Chicago to Tax Streaming Providers

Netflix Streaming July 2015

Wow, 9% is rather a large increase to my Netflix bill. I wonder if databases like Hoover’s  will be affected? Seems like they might. 

Chicagoans who pay to stream movies and music from services like Netflix and Spotify will now need to fork over an additional 9 percent for the privilege, as will Chicago businesses that pay to use everything from real estate to court databases online, under a decision the city quietly made recently to expand its taxing power.

The added costs are the result of a ruling by the city Finance Department that extends the reach of ordinances governing two types of taxes — the city amusement tax and the city personal property lease transaction tax — to cover many products streamed to businesses and residents alike.

According to the Finance Department changes, the 9 percent amusement tax, which has mostly been tacked onto tickets to concerts and sporting events, also now applies to paid subscriptions for streamed digital music and to streamed rental movies or TV shows, and “for the privilege of participating in games, on-line or otherwise,” if the person paying to receive the data is in Chicago.

 …

The personal property lease transaction tax expansion also applies to professional services, like electronic property databases real estate agents use, court case databases lawyers rely on and various financial information networks.

 

(click here to continue reading City extends taxing power to online movies, music, more – Chicago Tribune.)

Could I get around this by using a VPN? 

Amtrak Plans Long Overdue Union Station Makeover

Reign In Your Instincts
Reign In Your Instincts…

I’m pleased to note that Union Station is getting a rehab, a long over-due rehab, opening up hidden rooms and so forth. Can’t wait – Union Station is such an iconic Chicago building, yet it has been seemingly neglected for a while, probably due to the inexplicable animosity the GOP has towards Amtrak and passenger trains in general.

John Hilkevitch reports:

Amtrak is betting millions of dollars to transform Union Station into an entertainment and tourist destination, complete with restaurants and outdoor cafes, retail, a hotel and even a grocery store, Getting Around has learned.

Amtrak wants to open up thousands of square feet of space long closed to the public, literally throwing open the doors to the 90-year-old building in a bid to return the landmark station to its heyday in the 1940s and ’50s.

Hidden deep inside Union Station are palatial rooms with 33-foot-high ceilings and assorted alcoves that have been mothballed for decades. During the golden age of passenger rail, those spaces were filled with ritzy restaurants, coffee shops (including the fabled Harvey House), a dance hall, tailoring shops specializing in custom suits, law offices and more.

Behind locked doors is the former Women’s Waiting Room, adorned with murals dating to the station’s opening in 1925, a period when female passengers would take refuge from the rough-and-tumble of traveling alone and freshen up during a stopover in Chicago by using pay showers.

Other hidden spaces, tucked behind the station’s marble walls and ornamental iron bars that cover part of the building’s facade, collect dust. Some of Union Station’s doors fronting Canal Street, potential portals to outdoor cafes, haven’t been cracked open in years, officials said.

Sanders said a well-known high-end grocery chain has expressed interest in opening a food emporium at Union Station. Sanders also said he envisions a hotel on the station’s second floor, with the hotel entrance and marquee on Adams Street between Canal and Clinton streets. He’s already dreaming about reinstalling canopies that once gracefully draped the entrances to Union Station, he said.

(click here to continue reading Amtrak plans Union Station makeover – Chicago Tribune.)

Ready to Take That Night Train To Memphis
Ready to Take That Night Train To Memphis

Either Whole Foods or Mariano’s, I’d guess, even though both have stores nearby on Halsted. 

Got the Wine Country Blues
Got the Wine Country Blues

And I should pop over, and snap a few photos of the staircase in its current worn condition, just for posterity.

In the meantime, the Canal Street entrances will be closed for more than two months starting around July 15, when work is scheduled to begin to replace both sets of the worn marble steps connecting the Great Hall to the station’s main entrance on Canal, where CTA buses stop. The combination deli and bar under the steps has closed in preparation for the work.

The friction from countless pairs of shoes over the years has effectively sanded down the marble, creating indentations on the treads of the steps, which display the most wear and tear near the brass railings.

The grand staircases are famous in their own right, having been filmed and photographed repeatedly in images seen around the world. There’s a dramatic scene in the 1987 film “The Untouchables” where Kevin Costner, playing mob crime fighter Eliot Ness, exchanges gunfire with Al Capone’s gang while a runaway baby carriage rolls bump by bump down the marble stairs.

New marble for the steps was recently cut out of the same quarries near Rome where 100 years ago the marble for the original Union Station steps was mined, Sanders said.

300 S Jackson - Ilford Delta 100
300 S Jackson – Ilford Delta 100

Publishers Weigh Ways to Fight Ad Blocking

ATM$ Inside
ATM$ Inside…

Adblocking software is a default installation for any browser on any computer I set up, usually using Ghostery. I am frequently amazed at the sheer amount of tracking code a typical publisher uses. Dozens and dozens of third party cookies, sometimes even more.

Browsing the web without ads is actually kind of nice. No popups stealing your screen. No autoplaying video ads making the page load as slowly as if it were being dialed up through America Online circa 1999. And millions of people seem to agree. They’ve installed extensions to their web browsers that delete the ads from most, if not all, of of the sites they visit. One popular ad blocker, AdBlock Plus, claims that it’s been installed on people’s browsers more than 400 million times and that it counts “close to 50 to 60 million active users,” said Ben Williams, communications and operations director at Eyeo, the company that makes AdBlock Plus.

Ad blocking isn’t a new issue. People have been installing these extensions for years. But those people were considered a fringe group. But that group is getting closer to the mainstream as kids who grew up browsing the web on their parents’ computers are getting their own laptops that they can customize all the way.

And advertisers’ target audience du jour — millennials — appear to be more likely to use ad blockers than any other age group. Of the survey respondents who were between the ages of 18 and 29 years old, 41% said they use ad blockers. As further evidence ad blocking isn’t abating, Mr. Williams said AdBlock Plus has averaged 2.3 million downloads a week since 2013.

(click here to continue reading Publishers Weigh Ways to Fight Ad Blocking | Media – Advertising Age.)

Nelson Muntz Furniture
Nelson Muntz Furniture

If the trend continues, the ad-supported model of web publishing will die soon. I’m not sure what will replace it – a subscription model I guess – but web publishers did themselves no favors by making ads increasingly more obnoxious. Autoplay videos are evil, and I cannot wait until Apple allows ad blocking software on iPhones and iPads.

Ad blocking extensions have been possible on Safari for Mac for a long time, but plugin architecture for Safari on iOS is much more limited. With iOS 9, Apple has added a special case of extension for ad blockers. Apps can now include ‘content blocker’ extensions that define resources (like images and scripts) for Safari to not load. For the first time, this architecture makes ad blockers a real possibility for iOS developers to make and iOS customers to install and use.

The inclusion of such a feature at this time is interesting. Apple is also pushing its own news solution in iOS 9 with the News app, which will include ads but not be affected by the content blocking extensions as they only apply to Safari. There is also clearly the potential for Safari ad blockers to hurt Google, which seems to be a common trend with Apple’s announcements recently…

(click here to continue reading iOS 9 lets app developers make ad blockers for Safari | 9to5Mac.)

Blocking ad tracking is also parenthetically about user privacy, and Apple is more likely to increase capabilities for its customers to opt out of the massive marketing databases of contemporary corporations like Acxiom, with the exception of inclusion in Apple’s own massive database of course. Apple is not a benevolent grandmother, but at least they are being more open about their marketing and data collection practices than some of their technology company peers.

Apple’s senior vice president of software engineering, Craig Federighi, who was onstage to present new “proactive” artificial intelligence features of the next iPhone operating system, paused before one of the slides to make the company’s devotion to privacy clear.

Yes, he said, the new software will try to anticipate your information needs, based on things like your calendar and location — something that its rival, Google, already does. But, Federighi added, “we do it in a way that does not compromise your privacy. We don’t mine your email, your photos, or your contacts in the cloud to learn things about you. We honestly just don’t wanna know.”

He continued: “All of this is done on [the] device, and it stays on [the] device, under your control.” And Apple says that if it does have to perform a lookup [online] on your behalf, it’s anonymous, it’s not associated with your Apple ID, and it’s not shared with third parties.

In case you missed that point, Federighi immediately repeated: “You are in control.”

(click here to continue reading Walt Mossberg: Apple’s Latest Product Is Privacy | Re/code.)

Waste Your Time and Money
Waste Your Time and Money

We are talking significant revenue at stake already:

“Consumers want a faster web, significantly less tracking by unknown third parties and clean, well-lit media experiences. [Apple’s mobile ad-blocking plan] just accelerates it, and opens up a significant share of the marketplace,” said Jason Kint, CEO of online publisher trade group Digital Content Next. That significant share would significantly cut into publishers’ revenues. Take the biggest digital ad seller — Google — as a proxy. PageFair has estimated that Google, which made $59.1 billion from advertising in 2014, lost $6.6 billion that year because of ad blocking. As Vice’s chief digital officer Mike Germano said at an industry conference in New York earlier this month, “I love my audience, but fuck you, ad blockers — 20% of my revenue is gone.”

How to Get Your Business To Show Up On Google
How to Get Your Business To Show Up On Google

A Trans-Pacific Partnership Overview

Hapag-Lloyd
Shipping containers, Seattle.

More details about the TPP, and more reasons for Democrats1 to oppose it.

Have you heard? The TPP is a massive, controversial “free trade” agreement currently being pushed by big corporations and negotiated behind closed doors by officials from the United States and 11 other countries – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The TPP would expand the North American Free Trade Agreement (NAFTA) “trade” pact model that has spurred massive U.S. trade deficits and job loss, downward pressure on wages, unprecedented levels of inequality and new floods of agricultural imports. The TPP not only replicates, but expands NAFTA’s special protections for firms that offshore U.S. jobs. And U.S. TPP negotiators literally used the 2011 Korea FTA – under which exports have fallen and trade deficits have surged – as the template for the TPP. In one fell swoop, this secretive deal could:

In one fell swoop, this secretive deal could:

 

Although it is called a “free trade” agreement, the TPP is not mainly about trade. Of TPP’s 29 draft chapters, only five deal with traditional trade issues. One chapter would provide incentives to offshore jobs to low-wage countries. Many would impose limits on government policies that we rely on in our daily lives for safe food, a clean environment, and more. Our domestic federal, state and local policies would be required to comply with TPP rules.

The TPP would even elevate individual foreign firms to equal status with sovereign nations, empowering them to privately enforce new rights and privileges, provided by the pact, by dragging governments to foreign tribunals to challenge public interest policies that they claim frustrate their expectations. The tribunals would be authorized to order taxpayer compensation to the foreign corporations for the “expected future profits” they surmise would be inhibited by the challenged policies.

(click here to continue reading Trans-Pacific Partnership.)

especially since corporate America is so gung-ho for the agreement:

As big a setback as Friday’s vote on Capitol Hill was for President Obama’s efforts to advance his trade agenda, it was an even bigger rebuff for the leaders of American business.

While there are deep divisions over trade policy among Democrats, and to some extent among Republicans as well, corporate America has been nearly unified in its support of a deal that would lower various barriers to trade and investment between the United States and 11 other Pacific Rim nations.

Though many sought to put the best face on the vote, business groups and chief executives were quick to voice their displeasure with the House’s rejection of aid to workers harmed by imports, which could doom prospects for eventual approval of a wider trade pact.

(click here to continue reading Business Leaders React With Dismay to Defeat of Trade Bill – NYTimes.com.)

You Are A Wanderer By Trade
You Are A Wanderer By Trade

But still, the Democrats are to blame, not the Republicans who have majorities in both House and Senate…

Although certainly a minority, a few business groups oppose the trade pact. Unions, environmental groups and many liberals are also opposed. Many critics cited the job losses that followed the signing of North American Free Trade Agreement more than two decades ago.

There was also some applause for the defeat from groups like the American Sustainable Business Council, a network of progressive business organizations.

“The T.P.P. would give multinational corporations unprecedented power to evade safeguards that protect consumers, workers and the environment. It would hurt smaller, innovative businesses,” said David Levine, the group’s co-founder.

While most economists generally support the White House’s trade agenda, some on the left have kept up a steady drumbeat, warning that it has been structured primarily to advance the interests of Wall Street and major corporations doing business abroad.

(click here to continue reading Business Leaders React With Dismay to Defeat of Trade Bill – NYTimes.com.)

Yeah, economists like the NYT’s own Paul Krugman, who isn’t mentioned in this article, but who says he is against the TPP. 

Footnotes:
  1. and Republicans []

Democrats Always Take The Blame

F Trade
F Trade

I’m probably not the only one amused at the framing of the defeat of the Trans-Pacific Partnership Trade Deal. You see, even though Republicans have majorities in both House and Senate, the TPP failed solely because of those intransigent Democrats!  How dare they vote out of lockstep with the President?

The Chicago Tribune’s headline spells it out:

The House vote Friday included two related measures, both of which had to pass in order to send the legislation — which was approved last month by the Senate — to the president’s desk.

A bill to give the president fast-track authority to negotiate future trade deals was approved by a 219-211 vote. But another measure regarding assistance funds to retrain workers — a program typically supported by Democrats — failed 126-302 largely because Democrats voted against it.

Because the Senate had previously approved both measures as a single bill, the House’s failure to pass the retraining measure prevented the overall package from advancing. Supporters plan to hold another vote on the retraining bill early next week, giving the White House and congressional Republicans another chance to drum up votes.

Obama’s push for the legislation was his biggest lobbying effort since the 2010 passage of the Affordable Care Act. He personally pressed fellow Democrats to support the measure in a meeting Friday morning on Capitol Hill and during an unscheduled appearance Thursday night at the annual congressional ballgame at the Nationals ballpark.

(click here to continue reading Obama suffers big loss as trade bill is defeated at hands of Democrats – Chicago Tribune.)

from the NYT, a slightly less pointed version:

He made it personal. He appealed to their loyalty. He asked them to give him what every modern president has had. He argued the facts, disputed the politics, quarreled over the history and at times lashed out at those who still refused to stand with him.

Yet in the end, after years of frustration with Republicans blocking his ideas in Congress, President Obama on Friday found the most sweeping legislative initiative left on his agenda thwarted not by the opposition but by his own party. If not for his fellow Democrats, Mr. Obama would have a landmark trade bill heading to his desk for signature.

(click here to continue reading Washington Dysfunction, With a Twist: Democrats Desert Their President – NYTimes.com.)

The Wall Street Journal’s perspective is clear: Obama should just resign now since there are only 2 years left in his term…

House Democrats dealt President Barack Obama a major setback in his bid for expanded trade-negotiating powers, roundly rejecting on Friday a workers-aid program that was a key component of the bill and leaving the White House’s trade agenda in limbo.

While stinging, the vote was not the last word in the trade fight, as House Speaker John Boehner (R., Ohio) said there would be a re-vote by Tuesday on extending the aid program, which is designed to help workers hurt by international trade.

But Friday’s defeat showed the degree to which Mr. Obama’s trade agenda is on shaky ground in Congress. The House voted against the workers-aid program by 126-302. To improve those numbers, House Republican leaders, the White House and pro-trade businesses will need to find ways to win over a combination of Democrats who are skeptical of the overall trade push and Republicans leery of supporting the aid package.

It also underscored the waning influence of a second-term president, particularly on an issue many Democrats see as toxic to their re-election prospects, given concerns in their districts that U.S. jobs are being sent overseas.

 

(click here to continue reading House Deals Blow to Obama’s Bid for Trade Deal, Rejects Worker-Aid Program – WSJ.)

You get the idea.

speculative commodities trades
 What about the bill being defeated because it is a boondoggle? 

The political battle over the enormous, twelve-nation trade agreement known as the Trans-Pacific Partnership keeps getting stranger. President Obama has made the completion of the deal the number-one legislative priority of his second term. Indeed, Republican opponents of the T.P.P., in an effort to rally the red-state troops, have begun calling it Obamatrade. And yet most of the plan’s opponents are not Republicans; they’re Democrats.

Obama’s chief allies in his vote-by-vote fight in the House of Representatives to win “fast-track authority” to negotiate this and other trade deals are Speaker John Boehner and Representative Paul Ryan—not his usual foxhole companions. The vote may come as soon as Friday. The House Republican leaders tell their dubious members that they are supporting Obama only in order to “constrain” him. Meanwhile, Obama is lobbying members of the Black Congressional Caucus, whose support he can normally count on, tirelessly and, for the most part, fruitlessly. “The president’s done everything except let me fly Air Force One,” Representative Cedric Richmond, Democrat of Louisiana, told the Christian Science Monitor this week. Nonetheless, Richmond said, “I’m leaning no.”

The long, bad aftertaste of NAFTA—the North American Free Trade Agreement, enacted in 1994—explains much of the Democratic opposition to the T.P.P. Ronald Reagan originally proposed NAFTA, but Bill Clinton championed it, got it through Congress mainly on Republican votes, and signed it. In many Democratic districts, NAFTA is still widely blamed for the loss of hundreds of thousands of American manufacturing jobs, and for long-term downward pressure on wages. When President Obama argues that the T.P.P. is not NAFTA, he is correct. It convenes Pacific Rim nations and economies of many stripes, from wealthy, democratic Japan to authoritarian, impoverished Vietnam, and it includes six countries with which the United States already has free-trade agreements. If enacted, it will encompass forty per cent of global economic activity. It is less a traditional trade deal than a comprehensive economic treaty and, at least for the United States, a strategic hedge against the vast and growing weight of Chinese regional influence. What exactly the T.P.P. will do, however, is difficult to know, because its terms are being negotiated in secret. Only “cleared advisors,” most of them representing various private industries, are permitted to work on the text. Leaked drafts of chapters have occasionally surfaced—enough to alarm, among others, environmentalists, labor groups, and advocates for affordable medicine.

(click here to continue reading Why Does Obama Want This Trade Deal So Badly? – The New Yorker.)

The Trade Union Vow
The Trade Union Vow

It’s hard to think of a fight that has showed President Obama to worse effect than his effort to pass Trade Promotion Authority and the Trans-Pacific Partnership over widespread Democratic opposition. His respect for his opponents has been at low ebb, and since many of his opponents in this fight are Democrats, that means we’ve seen him taking uncharacteristically nasty shots at people like Sen. Elizabeth Warren.

Now, in the aftermath of a vote in which the must-pass-to-pass-the-TPA Trade Adjustment Assistance was defeated, Obama used his weekly address to mislead about what’s going on. House Democrats overwhelmingly voted against the traditionally Democrat-supported assistance program for displaced workers because, according to the rule the House had adopted, TAA was linked to the fast-track TPA bill. No TAA, no TPA. Since TPA passed in the wake of TAA’s defeat, Republican leadership is bringing TAA back for another vote in hopes of getting it, and fast track along with it, through next week. That’s the weird, confusing procedural background—background Obama pretended does not exist as he touted the benefits of Trade Adjustment Assistance in his weekly address.

(click here to continue reading Obama misleads on trade assistance and fast track in weekly address.)

Lets Make a Deal
Lets Make a Deal

Paul Krugman calls it a defeat of the Davos Democrats, I like that phrase:

OK, I didn’t see that coming: even though I have come out as a lukewarm opponent of TPP, I assumed that it would happen anyway — the way trade deals (or in this case, dispute settlement and intellectual property deals that pretend to be about trade) always do. But no, or not so far.

A brief aside: I don’t think it’s right to call this a case of Washington “dysfunction”. Dysfunction is when we get outcomes nobody wants, or fail to do things everyone wants done, because there doesn’t seem to be any way to package the politics. In this case, however, people who oppose TPP voted down key enabling measures — that is, they got what they wanted. Calling this “dysfunction” presumes that this deal is a good idea — and that kind of presumption is precisely what got successfully challenged yesterday.

Or to put it another way, one way to see this is as the last stand of the Davos Democrats.

Davos Democrats are known as the people who told us to trust unregulated finance and fear invisible bond vigilantes. They just don’t have the credibility to pull off arguments from authority any more. And it doesn’t say much for their perspicacity that they apparently had no idea that the world has changed.
TPP’s Democratic supporters thought they could dictate to their party like it’s 1999. They can’t.

(click here to continue reading Decline and Fall of the Davos Democrats – NYTimes.com.)

A horrible new PayPal policy opts you into getting robocalls and spam texts

Take Action With Your Money
Take Action With Your Money, or we’ll call you at dinner…

How insanely misguided!

PayPal users, this is for you.

The payments company is rolling out an update to its user agreement that threatens to bombard you with “autodialed or prerecorded calls and text messages” — and worse, by agreeing to the updated terms, you’re immediately opted in.

PayPal can even reach you at phone numbers that you didn’t provide. Through undisclosed means, PayPal says it has the right to contact you on numbers “we have otherwise obtained.”

A PayPal spokesperson said it’s the company’s policy to “honor customers’ requests to decline to receive auto-dialed or prerecorded calls.”

But PayPal’s new terms don’t make that very clear.

“If you do not agree to these amended terms,” the revised document says, “you may close your account within the 30 day period and you will not be bound by the amended terms.”

(click here to continue reading A horrible new PayPal policy opts you into getting robocalls – The Washington Post.)

If this does in fact become policy, and PayPal1 start robocalling, I may have to rip my phone out of the wall. If I start getting spam texts from PayPal2, I may have to join that class action lawsuit that’s being written right now3.

Here’s the offensive language:

You consent to receive autodialed or prerecorded calls and text messages from PayPal at any telephone number that you have provided us or that we have otherwise obtained.  We may place such calls or texts to (i) notify you regarding your account; (ii) troubleshoot problems with your account (iii) resolve a dispute; (iv) collect a debt; (v) poll your opinions through surveys or questionnaires, (vii) contact you with offers and promotions; or (viii) as otherwise necessary to service your account or enforce this User Agreement, our policies, applicable law, or any other agreement we may have with you. The ways in which you provide us a telephone number include, but are not limited to, providing a telephone number at Account opening, adding a telephone number to your Account at a later time, providing it to one of our employees, or by contacting us from that phone number. If a telephone number provided to us is a mobile telephone number, you consent to receive SMS or text messages at that number. We won’t share your phone number with third parties for their purposes without your consent, but may share your phone numbers with our Affiliates or with our service providers, such as billing or collections companies, who we have contracted with to assist us in pursuing our rights or performing our obligations under this User Agreement, our policies, applicable law, or any other agreement we may have with you. You agree these service providers may also contact you using autodialed or prerecorded calls and text messages, as authorized by us to carry out the purposes we have identified above, and not for their own purposes. Standard telephone minute and text charges may apply if we contact you.

(click here to continue reading PayPal .)

Footnotes:
  1. and its parent, EBay []
  2. I barely use the service []
  3. probably []

Oil Industry Begs Court to Block Rail Transport Safety Rules Because of Cost

All That Meat and No Potatoes
All That Meat and No Potatoes…

Shocking, I know, but Exxon Mobil and Chevron, et al, don’t want to alter their profit streams, asking to be able to continue sending bomb trains throughout the country. The reason? Updating the safety equipment would cost money. What a compelling argument, worthy of a 6th grade debate team. 

The American Petroleum Institute, the industry’s main trade group, petitioned the United States Court of Appeals for the District of Columbia Circuit to block key provisions of the rules, which were unveiled this month by Anthony Foxx, the transportation secretary. The petition was filed on Monday.

The trade group, which represents companies like Exxon Mobil and Chevron, has long argued that forcing oil producers and shippers to use newer tank cars and replace older models would impose high costs on the industry and lead to a shortfall in tank car capacity.

The petition seeks to block a requirement that older tank cars be retrofitted with new safety features designed to prevent them from spilling oil or rupturing in a derailment. It also challenges a requirement that tank cars be equipped with new electronic braking systems or face operational restrictions.

 

(click here to continue reading Oil Industry Asks Court to Block Rail Transport Safety Rules – NYTimes.com.)

If Exxon Mobil were forced to spend $100,000,000 updating the bomb cars,  ((a number I just pulled out of the air, and probably a lot more than they would actually pay)) would it be a large enough number to reduce their annual profits measurably? In 2014 alone, ExxonMobil reported revenue of $394,105,000,000. Chevron’s reported revenue for 2014 was $211,970, 000,000 by the way. I would hazard a guess their accountants are top notch, and most of the costs of updating bomb trains would be written off as operating expense, right? The oil industry has been making immense, unimaginable profits for decades, or more.

In other words, protesting that updating the rail cars so that they don’t blow up communities and cause fires that last for weeks because updating the rail cars would cost too much is a lame argument. Cries pleading poverty from corporations as wealthy as Chevron is laughable. 

Love Is Letting Go
Love Is Letting Go

Not that the Transportation Department and Barack Obama will listen to me, but my negotiation points would include the tax subsidies the oil and gas industry currently enjoy: fix the bomb trains and you get to keep half of your tax subsidies. 

The oil industry’s lobbyists like to argue that its array of tax write-offs (which allow companies to deduct everything from drilling costs to the declining value of their wells) aren’t any different than other deductions for less publicly reviled companies. Cutting them will discourage new exploration and put jobs at risk, they claim.

Yet, some of the breaks are anachronisms that date back almost to the days of John D. Rockefeller. And in a world of permanently high crude prices, there’s very little rationale for subsidizing the bottom lines of companies like ExxonMobil and BP.   

Make no mistake, either: Those profits are perfectly healthy. Between drilling and refining, Exxon’s U.S. operations alone earned $7.5 billion after taxes in 2012. California-based Occidental Petroleum Corporation, one of the so-called “independent” oil companies and the top oil driller in Texas, raked in $7.1 billion via its oil and gas division. 

(click here to continue reading America’s Most Obvious Tax Reform Idea: Kill the Oil and Gas Subsidies – The Atlantic.)

N.F.L. Needed A Handout from Chicago To Host Draft Town

The Twelfth Player in Every Football Game
The Twelfth Player in Every Football Game…

I am not a fan of football – I couldn’t name five starters on any NFL team – but while reading about the Draft Town event that muddled up downtown traffic all weekend

When N.F.L. executives chose last year to move the draft for the first time in a half-century, the decision was based as much on issues in New York as opportunities elsewhere.

But the three-day event in Chicago went so well that the league now faces a new choice: whether to return here next year or move the draft to yet another city.

On Thursday and Friday, 110,000 people visited Draft Town, the free fan festival in Grant Park across the street from the theater where the draft was held. On Saturday, larger crowds were expected when selections in the fourth through seventh rounds were announced at the festival. The crowds far exceeded the league’s original estimates.

Many fans who came to Chicago were from N.F.L. cities within driving distance — Cincinnati, Cleveland, Detroit, Green Bay, Indianapolis, Kansas City, Minneapolis and St. Louis — giving the draft a Midwestern feel.

 “How could we not come?” said Alex Paszkowski, a Packers fan who drove 90 minutes from Milwaukee with two friends.

(click here to continue reading City for Next Year’s Draft? N.F.L. Could Have Its Pick – NYTimes.com.)

Rahm Has A Message For You
Rahm Has A Message For You…

I read this tidbit:

The league attracted sponsors for its fan festival and persuaded the host city, Chicago, to contribute. The success of the event this year could give the N.F.L. leverage in negotiations with other cities.

“When you negotiate with the N.F.L., you usually lose,” said Allen Sanderson, an economist at the University of Chicago, who added that while the draft helped market the city, it did not provide many economic benefits.

Wait, does that mean the City of Chicago got hosed by the NFL? One of the largest corporations on the planet – a nonprofit corporation even, for some crazy reason – needed a cash-strapped city’s funds to host an event that benefits only the NFL? /shakes fist at Rahm Emanuel  Mayor 1%

Your Data Is Not Safe at Anthem Nor At Other Healthcare Corporations

Classless Society

The next decade is going to be a continual escalation of these sorts of crimes. Many sectors of corporations have skimped on beefing up their security practices, making data theft easier for criminals to steal consumer data.

patient medical records typically include information not easily destroyed, including date of birth, Social Security numbers and even physical characteristics that make them more useful for things like identity theft, creation of visas or insurance fraud by falsely billing for expensive medical or dental procedures that were either never done or performed on someone else. Some criminals have also tried a form of so-called ransom ware in which they threaten to reveal medical information unless they are paid.

“The whole thing is evolving,” said Barbara Filkins, an analyst with the SANS Institute, which has studied the risk to the health care sector.

Hospital systems, for example, are increasingly asking for photo IDs and driver’s licenses in an effort to block patients who have stolen someone else’s medical identity, said John Barlament, a lawyer at Quarles & Brady in Milwaukee. The use of medical identity fraud is growing, he said. “It’s a one-way trend here,” he said.

(click here to continue reading Data Breach at Anthem May Lead to Others – NYTimes.com.)

Site of the Doctors' Commons
Site of the Doctors’ Commons

From my perspective, I hate when health care providers make copies of my drivers license and write down my social security number and so on. Why? Because I don’t trust that they will keep my data safe. Especially as there is a push to digitize health records, health practitioners need to have stronger data management and destruction policies. Should a dentist I visited once several years ago be able to keep all my information for ever? I guess I need to get a fake ID for these sorts of situations.

The push to digitize patient health records in hospitals and doctors’ offices has also made medical records increasingly vulnerable, according to security experts. Moving medical records from paper to electronic form allows both patients and providers better access, but it has also made patient records susceptible to breaches, whether unintentionally or through a criminal attack.

About 90 percent of health care organizations reported they have had at least one data breach over the last two years, according to a survey of health care providers published last year by the Ponemon Institute, a privacy and data protection research firm. The founder, Larry Ponemon, a security expert, says most were because of employee negligence or system flaws, but a growing number are malicious or criminal.

Last year, 18 health care providers reported data breaches because of some form of hacking. Information at Centura Health was compromised last year after a phishing scheme obtained access to employee email accounts. The data included, in some instances, Social Security numbers, Medicare beneficiary numbers and clinical information for 12,000 patients of the facility, based in Englewood, Colo. In another case, a keystroke logger virus that infected three computers for a few weeks early last year at the student health center at the University of California, Irvine, may have captured patient’s health and dental insurance numbers and diagnoses.

Health care providers have sharply increased their spending on data security in the last year, but they remain technologically far behind other industries, say experts.

(click here to continue reading Data Breach at Anthem May Lead to Others – NYTimes.com.)

Apple Response To National Center for Public Policy Research Re Climate Change

Apple Store with Tree
Apple Store with Tree

From Apple, Inc.’s 2015 Proxy Statement is this proposal from conservative think tank, The National Center for Public Policy Research. We’re quoting the proposal, and Apple’s response to it (which boils down to a long-winded no, are you crazy?, for many reasons). This think tank exists mostly for the task of “dispelling the myths of global warming by exposing flawed economic, scientific, and risk analysis”, and to publicly scold corporations that drop support for ALEC, so you can imagine why they are pressuring Apple. For the lolz, of course. And to support their corporate masters…

On page 62 of the Proxy Statement:

Proposal No. 5 – Shareholder Proposal The Company has been advised that The National Center for Public Policy Research, 501 Capitol Court, N.E., Suite 200, Washington, D.C 20002 (the “NCPPR”), which has indicated it is a beneficial owner of at least $2,000 in market value of the Company’s common stock, intends to submit the following proposal at the Annual Meeting: Risk Report

and the proposal:

WHEREAS, The Securities and Exchange Commission has recognized that climate change regulations, policy and legislation pose a business risk to companies. One risk is that federal, state and/or local government policies, adopted in whole or in part due to climate change concerns, that subsidize renewable energy and upon which company business plans rely may be repealed or altered. These changes in policy may be significant, and may come with little advance notice to the company.

RESOLVED: Shareholders request that the Board of Directors authorize the preparation of a report, to be issued by December 2015, at a reasonable cost and excluding proprietary information, disclosing the risk to the company posed by possible changes in federal, state or local government policies in the United States relating to climate change and/or renewable energy.

concluding with

Apple Inc. has made renewable energy a priority. The Wall Street Journal reported on September 17, 2013, “Apple Inc. now gets 16% of its electricity from solar panels and fuel cells that run on biogas.” One state in which Apple has significant renewable energy investments is North Carolina, which may soon repeal its law providing advantages for renewable energy production, following a report by two think-tanks concluding that this law will cost state consumers $1.845 billion between 2008 and 2021. Subsidies and policies favorable to renewable energy also are being challenged in other states and also at the federal level, where renewal of the approximately $12 billion wind production tax credit (PTC) is challenged annually and in the past has only been renewed at the very last minute, following closed-door negotiations by lawmakers. The PTC’s future is impossible to predict. 

Apple Logos
Apple Logos

Apple’s response:

The Company’s Statement in Opposition to Proposal No. 5 The Board recommends a vote AGAINST Proposal No. 5. This proposal would result in the production of a narrowly focused report that would yield an incomplete and therefore inaccurate analysis of the Company’s exposure to risks associated with changes in government policies with respect to climate change and renewable energy. In effect, the proponent is asking the Company to spend valuable time and limited resources analyzing hypothetical changes in U.S. federal, state or local governmental policies. The Company has already presented an analysis of the risks and opportunities associated with climate change on its website at www.apple.com/environment/climate- change and in its public filings with the SEC, as well as in a shareholder-requested and industry- recognized reporting tool, the CDP questionnaire.

and continues:

The additional report would therefore provide little to no additional value. As explained on its website, the Company believes climate change caused by emissions from burning fossil fuels is a real problem, and has committed to reducing the Company’s carbon footprint.

The Company also provides detailed information on its renewable energy and sustainability efforts in its annual Environmental Responsibility Report, available online at www.apple.com/environment/reports.
In 2014, the Company also provided detailed responses to the CDP questionnaire. Those responses, requested by shareholders, outline the Company’s views on the risks and opportunities of dealing with climate change. The report requested by the proponent would focus on one domestic aspect of climate change potential risk.

This approach distorts the global realities of climate change risk for the Company and its shareholders. The Company continually evaluates its reliance on both traditional and alternative energy sources and regularly makes decisions to mitigate the Company’s exposure to potential price increases, supply shortages and changes to federal, state and local government policies related to the environment. The Company’s public filings and reports already provide substantial disclosure regarding the Company’s approach to renewable energy and sustainability.

For example, with respect to regulatory risks, the Annual Report included a risk factor entitled “The Company is subject to laws and regulations worldwide, changes to which could increase the Company’s costs and individually or in the aggregate adversely affect the Company’s business.” This risk factor specifically addresses potential changes in laws and regulations, which could “make the Company’s products and services less attractive to the Company’s customers, delay the introduction of new products in one or more regions, or cause the Company to change or limit its business practices.”

The report requested by the proposal would not, in substance, provide any more meaningful detail than the Company’s existing disclosures nor would it justify the use of significant resources associated with preparing such a report. The Company believes that the fulsome disclosure already publicly available in the Company’s public filings and on the Company’s website are more than adequate to address the underlying issues outlined in the proposal. The Company also believes that producing the report requested by the proposal would not be an efficient use of Company resources nor an effective way to protect shareholder value.

Let’s hope this proposal fails. I voted against it1

Footnotes:
  1. I once bought 11 shares of Apple with some extra money I made, I only regret I didn’t purchase more, especially as these shares have risen dramatically in value, and then split seven-for-one in 2013. If I had bought more Apple shares when they were $85 instead of paying health insurance, for instance, maybe I could have some money in the bank… []

Regulatory Reform As A Cover for Corporations to Skirt Laws

Will Obama have to resort to veto pen finally, now that Harry Reid is no longer blocking ridiculous GOP bills from getting passed? I guess we’ll soon see. And the real test will be on the non-sexy things, like regulatory reform.

Please  Vote 

Obama Has Only Vetoed 2 Bills. That’s About to Change—Thanks to Democrats | Mother Jones: “Regulatory reform: By far the least sexy of the topics that might be forced on Obama, changes to how the government writes its rules could pose the biggest trouble for the president. Unlike finance, environmental rules, or health care reform, it’s an obscure topic unlikely to garner an outpouring of public outcry. These are changes portrayed as making government more sensible and business-friendly, always a favorite image to project by moderate Democrats who still cling to Bill Clinton’s mantra of deconstructing Big Government, yet they could stymie efforts to write rules for those specific policy areas.

Changes to how the government writes rules ‘seem both kind of technical and innocent, because they talk about things like cost-benefit analysis, or increasing judicial review, or more economic requirements to help small business’ says Lisa Gilbert, director of Public Citizen’s Congress Watch. ‘Things that don’t sound threatening and maybe even ease tensions with constituents who don’t really like the idea of red tape and have this idea that if we change it at the federal level lots would be easier at home.’ But in essence, these rules just offer cover for big business to delay the laws that they don’t want to comply with—continuing to set their own rules and skating by for years after the public thinks they’ve already been kept in check.

Last week, the House passed the Regulatory Accountability Act, a bill that would force all agencies to conduct a cost-benefit analysis for each rule. This process tends to favor business interests over consumers. The bill would also make it easier for judges to toss aside rules and force agencies to hold lengthy public hearings for each rule they consider. Past iterations of this bill have received support from Senate moderates like Florida’s Bill Nelson, Maine’s King, and West Virginia’s Manchin.

That group of 10 to 15 Democrats willing to break from the rest of the party aren’t hiding their plans. ‘If Republicans want a minimum of six or more Democrats to work with them,’ Manchin said earlier this month, ‘and they’re sincere about policy and good policy moving forward, they’re definitely going to reach out, and I’ve reached out to them.'”

(Via http://www.motherjones.com/politics/2015/01/barack-obama-veto-moderate-senate-democrats)

Is Fracking About To Burst The Economy?

The Myth of Trust
The Myth of Trust

I ran across a quite interesting discussion of the history of the Oklahoma oil boom in the 1970s and its subsequent bust in the early 1980s, which is linked with the story of Penn Square Bank. There is a book by Phillip Zweig specifically on this topic, called Belly Up: The Collapse of the Penn Square Bank, I think I’ll have to look for a copy.

If you have a moment, you should read the entire essay.1

History aside, what about the current situation with oil prices cratering? Are we in trouble?

Now of course a debacle of the Penn Square variety requires at least one other thing, which is a banking industry so fixated on this quarter’s profits that it can lose track of the minor little fact that lending money to people who can’t pay it back isn’t a business strategy with a long shelf life. I hope none of my readers are under the illusion that this is lacking just now. With interest rates stuck around zero and people and institutions that live off their investments frantically hunting for what used to count as a normal rate of return, the same culture of short-term thinking and financial idiocy that ran the global economy into the ground in the 2008 real estate crash remains firmly in place, glued there by the refusal of the Obama administration and its equivalents elsewhere to prosecute even the most egregious cases of fraud and malfeasance.

Now that the downturn in oil prices is under way, and panic selling of energy-related junk bonds and lower grades of unconventional crude oil has begun in earnest, it seems likely that we’ll learn just how profitable the fracking fad of the last few years actually was. My working guess, which is admittedly an outsider’s view based on limited data and historical parallels, is that it was a money-losing operation from the beginning, and looked prosperous—as the Oklahoma boom did—only because it attracted a flood of investment money from people and institutions who were swept up in the craze. If I’m right, the spike in domestic US oil production due to fracking was never more than an artifact of fiscal irresponsibility in the first place, and could not have been sustained no matter what. Still, we’ll see.

The more immediate question is just how much damage the turmoil now under way will do to a US and global economy that have never recovered from the body blow inflicted on them by the real estate bubble that burst in 2008. Much depends on exactly who sunk how much money into fracking-related investments, and just how catastrophically those investments come unraveled.  It’s possible that the result could be just a common or garden variety recession; it’s possible that it could be quite a bit more. When the tide goes out, as Warren Buffet has commented, you find out who’s been swimming naked, and just how far the resulting lack of coverage will extend is a question of no small importance.

At least three economic sectors outside the fossil fuel industry, as I see it, stand to suffer even if all we get is an ordinary downturn. The first, of course, is the financial sector. A vast amount of money was loaned to the fracking industry; another vast amount—I don’t propose to guess how it compares to the first one—was accounted for by issuing junk bonds, and there was also plenty of ingenious financial architecture of the sort common in the housing boom. Those are going to lose most or all of their value in the months and years ahead. No doubt the US government will bail out its pals in the really big banks again, but there’s likely to be a great deal of turmoil anyway, and midsized and smaller players may crash and burn in a big way. One way or another, it promises to be entertaining.

(click here to continue reading The Archdruid Report: Déjà Vu All Over Again.)

We’ll see, but it might be a good time to start putting a few Krugerrands under your mattress…

Gold Coins
Gold Coins

Footnotes:
  1. The bank is often cited as being partly responsible for the collapse of Continental Illinois National Bank and Trust Company of Chicago, which had to write-off some US$500+ million in loans purchased from Penn Square. []

Spain’s Google News Shutdown Is a Silly Victory for Publishers

Daily News
Daily News.

As we suspected, having traffic to Spanish news sites drop by 5%-15% is kind of a big deal…

We call it the “Google News bump.” When a story on WIRED.com gets a link on the front page of Google News, traffic skyrockets. Readers click. Ads are served.

But in Spain, at least, the Google News bump is no more. On Tuesday, Google shut down Google News in Spain in response to a law that requires news aggregators to pay a fee for the right to post snippets of stories. Big Spanish publishers pushed for the law, but their math is hard to fathom. Without Google News, they get no bump, nor do they get any fee. Trying to stick it to Google is an understandable impulse, a resentment fed by the company’s monolithic influence over the web. But all the shutdown really shows is how powerless traditional publishers really are.

But where I work, at least, a 5 percent traffic dip wouldn’t exactly be something to celebrate, much less lobby lawmakers to effectively codify. And as GigaOm’s Mathew Ingram says, the damage could be worse. The chief data scientist at Chartbeat, a web service many publishers use to monitor real-time reader traffic, told Ingram that the average falloff in the hours since the Google News shutdown was more like 10 to 15 percent.

(click here to continue reading Spain’s Google News Shutdown Is a Silly Victory for Publishers | WIRED.)

and as many people have noted: removing all Google News traffic benefits the larger media companies at the expense of the smaller media companies. Google News links to both: sites you’ve heard of, and sites you haven’t. If you don’t regularly visit the websites of smaller news organizations, you probably won’t.

Apple Easily Wins iPod Antitrust Trial

Tech Graveyard
Tech Graveyard.

Briefly, since we marveled at this ridiculous lawsuit recently, the iPod DRM Class Action litigation lost in front of a jury:

A jury ruled in favor of Apple Inc. on Tuesday in a class-action lawsuit that accused the technology giant of violating antitrust laws by suppressing competition for its iPod music players.

After deliberating for only a few hours, an eight-person jury in U.S. District Court in Oakland, Calif., found that Apple’s iTunes 7.0 was a genuine product improvement, and therefore not a violation of antitrust laws. The decision was unanimous.

The plaintiffs had said Apple made changes to its iTunes music service so that iPods wouldn’t operate with other companies’ products, driving up the cost of the devices. The plaintiffs, representing an alleged eight million harmed consumers, were seeking $350 million in damages, which could have been tripled under antitrust laws.

(click here to continue reading Apple Wins iPod Antitrust Trial – WSJ.)

Dead 4G iPod
4G iPod

Another amusing part of this trial was that the original plaintiffs were thrown out since they didn’t even own iPods during the time in question. Embarrassing for the plaintiffs’ legal team, and a ridiculous waste of the court’s docket…

The lawyers fighting Apple in a class-action lawsuit involving iPods have managed to do a few remarkable things: They persuaded a judge to bring a decade-old lawsuit to trial here last week, for one. They even managed to drag the famous Steve Jobs into giving a videotaped testimony shortly before he died three years ago.

But they have one big problem: Their case has no plaintiff.

A federal judge on Monday disqualified the only remaining plaintiff in the case, Marianna Rosen of New Jersey, after Apple’s lawyers successfully argued that she did not even buy any iPods for which she is seeking damages.

The judge appeared annoyed about the discrepancies with Ms. Rosen’s iPods and scolded the plaintiff lawyers for failing to do their homework. Another plaintiff in the case dropped out last week.

 …

Last week, Ms. Rosen testified that she had bought two iPods: an iPod Nano in the fall of 2007 and an iPod Touch in December 2008. Apple’s lawyer asked whether Ms. Rosen kept receipts for her purchases. Ms. Rosen said she probably did not have the paper receipts, but later said her iPod Touch was in her bag.

Apple’s lawyers looked up the serial number of Ms. Rosen’s iPod Touch and found records showing it was bought in July 2009. The class action seeks damages for iPods bought from September 2006 to March 2009. So this iPod Touch missed the cutoff.

Apple’s lawyers last Wednesday pointed out the discrepancy about Ms. Rosen’s iPod Touch in a letter to the judge. They also raised similar concerns about the second plaintiff’s iPod purchases. On Friday, the second plaintiff dropped out of the case, leaving Ms. Rosen as the lone plaintiff.

Ms. Rosen’s lawyers then provided Apple a receipt showing two iPod purchases made in September 2008. But Apple pulled up its copy of the receipt for those iPods, which indicated they were bought by the Rosen Law Firm, the firm owned by Ms. Rosen’s husband. Apple’s lawyers argued that these were not iPods bought directly by Ms. Rosen, and therefore she could not claim injury.

(click here to continue reading Setback for iPod Class-Action Lawsuit as Sole Plaintiff Is Disqualified – NYTimes.com.)

iPod Classic Returned From The Dead
iPod Classic  

Just ridiculous from the beginning. Speaking as a consumer who owned an iPod during this time, and could prove it, the litigation is (was?) groundless – I played music from many sources on my iPod without issue. And it would be like suing a CD manufacturer because some moron bought an 8-track tape and stuck it in a CD player, and the 8-track didn’t play. Is it the responsibility of the CD manufacturer to play every kind of music format ever created? No, this case was a joke.

Robbins Geller Rudman & Dowd should lose their license to practice law…

Bonney Sweeney, the antitrust attorney at Robbins Geller Rudman & Dowd who claims to represent the interests of 8 million aggrieved Apple customers, now represents nobody but a roomful of lawyers.

On Monday, Sweeney lost her last plaintiff, a resident of New Jersey named Marianna Rosen. It turns out the “supracompetitive” price Rosen claims to have paid in 2008 for an iPod (“greater than she would have paid, but for the antitrust violations alleged herein”) was charged to her law firm’s credit card.

(click here to continue reading How dumb is this Apple iPod antitrust suit?.)

Nano gift

iPod Nano 

Especially since this is their second bite of the apple…

After a judge rejected Version 1.0 of the lawsuit, CNET says, lawyers changed their tune to accuse Apple of making software updates that kept rival music stores off the iTunes platform.

This is typical in class-action land. As with any repeated game, class-action lawyers are a well-defined group of players who must establish a reputation for fighting hard in every case and racking up as much expenses on the defense side as they can, in order to induce companies to come to the settlement table. That’s where they make their money, and the convenient fiction that they are suing on behalf of consumers collapses as they get down to the real negotiations, which are over the fee they will be paid without any objections from their supposed opponents across the table.

But for the whole process to work, they still need clients. And those clients must have a case. Defense lawyers have slowly but steadily woken up to the fact that those clients often come with baggage — Bill Lerach, the founder of the predecessor to Robbins Geller, went to jail for paying his clients to appear in securities class actions — and they are digging into their backgrounds to find out if they can even serve as plaintiffs. This must strike some plaintiff lawyers as strange, since everybody knows the “client” is just a vehicle for assembling a case that often is already loaded in their computer, ready to be filed. But it’s the law

(click here to continue reading Whoops! No Plaintiff! Apple Tells Court iPod Owner Isn’t In Class She Represents.)

Mirrored

The current case involving iPods is complex, having evolved significantly since the original January 2005 filing. The suit initially alleged that Apple broke the law by restricting owners of its iPod to songs purchased only through iTunes. A court deemed that legal, however, and the plaintiffs have since altered the suit, alleging instead that Apple made a series of software updates to iTunes specifically designed to shut out competing music stores’ ability to load their songs onto iPods.

The case will aim to determine what effect Apple’s FairPlay technology — a so-called digital rights management tool that acts like a watermark made of code — had on the market for MP3 players when it restricted iPod owners to iTunes and how to interpret Apple’s behavior in protecting FairPlay using software updates. Apple refused to license FairPlay to competing music stores and would not allow other MP3 players to connect to iTunes.

Apple’s Isaacson says the iTunes 7.0 and 7.4 updates were designed to improve security and purposefully keep third parties like RealNetworks, which Apple still considers a hacker, out of its system. “Harmony was outdated when FairPlay was updated. All Apple was doing was updating FairPlay,” he said. “That’s what happens when you reverse engineer the product and there’s an update of that architecture.”

Neither RealNetworks nor any of the retailers named in the suit, including Best Buy and Walmart, have filed suits of their own. RealNetworks executives will not appear as witnesses.

(click here to continue reading Apple misled iPod owners, plaintiffs allege at class action trial – CNET.)

Tech and Media Companies Back Microsoft in Email Seizure Case

Over Under Sideways

Good for Microsoft, and good for the tech industry to rally behind Microsoft1

A broad array of organizations in technology, media and other fields rallied on Monday behind Microsoft’s effort to block American authorities from seizing a customer’s emails stored in Ireland.

The organizations filing supporting briefs in the Microsoft case included Apple, Amazon, Verizon, Fox News, National Public Radio, The Washington Post, CNN and almost two dozen other technology and media companies. A cross-section of trade associations and advocacy groups, from the American Civil Liberties Union to the United States Chamber of Commerce, and 35 computer scientists also signed briefs in the case, which is being considered in New York by the United States Court of Appeals for the Second Circuit.

“Seldom do you see the breadth and depth of legal involvement that we’re seeing today for a case that’s below the Supreme Court,” Bradford L. Smith, Microsoft’s general counsel, said in an interview.

The case involves a decision by Microsoft to defy a domestic search warrant seeking emails stored in a Microsoft data center in Dublin. Microsoft has argued that the search warrant could provide a dangerous precedent that is already leading to privacy concerns among customers. The case is especially relevant, the company says, to customers who are considering conducting more of their electronic business in the cloud.

(click here to continue reading Tech and Media Companies Back Microsoft in Privacy Case – NYTimes.com.)

Even the Faux Walls have eyes
Even the Faux Walls have eyes

You know who isn’t mentioned here or at Microsoft’s public blog page for this case? Google. I wonder why? Seems like a pretty high profile case to be siding with the US DOJ instead of privacy advocates.

Today represents an important milestone in our litigation concerning the U.S. Government’s attempt to use a search warrant to compel Microsoft to obtain and turn over email of a customer stored in Ireland. That’s because 10 groups are filing their “friend of the court” briefs in New York today.

Seldom has a case below the Supreme Court attracted the breadth and depth of legal involvement we’re seeing today. Today’s ten briefs are signed by 28 leading technology and media companies, 35 leading computer scientists, and 23 trade associations and advocacy organizations that together represent millions of members on both sides of the Atlantic.

We believe that when one government wants to obtain email that is stored in another country, it needs to do so in a manner that respects existing domestic and international laws. In contrast, the U.S. Government’s unilateral use of a search warrant to reach email in another country puts both fundamental privacy rights and cordial international relations at risk.  And as today’s briefs demonstrate, the impacts of this step are far-reaching.

Today’s briefs come from:

Leading technology companies such as Verizon, Apple, Amazon, Cisco, Salesforce, HP, eBay, Infor, AT&T, and Rackspace. They’re joined by five major technology trade associations that collectively represent most of the country’s technology sector, including the BSA | The Software Alliance and the Application Developers Alliance. These groups raise a range of concerns about the significant impact this case could have both on the willingness of foreign customers to trust American technology and on the privacy rights of their customers, including U.S. customers if other governments adopt the approach to U.S. datacenters that the U.S. Government is advocating here.

Seventeen major and diverse news and media companies, including CNN, ABC, Fox News, Forbes, the Guardian, Gannett, McClatchy, the Washington Post, the New York Daily News, and The Seattle Times. They’re joined by ten news and media associations that collectively represent thousands of publications and journalists. These include the Newspaper Association of America, the National Press Club, the European Publishers Council, and the Reporters Committee for Freedom of the Press. These organizations are concerned that the lower court’s decision, if upheld, will erode the legal protections that have long restricted the government’s ability to search reporters’ email for information without the knowledge of news organizations.

(click here to continue reading Business, Media and Civil Society Speak Up in Key Privacy Case – The Official Microsoft Blog.)

Footnotes:
  1. not a sentence I’d thought I’d type []