Tag Archives: google

June 17, 2014 · 10:30

The real issue here!

Last night, just as I was about to break my own record in snoring, a message appeared on my screen. As I tend to be more curious then is good for me, I took a look. It was the article at http://advanced-television.com/2014/06/16/australian-media-chief-lambasts-google-over-movie-piracy/.

So this morning, as the dream of being with a ginger haired girl with a passion for playing Diablo 3 fades away, I decided to have a go at this article (we must keep a priority for interesting dreams first).

The title itself is interesting ‘Australian media chief lambasts Google over movie piracy‘, being honest here, using the word ‘criticising‘ instead of ‘lambasts‘ would have made the article every bit as ‘strong’ but would have implied less posturing, because that is what seems to be happening here.

The quote “Our Attorney-General George Brandis is attempting to reform our copyright law. Meanwhile Google, one of the multi-national companies attempting to avoid paying tax here, is lobbying in Canberra to stop this, by putting forward the following six fundamentally misconceived arguments” is also interesting, for reasons I will return to later.

The six points are given and the points made are to some regards highly hilarious. In point one we see: ‘piracy legislation would have little effect‘ and ‘they would no more illegally download than go into a department store and steal a book or a DVD‘. Is it really? Then why is Game of thrones the most pirated series in internet history? People can buy the series on DVD and Blu-Ray. Google’s point seems to be made by the comment ‘It may be the most pirated show, but it can break sales records too!‘ which was in a Yahoo article. Forbes gives us another part of this equation (at http://www.forbes.com/sites/insertcoin/2014/04/15/game-of-thrones-sets-piracy-world-record-but-does-hbo-care/). The episode in question was downloaded 1.5 million times (a number that will be important soon). What we can say for certain is that according to figures almost 200,000 copies of series three were sold in week one, breaking records for well over a decade in place. So, almost 20% end up buying the discs (implying 80% will not).

I think that the Google argument has been seriously debunked at this point.

The second point is about legislation being for big business. Not only is this incorrect as the response showed, more important, legislation would oppose big business as will be shown soon enough and it would also hurt Google. This is closely followed with statement three where we see a reference to impeding ‘new’ business models. Actually it is impeding a very old model, but I will get to that. The response using the quote from Steve Jobs ’from the earliest days at Apple, I realised that we thrived when we created intellectual property. If people copied or stole our software we’d be out of business‘ is indeed true, yet, the one part no one answers (only implies) is in regards to the application of the Intellectual Property.

The fourth issue is a strong one and as I see it both are dancing around the issue here. It is not as Google suggested ‘an availability and pricing problem’, but the reference towards the music industry is also not correct as I see it. For a long time it had been about ‘availability and pricing‘ as Google correctly stated, but more important it had been for a long time around overheads. The gaming industry in Australia is proof of that. In Australia we pay on average 60%-100% more than in the US and in return we also get a lot less for it. How often do we see games that truly offer exclusive options that are NOT available in the US? That list is a very long one for most of the NON-US nations and it used to be the same for music in non-US nations. So it was often not about pricing, but about a lack of global fairness in pricing.

Issue 5 is made by both sides; it is so moreover for the reasons we will see soon enough. It is not because of the hypocritical ‘US view’ that opposes certain issues and views we see too often and not because of, and I quote ‘advertising models that almost totally promote pornography, gambling and scams‘. It is however because these markets represent billions in dollars of revenue, and many of these places will pay their taxes as (and if) applicable. One does not bite the hand that feeds the IRS ever!

The last one is the bomb as they say it. The mention of ‘Google says the proposed three strikes policy is too Draconian‘. Is that really so? We should all take a look at the Google approach of people getting banned on AdSense. I can tell you now, there was no strike two (or three for that matter), the quote I read “I’m really disappointed on Google support on this matter, there are no email addresses or real people to talk to” shows an approach even more Draconian then their view of Draconian as one might say. There could be valid reasons on some banning, but the issues I saw were not in that direction and in this instance Google is preaching a ‘pot calling the kettle black approach’.

So six issues of fun and frolic, but where is this going to?

In my view both are dancing around the options. It is my view that Attorney-General George Brandis had put his hand in a Hornet’s nest to say the least and now he is dancing with other people in some version of musical chairs. The powers behind all this do not want the change that some legally want. It is my view that Graham Burke, Co-Chairman and Co-CEO of Australian media group Village Roadshow does know what is actually going on, but he is not willing to say it out loud, even though he is representing those artists and people behind the entertainment industry. I had raised similar issues before. I did so on January 3^rd 2014 in my article ‘FACT on piracy?‘ In my view going after certain groups was just plain stupid, for obvious reasons, yet there is another side to all this. You see, the Attorney-General realised that the consequences if pursued would be dire indeed. Even though Mr Burke does not want to hear this argument (for obvious reasons), but the people in charge do not care that The Castle, Red Dog and Muriel’s Wedding were downloaded 50,000 or even 100,000 times. Even if 10% would buy it (that is a strong if here), it amounts to $50K or even at the most $250K, which would be a decent part for the artists as they are entitled to part of this. You see, the Hornet’s nest is the consequence for companies like Telstra, Vodafone, iiNet and Optus. It is that part no one wants to touch. Australia has roughly a little over 80% online. If we use the numbers of the Australian Bureau of Statistics, then we are looking at a little over 12 million connections. Should we accept the statements at http://www.news.com.au/technology/third-of-australians-admits-they-download-movies-illegally/story-e6frfro0-1225786870239, which now seem to imply that 4 million people download movies illegally. If this is stopped then these 4 million people would decrease their broadband plan, by $40 and up to $80 a month. This is the real number! These Telco’s would now collectively miss out on $160,000,000 to $320,000,000 EVERY MONTH! If managers at some of these telco’s are rated on their value, how long until they are out on the street when they end up having to tell their stakeholders the following: “the good news: movie piracy is no more, the bad news: you miss out on a quarter of a billion in revenue every month from now on!”
It should be quite the show and I will sell tickets and popcorn when it happens.

This is at the centre of it all. From my point of view Mr Burke knows it, Mr Brandis knows it and Google, who has every profit with large broadband usage, knows it too. I think it is time for this sanctimonious posturing to stop. The internet is bandwidth and the more we need, the more we get charged. It is the cost of doing business and morality falters where profit takes a centre seat. Google has a vested interest in all this. If we look at http://www.forbes.com/sites/timworstall/2013/12/12/googles-youtube-ad-revenues-may-hit-5-6-billion-in-2013/, we see that Google is set at the centre of a large web of connections. If Google’s value is partially dependent on bandwidth usage (as it has been implied often enough), then laws that could cut down massively on usage are definitely not in Google’s best interest. Australia, is less likely any more than a blip on the global radar (which makes the current efforts shown by Google interesting as well). Yet, if Australian laws are successful, it could start a change in other common law nations and that would scare Google a lot.

So, we see the players, but in my view, the real issues are for now hidden from view by all players, because the loss for the collected companies in Australia is too large to contemplate and they do tell certain people what is not acceptable, those getting told tend to listen to the few that can destroy their future.

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Filed under Finance, Law, Media, Politics

Tagged as ABS, AdSense, advanced television, Attorney-General George Brandis, Australian Bureau of Statistics, Australian media group Village Roadshow, Diablo 3, FACT, Game of thrones, George Brandis, google, Graham Burke, iiNet and Optus, movie piracy, news.com.au, Telstra, Village Roadshow, Vodafone

January 28, 2014 · 20:42

For free or for naught?

It is less than a day after I wrote the previous blog ‘The danger ahead’, now I read in the Guardian (at http://www.theguardian.com/world/2014/jan/27/nsa-gchq-smartphone-app-angry-birds-personal-data) that the quote I made in yesterday’s blog “Speed and disregard of proper development has allowed for open access to many computers and devices, which allows for almost complete collection and stored and such storage can only be done by just a few. This open level of availability allows the NSA and GCHQ (amongst others) to collect open source intelligence, hoping to gain the upper hand in the war on terror.“, which is close to what the Guardian reported, as well as what is currently shown on Sky News!

At this point, I am looking at a few issues and the more I look at the data that the press is stating, the more I see that Edward Snowden is more than just a traitor. He claims being a victim in a German TV interview (at http://www.dw.de/wanted-dead-by-us-officials-snowden-tells-german-tv/a-17388431), where he speaks the fear that he is being targeted for long term sleep therapy (aka ‘terminal sleep’).

The ‘problem’ is that the issue is not just Snowden. The more I look into the breaches, the more I look into a possible functional approach on the way the NSA server parks (plural) are set up, the more I am convinced that not only was Edward Snowden not alone in this all, I feel some level of certainty that this person might still be in the NSA, endangering both NSA and GCHQ as well as other allied monitoring agencies.

The humongous amount of ‘revelations’ that are claimed in the name of Snowden do two things. First of all it turns Benedict Arnold in a stumbling saint (I just had to wash my mouth with soap for making such a claim). Linked to this is the fact that the many dozens of operations as his ‘revelations’ seem to touch on would have been on at least a dozen of servers (as projects are spread around). The fact that NSA uses an upgraded edition of SE-LINUX means that a system with logs and mandatory access control cannot get transferred to such a degree. The fact that IT and security monitors it all, as well that he was civilian contractor means that his name should have popped up a dozen times. Even if he used other accounts, the logs should have triggered alerts all over the field when they were scanned through solutions not unlike a program like Palantir Government.

The claims I am making are growing in reliability with every ‘revelation’ that is being made. There is however another side that is now the consequence of all these whingers and whiners about ‘their privacy‘ (at http://www.theguardian.com/world/2014/jan/27/tech-giants-white-house-deal-surveillance-customer-data). We now enter a field where it is important to realise that the new situation could be regarded as a danger.

It is linked to a previous newscast where President Obama was considering moving telephony data out of government hands (at http://www.washingtonpost.com/blogs/the-switch/wp/2014/01/23/government-privacy-board-members-say-shifting-nsa-data-to-third-parties-is-a-bad-idea/)

As stated before, this is a really bad idea. Consider that criminals, if enough money is in play, can use places like HSBC to launder their money (I am not talking about forgetting your wallet whilst washing your jeans), but the idea that commercial enterprises can get away with these events for just a 5 week fee (at http://www.forbes.com/sites/afontevecchia/2012/07/16/hsbc-helped-terrorists-iran-mexican-drug-cartels-launder-money-senate-report-says/, as well as http://uk.reuters.com/article/2014/01/23/uk-standardbank-fine-idUKBREA0M0LF20140123) is a lot more dangerous than many realise. Handing data storage out of government hands is just too dangerous. I am steering away from the issue whether the monitoring program should go on or stop. The intelligence community needs to do what it needs to do. Leaving that data with third parties is just not an option. The worst case scenario would see the US government paying out billions if any data leading to a registered IP ends up in ‘other’ hands. Once that evidence is ever given, the US would lose whatever credibility they ever thought they had.

At this point the title can be used as a joke. What is the difference between for free and for naught? Someone got rich for free, the US got rich for naught! That would end up being the reality of a project that was meant to map levels of global terrorism. This joke only gets stronger when we see another ‘view of shock’, but now from Google CLO David Drummond (at http://www.bbc.co.uk/news/world-25911266). It is hard to state against his view, or the premise of the company. These carefully pronounced statements from legal eagles are to be expected from many firms for some time to come. There is however a commercial positive view (at http://www.bbc.co.uk/news/technology-25914731). Here we see how entrepreneurs in makeup and clothing are showing options to avoid detection. In more than one instance it is stated to be metal based, so standing next to airport detectors should be fun soon enough. I wonder how much more would get checked when the boxers or briefs are also metal based.

So whether we get entertainment for free or fashion for naught will be discussed by many soon enough, the main fact remains. If we want to remain safe, then data needs to be collected. It is not for free, or for naught. It is for the simple reason that the world is filled with bad people; some will go any distance to hurt as many as they can. Our governments have a duty to keep us safe, it is only fair that they are given the tools, the methods and the opportunity to do so.

This does get us to the final part (or final side) to these events. This morning, the Guardian (at http://www.theguardian.com/world/2014/jan/28/microsoft-rules-out-back-door-access-to-mps-electronic-communications) reported on backdoor access allegations. The quote “Both Ludlam and South Australian independent senator Nick Xenophon have been concerned about the security of Australian parliamentary communications since the Prism surveillance program was first revealed by National Security Agency contractor-turned-whistleblower Edward Snowden.” gives the information that was the part of all this. So again we see more resources squandered in regards to Snowden. Do not get me wrong, the question by both Ludlam and Xenophon is fair enough and as such it should be looked at. Whoever wants access to certain information, which might always be the case, could consider Intruding a system, which, unless you are a real expert is getting harder and harder, as it should be.

Yet, capturing and copying frames sent over a router system makes a lot more sense. You just capture it all and decrypt it later. Now, most people will not have the ability to do this, but consider the amount of elements to get this all from user1 to user2 via server X. If you think that this is highly encrypted hard to achieve effort, then think again. The more common the method used, the easier it is to read into it. So, there is a level of entertainment as we see leagues of technicians concentrate on the door of the bank vault, whilst in reality one of the walls is missing. To give you another example, we take a look at a paper by Daehyun Strobel, Benedikt Driessen, Timo Kasper et al (at https://eprint.iacr.org/2013/598.pdf). As we look at the quote “Despite the fact that nowadays strong and well-analyzed cryptographic primitives are available for a large variety of applications, very weak cryptographic algorithms are still widely deployed in real products all over the world.” This relates to the IT issue as, we might have secure servers and powerful password rules, but files are send from one computer to another via the ‘internet’, which goes via a router system (no matter how you twist or turn it). So, as someone gets to any router on the track and wireshark’s the traffic, the stream can be rebuilt. From there the hacker still faces a few obstacles, but you better believe that above a certain skill level, this data can be retrieved. So what exactly are we all crying about?

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Tagged as BBC, Benedict Arnold, Benedikt Driessen, Daehyun Strobel, David Drummond, Edward Snowden, Edwrd Snowden, Forbes, GCHQ, google, Guardian, HSBC, Ludlam, Nick Xenophon, NSA, Palantir, Palantir Government, President Obama, Routers, SE-Linux, Snowden, TCP/IP, Timo Kasper, Wireshark

January 27, 2014 · 04:45

The danger ahead

It was the BBC that gave me an insight I had not been aware of. It is easy to miss an item, even though I have been involved in IT on many levels for over 3 decades. It is just not possible to keep it all in focus all the time.

It is kind of fun to consider the words of my late grandmother. It was the only issue we could never see eye to eye on. She had an expression ‘Johnny of all, master of none‘. It was not a positive expression! I always went the other way in that regard. Whilst most went to some ‘temporary’ master as they mastered a certain niche skill. I went into the width of IT. I got exposure to such a wide field that my knowledge covered the entire foundation of IT (yes, in the time of the mainframe). After that I started to grow the base of this knowledge trying to evenly grown my knowledge of all IT fields (to some degree). My knowledge grew from programming, to consulting, to training and so on.

So where is this going?

I wrote at an earlier date about IT and the iteration approach to IT (at ‘Year of the last Euro?‘). The entire field goes a lot further. In an age of the similar devices, last week as I was prohibited from moving for 4 hours, I decided to let my mind wander and I came up with an entirely new Notebook. I categorise it as a fat notebook and I call it the ‘True Mobile System’. In an age where Sony, Asus, IBM et all seem to come up with a different names for the same flavour, my mind designed a new approach to a mobile business system.

Was it clever? Not sure! The issue is that many could have come up with it and either they are limited to what their boss dictates or they are just not thinking in a user based forward motion. Here lies the crux of many issues we have seen lately. Their way of thinking is not user based. It is often revenue based, there is a HUGE difference!

If you have read my previous blogs (especially ‘Fifth in a trilogy!‘) then you might notice a trend. In my mind most corporate IT is now all about what is in charge, not who! So as marketing decides on deadlines and evolutions, many learn the hard way that marketing is basically the extension of the CFO (and/or the stakeholders) and as such it is all about the money. If development is the science, then marketing should be seen as the ‘tainted’ picture. The problem is that too many CEO’s and others are all about this tainted picture (and as such the perception of what comes next), the science/engineering side gets too often ignored, or just briefly listened to and after that they get shut down and pushed forward to meet the deadline.

In that regard I still see the game ‘Assassins Creed 4’ (yes that pirate game), which could have been truly great and ended up being less than that (at least in my personal view)! The same can be said for business based ideas. If we consider this message (at http://www.bbc.co.uk/news/technology-25859360), where Google Chrome might be considered an eavesdropping risk, then what is safe to users?

The quote “The malicious site you visited can continue listening in on you long after you have left it said Mr Ater. As long as Chrome is still running nothing said next to your computer is private.” gives ample reason for worry. The danger from our side is that this could be a topic for conspiracy theory. Was this really ‘accidental’? I am not saying it was not or was not. It is however interesting how we as computer users have been exposed to a massive amount of security flaws in the last year alone.

In my mind, is this due to shoddy programming, or is their local marketing so set on certain deadlines and as such proper testing is no longer done? I personally think it is a combination of the latter two. As additional ‘evidence’ in my train of thought, my recent Yahoo experience comes to mind.

I have been a faithful Yahoo user since the early 90’s, for me it always sufficed. The e-mail was robust, it gave me the space I needed and as such I never regretted it. Yet, since the ‘remake’ of Yahoo it changed by a lot. The amount of failures I viewed are on a new low level of customer experience and as such, at present I am seriously considering leaving Yahoo mail and move to Google permanently.

The feedback does not have any options for filing bugs or complaints. It is all about ‘submit an idea‘ and ‘send public feedback‘. To me this all seems like the marketing image left by someone who should be lobotomised and left somewhere far away from any IT endeavour (preferably forever). Yahoo mail now exposes us to additional dangers as we no longer see a status bar in certain places. So, we no longer see ‘the’ link, which I consider a bad thing. The new system also ‘assumes’ spam, so I now have to scan my spam even more often. I can no longer sort by sender, which means that organising my inbox take a massive amount of time longer. The list goes on and on. Is it marketing at the expense of functionality? To be honest, I would need a little more evidence before I can state that as a fact to some level, but the deadline push has been visible with too many corporations and for far too long.

These issues go a lot further when you consider the article called ‘Android’s biggest security flaws‘ at ZDNet (at http://www.zdnet.com/androids-biggest-security-flaws-1339338283/). As they mention the dangers of inexperienced and malicious developers, they actually forgot about the third group, the ‘callous developer’. These firms (not the individual programmer), who are all driven to meet certain deadlines and as such might not properly test or secure their application.

It is important to note that I do not see the inexperienced developer as a real threat. Yes, they offer the same level of danger, but they are not out to harm you. You, the user, who wants applications for free (as many do) should not blame that new person for trying to get a foothold. If that developer is to be held for one thing, then in my mind it would be that too many of these freebies should bare the mark ‘Beta’ or ‘Trial’, to add an extra warning level for user downloading their new endeavour.

The big issue becomes: ‘What to do about Android?’

As the influence of android increases and interacts with all manner of devices in other ways (like with a person’s Sony-id account, so that a gamer keeps online with friends and achievements when they are not at home), gives way that security flaws become more and more harmful. More important, as we become more and more oblivious of the interaction, we might be spreading all our personal details all over the internet and that danger could grow exponentially with every additional application.

These events also shine an interesting light on an article that was in the Guardian last Friday (at http://www.theguardian.com/uk-news/2014/jan/24/justify-gchq-mass-surveillance-european-court-human-rights). When we consider the issues I listed on application security, we should take a second look at the quote in the article “Nick Pickles of Big Brother Watch said: ‘This legal challenge is an essential part of getting to the bottom of why the public and parliament have not been properly informed about the scale of surveillance and why our privacy has been subverted on an industrial scale.’”

Perhaps the quote could also be read as “Speed and disregard of proper development has allowed for open access to many computers and devices, which allows for almost complete collection and stored and such storage can only be done by just a few. This open level of availability allows the NSA and GCHQ (amongst others) to collect open source intelligence, hoping to gain the upper hand in the war on terror.”

I am not stating this is the case, but it could be seen as such. In that regard I call for the issue I mentioned in a previous blog called ‘Internet Privacy?‘ on December 27th, where we see the dangers of some applications (at http://www.theguardian.com/media/2013/dec/27/snapchat-may-be-exposed-hackers). If we consider the dangers consumes are exposed to for whatever reason, it seems odd that Big Brother watch is not more outspoken on the industrial subversion of privacy by software designers.

So here we get back to the beginning of this blog where I wrote “I designed a new way for a mobile business system.” As Microsoft has moved into a field of computers utilising an approach in the air of “With our computers you do not need to use the brain you never had in the first place“. An automated system that assumes all the time to cover 95% of its users, loaded with gaps and security flaws.

People need to get licensed to get a gun, drive a car, a boat or a plane. Yet, the dangers that computers expose us to are currently not dealt with in any serious way. I reckon that in the next two years identity theft and identity fraud will be regularly in the back of our minds, as it grows into the very visible danger it already is. If we look at some of the numbers then I could speculate that 90% of the people will directly know one victim of identity fraud or identity theft. Lexis Nexis, in their paper ‘2013 LexisNexis® True Cost of Fraud Study‘ state numbers that should scare us all. In 2013, 58% of the merchants were confronted with credit card fraud and 36% of the 2013 population was confronted with lost or stolen merchandise. These numbers by themselves are not that useful as such (at http://www.lexisnexis.com/risk/downloads/assets/true-cost-fraud-2013.pdf). Yet consider that 12.6 million U.S. adult victims of identity fraud had to deal on average with $1,653 of damage per fraud victim. The total amount becomes a staggering one and this is just the US! As technology is not properly attuned to a better level of security, but to set to please a growing marketable population these dangers will only increase. This is the true danger ahead, not what the government can see. In that regard Foreign Secretary William Hague is quite correct when he states “law-biding members of the public have nothing to fear“.

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Tagged as Android, Asus, BBC, Big Brother Watch, GCHQ, google, Google Chrome, IBM, IT, LexisNexis, Marketing, Microsoft, Mr Ater, Nick Pickles, NSA, security flaws, Sony, the Guardian, William Hague, Yahoo, Yahoo mail, ZDNet

November 23, 2013 · 16:45

A joke called ‘the Press’!

There is an absolute air of disillusion within me. I knew for some time that the press, claiming to be so worthy of self-regulation seems to look at the things that matter, but on which scale? This is of course their rights, but it seems wrong to ignore a market that impacted over 32 million in the EU, with a large chunk of that in the UK. When changes are being made on several levels, impacting millions, the silence is way too weird. Could they perhaps gain Advertisement space?

You see, Sony is in serious trouble. They have made a step, perhaps even a final step. The market of over a hundred million is gone. The PS3 sold less than their first PlayStation and they barely passed the 50% sales mark of the PlayStation 2. Questions on several levels are made and even though the PS4 launch price is only 75% of the price of the PlayStation 2, the stakes are high!

My PlayStation 2, which I got on day 1 (European launch date) had lived through the years until last year, when I donated it with a ton of games (still functioning perfectly) to the children’s ward of a hospital. Even the original controllers had never failed me. So, I have been a faithful fan for almost 4 generations of consoles. Consider that this is a multimillion user market (with according to the latest numbers almost 95 million people with a PSN account), it becomes a worry when Sony changes the rules, making it illegal to sell your games (trade in) and no one takes a hard look at it. It will impact us here, but it will hit our smaller island (aka United Kingdom) a lot harder, with millions of gamers in financial hardship. Many will not be able to buy a PlayStation 4, and now, with the pre-owned market under attack, the papers, the news and others remain silent.

It is unsettling to say the least.

Why is it such a big deal?

Consider that the Commonwealth economy gets hit, losing in one area a few million consumers because pre owned games are now illegal, more shops need to get closed as they lose revenue. We see more and more articles via game sites (not by the renowned press places) stating ‘Sony reiterates that PlayStation 4 supports used games’, then why make selling your game illegal in the Sony User agreement? This is all in the week before launch, this is all about getting traction and this happens under the allowing and supporting eyes of the press. No questions are asked! Big business calls the shots and changes the market.

This paraphrased quote came from Ethical consumer: “Sony received Ethical Consumer’s middle rating. Sony had subsidiaries in tax havens which were considered to be at lower risk of being used for tax avoidance strategies. However due to a lack of country-by-country reporting it is hard to tell whether a company is paying the correct tax or not. Multinational companies often shift profits between subsidiaries in different jurisdictions, allowing them to dump their costs into high-tax jurisdictions which can be deducted against tax, and shift their profits to tax havens, where they pay little or no tax.”

So Sony is no Google or Amazon, but it does play the legally allowed tax game. That is not a crime mind you, but avoiding tax on one side, and then slice the commerce that does pay taxation on the other side is getting a bit rich. In the end, governing costs money, not paying it means less to support. Worried about the lessened legal aid? Then look at the people using tax shelters!

So as we see the issues of pre-owned games, we see that MCV UK had the same issue, they had the quote from Sony Boss Shuhei Yoshida stating “If you are concerned about our new European TOS, we confirm that you are able to sell or share your disc PS4 products, including in EU.“, so again the issue remains, why make it illegal in the user agreement? A statement can be regarded as ‘erroneous’; an agreement is a binding contract. So the issue remains, can Sony be trusted and why is the press not all over this?

MCV (by Intent Media) is not the upscale journalism place on the grand journalistic scale of things, yet they are all over something the press in general should not be ignoring, so why is the press doing that? There is a third side to this that makes the silence of the press (with the almost unique exclusion from Brendan Molloy of the Guardian in this instance) even more worrying. The statement given by Shuhei Yoshida, should after that fact be regarded as a joke (and a bad one at that).

The TPP (Trans Pacific Partnership) is linked as this charter when we look at one part that set to the following “Criminalise the activities of small business by making every single infringement with the slightest commercial element into a criminal act“.

This means that breaking the user agreement, no matter what Shuhei Yoshida states, means that reselling your game makes that person eligible for criminal prosecution (and in other paragraphs, the shops selling them could find themselves in a similar predicament).

It is important to note that these thoughts come from other sources and even though Wiki leaks presented the full document confirming this, the fact remains that this is not the final published document. What is important to know is that steps are taken to gratify the agreement within the next 6 weeks, whilst according to the Guardian (at http://www.theguardian.com/commentisfree/2013/oct/30/trans-pacific-partnership-tpp-dfat)

The Australian political players involved were either not thinking straight or way too eager to please Microsoft and Sony in these matters, because those are the two players DIRECTLY benefiting from this in a massive way and this goes far beyond their consoles, this is a massive play for profit! Not only will they avoid trade tariffs by 90% at present, they pay almost zero taxation after the fact as well (at present). It seems utterly unacceptable that we open doors to government sanctioned tax havens whilst those big businesses pluck us clean and remain empty on responsibilities on the other hand. With Australia getting 30% – 60% more charged on games and other digital media, we seem to be getting the short end of the stick on many levels. This TPP is a bad idea on many levels and the impression is given that Australia seems to accept the advice from the US. I find it interesting to see a picture of a smiling Foreign Minister Julie Bishop, as she makes small talk with one of the two partners that cannot seem to get their own house in order, at minus 17 trillion the US might not be the actual player in charge. This TPP reads like a joke; it gives additional powers to big business, whilst that big business avoids billions in taxation (in the US alone). In my personal view, how stupid do you need to get here? America has done NOTHING to take on big business and tax avoidance. All their promises have been hollow at best! Acts that have been years in the drawer, issues are ignored and no one take the dangers we are getting to at present serious (they claim to do so and then shelf any acts until the 11th hour). The second partner I referred to is Japan, a nation that is presently holding on to a debt twice the size of their own GDP. So why are John Kerry and Fumio Kishida there, when their governments are basically bankrupt? Doesn’t it make for more honesty to have the TPP with Bill Gates and Kazuo Hirai? They seem to have ended up with the non-taxed revenues.

If we look at the world we just gave away and the innovative world we always fought for, it seems we are making several steps backward, steps that will hurt us for a long time to come, whilst the benefactors are those who remain behind the screens already owning more than god ever did. The greed game usually ends up having roughly up to 99.9992% of the affected being victims, why enforce it even further?

Even though the TPP will not hit the UK directly, these events will lead up to changes that also hit the UK shores sooner rather than later. Even though Tax avoidance seems to be ‘sexy’ enough for the press in general, the Microsoft tax avoidance issues (in the UK around AU$ 2 billion), seems to remain ignored when we consider that Microsoft is all about becoming ‘the entertainment system’ and as such we will soon enough buy TV series and movies online, whilst taxation loses out, which means that at almost no tax, consumers will end up with a temporary product whilst the government gets nil, shops will be driven back even further in economic despair, whilst ‘retransmission laws’ are changing giving the consumer less and less options to see that what they desire (and when they do, likely only by certain rules and certain providers).

All this hits back to the press remaining silent on many of these events. Why?

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Filed under Finance, Gaming, Law, Media, Politics

Tagged as Amazon, Bill Gates, Brendan Molloy, Fumio Kishida, google, Guardian, Intent Media, John Kerry, Kazuo Hirai, MCV, Microsoft, Playstation, Shuhei Yoshida, Sony, TPP

November 20, 2013 · 15:58

Pricing a Sony game!

If you followed the changes, then it is clear that the console war is currently getting fought and they are now going for all kinds of niche based solutions to keep a handle on greed (as in, to make it more money in any way they can).

In these hard economic times we are all trying to find a solution to make ends meet. If we focus on the gamers, then we see a group of people that is massively represented by those still being tertiary students and many of them are younger than that. So, this is a group that is not overly wealthy. Even the working population that might be into gaming is trying to make ends meet and they too are not swimming in loads of cash. It was in this environment that places like EB-Games are making decent cash to sell pre-owned games. When you do not have a load of cash, getting a pre-owned game at $15-$50 is a lot more appealing than getting the newly packed unused version at $89-$119.

As per last week that commercial game is changing fast on two fronts. The first one is the TPP (Trans Pacific Pact), if this one gets pushed through (the Australian liberal government was trying to do this in secret, but several sources are now openly aware of it), that pact will be an option for Microsoft AND Sony to make even more money than before (as in charge us more for products, as discussed in my previous blog). So, the fact that we in Australia pay on average 35%-60% more on a game was perhaps not enough margin, which will mean that new games will find even less appeal.

But have no fear, Sony (Microsoft too) already has a solution to stop alternatives. In the updates last week, my PlayStation 3 was shown a new agreement and we either agree with this or we lose the online options, which is disastrous for ALL gamers owning a PlayStation.

In this new agreement it stated:

7. Resale
7.1 You must not resell either Disc-Based or Software downloads, unless expressly authorised by us and, if the publisher is another company, additionally by the publisher.

So, the end of pre-owned games has come. Basically, until they can check and enforce it, we are breaking the law, which might give Sony the option to cancel our PSN account and once they can check whether a game is new or not (perhaps they already can), they will just charge us an additional fee or shut the game(r) down. The agreement has many more needles involving unlocking regions, reverse engineering and so on. There are a few sides to that, but in that regard, personally, I think that any company would want to protect their own product, which is fair enough.

Did anyone realise this? So, not only are they greed driven on selling new games, they are destroying a commercial part that has not ever been illegal. Many expected this, but most did not see this coming from both sides at the same time.

No matter how we go next, whether we go to download games, which means Sony stops paying a lot more corporate tax in Australia (and other nations too), or we end up paying way too much for games. So, nextgen consoles will now start to show that it will cost us (more).

In regards to borrowing, Sony never stopped others borrowing a friend’s game. For Sony it is just good business, however, the console game has changed and will keep on changing a little longer at high cost to many of us. So, it is important to see that they never lied; they just did not mention other changes.

So our world is changing fast and it starts changing faster and more extreme as per the end of this year. It is interesting how America, who claims to have high morals, will sell others down the track to big business for simple greed; this is how I see the TPP.

Consider that this could be the end of gaming as we know it. If you think that this is exaggerated, consider that good games are original games (or come directly from them). EA and UBI-Soft are showing us less and less originality. (An 11th version of a sport game or a 4th sequel to Assassins Creed is not an original). Our hopes were with the Indie developers who come with that golden idea that will invigorate us with the passion of a new gaming era. As the TPP reads (for as far as I read parts of them), the pact is there to push IP powers to the US and its allies (where these big businesses are based). This is not what IP was about, it was always about protecting innovation, not for big business to exploit and to hammer down their interests to their extent.

In gaming, innovation has not come from big business for a long time!

Consider Minecraft and Catherine, some will not call them great games, the first one is massively addictive, both are originals. Even next year’s release of ‘the Evil Within’ which comes from a small player called Tango Gameworks should be seen as an original. Even though many of their staff come from Capcom, this new player has the creative mind that brought us Resident Evil. It is important to protect these small developers, even (or better especially) if they are not from Japan or USA. Forcing them under some IP umbrella designed by the TPP was never the goal (this is how I see this going in the future). When innovation goes, games (or art) will suffer first! That has been proven more than once. So how will you feel about a $500 console when big business decides what makes a good game? Consider that NONE of the big boys (in those days) wanted to publish the game Lemmings. I remember that it only got out because some people at Psygnosis were not too busy. It became one of the most successful games EVER to make it to the home computers and to my knowledge the only game EVER to be released on most 8-bit and 16 bit systems (it was a really addictive game).

If we look at 2013, then in my view, ‘The Last of Us’ (by naughty dog) and ‘Beyond Two Souls’ might be the actual original games of 2013, even though the latter one is based on the Heavy Rain engine, so originality is a little bit of an issue there. If you want to see another example of originality then ‘Dragon Story’ comes to mind. Even though I think that they made several greed driven mistakes via their IOS edition, this game could be on Nintendo, the game that will compete with Pokémon. If they grow the engine beyond what they have now, it could become a mega seller for the younger players on any console if they add more game play to what they have.

Yes, 2013 had great games, but they were all sequels beyond the ones I mentioned (I apologise for any titles I missed), so if we are to grow as gamers, then we need originality! The changes as we see them will drive us all to other systems and perhaps that might become the very expensive lesson that Sony and Microsoft will have to learn the hard way. Consider the option of getting that Google console for $99 and buy (and play) a ‘Minecraft like’ game on that! Over a hundred hours of fun for the price of a single Sony/Microsoft game.

Gamers do not like to get boxed in, both Sony and Microsoft better learn this fast!
If consumers who are into gaming would consider waiting no less than three months before they buy a next Gen console. They might end up getting a much better deal in both the short run and the long run. How much damage are Sony and Microsoft willing to suffer? Holding a 16 billion dollar industry at ransom is currently the only option I can think of, especially as governments (Australia included) are very willing to give the keys (and powers) of Intellectual Property unjustly to big business.

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Filed under Gaming, IT, Law, Politics

Tagged as Capcom, Dragon story, EA, Electronic Arts, Evil within, google, Microsoft, Minecraft, Pokemon, Psygnosis, Sony, Tango gameworks, TPP, Ubi-soft

November 16, 2013 · 23:17

A changing console war

We are 12 days from the beginning of a new war, an all-out war, it is the war of the consoles and this war will start now and will go on until past Christmas. Yes, Christmas is the new center of these war efforts.

On the left side we have the one, and on the right side, the other. It is Sony versus Microsoft and it does not matter who you choose or support, you the gamer will make at some point a choice. Some with get neither and some will get both, 4 groups! From my view, I choose the Sony side, as the PlayStation 4 is stated by them as a system for gamers! Yet, both sides made the same mistake, even though Sony had an optional alternative, both systems come with a 500 Gb drive. The PS4 allows for the system to be upgraded with a bigger drive. What I do not understand is why they did not install a 1Tb drive for a mere $20 more. There is a lot more to this, but about that part more a little later.

I will mention at this point, right now, that part of the view that follows has bias. I want to be completely impartial, but to claim impartiality when a person’s passion is attacked is at times way to ludicrous!

My issue with the Xbox One, the Microsoft (aka Micro$oft) product had issues from the very beginning. First, they (Microsoft via Don Mattrick) announced on the need for a once a day login to the Microsoft system. I discussed that in my blog called ‘Discrimination or Segmentation in gaming? (UPDATED!)‘ In June 2013, that part was later recalled, which is why I updated the blog. I do believe in keeping people abreast of the correct information. Microsoft made the blog again in August 2013 in my blog called ‘Tax evasion, copyrighted by Vodafone?‘ This was all about ‘pay as little as taxation as possible‘, which will link to this later. Then in September 2013 we get the blog ‘The marks of trade‘ which again links Microsoft. So, why are these linked to the console war?

The last article has the mayor link to what the consumers of their choice in the console wars are not getting informed about. “When the digital world is entering the field where more and more possible ‘new’ consumers are updated through the net, it seems that their marketing and party lines need to get a massive overhaul and it should all get a much better mentor system then it currently seems to have.” There is a side that had been hidden, even from me. This side is not on the up and up and even game sites like Gamespot have until now been silent about it. The latter one is silent about it as they might not be aware at all, which would be fair enough.

So what is going on?

The next generation of consoles will evolve into a new world that is all about DRM (Digital Rights Management). Even though you think that this was off the table, certain changes are now becoming visible doubting that all no matter what some executives claim to be the case. In case of Microsoft, for their system, as this is not a gaming system, but it has been labelled as an ‘entertainment system’ this all will become a much bigger issue. Do not think that Sony is off the hook here, they will be part of all this down the road too!

The issue came to light when I was made aware to an article called “TPP ‘A Substantial Threat To Australian Sovereignty’” (at https://newmatilda.com/2013/11/14/tpp-serious-threat-australian-sovereignty). If we ignore mentions like ‘secret law‘ for now and concentrate on “a law that will override the High Court of Australia” as quoted, then we see that our attention was pulled away from lawmaking that will have a massive influence on global users of all forms of entertainment.

Suelette Dreyfus a research fellow from the University of Melbourne states “At its heart the TPP is basically a grab for money. It will take money out of the pockets of average Australians and give it to large corporations in the US“. She also makes a mention on how illegal movies will now have to be policed by the ISP’s, even though the high Court of Australia had already ruled in ‘Roadshow Films Pty Ltd v iiNet Ltd [2012] HCA 16‘ in this matter. The law changes would influence future events. I dealt with the initial issues of illegal downloads somewhere during the year, but the change might, if enforced mean that, should illegal downloads stop (I am not against that), that the economic fallout would be enormous. Consider that Telco’s would see a bandwidth drop of two marks, which would mean that the consumer bill would lower an average of $30 a month, with over 7 million users this amounts to 210 million revenue per month less (spread over several providers), this would have a massive consequence, but the effect would soon be global if this path continues. To be frank, it does not affect me, I never download movies. I prefer the quality of a DVD/Blu-Ray on my TV screen, whenever I want it.

Brendan Molloy, the Information freedom activist and Councillor for Pirate Party Australia has an interesting view on other changes. “Perhaps the most shocking inclusion in the TPP IP chapter is criminalisation of non-commercial copyright infringement.” The Australian patent law changes, discussed in what is referred to as the ‘raising the bar act 2013‘, is all about promoting innovation. These events change everything. His quote “The text even attempts to consider temporary copies to be copyright infringement!” is an interesting (read dangerous) change. It implies that personal owned transfers (like CD to MP3) could be affected. A final quote is “There is language that would lower global standards on medical patents and potentially extend patents beyond 20 years, all supported by the United States.” This means that there steps in place to thwart innovation and strangle hold commerce. This means that only the big boys will be able to dictate progress for the next few decades, which means innovation goes out the window for a long time to come.

Angela Mitropoulos, Researcher at the University of Sydney has the following to say “The biggest winners in the TPP are the largest global corporations and, with the proliferation of mechanisms proposed, they intend to fully harness the infrastructures of the internet and the full force of the law in order to capture and extract even larger profits and a wider share of the world market.”

Basically, the new world terrorists will be the large corporations, if these reported events are true. So how does this strike back to the console war of Sony and Microsoft?

First of all, games and consoles are ALL about innovation. A console is only as good as its games and without innovation a console dies fast. Sometimes reverse engineering is the only way to get true progress. Consider the parts mentioned earlier, and if you have a console (either Wii, Xbox 360 or PS3), look at all the parts you have and how many of these parts were not an official Sony, Nintendo or Microsoft product. Items like recharge-able batteries, controllers and head sets. All that could stop! The issue goes a lot further, if we consider the quote from Brendan Molloy “article QQ.G.10 reinforces one of the worst parts of our current IP regime, which consists of legal protections for technical protection measures. Why should it be illegal to jailbreak your iPhone?”

So products like Blu-Ray’s and DVD regions and Smartphones. All of it treated under scrutiny of big business! Consider that due to these changes the new iPhone 6 could then only be there for the Telstra (or Vodafone) customers (presumption). These changes would make these events possible. Smaller firms would quickly be pushed out of existence, giving even more power to big Telco’s. This could also have an effect on consoles. If we consider the implications, then the danger becomes ever more apparent that the innovation that we desire to see gaming go forward is also in danger as a sizeable part of the indie developers are in the Czech Republic, Finland, Germany and a few others, who are not part of this agreement. So, if Sony and Microsoft set their IP stranglehold to such an extent to drive these developers away, then what happens to innovation?

The TPP seems to be about segregation not about innovation (as far as I saw the information pass by), which means that whatever happens will be under complete control for Sony and Microsoft for their respective consoles. Is this bad or is this good?

I think it is a bad thing, if we consider innovation in gaming. I am not against Activision protecting themselves against a reverse engineered version of Skylanders on one side, but to strangle hold a market will never lead to innovation, which translates in our case to better and new original games.

The next part is on Microsoft specifically. This is because they ‘wanted’ to label their system as an ‘entertainment system’ as such; the changes that the TPP is trying to push through will have additional consequences for the Xbox One.

The initial TPP article made the following mention, which came from Brendan Molloy “The United States has proposed several provisions that are anti-innovation. One such provision is a blanket ban on the retransmission of TV signals over the Internet in Article QQ.H.12, regardless of purpose, without permission of the rights holder.” This is where I get back to that small drive in the Xbox One. There are two sides. If we cannot store too much on the Xbox One, then we must either park it on the cloud (where we can be monitored), or we download it again and again (costing us bandwidth). That was ‘yesterday’, when the TPP comes into play, the retransmission of a movie from the cloud might come with additional limitations where any additional ‘replay’ could be charged. I am not stating that it will, yet the changes are ALL about economic control, so it could happen. This reflects back to the part in ‘Tax evasion, copyrighted by Vodafone?‘, because even though we are all charged, the provider is likely to pay a lot less taxation on these services, so not only will local commerce get hurt, those local governments will collect a lot less corporate taxation because of this all. We saw that in cases of Apple, Amazon, Google and a few others.

That means that the digital movie and TV options from Microsoft would go through very specific bans and very tight rules. This means that picking up the Swedish or the Dutch newscasts online might not be possible. You see, QQ.H.12 is one step away from WHICH stations your entertainment system will receive, all set in a nice package pushed through by a nation that is one step away from bankruptcy, desperately in need of money! You still feel safe with your Xbox One?

So, as we see the interaction of QQ.G.10 (jail breaking) and QQ.H.12 (retransmission) we see that in the broadest sense of the word that Microsoft could decide what we see and when we see it. Is this the global, shared world we were supposed to move forward to?

The site ‘Business Spectator’ quoted the following in regards to the TPP. “Besides the United States, the pact would include 11 other nations, among them Australia, Japan, Malaysia and Mexico, though it excludes regional powerhouse China as well as Indonesia, Southeast Asia’s largest economy.” So, it seems that the IP world is no longer about making a global effort in moving forward, with these different trade pacts we will get a new war, not on resources, but on who gets to play with what, when and how and the new consoles are smack in the middle of this changing landscape.

So if your console does more then play games, the question will soon become ‘at what price‘ will it do what it does?

Philip Dorling from the Sydney Morning Herald reported this 2 days ago “Australians could pay more for drugs and medicines, movies, computer games and software” so even though we get to pay 30%-60% more on games at present and 60% more for movies, we might end up paying even more then that? I am not even touching medication, which is a hot iron on several levels. To read that Tony Abbott is quoted in the article with “Prime Minister Tony Abbott has indicated he is keen to see the trade talks pushed to a successful conclusion next month” gives us further pause for concern. The man just got elected and it looks like he sold us out to the Americans within 80 days of his election, this must be a new world record!

So the choice of your new console could come with an additional price tag, one that the politicians will happily leave to big business to decide. I have not known ANY instance EVER, where greed driven entities EVER decided in favour of the consumer! It is an expensive lesson gamers might soon be forced to learn again soon.

Have a great holiday and don’t let that new console hit you too hard in the Credit Card on the way out of the shop.

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Tagged as Activision, Amazon, Angela Mitropoulos, Apple, Brendan Molloy, Don Mattrick, google, Microsoft, Philip Dorling, PlayStation 4, Sony, Suelette Dreyfus, Sydney Morning Herald, Telco, Tony Abbott, TPP, University of Melbourne, University of Sydney, Xbox One

October 3, 2013 · 21:50

The numbers we ignore?

Today is another day that the US government is in shutdown mode. This is not Episode 8 from season 5 of the West Wing by Aaron Sorkin (brilliant man). This is reality!

There is polarisation on many levels and even though we want to blame one side as we stand on the other side, there is a deadly reality playing out in the corridors of power. The Democrats refuse to cut their spending; the Republicans will not play soft or compromising. Today we see the Guardian with “Obama meets bank chiefs as economists warn of ‘deep and dark recession’” at http://www.theguardian.com/business/2013/oct/02/obama-bank-chiefs-economist-deep-recession. As we look at a few facts quoted “President Obama met bank executives including Goldman Sachs chief Lloyd Blankfein“. The firm that helped many lose their house. I admit that this is unfair towards Mr Lloyd Blankfein, but the sentiment behind it stays in valid form (I will get to that later on).

“A looming battle over the nation’s $16.7tn debt ceiling. Treasury secretary Jack Lew has warned that the US could default on its debts if the limit is not raised soon.”

The second part is why the republicans are not budging. The Democrats are raising and spending and leaving it all to the next one in office. There is enough evidence to state that it is likely that the Republicans will return to the White house. In that regard, they have ZERO interest in cleaning up the Democrat mess, which will take several administrations. The fact, that the Democrats are not willing to cut their spending, whilst they spend a lot more than their budget allows. It is almost hilarious how things are spun. They claim it is all about affordable healthcare, whilst this option is increasing the debt by $100 billion a year. Now, it there was money coming in on the other side, there might be some level of case, but that is not happening. This current administration has added over 5 trillion dollars in debt during his first term. That is an overspending by 3.4 billion dollars a day. With Obama care this will be even more. Now, this administration inherited a sour deal. The economy had collapsed; there were issues with some financial crash in Wall Street and so on. Yet, the debt he has added to in one term is a lot more than Bush added in two terms. (So both sides have some of the blame). The republicans are not blameless, but they will not accept the continued addition of debt which is currently getting pushed. The US national debt is now well over 100% of its GDP. This is the part many seem to ignore. So if all taxation (which is only 26.9% of the GDP) is used to pay for the loan, then it will take 4 years to get rid of their debt. That works ONLY if the US government pays no wages, fixes nothing, builds nothing, buys nothing and heals no one. So for 4 years Americans must make due with nothing at all. This is not a realistic approach, I admit that! So you can only use to pay what you have left, however the government has been spending 120%-145% of the money they received and with Obama Care spending will increase. America is currently, in my humble opinion bankrupt!

Do you doubt this? This would be a fair enough position to take, consider any company being allowed to spend 120% of their annual revenue. How long until any bank will close the tap? In addition, there should be overall outrage that a company would work 100% of the time just to pay the bank. There is 0% job security in that regard, for if the annual +5%-+15% cannot be made, they will cut the costs that are not desired. In that scenario there will be no healthcare of any kind, because the sick do not contribute to the future of profit. That dangerous situation currently exists!

The article by the Guardian has more “But he warned that would be nothing compared to the Pandora’s box that would be opened if no deal on the debt ceiling was done before 17 October deadline. Congress must agree to raise the US’s $16.7tn debt ceiling by that date or risk being unable to meet its obligations.”

That is the crux! The total debt will increase and the republicans will not stand for that. My earlier comparison to get rid of the debt in 4 years is not realistic, I said that. Only if spending is lower than American income can the debt be lowered. It will take more than 3 generations to get that done. Some disagreed with that number. This is fair enough. Yet, let us make a small calculation.

$17T is $17,000B. The interest due would be $340B (it is actually higher at http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm, but it is about the example).

If we believe the census (as shown in my Blog ‘Biased Journalism on USA shutdown?‘) then the interest due is 13% of ALL collected taxation. How can ANYTHING get done after the interest is paid? And that is only interest, no decrease of the actual loan. So consider that all amenities, support and expenditure of the US must decrease by at least 16% to get this done. How can that ever be a realistic situation? This is why the Republicans are not budging. The more important issue is that the Democrats knew this. They knew that the train would stop and they ignored this. Not unlike in the Netherlands where everyone stated that the SNS Bank was too big to fail, the Dutch government nationalised the bank. Why the Dutch as an example? Well, they are in some similar predicament. They are not able to lower spending. They need to cut an additional 6 billion whilst their GDP was 700 billion last year. If they cannot cut 1%, how will the US ever deal with their debt? There have been words on corporate taxation left right and centre, yet what they are not mentioning is the issue that the UK has seen this year. Big business, like Google has been pushing their own booked revenue to other places. This quote from Bloomberg “Google’s chairman says he is ‘proud’ of the way his company avoids paying taxes ”It’s called capitalism,” Eric Schmidt told Bloomberg in a…” So, whatever money the US treasury has coming in, it is not from the big boys of business. They have the right accountants and tax lawyers. So here we get back to Goldman Sachs chief Lloyd Blankfein.

When we see the acts of Google and how Goldman Sachs was involved in the Greek issues, people would wonder whether they (Goldman Sachs and the US government) are not working together in the same way. If so, then there are more questions on the entire setting of the article the Guardian published (from the link at the beginning). There is no way that someone like Mr Blankfein is not aware what the big boys of industry in America are doing. When we read in places like Forbes that Google is not alone in these acts, but that companies like Apple are doing the same thing, then raising a debt ceiling whilst the captains of industry are not paying anywhere near the tax they ‘should’ then we must ask other questions. All this becomes even more hilarious when we consider the information from the Financial Standard on July 15th (at http://www.financialstandard.com.au/news/view/33335431) where it is stated that “US delays tax avoidance law by 6 months“. So the big boys in that initial Guardian Article are all about gloom and doom, whilst the US treasury seems to be missing out on taxation by not acting on Tax evasion (which is actually not a crime at present). So they want to borrow more, but will not put in place legislation that would lessen the dangers of paying the due interest. That last part is shown in Forbes article last month by Steve Denning. (At http://www.forbes.com/sites/stevedenning/2013/09/12/alan-blinder-six-reasons-why-another-financial-crisis-is-still-inevitable/)

Dodd-Frank Act of 2010 hasn’t been implemented.
The $5 trillion banking assets in derivatives are still off-balance sheet and unregulated
The rating agencies are “still hired and paid by the very companies whose securities they rate.”
The Volcker Rule forbidding proprietary trading by banks has not been implementedAnd I add;
US tax avoidance laws not implemented.

From these parts we could come to the conclusion that the Obama administration has failed the American people almost completely, whilst unable to get spending under control.

American politics is a lot more complex, so there are other factors, but it seems to me that Steve Denning is showing us several dangers that are currently not stopped. So when, not if, they happen, the people as they walk away with nothing left, can wonder how that expensive affordable healthcare is helping whilst they have no house, no job and no food.

It is a sad day for many people, because in the end, not only America seems to be unable to control their budgets, they are only, for now the most visible one.

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Tagged as Aaron Sorkin, Apple, bloomberg, Democrats, Dodd-Frank Act, Eric Schmidt, financial standard, Forbes, Goldman Sachs, google, Guardian, Jack Lew, Lloyd Blankfein, Obama Care, Republicans, SNS Bank, Steve Denning, US Tax avoidance, US Treasury, Volcker rule, West Wing

September 2, 2013 · 00:20

FISA? Gezundheit!

In a column for ‘all things D‘ (democratic I guess), Arik Hesseldahl wrote an article called ‘Microsoft and Google Will Sue U.S. Government Over FISA Order Data‘. A decent article! I did not completely agree with it, but the man wrote a decent story of his view and he was not playing the ‘spin’ game. I can respect that, even if I do not agree. The same could be said for Bill O’Reilly. I do not always agree with him either, but his clear and clear outspoken views are valuable to hear. So, in the case of Hesseldahl I responded.

The response (from another reader), which was “Your analogy is accurate, but your point is misguided. The government was afforded specific rights by the people via FISA laws. Not only were those rights abused, but activities outside the scope afforded them were taken, and are therefore illegal.” was interesting to read. There was more than that, but basically I was the misguided one.

Fair enough!

So let’s take a legal look at this Foreign Intelligence Surveillance Act (FISA), especially the amendments which are extended until July 2015. It is the work of Edward Liu, who is currently the Legislative Attorney at the Congressional Research Service.

The initial find where this all starts can be found on page 4 of that work “National security letters, which are analogous to administrative subpoenas and are authorized by five federal statutes, require businesses to produce specified records to federal officials in national security investigations.”

I will ignore the footnotes, as they will just delay. The important one for this quote refers to “Legal Background and Recent Amendments, by Charles Doyle“. The person not agreeing with me relied on the quote “but activities outside the scope afforded them were taken“. Was it? Let us not forget, this is about Foreign Intelligence. Google, Facebook, MSN are global organisations. Collecting and servicing billions (with 330 million US citizens, we can clearly state that there is a massive amount of foreign involvement).

The next part is how this is about transgressions on US citizens. Is it really? These Americans, mostly innocent people, include a fair amount which are playing fake identities, often trying to impress women showing the sexiest outfits. This is not wrong, illegal or questionable (actually, that might be a case), yet many of those profiles are linked to people not being those people at all. Some are criminals collecting identity details, some are simple scammers and possibly 1 out of roughly 734 will really be that woman, 1/734 is not that good an odd. The alphabet groups do not really care about these parties, but when we consider that some of these tactics are employed by the very terrorists and the supporters they are trying to find it becomes a new ball game.

Page 5 of that document gives us the next little snack “During the examination of the events leading up to the attacks, it was reported that investigations regarding Moussaoui’s involvement were hampered by limitations in FISA authorities.“, so accepting that, then finding these dangers require a little more than they are now getting.

That gem is presented on page 9 of the aforementioned document.

“In United States v. Petti, the U.S. Court of Appeals for the Ninth Circuit was presented with a challenge to a roving wiretap under Title III alleging that roving wiretaps do not satisfy the particularity requirement of the Fourth Amendment. The court initially noted that the test for determining the sufficiency of the warrant description is whether the place to be searched is described with sufficient particularity to enable the executing officer to locate and identify the premises with reasonable effort, and whether there is any reasonable probability that another premise might be mistakenly searched.
Applying this test, the Ninth Circuit held that roving wiretaps under Title III satisfied the particularity clause of the Fourth Amendment. The court in this case relied upon the fact that targets of roving wiretaps had to be identified and that they were only available where the target’s actions indicated an intent to thwart electronic surveillance.”

The latter part was also a footnote link to United States v. Bianco, 998 F.2d 1112, 1124 (2nd Cir. 1993) (similarly holding that a provision authorizing roving bugs under Title III was constitutional)

So why are Americans so set upon claiming illegality?

My initial response was about people bragging on Facebook the 243.1 ‘stupid’ things they do to every Tom, Dick and Harry and then nag about the fact that the government takes a look. It was never about them, but about finding those attacking America. It seems to me that many of these people are way too eager to complain when they are asked to help keep their nation safe.

From my point of view all Americans should hand their on-line ‘data’ to the NSA.

Why?

Well, consider the field of predictive analytics. If we are to flag a terrorist, then we need to know the data that makes for non-terrorists too. Whether this profile data concerns a horny student, an adulterous husband/wife, a fence not the one in the garden), a carjacker, a geek or an average parent. If the system has ALL the facts, the more we know, the more pronounced an identifying flag becomes. If predictive analytics is about finding the odd one out, then basing the search on grey people alone will not do, or at least will result in many flags that need more checks. So if we accept that this is about the need to analyse current and historical facts to make predictions about future or otherwise unknown events, then we must have all the data. If we know what a US Apple Pie eating and cuppa Joe drinking person does, then we can see many more elements. This all reflects on our acts on-line and off-line. They will give us a line that raises flags. Flags based upon things we do and even more flags on things we are not doing. That results in a picture!

Now wonder, why are you against helping your nation?

Is this about your privacy? If so, then why are you on Facebook/Google+? These places are to share with friends and THEIR friends (so often your data is shown too many more then you anticipated/expected. In addition, many seem to incorrectly use Facebook a lot more often then they think, which in turn means that your birthday party invitation went to 17 million connected people (it happened in the US, the Netherlands and a few other places, and it happened more than once).

And those so called ‘criminals’ claiming privacy? Well the previous case actually left those in power as Amendment 4 transgressions were about “intent to thwart electronic surveillance.” we are not talking about the level the ordinary criminal goes through. This is avoidance on levels that require highly advanced router hacking skills. Can it be used by both? Yes it can, but let us not forget that the court judge could throw some of these facts out in court at a moment’s notice, giving the alleged bank robber a free out of jail card on the spot. The NSA (and peers) know this and they have ZERO interest in these types. They care about the next attack that will come at some point. They just want to figure out when, where and by whom!

If you are still worried about all this, then consider the amendment as discussed on page 14. “a statement of facts showing that there are reasonable grounds to believe that the tangible things sought are relevant to a [foreign intelligence, international terrorism, or espionage investigation.]” So in case of those ‘excited’ students fearing privacy, when was the last time you tried to C-4 her lingerie drawer so that your date arrived without panties? If not, then why worry? (Apart from the small fact that you should not be having access to C-4 to begin with).

So, I disagreed with the assessment made on my response, which remains fair enough. I believe that intelligent people on both sides of the isle can come to wisdom. Whether you stand next to the NSA council, or you side with a civil-libertarian. The origin of UCLA proves the need for civil liberties in no lesser degree. I personally believe that the wisdom is somewhere in the middle. The only part that I never agree with are those blindly hiding behind the quote from Benjamin Franklin “They who can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety.” The quote is wise, but based on another age where there were clear nations, clear missions and where life did not revolve around greed. Because considering the events from the past few years we see more and more correlation with terrorism enabled through desired greed than anything else, for the greedy will only remain loyal to the currency they worship, a simplistic life without true values.

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Tagged as administrative subpoenas, all things D, Arik Hesseldahl, bill o reilly, Bill O'Reilly, charles doyle, congressional research service, Edward Liu, Facebook, FISA, Foreign Intelligence Surveillance Act, google, intelligence surveillance, MSN, national security investigations, predictive analytics, United States v. Bianco, United States v. Petti

August 19, 2013 · 22:11

Tax evasion, copyrighted by Vodafone?

If we look at copyright in the UK, then according to the UK copyright service, which states that “In the case of business ideas, it is again the recorded work rather than an intangible idea that is protected. Copyright would apply to items such as written documents, artwork, etc. – i.e. a Business plan, promotional literature, website, logo, and such items could certainly be registered.”

From that point of view, the creative tax efforts by Vodafone could be seen as an original work of ‘art’ (by lack of a better word), yet are they alone and are they really the first?

Yes, there is so much frustration in voices of people all around me as I hear them complain about the too fast rising cost of living. The fact that I saw an article last week in a newspaper stating that the minimum income for getting a mortgage in London now exceeds a million pounds, which I reckon is some new record to fight. So as many, who dream of a place around Swiss Cottage or Bond street (to keep the Lord’s Cricket grounds within walking distance), we see that this new price tag makes London an affordable place, mainly for Bankers and dealers in amphetamine based chemicals and that is pretty much it. So when these realities hit us and we see that a deal is struck with Vodafone for hundreds of millions of revenue (for the goal of non-taxability) made by what was described as an empty office in Ireland, waves of anger hit many people. This could be seen as a sign that the rich will get richer, at the expense of everyone else.

But is that the actual truth? It seems more a sign of the time than anything else. Vodafone is in pretty good company. They are actually one of the smaller players when we consider grocery shop sized companies like Google and Amazon. It gets to be a lot more hilarious listening to MP Margaret Hodge complaining about it to Google (in May 2013), whilst she is directly connected through family to Stemcor who is having the very same artistic approach to the payment of taxation (or lack thereof). The Telegraph in November 2012 reported that Stemcor, which reported revenue around 2.1 billion with a reported profit of 65 million paid a mere 163,000 pounds in taxation.

Whoever came up with that idea was worth his weight in gold and gemstones in the eye of these corporations.

It does not end there and it goes far beyond the borders of the UK. Consider the following. A software company has an item prices at ‘X’ and then adds consultancy valued at ‘Y’ and the total being ‘Z’ is charged.

So let us take a basic approach. The customer wants the package which requires software and a consultant and is willing to pay 100, consultancy is set at the basic price of 80, which means if the disc could be valued at 20, the price is met, and as such the customer is a new and happy customer. Yet, the books would reveal that even though 100 is truly placed in the books (as a package deal), the disc value is now set at 70 and the consultants at 30, 100 remains the fixed set price. It is interesting that the 70 is set towards the foreign owner of the program and a value of 30 remains behind. Of course the consultant was more (a lot more) expensive, and as this is all within one corporation the consultant will get his monthly income. Yet, was there a case of tax evasion?

It becomes an interesting debate, more important, it becomes the environment of global corporations and even more interesting is where the revenue and taxable revenue should be placed. I would share the view that this is more than a sign of the times; it is now fast becoming THE sign of the future.

In the age of technology today, many government types (PM, MP’s and exchequers alike) might look at certain developments of ‘new technology’ moves, as corporations go to the cloud and digital distribution, yet there seems an apparent lack of ‘comprehension’ is not the right word, perhaps it is ‘realisation’ that all these revenues would no longer be taxable and Microsoft is not even close to being a frontrunner. At present Adobe is far in the lead there. Consider all these advertising and publications houses, they are in abundance in the UK and those houses have moved to some extent, or are largely moving to the Adobe creative cloud, software, that is no longer sold in the UK, costs that are paid for in the UK and are therefore tax deductable revenue, which is shrinking the UK government revenue pie chart by a lot, especially as revenue from the other side of that equation is no longer in the UK for any level of taxation.

Whether we realise it or not, the old tax deduction scheme was designed on some level of equilibrium. We had tax deductions on one side, because we bought certain items like hardware and software. Hardware is now no longer the expensive post it used to be and the software part that is still steep in some cases is no longer bought, it is leased. As such the equilibrium is gone and a nation cannot continue on one side to hand out deductions as the other side of the scale no longer exists. This gives us two dangers. The first is that certain parts would lose deductibility as the other side stops existing; this should be seen in the light that the cost of business is going up, whilst revenues will not get better. This approach is set by the bulk of cloud providing ‘solutions’ and that group is growing really fast. If the UK government (not just them) loses out on taxable revenues exceeding 15 billion pounds on software alone, where will they get the money from? When we consider the trillion pound debt, then we should worry about such changes and it is not just the UK who is facing them. These companies as mentioned before are doing this on a global scale, which means that Europe is getting hit hard all over the place and it is not unlikely that as cloud servers are placed all over the planet these companies will move into new group that could be labelled as ‘the global non-taxable core of corporations’.

In the past I proclaimed strongly that when we saw the information about Microsoft with their Xbox One approach and the cloud was not about gamers. Gamers do not warrant the implementations of over 300,000 servers. Yet, add the earlier mentioned events to the equation and we end up with a global customer base of software and as Microsoft stated it themselves, an entertainment provider of TV, Movies and Software, all in the cloud! As we see the situation now, likely less than one tenth of a percent might end up being taxable. In that same light should you wonder why NTT DoCoMo was so happy to get into the Indian market, then here is the evidence. Out of a very rough estimation (by me) of a total value of entertainment products that is cloud distributable which exceeds 350 billion (business and entertainment products), consider that these products would in future yield less than 0.5 billion in tax revenue on a global scale. This means that national infrastructures on a global scale are about to get hit really hard (unlikely before 2014). So as NTT DoCoMo starts streaming 4G based entertainment solutions, a massive amount of taxable revenue would no longer end up being taxable at all. So long Tax department of India!

It was exactly for these reasons that I advocated an approach where taxability of services are charged on the consumers side, to avoid the pitfall many governments are about to get faced with. That approach would end the dangers of Google, Amazon, Vodafone et al to walk away with a ‘non-taxability’ based commission solution.

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Filed under Finance, IT, Law, Media, Politics

Tagged as Adobe, Amazon, google, India, Margaret Hodge, Microsoft, NTT DoCoMo, Stemcor, Swiss Cottage, Tax department of India, Telegraph, UK copyright service, Vodafone, Xbox One

June 14, 2013 · 16:42

How the mighty fall

For some the E3 is still in the front of their minds. For some it is the confirmation of things to come and of things about to happen. For some it is also the start of a nightmare.

When it comes to gamers, we often see the start of name calling. We might hear words like Nerds, Geeks and a few others. It makes the people who do not understand gamers happy and comfortable. There is however the group that thinks of them as exploitable. That group is about to see the light in ways thy have never experienced it before. In this I am talking about Microsoft.

You see Microsoft had a good name, for some this good name remains. The Xbox and the Xbox 360 are good consoles. I have a 360 and I have enjoyed gaming. I will enjoy gaming a while longer, but no matter how good it could be, the X-Box One (XB1) is currently not on that list. You see, Microsoft wanted too much, too quickly and now they are at risk to pay dearly. There were these large thoughts of charging pre-owned games for usage, to be online at least once every 24 hours. This has nothing to do with gaming. This is all about keeping tabs. I wonder if the scare the NSA PRISM issue gave many has anything to do with it.

The truth is that the gamer group wants to play games pure and simple. I belong in this group. I can afford a new game with some regularity and I have been part of Gaming and the Gaming Industry since 1986.

I know plenty of people, many mothers who want to give their kid a nice game, but $109 is just not in their budget. Even for some it is over the top for a birthday present, which is very understandable in this economy. These people RELY on pre-owned games, and in this economy that group will grow exponentially for a little while longer. So when Microsoft enabled the chance to go after gamers, I revolted! The reason is simple, if we gamers do not unite, we get taken for a data-collection and money grabbing ride.

Some will not care about not being online, about privacy and they just buy games and play. That is fair enough. Buy your XB1 and game. Many of those will keep on gaming happily and all. I feel for those unable to buy new games, and even though they would face a season-pass fee to play multiplayer online (which in my mind is fair enough). they end up paying a lot less than the $100+, to play.

So as gamers feel betrayed by the issues raised by Microsoft (or M$ as some now call them), they will move away and run towards the PlayStation 4. So Sony is more than the big winner, they are likely to leave Microsoft with their XB1 (or X-Bone as some call it now) far behind them and no longer see Microsoft as a contender in the gaming industry.

This also opened a door for others. Even though this market has had a long time 3 player supremacy, Microsoft has opened the door for Google to enter in the low class with their OUYA and open up for a new form of gaming. Even in old Roman days (not the one shown by the new game RYSE), we know that the people want bread and games. Even if everything goes down, political and industrial power remains where the people have bread and games. So as OUYA enters the field, as Sony strengthens its pure gaming power core, Microsoft is about to lose a serious amount of market share.

They will deny this and over time they are likely to show on how the ‘home-entertainment’ market is so up in revering the XB1, the gamers will see a shift in the balance of power. Nintendo has always been a gaming world and as such it has a unique family based following. Yet, the others will feel their markets. Sony will be up and Microsoft will go down.

I thought about this, and should I win the $25M jackpot (extreme wishful thinking), then I know exactly where to go. You see, Microsoft is about to leave a quarter of a billion dollars up for grabs for those who know how and where to take charge. It is very certain that Sony will grab part of that, yet they remain high end. Especially if we look at countries like Spain, Italy, Greece, the Netherlands, France, US and the UK. These nations are saturated with people who just cannot afford the high end gaming market and a $99 Google AUYO with a Google play approach of less than $10 games might sound small, but when you consider a market of 30-50 million gamers that is now up for grabs, that market will amount to serious coin.

Will Microsoft fade? No, they are too big to fade and when the Microsoft Lawnmower man comes in to trim the size of MS management and reshape their entertainment side. When they see the nightmare they themselves created, they will refurbish their share and they might even regain some of their lost market share. However they are unlikely to regain it all until the economy gets a whole lot better. This is not likely to happen before 2015. Until then Google gets a chance to get into a market they did not expect to have. A multi-Billion dollar market the got opened to too many factors of greed and they tried that in a place where greed gets stopped real fast.

Consider a count of games that consoles offer at launch date. In fairness all systems have start-up issues sith games. It comes with the territory. The Google OUYA at prelaunch (today) has registered 146 games for purchase. That is the biggest start EVER (ps1 games on ps2 launch date do not qualify, neither do NGC games on Wii). If this ends up about timing, then Google’s timing was perfect.

More info at http://www.ouya.tv/

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Tagged as E3, gamer group, gaming, google, Google OUYA, Microsoft, NSA, PlayStation 4, pre owned games, PRISM, RYSE, Sony, Xbox, xbox 360, Xbox One

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