Quotulatiousness

September 16, 2012

Nebraska: same penalty for manslaughter and for operating a business without a license

Filed under: Bureaucracy, Business, Law, USA — Tags: , , — Nicholas @ 00:05

Nebraska sure is harsh on people who operate unlicensed businesses. Or they’re really soft on those who commit manslaughter:

The libertarian public-interest law firm Institute for Justice reports on one of the most insane, inane, and profane prosecutions in all-time memory.

Karen Hough is a long-time practitioner of “equine massage,” which supposedly is beneficial in all sorts of ways to the animals in question.

[. . .]

A few weeks later, she received a letter from Nebraska’s Department of Health and Human Services ordering her to “cease and desist” from the “unlicensed practice of veterinary medicine.” In Nebraska, continuing to operate a business without a license after getting a cease and desist letter is a Class III felony. So Karen could face up to 20 years in prison and pay a $25,000 fine. By comparison, that’s the same penalty for manslaughter in the Cornhusker State.

Nebraska isn’t a place that shows up in the news very often: I’ve posted nearly 5,000 entries here at the blog, and this is the first time I’ve needed to tag anything “Nebraska”.

September 11, 2012

Manufacturers may follow the music industry pattern

Filed under: Business, Law, Liberty, Technology — Tags: , , , , , — Nicholas @ 00:03

An interesting article in The Economist:

As an expert on intellectual property, Mr Weinberg has produced a white paper that documents the likely course of 3D-printing’s development — and how the technology could be affected by patent and copyright law. He is far from sanguine about its prospects. His main fear is that the fledgling technology could have its wings clipped by traditional manufacturers, who will doubtless view it as a threat to their livelihoods, and do all in their powers to nobble it. Because of a 3D printer’s ability to make perfect replicas, they will probably try to brand it a piracy machine.

[. . .]

As with any disruptive technology — from the printing press to the photocopier and the personal computer — 3D printing is going to upset existing manufacturers, who are bound to see it as a threat to their traditional way of doing business. And as 3D printing proliferates, the incumbents will almost certainly demand protection from upstarts with low cost of entry to their markets.

Manufacturers are likely to behave much like the record industry did when its own business model — based on selling pricey CD albums that few music fans wanted instead of cheap single tracks they craved — came under attack from file-swapping technology and MP3 software. The manufacturers’ most likely recourse will be to embrace copyright, rather than patent, law, because many of their patents will have expired. Patents apply for only 20 years while copyright continues for 70 years after the creator’s death.

[. . .]

In that, the record industry was remarkably successful. Today, websites and ISPs have to block or remove infringing material whenever they receive a DMCA takedown notice from a copyright holder — something that happens more often than actually justified. Google reckons that more than a third of the DMCA notices it has received over the years have turned out to be bogus copyright claims. Over a half were from companies trying to restrict competing businesses rather than law-breakers.

Rallying under the banner of piracy and theft, established manufacturers could likewise seek to get the doctrine of “contributory infringement” included in some expanded object-copyright law as a way of crippling the personal-manufacturing movement before it eats their lunch. Being free to sue websites that host 3D design files as “havens of piracy” would save them the time and money of having to prosecute thousands of individuals with a 3D printer churning out copies at home.

September 10, 2012

The non-romantic reality of a book tour

Filed under: Books, Business, Media — Tags: , , , — Nicholas @ 07:54

Poor Charles Stross has experienced one-too-many book tours. It’s so not conducive to anything like comfort or a normal life:

A book signing tour sounds romantic, but actually it’s not. It’s like one of those cheap package holidays in which you get to tour South America or Europe in seven days. Each day you have to get out of bed at dawn or earlier and head to the airport for another cavity search and economy-class ticket to a new city. When you arrive, a new guide meets you in, shovels you into their car, and then takes you on a whistle-stop tour of sights of the city. (On a tourist tour, it’s museums or monuments; on a signing tour, it’s bookstores, where you render the stock non-returnable by defacing it with your signature.) You might be allowed to dump your bag in a hotel room if timing permits. The hotel room will be luxurious and expensive and you will spend so little time awake in it that it seems like a cruel joke, because your time will be programmed so tightly you barely have a chance to eat. It is possible that you will be dragged in front of microphones or cameras to answer confused or confusing questions by journalists who haven’t read your book; then, each evening, you will show up at a bookstore where hopefully there will be an audience who will listen to you deliver a canned speech and/or reading and then buy books which you will then sign. And you will have to be nice to everybody, on pain of potentially not getting another tour (which might sound like a blessing in disguise until you work out what’s going to happen to your income thereafter). Finally, your head hits the pillow around 11pm — don’t forget to check in for tomorrow’s exciting anal probe and air-sickness theme-park ride! — for as much as five or six hours’ sleep.

But then, the nightmare thought: a book tour reality TV show…

September 7, 2012

“When I discover something surprising in data, the most common explanation is that I made a mistake.”

Filed under: Business, Economics, Government, Media — Tags: , , , — Nicholas @ 08:20

John Kay suggests you always ask how a statistic was created before you consider what the presenter wants you to think:

Always ask yourself the question: “where does that data come from?”. “Long distance rail travel in Britain is expected to increase by 96 per cent by 2043.” Note how the passive voice “is expected” avoids personal responsibility for this statement. Who expects this? And what is the basis of their expectation? For all I know, we might be using flying platforms in 2043, or be stranded at home by oil shortages: where did the authors of the prediction acquire their insight?

“On average, men think about sex every seven seconds.” How did the researchers find this out? Did they ask men how often they thought about sex, or when they last thought about sex (3½ seconds ago, on average)? Did they give their subjects a buzzer to press every time they thought about sex? How did they confirm the validity of the responses? Is it possible that someone just made this statement up, and that it has been repeated frequently and without attribution ever since? Many of the numbers I hear at business conferences have that provenance.

[. . .]

Be careful of data defined by reference to other documents that you are expected not to have read. “These accounts have been compiled in accordance with generally accepted accounting principles”, or “these estimates are prepared in line with guidance given by HM Treasury and the Department of Transport”. Such statements are intended to give a false impression of authoritative endorsement. A data set compiled by a national statistics organisation or a respected international institution such as the Organisation for Economic Co-operation and Development or Eurostat will have been compiled conscientiously. That does not, however, imply that the numbers mean what the person using them thinks or asserts they mean.

Jesse Kline: Consumers the biggest losers in Apple-Samsung battle

Filed under: Business, Law, Technology — Tags: , , , , — Nicholas @ 00:07

In the National Post, Jesse Kline points out that the grubby legal dispute between Apple and Samsung may end up hurting the consumer much more than either of the combatants:

Software is unique because it is covered under both copyright and patent law. Computer software is written in a human-readable language, called source code, that is then translated by the computer into something the machine can understand. Much like writing a book, or newspaper article, source code is automatically covered under copyright law.

But no one is alleging that Samsung copied Apple’s code. What Samsung was sued for was achieving the same outcome as Apple, even though it was done in a different way. In this literary world, this would be akin to someone being sued for violating the copyright on Harry Potter, just because they wrote their own story about a boy wizard.

Intellectual property laws are supposed to encourage innovation by allowing companies and individuals to profit off works that may have cost a significant amount of money to develop. Apple says it was undercut in price because its competitor simply copied its design. In actual fact, Android was cheaper to produce because it is based on the open source Linux operating system, which saved money compared to Apple proprietary system.

For its part, Samsung accuses Apple of resorting “to litigation over market competition in an effort to limit consumer choice.” It’s one thing for the legal system to protect new inventions and original works, but this is quite clearly a case of a company engaging in anti-competitive behaviour.

September 3, 2012

Volokh on the GOP “war on porn” platform plank

Filed under: Business, Media, Politics, USA — Tags: , , , , — Nicholas @ 12:46

At the Volokh Conspiracy, Eugene Volokh points out that aside from satisfying a checklist item for some constituencies, the GOP’s stated intention to crack down on pornography just doesn’t have a lot of benefits:

As we know, there’s lots of porn of all varieties out there on the Internet, including porn that might well be seen as offensive to “community standards” in at least one American state (the standard that would be applicable under the plurality view in Ashcroft v. ACLU (I) (2002), if prosecutors choose to bring a case in that state), or perhaps even under some “national community standard” (the alternative standard urged to varying extents by the other opinions in that case). In principle, the government might well be able to prosecute many American pornography producers and distributors under current obscenity laws.

[. . .]

So we have three possible outcomes:

(1) The U.S. spends who knows how many prosecutorial and technical resources going after U.S. pornographers. A bunch of them get imprisoned. U.S. consumers keep using the same amount of porn as before. Maybe they can’t get porn on cable channels or in hotel rooms any more, but that’s so twentieth century; instead, consumers will continue to be able to get more than they ever wanted on the Internet. Nor do I think that the crackdown will somehow subtly affect consumers’ attitudes about the morality of porn — it seems highly unlikely that potential porn consumers will decide to stop getting it because they hear that some porn producers are being prosecuted.

[. . .]

(2) The government gets understandably outraged by the “foreign smut loophole.” “Given all the millions that we’ve invested in going after the domestic porn industry, how can we tolerate all our work being undone by foreign filth-peddlers?,” pornography prosecutors and their political allies would ask. So they unveil the solution, in fact pretty much the only solution that will work: Nationwide filtering.

[. . .]

(3) Finally, the government can go after the users: Set up “honeypot” sites (seriously, that would be the technically correct name for them) that would look like normal offshore pornography sites. Draw people in to buy the stuff. Figure out who the buyers are. To do that, you’d also have to ban any anonymizer Web sites that might be used to hide such transactions, by setting up some sort of mandatory filtering such as what I described in option (2).

[. . .]

So, supporters of that plank of the platform, which do you prefer — #1, #2, or #3? Note that I’m not asking whether porn is bad, or whether porn should be constitutionally protected. I’m certainly not asking whether we’d be better off in some hypothetical porn-free world (just like no sensible debate about alcohol, drug, or gun policy should ask whether we’d be better off in some hypothetical alcohol-, drug-, or gun-free world).

I’m asking: How can the government’s policy possibly achieve its stated goals, without creating an unprecedentedly intrusive censorship machinery, one that’s far, far beyond what any mainstream political figures are talking about right now?

The great maple syrup heist must have been an inside job

Filed under: Business, Cancon, Food — Tags: , , , — Nicholas @ 10:02

The first time I heard about Quebec’s strategic maple syrup reserve was when someone made off with a quarter of the province’s sweet, sticky liquid:

On Friday, news broke that thieves had stolen $30 million dollars worth of Quebec’s strategic maple syrup reserves. Much as the United States keeps a stock of extra oil buried in underground salt caverns to use in case of a geopolitical emergency, the Federation of Quebec Maple Syrup Producers has been managing warehouses full of surplus sweetener since 2000. The crooks seem to have made off with more than a quarter of the province’s backup supply.

[. . .]

But harvesting maple is a fickle business, and that makes expanding the industry tricky. The trees need cold nights and mildly warm days to yield sap, meaning production can vary greatly year to year based on the weather. That’s a potential problem for the big syrup buyers, whether they’re bottlers or large food companies that make cookies or cereal. Quaker can’t pour a bunch of time and money into developing a maple-and-brown-sugar-flavored version of Life, only to find out it won’t be able to get enough of its ingredients, or that they’ll have to pay through the nose for each liter of syrup.

H/T to Nicholas Packwood for the link.

September 2, 2012

Institutionalizing income inequality

Filed under: Business, Cancon, Government — Tags: , — Nicholas @ 11:07

At the Worthwhile Canadian Initiative blog, Frances Woolley explains how a couple of data points will work to “bake in” income inequality:

If these are the rules used to determine wages, income inequality will prevail.

It’s impossible for all firms to pay their CEOs above the median salary — by definition, half of executives must be paid below the median. If the majority of firms adopt a compensation policy like the Bell Canada Enterprises one quoted above, CEO salaries will increase inexorably.

At the same time, allowing firms to bring in temporary workers at less than the prevailing market wage prevents the price of labour from being bid up in response to labour shortages, dampening salary growth for workers at the lower wage end of the labour market.

Inequality rules.

August 27, 2012

Lego is 80 years old

Filed under: Business, Europe, History — Tags: , , , — Nicholas @ 10:28

In The Register, Brid-Aine Parnell on the 80th birthday of one of the iconic toys of the 20th century:

Way back in 1932, Ole Kirk Kristiansen, a Danish joiner and carpenter, found he wasn’t making enough money from carpentry anymore and decided to try making and selling wooden toys instead. Although he didn’t know it yet, he was on his way to building the Lego company, which would eventually have some of the most recognisable and long-lasting toys in the world: bricks and yellow minifigurines.

[. . .]

According to that research, girls aren’t into Lego. Poul Schou, senior vice president of product group 2, told The Register that Lego was for boys, not girls, because although both sexes loved the larger preschool bricks of Duplo once the girls hit five, they weren’t interested in construction anymore.

“We have seen that girls seem to be less interested in continuing with our products when they get to four or five years old so we don’t really get them into the Lego system,” he said.

Here at Vulture Central, that seemed really odd. Not only did everyone in the office, regardless of gender, remember playing with and loving Lego throughout their childhood, for the most part, their kids, both boys and girls, love it as well.

[. . .]

Schou said that the company got “a lot of feedback from boys and girls”. The kids are encouraged to go online to talk about the products they buy and what age they are, and the boxes often include incentives to answer Lego survey questions as well.

Of course if girls aren’t buying Lego stuff, they won’t be answering any questions, which would be a kind of answer in itself (although whether the answer would be “Girls don’t like Lego” or “Girls don’t like surveys” would be hard to figure out).

Finland and the dangers of being a company town

Filed under: Business, Economics, Europe — Tags: , , , , , — Nicholas @ 09:09

I had no idea that Finland’s economy was so tightly tied to the fortunes of Nokia:

Nokia contributed a quarter of Finnish growth from 1998 to 2007, according to figures from the Research Institute of the Finnish Economy (ETLA). Over the same period, the mobile-phone manufacturer’s spending on research and development made up 30% of the country’s total, and it generated nearly a fifth of Finland’s exports. In the decade to 2007, Nokia was sometimes paying as much as 23% of all Finnish corporation tax. No wonder that a decline in its fortunes — Nokia’s share price has fallen by 90% since 2007, thanks partly to Apple’s ascent — has clouded Finland’s outlook.

[. . .]

Strip these sorts of firms from the list and only one resembles Nokia: Taiwan’s Hon Hai, an electronics manufacturer. Yet Nokia made 27% of Finnish patent applications last year; the corresponding figure for Hon Hai was 8%. Although numbers are falling, Finland is home to the greatest number of Nokia employees; Hon Hai’s staff is mostly in China. It is a similar story with other firms. Sales of Nestlé, a consumer-goods company, weigh in at 15% of Swiss GDP but its share of Swiss jobs is punier than Nokia’s in Finland. Samsung, whose revenues are twice Nokia’s, has half its clout as a share of GDP: South Korea’s economy is more diversified. The importance of Nokia to Finland looks like a one-off.

August 26, 2012

Google investigates their own in-house Gender Gap

Filed under: Business, Economics, Technology, USA — Tags: , , , — Nicholas @ 00:02

Tim Worstall in Forbes on Google’s unique approach to narrowing the Gender Gap:

As we all know, because we’re reminded about it often enough in rather shrill voices, the gender gap is one of the more pernicious unfairnesses in our society. This idea that women only earn 77 cents to a $1 for men, don’t get the same promotions, are in fact discriminated against by society.

The thing is, the more people study this question the less and less it’s possible to see that there is in fact a gender gap. Or rather, a gender gap driven by discrimination. Do note that economists discriminate (sorry) between taste discrimination and rational discrimination. Taste discrimination would be where women were treated worse than men just because they are women. Akin to say the dreadful racism of the past: and we would all admit that there was indeed discrimination against women in the workplace in the past.

What is a great deal less certain is whether this taste discrimination still exists: of course, we’ll always be able to find examples of it, but does it exist in a general sense, across the economy? Many researchers think not: for when you add up the effects of rational discrimination then look at the gender gap there doesn’t seem to be much if any room left for that taste discrimination. Rational discrimination is things like, well, women and men do tend to self-segregate into different occupations. Some of which are higher paid than others. Men tend to be willing to take riskier jobs and thus earn a danger premium to their wages. Women tend to negotiate less hard for their wages or a promotion. And of course women do tend to be those who take career breaks to have and to raise children. Perhaps this shouldn’t be so but it is and it’s most certainly true that the largest contributor to the gender pay gap is not gender itself but the effects of motherhood.

This is all pretty well known in the academic literature. What Google has done is most unfair. It has entirely ignored the academic work, ignored the partisans of both sides, and actually gone and asked its own staff what’s going on.

August 20, 2012

Why scam artists will never miss a meal

Filed under: Business, Economics — Tags: , — Nicholas @ 15:59

Megan McArdle on the perpetual lure of getting something for nothing:

…fraudsters and Ponzi schemers do not succeed at their scams merely because we let them. Recent financial frauds have big dollar signs attached, but at their heart, they’re often not much different from Nigerian email scams or a three-card monte game. They work best when they let the mark believe he’s getting away with something — often something illegal, or at least dishonest. It’s an old saw that “you can’t cheat an honest man,” but it’s mostly true. We are most vulnerable to Ponzi schemes and other confidence tricks when we start to believe that we can cheat the universe — that we can get something for nothing. The best con men succeed mostly because we are so desperate to believe them.

Even spectacular cases of financial fraud usually turn out to be remarkably banal in their execution. Embezzling grotesque sums rarely seems to require dazzling financial wizardry; all it takes is some basic clerical skills and a willingness to deceive.

After Peregrine Financial imploded last July, the firm’s president, Russell Wasendorf, confessed in a note related to a botched suicide attempt how he had misappropriated what seems to be more than half of his clients’ funds. The fraud was breathtaking in its audacity, and its simplicity: Wasendorf had been intercepting the bank statements and counterfeiting new ones using Photoshop and Excel. When auditors and regulators started confirming balances with banks, Wasendorf opened a P.O. box and put the address on the fake bank statements. When regulators started looking at online banking statements, he learned to fake those, too.

Bernie Madoff’s strategy wasn’t much more technically sophisticated than Wasendorf’s. And yet it seems to have been going on since at least the late 1980s, in large part because Madoff’s investors wanted an essentially guaranteed return of more than three times the annual rate of U.S. economic growth. They wanted, in short, to make quite a lot of money without working.

August 19, 2012

ESR on the limits of “lawfare” for Apple

Filed under: Business, Law, Technology — Tags: , , , , , , — Nicholas @ 15:56

To put it mildly, ESR isn’t a fan of Apple’s lawfare approach to competition:

It’s beginning to look like Apple’s legal offensive against Android might backfire on it big-time. Comes the news that Judge Koh has declined to suppress evidence that Apple may have copied crucial elements of the iPad design from prototypes developed by Knight-Ridder and the University of Missouri in the mid-1990s.

Those of us aware enough of computing history to be aware of early work by XEROX PARC and others have always been aware that Apple’s claims of originality were highly dubious. Apple’s history is one of adroit marketing and a facility for stealing adapting ideas from others, wrapping them in admittedly excellent industrial design, and then pretending that all of it originated de novo from the Cupertino campus.

The pretense has always galled a little, especially when Apple’s marketing created a myth that, footling technical details aside, the whole package somehow sprang like Athena from Steve Jobs’s forehead. But it didn’t become intolerable until Apple began using lawfare to suppress its competition.

The trouble with this is that there’s actually a lot of prior art out there. I myself saw and handled a Sharp tablet anticipating important iPhone/iPad design tropes two years before the uPhone launch, back in 2005; the Danger hiptop (aka T-Mobile Sidekick) anticipated the iPhone’s leveraging of what we’d now call “cloud services” in 2002-2003; and of course there’s the the Sony design study from 2006, described by one of Apple’s own designers as an important influence.

If only Apple were honest about what it owed others…but that cannot be, because the company’s strategy has come to depend on using junk patents in attempts to lock competitors out of its markets.

August 14, 2012

Neil Peart interview in Maclean’s

Filed under: Business, Cancon, Media — Tags: , , — Nicholas @ 00:04

He’s in conversation with Mike Doherty on a range of topics including the upcoming Rush concert tour:

Rush’s 20th studio release, Clockwork Angels, hit No. 1 in Canada in June — not bad for a steampunk, progressive rock concept album. Its story, about a young man who flees a land designed to function in perfect mechanical order, reflects the philosophy of drummer and lyricist Neil Peart. Now living in Santa Monica with his wife and daughter, the native of St. Catharines, Ont., is preparing with his long-time bandmates, bassist-singer Geddy Lee and guitarist Alex Lifeson for a concert tour that starts next month. At a Toronto rehearsal studio, he granted a rare interview about musical integrity, freedom and his fight to escape precision.

Q: Thirty-eight years ago you joined Rush, and the next day you went shopping for instruments for your first tour. What are your memories of that time?

A: I remember all of us riding in the truck down to Long & McQuade [a music store in Toronto]. What a young musician’s dream, to say, “Look at those chrome drums. Look at that 22-inch ride cymbal. I’ll have those.” It was one of those unparalleled exciting days of your life.

Q: Did you feel you were embarking on a great, lifelong journey?

A: No, nothing like that. When I was young, my ambitions were very modest. I thought, “If only I could play at the battle of the bands at the Y, that would be the culmination of existence!” And then the roller rink, and you work your way up branch by branch. Whereas if you’re [thinking], “I want to be a rock star” — those kind of people just want to know how they can start at the top, and they’re doomed not even to get to the bottom.

August 12, 2012

The (long awaited) growth in Indian manufacturing

Filed under: Business, Germany, History, India, Technology — Tags: , , , , , — Nicholas @ 08:59

The Economist on the relatively slow development of India’s manufacturing sector:

If India is to become “the next China” — a manufacturing powerhouse — it is taking its time about it. “We have to industrialise India, and as rapidly as possible,” said the country’s first prime minister, Jawaharlal Nehru, in 1951. Politicians have tried everything since, including Soviet-style planning. But India seems to prefer growing crops and selling services to making things you can drop on your foot.

Manufacturing is still just 15% of output (see chart), far below Asian norms. India needs a big manufacturing base. No major country has grown rich without one and nothing else is likely to absorb the labour of the 250m youngsters set to reach working age in the next 15 years. But it can seem a remote prospect. In July power cuts plunged an area in which over 600m people live into darkness, reminding investors that India’s infrastructure is not wholly reliable. And workers boiled over at a car factory run by Maruti Suzuki. Almost 100 people were injured and the plant was torched. The charred body of a human-resources chief was found in the ashes.

Yet not all is farce and tragedy. Take Pune in west India, a booming industrial hub that has won the steely hearts of Germany’s car firms. Inside a $700m Volkswagen plant on the city’s outskirts, laser-wielding robots test car frames’ dimensions and a giant conveyor belt slips by, with sprung-wood surfaces to protect workers’ knees. It is “probably the cheapest factory we have worldwide”, says John Chacko, VW’s boss in India. In time it could become an export hub. Nearby, in the distance it takes a Polo to get to 60mph, is a plant owned by Mercedes-Benz.

The initial demand for a domestic manufacturing base was more political than economic: it would serve to reinforce the newly won independence of India by showing that India could make its own goods rather than importing from the UK or other major manufacturing nations. It was also economic, in that it would provide relatively high-paying jobs for India’s rapidly urbanizing population.

Ironically, now that the manufacturing sector seems to be on the upswing, the one thing it isn’t going to do for India is provide lots and lots of jobs: as with the rest of the world, manufacturing “things” is being done with fewer workers every year (even when the total output increases, fewer workers are needed to produce that output).

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