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In the news recently, Janet Napolitano (formerly head of DHS, now head of California's university system) had
packet-sniffing software installed at the UC Berkeley campus to monitor all its traffic. This brings up the age old question: is such packet-sniffing legal, or a violation of wiretap laws.
Setting aside the legality question for the moment, I should first point out that's its perfectly normal. Almost all organizations use "packet-sniffers" to help manage their network. Almost all organizations have "intrusion detection systems" (IDS) that monitor network traffic looking for hacker attacks. Learning how to use packet-sniffers like "Wireshark" is part of every network engineer's training.
Indeed, while the news articles describes this as some special and nefarious plot by Napolitano, the reality is that it's probably just an upgrade of packet-sniffer systems that already exist.
Ironical, much packet-sniffing practice comes from UC Berkele. It's famous for having created "BPF", the eponymously named "Berkeley Packet Filter", a standard for packet-sniffing included in most computers. Whatever packet-sniffing system Berkeley purchased to eavesdrop on its networks is almost certainly including Berkeley's own BPF software.
Now for the legal question. Even if everyone is doing it, it doesn't necessarily mean it's legal. But the wiretap
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