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<channel>
<title>Techdirt. Stories filed under &quot;charity&quot;</title>
<description>Easily digestible tech news...</description>
<link>http://www.techdirt.com/</link>
<language>en-us</language>
<image><title>Techdirt. Stories filed under &quot;charity&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Mon, 10 Dec 2012 17:00:00 PST</pubDate>
<title>DailyDirt: Economic Phenomena, Not Just Theories</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20101025/05073411570/dailydirt-economic-phenomena-not-just-theories.shtml</link>
<guid>http://www.techdirt.com/articles/20101025/05073411570/dailydirt-economic-phenomena-not-just-theories.shtml</guid>
<description><![CDATA[ It's sometimes difficult to verify economic theories in the real world because it can be expensive to "test" really important policies. But as more and more people play increasingly realistic video games with active marketplaces, there may be ways to observe real economic phenomena in virtual economies. Here are just a few interesting observations on the topic of scarcity.

<ul>

<li> <a title="http://terranova.blogs.com/terra_nova/2009/08/virtual-economy-as-real-as-real.html" href="http://bit.ly/UqwAGY">Using 60TB of data from 400,000 Everquest players over 4 years, we can verify some economic behaviors in the virtual world and test economic policy decisions.</a> Maybe these researchers should test out a bunch of virtual "fiscal cliff" scenarios.... [<a href="http://terranova.blogs.com/terra_nova/2009/08/virtual-economy-as-real-as-real.html">url</a>]</li>

<li> <a title="http://www.fastcoexist.com/1679628/the-broken-buy-one-give-one-model-three-ways-to-save-toms-shoes" href="http://bit.ly/VAhMtP">Retailers need to think a bit more about charitable programs that simply donate items to developing markets.</a> Flooding a developing market with free goods isn't the optimal way to encourage market stability and create robust infrastructure. [<a href="http://www.fastcoexist.com/1679628/the-broken-buy-one-give-one-model-three-ways-to-save-toms-shoes">url</a>]</li>

<li> <a title="http://www.freakonomics.com/2010/11/18/freakonomics-radio-could-a-lottery-be-the-answer-to-americas-poor-savings-rate/" href="http://bit.ly/SBIXAk">Prize-Linked Savings (PLS) is a banking scheme to encourage people to save more of their earnings by offering a lottery prize for savings deposits.</a> So instead of lotteries always being a tax on the mathematically challenged, in this system, people can at least earn some interest by gambling. [<a href="http://www.freakonomics.com/2010/11/18/freakonomics-radio-could-a-lottery-be-the-answer-to-americas-poor-savings-rate/">url</a>]</li>

</ul>

If you'd like to read more awesome and interesting stuff, check out this unrelated (but not entirely random!) <a title="http://www.stumbleupon.com/to/stumble/stumblethru:www.techdirt.com" href="http://bit.ly/fagV8c">Techdirt post</a>.<br /><br /><a href="http://www.techdirt.com/articles/20101025/05073411570/dailydirt-economic-phenomena-not-just-theories.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101025/05073411570/dailydirt-economic-phenomena-not-just-theories.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101025/05073411570/dailydirt-economic-phenomena-not-just-theories.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>urls-we-dig-up</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101025/05073411570</wfw:commentRss>
</item>
<item>
<pubDate>Fri, 22 Jun 2012 07:07:00 PDT</pubDate>
<title>Carreon Admits His Original Threat Letter Was A Mistake, But Keeps On Digging Anyway</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120622/00494419424/carreon-admits-his-original-threat-letter-was-mistake-keeps-digging-anyway.shtml</link>
<guid>http://www.techdirt.com/articles/20120622/00494419424/carreon-admits-his-original-threat-letter-was-mistake-keeps-digging-anyway.shtml</guid>
<description><![CDATA[ Another day, and still, Charles Carreon keeps digging.  In case you just woke up from a coma, here are all the earlier posts on <a href="http://www.techdirt.com/blog/?tag=charles+carreon">Carreon</a>.  The latest is both a bizarre semi-backtrack, as well as another case of him feverishly continuing to dig that Carreon Effect hole deeper and deeper.
<br /><br />
The "backtrack" comes to us <a href="http://www.popehat.com/2012/06/21/the-oatmeal-v-funnyjunk-part-vi-the-electronic-frontier-foundation-steps-in/" target="_blank">via Popehat</a>, pointing us to <a href="http://www.thestranger.com/seattle/win-lose-or-draw/Content?oid=13970862" target="_blank">an interview with Carreon</a> in which he admits that the letter he sent to kick off this whole mess... <i><b>was a mistake</b></i>.  Yes.  You read that right:
<blockquote><i>
Ironically, the threat of the first lawsuit [Funnyjunk suing Inman] never materialized. Carreon admits he was misinformed: Before demanding the $20,000, which was based on FunnyJunk's "estimate of advertising losses sustained due to the taint of being accused of engaging in willful copyright infringement," Carreon was told that all Oatmeal comics had been taken off the FunnyJunk site, even though they hadn't. "If I had known... no demand would have gone out," he says.
</i></blockquote>
You would think that, upon realizing this -- that the entire premise of his letter which kicked off this entire thing was wrong -- he would think better off pursuing a separate strategy in response to the backlash for what he now admits was in error.  But, no.  Also, as Ken at Popehat points out, saying these things could be construed as "revealing a confidential attorney-client communication between himself and FunnyJunk in order to make himself look less ridiculous."
<br /><br />
And then he continues to dig, dig, dig, dig dig.
<br /><br />
You see, in another interview (dude gets around), this time with Ars Technica, Carreon 
<a href="http://arstechnica.com/tech-policy/2012/06/the-persecution-of-charles-carreon/2/" target="_blank">trots out his latest bizarre theory of liability for Matthew Inman</a>.  In the lawsuit, he claimed that he thought Inman might keep everything raised above the target goal of $20,000, even though Inman never made any suggestion that was true, and in fact, Inman had said quite clearly (way before Carreon's rampage and lawsuit) that he was going to donate 100% of everything raised to charity.  But Carreon says it doesn't matter:
<blockquote><i>
&#8220;It sounds like he stands to make $180,000,&#8221; Carreon said. &#8220;He&#8217;s the authorized agent of IndieGoGo. I know this shit is hard to put together. That&#8217;s why we hire lawyers, because we read the statute and we take the risk.&#8221; (&#8220;Inman's commitment after the fact is not evidence of his original intention," Carreon clarified later by e-mail).
</i></blockquote>
It should be noted, of course, that it does not appear that Carreon has "hired a lawyer" since he filed the case pro se (representing himself).  The whole "authorized agent of IndieGogo" thing seems to be an astoundingly weak attempt to twist what IndieGoGo does and what Inman did to fit it under the California law on commercial fundraisers.
<br /><br />
But, here's where Carreon goes really far out on a limb.  On the very same post where Inman tells everyone that 100% of the money is going to charity, he also points out that he is going to add some other charities to the list.  Nearly everyone thinks this is a really good thing.  More money going to more charities.  Awesome.  But, no, not to Carreon.  Apparently this is evidence of a nasty "bait &#038; switch"
<blockquote><i>
&#8220;Inman's idea to add two more charities is another act that shows the risk of money being raised for one purpose to be diverted to another. For example, I raise money for an Israeli charity to pay for trips to the Holy Land, but then decide that half the money should go to Palestinian orphans, or more disturbingly, to Hezbollah, which also has a charity wing. It's one more reason why IndieGoGo should not contract with agents like Inman who do not know that &#8216;adding charities&#8217; to a campaign is obviously &#8216;bait and switch&#8217; false advertising.&#8221;
</i></blockquote>
Yeah, because everyone is just so sure that Inman's now going to add two charities that involve speeding up cancer causing agents and killing off bears to counter his original two charities.<br /><br /><a href="http://www.techdirt.com/articles/20120622/00494419424/carreon-admits-his-original-threat-letter-was-mistake-keeps-digging-anyway.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120622/00494419424/carreon-admits-his-original-threat-letter-was-mistake-keeps-digging-anyway.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120622/00494419424/carreon-admits-his-original-threat-letter-was-mistake-keeps-digging-anyway.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>stop-digging,-charles</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120622/00494419424</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 18 Jun 2012 12:08:06 PDT</pubDate>
<title>Carreon's Full Filing Reveals He Donated To Oatmeal Campaign Himself, Plus Other Assorted Nuttiness</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120618/11235319370/carreons-full-filing-reveals-he-donated-to-oatmeal-campaign-himself-plus-other-assorted-nuttiness.shtml</link>
<guid>http://www.techdirt.com/articles/20120618/11235319370/carreons-full-filing-reveals-he-donated-to-oatmeal-campaign-himself-plus-other-assorted-nuttiness.shtml</guid>
<description><![CDATA[ Earlier this morning we wrote about <a href="http://www.techdirt.com/articles/20120618/00025519366/charles-carreon-sues-matthew-inman-charities-hes-raising-money.shtml">Charles Carreon suing Matthew Inman, IndieGoGo, the National Wildlife Federation and the American Cancer Society</a>.  At that time, all anyone had was the summary of the lawsuit as written by Courthouse News Service.  Now, Carreon has posted the filing to his own website (with portions redacted) and the full version is now available via PACER.  I've attached the officially filed version below.  Rather than reveal new theories that we had missed in our original analysis, it would appear that our initial thoughts were dead on.  This case is just <i>begging</i> to be anti-SLAPPed out of existence, in which case Carreon may find himself on the hook for significant legal fees.
<br /><br />
When I was writing about the original case, I went looking through California's regulations on charities, and couldn't find anything that would impact Inman or IndieGoGo and all I came across was <a href="http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&#038;group=17001-18000&#038;file=17510-17510.95" target="_blank">this law</a> from <a href="http://oag.ca.gov/charities/laws" target="_blank">this page</a> on the California Attorney's General website.  But I couldn't see how that specifically applied to Inman or IndieGoGo, since it seemed to be focused (a) on charities themselves or (b) on professional fundraisers (i.e., people hired to fundraise on a charity's behalf).  It did not seem to apply to people who just tried to raise money which they promised to donate to a charity.  However, that is the law that Carreon is relying on.  Carreon seems to try to twist the definition of a "commercial fundraiser" to make it apply to Inman and IndieGoGo, but it's a pretty massive stretch.  Inman isn't doing this "for compensation," so the law doesn't seem to apply to him.  IndieGoGo is just the platform, but isn't doing the soliciting or directly touching the funds.  The law is designed for an entirely different purpose.
<br /><br />
And even if, somehow, a court actually believes that this law applies here, you might wonder how it's possible that Carreon has any standing to sue whatsoever.  The fundraiser has nothing to do with him (it was about Funnyjunk, but remember that Carreon is suing on his own behalf, not Funnyjunk's.).  Carreon appears to just be suing because he's pissed off.  Except, that Carreon thinks he found a loophole.  <b>He donated to the campaign himself in order to create standing</b>:
<blockquote><i>
Plaintiff is a contributor to the Bear Love campaign, and made his contribution with the intent to benefit the purposes of the NWF and the ACS. Plaintiff is acting on his own behalf and to protect the rights of all other contributors to the Bear Love campaign to have their reasonable expectation that 100% of the money they contributed would go to a charitable purpose. Plaintiff opposes the payment of any funds collected from the Bear Love campaign to Indiegogo, on the grounds that the contract between Indiegogo and Inman is an illegal contract that violates the Act, and its enforcement may be enjoined. Plaintiff opposes the payment of any funds to Inman because he is not a registered commercial fundraiser, because he failed to enter into a written contract with the Charitable Organization defendants, because the Bear Love campaign utilized false and deceptive statements and insinuations of bestiality on the part of Plaintiff and his client&#8217;s &#8220;mother,&#8221; all of which tends to bring the Charitable Defendants and the institution of public giving into disrepute.
</i></blockquote>
Yeah.  Once again, Carreon contributed to Inman's campaign for what appears to be the sole reason of using that as a way to get standing to sue.  I'm somewhat stunned.
<br /><br />
Also, how can he possibly blame the charities?  Well, Carreon's lawsuit fails in that <i>it never actually states a claim against the charities</i>.  Seriously.  At one point in the explanation of the lawsuit, he does state the following, but never actually includes the charities in any of the actual claims:
<blockquote><i>
Although the Charitable Organization defendants have notified by Plaintiff in writing about the fact that the &#8220;Bear Love&#8221; campaign alleged infra is being conducted by Inman and Indiegogo in violation of the Act, and that the campaign is being conducted in a manner that could cause public disparagement of the Charitable Organization defendants&#8217;s good name and good will, neither the ACS or the NWF have acted to disavow their association with the Bear Love campaign, thus lending their tacit approval to the use of their names to the Bear Love campaign.
</i></blockquote>
Again, just for emphasis, I'll point out that even with this paragraph, Carreon <i>fails</i> to name either charity with any of the <i>actual claims</i> in the lawsuit.  He does include them in part of the claim, by stating that they "have failed to perform their statutory duty to exercise authority over the Bear Love campaign," but still fails to directly assert the claim against them.  Even if he somehow figured out a way to work them into one of the claims, this particular legal theory of not disavowing "their association" with Inman's campaign leading to "tacit approval" is pretty ridiculous as well, and not something I could see standing up in court.
<br /><br />
Meanwhile, Carreon's theory that Inman "disparages the image of charitable fundraising" again seems to stretch all kinds of definitions and understanding of the internet.  Basically, he relies on the fact that Inman likes to mock people he doesn't like.  But that's entirely unrelated to the issues at hand.  Furthermore, despite Inman and Inman's lawyer explaining (in great detail) to Carreon, earlier, that Inman has an ASCII pterodactyl on all pages of The Oatmeal's source code, Carreon spends an inordinate amount of space talking about how awful this is.
<blockquote>
Inman has announced his vindictive response to his real and imagined enemies by posting, within the source code of all of the webpages on his main website, www.theoatmeal.com, the following image and text, depicting himself as a pterodactyl that will &#8220;ptero-you a new asshole.&#8221; A screencapture of the core of the source-code appears as follows:
<center>
<a href="http://imgur.com/pjvuS"><img src="http://i.imgur.com/pjvuS.png" width=500 /></a>
</center>
Following the link to <a href="http://pterodactyl.me" target="_blank">http://pterodactyl.me</a> leads the Internet user to a page on TheOatmeal.com where a video created by Inman and Sarah Donner depicts Inman, in his character as a carnivorous, prehistoric flying reptile that first rips the intestines out of a man's anus, then flogs him with his entrails, then steals a pineapple from a boy, tears his head off, flings it a girl and knocks here head off, then grinds up the girl&#8217;s head up in a wood-chipper, blends it with the pineapple, and drinks the grisly cocktail
</blockquote>
The filing then shows screenshots from the video in question, which we'll just embed here for your viewing pleasure:
<center>
<iframe width="420" height="315" src="http://www.youtube.com/embed/aHpDPuh8A2Q" frameborder="0" allowfullscreen></iframe>
</center>
Carreon tries to claim that these images actually incite Inman's followers into action:
<blockquote><i>
Inman&#8217;s followers are by and large with technologically savvy young people eager to follow the
latest trend, who embrace Inman&#8217;s brutal ideology of &#8220;tearing you a new asshole.&#8221;
</i></blockquote>
Seriously?  Carreon is literally arguing that fans of a silly comic with cartoonishly ridiculous violence leads them to "embrace" this "brutal ideology?"  Carreon really ought to spend more time online.  Carreon repeatedly makes incredibly weak connections between Inman's cartoons, his online persona and the later hatred directed his way, but without any actual evidence.
<br /><br />
Later in the lawsuit, Carreon again claims that Inman's statement that Funnyjunk "stole" images is "false and misleading."  Whether or not that's true, it's irrelevant here.  Funnyjunk is not a plaintiff in the lawsuit.  He also goes off on Inman for "fighting
words, and incitements to commit cybervandalism, none of which are entitled to constitutional
protection."  Neither of those make sense.  It's nearly impossible to see how Inman's cartoons, as sophomoric as they might be, qualify under the standard legal definition of "fighting words" or any kind of incitement to violence.  In fact, Inman has made no references inciting his audience to do <i>anything</i> other than give money to charities (which most people would consider a good thing).
<br /><br />
Moving on... we've got the trademark and publicity rights claim.  As expected, Carreon is asserting that various actions violate the trademark on his name and his publicity rights.  The key is that someone set up a fake Twitter account in his name and tweeted various statements that might make Carreon look silly.  Of course, reading some of the tweets, it seems rather obvious that the account is fake.  For example, one of them talks about "backtracing" Inman's IP -- a rather obvious reference to the famous <a href="http://www.techdirt.com/articles/20100720/01585110288.shtml">ya dun goofed</a> internet meme.  Also, as he had suggested in an interview on Friday, Carreon makes interesting leaps of logic in suggesting that Inman himself may have set up the fake account.
<br /><br />
Then, finally, we have the "inciting and committing cybervandalism in the nature of trespass to chattels, false personation and identity theft."  Here, he claims that the fact that his email address was made public was part of that incitement, claiming that he never made it public:
<blockquote><i>
As noted above, Doe1 or Inman proliferated Plaintiff&#8217;s email address via a fake tweet made by &#8220;@Charles_Carreon.com.&#8221; Plaintiff had not posted the chas@charlescarreon.com email address anywhere on the Internet except where required by law and Internet regulations. (The email address appears on legal papers in PACER filings in cases where required by the rules of this and other U.S. District Courts; however, these filings are viewable only by PACER users. The email address was also used in the Whois registration database for various websites Plaintiff has registered for his benefit, and as by the authorized registrant/agent of various legal clients.) Inman or persons incited by Inman also proliferated the email address and Plaintiff&#8217;s home address on social networking websites, again for the malicious purpose of enabling cybervandalism.
</i></blockquote>
Except... court filings are <i>not</i> only viewable to those with a PACER account.  Filings with the court, if not under seal, are considered public documents and are often available from a variety of sources, including the Internet Archive and other places as well.  Separately, if he didn't use an anonymizer, the whois info that includes his email address is public info.  Furthermore, his address <i>is</i> available elsewhere online as well, including (um...) both the websites for <a href="http://members.calbar.ca.gov/fal/Member/Detail/127139" target="_blank">the State Bar of California</a> and <a href="http://www.osbar.org/members/display.asp?b=934697&#038;s=1&#038;aw=" target="_blank">the State Bar of Oregon</a>.  Oh, and the email address is also clearly stated <i>in</i> the version of the legal filing that Carreon posted to his own website.  While he redacted his email address in the header, he did not within the text of the complaint. In other words, that address was widely available to the public already.
<br /><br />
His second claim of cybervandalism was that someone tried to reset the password on his webhosting account:
<blockquote><i>
On June 13, 2012, at 9:28 p.m., either Inman or one of the persons named as Does 1 &#8211; 100 engaged in the act of trespass to chattels, cracking the password on Plaintiff&#8217;s website at http://www.charlescarreon.com and requesting to reset the password. Fortunately, the intrusion discovered instantly by Plaintiff who was sitting looking at his computer screen when he received an email from the website software system, and was able to retain control of the website by immediately changing the password using the hyperlink in the email.
</i></blockquote>
First of all, merely requesting a reset password is not "cracking the password."  It's requesting a new password, which the user would not be able to act upon unless they had access to Carreon's email (and there is no indication that that happened).  In fact, it appears that the password reset system worked as designed, in that Carreon was warned that someone wanted to reset the password.  And, actually, the fact that Carreon admits to "using the hyperlink in the email" suggests that <i>that</i> could have been the real hack attempt.  You should <i>never</i> change your password using a hyperlink sent to you in an email.  You should <i>always</i> go directly to the site yourself and login and make the change.  Normally, if you receive one of those reset emails and haven't tried to reset your password, you're supposed to <i>ignore it</i> so that the password doesn't get reset.  Clicking on the link and changing a password that way makes one susceptible to phishing attacks.
<br /><br />
Finally, Carreon notes that some idiots online have signed his email account up for various spam emails/newsletters.  If true, that's pretty stupid on whoever signed him up for those kinds of things, and people really shouldn't do that.  But claiming that's "cybervandalism" or anything that can or should be pinned on Inman (again, whose target was Funnyjunk, not Carreon) seems ridiculous in the extreme.<br /><br /><a href="http://www.techdirt.com/articles/20120618/11235319370/carreons-full-filing-reveals-he-donated-to-oatmeal-campaign-himself-plus-other-assorted-nuttiness.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120618/11235319370/carreons-full-filing-reveals-he-donated-to-oatmeal-campaign-himself-plus-other-assorted-nuttiness.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120618/11235319370/carreons-full-filing-reveals-he-donated-to-oatmeal-campaign-himself-plus-other-assorted-nuttiness.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>double-wow</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120618/11235319370</wfw:commentRss>
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<item>
<pubDate>Tue, 6 Dec 2011 13:53:39 PST</pubDate>
<title>PayPal Acts As Grinch Over Money Raised For Charity Using 'Wrong Button'; Finally Bows To Internet Pressure</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20111206/02515216987/paypal-acts-as-grinch-over-money-raised-charity-using-wrong-button-finally-bows-to-internet-pressure.shtml</link>
<guid>http://www.techdirt.com/articles/20111206/02515216987/paypal-acts-as-grinch-over-money-raised-charity-using-wrong-button-finally-bows-to-internet-pressure.shtml</guid>
<description><![CDATA[ PayPal is pretty famous for the fact that almost no one likes it.  It's why we're finally starting to see some alternatives springing up (or getting ready to spring up).  And yet, it still seems to go out of its way to make bad decisions.  The latest, via Consumerist, is that it <a href="http://consumerist.com/2011/12/paypal-rains-on-regretsys-secret-santa-campaign-over-use-of-wrong-button.html" target="_blank">completely shut down a charitable "secret santa" program that regretsy set up</a>, all because the site <a href="http://www.regretsy.com/2011/12/04/fuck-you-paypal/" target="_blank">used the "donate" button</a>, rather than one of its other buttons.  According to PayPal, only registered non-profits are supposed to use the donate button.  Of course, rather than point this out to regretsy, it let a bunch of transactions go through, and was requiring that they all be reversed... though PayPal would keep the transaction fees (of course).  Apparently, in the mind of PayPal, no one but a non-profit ever asked for donations for anything.  Seriously, though, if PayPal has such strict rules for using the donation button, why not, um, make companies prove their status <i>before</i> they can set up a site using the donate button?
<br /><br />
Either way, as can happen when someone in PR finally wakes up to what's happening online, the public response to this Grinch-like effort is that <a href="http://consumerist.com/2011/12/paypal-bows-to-internet-scorn-agrees-to-release-regretsys-funds.html">PayPal has agreed to back down</a>.  Of course, it shouldn't have taken a flood of negative publicity for PayPal to realize that it screwed up here.<br /><br /><a href="http://www.techdirt.com/articles/20111206/02515216987/paypal-acts-as-grinch-over-money-raised-charity-using-wrong-button-finally-bows-to-internet-pressure.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111206/02515216987/paypal-acts-as-grinch-over-money-raised-charity-using-wrong-button-finally-bows-to-internet-pressure.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111206/02515216987/paypal-acts-as-grinch-over-money-raised-charity-using-wrong-button-finally-bows-to-internet-pressure.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>does-anyone-like-paypal?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20111206/02515216987</wfw:commentRss>
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<item>
<pubDate>Fri, 7 Oct 2011 09:00:50 PDT</pubDate>
<title>Microsoft's $844 Million Software Giveaway To Nonprofits: Pure Charity Or Cheap Marketing?</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20111006/09505916234/microsofts-844-million-software-giveaway-to-nonprofits-pure-charity-cheap-marketing.shtml</link>
<guid>http://www.techdirt.com/articles/20111006/09505916234/microsofts-844-million-software-giveaway-to-nonprofits-pure-charity-cheap-marketing.shtml</guid>
<description><![CDATA[ <p><a href="http://www.microsoft.com/investor/reports/ar11/index.html">Microsoft has just released its 2011 Annual Financial Report</a>.  But alongside that document's dry facts about its $69.9 billion turnover, and the operating income of $27.2 billion, <a href="https://twitter.com/#!/Codepope/status/121647767285280769">Dj Walker-Morgan</a> pointed us to a more interesting publication, <a href="http://blogs.technet.com/b/microsoft_blog/archive/2011/10/04/sharing-the-microsoft-2011-citizenship-report.aspx"> Microsoft's 2011 Citizenship Report</a>:
</p><p>
<i><blockquote>We release our Citizenship Report at the same time as our Annual Financial Report to give our broad base of stakeholders a full view of Microsoft&rsquo;s financial and non-financial performance. Corporate responsibility means more than returning value to shareholders &ndash; it means engaging with stakeholders to address our responsibilities in the areas of environmental, social and governance issues. We believe all corporations have, as part of their license to operate, a responsibility to contribute positively to society on a global scale. To quote our company&rsquo;s founder, Bill Gates: "It takes more than great products to make a great company."</blockquote></i>
</p><p>
So let's just take a look at the things Microsoft has been doing to "contribute positively to society on a global scale".  Here's one detail:
</p><p>
<i><blockquote>We have increased corporate charitable giving year-over-year since fiscal year 2008, despite economic challenges. Our employees volunteered more time&mdash;more than 380,000 hours in the U.S. alone. We also contributed more cash and in-kind support to nonprofits&mdash;$949 million globally.</blockquote></i>
</p><p>
That's nearly $1 billion of cash and in-kind support to nonprofits &ndash; a big number.  There's <a href="http://www.microsoft.com/about/corporatecitizenship/en-us/reporting/serving-communities/nonprofits/#doing">a web page devoted to these activities, with this paragraph giving some more information</a>:
</p><p>
<i><blockquote>In FY2011 we donated more than $844 million in software to 46,886 nonprofits in 113 countries/regions.The value of software we have donated globally since 1998 is more than $3.9 billion. The FY2011 value of software donated now includes employee software donations; previous years&rsquo; in-kind giving numbers do not.</blockquote></i>
</p><p>
This means that of the $949 million dollars "contributed" to nonprofits, $844 million -- 88% &ndash; was actually software, presumably Microsoft's, since it's unlikely it went out and bought it from competitors.
</p><p>
What's harder to judge is how much that $844 million worth of software actually <b>cost</b> Microsoft: the specific phrase used is "fair market value".  <a href="http://en.wikipedia.org/wiki/Fair_market_value">This has quite a well-defined meaning in US tax law</a>:
</p><p>
<i><blockquote>The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. </blockquote></i>
</p><p>
Now, I'm not suggesting that the people who put up the web page about Microsoft's contributions to nonprofits were following that definition exactly.  But equally, it seems likely that the gist is the same: it's a kind of rough price that you'd usually find in normal markets selling the products in question.  And those prices are almost certainly well above the cost of manufacturing, especially if the software was delivered online, or if multiple installations were permitted.
</p><p>
So the actual cost to Microsoft of that donated software is likely to be only a small fraction of the $844 million "fair market value" cited.  This inevitably tempers our admiration for Microsoft's ten-figure generosity somewhat.
</p><p>
But there's something else.  Microsoft wasn't just handing out a bunch of any old products: it was giving away mostly Windows and Office, judging by <a href="http://www.microsoft.com/about/corporatecitizenship/en-us/reporting/serving-communities/nonprofits/#doing">a table showing a breakdown by region</a>.  Both of these are well-known for the lock-in effects they produce: once you start installing applications and creating documents with them, it's quite hard to move to a completely different platform like Apple or GNU/Linux.  Most people don't even try.
</p><p>
So these free copies not only cost Microsoft considerably less than the $844 million figure it used to calculate that near-billion dollar total for its corporate brochure, but it wasn't really altruistic at all.  With hundreds of thousands of copies of Windows being distributed (417,030 were supplied for refurbished computers alone),  there is a very high probability that Microsoft will be benefiting financially &ndash; and not just in terms of goodwill -- from upgrades and follow-on sales for many years to come.
</p><p>
Making copies available at zero or very low prices is something that Microsoft has done time and again whenever there was any danger of customers "defecting" to open source. For example, in 2009, Russia planned to deploy free software throughout its education system.  That didn't happen, in part because Microsoft offered to license Windows for $30 a copy (<a href="http://liberatum.ru/news/linux-ne-doekhal-do-shkol">article in Russian</a>.)  It's part of the rough and tumble of the highly-competitive software business.
</p><p>
Still, it's a little rich for a company as profitable as Microsoft to try to dress this up as &ldquo;corporate charitable giving.&rdquo; It's really nothing of the kind: it's marketing, pure and simple, and Microsoft should be big enough to describe it as such.
</p><p>
Follow me @glynmoody on <a href="http://twitter.com/glynmoody">Twitter</a> or <a href="http://identi.ca/glynmoody">identi.ca</a>, and on <a href="https://plus.google.com/100647702320088380533">Google+</a></p><br /><br /><a href="http://www.techdirt.com/articles/20111006/09505916234/microsofts-844-million-software-giveaway-to-nonprofits-pure-charity-cheap-marketing.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111006/09505916234/microsofts-844-million-software-giveaway-to-nonprofits-pure-charity-cheap-marketing.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111006/09505916234/microsofts-844-million-software-giveaway-to-nonprofits-pure-charity-cheap-marketing.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>free-now-pay-later</slash:department>
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<pubDate>Mon, 3 Jan 2011 12:34:20 PST</pubDate>
<title>Why Is A Charity For Abused Kids Suing A Bunch Of Tech Companies For Patent Infringement?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101230/10555012469/why-is-charity-abused-kids-suing-bunch-tech-companies-patent-infringement.shtml</link>
<guid>http://www.techdirt.com/articles/20101230/10555012469/why-is-charity-abused-kids-suing-bunch-tech-companies-patent-infringement.shtml</guid>
<description><![CDATA[ Really not sure what to make of this.  A typical patent trolling type organization named Azure Networks filed <a href="http://dockets.justia.com/docket/texas/txedce/6:2010cv00686/127316/" target="_blank">two</a> separate <a href="http://dockets.justia.com/docket/texas/txedce/6:2010cv00681/127299/" target="_blank">lawsuits</a> right before Christmas, against a bunch of semiconductor companies, including Texas Instruments, Freescale, Atmel, Alereon, Samsung, Synopsis and others.  At first glance, these lawsuits seem pretty typical: filed in Eastern Texas, filed by a small company whose only purpose is to sue, suing a bunch of big tech companies who actually do something.  It meets all the standard checkmarks of these types of lawsuits.
<br /><br />
But some folks have noticed one oddity: named as co-plaintiff along with Azure Networks <a href="http://patent-warrior.blogspot.com/2010/12/rise-of-non-profit-troll-excelsior.html" target="_blank">is a local Texas charity</a>.  The Tri-County Excelsior Foundation is named as a plaintiff, with a note that it is a non-profit corporation that is "a supporting organization" to a charity called Casa of Harrison County.  <a href="https://www.casaofharrisoncounty.org/Home.php" target="_blank">Casa of Harrison County</a> appears to be a perfectly admirable charity -- based in Marshall Texas -- focused on training "community volunteers to be advocates for abused and neglected children in the custody of Child Protective Services."
<br /><br />
So why are they a co-plaintiff in the lawsuit?  That's not clear at all.  I've embedded one of the two lawsuits below.  It says that Tri-County Excelsior Foundation is a plaintiff, but does not explain its relationship to the patent.  The filing does say that Azure has a license on the patent, but does not say from whom.  The patent in question (<a href="http://www.google.com/patents/about?id=Hzx4AAAAEBAJ&#038;dq=7,020,501" target="_blank">7,020,501</a>) lists BBNT Solutions LLC as the assignee, but it's possible that the patent has since been handed off to others.
<br /><br />
I have no idea if the patent is valid or not.  I have no idea if the companies are infringing or not.  But it does seem... odd, to see a non-profit charity supposedly focused on helping abused children, somehow getting involved in a typical patent trolling lawsuit.<br /><br /><a href="http://www.techdirt.com/articles/20101230/10555012469/why-is-charity-abused-kids-suing-bunch-tech-companies-patent-infringement.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101230/10555012469/why-is-charity-abused-kids-suing-bunch-tech-companies-patent-infringement.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101230/10555012469/why-is-charity-abused-kids-suing-bunch-tech-companies-patent-infringement.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>questions-that-need-to-be-asked</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101230/10555012469</wfw:commentRss>
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<item>
<pubDate>Wed, 8 Dec 2010 09:20:13 PST</pubDate>
<title>Breast Cancer Charity Bullying Other Charities Over Trademark</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101207/23213212175/breast-cancer-charity-bullying-other-charities-over-trademark.shtml</link>
<guid>http://www.techdirt.com/articles/20101207/23213212175/breast-cancer-charity-bullying-other-charities-over-trademark.shtml</guid>
<description><![CDATA[ A few months back we had a few submissions over some claims by the "Susan G. Komen for the Cure" operation was being a trademark bully, and threatening other charities that were using the color pink.  SGK is the big name in raising money for breast cancer research, but a new article highlights how it's also <a href="http://www.huffingtonpost.com/2010/12/07/komen-foundation-charities-cure_n_793176.html" target="_blank">spending over a million dollars a year being a trademark bully</a>: specifically going after anyone else who uses the phrase "for the cure" or "for a cure" as part of their own charitable fundraising.  The organization claims that it "needs" to do this to protect its trademark, but as we've pointed out time and time again, that's simply not true.  First, you could argue that raising money for charity is not "use in commerce" and thus not deserving of a trademark.  On top of that, the phrase "for the cure" certainly sounds descriptive, and again perhaps doesn't deserve a trademark
<br /><br />
But, even assuming that the trademark itself is valid, there are all sorts of ways it could deal with other charities using that phrase without acting like a legal bully.  It could simply agree to <i>license</i> the mark at no cost to other legitimate charities.  SGK's claim, of course, is that it doesn't want the phrase to get sullied by unscrupulous organizations, but that doesn't mean it needs to pull out the legal guns when a legitimate charity comes along.  Just let them use the damn phrase, and let everyone help raise money for charity, rather than legal bills.<br /><br /><a href="http://www.techdirt.com/articles/20101207/23213212175/breast-cancer-charity-bullying-other-charities-over-trademark.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101207/23213212175/breast-cancer-charity-bullying-other-charities-over-trademark.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101207/23213212175/breast-cancer-charity-bullying-other-charities-over-trademark.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>for-the-cure</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101207/23213212175</wfw:commentRss>
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<item>
<pubDate>Tue, 26 Oct 2010 01:36:16 PDT</pubDate>
<title>Can Charity Work With A For-Profit Motive?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101012/03283811384/can-charity-work-with-a-for-profit-motive.shtml</link>
<guid>http://www.techdirt.com/articles/20101012/03283811384/can-charity-work-with-a-for-profit-motive.shtml</guid>
<description><![CDATA[ A few weeks back, the always excellent Planet Money podcast played parts of a debate held at the Clinton Global Initiative between famed microfinance guru Muhammad Yunus and successful microfinance entrepreneur Vikram Akula (moderated by Planet Money host Adam Davidson), considering <a href="http://www.npr.org/blogs/money/2010/09/28/130194702/the-tuesday-podcast-what-s-better-for-helping-poor-people----greed-or-charity" target="_blank">whether or not a for-profit microfinance effort can really work</a> in terms of enabling better financial opportunities for the poor.  Yunus argued that a for-profit effort simply <i>cannot</i> do good.  Since it has a profit motive and outside investors, its efforts will always be on transferring money away from the poor to those investors.
<br /><br />
Akula disagreed, strongly, by pointing out that you can align both of their interests, and his company appears to have successfully done so.  In the talk, he gives an example of the fact that they only lend money to women and they charge well-below market interest rates.  He also notes that, unlike most banks, they don't pay those in charge of lending the money based on how much money they lend out (or make).  The idea there, is that they want the people there to figure out the <i>right</i> amount that the person needs, rather than creating incentives for them to try to get the person to take more, to make their own numbers look good.
<br /><br />
Now, he argues that, compared to other banks, you could say that his firm, SKS Microfinance, is leaving money on the table, but he doesn't see it that way.  The woman who takes out a small loan and successfully pays it back this time, can come back later, when the timing is appropriate and take out a larger loan, which might never have happened if she had been pushed into a bigger loan earlier, or charged much higher interest rates.
<br /><br />
And, while no one specifically says it in the podcast, this is a much bigger point than Yunnus seems to recognize.  There are two factors that Yunnus doesn't seem to consider in condemning all for-profit microfinance efforts: (1) this is a non-zero sum game and (2) this is a multi-round game (i.e., there's a long-term strategy horizon).  Yunnus is right that for-profit charities probably can't work in a situation that is a zero sum game, or in which the time horizon is very short, such that there are unlikely to be repeat customers.  But, just taking a straightforward game theory look at what Akula and SKS are seeing, they can increase the overall pie more efficiently in a for-profit setup.  It's not "taking away" from the poor.  It's expanding the overall economic pie for everyone, including investors, and part of the way that's done is by focusing on building strong relationships with those using the service.  That means, the temptation to screw them over is tempered by the incentives to be fair to encourage that long-term relationship that pays off (for everyone) over the life of the relationship.
<br /><br />
I have to admit that I was a bit disappointed in Yunus, who is so often held up as a financial genius for his microfinance theories.  As the podcast makes clear, his focus involves heavy government involvement and regulation to create a special type of community-owned microfinance bank, which apparently works okay for the community he's in, in Bangladesh, but that doesn't mean that a for-profit microfinance operation can't help the poor quite a lot, while also helping investors.<br /><br /><a href="http://www.techdirt.com/articles/20101012/03283811384/can-charity-work-with-a-for-profit-motive.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101012/03283811384/can-charity-work-with-a-for-profit-motive.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101012/03283811384/can-charity-work-with-a-for-profit-motive.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>long-term-vs.-short-term</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101012/03283811384</wfw:commentRss>
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<pubDate>Fri, 23 Jul 2010 01:30:15 PDT</pubDate>
<title>Copyright Used To Silence 10-Year-Old Girl Raising Money For Charity</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100722/09434710323.shtml</link>
<guid>http://www.techdirt.com/articles/20100722/09434710323.shtml</guid>
<description><![CDATA[ Rob H was the first of a few of you to send in the story of how a music publishing company, Bourne Music Publishers, threatened 10 year-old actress Bethany Hare, for <a href="http://www.msnbc.msn.com/id/38344767" target="_blank">creating a short video of her acting as Charlie Chaplin</a> accompanied by her singing the song <i>Smile</i>, which was the theme for Chaplin's 1936 film <i>Modern Times</i>.  Hale had created the video and <a href="http://www.justgiving.com/smile-bethanyhare" target="_blank">posted it to the charity site JustGiving</a> as part of a campaign to raise money for a hospice.  Modern times indeed.  Of course, when Chaplin wrote the song, he was given a government-granted monopoly that he <i>knew</i> would put his work in the public domain by now.  Until the government and lobbyists extended copyright again and again and again.
<br><br>
Either way, Bourne Music Publishers apparently doesn't care much for charity.  It demanded $2,000, plus another $200 every time she performed the song.  That certainly would take away from the hospice that she was trying to raise money for, so now her Chaplin appreciation film is a Chaplin-style silent film instead.<br /><br /><a href="http://www.techdirt.com/articles/20100722/09434710323.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100722/09434710323.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100722/09434710323.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>promoting-progress-all-around</slash:department>
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<pubDate>Wed, 21 Jul 2010 11:16:22 PDT</pubDate>
<title>Pay What You Want Works Much Better With A Charity Component</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/entrepreneurs/articles/20100716/17423610253.shtml</link>
<guid>http://www.techdirt.com/blog/entrepreneurs/articles/20100716/17423610253.shtml</guid>
<description><![CDATA[ We've talked a lot about different types of business models with "pay what you want" being a popular one that comes up often.  I still think there are some problems with it, but there's growing evidence that it can work very well.  When Radiohead got a ton of attention for using it, the band made more from the digital "donations" than any of its previous albums' digital releases -- even though plenty of people still chose to pay nothing, and the average price was a lot lower than standard.  But average price is kind of meaningless when judging the success of such a program.  It's really the net that matters, and on that front, Radiohead did quite well.
<br /><br />
We've seen the general model work elsewhere as well.  A taxi driver <a href="http://www.techdirt.com/articles/20090804/0146015764.shtml">had some success</a> with it, as have many musicians who have used it <a href="http://www.techdirt.com/articles/20090327/1547244281.shtml">with merchandise at shows</a>.  Even Panera Bread is <a href="http://www.techdirt.com/blog/entrepreneurs/articles/20100518/1505489473.shtml">testing it out</a>.  Earlier this year, there was a lot of attention paid to the really, really successful story of the <a href="http://www.techdirt.com/blog/entrepreneurs/articles/20100518/0844299463.shtml">Humble Indie Bundle</a> that did pay what you want for a group of video games.  That had an added component as well.  Some portion of what you paid could be designated to go to specific charities (EFF and Child's Play).
<br /><br />
It seems that the folks behind the Humble Indie Bundle are on to something.
<br /><br />
A fascinating new study has shown that <a href="http://blogs.discovermagazine.com/notrocketscience/2010/07/15/caring-with-cash-or-how-radiohead-could-have-made-more-money/" target="_blank">"pay what you want" offerings seem to maximize the net take for those using it <i>if they include charitable giving</i></a>.  The study was done at an amusement park, where people could buy a photo of themselves on a roller coaster, and four different situations were tested: (1) the standard "pay a fixed price" (2) a straight "pay what you want" (3) fixed price with part of the money going to charity and (4) pay what you want with part of it going to charity.
<br /><br />
What's amazing is that the fourth one was the best one in terms of the net amount to the seller (yes, after giving the portion to charity).  Sales were <i>much higher</i> and the <i>net</i> dollar amount to the seller was much higher than the straight "pay what you want."
<br /><br />
Specifically, when people were asked to pay the flat price of $12.95, only 0.5% did.  The $12.95 price, where half went to charity, barely increased the number of buyers.  Then only 0.57% of people bought, and (obviously) after the charities cut was taken out, the net was way down.  If it was pure "pay what you want," a <b>lot</b> more people bought: 8.4%, but the amount was much, much lower (average: $0.92).  In terms of overall revenue, the gross is up, but the net definitely depends on the cost of the photos.  If there's no marginal cost, then net revenue would go up as well (what Radiohead found).  But in the final scenario, where it was pay what you want, but half went to charity, the overall reaction was the highest.  4.5% bought, and the average price was $5.33.  Even when you take out the half going to charity, the revenue is <i>much, much higher</i>.
<br /><br />
Now, there are a few caveats I can think of here.  The $12.95 price appears to be pretty high.  It's entirely possible that there could be another, lower, price that would do a better job maximizing profits.  Perhaps at $5, the results would be somewhat different.  So I'd definitely like to see more research done with different pricing points.  Separate from that, I also find it... odd, that the yield rate when charity is added to pay what you want seems to be almost half of the pure pay what you want.  Perhaps I'm missing something, but I can't see how that makes much sense.  The "cost" to the user is the same, effectively, and clearly a lot of people value it a lot more.  But nearly half don't value it at all?  That seems... odd.  Perhaps there are some more details that are missing from the summary of the study.
<br /><br />
Overall, though, a fascinating experiment that shows how helping a charity can not just be good for the charity, but can also maximize your own efforts.  Just don't tell that to the financial columnist who thinks <a href="http://www.techdirt.com/articles/20100707/02293110099.shtml">charitable lemonade stands</a> are destroying America.<br /><br /><a href="http://www.techdirt.com/blog/entrepreneurs/articles/20100716/17423610253.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/entrepreneurs/articles/20100716/17423610253.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/entrepreneurs/articles/20100716/17423610253.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>empirical-research</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100716/17423610253</wfw:commentRss>
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<pubDate>Fri, 26 Mar 2010 17:01:34 PDT</pubDate>
<title>Is A Moron In A Hurry Confused Between Plastic Building Blocks And A Youth Empowerment Charity?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100324/1805258707.shtml</link>
<guid>http://www.techdirt.com/articles/20100324/1805258707.shtml</guid>
<description><![CDATA[ Tom Kintop was the first of a few of you to send in the news that LEGO, makers of the plastic bricks -- and rather well known for its <a href="http://www.techdirt.com/articles/20090819/1852525935.shtml">overly aggressive</a> intellectual property enforcement attempts, which often get <a href="http://www.techdirt.com/articles/20081112/1854512813.shtml">shot down</a>  -- has <a href="http://www.startribune.com/local/88972362.html?elr=KArksUUUoDEy3LGDiO7aiU" target="_blank">sued a small non-profit organization in Minneapolis</a> called Project Legos, where the Legos stands for Leadership, Empowerment, Growth, Opportunity, Sustainability.  While both are targeted at children, it's hard to see that the two compete in any way in the same "market."  It's difficult to see how there's any confusion here, or how it does LEGO any good suing a small charitable organization.  They should send over some LEGO bricks and apologize.<br /><br /><a href="http://www.techdirt.com/articles/20100324/1805258707.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100324/1805258707.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100324/1805258707.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>stack-those-children-up</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100324/1805258707</wfw:commentRss>
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<pubDate>Wed, 16 Dec 2009 23:23:00 PST</pubDate>
<title>UK Charities Find Out They Need To Pay Yet Another Music Royalty</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20091211/1555017318.shtml</link>
<guid>http://www.techdirt.com/articles/20091211/1555017318.shtml</guid>
<description><![CDATA[ Just in time for the holiday season, <a href="http://www.techdirt.com/profile.php?u=steved">SteveD</a> alerts us to the news that PPL, Phonographic Performance Limited -- a separate UK licensing group, which collects for performers and producers (unlike PRS, which is for songwriters/record companies) -- is pushing forward with demands for <a href="http://thirdsector.co.uk/news/Article/968885/Fees-playing-music-charity-shops-will-excessive-Association-Charity-Shops-warns/" target="_blank">charity shops to pay up for a license</a> on top of the license they already pay PRS.  In the past, the UK government exempted charities from having to pay the PPL license, but they've now removed that exemption, and like so many music collections societies, PPL didn't bother to consider how it would look to shake down charity shops, and apparently just drove forward with plans.  Nice of them.  This is what happens, of course, when you create the statutory ability to shake down anyone who plays music.  That right just expands more and more, and the musicians and songwriters never have to actually give people a reason to buy: they just sit back and collect.<br /><br /><a href="http://www.techdirt.com/articles/20091211/1555017318.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20091211/1555017318.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20091211/1555017318.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>uncle-scrooge</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20091211/1555017318</wfw:commentRss>
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<pubDate>Wed, 7 Oct 2009 23:48:46 PDT</pubDate>
<title>The First Printed Copy Of SuperFreakonomics Auctioned Off For Charity</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20091007/1009066444.shtml</link>
<guid>http://www.techdirt.com/articles/20091007/1009066444.shtml</guid>
<description><![CDATA[ With the follow-up to <em>Freakonomics</em> coming out, as part of the plan to promote <em>SuperFreakonomics</em>, the books' authors are <a href="http://freakonomics.blogs.nytimes.com/2009/10/06/you-can-own-the-first-printed-copy-of-superfreakonomics-a-charity-auction/">auctioning off the very 1st printed copy</a> on <a href="http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&#038;item=200391473810">eBay</a> for charity.  The winner of the auction gets a signed copy of this book, as well as a verification letter and a limited-edition SuperFreak t-shirt.  Clearly, the economists behind this offer understand the value of scarce goods, and they've tried to increase that value with a couple extra goodies (as well as a matching donation up to $5,000 from Stephen Dubner). But wouldn't it be more interesting to see additional "reasons to buy" around the content, along with typical "freakonomic" analysis of what works and why?  Dubner has already suggested (tongue-in-cheek) that the winner won't suffer from winner's curse, but will there be more practical lessons to be learned from this auction?  How would the results of this charity auction be different if it did a Dutch auction (<a href="http://auction-bot.appspot.com/">like xkcd did recently</a>)?  Auctioning off another copy of the book without the charity aspect would be an interesting test, too.  And are there other scarce items that Stephen Dubner or Steven Levitt could offer for their book sales?<br /><br /><a href="http://www.techdirt.com/articles/20091007/1009066444.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20091007/1009066444.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20091007/1009066444.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>not-so-superfreaky</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20091007/1009066444</wfw:commentRss>
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<pubDate>Wed, 3 Jun 2009 10:16:00 PDT</pubDate>
<title>Some Musicians Using Ticket Scalping To Raise Funds For Charity</title>
<dc:creator>Carlo Longino</dc:creator>
<link>http://www.techdirt.com/articles/20090601/1143485086.shtml</link>
<guid>http://www.techdirt.com/articles/20090601/1143485086.shtml</guid>
<description><![CDATA[ Ticketmaster helped build its consumer-unfriendly reputation even more earlier this year, when news emerged that it was collaborating with some musicians and concert promoters to try and push scalpers aside -- and <a href="http://techdirt.com/articles/20090312/0729224090.shtml">grab</a> their revenues. Scalping's back in the news again this week, but with a slightly different twist: a number of musicians are working with a company called Charity Partners to sell some tickets to their shows at scalper-like prices, then <a href="http://online.wsj.com/wsjgate?subURI=%2Farticle%2FSB124380795391770255-email.html&#038;nonsubURI=%2Farticle_email%2FSB124380795391770255-lMyQjAxMDI5NDAzMTgwMDE3Wj.html">donate the revenues over face value to charity</a>. It's definitely an interesting idea that seeks to do something positive with the excess willingness to pay for certain concert tickets over their face value, rather than let it go to scalpers -- or back into the pockets of the artists and promoters themselves. But will the charity aspect be enough to deflect criticism that this is just another way for musicians to fleece their fans?<br /><br /><a href="http://www.techdirt.com/articles/20090601/1143485086.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090601/1143485086.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090601/1143485086.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>who-needs-tickets</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090601/1143485086</wfw:commentRss>
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<pubDate>Fri, 22 May 2009 12:03:00 PDT</pubDate>
<title>Trent Reznor Using His Fans And Tiers Model To Save A Life</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090522/1053324980.shtml</link>
<guid>http://www.techdirt.com/articles/20090522/1053324980.shtml</guid>
<description><![CDATA[ We've certainly talked a <a href="http://www.techdirt.com/search.php?site=&#038;cx=partner-pub-4050006937094082%3Acx0qff-dnm1&#038;cof=FORID%3A9&#038;ie=ISO-8859-1&#038;q=reznor">lot</a> about the various ways that Trent Reznor has been exploring creative <a href="http://www.techdirt.com/articles/20090201/1408273588.shtml">new business models</a> that center around connecting with fans and giving them a reason to buy, but he's now using the same concepts to try to help save a life.  On Wednesday, he announced a program to get people to <a href="http://store.nin.com/helperic/" target="_new">donate money to help Eric De La Cruz get a heart transplant</a>, whereby people who donate certain amounts to the cause will get to hang out/meet with Reznor and other band members during his ongoing tour involving both Nine Inch Nails and Jane's Addiction (which, by the way, hits Silicon Valley tonight, for those in the area -- though, they're not accepting any more donations for people going to tonight's show).  As with the <i>Ghosts I-IV</i> model, there are different "tiers" of support available. In just two days, he's been able to raise nearly half a million dollars, once again showing the power of having a strong community and trying to do something good with it.  It will be fascinating to see if there's more that can be done along these lines in the future as well -- turning some of these business models into helping out those in need.<br /><br /><a href="http://www.techdirt.com/articles/20090522/1053324980.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090522/1053324980.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090522/1053324980.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>using-it-for-good...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090522/1053324980</wfw:commentRss>
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<pubDate>Fri, 16 May 2008 02:27:58 PDT</pubDate>
<title>Warner Brothers Shuts Down Auction For Children's Cancer Charity</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080515/0341531122.shtml</link>
<guid>http://www.techdirt.com/articles/20080515/0341531122.shtml</guid>
<description><![CDATA[ Reader <b>Jonathan</b> points us to a story that's also made the rounds on <a href="http://www.boingboing.net/2008/05/13/warnerdc-comics-shut.html">Boing Boing</a>.  Basically a blogger who apparently is somewhat well connected in the comic book/superhero world decided to get a bunch of artists he knew together to create comic character-based artwork to auction on eBay with the proceeds being sent to a children's charity who had helped out his own family at one point.  The charity auction was <a href="http://sayitbackwards.blogspot.com/2008/04/bens-charity-art-auction-official.html">announced</a>, a bunch of artists signed up and created superhero-related artwork, and the auctions began on eBay.  At some point, Warner Brothers, who owns the rights to many superhero characters contacted eBay to <a href="http://sayitbackwards.blogspot.com/2008/05/important-charity-auction-update.html">shut down</a> a few of the auctions.  This made the guy pull the rest of the auctions and get <a href="http://sayitbackwards.blogspot.com/2008/05/some-updates-about-warner-bros-thing.html">a bit nervous</a> about whether or not he broke the law.  Oddly, after all of this started getting attention Warner Brothers <a href="http://sayitbackwards.blogspot.com/2008/05/i-heard-from-warner-bros.html">let <i>one</i></a> of the auctions proceed, but didn't respond to a question from the guy about letting the others move forward.  In fact, in an email, Warner Brothers didn't explain its position at all.
<br /><br />
On the whole, the legal issue is a bit murky (and it doesn't sound like anyone's making any legal threats here, so this probably won't go any further).  The artwork may very well have infringed (though there are reasonable arguments for why it was not infringing as well).  However, once again, this does seem like a situation where lawyers jumped ahead of what actually made sense from a business or PR standpoint.  A smart company would have seen this going on and would have figured out a way to embrace it and come out of it looking like a good guy -- perhaps sponsoring the charity auction in some manner or another.  But in shutting down the auctions, Warner Brothers comes off as a big legal bully who doesn't want to help kids with cancer.  One more reason why legal solutions should always be looked at as a last line of defense, rather than an automatic solution.<br /><br /><a href="http://www.techdirt.com/articles/20080515/0341531122.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080515/0341531122.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080515/0341531122.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>nice-of-them</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20080515/0341531122</wfw:commentRss>
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<pubDate>Fri, 2 May 2008 08:30:00 PDT</pubDate>
<title>Recording Industry Funds Charity To Run Its Latest Brainwashing Program</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080430/090922985.shtml</link>
<guid>http://www.techdirt.com/articles/20080430/090922985.shtml</guid>
<description><![CDATA[ We've already seen the entertainment industry put together propaganda <a href="http://www.techdirt.com/articles/20060830/193527.shtml">curriculums</a> for kids about "intellectual property" that are so tilted and one-sided that the kids <a href="http://www.techdirt.com/articles/20031023/1349248.shtml">roll their eyes</a> and challenge many of the statements.  But that's not stopping the industry.  Now it's <a href="http://news.bbc.co.uk/2/hi/technology/7375621.stm" target="_new">funding a children's charity to push out the same propaganda to kids</a>, warning the kids about how awful file sharing is, and how dangerous it is.  Who knew that charities could be funded to promote the obsolete business model of a dying industry?  Somehow I doubt that the charity's discussion will delve into things like "fair use," collaboration, sharing, the promotional aspects of content and artists who embrace file sharing to good results.  I wonder why...<br /><br /><a href="http://www.techdirt.com/articles/20080430/090922985.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080430/090922985.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080430/090922985.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>why-should-a-charity-be-hyping-one-industry's-business-model?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20080430/090922985</wfw:commentRss>
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<pubDate>Fri, 25 Apr 2008 18:16:00 PDT</pubDate>
<title>Louis Vuitton Sues Darfur Fundraiser; Seems Unclear On The Concept Of Trademark</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080425/114126947.shtml</link>
<guid>http://www.techdirt.com/articles/20080425/114126947.shtml</guid>
<description><![CDATA[ An artist named Nadia Plesner recently put together a project to try to raise money for the victims of genocide in Darfur.  As part of the campaign, she created a t-shirt with a drawn image of a Darfur victim "pimped" out to look like Paris Hilton -- that is, carrying a designer handbag and a small dressed up dog.  The entire profits from the t-shirts are going to help the victims.  The handbag drawn in the image is not specifically a Louis Vuitton bag, but the design firm seems to have gone ballistic, <a href="http://torrentfreak.com/louis-vuitton-sues-darfur-fundraiser-for-copyright-infringement-080425/" target="_new">claiming all sorts of intellectual property rights it simply does not possess</a>.  First, it sent a (admittedly friendly) cease-and-desist, which Plesner wrote about on the site, while responding and telling the company that she would not take down the t-shirt or the image.  In response, LV went from friendly to nasty.  It sued, demanding $7,500 for each day she keeps selling the product, $7,500 for each day she displays its original cease-and-desist letter and (my favorite) $7,500 for each day she mentions the name "Louis Vuitton" on her website.
<br /><br />
While, there may be some difference due to the specifics of trademark law in Europe, it's hard to see how this is not overreaching.  This is an entirely non-commercial venture.  All of the profits are given to charity.  The design has some differences from the Louis Vuitton bag, and hardly seems likely to specifically damage the Louis Vuitton brand (the lawsuit will take care of that).  The t-shirts are clearly not competing with Louis Vuitton and there's little reason to have anyone think that Louis Vuitton somehow "endorsed" this effort.  Furthermore, posting the cease-and-desist or even <i>mentioning</i> the name Louis Vuitton simply should not be infringing activities.  I don't know if Europe has the equivalent of the <a href="http://www.techdirt.com/articles/20060330/1829246.shtml">"moron in a hurry"</a> trademark test, but LV gets the "moron in a hurry" award for the week.<br /><br /><a href="http://www.techdirt.com/articles/20080425/114126947.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080425/114126947.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080425/114126947.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>such-fashionable-bullies</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20080425/114126947</wfw:commentRss>
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<pubDate>Mon, 10 Dec 2007 07:14:00 PST</pubDate>
<title>Charity Threatened For Children Singing Without Paying Royalties; History Repeats Itself</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20071210/010636.shtml</link>
<guid>http://www.techdirt.com/articles/20071210/010636.shtml</guid>
<description><![CDATA[ About a decade ago, the American Society of Composers, Authors &#038; Publishers (ASCAP) made news for idiotically <a href="http://archive.southcoasttoday.com/daily/08-96/08-23-96/b02li056.htm">threatening the Girl Scouts</a> for singing songs around campfires without paying licensing fees.  The resulting publicity forced ASCAP to <a href="http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1996/08/23/MN14140.DTL">back down</a>, but gave the group a huge black eye for being copyright bullies.  This story coincided with a growing interest in copyright issues, and many credit the story with generating initial interest from many into copyright policy issues.  You would think that this story would have made its way across the pond to the UK and its Performing Rights Society (PRS), the UK equivalent of ASCAP.  Apparently not.  PRS, who was last seen around here <a href="http://www.techdirt.com/articles/20071005/094552.shtml">badgering</a> a chain of auto mechanics for having its mechanics listen to music so loudly that customers can hear (but without paying for a performance license), is apparently now <a href="http://torrentfreak.com/charity-forced-to-pay-copyright-police-so-kids-can-sing-071209/">demanding royalties from a charity that happens to have children singing carols at a Christmas concert</a>.  Apparently PRS first visited the charity to threaten them over a similar issue to the auto mechanics.  The building has a tea room, and workers in the kitchen apparently had the radio on too loud, leading to a demand for performance royalties from the PRS.  That resulted in further discussions about what other music occurs on the premises, and the PRS's demand for a license for the caroling.  This all seems quite similar to the Girl Scout campfire fiasco, with the added wonders of a Scrooge-like Christmas twist.  Either way, it's yet another example of a dying industry trying to greedily squeeze ever last penny out of every possible place before it dies for good.<br /><br /><a href="http://www.techdirt.com/articles/20071210/010636.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20071210/010636.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20071210/010636.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>public-domain</slash:department>
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