frank_adrian314159 writes "David Lowery, musician (Cracker, Camper Van Beethoven), producer (Sparklehorse, Counting Crows), recording engineer (Archers of Loaf, Lamb of God), and geek (programmer, packet radio operator, ex-CBOT quant) talks about the economics of the music business and how the "old boss" — the record labels — have been replaced by the new boss — file downloading services, song streaming, and commercial online music stores. His take? Although the old boss was often unfair to artists, artists are making even less money under the new boss. Backed with fairly persuasive data, he shows that, under the new distribution model, artists — even small independent ones — are exposed to more risk while making less money. In addition, the old boss was investing in the creation of new music, while the new boss doesn't. This article is lengthy, but worth the attention of anyone interested in the future of music or music distribution."

mrquagmire writes with this snippet from CNET: "Facebook shareholders have sued the social network, CEO Mark Zuckerberg, and a number of banks, alleging that crucial information was concealed ahead of Facebook's IPO. The lawsuit, filed in the U.S. District Court in Manhattan this morning, charges the defendants with failing to disclose in the critical days leading up to Friday's initial public offering 'a severe and pronounced reduction' in forecasts for Facebook's revenue growth, as users more and more access Facebook through mobile devices, according to Reuters, which cited a law firm for the plaintiffs."

redletterdave writes "With barcode scanning being so commonplace, nothing seemed out of the ordinary when Thomas Langenbach, the vice president of SAP, was found scanning boxes upon boxes of Lego toys before purchasing them. Little did anyone know, the 47-year-old Silicon Valley executive was actually engaged in a giant scam. Langenbach would visit several Target stores and cover the store's barcodes with his own, so when he would bring the boxes up to the register, Langenbach would pay a heavily-discounted price. For example, this tag swapping allowed him to buy a Millennium Falcon box of Legos worth $279 for just $49. Once he bought the discounted Lego boxes, the SAP executive would take to eBay (under the name 'tomsbrickyard') and sell the items. Langenbach reportedly sold more than 2,000 items on eBay, raking in about $30,000. He was finally caught by Target security on May 8, and he was arraigned on Tuesday on four counts of burglary."

An anonymous reader writes "FCC Chairman Julius Genachowski has publicly backed usage-based pricing for wired internet access at the cable industry's annual NCTA Show. He makes the claim that it would drive network efficiency. Currently most internet service providers charge a flat fee and price their packages based on the speed of the service, while wireless providers are reaping record profits by charging based on usage, similar to the way utilities charge for electricity. By switching to this model, the cable companies can increase their profitibility while at the same time blocking consumers from cutting the cord and getting their TV services online."

beaverdownunder writes "After losing another 8.9% of its IPO value in its third day of trading, SEC Chairman Mary Schapiro has called for a review of the circumstances surrounding Facebook's IPO on the NASDAQ late last week. Unable to sell Facebook short, investors have instead taken to short-selling funds that owned pre-IPO shares as revelations come out that the underwriters involved revised their Facebook profit forecasts downward in the days before the offering without similarly revising the opening share price. Meanwhile, Thomson Reuters Starmine has come out with a post-party Facebook estimate of a meager 10.8 per cent annual growth rate, valuing the stock at a paltry $US9.59 a share, a 72 per cent discount on its IPO price, signaling that the battered stock may not have found the bottom yet."

terrymaster69 writes "After an aborted launch attempt last week, SpaceX successfully launched its Falcon9 rocket Tuesday at 3:44 am EST. SpaceX's founder Elon Musk tweeted: 'Falcon flew perfectly!! Dragon in orbit, comm locked and solar arrays active!! Feels like a giant weight just came off my back :)' The Dragon capsule is scheduled to dock with the ISS on May 25th."

First time accepted submitter gtirloni writes "Just days after wrapping up the biggest initial public offering in Silicon Valley history, shares of Facebook slumped 6% and tumbled below their issue price on Monday, a troubling signal for the newly-public social network. Facebook broke below its $38-a-share issue IPO price in the wake of a highly-anticipated offering that raised more than $16 billion, the second-largest domestic IPO after Visa's 2008 debut. Shares of Facebook were recently off 6.44% to $35.72."

Fluffeh writes "Around a year ago, a person working for the ABC in Australia with the highest levels of access to systems got caught with his fingers on the CPU cycles. The staffer had installed Bitcoin mining software on the systems used by the Australian broadcaster. While the story made a bit of a splash at the time, it was finally announced today that the staffer hadn't been sacked, but was merely being disciplined by his manager and having his access to systems restricted. All the stories seem a little vague as to what he actually installed, however — on one side he installed the software on a public facing webserver, and the ABC itself admits, 'As this software was for a short time embedded within pages on the ABC website, visitors to these pages may have been exposed to the Bitcoin software,' and 'the Coalition (current Opposition Parties) was planning on quizzing the ABC further about the issue, including filing a request for the code that would have been downloaded to users' machines,' but on the other side there is no mention of the staffer trying to seed a Bitcoin mining botnet through the site, just that mining software had been installed."

theodp writes "Eager to host Amazon warehouses and receive a cut of the tax on sales to customers statewide, the LA Times reports that two California cities are offering Amazon most of the tax money they stand to gain. After agreeing to collect California sales taxes beginning in the fall, Amazon is setting up two fulfillment centers in San Bernadino and Patterson, which will gain not only jobs but also a tax bonanza: Sales to Amazon customers throughout California will be deemed to take place there, so all the sales tax earmarked for local government operations will go to those two cities. The windfall is so lucrative that local officials are preparing to give Amazon the lion's share of their take as a reward for setting up shop there. 'The tax is supposed to be supporting government,' said Lenny Goldberg, executive director of the California Tax Reform Assn., of the proposed sales-tax rebate. 'Instead, it's going back into Amazon's pocket.' Sen. Mark DeSaulnier added: 'It seems like the private sector finds a way to pit one city against the other. You can't give away sales tax in this manner.'"

symbolset writes "CNET is reporting that China has approved Google's acquisition of Motorola Mobility. Previously approved by regulatory authorities in the U.S. and Europe, China was the last holdout. The deal will now reportedly close 'within days.'" I wonder what conditions Google may have faced from the regulators, and whether they include any exceptions to the "don't be evil" guideline.

ananyo writes "California lawmakers are weighing a bill aimed at protecting their state's citizens from surreptitious genetic testing but scientists are voicing their growing concerns that, if passed, such a law would have a costly and damaging effect on research. The bill, dubbed the Genetic Information Privacy Act, would require an individual's written consent for the collection, analysis, retention, and sharing of his or her genetic information—including DNA, genetic test results, and even family disease history. The University of California has submitted a formal letter objecting to the bill, estimating that the measure could increase administrative costs by up to $594,000 annually — money which would come out of the cash-strapped state's General Fund. The university has also expressed concern that its researchers would suffer competitive losses in obtaining research grants."

Hugh Pickens writes "Steve Blank, a professor at Berkeley and Stanford and serial entrepreneur from Silicon Valley, says that the the Facebook IPO is the beginning of the end for Silicon Valley as we know it. "Silicon Valley historically would invest in science, and technology, and, you know, actual silicon," says Blank. "If you were a good venture capitalist you could make $100 million." But there's a new pattern emerging created by two big ideas that will lead to the demise of Silicon Valley as we know it. The first is putting computer devices, mobile and tablet especially, in the hands of billions of people and the second is that we are moving all the social needs that we used to do face-to-face onto the computer and this trend has just begun. "If you think Facebook is the end, ask MySpace. Art, entertainment, everything you can imagine in life is moving to computers. Companies like Facebook for the first time can get total markets approaching the entire population." That's great for Facebook but it means Silicon Valley is screwed as a place for investing in advanced science. "If I have a choice of investing in a blockbuster cancer drug that will pay me nothing for ten years, at best, whereas social media will go big in two years, what do you think I'm going to pick?" concludes Blank. "The headline for me here is that Facebook's success has the unintended consequence of leading to the demise of Silicon Valley as a place where investors take big risks on advanced science and tech that helps the world. The golden age of Silicon valley is over and we're dancing on its grave.""

medv4380 writes "38 Studios, run by Curt Schilling, is having a hard time paying its bills and employees. The gaming community hasn't been happy with the company since the issue with an Online Pass for Single Player Content, which we discussed previously. Now, 38 Studios has bounced a check intended as a payment on its $75 million loan from the state of Rhode Island. If the company defaults, Rhode Island taxpayers will have to cover the loan and interest, which could total nearly $100 million."

Facebook's much-hyped IPO kicked off today, but an anonymous reader points out that things didn't go quite as smoothly as investors hoped. "Public trading didn't get underway until about 11:30 a.m. ET, half an hour after it was supposed to. The delay was likely caused by the huge amount of interest in the stock – especially by retail investors. In the first few minutes of trading, Facebook shares were only up between 5 and 10 per cent and by noon were essentially back down to the IPO price of $38. Many observers had expected the stock to double in price by the end of the day, if not sooner." The NY Times has a data visualization showing how Facebook's IPO compares to other tech IPOs throughout the years, and how the first day of trading treated all of those companies. Meanwhile, the debate is lively over whether the social networking giant will be a good investment. "The banks helping take Facebook public want us to value this 8-year-old upstart at as much as $104 billion, more than Disney or Kraft Foods, though those companies earn three and four times more. That top valuation is also more than 100 times Facebook's earnings last year, versus 13 times for the average company. At such a high price, it will take years for this so-called earnings multiple to fall to a more reasonable level, and that's assuming the company can maintain its torrid earnings growth."

Axolotl_Rose writes with news that Hewlett-Packard is preparing to cut around 30,000 jobs, close to 10% of its total workforce. CEO Meg Whitman reportedly wants to use that money instead for new products and for bolstering the sales force. From the NY Times: "China, which is one of H.P.’s highest growth areas, will probably be spared, as will its research and development efforts. Ms. Whitman, who became H.P.’s chief executive last September, 'is trying to build a new company,' one senior executive said of the job cuts. 'You can count this as a part of that.' The final plan is expected to be announced on Wednesday, when H.P. announces earnings for its second fiscal quarter. Considered a slow-moving giant in the tech industry, H.P. had revenue of $127 billion in fiscal 2011, but net earnings of just $7.1 billion. While it has a leading position in the sales of low-margin personal computers, H.P. has been late or unsuccessful in many recent tech trends like providing cloud computing services for big companies and smartphones and tablet computers." An article at Forbes suggests HP should instead 'retool' those jobs by recruiting makers and hackers, TED conference speakers, and others who have experience building and inventing things.

MikeatWired writes "The malware business growing around Google Android — now the leading smartphone operating system — is still in its infancy. Today, many of the apps built to steal money from Android users originate from Russia and China, so criminal gangs there have become cyber-trailblazers. Sophos and Symantec on Wednesday released their latest Android malware discoveries written in Russian. While the language narrows the number of potential victims, the social-engineering tactics used to get Android users to install the malware is universal. The gang tracked by Sophos is using fake antivirus scanners, while Symantec is tracking cybercriminals using mobile websites to offer bogus versions of popular games. Sophos says the criminals are like other entrepreneurs launching startups. They're starting in Russia, but have far greater ambitions. 'I don't think we can say that they're necessarily using it as a testing ground — think of it more as a local business that as it grows may gain multinational ambitions,' Graham Cluley, senior technology consultant at Sophos, said in an email interview on Wednesday. The cyber scam tracked by Sophos was reported this week by GFI Lab, which discovered links to the bogus antivirus software on Twitter. Sophos dug deeper and found that the .ru domains pointed to the same Internet protocol address hosted in Ukraine."

An anonymous reader writes "Sen. Chuck Schumer, D-N.Y., has a status update for Facebook co-founder Eduardo Saverin: Stop attempting to dodge your taxes by renouncing your U.S. citizenship or never come to back to the U.S. again." See this earlier story on Saverin's plan to make the leap out of the U.S. tax system.

nonprofiteer writes "The Pentagon is increasingly transforming the military into an unmanned force, taking soldiers out of harm's way and replacing them with drones and robots. In 2011, it spent $6 billion on unmanned systems. The problem is that the unmanned systems don't work well together thanks to contractors building proprietary control systems (to lock government into exclusive relationships and to make extra money). A company called DreamHammer plans to have a solution to this — a universal remote control that could integrate all robots and drones into one control system. It would save money and allow anyone to build apps for drones. 'DreamHammer CTO Chris Diebner compares it with a smartphone OS — on which drones and features for those drones can be run like apps. Of course, Ballista is doing something on a much larger scale. It means that it takes fewer people to fly more drones and that new features can be rolled out without the need to develop and build a new version of a Predator, for example.'"

Fluffeh writes "A recent study of over 1,000 folks for a paper published in Nature Climate Change has found that the average U.S. citizen is inclined to pay a premium to ensure that by 2035, 80% of U.S. power comes from clean energy. At random, respondents received one of three "technological treatments" or definitions of clean energy that included renewable energy sources alone, renewable sources plus natural gas, and renewable sources plus nuclear power. Delving into the socioeconomics, researchers found that Republicans, Independents, and respondents with no party allegiance were less likely by 25, 13 and 25 percentage points respectively to support a NCES than respondents that identified themselves as Democrats."

AlistairCharlton writes "Facebook has made yet another amendment to its S-1 filing, adding a further 96 million shares, pushing its initial public offering up to a potential maximum of $18.4bn (£11.5bn). In what is the eighth amendment to its S-1 filing with the Securities and Exchange Commission, Facebook has also increased the number of shares allowed for over allotment, up from 50.6 million to 63.2 million." Facebook will have a lot of pressure to increase revenue after it goes public. jfruh writes in with a story about how that will impact their privacy policies. "There's been a steady drumbeat of panics over the past few years involving how Facebook uses the personal information you give it; nevertheless, someday you'll look back at 2012 as the golden age of Facebook privacy. That's because, once Facebook has its IPO, it'll come under huge pressure from the markets to extract more revenue from its business. And with display advertising not generating game-changing amounts of money, Facebook has only one valuable resource: your data, which is going to be monetized as hard as possible."