08.27.10
Posted in Apple, Bill Gates, Google, Microsoft, Patents at 6:17 pm by Dr. Roy Schestowitz
Another yacht man attacks with patents, joining Law Suit Larry

Paul Allen, photo by msprague
Summary: Having helped to create an abusive monopolist, driven some companies into the ground, subverted CNET with his money and so forth, Paul Allen turns to patent trolling as a business model
Paul Allen is not as pleasant as he wishes to portray himself. We have already criticised some of his investments [1, 2], warned about his influence, and mentioned embarrassing parts of his days at Microsoft and beforehand. He was never a particularly ethical guy and maybe that’s why he hooked up with Gates. A few weeks ago he announced that he was following the footsteps of Gates by becoming a philanthrocapitalist. His latest gig playing the “charity” game is a subject we addressed this morning.
For those who do not know yet, Bill Gates not only invests in the world’s biggest patent troll (which Gizmodo shamelessly promotes at this very moment) but he also has his own patent troll, called “Searete”. These Gates footsteps too are now being followed by Allen, who sued like a true patent troll, based on this WSJ article and others (Microsoft PR Bot Ed Bought already jumps to defend Allen, but Slashdot is far less sympathetic). “Apropos of Allen suing everyone around [except Microsoft],” writes Steven J. Vaughan-Nichols:
In the aftermath of the Bilski Supreme Court decision, the Supreme Court did nothing to stop software or business method patents. As a result, not only software development companies but all businesses are now in more danger from patent lawsuits than ever before.
That’s because as Keith Bergelt CEO of the Open Invention Network (OIN), a non-profit, patent-protection consortium, observed, “Patent lawsuits have been doubling for the last three to five years, and I expect this trend to contribute.”
In particular, you can expect to see more attacks from patent trolls, companies that exist for the sole purpose of extorting money from businesses by threatening them with lengthy and expensive litigation. Bergelt estimated that win, lose, or draw, it costs $3- to $5-million dollars to defend against a patent lawsuit.
What a lovely press release to find late on a Friday. It says: “Interval Licensing LLC (“Interval”), a Paul G. Allen company, filed a complaint today in the U.S. District Court of the Western District of Washington against major internet search and e-commerce companies alleging that they have infringed on four patents held by Interval. The eleven defendants are AOL, Apple, eBay, Facebook, Google, Netflix, Office Depot, OfficeMax, Staples, Yahoo, and YouTube.”
Shame on Paul Allen. Does he still crave more money? Mike Masnick calls him a “patent troll”, which he certainly is.
Paul Allen Becomes A Patent Troll, Sues Google, Apple, Facebook, eBay And Others…
[...]
Because, while Interval was unable to actually execute, thanks to the wonders of the US Patent system, it was able to secure lots of patents, and now it looks like Paul Allen has gone full on patent troll. He’s using those patents to sue Google (and, separately, YouTube), Apple, AOL, eBay, Facebook, Netflix, Yahoo, Office Depot, OfficeMax and Staples — you know, the companies that actually did innovate and did execute — for being successful where he failed. Of course, Paul Allen has been tangentially related to patent trolling operations in the past, so perhaps it was just a matter of time. Still, this is a pretty disgusting situation all around.
Microsoft booster Florian Müller finds a way to spin that against Google (“Google is pro-patent,” he writes) and in response to this, gnufreex writes in one of our channels: “Patent Boy attacks everyone but Microsoft. He attacked Red Hat, Oracle (twice) IBM (every day), Google, Eben Moglen, SFLC… just Microsoft is great”
Speaking of Müller as a Microsoft booster, in blog discussions he has used the exact same spin on words that Microsoft uses, words like those which are used in the context of software freedom. He hijacks and distorts words like “FOSS” by assimilation (pretending that his positions represent FOSS).
Pay attention to how Microsoft spins the words “choice” and “freedom” (there is a new cartoon about it in Free Software Magazine), not just the term “open source” (see links below). █
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Posted in GNU/Linux, Google, Kyocera Mita, LG, Microsoft, Patents, Samsung at 5:17 pm by Dr. Roy Schestowitz

Will you trust this man?
Summary: Microsoft and de Icaza are still trying to make Android rely on .NET and it’s not surprising given that Microsoft is unable to produce decent phones (or phone platform) of its own
WE HAVE posted literally dozens of times about Microsoft imposing a patent tax on phones running Linux. This only applies to phones from Samsung, LG, HTC, and Kyocera Mita (Asian companies where software patents have some legitimacy).
To Microsoft, getting paid for most Android phones that are shipped is not enough. Microsoft also wishes to control the software which runs on these Linux-powered phones and MonoDroid is one option for achieving this [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16].
“Microsoft also wishes to control the software which runs on these Linux-powered phones and MonoDroid is one option for achieving this.”According to news which reached Slashdot some hours ago, Microsoft is now promoting this route, offering even more endorsement to Mono. “Miguel de Icaza is not concerned about legal challenges by Microsoft over .Net implementations, and even recommends that Google switch from using Java,” says the summary from Slashdot. Earlier this month we showed that Microsoft MVP de Icaza was twisting and lying about the Java lawsuit [1, 2, 3, 4, 5], as we last noted two days ago.
So, why is Microsoft so desperate to make Android Microsoft dependent? Well, it’s because their own phones are failing and market share is falling. Microsoft’s mobile reality is gloomy. Vista Phone 7 [sic] won’t change much, definitely not with its reliance on Silverlight. OpenBytes expects Microsoft to throw yet another $400 million (or more) down the drain:
Cast your mind back to some of the Microsoft adverts of the past. Lets reminisce with a wry smile at the shoe commercials that were supposed to be funny. Let’s remember the Windows 7 party adverts that were so wooden, that they made an episode of Home & Away look like a cinematic masterpiece. Then we had the “Kin” the f’Kin (sic) phone that must have hurt Microsoft badly when not only did the advertising fail to impress, but the phone itself was dumped shortly after (allegedly after pushing only a few more than 500 units).
It appears Microsoft just can’t relate to people with many products or its advertising in my view. For example, it’s very easy to tout success with Windows 7, when as my recent article touched on, you get no choice over what comes pre-loaded on your machine when you enter a store. I could tout millions of deployments of my operating system if I was able to preload it on all the machines at a retailer.
That aside though, its been reported that Microsoft is to stuff 400 million dollars in the war chest to pimp their next experiment (Windows Mobile 7) and it will be investors (I would assume) who are thinking that with this figure, plus the giveaway of phones to Microsoft employee’s should prove very costly if Win Mob goes the way of the Kin. After all, Windows 7 Mobile is said by some to be its “next of Kin”
Microsoft will no longer mention the “K” word (“KIN”). It’s just too embarrassing and synonymous with “epic fail” or with underage sex. █
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Posted in Microsoft, Novell, Rumour, VMware at 4:49 pm by Dr. Roy Schestowitz
Summary: The mystery company which still bids to buy Novell might actually be the Microsoft executives-dominated VMware
ONE OF our readers from Brazil asks, “VMWare to buy Novell?”
He links to this new opinion piece and adds: “Too bad for Open Suse. I guess VMWare will be worst to Open Suse than Oracle is/was to Open Solaris.” From the ending:
Piper Jaffray analyst Mark Murphy said in a research note that “we continue to believe that the emerging VMware relationship is the most interesting recent development to help offset the decay of the Microsoft partnership.”
Add it up and VMware may be Novell’s savior in many respects. Novell’s quarter was light on revenue as customers held back purchases. Novell is exploring strategic alternatives and IT buyers don’t want to deal with the uncertainty. Novell reported third quarter non-GAAP earnings of 6 cents a share on revenue of $199 million, which fell short of Wall Street estimates. Novell also declined to give an outlook for the fourth quarter.
We wrote about this before. VMware is one likely acquirer for Novell, or at least part of Novell. VMware is run by former Microsoft executives. █
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Posted in Apple, Europe, GNU/Linux, Microsoft, Open XML, OpenDocument, OpenOffice, Standard at 4:40 pm by Dr. Roy Schestowitz
Summary: Apple continues to ignore the international document standard, at least in i[don't]Work; migration to GNU/Linux through OpenOffice.org is hampered a little
“It’s time to call bullshit and cause a fuss wrt Apple’s iWork not supporting ODF,” John Drinkwater wrote earlier today.
For those who do not remember, Apple is a barrier to ODF and occasionally a booster of its partner Microsoft, which promotes OOXML. Lack of ODF support in i[don't]Work is a subject we wrote about in [1, 2, 3, 4, 5]. This is just one of the many areas where Apple harms GNU/Linux users, patent lawsuits being another area.
“This is just one of the many areas where Apple harms GNU/Linux users, patent lawsuits being another area.”In addition to this, some hours ago a reader asked us, “have you see[n] this? Why am I smelling corruption?”
It’s a story about a French migration to GNU/Linux in government (ditching Apple and Microsoft) being stifled through the office suite layer. Think about interoperability through standards here. France is said to be Europe’s biggest adopter of Free software (although it depends on who’s ranking and how the ranking is done), so it’s important. Here are the details from the Open Source Observatory and Repository (OSOR):
The administration of the French city of Marseille is giving up its plans to decrease it’s IT vendor lock-in. The move to OpenOffice is almost completed, but about 35 percent of all workstations are forced to continue to also run a proprietary office suite, because of applications that link exclusively to that suite’s spreadsheet and text editor.
Furthermore, the city’s IT department has decided to end its current use of both Microsoft and Apple operating systems and start migrating all 5000 workstations to Microsoft’s latest version of Windows. This move will be completed in 2014.
In a memo to all staff at the IT department, which was leaked onto the Internet, Jean-Marie Angi, the IT director, writes: “Following the reorganization of the IT department, the objective of the feasibility study to use Linux for desktops has been changed to a comparison between using Linux or Windows Seven.”
Even Microsoft boosters say that Microsoft’s Vista 7 migration is expensive, based on this new post from SJVN. Let’s keep an eye on France. Microsoft tried to derail Munich’s migration to GNU/Linux through back room deals negotiated with/by Steve Ballmer. █
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Posted in News Roundup at 4:06 pm by Dr. Roy Schestowitz

Contents
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Desktop
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One of the challenges of being a Linux desktop user is the difficulty in finding systems that ship with Linux pre-installed. Major OEMs often offer a handful of Linux offerings, but to get a wider range of hardware and choices of Linux distributions you have to look to smaller vendors that are really interested in promoting Linux — like ZaReason.
ZaReason sells a full line of Linux machines, desktops, laptops, netbooks, and servers. They also sell peripherals and some other gear, but what I was most interested in was a laptop with Linux. Specifically, a laptop with muscle. So I asked ZaReason to send me a review unit, the Verix 1656 with Intel’s Core i7 and maxed out RAM.
[...]
The Verix gets two thumbs up. It’s not perfect, but it’s a really good laptop and one I’d recommend to anyone who wants a solid and speedy Linux laptop. My main complaint with the Verix? It’s a review unit, which means I have to send it back. If you buy one, though, you won’t have that problem.
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Kernel Space
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Since at least 2008, the Btrfs Linux filesystem has been talked about as a next-generation technology one day potentially rivalling or supplanting the current dominant Linux filesystems.
According to Chris Mason, founder of the Btrfs effort and now director of software development at Oracle, Btrfs is today generally stable and usable even though it’s yet to be finalized. And although he admits the filesystem still has some issues to overcome as development continues, Mason said he would like to see Btrfs ultimately replacing existing Linux filesystems like the popular Ext3 and Ext4 systems that are often the default on enterprise Linux distributions.
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A while ago we were telling you there are 20% chances to get BTRFS support in Ubuntu 10.10 Maverick Meerkat. Well, it didn’t make it.
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Applications
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When you hear the word “backup,” what do you think? Critical? Complicated? Costly? When you think of backing up Linux desktops or servers what do you think? You don’t? You run screaming? Thankfully that is not necessary. There are tons of tools in the Linux-verse capable of running a multitude of backs. From the overly simple to the overly complex, in Linux you can find a tool for just about every situation and every experience level.
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Desktop Environments
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K Desktop Environment/KDE SC)
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With all of this talk about KDE 4.5 lately, I thought I should take a moment to mention a tool that hasn’t had much (or any) talk here on Ghacks. That tool is Kontact. But what is Kontact? Kontact is the KDE groupware suite that includes more tools than your standard suite, has a lot of pluses, and a few minuses. But even with its minuses, Kontact is a spot-on tool for anyone needing a solid groupware suite to keep them as organized as possible.
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With all the many reasons to use Linux today–particularly in a business setting–it’s often a relatively easy decision to give Windows the boot. What can be more difficult, however, is deciding which of the hundreds of Linux distributions out there is best for you and your business.
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Red Hat Family
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Jefferies & Co. maintained its ‘buy’ rating on business software company Red Hat Inc. with a price target of $35.
“We believe Red Hat continues to be well-positioned to capture share in Federal IT, but the new 8 year, $2 billion social security administration (SSA) claims processing contract is likely to be spread across many vendors. If Red Hat does win a portion of it, they could be displacing International Business Machine Corp.,” said Katherine Egbert, an analyst at Jefferies.
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Debian Family
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Debian kicked off when Linux distributions were still a relatively novel concept. The only older surviving distro is Slackware, Red Hat didn’t enter the picture until 1994. Depending on how you look at it, Debian either enjoys a very small niche user base, or one of the largest of any Linux distribution. Strictly speaking, Debian is widely (though it’s hard to say how widely) deployed on servers and not quite as popular on desktop systems compared to Fedora, Linux Mint, or Ubuntu.
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Canonical/Ubuntu
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OpenOffice 3.2.1 (bug-fix release) was released almost 3 months ago but only now is available for Ubuntu 10.04 Lucid Lynx users, in the lucid-proposed official repository.
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Following its launch as public beta in January of this year, the Boxee developers have announced the release of a new beta – version 0.9.22.13692 – of their popular part-open-source cross-platform media centre with social networking and community features. According to Boxee VP of Marketing Andrew Kippen, the latest public beta adds “the foundations of a new Movie Library to complement the TV Show Library”.
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Web Browsers
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Mozilla
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In May, Mozilla and the Shuttleworth Foundation announced a new Education for the Open Web Fellowship. The aim is to support practical ideas that help people learn about, improve and promote the open nature of the internet, as part of our commitment to supporting leaders working at the intersection of open education and the open web.
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Mozilla pumped out a release candidate version of Firefox 3.6.9 yesterday.
The pre-beta update is intended only for brave souls willing and able to have a poke around in the unfinished code.
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Oracle
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Once upon a time (1984), Sun created an RPC implementation for Unix, with the intent of implementing RFC 707 (High-level framework for network-based resource sharing). Now, in those days, a good way to ensure that people used code that you wrote was to upload it to usenet, and in 1985, Sun did that. (Google has one of the posts archived here: Sun RPC part 8 of 10)
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Like many of you, every year we look forward to the workshops, conferences and events related to open source software. In our view, these are among the best ways we can engage the community, by sharing our experiences and learning from yours. So we’re sad to announce that we won’t be able to present at JavaOne this year. We wish that we could, but Oracle’s recent lawsuit against Google and open source has made it impossible for us to freely share our thoughts about the future of Java and open source generally. This is a painful realization for us, as we’ve participated in every JavaOne since 2004, and I personally have spoken at all but the first in 1996.
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Licensing
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A collaborative activity dubbed Project Harmony is now under way between corporate and corporate-sponsored participants in the free and open source software communities (not to be confused with the Apache Java project of the same name). The project seeks to harmonise the various participant and contributor agreements – collectively termed “contributor agreements” by some – used by many open source projects.
The goal of the project’s initiators is to reduce the legal costs of analysing paperwork faced by companies contributing to open source projects. Initiated and sponsored by Canonical, meetings have already been held several times under the Chatham House Rule, including one recently during LinuxCon in Boston. The participants also number several people who are skeptical of the value of copyright aggregation, myself included. At the meeting I was asked to write about my skepticism; this article is the result. I’m by no means the first to tread this ground; you’ll also want to read the earlier article by Dave Neary, and the comprehensive article by Michael Meeks ends with a useful list of other articles.
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My post this week on several writers groups objections to Bill C-32 has generated considerable discussion, with some taking me to task for focusing on their letter’s warning of “unintended consequences,””years of costly litigation,” and “serious damage to the cultural sector.” Instead, they argue that I should have focused on the call for additional “legislative guidance” on the fair dealing reforms. After all, who could be against greater clarity in the law?
In the discussion that has followed, I believe that it has become increasingly clear that the “legislative guidance” is not really about the fair dealing reforms found in C-32, but rather fair dealing more generally. Unfortunately, the writers’ letter only speaks of their concerns and does not provide any specific policy or legislative reform recommendations that would clarify their intentions. However, with the government having opened up the fair dealing provision, those groups may see an opportunity to reverse the Supreme Court of Canada’s CCH decision that characterized fair dealing as a user right and established guidelines for its interpretation.
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USA Today, the nation’s second largest newspaper, is making the most dramatic overhaul of its staff in its 28-year history as it de-emphasizes its print edition and ramps up its effort to reach more readers and advertisers on mobile devices.
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Security/Aggression
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We’ve already noted that various government officials have been engaging in a massive hype campaign about “cyberwar” threats, in an effort to get more control over certain networks. But there’s also a bit of an inter-departmental battle within government agencies over who should get to control these new powers
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A failure of servers at Virginia’s centralized information technology superagency has left several state agencies unable to do their work.
At least two dozen agencies were affected by the Wednesday afternoon crash at the problem-plagued Virginia Information Technologies Agency.
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Kyle Cassidy traveled 15,000 miles over two years photographing Americans in their homes and asking one question: “Why do you own a gun?” A good question, particularly since most of these guns are not easily reconcilable with the notion of self-defence and their true place should be somewhere in the Armed Forces.
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I was pretty bummed this year when I found out that a previous engagement would prevent me from traveling to Las Vegas for the annual back-to-back Black Hat and Defcon security conventions. But I must say I am downright cranky that I will be missing MalCon, a conference being held in Mumbai later this year that is centered around people in the “malcoder community.”
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Censorship/Privacy/Civil Rights
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Internet/Net Neutrality/DRM
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We saw it more recently in the NY Times piece we wrote about claiming that cable TV was winning against the internet by purposely keeping authorized content offline, based off of a single anecdote of a guy who ditched his cable subscription only to go back a year later… just a day or so before the stats came out showing that people are actually ditching their cable connections.
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What was most interesting about the situation in North Carolina, however, was how blatant state politicians were in highlighting that it was really the broadband companies who were calling the shots. In our story from April of 2009, it was noted that when the state representatives sponsoring the bill were asked questions about it during a committee hearing, they asked Time Warner employees to answer for them. Think about that for a second. The sponsors of the bill couldn’t answer the questions, so they asked industry folks to answer instead. We had thought that was about as blatant as a politician could be in admitting that the bill was actually written by the industry and that the politicians didn’t even understand what they were sponsoring.
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One local on-ramp to the Internet just got a lot bigger and lightning fast.
The city of Salisbury begins beta testing of a brand new fiber-optic cable system next month.
Salisbury and North Carolina’s Municipal League have overcome strong objections from a powerful state senator, Sen. David Hoyle of Gaston County, who supports the cable companies who say local government competition is unfair.
After the implosion of the textile industry, Salisbury is trying to weave a new future with new fibers; fiber-optic cable.
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Intellectual Monopolies
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Copyrights
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A leaked draft of the new Czech Copyright Act was obtained by Pirate News at the beginning of August 2010, after the Ministry of Culture has initially declined the request of Czech Pirate Party to have access to the document three days after the draft was sent out for feedback to organizations affected by the proposal. The draft presents a storm of “improvements” which grant millions of euro from public sector budgets to collecting societies.
[...]
That means that in order to achieve free distribution of copylefted work, the author has to notify the collecting society and he carries the burden of proof, that is, he has to prove that license has been provided, or if you like, the user of gratuitous license has to prove the collecting society has been notified, which is even harder. The amendment draft thus violates the declared support of public licenses.
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If you ever thought that no one would ever actually legally attack Creative Commons and, if they did, you’d hear about it, consider this the article you “hear about it”. A draft copyright bill from the Czech Republic has leaked online and it may be one of the most disturbing copyright bills ever created.
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The founder of the small software company Coding Robots was shocked when he found out that one of his works had been cracked and shared on The Pirate Bay. However, instead of asking The Pirate Bay to remove the torrent the company’s founder did quite the opposite. He sent a ‘Notice of Ridiculous Activity’ because the crack didn’t live up to his expectations.
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Now called simply Playlist, the site allows users to create and share playlists using either song files that are hosted by the company itself or on third-party servers. When it plays the files that live on playlist.com, the service racks up millions of dollars in royalty costs. When the files play from external servers, the site functions, in a sense, as a playable search engine.
As the screenshot from its Chapter 11 bankruptcy filing shows (right), Project Playlist now owes millions of dollars in royalty costs to each of the major labels for playback of the music it hosted, having finally reached licensing agreements with all four major labels by May of this year. Those hard-won licensing agreements may well spell doom for Playlist.com, as they have for so many other start-ups.
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Before the days of the Internet when computers with 48k were deemed sufficient, I was one of a few who were accessing Micronet. Little did I know at the time (when I was downloading lawfully free software onto tape) was that I was taking the first steps into what would be a global phenomena and eventually something which would become so large, even the best of ISP’s could buckle under the demand to feed their end users hunger for data.
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It is unlikely that online copyright infringement would ever stop, no matter what was done, however it’s like smoking cigarettes. Smoking cigarettes was once socially acceptable. It no longer is socially acceptable. Or drunk driving – at one time everyone did it, now it’s so socially unacceptable that very few do so anymore.
The curious thing is that all of the laws which have been enacted, appear to have had virtually no effect on online copyright infringement. What has had a huge effect was legal options. People love to show their appreciation for value, especially when they can show that appreciation directly to the artist, or software developer.
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This is incredibly laughable if you know anything about the Copyright Office, which has been the leader in pushing for ever more draconian copyright law and has a history of almost always siding with content creators over the public. The 1976 Copyright Act, which completely flipped copyright on its head in this country came out of the Copyright Office, and some of the same folks are still there (including the boss, Marybeth Peters) — and haven’t changed their opinion much. Peters, in particular, has always been a staunch supporter of copyright holders over the public.
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So, the websites themselves are already pretty far removed from the actual infringement. The files are hosted on other sites. They’re shared by other people. These sites just allow users to post links. And… then on top of that the studios aren’t even suing these sites, which are a few steps away from the actual infringement: they’re suing this ad firm, which is another degree of separation away. Wow.
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ACTA
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Dutch political party Green Left (Groen Links) is completely fed up with the ACTA Treaty’s haziness, reports Webwereld. One of Webwereld’s readers tipped off Mariko Peters (GL) about ACTA’s continuing secret negotiations as well as contradictions in communications about possible changes in Dutch law as a result of the Treaty. Maria van der Hoeven, Dutch Minister of Economic Affairs replied.
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ACTA is the Anti-Counterfeiting Trade Agreement, which is currently being negotiated, largely in secret, between the United States, the EU and 9 other countries.2 This draft agreement seeks to regulate a wide range of copyright, patents and trademark issues, including, most controversially, providing for additional regulation of the Internet. There have been a number of leaks (here, here, here and here) and the European Commission published an official draft text on 22 April.
ACTA is a covert attempt, at the global level, to further reduce the public interest element in copyright, patents and trademarks, in the balance between the rights of creators, users, and the public at large, without proper debate and scrutiny in each nation state. The current form of ACTA is a threat to future innovation and freedom of citizens. ACTA is primarily driven by the US and the EU. Developing countries such as India and Brazil have been shut out of the process from the start.
Ubuntu 10.7 Smartbook Edition coming for ARM!
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Posted in Apple, Marketing, Microsoft at 10:20 am by Dr. Roy Schestowitz
Summary: Reverb gets busted by the FTC and then settles the case, having left fake reviews on behalf of clients
“We were surprised to know that Reverb had worked with Apple so much,” said an article we cited last year.
For those who do not know, Reverb is an AstroTurfing agency, similar to some of Microsoft’s. Last year the rather toothless FTC said that it would crack down on AstroTurfing, so we filed complaints to the FTC, exposing some of Microsoft’s AstroTurf agencies (the FTC replied to us but waited for more similar complaints).
Anyway, by fining Reverb right now, the FTC shows that it bites, not just barks, at AstroTurfers. But it’s only about disclosure really: [via]
Discerning Internet users know that glowing online reviews of things like books or restaurants cannot always be trusted. But federal regulators are serving notice that if you stand to gain financially from the review you are writing, you should be upfront about it.
Let’s hope that the FTC will also target Waggener Edstrom, Edelman, Visible Technologies, and maybe Federated Media next. They all work for Microsoft. See the video we posted earlier of Bill Hicks on marketing. █
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Posted in Finance, Marketing, Novell at 7:26 am by Dr. Roy Schestowitz

“An example of one kind of IQ test item, modeled after items in the Raven’s Progressive Matrices test.” [via Wikipedia]
Summary: Novell’s attempt to associate itself with wisdom is proving to be a dumb strategy which alleviates none of the worries customers have
A FEW DAYS ago we argued that Novell tried branding — not new products — to rescue itself. Euphemisms, a new motto, and labels like “intelligent” and “IQ” are being used sparingly (and even echoed by this nice and informative show, LNLP). Timothy, one of the few insightful writers who are left at The Register, makes the same observations in relation to Novell’s poor results from last night.
While it’s convenient to say that the softness in Novell’s business is due to a rejected and unsolicited takeover bid from New York hedge fund Elliott Associates back in March, there very well could be something else going on here — such as customers preferring the integrated stacks of software from Microsoft or Red Hat, just to name one possibility.
And merely slapping the WorkloadIQ name on the operating systems, appliance spinners, security, provisioning, and access control programs that Novell has sold separately — as it announced it was doing last week in order to have something positive to say during the Q3 call with Wall Street — cannot change that. Novell needs to be a safe place to invest in the long term to win that kind of deal.
But throwing all possible futures in the air — including selling the company, breaking it up, distributing some of its $1bn cash hoard to investors, or keeping on doing what it has been doing — and not picking one for five months does not make Novell seem safe. That’s probably why Novell is wilting a bit in a Linux market that is growing nicely.
Jan Wildeboer pokes fun at Novell by writing that ‘Novell said its quarterly revenue dip “is principally related to customer uncertainty”‘ and ‘”while customers are intrigued by Novell’s technology, too many of them don’t feel confident finalizing a purchase”‘ (whose purchase? Novell's?). █
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