business

Google’s data trove tempts the bad guys

From “Fuzzy maths” (The Economist: 11 May 2006):

Slowly, the company is realising that it is so important that it may not be able to control the ramifications of its own actions. “As more and more data builds up in the company’s disk farms,” says Edward Felten, an expert on computer privacy at Princeton University, “the temptation to be evil only increases. Even if the company itself stays non-evil, its data trove will be a massive temptation for others to do evil.”

Google’s data trove tempts the bad guys Read More »

A history of the public notice

From Sasha Issenberg’s “On Notice” (Legal Affairs: July/August 2005):

In the Middle Ages, the Crown designated a half-dozen sites in London where a herald would read proclamations from the king. These announcements first found their way into print in 1665 when the London Gazette, considered the first English-language newspaper (at least as we now understand the term), began publishing. It was the Crown that put out the Gazette, and thus the newspaper was little more than a broadsheet filled with public notices.

In the 1690s, private competition reached the London newsstand. Yet even those newspapers that were not published directly by the government continued to seek its consent and imprimatur. In 1704, across the Atlantic, a newspaper called The Boston Newsletter hit the streets of the Hub; like many early American newspapers, it bore the slogan, “Published by Authority.” Though newspapers had ceased to exist merely for the purpose of publishing government decrees, they continued to run the notices as proof of the papers’ journalistic credibility. “Unlike in our day, it was looked at as an act of authenticity,” says Charles Clark, a professor emeritus of history at the University of New Hampshire who wrote about early American newspapering in a book called The Public Prints.

Sometimes these announcements appeared under the rubric “Proclamations for Royal Government,” Clark explained, but usually papers “just printed the notices in what we would think of as the news columns – even though that distinction is a bit of a stretch for those days. In many instances the notices constituted the news.” (Toward the end of the 18th century, according to Clark, newspapers also began to feature private-sector legal announcements: creditors demanding payment were popular. “The most frequent things,” Clark said, chuckling, “are men putting in notices: ‘My wife is leaving my bed and board. I shall no longer be responsible for her debt.’ “) …

In 1789, among the acts of the first session of the Congress was a directive to the secretary of state to publish all bills, orders, resolutions, and votes in at least three newspapers.

For its efforts at transparency, the fledgling government was rewarded with an increasingly suspicious press. During the 1790s, the Philadelphia-based Gazette of the United States made it clear that government would not be left to speak for itself through notices; the paper placed a correspondent in Congress. “He reported what he saw, not the official words,” Clark said. After the election of George Washington, the colonial press that had cuddled with government gradually became American media that sought to establish distance from it. In addition to soliciting the government for announcements, the press began to cover the government journalistically. …

A history of the public notice Read More »

Bird in Flight, Brancusi, & US Customs law

From Stéphanie Giry’s “An Odd Bird” (Legal Affairs: September/October 2002):

After a weeklong journey from France, crates of sculptures by Constantin Brancusi arrived in New York harbor on the steamship Paris, escorted by the artist Marcel Duchamp. It was October 1926 and the sculptures were to be exhibited in the city at the avant-garde Brummer Gallery. United States Customs officials opened the crates and uncovered 20 mysterious disks, eggs, and flame-like forms of carved wood, polished metal, or smooth marble. One work in particular left them dumbfounded: a thin, 4 1/4-foot-tall piece of shiny yellow bronze with a gently tapering bulge called Bird in Space. It didn’t look like a bird to the officials, so they refused to exempt it from customs duties as a work of art. They imposed the standard tariff for manufactured objects of metal: 40 percent of the sale price, or $240 (about $2,400 in today’s dollars). …

Under pressure, the customs office agreed to reconsider its decision. In the meantime, it released Bird in Space and other sculptures, on bond and under the classification “Kitchen Utensils and Hospital Supplies,” so they could be exhibited at the Brummer Gallery and then at the Arts Club in Chicago.

Both shows were successes, but in February 1927 the federal customs appraiser F.J.H. Kracke confirmed his office’s initial finding that any sculptures Brancusi sold in the United States, like Steichen’s Bird, would be subject to duty. In an interview with the New York Evening Post, Kracke explained his ruling: “Several men, high in the art world were asked to express their opinions for the Government…. One of them told us, ‘If that’s art, hereafter I’m a bricklayer.’ Another said, ‘Dots and dashes are as artistic as Brancusi’s work.’ In general, it was their opinion that Brancusi left too much to the imagination.”

The next month, Steichen filed Brancusi v. United States to appeal customs’ decision. Abstract Art was now on trial. …

Six influential figures testified for Brancusi: Steichen, who was an established photographer; the sculptor Jacob Epstein; Forbes Watson, the editor of the review The Arts; Frank Crowninshield, the editor of Vanity Fair; William Henry Fox, the director of the Brooklyn Museum of Art; and the art critic Henry McBride. The witnesses for the government, the sculptors Robert Aitken and Thomas Jones, now long forgotten, enjoyed great academic reputations at the time. Judge Young was new to the Customs Court. The 75-year-old Waite had been serving on it and its earlier incarnation, the Board of General Appraisers, for 25 years.

Also present in the courtroom as Exhibit 1 was the Bird, which sat on a table, shimmering and soaring toward the ceiling while the lawyers debated whether it was an “original sculpture” or a metal “article or ware not specially provided for” under the 1922 Tariff Act. For the Bird to enter the country duty-free under the act, Steichen’s lawyers had to prove that Brancusi was a professional sculptor; that the Bird was a work of art; that it was original; and that it had no practical purpose.

By 1927 and after four one-man shows in New York, there was little question that the 51-year-old Brancusi was recognized as a professional sculptor – controversial perhaps, but definitely well-known. There was also little question that the Bird had no utility, even though the customs office had released it under the classification “Kitchen Utensil.”

But because Brancusi had shown four other bird sculptures like Steichen’s at the Brummer show, it wasn’t clear whether Steichen’s was the only one of its kind. And it was far from clear whether the Bird could be called art, because it looked like nothing anyone had ever seen before.

During the hearing, Judges Young and Waite placed great emphasis on the Bird’s title. The Tariff Act didn’t require that sculptures be realistic, but under a 1916 Customs Court decision called United States v. Olivotti sculptures qualified as art works only if they were “chisel[ed]” or “carve[d]” “imitations of natural objects,” chiefly the human form representing such objects “in their true proportions.” …

When he was 26, according to legend, Brancusi set out on foot on the 1,200-mile journey to Paris; however he got there, in 1904 he enrolled at the prestigious école des Beaux Arts. The decade that followed was marked for him by poverty, hard work, and eventually a place in the avant-garde community among Duchamp, Ezra Pound, Amedeo Modigliani, and Erik Satie, who would become his friends and transforming influences. At an exhibit in Paris in 1906, Auguste Rodin, then the towering figure in sculpture, spotted one of Brancusi’s pieces and invited him to work in his studio. Brancusi declined because he believed “nothing grows well in the shadow of a big tree.” …

But to Thomas Jones, a professor at Columbia who testified for the customs office, the Bird was “too abstract and a misuse of the form of sculpture.” Robert Aitken, the government’s other witness, said that art should “arouse an unusual emotional reaction” and “[stir] the esthetics, the sense of beauty.” …

Every work [by Brancusi] was unique and made of a different material, with different proportions and a different harmony. Brancusi had carved variations of the Bird out of white, yellow, and black marble and bronze of varying composition, each time coaxing the stone or the metal to reveal something new about the form. As Brancusi explained, all of those pieces were part of the same search: “All my life I’ve been looking for one thing, the essence of flight.” …

The court’s sensibility favored Brancusi. In its decision of November 1928, drafted by Judge Waite, the court held:

The object now under consideration … is beautiful and symmetrical in outline, and while some difficulty might be encountered in associating it with a bird, it is nevertheless pleasing to look at and highly ornamental, and as we hold under the evidence that it is the original production of a professional sculptor and is in fact a piece of sculpture and a work of art according to the authorities above referred to, we sustain the protest and find that it is entitled to free entry.

Judge Waite’s decision was seen as a victory not only for Brancusi but also for avant-garde art, because it dismissed the Olivotti requirement and recognized the importance of a new school that “portray[ed] abstract ideas rather than … imitate natural objects.” …

But the decision’s focus on the decorative qualities of the Bird made the ruling just as perishable as the standard in the 12-year-old one it replaced. And its reliance on the judges’ personal taste made its application perhaps more arbitrary and restrictive. Many of the works that made the renown of Duchamp, the chaperon of the Bird on its trip to New York and one of its staunchest defenders, would not have passed the test, for example. Duchamp’s “ready-made” sculptures of a bottle rack (Bottle Dryer, 1914) and a urinal (Fountain, 1917), objects he borrowed from daily life and, with more than a hint of irony, labeled works of art, would not have satisfied Judge Waite’s taste for the “beautiful,” “symmetrical,” and “ornamental.”

The Brancusi decision may have done away with the requirement that sculptures must be figurative to be art, but it took years for customs law to shed other unreasonable limitations on the free import of artwork. In 1931, tapestries were deemed dutiable because they were made of wool – the material determined the artistic merit. In 1971, the customs court found that six carved door panels destined for a church were dutiable because, as part of the doors, they were utilitarian objects. It wasn’t for 61 years, until the Harmonized Tariff Schedule of 1989, that customs law allowed free entry to works that are both artistic and functional.

Bird in Flight, Brancusi, & US Customs law Read More »

Arnold Rothstein, criminal kingpin

From Daniel A. Nathan’s “The Big Fix” (Legal Affairs: March/April 2004):

THE BLACK SOX SCANDAL was the sports crime of the 20th century. In a complicated and poorly conceived and executed conspiracy, several prominent Chicago White Sox ballplayers teamed up with gamblers to lose the 1919 World Series to the Cincinnati Reds. …

Of those artfully deceitful manipulators, Arnold Rothstein was the most skillful, a criminal kingpin who had his hand in all manner of illicit endeavors. Known as “the Big Bankroll” and “the Great Brain,” Rothstein helped invent organized crime, and his influence survived his death in 1928. …

There is no denying that Rothstein was clever. A former pool shark, Rothstein managed to graduate from being a small-time bookmaker to what one historian describes as an important “intermediary between the underworld and upper world of New York.” He established successful gambling houses in New York City and Saratoga (then, as now, a popular summer resort town for the well-to-do, especially for those who like to play the ponies) and political connections with Tammany Hall. Rothstein, Pietrusza notes, “pretty much invented the floating crap game,” the illicit diversion later made famous by the Broadway musical Guys and Dolls, on his way to becoming “America’s most notorious gambler.” He was a bootlegger, a labor racketeer, a racetrack owner, a real estate magnate, a bail bondsman, a loan shark, a fence, and, according to [David Pietrusza, author of Rothstein: The Life, Times, and Murder of the Criminal Genius Who Fixed the 1919 World Series], the “founder and mastermind of the modern American drug trade.”

Arnold Rothstein, criminal kingpin Read More »

In Britain, you can see footage of you captured by CCTV

From Patrick Keefe’s “Camera Shy” (Legal Affairs: July/August 2003):

In London, a city even more intensively scrutinized by closed-circuit television cameras than New York, citizens can at least retrieve copies of footage taken of them through a provision in Britain’s Data Protection Act. Americans have no such legal recourse. …

In Britain, you can see footage of you captured by CCTV Read More »

Your job? Waiting in line for others.

From Brian Montopoli’s “The Queue Crew: Waiting in line for a living” (Legal Affairs: January/February 2004):

ON CAPITOL HILL, a placeholder is someone paid by the hour to wait in line. When legislative committees hold hearings, they reserve seats for Congressional staffers, for the press, and for the general public. The general-public seats are the only ones available to the so-called influence peddlers, the Washington lawyers and lobbyists whose livelihood depends on their ability to influence legislation. These seats are first come, first served, which is where the placeholders (also called “stand-ins” or “linestanders”) come in. Since most lobbyists and lawyers seeking to rub shoulders with lawmakers don’t have time to wait in line themselves, they pay others to do it for them.

Rather than use an independent contractor, most influence peddlers secure placeholders through one of the two companies that control about 80 percent of the market: Congressional Services Company and the CVK Group, both of which have rosters of on-call placeholders at the ready. Most of the time, placeholders are asked to wait for just a few hours, often arriving around 5 a.m. to wait for hearings scheduled for 10 a.m. If seats are in great demand, however, placeholders can be asked to get in line several days in advance. Congressional Services charges its clients $32 to $40 per hour for each placeholder, and the placeholders themselves make $10 to $15 an hour. …

For the sake of logistics and appearances, the lines usually form outdoors and stay there until a few hours before a hearing. …

Today, however, most placeholders are not nimble students out to earn a little spending money but older men and women trying to make ends meet. Jim Keegan is one of the “Van Gogh veterans,” a group of placeholders discovered by Congressional Services in 1998 when they were standing in line to get coveted free tickets to the Van Gogh exhibit at the National Gallery of Art. …

Now he said he has time to pursue his interests and get paid. “I’ll probably make $2,000 to $3,000 in a good month,” he said. “That’s more than I made at my old job.”

There is a collegial atmosphere among the placeholders – if you leave to go get something to eat, you aren’t going to lose your spot – but simple tasks like going to the bathroom present challenges. During the day, placeholders can go into the Rayburn Building, but after hours they have to make their way over to the public bathrooms at Union Station. Getting sleep is also a problem. Since the lines form on public sidewalks, placeholders are technically not allowed to sit down, and though the Capitol Hill police often ignore them, there are evenings when an overzealous officer will repeatedly wake them up and tell them to stand. …

Once, a group upset over banking regulations brought busloads of protesters to a hearing, only to discover that they wouldn’t be able to get in, thanks to the placeholders. A scuffle ensued, but the placeholders held their ground.

In general, however, most staffers and politicians don’t even notice the placeholders they pass on their way to work. …

Since hearings can be rescheduled or closed to the public at the last minute, the placeholding services insist on getting paid regardless of whether their clients succeed in getting in. Keegan and Herzog’s long wait, for example, ended before they could pass along their spots to their clients: The housing hearing was cancelled because of partisan infighting, and after two days and 20 hours of waiting, the placeholders were sent home on Tuesday at 6:30 p.m.

The next morning, however, after showers and a change of clothes, many of them were back, this time to wait for a healthcare hearing before the Commerce Committee. When I arrived at the Rayburn Building at 9 a.m., over 70 people were waiting to get into the hearing, and by 10, when it was scheduled to start, there were more than 200. The line began around the corner from the hearing room and snaked past elevator banks and Congressional offices. At the front were mostly placeholders, among them a bored-looking young man with red sneakers and a hat worn sideways and a woman in her late 30s wearing a frayed sweatshirt that read “OJ SIMPSON: JUICE ON THE LOOSE.” …

Thirty minutes before the hearing began, the clients started showing up. The placeholders were identified by placards or by assistant managers who worked the line. A bald white man in his 40s with a yellow tie and an expensive suit took his spot and thanked his placeholder. (Congressional rules prohibit tipping.)

Your job? Waiting in line for others. Read More »

The tyranny of HOAs

From Ross Guberman’s “Home Is Where the Heart Is” (Legal Affairs: November/December 2004):

ABOUT 50 MILLION AMERICANS BELONG TO HOMEOWNER ASSOCIATIONS, also known as HOAs or common-interest developments, which are composed of single-family homes, condominiums, or co-ops. Four out of five new homes, ranging from starter homes to high-rise apartments to gated mansions, are in one of the nation’s 250,000 HOAs. However they look or whomever they cater to, HOAs impose the same obligations: If you want to buy a property in an HOA development, you must join the HOA, allow a board you help elect to manage shared grounds and other public spaces, pay regular dues and any “special assessments” for upkeep or other costs, and obey a host of quality-of-life rules, even if they’re added after you move in.

In return, the HOA keeps the welcome sign painted, the sidewalk cracks filled, and the flower beds fresh. It may also provide streets, parks, playgrounds, security, snow removal, and utilities that were once the province of local government. But the HOA does more than beautify the neighborhood and preserve property values. It is often the sole driving force behind the Halloween parades and holiday parties that are increasingly rare in an age of bowling alone.

Although structured as nonprofit corporations, HOAs operate as private governments. An HOA can impose fines on those who flout its quality-of-life policies, just as a municipality can penalize those who violate its zoning, antismoking, or noise-control laws. An HOA also levies dues and assessments that are as obligatory as taxes and sometimes less predictable. In exerting these quasi-political powers, HOAs represent one of the most significant privatizations of local government functions in history. …

About half the states allow “non-judicial foreclosures” if owners lapse on their dues. Typically, the HOA’s collection attorney places a lien on the property and announces its new legal status in a local newspaper. The home is then auctioned. Homeowners get none of the due-process protections they could use to ward off other creditors—no right to a hearing and no right to confront their HOA board.

Even in states that require court approval for an HOA foreclosure, the HOA nearly always wins. Under current law, any unpaid dues, no matter how small, can be grounds for foreclosure, particularly once the amount of the delinquency is swelled with interest and fines.

… According to a 2001 study of foreclosures in California by Sentinel Fair Housing, a homeowner advocacy group, when HOAs foreclose, the typical homeowner is $2,557 in arrears. When banks or municipal governments foreclose, by contrast, the typical homeowner owes $190,000 in delinquent payments or back taxes.

The tyranny of HOAs Read More »

The 80/20 rule

From F. John Reh’s “How the 80/20 rule can help you be more effective” (About.com):

In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. In the late 1940s, Dr. Joseph M. Juran inaccurately attributed the 80/20 Rule to Pareto, calling it Pareto’s Principle. …

Quality Management pioneer, Dr. Joseph Juran, working in the US in the 1930s and 40s recognized a universal principle he called the “vital few and trivial many” and reduced it to writing. …

As a result, Dr. Juran’s observation of the “vital few and trivial many”, the principle that 20 percent of something always are responsible for 80 percent of the results, became known as Pareto’s Principle or the 80/20 Rule. …

The 80/20 Rule means that in anything a few (20 percent) are vital and many(80 percent) are trivial. In Pareto’s case it meant 20 percent of the people owned 80 percent of the wealth. In Juran’s initial work he identified 20 percent of the defects causing 80 percent of the problems. Project Managers know that 20 percent of the work (the first 10 percent and the last 10 percent) consume 80 percent of your time and resources. You can apply the 80/20 Rule to almost anything, from the science of management to the physical world.

You know 20 percent of you stock takes up 80 percent of your warehouse space and that 80 percent of your stock comes from 20 percent of your suppliers. Also 80 percent of your sales will come from 20 percent of your sales staff. 20 percent of your staff will cause 80 percent of your problems, but another 20 percent of your staff will provide 80 percent of your production. It works both ways.

The value of the Pareto Principle for a manager is that it reminds you to focus on the 20 percent that matters. Of the things you do during your day, only 20 percent really matter. Those 20 percent produce 80 percent of your results.

The 80/20 rule Read More »

Modern mercenaries

From Rebecca Ulam Weiner’s “Sheep in Wolves’ Clothing” (Legal Affairs: January/February 2006):

YOU WON’T FIND THE WORD “MERCENARY” on the homepage of the International Peace Operations Association, the trade group for the private military industry. While many of the IPOA’s member companies are staffed by elite former soldiers of the United States military who now make a living hiring themselves out, the so-called “M word” isn’t in the IPOA’s corporate vocabulary. Members are known as private military companies (often called PMCs) or military service providers, who specialize in “private peace operations.” …

In recent years, private contractors have increasingly taken on important military functions, operating in some 50 countries and earning an estimated $100 billion in annual revenue. They provide security to civilian aid workers, other contractors, and even military forces. They train local armies for combat, develop future American soldiers (the firm MPRI helps run ROTC), and interrogate prisoners. At times, they’ve engaged in combat. During the invasion and occupation of Iraq, the U.S. has relied heavily on their support – private contractors make up a workforce of about 20,000, double the British troop presence. …

During the Iraq war, contractors have run the computers that control Predator drones, operated guided missile systems on naval ships, and maintained aerial surveillance and communications systems. In the Persian Gulf war of 1991, the ratio of soldiers to contractors was 50 to 1. In the current Iraqi conflict, it is 10 to 1 and falling.

This proliferation has worried many – in the academy, Congress, the media, and, increasingly, the military – because contractors operate outside the military chain of command and most legal jurisdictions. PMCs have no clear place under the framework of the Geneva Conventions – they aren’t noncombatants, because they carry weapons, but they aren’t lawful combatants, because they don’t wear uniforms. Nor do they fit the anachronistic definitions of mercenaries found in international treaties and resolutions, because those definitions generally require engagement in direct combat.

Soldiers are subject to rules of engagement and can be court-martialed for breaking the law. Contractors are governed most directly by the terms of their contracts – their extraterritorial activities and corporate status make them virtually immune from federal law. …

Worse, critics argue, because the military has no direct control over its contractors, it won’t accept responsibility for their actions. And PMCs allow the Pentagon to evade accountability to Congress, because they circumvent caps on the number of troops approved for deployment and their casualties aren’t counted.

Modern mercenaries Read More »

When newspapers began to cover trials

From Caleb Crain’s “In Search Of Lost Crime” (Legal Affairs: July/August 2002):

In American cities in the 1830s, 1- and 2-cent newspapers for the working class abruptly challenged 6-cent newspapers published for merchants and political parties. As Patricia Cline Cohen explains in The Murder of Helen Jewett, an account of the 1836 killing of a New York City prostitute, the penny papers transformed the reporting of murder trials. To satisfy their unsqueamish readers, editors for the first time actively investigated crimes. James Gordon Bennett of The New York Herald pioneered by visiting Jewett’s brothel and tracking down witnesses who had not yet found their way to the police station or the courtroom. While the Herald was running the Jewett story on its front page, circulation tripled.

For a sensational trial, the penny papers sent reporters to the courtroom every day. During the trial they published daily installments, which they collected and issued as a pamphlet once it was over. The trial pamphlet blossomed. The most vivid and novelistic pamphlets are of trials that took place between 1830 and 1875: the trial of Richard P. Robinson for the murder of Helen Jewett, the court-martial of Alexander Slidell Mackenzie for his role in the so-called Somers mutiny (1843), the trial of the Harvard professor John Webster for the murder of a Harvard benefactor named George Parkman (1849), and the trial of the Lincoln assassination conspirators (1865), among others.

When newspapers began to cover trials Read More »

Success of The Shawshank Redemption

From John Swansburg’s “The Shawshank Reputation” (Legal Affairs: March/April 2004):

Yet even King didn’t think [The Shawshank Redemption] stood a chance at the box office-and he was right. Though the movie got good reviews, and seven Oscar nominations, Shawshank in its original release grossed only about half of the $35 million it cost to make.

The movie came back from the dead on video. It was the top rental of 1995, and its popularity has not much abated since. The new Zagat film guide, for instance, rated it higher than Annie Hall and a little picture called Citizen Kane. The movie is currently ranked second on the Internet Movie Database’s Top 250 movies poll, behind only The Godfather.

Success of The Shawshank Redemption Read More »

The history of the Poison Pill

From Len Costa “The Perfect Pill” (Legal Affairs: March/April 2005):

THE MODERN HISTORY OF MERGERS AND ACQUISITIONS divides neatly into two eras marked by a landmark ruling of the Delaware Supreme Court in 1985. Before then, financiers like T. Boone Pickens and Carl Icahn regularly struck terror in the hearts of corporate boards. If these dealmakers wanted to take over a company in a hostile maneuver, break it into pieces, and then spin those pieces off for a profit, it was difficult to stop them. But after a decision by the Delaware court, directors regained control of their companies’ destinies.

The directors’ trump card is a controversial innovation technically called a preferred share purchase rights plan but nicknamed the “poison pill.” Its legality was affirmed unequivocally for the first time in the Delaware ruling of Moran v. Household International. By the unanimous vote of a three-judge panel, the court held that a company could threaten to flood the market with newly issued shares if a hostile suitor started buying up lots of its stock, thus diluting the suitor’s existing holdings and rendering the acquisition prohibitively expensive. …

Still, both sides agree that the poison pill is an ingenious creation. “As a matter of lawyering, it’s absolutely brilliant,” said Stanford University law professor Ronald Gilson, a longstanding critic who nonetheless considers the poison pill to be the most significant piece of corporate legal artistry in the 20th century. …

If a hostile bidder acquires more than a preset share of the target company’s stock, typically 10 to 15 percent, all shareholders-except, crucially, the hostile bidder-can exercise a right to purchase additional stock at a 50 percent discount, thus massively diluting the suitor’s equity stake in the takeover target.

The history of the Poison Pill Read More »

Failure every 30 years produces better design

From The New York Times‘ “Form Follows Function. Now Go Out and Cut the Grass.“:

Failure, [Henry] Petroski shows, works. Or rather, engineers only learn from things that fail: bridges that collapse, software that crashes, spacecraft that explode. Everything that is designed fails, and everything that fails leads to better design. Next time at least that mistake won’t be made: Aleve won’t be packed in child-proof bottles so difficult to open that they stymie the arthritic patients seeking the pills inside; narrow suspension bridges won’t be built without “stay cables” like the ill-fated Tacoma Narrows Bridge, which was twisted to its destruction by strong winds in 1940.

Successes have fewer lessons to teach. This is one reason, Mr. Petroski points out, that there has been a major bridge disaster every 30 years. Gradually the techniques and knowledge of one generation become taken for granted; premises are no longer scrutinized. So they are re-applied in ambitious projects by creators who no longer recognize these hidden flaws and assumptions.

Mr. Petroski suggests that 30 years – an implicit marker of generational time – is the period between disasters in many specialized human enterprises, the period between, say, the beginning of manned space travel and the Challenger disaster, or the beginnings of nuclear energy and the 1979 accident at Three Mile Island. …

Mr. Petroski cites an epigram of Epictetus: “Everything has two handles – by one of which it ought to be carried and by the other not.”

Failure every 30 years produces better design Read More »

Even worse spam is coming

From Spam Daily News’s “Spam zombies from outer space“:

Spammers could soon use zombie computers in a totally new way. Infected computers could run programs that spy into a person’s email, mine it for information, and generate realistic-looking replies.

John Aycock, an assistant professor of computer science at the University of Calgary, and his student Nathan Friess conducted new research that shows it is possible to create a new type of spam that would likely bypass even the best spam filters and trick experienced computer users who would normally delete suspicious email messages.

There are two key reasons why spam is suspicious to anti-spam filters and human targets alike. First, it often comes from an unrecognized source. Second, it doesn’t look right.

The evolution of spam zombies will change this. These new zombies will mine corpora of email they find on infected machines, using this data to automatically forge and send improved, convincing spam to others.

The next generation of spam could be sent from your friends’ and colleagues’ email addresses – and even mimic patterns that mark their messages as their own (such as common abbreviations, misspellings, capitalization, and personal signatures) – making you more likely to click on a Web link or open an attachment.

What features can be easily extracted from an email corpus? There are four categories:

1. Email addresses. The victim’s email address and any other email aliases they have can be extracted, as can the email addresses of people with whom the victim corresponds.

2. Information related to the victim’s email program and its configuration. For example, the User-Agent, the message encoding as text and/or HTML, automatically-appended signature file, the quoting style used for replies and forwarded messages, etc.

3. Vocabulary. The normal vocabulary used by the victim and the people with whom they correspond.

4. Email style.

  • Line length, as some people never break lines;
  • Capitalization, or lack thereof;
  • Manually-added signatures, often the victim’s name;
  • Abbreviations, e.g., “u” for “you”;
  • Misspellings and typos;
  • Inappropriate synonyms, e.g., “there” instead of “their”;
  • Replying above or below quoted text in replies.

Even worse spam is coming Read More »

A short explanation of moral rights in IP

From Betsy Rosenblatt’s “Moral Rights Basics“:

The term “moral rights” is a translation of the French term “droit moral,” and refers … to the ability of authors to control the eventual fate of their works. An author is said to have the “moral right” to control her work. … Moral rights protect the personal and reputational, rather than purely monetary, value of a work to its creator.

The scope of a creator’s moral rights is unclear, and differs with cultural conceptions of authorship and ownership, but may include the creator’s right to receive or decline credit for her work, to prevent her work from being altered without her permission, to control who owns the work, to dictate whether and in what way the work is displayed, and/or to receive resale royalties. Under American Law, moral rights receive protection through judicial interpretation of several copyright, trademark, privacy, and defamation statues, and through 17 U.S.C. §106A, known as the Visual Artists Rights Act of 1990 (VARA). VARA applies exclusively to visual art. In Europe and elsewhere, moral rights are more broadly protected by ordinary copyright law.

In the United States, the term “moral rights” typically refers to the right of an author to prevent revision, alteration, or distortion of her work, regardless of who owns the work. Moral rights as outlined in VARA also allow an author of a visual work to avoid being associated with works that are not entirely her own, and to prevent the defacement of her works. …

Under VARA, moral rights automatically vest in the author of a “work of visual art.” For the purposes of VARA, visual art includes paintings, drawings, prints, sculptures, and photographs, existing in a single copy or a limited edition of 200 signed and numbered copies or fewer. In order to be protected, a photograph must have been taken for exhibition purposes only. VARA only protects works of “recognized stature;” posters, maps, globes, motion pictures, electronic publications, and applied art are among the categories of visual works explicitly excluded from VARA protection. …

Moral rights are not transferrable, and end only with the life of the author. Even if the author has conveyed away a work or her copyright in it, she retains the moral rghts to the work under VARA. Authors may, however, waive their moral rights if do so in writing.

What constitutes infringement of moral rights?

VARA grants two rights to authors of visual works: the right of attribution, and the right of integrity. The right of attribution allows an author to prevent misattribution of a work, and to require that the authorship of the work not be disclosed (i.e. remain anonymous). The right of integrity bars intentional distortion, mutilation, or other modification of a work if that distortion is likely to harm the author’s reputation, and prevents the destruction of any work of recognized stature.

A short explanation of moral rights in IP Read More »

Paul Graham’s lessons for startups

From Paul Graham’s “The Hardest Lessons for Startups to Learn“:

1. Release Early.

The thing I probably repeat most is this recipe for a startup: get a version 1 out fast, then improve it based on users’ reactions.

By “release early” I don’t mean you should release something full of bugs, but that you should release something minimal. Users hate bugs, but they don’t seem to mind a minimal version 1, if there’s more coming soon. …

I’ve seen a lot of startups die because they were too slow to release stuff, and none because they were too quick. …

Even if you had no users, it would still be important to release quickly, because for a startup the initial release acts as a shakedown cruise. If anything major is broken– if the idea’s no good, for example, or the founders hate one another– the stress of getting that first version out will expose it. And if you have such problems you want to find them early.

Perhaps the most important reason to release early, though, is that it makes you work harder. When you’re working on something that isn’t released, problems are intriguing. In something that’s out there, problems are alarming. There is a lot more urgency once you release. And I think that’s precisely why people put it off. They know they’ll have to work a lot harder once they do.

2. Keep Pumping Out Features.

Of course, “release early” has a second component, without which it would be bad advice. If you’re going to start with something that doesn’t do much, you better improve it fast. …

By “feature” I mean one unit of hacking — one quantum of making users’ lives better.

As with exercise, improvements beget improvements. … You should make your system better at least in some small way every day or two.

… Users love a site that’s constantly improving. In fact, users expect a site to improve. …

They’ll like you even better when you improve in response to their comments, because customers are used to companies ignoring them. If you’re the rare exception — a company that actually listens — you’ll generate fanatical loyalty. You won’t need to advertise, because your users will do it for you. …

If your product seems finished, there are two possible explanations: (a) it is finished, or (b) you lack imagination. Experience suggests (b) is a thousand times more likely.

3. Make Users Happy.

Improving constantly is an instance of a more general rule: make users happy. One thing all startups have in common is that they can’t force anyone to do anything. They can’t force anyone to use their software, and they can’t force anyone to do deals with them. A startup has to sing for its supper. That’s why the successful ones make great things. They have to, or die.

When you’re running a startup you feel like a little bit of debris blown about by powerful winds. The most powerful wind is users. They can either catch you and loft you up into the sky, as they did with Google, or leave you flat on the pavement, as they do with most startups. Users are a fickle wind, but more powerful than any other. If they take you up, no competitor can keep you down. …

The median visitor will arrive with their finger poised on the Back button. …

There are two things you have to do to make people pause. The most important is to explain, as concisely as possible, what the hell your site is about. … A startup should be able to explain in one or two sentences exactly what it does. … You probably shouldn’t even start a company to do something that can’t be described compellingly in one or two sentences.

The other thing I repeat is to give people everything you’ve got, right away. If you have something impressive, try to put it on the front page, because that’s the only one most visitors will see. Though indeed there’s a paradox here: the more you push the good stuff toward the front, the more likely visitors are to explore further. …

The industry term here is “conversion.” The job of your site is to convert casual visitors into users …

4. Fear the Right Things.

Another thing I find myself saying a lot is “don’t worry.” Actually, it’s more often “don’t worry about this; worry about that instead.” Startups are right to be paranoid, but they sometimes fear the wrong things. …

What you should fear, as a startup, is not the established players, but other startups you don’t know exist yet. They’re way more dangerous than Google because, like you, they’re cornered animals.

Looking just at existing competitors can give you a false sense of security. You should compete against what someone else could be doing, not just what you can see people doing. A corollary is that you shouldn’t relax just because you have no visible competitors yet. No matter what your idea, there’s someone else out there working on the same thing. …

And in any case, competitors are not the biggest threat. Way more startups hose themselves than get crushed by competitors. There are a lot of ways to do it, but the three main ones are internal disputes, inertia, and ignoring users. Each is, by itself, enough to kill you. But if I had to pick the worst, it would be ignoring users. If you want a recipe for a startup that’s going to die, here it is: a couple of founders who have some great idea they know everyone is going to love, and that’s what they’re going to build, no matter what.

Almost everyone’s initial plan is broken. If companies stuck to their initial plans, Microsoft would be selling programming languages, and Apple would be selling printed circuit boards. In both cases their customers told them what their business should be — and they were smart enough to listen. …

5. Commitment Is a Self-Fulfilling Prophecy.

I now have enough experience with startups to be able to say what the most important quality is in a startup founder, and it’s not what you might think. The most important quality in a startup founder is determination. Not intelligence — determination. …

Time after time VCs invest in startups founded by eminent professors. This may work in biotech, where a lot of startups simply commercialize existing research, but in software you want to invest in students, not professors. Microsoft, Yahoo, and Google were all founded by people who dropped out of school to do it. What students lack in experience they more than make up in dedication. …

In a startup, there’s always some disaster happening. So if you’re the least bit inclined to find an excuse to quit, there’s always one right there. …

You have to be the right kind of determined, though. I carefully chose the word determined rather than stubborn, because stubbornness is a disastrous quality in a startup. You have to be determined, but flexible …

6. There Is Always Room.

… There is always room for new stuff. At every point in history, even the darkest bits of the dark ages, people were discovering things that made everyone say “why didn’t anyone think of that before?” …

The reason we don’t see the opportunities all around us is that we adjust to however things are, and assume that’s how things have to be. …

So for all practical purposes, there is no limit to the number of startups. Startups make wealth, which means they make things people want, and if there’s a limit on the number of things people want, we are nowhere near it. …

7. Don’t Get Your Hopes Up.

Startup founders are naturally optimistic. They wouldn’t do it otherwise. But you should treat your optimism the way you’d treat the core of a nuclear reactor: as a source of power that’s also very dangerous. You have to build a shield around it, or it will fry you.

The shielding of a reactor is not uniform; the reactor would be useless if it were. It’s pierced in a few places to let pipes in. An optimism shield has to be pierced too. I think the place to draw the line is between what you expect of yourself, and what you expect of other people. It’s ok to be optimistic about what you can do, but assume the worst about machines and other people. …

Shielding your optimism is nowhere more important than with deals. If your startup is doing a deal, just assume it’s not going to happen. The VCs who say they’re going to invest in you aren’t. The company that says they’re going to buy you isn’t. The big customer who wants to use your system in their whole company won’t. Then if things work out you can be pleasantly surprised.

The reason I warn startups not to get their hopes up is not to save them from being disappointed when things fall through. It’s for a more practical reason: to prevent them from leaning their company against something that’s going to fall over, taking them with it.

For example, if someone says they want to invest in you, there’s a natural tendency to stop looking for other investors. That’s why people proposing deals seem so positive: they want you to stop looking. And you want to stop too, because doing deals is a pain. Raising money, in particular, is a huge time sink. So you have to consciously force yourself to keep looking. …

VCs and corp dev guys are professional negotiators. They’re trained to take advantage of weakness. [8] So while they’re often nice guys, they just can’t help it. And as pros they do this more than you. So don’t even try to bluff them. The only way a startup can have any leverage in a deal is genuinely not to need it. And if you don’t believe in a deal, you’ll be less likely to depend on it. …

The way to succeed in a startup is to focus on the goal of getting lots of users, and keep walking swiftly toward it while investors and acquirers scurry alongside trying to wave money in your face. …

Paul Graham’s lessons for startups Read More »