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Bogus Copyright Claim Silences Yet Another Larry Lessig YouTube Presentation
(via - Techdirt )
I read it on 03/02/10 at 08:50 AM
Posted on 03/02/10 at 12:26 PM

Nearly a year ago, we wrote about how a YouTube presentation done by well known law professor (and strong believer in fair use and fixing copyright law) Larry Lessig had been taken down, because his video, in explaining copyright and fair use and other such things, used a snippet of a Warner Music song to demonstrate a point. There could be no clearer example of fair use -- but the video was still taken down. There was some dispute at the time as to whether or not this was an actual DMCA takedown, or merely YouTube's audio/video fingerprinting technology (which the entertainment industry insists can understand fair use and not block it). But, in the end, does it really make a difference? A takedown over copyright is a takedown over copyright.

Amazingly enough, it appears that almost the exact same thing has happened again. A video of one of Lessig's presentations, that he just posted -- a "chat" he had done for the OpenVideoAlliance a week or so ago, about open culture and fair use, has received notice that it has been silenced. It hasn't been taken down entirely -- but the entire audio track from the 42 minute video is completely gone. All of it. In the comments, some say there's a notification somewhere that the audio has been disabled because of "an audio track that has not been authorized by WMG" (Warner Music Group) -- which would be the same company whose copyright caused the issue a year ago -- but I haven't seen or heard that particular message anywhere.

However, Lessig is now required to fill out a counternotice challenging the takedown -- while silencing his video in the meantime:
While you can still see the video on YouTube, without the audio, it's pretty much worthless. Thankfully, the actual video is available elsewhere, where you can both hear and see it. But, really, the fact that Lessig has had two separate videos -- both of which clearly are fair use -- get neutered due to bogus copyright infringement risks suggests a serious problem. I'm guessing that, once again, this video was likely caught by the fingerprinting, rather than a direct claim by Warner Music. In fact, the issue may be the identical one, as I believe the problem last year was the muppets theme, which very very briefly appears in this video (again) as an example of fair use in action. But it was Warner Music and others like it that demanded Google put such a fingerprinting tool in place (and such companies are still talking about requiring such tools under the law). And yet, this seems to show just how problematic such rules are.

Even worse, this highlights just how amazingly problematic things get when you put secondary liability on companies like Google. Under such a regime, Google would of course disable such a video, to avoid its own liability. The idea that Google can easily tell what is infringing and what is not is proven ridiculous when something like this is pulled off-line (or just silenced). When a video about fair use itself is pulled down for a bogus copyright infringement it proves the point. The unintended consequences of asking tool providers to judge what is and what is not copyright infringement leads to tremendous problems with companies shooting first and asking questions later. They are silencing speech, on the threat that it might infringe on copyright.

This is backwards.

We live in a country that is supposed to cherish free speech, not stifle it in case it harms the business model of a company. We live in a country that is supposed to encourage the free expression of ideas -- not lock it up and take it down because one company doesn't know how to adapt its business model. We should never be silencing videos because they might infringe on copyright.

Situations like this demonstrate the dangerous unintended consequences of secondary liability. At least with Lessig, you have someone who knows what happened, and knows how to file a counternotice -- though, who knows how long it will take for this situation to be corrected. But for many, many, many other people, they are simply silenced. Silenced because of industry efforts to turn copyright law into something it was never intended to be: a tool to silence the wider audience in favor of a few large companies.

The system is broken. When even the calls to fix the system are silenced by copyright claims, isn't it time that we fixed the system?

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Tags: copyright  video  fair  such  lessig  
 
 

Flickr Desktop Uploadr for Photos
(via - TechStartups.com )
I read it on 11/16/09 at 02:18 PM
Posted on 11/16/09 at 04:11 PM

By Senior Editor Kris Smith (@croncast)

Picture 57If you're a Flickr user and not a Flickr Desktop Uploadr user, you should be. It is the hidden gem of the heavily trafficked site and best friend of frequent uploaders.

The Flickr Uploadr for desktop use have gone through changes over the years. It's reached its current maturity at 3.2.1 after being plagued with upload crashes, double uploads and copy loss for images. This version doesn't suffer likes its predecessors . . . well, not as much.

There still are occasional crashes but the Uploadr handles restarting better and will load up the last batch of photos for upload with their copy intact on restart. I've found this to be a more frequent issue if I am trying to upload photos to Flickr from a throttled internet connection with slow speeds. Cough, Time-Warner Road Runner, cough.

With that said, I've found the Uploadr the easiest way to get batch photos online with titles, descriptions, tags and grouped the way the I want them with privacy settings. Here's a peek for the uninitiated:

Picture 55

With the ability to create groups like this and see them in left hand column I am able to more effectivley tell a story about each image as it relates to one another. To be honest, it is kind of fun to be able to create a narrative about a photo set that can be shared with viewers.

You'll also notice in the Description' box that the copy begins with two characters *^'. Well, as an added bonus of using the Flickr Uploadr to get photos on Flickr, I also use it as a front-end to insert photos on my own blog and to also send links to them on Twitter.

With the use of the magic API, RSS, I have two separate crontab scripts running that read my personal Flickr RSS feed and look for these two characters. The * tells the script to take the title and description and add them as posts to my personal blog. The ^ tells the script to grab the title and URL of the image on Flickr (shorten it), then send it on to Twitter in my personal Twitter account. The special characters are a control mechanism that allow me to filter or choose additional syndication for my photos.

I'm going down a geeky path here and will pull back a bit. The Flickr Desktop Uploadr isnt' something that is brand new or undergone a massive revision lately. What it is to me an many others is a powerful tool built as an add-on to a service to make it more valuable.

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0

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AOL Thinks It Owns All Advertising Domains
(via - TechCrunch )
I read it on 08/19/09 at 12:08 PM
Posted on 08/19/09 at 02:39 PM

AOL, rather than fixating on building business and staying relevant post Time-Warner, is suing search and display platform provider Advertise.com for trademark infringement and unfair competition. Furthermore, the company is also partly responsible for the near-done sale of the domain name Ad.com for a reported $1.4 million falling through, leading to the seller of the domain name subsequently suing the buying party, says DomainNameWire.

But first lawsuits first.

Advertise.com, which was purchased by ABCsearch.com earlier this year and rebranded as such a few months ago, is a variation on AOL-owned Advertising.com, the beleaguered Internet company claims. In legalese, that translates as follows:

Advertise.com recently commenced use of the virtually identical and confusingly similar designation Advertise.com and design in connection with the same and complimentary services as those offered by Plaintiffs under their federally-registered Advertising.com name and marks and their Ad.com name and marks.

Update: looks like Advertise.com sued AOL first (August 17, 2009)

A search of the USPTO database shows that AOL does in fact have three registered trademarks for Advertising.com, but all are design trademarks, which means they stand little chance of exercising trademark rights over something as generic as the domain name advertise.com. Granted, the logo looks vaguely similar, but virtually identical and confusing' it ain't.

Note that AOL doesn't even effectively market Advertising.com as a business unit anymore - although it may soon recommence doing just that - and redirects the domain name to its Platform-A website instead (AOL rebranded it to the name of this whole-owned subsidiary in April last year and now prefers AOL Advertising as the overarching denominator).

So why would anyone confuse Advertise.com for an AOL property? It just doesn't make any sense to try and claim ownership over any domain name with a variation on the word advertising' in it. What's next? Ads.com? Advertisement.com? In the court documents, embedded below, AOL even boasts the fact that Advertise.com has only about 25,000 unique visitors per month, so what's really at stake here?

The second case is even more bizarre: although often used in its communication, Ad.com is apparently not a trademark owned by AOL, although the company has filed an application for it in the past. But that domain name is actually owned by a Marcos Guillen, who recently sold it to Directi and Skenzo for $1.4 million. Well, almost sold it, because the deal fell through after all, according to industry watchers due to the fact that the mark has not yet acquired distinctiveness for any of the applicants - including AOL - following a recent examination. Guillen has now filed a lawsuit against Directi and Skenzo for backing out of its auction purchase of Ad.com, seeking $1.4 million, prejudgment interest, and/or damages according to proof.

Aol

Crunch Network: CrunchBase the free database of technology companies, people, and investors




Tags: aol  name  advertise  advertising  domain  
 
 

Warners at $1 billion mark
(via - Variety.com )
I read it on 07/19/09 at 04:46 PM
Posted on 07/19/09 at 07:16 PM

Business News: Studio breaks personal record in domestic grosses -- Warner Bros. has joined Paramount in hitting the $1 billion mark in domestic grosses this year.



Tags: grosses  domestic  mark  billion  warner  
 
 

The Dirty Backstabbing Mess Called Betamax vs VHS [Format War]
(via - Gizmodo )
I read it on 07/17/09 at 12:42 PM
Posted on 07/17/09 at 04:00 PM

You think you enjoyed Blu-ray vs HD DVD? Memory Stick vs SD? Pshaw! You haven't seen a format war until you've witnessed the betrayal and bloodbath that was Betamax vs VHS.

Sony was supposed to win this. The company made magnetic tape out of like paper and mud back in the 1940s, turned out a "pocketable" transistor radio in the 1950s, and invented the "portable" television by 1960. They had their first video tape recorder by 1963. They weren't the only ones, but they were among the first and best.

The so-called VTR business had a rocky start. The things were hulking bastards, with huge price tags and poor recording capability.

A company called Ampex put out the first "home entertainment" VTR in 1963, only it cost $30,000 in the Neiman Marcus Christmas catalog, and was nicknamed Grant's Tomb because the product manager who thought it up was going to be shoved inside by the company's accountants. (He would have fit, too, the thing was so big.) Sony comes along in the middle of that decade and puts out a $1,200 "portable" VTR that came with a leatherette case and its own TV. It still weighed 65 pounds.

The worst part about these 1960s VTRs was that they were basically reel-to-reelyou had to thread your own 1-inch videotape through spools and stuff, and by the end of the decade, a one-hour spool of tape was like 8 inches in diameter. Can you imagine your TiVo needing 180 spools of videotape to get the job done?

As Sony toiled on the videotape problem, Matsushitawho we now call Panasonicand its independent subsidiary JVC weren't really standing out in the VTR business. Let's say this: Nobody would have guessed they'd be able to overthrow Sony and kick mecha ass within the decade.

However, these guys were among the biggest manufacturers, dwarfing Sony many times over. Matsushita, known for efficiency, not innovation, tended to focus on big boring appliancesTVs, refrigerators, air conditionerswith a smaller team, branded Technics, devoted to dominating the hi-fi realm. JVC was all about TVs and audio gear, and had decent video know-how.

It was Sony who solved the reel-to-reel problem withta daaa!a video cassette. It was called U-Matic, and at 3/4" thick, it was smaller than the earlier formats, but still a bit of a chunkster. Since video was a bit of a Wild West, Sony felt like it needed partners to firmly establish a format, and to avoid a format war. It asked Matsushita and JVC, who said "yes" as long as Sony adopted some changes. They key here: The partnership included a deal where everybody shared all the patents. Turns out, probably not the smartest move by Sony.

Sony was right to form a posse, though. Every single electronics maker in Japan, Europe and America was trying to build a video recorder. Some American firms were obsessed with lasers (though ironically it would later be the Dutch and Japanese firms who actually put lasers to good use); other American firms were jazzed about microfilm...for video. None of them had success. Before we get on with the story, here's a list of totally failed video players and recorders:

Matsushita VX-100 and VX-2000
Matsushita AutoVision
Toshiba/Sanyo V-Cord
Ampex InstaVision
MCA DiscoVision/Magnavox Magnavision
CBS Electronic Video Recording
RCA HoloTape
Sears/Cartridge Television Cartrivision

See what I mean? A friggin' mess it was.

Part of the problem was the message. Nobody knew what the hell this was all about. Sony wasn't just a pioneer in the technology, they thought hard about how to explain why you totally desperately want something bad. At one point, Sony hired Bela Lugosi to dress up one last time as Dracula, and explain that, since he worked nights, he needed to catch up on primetime shows when he got home. Get it? Vampiresthey're out killing people when Barney Miller is playing! It was a good bit, and there were a lot more like it. Little by little, the public caught on to what VCRs were for.

Anyway, U-Matic, launched in 1971, wasn't a runaway success, either, but it was the bestselling video recorder to date, and the first successful VCR. In the realm of pro video, it was hot. Sony cashed in by steering from the home market to the businesses but JVC, who kept trying to pitch it for home use, got hosed. Like villains in some Shakespearean play, Matsushita and JVC kinda lurked in the background, planning for the next round when they might one-up that little charmer, Sony. The name of their plot? Video Home System, which you and I call VHS.

Sony was naive. Like, crazy naive. In 1974, it asked Matsushita and JVC to partner up again, this time on a fully baked format called Betamax. They weren't asking for intellectual collaboration, just a deal to make and sell the things. It was a nice system, with really small tapes, but the problem was, the tapes only recorded for an hour. Sony was like, "That's not a problem," but everyone else was like, "Yes, it is." The would-be partners dragged their heels suspiciously, not signing any deals. Sony kinda thought that was weird, but went ahead and launched the one-hour Betamax box in 1975.

Big mistake.

Not long after Sony went into wide release with the one-hour Betamax, JVC pulled a two-hour VHS out of its butt. And in time for Christmas 1976 no less. Sony had another flash of naivete when it pressed on with the one-hour system for a while, even though it had a two-hour system in the works. In that gap, JVC and its big poppa Matsushita scored sales and recognition.

Some people say Betamax was "better" but that depends on many factors, and could very well be an urban myth. The technologies were so close Sony's own chairman called VHS a copy of Betamax. What may have looked good in one system with certain settings might not look as good on another with different settings. And by some accounts, Betamax's more moving parts meant they were more expensive to manufacture and more costly to maintain and repair. It's not an open-and-shut case of quantity vs. quality. Either way you look at it, there are compromises.

By this point, it wasn't just some anything-goes contest with a million formats. By 1976, all those above had died or were dying. In Japan, there were just two choices. The Japanese government told everyone to sort it out. Hitachi, Mitsubishi and Sharp joined Team VHS, but didn't really move forward.

In February 1977, Sony grabbed Toshiba and Sanyo, and then signed the American powerhouse brand Zenith up for an order of Sony-made Betamaxes with the Zenith name on them. Was it going to happen for Betamax after all? Seemed like they'd finally drawn at least a few good cards from the deck.

Sony might not have been totally screwed at that moment, but there were two American powerhouses, and the other one, RCA, was undecided. Ironically, the fate of the Japanese VCR industry relied on how well it could handle the most American of sports: Football. In other words, now that both players could manage two hours of recording time, what RCA wanted was enough recording time to capture a gamethree hours would do.

What transpired next is unclear. Even though, at the time, both technologies were limited to two-hour capacity, Matsushita pledged to make RCA tape machines that could record for four hours.

Was this a lie? Was it vaporware? Whatever the deal, JVC engineers pulled off a four-hour capacity six weeks later, and RCA agreed to buy 55,000 machines that year, and up to a million more in the next three years. Better yet, RCA's SelectaVision VHS decks would cost $300 less than the two-hour Betamaxes, at $1000 a pop.

Although Betamax hung on for a bit longer, that, boys and girls, was the end of the competition. In 1979, Sony market share tilted downward, and by 1980, the jig was up for those poor bastards.

Note: I recognize that there are other issues that might have come into play here, including Universal's lawsuit of Sony, which lead to today's Supreme Court definition of fair-use copyright law, and the fact that some studios, including Warner, began squeezing movies onto videotape early, with varying degrees of success. However, I contend that none of that changed the outcomethe war above was fought between Sony and Matsushita, and Matsushita won.

SOURCES:
Fast Forward: Hollywood, The Japanese, and the VCR Wars - James Lardner (Special thanks to you, Jim, for chatting me through some of this)
Sony - John Nathan
The History of Television - Albert Abramson
Sony History - Sony Global Website
Made in Japan - Akio Morita
Quest for Prosperity - Konosuke Matsushita
[PDF] Case Report on Betamax - Verardi et al
"Why VHS was better than Betamax" - Guardian UK - Jack Schofield

Gizmodo '79 is a week-long celebration of gadgets and geekdom 30 years ago, as the analog age gave way to the digital, and most of our favorite toys were just being born.






Tags: sony  betamax  matsushita  video  hour  
 
 

Report: Time Inc. Axing 600 Amid Major Reorg
(via - Portfolio.com: Mixed Media )
I read it on 10/28/08 at 09:34 PM
Posted on 10/29/08 at 12:27 AM

D-Day has arrived at Time Inc. The Time Warner-owned publisher is set to announce the elimination of 600 jobs -- around 6 percent of its workforce -- and a major reorientation in the way it does business, reports The New York Times.

Shuffling the deck is nothing new at Time Inc., of course; indeed, it seems to be management's answer for everything from sagging ad revenues to the common cold. But this reorganization sounds like a pretty big one, involving a "more centralized management structure" and plans to share resources between titles.

Writes Tim Arango, "Power within Time Inc., which through many mergers over the decades became the modern Time Warner, has long been diffuse, with individual publishers and editors essentially running their own shows. That distinct culture is coming to an end."

Related Links
Time Piece: Is Time Inc. Ready for a Spin-Out?
Four Reasons Why Time Warner Might Not Spin Off Time Inc
Mag Publishers Resist Rapid-Report Regime




Tags: inc  warner  publishers  management  report  
 
 

Yahoo, AOL still dating awkwardly [Acquisitions]
(via - Valleywag )
I read it on 10/28/08 at 01:24 PM
Posted on 10/28/08 at 05:40 PM

This is not just unloading AOL for us, a source close to Time Warner told Kara Swisher. It is also an important strategic move for our future to get this right. I love the way anonymous sources lie so convincingly. The truth, Swisher blogs, is both simpler and more boring: Yahoo and AOL don't really like each other. Neither company holds much attraction for the other. Important strategic move means an arranged marriage, forced on both sides by dwindling market value. Which reminds me: We should plot the number of Google engineers whose pending marriages have been "temporarily rescheduled for 2009."





Tags: aol  move  yahoo  swisher  strategic  

 
 

Will Joss Whedon Be The Mad Scientist Who Kills TV?
(via - 1 Tim Street )
I read it on 07/13/08 at 09:16 AM
Posted on 07/12/08 at 05:37 AM


Teaser from Dr. Horrible's Sing-Along Blog on Vimeo.

Joss Whedon has made a lot of hours of television. Joss Whedon has made a lot of money from making a lot of hours of television. Now Joss Whedon has the potential to be the guy, the person, the Mad Scientist Who Kills Television. Or at least turn an online video into a household name.

In case you don't know and/or you are too lazy to Google Joss Whedon, he's the guy who brought us the TV shows Buffy The Vampire Slayer, Angel and Firefly and he happen to write a few small motion pictures like Toy Story and Alien: Resurrection. Now Joss is launching a web series Dr. Horrible's Sing-Along Blog. Will it be a hit? I sure hope so.

For years all of us independent content creators have been doing our thing trying to make a go of the online video game and a few of us have made a little bit of money but none of us have become household names. None of our shows are as popular as Buffy The Vampire Slayer.

Now, I like to think of myself as the guy who saved Buffy The Vampire Slayer. I was a young writer/producer/director new to Hollywood and Warner Bros. ask me to work on an "Upfront" presentation (a trailer for a TV Show that networks show to advertisers to get advertising dollars in advance) for a new show that they were thinking of putting on The WB. I watched the pilot episode and except for the fat girl that played Willow I loved it. I loved the fact that it had the TastersChoice Coffee guy in it. I loved the fact that it had funny hot sexy girls in it. I loved everything about it especially the humor in it, like when just after bumping into Buffy and spilling her stuff, Zander picks something up off the ground and mutters to Buffy, "Hey, You forgot your stake." and then holds up a wooded stake that Buffy dropped. Because I loved the show so much I worked really hard on the presentation coming up with a trailer that used dialog from the pilot episode itself to explain what the series would be about instead of using a voice over narration to explain where the series would go after the pilot episode.

I turned in my cut to the guys at The WB and they loved it but they didn't like the pilot of Buffy the Vampire Slayer. They didn't get it. They thought it was cheesy and they made me change the name of the show in the presentation to "Slayer" because they thought it was tougher. I begged them not to do it. But they did it anyway and I heard that when they showed it to Joss Whedon and he flipped out and hated it.

I told them how cool the show was but they said they weren't going to put it on the schedule that Fall and they didn't. They told me they really liked the trailer I had created and if it tested well they might put "Slayer" on as a mid-season replacement in the Spring. I was depressed. I thought they just didn't get it but come Spring Buffy the Vampire Slayer made it on air not "Slayer."

Joss Whedon fought with The WB to keep the name of the show from becoming "Slayer" and of course he was the one that really saved Buffy The Vampire Slayer but I'll tell the kids at UCLA, USC and any other schools I get to speak at that I was the guy who saved Buffy The Vampire Slayer just cause it makes me feel good.

Oh, I almost forgot. I think I once got a call from Joss Whedon but he didn't say who he was when he called. After the pilot of Buffy The Vampire Slayer aired and did really well I sent a congratulation package to Joss Whedon. It had a note that read, "Hey You Forget Your Steak." and instead of it being a "Stake" I sent a "Steak." a raw steak.

Shortly after sending it my phone rang - and no one ever called me - A guy asked me a lot of questions about what my company did and then said, "Thanks" without identifying himself and hung up. In hindsight it was a pretty stupid idea to send a raw blood steak to a guy who didn't know me but at the time it just seemed pretty clever.

From the looks of the trailer of Dr. Horrible's Sing-Along Blog (with a voice over narration that sounds a lot like the guy who called me on the phone many years ago) looks pretty clever but I think some people are going to think it looks cheesy and they just won't get it. I do however think that there will be a lot of people who will love Dr. Horrible's Sing-Along Blog and based on the story I've just shared with you and the fact the Joss Whedon doesn't need to get any TV Network's approval to launch Dr. Horrible's Sing-Along Blog I think Joss Whedon just may be the Mad Scientist to kill Televison or at least to make an online video series become a household word.

Lower your head, watch your step, and enjoy the rest of your day on the Internet or at least have fun checking out the best new videos on the 3G iPhone that you can find. - and let know what they are.



Tags: joss  slayer  whedon  buffy  vampire  
 
 

AOL's Blast From the Past
(via - Portfolio.com: News and Markets )
I read it on 05/20/08 at 07:24 AM
Posted on 05/20/08 at 10:30 AM

Just how creative were AOL's attempts to cajole customers to buy $1 billion in advertising they neither wanted nor needed?

So creative, according to federal officials, that even Scott Sullivan, the former chief financial officer of WorldCom now serving out a five-year prison sentence for his role in the biggest accounting fraud in history, saw a sham.

"This has turned into a money changing scheme and it can't continue," reads a Nov. 2001 e-mail from WorldCom cited in a complaint filed in federal district court in Manhattan on Monday.

The e-mail was written by Sullivan and sent to three AOL executives, said Scott Friestad, associate director of the Securities and Exchange Commission's enforcement division.

It has been six years since securities regulators began investigating AOL's attempts to parlay the creativity of the advertising industry to the rules of accounting.

Monday's lawsuit, expected to be the final chapter in a story that began during the dot-com bubble, accuses eight former AOL executives accused of committing fraud.

AOL Time Warner's former chief financial officer, John Kelley, will contest the allegations, along with Joseph Ripp, the former C.F.O. of the AOL division and two others.

Kelly "flatly denies" the government's claims and questions the "significant length of time that has passed since the events in question," said his lawyer, Jonathan R. Tuttle.

Four others, including AOL's former controller, James MacGuidwin, agreed to settle without admitting or denying wrongdoing, though they will pay millions of dollars in penalties and face other sanctions.

AOL founder Steven Case and Bob Pittman, the former No. 2 of AOL Time Warner, are apparently safe. The S.E.C. has no plans to bring further complaints against the company, now known as Time Warner, or any former or current employees, Friestad said.

The commission had extracted a $300 million settlement from Time Warner in 2005.

The nexus of WorldCom and AOL was a new revelation from Monday's lawsuit.

In the arrangement that prompted a rebuke from Scott Sullivan, WorldCom twice agreed to waive penalties that AOL owed on an unrelated contract. AOL employees, seizing an opportunity to generate revenue, pushed WorldCom to let it pay the penalties and then return the money by buying advertising that it didn't want, officials allege.

"If you want $17 million in advertising, then pay $17 million instead of the credit and we will place ads, even though we don't need them," a clearly frustrated Sullivan wrote, according to the S.E.C. "If you want $25 million in advertising, then pay $17 million instead of the credit, pay another $8 million and we will place the ads, even though we don't need them. etc, etc..."

Friestad described the complaint as outlining "one of the most egregious accounting frauds in recent memory."

"The conduct was so outrageous that even Worldcom's C.F.O. Scott Sullivan was troubled by what AOL was doing," Friestad said.

Friestad said the complexity of the case required the S.E.C. to move deliberately on an investigation into events dating back to the period of 2000 to 2002. The S.E.C. will hold fraud perpetrators accountable "even if it takes a while to investigate and examine that conduct because of the complexity of the transactions at issue," said Friestad.

Another S.E.C. official, speaking on condition of anonymity, said it could be "a number of years" before trials begin in the cases of the four former executives who did not settle. That raises the possibility of a 2010 trial in which witnesses will give testimony about events from 10 years earlier.

AOL's sometimes clumsy attempts to generate advertising revenue, a key metric watched by the company's accountants, involved a technique known as roundtripping that was popular in the days of the dot-com bubble but no longer prevalent.

In one example from November 2000, e-mails and instant messages obtained by the government show AOL employees rushing to turn a negotiated discount on telecom services from a supplier, Telefonica, into advertising revenue. Telefonica agreed to buy AOL ads with the money it would have returned as a rebate.

In order to book the revenue before the financial quarter that ended December 31 of that year, AOL created "its own purported ads" for Telefonica that misspelled the company's name as Telephonica and linked to a dead Web page. "No graphics, no links, no nuthin! LOL," an unnamed AOL employee wrote in an instant message. Replies another colleague: "Welcome to the new world of e-commerce."

Friestad, who oversaw the investigation, said the case remains relevant to investors and analysts who rely on performance measurements from outside of closely regulated world of generally accepted accounting principles. To AOL, for instance, it was critical to classify as much as it could as advertising revenue, even though the classification would be irrelevant to its cash flow.

"The metrics sometimes change over time, but the conduct here involved a metric that was important to analysts and investors," he said. "The conduct was fraudulent then and it would be fraudulent if it happened today."

An attorney for Rappaport said the former senior manager was "pleased this matter has been resolved" without restrictions on his ability to be a future corporate officer of a public company. Attorneys for the others named in the suit did not return calls for comment.

A spokeswoman for Time Warner's AOL division said the company no longer employed any of those charged, but had no further comment.Related Links
Time Warner's Pleasant Surprise
The Revolution (May Take a While)
Sarbanes Oxley Scorecard




Tags: aol  said  former  e  advertising  
 
 

Time Warner to Spin Off Time Warner Cable, Reports Mixed Q1 Earnings
(via - Broadcasting & Cable Articles )
I read it on 04/30/08 at 06:02 PM
Posted on 04/30/08 at 08:24 PM

Media conglomerate Time Warner finally committed to spinning off its 84%-owned cable operation, Time Warner Cable, after floating the possibility for several years.


Tags: warner  cable  owned  spinning  operation  
 
 
 
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