June 2012

FTC Commissioner Blasts Microsoft Do Not Track Browser

In a letter to the World Wide Web Consortium Tracking Protection Working Group, Federal Trade Commission member J. Thomas Rosch criticized Microsoft's default Do Not Track setting on its new browser, lending his support to the Internet ad community's assertion that the feature departs from industry consensus and limits consumer choice.

The default setting does not give consumers choice, Commissioner Rosch argued in his letter. "To the contrary, Microsoft's default DNT setting means that Microsoft, not consumers, will be exercising choice as to what signal the browser will send," he wrote. Rosch's letter also took issue with a letter sent to the World Wide Web Consortium from Reps. Ed Markey (D-MA) and Joe Barton (R-TX), co-chairs of the Congressional Bipartisan Privacy Caucus, who embraced the default approach as the suggested standard for the industry. The duo, who were copied on Rosch's letter, advocate that DNT should mean both do not collect and target. Because Microsoft's default DNT browser departs from the Internet ad industry's consensus, the community is likely not to honor the signal that Microsoft's browser would send.

Let's Get Real About Privacy And Ads

[Commentary] People blow a gasket about ads served on Facebook, but think nothing about incessant interruption by ads on TV or the deluge of junk mail in their mailbox (the real one). And don't even get me started on the threat to your credit from using a credit card at that cute little bistro downtown. The fact is that you wish you had the control over your privacy in the real world that you have online. What you have to understand is that marketers are all about efficiency. Our job is to find the easiest way to convince you to buy our company's products or services. So yes, it is helpful to know that you love pictures of cats with dumb headlines, but only so I know to advertise on that site, not because I plan to blackmail you into buying my product.

Motorola proposes way to end patent war with Microsoft

Google's Motorola Mobility unit has made offers to Microsoft in hopes of settling a pair of contentious patent infringement suits in which Motorola's smartphones were using Microsoft's patented ActiveSync software, while Microsoft's Xbox 360 was using Motorola's patented video compression system.

Motorola offered to pay 33 cents to Microsoft for every smartphone it ships with ActiveSync software in order to avoid an import ban from the International Trade Commission. ActiveSync was developed by Microsoft to push e-mail and other notifications to smartphones, and in 2010 Microsoft sued the phone company (then unaffiliated with Google) for infringement. At the time Microsoft specifically accused the Droid 2 and the Charm of infringing patents. Motorola has also offered an olive branch of sorts to Microsoft, lowering its demands for licensing fees on the proprietary video compression software found on devices running Windows to 50 cents per unit that uses the software. In addition, Motorola is asking for 2.5 percent of the retail price on each Xbox 360.

Penguin brings e-books back to NYC libraries in 1-year pilot program

Penguin, which removed all of its e-books from libraries and ended its relationship with digital library distributor OverDrive in February, is tiptoeing back into the digital lending waters again.

In a one-year pilot program with OverDrive competitor 3M, beginning in August, Penguin will make e-books available to the New York Public Library and Brooklyn Public Library. If that program goes well, Penguin will open up its e-books to libraries across the country. 3M doesn’t currently support Amazon’s Kindle, the most popular e-reader in the country.

Cyberwar, Syrian Style

Syrian rebels and Tibetan rights activists were the targets of two major cyberwarfare attacks in the past week--both of which used novel methods.

Syrian opposition members were attacked by a Skype trojan that allowed outsiders to spy on their computers, while Tibetan activists were hit by a spoofed European Union email that hid malware on their systems. The two attacks happened within days of each other, and highlight an unfortunate truth. Just as mail bombs were used in prior conflicts to silent dissidents, cyberattacks are being used in 2012. In the Tibetan attack, over 80 prominent activists in the Tibetan rights community received an email that appeared to be a copy of a June 14 European Parliament resolution on Tibetan self-immolations--a legitimate document. However, the email came from an unknown organization called the “Tibetan Welfareoffice” and was written in broken English.

White House holds private town hall meeting on health IT progress

The White House held a two-hour town hall meeting to get the pulse of how health IT is advancing nationwide. Justin Barnes, vice-president of marketing, industry and government affairs for Greenway Medical and chairman emeritus of the EHR Association, who served as a panelist at the invitation-only meeting, said some 100 people attended, mainly hospital executives, nurses and physicians, along with other stakeholders. Presiding over the meeting were Cecilia Munoz, director of the White House Domestic Policy Council, and Liz Fowler, special assistant to the president for healthcare and economic policy, according to Barnes. Farzad Mostashari, MD, the national coordinator for health information technology, moderated the discussion. The intent of the meeting was to focus on advancements in improving care quality and patients' health in relation to health IT and what solutions can we share as leaders to increase the momentum. It was a "very, very lively" discussion, Barnes said.

CPB report to Congress on alternative funding finds no viable substitute for federal support

If Congress were to zero-out federal appropriations to public broadcasting, 54 public television stations in 19 states and 76 public radio stations in 38 states would be at "high risk" of shutting down, the Corporation for Public Broadcasting (CPB) reported in "Alternative Sources of Funding for Public Broadcasting Stations," a comprehensive revenue analysis produced by Booz & Company and delivered to Capitol Hill June 20.

Lawmakers requested the research paper in December 2011 when they approved CPB's fiscal 2014 advance appropriation for $445 million. The report identifies five new or alternative funding options for public media — TV advertising, radio advertising, retransmission consent fees, paid digital subscriptions and digital game publishing — but says none of these offer "a realistic opportunity to generate significant positive net revenue that could replace the current amount of federal funding that CPB receives." "A shift from a noncommercial model to a commercial advertising model," the report says, "would have dramatically negative consequences for many of the communities that public broadcasters serve. In the absence of federal funding, there are small urban stations, small-market stations, rural stations and stations that serve diverse communities that will likely fail because they do not have the capacity to either shift to a commercial model or raise the revenue to replace the loss of CPB funding."

Verizon launches 46 new 4G LTE markets

Verizon Wireless will add 46 U.S. cities to its 4G LTE network on June 21, for a total of 304 markets. The carrier first began deploying LTE in late 2010. While the number of locations has increased, Verizon is also pushing out coverage within existing areas, and said it will also expand its existing LTE in 22 markets where it had been available. Verizon states that it offers 5 Mbps to 12 Mbps on LTE downlinks on average and between 2 Mbps and 5 Mbps on the uplink.

The 46 new markets going live on June 21 are: Florence, Ala.; Harrison, Ark.; Yuba City/Marysville, Calif.; Panama City, Fla.; Carrolton, Gainesville and Newnan, Ga.; Blackfoot, Idaho; Decatur/Effingham, Kankakee/Bradley-Bourbonnais and La Salle/Peru/Ottawa, Ill.; Columbus and Michigan City/La Porte, Ind.; Greater Portland, Maine; Greenville/Greenwood, Jackson and Tunica, Miss.; Houghton and Traverse City, Mich.; Jefferson City, Lake of the Ozarks and West Plains, Mo.; Binghamton, Elmira/Corning/Hornell and Oneonta, N.Y.; Burlington, Hickory/Lenoir, Jacksonville and New Bern, N.C.; Bedford and Sharon/Farrell/Hermitage, Pa.; Anderson, Florence and Greenwood, S.C.; Lufkin/Nacogdoches, Midland, San Angelo and Waco, Texas; Danville, Va.; Ashland, Ky./Huntington, W.Va. and Logan, W.Va.; Fond du Lac, Janesville/Beloit and Sheboygan, Wis.; and Gillette, Wyo. The Lihue, Hawaii market launched June 11.

Hulu CEO talks the future of TV – Personalization

Jason Kilar, chief executive officer of Hulu, said he believes the future of TV lies in a personalized viewer experience.

"When you turn on a screen, it is going to be a very unique experience for you," Kilar said. As for the future of viewing entertainment, Kilar said the most minutes of broadcasting are likely to still be consumed in a living room, but the format, he said, isn't going to matter because "television can be in your pocket with a smartphone. It can be up on a wall. It can be in a little tablet."

News Corp directors 'allowed hacking cover up'

Amalgamated Bank, the Central Laborers’ Pension Fund and the New Orleans Employees’ Retirement System are suing the board of Rupert Murdoch’s media empire for “disregarding” its duties to shareholders. The trio of shareholders claim the board’s priority was to ensure it was not “at odds” with Murdoch, News Corp’s chairman and chief executive.

The directors, including chief operating officer Chase Carey, deputy chief operating officer James Murdoch, and Viet Dinh, who is overseeing the internal investigations into phone hacking, “intentionally” accepted “absurd” protestations that it was the work of a single rogue reporter, according to papers lodged in a Delaware court. The shareholders also accused News Corp of setting up the Management and Standards Committee, its internal inquiry into phone hacking and bribery formerly headed by Murdoch’s general counsel Joel Klein, as a figleaf for more robust investigations. Klein stepped down from that role earlier this week.