March 2011

Dictators and Internet Double Standards

[Commentary] More than 100 Chinese have been arrested and charged with "inciting subversion" for blogging about the Middle East demonstrations. When protest organizers used online tools to encourage people to go on "strolls" in cities across China every Sunday, the U.S.-based Committee to Protect Journalists reported harassment and beatings of foreign journalists trying to cover these silent protests. There is a disconnect between the enormous economic progress China has made over the past generation and the tight lid it keeps on their ability to communicate. Chinese people have more reason to be confident and optimistic about their future than did Arabs in authoritarian countries, but they also want to be free of both petty and large corruption of local and national officials throughout China. Reformers within the government know they sit on a tinderbox, but Beijing opts to clamp down instead of letting people vent frustrations. Strong-armed control over the Web may be the clearest sign of political weakness. "The Chinese authorities instinctively choose repression when confronted with any problem: lock up people, censor their writings, block the Internet," wrote veteran China watcher Frank Ching in the China Post last week. If this is really necessary, "maybe China is much more vulnerable that it would appear on the surface."

Plastic Surgeon and Net's Memory Figure in Google Face-Off in Spain

In 1991, the Spanish newspaper El País published an article centered on a dispute between Madrid plastic surgeon Hugo Guidotti Russo and one of his patients over an allegedly botched breast surgery. The headline: "The Risk of Wanting to Be Slim." Nearly 20 years later, Dr. Guidotti Russo, backed by Spain's privacy regulator, contends that the tale of the dispute is personal information and wants to purge the article from Google, where it shows up on the first page of results when his name is searched. His complaint accounts for one of about 80 instances in which the Spanish regulator has told U.S.-based Google Inc. to remove personal information about individuals from its search results. Google says it plans to challenge most of those orders, arguing that the agency is overstepping its authority.

As telecom industry evolves, success of Netflix is its biggest threat

The more that consumers embrace the movies-at-home ethos of Netflix, the more uncomfortable major players in the entertainment industry have become.

Now Netflix, a secretive company known more for the laid-back attitude of its founder than for sharp elbows, has emerged at the center of a titanic clash over the future of television. Because if Netflix can bring movies straight into your living room through the Internet, it can bring a full slate of TV shows, too. Pretty soon, who needs cable? On the other hand, if cable companies can bring you movies and TV directly over high-speed Internet lines, who needs Netflix? Multibillion-dollar corporations are fretting over those questions and fighting to influence the outcome.

Glow of electronic devices is affecting Americans' sleep

Americans aren't getting enough sleep, and technology may be the culprit. In the National Sleep Foundation's 2011 Sleep in America poll, out today, 95% of the 1,508 people surveyed reported using some type of electronic device — such as a TV, computer, video game or cellphone — within an hour of bedtime at least a few nights a week. All these devices can affect the quality of sleep, says Lauren Hale, associate professor of preventive medicine at Stony Brook (NY) University School of Medicine, one of the researchers involved in the study. "Communication technologies are often light-emitting, which can suppress the sleep-promoting hormone melatonin and make it harder to go to sleep at night." Both the light and alert sounds from such devices can interfere with falling asleep and staying asleep, she says.

Amazon should pay fair share of sales tax

[Commentary] Amazon.com's threat to drop its 10,000 California affiliates if the Legislature approves a tax on online sales seems like an exercise in futility. Think about it. If Amazon does have to start collecting sales tax - as its competitors with a brick-and-mortar presence in the state are required to do - would it really want to dump the thousands of Californians who are helping boost its profile and sales on their websites? Also, many of those affiliates have arrangements with other online sellers - and Barnes & Noble, which does collect the sales tax, has said it would welcome the Amazon affiliates to its network. Amazon could end up being the biggest loser if it followed through with its retaliation.

Kids' TV Up Despite Regulatory Challenges

The reformulation of sugary, fatty and high-sodium foods aimed at kids that began in 2007 was supposed to be a wake-up call to the kids media marketplace. The changes to the products, resulting from years of watchdog-group scrutiny and Federal Communications Commission recommendations, sent shockwaves through the sales departments of Nickelodeon, Cartoon Network and Disney as they scrambled to work with their partners to find new ways to market their products. Four years later, a lot of that ad money has come back -- even as sales of some affected products have slowed.

The kids' upfront finished as much as 5% up last year, compared to 2009, at just under $1 billion, on the strength of strong spending among toys, movie studios and renewed spending from packaged-food and quick-service restaurant advertisers. This year's kids upfront is expected to increase another 3% to 5% based on early estimates from multiple executives. Driving that resurgence is a new focus on targeting parents vs. kids, and a commitment to marketing healthful products. As part of the Children's Food and Beverage Advertising Initiative, issued by the Council of Better Business Bureaus, 17 advertisers, from Burger King to Kraft to Mars, have pledged to improve the health content of their products and change their marketing strategies. Elaine Kolish, VP-director of the CFBAI, said advertisers were in 2007 required to promote healthy products in at least 50% of their media targeted to kids, but all the participating marketers ended up promoting those products in all their kids' ad time. In January 2010 that became an official requirement. Additionally, Coca-Cola, Cadbury, Mars and Hershey's have all committed to not advertising at all to children under 12.

Feds want new ways to tap the Web

The Obama Administration is considering new regulations to require Web-based communications services to incorporate surveillance capabilities in their products, so law enforcement can conduct digital wiretaps if suspects message Facebook “friends” or conspire via Skype.

FBI General Counsel Valerie Caproni told the House Judiciary Committee in late February about a case the agency was investigating involving a pimp allegedly trafficking underage girls and producing child pornography on a social-networking service. But that social network — which she didn't name — lacked “the necessary technological capability to intercept the electronic communications.” The result was “a weaker case and a lighter sentence than might otherwise have occurred,” she said. The Administration has not yet submitted a formal proposal to Congress, but already forces are mobilizing against the idea, warning that new regulations may jeopardize privacy and deter innovation. “It’s clear that some kind of mandate at the application level to build in what’s essentially a back door is going to be chilling to innovation,” said Leslie Harris, president of the Center for Democracy & Technology.

Freedom of Internet is global concern

The high-profile Internet blackout that briefly enveloped Egypt has served only to illuminate the challenges Congress faces in promoting Internet freedom worldwide.

Lawmakers have invested in technologies aimed at circumventing online censorship by governments bent on silencing dissent. Certainly, that has wide support. But many tech stakeholders feel Congress risks being distracted from the bigger Internet policy picture, one that has implications for human rights, cybersecurity and commerce. “Internet freedom is an issue that has rightly captured the support of a large [number] of people on Capitol Hill,” said Richard Fontaine, a senior fellow at the Center for a New American Security, of Congress and the State Department’s work. “They put money behind their wishes, which is a rare thing sometimes, but it is like anything else: The hard part is when you get to implement this ... and how you navigate the tensions.” Middle East leaders are also confronting new Internet challenges, albeit with polar-opposite goals. That was on display in January, when state authorities shuttered the Internet for days and initially detained Google marketer Wael Ghonim, who launched the now-famous Facebook page that helped catalyze protests and force President Hosni Mubarak to step down.

New legislation a boon to community radio

Larry Gerson, a longtime producer at now-defunct radio station WTAE-FM, laments the death of progressive rock on radio in Pittsburgh. "It's just not there. It was, but the Telecommunications Act of 1996 killed radio," said Gerson of Swissvale, one of about 50 people who attended a North Side workshop Saturday about starting a low-power FM radio station. A new law, the Local Community Radio Act, reduces the amount of bandwidth allowed between existing FM stations. The newly available bandwidth would be used to create noncommercial radio stations operating at a low power, 100 watts, and have a transmission range of 10 to 15 miles. As many as 2,000 new noncommercial stations are expected nationally beginning about 2013. Under the law, as many as five low-power stations could operate in Pittsburgh, which has none. More community stations could mean more coverage of issues as wide-ranging as school board meetings, high school football games, health, education, local music and literacy campaigns, said Brandy Doyle, policy director for Prometheus Radio Project, a small Philadelphia-based nonprofit that worked out of a basement for 12 years to get more noncommercial radio stations approved.

Tribune Company bankruptcy nearing finish line

After 27 months of legal wrangling, the Tribune Company and its creditors are finally headed into what could be the deciding chapter of the company's tangled bankruptcy saga.

The case will enter what bankruptcy law practitioners call confirmation hearings Monday, and for the next two weeks U.S. Bankruptcy Judge Kevin Carey in Delaware will hear evidence from an army of lawyers arguing for and against two competing visions of how to restructure the Chicago-based media conglomerate. Here are some answers to help explain where the case stands as the battle begins. Tribune is expected to remain intact for now. But it will be owned by lenders and hedge funds that will trade their billions in claims for stock in a new company that ultimately will be publicly traded. JPMorgan Chase, Oaktree and Angelo Gordon will likely end up as majority owners. They will pick a new board to run the company, which likely will pick its own management team.