Random Thoughts – Randocity!

SOPA: Is it tortious interference?

Posted in fraud, free enterprise, government, legislation by commorancy on January 18, 2012

SOPA and PIPA take aim at ‘online piracy’.  Of course, the term ‘online piracy’ is defined as deep and wide as the Grand Canyon. How do you define ‘online piracy’?  Well, clearly, taking copyrighted works without the owner’s permission is considered copyright infringement.  We already have laws on the books that protect copyright holders.  For years, these legal mechanisms have worked. Basically, the copyright owner identifies the alleged infringer and takes them to court, then proves the case (in front of a judge) that someone infringed.  So why isn’t this enough?  What changed? The entertainment industry wants more power.

For Hollywood and the music industry, the current legal system is not enough.  Now they want to interfere with businesses’ abilities to continue to do business.  Both the MPAA and the RIAA have tried various mechanisms to gain control over stopping piracy without involving the courts.  The entertainment industry wants direct unfettered access into businesses to force them to stop ‘enabling’ the alleged pirates.  No due process, no courts, no guilt or innocence determination in a court of law.  No, all of this they want outside of the courts.  They want to tell someone to stop doing something without any due diligence or fiduciary responsibility. “Oops, we made a mistake?  My Bad. Tee hee.”

Legalized Tortious Interference

With SOPA, this goes one step further and effectively becomes legalized tortious interference.  So what is tortious interference?  Simply put, it’s when a random third party steps into a two party contract and causes one party in the contract to breach the contract for the other party.  That is, the third party prevents a party in a contract from being able to fulfill their contractual obligations.  How does SOPA do this? It does this by forcing banks or other financial institutions to stop transactions to one of their customers on a third party say alone.  It does this by asking DNS registrars to disable domain names and prevent web sites from functioning without any court determination of guilt or innocence, again, on say alone.

Guilty until proven innocent

Clearly, our legal system and government system is broken.  More than that, our legal system is taking a huge step backwards. Back to a time before the US adopted ‘Innocent until proven guilty’.  Clearly, this mantra means little in the legal system today. With an adoption of SOPA or PIPA, we would always be presumed guilty until proven innocent.  Those in the entertainment industry are severely undermining our legal infrastructure and, if you also happen to be a conspiracy theorist, systematically dismantling it with the help of of the US Congress no less.

Internet Piracy and the end of independent artists

The music and movie industries have yet to prove substantial losses regarding piracy, yet they continue on this legal tirade that attempts to systematically destroy our current legislative system with such overreaching laws as SOPA and PIPA.  So overreaching, in fact, that these acts need no court interaction to remove alleged infringing sites from the internet without any court due process or a trial by peers.  They offer no way to prove innocence easily or to refute any claims alleged.  Simply put, the entertainment industries want to control businesses at a fundamental level outside of the courts.  They simply want to call up GoDaddy and say, “You have a site that is infringing, take it down” and GoDaddy must comply with no questions asked. This is the entertainment industry’s ultimate goal:

  • No legal system involvement
  • Forced compliance
  • No due process
  • No refuting copyright claims allowed
  • Instant removal

Clearly, we don’t want to be here.  No single private industry should have that level of legislated control over any individual or business.  Even law enforcement shouldn’t have that level of control over individuals or businesses without due process.  The entertainment industry, let alone law enforcement should follow due process just like any other individual or business is required to do.  If one industry is given that level of government sanctioned legal control, this country will fall and it will fall hard.

If SOPA or PIPA pass, we will move into a new dark age.  An age without new books, new music or new creative works of any kind (other than those that the music and movie industries want us to see).  The age of independent creative works will end.  The age of creative new web sites will end. Eventually, even Hollywood and the music industry will end because of the negative backlash over the lack of substantial creative content… ultimately leaving no creative works of any kind.  Independent creative people will stop creating because SOPA will have been so completely abused people won’t set up new sites for fear of a SOPA backlash.  Existing businesses will stop doing business with anyone involved in creative works (and let’s hope that includes Hollywood).

Censorship

Part of the SOPA and the PIPA drafts suggest that ISPs adhere to a browsing blacklist.  That is, ISPs would be required to prevent access to sites that are ‘known pirate’ sites.  This is allegedly to target non-US sites, but it could just as easily target sites within the US.  ISPs are and should be treated as a common carrier.  That is, what is carried over their lines is not their responsibility either in or out.  Requiring ISPs to become filters for the government and the entertainment industries is, again, overreaching.  There is no need for this.  I do understand what the MPAA and RIAA are both trying to do. But, instead of using censorship to block sites, they should simply go after the site directly.  Do not censor everyone else’s view of the Internet because of an suspected problem.  Again, this is simply like throwing the baby out with the bathwater.  No, just throw the bathwater out .. meaning, if a site becomes a problem, go after that specific site.  Don’t require ISPs to block access to the site for every subscriber in the US.  Censorship is not an acceptable problem resolution in any form here in the US.  That representatives and senators are even considering this is amazingly chilling.

Chilling effects

Legislation like SOPA is chilling.  It should not ever be passed. This legislation is the wrong legislation at the wrong time and for the wrong industry.  No one industry should wield that level of unregulated power towards any other industry.  The DMCA attempted that level of control but failed to work. SOPA is the next step to come out of the DMCA, but it is far too overreaching. Worse, this type of legislation needs to end before the United States as we know it ceases to exist.  With legislation like SOPA, the US is leading itself to its own demise.  We are, in effect, legislating the US out of existence and SOPA is just one step towards that end.

Consider who the major players are in Hollywood and in the music industry. Most of the players are not even US companies. Again, a conspiracy theorist could have a field day with all of this.

I’m sorry to say that entertainment is the least of this country’s worries, let alone the entertainment industry.  They can fend for themselves.  Boo Hoo, the movie and music industry might have lost 50 cents because someone allegedly downloaded a song or watched a movie online. Show us the numbers!  The entertainment industry already has laws and the court system to back them up with both patent and copyright infringement claims.  There is no need for any further legislation on this front. The US needs to focus its efforts on the economy and keeping this country afloat. The US is not responsible for propping up industries that can’t even properly manage themselves.  Let’s let Hollywood and big music figure out how to manage themselves using the existing laws.

More then that, let’s make these industries first prove substantial losses to piracy before we give them any level of power, let alone this level. Just say ‘No’ to SOPA and PIPA. Write your congressional representatives and ask them to not support this legislation.

Don’t rent at Blockbuster Express Kiosks

Posted in business, fraud, scam, scams by commorancy on September 6, 2010

[Updated: 04/15/2017 — In 2012, Redbox purchased all of the remaining Blockbuster Express kiosks which have now become Redbox kiosks. The original article follows.]

I’ve rented at both Redbox and now Blockbuster. I’ve never had any difficulties renting or returning at Redbox. However, at Blockbuster I had the worst experience when returning my movie. Note, this was the first time I’d ever used Blockbuster’s machine. Note, Blockbuster’s machine sucks.

Poor Vending Machine Design

I’ll start by saying that DVD rentals via vending machine, not the best idea. Yes, that includes Redbox. The issue isn’t renting, it’s returning. If you rent at a store, returning the DVD is actually simple… drop it off in the bin. At a vending kiosk, you’re have to wait to turn in the movie because you have to use the screen to initiate the return function. This means, you have to stand in line and wait until everyone else is done. Stupid.

These machines are monstrous, yet they can’t even provide a proper return mechanism. My experience with Blockbuster returning a rented DVD was horrible. I stood in line 20 minutes waiting to return my movie (singular). After all that, the time was a couple minutes past 9 and Blockbuster still charged the extra $1 fee. Seriously, there is no grace period at all?

The worst part is, however, that when I called customer service, they refused to refund the money. They offered a promo code instead. Hello, no, I want a refund, not a promo code. After the debacle that is the returns process, I don’t intend to rent from their shoddy vending machine ever again. I’d already made that decision right after they charged me the extra day’s fee. This is why I didn’t want a promo code. The bad customer service experience was just the topper that capped it all.

Return Mechanism

These hulking machines are huge. There should be no reason why there isn’t a simple return and go slot (i.e., no waiting). It’s completely ludicrous that you need to wait for someone else to finish their long transaction before you can return a movie. It seriously needs a drop and go slot. A slot that always accepts returns no matter what someone may be doing on the rental side. Their computer already knows that that specific movie copy is tied to my account. There is no reason to have to initiate anything. An always-active returns slot is a no-brainer. Yet, these kiosks don’t have one. Neither does Redbox. However, there are far more Redbox kiosks around. If one is that occupied, I could just drive to another. Unfortunately, with the Blockbuster kiosks, you had to return your discs to the one where you rented. You couldn’t return at just any kiosk even if you did know where another one was.

In this case, the kiosk should shutdown all new purchases for 20 minutes prior to 9PM to allow for express returns. This would put the system into return only mode and allow those only needing to return to push their way through before the 9PM deadline. This prevents those people who want to spend 15-20 minutes hogging the kiosk reading every movie synopsis and hemming and hawing over ever title in the unit from doing immediately before return time.

Blockbuster go boom

It’s no wonder Blockbuster’s kiosks are now a thing of the past. They really had no idea of customer service or how to operate such a rental service to the public. I’ll stick with Redbox, thank you very much. I’ve had no issues with customer service or returns at Redbox. Yet, on my very first call to Blockbuster customer service (I waited on hold for at least 10 minutes), they were unwilling to even do what I requested (refund the extra day fee that they don’t rightly deserve).

So, I called the bank and the bank reversed the charges. Too bad Blockbuster.

Here’s your word of warning. If you want to rent from Blockbuster’s kiosk, you may experience something very similar with returns. Not only is customer service an atrocious process, they won’t even issue refunds when appropriate. Worse, if you go even 1 minute past 9PM when returning, they will stick you for that extra day’s fee (no grace period). I have no respect for Blockbuster and I do not intend to rent anything further from either their stupid kiosk or any store they own.

While these rentals are cheap enough, it’s not worth the hassle when you want to get a refund for ill gotten charges. Believe me, Blockbuster needs to shutter the doors and go away. Let’s hope Redbox makes that happen (and they did) and oh, Blockbuster, you should really take a look at Redbox to see what customer service really is, m’kay?

[03/15/2017 Comment: This article was written before the Blockbuster kiosks were bought out by Redbox in 2012. Thankfully, these Blockbuster kiosks no longer exist. They have all been replaced by Redbox kiosks which are much more abundant and easy to locate and use… thanks to the Redbox app. I leave this article up as a history of how Blockbuster kiosks functioned and as a testament to how bad Blockbuster’s customer service was at the time.]

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Is Obama hostile towards big business?

To answer this question, we need to delve a little deeper. Note, I am neither condoning nor praising Obama’s handling of his regulatory efforts. However, I would like to point out certain corrections that do need to be made.

“The truth is that not even the Franklin Roosevelt administration was as hostile to and ignorant about free enterprise as this [Obama’s] administration is.”
–Steve Forbes.

But, is Obama really hostile towards business? Or, is he making needed corrections? There is a fine line here. This issue also points out a serious problem in politics today. That problem is, you guessed it, money. Without money, the world doesn’t work. Without money, candidates don’t get elected. Without money, businesses don’t sell things and make money. Back up the train.. Businesses make plenty of money without governmental help. The trouble is that businesses want to be able to make laws that enable their businesses to make more money and then have the government be lenient with them when issues arise.

The reality, though, is that like the separation of church and state, the government now needs separation of business and state. The two are oil and water, they don’t mix. Government needs to be able to make law without interference from any party. But, businesses have deep pockets and hefty lawyers. These two elements help elect officials and help sway these same officials into making good on promises they made towards these businesses during the election.

Obama’s corrections

While I don’t agree with every single thing Obama has done, I do agree that change is necessary. The change that he is making is intended to correct the issues that led to the economic downturn. The trouble comes with statements from people like Steve Forbes. Mr. Forbes believes that he is the end-all-be-all-know-it-all when it comes to all-things-business. The trouble is, he doesn’t. Yes, he runs a successful magazine, but that doesn’t make him an authority. That makes him a successful business owner.

Obama is walking that fine line. A fine line that shouldn’t even be necessary. But, there it is. The line that’s there to help Obama help the economy, help spur business and growth and reduce the chances of a repeated failure. At the same time, the line is there to show that government values business, but isn’t there to socialize it. The trouble is, this economic downturn was of our own making. By our, I mean Wall Street. The housing bubble was just that, a bubble. Bubbles eventually burst and this bubble was no exception. It’s not as if analysts and intelligent minded people couldn’t see the handwriting on the wall. When the mortgage interest rates got down to 1% and all of those ARM and specialty loans were being issued like water flowing down the Mississippi, trouble was inevitable. We just didn’t know that banks and insurance companies were tying their financial soundness to these extremely risky loans using credit default swaps.

Until the bubble burst, no one really knew just how deep the rabbit hole went. Then, everything came crashing down and all of the nasty subprime mortgage and credit default swap issues came into view in their all fugly detailed glory. The first evidence of that was Bear Stearns followed by AIG (and the subsequent governmental bailout). I still think they should have let AIG fold, I digress.

Government and Business

It’s high time that government distanced itself from corporate businesses. It’s high time congress made laws to separate government from business (including political support). It’s high time that government stopped being a pawn for corporate businesses. Forbes clearly seems to think that Free Enterprise requires socialism to function. Free Enterprise is not part of and does not need socialism. Free Enterprise means that businesses can do whatever they need to do (within the limits of the laws) to make their business succeed. Clearly, there have not been laws enabled that have dramatically impacted Free Enterprise. The laws that have been enacted have been placed there to prevent corporations from producing risky investment vehicles with a high likelyhood of crashing down again. If businesses are now floundering, it’s not because of laws. It’s because corporations have lost their way and are still expecting handouts. Well, you can keep your hand out, but don’t expect the government to be dropping any coin in it.

Corporations have relied, no… depended on the US Government for handouts. That time needs to end. Subsidies for business need to go away. Businesses need to fend for themselves just like Free Enterprise mandates. If a business can’t make it on its own, then let it fail. I’ll repeat, LET IT FAIL. Failure is also part of Free Enterprise. Businesses that will succeed, will succeed because they produce a good product or service. Businesses that fail, will fail because they don’t produce good products or services.

Lost our way

America, and specifically corporate enterprises, have lost their way. For far too long have big corporations depended on favorable governmental conditions (sounds like a weather report) to help them stay in business. Well, that train has left (and must leave). It should be solely up to you and your business practices alone to make or break your company. It is the quality of your products, services and support that makes people want to buy your products or invest in your company. Nothing has changed about this aspect of Free Enterprise.

We need to go back to a time when quality was the key. When providing a superior product was the answer to getting people to buy things. If that also means deflation, then so be it. Businesses need to find their way by learning how to do more with less. How to manage their staff better and stop over-hiring. At the same time, many of them need to stop under-hiring and also value the employees that they have right now.

The key to keeping your business flowing is by keeping your employees active, productive and happy. Morale is a big problem in companies during any downturn. Once fear sets in over the next reduction in force (RIF), then morale falls to all-time-lows. No, taking the employees on an outing doesn’t boost morale. The way to boost morale is to stop RIFing the staff out the door. Yes, I know it gives a temporary boost to the stock price and makes the shareholders happy, but that’s a temporary fix with limited effects. Once the dust settles, the employees who are left become disgruntled, unhappy and produce less. This is completely backwards thinking. Which is why business has lost its way.

Shareholder value vs quality products

I know, someone’s going to say that it is all about ‘shareholder value’. That may be the way things seem now, but it is wrong. Currently accepted actions that lead to improved shareholder value tend to undercut production, stifle innovation, reduce profit margins and lower productivity. Why would you intentionally do this to your business? So, while these measures may seem to help the stock price, it does nothing to help the company improve its quality of products and services. In fact, in the long run, these actions almost always negatively impact the bottom line. So, the fundamental question is, are you in business to make the shareholders happy or are you in business to sell quality products and services? This fundamental question must be answered.

The true answer to this question also shows that Free Enterprise priorities today are all wrong. It used to be that the customer is #1. Now, shareholders are #1 and customers are #2. This is both wrong and stupid. Until businesses go back to the idea that the customer is #1, corporations will continue to fail and need governmental subsidies. While shareholders are considered #1, there is really no such thing as Free Enterprise when it comes to multi-million dollar corporations… which is why they always need a handout from the government.

America’s Recession: loans and scams

Posted in economy, fraud, scams by commorancy on December 16, 2008

Economic Downturn & The Fed

Unless you’ve been hiding in a cave, you’re probably aware that we’re going through a fairly deep recession. Recessions are cyclical, but in this case it probably could have been either avoided or lessened IF the banks and lenders had not been offering creative financing techniques. It also could likely have been avoided if our current pro-business govt. administration hadn’t chosen to look the other way while bad mortgages were being doled out. The problem with all of the creative financing is that it tended to lead some people into believing they could afford a mortgage they could not afford. When the loan reset after the promotional period, the realization quickly set in. Worse, the situation was compounded by property investors who sank huge amounts of loaned money into properties that would eventually become valued less than the loan.

It’s not as if the handwriting wasn’t on the wall several years ago when the fed dropped the rate to 1 percent. Now, we are back in this exact situation again with the fed dropping the rate to an unprecedented 1/2 percent. The feds are, again, trying to spur the economy like they did 2-3 years ago. But, this time, the banks don’t have money to lend. So, the 1/2 percent may not trickle down into the mortgage market like it did several years ago.

But, our economy is still likely being set up for yet another financial failure. The banks that do have money to lend are still advertising on the radio claiming extremely low interest rates.  The problem isn’t the rate, but the loan you’ll be getting. If it’s a standard fixed rate loan, that’s fine. But, it’s the fine print you need to read. Don’t get locked into an adjustable rate mortgage or a limited time interest only loan. Once these creative loans reset in a couple of years, you may end up deep under water.

The Fed, therefore, needs to be extra careful when cutting the rates this low again to avoid the same mortgage problems all over again.

Scams in a down economy

With the economy being so depressed, it’s also a good idea to watch your money closely. As money gets tighter and tighter, the scammers will come out of the woodwork (and they already are). I’ve already noticed a drastic increase in spam and phishing emails since the economy has taken a turn. It’s going to get worse before it gets better.

There are many scams out there from the Nigerian 419 scam that claims to give you a ton of money only to rip you off of thousands of dollars before you realize it, to sending you what look like official invoices that only turn out to be scams in themselves. Don’t fall for them. The easiest way to avoid scams is to not give out any personal information to anyone who approaches you claiming to be from a legit company. This means, if you receive a call asking you to make a payment and they request for you to give a credit card over the phone, don’t. Make sure you know who this company is first and make sure you are a customer. Then, tell the company that you will call them back through their official channels and make a payment that way. As long as you are the person making the call to the official number, you should be safe. With incoming calls, you have no idea who is really calling you no matter what the CallerID says. Always, always call companies back from official numbers located on a trusted bill or from the back of your credit card.

TV advertisements that offer products or services usually employ people who are not paid very well. So, be wary when you give your credit card number out to TV commercial based purchases. Not only are some of these companies impossible to get refunds, your card number could be enrolled in a club or, worse, stolen by one of the telephone operators in an independent scam. You should always Google the product you are thinking of purchasing to 1) find out if you can find it cheaper online and 2) find out if people have had issues with either the product or the companies refund polices.

Get rich schemes are basically another form of scam. Yes, they do make someone rich… the person who created the scheme, but not you. Get rich schemes are usually designed to part you from your money. So, in a down economy, you should avoid get rich schemes (placing classified ads, setting up ecommerce sites that sell Amway products, or Multi Level Marketing – MLM schemes). Note that MLMs only make the top most people money. If you’re anywhere near the bottom, you will be parted from your money.

Craigslist and even eBay are a haven for scammers. Be careful when you work with people selling or renting things. Never buy or rent anything sight unseen and never give money out as a ‘deposit’ or to ‘hold’ something unless you truly trust the individual. Chances are, if the person you are thinking of doing business is presently outside of the US, you should immediately stop the transaction unless you know for sure that what they are selling/renting is legit.

If you are selling a car or renting out an apartment, watch out for scams here too. There are some people who are outside of the US who will claim to give you an excessive sum of money in the form of a check. They may even send you what looks like an official check.. the problem is that it will bounce causing you fees and other associated problems (and may let them get access to your account number). Don’t cash any checks like this.

The bottom line is that in this weak economy, you should be extra careful with your money as there are lots of desperate unemployed people willing to do anything to make a buck (or a thousand). Always make sure to do your homework before buying anything or giving out personal information to someone you don’t know. If you suspect a scam, you should alert your bank or credit card company immediately.

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