Righthaven “nearing bankruptcy”

I was suspicious several days ago when I heard that Righthaven might be going under, but apparently it’s true:

The Las Vegas copyright-trolling firm Righthaven told a Nevada federal judge Friday it might file for bankruptcy protection, or cease operations altogether.

To prevent that, Righthaven is asking U.S. District Judge Philip Pro to stay his decision requiring Righthaven pay $34,000 in legal fees to an online commenter it wrongly sued for infringement.

Wired has posted Righthaven’s Motion to Stay here (pdf).  They are exceptionally candid about the economics of copyright troll litigation:

In Colorado, 35 Righthaven copyright infringement cases have been stayed since May 19, 2011 pending a ruling on whether the company has standing to maintain these actions. Likewise, ten infringement actions, most of which involve an amended version of the SAA that addresses the concerns expressed by this Court in its subject matter decision, have been stayed in this District until a standing determination is made. Thus, Righthaven has been precluded from actively litigating and resolving the stayed cases. Moreover, Righthaven has delayed filing new copyright enforcement actions until a standing determination is made based upon the terms of the currently operative version of the SAA. Throughout this period, and despite a lack of incoming revenue given that numerous pending action are stayed, Righthaven has continued to incur operating expenses.

Clearly, Righthaven is a cash-poor outlet these days.  And here’s where things get really interesting:  based on its motion, Righthaven seems deathly afraid that they might have to sell some of their assets to satisfy a $34,000 judgment.  As they explain to the court:

Righthaven also has significant proprietary rights in its copyright infringement search engine software (the “Software”), which plays an integral role in the company’s operations. If a stay is not granted pending appeal, this valuable Software may be seized and liquidated in an attempt to satisfy the Judgment. Liquidation may result in the Software being sold to a competing organization or entity.

Talk about woeful undercapitalization.  A $34,000 judgment is going to force them into selling off their core business assets?  Really?

Righthaven always presented defendants in its copyright litigation with an unfair dilemma:

(1) pay out a few thousand in “go away” money now, or
(2) mount an actual legal defense (at an initial, minimum cost of a few thousand, with no guarantees that things would work out well).

It seems that Righthaven now faces a dilemma of its own:

(1) raise enough capital to pay off this $34,000 pending appeal, or
(2) go bankrupt.

The difference, of course, is that the dilemma Righthaven faces is fair.  They put defendants to the expense of hiring lawyers.  Some of those defendants won.  The law says that those winning defendants should have their legal expenses paid by Righthaven.  Sounds about right to me.  If Righthaven can’t afford to pay without selling assets, perhaps they never should have been filing lawsuits in the first place.

Righthaven losing that rocky mountain high

I noted yesterday that copyright troll Righthaven hasn’t filed any new lawsuits in the past two months, but I was suspicious that it was all over.  After reading Wired’s coverage today, however, I think Righthaven’s end is near:

The new chief executive of MediaNews Group, publisher of the Denver Post and 50 other newspapers, said it was “a dumb idea” for the nation’s second-largest newspaper chain to sign up with copyright troll Righthaven.…

“The issues about copyright are real,” [John] Paton told Wired.com in a telephone interview. “But the idea that you would hire someone on an — essentially — success fee to run around and sue people at will who may or may not have infringed as a way of protecting yourself … does not reflect how news is created and disseminated in the modern world.”

I stand corrected.  Barring a court-ordered miracle, it seems only a matter of time before Righthaven closes up shop.

Mr. Google, take down this content

Google’s default response to possible copyright infringement on YouTube is surprisingly mechanical and far from perfect.  Consider TMZ’s recent report on the hapless Justin Bieber and his ubiquitous YouTube music videos:

Justin Bieber has been victimized by a brand new cyber-enemy … an enemy who found a way to get every single one of JB’s official music videos REMOVED from YouTube….YouTube has a yank first, ask questions later policy when a copyright claim is made — so they simply pulled the videos off the site … until the dispute is resolved.

Of course, there are myriad problems with such a system, as Ernesto over TorrentFreak elaborates:

YouTube describes its Content-ID anti-piracy filter as a state-of-the-art technology, but those who look closely can see that in some cases it creates a huge mess. The system invites swindlers to claim copyright on other people’s videos and make money off them through ads. It automatically assigns thousands of videos to people who don’t hold the copyrights, and its take-down process appears to be hugely biased towards copyright holders.…

Content-ID allows rightsholders to upload the videos and music they own to a central ‘fingerprint’ database. YouTube will then scan their site for full or partial matches, and if there is a hit the copyright holder can automatically take it down, or decide to put their ads on it.

Although the above sounds like a fair and honest solution, not everything Content-ID does goes to plan.…One of the problems appears to be that people with bad intentions can claim copyright on videos they have nothing to do with, and even run ads on them. In the YouTube support forums there are hundreds of posts about this phenomenon…[although] most of the “misattribution” problems seem to be the result of screwups and technical limitations.

As Ernesto notes in passing, there is supposed to be an opportunity to counter a takedown request under the Digital Millennium Copyright Act (DMCA).  Unfortunately, Google’s Content-ID system doesn’t work this way, as Patrick McKay of FairUseYouTube.org elaborates:

Instead of requiring copyright owners to file a formal DMCA notice in response to a Content ID dispute, thus allowing users to invoke the DMCA counter-notice process, YouTube allows copyright owners to somehow “confirm” their copyright claim through the Convent ID system and re-impose whatever blocks were originally in place through Content ID. In this case, a message will appear on the user’s “View Copyright Info” page for that video saying, “All content owners have reviewed your video and confirmed their claims to some or all of its content.” After this, as far as I can tell, there is absolutely no way for the user to file a dispute and get their video restored.

Certainly, Google is under no legal obligation to provide video distribution services to anyone who asks for them no matter how contentious the content’s ownership.  At the end of the day, Google is a business, and dealing with the minutia of these copyright ownership disputes is expensive.  It’s obvious why Google wants to bow out of the fight as early (and cheaply) as possible.

Nonetheless, it is extremely troubling that Google is silencing some users’ speech without allowing them to defend (at their own risk and expense) legal rights provided under the DMCA.

[CollegeNameHere].com coming to a browser near you

Even though colleges have their own Internet domain, .edu, some colleges are thinking about branching out into .com addresses:

Some observers worry, though, that an influx of new names might dilute the power of “.edu,” which has been the online way to say “a legitimately accredited institution of higher education in the United States.”

Weber State University is among those that have already started branching out, with “getintoweber.com” as an online destination. It is “a vanity URL we pursued to dovetail with our ‘Get Into Weber’ marketing campaign that started in 2007,” says John L. Kowaleski, director of media relations. “We wanted something catchy and easy to remember, since the intended audience for “getintoweber.com” was prospective students.”

Why not simply add a “getintoweber.edu” address to the existing “weber.edu“? Because “.edu” is restricted by the “one per institution” rule that has been in effect since 2001, says Gregory A. Jackson, a vice president of Educause, the higher-education-technology group that administers the “.edu” domain. “The U.S. Commerce Department, which gave us the contract to administer the domain, views ‘.edu’ as something that identifies an institution, not multiple names that mean the same institution,” he says…

Asking the Internet Corporation for Assigned Names and Numbers for a domain of one’s own—”.weberstate” or “.trinity,” for instance—would avoid some of those problems. But that’s an expensive route to go. A college has to pay Icann $185,000 to become the administrator of a domain, and then $25,000 each year to maintain it. And the college has to adhere to strict rules about who gets the domain and who doesn’t, which could cause other problems. “What if you say that alumni can have ‘.dartmouth’ in order to strengthen connection to the school?” Mr. Jackson says. “And then an alumnus involved in some shady dealings uses that address? You can’t ban them. Icann won’t let you pick who you like and who you don’t.”

If the .com addresses are just for marketing purposes, why haven’t more colleges gone this route already? It isn’t very hard to set up a targeted site and then link through to the college’s main page.

It sounds like some of the issue is the meaning or symbolism behind the .edu domain. If prospective students and parents are searching for schools, they know the .edu domain is pretty safe. The .com realm is more open and there could be some confusion about who put the site together. Particularly for less comfortable web users, going to a .edu could be a safer and trustworthy proposition.

Of course, the rules about the use of .edu sites hints at bigger problems across the internet: a need for more domains to provide more online pages.

(With all of this talk, shouldn’t some enterprising people buy up a bunch of the possible .com sites? For example, wheatoncollege.com is available but wheaton.com is not. )

What’s good for Amazon.com may not be good for California (or America)

Even though I just used this phrase (“What good for [company X] is good for America”] when looking at the impact of AT&T on American history, I agree that the deal Amazon is trying to offer California, jobs for no sales tax, is a bit strange:

Amazon has spent more than $5 million loading up their More Jobs Not Taxes campaign for a referendum that would repeal the legislation that started charging them taxes. Meanwhile, the latest turn in the political fight has been that Amazon offered to create 7,000 jobs if the state postpones enforcing its sales tax on the company until 2014.
Here’s why that offer is a big deal. It transforms a debate that is fundamentally about a value — fairness — into a numbers game. The next step will be that Amazon’s political operatives will plant the seed that the bill will kill jobs, probably a nice round number like 7,000 of them. According to our calculations, the politicos will say, California is killing the exact number of jobs that Amazon offered to add! Taxes are bad!
I don’t mean to pick on Amazon here. Every company is after as many tax advantages as they can get. Walmart, for example, which pushed the effort to get the Amazon sales tax bill passed, skirts some online sales taxes, too. And every company has realized that it is good politics to say that taxes kill jobs, whether they have real evidence for it or not…
Now, by transforming tax fights into skirmishes over how many jobs this or that tax will “kill,” every single tax becomes something that hurts America. The narrow (and self-serving) interests of every tax-fighting corporation become part of our national project. And the battlefield becomes the competing spreadsheets of political opponents who say that one plan or another will create more jobs, when it’s pretty obvious that no one knows precisely how that whole mechanism works.

Some observations:

1. Perhaps taxes are supposed to be about fairness – but corporations and municipalities have been playing this tax break game for years. Why wouldn’t Amazon think that it has enough clout to pull this off? Many communities and governmental bodies have been more than willing to give in to others.

2. The math is interesting: no sales tax = 7,000 jobs. I haven’t seen many details about this: does the value of these jobs equal the sales tax revenue that would be lost without Amazon? Couldn’t California hold out for more jobs or make this information public to try to worsen Amazon’s hand?

3. It is interesting that this battle about sales tax revenue between California and Amazon is getting attention; a number of states have already gone through this. Granted, California is bigger so perhaps this is about more money than elsewhere. But, additionally, California was home to some of the biggest property-tax revolts in the United States several decades ago, meaning that homeowners, and not just corporations, are interested in paying fewer taxes.

On reporting on statistics

Felix Salmon has a great post about the journalistic use of statistics, and it’s well worth the read.  Here’s his summary, complete with thoughtful reminders:

Before you start quoting statistics, then, it’s always worth (a) knowing where exactly they come from; (b) verifying them independently if you were fed them by some pressure group; and (c) making sure that they say what you say that they say. Otherwise, you just end up looking credulous and silly.

Netflix’s distribution problems

Netflix has had a lot of bad press in the last few months.  First, they decided to split their online-only streaming service from their mailed disc service, substantially increasing their customer’s prices.  Second, word came that they are losing their Starz distribution agreement, which will severely curtail the availability of (genuinely) recent movies on their streaming service.

Now, here comes a potential supply shock on the physical distribution side:

The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances….

Missing the $5.5 billion payment due on Sept. 30, intended to finance retirees’ future health care, won’t cause immediate disaster. But sometime early next year, the agency will run out of money to pay its employees and gas up its trucks, officials warn, forcing it to stop delivering the roughly three billion pieces of mail it handles weekly.

To be sure, a long-term interruption in mail service would be an economic catastrophe extending well beyond Netflix.  Nonetheless, viewing this problem from Netflix’s perspective shows just how dependent even web-savvy companies are on physical infrastructure and distribution systems.  There will be a lot of collateral damage if businesses can no longer count on a robust and dependable USPS.

Juror becomes Facebook friends with defendent during trial and is dismissed from the case

There are times to friend people on Facebook and times not to. One of the times to refrain should include when you are on a jury and you want to be Facebook friends with the defendant:

Jurors and defendants are not meant to be friends — even if it’s just Facebook friends.

Four charges of contempt of court probably drilled this point home for 22-year-old Jonathan Hudson of Arlington, Texas. While on jury duty, Hudson sent a Facebook friend request to the female defendant in the case.

He was dismissed from the proceedings following the friend request, as well as for posting case information on his profile. Afterwards, he contacted the defendant through a Facebook message to apologize…

His lawyer told the paper the mistake was “a reflection of the times.”

I’m sure someone could develop a defense for this: being Facebook friends isn’t the same kind of friendship that might compromise a decision in a court case. But that then gets into the interesting area of what exactly it means to be a friend on Facebook.

If this is a “reflection of the times,” it suggests people have difficulty knowing when using newer technologies, like Facebook or texting, is appropriate. The courtroom is probably one of the more conservative institutions where it takes some time to change behavior norms. Would Facebook ever be incorporated into courtroom and trial behavior? What if jurors had electronic devices that they could use to interact with each other as they are hearing cases?

Two versions of the ASA 2011 bingo card

Sociologists at orgtheory put out the annual ASA bingo card several days before this year’s meetings. Interestingly, two other sociologists developed their own bingo card after the meetings, one they argue is “more positive”:

There was a popular “bingo card” for the annual meetings of the American Sociological Association held last week in Las Vegas. It poked a bit of fun at sociologists and the meeting itself. Nathan Jurgenson’s reaction was that the card itself revealed much about the sociological discipline and the problems with the annual meetings. He wrote a posthere on Cyborgology calling for a more positive bingo card that might be helpful to improve the conference experience rather than just complaining about what is wrong. It is easy to be annoyed, much harder to be constructive.

CUNY sociologist Jessie Daniels responded to this call, and, together, we have created a more constructive and useful Bingo card that looks specifically at how to improve a conference by augmenting one’s experience with Twitter.

The card describes how conferences in general benefit from engagement on both the physical and digital levels. Conversations taking place move onto the web, and discussions in the “backchannel” flow back into physical space. In fact, we noted this trend during the Theorizing the Web conference this past spring, calling it an “augmented conference.”

And just as I was wondering how much Twitter was actually used during the conference, the same sociologists have a summary. My quick thought: the Twitter use was pretty limited and I imagine it will be some time before Twitter is fully integrated into the conference.

I wonder if someone has a blogging summary about the conference.

On the whole, are sociologists ahead or behind the curve in adopting newer social technologies, like Twitter? Are the patterns tied more to age or education or some other factors?

How technology may lessen a team’s chemistry

Technology receives a lot of attention but I haven’t seen this brought up before: technology may be making it more difficult to athletic teams to bond.

Ask many coaches, general managers and older players and you’ll hear a common gripe: chemistry on teams has been altered because of modern technology, and not for the better. The rise of smartphones, with all their instant-communication and entertainment options, have created insular worlds into which distracted players too often retreat instead of bonding with teammates.

Coaches and managers are particularly frustrated at the paradox of players fraternizing less with their own teammates, and more with the “enemy.” Players from opposing teams, they say, too often get each other’s cellphone numbers and start calling or texting back and forth, often griping about playing time and occassionally giving up little secrets about their teams…

Major League Baseball is one sport where the chemistry effects of smartphones, iPads, iPods and other handheld devices might be thought to be minimal, because of the longer workdays and more enclosed environs (dugouts, bullpens, clubhouses). Not necessarily so, according to Colorado Rockies manager Jim Tracy. When the game is over, he says, players quickly rejoin their private, smartphone worlds…

Some NFL teams are said to be contemplating outright bans on smartphones during any “team time” activities, and some coaches have spoken with exasperation at competing with phones for players’ attention. Redskins defensive coordinator Jim Haslett, for instance, told ESPN 101 radio in St. Louis the difficulties of dealing with phone-obsessed players such as former Washington tackle Albert Haynesworth.

I’m tempted to argue that this is simply the outcome of having multiple generations in the clubhouse or locker room: an older generation, particularly coaches and managers, had a particular experience in the past and younger players have a different way of going about things. Perhaps it would be more interesting to talk to younger coaches who are more into technology themselves and ask how they try to build team chemistry. Of course, the topic of team chemistry is open for debate. To me, it seems like it is only really an issue when a team is losing and people are looking for reasons why.

The article does suggest that at least a few veteran athletes have adopted informal/player-directed guidelines for technology use in the clubhouse. I wonder if they have encountered some resistance or whether the spirit of such actions, to “help the team,” is reason enough for other players to comply.

Two other quick thoughts:

1. This could also be interpreted as an indicator of the professionalization of athletes. While athletes in the past might have enjoyed the camaraderie of interacting before and after games, today’s athletes have more personal leeway as most work all-year round and make big money. What matters most (or at all) is their performance on the field/court/ice.

2. The article also hints at how technology has changed how players prepare for games. It is now easy and common for athletes to be able to watch lots of video on their own, theoretically giving them some advantages.