May 2008
Monthly Archive
General30 May 2008 10:35 pm
Web 2.0 Buzzword Bingo
I'm going to remove the names of the two web 2.0 startups that apparently have just merged, according to a
recent blog post from Jeff Nolan. I don't really care about the merger at all or either of the two companies. I'm merely posting a
short excerpt from the press release announcing the merger with the names redacted (they don't deserve more publicity with a press release like this), because I don't think I've ever seen a paragraph filled with so many web 2.0 buzzwords that says absolutely nothing.
Company A, a universal profile service for the social web that engages communities and enables content discovery, today announced its acquisition of Company B, a provider of semantic intelligence solutions. The integration of Company B's proprietary semantic intelligence-based discovery engine will bring richer, context-based profile and reputation management capabilities to the Company A service. To be useful across different types of social media, profiles and reputation have to be localized and linked to the context of the conversation. In this way, thought leaders emerge within and across communities based on their specific expertise and contributions.
Seriously? From that paragraph, does anyone have the slightest idea what either of these companies do -- or what the merger is for? I've been known to point out stupid PR tricks, which focus mostly on the way they continue to bombard me with pointless and irrelevant press releases. But when the buzzword bingo gets this thick, it's hard to do anything but sit back and laugh. That, and get to work on my latest proprietary universal social widget-enabler intelligence-context-based profiler management integrator. Because, clearly, that's what the market demands.
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General30 May 2008 09:08 pm
Ownership Doesn’t Make Sense In Communications
Earlier this week, we explained the root cause of many of the problems the entertainment industry runs into when it tries to deal with copyright online. It views the internet in the same way that it views a
broadcast media content platform, when it's been designed and used primarily as a communications platform. The entire concept of copyright doesn't make sense in the realm of regular communications. You don't worry who owns the copyright on the conversation you have on the phone or the email that you write to a friend. Yet, when viewed through the prism of a "content" platform, these are open questions. The same is true of things like blog comments. Yet, suddenly we find people arguing over who "owns" comments place on a blog page.
Mathew Ingram does a nice job
highlighting the key issues that were raised this week on that question, but the whole conversation took a turn for the bizarre when Hank Williams weighed in. This is the same Hank Williams who posted a
poorly researched defense of copyright. Now he's back claiming that the
issue of who owns the copyright on blog comments is a really important question. If anything, you would think that the points he raises in his post would actually be the perfect evidence for why his original post was wrong (though he seems to miss that). It's quite clear from what he wrote that copyright law doesn't handle this situation very well -- which makes sense, because copyright is (again) designed for broadcast media, not communications. But rather than realize that's a good reason why copyright shouldn't apply at all here, Williams doubles down on why "ownership" over comments is something that needs to be worked out -- he suggests that blog and comment system providers create a totally useless mechanism to "declare" ownership of comments.
Except that this system is not at all necessary, and would only lead to more problems. The entire purpose of copyright is to act as incentive for the creation of that content. Yet, I think most people would find it preposterous to claim that the reason they commented on a blog was because of the protections provided by copyright. In other words, there's
no question to worry about here because this content was all created without copyright being the incentive. However, in this bizarre and twisted world where infinitely available resources need to be shrunk down and "owned," Williams insists that we need to figure out who has the copyright on comments.
In the comments to Hank's own story, things get even more bizarre. First, Hank suggests that if the blog owner "owned" the comments then that might mean that the blog owner also "owned" the liability associated with those comments (which could mean in cases of libel or copyright infringement). Once again, though, Williams is showing his ignorance, as both cases are clearly covered by the safe harbors of the CDA and the DMCA, and the stacks upon stacks of case law concerning liability on things like blog comments. It's quite clear that Williams thinks ownership of infinite resources is a good idea -- but he doesn't appear to have thought through what that means and why it's neither necessary nor a good idea. Too bad.
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General30 May 2008 09:08 pm
Ownership Doesn’t Make Sense In Communications
Earlier this week, we explained the root cause of many of the problems the entertainment industry runs into when it tries to deal with copyright online. It views the internet in the same way that it views a
broadcast media content platform, when it's been designed and used primarily as a communications platform. The entire concept of copyright doesn't make sense in the realm of regular communications. You don't worry who owns the copyright on the conversation you have on the phone or the email that you write to a friend. Yet, when viewed through the prism of a "content" platform, these are open questions. The same is true of things like blog comments. Yet, suddenly we find people arguing over who "owns" comments place on a blog page.
Mathew Ingram does a nice job
highlighting the key issues that were raised this week on that question, but the whole conversation took a turn for the bizarre when Hank Williams weighed in. This is the same Hank Williams who posted a
poorly researched defense of copyright. Now he's back claiming that the
issue of who owns the copyright on blog comments is a really important question. If anything, you would think that the points he raises in his post would actually be the perfect evidence for why his original post was wrong (though he seems to miss that). It's quite clear from what he wrote that copyright law doesn't handle this situation very well -- which makes sense, because copyright is (again) designed for broadcast media, not communications. But rather than realize that's a good reason why copyright shouldn't apply at all here, Williams doubles down on why "ownership" over comments is something that needs to be worked out -- he suggests that blog and comment system providers create a totally useless mechanism to "declare" ownership of comments.
Except that this system is not at all necessary, and would only lead to more problems. The entire purpose of copyright is to act as incentive for the creation of that content. Yet, I think most people would find it preposterous to claim that the reason they commented on a blog was because of the protections provided by copyright. In other words, there's
no question to worry about here because this content was all created without copyright being the incentive. However, in this bizarre and twisted world where infinitely available resources need to be shrunk down and "owned," Williams insists that we need to figure out who has the copyright on comments.
In the comments to Hank's own story, things get even more bizarre. First, Hank suggests that if the blog owner "owned" the comments then that might mean that the blog owner also "owned" the liability associated with those comments (which could mean in cases of libel or copyright infringement). Once again, though, Williams is showing his ignorance, as both cases are clearly covered by the safe harbors of the CDA and the DMCA, and the stacks upon stacks of case law concerning liability on things like blog comments. It's quite clear that Williams thinks ownership of infinite resources is a good idea -- but he doesn't appear to have thought through what that means and why it's neither necessary nor a good idea. Too bad.
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General30 May 2008 07:47 pm
Prince And Radiohead Fight Over YouTube Song
For years, Prince was the
poster child for "getting" the internet and new media distribution opportunities. He experimented with a variety of different
creative business models that suggested he got how the economics of music worked these days. It was working too -- with his efforts to give away his music helping him sell out concert after concert around the world. But then something changed, and Prince went ballistic,
suing YouTube, The Pirate Bay and eBay and even threatening
fan sites while demanding that even videos with tiny snippets of Prince music in the background get
taken offline. The whole thing is quite surprising, and if he keeps this up, he's risking taking all that goodwill he built up for years, and turning himself into
another Metallica. Becoming anti-fan is never a good idea.
The latest story, though, has a twist. Prince apparently did a cover of a Radiohead song at a recent concert. Someone filmed it and put the video on YouTube. Given his newfound hatred for YouTube, Prince demanded that the song be taken down. And here's where it gets interesting:
Radiohead's Thom Yorke is demanding that it be put back online, noting that he owns the copyright on the song: "Really? He's blocked it?... Well, tell him to unblock it. It's our ... song." Of course, as that LA Times report notes, in true
Streisand Effect fashion, the effort to take down the song has only driven much more interest in people trying to find the song. If Prince weren't suing so many people, you might even think he was canny enough to have done this on purpose as a marketing campaign.
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General30 May 2008 06:28 pm
Congress Thinking About ‘Compromise’ That Would Move Telco Immunity Questions To Secret Court
There's been an ongoing
battle in Congress over whether or not telcos that helped the gov't with warrantless wiretaps should get retroactive immunity for their actions. No one has given any good reason why companies should be granted immunity for any sort of illegal actions, and there are plenty of
reasons why they should not. The fact that the administration "asked" them to administer the wiretaps is no excuse. The president is not above the law. Basically, the
only reason to demand immunity is because it's clear that someone (or, more likely, multiple people and companies) broke the law.
The latest move in this process is a so-called
"compromise" bill that would move these disputes into a secret court, who could then dismiss the lawsuits without giving any explanation whatsoever. And, yet, no one has explained why these trials should happen in secret either. Either the companies followed the procedures that are clearly stated in the law, or they did not. You can determine if they followed the procedure without giving up state secrets. This whole thing seems to be involving an awful lot of smoke and mirrors coming out of DC, with people making all sorts of ridiculous statements about "security" and "terrorism." Those statements are all meaningless distractions. There is a clear legal procedure for wiretapping that even allows for going back after the fact to get approval. There is no excuse that the process was too cumbersome or slow, because of that ability to go back. The question here has nothing to do with security and safety. It has to do with whether or not the legal process was followed -- and it's hard to see why that should remain secret.
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General30 May 2008 05:12 pm
Microsoft Demanding Some Of Immersion’s Patent Booty From Sony
A few weeks back, we wrote about how Immersion was involved in a
bizarre lawsuit involving a firm focused on the "teledildonics" market (look it up -- or, actually, you're probably better off not). Immersion, of course, is well known in the tech world for holding a bunch of patents on "haptic" technology, which many people are more familiar with as "force feedback" in devices like video game controllers. Immersion is not afraid to use its patents and has been involved in numerous lawsuits -- with the big one yielding $130 million from Sony for the force feedback controllers used in the PlayStation. The case mentioned a few weeks ago involved a shell firm that Immersion had done a deal with. Since Immersion didn't want to smear its own name by suing companies involved in force feedback sex devices, it basically licensed the legal rights out to this shell company. However, that shell company felt that Immersion owed it some of the $130 million Sony booty.
While the case with the shell company has now been dismissed, Jim Mullin notes an even more interesting case:
Microsoft is also demanding a large cut of the Sony settlement money. Here's where things get tricky. Basically, Immersion had sued Microsoft as well for violating the patents. But, as we've seen
other companies do, part of the settlement terms between Immersion and Microsoft are that Microsoft would join the patent battle against Sony and get a cut of any settlement money that came out of that lawsuit. In effect, rather than just paying up to license the patent, Microsoft switched sides in the lawsuit.
However, Immersion used some sneaky tricks to skirt around its agreement with Microsoft -- most specifically never referring to its deal with Sony as a "settlement." Thus, it claimed that it doesn't owe a dime to Microsoft (some thanks Microsoft got for paying up, huh?). So now Microsoft has sued, though muddling the whole case is the fact that in filing the lawsuit, Microsoft released some confidential info, which caused Immersion to sue Microsoft as well. And just think, folks, all this money being spent on lawyers could actually have gone into
making better game controllers. But who wants to do that when there are more lawyers to pay?
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General30 May 2008 05:12 pm
Microsoft Demanding Some Of Immersion’s Patent Booty From Sony
A few weeks back, we wrote about how Immersion was involved in a
bizarre lawsuit involving a firm focused on the "teledildonics" market (look it up -- or, actually, you're probably better off not). Immersion, of course, is well known in the tech world for holding a bunch of patents on "haptic" technology, which many people are more familiar with as "force feedback" in devices like video game controllers. Immersion is not afraid to use its patents and has been involved in numerous lawsuits -- with the big one yielding $130 million from Sony for the force feedback controllers used in the PlayStation. The case mentioned a few weeks ago involved a shell firm that Immersion had done a deal with. Since Immersion didn't want to smear its own name by suing companies involved in force feedback sex devices, it basically licensed the legal rights out to this shell company. However, that shell company felt that Immersion owed it some of the $130 million Sony booty.
While the case with the shell company has now been dismissed, Jim Mullin notes an even more interesting case:
Microsoft is also demanding a large cut of the Sony settlement money. Here's where things get tricky. Basically, Immersion had sued Microsoft as well for violating the patents. But, as we've seen
other companies do, part of the settlement terms between Immersion and Microsoft are that Microsoft would join the patent battle against Sony and get a cut of any settlement money that came out of that lawsuit. In effect, rather than just paying up to license the patent, Microsoft switched sides in the lawsuit.
However, Immersion used some sneaky tricks to skirt around its agreement with Microsoft -- most specifically never referring to its deal with Sony as a "settlement." Thus, it claimed that it doesn't owe a dime to Microsoft (some thanks Microsoft got for paying up, huh?). So now Microsoft has sued, though muddling the whole case is the fact that in filing the lawsuit, Microsoft released some confidential info, which caused Immersion to sue Microsoft as well. And just think, folks, all this money being spent on lawyers could actually have gone into
making better game controllers. But who wants to do that when there are more lawyers to pay?
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General30 May 2008 03:36 pm
ASCAP’s Bill Of Wrongs
ASCAP has published a Bill of Rights for Songwriters and Composers, which, unfortunately, seems to be more like a bill of "wrongs."
Just as citizens of a nation must be educated about their rights to ensure that they are protected and upheld, so too must those who compose words and music know the rights that support their own acts of creation. Without these rights, which directly emanate from the U.S. Constitution, many who dream of focusing their talents and energies on music creation would be economically unable to do so - an outcome that would diminish artistic expression today and for future generations.
Which U.S. Constitution is ASCAP reading? The U.S. Constitution provision says, "the Congress shall have Power... To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." There is nothing in the U.S. Constitution to suggest that copyright law has anything to do with protecting artists' natural rights, copyright hardly exists for a limited amount of time anymore, and Thomas Jefferson and James Madison were quite skeptical of the concept.
And the claim that such laws are required to make a living as an artist is very debatable, and I'd beg to differ. There was art before copyright law existed, and many artists are making their living today despite copyright law (rather than because of it).
At this time, when so many forces are seeking to diminish copyright protections and devalue artistic expression, this Bill of Rights for Songwriters and Composers looks to clarify the entitlements that every music creator enjoys.
Who is seeking to devalue artistic expression? Price and value are not the same thing. Just because the economics of digital goods have pushed the price of music towards zero (the marginal cost) does not mean that music no longer has value. This sort of statement needs to be substantiated.
1. We have the right to be compensated for the use of our creative works, and share in the revenues that they generate.
Why? In what other industries do creators maintain control over their creations after they reach consumers? Lenovo has no right to be compensated for the use of my laptop or to share in the revenue I generate through developing software. This is not a given.
2. We have the right to license our works and control the ways in which they are used.
Again - why? How many other industries control the way their works are used? This is not a given.
3. We have the right to withhold permission for uses of our works on artistic, economic or philosophical grounds.
This is not the purpose of copyright law at all, especially since it’s supposed to be for a limited time. This, in fact, is a restriction on artistic expression. Though it may be troubling to have a work associated with something that you don't agree with, I believe that freedom of speech is more important for artistic expression than total control.
There are defamation and libel laws for serious abuses.
4. We have the right to protect our creative works to the fullest extent of the law from all forms of piracy, theft and unauthorized use, which deprive us of our right to earn a living based on our creativity.
Theft and copyright infringement are not the same thing. And the sharing and spreading of music through digital channels is natural and, more importantly, does not deprive artists of their right ability to earn a living.
Bad, out-dated, obsolete business models based on artificial scarcity deprive artists of their right ability to earn a living.
(I'm not sure if this is a "right" because they seem to be confusing royalties and salaries.)
5. We have the right to choose when and where our creative works may be used for free.
Why? Coca-cola doesn't have the right to determine whether its products can be given away for free as part of a promotion after a pizza store purchases them. This is not a given.
6. We have the right to develop, document and distribute our works through new media channels - while retaining the right to a share in all associated profits.
Wow, that started off great, but the ending sounds like Billy Bragg's whining in the New York Times. The phrase "all associated profits" seems quite overarching. This sounds like musicians claiming that MySpace and Bebo owe them money for their success, while denying that the reverse could ever be true, that a new media company would be entitled to share in "all associated profits" of an artist it enables to succeed.
Double standard much?
7. We have the right to choose the organizations we want to represent us and to join our voices together to protect our rights and negotiate for the value of our music.
Excellent! I actually agree with this whole-heartedly. I do not want ASCAP to represent me!
8. We have the right to earn compensation from all types of "performances," including direct, live renditions as well as indirect recordings, broadcasts, digital streams and more.
This sounds like Viacom's misunderstanding of the difference between content and communication. ASCAP is treating the Internet like other forms of broadcast, but the Internet isn't a broadcast medium. It's a communications medium. When it comes to communication, the idea of using copyright to restrict content gets weird in a hurry. Royalties are not the answer for the digital age.
9. We have the right to decline participation in business models that require us to relinquish all or part of our creative rights - or which do not respect our right to be compensated for our work.
Sure you do, but that doesn't mean you'll make any money. Economics aren't about what you want to happen, or what you think should happen. Economics are about what is happening. Business models that don't make sense given the economics won't succeed. Of course you have the right to choose whatever business model you like, but that doesn't mean it will be successful or that it should be protected by copyright law.
The end of that statement sounds like another case of confusing royalties and salaries.
10. We have the right to advocate for strong laws protecting our creative works, and demand that our government vigorously uphold and protect our rights.
Of course you do, but again, I don't think it's a great idea if you subscribe to this "bill of rights." Moreover, consumers also have the right to advocate for better laws that protect their interests and vigorously uphold and protect their rights, which our current laws fail to do.
Artists can advocate whatever they want, but it's a bad idea to advocate the opposite of what your fans want.
Conclusion
This supposed bill of rights is really just an assertion of the status quo by those who depend on copyright law to protect their obsolete business models. If people in the music business could only realize that they're in the business of providing an enjoyable experience surrounding music, rather than trying to control and monetize every possible use of art, they might open up to new business models that make sense rather than whine about the fact that their current business models don't work anymore.
This isn't a bill of rights. It's a stage and symptom of the grieving process.
Signing this and, worse yet, living by it, would be an economic and ethical mistake for any songwriter or composer.
Blaise Alleyne is an expert at the Techdirt Insight Community. To get insight and analysis from Blaise Alleyne and other experts on challenges your company faces, click here.
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General30 May 2008 02:11 pm
Naveen Jain’s Latest Quest For A Trillion Dollar Company May Be In Trouble
Naveen Jain is nothing if not confident in himself. Back in 2000, as founder and CEO of InfoSpace, he famously declared both that InfoSpace was bigger than the internet, and that it would be the world's first trillion dollar company. More specifically, he said: "There are two kinds of people in this world... those who don't believe in God, and those who believe in God and InfoSpace. That's OK -- the nonbelievers will be converted when we become a trillion-dollar company." Now, it's one thing to be confident, but it's another thing to be cooking the books to try to get there. After InfoSpace
imploded and Jain was
sent packing, an investigative report uncovered all sorts of evidence about how much of InfoSpace's revenue
was a huge scam, involving outright lies and "lazy susan" deals, where InfoSpace would "invest" in a company, who would turn around and pretend to buy InfoSpace services as a way to boost revenue.
Jain moved on and started a new company called Intelius, which claims to help you get background information on people -- though it's not hard to find many, many, many people who claim that the information is next to
useless. Still, it's managed to bring in a ton of revenue, and with that has been planning to go public. However, Mike Arrington did a fantastic bit of sleuthing to discover that
much of that revenue seems to come from a very questionable method.
Basically, Intelius gets you to cough up some money for the "information" it has on someone. Afterwards, it asks you to take a short survey, promising to give you $10 for your time. The survey is quick, but down below, in tiny gray-colored hard-to-read print, it notes that in submitting the "survey," you're actually agreeing to sign up for a $20/month "service" that, according to Arrington, doesn't appear to do anything other than charge you $20/month. As for that $10? Well, it's never mentioned again (nor is the $20/month you'll be paying... other than on your credit card bill). The "service" is a separate company (though Intelius gives them your credit card info), but clearly pays Intelius a fee for each signup. Arrington does a few back of the envelope calculations and figures that nearly all of Intelius' "growth" comes from these scammed deals, which, some claim are also
difficult to cancel.
The whole thing stinks, and you would think that, given the situation with InfoSpace, the backers of Intelius' IPO would have done a bit more due diligence before agreeing to take the company public.
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General30 May 2008 02:11 pm
Naveen Jain’s Latest Quest For A Trillion Dollar Company May Be In Trouble
Naveen Jain is nothing if not confident in himself. Back in 2000, as founder and CEO of InfoSpace, he famously declared both that InfoSpace was bigger than the internet, and that it would be the world's first trillion dollar company. More specifically, he said: "There are two kinds of people in this world... those who don't believe in God, and those who believe in God and InfoSpace. That's OK -- the nonbelievers will be converted when we become a trillion-dollar company." Now, it's one thing to be confident, but it's another thing to be cooking the books to try to get there. After InfoSpace
imploded and Jain was
sent packing, an investigative report uncovered all sorts of evidence about how much of InfoSpace's revenue
was a huge scam, involving outright lies and "lazy susan" deals, where InfoSpace would "invest" in a company, who would turn around and pretend to buy InfoSpace services as a way to boost revenue.
Jain moved on and started a new company called Intelius, which claims to help you get background information on people -- though it's not hard to find many, many, many people who claim that the information is next to
useless. Still, it's managed to bring in a ton of revenue, and with that has been planning to go public. However, Mike Arrington did a fantastic bit of sleuthing to discover that
much of that revenue seems to come from a very questionable method.
Basically, Intelius gets you to cough up some money for the "information" it has on someone. Afterwards, it asks you to take a short survey, promising to give you $10 for your time. The survey is quick, but down below, in tiny gray-colored hard-to-read print, it notes that in submitting the "survey," you're actually agreeing to sign up for a $20/month "service" that, according to Arrington, doesn't appear to do anything other than charge you $20/month. As for that $10? Well, it's never mentioned again (nor is the $20/month you'll be paying... other than on your credit card bill). The "service" is a separate company (though Intelius gives them your credit card info), but clearly pays Intelius a fee for each signup. Arrington does a few back of the envelope calculations and figures that nearly all of Intelius' "growth" comes from these scammed deals, which, some claim are also
difficult to cancel.
The whole thing stinks, and you would think that, given the situation with InfoSpace, the backers of Intelius' IPO would have done a bit more due diligence before agreeing to take the company public.
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