[quote=TulipVorlax @ May 6 2010, 05:21 AM]You can’t link to any site on this forum (or so).
Your last link refer to an organization that was collection the names of their visitors’ computers without even knowing about it.
Did you know that every BOINC project collect the names of the computers since it’s start many years ago ?
I’ve been running BOINC since then (but not in summers; it’s too hot).
Do you also understand that the IP adress is not needed to make a profile for each visitor and follow them on the Internet ?
Anyone who know PHP can get a lot of data from people who visit his site.
Screen res, browser, type of computer/processor, etc.
EDIT :
Beside, the canada agency site that you’ve given a link to say that they are actually doing exactly the same thing as us with Piwik :
Source : www.priv.gc.ca/notice-avis_e.cfm[/quote]
Will have to look up what BOINC is now… 
Well, question is if and how they store it.
And I know that IP addresses are not the only thing. There are many things you can do to collect information and profile visitors to your website. That in general is not a problem for data protection, as long as you can link this back to a single person and identify them with that.
I think all the data projection stuff is pretty complicated. However, I don’t see a major problem to shorten the IP address, if it makes the data protection guys happy.
Data protection has not a very strong lobby yet. Funny thing about Germany is, that you shouldn’t store the ip address in your piwik database, but every hosting provider is required to store every email communication done over their servers for quite some time, so that the authorities can find the terrorists faster… hahaha. I am not sure if they really know what they are up to and if they have the capacities to analyze even 1% of it.
Anyway…