The shift from a paper-based to an electronic-based society has dramatically reduced the cost of collecting, storing and processing individuals' personal information. As a result, it is becoming more common for businesses to "profile" individuals in order to present more personalized offers as part of their business strategy. While such profiles can be helpful and improve efficiency, they can also govern opaque decisions about an individual's access to services such as credit or an employment position. In many cases, profiling of personal data is done without the consent of the target individual.In the past decade, the European Union and its member states have implemented a legal framework to provide guidance on processing of personal data with the specific aim to restore the citizens' control over their data. To complement the legal framework, the PRIME (Privacy and Identity Management for Europe) project [14] has implemented a technical framework for processing personal data. PRIME's vision is to give individuals sovereignty over their personal data so that:Individuals can limit the information collected about them by using pseudo-identities, certifications and cryptography when performing online transactions, Individuals can negotiate legally-binding "privacy policies" with their service providers that govern how disclosed personal data can be used and which precautions must be taken to safeguard it, and Individuals and service providers can use automated mechanisms to manage their personal data and their obligations towards data which they have collected from other parties.To accomplish this, the PRIME project has designed and implemented a practical system-level solution which incorporates novel cryptographic protocols, sophisticated security protocols, and artificial intelligence algorithms. This paper describes the architecture of this system. Most key features of this architecture have been implemented in a proof-of-concept prototype.

Chapter 7 was written by Dale Whinnett and Reinder Wolthuis. Chapter 8 was written by Akis Hamamtzoglou, Thomas Hecht, Giannis Papadopoulos, and Arnd Weber. Chapter 9 was written by Rolf Michelsen, Stig Mjølsnes, Petros Pantis, and Kostas Tzelepis. Chapter 10 was written by Matthias Schunter. Chapter 11 was written by N. Asokan and Michael Steiner and is based on (Abad-Peiro, Asokan, Steiner, and Waidner 1998; Asokan 1998; Asokan, Herreweghen, and Steiner 1998). Chapter 12 was written by Maria Gatziani, Torben P. Pedersen, and Kambiz Zangeneh. Chapter 13 was written by Birgit Baum-Waidner. Chapter 14 was written by Birgit Baum-Waidner and Rita Zihlmann. Chapter 15 was written by Michael Waidner.

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