Microsoft Battles Google by Hiring Political Brawler Mark Penn

SEATTLE — Mark Penn made a name for himself in Washington by bulldozing enemies of the Clintons. Now he spends his days trying to do the same to Google, on behalf of its archrival Microsoft.

Since Mr. Penn was put in charge of “strategic and special projects” at Microsoft in August, much of his job has involved efforts to trip up Google, which Microsoft has failed to dislodge from its perch atop the lucrative Internet search market.

Drawing on his background in polling, data crunching and campaigning, Mr. Penn created a holiday commercial that has been running during Monday Night Football and other shows, in which Microsoft criticizes Google for polluting the quality of its shopping search results with advertisements. “Don’t get scroogled,” it warns. His other projects include a blind taste test, Coke-versus-Pepsi style, of search results from Google and Microsoft’s Bing.

The campaigns by Mr. Penn, 58, a longtime political operative known for his brusque personality and scorched-earth tactics, are part of a broader effort at Microsoft to give its marketing the nimbleness of a political campaign, where a candidate can turn an opponent’s gaffe into a damaging commercial within hours. They are also a sign of the company’s mounting frustration with Google after losing billions of dollars a year on its search efforts, while losing ground to Google in the browser and smartphones markets and other areas.

Microsoft has long attacked Google from the shadows, whispering to regulators, journalists and anyone else who would listen that Google was a privacy-violating, anticompetitive bully. The fruits of its recent work in this area could come next week, when the Federal Trade Commission is expected to announce the results of its antitrust investigation of Google, a case that echoes Microsoft’s own antitrust suit in the 1990s. A similar investigation by the European Union is also wrapping up. A bad outcome for Google in either one would be a victory for Microsoft.

But Microsoft, based in Redmond, Wash., has realized that it cannot rely only on regulators to scrutinize Google — which is where Mr. Penn comes in. He is increasing the urgency of Microsoft’s efforts and focusing on their more public side.

In an interview, Mr. Penn said companies underestimated the importance of policy issues like privacy to consumers, as opposed to politicians and regulators. “It’s not about whether they can get them through Washington,” he said. “It’s whether they can get them through Main Street.”

Jill Hazelbaker, a Google spokeswoman, declined to comment on Microsoft’s actions specifically, but said that while Google also employed lobbyists and marketers, “our focus is on Google and the positive impact our industry has on society, not the competition.”

In Washington, Mr. Penn is a lightning rod. He developed a relationship with the Clintons as a pollster during President Bill Clinton’s 1996 re-election campaign, when he helped identify the value of “soccer moms” and other niche voter groups.

As chief strategist for Hillary Clinton’s unsuccessful 2008 campaign for president, he conceived the “3 a.m.” commercial that raised doubts about whether Barack Obama, then a senator, was ready for the Oval Office. Mr. Penn argued in an essay he wrote for Time magazine in May that “negative ads are, by and large, good for our democracy.”

But his approach has ended up souring many of his professional relationships. He left Mrs. Clinton’s campaign after an uproar about his consulting work for the government of Colombia, which was seeking the passage of a trade treaty with the United States that Mrs. Clinton, then a senator, opposed.

“Google should be prepared for everything but the kitchen sink thrown at them,” said a former colleague who worked closely with Mr. Penn in politics and spoke on condition of anonymity. “Actually, they should be prepared for the kitchen sink to be thrown at them, too.”

Hiring Mr. Penn demonstrates how seriously Microsoft is taking this fight, said Michael A. Cusumano, a business professor at M.I.T. who co-wrote a book about Microsoft’s browser war.

“They’re pulling out all the stops to do whatever they can to halt Google’s advance, just as their competition did to them,” Professor Cusumano said. “I suppose that if Microsoft can actually put a doubt in people’s mind that Google isn’t unbiased and has become some kind of evil empire, they might very well get results.”

Nick Wingfield reported from Seattle and Claire Cain Miller from San Francisco.

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The Neediest Cases: Disabled Young Man and His Protective Mother Deal With Life’s Challenges

Though he would prefer to put his socks on without his mother’s help, Zaquan West, 25, does not have a choice.

Michelle V. Agins/The New York Times

Joann West is a constant caretaker for her son, Zaquan. Though Ms. West works as a receptionist, the family fell behind on rent.

For the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.

Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.

2012-13 Campaign

Previously recorded:

$3,104,694

Recorded Thursday:

$137,451

*Total:

$3,242,145

Last year to date:

$2,862,836

*Includes $596,609 contributed to the Hurricane Sandy relief efforts.

The Youngest Donors

If your child or family is using creative techniques to raise money for this year’s campaign, we want to hear from you. Drop us a line on Facebook or talk to us on Twitter.

A genetic disorder has encumbered Mr. West all his life, but he has needed assistance with this particular task since only last year. In November 2011, he had surgery to remove a cancerous tumor on his left thigh that was as big as a football, but he was left less flexible.

“He doesn’t do well with disability, with the label,” his mother, Joann West, 55, said. “He doesn’t tell people that he has a disability. If they can’t see it, they just can’t see it.”

When her son was 13 months old, Ms. West learned he had neurofibromatosis, a disorder that causes tumors to grow on the nerves and, in some cases, to infringe on vital organs, or as was the case last year, to become malignant. It also creates large bumps on the skin known as nodules.

At ages 5 and 8, Zaquan had operations to remove neurofibromatosis clusters that were eating away at his left hip bone. The disease has left his left leg a few inches shorter than his right. After each operation, he had to relearn how to walk.

Because of his physical disability, he was placed in a special-education class at school and given the same homework every night, his mother said.

“I advocated for him,” Ms. West said. “I kept fighting, because he was no dummy. He was physically impaired, not mentally. I went out of my way to try to give him a better life. The system would have failed him more than it did if I hadn’t stepped in.” Her efforts led to his being moved from a special-education classroom to a regular one in second grade.

Ms. West, a single mother, acknowledges that her protective instincts made her a very controlling parent, and she did not allow Zaquan out of the house much, which limited his friendships.

“I was afraid for him,” she said. “The streets, they don’t care about your disability.”

When Mr. West entered high school, it was the first time he had truly been away from his mother’s watchful eyes. He began skipping class, often going to the park or wandering their Bedford-Stuyvesant, Brooklyn, neighborhood with truant friends. He eventually dropped out of school.

“It was just me being out on my own and making my own choices,” Mr. West recalled.

Though she did not agree with her son’s decisions, Ms. West said that his need to explore was in some ways a result of her actions. “At a point, I stepped back,” she said, “to allow him to do certain things on his own and do what he wanted to do.”

In 2007, a couple of years after he dropped out, Mr. West joined the Door, an organization focused on empowering young people to reach their potential. There, he obtained his high school equivalency diploma.

Today, Mr. West is job hunting so that he can help pay his and his mother’s expenses.

But paying the monthly bills has become a struggle, Ms. West said, in part because of a recent change in her budget. In August, after an increase in income, they stopped receiving $324 a month in food stamps. The additional income did not cover all their expenses, however, and Ms. West eventually fell behind in the rent on their apartment.

Ms. West, who has been employed in various administrative jobs, currently works as a receptionist for Howie the Harp Advocacy Center, an agency that provides employment help to people with psychiatric disabilities. Her annual salary is about $25,000 before taxes. Her son receives $646 in Social Security disability benefits. After the family’s food stamps were cut off, Mr. West applied individually, and he now receives $200 in food stamps each month.

With the addition of Mr. West’s disability benefits and food stamps, their net monthly income is $2,213. Their contribution for the Section 8-subsidized apartment Ms. West has lived in for the past 30 years is $969.

Knowing she was in need of help, Ms. West’s boss told her about the Community Service Society, one of the organizations supported by The New York Times Neediest Cases Fund. And the society drew $1,598 from the fund to cover her debt.

Ms. West remains a constant caretaker for her independent-minded son, who, she says, has come to accept her help grudgingly. She says that even if they are not on speaking terms after a disagreement, she is there to lend him a hand.

Both are continuing to deal with the inevitable challenges: Mr. West is awaiting word from doctors on whether a new growth in his lungs is cancerous. But one of his greatest assets, given all that he has overcome, is that he is comfortable in his own skin.

“I’m just always going to be me,” he said, “so why deal with somebody else?”

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Microsoft Battles Google by Hiring Political Brawler Mark Penn

SEATTLE — Mark Penn made a name for himself in Washington by bulldozing enemies of the Clintons. Now he spends his days trying to do the same to Google, on behalf of its archrival Microsoft.

Since Mr. Penn was put in charge of “strategic and special projects” at Microsoft in August, much of his job has involved efforts to trip up Google, which Microsoft has failed to dislodge from its perch atop the lucrative Internet search market.

Drawing on his background in polling, data crunching and campaigning, Mr. Penn created a holiday commercial that has been running during Monday Night Football and other shows, in which Microsoft criticizes Google for polluting the quality of its shopping search results with advertisements. “Don’t get scroogled,” it warns. His other projects include a blind taste test, Coke-versus-Pepsi style, of search results from Google and Microsoft’s Bing.

The campaigns by Mr. Penn, 58, a longtime political operative known for his brusque personality and scorched-earth tactics, are part of a broader effort at Microsoft to give its marketing the nimbleness of a political campaign, where a candidate can turn an opponent’s gaffe into a damaging commercial within hours. They are also a sign of the company’s mounting frustration with Google after losing billions of dollars a year on its search efforts, while losing ground to Google in the browser and smartphones markets and other areas.

Microsoft has long attacked Google from the shadows, whispering to regulators, journalists and anyone else who would listen that Google was a privacy-violating, anticompetitive bully. The fruits of its recent work in this area could come next week, when the Federal Trade Commission is expected to announce the results of its antitrust investigation of Google, a case that echoes Microsoft’s own antitrust suit in the 1990s. A similar investigation by the European Union is also wrapping up. A bad outcome for Google in either one would be a victory for Microsoft.

But Microsoft, based in Redmond, Wash., has realized that it cannot rely only on regulators to scrutinize Google — which is where Mr. Penn comes in. He is increasing the urgency of Microsoft’s efforts and focusing on their more public side.

In an interview, Mr. Penn said companies underestimated the importance of policy issues like privacy to consumers, as opposed to politicians and regulators. “It’s not about whether they can get them through Washington,” he said. “It’s whether they can get them through Main Street.”

Jill Hazelbaker, a Google spokeswoman, declined to comment on Microsoft’s actions specifically, but said that while Google also employed lobbyists and marketers, “our focus is on Google and the positive impact our industry has on society, not the competition.”

In Washington, Mr. Penn is a lightning rod. He developed a relationship with the Clintons as a pollster during President Bill Clinton’s 1996 re-election campaign, when he helped identify the value of “soccer moms” and other niche voter groups.

As chief strategist for Hillary Clinton’s unsuccessful 2008 campaign for president, he conceived the “3 a.m.” commercial that raised doubts about whether Barack Obama, then a senator, was ready for the Oval Office. Mr. Penn argued in an essay he wrote for Time magazine in May that “negative ads are, by and large, good for our democracy.”

But his approach has ended up souring many of his professional relationships. He left Mrs. Clinton’s campaign after an uproar about his consulting work for the government of Colombia, which was seeking the passage of a trade treaty with the United States that Mrs. Clinton, then a senator, opposed.

“Google should be prepared for everything but the kitchen sink thrown at them,” said a former colleague who worked closely with Mr. Penn in politics and spoke on condition of anonymity. “Actually, they should be prepared for the kitchen sink to be thrown at them, too.”

Hiring Mr. Penn demonstrates how seriously Microsoft is taking this fight, said Michael A. Cusumano, a business professor at M.I.T. who co-wrote a book about Microsoft’s browser war.

“They’re pulling out all the stops to do whatever they can to halt Google’s advance, just as their competition did to them,” Professor Cusumano said. “I suppose that if Microsoft can actually put a doubt in people’s mind that Google isn’t unbiased and has become some kind of evil empire, they might very well get results.”

Nick Wingfield reported from Seattle and Claire Cain Miller from San Francisco.

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World Briefing | Europe: Greece: Oligarch Under Arrest Expected to Be Moved to Prison

A Greek magistrate on Friday ordered that the oligarch Lavrentis Lavrentiadis, who was arrested Thursday on charges of embezzlement and fraud, be remanded to custody after visiting the 40-year-old businessman in an Athens hospital. Mr. Lavrentiadis, the former majority stakeholder in Proton Bank, which is alleged to have issued $900 million in bad loans to keep other businesses afloat, is the focus of an investigation that has highlighted concerns about deep-rooted corruption and crony capitalism in Greece. He was admitted to the hospital on Thursday night after citing health problems when the police visited his home in an affluent Athens suburb. Mr Lavrentiadis was expected to be transferred to the capital’s high-security Korydallos prison on Saturday after his request to be admitted to a psychiatric hospital was turned down and he spent Friday night in police custody.

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The New Old Age Blog: Hospital Alarms Fail to Prevent Injury, Study Finds

When it comes to protecting older people from falls, it can take a long time to figure out what helps and sometimes an even longer time to take action against things that were supposed to help but don’t.

A case in point: the so-called safety rails on hospital and nursing home beds. Their hazards, as The New Old Age reported more than two years ago, are well documented. They are intended to keep sick, drugged or confused people from climbing or falling out of bed. What they actually do is make falls more dangerous; they also trap patients between the rails and the mattress until they asphyxiate, causing hundreds of deaths annually.

The Consumer Product Safety Commission is finally investigating these hazards, with findings due soon.

Alarms — sensors that alert aides or nurses when someone at risk of falling attempts to get out of bed or up from a chair or toilet — sound better, right? Lots of health care facilities thought so.

Use of these alarms has increased “over the past 10 or 15 years as the problems of physical restraints and bed rails became better known,” said Ronald Shorr, who directs geriatric research at the V.A. Medical Center in Gainesville, Fla. “This was the next wave in fall prevention.”

The trouble is, hospital bed alarms don’t appear to reduce falls, according to the study that Dr. Shorr just published in The Annals of Internal Medicine.

Lots of patients, of all ages, fall in hospitals, and about a quarter of those falls cause injuries. They also cost hospitals money, because Medicare will no longer reimburse facilities for treating injuries from falls that in theory shouldn’t have happened.

Though there aren’t statistics on the number of systems, it is rare these days to find a large hospital that doesn’t use alarms, in some cases built right into the beds.

Yet “their efficacy hadn’t been established,” Dr. Shorr told me in an interview. The few studies that reported reduced falls from alarms were small, lacked control groups, or didn’t continue for very long. Dr. Shorr and his colleagues set out to remedy those shortcomings.

Over 18 months, they documented falls among patients in 16 medical and surgical units, with a combined 349 beds, at Methodist Healthcare-University Hospital in Memphis, Tenn. Half those units were randomly designated “usual care.” In the other eight, the “intervention” units, Dr. Shorr and study coordinator Michelle Chandler held repeated education sessions to explain the alarms — in this case, flexible pads made by Bed-Ex and widely-used — and demonstrate their use in beds and on chairs and commode seats.

Ms. Chandler visited the intervention units daily — the staff started calling her “Mrs. Falls” — and even brought fresh alarm pads and help set them up to encourage their use.

The intervention worked, in that those units used the alarms far more often. But when the researchers tallied up the falls among the 27,672 patients (half of them over age 63) in these units — controlling for many variables, including not only demographic factors but staffing levels and psychotropic drug regimens — they found the alarms had no significant effect.

Patients in the units that used alarms more heavily fell just as often as patients in the control units that used alarms much less frequently. (The numbers: 5.62 falls per 1,000 patient-days, a measure of how many people spent how long in the hospital, versus 4.56 falls in the control units, not a statistically significant difference.)

There were no fewer injuries in the more-alarmed units, nor any less use of physical restraints.

There were likely higher costs, though. A Bed-Ex monitor and cables cost about $350 at the time, and each disposable sensor pad cost $23.

Why didn’t the alarms help? Dr. Shorr hypothesized that the staff developed what he called alarm fatigue. “How many times a week do you hear a car alarm go off?” he asked. “You become desensitized.”

But it is also possible, he said, that when the alarms sounded and the nurses scampered, “the patients who weren’t alarmed fell more often.”

My own 2 cents: If an alarm sounds when someone stirs, is any hospital or nursing home so well-staffed that someone can materialize within seconds? Does a staff become less vigilant when patients have alarms and are presumed – wrongly, it seems – to be safer?

Nursing homes also frequently use alarms, and while this hospital data might not apply in another setting, Dr. Shorr said his findings made him skeptical about their effectiveness there, too.

So we probably shouldn’t feel reassured about our elders’ safety when they are in a hospital, alarms or no alarms. Even younger people, recovering from surgery and feeling the effects of anesthesia or sedatives, can and do fall.

“The more eyes on your loved one, the better,” said Dr. Shorr. “And it’s best if they’re your eyes.”

---

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

Read More..

The New Old Age Blog: Hospital Alarms Fail to Prevent Injury, Study Finds

When it comes to protecting older people from falls, it can take a long time to figure out what helps and sometimes an even longer time to take action against things that were supposed to help but don’t.

A case in point: the so-called safety rails on hospital and nursing home beds. Their hazards, as The New Old Age reported more than two years ago, are well documented. They are intended to keep sick, drugged or confused people from climbing or falling out of bed. What they actually do is make falls more dangerous; they also trap patients between the rails and the mattress until they asphyxiate, causing hundreds of deaths annually.

The Consumer Product Safety Commission is finally investigating these hazards, with findings due soon.

Alarms — sensors that alert aides or nurses when someone at risk of falling attempts to get out of bed or up from a chair or toilet — sound better, right? Lots of health care facilities thought so.

Use of these alarms has increased “over the past 10 or 15 years as the problems of physical restraints and bed rails became better known,” said Ronald Shorr, who directs geriatric research at the V.A. Medical Center in Gainesville, Fla. “This was the next wave in fall prevention.”

The trouble is, hospital bed alarms don’t appear to reduce falls, according to the study that Dr. Shorr just published in The Annals of Internal Medicine.

Lots of patients, of all ages, fall in hospitals, and about a quarter of those falls cause injuries. They also cost hospitals money, because Medicare will no longer reimburse facilities for treating injuries from falls that in theory shouldn’t have happened.

Though there aren’t statistics on the number of systems, it is rare these days to find a large hospital that doesn’t use alarms, in some cases built right into the beds.

Yet “their efficacy hadn’t been established,” Dr. Shorr told me in an interview. The few studies that reported reduced falls from alarms were small, lacked control groups, or didn’t continue for very long. Dr. Shorr and his colleagues set out to remedy those shortcomings.

Over 18 months, they documented falls among patients in 16 medical and surgical units, with a combined 349 beds, at Methodist Healthcare-University Hospital in Memphis, Tenn. Half those units were randomly designated “usual care.” In the other eight, the “intervention” units, Dr. Shorr and study coordinator Michelle Chandler held repeated education sessions to explain the alarms — in this case, flexible pads made by Bed-Ex and widely-used — and demonstrate their use in beds and on chairs and commode seats.

Ms. Chandler visited the intervention units daily — the staff started calling her “Mrs. Falls” — and even brought fresh alarm pads and help set them up to encourage their use.

The intervention worked, in that those units used the alarms far more often. But when the researchers tallied up the falls among the 27,672 patients (half of them over age 63) in these units — controlling for many variables, including not only demographic factors but staffing levels and psychotropic drug regimens — they found the alarms had no significant effect.

Patients in the units that used alarms more heavily fell just as often as patients in the control units that used alarms much less frequently. (The numbers: 5.62 falls per 1,000 patient-days, a measure of how many people spent how long in the hospital, versus 4.56 falls in the control units, not a statistically significant difference.)

There were no fewer injuries in the more-alarmed units, nor any less use of physical restraints.

There were likely higher costs, though. A Bed-Ex monitor and cables cost about $350 at the time, and each disposable sensor pad cost $23.

Why didn’t the alarms help? Dr. Shorr hypothesized that the staff developed what he called alarm fatigue. “How many times a week do you hear a car alarm go off?” he asked. “You become desensitized.”

But it is also possible, he said, that when the alarms sounded and the nurses scampered, “the patients who weren’t alarmed fell more often.”

My own 2 cents: If an alarm sounds when someone stirs, is any hospital or nursing home so well-staffed that someone can materialize within seconds? Does a staff become less vigilant when patients have alarms and are presumed – wrongly, it seems – to be safer?

Nursing homes also frequently use alarms, and while this hospital data might not apply in another setting, Dr. Shorr said his findings made him skeptical about their effectiveness there, too.

So we probably shouldn’t feel reassured about our elders’ safety when they are in a hospital, alarms or no alarms. Even younger people, recovering from surgery and feeling the effects of anesthesia or sedatives, can and do fall.

“The more eyes on your loved one, the better,” said Dr. Shorr. “And it’s best if they’re your eyes.”

---

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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IHT Rendezvous: Damien Hirst Leaves Gagosian

Less than a year after the Gagosian Gallery gave Damien Hirst all 11 of its spaces around the world to show his spot paintings, word comes that the bad-boy British artist will no longer be represented by Gagosian, where he has shown on and off for 17 years.

“We wish him continued success for the future,’’ a statement issued by the gallery, confirming his sudden departure, said.

On Thursday, Science Ltd., Mr. Hirst’s company, told the Financial Times that the gallery owner  “Larry Gagosian and Damien have reached an amicable decision to part company,” adding that the artist would continue his relationship with the White Cube Gallery in London.  But the question remains whether Mr. Hirst will look for another gallery to show his work in New York, where he has a large number of big collectors.

Mr. Hirst has never been known for being monogamous, at least not when it comes to gallery representation. White Cube in London has also handled his work for years. In 2008 he snubbed both galleries, when Sotheby’s in London sold 223 of his new artworks. The sale, which was held just as the financial markets were heading for disaster, included dead animals – sharks, zebras, piglets and even a calf – floating in giant glass tanks of formaldehyde; cabinets filled with diamonds; and cigarette butts.  And paintings – spin paintings, dot paintings, paintings with butterflies pinned under glass. More than 21,000 visitors flocked to Sotheby’s on New Bond Street to see the work before the sale, which brought $200.7 million.

Ever the showman, he caused a sensation in 2007 at White Cube’s gallery in Mayfair when he showed a human skull cast in platinum and covered with 8,601 diamonds.  At the time the gallery said the artwork cost $23.5 million to make. During the five weeks that summer when it was on display in a small, blackened room at White Cube’s Mason’s Yard Space, crowds lined up with free timed tickets in hand to ogle the piece.  A nearby shop was doing a brisk business selling skull T-shirts and other Hirstian memorabilia. The skull was reportedly bought by a consortium of investors that included the artist himself. (It isn’t the first time he has invested in his own work.  Mr. Hirst and Jay Jopling, the owner of White Cube, bought about 12 works from Charles Saatchi, former advertising magnate, in 2003 for around $15 million.)

Over the years Mr. Hirst has amassed a large fortune.  The Sunday Times of London has called him the world’s richest artist, with a fortune estimated at about $346 million.

He is not the only artist to stray from Gagosian.  Last week while the contemporary art world converged on Miami Beach for the giant art fair there, David Zwirner, the Chelsea dealer, confirmed that in May he is planning to do a show of new paintings and sculptures by Jeff Koons, another superstar artist represented by Mr. Gagosian. Like Mr. Hirst, Mr. Koons has never shown any gallery loyalty. For decades he has also exhibited his work at the Sonnabend Gallery in Chelsea. Last week Rebecca Sternthal, a director of Gagosian who works with Mr. Koons said that Gagosian “still represents Jeff Koons.  He works closely with us and with Sonnabend.  In the past he has had shows in different galleries but we are still actively working with him and with his studio.’’

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Talks on Telecommunications Treaty Falter

DUBAI — Once-in-a-generation talks on a global telecommunications treaty were perched on the verge of collapse Thursday, with delegates seemingly unable to break an impasse over the most sensitive issue: whether to include the Internet in the document.

The United States was poised to withdraw support for the negotiations, being carried out under the auspices of a U.N. agency called the International Telecommunications Union, according to two people briefed on the situation who insisted on anonymity because of the delicacy of the talks. Several countries in Europe and elsewhere were expected to join the United States. A spokesman for the U.S. delegation declined to comment.

The United States insists that the Internet should not be included in the treaty, which deals with technical matters like connecting international telephone calls, because that could lead to curbs on free speech. A bloc of other countries, led by Russia, China and the host nation, the United Arab Emirates, has argued that the Internet should be mentioned in the treaty because Internet traffic travels through telecommunications networks.

The goal of the talks was to revise a document that was last updated in 1988, when the Internet was in its early stages. With more than 190 nations represented, agreement was never going to be easy, but the telecommunications union had insisted that it would operate by consensus when possible.

The U.S. delegation was apparently angered by developments in the wee hours Wednesday, when Russia and its allies succeeded in winning approval, by a mere show of hands, for a resolution that the United States and its supporters had interpreted as calling for the telecommunications union to gain important regulatory powers over the Internet.

Currently, the Internet is governed by a loose grouping of mostly private-sector organizations, rather than by governments. But at least one of these organizations, the Internet Corporation for Assigned Names and Numbers, operates under a contract from the U.S. government.

A resolution is not officially part of the treaty wording, and Russia and its allies had previously attempted to include a similar clause in the draft of the treaty. But under a compromise, it agreed this week to withdraw that proposal and settle for a resolution instead. Even that, however, does not appear to have been satisfactory to the United States and its supporters.

Delegations have also been divided over issues like cybersecurity and proposals that telecommunications companies should receive payment for carrying Internet traffic.

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Another Look at a Drink Ingredient, Brominated Vegetable Oil

James Edward Bates for The New York Times

Sarah Kavanagh, 15, of Hattiesburg, Miss., started an online petition asking PepsiCo to change Gatorade’s formula.

Sarah Kavanagh and her little brother were looking forward to the bottles of Gatorade they had put in the refrigerator after playing outdoors one hot, humid afternoon last month in Hattiesburg, Miss.

But before she took a sip, Sarah, a dedicated vegetarian, did what she often does and checked the label to make sure no animal products were in the drink. One ingredient, brominated vegetable oil, caught her eye.

“I knew it probably wasn’t from an animal because it had vegetable in the name, but I still wanted to know what it was, so I Googled it,” Ms. Kavanagh said. “A page popped up with a long list of possible side effects, including neurological disorders and altered thyroid hormones. I didn’t expect that.”

She threw the product away and started a petition on Change.org, a nonprofit Web site, that has almost 200,000 signatures. Ms. Kavanagh, 15, hopes her campaign will persuade PepsiCo, Gatorade’s maker, to consider changing the drink’s formulation.

Jeff Dahncke, a spokesman for PepsiCo, noted that brominated vegetable oil had been deemed safe for consumption by federal regulators. “As standard practice, we constantly evaluate our formulas and ingredients to ensure they comply with federal regulations and meet the high quality standards our consumers and athletes expect — from functionality to great taste,” he said in an e-mail.

In fact, about 10 percent of drinks sold in the United States contain brominated vegetable oil, including Mountain Dew, also made by PepsiCo; Powerade, Fanta Orange and Fresca from Coca-Cola; and Squirt and Sunkist Peach Soda, made by the Dr Pepper Snapple Group.

The ingredient is added often to citrus drinks to help keep the fruit flavoring evenly distributed; without it, the flavoring would separate.

Use of the substance in the United States has been debated for more than three decades, so Ms. Kavanagh’s campaign most likely is quixotic. But the European Union has long banned the substance from foods, requiring use of other ingredients. Japan recently moved to do the same.

“B.V.O. is banned other places in the world, so these companies already have a replacement for it,” Ms. Kavanagh said. “I don’t see why they don’t just make the switch.” To that, companies say the switch would be too costly.

The renewed debate, which has brought attention to the arcane world of additive regulation, comes as consumers show increasing interest in food ingredients and have new tools to learn about them. Walmart’s app, for instance, allows access to lists of ingredients in foods in its stores.

Brominated vegetable oil contains bromine, the element found in brominated flame retardants, used in things like upholstered furniture and children’s products. Research has found brominate flame retardants building up in the body and breast milk, and animal and some human studies have linked them to neurological impairment, reduced fertility, changes in thyroid hormones and puberty at an earlier age.

Limited studies of the effects of brominated vegetable oil in animals and in humans found buildups of bromine in fatty tissues. Rats that ingested large quantities of the substance in their diets developed heart lesions.

Its use in foods dates to the 1930s, well before Congress amended the Food, Drug and Cosmetic Act to add regulation of new food additives to the responsibilities of the Food and Drug Administration. But Congress exempted two groups of additives, those already sanctioned by the F.D.A. or the Department of Agriculture, or those experts deemed “generally recognized as safe.”

The second exemption created what Tom Neltner, director of the Pew Charitable Trusts’ food additives project, a three-year investigation into how food additives are regulated, calls “the loophole that swallowed the law.” A company can create a new additive, publish safety data about it on its Web site and pay a law firm or consulting firm to vet it to establish it as “generally recognized as safe” — without ever notifying the F.D.A., Mr. Neltner said.

About 10,000 chemicals are allowed to be added to foods, about 3,000 of which have never been reviewed for safety by the F.D.A., according to Pew’s research. Of those, about 1,000 never come before the F.D.A. unless someone has a problem with them; they are declared safe by a company and its handpicked advisers.

“I worked on the industrial and consumer products side of things in the past, and if you take a new chemical and put it into, say, a tennis racket, you have to notify the E.P.A. before you put it in,” Mr. Neltner said, referring to the Environmental Protection Agency. “But if you put it into food and can document it as recognized as safe by someone expert, you don’t have to tell the F.D.A.”

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Another Look at a Drink Ingredient, Brominated Vegetable Oil

James Edward Bates for The New York Times

Sarah Kavanagh, 15, of Hattiesburg, Miss., started an online petition asking PepsiCo to change Gatorade’s formula.

Sarah Kavanagh and her little brother were looking forward to the bottles of Gatorade they had put in the refrigerator after playing outdoors one hot, humid afternoon last month in Hattiesburg, Miss.

But before she took a sip, Sarah, a dedicated vegetarian, did what she often does and checked the label to make sure no animal products were in the drink. One ingredient, brominated vegetable oil, caught her eye.

“I knew it probably wasn’t from an animal because it had vegetable in the name, but I still wanted to know what it was, so I Googled it,” Ms. Kavanagh said. “A page popped up with a long list of possible side effects, including neurological disorders and altered thyroid hormones. I didn’t expect that.”

She threw the product away and started a petition on Change.org, a nonprofit Web site, that has almost 200,000 signatures. Ms. Kavanagh, 15, hopes her campaign will persuade PepsiCo, Gatorade’s maker, to consider changing the drink’s formulation.

Jeff Dahncke, a spokesman for PepsiCo, noted that brominated vegetable oil had been deemed safe for consumption by federal regulators. “As standard practice, we constantly evaluate our formulas and ingredients to ensure they comply with federal regulations and meet the high quality standards our consumers and athletes expect — from functionality to great taste,” he said in an e-mail.

In fact, about 10 percent of drinks sold in the United States contain brominated vegetable oil, including Mountain Dew, also made by PepsiCo; Powerade, Fanta Orange and Fresca from Coca-Cola; and Squirt and Sunkist Peach Soda, made by the Dr Pepper Snapple Group.

The ingredient is added often to citrus drinks to help keep the fruit flavoring evenly distributed; without it, the flavoring would separate.

Use of the substance in the United States has been debated for more than three decades, so Ms. Kavanagh’s campaign most likely is quixotic. But the European Union has long banned the substance from foods, requiring use of other ingredients. Japan recently moved to do the same.

“B.V.O. is banned other places in the world, so these companies already have a replacement for it,” Ms. Kavanagh said. “I don’t see why they don’t just make the switch.” To that, companies say the switch would be too costly.

The renewed debate, which has brought attention to the arcane world of additive regulation, comes as consumers show increasing interest in food ingredients and have new tools to learn about them. Walmart’s app, for instance, allows access to lists of ingredients in foods in its stores.

Brominated vegetable oil contains bromine, the element found in brominated flame retardants, used in things like upholstered furniture and children’s products. Research has found brominate flame retardants building up in the body and breast milk, and animal and some human studies have linked them to neurological impairment, reduced fertility, changes in thyroid hormones and puberty at an earlier age.

Limited studies of the effects of brominated vegetable oil in animals and in humans found buildups of bromine in fatty tissues. Rats that ingested large quantities of the substance in their diets developed heart lesions.

Its use in foods dates to the 1930s, well before Congress amended the Food, Drug and Cosmetic Act to add regulation of new food additives to the responsibilities of the Food and Drug Administration. But Congress exempted two groups of additives, those already sanctioned by the F.D.A. or the Department of Agriculture, or those experts deemed “generally recognized as safe.”

The second exemption created what Tom Neltner, director of the Pew Charitable Trusts’ food additives project, a three-year investigation into how food additives are regulated, calls “the loophole that swallowed the law.” A company can create a new additive, publish safety data about it on its Web site and pay a law firm or consulting firm to vet it to establish it as “generally recognized as safe” — without ever notifying the F.D.A., Mr. Neltner said.

About 10,000 chemicals are allowed to be added to foods, about 3,000 of which have never been reviewed for safety by the F.D.A., according to Pew’s research. Of those, about 1,000 never come before the F.D.A. unless someone has a problem with them; they are declared safe by a company and its handpicked advisers.

“I worked on the industrial and consumer products side of things in the past, and if you take a new chemical and put it into, say, a tennis racket, you have to notify the E.P.A. before you put it in,” Mr. Neltner said, referring to the Environmental Protection Agency. “But if you put it into food and can document it as recognized as safe by someone expert, you don’t have to tell the F.D.A.”

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Gadgetwise Blog: Tip of the Week: Webmail Attachments Made Easy

The “Attach a file” button in the window of your open Web-based mail message may make it seem like you have to navigate around your hard drive to find the file you want to send, but appearances might be deceiving.

In some Web browsers, both Yahoo Mail and Google’s Gmail allow you to drag files from your computer’s desktop right into the message window to upload them as file attachments. Yahoo has additional information on attachment management and Google has an illustrated example for Gmail.

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Russian Envoy Says Syrian Leader Is Losing Control

MOSCOW — Russia’s top envoy for the Middle East said Thursday that Bashar al-Assad’s government is losing both control and territory to rebel forces, and said “unfortunately, it is impossible to exclude a victory of the Syrian opposition” — the most clear indication to date that Russia sees Mr. Assad, a longtime strategic ally, as headed for defeat.

“We must look squarely at the facts, and the trend now suggests that the regime and the government in Syria are losing more and more control and more and more territory,” said Deputy Foreign Minister Mikhail Bogdanov, in remarks to Russia’s Public Chamber that were carried by Russian wire services.

Mr. Bogdanov also said that Russia is preparing to evacuate its citizens — a complex task, since for decades, Russian women have married Syrian men sent to study in Russia and returned home with them to raise families. It was the first time an official at Mr. Bogdanov’s level had announced plans for an evacuation, and it sent a message to Damascus that Russia no longer holds out hope that the government can prevail.

Russia is eager to protect its strategic interests in Syria, like a naval facility at the port of Tartus, and has been meeting frequently with opposition delegations, presumably laying the groundwork for a possible transition. In his remarks to the Public Chamber, a Kremlin advisory group, Mr. Bogdanov said he believed that half the Russian citizens living in Syria support the rebels.

“Moreover, some of the people coming here as part of opposition coalitions have Russian passports,” he said.

Russia has cast its stance on Syria as a principled stand against Western-led interventions — a passionate topic for President Vladimir V. Putin, who feels Russia was deceived into supporting a no-fly zone in Libya that served as cover for a military campaign. In recent days, Moscow has been adamant that its fundamental position has not changed.

For many months, the Russian authorities have resisted Western pressure on Moscow to persuade the Syrian leader to step down. Though Russia has said it supports the creation of a transitional government, it has been at odds with the West on whether Mr. Assad — and Iran — would have a voice in it. Mr. Bogdanov said on Thursday that Russia’s stance has been deliberately distorted in the Western news media, an effort “intended to weaken our influence” in the Middle East, and that third-party governments have strengthened rebel forces by providing weaponry.

“Massive supply of modern armaments have pushed the Syrian rebels to stake their hopes on force,” leading to “an acceleration of the spiral of violence,” he said.

Leonid Medvedko, a political analyst who covered Syria for Soviet news services, said officials have so far been reluctant to declare an evacuation of Russian citizens “because there are technical questions, political questions — because it will mean we are fully giving up Syria.”

“It is a humanitarian step, but each humanitarian step has a political meaning,” he said.

From the first, Russia has taken the view that Mr. Assad’s departure would usher in a long and chaotic process of fragmentation in Syria, and most experts this week said they were braced for the beginning of that process. Mr. Medvedko, the former journalist, said he expected Syria to cleave into four parts that would be home to distinct ethnic and religious groups, much as Yugoslavia did in the 1990s.

Fyodor Lukyanov, the editor of Russia in Global Affairs and head of an influential policy group, said that even if Mr. Assad leaves the country, his countrymen will keep fighting.

“The prevailing view is that it will be complete and desperate chaos,” said Mr. Lukyanov. “To remove Assad will not mean settlement of the Syrian conflict. You can remove him — I don’t know in which way — but what will you do to 300,000 Alawites? They will be fighting for their lives, not for power anymore.”

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The New Old Age Blog: The Gift of Reading

This is the year of the tablet, David Pogue of The Times has told us, and that may be good news for seniors who open holiday wrappings to find one tucked inside. They see better with tablets’ adjustable type size, new research shows. Reading becomes easier again.

This may seem obvious — find me someone over 40 who doesn’t see better when fonts are larger — but it’s the business of science to test our assumptions.

Dr. Daniel Roth, an eye specialist and clinical associate professor at the Robert Wood Johnson Medical School in New Brunswick, N.J., offered new evidence of tablets’ potential benefits last month at the annual meeting of the American Academy of Ophthalmology.

His findings, based on tests conducted with 66 adults age 50 and over: older people read faster (a mean reading speed of 128 words per minute) when using an iPad, compared to a newspaper with the same 10-point font size (114 words per minute).

When the font was increased to 18 points — easy to do on an iPad — reading speed increased to 137 words per minute.

“If you read more slowly, it’s tedious,” Dr. Roth said, explaining why reading speed is important. “If you can read more fluidly, it’s more comfortable.”

What makes the real difference, Dr. Roth theorizes, is tablets’ illuminated screen, which heightens contrast between words and the background on which they sit.

Contrast sensitivity — the visual ability to differentiate between foreground and background information — becomes poorer as we age, as does the ability to discriminate fine visual detail, notes Dr. Kevin Paterson, a psychologist at the University of Leicester, who recently published a separate study on why older people struggle to read fine print.

“There are several explanations for the loss of sensitivity to fine detail that occurs with older age,” Dr. Paterson explained in an e-mail. “This may be due to greater opacity of the fluid in the eye, which will scatter incoming light and reduce the quality of the projection of light onto the retina. It’s also hypothesized that changes in neural transmission affect the processing of fine visual detail.”

Combine these changes with a greater prevalence of eye conditions like macular degeneration and diabetic retinopathy in older adults, and you get millions of people who cannot easily do what they have done all their lives — read and stay connected to the world of ideas, imagination and human experience.

“The No. 1 complaint I get from older patients is that they love to read but can’t, and this really bothers them,” Dr. Roth said. The main option has been magnifying glasses, which many people find cumbersome and inconvenient.

Some words of caution are in order. First, Dr. Roth’s study has not been published yet; it was presented as a poster at the scientific meeting and publicized by the academy, but it has not yet gone through comprehensive, rigorous peer review.

Second, Dr. Roth’s study was completed before the newest wave of tablets from Microsoft, Google, Samsung and others became available. The doctor made no attempt to compare different products, with one exception. In the second part of his study, he compared results for the iPad with those for a Kindle. But it was not an apples to apples comparison, because the Kindle did not have a back-lit screen.

This section of his study involved 100 adults age 50 and older who read materials in a book, on an iPad and on the Kindle. Book readers recorded a mean reading speed of 187 words per minute when the font size was set at 12; Kindle readers clocked in at 196 words per minute and iPad readers at 224 words per minute at the same type size. Reading speed improved even more drastically for a subset of adults with the poorest vision.

Again, Apple’s product came out on top, but that should not be taken as evidence that it is superior to other tablets with back-lit screens and adjustable font sizes. Both the eye academy and Dr. Roth assert that they have no financial relationship with Apple. My attempts to get in touch with the company were not successful.

A final cautionary note should be sounded. Some older adults find digital technology baffling and simply do not feel comfortable using it. For them, a tablet may sit on a shelf and get little if any use.

Others, however, find the technology fascinating. If you want to see an example that went viral on YouTube, watch this video from 2010 of Virginia Campbell, then 99 years old, and today still going strong at the Mary’s Woods Retirement Community in Lake Oswego, Ore.

Ms. Campbell’s glaucoma made it difficult for her to read, and for her the iPad was a blessing, as she wrote in this tribute quoted in an article in The Oregonian newspaper:

To this technology-ninny it’s clear
In my compromised 100th year,
That to read and to write
Are again within sight
Of this Apple iPad pioneer

Caregivers might be delighted — as Ms. Campbell’s daughter was — by older relatives’ response to this new technology, a potential source of entertainment and engagement for those who can negotiate its demands. Or, they might find that old habits die hard and that their relatives continue to prefer a book or newspaper they can hold in their hands to one that appears on a screen.

Which reading enhancement products have you used, and what experiences have you had?

Read More..

The New Old Age Blog: The Gift of Reading

This is the year of the tablet, David Pogue of The Times has told us, and that may be good news for seniors who open holiday wrappings to find one tucked inside. They see better with tablets’ adjustable type size, new research shows. Reading becomes easier again.

This may seem obvious — find me someone over 40 who doesn’t see better when fonts are larger — but it’s the business of science to test our assumptions.

Dr. Daniel Roth, an eye specialist and clinical associate professor at the Robert Wood Johnson Medical School in New Brunswick, N.J., offered new evidence of tablets’ potential benefits last month at the annual meeting of the American Academy of Ophthalmology.

His findings, based on tests conducted with 66 adults age 50 and over: older people read faster (a mean reading speed of 128 words per minute) when using an iPad, compared to a newspaper with the same 10-point font size (114 words per minute).

When the font was increased to 18 points — easy to do on an iPad — reading speed increased to 137 words per minute.

“If you read more slowly, it’s tedious,” Dr. Roth said, explaining why reading speed is important. “If you can read more fluidly, it’s more comfortable.”

What makes the real difference, Dr. Roth theorizes, is tablets’ illuminated screen, which heightens contrast between words and the background on which they sit.

Contrast sensitivity — the visual ability to differentiate between foreground and background information — becomes poorer as we age, as does the ability to discriminate fine visual detail, notes Dr. Kevin Paterson, a psychologist at the University of Leicester, who recently published a separate study on why older people struggle to read fine print.

“There are several explanations for the loss of sensitivity to fine detail that occurs with older age,” Dr. Paterson explained in an e-mail. “This may be due to greater opacity of the fluid in the eye, which will scatter incoming light and reduce the quality of the projection of light onto the retina. It’s also hypothesized that changes in neural transmission affect the processing of fine visual detail.”

Combine these changes with a greater prevalence of eye conditions like macular degeneration and diabetic retinopathy in older adults, and you get millions of people who cannot easily do what they have done all their lives — read and stay connected to the world of ideas, imagination and human experience.

“The No. 1 complaint I get from older patients is that they love to read but can’t, and this really bothers them,” Dr. Roth said. The main option has been magnifying glasses, which many people find cumbersome and inconvenient.

Some words of caution are in order. First, Dr. Roth’s study has not been published yet; it was presented as a poster at the scientific meeting and publicized by the academy, but it has not yet gone through comprehensive, rigorous peer review.

Second, Dr. Roth’s study was completed before the newest wave of tablets from Microsoft, Google, Samsung and others became available. The doctor made no attempt to compare different products, with one exception. In the second part of his study, he compared results for the iPad with those for a Kindle. But it was not an apples to apples comparison, because the Kindle did not have a back-lit screen.

This section of his study involved 100 adults age 50 and older who read materials in a book, on an iPad and on the Kindle. Book readers recorded a mean reading speed of 187 words per minute when the font size was set at 12; Kindle readers clocked in at 196 words per minute and iPad readers at 224 words per minute at the same type size. Reading speed improved even more drastically for a subset of adults with the poorest vision.

Again, Apple’s product came out on top, but that should not be taken as evidence that it is superior to other tablets with back-lit screens and adjustable font sizes. Both the eye academy and Dr. Roth assert that they have no financial relationship with Apple. My attempts to get in touch with the company were not successful.

A final cautionary note should be sounded. Some older adults find digital technology baffling and simply do not feel comfortable using it. For them, a tablet may sit on a shelf and get little if any use.

Others, however, find the technology fascinating. If you want to see an example that went viral on YouTube, watch this video from 2010 of Virginia Campbell, then 99 years old, and today still going strong at the Mary’s Woods Retirement Community in Lake Oswego, Ore.

Ms. Campbell’s glaucoma made it difficult for her to read, and for her the iPad was a blessing, as she wrote in this tribute quoted in an article in The Oregonian newspaper:

To this technology-ninny it’s clear
In my compromised 100th year,
That to read and to write
Are again within sight
Of this Apple iPad pioneer

Caregivers might be delighted — as Ms. Campbell’s daughter was — by older relatives’ response to this new technology, a potential source of entertainment and engagement for those who can negotiate its demands. Or, they might find that old habits die hard and that their relatives continue to prefer a book or newspaper they can hold in their hands to one that appears on a screen.

Which reading enhancement products have you used, and what experiences have you had?

Read More..

Deal Professor: In Netflix Case, a Chance to Re-examine Old Rules

Netflix is in the Securities and Exchange Commission’s sights over a post on Facebook by Reed Hastings, its chief executive, saying that the video streaming company’s monthly viewing had reached a billion hours. Yet, the case is more convincing as an illustration of how the regulator clings to outdated notions of how markets work.

In July, Mr. Hastings posted three lines stating that “Netflix monthly viewing exceeded 1 billion hours for the first time ever in June.”

While his comments may have seemed as innocuous as yet another Facebook post about cats, for the S.E.C., it was something more sinister, a violation of Regulation FD.

Regulation FD was the brainchild of Arthur Levitt, a former chairman of the commission. During Mr. Levitt’s time, companies would often disclose earnings estimates and other important information not to the markets but to select analysts. Companies did so to preserve confidentiality and drip out earnings information gently to the markets, and in that way avoid the volatility associated with a single announcement.

For Mr. Levitt, this was heresy. He believed not only in disclosure, but in the principle that all investors should have equal access to company information. Regulation FD was the answer.

In general, Regulation FD says that when a public company gives material nonpublic information to anyone, the company must also publicly disclose that information to all investors. Regulation FD in that way prevents selective leaks and, according to the S.E.C., promotes “full and fair disclosure.”

It seems so simple. How can more disclosure be bad? But both public companies and investment banks argued that the rule would actually reduce the flow information, as companies, now forbidden from disclosing only to analysts, would simply choose not to release the information. And because analysts would no longer have that advantage in knowledge, their value would be harder to justify, resulting in fewer analysts. Stockholders would be worse off as less information was in the market.

The S.E.C. disputed these arguments, and Regulation FD went into effect over a decade ago.

Subsequent studies of Regulation FD’s effects have shown that the critics may have been right. One of the most-cited studies found that analyst coverage of smaller companies dropped. And since there was now less information in the market about these smaller companies, investors subsequently demanded a bigger premium to invest, increasing financing costs. Another study found that the introduction of Regulation FD increased market volatility because information was no longer informally spread. In fairness, some studies found different results, but the bulk of findings are that Regulation FD is at best unhelpful.

Despite these studies and companies’ complaints about the costs of compliance, the S.E.C. has stuck to the rule. Until the Netflix case, however, the agency appeared to try to keep the peace by seeking redress in only the most egregious cases.

In all, there have been only about a dozen Regulation FD cases since its adoption, including one against Office Depot in 2010, for which it was fined $1 million for hinting its earnings estimates to analysts. But while enforcement actions have been rare, it has required that companies fundamentally change the way they disclose information.

Then Netflix came along.

The S.E.C.’s case appears to be rest on much weaker grounds than previous ones involving Regulation FD. To make a Regulation FD claim, the agency must show the information was released privately and that it was material. But neither element seems certain here.

Mr. Hastings’s announcement that the milestone of one billion hours was achieved seems more like a public relations stunt than a disclosure of material information. And Netflix had previously said that it was close to this milestone, so followers knew it was coming.

But while it seems like this information was a nonevent, this post occurred as Netflix’s stock was beginning to rise, and by two trading days later, it had jumped almost 20 percent. While some may view this as proof of the post’s materiality, it is hard to read too much; Netflix shares can be volatile, and a Citigroup analysts’ report released during that time could have also moved the stock.

Then there is the issue of whether this was privately disclosed information.

Some have seized on this requirement to claim that the S.E.C. is in essence saying that Facebook is not a “public” Web site. This is laughable; after all, Mr. Hastings is popular — he has more than 200,000 subscribers to his Facebook account. It is certain that more people read this comment on Facebook than if it had been in an S.E.C. filing.

But the S.E.C.’s argument is likely to be more technical than saying Facebook is private. In a 2008 release on Web site disclosure, the S.E.C. asserted that a Web site or a blog could be public for Regulation FD purposes but only if it was a “recognized channel of distribution of information. ”

In other words, a public disclosure is not about being public but about being made where investors knew the company regularly released investor information.

So the S.E.C. is likely to sidestep the issue of Facebook’s “public” nature and simply argue that Netflix never alerted investors that Facebook was the place to find Netflix’s investor information. Mr. Hastings appeared to concede this, and in a Facebook post last week, he argued that while Facebook was “very public,” it was not where the company regularly released information. If this dispute goes forward, expect the parties to spend thousands of hours arguing about whether the post contained material information rather than whether Facebook is public.

But it all seems so silly and technical and shows the S.E.C.’s fetish of trying to control company disclosure to the nth degree. It’s easy to criticize the agency for not understanding social media, but I would argue that in trying to bring a rare Regulation FD enforcement action, it truly missed an opportunity. Rather than focus on technicalities that few people understand, it could have used this case to examine what it means to be public and how social media results in more, not less, disclosure.

If the idea behind Regulation FD is to encourage disclosure, then allowing executives to comment freely on Facebook and Twitter, recognizing them as a public space akin to a news release, is almost certain to result in more disclosure, not less, and reach many more people than an S.E.C. filing would. The agency’s position will only force executives to check with lawyers and avoid social media, chilling disclosure.

And this leads to the bigger issue. Regulation FD was always about principles of fairness that belied the economics of the rule. If the S.E.C. really wanted to encourage disclosure, then it might want to take a step back and consider whether after a decade, Regulation FD is worth all the costs. Perhaps shareholders would even prefer more disclosure on Facebook and fewer regulatory filings. I suspect they might, if it meant more information and generally higher share prices.

In any event, this case still has a way to go. Netflix disclosed only the receipt of a Wells notice, which meant the S.E.C. staff was recommending to the commissioners that an enforcement action be brought. It is now up to the commissioners to decide. Given the issues with this case, they may decide it isn’t worth it. It would still leave Netflix with substantial legal fees, but perhaps save the agency from another embarrassing defeat.

But while that may end the matter, it shouldn’t. The regulator could use the Netflix case to rethink its disclosure policies in light of not only the rise of social media but how the market actually works. After all, even the S.E.C. has a Twitter account these days.

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IHT Rendezvous: 50 Years of Fascination With Ravi Shankar

Ravi Shankar, who died on Tuesday at age 92, spent much of his adult life outside India, earning generations of fans in the United States and Europe, where he inspired musicians, sparked movements and won adulation.

On India Ink, our sister blog, Heather Timmons has culled the pages of The New York Times, which followed his career for more than 50 years.

“For nearly three decades, ever since his first tour of the United States and Europe in the 1956-57 season, Ravi Shankar has served as India’s unofficial ambassador for music,” Donal Henahan wrote. And that was in September 1985.

Read more of Heather’s post from the archives here, and read Allan Kozinn’s obituary of Ravi Shankar here.

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DealBook: U.S. and Britain Take Cooperative Approach on 'Too Big to Fail'

It is one of the thorniest problems hanging over the financial system: how should authorities deal with the collapse of a sprawling global bank to protect the financial system at large?

In an attempt to find ways to address this problem, regulators in the United States and Britain said on Monday that they were cooperating on measures that would be used to seize an ailing financial company that does a lot of business abroad.

The intent is to avoid the problems that occurred when Lehman Brothers failed in 2008. The unwinding of Lehman was complicated by the fact that it had substantial operations in London that were subject to British law. The same problem could recur because most of the largest American and British banks have major subsidiaries in each other’s countries.

In a new joint paper, the Bank of England and the Federal Deposit Insurance Corporation laid out their preferred strategy for handling such bank crashes.

“It’s great that these two organizations are pushing forward on it,” said Phillip L. Swagel, a professor at the University of Maryland’s School of Public Policy, who was assistant secretary for economic policy under Treasury Secretary Henry M. Paulson Jr. “If they do get it right, then, yes, ‘too big to fail’ has ended.”

“Too big to fail” is the label for the problem that confronts governments when a large bank is on its last legs. Officials want to avoid a future large taxpayer bailout of the bank, but letting it collapse could cause a run on the financial system. In 2008, Lehman was allowed to fail but American International Group was saved because its collapse was seen as too much for the system to bear.

Since the crisis, legislators in the United States and Britain have passed laws intended to give regulators ways to avoid either outcome. In essence, they aim to take control of the sick bank and keep it operating while inflicting losses on its shareholders and, if necessary, its creditors.

The paper from the Bank of England and the F.D.I.C. focused on one way to accomplish this. The relevant regulator would take control of the bank’s parent company, then embark on a restructuring. By saying they are focusing on the parent company, regulators hope to shape expectations in the market and minimize destabilizing uncertainty when a bank implodes. This approach, “will give greater predictability for market participants about how resolution authorities may approach a resolution,” the regulators wrote.

The strategy then aims to put a seized bank back on its feet. In most cases, the bank would be insolvent, meaning that losses had eaten all its equity. To right the bank, the regulator would take the parent company’s debt and turn it into enough equity to support the bank’s operations in the future.

But questions surround the strategy. The paper is little more than a commitment to cooperate. In other words, it does not give either regulator the power to reach into a foreign jurisdiction to restructure a bank. Some of the jurisdictional problems that hampered the Lehman bankruptcy could therefore recur.

Some analysts doubt regulators would use the tools in the heat of a crisis. Fearing financial instability, officials may balk at doing anything to harm the interests of creditors and opt for some form of bailout instead. “It’s about the courage to use those tools in the face of a panic,” said Mark A. Calabria, director of financial regulation studies at the Cato Institute.

Whether bank parent companies have the financial resources to contribute meaningfully to balance sheet repairs is also a question. JPMorgan Chase’s parent company, for instance, has $116 billion of long-term debt, which is 5 percent of the overall bank’s $2.3 trillion in assets. At Goldman Sachs, the percentage is much higher at 14 percent.

Regulators would have to decide on the appropriate amount of parent company debt. As a result, they might press some banks to strengthen the financial standing of their parent companies.

But banks may resist, saying that action would make it harder for them to produce reasonable returns. “They need to consider the burdens that would be placed on banks’ ability to provide credit for the global economy,” said David Schraa, regulatory counsel for the Institute of International Finance, an industry group.

Skeptics also say the measures laid out Monday may not be able to cope with the collapse of several large global banks at once. “The big problems we’ve seen are almost always systemic,” said Simon Johnson, professor at the MIT Sloan School of Management. “So, does it solve the core of the too-big-too-fail problem? No.”

Still, the American-British cooperation could, in theory, cover a large majority of foreign business done in the country’s banks. The five biggest American banks on average did 88 percent of their foreign activity in Britain, according to an F.D.I.C. presentation in July. “By and large, the same is true for U.K. companies,” Michael H. Krimminger, a partner with Cleary Gottlieb Steen & Hamilton, wrote by e-mail. “This approach would have been invaluable in 2008,” said Mr. Krimminger, whose previous job was general counsel at the F.D.I.C.

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Personal Health: When Daily Stress Gets in the Way of Life

I was about to give an hourlong talk to hundreds of people when one of the organizers of the event asked, “Do you get nervous when you give speeches?” My response: Who, me? No. Of course not.

But this was a half-truth. I am a bit of a worrier, and one thing that makes me anxious is getting ready for these events: fretting over whether I’ve prepared the right talk, packed the right clothes or forgotten anything important, like my glasses.

Anxiety is a fact of life. I’ve yet to meet anyone, no matter how upbeat, who has escaped anxious moments, days, even weeks. Recently I succumbed when, rushed for time just before a Thanksgiving trip, I was told the tires on my car were too worn to be driven on safely and had to be replaced.

“But I have no time to do this now,” I whined.

“Do you have time for an accident?” my car-savvy neighbor asked.

So, with a pounding pulse and no idea how I’d make up the lost time, I went off to get new tires. I left the car at the shop and managed to calm down during the walk home, which helped me get back to the work I needed to finish before the trip.

It seems like such a small thing now. But everyday stresses add up, according to Tamar E. Chansky, a psychologist in Plymouth Meeting, Pa., who treats people with anxiety disorders.

You’ll be much better able to deal with a serious, unexpected challenge if you lower your daily stress levels, she said. When worry is a constant, “it takes less to tip the scales to make you feel agitated or plagued by physical symptoms, even in minor situations,” she wrote in her very practical book, “Freeing Yourself From Anxiety.”

When Calamities Are Real

Of course, there are often good reasons for anxiety. Certainly, people who lost their homes and life’s treasures — and sometimes loved ones — in Hurricane Sandy can hardly be faulted for worrying about their futures.

But for some people, anxiety is a way of life, chronic and life-crippling, constantly leaving them awash in fears that prevent them from making moves that could enrich their lives.

In an interview, Dr. Chansky said that when real calamities occur, “you will be in much better shape to cope with them if you don’t entertain extraneous catastrophes.”

By “extraneous,” she means the many stresses that pile up in the course of daily living that don’t really deserve so much of our emotional capital — the worrying and fretting we spend on things that won’t change or simply don’t matter much.

“If you worry about everything, it will get in the way of what you really need to address,” she explained. “The best decisions are not made when your mind is spinning out of control, racing ahead with predictions about how things are never going to get any better. Precious energy is wasted when you’re always thinking about the worst-case scenarios.”

When faced with serious challenges, it helps to narrow them down to specific things you can do now. To my mind, Dr. Chansky’s most valuable suggestion for emerging from paralyzing anxiety when faced with a monumental task is to “stay in the present — it doesn’t help to be in the future.

“Take some small step today, and value each step you take. You never know which step will make a difference. This is much better than not trying to do anything.”

Dr. Chansky told me, “If you’re worrying about your work all the time, you won’t get your work done.” She suggested instead that people “compartmentalize.” Those prone to worry should set aside a little time each day simply to fret, she said — and then put aside anxieties and spend the rest of the time getting things done. This advice could not have come at a better time for me, as I faced holiday chores, two trips in December, and five columns to write before leaving mid-month. Rather than focusing on what seemed like an impossible challenge, I took on one task at a time. Somehow it all got done.

Possible Thinking

Many worriers think the solution is positive thinking. Dr. Chansky recommends something else: think “possible.”

“When we are stuck with negative thinking, we feel out of options, so to exit out of that we need to be reminded of all the options we do have,” she writes in her book.

If this is not something you can do easily on your own, consult others for suggestions. During my morning walk with friends, we often discuss problems, and inevitably someone comes up with a practical solution. But even if none of their suggestions work, at least they narrow down possible courses of action and make the problem seem less forbidding. “If other people are not caught in the spin that you’re in, they may have ideas for you that you wouldn’t think of,” Dr. Chansky said. “We often do this about small things, but when something big is going on, we hesitate to ask for advice. Yet that’s when we need it most.”

Dr. Chansky calls this “a community cleanup effort,” and it can bring more than advice. During an especially challenging time, like dealing with a spouse’s serious illness or loss of one’s home, friends and family members can help with practical matters like shopping for groceries, providing meals, cleaning out the refrigerator or paying bills.

“People want to help others in need — it’s how the world goes around,” she said. Witness the many thousands of volunteers, including students from other states on their Thanksgiving break, who prepared food and delivered clothing and equipment to the victims of Hurricane Sandy. Even the smallest favor can help buffer stress and enable people to focus productively on what they can do to improve their situation.

Another of Dr. Chansky’s invaluable tips is to “let go of the rope.” When feeling pressured to figure out how to fix things now, “walk away for a few minutes, but promise to come back.” As with a computer that suddenly misbehaves, Dr. Chansky suggests that you “unplug and refresh,” perhaps by “taking a breathing break,” inhaling and exhaling calmly and intentionally.

“The more you practice calm breathing, the more it will be there for you when you need it,” she wrote.

She also suggests taking a break to do something physical: “Movement shifts the moment.” Take a walk or bike ride, call a friend, look through a photo album, or do some small cleaning task like clearing off your night table.

When you have a clear head and are feeling less overwhelmed, you’ll be better able to figure out the next step.

This is the first of two columns about anxiety.

Read More..

Personal Health: When Daily Stress Gets in the Way of Life

I was about to give an hourlong talk to hundreds of people when one of the organizers of the event asked, “Do you get nervous when you give speeches?” My response: Who, me? No. Of course not.

But this was a half-truth. I am a bit of a worrier, and one thing that makes me anxious is getting ready for these events: fretting over whether I’ve prepared the right talk, packed the right clothes or forgotten anything important, like my glasses.

Anxiety is a fact of life. I’ve yet to meet anyone, no matter how upbeat, who has escaped anxious moments, days, even weeks. Recently I succumbed when, rushed for time just before a Thanksgiving trip, I was told the tires on my car were too worn to be driven on safely and had to be replaced.

“But I have no time to do this now,” I whined.

“Do you have time for an accident?” my car-savvy neighbor asked.

So, with a pounding pulse and no idea how I’d make up the lost time, I went off to get new tires. I left the car at the shop and managed to calm down during the walk home, which helped me get back to the work I needed to finish before the trip.

It seems like such a small thing now. But everyday stresses add up, according to Tamar E. Chansky, a psychologist in Plymouth Meeting, Pa., who treats people with anxiety disorders.

You’ll be much better able to deal with a serious, unexpected challenge if you lower your daily stress levels, she said. When worry is a constant, “it takes less to tip the scales to make you feel agitated or plagued by physical symptoms, even in minor situations,” she wrote in her very practical book, “Freeing Yourself From Anxiety.”

When Calamities Are Real

Of course, there are often good reasons for anxiety. Certainly, people who lost their homes and life’s treasures — and sometimes loved ones — in Hurricane Sandy can hardly be faulted for worrying about their futures.

But for some people, anxiety is a way of life, chronic and life-crippling, constantly leaving them awash in fears that prevent them from making moves that could enrich their lives.

In an interview, Dr. Chansky said that when real calamities occur, “you will be in much better shape to cope with them if you don’t entertain extraneous catastrophes.”

By “extraneous,” she means the many stresses that pile up in the course of daily living that don’t really deserve so much of our emotional capital — the worrying and fretting we spend on things that won’t change or simply don’t matter much.

“If you worry about everything, it will get in the way of what you really need to address,” she explained. “The best decisions are not made when your mind is spinning out of control, racing ahead with predictions about how things are never going to get any better. Precious energy is wasted when you’re always thinking about the worst-case scenarios.”

When faced with serious challenges, it helps to narrow them down to specific things you can do now. To my mind, Dr. Chansky’s most valuable suggestion for emerging from paralyzing anxiety when faced with a monumental task is to “stay in the present — it doesn’t help to be in the future.

“Take some small step today, and value each step you take. You never know which step will make a difference. This is much better than not trying to do anything.”

Dr. Chansky told me, “If you’re worrying about your work all the time, you won’t get your work done.” She suggested instead that people “compartmentalize.” Those prone to worry should set aside a little time each day simply to fret, she said — and then put aside anxieties and spend the rest of the time getting things done. This advice could not have come at a better time for me, as I faced holiday chores, two trips in December, and five columns to write before leaving mid-month. Rather than focusing on what seemed like an impossible challenge, I took on one task at a time. Somehow it all got done.

Possible Thinking

Many worriers think the solution is positive thinking. Dr. Chansky recommends something else: think “possible.”

“When we are stuck with negative thinking, we feel out of options, so to exit out of that we need to be reminded of all the options we do have,” she writes in her book.

If this is not something you can do easily on your own, consult others for suggestions. During my morning walk with friends, we often discuss problems, and inevitably someone comes up with a practical solution. But even if none of their suggestions work, at least they narrow down possible courses of action and make the problem seem less forbidding. “If other people are not caught in the spin that you’re in, they may have ideas for you that you wouldn’t think of,” Dr. Chansky said. “We often do this about small things, but when something big is going on, we hesitate to ask for advice. Yet that’s when we need it most.”

Dr. Chansky calls this “a community cleanup effort,” and it can bring more than advice. During an especially challenging time, like dealing with a spouse’s serious illness or loss of one’s home, friends and family members can help with practical matters like shopping for groceries, providing meals, cleaning out the refrigerator or paying bills.

“People want to help others in need — it’s how the world goes around,” she said. Witness the many thousands of volunteers, including students from other states on their Thanksgiving break, who prepared food and delivered clothing and equipment to the victims of Hurricane Sandy. Even the smallest favor can help buffer stress and enable people to focus productively on what they can do to improve their situation.

Another of Dr. Chansky’s invaluable tips is to “let go of the rope.” When feeling pressured to figure out how to fix things now, “walk away for a few minutes, but promise to come back.” As with a computer that suddenly misbehaves, Dr. Chansky suggests that you “unplug and refresh,” perhaps by “taking a breathing break,” inhaling and exhaling calmly and intentionally.

“The more you practice calm breathing, the more it will be there for you when you need it,” she wrote.

She also suggests taking a break to do something physical: “Movement shifts the moment.” Take a walk or bike ride, call a friend, look through a photo album, or do some small cleaning task like clearing off your night table.

When you have a clear head and are feeling less overwhelmed, you’ll be better able to figure out the next step.

This is the first of two columns about anxiety.

Read More..

Huawei to Open Research Center in Finland

PARIS — Huawei Technologies, a Chinese maker of telecommunications equipment, said on Monday that it planned to open a research and development center in Helsinki next year, accelerating its investments in Europe, where its business is expanding rapidly.

The move illustrates a trans-Atlantic difference in attitudes toward Huawei. The company has been largely shut out of the United States market for network gear because of Congressional concerns about possible security threats — fears the company insists are unfounded.

While Huawei has faced difficulties in some European markets, like France, it has done better elsewhere. Huawei employs more than 7,000 people in the region, and it says that total could double in the next three to five years. Huawei already has a research center in Italy and is studying the possibility of opening one in Spain. It also recently announced a $2 billion investment in Britain.

The planned center in Helsinki, involving an investment of 70 million euros, or about $90 million, will work on smartphone development, including features like user interfaces and power management, the company said. When the center opens next year, it will employ 30 people, but this could grow to 100 over the next five years, the company said.

The announcement is a plus for the Finnish technology industry, which has been suffering from the woes at Nokia. The company was once the world’s biggest cellphone maker, but its market share has fallen sharply in recent years.

“The open and innovative environment in Finland,” Huawei said, “is an ideal place for Huawei to strengthen our global R.& D. capabilities for devices, creating opportunities for both Huawei and the Finnish telecommunications industry.”

Huawei has been known mostly for its network equipment, but the company is pushing to make a name for itself with its handsets.

Mobile devices accounted for 22 percent of its revenue last year, an increase of 37 percent. That compares with growth of 12 percent for the overall business.

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IHT Rendezvous: The Oxymorons of 'Sustainable Overfishing'

GENERAL SANTOS, Philippines — Fishtocrats from three dozen nations just met in Manila to protect imperiled Pacific tuna, but they barely budged the status quo. So I flew down to Mindanao to hobnob with fishermen. It looks as if we had best develop a taste for tofu tartar and seaweed sushi.
The Western and Central Pacific Fisheries Commission banned reporters, as usual, from its five-day annual session last week. I went as an observer researching a book. But Pew Charities Trust, WWF and Greenpeace summed it up neatly:
“It is outrageous that once again the scientific recommendations have been completely ignored, and that members once again focused debate this week on how much overfishing to allow rather than how to effectively end it.”
The joint statement singled out bigeye tuna, as cherished as blue fin for top-grade sashimi, but yellowfin is also under heavy pressure. Even the ubiquitous skipjack that goes into cans is at the limit.
In General Santos, all three are landed as if there were no tomorrow. Elaborate restrictions apply across the west and central Pacific. Yet here, as in many ports and on the high seas, they are too often ignored.
The main catch is mostly yellowfin from the rich Coral Triangle, from the Philippines to Indonesia and up to Papua New Guinea. Each morning, boats bring in yellowfin too young to breed along with baby bigeye and skipjack the size of measly trout.
“Too many people are trying to catch too many fish,” John Heitz told me, shaking his head at a crate of yellowfin no longer than his arm. (It should have been as long as his leg.) An ex-Peace Corps volunteer, he settled in decades ago to export fresh high-quality tuna.
“If everyone would stop hammering this kindergarten class and follow the guidelines, tuna would be sustainable,” he said.
Even more than rampant overfishing at the bottom, the problem is politics at the top. The WCPFC includes not only major players like the United States, the European Union, China, Japan and such, but also dozens of Pacific island and coastal states.

Government officials, a few of whom seem unable to tell a tuna from a turtle, dominate the delegations; they defend national interests. Other delegates are industry executives who want to fish. Many from both sides are serious about a sustainable long term. But all decisions must be unanimous.

The NGO statement noted the WCPFC pledged in 2008 to end bigeye overfishing by the end of 2011. Instead, it said, “overfishing has actually increased, and now this commission wants to delay another five years.” At each meeting, it said, talks focus on details, not the core problems.

Ironically, those 500-plus delegates debated the future of half the world’s tuna behind closed doors. We credentialed researchers aren’t supposed to report on their debates. So I’ll leave the conclusion to the NGO statement:
“The Commission seems to be…constructing a Rube Goldberg machine that has a lot of levers, chutes, and lifts that produce a lot of noise and activity, but in the end achieves effectively nothing.”

“Nothing” may be pushing it. But over the past 18 months, I’ve seen plenty of evidence for that, not only within the WCPFC but also in other regional fisheries management organizations. To save fish, we need firm guidelines, clear limits and serious enforcement.

The crisis is clear enough here in Tuna Town, where six canneries now depend largely on fish brought from beyond depleted surrounding waters. Boats change flags at their convenience. Some of their holds disgorge undersized tuna.

In one working group in Manila, someone’s slip of the tongue coined a new phrase: sustainable overfishing. When everyone laughed, he indicated that he’d meant that as a joke. I’m not so sure.

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