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AP - After a series of changes designed to draw more people to its online marketplace, eBay Inc.'s latest alteration is aimed at its own employees. The auction site operator said Monday it will cut about 1,600 jobs, 10 percent of its work force, in its largest round of dismissals ever. 6 Oct 2008 at 4:14pm AP - Shares of SAP AG plunged Monday after the business software maker said it saw a sudden drop in business at the end of September as global financial turmoil escalated. 6 Oct 2008 at 4:29pm AP - So you think junior is a little too lead-footed when he drives the family car? Starting next year, Ford Motor Co. will give you the power to do something about it. 6 Oct 2008 at 12:49pm AP - RealNetworks Inc. said Monday it had temporarily stopped distributing its DVD copying software, RealDVD, at a federal judge's request in a copyright case brought by Hollywood studios. 6 Oct 2008 at 4:59pm CNET - Microsoft wants SQL Server to scale new heights, and it is hoping an add-on code-named Kilimanjaro will help. 6 Oct 2008 at 11:00am Reuters - Online DVD rental company Netflix Inc cut its fourth-quarter outlook, blaming the U.S. economic turmoil for weaker-than-expected subscriber growth in the third quarter and driving its shares down 11 percent. 6 Oct 2008 at 4:36pm Reuters - Dish Network Corp and EchoStar Corp will pay $104 million in damages to TiVo Inc after the U.S. Supreme Court on Monday denied Dish's appeal of a patent infringement case. 6 Oct 2008 at 6:27pm NewsFactor - The NPD Group, a market-research firm, reports that 30 percent of the U.S. consumers who purchased Apple's iPhone 3G from its release on July 11 through August switched mobile carriers in order to join AT&T, which holds exclusive U.S. sales rights for the red-hot device. 6 Oct 2008 at 4:01pm NewsFactor - IBM is getting in the cloud. After a string of announcements over the past few weeks from Citrix, Red Hat, VMware, Cisco and Hewlett-Packard, Big Blue is launching an initiative to extend its traditional software delivery model toward a mix of on-premise and cloud-computing applications with new software, services and technical resources for clients and independent software vendors (ISVs). 6 Oct 2008 at 12:46pm NewsFactor - The battle over e-readers is heating up rapidly, thanks to new hardware entries from the world's two leading e-book manufacturers and the surprising popularity of e-book software on Apple's iPhone and iPod touch. Although the total number of e-books is still well short of a single Steven King press run, the next-generation devices point to a steadily maturing market for digital literature. 6 Oct 2008 at 4:01pm AFP - The college roommate who helped Mark Zuckerberg start Facebook is leaving the fast-growing social networking website in a matter of weeks to create a new Internet technology firm. 6 Oct 2008 at 3:45pm AP - Real news from the virtual world: 6 Oct 2008 at 3:05pm Here's what the 2008 presidential candidates have to say on all things technology. Also: the latest from the road to the White House. 6 Oct 2008 at 7:01pm A plug-in called Geode will help Firefox comprehend and use geographic information. Mozilla plans to discuss the labs project Tuesday. 6 Oct 2008 at 6:55pm Perfectly understandable if you're freaked out over the prolonged tech tumble in the stock market. But it's not as if we've never seen something like this before. Remember? 6 Oct 2008 at 6:35pm A new viewing option in YouTube could be the foundation of a the service's next-generation player. 6 Oct 2008 at 6:04pm Why did typically stable SAP lead the way into the cellar? The normal rules of the high-tech industry's economics may not apply as the overall economy seems to unravel. 6 Oct 2008 at 6:00pm Microsoft promises developers who attend this month's Professional Developer Conference will get the tools needed to write apps for the company's tabletop PC. 6 Oct 2008 at 5:55pm The company, which works with businesses to help them create their own social networks for customers, announces eNotify to bring its services to mobile devices. 6 Oct 2008 at 5:35pm The ID Theft Resource Center reports 516 large security breaches, exceeding the total for 2007, partly due to an increase in companies' disclosures. 6 Oct 2008 at 5:04pm The company will challenge Internet-centric "cloud" pioneers by promoting a mix of cloud-based and on-premises services. 6 Oct 2008 at 4:52pm The company aims to expand its business overseas and establish a foothold in China--a key battleground for casual gaming services. 6 Oct 2008 at 4:28pm Symantec attributes the growth to an increase in e-mail with sensationalistic news headlines that include links to downloadable malware. 6 Oct 2008 at 4:25pm Search the Web with your voice using Excuse Me Services' Say Where iPhone app. Use it on Yelp, Yellowpages.com, Traffic.com and Google Maps. 6 Oct 2008 at 4:09pm The nonprofit Sunlight Foundation is offering a widget to follow the latest tweets from Capitol Hill. 6 Oct 2008 at 4:07pm Several bloggers using unofficial manufacturing data claim the company has surpassed its goal of selling more than 10 million of the popular gadgets. 6 Oct 2008 at 3:57pm Student-made punching bots duke it out on the Washington University campus as the vice presidential candidates ready for the big debate inside. 6 Oct 2008 at 3:16pm |
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In a case where the legal implications should thrill any fans of Terry Gilliam's movie classic Brazil, the Supreme Court is set to examine if it's constitutional to convict someone, based on evidence that was only collected due to bad data in a government database. There's no question that a search of someone due to bad data in a database is unconstitutional, but the question is whether or not what's found in that search can then be used to charge someone. In this case, a bad (obsolete) database entry in a county database resulted in the search of an individual's car, where drugs and a firearm were found. This resulted in a conviction and jail time, but the search itself wasn't constitutional, because the data was incorrect. The appeals court let the conviction stand, oddly arguing that throwing out the conviction wouldn't put much pressure on governments to keep their data clean. The court also argues that anyone convicted as a result of such bad data, should simply file a separate, civil, lawsuit against the government. Of course, it seems like the bigger issue should simply be on the constitutionality of using any unconstitutionally obtained evidence in a lawsuit.
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6 Oct 2008 at 6:51pm As we had suspected, the early reviews of MySpace Music make it sound like a dud. It sounds, not surprisingly, like the focus was on appeasing the big record labels, rather than actually making a service that's fun and easy to use. Farhad Manjoo, over at Slate, makes the argument clear, contrasting MySpace Music to Muxtape, the small indie site that the RIAA shut down when it couldn't own a big chunk of it. As Manjoo notes, Muxtape was fun, it worked well, and people liked it. MySpace Music, on the other hand, is just not that compelling. He notes that it doesn't offer anything other sites haven't offered for a while, and on top of it, makes the whole interface cluttered and confusing, while limiting what you can actually do. Once again, we see the RIAA shut down a useful service and put up a dreadful competitor. Permalink | Comments | Email This Story 6 Oct 2008 at 5:33pm Following my post on the makings of the financial crisis, some folks noted that I didn't really discuss the issues of leverage and derivatives, and how they ended up screwing up Wall Street something fierce -- as, instead, I focused much more simply on the issue of "risk" and sort of swept those details under the rug. I'd been intending to tackle the subject this week, but it looks like Andy Kessler has already done the job for me, with an excellent description of how Wall Street went from helping people trade stocks into a bunch of cowboy hedge fund traders who didn't even realize what they were trading, but knew they were making tons of money -- so they kept borrowing to do more of it. They got suckered by their own dog food and ate until they became seriously overstuffed. Still, those profits weren't enough. Their customers were making great money buying Wall Street's derivatives. But why should banks and pension funds and hedge funds have all the fun? What a perfect use for all that capital on their huge balance sheets and cheap financing from low interest rates. Wall Street, en masse, started buying all these high yielding derivatives for their own account. They ate their own dog food, if you will. It was the easy trade. Borrow at 3 percent and make 6 percent or 8 percent or 10 percent. They liked it so much, they levered up. Meaning instead of just borrowing a dollar for every two dollars of assets they owned (which by the way, thanks to the 50-percent margin requirement, is the amount of leverage that you and I are allowed to buy stocks from these same firms), they borrowed 20 to 1, 30 to 1, and even 50 to 1, if they could get away with it. And man, it was a lucrative trade. So why not? I'll tell you why not. Because all of a sudden, Wall Street is no longer a business of traders or stock brokers or investment bankers, it's a giant hedge fund. And they have no idea what they are doing. None. I ran a hedge fund for a lot of years and learned rather quickly that if a trade was too good, if everyone was doing the same trade, then I should absolutely turn around and run for the hills. But no one on Wall Street did. The spreadsheets flashed green. Risk was a four-letter word best not said in polite company. Wall Streeters became hedge fund cowboys and loved the spoils, until a tiny little downturn in housing sent everyone rushing to get out of the pool at the same time. It's a good read. Kessler and I agree that a new sort of Wall Street will come out of this -- and that's for the best. Money will flow again, but there will be new opportunities for banks to get back to basics. Permalink | Comments | Email This Story 6 Oct 2008 at 4:13pm Want to know how we know the holidays are coming? It's not the Christmas decorations already showing up in stores; it's the annual ritual of retailers threatening any website that posts the deals from their "Black Friday" (the day after Thanksgiving) sales circular prior to that day. Last year, Wal-Mart went beyond what others stores had done, in pre-threatening sites. In the past, companies like Target and Best Buy had simply threatened to sue sites after the ads went up. But Wal-Mart took it a step further and threatened to sue before the ads even went up, ignoring, of course that they don't own pricing data. The data on sales prices are not copyrightable and cannot be owned. Wal-Mart simply has no legal leg to stand on in demanding the data from the circular be taken down. But why let that stop them? An anonymous reader alerts us to the fact that Wal-Mart is already sending the notices out to various sites, threatening legal ramifications if the sites were to post the prices prior to the date Wal-Mart makes them "official." Permalink | Comments | Email This Story 6 Oct 2008 at 2:57pm Last week, in that big post about the financial crisis, one thing I mentioned is that despite all the talk of "moral hazard" -- the bigger fear might be moral hazard's sister problem: adverse selection. That is, it would only be those with truly awful assets and no other options that would take the government up on its offer to buy its "toxic" assets. That may be happening. Reports are coming out that some on Wall Street are considering saying "thanks, but no thanks" to the new ~$700 billion that the Treasury Secretary has been given. The article paints the issue as being about the strings that come attached to it, such as limits on executive pay and golden parachutes. That almost certainly could be a part of the reasoning, but a much bigger part may simply be that these banks recognize that the assets they have aren't quite as toxic as they're being made out to be. Yes, there are bundles of highly questionable mortgages, but contrary to what the media tells you, plenty of the people who possess those mortgages are still paying -- and even if they're not, the property and houses they represent still do have some value on the market -- or will someday. Thus, it may be that the only banks that really take up Paulson on a buyout offer, are those with really toxic assets that aren't likely to appreciate in value. That's not good for anyone. The more you look at this bailout, the worse it seems. It also makes you wonder why there isn't more of a focus on using a so-called "stock injection" plan, whereby the gov't becomes an investor in the banks, rather than just buying out certain questionable assets. That would, in theory, help avoid sticking the taxpayers with only the worst of the worst assets. Permalink | Comments | Email This Story 6 Oct 2008 at 1:41pm We had noted recently that Congress appeared to be moving forward with a bill that would actually re-legalize playing online poker. However, reports coming out now suggest that with Congress so busy passing pork-filled bailout bills, the online poker bill has been shifted to the backburner and will probably have to wait until next year. So, you know, if you were planning to survive this economic tough time by making it up playing online poker, you may want to consider moving to, say, Antigua. Permalink | Comments | Email This Story 6 Oct 2008 at 12:19pm We've seen it time and time again, where totally bogus stats about the "costs" of "piracy" are floated (usually by lobbyists) and then suddenly accepted as fact. It's even worse when it's government officials citing the stats as fact. Yet, we've got that happening again. In urging President Bush to sign into law the ProIP bill, which would give him a copyright czar (something the Justice Department had said it it doesn't want), the US Chamber of Commerce is claiming that 750,000 American jobs have been lost to piracy. Yet, it doesn't cite where that number comes from. Wired's David Kravets tries to track down the source but finds no one can quite figure it out. Instead, they each point to different gov't organizations which have all quoted the number -- often citing each other, but no one pointing out where it actually came from. Chances are, of course, that the stat comes from a variety of reports, like the easily debunked piracy impact report from the BSA, put together by IDG. That lists out a number for job losses in the software industry that's simply untrue, and is based on only the negative impact of "piracy" impacting jobs, leaving out any positive impact (i.e., if a company used only pirated software, it could hire more people). That's not to defend piracy, but to note that the job loss claim is completely made up -- and now repeated by a variety of different government officials based on... nothing. Permalink | Comments | Email This Story 6 Oct 2008 at 10:52am There's not much in the way of detail, and our UK readers have pointed out in the past that The Times Online is hardly the most reputable of newspapers in the UK, but it's reporting that the UK government is considering spending £12 billion on a system to spy on the internet browsing histories, emails and phone calls of everyone in the UK. That seems almost too ridiculous to be true, so consider us to be skeptical that this is actually what's happening -- but we'll mention it here with the link back to the source to see if some of our readers can fill us in on the details (or lack of details, as the case may be). Permalink | Comments | Email This Story 6 Oct 2008 at 9:26am Many people realized long ago, that contrary to what the RIAA (and the politicians it supports) states, the RIAA is not representing the interests of "the music industry," but rather the interests of a few big record labels. Those interests are often directly at odds with the actual musicians. It's almost amazing it's taken this long, but a bunch of musicians, including Radiohead, are now forming their own lobbying/bargaining group, called the Featured Artists' Coalition. One of the goals, actually, is to put pressure on the record labels to allow the musicians to retain the copyright on their music, rather than handing it over to the labels. At the very least, it ought to be interesting to see the two of them fight this out. Though, my fear is that this new group really just promotes more of the same, and doesn't focus on new business model opportunities, but again looks for ways to "protect" rather than to innovate. Permalink | Comments | Email This Story 6 Oct 2008 at 6:59am In the lawsuit between the movie studios and RealNetworks over Real's DVD ripping software, RealDVD, it appears that a judge has issued a temporary injunction against Real, keeping the company from distributing the software until the judge has had a chance to read through the various documents. A more complete decision allowing or disallowing the sale prior to a trial should come on Tuesday. Of course, the movie studios will claim that Real should be barred from allowing the software to be sold because it will cause "irreparable harm." That, of course, is ridiculous. Real's software only lets you make limited backups, by putting its own DRM on the copies. If someone really wants to make backups, and Real's software isn't available thanks to an injunction, then they'll most likely get a copy of other DVD ripping software that doesn't even include the limitations that Real's does. In other words, in taking RealDVD off the market, as the studios would like, it actually would probably lead to more movies being copied without DRM than if RealDVD were on the market. On a separate note, it appears that Real's decision to rush to court and file for a declaratory judgment on this case was a wise move. The lawsuit has been moved from Southern California, where the studios filed suit later in the day, to Northern California, where Real filed suit in the morning. Permalink | Comments | Email This Story 6 Oct 2008 at 4:29am Remember back when people first started questioning the reliability of e-voting machines? It was initially focused on Diebold, though later reports have all shown that Sequoia and ES&S are equally as bad. Yet, initially those critics were all brushed off by the e-voting firms as wild-eyed, conspiracy theory. lunatic activists. The only problem is that they keep being proven correct time and time again, and the story has certainly crossed over into the mainstream. If you need proof, look no further than The Simpsons recent clip about e-voting that a ton of you have sent in: Clearly, the issue has gone beyond the "fringe" and into the mainstream. So, it's really too bad that judges seem to think that the public can't handle a research report on these machines. Permalink | Comments | Email This Story 3 Oct 2008 at 10:33pm Despite explaining how the financial crisis will impact everyone, beyond just Wall Street, there are many people who still insist that it will have no impact on them. That's simply untrue. While the impacts may seem small and remote, when added up, they'll be noticeable. Richard Ahlquist writes in to show us a perfect example of this. AT&T has discovered that the commercial paper it relies on is now a lot more difficult to get, causing a bit of a cash crunch for the company. So how is it dealing with it? By pushing that cash crunch to you. Rather than its usual habit of billing you for the month that just past, AT&T is telling customers it's now billing them for the month ahead -- meaning that your latest bill may be double (paying for last month and next month). Effectively, AT&T is changing the credit terms on its customers, from net 30 to prepay. Sure, it may not be a huge deal that your telco bill doubles for one month only, but that's still money that's out of your pocket 30 days earlier -- and if other vendors do the same, it could be quite noticeable. Permalink | Comments | Email This Story 3 Oct 2008 at 9:22pm The EFF has a long and comprehensive look into the RIAA's five year (and running) legal campaign against file sharing. It's a great overview that not only brings you up to speed if you haven't been following the whole thing, but also puts the entire campaign in perspective. The summary? Almost every move the RIAA has made in its legal campaign has backfired. It started with suing technology providers. All that did was make more people aware of file sharing. When it succeeded in getting Napster shut down, plenty of others showed up that were much more difficult to shut down. So, then, the RIAA shifted to suing individuals accused of unauthorized sharing, claiming that it was an "education campaign" to teach people that unauthorized file sharing was illegal. All that's done is turn many more people against the RIAA, while continuing to educate them that file sharing exists. In fact, many more people engage in file sharing now than five years ago when the campaign started. So, effectively, the lawsuits haven't worked (the RIAA has not had a full trial turn out in its favor yet). It's turned public opinion massively against the RIAA and its associated record labels. It hasn't done anything to slow down unauthorized file sharing, and may have actually helped promote it. About the only "success" of the strategy is that it's turned into something of a cash generator for the RIAA, by frightening people, with strong legal language around flimsy evidence, into paying "presettlements" to avoid being sued. It's like a protection racket from organized crime. Oh yeah, it's worth noting that the musicians don't actually see any of that money. So, by now it should be clear that this strategy has absolutely nothing to do with helping the music industry thrive or to actually deal with unauthorized file sharing. From the beginning it's always been a way to squeeze more money out of people through threats and intimidation. While I strongly disagree with the EFF's proposed "solution" to this issue (a compulsory licensing scheme), the review of the history certainly puts the whole campaign in perspective, and makes you wonder why anyone (especially any politician) actually thinks it's about helping musicians. Permalink | Comments | Email This Story 3 Oct 2008 at 8:10pm I've been seeing previews of the new movie, Flash of Genius (which opens today) everywhere, and a few folks have asked my opinion of it. Over at Against Monopoly, there's as pretty good takedown of the premise of the movie. The story of Robert Kearns has plenty of good "movie" elements, and is often held up by patent system supporters as a clear example of a big company "ripping off" an independent inventor. The movie itself is a huge dramatization, that of course, paints Ford as the big evil company that "stole" the idea of intermittent wipers from Kearns. It's highly exaggerated from reality, and perpetuates the big myth that invention comes from a "flash of genius" and is the most important part of innovation. As anyone who's actually run a business can tell you, the idea is only a tiny part of what's important. The real innovation is in actually turning the idea into something that works, is useful, is cost effective and (most importantly) is something that people want to buy. Almost every actual product is quite different from the initial "idea" that it came from. Furthermore, despite what the movie appears to portray, lots of folks were working on different methods to create an intermittent wiper, and the methods that Kearns used weren't such a "flash of genius" either. They were pretty much the next evolution. As we've seen it's pretty common for multiple parties to make the same "next step" obvious breakthroughs at about the same time. But, Kearns turned the whole thing into a crusade against the auto companies, so it makes a good David vs. Goliath movie storyline. And, despite the way Ford appears to be portrayed in the movie as deliberately copying Kearns' work, the company was not found to have willfully infringed on the patents. They were found to have infringed -- but through their own work, not from having directly taken Kearns idea (the movie suggests otherwise). As you may or may not know, most patent infringement is not "willful," meaning the company in question didn't "copy" the idea directly from the inventor or his or her patent, but through simply coming up with the idea themselves independently. And, at the time of Kearns case, the standard for willful infringement was even lower than it is today. Yet, because there's no independent invention defense, the automakers will still found to have infringed. The end result? All of the car companies had to pay many millions to Kearns, effectively paying multiple times over what the wipers actually should have cost, increasing car prices for all of us. That's not David vs. Goliath: it's David making cars more expensive for everyone. The movie itself may be very entertaining (I'll probably wait for it to come out on video to check it out), but it's unfortunate that it promotes the myth of a "flash of genius" being the most important part of innovation, and that it perpetuates the stereotype of "big companies vs. little inventors." At a time when our patent system needs serious reform, a movie like this only serves to falsely promote the value of patents in the public eye. It's propaganda, wrapped in a nice Hollywood veneer. Permalink | Comments | Email This Story 3 Oct 2008 at 6:51pm It's been quite fascinating, over the years, to see how the various "Nigerian" scammers have adapted and evolved their strategies. While variations on the originals exist, over time we keep seeing new scams show up. They started, obviously, with the traditional 419 "advance fee" scam, asking you to help them get more money out of Nigeria. Then, they morphed by paying attention to current events and making the scams more closely related to events happening in the news. Then there was the scam where they would buy something on eBay, but send a forged check that was much, much higher than the purchase price, asking you to send back the difference. Of course, the victim would only find out later that the check was a fake and that he had been cheated out of all the money sent (as well as the value of the sold item). Then, they started combining phishing and advance fee scams, to make you think your friends needed money wired urgently to Nigeria. Oh, and who can forget when they started a scam that didn't prey on the victims' greed, but their love of cute puppies? Awwwwww... The latest is that they're placing ads for apartments to rent in high rent districts, and then asking prospective tenants to do a money transfer to a friend or relative to prove you have the money available. That seems legit -- and since it's to a friend or a relative, the prospective tenant knows that the money is safe. Except, once they've forwarded on a scanned copy of the transfer payment receipt, the scammers go to the bank pretending to be the recipient and withdraw the money. It's a bit more complicated, but again, it's a scam where the victim is easily tricked because there doesn't seem to be anything wrong with what's happening. Permalink | Comments | Email This Story 3 Oct 2008 at 5:44pm  6 Oct 2008 at 7:10pm  6 Oct 2008 at 6:00pm Every designer & developer loves handy tools that simplify frequent tasks. And, even if you’ve a complicated software that does the same thing, usually it is much more effective to run a tiny, fast-loading application that does the job.This is a list of 27 functional Adobe AIR applications that can help a web designer to design & develop. 6 Oct 2008 at 5:10pm In a little over a year, Apple's iPhone has grown to become the second best-selling mobile handset in the United States, according to NPD. 6 Oct 2008 at 4:10pm An unlikely combination of IPv6 and NAT experts from the IETF met in Montréal last week to figure out better ways to allow IPv6-only and IPv4-only systems to communicate with each other. 6 Oct 2008 at 2:11pm An appropriations bill signed by President Bush last week allows the controversial National Applications Office to begin operating a stringently limited version of a program that would turn military spy satellites on the US, sharing imagery with other federal, state, and local government agencies. 6 Oct 2008 at 12:50pm It seems that Apple is taking further care in hiding new iPhone features in their beta releases. The most recent firmware beta seeded to developers listed "compatibility testing" in its release notes as the only change. 6 Oct 2008 at 12:30pm  6 Oct 2008 at 12:30pm  6 Oct 2008 at 10:50am  6 Oct 2008 at 10:50am  6 Oct 2008 at 10:10am  6 Oct 2008 at 9:50am  6 Oct 2008 at 9:10am An interesting theory we heard recently is that Google will use Chrome to index the password protected Web. Right now the Chrome Terms of Service prevents Google from indexing private data. But when you consider that Chrome was initially presented as a browser for applications, instead of just web pages, this theory begins to make more sense. 6 Oct 2008 at 6:20am Losing access to your GMail account is tantamount to banishment from the internet, but Google's non-existent customer support makes it nearly impossible for rightful owners to regain control of their accounts. The New York Times asked Google why they couldn't afford to offer phone-based customer support, a simple question Google needed three people 6 Oct 2008 at 5:50am |
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