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Techdirt Threatened With Defamation Suit Over Story On Feds Getting Royalty In Movie From Mexican Drug Cartel Money Launderer

Mike Masnick — Mon, 21 May 2012 12:14:00 PDT

We recently wrote about a very strange case, in which the US government apparently ended up with a 10% royalty in a soon to be produced Hollywood movie that is being billed as the "prequel" to Passion of the Christ -- the famous Mel Gibson movie that made over $600 million. The details were convoluted, but apparently our reporting on the subject upset someone, as we were sent an email, claiming that our post was defamatory and could cause damages in "the hundreds of millions of dollars," threatening that legal action would be taken if we did not change the post immediately.

In case you missed the original story, it involved a guy by the name of Jorge Vazquez Sanchez, who everyone seems to admit was somehow connected to a Mexican drug cartel. The government specifically charged him with money laundering and extortion. Reporters covering the story, including Guillermo Contreras and Jason Buch at the San Antonio Express-News, refer to Vazquez as a "drug trafficker."

Either way, the extortion claim came from the way he took ownership of a screenplay for Mary, Mother of Christ, which was written by Benedict Fitzgerald, who also wrote the screenplay for Passion.... Fitzgerald, at some point, took out and then defaulted on a business loan for $340,000 with Macri Inc. Because of this, the owner of Macri Inc., Arturo Madrigal, took possession of the screenplay. Some time after this, apparently Vazquez had Madrigal's brother kidnapped in Mexico, and demanded the rights to the screenplay in exchange for his release. Madrigal signed over the rights to the screenplay to Vazquez. Vazquez apparently then was able to sell the screenplay to Proud Mary Entertainment, which was later renamed Aloe Entertainment, in exchange for $1 million (less some fees) and a 10% royalty rate on any profits from the movie. After Vazquez did a plea deal in which he plead guilty and handed over that 10% royalty to the US government, Madrigal hit Vazquez with a separate lawsuit, seeking to regain control of the screenplay that Vazquez had obtained through these questionable means.

As far as we can tell all of the above are undisputed facts. It's what has been reported by others. It's what's in the legal documents. And it's what we reported. Our report focused almost entirely on the oddity of the US government ending up with a 10% royalty interest in a Hollywood movie.

And yet... we received a very threatening email claiming that our post was defamatory. The full email (complete with a series of typos, though minus the odd line breaks) is posted below. The lawyer who sent it claims to represent the producers of the film who purchased the screenplay from Vazquez. This may mean Aloe Entertainment, though the email never names the client. Oddly, the email, while insisting that our post was defamatory, more or less repeats the identical facts as we described them in the original post, and which we are reiterating here. The email does appear to raise two issues:

Our original post referred to Vazquez as a "drug smuggler." This was based on the San Antonio Express-News report that refers to him as a "drug trafficker." Perhaps there is a difference between one and the other, but it does not seem to be one of significance. Either way, the threat email was quite upset that we did not specify that he was merely "acting as a money launderer for a Mexican drug cartel." I will admit that I do not see how this makes a major difference one way or another, but in the interest of accuracy in reporting, we have changed our original reference from "Mexican drug smuggler" to now say "money launderer for a Mexican drug cartel" -- which is how both the federal prosecutors and the lawyer sending the email appear to describe him. Considering that the lawyer claims to represent the production company, however, I still am at a loss as to how this matters. I do not believe our original statement in any way defamed the production company. It was a mere use of a synonym for the original report. But that should only concern Vazquez. It makes no mention of Aloe Entertainment nor any statement about that company.

The threat email says that the headline of our post "implies that the film has drug money in it" and suggests that "the film or its production has drug ties." Except we never said that. We did not state it. We did not imply it. We said nothing of the sort. We explained the same chain of events that we explained above, which noted that the production house bought the screenplay from Vazquez. Nowhere did we suggest that drug money went the other way. So, we were left somewhat baffled by the threat.

Either way, as we often do, we feel that it is reasonable and important to publicize legal threats against us. We sent an email reply to the lawyer in question, noting our general confusion about what he was complaining about, while also noting the small editing change we made for factual accuracy entirely unrelated to his client. I still do not know why the original threat email was sent, as the facts about the client that were stated in the threat email are no different than what we reported. I do wonder how much the producers of the film pay their lawyers to send out such threat emails, but I imagine that is a separate issue for them to deal with on their own.

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Company That Issued Bogus Takedown Says It Was All A Mistake, Apologizes

Mike Masnick — Tue, 28 Feb 2012 12:28:00 PST

So, yesterday, as you may have heard, we wrote about how a totally bogus DMCA takedown notice, coming from an "anti-piracy" firm called Armovore, deleted a key Techdirt blog post about SOPA/PIPA from Google's search results. That post apparently got some attention within Google, who kicked off an expedited review and reinstated our site and a few others. Soon after that, we got a couple emails from folks at Armovore, and they also posted some comments to the site, in which they apologized, and said that it was an "early" version of the technology. To their credit, they "accept full responsibility for the mistake" and insist that while that takedown was an automated keyword-based effort, they now only do manual takedowns. They even apologized that multiple people reached out to apologize.

Of course, the apology still involved a few statements that suggested they were upset we even wrote the story, saying it was too "one-sided." The first email from the company also suggested that we shouldn't be annoyed any more since the story was added back to Google (ignoring that it wasn't for a month). They also say they haven't made any money ("aside from a single donation") and the founder said via email: "I don't feel comfortable charging anyone for an unfinished product." That's interesting, because apparently while he doesn't feel comfortable charging, he didn't seem to have much of a problem issuing a whole bunch of bogus takedowns with it, apparently without manual review, despite signing a letter that promises, under penalty of perjury, that the takedowns are accurate.

All that said, everyone makes mistakes, and even though this one was pretty egregious and involved our own content on a key post being taken out of Google for over a month, we'll accept their apology and move on. I think it would be smart and reasonable for whoever is behind Armovore to make a public donation to Public Citizen and EFF, but that's up to them to decide.

I'll also note that our situation was obviously nowhere near as bad as the various domains that have been incorrectly seized and shut down by ICE with no due process, at the request of the RIAA and the MPAA... and those sites have yet to receive any apology. And, in some cases, the sites are still being held by the government, despite a requirement that the government either give the domains back or file for forfeiture (it's done neither). Those sites deserve an apology from the RIAA, the MPAA, ICE and the DOJ and haven't received any.

Finally, what this incident really shows is just how incredibly easy it is to suppress speech under today's copyright laws. Just the fact that an automated system was able to do this should be ringing alarm bells from here to DC and back about some pretty serious problems with today's DMCA takedown process that is a shoot first, ask questions later kind of operation (as we've now seen first hand). Not only should this be a clear warning that we should not be expanding such powers via something like SOPA or PIPA, where the penalties are much, much greater, but that we should revisit the whole idea of a system that allows content to be taken completely offline prior to any chance for those falsely accused to respond. We shouldn't be expanding copyright law, we should be rolling it back to prevent abuses like this, even if they are "mistakes." A system that allows mistakes like this is a broken system.

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Key Techdirt SOPA/PIPA Post Censored By Bogus DMCA Takedown Notice

Mike Masnick — Mon, 27 Feb 2012 10:30:00 PST

We've talked a lot about how copyright law and the DMCA can be abused to take down legitimate, non-infringing content, interfering with one's free speech rights. And we're always brushed off by copyright maximalists, who insist that any complaints about taking down legitimate speech are overblown.

So isn't it interesting that we've just discovered that our own key anti-SOPA blog post and discussion... have been blocked thanks to a bogus DMCA takedown?

Last November, in the heat of the SOPA fight, I wrote a blog post, where I tried to pull together a bunch of the different reasons why SOPA and PIPA were really bad ideas. It was a very popular post for us, and I heard directly from many people that it was quite helpful in getting them to understand the real problems of these two bills.

Well, as I just discovered, that post cannot be found directly via Google any more.

I actually discovered this entirely by accident. I was looking for a totally different old Techdirt post, and was scrolling through Google results, when I saw a note at the bottom of the Google page saying that results had been removed due to a DMCA takedown: You see that warning every so often, and I have to admit that I came really close to just ignoring it. But then I remembered that the search I was doing was using the site:techdirt.com parameter, so any such notice must mean that a Techdirt page had been blocked by a DMCA takedown. That seemed surprising. So I clicked through and found this DMCA takedown notice -- and there at entry 253 is the URL for our post. The takedown comes from a company named Armovore, who apparently is one of those "anti-piracy" firms that sends DMCA notices out on behalf of others. In this case, it sent out the DMCA notice on behalf of Paper Street Cash -- which is a porn company I've never heard of prior to this. They're claiming that the takedown is about content from a site called TeamSkeet.

If you're scratching your head, you're not the only one. There's clearly nothing infringing in our post. I just wasted too much time going through all 300+ comments on that post and I don't see anything that includes any porn or even links to any porn as far as I can tell. Instead, it seems that Armovore and Paper Street Cash sent a clearly bogus DMCA takedown notice, which served the purpose of censoring our key blog post in the SOPA fight. And they did it on January 20th... the day that SOPA was officially shelved.

There are some other oddities in that list as well, including TorrentFreak's article about how ICE took down 84,000 websites illegally by seizing the mooo.com domain and saying that all 84,000 of those sites were involved in child porn.

In other words, two separate articles that have been key to the discussion concerning abuses of copyright law... both taken out of Google's index due to a bogus DMCA takedown. Hmm....

While many of the other links do appear to go to sites that may offer up infringing content, just looking at the URLs alone make you wonder what most of them have to do with Paper Street Cash or TeamSkeet. Some of the links talk about top Christian albums. One is to some Dave Matthews songs. Another is to Wiz Khalifa music. There's another one that appears to be a link to downloads of the TV show Prison Break. Obviously those things may be infringing, but the notice itself only talks about TeamSkeet, and if Armovore doesn't represent those other artists, it may have broken the law in pretending to.

Then there's a really bizarre one. Entry 533 on the list is... TeamSkeet's own website. I don't know how much Armovore charges Paper Street Cash, but they deserve a refund.

Most importantly, though, our page clearly is not infringing. This is a 100% bogus DMCA takedown -- something we only discovered by complete accident over a month later -- hiding one of our key articles in an important fight about abusing copyright law to take down free speech. Seems like a perfect example of how copyright can be -- and is -- abused to suppress free speech.

In the meantime, we'll be exploring our options for responding to this obviously bogus takedown from both Armovore and Paper Street Cash.

Update: After "further review," Google has reinstated our story to its index....

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Results From Our CwF+RtB Business Model Experiment

Mike Masnick — Tue, 3 Nov 2009 12:54:05 PST

Before getting into the "meat" of this post about how our CwF+RtB experiment worked out, I want to announce that we've "replenished" the store with some new t-shirts and hoodies. These are brand new -- not the same t-shirts and hoodies we had before, which are sold out. You have a choice of either a t-shirt or a hoodie with the full Techdirt logo, or my personal favorite DMCA takedown t-shirt which says on the front:
The content of this t-shirt has been removed due to a DMCA takedown notice.

Consider the message on the shirt a good way to engage people in a conversation about the abuses of copyright law and the DMCA. The hoodies come with a copy of my Approaching Infinity book, while you can get the t-shirts without the book or with the book.

Also, we are doing one thing differently this time around. Rather than just waiting until we sell out to stop selling these shirts, we're taking open orders for two weeks only and then will make the shirts and send them out. So if you want this shirt from us, you have two weeks to order. And that's it. On to the post itself...

After seeing many musicians setting up various interesting/amusing "tiers" of scarce value worth buying, while also working to connect with fans, we decided to launch our own CwF+RtB tiers, at the end of July, as an experiment to see what we might learn. We knew that this sort of thing worked for music, but had no idea if it would work elsewhere -- say, for a blog. It wasn't designed to replace our existing business model, but just as an experiment to see what would happen -- and what we could learn that might help others implementing similar business models.

I should apologize, as this post detailing the results is way, way, way overdue. We had most of the results and lessons within about a month, but this is a big post to write up and I kept procrastinating. No good reason why: there was just always something going on in the news that seemed more urgent and every so often I do like to catch up on sleep.

The quick summary: we consider the experiment to have been a huge success.

We brought in approximately $37,000 total due to this experiment, mostly in the course of that first month.
Nearly $12,000 came from direct sales to individuals of the tiers between $5 and $150.
As was revealed in an article at Wired, another $5,000 came from an individual, Didier Mary, who was working on a business plan and bought the Techdirt Reviews Your Business Plan package. The package included an Insight Community conversation, which recently concluded, about his business model idea. Didier has told us that "it was a great experience" and very useful to him in moving forward with his plans.
Another $20,000 came from larger companies, which purchased Insight Community packages after learning about them through this effort.
The effort also resulted in potential future deals, as it led many more companies to contact us to learn more about the Insight Community.
Other companies, with whom we were already talking about the Insight Community, contacted us after we launched this, with one noting that if what his company had been discussing with us was on the list, he probably would have just "clicked buy" right away (though, with that company, we're still discussing a deal and have not yet completed it).
Ignoring the higher end Insight Community deals, the average amount paid by users was over $70. This was significantly higher than expected.
Sales came from 15 different countries around the globe. North America and Europe were obviously the biggest, but we also got sales from Asia, South America and Australia (no Africa). The international sales might have been bigger if we had launched international sales the same day we launched the overall effort. Unfortunately, we didn't have all the details on that sorted out until a week later, and I think we probably lost some international sales that way. The US Postal Service does make international sales much easier these days -- especially with its "one rate" boxes, but shipping is still really expensive, and many countries then add annoying tariffs on top of everything. This was annoying, but (unfortunately) unavoidable.
Our highest selling item was not the cheapest, second cheapest or third cheapest offering (contrary to the claims that people just want the cheapest item). Instead, the biggest seller -- by a pretty wide margin -- was the Approaching Infinity package, that included both a copy of my book and a t-shirt.
For quite a while, the hoodies (which we almost didn't offer) outsold the t-shirts... but in the end the t-shirts barely passed the hoodies.
The Techdirt Book Club outsold the Techdirt Music Club by a factor of three.
No one bought the Day with Techdirt package, though we actually got a lot of inquiries about that, with multiple people who don't live in California saying that if they were closer, they would have bought it. This is still available, though.
And, fear not, no one bought the $100 Million Silence Techdirt offer (still available as well!), though we did get a few people who were worried that someone would actually take us up on this -- and one satirical offer from someone claiming to be from the RIAA, which made me laugh, saying the RIAA would pay up, but wanted to guarantee "exclusive rights" to the RIAA, such that it would be able to "pursue appropriate legal action against any and all 3rd parties that make use of this silence purposely or inadvertently" including, of course "the right to pursue similar action against any individuals who are also not reading Techdirt and therefore infringing on our own licensed agreement to be the sole recipient of a Techdirt-free world." Brilliant.
However, the $100 Million Silence Techdirt offer did get the most traffic of any of the tiers, by a factor of three -- though, it also drove many people to check out the other tiers.

Lessons Learned

So, what did we learn? Lots of things:

This works! These sorts of models can absolutely work in connecting with fans and in making money.
All of you, in our community, are awesome. Not just for buying, obviously, but because the overall response we got was incredible. This included many really, really nice emails that made us feel great, along with happy emails and Twitter messages from people receiving their packages, and telling us stories about wearing the clothes, reading the books, etc.
It's fun making people happy. Really. It really gave all of us here at Floor64 a great feeling every time we heard back from happy community members.
Logistics and inventory management are more complicated than you expect. We sort of knew this ahead of time, but you realize it first-hand when somehow, somewhere copies of signed books go missing, and you suddenly need to ask for an author to send extras. Also, dealing with sourcing inventory from so many different people for the Book and Music club is doable, but takes a lot of time to manage. Though, I have to say, every one we worked with -- from authors and musicians to publishers, agents and record labels really were fantastic. We didn't have even the slightest trouble from any of our partners in this endeavor. Shipping out the products definitely was an effort, but we tried to make it fun, with a group of us working together to package up and ship stuff (and on this one, the team here, lead by Gretchen, did a fantastic job, going above and beyond to get everything organized and shipped).
Having lots of options was a good thing because we weren't very accurate in predicting what would sell. We came close to not offering the hoodies at all, but those were incredibly popular.
You can't keep everybody happy, but you should try! We had to set up a better process for "customer support" as we launched this (nice job, Dennis!) and then work with and respond to customers who had questions or (in a few cases) problems. A few times the problem was that we did not explain things clearly enough, and sometimes there were problems with shipments (or, in one case, a hoodie that was frayed). But we tried our best to make sure everyone was happy and hopefully succeeded (mostly).
What you're selling should match your audience. The Book Club sold really well. The Music Club, not as much -- despite being awesome (seriously, the combined Music Club items are really, really cool, and the music is great as well). But, in retrospect perhaps that made sense, as the books in the Book Club directly related to everything we talk about here. The Music Club, while supporting artists who did things that we talked about here, was a bit different, and required people to like the music as well, which is a lot more subjective. Bundling together four separate musicians with different styles was, perhaps, not a great idea. On top of that, we perhaps did not do enough to promote the music itself to get more people to enjoy the work of those musicians. Finally, while some of the offerings were "unique," others could be purchased elsewhere, which limited the "scarcity" of the overall package.
Some promotions worked really well. The first promotion we did was offering anyone who bought both the music and book clubs together a choice of either lunch with me or a free hoodie. This helped motivate a bunch of folks to step up and buy -- and resulted in a handful of lunches.
Having lunch with people was really, really cool. I have to admit that I was a bit nervous going into the lunches from the above promotion, but they were all really amazing, often in very different ways. Each individual was really interesting and the conversations were quite engaging and thought provoking and fun. I'm pretty sure every lunch ended up lasting well over the allotted hour. I ended up learning a lot and had a great time at every one. I'm hoping to set up more ways to do things like that, if not the same thing.
Even the tiers that didn't sell, still generated interest in other things we were doing. A bunch of people contacted us about the Day With Techdirt package, and while no one bought it, many of them bought other packages instead.
Not everyone who says they will buy will buy, but that's okay. It was interesting to note that some people who told us they would buy (or even announced it on their Twitter/Facebook feeds) never actually did buy for whatever reason. That's fine, of course. Everyone is free to do what they want, but it was interesting to note. Just because someone says they'll buy, it doesn't mean they will.
Communicating directly with everyone can be difficult. While others here handled customer service requests, I started getting a bunch of emails personally from people who participated, sometimes with long and detailed questions. I tried to reply to most of these, but it was difficult, and I'm sure I missed a few.

Anyway, that's the basic summary. This really has been a lot of fun and quite educational at the same time. We've still got lots of things planned and will be trying a few new things as well, but thanks to everyone who participated and a big thanks to all the authors and musicians who partnered with us, along with the team here at Floor64 for helping to make this all work.

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Hacked Recap

Mike Masnick — Mon, 24 Aug 2009 02:29:02 PDT

As mentioned over the weekend, we were briefly hacked on Saturday evening. We've put in a bit of time to figure out what happened, clean up the mess and correct the problems (and harden some other defenses as well). The short story is that we left open a big hole that we shouldn't have left open. Yay. We had certainly locked down most of the obvious holes, and people try to hack us on a semi-regular basis, with little success. But, if someone's persistent enough, they'll find a way. In this case, though, we made it a hell of a lot easier than we should have. This particular hacker tried hitting a whole bunch of different routes early Saturday morning, most of which got rejected (some people noticed his attempt to do a SQL injection via the comments -- that failed). However, he went on to try SQL injections just about everywhere and eventually found one where we hadn't properly escaped things, and bam, that's all it takes. As you probably know, this site has been around since 1998, and while we've dumped/updated most of the old code, and most of the new code is properly secured, there were still a little pieces left over from the ancient code -- and that's where the big vulnerabilities were. That's not an excuse. We should have caught it earlier (in fact, we actually had been testing some code to replace some of the vulnerabilities, but hadn't deployed it yet -- but, we now realize it wouldn't have blocked all the problems). But, it is what happened.

From there, the hacker got into part of the blog admin (don't want to get into too many details of how the blog backend works, but it actually involves two separate admins -- which are separate from other stuff we do). Then, he basically had pretty good access to doing some stuff (though not everything) on the blog. He poked around a bit, deleted a bunch of comments, deleted a whole ton of old story submissions (most of which were junk anyway -- so thanks!) and then replaced a few stories on the front page with his fancy "hacked!" claims.

After that, the story is pretty straightforward. Once we realized what happened, we put the old stories back in place and made sure to quickly toss up some more secure walls to keep him out of the admin. We also shut down comments and submissions for a while, even though we were pretty damn sure the vulnerability wasn't there (it wasn't), but we wanted to make sure. Then a few of us spent some time digging around to understand just what the guy did so we could retrace his steps and make sure we killed off the basic vulnerabilities. Considering that he tried to hit us from a bunch of different angles, this took a bit longer than expected. But, once we figured out the basics, it was just a matter of tracking down the actual holes in the code. It was a little frustrating, since we really thought we'd blocked out SQL injections -- but in the end, it turns out we didn't do it absolutely everywhere. Anyway, there's a fair amount of code to go through, so we've been going over it with a fine-tooth comb, and checking it twice, then locking it down again.

Finally, we've been restoring the lost comments (we're doing that right now, so they might not all be back yet), of which we believe we didn't lose any (there's a small chance that a very very small number of comments were lost). Restoring the lost submissions is a bit much at this point (as I said, most were junk anyway), so if you submitted stories late Friday or Saturday, and really think we should see them, perhaps submit them again.

On the whole, there's not that much to say, other than check your code carefully, folks. If there's a hole somewhere, eventually someone's gonna find it. Luckily, this guy didn't do much damage -- just a bit of vandalism -- and he kept a few of us from enjoying what had otherwise been quite nice weekends with our friends and families. But he got us to go over our code pretty carefully (and mentally kick ourselves a few times), and get in touch with our inner CSI detectives to track down exactly what happened.

Update: Well, that was just great. Less than half an hour after posting this, our network provider went down for nearly two hours, despite supposedly having all sorts of redundancies. It had nothing whatsoever to do with the hack, but was a bigger issue for the provider. However, it did slow down us restoring the comments, meaning that comments need to remain off for probably another few hours. This has really been a fun weekend.

Update 2: Comments are back. We did end up losing a few comments, mostly those right before the hack. Really sorry about that. If you said something really important and it's missing... say it again, please.

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Wired Reveals First Buyer Of The Techdirt Reviews Your Business Plan Offering

Mike Masnick — Tue, 11 Aug 2009 11:48:22 PDT

Wired's Epicenter blog has a nice writeup all about our Connecting with Fans Experiment, and got to break the news about the first buyer of the Techdirt Reviews Your Business Model offering, Didier Mary. We'll have more details on the overall program shortly, but wanted to make it through at least the first month to have enough data to start sharing some of our lessons. Still, I'll say that the program has been a success well beyond what we expected...

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Ideas For CwF+RtB Promotions

Insight Community — Mon, 10 Aug 2009 12:28:16 PDT

As you know, we've been running our CwF+RtB experiment for a few weeks now. We're looking to do new promotions and special "this week only" types of offerings, on a regular basis. Two weeks ago, the special offer was a free Techdirt hoodie or free lunch with Mike Masnick, with the purchase of both the Book Club and the Music Club packages. This past week, we tried separating out just Amanda Palmer's signed book and CD for those who didn't want the entire Music Club. We've got plenty of ideas for other promotions, but we thought, why not get some ideas from you? And we'll do it as an Insight Community case, as well, to demonstrate again how the Insight Community works. So, the way this will work is that you get to suggest ideas for promotions within CwF+RtB (or potentially new tiers that go beyond the 1 week promotion), and if we use your idea (this only applies to the first person to suggest that particular idea), you'll get a free Approaching Infinity package, with the book signed by Mike (that doesn't come with the regular package). So, you'd get Mike's signed book plus a free t-shirt. We look forward to your ideas!

This is a case from the Insight Community, a powerful new marketplace that connects companies with intelligent communities like Techdirt. Click here to learn more.

Insights Due: 17 Aug 2009, 11:59PMPT

View Case Details at InsightCommunity.com

CwF + RtB = Techdirt

Mike Masnick — Mon, 20 Jul 2009 09:16:03 PDT
Techdirt's CwF + RtB

Time for a little experimenting from Techdirt... For years, we've been talking about various new business models in the digital era, and how they can work. More recently, we've seen a rapid increase in musicians who have figured this out (though, we're seeing it in a few other industries as well). Back in January, for a presentation that I did at the music industry event MidemNet about Trent Reznor's various experiments, I tried to simplify what he had done into a simple equation, and came up with
Connect with Fans (CwF) + Reason to Buy (RtB) = The Business Model

That simple formula has resonated incredibly well, to the point that I'm receiving emails daily about it specifically -- and not just in the music industry, but many other industries, asking how they can apply it themselves. Some complained that such a model only worked for "big" name acts like Reznor, so I later expanded the original presentation to include many other acts of varying levels of fame and success to show how it could work at many different levels. Most recently, I used those examples to show where I believed the overall music industry was heading.

But, it actually goes beyond just the music industry. In fact, I'd argue that these models apply to many different industries, including the media business. After doing all those presentations, some of us here at Floor64/Techdirt got to talking about ways that they could be applied to other industries -- and one thing led to another where we began to wonder why we didn't test them out ourselves. So, we looked at the various models and thought about what could we do along those lines. I certainly love the "tiered" models, where there are numerous options of increasing value that people can buy into, and we figured, why not test that out ourselves? It would be a fun experiment and a great learning experience. So... here we are introducing:
Techdirt's CwF + RtB

We had a lot of fun putting this together. There's quite a range of things on the list. Of course, everything you are used to here on Techdirt remains as free and open as ever. Then there are all sorts of relatively inexpensive extras you can buy, granting you some extra abilities, like the chance to see some Techdirt posts before everyone else, followed up by some fun products -- such as t-shirts and a package that includes both a t-shirt and a book written by me. Like hoodies? We've got those too.

Beyond that, however, is where we really started to explore the possibilities. We realized we also wanted to use it to help promote others who understood this vision (it's not just about us, of course). So we put together two great offerings that I'm incredibly excited about. The first is our Techdirt Music Club offering, that doesn't just promote four musicians (Jill Sobule, Amanda Palmer, Moto Boy and Joe Pug) -- all of whom we've discussed at times for the cool things they do with new business models -- but also offers you something unique that you can't get anywhere else. All four (and their management) have been a tremendous joy to work with through this process. It's great brainstorming with creative, positive people.

Next is the Techdirt Book Club, which is a fantastic collection of must read books from a bunch of authors whose thinking on this is far beyond what else you might find out there. Even better? All of the authors involved -- William Patry, James Boyle, David Levine, Michele Boldrin and Michael Heller -- are so enthusiastic about this experiment that they've agreed to provide signed copies of the books in question. It's the ultimate signed book collection -- and, as a bonus we throw in additional features for Techdirt and the book that we put together from my writings -- which I'll sign as well.

From there we've also got a chance to hang out -- and spend the day with us and some friends. See the magic that is writing a Techdirt post and (much more exciting) have some entertaining discussions myself and with much more interesting folks like Mark Fletcher, Andy Kessler, Rich Skrenta and Eric Goldman. We'll have some meals, we'll hang out at the office, and we'll go out and have some fun as well. Should be a blast.

Above that level, we have a whole series of options that are more for the corporate level -- though, if you're feeling flush, individuals are more than welcome to take part, utilizing the business side of what we do here at Floor64/Techdirt. You've got a variety of different options that include some opportunities to use the Insight Community to get some smart analysis on your business model. Or you can help pick a theme for a week on Techdirt, complete with an Insight Community case and additional posts. There are also offerings where I'll speak at your company or event... all the way up to a full on Techdirt Greenhouse production for your company, both of which include cases with the Insight Community. And, if you really want to dig in, and get every single thing that we have offered... that's available as well.

And, of course, these offerings are targeted at the folks who like what we do, enjoy it and would like to interact with us some more... but we like to offer up things for everyone, including those who aren't huge fans, and would rather we shut up and go away. We've even got a package for you! Though, I warn you, it's a bit pricey. We may be offering something for you, but we never said we'd make it easy for you.

Anyway, we hope you have some fun checking these out -- and find something worthwhile to you. We enjoyed getting the whole thing together, and we're curious to see what we learn from this experiment. Special thanks to the team at Floor64 for putting in some crazy hours before this launch, and to everyone else (authors and their publishers, musicians and their managers, entrepreneurs, etc.) who agreed to take part in this experiment.

Techdirt's CwF + RtB

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What You've Been Missing Over At The Insight Community

Mike Masnick — Thu, 11 Dec 2008 16:10:00 PST
We've been pretty busy on a bunch of fronts and haven't had much of a chance to mention some of what's going on over at the Insight Community lately, and wanted to pass along some of the cool things that have come out of there recently. First up, we had a case sponsored by IBM and Intel all about virtualization that went amazingly well. Originally, the plan was to only take the three best insights and put them on the Virtualization Conversation blog, but they were so blown away by the content that they agreed to up the deal to take eight. Check out Stephen Foskett's post looking at where virtualization of data center infrastructure will take companies in the future. Then there's David Mould looking at three scenarios that benefit from virtualization. More posts will be going up soon.

Then, of course, the community's been doing some great work diving into all the various details of digital nomads for the crowdsourced whitepaper about digital nomads, sponsored by Dell. The community has already generated nearly one hundred different insightful thoughts on how the rise of digital nomads impacts everything from business decisions, workplace environments and IT decisions. From all that great content, a fantastic digital nomads wiki has been created, and some of the best output from that wiki has been turned into a downloadable whitepaper (pdf) if you're looking to understand things like how to determine the ROI on digital nomads in your business.

And, of course, there have been a variety of ongoing Insight Community insights showing up on American Express's Open Forum blog (including a post I did on what small businesses can learn from Tabasco sauce). There's plenty more going on in the Insight Community as well, we've got a bunch more lined up and coming soon, so if you're not already a member, why not?

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We're Hiring In Sales

Mike Masnick — Tue, 4 Nov 2008 14:00:00 PST
As we continue to evolve and grow our business, we've been looking to hire an experienced sales exec to focus on selling the Insight Community. We've been interviewing a variety of candidates, but wanted to alert the wider Techdirt community, as we know that readers here are most likely to understand what we're trying to achieve. If you're an experienced sales exec and believe in what we're doing here, feel free to contact us. Alternatively, if you know of any good candidates, please feel free to send them the job description.

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Techdirt Moves On Up To The 64th Floor: Some Changes Around Here

Mike Masnick — Wed, 15 Oct 2008 10:00:00 PDT
We've got a bunch of announcements today (and a few more coming up as well), but I wanted to start off with the big one: Techdirt, the company, is becoming Floor64, the company -- while Techdirt, the blog, will remain Techdirt. The blog began back in 1997 as a fun side project by me. Over the years it grew into much more, and in 2000 it became a business, also called Techdirt. In 2006, we launched the Techdirt Insight Community as our main line of business and the natural evolution of what we'd been doing as a company. However, there was growing confusion over the Techdirt brand, as people weren't clear whether it meant the blog, the company or the community -- so we felt it was time to clarify. Specifically, there are now three brands related to this site:

Floor64 becomes our new parent brand. That's the brand under which all of our products will now reside. It's a brand we've used for years internally (though some have noticed), and now it represents our overall outward brand.

Insight Community is one of Floor64's two main offerings. This rebranding of the Techdirt Insight Community will allow us to expand beyond the community we've built around Techdirt, to cover much more than just technology and business. The Insight Community is totally redesigned to reflect where the business has been headed over the past few months. If you're already a member, go check out the totally redesigned system. If you're not yet a member, go sign up and start participating (and earning money). If you're interested in sponsoring a case there, go check out how it works and learn about the value of sponsoring a case and engaging with the community.

The Insight Community is all about generating insights for companies, recognizing, as we often talk about here on Techdirt, that there's value in the creation of insightful content. The Insight Community is a platform that makes it possible for companies to generate insightful expertise on demand for use in a variety of different ways.

Techdirt is our other main offering, and is now solely focused on the blog itself. This should help us avoid some confusion over our different properties and the services that we, as Floor64, offer. Techdirt will remain the same great blog it's been all along, but we'll have some cool new features which we'll be posting about shortly as well. As always, Techdirt, the blog will be focused on providing timely and insightful analysis of technology and business news, with a focus on how technology relates to innovation, public policy and economics.

We've been hard at work on this effort, and there's a lot more to come -- some of which we'll announce today, and much more will be coming in the near future. All of our efforts are, of course, made possible by the great, vibrant, often brilliant and always opinionated community that was built up through this site. So, we're excited to open this new chapter of the business and the site, as we look forward to doing plenty more in the future to continue to give back to this community.

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Help Define The Future Of Storage With The Techdirt Insight Community And Dell

Mike Masnick — Tue, 15 Apr 2008 10:09:29 PDT
It's been a little while since we last updated you on the Techdirt Insight Community, but there's plenty happening there that you're missing out on, if you're not a member. First, we've put together a site, sponsored by Dell, on The Future of Storage, which is powered by the Techdirt Insight Community. We're building an ongoing conversation around the future direction of the storage market. You can join in the conversation itself just by heading straight to the site and commenting on the posts, but if you have experience with storage area network technology, you should join the community itself and submit your insight on where you think the market is heading. The best insights not only get published to the site, but can earn you quite a bit of money. Basically, you can be smart, earn a bunch of money and get recognition for being smart all in one shot. Tough to beat that.

In the meantime, if storage isn't your thing, there are some other open cases within the Insight Community that may interest you, including ones on helping a major beverage company provide online value to its retail partners, the market for accounting software and a look at what Sales 2.0 might really mean. All Techdirt Insight Community cases work on the same basic premise: be really smart, write up your insights and earn money and reputation. We've got lots more coming from the Insight Community in the next few months, but there's no reason to wait. Join now, be smart and earn some money.

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Will A Psychologist Beat The Computer Science Geeks To The Netflix Prize?

Mike Masnick — Mon, 3 Mar 2008 08:15:00 PST
One of the key things that we expected would be useful when we created the Techdirt Insight Community, was the fact that our customers would be getting very different perspectives from the members of the community, based on an extremely diverse set of backgrounds, knowledge and experience. The idea was that while it's definitely useful to get the insight of someone who's gone through something similar (such as how to best position a product in a new market), sometimes you could gain a lot from someone who took a totally different view on it. It appears that same thing is happening in other areas as well. Wired has a fascinating story about how the various computer science/math geeks have had trouble advancing beyond a certain point in the Netflix challenge (the $1 million prize for improving Netflix's customer suggestion system by 10%), out of nowhere a management consultant with a psychology degree has been zooming up the charts using an entirely different method than the other leaders. The guy believes that all of the others have gotten into a bit of "groupthink," all using the same basic method -- while he's trying to apply some of his psychology background to the question in a way that he believes will work better in the long term. He hasn't yet passed the top teams, but he's been getting close. No matter how well he ends up doing in the end, it highlights, once again, the value of sometimes having someone from a totally different field take a look at the problem you're trying to solve.

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Abundance And Scarcity In The Insight Market

Mike Masnick — Wed, 27 Feb 2008 11:46:36 PST
Last week, after I wrote about some of the theory behind the Insight Community and the Smart Dossiers offering (which is a subset of the Insight Community), someone asked how my writings on economics fit into the equation. It's rather straightforward: In any market there are likely to be various scarcities and various abundances. You should always look at the scarcities as problems that need to be solved and the abundances as the resources you can use to solve those problems.

So, as we were building out Techdirt's business, working with various Fortune 500 companies to better understand various technology trends, we again began to notice an interesting set of scarcities and abundances. On the scarcity side, companies were really hungry for useful and actionable insight about their biggest challenges. At best, they could hire a big analyst firm or a big consulting firm, which would be excessively expensive, and often wouldn't give particularly useful information. In fact, it was a huge risk, since they would only receive a single answer, as if handed down from a wise man on the mountain, with no idea if it was accurate or not. At worst, they could have internal people try to do the analysis, often passing it off to a junior person to handle the work. Again, this would result in a single opinion (often from someone not very experienced) providing an important analysis that was also biased by coming from inside the company, rather than with an outsider's perspective.

At the same time, we were discovering an immense abundance in the ability to find and communicate with smart, knowledgeable passionate experts, many of whom we got to know via their participation on Techdirt itself, or via their own websites and blogs. At first we began to tap that group informally, to help us with the work we were doing with existing clients -- but we realized it was better to formalize the system, which is how we came up with the Insight Community, helping to eliminate the middle man and solve the scarcity (relevant, timely insight) with the abundance (lots of knowledgeable folks). The trick was coming up with a system that allowed the best, most useful insights to bubble to the top. In other words, figuring out not just how to connect companies to smart people, but to make sure that those companies could get the best, most relevant and insightful analysis out of the most qualified folks in that group of experts. To do that, we put in place a competitive system, that allowed experts in the community to compete to show they could provide the best insight. The end result has worked quite well, making it incredibly easy for companies, both big and small, to tap into this network of experts in order to get the best, most relevant insights into the challenges they face, gaining multiple expert opinions -- and doing so at a price the company gets to set.

Of course, while the "name your own price" model works well in some cases, it doesn't work for all. It can sometimes be an impediment for a company that knows they want something specific and isn't sure how much to bid for it. So, to help with those situations, we wanted to focus on common types of cases that the Insight Community was being used for and start to launch more packaged solutions -- the first of which is Smart Dossiers. Many of the customers using the Insight Community, had used it to get a straight analysis of a company. Sometimes of themselves (to get a quick snapshot of multiple outsider expert viewpoints), but more often of other companies they were dealing with: customers, competitors, partners, investments and investors. For example, we had one company use the Insight Community to create detailed "dossiers" on the company's top customer targets, so that its sales people could be better informed while calling on them. Another firm needed a competitive landscape of a new market it was about to enter, and was able to get a bunch of experts to all weigh in on the competitors in just over a week.

So, yes, we are putting into practice the economics that get discussed here all the time. It's all about taking an abundance and helping them "solve" a scarcity that companies desperately are looking for help solving.

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Why Smart Dossiers Matter

Mike Masnick — Tue, 19 Feb 2008 10:15:00 PST
Two weeks ago in New York, we announced our new Smart Dossiers product, that leverages the best members of the Techdirt Insight Community to provide multiple quick, cost effective analytical looks at any company. After launching it, I received an email from a reader asking for some of the thinking behind this product and why we launched it, as he noted that I often break down the business decisions made by other companies, I might as well do so for my own as well.

Fair enough. While obviously, we've been thinking about this quite a bit in designing the product, Kevin Kelly's recent discussion on the problems with bottom-up and top-down content creation models really comes into play here as well. While I'm a huge fan of bottom-up "crowdsource" models, I'll be the first to admit that they're not right for everything. And, while some people have referred to the Insight Community as "crowdsourcing analysis" that's not quite accurate either. Crowdsourcing, bottom-up, wisdom of the crowds models work well for any type of system where you are trying to zero-in on something that appeases a wider audience. Zeroing in on factual information, for example -- which is why Wikipedia works. Or, coming up with a set of stories that will appeal to a specific group, such as how Digg picks news stories. But there are times when you don't want the aggregate views of a large audience, but you want a few viewpoints from those who understand something best. These are cases when you're really looking for insight and analysis, not just data or facts. You want creativity and a spark of something different, but you don't want to be overwhelmed.

At the same time, the traditional means of getting such insight and analysis runs into trouble in that you're betting on the single "wise man on the hill" who you hire to provide that analysis. Long ago, companies realized that relying on just a single viewpoint was dangerous. There's much more to be learned by getting together a small group of very knowledgeable, experienced experts in a space who can weigh in directly based on that experience. By having multiple viewpoints you get to learn to important things beyond just the direct insights each participant generates. You get to see where those experts agree (which can be useful) but also where they disagree, which is where you can often pick up real pieces of wisdom in understanding why two knowledgeable people disagree over the same subject.

In our own experience, it's in those kinds of brainstorms, where you line up what insights people agree on and where they disagree, that produces the most useful output. So, the Smart Dossiers product (and the wider Techdirt Insight Community service itself) is an attempt to formalize that process and allow companies to easily, cost effectively and quickly tap into a diverse group of experts who can help provide those multiple viewpoints and help companies better understand themselves, their competitors, their customers, their partners, their investments and their investors. Since we launched the Techdirt Insight Community, companies have been rating and ranking the experts in the network based on the insights they provide. With the Smart Dossiers offering, some of the best ranked members of the community are guaranteed to take part in the analysis, making sure that you only get top notch analysis. It's not about the wisdom of the crowds, but about getting multiple perspectives from experts who know what they're talking about.

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Techdirt Announcements: Smart Dossiers And Thomson Financial Partnership

Mike Masnick — Wed, 6 Feb 2008 07:00:00 PST
We're in New York City today making a couple of exciting announcements that I wanted to share with everyone. First up, we're launching a new offering as part of the Techdirt Insight Community called Smart Dossiers. As it stands today, it's quite difficult for companies to get good, knowledgeable analysis of companies, both private and public. In the financial sector, you get some coverage from "professional" analysts, but 65% of companies are considered "undercovered" with 35% having no coverage at all (according to a Reuters profile). And, all of those focus solely on the financial side, rather than understanding a company as a potential customer, partner or competitor.

With that in mind, we knew that the members of the Techdirt Insight Community were uniquely qualified to help solve that wide gap in the marketplace, and we've set up the Smart Dossiers offering in response. Companies can now get a SWOT (strengths-weaknesses-opportunities-threats) analysis on any company they'd like, with a minimum number of guaranteed perspectives from qualified, proven experts in the Techdirt Insight Community. Those experts are competing to provide the best possible analysis, continually ensuring quality analysis. Imagine being able to get a detailed, quick, analysis from multiple different people who have experience and knowledge about a specific sector. Actually, there's no need to imagine it, you can do it, right now. There are a variety of Smart Dossier packages available depending on what your company needs, starting as low as $995.

On top of this, we're also thrilled to be announcing a partnership with Thomson Financial, allowing Techdirt to distribute research from the Techdirt Insight Community (including Smart Dossiers) through Thomson's leading platform for providing research and analysis. Thomson offers deep real-time and after market research to thousands of institutional and business customers in 70 countries via professional subscription networks, including First Call and Investext, and we're thrilled to be a part of that system. As Keith Ackerman, Thomson Financial's Global Head of Next Generation Research, said:
"Thomson Financial views the addition of the Techdirt offering into its portfolio of research as significant. Our financial services and corporate clients have increasingly asked for and are spending more for insights, custom surveys and other kinds of research emanating from the use of expert networks and other types of social media. Accordingly, Techdirt and other high quality alternative research firms that feature these capabilities and research outputs are an important part of Thomson Financial's product strategy."
We're announcing both of these at O'Reilly's brand new Money:Tech event in New York, which looks like it will be very exciting. If you happen to be at the event, please make sure you say hello! Otherwise, if you happen to need a quick and useful detailed analysis of any company, check out Smart Dossiers today. Finally, if you think you have what it takes to provide this kind of analysis to companies around the world, please apply today!

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Calling Scottish Business Experts: Techdirt Greenhouse Idea Workshop In Scotland, January 25th

Mike Masnick — Thu, 17 Jan 2008 00:44:00 PST
As some of you know, we've done a few "Techdirt Greenhouse" events over the past few years with tremendously positive feedback. These idea workshops were the basis for our Insight Community offering -- bringing together a group of smart, knowledgeable experts, as well as companies that are facing specific challenges. Participating companies present their challenges in short presentations, followed by breakout sessions where the attendees would help brainstorm solutions and ideas.

I'm heading over to the University of Edinburgh School of Informatics next week to give a series of talks on entrepreneurship, economics and business models. While there, we'll be holding the first Greenhouse of 2008 on Friday, January 25th, as a part of the Edinburgh-Stanford Link. If you're in the area and would like to attend, it's a great chance to meet with other smart folks and entrepreneurs, to network with them, to understand some of the challenges they face and to share your expertise. It's taking place at the Alba Innovation Center and all of the details are here. And, when you do attend, be sure to come over and introduce yourself!

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Reliability Requires Redundancy

Timothy Lee — Mon, 10 Dec 2007 10:32:51 PST
Slate has an interesting column by Jacob Leibenluft that compares the relative reliability of Yahoo! Answers and Wikipedia. He notes that unlike Google Answers, which was shuttered last year, Yahoo's answers site has become quite popular. Google paid its contributors to answer questions, but Yahoo! only offers contributors points that entitle them to ask questions of their own on the site. Unfortunately, even the service's own users acknowledge that Yahoo! Answers isn't very reliable. Often a question will attract a dozen or more answers. Some of them will probably be right, but others will be wrong, and it might be hard to tell which is which. Leibenluft contrasts that to Wikipedia which, while far from perfect, tends to have accurate information the vast majority of the time. He zeroes in on three important characteristics that give Wikipedia the edge. First, whereas Yahoo! Answers lets each user to give his or her own answer, the Wikipedia process is geared toward producing a single article that represents the consensus of all contributors. Second, Wikipedia has a strong norm of citing outside sources when contributors disagree. Usually, when there's a factual disagreement, someone will go out and find a citation in a reliable source to demonstrate the correct answer. Finally, Yahoo! Answers closes a question after about a week, whereas a Wikipedia article is open for editing indefinitely. This is important because Wikipedia articles tend to get more accurate over time, as more and more readers visit them and fix mistakes. It would be interesting for Yahoo! to experiment with a wiki-based format for Yahoo! Answers, where users collaborate on a single collective answer to the question rather than giving a bunch of individual answers. The major difficulty would be that the site's point-based reward system would be difficult to apply, since several users would have contributed to the final answer.
Techdirt's own Insight Community is similar in some ways to the Yahoo! and Google Answer programs. The failure of Google Answers might be a reason for pessimism, but I think there are a few key differences that make TIC more likely to succeed. First, the community is sharply focused on a fast-changing industry where expertise is especially valuable. Second, TIC is focused on providing insight and analysis, not just plain facts. With factual questions, a customer will typically be seeking a single correct answer. But with strategic business questions, there usually isn't one right answer; companies are often interested in hearing about several different approaches, and there can be a lot of value in seeing the arguments that experts marshal for various options. Finally, Techdirt is much more selective about the experts it brings onboard, using experts' blogs and other writings as a way of identifying those who know what they're talking about and can communicate it clearly. That gives the TIC a great signal-to-noise ratio.

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Looking For A Few Big Brains

Michael Ho — Wed, 14 Nov 2007 11:26:00 PST
If you're knowledgeable about technology, business or finance and aren't already a member of the Techdirt Insight Community, then you're missing out on plenty of chances to make serious cash for being smart. We've got a bunch of open cases looking for good analysis and there's plenty of money available to be earned. Just a few of the open cases, for example:

Dow Jones wants to know about social media in the enterprise.

An investment firm wants to know how WiMax's troubles are going to impact the wider technology ecosystem.

Another firm is trying to understand how the subprime mortgage mess is going to impact the technology business.

There are a bunch more along those lines. We're always looking for more smart, insightful people, so if you think you've got something valuable to add, apply to be an expert today. Alternatively, if your company wants to tap into a community of really smart folks, who can provide you with some of the most useful insight and analysis you can get, check out the details and sign up.

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Techdirt In The Interview Hotseat

Mike Masnick — Thu, 1 Nov 2007 11:51:31 PDT
It's apparently interview season, as two separate interviews that were done with me about Techdirt were just published. The first was conducted by Glyn Moody and appears in today's Guardian over in the UK. It covers a variety of things, from the Techdirt Insight Community, to this blog, to the economics I tend to write about. It was a fun interview and it's almost too bad that the limits of newsprint (and time) meant we couldn't go into more depth on some of the subjects.

The second interview was by Michael Banks, for his new book called Blogging Heroes. Banks went out and interviewed a bunch of bloggers to try to find out the history of their blogs, what makes them blog and what advice they have for other bloggers. The publisher is conducting a little marketing experiment as well, where they send each of the bloggers who was interviewed a copy of their own interview to post on their blogs. So you're starting to see a few different chapters available. It's yet another experiment in understanding how free content makes good sense, so I can't resist posting my interview here: One point that unfortunately doesn't come through clearly enough in either interview is how much we owe all the readers around here -- especially those who actively participate in the comments and the Insight Community. This wouldn't be worth doing without all of you. So, a big thank you from those of us at Techdirt!

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An Open Letter To Jeff Bezos: Please Stop Pissing Off People Over Amazon Prime

Mike Masnick — Thu, 25 Oct 2007 09:21:00 PDT
Dear Jeff Bezos,

Back in May, we tried to alert you to a serious customer service problem that your company is facing concerning the way you are marketing Amazon Prime. You have a promotion that offers to let people try the program for a month "for free." What's in the fine print is that at the conclusion of this month, if people do not specifically opt-out, then they will automatically be signed up and charged the yearly fee of $79. I'm sure it's a good deal. While I, personally, do not use Amazon Prime, I have some friends who do and they seem to like it just fine.

However, it's become quite clear that many people are not happy with this program -- and that's because it was never made clear to them that they had to opt-out of the program after trying it for a month. Those people receive credit card statements with a surprise charge for $79 for "AMZ*Prime." Many of the folks who receive this charge clearly do not recognize that it is for Amazon Prime. Instead, they go to Google and do a Google search for "AMZ*Prime". The first result happens to point to the story that I wrote in February of 2005 about the launch of Amazon Prime. In the comments to that post there are a number of people who are venting about how they don't remember signing up for Amazon Prime and are pissed off. Those comments keep coming in.

The real problem, though, is that too many people are doing this Google search and are then blaming us, the nice folks at Techdirt, for charging their credit cards for $79. We have been receiving a regular stream of emails and phone calls from people demanding that we refund them their $79, which we never charged them for in the first place. In the last month, despite our earlier pleas to Amazon, the pace of such complaints has only increased. It has become something of a nuisance. We feel bad for these people, though we don't have the time to respond to them all and point them to your own, quite difficult to find, phone number. I realize that you certainly shouldn't be held responsible for people's inability to understand the difference between a blog post about a program and the company running the program itself. However, is it really necessary to use such a scammy technique to sign up people? If you really are offering something of value (and, clearly, some people believe that you are), why not just let people opt-in to the program, rather than telling them you're giving them something for free and then forcing them to opt-out? I think we'd all be better off. I know it must be great to be able to show all those $79 charges to the folks on Wall Street -- but it would be a lot more convincing if it were from people who actually wanted to give you that money.

Thanks,
Mike Masnick
CEO, Techdirt, Inc.

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If You're So Smart... Why Don't You Prove It (And Make Some Money While You're At It)?

Mike Masnick — Fri, 5 Oct 2007 10:36:40 PDT
It's been a little while since we've spoken about the Techdirt Insight Community service that we launched earlier this year. If you're not familiar with it, you can see a quick two minute video explaining what it is. It's been going great, as the experts in the community have been providing fantastic insight to all sorts of companies worldwide, helping those companies make important strategic decisions, filling in key knowledge gaps and or (in some cases) helping to validate certain ideas and plans. It's been a great way for some really smart folks to get companies to listen to their advice, to find out about the challenges facing companies in their space, to validate their insight... and also to make quite a bit of money for being smart.

Some of the open cases are displayed in a running ticker on the front page of Techdirt.com, but in case you haven't been watching, here are a few that recently opened where top insights can earn between $400 to $600 -- as well as validate your own insights into these areas. If you think you have the expertise to provide valuable insight to the companies presenting these cases, feel free to apply.

Forecasting Trends In Digital Entertainment. Where is this important market heading? How will the economic trends play out? Who will be impacted and how?

How To Index Multimedia Files For Fun And Profit. Help a company design its latest product by giving some advice on the current landscape for digital asset management offerings.

Taking Jajah to the Next Level. Jajah's been getting plenty of attention this week for launching its Jajah buttons allowing any site to easily add a "click-to-call" option -- and for having that very same feature quickly banned on eBay who is apparently still grumpy over the Skype writedown. Now help Jajah continue to improve its product and marketing strategy.

There are a bunch more in the system, with even more on the way, so if you ever felt that companies should be paying your for all your smart ideas, why not prove it?

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