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compos mentis. Concision. Media. Clarity. Memes. Context. Melange. Confluence. Mishmash. Conflation. Mellifluous. Conviviality. Miscellany. Confelicity. Milieu. Cogent. Minty. Concoction.

Out of Silicon Valley, and Looking Homeward
Topic: Society 7:20 am EDT, May 14, 2002

"Engineers and entrepreneurs from India and China who work in Silicon Valley are quietly fueling a high-tech revolution in their native countries in ways that challenge traditional notions of a "brain drain." ... [They are] "agents of global economic change."

"The 'brain drain' from developing countries such as India and China has been transformed into a more complex, two-way process of 'brain circulation' linking Silicon Valley to select urban centers in India and China."

The precocious New America Foundation has just agreed to a deal with Basic Books to publish jointly up to 10 books a year covering public policy and current affairs. Until now, fellows at the three-year-old think tank primarily have relied on op-eds and magazine articles to express their deep thoughts.

The Hudson Institute has a bestseller on its hands -- in Japan: a new collection of essays called "The Re-Emerging Japanese Superstate in the 21st Century."

Out of Silicon Valley, and Looking Homeward


Big Media Mergers Raise Big Doubts
Topic: Economics 7:16 am EDT, May 14, 2002

Is 'Synergy' Achievable -- or Even Desirable?

Executives of the media giants and some industry analysts insist that there is no systemic problem with large-scale media acquisitions and that it is too early to issue a meaningful report card on synergy. They say last year's advertising climate, the worst since World War II, has conspired with a recession to keep companies from achieving their goals; the jaw-dropping one-time charges on companies' balance sheets are merely the product of a change in accounting rules.

But the write-offs essentially reflect the fact that the companies paid too much for their acquisitions, based on overly optimistic expectations that the whole would be greater than the sum of the parts.

I think they're missing the point on advertising when they call it a "poor climate." The reality, at least in some media, is that the concept and practice of advertising have fundamentally changed. The notion is losing favor that customers will accept advertising in exchange for a "free" product. Given the choice, many customers will opt to pay for ad-free products. And if content providers don't have an ad-free offer, then going forward the content provider won't be able to reach those customers. The reality for advertisers is that those customers will become increasingly inaccessible to them.

Big Media Mergers Raise Big Doubts


With Games of Havoc, Men Will Be Boys
Topic: Society 6:24 am EDT, May 14, 2002

"What I like to do is get in the car and drive around and do drive-by shootings. You can haul someone out of their car and beat on them and steal their money and their car. It's kind of amusing that you have that ability."

"The drive-by shootings of innocent pedestrians are always fun. It really does bring out the quote-unquote evil in you."

... Fans are hardly a collection of weirdos and social misfits. An awful lot are professionals with successful careers, wives or girlfriends and, in many cases, children. And to hear a lot of them tell it, well, Grand Theft Auto 3 is just too much fun.

The game's allure comes down to "just going on killing sprees."

... Retail sales of video games totaled $9.4B last year, a 42 percent increase over the $6.6B in sales in 2000, and even more than Hollywood took in at the box office last year.

... Eric Weinburg, a 28-year-old father from Atlanta, said GTA3 had become a wedge between himself and his wife. "She's appalled. It always seems like the times when my wife walked into the room, I was picking up a hooker."

With Games of Havoc, Men Will Be Boys


Question Marks at Cable and Wireless
Topic: Economics 6:14 am EDT, May 14, 2002

In the last three years, Graham Wallace, chief executive of Cable and Wireless, has defied critics by transforming a lumbering phone company into a New Age provider of Internet services to large corporations.

Now that strategy -- and Mr. Wallace's job -- is on the line. With Cable and Wireless's stock price floundering, investors are increasingly calling for a shake-up, including the shutdown of some units and the resignation of Mr. Wallace.

... Investors have erased $9.8B in market value in the last year. C&W will report a 54% decline in EBITDA on a 28% decline in revenue.

... Mr. Wallace invested heavily to acquire networks in Japan, the United States and Britain, as did rivals. Too much competition and the slowing economy caused prices to plummet.

Question Marks at Cable and Wireless


Big Networks Show 'Sopranos' Respect
Topic: Movies 6:35 am EDT, May 13, 2002

Chris Albrecht, the head of entertainment programming for HBO, knew the scheduling game had changed in a significant way for the big four broadcast networks when he got a phone call from a top network programmer, desperate for some information.

"When are you guys bringing back `The Sopranos?'" the executive asked. "I need to plan around that."

... Worried they are -- and not just about "The Sopranos." All of the entries on Sunday night on HBO have increasingly eaten away at network audiences ... Of "The Sopranos," another senior entertainment executive said, "To be honest, it's a real serious concern."

Its premiere on Sept. 15 is so highly anticipated, and will be so heavily promoted, that a record rating is almost assured. [It will be] among the top 10 shows in the 18-to-49 category most weeks — even though HBO reaches only about a third as many homes as broadcast networks. ... "Just imagine an 18-to-49 cyclone, or giant vacuum cleaner sucking up those young viewers on Sunday night."

Count me vacuumed!

You have to wonder, is there any truth to entertainment industry claims about an intellectual property crisis, when so many Americans are choosing to pay for the top-notch programming they want, rather than accept the free crap being pushed by the major networks?

Big Networks Show 'Sopranos' Respect


WorldCom to declare bankruptcy?
Topic: Economics 6:28 am EDT, May 13, 2002

As WorldCom's financial situation darkens, analysts say bankruptcy could be just around the corner. Even if it isn't, the telecommunications company and its competitors are in for a rough ride for the next few years, according to Wall Street analysts.

... debt slashed to "junk" status; $32B in debt, but customers aren't defecting [yet]. "The bigger problem is going to be two, three or four years out. It's a long-term situation." ... price wars, excess network capacity and a weak economy have taken their toll ... After Thursday, analysts are talking more about the possibility of bankruptcy. "WorldCom's problems will likely cast a further pall on other leveraged telecom carriers with perceived liquidity issues -- primarily Sprint and Qwest."

WorldCom to declare bankruptcy?


Talks With Iraqi Opposition Intensify
Topic: Current Events 6:24 am EDT, May 13, 2002

Senior U.S. officials have been stepping up discussions with Iraqi opposition groups, including several newly prominent in U.S. thinking, as the Bush administration proceeds with plans for toppling Iraqi President Saddam Hussein.

In one unpublicized meeting, a U.S. team, including a senior CIA official, met secretly in Germany last month with Massoud Barzani and Jalal Talabani, leaders of two Kurdish parties based in northern Iraq that allied with the United States after the Gulf War in 1991, according to sources familiar with the session.

... Even as it expands its contacts with Iraqi exiles, the administration is deeply divided over which groups to court and how helpful they could be in any move against Hussein. ... a military strike in Iraq now not envisioned until at least next winter ...

... The unpublicized meetings provide a rare glimpse at the influential but largely unreported role General Wayne A. Downing, former commander of all U.S. Special Operations forces, has assumed since he joined the White House after Sept. 11 to head its counterterrorism efforts. ... A possible invasion of Iraq could involve several roles for the Iraqi opposition ... Also exploring the option of encouraging elements of the Iraqi military to mutiny against Hussein ...

Talks With Iraqi Opposition Intensify


Where Telecom Bargain Hunters Turn
Topic: Economics 6:18 am EDT, May 13, 2002

It has been two months since Ivan G. Seidenberg, the chief executive of Verizon, mused at an investment conference that his company might bid for WorldCom "for the fun of it" if the stock price of that long-distance and Internet carrier continued falling.

Since then, WorldCom's shares have dropped 80%, to $1.58 on Friday. But as Mr. Seidenberg wryly suggested, conditions in the communications sector are so tough that Verizon has no real interest in WorldCom at any price. Verizon, along with rivals like SBC Communications, BellSouth and Deutsche Telekom, all have plenty of their own problems without taking on WorldCom's.

How bleak has the telecommunications scene become?

... Analyst: "We're not recommending any exposure to telecom. Tech investors are better off looking at semiconductors or game companies."

... Goldman, Sachs: "The telecom industry is beset by destructive competition in almost every sector." ... Fears are rising that telecommunications has too much in common with industries like steel and airlines.

... "At the end of the day, you're going to have the RBOC's battling each other."

Where Telecom Bargain Hunters Turn


A New Direction for Intellectual Property
Topic: Intellectual Property 6:12 am EDT, May 13, 2002

Perceiving an overly zealous culture of copyright protection, a group of law and technology scholars are setting up Creative Commons, a nonprofit company that will develop ways for artists, writers and others to easily designate their work as freely shareable.

Creative Commons, which is to be officially announced this week at a technology conference in Santa Clara, Calif., has nearly a million dollars in start-up money. The firm's founders argue that the expansion of legal protection for intellectual property, like a 1998 law extending the term of copyright by 20 years, could inhibit creativity and innovation. But the main focus of Creative Commons will be on clearly identifying the material that is meant to be shared. The idea is that making it easier to place material in the public domain will in itself encourage more people to do so.

... Larry Lessig: "It's a way to mark the spaces people are allowed to walk on." ... Creative Commons ultimately plans to create a "conservancy" for donations of valuable intellectual property whose owners might opt for a tax break rather than selling it into private hands.

A New Direction for Intellectual Property


Vulnerability Is Discovered in Security for Smart Cards
Topic: Computer Security 6:06 am EDT, May 13, 2002

Two University of Cambridge computer security researchers plan to describe on Monday an ingenious and inexpensive attack that employs a $30 camera flashgun and a microscope to extract secret information contained in widely used smart cards.

The newly discovered vulnerability is reason for alarm, the researchers said, because it could make it cost-effective for a criminal to steal information from the cards.

... "We used duct tape to fix the photoflash lamp on the video port of a Wentworth Labs MP-901 manual probing station."

NYT's John Markoff reports on Ross Anderson's latest exploits. No sign yet of the academic paper on his web site.

Vulnerability Is Discovered in Security for Smart Cards


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