After nearly a year of Amazon (the largest bookseller on earth) refusing to sell books from one of the largest publishers on earth, they've finally made peace.
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In my latest Locus column, Audible, Comixology, Amazon, and Doctorow’s First Law, I unpick the technological forces at work in the fight between Amazon and Hachette, one of the "big five" publishers, whose books have not been normally available through Amazon for months now, as the publisher and the bookseller go to war over the terms on which Amazon will sell books in the future.
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Online retailer Amazon is accused of hooking millions of dollars from underage users making unauthorized in-app purchases. The Federal Trade Commission filed a lawsuit Thursday charging that the company willingly allowed kids to set up purchases without the consent of their parents.
Though most were for smaller ammounts, some of the charges ranged as high as $99, and typically were for game weapons, clothes and other virtual bullshit installed on its Kindle Fire gadget.
"Amazon’s in-app system allowed children to incur unlimited charges on their parents’ accounts without permission," FTC Chairwoman Edith Ramirez wrote in a press release issued by the comission. "Even Amazon's own employees recognized the serious problem its process created. We are seeking refunds for affected parents and a court order to ensure that Amazon gets parents' consent for in-app purchases."
Amazon's in-app purchase system, established in 2011 to help the firm catch up with competitors Apple and Google, was relatively rudimentary and lacked locks or passwords to prevent unuathorized users racking up huge bills. Within a month, internal emails show that Amazon was aware of "problems" that were "clearly causing problems for a large percentage of our customers," according to the FTC's lawsuit.
Amazon only added passwords months later, and did not apply them to purchases of less than $20 for a year. Even then, according to the suit, Amazon did not disclose that doing so once would enable further purchases for more than an hour.
The FTC settled a similar lawsuit with Apple earlier this year, when the company agreed to institute stricter policies and paid $32.5m in restitution. Amazon, informed of the pending lawsuit, said that it had no plans to change its system as Apple had, and would fight the action.
"We have continuously improved our experience since launch, but even at launch, when customers told us their kids had made purchases they didn't want we refunded those purchases," Amazon's associate general counsel wrote in a response to the commission.
Part of the FTC's suit, however, alleges that the refund process itself is intentionally obscure and "rife with deterrents including statements that consumers cannot, in fact, get a refund for in-app charges."
Games aimed at youngsters are at the heart of the controversy, as they are typically free to download and play, only to bombard the user with enticements to pay for the virtual bullshit. The enticements are often clevery designed to "blur the lines between what costs virtual currency and what costs real money," writes the FTC, using visually similar icons and other psychological manipulations to generate unfair and unexpected charges.
Earlier this week, UK regulators ordered Electronic Arts to stop marketing its sleazy mobile game Dungeon Keeper as free-to-play after gamers complained that it was effectively unplayable without in-game paid upgrades.
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In my latest Guardian column, "How Amazon is holding Hachette hostage," I discuss the petard that the French publishing giant Hachette is being hoisted upon by Amazon. Hachette insisted that Amazon sell its books with "Digital Rights Management" that only Amazon is allowed to remove, and now Hachette can't afford to pull its books from Amazon, because its customers can only read their books with Amazon's technology. So now, Hachette has reduced itself to a commodity supplier to Amazon, and has frittered away all its market power. The other four major publishers are headed into the same place with Amazon, and unless they dump DRM quick, they're going to suffer the same fate.
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Metabrainz is the charity that oversees Musicbrainz, a free/open music metadata service that has gained in popularity since Gracenote took all the audio metadata its users keyed in by hand and enclosed it, denying all but the top bidders access to it. Musicbrainz is free to use, but has a premium, higher-availability service for commercial operators, like Amazon.
For three years now, Metabrainz has been chasing an unpaid invoice at Amazon. Metabrainz is a tiny, charitable nonprofit that relies on grants and donations for the majority of its operating capital, but commercial operators are also key to its survival. And Musicbrainz is an integral part of the plumbing of the Internet at this point, a powerful check against one player achieving dominance through a chokehold on a key resource.
So Metabrainz sent Amazon Headquarters a birthday cake, celebrating the third birthday of good ol' invoice #144. As a volunteer board member for the charity, I'd mightily appreciate it if someone at Amazon would take the time to nudge this invoice through the system.
You may have heard that Amazon is selling a "KEEP CALM AND RAPE A LOT" t-shirt. How did such a thing come to pass? Well, as Pete Ashton explains, this is a weird outcome of an automated algorithm that just tries random variations on "KEEP CALM AND," offering them for sale in Amazon's third-party marketplace and printing them on demand if any of them manage to find a buyer.
The t-shirts are created by an algorithm. The word “algorithm” is a little scary to some people because they don’t know what it means. It’s basically a process automated by a computer programme, sometimes simple, sometimes complex as hell. Amazon’s recommendations are powered by an algorithm. They look at what you’ve been browsing and buying, find patterns in that behaviour and show you things the algorithm things you might like to buy. Amazons algorithms are very complex and powerful, which is why they work. The algorithm that creates these t-shirts is not complex or powerful. This is how I expect it works.
1) Start a sentence with the words KEEP CALM AND.
2) Pick a word from this long list of verbs. Any word will do. Don’t worry, I’m sure they’re all fine.
3) Finish the sentence with one of the following: OFF, THEM, IF, THEM or US.
4) Lay these words out in the classic Keep Calm style.
5) Create a mockup jpeg of a t-shirt.
6) Submit the design to Amazon using our boilerplate t-shirt description.
7) Go back to 1 and start again.
There are currently 529,493 Solid Gold Bomb clothing items on Amazon. Assuming they survive this and don’t get shitcanned by Amazon I wouldn’t be at all surprised if they top a million in a few months.
It costs nothing to create the design, nothing to submit it to Amazon and nothing for Amazon to host the product. If no-one buys it then the total cost of the experiment is effectively zero. But if the algorithm stumbles upon something special, something that is both unique and funny and actually sells, then everyone makes money.
Indie booksellers sue Amazon and big publishers over DRM (but have no idea what "DRM" and "open source" mean)
A group of independent booksellers have filed a suit against Amazon and the major publishers for their use of DRM, which, the booksellers say, freezes them out of the ebook market:
Alyson Decker of Blecher & Collins PC, lead counsel acting for the bookstores, described DRM as "a problem that affects many independent bookstores." She said the complaint is still in the process of being served to Amazon and the publishers and declined to state how it came about or whether other bookstores had been approached to be party to the suit.
"We are seeking relief for independent brick-and-mortar bookstores so that they would be able to sell open-source and DRM-free books that could be used on the Kindle or other electronic ereaders," Decker explained to The Huffington Post by telephone.
Such a move would lead to a reduction in Amazon's dominant market position, and completely reshape the ebook marketplace.
A spokesman for Fiction Addiction declined to comment as legal proceedings are ongoing. The other plaintiffs and Amazon did not respond to a request for comment.
That sounds great, but when you read the complaint, you find that what they mean by "open source" has nothing to do with open source. For some reason, they're using "open source" as a synonym for "standardized" or "interoperable." Which is to say, these booksellers don't really care if the books are DRM-free, they just want them locked up using a DRM that the booksellers can also use.
There is no such thing as "open source" DRM -- in the sense of a DRM designed to run on platforms that can be freely modified by their users. If a DRM was implemented in modifiable form, then the owners of DRM devices will change the DRM in order to disable it. DRM systems, including so-called "open" DRM systems, are always designed with some licensable element -- a patent, a trademark, something (this is called "Hook IP") -- and in order to get the license you have to sign an agreement promising that your implementation will be "robust" (implemented so that its owners can't change it). This is pretty much the exact opposite of "open source."
It's a pity. I empathize with these booksellers. I hate DRM. But I wish they'd actually bothered to spend 15 minutes trying to understand how DRM works and what it is, and how open source works, and what it is, before they filed their lawsuit. Grossly misusing technical terms (and demanding a remedy that no customer wants -- there's no market for DRM among book-buyers) makes you look like fools and bodes poorly for the suit.
DRM Lawsuit Filed By Independent Bookstores Against Amazon, 'Big Six' Publishers [Andrew Losowsky/Huffington Post]
The reviews on the Amazon page for a toy Predator drone are pretty trenchant:
You've had a busy play day - You've wiretapped Mom's cell phone and e-mail without a warrant, you've indefinitely detained your little brother Timmy in the linen closet without trial, and you've confiscated all the Super-Soakers from the neighborhood children (after all, why does any kid - besides you, of course - even NEED a Super-Soaker for self-defense? A regular water pistol should be enough). What do you do for an encore?
That's where the US Air Force Medium Altitude, Long Endurance, Unmanned Aerial Vehicle (UAV) RQ-1 Predator from Maisto comes in. Let's say that Dad has been labeled a terrorist in secret through your disposition matrix. Rather than just arrest him and go through the hassle of trying and convicting him in a court of law, and having to fool with all those terrorist-loving Constitutional protections, you can just use one of these flying death robots to assassinate him! Remember, due process and oversight are for sissies. Plus, you get the added bonus of taking out potential terrorists before they've even done anything - estimates have determined that you can kill up to 49 potential future terrorists of any age for every confirmed terrorist you kill, and with the innovative 'double-tap' option, you can even kill a few terrorist first responders, preventing them from committing terrorist acts like helping the wounded and rescuing survivors trapped in the rubble. Don't let Dad get away with anti-American activities! Show him who's boss, whether he's at a wedding, a funeral, or just having his morning coffee. Sow fear and carnage in your wake! Win a Nobel Peace Prize and be declared Time Magazine's Person of the Year - Twice!
This goes well with the Maisto Extraordinary Rendition playset, by the way - which gives you all the tools you need to kidnap the family pet and take him for interrogation at a neighbor's house, where the rules of the Geneva Convention may not apply. Loads of fun! [Maurice Cobbs]
This is the best toy ever. Finally, I can pretend that I'm a winner of the Nobel Peace Prize! It's like I'm sitting right there in the White House with my very own kill list! [Raini Pachak]
The Kindle edition is back. Amazon PR person Brittany Turner wrote, "Wanted to let you know that this book is now available in the Kindle Store." Ms Turner didn't offer any further explanation.
Presumably, it was a dumb mistake to begin with, but one that couldn't be corrected until there was enough publicity to get senior people to look in on the issue.