Nov 8 2010

Quotable Calacanis 2010

Jason Calacanis is an outspoken and unfiltered entrepreneur. Calacanis founded Mahalo, co-founded Weblogs, Inc. which later sold to AOL, co-founded The LAUNCH conference, host of This Week in Startups, founder of Open Angel Forum. Calacanis is famous for his industry rants on Jason’s List mailing list, most recently ranting about Facebook privacy mishap, the lack of commitment from Generation Y, and pay to pitch outfits. Over the last year I have collected a few choice quotes from Jason Calacanis blog posts, mailing list, and podcast. If you want more Jason Calacanis quotes be sure to take a look at the Quotable Calacanis 2009.

These people come here, they are brilliant. they want to start companies here and we kick them out after college. Or we don’t let them come to college to begin with because they might be terrorist. You know what, I take one terrorist for every 10,000 brilliant entrepreneurs that come to the country, I’ll literary will. I’ll take that risk. And if they are in this country they are more easy to catch than if they are in that country.
This Week in Startups #88

Patents are like nuclear weapons, you never use them but they are nice to have because if you have them people tend to not invade into your country because they are scared of those being dropped on them.
This Week in Startups #88

If you can afford to have the unjustifiable, then you’ve made it. It’s unjustifiable to have a jet. There is no reason to have it unless you are a president or CEO of a very large corporation.
This Week in Startups #72

Wining is altruism. Wining is the best thing you can do for the world. When you win then you can do exciting things to change humanity
the most greatest influences in our society, ultimate when history books are written, are going to be the billionaires that are going to give their net worth to solve very big problems.
This Week in Startups #72

Facebook and Twitter have users. Apple has customers. The difference? Customers give you their credit card number.
Yojimbo!

Winning is altruism, that’s the most beautiful thing you can do for somebody in the world is win!
This Week in Startups #65 Global Meetup

Power never stops shifting, and technology is making it shift faster.
Jason’s List: A Quick Sumner Update July 12, 2010

Look up smarmy in the Web 2.0 dictionary and it redirects to Zuck’s Wikipedia page.
Jason’s List for March 6, 2010

Zuckberg is everything that is wrong with the second generation of the internet: greed and a lack of empathy for internet users.
Jason’s List for March 6, 2010

Participation means nothing, your fulfillment means nothing, nobody care if you are fulfilled, nobody cares if you participated.  You were lied to.  There is no trophy in life for participation, except your tombstone.
This Week in Startups #47

If you don’t get your shit together Generation Y, it’s over for you. Your standard of living is going to suck cause you know what, your mom and dad are going to die and you know what you are going to have left, nothing, because they mortgaged their houses and they got a bunch of cars and went on  big fancy vacations and you get no inheritance Generation Y and you are not hirable.  So you are going to fail and you’ll have nothing in life.
This Week in Startups #47

I think Mark Zuckerborg is everything that is wrong with technology today.
TWiST #43 with Andy Smith

This is the the thing that people don’t realize about events, doing good events is as much about how is there as who is not there.
TWiST #43 with Andy Smith

VCs do me a favor if you are working with an entrepreneur, the three most annoying things you can do: number one is to ask about China, number two is to ask about Google, and number three is ask for the deck and the documents for the board meeting two weeks before hand.
TWiST #37 with Phil Kaplan

If you are not annoying some people, you are probably not doing a good job as an entreprenuer.
TWiST #37 with Phil Kaplan

The biggest mistake most new players make at poker is overplaying their hand. They spend so much time thinking of the ways they can win that they forget all the ways they can lose.
The Big Game, Zuckerberg and Overplaying your Hand

Zuckerberg is clearly the worst thing that’s happened to our industry since, well, spam.
The Big Game, Zuckerberg and Overplaying your Hand

People are creating fan pages on Facebook and then paying Facebook to send them traffic. Let me explain this one more time: You’re PAYING Mark Zuckerberg money to send traffic to HIS SITE.
The Big Game, Zuckerberg and Overplaying your Hand

I feel that the law is a way for stupid people getting education about reality it’s the lowest form of education we have you can go to college or the cops can pick you up.
TWiT 248: Drowning In Connectivity

The most frustrating part is not losing a great person–which happens–but rather watching someone with promise set their career back five years in order to have their salary jump ahead by three years.
Red, Jackson, Gen Y & Loyalty

It’s not easy being me. I’ve got a version of tourette’s where instead of yelling obscenities at inappropriate times, I say something brutally honest without regard to my reputation or the other person’s feelings.
Red, Jackson, Gen Y & Loyalty

If you put yourself above the team, you’re out. If you think your “get” is more important than the team’s, you’re out. If you leave after a year, you don’t get a ticker-tape parade and you don’t get celebrated.
Red, Jackson, Gen Y & Loyalty


Oct 27 2010

Random Thoughts October 2010

No explanation required, here are some random thoughts that occurred to me during the past month. These ideas were either to long to force into 140 character limit of Twitter but not fully develop to belong on their own post.

In the computer world, Bill Gates will always be remembered for Windows and the blue screen of death. Now that he has moved his attention to education and health care such as vaccines, a blue screen of death in these fields will can really cause someone dying.

If your enemies enemies are your friends, then it is to Microsoft’s interest to see Facebook get into the search space. It makes sense that Microsoft would pay a ridiculous amount of money for the tiniest fraction of Facebook just to see Facebook’s value go through the roof and branch into search, ads, mobile, etc.

I just started noticing people I follow on Twitter start using a new service to take and share their pictures taken from a mobile device. There are already a ton of other services such as Twitpic, Facebook, Flickr, Mobile Me, etc. I consider myself an early adopter, but I think there is a new category of adopter, the “I’ll try everything adopter.” There is a bunch of folks that suffer from the New and Shiny Syndrome where they must try every single new product or service they hear about. They all rave how much better that new product is on Facebook and Twitter for a week and then the herd moves on to the next new and shiny thing.

Every year there are a few companies that everybody wants to work for. It has been reported in many news outlet that there is a micro-brain drain at Google as engineers are migrating to Facebook. Zynga has also seen a tremendous growth and has been attracting talented developers, designers, and engineers. Both Facebook and Zynga are already large establish companies. If you are looking for the next breakout company I think you should look into Second Market. Second Market is building a marketplace for employee stock to private companies, Second Market is building a new market and perhaps a new industry. Second Market is has the potential to eventual be at a level to create or move markets.

Microsoft is anywhere between 5-10 years behind current market leaders in social, search, mobile, internet television, digital music, etc. They only consumer technology that they have a leg up on the competition is gaming with its XBox console system. As Microsoft keeps missing each industry boat in the consumer space, Microsoft more and more starts to resemble a company that only sells to large companies. For example, it took Microsoft a long time to get the security in Windows OS right (from XP to Vista to Windows 7) and all along the missed the mobile as a platform.

Twitter and Facebook need to come out with a year-end zeitgist for 2010. Google has been releasing zeitgists for each year since 2001, see the Google Zeitgist Archives. From Twitter I want to know what event was the most tweeted about, what was the hottest trending topic for the year, and a graph of the number of tweets throughout the year. From Facebook I want to know how many likes does it take to reach the center of a Tootsie Roll Pop, who do they sell private personal data to the most, if they fixed the broken fence that let out all those sad malnourished cows.


Oct 25 2010

US Patent: Virtual Currency

Zynga is one of the fastest growing social gaming companies. Zynga is the maker of compulsion loop filled social games such as FarmVille, CafeWorld, and Mafia Wars. These games have proved to be like crack for people bordering on obsessive-compulsive disorder. Now Zynga has patent the novel idea that has been around for decades of virtual currency. Zynga’s file to patent Virtual Playing Chips in a Multiuser Online Game Network. They claim that real money can be exchanged for virtual currency. The virtual currency can be used to purchase virtual goods between any two users. A user can be credited or debited virtual goods based on the outcome of events in games. The virtual currency can’t be exchanged back to legal money.

There are, and have been for a long time, games that thrive because of the virtual economy built into the game. Games such as Second Life and World of Warcraft, which have been released since 2003 and 2004 respectively, depend on virtual currency to a large degree if you want to get far in the game quick. Within these games you can virtually work and earn currency or simply buy in-game money to buy virtual property such as a house or armor or whatever you like. The maker of Second Life have gone as far as to name their currency after themselves, the Linden Dollars. According to Wikipedia, in 2009 the Second Life economy grew to to half a billion dollars!

Outside video games, virtual currency has been used in real life scenarios such as at amusement parks and or places like Chuck E. Cheese’s or Dave & Buster’s. Chuck E. Cheese’s has game chips that you purchase with real legal tender while Dave and Buster’s uses smart cards to debit and credit in-store currency. In both franchises, the in-store currency can be used to play games priced using the in-store virtual currency. Two users can exchange and gift the in-store currency and based on the results of such game you win points that can be used to purchased goods.

All of their claims have been around for years and have been implemented in a variety of systems for years. Another real life example is iTunes. At most retailers, people can purchase iTunes gift cards. The virtual value that can be redeemed from a given iTunes gift card is usually given at a rate of $1 iTunes dollar to $1 real dollar. But some retailers, such as Costco has rates of $1 iTunes dollar to less than $1 dollars. The iTunes gift card will be used to credit a user with some amount of value which can later be used to redeem virtual goods such as songs, movies, and apps through iTunes, the online network application.

Outside of games that force you to tend to virtual crops for virtual money, in other words virtual share cropping, virtual currency has been used to control runaway inflation.


Oct 22 2010

Apple vs Andriod, History Repeating Itself

Philosopher George Santayana said that “those who do not study history are doomed to repeat it.” Steve jobs who lived through the Personal Computer Revolution is set to repeat Apple’s fortunes in the Smart Phone Revolution. With the introduction of the iPhone in 2007, Apple took the lead in a novel mobile device segment, the Smart Phone. Prior to 2007, there had been a number of business class phones that at best emulated the desktop user experience in a hand held device but non had the traction to change the cell phone landscape. By 2007, the cell phone technology had dramatically changed that Steve Jobs was able to pack more computing power in an iPhone that ever before and he revolutionized the mobile user experience with touch screens. Apple later took another significant evolutionary step in what we consider a smart phone platform when the iPhone SDK was released to developers and the iTunes app store was made available to consumers. With years ahead it’s nearest cell phone competitor such as Nokia, Motorola, or Microsoft, and key patents under their name, and thousands of apps in their online app store, most pundits would have thought that Apple’s market share would in smart phones would be firmly cemented.

If the iPhone ecosystem were a country, it would probably be a little like China with a strong authoritative central government, some limited free enterprise, and tight censorship. Apple has a tendency to dictate what the customer wants, for example, the common Apple mouse still has one button while a typical windows will have on average 3 buttons and a mouse wheel. Apple has never been an open platform. Apple’s close platform has always been it’s Achille’s heal but also core to how Apple designs it’s products. With the release of the first Macintosh, the first commercially successful personal computer, Apple develop a technical and marketing lead to it’s rival computer makers. With the help of IBM, an open architecture was developed that over time was standardized to the de facto personal computer, this architecture developed over time to the modern desktop which might include a Intel chip, Microsoft Windows OS, and other off the shelf components. A closed platform will always little footing to compete with an open one, especially when hundreds of vendors provided alternatives to fit every possible need and price. Overtime Apple’s market share dwindled to single digits. But even with a very narrow market share, Apple has learned to be profitable, it knows it can charge a premium for beautifully designed products that simply work more often than they are infected with viruses or fatal crashes.

Even being an active participant of the Personal Computer Revolution, and having a front row seat as Apple’s close platform lost market share, Steve Jobs is using the same closed platform playbook with the iPhone and iPad product lines. This time, instead of IBM, Google is leading the charge with an open alternative to Apple’s iPhone. Google’s Android has been picked up by a large number of phone makers. There is a wide variety of Android phones in the market aimed a different consumers as opposed to the two models (iPhone 3GS and iPhone 4) of iPhone currently available from Apple. Google claims that at least 200,000 Android phones are activated a day. It is clear that history will repeat itself, and Android will eat Apple’s lunch, or at least take it’s market dominance. With market share comes developer’s mind share.

Apple has been previously before lit the fuse the set off a technological revolution. It first did it with the Macintosh which sparked the Personal Computer revolution and it has done it again with the iPhone with the smart phone industry. In both situations, Apple held a lead over it’s competitors but gave way because of it’s closed platform. In having a tight and stringent control over the iPhone, Steve Jobs has conceded market share to the Android platform.


Oct 20 2010

Facebook Was My Idea

Facebook wasn’t my idea necessarily, I’m just borrowing Microsoft’s Windows 7 ad campaign to make the point that most of Facebook’s features are not original to Facebook. And as such, most features in Facebook are borrowed, lifted, cut and pasted, inspired, and based on features from other sites. Flash-based games, image sharing, status updates, location-based check-ins, friending, etc. are all features that have made other social oriented sites successful, such as Pogo with Flash-based games, Flicker with image sharing, Twitter with status updates, and Foursquare with location-based check-ins, and on and on. Facebook is a hybrid of every successful feature developed, tried, and tested by other successful websites and web applications. Facebook is the Frankenstein of social networking sites, put together from the features of others sites.

Facemash, A website created by Zuckerberg prior to Facebook, was a clone of Hot-Or-Not specifically for Harvard students. But using his trademark of abusively, forcefully, and willfully opting user into options that they would not otherwise choose, Facebook used unauthorized pictures of Harvard students to seed his Facemash site.

Mark Zuckerberg’s true genius is that he has no ethics, in a another dimension or another time he could have easily been a Nigerian scammer or a Russian spammer. It is clear, from previous settled lawsuits and poorly planned privacy controls, Mark Zuckerberg can easily backstab a former founder and throw under the bus his whole user base.

Because Mark Zuckerberg has a skewed moral compass and as allegations of his character have been settled in court, it’s clear that it’s as easy for him to cheat a partner, hack into users accounts, sell out his users, obfuscate privacy settings, copy features, as it is for him to throw out code and re-execute on an idea. This is what Mark Zuckerberg is great at, to throw out a feature or code and try again and again and again even if users complain about backward compatibility, loss of privacy, excessive rights over user’s data.

So, the question that we can try to answer is, what feature will Facebook focus on next? To answer this, we need to survey the web application landscape and see what has been successful over the past year. Web search is an obvious space for Facebook to move into next. Facebook Credits and apps can lead to a healthy paid app market. Facebook has had a great success with it’s photo service, I could see them moving toward support for movies and videos. Facebook has also acknowledged that they are moving to provide a mobile platform, I can see them providing the social glue for mobile application as they have done for web applications. I the long run, I see Facebook as being as one of a few companies that can threaten Apple’s dominance over digital music. Groupon has been one of the hottest startups over this past year, maybe Facebook will get into social location base group coupons.

Most, if not all, of Facebook’s core features have been borrowed from other successful websites or services. Mark Zuckerberg has always taken a back seat to innovation but a driver seat into ramming features into users via opt-in settings. Mark Zuckerberg’s earliest website was a clone of a website popular at the time. As Facebook continues to evolve, what features do you think will be implemented in the social network?


Oct 19 2010

Cease and Desist Trademark Craziness

Let me first state that I am not a legal scholar but that doesn’t stop me from having my own opinions of legal case study, especially when it doesn’t make any common sense. That said, I think there is a lot of value in trademarks, just like there is some intrinsic value in copyrights and patents. But the use of trademarks, copyrights, and patents are a common good and like most common goods it falls victim to the tragedy of the commons. The tragedy of patents are it’s patent trolls. The tragedy of copyrights are these perpetual copyrights for works that were original derived from public works. The tragedy of trademarks is that you can say one sentence without infringement on someones trademark, or at least that is what the lawyers want you to think.

One of the most heavy handed and ill conceived use of trademark law was by Microsoft against Mike Rowe, a 12th grade student that owned and operated MikeRoweSoft.com. Microsoft based their 2004 trademark case in that MikeRoweSoft sounds like Microsoft and that this might confused consumers, maybe blind consumers.

More recently there have been too many unfounded trademark suits filed by large corporate entities against operators of small website operators. One recent case pits Facebook who filed suit against Teachbook.com, an online forum for teachers, for “misappropriating the distinctive BOOK portion of the Facebook’s trademark.” This makes no sense at all. Facebook has trademarked the term facebook, not book, but they claim that the book portion of the name is distinctive enough that they can sue another company that uses the term book in their domain name. This is a clear example of an overreaching use of trademarks. This also indicates that Facebook CEO Mark Zuckerborg intends to claim any domain of the form [\w|\d]*book. Teachbook is an online forum for teachers, not for FarmVille addicts. Teachbook does not in any direct way compete in the commercial space with Facebook.

Perhaps following Facebook’s legal precedent, it has been reported that eBay has issued a cease-to-exist to a website operator because the domain name ends with bay. The owner of theplayersbay.com posted the cease-to-exist, go kill yourself, which reads in part, “Arbitrary use of the word BAY in a domain is problematic if the connected website is used in association with a business making use of eBay or operating in the same sphere of business as eBay.” Again, some law firm is protecting consumers because thepalayersbay.com is confusingly similar to the giant auction website eBay.

Another similar case that grabbed my attention was of Matt Cooper, owner of Addroid.com. Which company would you think sent Mr. Cooper a cease and desist? No, not Google the maker of the Android mobile platform. No, not Motorola, the maker of the Droid branded phone. Yes, you guessed it, Lucas Arts! You see, George Lucas owns the trademark to Droid, a pay on the word android. From what I understand from his defense Mr. Cooper claims that the term Addroid is a plan on the general term Android, and does not infringe on Lucas Arts trademark droid.

I want to trademark the ampersand (&) symbol so that I could file a trademark infringement to all law firms with names of the form Dumb Dumber & Dumbest. That said, I have to acknowledge that there is value in protecting your trademarks, as well as copyrights and patents. But the legal cases listed here are not executed in good faith of trademark laws. I believe that trademark laws, much like any legal code, is a public good that if abused by loopholes, bullying tactics, or partiality hurt people’s faith in those laws.