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Microsoft Tarred as Tyranny Abettor as Google Asks Feds to Promote Net Freedom

Google is urging the U.S. government to make net censorship a part of its trade and diplomatic negotiations, even as it holds out hope that China does not start blocking its uncensored Hong Kong servers, where Google.cn users have been diverted since Monday.

Not unexpectedly, Google came in for heavy congressional praise Wednesday at a hearing of the Congressional-Executive Commission on China. But perhaps more telling for industry at large is that Google has seemingly set a precedent that other companies — namely Microsoft — are being measured against and that pressure on the software giant is likely just starting.

New Jersey Congressman Chris Smith (R), a sponsor of the Global Internet Freedom Act, lashed out at Microsoft, whose executives have scoffed at Google’s decision to leave China.

“They need to get with the program and join with the side of human rights, instead of being on the side of tyranny as they are today,” Smith said in his opening remarks.

By contrast, Smith called Google’s decision to re-route its censored China site to its largely unfiltered Hong Kong site, “a remarkable, historic and welcome action.” Google entered China in 2006, agreeing to censor sensitive political search results so long as they could tell users when that was happening, but found that censorship got even tighter, rather than loosening — leading it to declare in January it could no longer compromise its principles.

Microsoft, it seems, now finds itself on the wrong side of the engagement/boycott debate, at least as far as the political winds are blowing, even though its search share in China is minuscule compared to the 20 percent Google share has had and the 60 percent the Chinese-owned Baidu enjoys.

Like so many manufacturing companies before it, Microsoft argues that its business in countries like China has a liberalizing effect.

In an e-mailed statement, Microsoft said:

We appreciate that different companies may make different decisions based on their own experiences and views. At Microsoft we remain committed to advancing free expression through active engagement in over 100 countries, even as we comply with the laws in every country in which we operate. We have done business in China for more than 20 years and we intend to continue our business there. We also regularly communicate with governments, including the Chinese, to advocate for free expression, transparency, and the rule of law. We will continue to do so. We believe engagement in global markets is important, as an open and healthy Internet involves not only access to information, but access to network connectivity, computing power, innovative and easy-to-use software applications, and the basic IT skills needed to leverage these capabilities.

But on Wednesday, the pressure increased even more as yet another online giant — GoDaddy, the world’s largest domain registrar, announced it was ceasing its business with China over internet censorship. GoDaddy announced it would stop selling .CN domain names, since it found China’s new dictates that it collect detailed personal information, including a photograph, on every domain holder too invasive.

“We decided we didn’t want to become an agent of the Chinese government,” GoDaddy general counsel Christine Jones told the committee.

Other companies will soon begin to feel the same pressure as Microsoft, according to Eddan Katz, the international affairs director for the Electronic Frontier Foundation.

“What Google did sets a certain threshold for the responsibility that companies have to contributing to an infrastructure of repression,” Katz told Wired.com in a phone interview. “Other companies will be asked to disclose what they are dong, and how far they are complicated in the machinery of the surveillance system.”

Some tech companies have already found themselves in that spotlight, well before Google’s decision. Cisco has been widely criticized for selling its router and firewall technology to the Chinese, knowing that it would be used for filtering. Yahoo executives found themselves hauled in front of Congress after it aided the Chinese government’s arrest of dissidents including by turning over e-mails, despite having good reason to suspect the inquiries were politically motivated. Yahoo has since joined the Global Network Initiative, reduced its presence in China, and in Vietnam, kept its e-mail servers outside of the Communist country and thus, out of the reach of legal orders.

Google’s Alan Davidson told the panel that it had only seen intermittent censorship so far of Chinese mainland users using its Google.com.hk site, though it realizes that the Chinese government could expand the censorship at any time.

Test using WebSitePulse show that many formerly blocked searches, such as one for the blocked religion Falun Gong, return full search results to Chinese users. However, many of the results, such as Falun Gong’s Wikipedia entry, are blocked.

Davidson, formerly of the Center for Democracy and Technology, described internet censor ship as a “growing threat” that requires coordinated responses from companies, governments and civil society groups.

And while Google has taken pains to say that it made its decision independently of the U.S. government, Davidson says that the U.S. government needs to be involved.

“We believe internet freedom needs to become a plank of our foreign diplomacy and should be part of trade negotiations,” Davidson said.

That message was well-received, at least by the self-selected group of Washington lawmakers at the hearing.

Chairman Byron Dorgan, a Democratic senator from North Dakota, argued that China couldn’t reap the rewards of being a dominant player in the manufacture of goods, while placing unfair restrictions on the information industry.

“The truth is the world is made up of more than just products, there is also a marketplace of ideas in the world,” Dorgan said. “Respected countries don’t censor their citizens; respected countries don’t put their citizens in jail without trial, and respected countries don’t fear speech or ideas.”

It’s not clear whether pressure from foreign companies can change China’s censorship rules, as divestment in Apartheid South Africa did with racial policies.

But that’s certainly the hope of Google among others.

“We are hoping that we can offer our service uncensored in China,” Davidson said. “A bad case scenario is that others rush in to fill the void with products that don’t provide unfiltered information to Chinese users.”

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Hello, and Welcome to Movie Phone: Mobile Apps Duke It Out

Blockbuster digital VP Scott Levine and mspot CEO Daren Tsui discussed their movie phone services with Wired.com (photos courtesy of the respective companies).

Blockbuster digital VP Scott Levine and mSpot CEO Daren Tsui discussed their movie phone services with Wired.com (photos courtesy of the respective companies).

Video rental companies made big moves this week in the race to deliver movies to phones. But as compelling as thought of a movie in your pocket alone may be, this isn’t just about delivering content to handset. The companies vying for your mobile movie dollars want to tie you to an ecosystem they hope will change your habits — and loyalties — at home, at work and in between.

Big names like Blockbuster and News Corp. announced new initiatives at the CTIA conference in Las Vegas, and so did lesser-known player mSpot, originally a ringtone company that’s looking for new revenue sources as the ringtone market declines.

All of them believe that owning mobile is a ticket to winning the other three screens — computers, televisions and tablets — because viewers want to pick up on one screen where they left off on another, just as they do when reading an Amazon Kindle e-book.

If they are right, the battle plan seems fairly clear: Winning the smartphone puts everything into play and makes the mobile device the key entry point to a video-on-demand lifestyle, way beyond its mundane ability to manage rental queues on the go.

As to download versus stream? Either approach has its advantages and drawbacks. Streaming offers immediate playback — when it’s available, and it is unavailable without a decent data connection. Downloading ensures a seamless experience, but there is that wait …

Blockbuster, once known for its Walmart-like effect on mom-and-pop video stores, is now just one of many up-and-comers in the digital-delivery space. The company recently launched an internet-based video-on-demand service to augment its disc-based services (a disc-by-mail service, a dwindling number of retail stores and Blu-ray- and DVD-burning kiosks that interface with location-aware mobile apps so you can have movies custom-burned at a nearby store). It extended that approach to the phone this week with the launch of Blockbuster Movie Store, a rental-and-purchase app for the T-Mobile HTC HD2, and eventually other smartphones.

Not to be outdone, News Corp.’s Fox Mobile Group announced its own television and movie streaming and downloading app called Bitbop for iPhone, Droid and Blackberry that will charge a $10 monthly subscription fee, as opposed to the single-film fees proposed by mSpot and Blockbuster.

We let the executives behind opposing forces in the “movie phone” battle — Daren Tsui, CEO of the streaming-only mSpot and Scott Levine, the vice president in charge of Blockbuster’s download-only app — duke it out in a pair of interviews with Wired.com. Here’s how they stack up on the major issues facing the delivery of movies to phones, leaving aside for the moment contractual squabbling with the studios, which is a whole different ball of wax (more on that below):

GoDaddy Stops Selling Chinese Domains Over Censorship Concerns

log_gdGoDaddy, the net’s largest domain-name registrar, announced Wednesday it would stop selling .cn domain names, saying it was unwilling to comply with new rules from the Chinese government that require new and existing .cn domain-name holders to provide photo ID.

The announcement comes just two days after Google redirected its censored Google.cn search engine to its uncensored service in Hong Kong, after a dramatic statement in January that it was no longer willing to run a censored search engine.

GoDaddy’s top lawyer Christine Jones told Congress Wednesday that the new rules were an “attempt to exercise censorship on the subject matter hosted on domain names.”

“We were having to contact Chinese users to ask for their personal information and begrudgingly give it to Chinese authorities,” Jones said. “We decided we didn’t want to become an agent of the Chinese government.”

“We are concerned for the safety of current domain-name holders and about the chilling effect it could have for new registrants,” Jones said.

Jones made her statement at a Wednesday convening of the Congressional-Executive Commission on China, a bicameral and bipartisan legislative group.

China’s new rules require domain-name holders to show their business licenses and photo ID to authorities in China in order to keep the .cn country-level domain name. While that’s not keeping with policies recommended by ICANN, the central naming authority on the internet, ICANN has little authority over how countries run their own country domain names.

At least 72 Chinese citizens are in jail for internet postings, according to Rep. Chris Smith (R-New Jersey) who urged that the government support companies like GoDaddy and Google.

GoDaddy will discontinue selling .cn domain names, but will continue to administer current registrations.

GoDaddy, which handles more than 40 million domain names, also cited China as a hotbed for DDOS attacks, spam and financial fraud.

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What If Everyone on Twitter Read One Book?

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I have a dream. An idea. A maybe great notion. Actually, as Auggie March might say, “I got a scheme.”

What if everyone on Twitter read the same book at the same time and we formed one massive, international book club? Usually such programs are organized by big-city libraries. Seattle started the trend for collective reading in 1998 when zillions of Seattlites all read Russell Banks’ book, Sweet Hereafter. Chicago followed suit with To Kill a Mockingbird a few years later, and then other cities started jumping on the bandwagon.

When the program works — and it doesn’t always — it gets more people reading, more people talking and more people generally appreciating the written word. What’s not to like?

A few weeks ago, I was reading about the Chicago’s read-along for a grad seminar on social capital I’m taking with Robert Putnam this semester. My strong suspicion (and I’m hardly alone) is that networks like Twitter are rife with social capital, especially the so-called “bridging” social capital that connects communities of people who have little else in common.

The thought struck me that Twitter would provide a much better platform for a book club than the mere accident of physical proximity. Just think, we could supplant #howyouathug with #chapterfourexegesis in trending topics! Actually, no, we probably couldn’t, and that’s not the goal anyway. I love books. So do you. Let’s love one book together, our actual geographical location be damned.

Here’s how it’d go:

  • Now: We collect nominations for what book we want to read. Take the Reddit poll at the bottom of this story to make suggestions and vote up and down the suggestions of others.
  • Soon: We pick a winner out of the top selections. Why not just pick the one with the most votes? Because it’s not too hard to game the system. The final selection needs to be of general interest. It needs to be translated into many, many languages, and ideally it should be freely available.
  • Soon after that: We start reading, and tweeting, and reading, and tweeting.

In the meantime, the hashtag for One Book, One Twitter is #1b1t. If you want to keep up-to-date, follow me @crowdsourcing.

A few quick notes: This is not a book club, per se. There are some wonderful book clubs on Twitter, including #thebookclub and the Twitter Book Club (#tbc). The aim with One Book, One Twitter is — like the one city, one book program which inspired it — is to get a zillion people all reading and talking about a single book. It is not, for instance, an attempt to gather a more selective crew of book lovers to read a series of books and meet at established times to discuss. The point of this (to the extent it has a point beyond good fun with a good book) is to create community across geographical, cultural, ethnic, economic and social boundaries.

At best we start an annual summer Twitter tradition, and bring a bunch of people from all over the world to read together. At worst a handful of us pick a book in an ad hoc fashion and we’ll simply have started another Twitter book club.

If you’re a word nerd, how bad could that be?

[Cross-Posted from the Crowdsourcing Blog]

What should we read for ‘One Book, One Twitter?’

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Google ‘Erratic’ in Beijing: Report

Google’s abandoned China address, google.cn, is still directing traffic to its Hong Kong servers, but Reuters reports that service is erratic across Beijing.

With reporting credited to the Beijing newsroom Reuters says some searches “for even non-sensitive terms like ‘hello’ returning error messages” and that businesses, college students and private homes were reporting intermittent problems on google.com, google.co.uk and google.ca.

Others reported no disruption, and that some persistence paid off, with Google loading minutes after initial searches returned an error messages.

Google users report erratic service in Beijing [Reuters]

Best Unsubscribe Ever

Groupon is a web service that sends a daily deal via e-mail to hundreds of thousands of deal seekers, but for customers who decide they’d rather pay full price, or just want a clean inbox, the company has a page just for them.

Click on the image below to be taken to the real deal web page. (Be warned if you click through and you are logged into Groupon, you might accidentally unsubscribe yourself).

groupon-unsubscribe

Best part about this page is that it’s free entertainment.

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PayPal, Apps Prove a Potent Combination

Rentalic, which lets people rent stuff to each other with security deposits and blackout dates for when owners wants to use their items, claimed top honors in the PayPal X Developer Challenge.

Rentalic, which lets people rent stuff to each other with security deposits and blackout dates for when owners wants to use their items, claimed top honors in the PayPal X Developer Challenge.

PayPal has spent nearly a decade mainly as the payment-fulfillment arm of its parent company, eBay. But with the explosion of the mobile internet and the endless opportunities to leverage smartphones as personal piggy banks, the company is positioning itself — again — as the virtual wallet you can’t leave home without.

Last week it upgraded its own iPhone app to allow two people to exchange money with a fist bump. That initiative was a broadside at Twitter co-founder Jack Dorsey’s Square, a startup that makes it possible to use your smartphone to swipe credit cards.

This week PayPal announced the winners of a big-money contest aimed at bubbling up creative ideas incorporating their back-end payment system into third-party apps. The goal: Become as ubiquitous in smartphone money transfers as Twitter has become for sharing quips, links and pics.

Ideas entered in the Paypal X Developer Challenge ranged from futuristic (using a person’s voice as a fingerprint for secure financial transactions) to disruptive (a student-to-student textbook resale system).

Two companies stood out from the rest, according to the panel of judges which include Marc Andreessen (Netscape, Opsware, Ning), PayPal president Scott Thompson, and former PayPal CFO Roelof Botha, now of the venture capital firm Sequoia Capital.

The Winners

Rentalic, winner of the $100,000 top prize (half in cash and half in waived PayPal fees), aims to create an entirely new rental market, allowing people to rent each other their unused equipment, for any amount of time. From snow chains for car tires (the most popular item on the site at one point) to that hardly used kayak taking up too much room in the garage, users can make money renting out their stuff, with 5 percent of the cost of the rental going to PayPal. Owners can charge renters deposits worth the entire cost of an item, so there’s no risk of theft — you steal it, you buy it. Aside from the extra income the P2P system generates, it’s also a “green” idea in that the group as a whole consumes fewer new goods as a result.

Currently, consumers generally have to sell something if they don’t want it anymore, rather than renting it, the way some businesses do. According to Rentalic founder and CEO, Punsri Abeywickrema, the company solves several key problems for owners of underutilized goods: It ensures the renter has the money to pay; helps the renter prove that they are the same person who contacted the owner online; lets the renter back out when an owner misrepresents a product; enables the “blackout dates” mentioned above; manages inventory; accommodates proximity search for large items; lets owners choose to whom they wish to rent.

AppBackr, winner of the second-place $50,000 prize (also split between cash and waived fees), sets its sights on one specific part of the venture capital market: mobile apps that may not need much money to get off the ground. Approved investors browse inventors’ unexecuted app ideas, and if they see something promising, they can purchase the right to resell a certain number of copies in the Apple or Android stores. Since investors pay a “wholesale” price, they stand to profit if they bet correctly. Meanwhile, app developers gain access to funds and time to develop their idea, and regain full control over resale rights once their app has sold through the investor’s wholesale inventory.

“[Developers] get immediate funding,” said Appbackr’s Trevor Cornwall. “When the app sells on the iTunes store, the buyers get their money back plus a profit of 67 percent for each app that sells. This is a model that is used for tangible goods but until Appbackr, hadn’t been applied to digital goods. And it’s about more than money: Buyers become value-added marketers that can drive sales, just like with physical goods.  It is a model that re-intermediates, when you think about it.” Continue Reading “PayPal, Apps Prove a Potent Combination” »

A Global Anti-Censorship Policy for Google

china_f1Google has cleverly decided to get around Chinese Internet censors by routing all traffic through its Hong Kong-based site. The company isn’t going to play anymore with a government that won’t let people find information about democracy, dictatorship or Tiananmen Square.

But as a few people have pointed out, Google isn’t completely consistent in its outrage. It has censored search results in one way or another all over the globe. CNN lists the countries: Bahrain, Bangladesh, Belarus, Brazil, Burma, Cuba, Ethiopia, Fiji, Indonesia, India, Iran, Morocco, North Korea, Pakistan, Saudi Arabia, Spain, Syria, Thailand, Tunisia, Turkey, Turkmenistan, the UAE, Uzbekistan and Vietnam.

Yes, there’s a little hypocrisy here. But it’s mostly forgivable. Decisions about what to censor in different countries always involve complicated judgment calls. Thailand censors information making fun of the king. Complying with that is lame, but it doesn’t cause active social harm. Censoring pro-Nazi search results in Germany, as ordered by democratically elected governments, may do some social good. So a blanket no-censorship policy is extreme and unworkable.

But here’s an idea: Google should adopt the proposals laid out in a 2007 shareholder’s resolution. Along with points about data retention, that resolution declared that Google’s policy would be as follows.

1) The company will not engage in pro-active censorship.

2) The company will use all legal means to resist demands for censorship. The company will only comply with such demands if required to do so through legally binding procedures.

3) Users will be clearly informed when the company has acceded to legally binding government requests to filter or otherwise censor content that the user is trying to access.

4) The company will document all cases where legally-binding censorship requests have been complied with, and that information will be publicly available.

The proposals are clear and sensible. Three years ago, the company shot down the proposal in large part because it would have forced the company to pull out of China. According to David Drummond, its chief legal officer, “We oppose the proposal because we don’t think that at the end of the day it advances the causes of free expression and access to information … Pulling out of China, shutting down google.cn is, to us, not the right thing to do at this point.”

OK. But as of today the company has more or less pulled search out of China and shut down google.cn. So is it now the right thing to do?

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Cracks in Great Chinese Firewall, Even Without Google

BEIJING (Reuters) - Facebook, Twitter and YouTube are out, but in China’s vast and bewildering online universe you can freely read the New York Times or visit a favorite porn site.

People outside China who have read about Internet censorship — thrown into the spotlight by Google’s decision on Monday to close its mainland Chinese-language portal — often imagine online life there is bleak and boring.

The reality is very different.

China’s 384 million Internet users, the world’s biggest online population, enjoy everything from gaming and celebrity gossip to teenage chatrooms, academic forums and illegal file-sharing sites.

English language media reports, some highly critical of Beijing, are usually as freely available as the hardcore pornographic sites the government regularly professes to crack down on.

But Twitter, Facebook and many overseas blogging sites are out because they allow rapid sharing of information, triggering the ruling Communist Party’s fears of mass unrest.

Another touchy point for government censors are contested history, politics and religion.

Sites with more than cursory or officially sanctioned information about topics including the bloody 1989 crackdown on protesters around Tiananmen Square, or the banned Falun Gong spiritual cult, are usually blocked in China.

Total outage is however the weapon of last resort for a sophisticated censorship apparatus that wants to damp down dissent, while allowing room for commercial development.

Continue Reading “Cracks in Great Chinese Firewall, Even Without Google” »

Q+A: What’s Next For Google’s China Workers?

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SHANGHAI (Reuters) - Google’s decision to shutter its Chinese search website and redirect users to its Hong Kong-based search page leaves the fate of its 600 China-based employees in the balance.

Angst among those employees, who work across a range of operations mostly in Beijing and Shanghai, has been high in the last two months since Google first announced it might withdraw from the market.

According to local media reports, a steady stream of employees were leaving Google China over that time, some concerned about the future of their jobs and others about potential liability if Google was found to be in violation of Chinese law.

Continue Reading “Q+A: What’s Next For Google’s China Workers?” »