a series of huge country-based intranets, in which governments define, in the name of security, what is legitimate personal and intellectual communication, and what is not.

The sort of sweeping parochial espionage and attempts to extract information from all sorts of institutions are well documented, but I think in this context there's a danger of oversimplifying and seeing that sector of cyber as a one-way street.

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