Archive for July, 2009
It's not nice to speak ill of the dead, even if they're very much alive and only dead in the business sense of the word.
Interview and discussion with Jeanne Branthover of the Boyden Global Executive Search.
LibreDigital , Inc. today announced that it has closed a $15 million Series B funding round led by new investor Triangle Peak Partners and existing investor Adams Capital Management.
It’s the classic story. Someone has a great idea, they to decide work with their friends, then there’s real money either owed or earned, and they don’t have a written agreement to help settle their differences — cue the tears. A startup called FairSoftware wants to help you avoid such disasters by creating a business and legal framework for early-stage projects. And this week, it added iPhone applications into the mix.
The Mountain View, Calif., company’s underlying idea is the same across platforms, whether you’re building software, writing a multi-author blog, or, now, building an iPhone app. In each case, if you’ve got a great idea, you can come to the FairSoftware site to find team members. To convince people to work with you, you give them “virtual stock” in the company, and that stock pays off in a share of the revenue when the money starts rolling in (hopefully).
Basically, this heads off the problem that during the early days of a cool project, there usually isn’t a legal structure — that comes later, once the project has transformed into an incorporated company. With FairSoftware, the legal protections are there from the very beginning, they’re what help you build a team and a project. And by offering virtual stock instead of money as a payment, a prospective entrepreneur doesn’t need as much capital to get going.
Behind the scenes, FairSoftware is the one handling the product distribution and the revenue, which it then divvies up among the team members according to the virtual stock. In the case of software and blogs, the company is already taking a 4 percent cut of revenue; chief executive Alain Raynaud says he isn’t doing this with iPhone apps yet, but is definitely looking at ways to make money from that channel too.
In the best case scenario, your project will become a serious business, and you’ll want to break free from FairSoftware’s system. Raynaud says FairSoftware offers a legal process that making it easy for teams to “graduate” into an incorporated company. That process has protections in place if there has been a falling out within the team, or if there have been other disputes or departures. For example, if a developer left the project, then FairSoftware’s contracts say the code still belongs to the team, but that developer still keeps his or her shares in the company. And if a company incorporates, those shares turn into real company ownership.
Reynaud isn’t saying too much about user or project numbers (FairSoftware launched at the TechCrunch50 conference last fall), except that the early reception to the iPhone program is positive, and that he’s been surprised by how many FairSoftware users want to start blogs focused on specific countries.
FairSoftware is self-funded.
Facebook’s legal woes just won’t stop coming. Last November a company called Leader Technologies, which makes business communcation tools, filed suit against Facebook alleging that the social network had infringed on a patent that “relates to a method and system for the management and storage of electronic information.” The case is still ongoing, and it sounds like it has some legs — earlier this week Facebook was ordered by a Magistrate Judge from the District of Delaware’s District Court to give Leader Technologies access to its entire source code. As reported at Law360, Facebook has until the end of this week to hand over a hierarchical map of the source, and has until August 21st to share its entire codebase with the company.
Of course, Facebook is going to fight tooth and nail against this, and is sure to appeal the ruling.
Facebook has given us the following statement regarding the case:
While we respect the magistrate judge’s opinion, we disagree with it on this point and plan to appeal. Generally, this suit is without merit and we will continue to fight it aggressively.
This isn’t the only legal battle Facebook is facing. It’s currently being sued by Power.com over issues related to data portability, as well as by multiple advertisers alleging click fraud.
You can view Leader Tech’s request to have Facebook reveal its code below:
Leader-v-FacebookLetterRequestingSourceCode-posted30-Jul-2009_2_ -
Thanks to Aditi Tuteja for the tip.
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Image search is an area of intense competition between Google, Yahoo, and now Bing. Today, Google Images added some search options to make it easier to filter a search by color, type (face, photo, clip art, line drawing), and file size.
Most of these filters were available before in advanced search, but now they are available in the left-hand column. (A similar option column was introduced to the main search page in May, 2009). You can choose more than one option to automatically narrow down your search. Another option Google could add is sorting by images with a Creative Commons license. It already does this in its advanced search options, but it is hidden there.
Yahoo and Bing have similar filtering options, Although Google’s color filter is the most advanced. It allows you to sort by 12 different colors, wheras Bing and Yahoo only let you sort by color or black-and-white images. Bing, however, does a better job with related searches, something Google is experimenting with in a slightly different way by actually trying to find And Yahoo has its own set of novel features in image search which Google doesn’t. You can compare the three with a search for “fruit” on Google Images, Yahoo Images, and Bing Images.
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The first Twitpocalypse was one of those events that you’re going to tell your children about one day. I remember where I was when it hit: On my way to Napa Valley with some friends as we heard sirens race by, likely signaling the end of the Twitter world as we knew it.
Okay, it didn’t end up being that bad. But it still was a pain in the ass for many third-party developers, especially the iPhone Twitter app developers, who had to wait in the App Store line like everyone else for their fixes to go through. And now it’s set to happen all over again!
A tweet today from the TwitterAPI account warned that the second Twitpocalypse was closer than people thought. Okay, most people probably didn’t realize that it could occur again, but it can, and it will, and it’s fast approaching.
The current estimate by the API team is that it will occur sometime in the next 60 days, probably at the end of September. They warn that it could happen sooner though.
So what does it mean, and why is it happening? Well, for those that don’t remember, the first Twitpocalypse occurred when the unique identifier for tweets hit 2,147,483,647 — the 32-bit signed integer limit. That number caused some third-party apps to start counting tweet identifiers as negative, screwing them up. This new Twitpocalpyse is similar, only it’s for the 32-bit unsigned integer value of 4,294,967,295.
In case you didn’t already realize it, the fact that this chasm between the two numbers was crossed so quickly once again shows that Twitter is growing very quickly. Though it’s not a 1 to 1 tweet-to-unique ID ratio, that the number will have doubled (an increase of over 2 billion) in just a few months is huge.
So what can you do to prepare yourself? Well the Twitter API team recommends developing your apps to use 64-bit integers, thus increasingly the number of tweets your app can recognize before it hits these integer walls.
Also, lock up the women and children.

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Ballmer expects Windows 7 to grab share from Apple In a bullish presentation to financial analysts today, Steve Ballmer promised Windows 7 PCs that would 'overturn the conventional wisdom that Apple has the coolest hardware'. He also described Apple's impact on Microsoft sales this year as 'a rounding error', saying that; "Apple's share globally ...
TechCrunch co-editor Erick Schonfeld appeared on Charlie Rose last night to discuss the Microsoft/Yahoo search deal alongside Steven Levy of Wired and Nick Wingfield of The Wall Street Journal.
The group talked about the initial deal Microsoft offered Yahoo last year to buy Yahoo outright, the complicated nature of this new deal, Microsoft Bing, Yahoo walking away from the search fight rather than engaging, how this was the worst of the deals that Microsoft had offered so far, the Bartz/Ballmer reaction, what this means for Microsoft versus Google now, and the possible antitrust implications of all of this.
Watch the part of the show that featured the discussion below.
And here’s the transcript:
CHARLIE ROSE: Microsoft and Yahoo! announced yesterday a partnership in the search and advertising business. Under the deal, Yahoo!`s websites will be powered by Microsoft new search engine, Bing. Yahoo! will get 88 percent of the ad revenue from searches on its sites for the first five years. With the partnership, the two hope to take on Google, which currently commands about 65 percent share of the U.S. market. The agreement follows Microsoft`s failed takeover bid for Yahoo! and shows the continuing importance it is placing on search.
Joining me now from Redmond, Washington, is Nick Wingfield of the “Wall Street Journal.” Here in New York with me, Steven Levy of “Wired” magazine and Erick Schonfeld, co-editor of TechCrunch blog. I am pleased to have all of them here.
Nick, tell me how this deal happened, first.
NICK WINGFIELD: It started last year with the CEO of Microsoft, Steve Ballmer, making an unsolicited bid for close to $48 billion to acquire Yahoo!. Never happened, Yahoo! resisted the offer. It fell apart.
Fast forward to about January. Yahoo! has a new CEO, Carol Bartz, and Microsoft and Yahoo! start talking about a more limited deal, not a full-blown acquisition, in which Microsoft basically take over the search operations, handle the search operations on Yahoo! in exchange for some value. And the deal went through all sorts of fits and starts, and finally arrived at the deal you described a moment ago.
All of this being designed to improve Microsoft`s fairly poor position in search right now, which is a highly lucrative market, the online advertising market that accompanies search, and one that Microsoft really has not had much success in on its own.
CHARLIE ROSE: Is this a good deal for just Microsoft or good deal for Microsoft and Yahoo!?
NICK WINGFIELD: Well, the shareholders of both companies seem to think it`s a better deal for Microsoft than it is for Yahoo! The stock of Microsoft went up a bit yesterday and up a bit today. Yahoo! is down.
One of the problems Yahoo! has is that they had sort of almost set expectation that they were going to get a big check, a multi-billion dollar check from Microsoft in exchange for a deal of this sort. And that didn`t end up happening. Instead, what Yahoo! is getting is very high percentage of the ad revenue from advertising sold on searches that Microsoft delivers. So, both parties argue that it`s better for Yahoo! to get this, because they`re getting more — a bigger chunk of the share of ad revenue on an ongoing basis, but there is no big upfront check, and that seems to disappoint people.
CHARLIE ROSE: So, what`s the judgment of people who are looking at it in terms of whether Yahoo! would have been better to take the original deal that Ballmer offered or take the deal they have now?
NICK WINGFIELD: Well, I don`t think there`s any question that Yahoo! shareholders would be better off if they had accepted the original $48 billion deal. I don`t know what Yahoo!`s latest market capitalization is, but they`re down a lot.
So, I don`t think Microsoft, though, regrets not acquiring all of Yahoo! I think they`re fairly happy with the position that they`re in. They also have managed to improve their own home-grown search engine, which is now called Bing, and have started to inch up a little bit in market share. So I think Microsoft probably comes out a little bit ahead here, but still, both parties argue that Yahoo! is going to thrive as well because they no longer have to invest in search, so they can be a lot more profitable.
CHARLIE ROSE: Is this going to work?
STEVEN LEVY: It has a lot of hurdles. I think the upfront money really isn`t the key to Yahoo! The key is, Yahoo! is disbanding their search team, their engineering, and disbanding the team which built their advertising engine to sell ads on search. Now, these happen to be some of the most important aspects of engineering at a company there. And really, if Yahoo! wants to be a top Internet company, it has to have the engineering chops to keep doing that.
So, it`s going to miss out on that. And it will save money by not hiring — having those people to pay, but those are the people you want in your company.
Also, this deal is a little complicated. Yahoo! actually is going to sell some of these ads to the premium customers. A lot of customers, those in the long tail, they just go on the website and buy the ads just straight there like you buy something from Amazon. But a big customer needs someone to work with them and tell them what words to buy. It`s very complicated in how much to bid, because these things are all done by bids. And Yahoo! is doing that part, and Microsoft has the technology, which means those people who work for Yahoo! are really going to have to go back and forth to Redmond and talk to a lot of people to be familiar with how that works there. So there`s a little complication in how they`re going to be able to do that, which is going to make it a little more difficult for Microsoft`s big task, which is to take on Google and build up its ad share to something beyond even what it has combined with Yahoo!
CHARLIE ROSE: Did Bing make a difference here at all, the fact that Bing has gotten — the Microsoft search engine has gotten good reviews?
ERICK SCHONFELD: I think Bing made a big difference, because Yahoo! was in a tough position. It was seeing market share eroding from the top, from Google, and now the prospect of market share erosion from the bottom, from Bing. Bing has only been out for two months, but it`s made a little bit of a gain in share, .4 percent. Is that going to last over time? Who knows. But Yahoo! didn`t want to find out. Right?
And the big problem here is that Yahoo! really — they kind of walked away from the most interesting fight on the Internet right now, which is search. And they handed it over to Microsoft for less than any of the previous deals that were on the table. The four real deals that were on the table going back to the $45 or $48 billion offer in February of 2008, the revised search deal that Microsoft offered, which included $8 billion to buy 16 percent of Yahoo! and $1 billion payment for the search part of the business. The Google deal that got squashed, that guaranteed $800 million in revenues.
This deal was the worst of all the deals. And as Steve mentions, the deal introduces a lot of complexity, right? So now you`re going to have Yahoo! sales people selling Microsoft`s search product. So Yahoo! sales people already have enough problem talking to Yahoo! engineers. Now they have to talk to Microsoft engineers. And what if something goes wrong? Who are they going to yell at? Are the Microsoft engineers going to like that, being yelled at by Yahoo! sales people?
CHARLIE ROSE: Nick, you`re in Redmond. What does this do for Steve Ballmer?
NICK WINGFIELD: Well, it gives him a real fighting chance in a market that he said is strategic to the company. They have about 8.4 percent market share on their own with Bing. With Yahoo!`s market share, they could go to 30 percent of shares — 30 percent of searches in the U.S., and that`s significant.
Now the question is, does it decline from there? Can they increase it? If they do that, you know, how much money do they make off of it? Because of course, Microsoft is losing money in its Internet search business right now. But they just want to gain the share. They argue once they gain the share, they get eyeballs. Search is a scale business, that they will start to improve the quality of the search, because they can do all sorts of things, make ads more relevant. And if they do that, they think they can have a flywheel effect and start really eating into Google`s share.
The other thing that this lets them do is, Google is not only strong in search with 65 percent plus share, but Google is also moving into these other areas that are quite threatening to Microsoft. They`re using their profits in search to get into operating systems, into online applications that are free, that threaten these cash-cow businesses like Office and Word and Excel. And they just recently announced that they`re going to be doing an operating system for laptops. They already have one for mobile phones. And I think Microsoft wants to gain share in search in part to help alleviate that threat.
CHARLIE ROSE: And what about the leadership of Yahoo!? Carol Bartz?
STEVEN LEVY: Well, she felt she had to do something. But I think in this case, by targeting the search team and taking it away, some people wonder whether that`s going to really take the glue, which keeps her portal together there.
The search that Yahoo! did had, you know, about three times the size of what Microsoft search, mainly because so many people come to Yahoo! and they search there. So it really was an opportunity for Yahoo! to grow out there and do more.
She says this is going to enable them to concentrate on the other things that they do. But having a very strong search team and engineering that comes with that search, and with the really complicated engineering you have to do to be able to sell ads on searches, that`s very complex. And you know, for reasons we can get into, it really helps if your share grows. Not having that, those engineers aren`t going to be able to filter through the rest of the company to help you do these other things there. If you look at the team now, gee, what are they going to do? It`s going to take well over a year for this to come to fruition with this deal there. So if I`m working as an engineer for Yahoo! now, what`s my future?
CHARLIE ROSE: That`s — and losing talent is the big issue so much, because they`re creating the new software and building on the old.
STEVEN LEVY: And who is one of the most talented people at Microsoft, the one they all talk about there, is Qi Lu, the guy who came from Yahoo!, and went to Microsoft. He`s now the big technology leader, the bright guy who is leading Microsoft search.
CHARLIE ROSE: All right. What about AOL? What`s going to happen to AOL?
ERICK SCHONFELD: So, I think AOL is a great example here, because you`ve got Tim Armstrong, who came from Google, who is now the new CEO of AOL, and he took what was really a hobbled company, and is taking it in a new direction, away from the sweet spot that Google or Yahoo! or Microsoft already dominate in. He`s hiring hundreds of journalists, which as you know from your Politico piece, that you know, they are very, very valuable assets. And is kind of creating — that`s just one part of his business — is creating this sort of new newsstand online. And is doing a lot of interesting things.
And so why didn`t Carol Bartz do that? Why didn`t she double down? You can make the argument that you know, ultimately she had to do something, because she doesn`t have Microsoft`s Windows money and she doesn`t have Google`s search money. So ultimately search is an expensive game and maybe she has to get out of that business, ultimately.
But Microsoft needs her search volume. Why not double down, invest in search, and get a better deal down the line? Or merge with AOL when they become public?
CHARLIE ROSE: Speaking of one final issue, anti-trust, Nick. Is Google worried about anti-trust ramifications of its market share? Will this deal be subject to anti-trust implications, questions?
NICK WINGFIELD: Well, Google is I think worried, yes, about their future in anti-trust. In this particular case of Microsoft and Yahoo!, they argue that together they have 30 percent of the market, compared to Google`s 65 percent. And so they think they are going to have a pretty strong case with the anti-trust regulators. They are definitely going to face some tough scrutiny. They`re prepared, I think, to really fight with Google, but it`s unclear what Google is going to do. There was some talk today at this Microsoft meeting I was at of Google employing sort of third-party advocacy groups to fight the deal. But Google really is the big gorilla here. So it`s a little challenging for them to make an argument that this is going to be anti-competitive. Google has…
(CROSSTALK)
STEVEN LEVY: There`s a really delicious irony here, because last year, when there was the threat of Microsoft buying Yahoo!, Google wanted to make a deal with Yahoo! for the search. It was not on the scale of this, and Microsoft complained about it, and said to the Justice Department, successfully argued that, hey, we can`t do this, because Yahoo! would end its search team. There would be less competition in there. Guess what?
CHARLIE ROSE: They`ll take over their search team. Yes.
Is there a feeling with the search — Bing getting good marks and now this deal, that Microsoft is back and that Microsoft can deliver a lot more than people, or may be much stronger than people assumed it was, say six months ago, when the effort to buy Yahoo! came to nothing?
NICK WINGFIELD: Well, there definitely is a feeling that they are on an upswing in terms of the quality of their products. Windows 7 is coming out, which they hope will erase the sort of disdain of Windows Vista, which was a very troubled operating system for them with some technical problems. Bing is doing well. They have done some innovative stuff in games. But they`ve also got some real challenges. For example, some people think that they have placed too much emphasis on search and neglected mobile phones. They have a pretty poor offering there. And Apple`s got the iPhone and others are doing very well in that category. So they`ve got some big challenges in other areas as well.
ERICK SCHONFELD: Microsoft no doubt is better off today in search than it was before. But we shouldn`t overestimate what their advantage is. Even if they have 30 percent of the search market share, they don`t have 30 percent of the revenues, because they`re giving 88 percent of that back to Yahoo!
CHARLIE ROSE: Exactly. Nick Wingfield, “Wall Street Journal” here. Erick Schonfeld from TechCrunch and Steve Levy from “Wired,” thank you all.
END
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Which countries are the worst greenhouse gas emitters? Now you can see for yourself on this handy Google Map created by a department of the UN and Google. The map shows changes in greenhouse gas emissions from 1990 to 2006. Green is good (a decrease in emissions) and purple is bad (an increase).
So who are the worst offenders? Topping the list is Sweden! The country has managed to increase its emissions by 110 percent over that time period. So much for Nordic purity. Following Sweden is Turkey (with a 103 percent increase) and Canada (with a 55 percent increase). Yes, Canada. What is it with these northern countries?
You’d think the U.S. would top the list, but it is actually only the tenth worst country with a 14 percent increase in emissions (still well within purple territory). It is kind of embarrassing that Russia is greener than we are. But at least we are better than Canada (and Sweden).
Or are we? The map itself lets you drill down into the data to find out. You can sort by industry, type of emission (CO2, CH4, N2O, etc), or year, and if click on a country it gives you a detailed breakdown of emissions by economic sector and other variables. For instance, over the 1990 to 2006 time span, Russia has actually seen a 29 percent decrease in emissions, but if you look at just 2006, Russia starts getting pretty purple, and rises to the No. 3 worst emitter. And the USA rises to No. 1.
Hey, we’re No. 1!

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