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Posts Tagged ‘attorney’

Nintendo has gone ahead and let loose some information concerning its early 2010 lineup of games and accessories. For starters, from February 14 onward there will be two new Wii Remote colors: pink and blue. These new controllers will feature the Wii MotionPlus add-on standard.

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Nintendo’s 2010 lineup features new games, colorful Wii remotes

This morning we broke the news that Canopy Financial, no. 12 on this year’s Inc. 500 list of fastest growing companies, is a complete sham.

And it’s no surprise that today, everyone is trying to point the finger at everyone else.

The company’s investment bank, Financial Technology Partners, which has represented Canopy Financial through at least two separate rounds of fraudulent fundraising, emailed to say:

“Hi there, I’d respectfully ask for some consideration here and would like to have our information / logos / screenshots taken off of your Canopy Financial posts. We clearly had no clue about any such wrongdoing and exposure to this is not something we are interested in. Understand you guys are all about the news, but we’re a small firm and had nothing to do with this. Please pass to Michael Arrington if you don’t mind.”

Let me just highlight one part of that email – “We clearly had no clue about any such wrongdoing.” Err, what? You are the investment bank that was out pitching the deal to venture capitalists. You proudly stated that you were the company’s “sole strategic and financial advisor.” And you never made a call to KPMG to see if they actually represented the company and if their financial statements were real? A 10 second phone call could have cleared this up before investors plowed $85 million into the company.

But even better is CEO Vikram Kashyap’s comment, which comes via his attorney:

Statement from Ismail Ramsey, Vik Kashyap’s Attorney Regarding Allegations of Fraud at Canopy Financial

Vik Kashyap had no prior knowledge whatsoever of any fraud regarding Canopy’s financial statements. He is as surprised as anyone about these allegations. He relied on financial and legal professionals in accepting the authenticity of the company’s financials. Going forward, he will leave his role as CEO of Canopy, but will remain as Chairman of the Board of Directors, helping to ensure that anyone who committed fraud is held fully accountable.

I mean, sure, he’s just the CEO. What does he know? The company was engaging in long term financial fraud with completely made up numbers. And he’s the victim. Never fear, though, he’s “helping to ensure that anyone who committed fraud is held fully accountable.”

Except himself.

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Facebook’s (now former) Chief Privacy Officer Chris Kelly doesn’t have to worry about frivolous privacy lawsuits any more. That’s because he’s moving on to run for Attorney General of California in the 2010 election. His Facebook campaign page is here.

Today, apparently, is Kelly’s 39th birthday. I know this because I was forwarded an email from his wife Jennifer asking recipients to donate to Kelly’s campaign.

I don’t agree with some of Kelly’s positions (he was on the wrong side of Facebook’s Holocaust denial debacle, in my opinion), but I’m contemplating endorsing him for the position pending his agreement to go on camera with us and answer some key questions we and our readers have.

Generally though Kelly is a libertarian-leaning Democrat, which is kind of Democrat I tend to like. If you want to donate to his campaign, here’s the link.

And if you’re feeling generous, you can get Chris something else for his birthday, too. Like this special edition Britney Spears “Womanizer” virtual gift on Facebook, which costs just $3.

Happy Birthday, Mr. Attorney General (I bet he loves the sound of that). And please don’t forget us when you make it big time. If you become president someday, I wanna be on the Supreme Court.

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And you thought the South Carolina v. Craigslist story was dead.

If anything sucks more than being the target of an ambitious but delusional gubernatorial candidate who has suddenly developed a bit of a fetish for prostitution, it’s being ignored by that candidate. As far as Village Voice sees the world, Craigslist just got a bunch of free press. And they want their share.

When Craigslist management was facing a criminal investigation for listings on the site they did the smart thing. They talked about the law, and they pointed out that the real smut was on other sites that were being ignored by the South Carolina Attorney General. If you really want hard core porn and prostitution, Craigslist CEO Jim Buckmaster pointed out, check out Village Voice’s BackPage.com.

That’s all body fluids under the bridge now, of course, since a federal judge smacked down McMaster and forbid him from stalking Craigslist management.

But Village Voice is still smarting from those Buckmaster links in that blog post. Yesterday they issued a very official press release titled “Village Voice Media to Craigslist CEO Buckmaster: Calm Down, Back Off; There is Nothing Wrong With a Little Competition.”

In an email, Village Voice’s PR firm accuses Buckmaster of “leveraging the legal bind he’s in to damage Craigslist’s competition.”

The real reason for the press release and press outreach, of course, is to get a little bit of the spotlight pointed to backpages, too. Because their official story doesn’t make sense.

Backpages has adult ads, lots and lots of them, and they’re proud of it: “We will continue to exercise our right to accept legal adult postings,” they say. All Buckmaster did was link to a whole bunch of them. And since backpages desperately needs the traffic, what they really should be doing is thanking Craigslist, not attacking them.

What we learned today: If you really want to pay for sex, backpages is the place to go.

Full press release is below:

Village Voice Media to Craigslist CEO Buckmaster: Calm Down, Back Off; There is Nothing Wrong With a Little Competition

PHOENIX, May 29 /PRNewswire/ — Last Friday, Jim Buckmaster, CEO of Craigslist, fired a deliberate, unnecessary and wholly inaccurate shot across the bow of Village Voice Media and backpage.com, our online classified advertising property. Given the serious nature of what Buckmaster inferred in his post about Village Voice Media newspapers and backpage.com, we can’t sit on our hands and be silent.

In the original blog post, which was later “submarine” edited to reword and soften some of the attacks towards Village Voice Media, Buckmaster complained that politicians are attacking Craigslist but not Village Voice Media and other media outlets because they have a “need for positive stories and campaign endorsements from those very same newspapers.

“Is it possible that writing stories critical of Craigslist’s (relatively tame) ‘adult service’ section is more career-friendly than attacking their own employer (or journalistic media brethren) for operating a (far more graphic) ‘adult service’ section of their own?”

Buckmaster and Craigslist are in a tough, and in many ways, frightening situation - they have a number of moralistic state Attorneys General threatening them over their adult ads, and a raft of bad press following the terrible tragedy in Boston that the company is admittedly in no way responsible for. But, the manner in which Buckmaster is responding to this pressure - by disingenuously lashing out at competitors and caving to political pressure - is inexcusable, and displays a remarkable lack of sound judgment.

In 2002, Village Voice Media recognized the forces that were changing the classified advertising market and created backpage.com to answer that challenge. We’ve put a lot of work into making it the No. 2 free classifieds site in U.S. We’re fine with being No. 2, proud in fact. Buckmaster, apparently, is not. Instead of working with his competitors to find a way to solve, or at least mitigate issues surrounding adult ads - the shortcomings of automatic content filters is something we are all trying to fix - Buckmaster simply attempted to take the competition down with him. And, his methods leave much to be desired.

First off, our newspapers don’t endorse politicians and rarely have anything nice to say about them, so to say that politicians aren’t going after Village Voice Media because they need our endorsement isn’t viable. Secondly, Buckmaster is only complaining because a competitor is challenging his economic advantage in the free classified arena - which he built in part on adult ads - and has made him a very wealthy man. His talk of building community and serving his users rings hollow. It now appears that, as is so often the case with New Age entrepreneurs, it’s all about the money.

We will continue to exercise our right to accept legal adult postings from our users and concentrate on growing backpage.com. We are aggressively building additional technical solutions as well as increasing our manual site inspections to improve efficiency of removing content that is illegal or otherwise violates our Terms of Use.

About Village Voice Media

Village Voice Media is a collection of 15 weekly newspapers and daily Web sites, including New York’s Village Voice, the LA Weekly, Denver’s Westword and the Phoenix New Times. Online, in print, and on mobile devices, VVM’s products combine music, food and events coverage with gritty, hard-hitting journalism to create the most powerful city guides in each market. While the focus of the brand is local, its free classifieds site backpage.com, partnership with social recommendation engine LikeMe.net and national sales force, Voice Media Group, extend its reach on a national level.

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The poll results from yesterday are in, and it isn’t even close. 80% of you think Craigslist (46 million US visitors) is more important than South Carolina (4.5 million residents). Background on the conflict is here.

The numbers are obviously not statistically relevant since TechCrunch readers, a tech savvy lot, are going to be more likely to side with Craigslist. But South Carolinians (or whatever it’s supposed to be) apparently aren’t too thrilled with their state, either. The Palmetto Scoop, a popular conservative blog in South Carolina, held their own poll today and asked “Which is more important, 2,500 TechCrunch readers (the total number that had voted as of this post) or enforcing the law?”

As of right now, 60% of the 124 respondents say, well, TechCrunch is more important than enforcing the law (which isn’t really what the Craigslist issue is about anyway).

Your conservative voters have spoken, Mr Attorney General McMaster. We’ll draw up the secession paperwork for your signature.

Update: Just because it’s awesome:

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South Carolina has the dubious distinction of being the first state to secede from the United States, in 1860. You could say that they had very strong feelings on the issue of slavery. If they’re still up for it, I say let them leave. Craigslist is way more important than they are.

Congratulations to Craigslist for standing up to South Carolina Attorney General Henry McMaster and demanding an apology. The situation they find themselves in, facing threatened criminal prosecution, is absurd. I stand by my post last night that Craigslist should simply shut down the South Carolina site permanently, and discontinue any negotiations with the state. McMaster has no basis for threatening civil or criminal action, and this is clearly just a way for him to get press in his bid for governor. A Facebook group has sprung up around this as well.

But as an aside, this whole drama has made me wonder, just how important is South Carolina anyway? If it really came down to choosing between South Carolina and Craigslist, how many people would rather have South Carolina?

South Carolina a former slave state that has less than 4.5 million people and a median income of under $40,000/year, 39th in the U.S. 92% of the state’s residents are Christian, and the gross state product is around $150 billion. A main driver of economic activity is tobacco. On the upside, I hear Myrtle beach is nice, and my co-editor Erick Schonfeld’s mother lives there.

Compare that to Craigslist, which doesn’t have any physical territory but boasts 46 million monthly visitors in the U.S. alone, making it nearly ten times the size of South Carolina. The site has been a significant factor in disrupting old media, particularly newspapers, by making classified listings free. Craigslist has made the lives of tens of millions of people better by helping them get rid of unwanted couches, find a new job, or rent an apartment. And it has never charged much for what it does - it is a classic case of giving more than taking.

If you really had to choose, which is more important to you, Craigslist or South Carolina? Which has the bigger positive impact on our culture, and which adds more utility to your daily existence. Craigslist wins hands down.

That’s why I’d be very upset if McMaster has his way and puts Craigslist management behind bars. Or even if his attacks have the effect of chilling the freedom-loving Craigslist community. Kick South Carolina out of the Union (we can add Puerto Rico or Canada afterwards if we really need a nice round number of 50 states). Build a wall around it stop the inflow of federal dollars. We don’t want to do this, but the dangerously self-serving and backwards thinking of the state’s elected leadership leaves us no choice.

But don’t touch Craigslist. It’s too important.

What do you think? Take the poll below. And remember, even though what I’m proposing is absurd, how would you really answer?

Which is more important to you - Craigslist or South Carolina?(web polls)

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South Carolina Attorney General Henry McMaster is giving even the normally sleazy Attorney General title a bad name. This is an office that has little to do with protecting the public and everything to do with making high profile attacks on targets that will generate a lot of positive press. All that press leads to a run for higher office.

Eliot Spitzer was the alpha male Attorney General, attacking the securities industry, Internet fraud and the mortage industry, among others. He was rewarded with the governorship of New York until his spectacular resignation.

Which brings us back to the subject of hookers, and South Carolina Attorney General Henry McMaster. Earlier this month McMaster, who is of course eyeing a run for governor, threatened criminal prosecution against Craigslist management if pornography and ads for prostitution were not removed from the site. Craigslist took extraordinary measures to comply.

But quiet compliance isn’t what McMaster is looking for. He wants handcuffs and a trial, the kind of stuff that Spitzer got. He issued the following statement on Saturday “As of 5:00 p.m. this afternoon, the craigslist South Carolina site continues to display advertisements for prostitution and graphic pornographic material. This content was not removed as we requested. We have no alternative but to move forward with criminal investigation and potential prosecution.”

Craigslist fired back in an uncharacteristically emotional post that noted how tame the current Craigslist site was compared to a number of other listing services in South Carolina, including one run by Microsoft.

Seriously? The craigslist adult services section for Greenville, SC has a total of 1 ad for the last 3 days, featuring a photograph of a fully clothed person. The “erotic services” section for Greenville, which we recently closed, has 8 ads total which will expire in two days, and even for these ads the images and text are quite tame.

Meanwhile, the “adult entertainment” section of greenville.backpage.com (careful with link, NSFW), owned by Village Voice Media, has over 60 ads for the last 3 days, and about 250 in total. In sharp contrast with craigslist, many of these ads are quite explicit, quoting prices for specific sex acts, featuring close-ups of bare genitalia, etc.

Of course, no one in mainstream legal circles thinks either company should be subject to civil suit, let alone a criminal investigation. But if for whatever reason you were so motivated, would you target a venue with 9 PG-13 rated ads, or one with 250 XXX rated ones?

And FWIW, telephone yellow pages and other local print media have both companies beat hands down as adult service ad venues for South Carolina.

Any interest in targeting them for criminal prosecution? Didn’t think so.

As we wrote previously, Craigslist is the hot site right now that triggers an immediate response from the press (it used to be MySpace, then Facebook). There is no public saftey issue in targeting Craigslist. The only issue is politics, and McMaster sees an easy target. I think he made a serious mistake, though, in targeting Craigslist. Not only are the allegations absurd, but he’s failed to realize the huge community of rabid Craigslist supporters. Spitzer always went after deeply unpopular targets. He would never have touched Craigslist.

I say to founder Craig Newmark and CEO Jim Buckmaster: Stand firm. Don’t back down. In fact, just turn off the South Carolina site entirely and ban IPs from that state. Forever. And if they press criminal charges, fight it with everything you have.

The community will support you, and that’s one hell of a community, with 46 million U.S. unique visitors a month (Comscore, April 2009). Get 5 million of them (less than 1 in 9) to sign a petition calling for McMaster’s resignation (that’s more than the population of South Carolina). It won’t get him to resign, but it may get enough voters to remember how irresponsible he is when the election for governor comes around. And I’m pretty sure that petition will be the top search result for his name for a long, long time.

And if you do end up in jail, don’t worry. I promise to visit at least once a month, even though it will be in South Carolina.

More on the story at TechMeme.

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If you’ve been following the headlines on Techmeme over the weekend, you’ve likely seen more talk about the whole blogger vs. online journalism debate, the short-sightedness of big media and the inevitable demise of its historical business model. Every time that debate heats up, someone somewhere will at some point bring up the unlikely savior of the publishing industry once more: glorious micropayments.

This time, it’s The Guardian’s Frank Fisher taking a stand, and he says not only will micropayments guarantee the newspapers a future, it can also downright ’save journalism’, and oh, Google should be the one providing the infrastructure for it, too.

Time to debunk “Saving journalism, a farthing at a time”.

Fisher correctly points out the dismal state of the economy has driven advertising revenues down, and this puts newspapers in dire need of finding out how it should subsidize its operations in different ways, with the realization that the printing part of the equation is inevitably going to fade away and that there’s too little money to be made from online advertising to make up for the costs of transferring its entire publishing business (as it operates today) to the Web.

The rest of his opinion piece comes down to this: wishful thinking and misunderstanding.

“Publishers are in a nightmarish situation; they know the print side of their business is struggling, they know punters want their news online, but they can’t see how to make it pay. In desperation others may follow Murdoch’s retreat behind the paywall. Not good news for news addicts. It isn’t so much the money, it’s the usernames, passwords, subscriptions … Actually, it is the money. But publishers need a profit. Information might want to be free – but food and housing isn’t. So is there another way? Some model that brings in more than advertising, but doesn’t exclude casual visitors, either by cost or inconvenience? Well yes – an idea that won’t go away: micropayments.”

Publishers are in a nightmarish situation, and in large part they have themselves to blame for that. Fine with me if they want to escape from that situation by retreating behind paywalls - in fact, I encourage them to do so and die there soon so we can kiss that idea goodbye once and for all. How are paywalls bad news for news addicts? Those have been spoiled to death the past few years, to the point where information overload has taken over and made the consumption of news overly tedious. I know because I’ve been one of them ever since I’ve been able to read, and this was long before I discovered the Internet. Introduce paywalls, ease the choice for news addicts, see what happens.

Information is now a commodity, so deal with it. And yes, it should be free to end users. But how will that pay for food and housing of the people working in the publishing industry, you ask? I say it’s not our problem, and tough luck. In no way does the realization that the model doesn’t work anymore mean that the masses, lawyers, the government or any other institution should be bailing out newspapers for screwing up their chance to figure out this Internet thing in time and adapting to it. Publishers need a profit, like any other business, but that doesn’t mean they all deserve to turn one, and certainly not at the expense of better, more innovative ones that are waiting around the corner.

Go read the column in The Guardian (for free) to find out how micropayments for news would work in detail. Basically, it would involve Google doing the bailing out part I was talking about in the previous paragraph.

“The transfer potential of [Google AdSense] technology to a micropayments scenario is clear: individuals would sign up with Google, deposit funds. They’d have a unique ID attached to them at that point – an encrypted cookie stored on whichever PC they happen to log in with. When they visit a site with GoogleDosh embedded they’re allowed in, a fraction of a penny is switched to the content provider’s account for every item they read – if visitors aren’t GoogleDosh members, they’re re-routed, perhaps, to a précis, or a sign-up form, or even to a limited trial. The key difference from other micropayment schemes is scale – and that’s what beats individual site subscriptions too – sign up with one scheme, and you get access to thousands of sites. That’s my theory, at least. It’s technically simple – an easy step if publishers accept a single standard, and the success of Google Ads suggests they will. Publishers win, consumers win long-term by supporting content providers, and in the short term, if good sense among sellers prevails, they get a bargain: spending pennies a day for all the content they need.”

Publishers win, yes, to a certain extent. Google? maybe. Journalists? Up for debate. Consumers? Not likely. There are some content providers out there who have figured out how to build a business without the need for people to pay to support them, and their number will only grow in size in the foreseeable future. If anything, Google should (continue to) support them, and not the relics of another age.

For more perspective on micropayments, you should read “What Would Micropayments Do for Journalism? A Freakonomics Quorum”, in case you haven’t already. I’m lifting this part from the piece, a quote by Marshall W. Van Alstyne (associate professor in the Information Systems department at Boston University and a research scholar at M.I.T) because I think there’s no better way to conclude this post:

Putting micropayments on news is like putting tollbooths on an open ocean. Internet users, awash in a sea of information, will avoid new barriers by navigating around them. And frankly, the interests of a free society are rarely served by building barriers between the people and their news.

Amen.

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OLX, the Craigslist for the rest of the world, has raised $5 million in Series C funding from General Catalyst Partners, Bessemer Venture Partners, Founders Fund and DN Capital, bringing the total funding raised to $28.5 million. OLX raised $13.5 million in Series B funding in April 2008 from the same investors as above, and raised an undisclosed Series A round of $10 million in September 2006 with the same VCs and various angels participating.

While the free classifieds site has trouble competing with Craigslist in the U.S., OLX has a strong user base internationally. With a presence in more than 87 countries in 39 languages, OLX’s popularity lies mainly in Spain, India, Portugal, Mexico, South America, China, and the Philippines.

Fabrice Grinda, founder and CEO of OLX says the new investment will be used to make new acquisitions, implement site improvements, expand globally, and pursue aggressive marketing initiatives. In 2007 OLX has made an investment in Edeng.cn, a Chinese free classifieds site and acquired Mundoanuncio.com, a Craigslist-like classifieds site targeting the Hispanic market, in 2006. Much of its success in the Philippines can be attributed to its white label partnership with Friendster. Its offices are also spread over the globe with 125 employees (OLX has added almost 35 employees since last year) working in New York, Buenos Aires, Beijing, and Moscow.

While OLX may play second fiddle to Craigslist in the U.S., the site prides itself on being a second-generation free classifieds site, complete with Web 2.0 features such as social network widgets, better search capabilities, interactive maps, and mobile functionality. Craigslist has recently been under scrutiny by Attorney Generals over prostitution and the “Craigslist Murder” that have taken place in conjunction with the site. eBay’s Kijiji is also a competitor in the space, but Kijiji has set its sights on catching up to Craigslist in the U.S., even considering a name change.

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I’m getting shit for this post no matter what. By insinuating business magazines are better off than papers when I currently write a column for BusinessWeek people will call me biased. (As Arrington would say, “consider that your disclosure.”) Likewise, I have a lot of friends at all three publications who probably won’t appreciate what I have to say, because it’s not in their economic interest.

But Arrington keeps berating me to write a post today, so here goes.

24/7 Wall Street did a post the other day saying the sun was setting on Fortune, Forbes and BusinessWeek, and its facts about the finances of these publications are sad and mostly indisputable. Indeed, cutting frequency and staff are near certainties for at least BusinessWeek and Fortune. But I don’t agree that those realities mean the magazines can no longer afford quality, edited, long-form investigative stories.

There’s an obvious option for these magazines, and I’m surprised more people aren’t talking about it: Ruthlessly collapse the print and online staffs, run everything online as soon as they write it, except one or two cover-length, long-form glossy pieces. Those will anchor the print issue, rounded out by the best stories from online. Then cut the money spent on trying to court new subscribers, shifting the entire marketing budget to promote the Web or real-life conferences and branded events. You could even use reader comments to flesh the online pieces out more for the print edition, driving more engagement in both the print and online versions. Voila! One publication, not two pretending to be one. And guess what? One publication is a hell of a lot cheaper, even if it’s printed on dead trees.

Under this system, you still have the enterprise articles, like the Fortune piece 24/7 cites about Bernie Madoff. You just focus and only do one or two of them an issue, keeping 99.9% of your staff focused on writing stellar daily online content. And you optimize your staff to be scrappier, more productive and adapt from an old way of doing journalism, to something closer to blogging. People who can’t or refuse to adapt won’t have jobs. That may sound cruel but if the magazines themselves don’t adapt, no one there will.

This plan would save a ton of money. That’s right: They can save tons of money and still print a publication. Big national magazines have different economics than a metro daily paper. In some cases the biggest cost is a bloated staff, in others a highly-paid staff with generous corporate credit lines. Remember, most of these staffers were hired during better times and while layoffs have been frequent, they haven’t been as far reaching as they probably should have been. With all due respect to 24/7 Wall Street, the average compensation package at one of these three publications isn’t $60,000 unless you got hired out of school in the last few years. Think higher. Much higher.

Now a lot of these publications will tell you they’re all one staff now. But go through the staff boxes and see how many of those names blog, write breaking news online or write anything online with any frequency. Hint: If the question “Is this for print or online?” keeps coming up in your organization, you’re doing it wrong. Aside from one investigative piece per issue, there shouldn’t be a difference between the two. As a practical matter, it’s not that different from all of the magazine copy running online after the fact. But if you think about it, that policy elevates the magazine above online. It should be reversed.

Why not go the route of closing print completely and going online? First off, you’d kill the print ad revenue stream which is still the bulk of these magazines’ business. But it also abandons the magazines’ competitive advantage. For a lot of people magazines are different from newspapers. They’re printed on nice paper with glossy, glitzy photo shoots and painstaking graphic design for a reason. People in them like putting them on their coffee table—or better yet, framing them. Don’t underestimate the power reporters working on a cover have to convince a reluctant CEO to talk to them or give them exclusives. It may be one of the few advantages they’ve got over increasingly influential blogs. Similarly, there’s still a huge swath of readers who like flipping through a hard copy of BusinessWeek or Fortune on the plane, or even on a Sunday afternoon. The business world isn’t all tech, after all. And as a reporter, I have to be honest. There’s nothing quite like seeing your article printed in a glossy magazine. That can be a valuable retention and recruiting tool when used well. As can the implicit promise that the publication still values long-form, investigative reporting that has some shelf life to it.

It’s not that big, glossy, deeply-reported magazine stories are better than blogs. But they are a different way to tell certain important, complex stories, the same way a book is a different way to tell a story than an article. Not all news needs that kind of methodical, intensely-edited and graphic designed treatment, but I’d argue one or two per month do. And if newspapers keep crumbling, magazines are going to be the only places left that know how to do it.

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