Vogel Internet, Information Technology and e-Discovery Blog : Texas Internet, Information Technology, eCommerce & E-Discovery Lawyer & Attorney Peter S. Vogel : Gardere Wynne Sewell Law Firm : Dallas TX

The recent conviction of 3 Google executives in Italy for a video posted on Google which showed the bullying of a disable teenager captured many headlines. No question that the video was in poor taste and Google took the video down within 24 hours of its posting after Google got 2 complaints. The conviction of the Google’s global privacy counsel, Peter Fleischer and two other executives raises significant issues. A fourth Google executive was acquitted, and Google plans to appeal these convictions. Does it make sense that Google, or any other ISP (Internet Service Provider), be liable for content posted over which the ISP has no control? The US Communications Decency Act of 1996 protects ISPs from liability since they have no control over content posted. How Google fares with these convictions may have an interesting impact on ISPs around the world.

Google Street View May Breach EU Law

Only to make things more complicated recent reports that the Google’s Street View violates EU Data Protection laws since they retain the images for too long. As well it was reported that “Switzerland’s data-protection agency in November sued Google for allegedly failing to comply with proposals to make it harder to identify people and cars on Street View.” Of course disputes regarding Street View are not new since claims of breach of privacy have been under way since at least 2008 in Japan.

Google has More EU Antitrust Problems

ComScore recently reported that Google has about 79% of the searches in the EU and the EU renewed its investigation about Google anticompetitive behavior. Google claims that Microsoft may be the source of the investigation since Microsoft owns one of the companies that complained. It seems reasonable to assume that the search engine wars will continue, but how the EU ultimately rules may have a far reaching impact.

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EPIC (Electronic Privacy Information Center) filed a complaint with the FTC that Google’s new Buzz significantly breached “consumers' expectations of privacy.” Many complaints were made after Google’s recent launch of Buzz, because Buzz automatically created “public circles of friends for users based on their most frequent Gmail contacts.” EPIC wants the FTC to order Google to make Buzz “opt-in.” What this means to Google’s social media evolution will be interesting to watch.

HEADLINE: “Facebook directs more online users than Google”

At the same time that Google’s social media is taking center stage a report was released that indicates that Search Engine Optimization (SEO) is being replaced with Social Media Optimization (SMO):

“According to Web measurement firm Compete Inc., Facebook has passed search-engine giant Google to become the top source for traffic to major portals like Yahoo and MSN, and is among the leaders for other types of sites.”

There’s no rocket science to understand that Facebook’s 400 million friends have changed communications forever and SMO’s impact of search engines and SEO cannot be ignored. As Facebook rolls out its Titan email system SMO is certain to expand.

Aardvark joins Google!

At the same time of this Buzz controversy Google purchased Aardvark which is interesting since Vark.com “has defined a new kind of social search: sometimes you want a person, not a web page, to answer your question.” SMO and SEO are in the middle of Google’s evolution. This is a lot to digest at one time. Stay tuned.

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Google added two new links for “My social circle” and “My social content” that permit Social Networking searches! This blending of the most popular search engine in the US with social networking is getting more interesting since “Google is striking real-time deals with both Facebook and MySpace. Updates from public pages on Facebook will appear in Google real-time search, as will any publicly posted comments on MySpace.” In the future hundreds of millions of friends on Facebook and MySpace will use Google to search.

Google “Show Options”

Many people may not have noticed that when you do a Google Search the results displays “Show options” which includes the following:

So whenever you do a Google search you can click on “>Any time, Latest” and you will find information that just happened seconds before. This service now permits real time searching rather than purely historical.

Twitter on Google and Bing

To make things a little more interesting Google just announced that it will add live results from Twitter searches. However Bing already has an early version http://www.bing.com/twitter. With the tremendous growth of Social Networking now blending into search engines seems logical and inevitable. Even though Google gives pointers on how to protect oneself with these new social network searches, Google still keeps searches for 18 months. It makes one wonder how private everyone’s information really is on Social Networks or Google.
 

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With all the press about the disaster for Google in China somebody had to benefit, and it turns out the predominant search engine Baidu will be the big winner. Baidu had 63.9% and Google had about 31.3% of China’s search engine’s market before the December attacks. Ironically Baidu was started by Li Yanhong, a.k.a. Robin Li in 2000 when he raised $26.2 million in venture funding including a modest investment from Google. Today Baidu has 7,000 employees and market value of $16.2 billion, however Google sold its stake in 2006. Google entered China in 2006 with an agreement to censor certain topics.  But whether Google departs or not, Baidu is sure to grow since many users of Google are worried about security. Of course that is ironic since many in China believe that Baidu censored a great deal more than Google.cn. 

Attack on Google

Apparently the attack on Google was through a security hole in Microsoft’s browser Internet Explorer (IE) including these versions:

IE 6 Service Pack 1 on Microsoft Windows 2000 SP4 has the bug. Moreover, the flaw exists in IE 6, IE 7 and IE 8 on supported editions of Windows XP, Vista and Windows 7, plus Windows Server 2003, Windows Server 2008 and Windows Server 2008 R2.

Some pundits are wondering why Google was using IE rather than Google’s browser Chrome, which is an interesting issue aside from the attack.

Microsoft's Ballmer: We're Staying in China

Microsoft CEO Steve Ballmer committed to stay in China even though Google appears to be ready to leave. “Google has been in China since 2006 operating under an agreement with the government that has the search giant purge banned topics from its Chinese search results. But the recent attack has Google saying it will no longer censor results per Chinese law and the company is threatening to pull out of the country altogether. “ Since Microsoft recently announced its plan to grow its search engine Bing in China it’s no wonder that Microsoft may stay notwithstanding censorship and vulnerability with IE.

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The EU finally concluded its antitrust case against Microsoft by allowing customers to select browsers from a variety of 12 options including Google (Chrome), Apple (Safari), Mozilla (Firefox), and Opera. Under the plan “in March Microsoft will issue an update that enables the more than 100 million European users of Windows XP, Vista and Windows 7 to choose among a variety of browsers available for installation in addition to -- or instead of -- its Internet Explorer.” Since Microsoft will remain liable for fines it is likely that Internet Explorer’s market share will decline to the benefit of others.

How Can Bing Compete in China?

Microsoft recently announced that it planned to enlarge Bing (its search engine) in China:

"Microsoft is committed to the China market and the search market in China is the most important strategic market for Microsoft," Microsoft told Reuters on Dec. 29. "We specifically set the search technology center in China to get a deeper understanding of what Chinese users need, to be able to deliver the best product to them."

However:

“According to research company Analysys International, as cited by Reuters, Chinese search engine Baidu currently leads the country's search engine market with 63.9 percent, followed by Google with 31.3 percent. Meanwhile, another research company estimated that Bing (which launched in China in June, and is still technically a beta) occupied less than 1 percent of the Chinese search engine market in the second quarter of 2009.”

So the likelihood of a Bing’s success seems remote any time soon.

Google Still Dominates

Since Google’s search engine continues to grow in the US and China it seems unlikely that Microsoft can make any inroads unless Microsoft changes its business plans. There is an increase in the use of cloud computing for business around the world which makes it debatable if users need new operating systems to replace older systems whether Microsoft, Apple, or Linux. Right now it is hard to tell how Microsoft’s new operating system Windows 7 will fare. If it is not a fabulous success, maybe Microsoft will only get smaller throughout the world.

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Web 2.0 must be for real, how else can anyone explain Members of Congress find YouTube, Twitter, Blogs, and Facebook the most effective way to communicate in 2009? Today NPR (National Public Radio) interviewed Republican strategist Mindy Finn (a partner and blogger at the political consulting firm Engage who helped Virginia Gov.-elect Bob McDonnell) said that "Members who don't have a lot of say or don't have much of a voice in Congress can use social media to talk directly to their constituents, to voters and to activists." Finn went on to say “"In the past, they might put out a press release and nobody picks it up. But now if they build up a network of blogger support, if they have a presence on Facebook or on Twitter, and they put out that same information, it can go virally across the Internet."

YouTube Offering Text Captioning

Google recently announced that it is making YouTube accessible to deaf and hearing impaired Internet users. Since the captions are English-language speech only the power of Google’s 51 languages will allow for automatic translation to millions of people around the world who do not speak English. This technology is not new and Google currently uses it to transcribe voice mail messages into .wav files with Google Voice. Of course this technology is not perfect but offers a dramatic impact on world-wide communications.

Federal Trade Commission Examining Google Acquisition of AdMob

What will happen if AdMob, one of the top sellers of iPhone banner ad apps and web pages, becomes part of Google’s empire? This acquisition would position Google to be a major player in the mobile advertising ecosystem and expand Google’s market power. It does not take rocket science to see that Members of Congress are taking advantage of YouTube and Web 2.0, so surely they will capitalize on mobile ad which Google can see. Without question President Obama’s use of Web 2.0 vaulted him into the White House, and clearly Members of Congress depend on Web 2.0 to be relevant and communicate with their constituents. Wonder what will happen with Web 3.0 in the future and its impact on politics?

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In 3 months Facebook grew another 16.7% to 350 friends worldwide which has led Facebook to create a simpler privacy policy to allow users to control who sees “each individual piece of content you create or upload.” All the more amazing since Facebook grew 200% between August 2008 and August 2009. Facebook founder Mark Zuckerberg’s recent blog that stating among other things that 50% of Facebook friends are member of regional networks, and today there are networks for the entire countries of India and China. The new plan is to remove these regional networks and hopefully create a simpler network and improve its privacy policy.

Facebook Statistics Are Amazing

The current Facebook statistics are pretty incredible and particularly that 35 million (10%) of the Facebook friends update their status every day:

• 50% of our active users log on to Facebook in any given day
• More than 35 million users update their status each day
• More than 55 million status updates posted each day
• More than 2.5 billion photos uploaded to the site each month
• More than 3.5 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each week
• More than 3.5 million events created each month
• More than 1.6 million active Pages on Facebook
• More than 700,000 local businesses have active Pages on Facebook
• Pages have created more than 5.3 billion fans

So is it any wonder that Facebook needs to be vigilant in managing personal information of its friends and users. Time will tell how Facebook’s privacy policy works out.

Google Searches for 2009 - Facebook is Number 2!

As 2009 ends Computerworld announced the top search engine hits for the year and of course Michael Jackson was number one, but Google’s number two search of the year was Facebook! Also on Google’s top 10 list of searches was “Twitter, Windows 7 and Tuenti, which is a Madrid-based, invitation only social networking site that some call the Spanish Facebook.” AOL and Yahoo! also listed Michael Jackson as the top searched name, but from the lists varied widely- “AOL and Yahoo! lists popular search terms like '70s icon Farrah Fawcett, who also died this year, socialite Kim Kardashian, singer Rihanna and actress Megan Fox.” Interesting message about the search engine wars that Google, AOL, and Yahoo! would be so different.

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No major changes in the war over search engines in past two months, first place Google grew to 65.4% (+.5%), second place Yahoo! declined to 18% (-.8%), and third place Bing (Microsoft’s newly named engine formerly “Live Search) grew to 9.9% (+.5%). Interestingly the two greatest search increases are for YouTube (+7%) and Bing (+8). So messages can we get from the US search engine competition? Well for starters Google’s and Bing’s growth make sense, but what about the decline for Yahoo!? These numbers may make a Microsoft Bing alliance with Yahoo! more likely.

Wolfram|Alpha -Bing’s New Ingredient?

Microsoft recently announced that Bing would add an enhancement that relies on the computational information from the relatively new search engine named Wolfram|Alpha. There is a video interview of Stephen Wolfram on a Microsoft blog in which he says "What we’re seeing with Microsoft and Bing now is a first step toward taking computational knowledge and deploying it in an application, in this case a search engine."

Search Engine Optimization (SEO)

I assume everyone knows that the SEO industry has grown dramatically over the past 14 years (since the 4th Big Bang of free Internet Explorer with Windows 95), and one can even get a SEO Certification. Of course SEO is a success because Google and most search engines save all user inquiries for 18 months so that search engines can monetize this information and also as by-product maybe help improve the value of searches for users and websites. Stay tuned as SEO and search engines continue to evolve.

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Watching the world economy meltdown in the past year it’s not much of a surprise that Google value increased by about 25% to number 7 in the world with an estimated value to an $32B! Other technology companies did not fare as well as reported by BusinessWeek and Interbrand:IBM increased by about 2%, Microsoft lost about 4%, Intel declined by 2%, and Oracle lost 1%. So Google’s growth during the down economy means that Google must be doing many things right.

Google Could Become The Leader Source of News

With the announcement of Fast Flip Google now has a site where users can get all the news they need without ever leaving Google. Google reports that the “service is being initiated with the cooperation of about three dozen publishers, including major news outlets like BBC News, The New York Times, The Washington Post and Newsweek; magazines like Cosmopolitan, The Atlantic, Esquire and Good Housekeeping; and Web-only publications like TechCrunch, Salon.com and Slate.” In the meantime Microsoft added a service to Bing called Visual Search which adds a new way to view news and expand the uses of Bing search engine. Given the troubles in the newspaper world is any wonder that Google and Microsoft have new plans to take greater roles in news?

Google Finally Using DoubleClick to Boost Display Ads

After making a fortune on small text ads now Google will make redirect its energy to boosting display ads. No one should be surprised by Google use of DoubleClick to migrate to displays ads and be in direct competition with Yahoo! Yahoo! is the current king of display ads and Google’s move will definitely impact Yahoo!’s advertising revenue. We need to stay tuned to see how things play for Google and Yahoo! Stay tuned.
 

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One might ask if every public employee must keep every email forever given this report that the Massachusetts Secretary of State ordered the seizure of City of Boston computers searching for deleted emails. This order follows a public records request by the Boston Globe to the Mayor’s office and which yielded only 18 emails during a 6 month period. If the computer forensics specialist cannot find the deleted emails one may only guess what can happen, including possible criminal proceedings.

Saving Every Email Forever

There are products that allow companies to save every email that is delivered to the mail server before the recipient ever gets the emails, which means that as we routinely delete junk, spam, or personal emails they are nonetheless saved forever. Of course how much storage does one need to save every email forever? Probably more than exists. So as a matter of reality businesses must establish Records Retention Policies that are practical and comport with actual practice and allow for the destruction of junk, spam, and personal email.

Google to the Rescue

After Google acquired Postini a couple of years ago it was not clear what was going on until Google announced its entry into e-Discovery with this bargain: “Flat $45 per user per year for up to 10 years of retention. Email archiving has never been simpler or more affordable.” Since ComScore reports that about 65% of all searches are conducted on Google one can be pretty much assured that every Judge in the US uses Google, so litigants probably will be on safe ground to tell Judges that all emails are stored on Google’s systems. Google not only offers emails on their Cloud with specialized search software, but also the peace of mind that Judges probably will think this a great idea to assure that emails are not destroyed.

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No surprise that dozens of filings were made in opposition to the proposed settlement of the lawsuit between the Google and the Authors Guild and Association of American Publishers which was filed in “2005 by the authors and publishers against Google over its plan to digitize millions of books from libraries without authorization from rights holders.” Although Google has received the support of Sony, civil rights groups, and antitrust experts, there were notable opponents to the settlement including “individuals, rival companies like Amazon and Microsoft, advocacy organizations, groups representing authors and publishers and even some foreign governments.”

EU Opposition of Google’s Settlement

Many voices in the EU complained at a hearing that the proposed settlement would give Google more power to exclusive rights to sell million of out-of-print works even though the copyrights are still valid. Not much of a surprise that Microsoft is backing the anti-Google settlement groups in the EU. Many groups in the EU feel that since they did not participate in the settlement that they were discriminated against.

What’s Next in the Lawsuit?

Federal District Judge Denny Chin must now sort through the filings to try to determine if the proposed settlement properly protects the authors, or else the case may continue on to trial. Among other issues for Judge Chin to consider are antitrust concerns that Google’s control over these works would give Google too much market power. There are many antitrust issues on the horizon for Google it seems with many opponents, not just with books but more broadly in the entire space known as eCommerce. Stay tuned as we see Google and eCommerce evolve.
 

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A recent ruling about an alleged anonymous slanderous blogs about a New York City model made it to the front page of every news media on the Internet when a New York City Judge ruled that Google had to identify the name of the person who ran the blog called “Skanks of NYC.” When Liskula Cohen (the defamed model ) learned the identity of the anonymous blogger was Rosemary Port, a 27-year-old student at the Fashion Institute of Technology, Cohen decided to not pursue any slander claims against Port. In an interesting turn of events, now Port claims that Google somehow breached a fiduciary duty and Port’s attorney is bringing a claim against Google for $15M.

Internet Anonymity Protection

Without question the First Amendment of the US Constitution provides the right of free speech and citizens can anonymously make public statements with impunity, except if the statements are slanderous, libelous, or violate some law.

What Did the Judge Say?

Cohen filed a lawsuit in January 2009 against the unknown blogger (I assume Jane Doe) and in the normal course of a Cybersmear lawsuit a subpoena was issued to Google to learn the identity of the anonymous blogger. The legal question was whether the anonymous blogger breached the contractual terms of service with Google. If there was a breach by the blogger then the blogger lost their right to anonymity. You have to look at the Google Blog Terms of Service, Privacy Policy, and Content to determine if the blogger violated these terms. Google must have decided that Port violated the contractual terms and then whether her identity became public was up to the New York City Judge.

Apparently Manhattan Supreme Court Justice Joan Madden believed there was slander and wrote in her decision that "the thrust of the blog is that [Cohen] is a sexually promiscuous woman," and accordingly Google was obligated to disclose Port’s identity since Port violated the contract terms with Google.

How Does Cybersmear Work?

Cybersmear cases have been around for a while and often relate to anonymous postings on sites like Yahoo! Finance where people regularly make anonymous statements about stock values, alleged criminal behavior by corporate officers, and you can just image. Generally once the identity of John or Jane Doe is made public the parties work things out, the posting stop, and there are no headlines.

In this instance Port claims the only person on the Internet who saw "Skanks of NYC" blogs was Cohen, and ironically because of Cohen’s lawsuit and the alleged violate by Google of Port’s rights, now everyone on earth knows. I’m sure there a lesson in this case but generally I’m reminded of the New Yorker Cartoon where two dogs are talking and one says to the other “I had my own blog for a while, but decided to go back to pointless, incessant barking.”

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Tim O’Reilly coined the term Web 2.0 in 2002 and in a recent report O'Reilly encourages more social networking for the government. Of course he’s not the Lone Ranger on Gov 2.0 as there are plenty of advocates including my good friend Ellis Pines who blogs about Gov 2.0 and encourages the use of GovLoop – a social network for Gov 2.0.

Are We Cybersecure?

Okay so great, Gov 2.0 encourages more social networking. But a recent report that the White House’s senior aide on cybersecurity resigned because she was “not empowered” is alarming since it is clear no one wants to be the Cyber Czar. In the meantime there are never ending reports of widespread Cyberattacks in the world, and hackers apparently have no problems breaching commercial websites.

Enlarging the use of social networking only compounds the problems of cybersecurity, so at this moment none of us should feel so safe. What do you think?

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A permanent injunction was entered based on Microsoft’s patent infringement that prohibits the sale of Word products for certain custom XML codes! Also US District Judge Leonard Davis (Eastern District of Texas in Tyler) ordered Microsoft to pay $40 million for willful infringement and $37 million in prejudgment interest. This injunction and award of willful damages follows a May, 2009 jury verdict that ordered Microsoft to pay i4i $200 million for infringing patent 5,787,449 that deals with metacodes. Needless to say Microsoft will appeal and/or settle. However, in the meantime this will send shockwaves in the IT community.

Word Free Online v. Google Apps
 

Days before the Judge Davis’ order Microsoft announced that Word would be available free online in a Software as a Service (SaaS) model in direct competition with Google’s Apps. This makes for interesting news since Word is the mainstream word processor in the world and has become the de facto standard. So coupled with the permanent injunction precluding Microsoft from selling Word with certain XML features, this is an intriguing development.
 

SaaS Word Processing?
 

Microsoft Office, Google Apps, and OpenOffice all provide pretty much the same Word type documents, operate a great deal alike, so do users need to have their word processor on their computers? Laptops? PDAs? Or just available on the Internet in a SaaS? Time will tell, but most users like the ability to process Word documents on their computer without relying on Internet access, regardless of which word processing software they use. SaaS and Cloud systems have in common that their customer data resides on the hosted systems, not in the confines behind firewalls and on users’ computers.
 

This is how Google’s offers its Apps:

“Outsourcing to Google lets you run your business instead of running routine IT systems.
* Google Apps is 1/3 the total cost of competing solutions.
* No special hardware or software is required, and Google runs the servers so you can focus on your business.
* Get better reliability than on-premises solutions, with a 99.9% uptime guarantee.**
* Data can remain on Google's infrastructure, rather than on unsecured devices.”

Everyone on earth can see how much power Google has developed and Google Apps is a great success. However since Google is not in the top 20 most trusted companies it can certainly make one wonder where is the Internet going?

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Google is always making news, but the report that the Google Apps have new features to compete with Microsoft Office is interesting as more users rely on free Google Apps. It’s hard to fathom that Wikipedia could be used as a news source, but Google is trying that out since so many users rely on Wikipedia as a source of reliable information. Without question Google continues to grow and evolve in interesting directions, clearly something we all have to watch.

Google vs. Microsoft (including Free Windows 7)

Notwithstanding the ongoing search engine wars between Google and the universe, Google Apps are apparently improving at time with Microsoft users are unhappy with the additional features in Office 2007 which causes new complications for users. Specifically the new features in Google spreadsheet are an improvement over Excel, and with the general unhappiness of Microsoft Vista clearly many users are awaiting Windows 7. So Microsoft’s original game-plan to move the PC world from XP to an new operating system, and of course related revenue from upgrades to the Office Suite, got a major stall since Vista has been such a major dud. So it’s not much of a surprise that Microsoft has revealed that users can get Windows 7 free or very low cost when released later this year if they buy a new computer now with the upgrade.

Wikipedia As A News Source?

Often Wikipedia shows up at the top of many Google searches and as result users tend to rely on Wikipedia has grown to over 2.9 articles. But recently Google News has also been including Wikipedia links so that users can read more about topics. Interestingly enough no one at Google asked Wikipedia and the folks at Wikipedia learned of the new Google News service use of Wikipedia by reading the Nieman Journalism Lab. With this evolution Google News has positioned the collaborative written source Wikipedia in direct competition with the New York Times, Washington Post, AOL, CNN, and other news sources.

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Behavior Advertising

A recent privacy blog discussed the February 2009 Federal Trade Commission Staff Report entitled “Self-Regulatory Principles For Online Behavioral Advertising,” and the opt-out questions posed by Congress are at the heart of whether new Internet privacy laws are required. The Internet economy, and certainly Google is chief example, are dependent upon the current behavioral advertising model and surely will be impacted by a change in the privacy laws in the US.

eMail Surveillance

Most US citizens believe that their emails are private. However employee privacy regarding emails in the workplace (not personal webmail) may be misplaced since in the US emails are private to employers and in the EU, Canada, and other countries emails are private to the employees. Nevertheless there are more questions being asked in Congress about how many e-mails are being collected in the name of security. The recent report that National Security Agency exceed its authority by intercepting emails and phone calls continues to be debated in Congress. Given President Obama’s cybersecurity agenda it will be interesting to see how the US congress can reconcile the expectation of personal privacy and need for Internet security. These debates will continue as the Internet evolves. Stay tuned for more.
 

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Apparently the US Justice Department is investigating anticompetitive behavior concerning among others Google, Yahoo! , and Apple since many Internet companies restrict recruiting and hiring of one another’s employees. Since anticompetitive employment agreements in the technology industry are the norm it’s particularly interesting that the Justice Department is pursuing these companies. Internet and IT companies rely of these non-competition provisions to protect trade secrets and Intellectual Property so it will be interesting to see how this develops.

EU Unhappy with Microsoft for Not Distributing a Browser

Following the antitrust dispute in the EU regarding Microsoft’s alleged monopolization of the browser market, Microsoft recently announced that when it distributes Windows 7 there not be any browser. The EU regulators are unhappy with this solution, even though on the surface it does seem that the complaining browser companies (Google, Mozilla, and Opera) should be pleased since they claimed that Microsoft’s embedded Internet Explorer violates antitrust laws.

Are Antitrust Laws Out of Touch with the Internet?

Since antitrust laws evolved from the need to try control monopolies in the 1800’s how much sense does it make to still use these concepts in the Internet world of 2009? Microsoft’s deployment of its operations systems took over the PC market was great for the users since before Microsoft there was no operating system standard on PCs. My Internet Third Big Bang was the 1981 advent of the PC, not just because IBM and Microsoft got into the market, but as result of the PC Clones using Microsoft operating systems a de facto standard developed on Microsof. As a result users could depend on continuity and consistency between software and applications. So maybe the US and EU should re-evaluate antitrust laws for the Internet and IT world that we live with today and in the future.

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No surprise that the Chinese government blocked social networking on the eve of the 20th anniversary of the military crackdown at Tiananmen Square. As a matter of fact just before the Olympic Games began in August 2008 China limited Internet access as the government wanted control over information before and during the Games. Many people from the West were surprised since China was hosting the international Games, but it seems logical that a totalitarian government would not change its behavior in such a circumstance.

More Social Networking

It’s about time that smaller businesses got the clue that they need to use social networking to promote their activities, so it’s no surprise to read reports that small businesses are directing their efforts to attract traffic with social networks. Targeted advertising works even better on the Internet, but learning how to identify potential customers has always been a primary goal of marketing.

In February 2009 the Federal Trade Commission issued its FTC Staff Report entitled “Self-Regulatory Principles For Online Behavioral Advertising” following public hearings and “sixty-three comments on the Principles from eighty-seven stakeholders, including individual companies, business groups, academics, consumer and privacy advocates.” Since the US relies on self-regulation of privacy these comments were all considered before releasing the Principles. One need merely review Google’s Analytics site to how much information about is captured about our activity on the Internet. The fact that this monetized is one thing, but the potential loss of privacy has many alarmed.

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There are reports that Microsoft’s new search engine known as Kumo is about to be released (ultimately it may be called “Bing”) which will replace “Live Search.” Apparently Microsoft leaked copies of Kumo recently and from all reviews there’s nothing too radical, but what is radical is the Wolfram|Alpha search engine which was seen on TV news last week. The Wolfram|Alpha search engine provides users very different information, however since it is so radically different it remains to be seen how successful its approach will be.

Update on Search Engine Rankings

comScore just released its new search engine rankings without much surprise- Google increased slightly from 63.7% to 64.2% of all Internet searches between March and April 2009 while Yahoo!, Microsoft, Ask, and AOL were relatively flat. Since Microsoft (20.4%) and Yahoo! (8.2%) searches combine for 28.6% of all Internet searches, there has been renewed speculation that Microsoft and Yahoo! will form an alliance to try to get a larger market share and be more competitive with Google.

Microsoft vs. Google- Search Engines and Browsers

From earlier blogs you will recall that Google is complaining about Microsoft’s deployment of Internet Explorer in the EU as anticompetitive. Interestingly part of Microsoft’s defense is apparently that by expanding competition in the browser market in the EU will only encourage more Google Internet searches which will be anticompetitive to Microsoft. So it will be interesting to see how Microsoft’s deployment of Kumo may allow Google to argue to the EU that Microsoft’s defense should fail since Microsoft is aggressively competing with Google in the search engine market.

What do you think? I welcome comments.
 

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Since Google accounts for more than 63% of all Internet searches, it’s no wonder that Google’s stock fell last week when Google users had significant problems when Google’s servers were overloaded and Google services were operating at a crawl. Google claims that there were problems in 3 of their Asian data centers (out more than 30 data centers worldwide) which affected about 14% of Google’s users. Many Internet users rely on Google for services beyond searches, including gmail, Google Apps, and Google Latitude to name a few. Google’s server failures meant many users could not conduct business during this outage period.

Protecting Privacy Google

A recent article in Computerworld gives Google users 6 tips about protecting privacy:

1. Know your privacy rights: Use the Google Privacy Center.
2. Protect your content on the services you use.
3. Turn off the suggestion feature in the Chrome browser.
4. Turn off Web History.
5. Opt out of interest-based ad serving.
6. Add SSL to Gmail.

However, since most Internet users do not take the time to review privacy policies it’s unlikely that this advice will be heeded by many Google users.

More Google

Google announced a number of new services for desktops and mobile phones which includes search capabilities in multiple contexts so that when searching from a cell phone, Google will take into account the GPS location and what other mobile users have searched in that locale. Also Google will offer a new tweak to search on Search Options that allows a user to drill by topics, time, or images. About to make its debut is a much hyped search engine known as Wolfram Alpha.

Google Too Successful?

A big question may now be has Google been too successful? As Google offers these new features to sell ever more ads space, surely Google hopes to draw more users. Without question the recent system slow-down is an ominous sign of potential bad news on the horizon. No doubt Google’s search engine competitors like Yahoo!, Microsoft, and AOL are watching with great interest to see if they can capture Google users who may abandon Google if the system outages become a pattern.
 

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Recent reports from the EU potentially impact a number of Internet and IT industry issues of great import, including plans for new laws to protect consumers from IT security breaches, Microsoft’s strategy to defend antitrust claims regarding the Internet Explorer (IE) browser, and a ruling that Intel violates antitrust laws.

EU Notice for Loss of Data

The EU plans to pursue new laws that would create more stringent reporting of IT security breaches, more like the US and Japan. Of course IT breaches are not a new topic in the IT community nor on this blog. However the new California law in 2003 requiring notice to consumers was a model that many states of have adopted, and citizens are clearly better off that they are notified of possible loss of their personal information.

Microsoft Browser Strategy

Recent blogs that Google, joined Mozilla and Opera complaining about Microsoft’s anticompetitive distribution of the IE browser is taking an interesting turn. Apparently Microsoft plans to argue in defense that restrictions on distribution of its IE will strengthen Google’s search-advertising market in an anticompetitive way. Apparently the EU estimates that 85% of the browsers in the EU are Microsoft’s IE, but if Microsoft has its way IE will continue to be distributed with Windows Operating Systems as it has since 1995.

Intel to Get an Adverse Ruling

The EU is expected to rule this week that Intel’s marketing in the EU violates antitrust laws, and Intel’s 81.9% market share is not because it has superior products. Rather the EU will rule that Intel has illegally handed out rebates and paid computer makers to delay products with rival chips.

EU Impact on IT

It’s probably about time that the EU enacted IT security breach laws to protect consumers like many US states. The EU is taking IT very seriously, and not reacting well to US IT companies’ market strategies that may be acceptable in the US. As more countries provide high speed Internet access to all citizens, countries around world will need to be even more vigilant to protect their citizens, by informing them of IT security breaches to protect personal identity and from anticompetitive behavior.

Since I see the Internet as the greatest social change in the history of humans (since there are no boundaries of time and geography), it seems reasonable that governments will only have a higher responsibility to protect citizens since we are all more and more reliant on the Internet and IT.
 

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After teaching the Law of eCommerce since 2000 I have established my own perspective of 5 Big Bangs which propelled the Internet, three of which were described in a recent blog:

1st Big Bang- Invention of the punch card for the 1890 census by Dr. Herman Holerith (which led to the IBM);

2nd Big Bang- World War II invention of the first modern day computer for monitoring the tides to help with the June 6, 1944 D-Day invasion of Normandy;

3rd Big Bang- Launch of the IBM Personal Computer in August 1981;

4th Big Bang- Distribution of Microsoft’s Internet Explorer in July 1995 with Windows 95; and,

5th Big Bang- Web 2.0 with the advent of social networking as predicted by Tim O’Reilly in 2002.

Where is the Internet Going?

It’s very difficult to tell, but when Alexander Graham Bell invented the telephone in 1876, no one could have predicted that I would use my cell phone to make a phone call atop the Great Wall of China in 2005. So where the Internet is going is not easy to predict, but as we observe changes it’s clear that the direction is not entirely what we may expect. In 1998 when Google launched no one could have predicted its success and that would account for more than 63% of all Internet searches, have vast wealth, and that Google would provide an Operating System among many accomplishments.

Web 2.0: FaceBook at its 200 Million User, Doubles Membership in 8 Months!

Big celebrations in August 2008 FaceBook when it registered its 100 million user, now about 8 months later about to register its 200 million user. Web 2.0 (my 5th Big Bang of the Internet) must be for real, but why has FaceBook been so successful? It must be fulfilling a social need. Without question when FaceBook when started in February 2004 it was aimed at college students, but today the fastest growing segment of its membership is the 35 year and older category. As social networking evolves other Internet activities might replace FaceBook, but for the time being the growth is mind-boggling. Please stay tuned for the 6th Big Bang!
 

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Google (Chrome browser) and Mozilla (Firefox browser) joined forces in the EU to complain about Microsoft’s marketing of Internet Explorer (IE) originally brought by Norwegian browser company Opera, and T3 filed an antitrust complaint in the EU against IBM for adversely impacting the mainframe market. Neither Microsoft nor IBM are strangers to antitrust actions in the US and EU, and these complaints are just chapters in very long novels. Both companies have had profound impacts on IT and the Internet, and Microsoft and IBM have an interesting history together which makes these EU complaints all the more interesting.

US v. IBM

From its origins with the 1890 Census Dr. Herman Holerith’s 80 column punch card (what I call the 1st Big Bang of the Internet) led to a company called IBM which had a monopoly on punch cards until its consent decree in the 1930s. Then in January 1969 the US Justice Department brought an antitrust action against IBM for monopolizing the computer market. At the time IBM sold its hardware, software, training, and all services as a bundled product. That is, if someone wanted the mainframe software they also had to purchase hardware, training, and everything else from IBM. So in the July 1969 IBM signed another consent decree to unbundle which led to the development of hundreds of companies for supplying software (like University Computing and Computer Associates), hardware (disk drives, memory, and the like). The antitrust trial was heard by a judge in New York for many years before the claims were dismissed when President Reagan came to office in 1981. Interestingly enough one of the lawyers who represented IBM in the trial was David Boies who represented the US government in the antitrust trial against Microsoft in 1998.

IBM and Microsoft Changed Computing Together

In 1981, the same year that the Antitrust suit was dropped by the US government, IBM launched its Personal Computer (PC) as most folks know (my 3rd Big Bang of the Internet). The IBM PC’s operating systems (OS) was a product call IBM-DOS (Disk OS) from an upstart company in Redmond, Washington called Microsoft (MS). When IBM introduced the PC this was a major departure for IBM in that this was IBM’s first product which used components made by others including the OS. There were a number of other PC’s on the market before 1981, many of which relied on an OS from Digital Research called CP/M (Control Program for Microcomputers) which was very popular. Apparently IBM could not reach an agreement with Digital Research, but did reach an accord with Microsoft. Although IBM wanted to restrict the use of IBM-DOS like Apple had done with it OS, but ultimately the Microsoft OS version (MS-DOS) was widely used on the clones (Compaq, HP, and many others) with the advent of the Phoenix Technologies BIOS (Basic Input Output System) that permitted all Intel based PCs to use MS-DOS.

Impact of IBM and Microsoft

Both companies have had a dramatic impact on IT and the Internet as is quite obvious, and these claims in the EU may chart the future of each company. Holerith’s 80 column punch and its progeny which started around 1890 last until the advent of the Graphic User Interface (GUI) which was popularized by Apple’s Lisa (from a license with Xerox) and Microsoft’s Windows products. Ironically one of the most significant events for the evolution of the Internet (my 4th Big Bang of the Internet) was in about 1995 when Microsoft started distributing IE which without additional charge. Microsoft’s IE became ubiquitous and the notwithstanding Microsoft’s anticompetitive business practices, the use of the Internet exploded. So we all should watch closely to see how the EU deals with the claims against IBM and Microsoft as the EU’s rulings will likely impact the future of IT and the Internet.
 

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No surprise at all that the New York Times reported that there has been a rash of mistrials because jurors are searching Google and Wikipedia about the parties, lawyers, and subject matter of the trials. As well, jurors are sending texts, emails, and Tweets (on Twitter) during trials. The traditional rules of trial require that judges admonish jurors to do no independent research about the dispute and to only rely on the evidence presented during trial and argument of the lawyers, and not discuss the case with anyone, even other jurors until deliberations. Actually in days gone by it was relatively impossible to stop jurors from doing their own investigations of going to crime scenes or reading about parties in newspapers, or watching television stories about trials in process. There was virtually no way to police jurors from discussing among themselves the issues in dispute before deliberations. But in today’s Web 2.0 world it’s not possible to restrict jurors at all.

Power of Cells

Without a lot of imagination it is easy to realize that our cell phones allow jurors to text, send emails, post blogs, and send Tweets, not to mention search the Internet while sitting in a jury box or room. So even if courts were to confiscate jurors’ cell phones during trial, surely when the jurors go home at night they can use their cells and the Internet to their hearts’ delight.

Evidence Present in Court

Lawyers spend most of their time in preparing for trial by examining trial witnesses in depositions and reviewing documents to determine what evidence will be presented during trial. The opposing parties do everything possible to restrict bad evidence under the rules of evidence and procedure, and it’s the job of judges to determine what evidence may be shown to jurors. Actually evidence is presented in trial by asking witnesses to identity and authenticate, and then it’s up to the jury to weigh all the evidence and the credibility of the witnesses who vouch for the evidence.

Accuracy of Information on the Internet?

One of the sharp realities of the Internet is that there is no assurance that just because information is found on the Internet that it’s true and accurate. This has been one of the challenges of the Wikipedia in that the articles are posted and updated by individuals who may, or may not want the truth to be portrayed. As a matter of fact many judges will not allow lawyers to cite Wikipedia as legal authority because of skepticism of the authenticity of the content. On the other hand just because Google, Yahoo!, or other search engine happens to push a particular link, pdf, or website to the top of its search list does mean that there is any truth to the content found at that url.

Where are we Headed?

It’s likely that the mystique of a jury trial where jurors only rely on evidence presented in the courtroom will never be the same. Without question the number of mistrials will only grow and cause great difficulty for the judicial system.
 

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This recent headline story about Google’s Operating System (OS) is significant as Google also announced, among other things, that it will also offer a phone service. It is interesting to observe Google’s growth and evolution in the Internet, but also now to see what other creative services it will offer. As pointed out in a recent blog, Google’s purchase of Postini a couple of years ago has propelled Google into the e-Discovery arena.

OS Competition

What a fascinating development that Google will offer an OS to compete with Microsoft and linux. Microsoft’s stumble with Vista and race to deliver System 7 potentially puts Google in the middle of the every user’s desktop/laptop. Apparently Google’s OS Android is being migrated to the Asus eeePC’s and will be marketed by year’s end.

Grand Central Phone Service

Google’s purchase last year of Grand Central was interesting since Grand Central offered its customers consolidated voice mail and text messages. Google phone service system assigns new phone numbers, so if you call a Google Grand Central number all other assigned phones will ring – home, office, and cell. If you don’t answer, a voice mail will be recorded and sent to you by email. In addition to free domestic calls there will be a charge for international calls, and the service will permit 6 way conference calls. Google says there will be no advertising associated with domestic calls.

Where is Google Going?

Good question, world Internet domination or what? It seems pretty clear that Google’s evolution has been characterized by one success after another. Notwithstanding failed projects, Google successful developments have been a poster child for the creative change. But many users do not bother to appreciate that Google is built on advertising and so by using Google’s various services Google users are providing Google more information about themselves. Desktop/laptop users have a great deal of personal and business information on their systems and when Google’s OS is applied is there any wonder that Google will use the data on the computer for some commercial purposes? Consider that Gmail searches email content and provides users advertisements accordingly, so if you send an email to a friend about going to the World Series, along-side the email the recipient will get hotel and travel ads. While users know and appreciate what they are getting, many individuals fail to realize that Google uses the content of Gmails and no doubt with the Google Grand Central product also uses the content of voice mails. Users should review Google’s terms of service and understand what they are getting for free!
 

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When DARPA started in 1962 as part of the US’s reaction to Russia launch of Sputnik in 1957 no one could have foreseen its evolution to 2009 with FaceBook, YouTube, and Google. A recent article questions whether we need a new Internet since the current hodgepodge is not designed for the future. Clearly there are people working on re-tooling the Internet, but how it will continue to evolve is interesting but unclear. The UK and US are busy trying to provide high speed Internet access to the every home, but the Spectrum changes for TV for HD broadcast will free up the old Spectrum and will provide new cell and Internet services unknown before.

4G is Coming

AT&T announced its plan to roll out 4G by 2011 which would replace the spotty 3G network now in use. AT&T, Verizon, and the other providers will use the Long-Term Evolution (LTE) wireless broadband which is supposed to handle downloads at 100 Mbps and uploads of 50 Mbps for every 20 MHz of spectrum…which will clearly change the way we operate today.

Do We Need a New Internet?

With the new high speed access in cell phones and at our desktops this should be a clue that it’s time to rethink the entire Internet structure. Maybe the UK and US plan for broadband access to every home will be revised based on 4G, and surely there will be an evolution in desktop computing. Not just that Microsoft and Open Source developers will offer new operating systems or browsers, but rather a major transformation about how technology is used. When in graduate school in 1972 I took a course on the computer as a public utility which was an interesting idea at the time…however it does not look like that ever happened. However the juxtaposition of 4G with the Internet may require a whole new approach to what how we operate. This should be an interesting evolution for the Internet…not Web 2.0 or Web 3.0, rather maybe Internet 2.0.

I welcome comments on this Blog.
 

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Google recently starting promoting a new service App they call Google Message Discovery which creates a new, huge change for e-Discovery. This service uses Postini which provides email filtering for hundreds of companies. When Google acquired Postini in 2007 many wondered what the heck’s going on? How did email filtering services fit in to the Google game plan? At a flat $45 per user per year for up to 10 years without additional costs for storage, this new service App creates a cloud email service that will likely have a monstrous impact on e-Discovery.

How does it work?

With no new costs to users subscribers merely employ the Google Message Discovery that stores all emails and attachments on Google’s servers. Users may establish retention periods for different categories of email users and groups. The process is built to provide support for litigation hold and legal review. Searches are easy and allow most anyone to review emails and attachments without the need for any sophisticated proprietary e-Discovery software technologies. Also the cost to store e-Discovery email and attachments will be fixed.

Of Course There are Issues

Google Message Discovery seems to be great for managing email going forward, but legacy emails still need to be managed and will be litigated for some time to come. It also remains to be seen how the courts will deal with attorney-client privilege issues, confidentiality of intellectual property, and a myriad of other evidence issues.

What’s the Impact on e-Discovery?

Without question Google’s new service may be the greatest change on email discovery since courts finally realized that 95% of all information is electronic and started requiring parties to deal with electronic evidence. What makes this new service so extraordinary is that there is a fixed cost, no new hardware or software required, and litigation support is built in. Google demonstrates again that it is so creative, but undoubtedly the Google Message Discovery will change the way courts will see email discovery.
 

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A recent annual report from Ponemon Institute and TRUSTe ranks the top four most trusted companies as American Express, eBay, IBM, and Amazon. However Google did not make the top 20, yet Yahoo! and Facebook made the top 20 for the first time. This makes for interesting news, but given the search traffic and size of Google it seems strange.

Google IS The Main Search Engine

The latest rankings of search engines shows that Google accounts for 63.1%, Yahoo! 20.5%, Microsoft 8.5%, Ask 4.2%, AOL 3.7%. Since Yahoo! and AOL are in the top 20 most trusted companies and account for only 12.2% of the searches, it makes the Google’s 63.1% seem even more peculiar that it is not in the top 20. Apparently the overwhelming majority of searches are made on a site that is not as trustworthy as Amazon.

Who’s Complaining about Google Now?

A group of academics and lawyers in Japan is demanding that Google stop making pictures of streets in Japan and delete all images already captured. You may not be aware that Google maps has driven vehicles around the world with cameras taking 360 degree pictures at ground level. Which is fine of course if you are looking at someone else’s property or planning a trip, but do people really want to have their homes displayed for the world to see? Another big question is, how is Google monetizing this? Perhaps this is partially the reason that Google is not one of the top trusted companies.
 

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Facebook claims to have more than 120 million active members and it is the 4th most trafficked site in the world. Of course there are many other popular social network sites including LinkedIn and MySpace to name a few, and only to make things more interesting a recent report indicates that more than half of MySpace visitors are 35 or older. Not much of a surprise that more mature individuals are getting into social networking as the Internet evolves.

What about the Content?

The terms of use vary between Facebook and other social network sites, but one common provision in the terms of use is that the users grant these sites a worldwide license to the user content that is irrevocable, perpetual, non-exclusive, transferrable, royalty free to use, copy, or just anything they want. Facebook also limits its liability to the amount of monies paid (if any) or $1000. Even users of Google Apps grant Google a license to their content.

Web Universal ID?

Facebook recently announced Facebook Connect which is an Universal ID that will allow its users to only logon once and then navigate to third party sites. Not much of a surprise that Google, Yahoo!, and MySpace are also developing similar technology. However, it seems that either few individuals don’t care or understand that they are providing Facebook, MySpace, Google, and the all the rest with licenses to their personal content. Regardless of what users understand the growth of the social networking websites will be based on increased data from their users’ content which will generate more online advertising revenues.
 

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A recent a Google announcement of Wiki services in Google to improve the search experience and allow users to rank search results has a number of individuals questioning exactly what’s going on. Just like most wiki projects, this project did not in a straight line. Apparently this new service came from a Google Wiki Search Team rather than Google Labs.

How does the new Google Wiki work?

The new Google Wiki will allow users to conduct searches, and then permits them to reorder or delete certain results. That way when users return for future visits to Google they get their search results in the order they want. Only the user has access to their own search results with its Google Wiki reorganization, so they can keep this private.

What’s really going on?

Some skeptics complain that Google’s run out of ideas and that they are fixing something that wasn’t broken. Maybe, but perhaps there’s more method to this madness – since users’ can control the priority of their search results, won’t Google have even more powerful advertising data about users? Google users are more likely to spend more time on Google, which can only help Google’s business. Privacy of personal information should be a major concern to Google users since Google will have a personal insight about search priority of search results, not to mention the deleted search results. Stay tuned for future developments!
 

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The saga of where Yahoo! is headed took another turn when Google decided that it was not worth the federal scrutiny for Google and Yahoo! to work together. Clearly to the two largest search engines working together meant an increase in revenue for Yahoo! Microsoft a spurned suitor made it clear that it did not want Google and Yahoo! working together. As well, the Department of Justice (DOJ) has been reviewing this joint marriage since it was first announced.

How Did the Elections Impact the Cancellation?

Google’s decision to abandon the Yahoo! deal happened a few days after the election. However, Google CEO’s Eric Schmidt campaigned for President-Elect Obama, so one might have concluded that Google would have continued with this deal. In an unrelated event Thomas Barnett, Assistant AG for the Antitrust division of the DOJ, who was skeptical of the Google deal, resigned the day following Google’s decision to abandon the Yahoo! deal. What’s the message here?

What’s Going to Happen Now?

All indications are that Yahoo! has to do something for economical survival and maybe a new deal with Microsoft will be more appealing since the deal with Google ended. Google is the 800 pound gorilla in the search/ad business and everything it does to expand will continue to anticompetitive scrutiny, not unlike virtually every move that Microsoft makes leaves it subject to court scrutiny. However a deal between Microsoft and Yahoo! is anything but a sure thing since the DOJ will want to scrutinize any proposal that may be anticompetitive. As a matter of fact, a DC District Judge still gets reports about Microsoft’s compliance with the 2001 Antitrust Settlement.
 

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When Google purchased YouTube for $1.65B a few years ago there was in expectation that the site would be a money maker, not just a magnetic for video traffickers. Of course Google did not expect the troubled economy that we live in today nor that Viacom to file a $1B lawsuit for copyright infringement. Google’s new offering will allow YouTube users to purchase digital goods from Apple’s iTunes or Amazon.

AdSense for Games

Google also announced beta software called AdSense for Games which allows video, image or text ads to be placed at the start, end, or change of level for online games.

It’s About Advertising

Notwithstanding these complex economic times, recent estimates of global online advertising revenue are an astonishing $81.1B by 2011, and Google is obviously one of the greatest movers. Since the estimates of revenue from YouTube are a measly $200M for 2009, Google’s new sale of digital goods should significantly increase Google hope to generate $27B which they estimate. It’s also hard to image that Google’s 10th birthday will be in November and it is one of the richest companies in the world. In the meantime the US government doesn’t know what to do about Google proposed advertising partnership Yahoo! so that deal is now on hold. We all need to stay tuned, but be assured Google will generate more data about visitors to their kingdom which clearly translates into ad revenue.
 

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