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<item>
<pubDate>Fri, 15 Mar 2013 19:39:00 PDT</pubDate>
<title>No, The Death Of Google Reader Doesn't Mean 'Free' Doesn't Work</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/startups/articles/20130314/13302422325/no-death-google-reader-doesnt-mean-free-doesnt-work.shtml</link>
<guid>http://www.techdirt.com/blog/startups/articles/20130314/13302422325/no-death-google-reader-doesnt-mean-free-doesnt-work.shtml</guid>
<description><![CDATA[ With the imminent death of Google Reader, I've seen a number of people whose opinions I respect quite a bit, say something about how "this shows why paying for software is important," or, alternatively "why free software isn't a good idea."  One of many examples of this is <a href="http://threads2.scripting.com/2013/march/goodbyeGoogleReader" target="_blank">Dave Winer's statement</a>: "Next time, please pay a fair price for the services you depend on. Those have a better chance of surviving the bubbles."  Mike McDerment, CEO of Freshbooks, pointed me to an article he recently wrote about <a href="http://readwrite.com/2013/01/18/why-free-is-bad-businesses-should-be-happy-to-pay-for-key-services" target="_blank">"why free is bad"</a> when it comes to "key" services.  I have a ton of respect for both of these guys, and I understand exactly where they're coming from, but I don't buy it.
<br /><br />
Plenty of "paid" services go out of business as well, and often it's because <i>not enough people pay</i>.  So they shut down.  The end result is the same thing.  Obviously, services need revenue to survive, and sometimes "free" + some other business model (freemium, ads, something else) won't bring in enough revenue -- and sometimes "paid" won't bring in enough revenue.  Neither business model has a "premium" so to speak on being sure to bring in enough revenue.  Each has different benefits and challenges.  I've seen tons of services launch with a "pay" model, only to get a dozen or so customers and have to shut down.  Similarly, there have been free services that have clearly been successful and made lots of money.  And lots of things in between.
<br /><br />
As we've <a href="http://www.techdirt.com/articles/20120813/00081620002/fee-based-twitter-is-no-more-ideologically-pure-than-ad-supported-twitter.shtml">said before</a> there's nothing ideologically "pure" about a fee-based business model, as opposed to one supported through other revenue streams.  If you charge, you're guaranteed to have fewer users.  That can be a good thing, but it can also be a huge challenge.  Furthermore, the suggestion that the providers of free services don't care about their users is not definitively true either.  I'm sure it's true for some services, but I get treated like crap by plenty of fee-based providers as well.  Similarly, free-based providers still need to treat users right, or they go away, and there goes their business model, no matter what it is.
<br /><br />
Simple point: just because Google couldn't make a business out of a free RSS reader, it does not mean that business models that have a free component do not work, since, obviously, much of the rest of Google's business is based on offering stuff for free, and monetizing elsewhere.  And, similarly, just because you have a paid app, it does not mean that enough people will pay to make a viable business out of it.  In both cases, the situations are basically the same: whatever you do, you need to be able to bring in enough revenue, and that usually needs to involve offering a good product with plenty of benefits.  The business model discussion that goes on top of that is interesting, but not defining in the way some people seem to want it to be.<br /><br /><a href="http://www.techdirt.com/blog/startups/articles/20130314/13302422325/no-death-google-reader-doesnt-mean-free-doesnt-work.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/startups/articles/20130314/13302422325/no-death-google-reader-doesnt-mean-free-doesnt-work.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/startups/articles/20130314/13302422325/no-death-google-reader-doesnt-mean-free-doesnt-work.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>lots-of-paid-services-fail-too</slash:department>
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<pubDate>Thu, 7 Mar 2013 17:00:00 PST</pubDate>
<title>DailyDirt: Making The Grade...</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20101209/09010112204/dailydirt-making-grade.shtml</link>
<guid>http://www.techdirt.com/articles/20101209/09010112204/dailydirt-making-grade.shtml</guid>
<description><![CDATA[ Technology can be very useful for helping teachers reach out to more students and for spreading information efficiently among schools. Some grading can be automated, but obviously not all grading can be done with heuristics and strict rules. Here are just a few examples of grading challenges that teachers are already facing that might need some technological improvement. 

<ul>

<li> <a title="http://www.freakonomics.com/2013/02/20/how-to-game-a-grading-curve/" href="http://bit.ly/103CT6g">Grading on a curve can backfire if all of your students scheme to get the same grade: a zero.</a> Grading policies have adapted to account for this boundary condition, so students beware.... [<a href="http://www.freakonomics.com/2013/02/20/how-to-game-a-grading-curve/">url</a>]</li>

<li> <a title="http://www.reuters.com/article/2013/03/03/us-education-database-idUSBRE92204W20130303" href="http://reut.rs/Z8WfIs">Some startups are collecting as much grading data as they can, in hopes of obtaining some of the millions of venture capital directed at the education sector.</a> Now when teachers threaten that students' actions will go on a permanent record, they actually have a database that will back them up. [<a href="http://www.reuters.com/article/2013/03/03/us-education-database-idUSBRE92204W20130303">url</a>]</li>

<li> <a title="http://www.nytimes.com/2013/03/03/technology/new-technologies-aim-to-foil-online-course-cheating.html" href="http://nyti.ms/XRByjY">Massive open online courses (MOOCs) need to watch out for massive cheating schemes.</a> Test proctoring software is getting more sophisticated, but presumably some students are always trying new ways to cheat. [<a href="http://www.nytimes.com/2013/03/03/technology/new-technologies-aim-to-foil-online-course-cheating.html">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> via StumbleUpon.<br /><br /><a href="http://www.techdirt.com/articles/20101209/09010112204/dailydirt-making-grade.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101209/09010112204/dailydirt-making-grade.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101209/09010112204/dailydirt-making-grade.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>urls-we-dig-up</slash:department>
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<pubDate>Wed, 27 Feb 2013 13:19:00 PST</pubDate>
<title>A Merger Challenge Not Worth Rating:  The DOJ's Misguided Suit Against A Paltry Software Merger</title>
<dc:creator>David Balto</dc:creator>
<link>http://www.techdirt.com/articles/20130226/23273122125/merger-challenge-not-worth-rating-dojs-misguided-suit-against-paltry-software-merger.shtml</link>
<guid>http://www.techdirt.com/articles/20130226/23273122125/merger-challenge-not-worth-rating-dojs-misguided-suit-against-paltry-software-merger.shtml</guid>
<description><![CDATA[ <i>The following is a guest post from David Balto, former Federal Trade Commission Policy Director.  Mr. Balto represented SunGard Data Systems in the US v. SunGard case described in this post.</i>
<br /><br />
Antitrust merger enforcement is a unique area of the law.  It requires an assessment of whether a merger carries the potential of significantly harming competition.  Courts are not very good at predicting the future and justifiably are very reluctant to prevent or unwind an acquisition without strong evidence of likely anticompetitive effects.  Appropriately the antitrust enforcers rarely turn to the courts to try to stop business conduct that is typically procompetitive.
<br /><br />
This cautionary approach is particularly necessary in software and other high tech markets.  Antitrust analysis works best in traditional products, such as industrial products, that have existed for years in which the characteristics of products and the dimensions of competition are well defined.  But in software the products are rapidly evolving, demand is ever changing, and the nature of competition can change overnight.  Today's so called dominant firm may find itself an afterthought as the market turns to a whole different set of solutions.  Not surprisingly, in the past decade the two litigated challenges to high tech mergers, Oracle's acquisition of PeopleSoft and SunGard's acquisition of Comdisco, resulted in stunning defeats for the Department of Justice's Antitrust Division.
<br /><br />
That is why many observers were puzzled when the Antitrust Division <a href="https://www.documentcloud.org/documents/608603-doj-complaint.html" target="_blank">sued to unwind the merger</a> between Bazaarvoice, a social software and data analytics company, and PowerReviews, a small provider of online reviews that had <i>less than $12 million</i> in total revenues at the time of the transaction.  (No one can seem to recall anytime the Division has sued to block a merger of a firm with an amount as paltry as $12 million in revenue). The merger involves the exciting software for providing ratings for products on the Internet, a product that did not exist a few years ago.  Although the Division seems to highlight some documents that seem to suggest potential anticompetitive effects, the wooden analysis of the complaint reflects a simple structural view that overlooks the many dimensions of competition and the dynamic nature of the market.  Rather than fully probing the likely competitive effects and dynamism of the online retail industry, the Division describes markets, consumer choices, and entry conditions that do not reflect reality.  As a result the complaint is plagued by internal inconsistencies and fails to recognize the true price constraints that mitigate the potential for any harm the DOJ predicts as a result of this transaction.
<br /><br />
<b>The DOJ Fails to Articulate a Proper Relevant Market</b>
<br /><br />
Antitrust analysis may sound daunting, but it is very straightforward.  The lodestar in any antitrust case is to define the relevant market &#8211; that is to determine what are the products that effectively compete with one another.  In a merger challenge, if the government does not properly define the relevant market then the case is over.  Defining the market can be very challenging, especially in dynamic markets such as software.  Not surprisingly, the government's defeats in challenges to software mergers have typically been because they did not define the relevant market properly.
<br /><br />
The DOJ defines the relevant market as "product ratings and review platforms," or "PRR platforms," and explains that these platforms "collect and display consumer-generated product ratings and reviews online."  It is axiomatic that defining a relevant market establishes the boundary between products that do compete and those that do not, and determines the firms or products that constrain the relevant firm&#8217;s exercise of market power.  <a href="http://www.leagle.com/xmlResult.aspx?xmldoc=20081585539gf3d1046_11579.xml&docbase=CSLWAR3-2007-CURR" target="_blank">As the Ninth Circuit has opined</a>, "A relevant market is identified by considering commodities reasonably interchangeable by consumers for the same purposes. Put another way, the relevant market includes all sellers or producers who have actual or potential ability to deprive each other of significant levels of business."  <a href="http://www.harvardlawreview.org/issues/124/december10/Article_7598.php" target="_blank">As the literature makes clear</a>, if a putative relevant market is too narrow, and does not account for competitive forces that serve as a real price constraint on the parties, then the analysis risks condemning perfectly legitimate and competitive behavior by imputing market power where it does not exist.
<br /><br />
On this count in Bazaarvoice, the DOJ does not get to first base.  The DOJ's alleged PRR platform market is too narrow and falls prey to the mischaracterization of market power risk embodied in the literature.  PRR platforms are one of many social-technological tools that retailers and manufacturers use to communicate with end-user customers.  Bazaarvoice and PowerReviews compete against numerous firms that strive to empower the consumer's voice through social media to "collect, organize, and display consumer-generated product ratings and reviews online."    Manufacturers may use popular network-driven social media tools such as Facebook, Twitter, Google+ and Yelp or more nuanced social media tools such as YouTube, Pinterest, and LinkedIn to give the consumer a voice in online product reviews.  Alternatively, manufacturers and retailers can include social media tools that are similar, but not identical, to consumer reviews such as question-and-answer, and community forums.
<br /><br />
These alternative platforms constrain Bazaarvoice, PowerReviews, and other companies that provide third-party review and aggregating services.  When a retailer or manufacturer considers purchasing services from these companies, they do not look only at these two options, but also at the available outlets for consumer review generation provided by the ever-increasing array of social media platforms.
<br /><br />
In defining markets, the courts rely on a wide variety of evidence including econometric price studies, other pricing evidence, win/loss data, and testimony of customers.  None of this is present in the DOJ complaint.  Instead the DOJ relies largely on the defendant's documents, but this is a thin reed indeed.  Many of these documents are outdated and ignore the realities inherent in this fast-moving industry.  It is debatable whether these documents reflected the true nature of competition at the time they were created.  It is certain, however, that these documents no longer reflect the current state of competition.  For instance, the DOJ twice references an April 2011 email in which a Bazaarvoice executive characterized the nature of the industry and opined that alternatives to Bazaarvoice are "scarce" and "low-quality."  In the intensely rapid changing world of the Internet, documents from 2011 are about as relevant as a floppy disk.  Instead of 1) demonstrating that this was in-fact true in 2011, and 2) reestablishing that this description remains accurate, the DOJ's complaint merely assumes that both are the case.  However, this description does not align with today's online retail industry or its intersection with social media. These are industries highlighted by dynamism, and it would be incorrect to believe that the relationships between PRR platforms and other social media outlets for consumer reviews have remained stagnant.
<br /><br />
<b>Even If One Accepts the DOJ's Relevant Product Market, the DOJ Fails to Recognize the Dynamic Nature of Competition</b>
<br /><br />
As explained above, a product market of PRR platforms is not a proper relevant market for antitrust purposes.  Even assuming <i>arguendo</i> that PRR platforms constitute a proper market, however, the DOJ's complaint fails to discuss adequately the nature of competition within these parameters.
<br /><br />
Two fatal flaws plague the DOJ's analysis.  First, the DOJ fails to offer any explanation for portraying the PRR platform market as consisting of just two meaningful competitors and numerous fringe competitors who offer no real constraint.  The DOJ attempts to justify this portrayal by analyzing the nature of competition between Bazaarvoice and PowerReviews within the "Internet Retailer 500," but it is unclear why the government focuses so closely on this tiny market segment and it is even less clear whether an impact solely on that segment would violate the law.  The DOJ even concedes that the PRR platform industry "can range from simple software solutions a company has developed with internal resources to sophisticated commercial platforms offering a combination of software, moderation services, and data analytics tools."   However, despite this wide range of styles and services, the complaint analyzes only a small segment of the market and suggests that these large sophisticated companies have only two effective alternatives.
<br /><br />
The Division has made this mistake in the past, and it did not end well.  In <a href="http://scholar.google.com/scholar_case?hl=en&as_sdt=2,9&case=6146228610031444552&scilh=0" target="_blank">Oracle</a> the DOJ "failed to prove that there are a significant number of customers (the 'node') who regard Oracle and PeopleSoft as their first and second choices."  Instead, the DOJ tried to make the unilateral effects argument with the unpersuasive facts that it had.  Judge Walker admonished the DOJ, stating the "Plaintiffs' attempt to show localized competition based upon customer and expert testimony was flawed and unreliable. Moreover, plaintiffs' evidence was devoid of any thorough econometric analysis such as diversion ratios showing recapture effects."  (A "diversion ratio" shows how much of one competitor's business will shift to another competitor if there is a price increase.)
<br /><br />
The complaint against Bazaarvoice is equally flawed.  The diversion ratios will simply not tell a story wherein a sizeable portion of all participants in the DOJ's (already flawed) market perceive only Bazaarvoice and PowerReviews as next-best options.  If the evidence of diversion ratios were available, the DOJ would have presented it already.  In fact, this is a consummated merger &#8211; the real-life data should show this effect if it is true.  Instead, the data likely tells a story of widespread, dissimilar, and largely unpredictable cross-elasticity of demand.  It is probably the case that no "node" in the PRR platform industry exists because the dynamic nature and subjective needs of clients dictate that there is no significant captive set of consumers choosing only between Bazaarvoice and PowerReviews.
<br /><br />
Second, the DOJ completely ignores the concept of self-help in the social media consumer reviews industry.  At its core, the products supplied by Bazaarvoice and PowerReviews are based on simple technology.  These companies create software that appears on a retailer's website and enables consumers to provide first-hand product reviews.  The companies also provide differing analytic and syndication services, both of which are a function of nothing more than intelligent use of data.  There is nothing stopping retailers and/or manufacturers from creating the same service and extracting value from the data.  Unsurprisingly, companies often perform some or all of these tasks themselves.  <a href="http://www.amazon.com/" target="_blank">Amazon</a> stands out as a leader in providing consumer review platforms and uses the data to drive marketing and sale decisions.  <a href="http://www.zappos.com/" target="_blank">Zappos</a>, the online shoe and apparel company from Henderson, Nevada provides its own consumer review platform on its website, and uses this information not only to improve sales and marketing, but to provide an added level of consumer care.
<br /><br />
Like the question of the consumer "node," the DOJ has also failed to account for internal solutions as a price constraint.  Once again the DOJ is forgetting an important lesson from a past defeat.  In <a href="http://scholar.google.com/scholar_case?hl=en&as_sdt=2,9&case=6146228610031444552&scilh=0" target="_blank">SunGard</a>, the DOJ tried to block the merger of two firms that provided computer disaster recovery services, which sounded like tremendously sophisticated and complex services.  But the court found that self-help ("internal hotsite solutions") was a perfectly adequate option for many customers.  The DOJ had portrayed the notion of internal hot sites as expensive and difficult to create, and suggested that not enough customers would turn to internal solutions to prevent the merging parties from raising prices.  Judge Huvelle disagreed, and pointed out that, not only did internal solutions exist in some capacity, but that the incentive to create internal solutions would increase alongside any increase in price.  Furthermore, the evidence demonstrated that customers had varying needs, and "any generalizations regarding customer behavior cannot be arrived at with any certainty, since it depends on a host of factors, including the type of equipment a customer must duplicate, the particular circumstances and needs of the customer, and in some cases, the size of the customer's operations."
<br /><br />
The same can be said for customers of social media consumer review -- any attempt to predict the future needs and behaviors of customers is nothing more than generalization and speculation based upon incomplete data, an uncertain technological future, and dynamic and varied customer needs.
<br /><br />
<b>The DOJ Fails to Account Adequately for Entry and Expansion, Both of Which are Likely </b>
<br /><br />
The DOJ asserts that anticompetitive harm resulting from this transaction will not be corrected by additional competitors entering the market or existing participants expanding.  The rationale for this assertion lies primarily in the DOJ's contention that Bazaarvoice's syndication network creates an insurmountable entry barrier.  This statement ignores the fact that PowerReviews entered the market and competed effectively without offering a syndication product on par with Bazaarvoice's. Furthermore, the DOJ makes no attempt to quantify the number of Bazaarvoice customers that take advantage of the syndication offering.  In fact, many manufacturers and retailers choose not to utilize this service, instead preferring to outsource to another vendor or perform the analytics in-house.
<br /><br />
Notwithstanding these factual oversights, the assertion that Bazaarvoice's syndication network is a barrier to entry fails.  The aggregation of data through the creation of consumer reviews is a profitable endeavor, but it is also an easily repeated endeavor.  Bazaarvoice's reviews and sophisticated analysis may make it a better competitor but it does nothing to cement Bazaarvoice as an enduring competitor in the face of an improved service.  Allegations of network effects as barriers to entry are made far too lazily, and the DOJ would have the trier of fact believe that a piece of data can only be captured once, or is a zero-sum game.  This is just not the case.  There is competition for data just as there is competition for any other product.  Finally, as the value of data continues to increase, retailers and manufacturers will have less incentive to continue outsourcing this portion of the business to Bazaarvoice.
<br /><br />
Unsurprisingly, entry is already occurring in this alleged market.  <a href="http://www.reevoo.com/" target="_blank">Reevoo</a> and <a href="https://www.yotpo.com/" target="_blank">Yotpo</a> are new entrants looking to disrupt competition, while <a href="http://www.amazon.com/review/top-reviewers" target="_blank">Amazon</a> and <a href="http://googlecommerce.blogspot.com/2012/11/see-more-relevant-reviews-and-share.html" target="_blank">Google</a> are established market participants looking to grow their profits at the expense of companies like Bazaarvoice.  The DOJ's entire theory of harm is premised on a presumption of stagnancy that runs contrary to the nature of the high-tech and electronic commerce industries.
<br /><br />
<b>Conclusion</b>
<br /><br />
Antitrust enforcement in high tech markets poses special challenges -- to recognize the dynamic fast paced nature of competition, the fluidity of product markets, and the opportunities for new forms of rivalry.  Unfortunately, the complaint in the Bazaarvoice case takes a static approach hinged to a few outdated documents.   Without more it is unlikely a court will take the draconian step of unwinding this merger.<br /><br /><a href="http://www.techdirt.com/articles/20130226/23273122125/merger-challenge-not-worth-rating-dojs-misguided-suit-against-paltry-software-merger.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130226/23273122125/merger-challenge-not-worth-rating-dojs-misguided-suit-against-paltry-software-merger.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130226/23273122125/merger-challenge-not-worth-rating-dojs-misguided-suit-against-paltry-software-merger.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>doj-strikes-again</slash:department>
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<pubDate>Mon, 18 Feb 2013 14:21:13 PST</pubDate>
<title>Python Trademark At Risk In Europe: Python Software Foundation Appeals For Help</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20130218/12004622018/python-trademark-risk-europe-python-software-foundation-appeals-help.shtml</link>
<guid>http://www.techdirt.com/articles/20130218/12004622018/python-trademark-risk-europe-python-software-foundation-appeals-help.shtml</guid>
<description><![CDATA[ <p><a href="http://www.python.org/">The open source programming language Python</a> -- named after the British comedy series "Monty Python" -- became popular in the 1990s, along with two other languages beginning with "P": Perl and PHP.  Later, they formed a crucial part of the famous "LAMP" stack -- the GNU/Linux operating system + Apache Web server + MySQL database + Python/Perl/PHP as scripting languages -- that underpinned many of the most successful startups from this time.
</p><p>
Today, <a href="http://stackoverflow.com/questions/2560310/heavy-usage-of-python-at-google">Python is used by some of the biggest names in computing, including Google</a>, so you might assume things like trademarks were sorted out years ago. But this posting by Van Lindberg, Chairman of the Python Software Foundation, <a href="http://pyfound.blogspot.se/2013/02/python-trademark-at-risk-in-europe-we.html">reveals that's not the case everywhere</a>:

<i><blockquote>There is a company in the UK that is trying to trademark the use of the term "Python" for all software, services, servers... pretty much anything having to do with a computer. Specifically, it is the company that got a hold on the python.co.uk domain 13 years ago. At that time we weren't looking a lot at trademark issues, and so we didn't get that domain.</blockquote></i>

Given the rather unplanned way that free software projects have arisen and grown, it's perhaps not such a surprise that crucial domains and trademarks weren't always applied for in every jurisdiction -- after all, coders just want to code, and open source projects generally don't have any resources to pay someone to handle all the boring legal stuff.  And so it often gets neglected, as here.  Lindberg explains why that wasn't a problem until now:

<i><blockquote>This hasn't been an issue since then because the python.co.uk domain has, for most of its life, just forwarded its traffic on to the parent companies, veber.co.uk and pobox.co.uk. Unfortunately, Veber has decided that they want to start using the name "Python" for their server products.
<br /><br />
We contacted the owners of python.co.uk repeatedly and tried to discuss the matter with them. They blew us off and responded by filing the community trademark application claiming the exclusive right to use "Python" for software, servers, and web services -- everywhere in Europe.</blockquote></i>

That would obviously represent a real problem for the Python language there.  The Python Software Foundation is therefore opposing the community trademark application, and submitting its own.  But to succeed, it needs evidence that it has been using the name for many years, and should therefore be granted the trademark.  Here's what it would like:

<i><blockquote>According to our London counsel, some of the best pieces of evidence we can submit to the European trademark office are official letters from well-known companies "using PYTHON branded software in various member states of the EU" so that we can "obtain independent witness statements from them attesting to the trade origin significance of the PYTHON mark in connection with the software and related goods/services." We also need evidence of use throughout the EU.</blockquote></i>

The post goes on to list a variety of ways in which Python users, particularly those in Europe, can help bolster the Python Software Foundation's case and obtain the trademark in question.  The good news is that communities based around free software like Python are likely to have a huge pool of people willing and able to help in these circumstances by providing evidence that throughout Europe, and for over two decades, "Python" has always meant the free software language.  However, to avoid similar incidents, and similar mad rushes to gather the required evidence, it would probably be a good idea if other open source projects checked that they had registered all the obvious Web sites and trademarks.
</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/20130218/12004622018/python-trademark-risk-europe-python-software-foundation-appeals-help.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130218/12004622018/python-trademark-risk-europe-python-software-foundation-appeals-help.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130218/12004622018/python-trademark-risk-europe-python-software-foundation-appeals-help.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>whoops,-that-was-careless</slash:department>
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<pubDate>Fri, 15 Feb 2013 08:29:32 PST</pubDate>
<title>Did The DOJ Do The Same Thing They Were Prosecuting Aaron Swartz For Doing Decades Ago?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130207/01094821904/did-doj-do-same-thing-they-were-prosecuting-aaron-swartz-doing-decades-ago.shtml</link>
<guid>http://www.techdirt.com/articles/20130207/01094821904/did-doj-do-same-thing-they-were-prosecuting-aaron-swartz-doing-decades-ago.shtml</guid>
<description><![CDATA[ Ben Huh points us to a Wired Magazine article from its very first issue back in 1993 (20 years ago, which makes me feel old, since I had that magazine!) concerning <a href="http://www.wired.com/wired/archive/1.01/inslaw.html" target="_blank">the accusations by software company INSLAW</a> that the Justice Department had made illegal copies of its software, which it then sold to many other countries.  Huh suggests that this is a situation where the DOJ did decades ago <a href="https://twitter.com/benhuh/statuses/299419984092856320" target="_blank">what it was accusing Aaron Swartz</a> of doing more recently.  Actually, it was almost certainly <i>much, much worse</i>.  If you're unfamiliar with the Inslaw case, it's a wild roller coaster ride of government corruption, espionage and coverups spanning many decades.  Oh, and there are even some random accusations of murder thrown in as well, though those get mighty close to pure conspiracy theory territory.  The Wikipedia entry is <a href="http://en.wikipedia.org/wiki/Inslaw" target="_blank">not a bad place to start</a>, though that Wired article is good too.  The only issue is that so much happened after the Wired article as well.
<br /><br />
The story is so complex that you really ought to explore not just the Wikipedia version, but some of its sources, which will take you down quite a rabbit hole (warning: it may take a lot of time).  While there remain some denials of wrongdoing, and there were (along the way) findings that the software in question was actually in the public domain, it seems pretty clear that what the government was doing was significantly more questionable than any action by Swartz.  Swartz was seeking to download a vast trove of academic research.  It has been suggested, though never confirmed, that his intention was to release them to the public (some have argued this might not have been his plan at all, or he might have only released the portion that was in the public domain).  At no point has anyone -- even the Justice Department -- suggested that he sought to profit from the plan.
<br /><br />
That is not true of the accusations that were made against various Justice Department officials, some of whom were accused of getting their hands on an unlicensed copy of Inslaw's PROMIS software and then selling it to other countries, sometimes for personal profit.  Furthermore, accusations were made (and at least one court agreed) that the DOJ then sought to force Inslaw into bankruptcy, forcing it to liquidate, so that it couldn't take them to court.
<br /><br />
I had read about the Inslaw case many years ago, but it's been a while since I've been reminded of it, and I had really forgotten most of the details until recently refreshing my memory.  While it was actually a very, very different kind of case than the Swartz case, it is fairly incredible when you think about just how much the Justice Department itself was able to get away with... and then think of how minor Swartz's own activity was in comparison.  It really does seem like yet another example of the <a href="http://www.techdirt.com/articles/20111003/03305616176/different-treatment-tech-related-law-breaking-depending-whether-not-you-have-power.shtml">high court/low court</a> principle in action.<br /><br /><a href="http://www.techdirt.com/articles/20130207/01094821904/did-doj-do-same-thing-they-were-prosecuting-aaron-swartz-doing-decades-ago.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130207/01094821904/did-doj-do-same-thing-they-were-prosecuting-aaron-swartz-doing-decades-ago.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130207/01094821904/did-doj-do-same-thing-they-were-prosecuting-aaron-swartz-doing-decades-ago.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>low-court,-high-court</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130207/01094821904</wfw:commentRss>
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<pubDate>Thu, 7 Feb 2013 12:44:00 PST</pubDate>
<title>Iceland's MPAA Pirates Software; Tries To Defend Itself On Facebook; Runs Away</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130207/03194721907/icelands-mpaa-pirates-software-tries-to-defend-itself-facebook-runs-away.shtml</link>
<guid>http://www.techdirt.com/articles/20130207/03194721907/icelands-mpaa-pirates-software-tries-to-defend-itself-facebook-runs-away.shtml</guid>
<description><![CDATA[ Via TorrentFreak we learn that SMAIS, the Icelandic equivalent to the MPAA, was recently called out for <a href="http://www.vb.is/frettir/80373/" target="_blank"><i>pirating some software</i></a>.   The software, made by Dutch company NICAM, is apparently used for setting up a labeling/rating system for content including movies, video games and more.  SMAIS agreed to license the software, which it received, but then it failed to make the payments.  Any of them.  At all.  A NICAM exec is quoted as saying:
<blockquote><i>
From the moment the contract was signed, everything went silent. There was no contact between SMAIS and us, unfortunately. We tried to contact them, but it didn't work.
</i></blockquote>
This, as you might imagine, caused a bit of an uproar in Iceland, with people speaking out against SMAIS.  In response, someone there (apparently without very much internet experience) decided the right thing to do would be to set up a Facebook account for SMAIS.  Now, if they could actually discuss the various issues, that might not be a bad idea.  But... that's not what happened.  After being bombarded with critical comments from others, SMAIS <a href="http://torrentfreak.com/anti-piracy-group-quits-facebook-after-4-days-130207/" target="_blank">shut down the Facebook account</a> with a snarky note about how they needed to hire someone to run the account, and also about how they have "lots to learn."  Though, they also claimed that "some freedom fighters think that only some voices have a place on Facebook."    Probably not the right spot for a bit of snarkiness, but perhaps it's not so surprising.<br /><br /><a href="http://www.techdirt.com/articles/20130207/03194721907/icelands-mpaa-pirates-software-tries-to-defend-itself-facebook-runs-away.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130207/03194721907/icelands-mpaa-pirates-software-tries-to-defend-itself-facebook-runs-away.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130207/03194721907/icelands-mpaa-pirates-software-tries-to-defend-itself-facebook-runs-away.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>so-much-for-that-plan</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130207/03194721907</wfw:commentRss>
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<pubDate>Wed, 9 Jan 2013 17:00:00 PST</pubDate>
<title>DailyDirt: Adapting To A TL;DR Future</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20101111/18110611828/dailydirt-adapting-to-tldr-future.shtml</link>
<guid>http://www.techdirt.com/articles/20101111/18110611828/dailydirt-adapting-to-tldr-future.shtml</guid>
<description><![CDATA[ With the ever growing amount of content to read/watch/hear, humans are going to need to figure out much more efficient ways to consume information. Speed reading will only get us so far, and then we're going to have to rely on ways to filter out irrelevant stuff so we can focus more on just the things that we really need to see. Here are just a few early attempts to get computers to help us out with information overload.

<ul>

<li> <a title="http://www.fastcompany.com/3004507/15-year-old-built-app-help-his-high-school-debate-team-it-could-do-much-more" href="http://bit.ly/XkMe8G">Clipped is a software tool that tries to extract key bits of information from long pieces of text.</a> Tanay Tandon, a 15yo kid, created it and also filed a patent for his algorithm.... [<a href="http://www.fastcompany.com/3004507/15-year-old-built-app-help-his-high-school-debate-team-it-could-do-much-more">url</a>]</li>

<li> <a title="http://reviews.cnet.com/software/tldr/4505-3513_7-35567338.html" href="http://cnet.co/VPPDuE">TLDR is a browser plug-in that tries to create short summaries for articles.</a> These algorithms aren't perfect, but then again, neither is human comprehension. [<a href="http://reviews.cnet.com/software/tldr/4505-3513_7-35567338.html">url</a>]</li>

<li> <a title="http://smallbusiness.yahoo.com/advisor/world-s-youngest-vc-funded-entrepreneur-.html" href="http://yhoo.it/WtT6xV">Another teenager wrote news-summarizing software and raised $1 million for it.</a> It was originally called Trimmit, but now it's Summly -- and 16yo Nick D'Alosio is looking for some "serious scientists" to help him improve his algorithms with that VC funding. [<a href="http://smallbusiness.yahoo.com/advisor/world-s-youngest-vc-funded-entrepreneur-.html">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/20101111/18110611828/dailydirt-adapting-to-tldr-future.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101111/18110611828/dailydirt-adapting-to-tldr-future.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101111/18110611828/dailydirt-adapting-to-tldr-future.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>urls-we-dig-up</slash:department>
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<pubDate>Thu, 8 Nov 2012 20:16:52 PST</pubDate>
<title>A Reminder: Lower Prices Can Make You More Money</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/casestudies/articles/20121019/08161820763/reminder-lower-prices-can-make-you-more-money.shtml</link>
<guid>http://www.techdirt.com/blog/casestudies/articles/20121019/08161820763/reminder-lower-prices-can-make-you-more-money.shtml</guid>
<description><![CDATA[ This is certainly not the first time that we've tried to make this point, but it always amazes us how little people understand price elasticity, and the idea that a lower price can make you more money by increasing the quantity sold significantly more than the decrease in price.  Instead, we hear claims by economically illiterate people about how lowering the price "devalues" the work.  Of course, I've never understood how making less money devalues a work in the first place, but to each his own.  Rafe Needleman has yet another story of how <a href="http://blog.evernote.com/opportunitynotes/2012/10/you-cant-make-it-up-in-volume/" target="_blank">lowering your price can make you more money</a>, playing off an <a href="http://news.cnet.com/8301-19882_3-57384178-250/were-not-paying-enough-for-apps/" target="_blank">older story he wrote</a>, in which he was convinced by the developer of the ShareMouse app that people should be paying more, not less, for apps.
<br /><br />
ShareMouse is $25, and Rafe thought it was too expensive, and suggested that the developer would make more money by lowering the price.  But the developer, Gunnar Bartels, pushed back and convinced Rafe otherwise.  First he argued that his product was better than the alternatives.  Second, that lower price would lead to more support costs from less sophisticated users.  And, finally, he pulled out the "developers gotta eat" card -- which doesn't make much sense if you actually can make more money by lowering the price.  In the end, Rafe was convinced that perhaps Bartels had a point.
<br /><br />
Except, now, months later, Bartels did experiment with lowering the price... and all of his arguments and assumptions fell apart.
<blockquote><i>
For kicks, he offered a one-day $10 sale on Sharemouse.
<br /><br />
&#8220;Holy cow!&#8221; Bartels wrote. Translation: He sold more licenses than the elastic pricing model predicted.
<br /><br />
Part of the success of the trial can be attributed to the valuable marketing and promotion that came with the CNET post. Even so, Bartels says the sales figures were &#8220;overwhelming and surprising.&#8221; So he&#8217;s now planning on bifurcating the ShareMouse product line.
</i></blockquote>
As for those concerns about the massive onslaught of stupid support questions? That didn't happen.
<blockquote><i>
Bartels says that the expected downside of selling at the lower price, higher support expenses, has not borne out. &#8220;Maybe our product is so good,&#8221; he says.
</i></blockquote><br /><br /><a href="http://www.techdirt.com/blog/casestudies/articles/20121019/08161820763/reminder-lower-prices-can-make-you-more-money.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20121019/08161820763/reminder-lower-prices-can-make-you-more-money.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20121019/08161820763/reminder-lower-prices-can-make-you-more-money.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hello-price-elasticity</slash:department>
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<pubDate>Mon, 8 Oct 2012 11:46:07 PDT</pubDate>
<title>NY Times Takes On Our Broken Patent System</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121008/03151820635/ny-times-takes-our-broken-patent-system.shtml</link>
<guid>http://www.techdirt.com/articles/20121008/03151820635/ny-times-takes-our-broken-patent-system.shtml</guid>
<description><![CDATA[ Well, this is nice to see.  Charles Duhigg and Steve Lohr at the NY Times have a nice long piece <a href="http://www.nytimes.com/2012/10/08/technology/patent-wars-among-tech-giants-can-stifle-competition.html?_r=2&pagewanted=all&pagewanted=print" target="_blank">highlighting just how broken the patent system is today</a>.  It kicks off with an anecdote of the type of story we hear about <i>all the time</i>: where a startup innovator gets threatened by a patent holder (in this case, not a troll, but a larger company), and the lawsuit effectively kills the startup.  Even though it actually won in court, after spending an astounding $3 million fighting the lawsuit, the company was basically out of money... and was forced to sell itself to the company who had sued it, knowing that it still faced another five patent lawsuits.  That's not a unique story.  The company who sued, Nuance, defended its actions in the articles with this line of pure crap:
<blockquote><i>
&#8220;Our responsibility is to follow the law,&#8221; said Lee Patch, a vice president at Nuance. &#8220;That&#8217;s what we do. It&#8217;s not our fault if some people don&#8217;t like the system.&#8221;
</i></blockquote>
No.  "Following the law" does not include shaking down competitors in your space, taking them to the brink of bankruptcy and then getting them to sell to you at firesale prices.
<br /><br />
Perhaps more interesting in the article is the talk about Apple's awakening on how powerful patents could be used as a weapon against others, all stemming from its legal fight with Creative Technologies over a ridiculously broad patent for a digital music player.  Rather than fight Creative, Apple just <a href="http://www.techdirt.com/articles/20060823/152436.shtml">paid the company</a> $100 million to go away.  At the time, we wrote about how unfortunate it was that the company who succeeded in the market basically had to pay off the company who couldn't compete.  But what we didn't realize was that it also turned Apple into a vociferous patent-hungry beast.  The NY Times report notes that, right after this, Steve Jobs made it clear to his staff that Apple now needed to "patent everything."
<blockquote><i>
Soon, Apple&#8217;s engineers were asked to participate in monthly &#8220;invention disclosure sessions.&#8221; One day, a group of software engineers met with three patent lawyers, according to a former Apple patent lawyer who was at the meeting.
<br /><br />
The first engineer discussed a piece of software that studied users&#8217; preferences as they browsed the Web.
<br /><br />
&#8220;That&#8217;s a patent,&#8221; a lawyer said, scribbling notes.
<br /><br />
Another engineer described a slight modification to a popular application.
<br /><br />
&#8220;That&#8217;s a patent,&#8221; the lawyer said.
<br /><br />
Another engineer mentioned that his team had streamlined some software.
<br /><br />
&#8220;That&#8217;s another one,&#8221; the lawyer said.
<br /><br />
[....] The disclosure session had yielded more than a dozen potential patents when an engineer, an Apple veteran, spoke up. &#8220;I would like to decline to participate,&#8221; he said, according to the lawyer who was at the meeting. The engineer explained that he didn&#8217;t believe companies should be allowed to own basic software concepts.
</i></blockquote>
Unfortunately, very few companies seem willing to take a stand on this, even as many, many engineers feel the way that last engineer feels.  I spend a lot of time with engineers in Silicon Valley, and I have trouble thinking of any who think the patent system is a good thing.
<br /><br />
Apple's former General Counsel, Nancy Heinen, has a good quote in the article highlighting part of the problem:
<blockquote><i>
"Think of the billions of dollars being flushed down the toilet... When patent lawyers become rock stars, it&#8217;s a bad sign for where an industry is heading,."
</i></blockquote>
It's a very bad sign, but there seems to be little appetite by anyone to do anything to fix the wider problem.  And despite Apple's foray into being a massive patent warrior, attacking tons of other companies, it still hasn't occurred to many people just how broken the system remains.   The NY Times piece spends some time looking at <a href="http://www.google.com/patents/US8086604" target="_blank">Patent 8,086,604</a>, an Apple patent issued last year, which many refer to as the Siri patent, as it covers a "universal interface for retrieval of information in a computer system."  Basically, a way to search multiple databases at once.  As a separate <a href="http://www.nytimes.com/interactive/2012/10/07/business/patents.html?smid=tw-share" target="_blank">companion piece</a> to the full article highlights, that patent was rejected 8 times before the examiner was "worn down" and approved it, despite no meaningful changes in the language.
<center>
<a href="http://imgur.com/ypryV"><img src="http://i.imgur.com/ypryV.png" alt="" title="Hosted by imgur.com" /></a>
</center>
See all those red dots?  Those are times the patent got rejected.  See the green dot?  That's when it got approved.  The black dot that follows right after the green dot?  That's when Apple started suing with it.  The NY Times even gets patent examiners to admit that their process is more or less random, quoting one admitting that he doesn't really have enough time to "get it right every time" as well as a former patent examiner who notes:
<blockquote><i>
"If you give the same application to 10 different examiners, you'll get 10 different results..."
</i></blockquote>
That's not a functioning system.  It's the opposite.  It's a lottery... where the "winners" get to take billions of dollars <i>away</i> from actual innovation.  It's becoming a national disgrace.<br /><br /><a href="http://www.techdirt.com/articles/20121008/03151820635/ny-times-takes-our-broken-patent-system.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121008/03151820635/ny-times-takes-our-broken-patent-system.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121008/03151820635/ny-times-takes-our-broken-patent-system.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-a-patent</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121008/03151820635</wfw:commentRss>
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<pubDate>Tue, 14 Aug 2012 17:00:00 PDT</pubDate>
<title>DailyDirt: Tools For The Blind</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20100908/16203510945/dailydirt-tools-blind.shtml</link>
<guid>http://www.techdirt.com/articles/20100908/16203510945/dailydirt-tools-blind.shtml</guid>
<description><![CDATA[ Visually impaired folks have access to more technology than ever before. Despite various <a href="http://www.techdirt.com/articles/20120613/01511919297/apple-steps-into-patent-fight-to-unnecessarily-silence-little-girl.shtml">setbacks</a> that prevent some ingenious innovations, plenty of developers are still working on hardware and software tools to help out people with disabilities. Here are just a few examples of some interesting projects for the blind.

<ul>

<li> <a title="http://blogs.discovermagazine.com/80beats/2011/05/12/crowdsourcing-iphone-app-lets-sighted-people-lend-their-eyes-to-the-blind/" href="http://bit.ly/Rv4j22">An iPhone app called VizWiz helps blind users by letting them take a picture of something that is confusing -- and then crowdsourcing a helpful description to make things clear.</a> This app uses Amazon's Mechanical Turk service to obtain helpful people, and the average turnaround time for a description is 27 seconds. [<a href="http://blogs.discovermagazine.com/80beats/2011/05/12/crowdsourcing-iphone-app-lets-sighted-people-lend-their-eyes-to-the-blind/">url</a>]</li>

<li> <a title="http://diagramcenter.org/development/poet.html" href="http://bit.ly/Nr0syR">The Poet image description tool is open source software that helps to crowdsource image descriptions for digital books.</a> This tool is aimed at textbook illustrations that aren't too helpful for people who can't see them. [<a href="http://diagramcenter.org/development/poet.html">url</a>]</li>

<li> <a title="http://grathio.com/2011/08/meet-the-tacit-project-its-sonar-for-the-blind/" href="http://bit.ly/qUG9uy">The Tacit project is developing a hand-held sonar device with haptic feedback -- a technological take on the white cane.</a> It's still just a prototype device, but so far, users seem to be able to use it fairly quickly without much training. [<a href="http://grathio.com/2011/08/meet-the-tacit-project-its-sonar-for-the-blind/">url</a>]</li>

<li> <a title="http://news.yahoo.com/blogs/technology-blog/haptic-shoes-could-help-blind-navigate-cane-free-223947138.html" href="http://yhoo.it/Od3ADz">Haptic shoes could help people navigate by vibrating different parts of the shoe to tell the wearer if there are obstacles ahead.</a> These shoes, like the Tacit project's handheld, are based on open Arduino hardware -- allowing other developers to contribute improvements and build upon existing tools. [<a href="http://news.yahoo.com/blogs/technology-blog/haptic-shoes-could-help-blind-navigate-cane-free-223947138.html">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/20100908/16203510945/dailydirt-tools-blind.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100908/16203510945/dailydirt-tools-blind.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100908/16203510945/dailydirt-tools-blind.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>urls-we-dig-up</slash:department>
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<pubDate>Wed, 1 Aug 2012 16:19:52 PDT</pubDate>
<title>The Economist Shreds BSA Cloud Credentials Piracy Numbers</title>
<dc:creator>Timothy Geigner</dc:creator>
<link>http://www.techdirt.com/articles/20120730/07002919878/economist-shreds-bsa-cloud-credentials-piracy-numbers.shtml</link>
<guid>http://www.techdirt.com/articles/20120730/07002919878/economist-shreds-bsa-cloud-credentials-piracy-numbers.shtml</guid>
<description><![CDATA[ If my time at Techdirt has taught me anything, it&#39;s that anti-piracy groups will <a href="http://www.techdirt.com/articles/20120515/15081718930/bogus-stats-again-bsa-puts-out-its-yearly-propaganda-about-software-piracy.shtml">pull</a> more <a href="http://www.techdirt.com/articles/20110316/02390613520/questionable-piracy-study-found-details-show-its-even-more-ridiculous-than-expected.shtml">numbers</a> out of their collective behinds than The Count from Sesame Street. It&#39;s a strange tactic, if only because once they are caught cow-pooping their own figures it seems to indicate that the problem is not nearly what they&#39;re claiming and therefore their response and policy recommendations no longer worth considering. Unfortunately, many members of the esteemed 4th Branch are inclined to <a href="http://www.techdirt.com/articles/20120517/07382818953/as-usual-media-outlets-mindlessly-parrot-bsa-press-releases-with-zero-scrutiny.shtml">simply parrot </a>these fudged stats and report them as news.
<br /><br />
Fortunately, The Economist is willing to call out the BS the BSA put out about <a href="http://www.economist.com/blogs/graphicdetail/2012/07/online-software-piracy?fsrc=scn/tw/te/bl/headintheclouds">the scary uber-dangers of cloud piracy </a>(ooooooooh!).
<br /><br />
Let&#39;s start with the BSA claims, shall we? Did you realize that 30% of people in wealthy nations and 45% of people in less-wealthy nations "have a liklihood of sharing log-in credentials for paid [cloud] services?" That&#39;s the conclusion drawn by the BSA&#39;s latest study. And if that seems like a lofty number to you, it may be because it&#39;s utter bullshit.
<br /><br />
The Economist begins by correcting the BSA&#39;s pretend numbers:
<blockquote>
<i>"The percentages come from a question in which people were asked if they had ever shared their log-in details for paid services. Some 15% of people in rich countries and 34% in poor countries said they had for personal use. For business use, it was 30% and 45% respectively...Moreover the respondents were only those who had paid for cloud services, which was a fraction of users. Cloud services are generally based on a &ldquo;freemium&rdquo; model, whereby basic use costs&nbsp;nothing and a premium version is paid for. According to the BSA&#39;s own data, only half of computer users tap cloud services, of which only one-third use it for business, of which two-thirds pay. Of the small subset that remain, the minority share log-ins.&nbsp;This changes things considerably. If the BSA figures were adjusted for all this, the potential piracy figures could be as low as between 2% and 6% of users&mdash;as much as 20 times less than the group claims. (The BSA&#39;s data is <a href="http://www.bsa.org/~/media/Files/Policy/SoftwareInnovation/cloud/BSAIpsosGlobalCloudSurveyTopline.ashx" target="_blank"><font color="#08526d">online here</font></a>.)"</i>
</blockquote>
In other words, through the magic of pretending like only a small subset of data is the <i>entire </i>data, the BSA has magically turned the number two into the number thirty. This would be laudable if those numbers were fish, the readers were hungry, and the BSA was trying to claim it had perfected what I lovingly refer to as "Jesus&#39; Fish Fry Miracle", but they aren&#39;t, dear readers. No, they&#39;re going to policy makers with this nonsense.
<br /><br />
And that isn&#39;t even the end of the story. The piece also points out that the BSA&#39;s survey failed to ask what might just be an important question: does sharing log-in credentials with a friend violate that service&#39;s TOS? If it doesn&#39;t, that isn&#39;t piracy. But the BSA doesn&#39;t bother to ask that question because they don&#39;t care, they&#39;re just looking for numbers that support their conclusions, here.
<br /><br />
The article then points out a couple of other ommissions on the BSA&#39;s part:
<blockquote>
<p jquery1343737089193="267">
<i>"There are other anomalies. The BSA only considered PC use, when many people use cloud services over tablets and mobile phones, especially in poor places. And the survey, of 14,702 people in 33 countries, presumes to speak with confidence about the &ldquo;developing&rdquo; world but not a single African country is represented&mdash;an odd omission, since it is a fast growing market."</i>
</p></blockquote>
<p jquery1343737089193="267">
In short, these BSA claims are a "study" in the same way that snake-handling is a "religion": it isn&#39;t.
</p><br /><br /><a href="http://www.techdirt.com/articles/20120730/07002919878/economist-shreds-bsa-cloud-credentials-piracy-numbers.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120730/07002919878/economist-shreds-bsa-cloud-credentials-piracy-numbers.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120730/07002919878/economist-shreds-bsa-cloud-credentials-piracy-numbers.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>more-bs-from-the-bsa</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120730/07002919878</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 1 Aug 2012 14:05:32 PDT</pubDate>
<title>New Patent Reform Bill Defines Software Patents; Targets Trolls</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120801/00181919902/new-patent-reform-bill-defines-software-patents-targets-trolls.shtml</link>
<guid>http://www.techdirt.com/articles/20120801/00181919902/new-patent-reform-bill-defines-software-patents-targets-trolls.shtml</guid>
<description><![CDATA[ We've discussed the "America Invents Act," a patent reform bill that <a href="https://www.techdirt.com/articles/20110916/12123115983/patent-reform-official-along-with-more-bad-ideas.shtml">passed</a> last year after years of Congressional fighting.  As we (and plenty of others) noted at the time, for all the hyperbole around the bill, it completely ignored nearly every problem with the patent system today, and seemed almost entirely useless.  Our worry, then, was that this would kill off any appetite for Congress to take on the <i>real</i> problems of patents today.  So it's good to see that a <i>new</i> patent bill has been introduced -- by Reps. Peter DeFazio and Jason Chaffetz, with a very, very minor change to patent law: it would allow those sued for hardware or software patents the ability to recover litigation costs if it's determined that the suing patent holder "did not have a reasonable likelihood of succeeding."
<br /><br />
In other words, this is a bill targeted very directly at the pure trolls: the patent holders who sue companies with no real intention of taking a case to court, but rather just to get them to pay a settlement fee to avoid the (expensive) court costs in defending a patent infringement claim (which is quite frequently much more expensive than the settlement options):
<blockquote><i>
Notwithstanding section 285, in an action disputing the validity or alleging the infringement of a computer hardware or software patent, upon making a determination that the party alleging the infringement of the patent did not have a reasonable likelihood of succeeding, the court may award the recovery of full costs to the prevailing party, including reasonable attorney's fees, other than the United States.
</i></blockquote>
But what's much more interesting about this is that it seeks to carve out a specific definition for software patents.  I know that in software circles there's been plenty of talk over the years about the problems of software patents, and many don't believe that software should be patentable at all.  However, as defenders of the patent system like to point out, there's no such "thing" as a "software patent" defined in the law, so it would be difficult to say software isn't subject to patents.  Well... this bill <i>defines</i> software patents:
<blockquote><i>
SOFTWARE PATENT.--The term 'software patent' means a patent that covers--<br />
<blockquote>"(A) any process that could be implemented in a computer regardless of whether a computer is specifically mentioned in the patent; or<br />
"(B) any computer system that is programmed to perform a process described in subparagraph (A).".
</blockquote>
</i></blockquote>
Given the <i>massive</i> fight in previous years over patent reform, I fully expect to see patent system supporters throw a massive hissy fit over this very, very minor change to patent law, but it's so minor that I'm at a loss as to how they'll have any compelling argument.  The only reason I can think to be against the changes here is if you're in the business of abusing the patent system to shake down innovators.  I actually think that supporters of the patent system, such as pharma companies, should support this kind of change too.  If the patent system can successfully slice off the problems associated with software patents, it means that there will be less pressure for massive patent system changes.
<br /><br />
Of course, if you want <i>real</i> patent reform that takes on the larger issues that impact all sorts of areas (beyond just software), we've made clear <a href="http://www.techdirt.com/articles/20120712/18322919680/judge-posner-mission-to-fix-patents-we-have-some-suggestions.shtml">our suggestions</a> -- though there doesn't seem to be any appetite in Congress to make such major changes in the near future.<br /><br /><a href="http://www.techdirt.com/articles/20120801/00181919902/new-patent-reform-bill-defines-software-patents-targets-trolls.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120801/00181919902/new-patent-reform-bill-defines-software-patents-targets-trolls.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120801/00181919902/new-patent-reform-bill-defines-software-patents-targets-trolls.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>well-that's-interesting...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120801/00181919902</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 23 Jul 2012 14:25:00 PDT</pubDate>
<title>Should Software Created By The Federal Gov't Be Open Source Licensed... Or Public Domain?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120723/12181319800/should-software-created-federal-govt-be-open-source-licensed-public-domain.shtml</link>
<guid>http://www.techdirt.com/articles/20120723/12181319800/should-software-created-federal-govt-be-open-source-licensed-public-domain.shtml</guid>
<description><![CDATA[ <a href="https://twitter.com/anildash/status/227468571435995137" target="_blank">Anil Dash</a> recently alerted me to a <a href="https://petitions.whitehouse.gov/petition/maximize-public-benefit-federal-technology-sharing-government-developed-software-under-open-source/6n5ZBBwf?utm_source=wh.gov&#038;utm_medium=shorturl&#038;utm_campaign=shorturl" target="_blank">White House petition to get "government-developed software" under an open source license</a> for the sake of allowing others to build on it and approve it.
<blockquote><i>
Top Three Reasons to Mandate Open Sourcing of Custom Federal Software:
<br /><br />
Openness: Open Sourcing ensures basic fairness and transparency by making software and related artifacts available to the citizens who provided funding, consistent with the President&#8217;s 2009 declaration that &#8220;Information maintained by the Federal Government is a national asset.&#8221;
<br /><br />
Economic Multiplier: Making Provides an economic stimulus by serving as the raw material that supports a competitive software development and services industry.
<br /><br />
Supports the Federal &#8220;Shared First&#8221; Agenda: Maximizes value to the government by significantly increasing reuse and collaborative development between federal agencies and the private sector, consistent with the current Office of Management and Budget (OMB) &#8220;Shared First&#8221; initiative.
</i></blockquote>
While I certainly share the sentiment expressed in those reasons, I got into a bit of a debate on Twitter about this, because <b>existing law</b> (i.e., <a href="http://www.law.cornell.edu/uscode/text/17/105" target="_blank">17 USC 105</a>) <i>already says</i> that "Copyright protection under this title is not available for any work of the United States Government."  In other words, anything created by the US government is already public domain.  Of course, public domain and open source are two different things -- but if something is public domain, it could preclude the ability to then slap a license on it, since those licenses are effectively built off of copyright, and claim specific <i>limitations</i>, which the government might not be able to actually claim over the software.  Of course, they don't always seem to follow this, as we noted recently in our post about the <a href="http://www.techdirt.com/articles/20120717/16542919736/senate-not-concerned-about-how-often-nsa-spies-americans-very-concerned-that-it-built-open-source-software-to-do-so.shtml">NSA open sourcing</a> its database technology, Accumulo.
<br /><br />
The flip side, of course, is that even if something is public domain, the government could still keep it a secret -- <a href="http://www.techdirt.com/articles/20120717/00381219722/resolution-introduced-to-make-public-domain-congressional-research-finally-accessible-to-public.shtml">as is the case</a> with many Congressional Research Service (CRS) reports.  So you can see the argument for pushing for an open source license, rather than just an admission of public domainness.  Furthermore, as <a href="https://twitter.com/amac/statuses/227473733906993152" target="_blank">amac</a> helpfully pointed out, there are significant exceptions to the rules saying the feds can't copyright (for example, contractors or just those funded by the government <i>can</i> copyright their works and then even assign them to the federal government).  Furthermore, it may only be seen as public domain in the US, rather than elsewhere.
<br /><br />
And, on top of that, Dash made a reasonable point that his focus is on <a href="https://twitter.com/anildash/statuses/227476701599391744" target="_blank">advocating pragmatism</a> in dealing with this -- and he believes that pushing for open source licenses is, perhaps the most pragmatic.
<br /><br />
I don't disagree with Dash, but I fear the idea of setting up the belief that the federal government needs to set a particular license for a work to be useful to the public to build on.  It only increases the idea that public domain works can be "owned" and limited in ways that is simply not true.  I would think that a much more useful solution is a two-fold one: <b>first</b> an admission that government-created software is, in fact, public domain and <b>second</b>, a <i>policy</i> decision and statement that not only will such works be public domain, but, <i>as a matter of standard procedure</i>,  that the federal government will <i>also</i> release the code for others to build on with no particular limitations and <i>with</i> encouragement to then share the results in kind.<br /><br /><a href="http://www.techdirt.com/articles/20120723/12181319800/should-software-created-federal-govt-be-open-source-licensed-public-domain.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120723/12181319800/should-software-created-federal-govt-be-open-source-licensed-public-domain.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120723/12181319800/should-software-created-federal-govt-be-open-source-licensed-public-domain.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>debate-time</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120723/12181319800</wfw:commentRss>
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<item>
<pubDate>Wed, 25 Apr 2012 14:03:00 PDT</pubDate>
<title>Oracle/Google Case Shows Just How Totally Pointless It Is To Have Patents On Software</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120424/00411918621/oraclegoogle-case-shows-just-how-totally-pointless-it-is-to-have-patents-software.shtml</link>
<guid>http://www.techdirt.com/articles/20120424/00411918621/oraclegoogle-case-shows-just-how-totally-pointless-it-is-to-have-patents-software.shtml</guid>
<description><![CDATA[ Julie Samuels has a fantastic piece over at Wired using the Oracle v. Google case to <a href="http://www.wired.com/wiredenterprise/2012/04/opinion-samuels-google-oracle/" target="_blank">explain why patents simply don't make any sense in the software world</a>:
<blockquote><i>
For starters, software often does not require the type of heavy investment that should result in a 20-year monopoly. Instead of expensive laboratories or years of testing for FDA approval, for example, you often just need a coder and a computer. Even complex programs don&#8217;t require 20 years of exclusivity to recoup their investment. Software patents are often not even necessary for successful businesses: Facebook and, yes, Google &#8212; never relied on software patents to grow their early businesses.
<br /><br />
Software patents are also notoriously vague and difficult to understand, making it impossible for small inventors to navigate the system without expensive legal help. And that brings us to the most dangerous aspect of software patents: litigation.
<br /><br />
It turns out that software patents are nearly <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1868979">five times more likely</a> to be the subject of litigation as other patents. In fact, lawsuits surrounding software patents have <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1868979">more than tripled</a> since 1999, and they have become part of the price of doing business in America. Take Spotify. After realizing much success in Europe, Spotify launched its U.S. product in July, and just weeks later it found itself facing a patent suit.
</i></blockquote>
Of course, tons of software developers recognize this implicitly.  I know an awful lot of software developers in Silicon Valley.  I can't think of a single one who thinks patents are a good thing or even remotely useful (and this includes many developers who <i>have</i> patents).  In development circles, it seems that nearly everyone thinks patents are a waste of time and money.  And that's because software doesn't work the way that the patent system envisions.
<blockquote><i>
Perhaps most troubling, the patent system fails to recognize how people create and use technology. Software is fundamentally situated as a building-block technology. You write some code, and then I improve upon it &#8212; something the open source community has figured out. Google&#8217;s use of Java in its Android OS also demonstrates how innovators create, by making its own product and and incorporating some elements of the Java language (which, incidentally, Java&#8217;s creators have a history of supporting). And when those two come together, it results in an incredibly popular product, here the Android OS.
</i></blockquote>
It's the difference between an idea and actually bringing that idea to market.  That difference is always ignored or underestimated by patent lawyers -- but developers know the difference.  The patent system wasn't designed by software developers, though.  And it shows.<br /><br /><a href="http://www.techdirt.com/articles/20120424/00411918621/oraclegoogle-case-shows-just-how-totally-pointless-it-is-to-have-patents-software.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120424/00411918621/oraclegoogle-case-shows-just-how-totally-pointless-it-is-to-have-patents-software.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120424/00411918621/oraclegoogle-case-shows-just-how-totally-pointless-it-is-to-have-patents-software.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it's-now-how-people-code</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120424/00411918621</wfw:commentRss>
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<item>
<pubDate>Wed, 11 Apr 2012 14:40:00 PDT</pubDate>
<title>Empirical Evidence Of Just How Much Patent Trolling Hinders Innovation</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20120409/04424118424/empirical-evidence-just-how-much-patent-trolling-hinders-innovation.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20120409/04424118424/empirical-evidence-just-how-much-patent-trolling-hinders-innovation.shtml</guid>
<description><![CDATA[ Over at Slate, Ray Fisman has an excellent article <a href="http://www.slate.com/articles/business/the_dismal_science/2012/04/patent_trolls_how_they_stifle_innovation_.single.html" target="_blank">discussing some recent research on how patent trolling hinders innovation</a>.  Much of the story focuses on the research of Catherine Tucker at MIT, which looked specifically at <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1976593" target="_blank">patent trolling in medical imaging</a>, and presents incredibly compelling evidence of just how massively innovation is hindered in that space, thanks mainly to patent trolling by famed patent trolling giant, Acacia.  To account for other possibilities, she compared both medical imaging storage and medical text storage systems.  Both types of software are similarly complex, and many of the first sued produce both kinds of software -- but the patent lawsuit here only impacted the <i>imaging</i> side of the business.  But the results were clear:
<center>
<a href="http://imgur.com/eGAZc"><img src="http://i.imgur.com/eGAZc.png" width=450 /></a>
</center>
Basically, the companies that got sued started selling a lot less product on the imaging side -- but remained about equal on textual data storage.  The same was not seen for those who were not sued.  To account for the idea that this might have been due to a sudden drop in demand, she <i>also</i> researched the number of RFPs (requests for proposal) that were sent out for both medical imaging storage systems and textual data storage systems -- and saw both continue to increase at pretty massive rates.  In other words, demand remained quite high (and growing) even as sales massively dropped.
<br /><br />
So why the sharp drop?  Basically, the companies that were sued <b>stopped innovating</b>.  As Fisman summarizes:
<blockquote><i>
Why the slowdown in sales? Imagine what would happen to iPhone sales if Apple&#8217;s last product was its 3G phone introduced in 2009: Android-based devices would be running away with the market. Tucker claims that at least part of the reason imaging software sales were slowed by the Acacia suit is that R&#038;D at the affected companies went into a deep freeze. <b>In the two years following the suit, none of the defendants came out with a single new version of their products, while improvements continued in their text-based systems and at smaller competitors not subject to the suit</b>.
</i></blockquote>
One of the most difficult things about discussing how the pace of innovation is held back is the difficult of showing <i>what doesn't happen</i>.  We get this all the time, where people who can't understand the difference between <i>absolute</i> changes and the <i>rate</i> of change, insist that because there is still <i>innovation</i> in a market, that innovation hasn't been hindered.  Of course, that's ridiculous.  No one is saying that all innovation <i>ceases</i>.  The concern is merely with the rate of change: the pace of innovation, and how it may be slower than would otherwise be seen.  The difficulty, of course is in how do you show <i>what would have been</i>?  That's the most challenging part.  But this study does a really nice job of showing how innovation in the space slowed down massively just after the lawsuits, when there's almost no other explanation for how that might have happened.  It's an incredibly damning report against patent trolls and how they hinder innovation.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20120409/04424118424/empirical-evidence-just-how-much-patent-trolling-hinders-innovation.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20120409/04424118424/empirical-evidence-just-how-much-patent-trolling-hinders-innovation.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20120409/04424118424/empirical-evidence-just-how-much-patent-trolling-hinders-innovation.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>the-evidence-keeps-rolling-in</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120409/04424118424</wfw:commentRss>
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<item>
<pubDate>Tue, 10 Apr 2012 20:03:00 PDT</pubDate>
<title>Digital Native Government Agency Embraces The Power Of Open Source</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/articles/20120409/09075818429/digital-native-government-agency-embraces-power-open-source.shtml</link>
<guid>http://www.techdirt.com/articles/20120409/09075818429/digital-native-government-agency-embraces-power-open-source.shtml</guid>
<description><![CDATA[ <p>The <a href="http://www.consumerfinance.gov/" target="_blank">Consumer Financial Protection Bureau</a> is a young federal agency (founded in July 2011), and as such has a history of <em>getting it</em> when it comes to the digital world. They launched by taking online suggestions, they run an active blog, and now they've revealed their internal software <a href="http://www.consumerfinance.gov/developers/sourcecodepolicy/" target="_blank">policy</a> and its <a href="http://www.consumerfinance.gov/blog/the-cfpbs-source-code-policy-open-and-shared/" target="_blank">dedication to open source, both as a user and a contributor</a> (emphasis in the original):</p>

<blockquote><em>We agree, and the first section of our source code policy is unequivocal: <strong>We use open-source software, and we do so because it helps us fulfill our mission.</strong>
<br /><br />
Open-source software works because it enables people from around the world to share their contributions with each other. The CFPB has benefited tremendously from other people&#8217;s efforts, so it&#8217;s only right that we give back to the community by sharing our work with others.
<br /><br />
This brings us to the second part of our policy: <strong>When we build our own software or contract with a third party to build it for us, we will share the code with the public at no charge.</strong> Exceptions will be made when source code exposes sensitive details that would put the Bureau at risk for security breaches; but we believe that, in general, hiding source code does not make the software safer.
<br /><br />
We&#8217;re sharing our code for a few reasons:
<ul>
<li>First, it is the right thing to do: the Bureau will use public dollars to create the source code, so the public should have access to that creation.</li>
<li>Second, it gives the public a window into how a government agency conducts its business. Our job is to protect consumers and to regulate financial institutions, and every citizen deserves to know exactly how we perform those missions.</li>
<li>Third, code sharing makes our products better. By letting the development community propose modifications , our software will become more stable, more secure, and more powerful with less time and expense from our team. Sharing our code positions us to maintain a technological pace that would otherwise be impossible for a government agency.</li>
</ul>
The CFPB is serious about building great technology. This policy will not necessarily make that an easy job, but it will make the goal achievable.
</em></blockquote>

<p>While governments around the world have been moving to embrace open source for a <a href="http://news.cnet.com/2100-1001-272299.html" target="_blank">long time</a>, adoption has been pretty slow in the U.S., though it is steadily <a href="http://www.oss-institute.org/index.php?option=com_content&#038;view=article&#038;id=423:govt-policies-on-open-source-adoption&#038;catid=145:government-oss-adoption&#038;Itemid=224" target="_blank">growing</a> as more federal agencies revise their guidelines and regulations, and some states <a href="http://www.oss-institute.org/index.php?option=com_content&#038;view=article&#038;id=466:new-hampshire-requires-consideration-of-open-source&#038;catid=1:news-a-updates&#038;Itemid=274">pass laws</a> requiring the consideration of open source options. But as a new agency that actively pursues the opportunities presented by technology, the CFPB is ahead of the curve. TechCrunch's Scott Merrill got additional details, like the fact that they are <a href="http://techcrunch.com/2012/04/09/u-s-consumer-financial-protection-bureau-gets-open-source-publishes-on-github/" target="_blank">trying to lead by example</a>:</p>

<blockquote><em>I asked Willey what kind of advocacy &#8212; if any &#8212; the CFPB was doing (or planning to do) for open source software within the government. He shared that they&#8217;re using GitHub Enterprise internally, and have fielded a number of questions from other agencies about how they procured that and set it up. &#8220;It&#8217;s hard for us to have these conversations with other agencies without implicitly advocating an open source philosophy,&#8221; Willey told me. &#8220;So instead of trying to sell open source to other agencies on principle, we&#8217;re finding that it&#8217;s a lot easier to prove the value of open source software by showing our colleagues the great results it has gotten us.&#8221;
<br /><br />
I was curious whether the CFPB&#8217;s policy is the natural result of more digital natives taking government jobs. According to Willey, it was &#8220;simply the byproduct of building a government organization from scratch in the information age: we are able to craft our technology philosophy with a modern perspective.&#8221;</em></blockquote>

<p>It's good to see people in government placing an emphasis on staying at the forefront of technology, especially in terms of open source. The entire philosophy of open source is perfectly matched to the ideals of a transparent, accountable government that serves and belongs to its citizens, and hopefully the CFPB will lead more agencies in that direction.</p><br /><br /><a href="http://www.techdirt.com/articles/20120409/09075818429/digital-native-government-agency-embraces-power-open-source.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120409/09075818429/digital-native-government-agency-embraces-power-open-source.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120409/09075818429/digital-native-government-agency-embraces-power-open-source.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>open-source-for-open-government</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120409/09075818429</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 4 Apr 2012 13:41:00 PDT</pubDate>
<title>Microsoft Releases Utterly Bizarre And Confusing Anti-Piracy Video</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/articles/20120404/11245618370/microsoft-releases-utterly-bizarre-confusing-anti-piracy-video.shtml</link>
<guid>http://www.techdirt.com/articles/20120404/11245618370/microsoft-releases-utterly-bizarre-confusing-anti-piracy-video.shtml</guid>
<description><![CDATA[ <p>Boo! You didn't see me there, did you? That's because I'm one insidious sonofabitch. My name's piracy, and I'm <em>everywhere</em>. I will do things like disguise myself as a photocopier and infiltrate your business via identity theft. Or, umm, something. Here, I'll let this <a href="http://www.youtube.com/watch?v=wc0BCVTvjXg" target="_blank">dramatic PSA from Microsoft</a> fail to explain it to you:</p>

<p><center><iframe width="560" height="315" src="http://www.youtube.com/embed/wc0BCVTvjXg" frameborder="0" allowfullscreen></iframe></center></p>

<p>Understand? No? Good! We want you <strong>confused and bewildered!</strong> If you're not careful, I will steal your external hard drives and stalk your attractive female employees. I even contribute to littering. And I do it all to the ominous notes of pizzicato strings, like Elmer Fudd hunting wabbits. Learn more at Microsoft's <a href="http://www.microsoft.com/en-us/howtotell/default.aspx" target="_blank">anti-piracy website</a>, which is so poorly designed as to look like a knockoff itself&mdash;that is, if I don't run off with your computer first. Muahahaha! Piracy!</p><br /><br /><a href="http://www.techdirt.com/articles/20120404/11245618370/microsoft-releases-utterly-bizarre-confusing-anti-piracy-video.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120404/11245618370/microsoft-releases-utterly-bizarre-confusing-anti-piracy-video.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120404/11245618370/microsoft-releases-utterly-bizarre-confusing-anti-piracy-video.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>fear,-uncertainty-and-disorder</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120404/11245618370</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 6 Mar 2012 13:24:09 PST</pubDate>
<title>American Airlines Making Life Worse For Most Loyal Customers By Killing Useful Mile-Tracking Browser Plugin</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120301/01411217919/american-airlines-making-life-worse-most-loyal-customers-killing-useful-mile-tracking-browser-plugin.shtml</link>
<guid>http://www.techdirt.com/articles/20120301/01411217919/american-airlines-making-life-worse-most-loyal-customers-killing-useful-mile-tracking-browser-plugin.shtml</guid>
<description><![CDATA[ It's still really amazing to me how often we hear about companies making their own customers' lives <i>worse off</i> in an obsessive need for excess <i>control</i>.  The latest such example comes via Rob Hyndman, who points us to the news that American Airlines has <a href="http://boardingarea.com/blogs/viewfromthewing/2012/02/25/american-squashes-award-wallet-again-browser-plugin-no-longer-available-to-track-miles/" target="_blank">forced Award Wallet to stop providing a useful tool</a> for American fliers trying to keep track of their frequent flyer mileage.  American had cut off a bunch of web-based services in the past that would log into American's site for you and provide a different view and other useful tools.  In that case, the airline argued -- perhaps reasonably -- that it was concerned about security of a third party logging into the site and having access to your account/password.  There are ways that American could deal with those security concerns, but at least that argument made some sense.  In response, however, Award Wallet built a <i>browser plugin</i> that never involved data going to any third party.  Basically everything stayed local.  All it did was give users a <i>better</i> way to view the information (and was apparently especially handy for families).
<br /><br />
And American Airlines didn't like it.
<br /><br />
It couldn't use the "security" argument this time, because everything was local.  But, actually, it tried to use that same argument anyway, <a href="http://boardingarea.com/blogs/viewfromthewing/2012/02/25/american-squashes-award-wallet-again-browser-plugin-no-longer-available-to-track-miles/" target="_blank">responding to a question from BoardingArea</a>, saying that it shut down Award Wallet to maintain the company's...
<blockquote><i>
...&#8230;long-held stance on how third-party websites access proprietary AAdvantage member details&#8230; Because travelers&#8217; AAdvantage account numbers and passwords can be used to claim AAdvantage mileage awards out of their accounts and access personal details, American will always protect this information.
<br /><br />
We simply cannot permit websites that have not satisfied our security requirements the access needed to track AAdvantage balances or any other function that is otherwise secured behind AA.com login credentials.
</i></blockquote>
But that falsely assumes that the browser plugin is a "website."  It's possible that American is just confused... but the more likely situation is that American Airlines is still just worried about <i>controlling</i> the customer, rather than making sure they have the best experience for them.  What services like Award Wallet do is make American's frequent flyer program <i>more valuable</i> to consumers, but apparently American doesn't want that if it means having less control.<br /><br /><a href="http://www.techdirt.com/articles/20120301/01411217919/american-airlines-making-life-worse-most-loyal-customers-killing-useful-mile-tracking-browser-plugin.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120301/01411217919/american-airlines-making-life-worse-most-loyal-customers-killing-useful-mile-tracking-browser-plugin.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120301/01411217919/american-airlines-making-life-worse-most-loyal-customers-killing-useful-mile-tracking-browser-plugin.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>lame</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120301/01411217919</wfw:commentRss>
</item>
<item>
<pubDate>Fri, 10 Feb 2012 03:01:11 PST</pubDate>
<title>Do The Differences Between Software Piracy And Media Piracy Matter?</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20120208/09521117704/do-differences-between-software-piracy-media-piracy-matter.shtml</link>
<guid>http://www.techdirt.com/articles/20120208/09521117704/do-differences-between-software-piracy-media-piracy-matter.shtml</guid>
<description><![CDATA[ <p>Danah Boyd (or danah boyd as she prefers to be called) is widely recognized as an authority on privacy, identity and social networks.  A couple of weeks ago, in the context of the fight against SOPA, she wrote a blog post where she made <a href="http://www.zephoria.org/thoughts/archives/2012/01/17/stop-sopa.html">an interesting distinction between different kinds of piracy</a>:

<i><blockquote>There are many different aspects of piracy, but for simplicity sake, I want to focus on two aspects that feed into bills like SOPA and PROTECT IP: piracy as a competitive issue vs. piracy as a cultural issue. This can often be split as software piracy vs. media piracy, but not always.</blockquote></i>
She then gives a concrete example:

<i><blockquote>Imagine that you are an appliance manufacturer in the United States. You make things like toasters. You are required to abide by American laws. You must pay your employees at least a minimum wage; you must follow American safety regulations. All of this raises the overhead of your production process. In addition, you must also do things like purchase your software legally. Your designers use some CAD software, which they pay for. Your accountants use accounting software, which they pay for. Sure, you&#8217;ve cut some costs by using &#8220;free&#8221; software but, by and large, you pay a decent amount of money to software companies to use the systems that they built.
<br /><br />
You really want to get your toasters into Wal-Mart, but time and time again, you find yourself undercut by competitors in foreign countries where the safety laws are more lax, the minimum wage laws are nonexistent, and where companies aren&#8217;t punished for stealing software. Are you grouchy? Of course you are. Needless to say, you see this as an unfair competition issue. There aren&#8217;t legal ways of bending the market to create fair competition. You can&#8217;t innovate your way out of this dilemma and so you want Congress to step in and make sure that you can compete fairly.</blockquote></i>

Well, AutoCAD, the leading CAD software, costs a few thousand dollars; the price of accounting programs for businesses varies greatly, depending on the size of the company.  But the overall cost of specialized software for the toaster company needn't be more than a few tens of thousands of dollars (using open source operating systems and office suites helps minimize generic software costs.)  Since you're hoping to get your toasters into Wal-Mart, out of necessity you have high-volume production runs (if you don't, then you're a boutique toaster company, and you can charge premium prices.)  That means the extra cost due to software licensing per toaster will be a few cents. 
</p><p>
Moreover, as that first paragraph quoted above makes clear, the key factor of the "unfair" competition is the radically different cost of manufacturing in countries where wages are lower, and health and environmental standards are less rigorous and hence less costly to implement.  These will make far more difference to the costs than the possible use of pirated software, especially at Wal-Mart scales.
</p><p>
As a result, the logic behind the opening claim of this paragraph in the post seems dubious:

<i><blockquote>Combating software piracy in the supply chain is a reasonable request and part of what makes bills like PROTECT IP messy is that there&#8217;s a kernel of this issue in these bills. Bills like this are also meant to go after counterfeit products. Most folks really want to know what&#8217;s in baby formula or what&#8217;s in the medicines they purchase. Unfortunately, though, these aspects of piracy quickly gets muddled with cultural facets of piracy, particularly once the media industries have gotten involved.</blockquote></i>

The second part is absolutely spot-on, though: people rightly want to know that the medicines and foodstuffs they buy are safe.  That means there is a genuine case for legislation that helps protect consumers against such health and safety dangers.  But that's about combating counterfeits, not fighting digital piracy, much less software piracy.  And that's the crucial distinction: not between software piracy and media piracy, but between digital piracy and analog counterfeits.  
</p><p>
It's important not to blur that difference, as the last sentence of the above paragraph seems to do.  After all, that's precisely the trick the ACTA negotiators used to bring in disproportionate punishments for digital piracy -- by confounding it with counterfeiting that endangered the public's health.
</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/20120208/09521117704/do-differences-between-software-piracy-media-piracy-matter.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120208/09521117704/do-differences-between-software-piracy-media-piracy-matter.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120208/09521117704/do-differences-between-software-piracy-media-piracy-matter.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>important-distinctions</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120208/09521117704</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 17 Jan 2012 17:00:00 PST</pubDate>
<title>DailyDirt: Robot Scientists</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20100310/1540038513/dailydirt-robot-scientists.shtml</link>
<guid>http://www.techdirt.com/articles/20100310/1540038513/dailydirt-robot-scientists.shtml</guid>
<description><![CDATA[ People are usually pretty quick to admit that artificial intelligence programs are better than most humans at solving a lot of math problems. Human scientists have generally been needed to interpret data and make conclusions, but AI software could be catching up with scientists by coming up with their own hypotheses and conclusions. Here are just a few examples of programs that might be writing up their own PhD dissertations someday.  
<ul>
<li> <a title="http://www.nytimes.com/1989/06/18/weekinreview/ideas-trends-mathematicians-meet-computerized-ideas.html?pagewanted=all&src=pm" href="http://nyti.ms/yae1WJ">Robot mathematicians like Graffiti have been around for a very long time, generating far more interesting conjectures than any human could.</a> Interesting mathematical conjectures should be surprising, not too closely related to an existing conjecture, and not too specific. [<a href="http://www.nytimes.com/1989/06/18/weekinreview/ideas-trends-mathematicians-meet-computerized-ideas.html?pagewanted=all&src=pm">url</a>]</li>
<li> <a title="http://news.vanderbilt.edu/2011/10/robot-biologist/" href="http://bit.ly/y1Z6w8">Software dubbed Eureqa is analyzing (without help from humans) experimental data from biological systems to derive mathematical models for processes like glycolysis -- and could potentially find new biological discoveries.</a> And I'm sure we'll see stories of robots found cheating by plagiarizing from Wikipedia soon. [<a href="http://news.vanderbilt.edu/2011/10/robot-biologist/">url</a>]</li>
<li> <a title="http://www.wired.com/wiredscience/2009/04/robotscientist/" href="http://bit.ly/xnffVn">Adam is the first automated scientist -- successfully developing a hypothesis, performing experiments, refining its hypothesis into a novel discovery.</a> Adam found three yeast genes that coded for an orphan enzyme. [<a href="http://www.wired.com/wiredscience/2009/04/robotscientist/">url</a>]</li>
<li> <a title="http://www.wired.com/wiredscience/2011/04/robot-scientist-language/" href="http://bit.ly/zRlF9H">A newer version of Adam, called Eve, is sifting through some of Adam's data and looking to find her own discoveries about yeast genetics.</a> Unfortunately, some intellectual property issues are delaying some of Adam and Eve's latest publications. [<a href="http://www.wired.com/wiredscience/2011/04/robot-scientist-language/">url</a>]</li>
<li><b>To discover more interesting robot-related content, <a title="http://www.stumbleupon.com/to/stumble/topic:29" href="http://bit.ly/h0iGmR">check out what's currently floating around the StumbleUpon universe.</a></b> [<a href="http://www.stumbleupon.com/to/stumble/topic:29">url</a>]  <a title="what's this?" href="#" class="whatsthis help_ddstumble">&nbsp;</a>
</li>
</ul>

By the way, StumbleUpon can recommend some good <a title="http://www.stumbleupon.com/to/stumble/stumblethru:www.techdirt.com" href="http://bit.ly/fagV8c">Techdirt</a> articles, too.<br /><br /><a href="http://www.techdirt.com/articles/20100310/1540038513/dailydirt-robot-scientists.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100310/1540038513/dailydirt-robot-scientists.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100310/1540038513/dailydirt-robot-scientists.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=20100310/1540038513</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 4 Jan 2012 17:00:00 PST</pubDate>
<title>DailyDirt: Computers Talking Back</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20101019/04285611480/dailydirt-computers-talking-back.shtml</link>
<guid>http://www.techdirt.com/articles/20101019/04285611480/dailydirt-computers-talking-back.shtml</guid>
<description><![CDATA[ We've covered the uncanny valley of various visual works before, but it's interesting that synthetic speech doesn't seem quite as polished as digital photo and video editing. Apple's Siri might be able to respond with some pretty witty comebacks, but everyone can still tell that the voice is computer generated. Here are a few interesting links on artificially-generated sounds and voices.
<ul>
<li> <a title="http://www.wired.com/underwire/2011/12/ueki-loid-speech-synthesizer/all/1" href="http://bit.ly/zAr9Jd">AutoTune is so last century -- bringing back voices from the dead is the new zombie world order.</a> Vocaloid researchers have developed software that can re-create a person's singing voice without recordings of the person singing every syllable possible. [<a href="http://www.wired.com/underwire/2011/12/ueki-loid-speech-synthesizer/all/1">url</a>]</li>
<li> <a title="http://www.engadget.com/2011/12/13/spectral-layers-takes-a-cue-from-photoshop-offers-visual-audio/" href="http://engt.co/yHusSy">Audio editing software is becoming more like Photoshop -- and pretty soon everyone will be able to create podcasts that sound like NPR.</a> This kind of software has been around for a while, but it's getting more sophisticated and has more tools for extracting and refining voices and sound effects. [<a href="http://www.engadget.com/2011/12/13/spectral-layers-takes-a-cue-from-photoshop-offers-visual-audio/">url</a>]</li>
<li> <a title="http://blogs.discovermagazine.com/80beats/2012/01/03/the-man-who-takes-care-of-stephen-hawkings-voice-speaks/ " href="http://bit.ly/yxovXz">Stephen Hawking's voice is in need of some new maintenance and upgrades, but apparently the company that made the hardware for his voice synthesizer went out of business.</a> Hmm. How was Hawking's <a href="http://www.youtube.com/watch?v=Zhexf_uaDV0">rap persona</a> created? [<a href="http://blogs.discovermagazine.com/80beats/2012/01/03/the-man-who-takes-care-of-stephen-hawkings-voice-speaks/ ">url</a>]</li>
<li><b>To discover more interesting tech-related content, <a title="http://www.stumbleupon.com/to/stumble/topic:Technology" href="http://bit.ly/ewIrx5">check out what's currently floating around the StumbleUpon universe.</a></b> [<a href="http://www.stumbleupon.com/to/stumble/topic:Technology">url</a>]  <a title="what's this?" href="#" class="whatsthis help_ddstumble">&nbsp;</a>
</li>
</ul> 


By the way, StumbleUpon can recommend some good <a title="http://www.stumbleupon.com/to/stumble/stumblethru:www.techdirt.com" href="http://bit.ly/fagV8c">Techdirt</a> articles, too.<br /><br /><a href="http://www.techdirt.com/articles/20101019/04285611480/dailydirt-computers-talking-back.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101019/04285611480/dailydirt-computers-talking-back.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101019/04285611480/dailydirt-computers-talking-back.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=20101019/04285611480</wfw:commentRss>
</item>
<item>
<pubDate>Fri, 16 Dec 2011 16:05:11 PST</pubDate>
<title>Microsoft Reminds Everyone: You Do Not Own Your Software</title>
<dc:creator>Zachary Knight</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20111209/08380617021/microsoft-reminds-everyone-you-do-not-own-your-software.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20111209/08380617021/microsoft-reminds-everyone-you-do-not-own-your-software.shtml</guid>
<description><![CDATA[ With the proliferation of smartphones and other portable electronic devices such as tablet computers and e-readers, we are often left wondering, "Do we really own the books, games and other apps we pay money for?" Now that question has spread to your computer as well. PC World has revealed that Microsoft's terms of service for its Windows 8 app store gives it the right to not only disable but also <a href="http://www.pcworld.com/article/245797/microsoft_we_can_remotely_delete_windows_8_apps.html" target="_blank">remove apps Windows 8 device owners paid money to own</a>. In Microsoft's own words: 
<blockquote>
<i>In cases where your security is at risk, or where we're required to do so for legal reasons, you may not be able to run apps or access content that you previously acquired or purchased a license for. </i>
</blockquote>
 This is probably nothing new to users of the Amazon Kindle who had their copies of the book <a href="http://www.techdirt.com/articles/20090717/1559425587.shtml">1984 remotely deleted</a> or to people who <a href="http://www.techdirt.com/articles/20111031/13425616573/ding-dong-another-drm-is-dead-with-it-all-files-you-thought-you-bought.shtml">bought music from Rhapsody</a> who had their DRM'ed tracks reduced to nothing over night. Nor is this unique to these businesses. As PC World also notes, both Apple and Google retain the right to remove software users of their devices "bought". Businesses have been calling to question the ownership of digital products for quite some time. If we cannot prevent the loss of legally purchased products from those which sold these products to us, how can we really claim ownership?
<br /><br /> 
If it is any consolation to you, Microsoft has told PC Mag that it will <a href="http://www.pcmag.com/article2/0,2817,2397414,00.asp" target="_blank">refund buyers of apps it deletes</a>. However, any data you may have saved using the app will be completely lost. So not even the work that you put into this software is yours to claim ownership. 
<br /><br /> 
While Microsoft claims that it will primarily remove software in the case of security violations, it also retains this power for cases of "legal or contractual requirements." This is quite the broad opening left here. With the looming threat of increased enforcement of Copyright through SOPA and PIPA, the idea that an app can be removed via a "legal requirement" creates yet another question over ownership. If an app we purchase ends up infringing some company's copyright, patent or trademark, they could theoretically use that as a tool to remove that app from our devices.
<br /><br />
We are moving further and further into a digital landscape for everything from movies, music, books, games and software. With this transition, companies that produce these products are working overtime to remind consumers that they are not owners of these products but merely licensees. We will not have the luxury of physical media on which we can claim ownership rights for much longer. Consumers for the last few years have been clamoring for more digital content. They have been the primary drivers of this transition. The only real question left is, do they realize the consequences that come with this change, and will they demand the right to claim ownership?<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20111209/08380617021/microsoft-reminds-everyone-you-do-not-own-your-software.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20111209/08380617021/microsoft-reminds-everyone-you-do-not-own-your-software.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20111209/08380617021/microsoft-reminds-everyone-you-do-not-own-your-software.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>don't-hit-the-nuke-button</slash:department>
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</item>
<item>
<pubDate>Wed, 30 Nov 2011 03:24:44 PST</pubDate>
<title>EU Advocate General: 'Functionalities Of A Computer Program Cannot Be Protected By Copyright'</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20111129/06033116920/eu-advocate-general-functionalities-computer-program-cannot-be-protected-copyright.shtml</link>
<guid>http://www.techdirt.com/articles/20111129/06033116920/eu-advocate-general-functionalities-computer-program-cannot-be-protected-copyright.shtml</guid>
<description><![CDATA[ Back in September, Techdirt <a href="http://www.techdirt.com/articles/20110923/12361216076/is-creating-same-software-feature-copyright-infringement.shtml">wrote</a> about an important case that had been passed up to the European Court of Justice.  It raised some key questions about creating software that was interoperable with an existing program &ndash; whether, for example, the features of the latter were in some sense copyrightable.
<br /><br />
Although the full Court decision won't be out until next year, one of the Court of Justice's Advocates General (there are eight of them, "<a href="http://europa.eu/about-eu/institutions-bodies/court-justice/index_en.htm">to present opinions on the cases brought before the Court</a>") has published his views on the case [<a href="http://curia.europa.eu/jcms/jcms/P_83250/">pdf</a>]:
<blockquote><i>
In the first place, with regard to the functionality of a computer program, the Advocate General defines it as the set of possibilities offered by a computer system &ndash; in other words, the service which the user expects from it.
<br /><br />
Starting from that premiss, the Advocate General <b>considers that the functionalities of a computer program are not eligible, as such, for copyright protection</b>. The functionalities of a computer program are in fact dictated by a specific and limited purpose. In this, they are similar to ideas. That is why there may be a number of computer programs offering the same functionalities.
</i></blockquote>
That seems like common sense: the functionality of a program is just something that it can do, which is itself just an idea.  The Advocate General then goes on to make a very important point:
<blockquote><i>
if it were accepted that a functionality of a computer program can be protected as such, that would amount to making it possible to monopolise ideas, to the detriment of technological progress and industrial development.
</i></blockquote>
The thing is, exactly the same could be said about software patents too.  One of the problems with them is that they often concern basic programming techniques, and as such give the patent holder a monopoly on those key ideas.  It's why copyright &ndash; which protects the implementation of ideas &ndash; is more appropriate than patents, since it does not block alternative ways of creating the same effect.  It's also why markets like smartphones have turned into impenetrable <a href="http://www.techdirt.com/blog/wireless/articles/20101007/22591311328/meet-the-patent-thicket-who-s-suing-who-for-smartphone-patents.shtml">patent thickets</a>.
<br /><br />
This is not the final judgment of the European Court of Justice, although the Advocate General's opinion does carry considerable weight.  Moreover, even the European Court of Justice does not decide the case definitively, but merely offers its interpretation of European law.  It is ultimately down to the national court in the UK to use that ruling to make its own judgment.  So there's still a long way to go before this case and the issues that it raises are settled.  But it's definitely off to a good start with this opinion: had the Advocate General opined differently, creating interoperable programs in Europe would have started to look a much more perilous &ndash; and expensive &ndash; undertaking.
<br /><br />
It's also worth noting that there is a very similar case going through the courts in the US: <a href="http://blogs.computerworlduk.com/open-enterprise/2010/08/oracle-scorns-open-source-how-to-respond/index.htm">Oracle has accused Google of infringing on its Java copyrights</a> in much the same way that SAS accused WPL in Europe.  It will be interesting to see whether the US judge agrees with the Advocate General's analysis.  
<br /><br />
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><br /><br /><a href="http://www.techdirt.com/articles/20111129/06033116920/eu-advocate-general-functionalities-computer-program-cannot-be-protected-copyright.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111129/06033116920/eu-advocate-general-functionalities-computer-program-cannot-be-protected-copyright.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111129/06033116920/eu-advocate-general-functionalities-computer-program-cannot-be-protected-copyright.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>but-what-about-patents?</slash:department>
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<item>
<pubDate>Wed, 2 Nov 2011 17:00:00 PDT</pubDate>
<title>DailyDirt: We've Got The Droids You're Looking For...</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20101215/03505112285/dailydirt-weve-got-droids-youre-looking.shtml</link>
<guid>http://www.techdirt.com/articles/20101215/03505112285/dailydirt-weve-got-droids-youre-looking.shtml</guid>
<description><![CDATA[ Software is getting better and better at mimicking human behavior on the internet. People are fooled every day by automated messages that seem like they come from actual humans, and sometimes real human messages are mistakenly thought to be composed by computers. Here are just a few more examples of internet bots getting smarter.
<ul>
<li> <a title="http://www.networkworld.com/news/2011/110111-researchers-defeat-captcha-on-popular-252620.html" href="http://bit.ly/sUHPDS">Software called Decaptcha is getting better at solving CAPTCHA challenges.</a> Decaptcha can't foil CAPTCHAs from Google and reCAPTCHA, so it's not going to help digitize books (but maybe someday it will). [<a href="http://www.networkworld.com/news/2011/110111-researchers-defeat-captcha-on-popular-252620.html">url</a>]</li>
<li> <a title="http://searchengineland.com/google-can-now-execute-ajax-javascript-for-indexing-99518" href="http://selnd.com/sORKbw">Google's indexing spider, GoogleBot, can now execute AJAX or JavaScript to get into dynamic commenting systems from Facebook and Disqus.</a> When GoogleBot achieves self-awareness, hopefully it won't judge the human race from what it's read in blog comments... [<a href="http://searchengineland.com/google-can-now-execute-ajax-javascript-for-indexing-99518">url</a>]</li>
<li> <a title="http://news.cnet.com/8301-1009_3-20128808-83/socialbots-steal-250gb-of-user-data-in-facebook-invasion/" href="http://cnet.co/tBDz6P">Socialbots are infiltrating social networks and collecting as much personal information as they can, using fake accounts with attractive profile pictures to befriend unsuspecting people.</a> If a man you've never met before suddenly gives you flowers... (or pokes you on Facebook) Guess what? It's probably spam or an ad for something. [<a href="http://news.cnet.com/8301-1009_3-20128808-83/socialbots-steal-250gb-of-user-data-in-facebook-invasion/">url</a>]</li>
<li><b>To discover more interesting robot-related content, <a title="http://www.stumbleupon.com/to/stumble/topic:29" href="http://bit.ly/h0iGmR">check out what's currently floating around the StumbleUpon universe.</a></b> [<a href="http://www.stumbleupon.com/to/stumble/topic:29">url</a>]  <a title="what's this?" href="#" class="whatsthis help_ddstumble">&nbsp;</a>
</li>
 

By the way, StumbleUpon can recommend some good <a title="http://www.stumbleupon.com/to/stumble/stumblethru:www.techdirt.com" href="http://bit.ly/fagV8c">Techdirt</a> articles, too.
</ul><br /><br /><a href="http://www.techdirt.com/articles/20101215/03505112285/dailydirt-weve-got-droids-youre-looking.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101215/03505112285/dailydirt-weve-got-droids-youre-looking.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101215/03505112285/dailydirt-weve-got-droids-youre-looking.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>urls-we-dig-up</slash:department>
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<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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