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	<title>Digital Daily &#187; violations</title>
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	<description>by John Paczkowski</description>
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		<title>Google's Mission: To Digitize the World's Books and Make Them Universally Monetizable by Google</title>
		<link>http://digitaldaily.allthingsd.com/20091116/googlebooks/</link>
		<comments>http://digitaldaily.allthingsd.com/20091116/googlebooks/#comments</comments>
		<pubDate>Mon, 16 Nov 2009 20:40:47 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[John Paczkowski]]></category>
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		<category><![CDATA[competition]]></category>
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		<category><![CDATA[copyright infringement]]></category>
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		<category><![CDATA[Gary Reback]]></category>
		<category><![CDATA[Google Books]]></category>
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		<category><![CDATA[laws]]></category>
		<category><![CDATA[monopoly]]></category>
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		<category><![CDATA[orphan works]]></category>
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		<category><![CDATA[unclaimed works fiduciary]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=29129</guid>
		<description><![CDATA[Google, the Authors Guild and the Association of American Publishers have submitted a new version of their digital book settlement, and while it makes concessions to the Department of Justice and others who have raised concerns about how it may violate antitrust laws, the new proposal doesn't seem to have appeased all of its opponents.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/11/googbooks-150x150.jpg" alt="googbooks" title="googbooks" width="150" height="150" class="alignright size-thumbnail wp-image-29131" />Google, the Authors Guild and the Association of American Publishers have submitted a <a href="http://www.googlebooksettlement.com/">new version of their digital book settlement</a>, and while it makes <a href="http://googlepublicpolicy.blogspot.com/2009/11/modifications-to-google-books.html">concessions</a> to the Department of Justice and others who have raised concerns about how it may violate antitrust laws, the proposal doesn’t seem to have appeased all of its opponents. Among the settlement’s changes: </p>
<ul>
<li>Orphan works&#8211;books whose copyright holders are unknown&#8211;will be overseen by an independent trustee who will administer their licensing, not by Google.</li>
<li> Books published outside the United States, United Kingdom, Canada and Australia will be excluded from the settlement.
  </ul>
<p>Those are substantive alterations, but they clearly haven’t placated critics who accuse Google (GOOG) of attempting an &#8220;end-run around copyright law as we know it.&#8221; </p>
<p>The Open Book Alliance&#8211;a coalition whose members include the Internet Archive, Amazon (AMZN), Microsoft (MSFT) and Yahoo (YHOO)&#8211;has blasted the revision twice already, decrying it as <a href="http://www.openbookalliance.org/2009/11/is-the-google-settlement-worth-the-wait/">&#8220;a sleight of hand&#8221;</a> intended to distract people from Google’s continued efforts to establish a monopoly over digital content access and distribution.  </p>
<p>&#8220;The proposed changes fail to address this deal&#8217;s fundamental flaws,&#8221; <a href="http://www.openbookalliance.org/2009/11/proposed-changes-fails-to-address-fundamental-flaws-oba-co-chair-says/">Open Book Alliance Co-Chair Gary Reback said in a vitriolic statement</a>. &#8220;Despite Google&#8217;s effort to spin this deal, it does nothing to promote competition nor does it reform Google&#8217;s exclusive access and monopoly hold on this digital database of books. Their proposed &#8216;unclaimed works fiduciary&#8217; will have zero authority to promote competition or expand access. It is a cynical diversion away from the parties&#8217; continued reliance on the discredited argument that competitors can obtain access through the very means Google did&#8211;getting sued for copyright infringement and abusing the class action process. This deal remains rife with anti-trust, class action and copyright violations.&#8221;</p>
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		<title>Justice Department Looking to Punch IBM's Card?</title>
		<link>http://digitaldaily.allthingsd.com/20091008/doj-ibm/</link>
		<comments>http://digitaldaily.allthingsd.com/20091008/doj-ibm/#comments</comments>
		<pubDate>Thu, 08 Oct 2009 11:43:53 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[hardware]]></category>
		<category><![CDATA[software]]></category>
		<category><![CDATA[1956]]></category>
		<category><![CDATA[antitrust]]></category>
		<category><![CDATA[business practices]]></category>
		<category><![CDATA[CCIA]]></category>
		<category><![CDATA[competition]]></category>
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		<category><![CDATA[Computer and Communications Industry Association]]></category>
		<category><![CDATA[consent decree]]></category>
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		<category><![CDATA[Edward J. Black]]></category>
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		<category><![CDATA[IBM]]></category>
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		<category><![CDATA[monopoly]]></category>
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		<category><![CDATA[operating system]]></category>
		<category><![CDATA[Platform Solutions]]></category>
		<category><![CDATA[punch card]]></category>
		<category><![CDATA[restrictions]]></category>
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		<category><![CDATA[Steven Friedman]]></category>
		<category><![CDATA[T3]]></category>
		<category><![CDATA[tabulating]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=26233</guid>
		<description><![CDATA[It has been nearly eight years since the U.S. Department of Justice agreed to dissolve its 1956 consent decree with IBM, lifting restrictions that had prevented the company from becoming a monopoly in the market for punch card tabulating machines. But perhaps those restrictions were better left in place. Because on Thursday, the DOJ opened a new investigation into IBM’s business practices, seeking to determine if the company has abused its monopoly position in the mainframe market.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/10/4506VV4002-250x256.jpg" alt="" title="" width="250" height="256" class="alignright size-medium wp-image-26238" />It has been nearly eight years since the U.S. Department of Justice agreed to dissolve <a href="http://www.cptech.org/at/ibm/ibm1956cd.html">its 1956 consent decree with IBM</a>, lifting restrictions that had prevented the company from becoming a monopoly in the market for punch card tabulating and later, electronic data processing machines. </p>
<p>But perhaps those restrictions were better left in place. Because on Thursday, the DOJ opened a preliminary investigation into IBM’s business practices, seeking to determine if the company has abused its monopoly position in the mainframe market. The inquiry stems from a complaint filed by the Computer and Communications Industry Association that claims IBM (IBM) has undermined sales of competing mainframe hardware products by refusing to license its mainframe operating system and certain other intellectual property.  </p>
<p>&#8220;IBM has used its power to resurrect and create a formidable set of barriers in the mainframe market by their misuse of intellectual property,&#8221; <a href="http://www.nytimes.com/2009/10/08/technology/companies/08antitrust.html">CCIA CEO Edward J. Black, told the New York Times</a>. &#8220;Once IBM walls are taken down by the government enforcing the law, there will be a rush of people looking to get part of this marketplace.&#8221;</p>
<p>Perhaps. Certainly that’s not really the case now. As the CCIA and T3 Technologies&#8211;which <a href="http://www.t3t.com/pdf/11_26_07_ibm_litigation.pdf">filed an antitrust complaint against IBM in Europe earlier this year for similar reasons</a>&#8211;would argue, IBM has essentially left the industry with a single mainframe vendor: itself. And if that sounds like an exaggeration, consider this: A few years back, a company called Platform Solutions attempted to license IBM&#8217;s mainframe software. IBM refused and then sued Platform, accusing it of a raft of IP-related violations. Platform countersued. And then, in 2008, <a href="http://www.forbes.com/feeds/afx/2008/07/02/afx5177720.html"> IBM acquired the company</a> and promptly shut down its operations.</p>
<p>&#8220;For decades, IBM licensed its system software and intellectual property to other computer manufacturers,&#8221; T3 president Steven Friedman said earlier this year. &#8220;However, for no reason other than to remove all competition from the mainframe market, IBM eliminated programs to allow customers to buy its mainframe software for use on non-IBM mainframe solutions&#8230;.[Now] only IBM&#8230;offers IBM- compatible mainframes and, based on IDC reports, controls over 99% of all existing IBM-compatible mainframes in use today.&#8221;</p>
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		<title>1,394 New iPhone Apps Approved Last Friday, None of Them Google Voice</title>
		<link>http://digitaldaily.allthingsd.com/20090922/appstore-bulk-approve/</link>
		<comments>http://digitaldaily.allthingsd.com/20090922/appstore-bulk-approve/#comments</comments>
		<pubDate>Tue, 22 Sep 2009 15:49:18 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Apple]]></category>
		<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[hardware]]></category>
		<category><![CDATA[mobile]]></category>
		<category><![CDATA[software]]></category>
		<category><![CDATA[AAPL]]></category>
		<category><![CDATA[app]]></category>
		<category><![CDATA[App Store]]></category>
		<category><![CDATA[applications]]></category>
		<category><![CDATA[AppShopper]]></category>
		<category><![CDATA[buggy software]]></category>
		<category><![CDATA[content]]></category>
		<category><![CDATA[core experience]]></category>
		<category><![CDATA[degrades]]></category>
		<category><![CDATA[Federal Communications Commission]]></category>
		<category><![CDATA[Google Voice]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[iTunes]]></category>
		<category><![CDATA[privacy]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=25222</guid>
		<description><![CDATA[Last Friday was a particularly productive day for the Apple team that reviews submissions to the iTunes App Store. AppShopper reports that 1,394 new applications were approved that day. An impressive number when you consider that Apple employs only 40 full-time reviewers and requires at least two of them to scrutinize each app.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/09/2315918082_e12530cf73.jpg" alt="2315918082_e12530cf73" title="2315918082_e12530cf73" width="140" height="138" class="alignright size-full wp-image-25225" />Last Friday was a particularly productive day for the Apple team that reviews submissions to the iTunes App Store. <a href="http://appshopper.com/blog/2009/09/21/fridays-avalanche-of-apps/">AppShopper reports that 1,394 new applications were approved</a> that day (see graph below; click to enlarge). </p>
<p>An impressive number when you consider that Apple (AAPL) employs only 40 full-time reviewers and requires at least two of them to scrutinize each app&#8211;or so says <a href="http://www.apple.com/hotnews/apple-answers-fcc-questions/">Apple&#8217;s reply to the Federal Communication Commission inquiry </a> into why Google&#8217;s (GOOG) Google Voice hasn’t yet made it into the App Store.</p>
<p><a href="http://digitaldaily.allthingsd.com/files/2009/09/apps.png" rel="lightbox"><img src="http://digitaldaily.allthingsd.com/files/2009/09/apps-250x97.png" alt="apps" title="apps" width="250" height="97" class="aligncenter size-medium wp-image-25223" /></a></p>
<p>That said, the volume of approved apps does make you wonder about just how thoroughly they&#8217;re are being vetted. Reviewers are charged with checking apps for buggy software, content and privacy violations and anything that &#8220;degrades the core experience of the iPhone,&#8221; among other things. For a team of 40 people to review and approve 1,394 apps based on these criteria, and presumably reject a few others, in a single workday seems at least a bit miraculous&#8211;unless, of course, someone accidentally hit the &#8220;Bulk Approve&#8221; button.</p>
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		<title>Two Years and 30,000 Complaints Later, FTC Finally Busts Car Warranty Robocallers [UPDATED]</title>
		<link>http://digitaldaily.allthingsd.com/20090518/2-years-and-30000-complaints-later-ftc-finally-busts-car-warranty-robocallers/</link>
		<comments>http://digitaldaily.allthingsd.com/20090518/2-years-and-30000-complaints-later-ftc-finally-busts-car-warranty-robocallers/#comments</comments>
		<pubDate>Mon, 18 May 2009 15:46:34 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[Google]]></category>
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		<category><![CDATA[Joe Leibowitz]]></category>
		<category><![CDATA[National Do Not Call Registry]]></category>
		<category><![CDATA[phone sex]]></category>
		<category><![CDATA[robocalls]]></category>
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		<category><![CDATA[sales pitches]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=17792</guid>
		<description><![CDATA[After more than one billion unsolicited calls and some 30,000 complaints--one from Senator Charles E. Schumer--the Federal Trade Commission is finally going after companies responsible for those supremely annoying car warranty robocalls.

You know the ones I’m talking about, I’m sure. They’ve been occurring since 2007 and go something like this: “This is the second notice that the factory warranty on your vehicle is about to expire.” Hang up and the machine calls you again later. Transfer to a “warranty specialist” and ask to be taken off the call list and you’re either hung up on or, in my case, given an 800 number to call that turns out to be a phone sex line.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/05/telemarketers_666-150x150.jpg" alt="telemarketers_666" title="telemarketers_666" width="150" height="150" class="alignright size-thumbnail wp-image-17801" />After more than one billion unsolicited calls and some 30,000 complaints&#8211;<a href="http://schumer.senate.gov/new_website/record.cfm?id=312914">one from Senator Charles E. Schumer</a>&#8211;the Federal Trade Commission is finally going after companies responsible for those <a href="http://online.wsj.com/article/BT-CO-20090515-717706.html">supremely annoying car warranty robocalls</a>.</p>
<p>You know the ones I’m talking about, I’m sure. They&#8217;ve been occurring since 2007 and go something like this: &#8220;This is the second notice that the factory warranty on your vehicle is about to expire.” Hang up and the machine calls you again later. Transfer to a “warranty specialist” and ask to be taken off the call list and you’re either hung up on or, in my case, given an 800 number to call that turns out to be a phone sex line.</p>
<p>In complaints filed in United States District Court in Chicago, the agency accuses telemarketer <a href="http://www.ftc.gov/os/caselist/0823263/index.shtm">Voice Touch</a> and warranty outfit <a href="http://www.ftc.gov/os/caselist/0923110/index.shtm">Transcontinental Warranty</a> of <a href="http://www.google.com/hostednews/ap/article/ALeqM5jFpGIsUi1KVrRr07BBoVqLrkz0ZQD98729IO0">deceptive sales practices and violating telemarketing rules</a> with their relentless prerecorded sales pitches for extended vehicle warranties. Among the companies’ numerous violations: dialing every number in a given area code, including those listed in the National Do Not Call Registry; robocalling 911 emergency centers; regularly spoofing call recipients by transmitting phony Caller ID information so that call they can’t identify the originating number; and pressuring consumers into purchasing  bogus extended service contracts for their cars.</p>
<p>&#8220;This is one of the most aggressive telemarketing schemes the FTC has ever encountered,&#8221; <a href="http://www.ftc.gov/opa/2009/05/robocalls.shtm">chairman Jon Leibowitz said in a statement</a>. &#8220;I&#8217;m not sure which is worse, the abusive telemarketing tactics of these companies or the way they try to deceive people once they get them on the phone.&#8221;</p>
<p>Right on. One question though: If this is the most aggressive telemarketing scheme the FTC has ever encountered, why did it take the agency two years and 30,000 complaints to finally jump into action?</p>
<p>Anyway&#8230;</p>
<p>The FTC has asked for temporary restraining orders to halt the illegal robocalls, an asset freeze on both defendants and a permanent injunction that would force them to disgorge their ill-gotten gains. </p>
<p><strong>UPDATE:</strong> A federal judge has issued temporary restraining orders against the companies halting their &#8220;robo-dialer harassment.&#8221; He has also frozen their assets until a May 29 hearing on the FTC&#8217;s request for a preliminary injunction.</p>
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		<title>CEOs Gone Wild: Henry Nicholas Edition</title>
		<link>http://digitaldaily.allthingsd.com/20080605/nicholas/</link>
		<comments>http://digitaldaily.allthingsd.com/20080605/nicholas/#comments</comments>
		<pubDate>Thu, 05 Jun 2008 22:19:39 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[backdating]]></category>
		<category><![CDATA[Broadcom]]></category>
		<category><![CDATA[cellphone]]></category>
		<category><![CDATA[chip-maker]]></category>
		<category><![CDATA[drug]]></category>
		<category><![CDATA[entrepreneur]]></category>
		<category><![CDATA[Henry Nicholas]]></category>
		<category><![CDATA[indictment]]></category>
		<category><![CDATA[philanthropist]]></category>
		<category><![CDATA[stock options]]></category>
		<category><![CDATA[violations]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/20080605/nicholas/</guid>
		<description><![CDATA[According to Forbes, former Broadcom Corp. chief and founder Henry Nicholas ranks 677th on the list of the world’s wealthiest individuals. But according to a federal indictment unsealed today, he’d rank quite a bit higher on a list of the world’s most debauched.]]></description>
			<content:encoded><![CDATA[<p><img src='http://digitaldaily.allthingsd.com/files/2008/06/nicholas.jpg' class='centered' style="border: 1px solid #000;" alt='nicholas.jpg' /><br />
<blockquote>
I am a media-relations nightmare. I never prep, and I generally say what I think&#8211;and sometimes I say things before I think. I don’t know how many times people in the company have heard me say something to a reporter and later told me, &#8216;Jesus Christ, that’s going to be in the paper!&#8217;&#8221;</p>
<p>&#8211;<a href="http://www.ocweekly.com/features/features/henry-nicholas-superhero/19836/">Henry Nicholas, July 2004</a>
</p></blockquote>
<p>According to Forbes, former Broadcom Corp. chief and founder Henry Nicholas ranks 677th on the list of the world&#8217;s wealthiest individuals. But according to a federal indictment unsealed today (full document below), he&#8217;d rank quite a bit higher on a list of the world&#8217;s most debauched. Scattered among <a href="http://online.wsj.com/article/SB121268699951048997.html">charges related to improperly backdating stock options while he led the computer and cellphone chip-maker</a> are some heavy drug violations. According to the indictment, it seems that while Nicholas was fraudulently backdating stock options that resulted in more than $2 billion of restated expenses,<a href="http://www.nytimes.com/2008/06/06/technology/06broadcom.html"> he was also conspiring to distribute controlled substances</a>. </p>
<p>Those he didn&#8217;t use himself, that is. From the indictment: </p>
<blockquote><p>
In or around 2001, Nicholas distributed and used controlled substances during a flight on a private plane between Orange County and Las Vegas, causing marijuana smoke and fumes to enter the cockpit and requiring the pilot flying the plane to put on an oxygen mask.&#8221;
</p></blockquote>
<p>Nicholas also apparently had a habit of spiking the drinks of associates and customers with drugs. Generally ecstasy. Hell of a way to close a sales meeting, eh?</p>
<p>As noted here before, it&#8217;s hard to believe that an entrepreneur and philanthropist like Nicholas would conduct himself like a roadie on Zeppelin’s debauched 1973 tour. But then no one probably thought he was serious about building that <a href="http://digitaldaily.allthingsd.com/20070720/nicholas-sex-lair/">subterranean sex lair,</a> either. Anyway, here&#8217;s the drug indictment. Click on the box in the far right-hand corner to enlarge:</p>
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