Technology, Business & Cool Toys

Venture Capitalists Reject Bailout: An Inspiring Dose of Economic Sanity

by Berin Szoka on March 3, 2009 · 11 comments

Our readers may be interested in this excellent WSJ article, Too Risky for Venture Capitalists: Why proposals for a government bailout were roundly rejected. We should all take heart in the the fact that the venture capital community itself resoundingly opposed the notion of accepting a massive infusion of taxpayer money, especially Tom Friedman’s suggestion:

“You want to spend $20 billion of taxpayer money creating jobs?” Mr. Friedman wrote. “Fine. Call up the top 20 venture capital firms in America” and invest the money with them.

But I see three more reasons why those interested in technology policy should pay attention to this encouraging episode.

First, the groundswell of opposition seems to have been driven largely by the Internet, both as a vehicle for disseminating the bailout proposals and for voicing opposition to them:

Venture capitalists certainly agree that innovators and start-up companies, not bailed-out GMs or Chryslers, will create the new jobs. They rightly brag that almost 20% of U.S. gross domestic product is generated by companies built by venture capital, such as Intel, Apple and Google. Still, they almost universally panned the notion of taxpayer support. Their real-time rejection is an excellent example of how social media — here, the venture community dissecting a proposal online — can now quickly take down bad ideas.

Second, it should almost go without saying that venture capital is the fountainhead of innovation, especially the disruptive innovation that is constantly pushing the envelope of technology policy. A healthy VC sector is the bedrock of a dynamic, free and innovative economy. The VCs realize that this requires, more than anything else, avoiding the market distortions caused by government funding: Continue reading →

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Just How Far the Internet Has Come Since 1996

by Adam Thierer on February 24, 2009 · 28 comments

A classic piece here by Farhad Manjoo of Slate about how “the Internet of 1996 is almost unrecognizable compared with what we have today.” It’s a fun look back at just how far the Internet has come over the past 13 years. I love this passage:

We all know that the Internet has changed radically since the ’90s, but there’s something dizzying about going back to look at how people spent their time 13 years ago. Sifting through old Web pages today is a bit like playing video games from the 1970s; the fun is in considering how awesome people thought they were, despite all that was missing. In 1996, just 20 million American adults had access to the Internet, about as many as subscribe to satellite radio today. The dot-com boom had already begun on Wall Street– Netscape went public in 1995 — but what’s striking about the old Web is how unsure everyone seemed to be about what the new medium was for. Small innovations drove us wild: Look at those animated dancing cats! Hey, you can get the weather right from your computer! In an article ranking the best sites of ’96, Time gushed that Amazon.com let you search for books “by author, subject or title” and “read reviews written by other Amazon readers and even write your own.” Whoopee. The very fact that Time had to publish a list of top sites suggests lots of people were mystified by the Web. What was this place? What should you do here? Time recommended that in addition to buying books from Amazon, “cybernauts” should read Salon, search for recipes on Epicurious, visit the Library of Congress, and play the Kevin Bacon game.

God, do you remember those days? I sure do. I penned a piece last month about the amazing technological progress we have witnessed over the past decade.

Meanwhile, we have a whole town full of clowns here in DC looking to regulate the Internet and digital technology for one reason or another. All these would-be regulators need to step back and appreciate just how well markets have been working and why regulation would be a disaster for technological progress. Viva la (Technology) Revolution!

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Deja Vu for Facebook

by Tim Lee on February 19, 2009 · 9 comments

Over at the New York Times “Room for Debate” blog, I’ve contributed my thoughts on the recent Facebook terms of service controversy.

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Exciting New Product From Sony

by Jim Harper on February 11, 2009 · 8 comments

NSFDelicateEars, but it’s sheer brilliance, after the break.
Continue reading →

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Nordstrom is Using a U.S. PTO Error to Throw a Small Competitor Under the Bus – and What You Can Do About It

by Jim Harper on February 9, 2009 · 10 comments

I’ve gotten an unusually strong reaction to a TechKnowledge piece that went out today describing how the Nordstrom retail chain is capitalizing on a Patent and Trademark Office error to throw a small business under the bus.

Beckons is an organic yoga and lifestyle clothing business that Nordstrom is trying to force off of a trademark – or out of business. It’s owned by two businesswomen in Colorado who have done everything right to get a trademark, but now may have tens of thousands of dollars in legal bills to defend it. The short article is called U.S. Patent and Trademark Office: FAIL.

I wrote about it because I think it’s an outrage. People have written to me since I published it asking what they can do.

Well, there are a couple of things. The original error is with the PTO, so you can send a copy of the story or a link to your Member of Congress. The U.S. Patent and Trademark Office is within the jurisdiciation of the House and Senate Judiciary Committees.

But it’s Nordstrom that has really taken advantage of things. And you don’t have to beg for a politician’s help to bring companies to heel. Here’s a four-step plan for helping Beckons beat Goliath. Do one or all of the items listed below.

Send this page to all your friends. That’s probably the most important thing, because the more people doing the other things on this list, the better.
Write a letter to Nordstrom, telling them that you disapprove of their abuse of the trademark process, and that you won’t be shopping there until they mend their ways. Here’s the address for the president of the company.
Blake W. Nordstrom, President
Nordstrom, Inc.
1700 Seventh Avenue, Suite 300
Seattle, WA 98101
Print this page, copy it, and hand it out at Nordstrom. Or slip copies into the purses they sell – especially any with the “Beckon” label!
If you do yoga, or know anybody who does, shop at Beckons! (Be sure to send this along to friends who do yoga.)

So those are just a few ideas for getting Nordstrom to correct its abuse of the trademark process against this small business. Please feel free to put additional ideas or report on your successes in the comments. (Got a sample letter to Nordstrom, for example?)

A well-functioning marketplace requires assertive consumers – so assert yourself!

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Google’s Latitude and Privacy Concerns

by Adam Thierer on February 7, 2009 · 31 comments

Google’s latest major launch is “Latitude,” a geo-location service that lets users find friends on a digital map and then network with them. These services are often referred to as “LBS,” which stands for “location-based services.” I wrote about LBS here before in my essay on “The Next Great Technopanic: Wireless Geo-Location / Social Mapping.” As I pointed out in that piece, LBS raise privacy concerns with some people because, by their nature, these technologies involve the tracking of users.

But I’ve argued that those concerns are generally over-blown, especially because you have to download and opt-in to these services. In other words, you know what you’re getting into. Moreover, companies who offer these services, like Loopt and now Google, go out of their way to offer privacy safeguards. Indeed, even some privacy activists agree.

For example, Michael Zimmer of the School of Information Studies at the University of Wisconsin-Milwaukee, is someone who pays close attention to privacy issues and is often critical of Google and other companies for supposedly not paying enough attention to privacy concerns. In the case of Latitude, however, he argues that “Google Actually Got it (Mostly) Right.” Here’s his snapshot of “what Google’s done to help give users control of their information flows in Latitude”:
Continue reading →

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Generativity Alive and Well with the IPhone

by Adam Thierer on February 5, 2009 · 8 comments

I’ve been hammering Jonathan Zittrain pretty hard here over the past year for the thesis he sets forth in The Future of the Internet and How to Stop It that digital “generativity” is at risk today. The reason I have been doing so is because all signs point in the exact opposite direction, and more so with each passing day. Contrary to Jonathan’s fear that the Internet and digital technologies are growing more closed, tethered, and sterile, I have argued that the facts on the ground show us how the world is actually becoming far more open, untethered, and innovative. And that’s true even for the technology that Jonathan singles out in the book for special scorn — the iPhone.

Consider David Pogue’s post today on the New York Times‘ technology blog today entitled “So Many iPhone Apps, So Little Time.” Pogue reports that:

there are now 15,000 programs available on the App Store, and so many more are flooding in that Apple’s army of screeners can’t even keep up. I keep meaning to write a thoughtful, thorough roundup of the very best of these amazing programs, but every day that I don’t do it, the job becomes more daunting.

[…]

Apple, which runs the store, keeps 30 percent of each sale. Even so, Ocarina [an application Pogue discusses in his essay] demonstrates that a programmer can make a staggering amount of money from the iPhone store. It’s a crazy new software model that I don’t remember seeing anywhere else. It’s not a boxed software program for $600, or even a shareware program you download for $25. It’s a buck a copy.

The beauty here is that at these prices, there’s very little risk in trying something out. How many software programs have you bought for your Mac or PC? Two? Four? Well, the average iPhone owner may wind up installing 10, 20 or 30 programs. In all, according to Apple, iPhone owners have downloaded 500 million copies of these programs. Half a billion–since last July.

There’s a lot of gloom in the tech industry (and every industry, for that matter). But even when the economy is crashing down around us, there’s still amazing power in a single good idea. And the one on display here–pricing software so low that millions of people buy it without batting an eye–is turning a few clever programmers into millionaires.

I ask you: Does this sound like a world that is growing less generative, as Zittrain argues? Because it sure doesn’t sound like it to me. Moreover, if you still don’t think the iPhone is open enough, then there’s always a simple solution to that: just buy another phone!

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10 Years Ago Today… (Thinking About Technological Progress)

by Adam Thierer on February 1, 2009 · 613 comments

As I am getting ready to watch the Super Bowl tonight on my amazing 100-inch screen via a Sanyo high-def projector that only cost me $1,600 bucks on eBay, I started thinking back about how much things have evolved (technologically-speaking) over just the past decade. I thought to myself, what sort of technology did I have at my disposal exactly 10 years ago today, on February 1st, 1999? Here’s the miserable snapshot I came up with:

10 years ago today, I did not own a high-definition television set, as they were too expensive (I bought my first one from Sears on an installment plan a few months later. It was a boxy 42-inch, 4×3 monstrosity that rolled around on the floor on casters and it took up half the room). Moreover, only a few HDTV signals could be picked up locally and none were yet available from my cable or satellite provider.
10 years ago today, the biggest television in my house was a 32-inch 4×3 ProScan analog set, which I thought was massive. (Of course, it was in terms of weight. It was over 125 lbs).
10 years ago today, I was still using a dial-up, 56k narrowband Internet connection even though I lived in downtown Washington, DC just 6 blocks from our nation’s Capitol.
10 years ago today, my computer was a Compaq laptop that weighed more than my dog, had barely any storage or RAM, and had a screen that was only slightly brighter than an Etch-A-Sketch.
10 years ago today, I was still occasionally using an old CompuServe e-mail address that had nine digits in it. (But at least I wasn’t one of the 20 million or so people paying $20 bucks per month to graze around inside AOL’s walled garden!)
10 years ago today, I was still backing up files on 3 1/2 inch floppy disks. I had boxes full of those things. (And, sadly, I still had 5 1/4 inch floppies in my possession that I was saving “just in case” I ever needed those old files. Pathetic!)

Continue reading →

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Nuts & Bolts: Everything You Wanted To Know About Cookies But Were Afraid To Ask

by Adam Marcus on January 27, 2009 · 16 comments

As a means of introducing myself to TLF readers, this is an article that I wrote for the PFF blog in September that has not been previously mentioned on the TLF. Most of my other PFF blog posts have been cross-posted by Adam Thierer or Berin Szoka, but I’ve taken ownership of those posts so they appear on my TLF author page.

This is the first in a series of articles that will focus directly on technology instead of technology policy. With an average age of 57, most members of Congress were at least 30 when the IBM PC was introduced in 1981. So it is not surprising that lawmakers have difficulty with cutting-edge technology. The goal of this series is to provide a solid technical foundation for the policy debates that new technologies often trigger. No prior knowledge of the technologies involved is assumed, but no insult to the reader’s intelligence is intended.

This article focuses on cookies–not the cookies you eat, but the cookies associated with browsing the World Wide Web. There has been public concern over the privacy implications of cookies since they were first developed. But to understand them , you must know a bit of history.

According to Tim Berners Lee, the creator of the World Wide Web, “[g]etting people to put data on the Web often was a question of getting them to change perspective, from thinking of the user’s access to it not as interaction with, say, an online library system, but as navigation th[r]ough a set of virtual pages in some abstract space. In this concept, users could bookmark any place and return to it, and could make links into any place from another document. This would give a feeling of persistence, of an ongoing existence, to each page.”[1. Tim Berners-Lee, Weaving The Web: The Original Design and Ultimate Destiny of the World Wide Web. p. 37. Harper Business (2000).] The Web has changed quite a bit since the early 1990s.

Today, websites are much more dynamic and interactive, with every page being customized for each user. Such customization could include automatically selecting the appropriate language for the user based on where they’re located, displaying only content that has been added since the last time the user visited the site, remembering a user who wants to stay logged into a site from a particular computer, or keeping track of items in a virtual shopping cart. These features are simply not possible without the ability for a website to distinguish one user from another and to remember a user as they navigate from one page to another. Today, in the Web 2.0 era, instead of Web pages having persistence (as Berners-Lee described), we have dynamic pages and “user-persistence.”

This paper describes the various methods websites can use to enable user-persistence and how this affects user privacy. But the first thing the reader must realize is that the Web was not initially designed to be interactive; indeed, as the quote above shows, the goal was the exact opposite. Yet interactivity is critical to many of the things we all take for granted about web content and services today.

Continue reading →

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Feedsqueezer: Another Competitor for Google

by Berin Szoka on January 24, 2009 · 10 comments

Those who criticize Google as a “monopoly” usually focus on the search and advertising markets. Google may indeed have a huge lead in those markets, but it is by no means a “monopoly” in the strict sense of the word as the only (“mono-“) seller in that market.

If the critics are concerned about about true “monopoly” or at least something close to it, perhaps they ought to focus on Feedburner, the free service Google acquired back in 2007. If one takes a very narrow definition of the service Feedburner offers, one could argue that there is no real alternative to Feedburner. But on the other hand:

I have a very simple solution. I use my own RSS feed I don’t need some other company providing a enhanced solution. I have never understood why people used feedburner at all.

Getting statistics from a feed is elementary. There are several services out their that provide podcast statistics.

Stupidity in giving someone else control over ones feed is something I will never get. I have no sympathy for those having feedburner issues.

Regardless, some leading bloggers have expressed outrage over Feedburner’s less-than-perfect reliability—see this recent rant by Michael Arrington. But we call in the federales to “fix” the “problem”—if one properly apply that term to a free service beloved by (nearly all) bloggers everywhere just because it’s not absolutely, positively 100% reliable or instantaneous or simply because some people don’t like the idea of using yet another Google product, no matter how good it is—let’s see what Feedsqueezer, a soon-to-be-launched service, will offer.

Note: The word “monopoly” is now commonly used to mean “control that makes possible the manipulation of prices.” It’s not obvious what that would mean in the case of those Google services, that are both free to the user and not directly related to any price paid by, say an advertiser—as distinct from, say, Adwords or Adsense, where there are at least prices that might, in theory, be controlled.

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