Quotulatiousness

January 10, 2013

Recapping the awful legal conditions for Ontario wineries

Filed under: Bureaucracy, Business, Cancon, Law, Wine — Tags: , , — Nicholas @ 09:44

In the latest issue of Ontario Wine Review, Michael Pinkus explains why the outcome of the last provincial election dashed a lot of hopes in the Ontario wine industry:

Give an Ontario winery the chance to vent its spleen, especially about the recent provincial election and the future of the wine industry in the province, and you can sit back, pour a glass and listen to what has been described as “years of frustration”. Ontario remains one of the most backward places to make and sell wine and the rules and regulations are just so 1920s (the decade our monopoly was formed). One of the most telling problems about our system is how many winery principals are afraid to go on the record with their comments. “I will ask to remain anonymous as quite frankly I am afraid of LCBO backlash. We are spending more and more time getting to know the LCBO system [as one of the only ways to grow our business] … and I am sure with one phone call the buyers will drop us … without the LCBO we are screwed.” Now, you would think we were discussing selling forbidden information in communist Russia or talking against the state in Stasi-controlled Cold War Germany, instead of discussing election results in a “free” country like Canada. [. . .]

“We are definitely one of the worst regulated wine industries in the world. No other jurisdiction has supply-managed grapes and government-owned monopoly distribution (a system designed to fast-track imported wine into Ontario). In fact, I am hard pressed to think of any other industry in Canada that has this type of anachronistic regulatory burden. Off the top of my mind, a list of products more dangerous than 100% grown Ontario wine that are less regulated: hunting rifles, cigarettes, pseudoephedrine, ATVs, fast food, pointy sticks, etc.” (AWP)

So what can you as a consumer do about this situation? First of all, you can of course become more informed, look into why you can’t order wines from other provinces, question, and why you can’t buy local wines at wine shows or farmers’ markets. Find out why wineries are limited to where they can sell their wines and why only a handful of wineries are making money hand-over-fist because of the ability to blend foreign wine with domestic wine (yet over 98% of wineries cannot use that practice) and why those same wineries can sell wine in off-site stores, while smaller un-grandfathered post-1993 wineries struggle to sell wines in one of three places: their cellar door, restaurants and the restrictive LCBO. Many wineries won’t go on the record against the biggest wine buyer in Ontario (so much for free speech).

[. . .]

Problem One are direct sales to restaurants and other licensee holders (banquet halls, etc). One AWP says OMAFRA (Ontario Ministry of Agriculture, Food and Rural Affairs) puts ridiculous regulations in place. “If I sell a bottle of wine at the winery for $10.00 (including all taxes etc), I get to keep $7.55 of that. If I deliver that wine to a restaurant, I get to keep $4.03, rather than $7.55. Although LCBO has not touched that bottle, I have to pay the equivalent of LCBO warehousing charges. This overhead is not warranted as cost recovery by LCBO, as its only responsibility is the audit of winery reports.”

Remember the LCBO had nothing to do with the sale, yet it makes money on it.

Problem Two is that market share is actually declining. According to numbers obtained by the Winery and Grower Alliance of Ontario (WGAO), Ontario’s market share of wine, in its own market place, is actually declining — although an agreement made years ago stated that the LCBO would work towards a 50% target for Ontario market share compared with imported wine. The numbers show a different story. In 2010/2011, imports had 61% of the market, while Ontario had only 39%, of which 29% were International-Canadian blends (the old Cellared in Canada) … leaving Ontario VQA wine (100% Ontario product) with a measly 10% (WGAO newsletter — August 2011) … Ontario is losing ground in its own market — and that’s not because of low quality wines, that’s because access to market is curbed. Says one winery principal on the subject: “The present situation is choking the wine industry in Ontario” while another says, “it is very apparent that the LCBO is unable or not interested in growing the VQA wine industry.”

January 9, 2013

The root problem with all self-help programs

Filed under: Books, Business, Health, Media — Tags: , , , — Nicholas @ 10:26

In New York magazine, Kathryn Schulz explains why self-help programs are so popular … and why they are so difficult for most of us:

In The Age of Anxiety, W.H. Auden observed that we human beings never become something without pretending to be it first. The corollary is more prosaic but, regrettably, at least as true: We humans never become most of the things we pretend we will someday be. Nevertheless, last Monday, you and I and several billion other incorrigible optimists raised our glasses and toasted all the ways we will be different in 2013.

It’s easy to understand why we want to be different. We are twenty pounds overweight; we are $20,000 in debt; we can’t believe we slept with that guy; we can’t believe we didn’t. What’s harder to understand is why transforming ourselves is so difficult. Changing other people is notoriously hard; the prevailing wisdom on that one is Don’t hold your breath. But it’s not obvious why changing oneself should present any difficulty at all. And yet, demonstrably, it does.

The noted self-help guru Saint Augustine identified this problem back in the fourth century A.D. In his Confessions, he records an observation: “The mind gives an order to the body and is at once obeyed, but when it gives an order to itself, it is resisted.” I cannot improve upon Augustine’s insight, but I can update his examples. Say you want to be skinny. You’ve signed on with Weight Watchers, taken up Zumba, read everything from Michael Pollan to French Women Don’t Get Fat, and scrupulously recorded your every workout, footstep, and calorie on your iPhone. So whence the impulsive Oreo binge? [. . .]

This is where the cheerfully practical and accessible domain of self-help bumps up against one of the thorniest problems in all of science and philosophy. In the 1,600 years since Augustine left behind selfhood for sainthood, we’ve made very little empirical progress toward understanding our own inner workings. We have, however, developed an $11 billion industry dedicated to telling us how to improve our lives. Put those two facts together and you get a vexing question: Can self-help work if we have no idea how a self works?

January 7, 2013

Discounting for total political dysfunction

Filed under: Business, Economics, Government, USA — Tags: , , , , , — Nicholas @ 10:30

The Economist reports on last week’s “deal” in Congress and why the markets are still able to function in spite of the almost unprecedented level of political uncertainty:

Markets now live in the policy equivalent of Beirut in 1982. They have adjusted to perpetual political dysfunction. Over the last eight weeks, as the fiscal cliff talks stumbled, revived, collapsed, then came to life again, market movements were surprisingly narrow, and much of them could be explained by tax considerations as investors prepared for higher capital gains and dividend rates. The sang froid perplexed many of us who follow the policy process for a living and knew how high the stakes were. But perhaps we were too close to it. You can steep yourself in the intricacies of political coalitions, the electoral calendar, the makeup of the executive, senate and house, the interaction of permanent and temporary fiscal policy and such arcana as reconciliation, filibusters and blue slips, and yet still not know how to model the outcome. The fiscal cliff perfectly illustrated this: the people closest to the process didn’t know any better how it would end than those reading the newspapers, or not reading the newspapers, for that matter. There were just too many moving parts.

Richard Bookstaber once attributed the evolutionary success of the cockroach to coarse decision rules: it ignores most of the information around it and responds only to simple signals. Investors do something similar when confronted with hopeless complexity. They boil it down to a binary question: disaster/no disaster. Then they ignore all the idiosyncratic inputs and ask: what does experience suggest the probability of disaster is? Four times in the last two years, politicians went up to some do-or-die deadline without going over: in December, 2010, when the Bush tax cuts first came up for expiration; in April, 2011, when the federal government nearly shut down for lack of discretionary spending authority; the following August, when Treasury was days away from hitting the hard debt ceiling; and December, 2011, when the payroll tax cut first came up for expiration. In each case, one side, or both blinked; tax rates never went up, the government never shut down, and Treasury did not stop paying bills, much less default. It was, arguably, a better record than in 1995-96 when the federal government shut down twice and Bill Clinton threatened to suspend social security payments if Newt Gingrich’s Republicans didn’t raise the debt ceiling. Ignore the specifics of the latest episodes, and the logical conclusion is that despite their differences, both sides have powerful incentives to avoid disaster, so they will.

And who are the policy experts to say otherwise? For all the twists and turns, the cliff negotiations ended up where the median market participant a few months ago assumed they would: with a short-term fix and the remainder stuffed in a can and kicked down the road.

What’s that odd whistling sound coming from Wall Street?

January 3, 2013

Rhode Island’s 38 Studios the new poster child for crony capitalism

Filed under: Business, Gaming, Government, Media, Technology — Tags: , — Nicholas @ 11:14

The 2012 bankruptcy of Rhode Island-based video-game developer 38 Studios isn’t just a sad tale of a start-up tech company falling victim to the vagaries of a rough economy. It is a completely predictable story of crony capitalism, featuring star-struck legislators and the hubris of a larger-than-life athlete completely unprepared to compete in business.

Former Boston Red Sox pitcher Curt Schilling, an iconic figure in New England after anchoring a historic playoff comeback which ended a legendary 86-year title drought, founded 38 Studios near the end of his baseball career in the hopes of becoming a big shot in the intensely competitive multi-player gaming world.

Since 2006, Schilling invested millions of his own fortune into 38 Studios, and with the self-assured bravado he exhibited as a major league baseball player, set out to find investors to infuse his company with the roughly $50 million needed to complete 38 Studios’ first game. Although Schilling is the kind of local legend who could get a meeting with every venture capitalist in New England, Massachussets VCs passed on 38 Studios. WPRI-TV’s Ted Nesi reported that one such potential investor said “it would have taken a lot of babysitting to do a deal with Schilling because he was inexperienced and the management was inexperienced.”

Enter Gov. Donald Carcieri (R-R.I.), term-limited and searching for a legacy after presiding over one of the worst state economies in the U.S., featuring long spells of double-digit employment and frequent last-place finishes in rankings of business friendliness. In a classic spasm of “do something, anything” government desperation, Carcieri made it his mission to lure 38 Studios from its headquarters in Maynard, Massachusetts to Rhode Island.

Using his bully pulpit as both governor and chairman of the Rhode Island Economic Devlopment Corporation (RIEDC), a quasi-public agency whose mission is to promote business in the state, Carcieri pushed hard for 38 Studios to receive a $75 million taxpayer-guaranteed loan.

Each loan guarantee must be approved by the Rhode Island legislature, and when the votes were cast in 2010, only one lawmaker voted against it. Rep. Bob Watson (R-Greenwich) noted “a lot of red flags” in a “very risky” deal that was “too fast, too loose, and frankly, a scandal waiting to happen.” Watson added “more often than not, politicians are very poor when it comes to making business decisions.”

Irish newspapers want to be paid when you link to them

Filed under: Business, Europe, Media — Tags: , , , , — Nicholas @ 09:20

Ireland is an odd place, if this little brainstorm from their newspaper industry is any indication:

This is not a joke.

I have started with that clarification, because as you read this you will find yourself asking “Is this some kind of a joke?” I thought I would be helpful and put the answer right up at the start, so you can refer back to it as often as you require.

This year the Irish newspaper industry asserted, first tentatively and then without any equivocation, that links -just bare links like this one- belonged to them. They said that they had the right to be paid to be linked to. They said they had the right to set the rates for those links, as they had set rates in the past for other forms of licensing of their intellectual property. And then they started a campaign to lobby for unauthorised linking to be outlawed.

These assertions were not merely academic positions. The Newspaper Industry (all these newspapers) had its agent write out demanding money. They wrote to Women’s Aid, (amongst others) who became our clients when they received letters, emails and phone calls asserting that they needed to buy a licence because they had linked to articles in newspapers carrying positive stories about their fundraising efforts.

These are the prices for linking they were supplied with:

1 – 5 €300.00
6 – 10 €500.00
11 – 15 €700.00
16 – 25 €950.00
26 – 50 €1,350.00
50 + Negotiable

They were quite clear in their demands. They told Women’s Aid “a licence is required to link directly to an online article even without uploading any of the content directly onto your own website.”

The rational response here is to honour their request … by pretending they’ve dropped off the internet altogether and never linking to any of the Irish newspaper websites.

January 2, 2013

The corporate welfare pork in the fiscal cliff negotiations

Filed under: Business, Government, USA — Tags: , , , , — Nicholas @ 09:57

As widely expected, Congress did finally put something to a vote to “save” the country from going over the fiscal cliff. And as everyone should have expected, even a bill to “save” the country was still amply provided with pork for certain corporations:

Throughout the months of November and December, a steady stream of corporate CEOs flowed in and out of the White House to discuss the impending fiscal cliff. Many of them, such as Lloyd Blankfein of Goldman Sachs, would then publicly come out and talk about how modest increases of tax rates on the wealthy were reasonable in order to deal with the deficit problem. What wasn’t mentioned is what these leaders wanted, which is what’s known as “tax extenders”, or roughly $205B of tax breaks for corporations. With such a banal name, and boring and difficult to read line items in the bill, few political operatives have bothered to pay attention to this part of the bill. But it is critical to understanding what is going on.

The negotiations over the fiscal cliff involve more than the Democrats, Republicans, the middle class and the wealthy. The corporate sector is here in force as well. One of the core shifts in the Reagan era was the convergence of wealthy individuals who wanted to pay less in taxes — many from the growing South — with corporations that wanted tax breaks. Previously, these groups fought over the pie, because the idea of endless deficits did not make sense. Once Reagan figured out how to finance yawning deficits, the GOP was able to wield the corporate sector and the new sun state wealthy into one force, epitomized today by Grover Norquist. What Obama is (sort of) trying to do is split this coalition, and the extenders are the carrot he’s dangling in front of the corporate sector to do it.

Most tax credits drop straight to the bottom line — it’s why companies like Enron considered its tax compliance section a “profit center”. A few hundred billion dollars of tax expenditures is a major carrot to offer. Surely, a modest hike in income taxes for people who make more than $400k in income and stupid enough not to take that money in capital gain would be worth trading off for the few hundred billion dollars in corporate pork. This is what the fiscal cliff is about — who gets the money. And by leaving out the corporate sector, nearly anyone who talks about this debate is leaving out a key negotiating partner.

Oh, this is ironic…

Filed under: Business, Cancon, Media, Wine — Tags: , , — Nicholas @ 09:01

Several years ago, I got the only takedown notice I’ve ever received. The person objecting to me posting a short quotation of hers (with full attribution and link to the original) is now in the news herself:

An Ottawa wine writer used reviews from other writers on her website without properly crediting them. And as if that’s not ripe enough, a U.S. online wine magazine says she requires some wineries to buy a subscription to her website before she’ll review their wines.

Call it a tempest in a wine bottle. Writer Natalie MacLean has uncorked a debate about journalism etiquette and ethics online and touched off an oenophilic flap that’s produced underlying acidity and a bitter aftertaste in the usually genteel subculture.

“It’s all very tawdry,” says wine writer Tony Aspler. “The wine writers’ community is very close and collegial. To have someone behave this way, to take reviews and not attribute properly, it’s not done.”

MacLean, who writes at nataliemaclean.com, says she was surprised when Michael Pinkus, president of the Wine Writers Circle of Canada, objected to her use of others’ reviews. She got legal advice, she says, and has now gone back through past postings to fully attribute the reviews. She denies that wineries must pay to subscribe to her site to get reviewed.

“It’s been extremely painful,” says MacLean, named the World’s Best Drink Journalist in 2003 at the World Food Media Awards. “I’m more than happy to discuss the issues, to focus on the facts, but this has gone well beyond that. There’s been a lot of personal attacks. You can look for yourself on the blogs.”

So the person who objected to me quoting her was actually engaged in ripping off her fellow wine writers without attribution? That made my day.

December 31, 2012

Railroads see traffic boom as pipelines are delayed

Filed under: Business, Economics, Railways, USA — Tags: , — Nicholas @ 12:53

The increase in railroad traffic from handling shipments of shale oil is having a very positive effect on the rail companies’ bottom lines:

Energy companies behind the oil boom on the Northern Plains are increasingly turning to an industrial-age workhorse — the locomotive — to move their crude to refineries across the U.S., as plans for new pipelines stall and existing lines can’t keep up with demand.

Delivering oil thousands of miles by rail from the heartland to refineries on the East, West and Gulf coasts costs more, but it can mean increased profits — up to $10 or more a barrel — because of higher oil prices on the coasts. That works out to roughly $700,000 per train.

The parade of mile-long trains carrying hazardous material out of North Dakota and Montana and across the country has experts and federal regulators concerned. Rail transport is less safe than pipelines, they say, and the proliferation of oil trains raises the risk of a major derailment and spill.

Since 2009, the number of train cars carrying crude hauled by major railroads has jumped from about 10,000 a year to a projected 200,000 in 2012. Much of it has been in the Northern Plains’ Bakken crude patch, but companies say oil trains are rolling or will be soon from Texas, Colorado and western Canada.

December 23, 2012

China’s rare earth monopoly bid goes smash

Filed under: Business, China, Economics, Technology — Tags: , , — Nicholas @ 11:20

Remember the headlines from a few years back, when China was the source of a disproportional amount of the rare earth required for many of our modern electronic toys like iPhones and hard drives and such? China’s ham-handed attempt to constrain supply and jack up the prices has signally failed:

For I’ve been saying for years now that this “China will control all the rare earths” thing is nonsense and so it has turned out to be: nonsense.

Not that it hasn’t tried to control it all, mind, it’s just that it has failed. Failed for the reason we’d expect from communist state: its officials don’t understand free market economics. Specifically, it’s possible to successfully exercise monopoly power only if that monopoly is not contestable.

[. . .]

We were also continually reminded that China has 30 per cent of the world’s reserves: which simply shows that people don’t know what a reserve is. It’s not, as just about everyone assumes, the amount of something that’s available. It’s an amount whose exact location is known, which we’ve measured, drilled, sampled and baked a fluffy cake from – and which we can mine with current techniques AND with which we make a profit at current prices. Miss any of those steps (except maybe the cake) and it is not a reserve: it’s a resource. And resources of rare earths are vast: several are individually more common than copper for example. China has 30 per cent of the proven fluffiness, not 30 per cent of all that is available.

I will admit to a certain suspicion that the stories we heard were rather more a well-organised PR campaign to allow a couple of companies to suck subsidies out of the US taxpayer. Or perhaps even, given the conversation I had with a lobbyist about how to try to get on that gravy train, a plot to enrich lobbyists via companies paying to try to suck subsidies out of the US taxpayer.

So, now that I have finished puffing out my chest to “We Will Rock You”, on to what to economists is the blindingly obvious point of this story and what it means for the tech business. You might well have a monopoly: but it ain’t going to do you much good if, when you try to exercise your monopoly power, people come along and successfully contest your monopoly. We thus need to divide monopolies into two classes: those that are contestable and those that are not.

Back in 2010, I commented on Tim’s original debunking of the story:

So, if they have a monopoly on 95% of the world supply, why won’t it hold up? Because in spite of the name, they’re not as rare as all that … and there are substitutions that can be made for some or all of the current application needs. By restricting the supply and/or driving up the price, China will spur new competitors to enter the field and new sources of rare earths to be developed. In the short term, it will definitely create price increases (which, of course, will be passed on to the consumer), but in the medium-to-long term they will create a vibrant competitive marketplace which will almost inevitably drive the prices down below current levels.

Isn’t economics fascinating?

Goldbugs, behold the CombiBar

Filed under: Business, Economics, Europe, Germany — Tags: , , , , , — Nicholas @ 10:48

If you’re a big gold fan, you might want to look at the CombiBar, which is a gold wafer that can easily be broken down into one-gram portions:

Private investors in Switzerland, Austria and Germany are lining up to buy gold bars the size of a credit card that can easily be broken into one gram pieces and used as payment in an emergency.

Now Swiss refinery Valcambi, a unit of U.S. mining giant Newmont, wants to bring its “CombiBar” to market in the United States and build up its sales presence India — the world’s largest consumer of gold where the precious metal has long served as a parallel currency.

Investors worried that inflation and financial market turmoil will wipe out the value of their cash have poured money into gold over the past decade. Prices have gained almost 500 percent since 2001 compared to a 12 percent increase in MSCI’s world equity index.

[. . .]

The CombiBar is particularly popular among grandparents who want to give their grandchildren a strip of gold rather than a coin, said Andreas Habluetzel head of the Swiss business of Degussa, a gold trading company.

Other customers buy gold for security reasons.

“Demand is rising every week,” Habluetzel said. “Particularly in Germany, people buying gold fear that the euro will break apart or that banks will run into problems.”

H/T to Tyler Cowen for the link.

December 20, 2012

Wikipedia’s funding model

Filed under: Business, Media — Tags: , , — Nicholas @ 09:57

At The Register, Andrew Orlowski looks at the way Wikipedia is funded and explains why they don’t actually need to pester you for donations (but do anyway):

It’s that time of year again. As the Christmas lights go up, Wikipedia’s donation drive kicks off. Wikipedia claims that the donations are needed to keep the site online. Guilt-tripped journalists including Heather Brooke and Toby Young have contributed to Wikipedia in the belief that donations help fund operating costs. Students, who are already heavily in debt, are urged to donate in case Wikipedia “disappears”.

But what Wikipedia doesn’t tell us is that it is awash with cash — and raises far more money each year than it needs to keep operating.

Donations are funding a huge expansion in professional administrative staff and “research projects”. Amazingly, this year for the first time Wikipedia — the web encyclopaedia anyone can edit — has even found the cash to fund a lobbyist.

All this has been met with dismay by the loyal enthusiasts who do all the hard work of keeping the project afloat by editing and contributing words — and who still aren’t paid. For the first time, Wikipedians are beginning to examine the cash awards — and are making some interesting discoveries.

First, let’s have a look at the finances.

December 19, 2012

Exiting gracefully from Instagram

Filed under: Business, Media — Tags: , , , , , — Nicholas @ 00:02

Lots of folks are furious about Instagram’s recently announced changes to their terms of service. If you’re an Instagram user and don’t want to sign up for the changed TOS, here’s Roberto Baldwin‘s recent Wired How-To on rescuing your Instagram photos and closing your account:

First you’ll want to download all of your photos. Instaport will download your entire Instagram photo library in just a few minutes. Currently the service only offers a zip file download of your photos, although direct export to Flickr and Facebook are in the works.

Once the photos are downloaded, you can upload them to another photo service. Some of the Gadget Lab staff is fond of the new Flickr app and service.

After you’ve removed your photos from Instagram, you can quickly delete your account and pretend you’ve never even heard of Lo-Fi filter.

But once you delete your account, that’s it. Instagram cannot reactivate deactivated accounts and you will not be able to sign up for Instagram later with the same account name.

H/T to Nick Packwood for the link.

Update: Charles Cooper at CNET News:

From the outset, let’s note a couple of points that ought to be abundantly clear to anyone watching the unfolding controversy about the upcoming changes to Instagram’s terms of use.

A) Instagram — and thus by definition, Facebook, the site’s corporate parent — is entirely within its rights to change the terms of use governing how photos uploaded by people using the service get used.

B) Facebook’s management is comprised of incredibly smart folks.

Given that A and B are true, the powers that be who are running the company must either be amazingly tone deaf or crazy as loons.

It’s obviously not the latter, so we’re left with the conclusion that the people at the top, so impressed by the sound of their own voices, have lost touch with the people who helped turn them into gazillionaires — in other words, the users.

December 9, 2012

Verizon attempts to patent creepy targeted ad delivery technology

Filed under: Business, Media, Technology — Tags: , , — Nicholas @ 11:02

Verizon wants your TV to carefully observe you so it can deliver ads tailored for whatever activity you might be doing:

The U.S. Patent Office has delivered a “non-final” rejection of a Verizon patent application for a controversial technology that would have served targeted ads to TV viewers based on what they might be doing or saying in front of their sets.

[. . .]

The patent in question has been the subject of intense media scrutiny since FierceCable uncovered it last week. Verizon’s somewhat laboriously titled the patent application “Methods and Systems for Presenting an Advertisement Associated with an Ambient Action of a Use.”

The application says the technology would be capable of triggering different advertisements depending on whether a viewer or viewers might be eating, playing, cuddling, laughing, singing, fighting or gesturing in front of their sets. Specifically, the patent covers technology that can serve ads “…targeted to the user based on what the user is doing, who the user is, the user’s surroundings, and/or any other suitable information associated with the user.”

Privacy? You don’t need that, because we need to sell you shit.

December 8, 2012

A Holiday Album ad

Filed under: Business, Economics, Humour — Tags: , , , — Nicholas @ 00:01

H/t to Daniel J. Mitchell for the link.

December 6, 2012

NZ court allows Kim Dotcom to sue for illegal spying

Filed under: Business, Law, Liberty, USA — Tags: , , , , — Nicholas @ 10:01

This could get interesting quickly:

Details of the top secret international spy agency ring known as Echelon will have to be produced after a new judgment in the Kim Dotcom case.

The internet tycoon was also cleared to pursue a case for damages against the police and the Government Communications Security Bureau in a judgment which has opened the Government’s handling of the criminal copyright case for its harshest criticism yet.

[. . .]

Chief high court judge Helen Winkelmann said the GCSB would have to “confirm all entities” to which it gave information sourced through its illegal interception of Dotcom’s communications.

She said her order included “members of Echelon/Five Eyes, including any United States authority”. The Echelon network is an international intelligence network to which New Zealand and the United States are members, along with Australia, Canada and the United Kingdom.

The judgment also recorded Dotcom’s suspicions he had been spied on at least six weeks before the GCSB admitted to doing so, and sought details as to whether others had been swept up in the illegal operation.

Update: Moved the video below the fold to stop it auto-playing any time someone visited the blog main page.

(more…)

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