Quotulatiousness

January 3, 2013

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…)

November 28, 2012

Is Ontario finally “grown up enough” for private wine stores?

Filed under: Business, Cancon, Law, Wine — Tags: , , , , — Nicholas @ 11:38

In the National Post, David Lawrason talks about the push for changes to Ontario’s Prohibition-era laws regarding the sale of wine in private stores:

The Wine Council of Ontario has flipped the switch on a website called www.mywineshop.ca that allows citizens to create their own virtual wine shop. It is a very bold and clever marketing/lobbying idea. And it is the first time an industry association has initiated a public campaign aimed at creating private wine stores in the province. Gutsy stuff.

In less than a week it has painted an appetite-whetting tapestry of what privatization might look like in Ontario, complete with store themes, stock selections and locations across the province as designed by its citizens. And it is giving the public a very direct way to lobby their local MPPs for change.

One of the big reasons the Ontario wineries and wine writers fear pushing too hard for this modernization and liberalization of our drinking law is that the KGBO LCBO has a long history of retribution against dissenters:

The other theme is fear of LCBO retribution. (Talk about “the elephant in the room”). Even our braveheart John Szabo remarked at the end of his piece that “I hope I don’t get put on an (LCBO) interdiction list for writing this”. An importing agent replying to John’s article said he really wanted to talk about the issue ‘off the record’ as he was concerned that being put on an interdiction list would put him out of business.

This fear of the LCBO, whether justified or not, is another compelling reason to re-think the government monopoly. The fear shouldn’t exist within an otherwise free and democratic society; but it does. I have been writing on wine for over 25 years and during that time I have been involved in thousands of conversations with wineries, importers and consumers on shortcomings of the current system. Only once did an individual agree to be quoted.

When your livelihood depends on access to a product controlled by a monopoly, you dare not get on the wrong side of the powers-that-be controlling that monopoly. They may not break legs or leave horse’s heads in the beds of critics, but they can directly freeze the critics out of their profession. An excellent way to limit dissent. Just the hinted threat can be enough to make a would-be critic decide to toe the line and shut the hell up.

November 27, 2012

Comparing Walmart to Costco

Filed under: Business, USA — Tags: , , — Nicholas @ 10:16

Megan McArdle explains why the facile comparison of the two big US retail firms does not make as much sense as people think:

One simply cannot have a discussion about Walmart’s wages without someone bringing up Costco. It seems to be de rigeur, like tipping your waiter, calling your mother on her birthday, and never starting your thank you notes with the words “Thank you”. So lets get it out of the way before the supper gong goes.

[. . .]

Costco has a more highly paid labor force — but that labor force also brings in a lot more money. Costco’s labor force, paid $19 an hour, brings in three times as much revenue as a Walmart workforce paid somewhere between 50-60% of that. (There’s a bit of messiness to all these calculations, because of course both firms have employees who don’t work in stores — but that’s the majority of their workforce, so I’m going to assume that the differences come out in the wash.)

This is not because Costco treats its workers better, and therefore gets fantastic productivity out of them, though this is what you would think if you listened to very sincere union activists on NPR. Rather, it’s because their business model is inherently higher-productivity. A typical Costco store has around 4,000 SKUs, most of which are stacked on pallets so that you can be your own stockboy. A Walmart has 140,000 SKUs, which have to be tediously sorted, replaced on shelves, reordered, delivered, and so forth. People tend to radically underestimate the costs imposed by complexity, because the management problems do not simply add up; they multiply.

One way to think about this is Thanksgiving dinner: how come you, who are capable of getting a meal on the table 364 nights of the year, suddenly find yourself burning things, forgetting the creamed onions in the microwave, and bringing the mashed potatoes to the table a half an hour late? Because when you’re cooking sixteen things instead of four, it is not the same as cooking four four-item meals. There are all sorts of complex interactions involving things like heating times and oven space, and adding more people to the problem, while probably necessary, itself multiplies the complexities.

The missing generation

Filed under: Business, Media — Tags: , , , — Nicholas @ 09:42

Chris Myrick posted a link to a Wall Street Journal article on differences among the age cohorts regarding shopping habits, pointing out that his (and my) generation didn’t even show up in the graphic:

Hmmm. We can tell the shopping habits of folks from age 18 up to 34, then from 55 upwards. I wonder why the invisible folks aged 35-54 didn’t qualify? Perhaps because their behaviour would ruin the message the article is trying to push?

November 26, 2012

End software patents

Filed under: Business, Law, Technology — Tags: , , , — Nicholas @ 11:15

Marginal Revolution writer and George Mason economics professor Alex Tabarrok argues for an end to software patents.

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