Week Without Walls

Google's Legal Challenges Will Have a Ripple Effect

As you may know, Google planned to digitize millions of books. In 2005, a copyright infringement class action was filed, and a settlement was reached recently. After receiving an avalanche of comments from around the world regarding the Google Amended Settlement Agreement (ASA) in the class action, U.S. Circuit Judge Denny Chin rejected the ASA for many reasons.

The Judge concluded in his 48-page opinion that the ASA was not fair, adequate and reasonable, and stated that while "the digitization of books and the creation of a universal digital library would benefit many, the ASA would simply go too far" since this ASA would "implement a forward-looking business arrangement that would grant Google significant rights to exploit entire books, without permission of the copyright owners."

He went on to say: "Indeed, the ASA would give Google a significant advantage over competitors, rewarding it for engaging in wholesale copying of copyrighted works without permission, while releasing claims well beyond those presented in the case."

Since 2004, Google has scanned more than 12 million books from several major research libraries, including Austrian National Library, Columbia University, Cornell University, Harvard University, the New York Public Library, Oxford University, Princeton University, University of California, University Complutense of Madrid, University of Michigan, University of Texas at Austin, University of Virginia, and University of Wisconsin-Madison.

The lead plaintiff in the class action is the Authors Guild, and notices of the lawsuit were sent (in 36 languages) to a class of potential plaintiffs including more than 1.26 million copyright owners and worldwide associations of publishers and authors. Obviously, the class of plaintiffs in this case is a complex group with differing interests in Google's use of the books and snippets from books.

The Library Project's aim is simple: "Make it easier for people to find relevant books -- specifically, books they wouldn't find any other way, such as those that are out of print -- while carefully respecting authors' and publishers' copyrights. Our ultimate goal is to work with publishers and libraries to create a comprehensive, searchable, virtual card catalog of all books in all languages that helps users discover new books and publishers discover new readers."

As noted above, Judge Chin's Order recognized that Google's project used many copyrighted works without authority, and he sent the dispute back to the parties to try to reconcile a new settlement or set the dispute for a trial. But the Judge did state that establishing new digital uses of copyrighted materials should be decided by U.S. Congress and foreign governments rather than by Google in a class action settlement.
Google Buzz Leads to 20-Year FTC Oversight Privacy Policy

On another subject, Google's rollout of Buzz in 2010 was badly received by the user community, but that was the least of its troubles. The Federal Trade Commission (FTC) filed a Complaint for Google's violation of its own Privacy Policies. In its settlement, the FTC noted that "Google launched its Buzz social Reach More Customers with Live Chat - Free Whitepaper network through its Gmail Web-based email product. Although Google led Gmail users to believe that they could choose whether or not they wanted to join the network, the options for declining or leaving the social network were ineffective.

"For users who joined the Buzz network, the controls for limiting the sharing of their personal information were confusing and difficult to find," the agency said.

The FTC Complaint alleged that Buzz violated U.S. privacy laws, and also violated the U.S.-EU Safe Harbor Framework to allow personal data to be lawfully transferred from the EU to the U.S. Ultimately, Google settled this dispute with the FTC, and the FTC announced that "the proposed settlement bars the company from future privacy misrepresentations, requires it to implement a comprehensive privacy program, and calls for regular, independent privacy audits for the next 20 years."

The FTC settlement with Google sends a huge wake-up message to companies to review their Privacy Policies for violations!
EU Problems for Google

Antitrust allegations " target="_blank">have been filed with the European Commission (EC) by the French company 1plusV, a maker of specialized search engines for such topics as law and music, and parent company of Ejustice.fr, a legal search engine. 1plusV alleges that Google created an illegal tie-in for competing search engines that were required to use Google search technology in order to use Google ads on their sites.

Also, Microsoft (Nasdaq: MSFT) plans to file an antitrust complaint against Google based on the fact that Google apparently has 95 percent of the search market.

Recently, Google settled a dispute with the French Competition Authority over rejecting ads; the settlement requires a three-month notification period before rejecting ads going forward. Navx bought ads from Google for its software app designed to help drivers avoid speeding tickets by providing "online maps pinpointing the location of radar and camera systems the authorities use to crack down on speeding on French roads."

Because radar detectors are illegal in France, Google rejected Navx's ads, and Navx filed a lawsuit in court for 7 million euros (US$9.7 million) alleging damages. As part of the settlement, Google "pledged to overhaul its rules and procedures for blocking certain advertisers from buying "sponsored links.""

About a year ago, three Google executives were convicted of violating Italian privacy laws for a video posted on Google that showed the bullying of a disabled teenager. There is no question that the video was in poor taste, and Google took the video down within 24 hours of its posting after receiving two complaints.

The conviction of Google's global privacy counsel, Peter Fleischer, along with two other executives, raises significant issues. A fourth Google executive was acquitted. Google appealed these convictions, which apparently are still pending.
And One More - Texas Attorney General Reviewing Google

A number of allegations that Google manipulates search engine results led to an investigation of possible Texas antitrust violations.

Google responded as to why some websites get higher rankings than others: "The important thing to remember is that we built Google to provide the most useful, relevant search results and ads for users. In other words, our focus is on users, not websites. Given that not every website can be at the top of the results, or even appear on the first page of our results, it's unsurprising that some less relevant, lower quality websites will be unhappy with their ranking."

Since search engines do not disclose how they operate, this investigation by the Texas Attorney General AG may result in making public, for the first time, how Google's search engine actually operates.

RESOURCE: http://www.technewsworld.com/story/72257.html

Why All the Nail-Biting Over Twitter?

Management troubles! Foolish business decisions! Still no monetization platform of note! All of this is old news about Twitter, but it seems as though reports about these issues have been proliferating lately, both in volume and in detail.

The latest barrage started with an article published in BusinessInsider describing the company's early tumultuous management days -- an era that ended with the unceremonious departure of one of the founders, Noah Glass, who was said to have been treated badly by Evan Williams.

Fortune published additional details about the game of musical executive chairs being played at the company, starting with erstwhile CEO Jack Dorsey's return as product chief. After having been demoted by the board, he had left to found the successful payments company, Square. In the interim, Williams and operating chief Dick Costolo alternately assumed Twitter's helm.
Not for Sale

Fortune also mentioned that Twitter had turned down a US$2 billion offer from Facebook and an eye-popping $10 billion offer from Google (Nasdaq: GOOG). It is unlikely that Facebook will counter -- CEO Mark Zuckerberg is said to have become disenchanted with the microblogging site after years of obsession over its next move.

Twitter's rejections of those offers were pretty gutsy -- and in the eyes of some investors, stupid -- considering that it only posted $45 million in ad revenues in 2010, according to eMarketer.

There appears to be a Twitter media frenzy in the making, with Twitter being cast in the role of the next MySpace -- that is, a high-flying tech site destined to fade into obsolescence.

Twitter, which did not respond to the E-Commerce Times' request for comment on this story, no doubt would consider all this much ado about nothing -- and might accuse the media of magnifying problems that are not that relevant to its long-term viability.

The truth most likely lies somewhere between these two extremes, said Paul Levinson, a communications and media studies professor at Fordham University.
Weakest of 3 Legs

"Twitter is not going to go away or fail," Levinson told the E-Commerce Times. "It is much more important than MySpace ever was, even during its heyday."

Essentially, Twitter is one of three corporate legs that make up the current social Reach More Customers with Live Chat - Free Whitepaper media environment, he said -- the other two being Google's YouTube and Facebook.

Yet Twitter is clearly the weakest of these three legs, Levinson noted. "In terms of corporate control and direction, clearly Twitter has some improvement to make, especially when you compare it to the other two companies. Zuckerberg has done spectacularly well guiding Facebook and keeping it focused."

While Google has had its share of management shuffles lately, there is little doubt that the company's management is in strong control of its direction.

Sooner or later -- and it will probably come sooner -- something will have to be done about the guidance and control issue at Twitter. Levinson predicts that within two years, or at the latest five, the slate of managers will be entirely different than the current one.
Dumb Decisions?

Might the rejection of $10 billion from Google -- assuming that account is true -- facilitate this process?

The hype over this is mainly coming from the investment community, which in general hates to see valuations for any company rise too high, said Michael Hussey, CEO of PeekYou.

"I am sure Twitter's investors are saying they can get their money back in multiples if Twitter were to sell right now, but Twitter wants to realize its vision," Hussey told the E-Commerce Times.

Hussey is of the opinion that Twitter is stronger than ever. "I don't know why people are questioning Twitter's long-term strategy. In terms of what they are doing now they have never been more important. There is simply no other company out there that offers the same service."

He too likened Twitter to one of three legs supporting the social media ecosystem, with each company strong in its own way. "Google's competitive advantage is it knows what you are searching for. Twitter knows what is on your mind right now, and Facebook is more of a static picture of who a particular person is and what he or she likes."

RESOURCE: http://www.technewsworld.com/story/72277.html

Facebook Security Improvements Require a Bit of Digging

Being a social networker doesn't necessarily mean a person is tech-savvy, and that can be a problem when it comes to how Facebook handles security. The site offers a new feature that improves its HTTPS setting for example, but to benefit from it, users are required to know that the setting exists -- or that HTTPS exists, for that matter -- as well as how it works and what effects it will have on them.

Facebook has introduced a number of security improvements aimed at better safeguarding users' privacy. These enhancements came a day after Sophos published an open letter asking the site to tighten up its security.

By all accounts, Sophos, which did not return TechNewsWorld's call, was not impressed. Not that Facebook hastily revamped its controls because of Sophos -- as it said in a blog post, it announced these tools were coming during President Obama's White House Conference on Bullying Prevention last month.

Before considering whether Sophos is being too hard -- or not hard enough -- on Facebook, a look at the changes is in order.
Security Upgrades

For starters, Facebook has revamped its Family Safety Center, seeding it with more in-depth articles for parents and teens, videos on safety and privacy, and other resources. Soon to be unveiled are a free guide for teachers, written by safety experts Linda Fogg Phillips, B.J. Fogg and Derek Baird.

Facebook also unveiled a new social Reach More Customers with Live Chat - Free Whitepaper reporting tool that allows people to notify members of their community about items they consider dangerous or otherwise don't like. This tool will be able for its Profiles, Pages and Group sections.

It is also introducing two-factor authentication to prevent unauthorized access to an account. If the feature is activated, Facebook will ask for a code anytime a user tries to log on from a new device.

Facebook is also enhancing its HTTPS security option, so that after a member is finished using a non-HTTPS application on the site, the session will automatically revert to HTTPS.

Sophos found the improvements lacking, according to news accounts, which is understandable from its perspective: Facebook didn't even touch the company's main complaint: Most users don't even realize that HTTPS is an option. Sophos called for it to be turned on by default.

Sophos also asked that Facebook cease sharing information without users' express agreement and not assume that whenever a new feature is added that users want it automatically turned on.

Furthermore, it asked that only vetted and approved third-party developers be allowed to publish apps on the Facebook platform.

"With over one million app developers already registered on the Facebook platform, it is hardly surprising that your service is riddled with rogue applications and viral scams," it said in its open letter.
Easy to Be Hard

One issue Sophos didn't mention was the complexity of Facebook's privacy controls. The site did a major overhaul of these after one of the periodic outcries over its privacy policies. Apparently, though, the system of controls is still very complex -- judging from a recent glitch.

Facebook reportedly sent email notifications to several users who had opted not to receive them. The event raises a worrisome question: If even Facebook can punch the wrong button on user settings, how many consumers are doing so?

A look at the average end-user is imperative for any security initiative, especially one on a site that is as widely used as Facebook, said Eloqua Chief Privacy and Security Officer Dennis Dayman.

"The end-user typically is not smart enough -- nor should be -- to act as a trained security or privacy person to understand the multiple controls Facebook is giving them," he told TechNewsWorld. "Many of the users within Facebook are young go-getters who just want to share their lives with their friends and don't give a second thought as to how they are using the system."

This attempt at providing security controls for customers is still not what's needed to be in line with many other SaaS product when it comes to default settings for the end-user, maintained Dayman.

Essentially, users are required to know that the HTTPS setting exists -- or that HTTPS exists, for that matter -- as well as how it works and what effects it will have on them, he said. "To make matters worse, in my opinion, this is just putting a band-aid on a more serious problem that will continue to [grow] if the true fix is not implemented -- proper privacy controls."

It is good to see Facebook moving toward giving end-users additional security controls, Dayman allowed. However, hijacking of accounts -- which is what one of its improvements focuses on -- is not the biggest security problem facing Facebook.

"In many cases over the past year, the biggest issue is how end-user data is used by Facebook, their partners, and other third parties -- either with permission or without permission," he said. "It's important that there be an industry privacy default standard that works to protect the average Facebook user, as they typically don't know much about privacy controls."

Also, it's important to ensure that Facebook itself is adhering to users' wishes in the first place, added Dayman, and not altering the privacy settings without their knowledge.

RESOURCE: http://www.technewsworld.com/story/72308.html?wlc=1303547783

Chrome OS Subscriptions: (Possibly) A Step Forward

It's probably no secret that I'm a complete fanboy of Google's Chrome OS. I went from splitting my time between a desktop and laptop to almost exclusively using my CR48 all the time, as my other machines gather dust. I've blogged about my CR48 before (and intend to again), but this is about something different: what could possibly be the future of Chrome OS.

According to The Chrome Source, Google is thinking about releasing Google Chrome OS to the world through contracts, where users pay a monthly fee for subsidized hardware. That's right, almost exactly what we have in place for our cell phones now. The story references "$10-$20 a month" as a subscription service, and would possibly include some internet (the CR48 comes with a 3G antenna and Verizon service), tech support from Google, updates, and hardware refreshes (!) when Google released them.

These are of course just rumors, but I will admit I was instantly blind with rage. I was on Twitter in seconds, and only the CR48's lack of a caps lock kept me from screaming my dismay and anger to any and all who would hear. The idea of signing my soul into another 2 year contract made my blood boil. You could buy the hardware outright if you wanted to (much like unsubsidized phones), but the whole thing seemed like a money making ploy by Google to rope in customers, and make them pay for years to come.

Thankfully, some of the calmer, wiser members of my twitter stream responded to my vitriol, and it caused me to sit back and take a breath, and approach this whole thing from another angle: Software as a Service (SaaS)

Google is in a unique position. Chrome OS is Linux, true. But it's a condensed, speedy little flavor, one that doesn't require much for system resources and is mostly hidden from the user. The front end is just a browser: there's no "My Computer" or "Home" analogue (though you can get there if you really want); it's like having Google's Chrome browser as the entirety of your computing experience.

The oddest part is that it really works. I'll admit, it was awkward at first. The CR48 did little to make me settle my unease, with its initially quirky touchpad and odd hotkeys (and no caps lock? How was I going to win the internet?!). But if your day-to-day computing is handled primarily on the internet, you'll find a wealth of sites that act just like the programs you're used to, or access applications that run through a browser.

It took some acclimation, but now I feel awkward sitting down at the Windows machine I use at work -- an odd transition. For the first time in a long time, I feel like I'm using an operating system that's easy, intuitive, and just works, will being inexpensive. It's complicated enough if you want to drill down into the Developers section, but you don't need to. It's got something for everyone.

Back to the Software as Service angle: part of the The Chrome Source's story references Google Music, too. So, what if this 10-20 bucks a month included Music plus maintenance, pay-as-you-go internet, a new laptop to cover hardware refreshes, tight integration with Google's services, and any maintenance? I'll tell you what: it'll sell like hotcakes. For good reason, too: It's an amazing pitch and everyone wins.

I imagine a world where I pay 20 bucks a month, and never have to worry about my computer being obsolete as soon as I walk out of the store, because I know I'm getting the next iteration of the hardware as soon as it comes out. I imagine Google fights wireless providers and wins me competitive rates for 3G service on the laptop in my area, so that I can finally put an end to my reliance on home-based internet. I imagine a world where I can hit a web-based store for applications, and not worry about whether it's in stock or if it'll work with my chosen OS.


RESOURCE: http://news.yahoo.com/s/pcworld/20110421/tc_pcworld/chromeossubscriptionspossiblyastepforward;_ylt=Aue.5P.S7gUOVq.coDpugur6VbIF;_ylu=X3oDMTNrbzNhbm92BGFzc2V0A3Bjd29ybGQvMjAxMTA0MjEvY2hyb21lb3NzdWJzY3JpcHRpb25zcG9zc2libHlhc3RlcGZvcndhcmQEcG9zAzEEc2VjA3luX3BhZ2luYXRlX3N1bW1hcnlfbGlzdARzbGsDY2hyb21lb3NzdWJz

Amazon, eBay wage costly battle for shoppers


NEW YORK (Reuters) – When Amazon.com Inc and eBay Inc report quarterly results next week, investors will try to determine how well the e-commerce rivals' expensive fight for shoppers is paying off.

They will want to see if revenue is growing fast enough to justify the costs.

Amazon has been moving further from its traditional business selling physical goods online to take on tech rivals like Apple Inc and Google Inc in areas such as selling digital entertainment and storing data.

EBay is best known for its online auction website and PayPal, a payment system, but it has been making deals to compete more directly with Amazon, such as its $2 billion purchase in May of e-commerce services firm GSI Commerce. That deal is aimed at getting more retailers to sell to their customers using eBay.

Amazon's growth -- its sales nearly doubled between 2008 and 2010 -- has come at a cost: shrinking operating margin. Amazon has made no bones about it, warning investors to expect pressure on its profitability for some time yet.

The question for investors will be how much pressure.

"They (Amazon) are investing for the future and it's just a matter of how long this investment process will take," said Michael Koskuba, a senior portfolio manager at Victory Capital Management, which has owned Amazon stock since March 2009.

Amazon shares plunged 9 percent on January 27 when it reported a lower operating margin over the holiday quarter.

Amazon has been challenging rivals from Apple to Barnes & Noble Inc and many others with low prices on e-books, cheap shipping and offering customers the ability to store music on its servers in a "music locker."

A stellar sales performance by Amazon would mollify investors worried about the impact on profits, but a so-so performance could send shares down.

"If Amazon has a strong revenue quarter, people will be more willing to overlook margins," said Cowen & Co analyst Jim Friedland. "If they come in close to expectations (on sales) but margins are weaker, that would absolutely provoke a sell-off."

Ultimately, revenue will be the barometer of how well Amazon is doing at fending off a resurgent eBay.

"Revenue reflects how much market share they still have to gain," said BGC Partners analyst Colin Gillis.

On average, Wall Street analysts expect Amazon to report a first-quarter profit of 61 cents per share on $9.52 billion in sales, down from 66 cents a year earlier, according to Thomson Reuters I/B/E/S.

They expect eBay's profit to come to 46 cents per share on revenue of $2.48 billion, compared to 42 cents per share a year earlier.

For a graphic comparing Amazon and eBay's revenue growth, see: http://r.reuters.com/nuj29r

SCRUTINY OF EBAY'S AUCTION SITE

Investors will most likely be swayed by how much merchandise is sold on eBay's auction site as well as the number of new PayPal accounts.

But one analyst said eBay would probably only get punished for weakness, rather than rewarded for strength.

"If eBay falls short, it's more about stronger than expected competition from Amazon, but if it rises more than expected, it's more about the (better) overall economy," Cowen's Friedland said.

Friedland is expecting gross merchandise volume, a closely watched measure of the total value of goods sold on eBay's marketplaces, to be up 6 percent increase, excluding vehicles.

PayPal has led the company's revenue growth for years, while its marketplaces unit has matured. PayPal accounted for just over one third of sales last year but its revenues rose 23 percent, while the marketplaces business sales were up only 8 percent.

Amazon shares trade at a 2011-earnings-to-price multiple of 55, far above most store chains as well as eBay, Apple and Google, suggesting the stock has downside.

EBay shares trade a future earnings to price ration of 16.4 and analysts say that means it may have more upside than Amazon's if its results impress investors. They have slipped 10 percent since hitting a yearly high in February.

"EBay is coming back. If you want e-commerce exposure, buy eBay." BCG's Gillis said.

http://news.yahoo.com/s/nm/20110421/wr_nm/us_amazon_ebay;_ylt=ArBt9n4IDvdVRhpOTTpORQ76VbIF;_ylu=X3oDMTJsdGl1NmdyBGFzc2V0A25tLzIwMTEwNDIxL3VzX2FtYXpvbl9lYmF5BHBvcwMzMgRzZWMDeW5fcGFnaW5hdGVfc3VtbWFyeV9saXN0BHNsawNhbWF6b25lYmF5d2E-

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