Legal is defined as everything connected with the system of law within a country or area. The definition Law is a system of rules created and enforced to regulate behaviour, usually it belongs to a country or an area.
Online and innovation have often evolved way in advance of laws and the legal system’s ability to cope.
The emphasis that different systems have produces a number of challenges. China’s systems are locked down under their view of cyber sovereignty to avoid a contagion of western ideas. Yet they and other authoritarian regimes treat the open western systems as a battle space to destabilise other countries and attack their critics.
The US system favours free speech over privacy, which directly clashes with European values. Much of these European values were shaped in the aftermath of having lived under Warsaw Pact era authoritarian regimes.
There is a clash of the ages undertaken over ethics and power and what’s legal. The law offers up more questions and ethical traps than answers. It’s into this legal morass that my posts tend to land, usually at the point of intersection between ethics, the law and technology.
When I started using the web I believed that it was a unique extra-legal space similar to what John Perry Barlow outlined at the start of the ‘web’ as we now know it. The reality is that the net has already been staked out by businesses that look rather similar to the robber barons of the gilded age. Authoritarian regimes found it surprisingly easy to bend to their will and now sell their expertise around the world.
Burger King’s Autopilot Whopper campaign reminds me of a lot of the classic work that Crispin Porter Bogusky have done for Burger King over the years. The Autopilot Whopper is based on the insight that Tesla cars machine learning powered vision system that helps with self driving function mistakes the Burger King logo for a Stop sign.
https://youtu.be/A0cb7wZVFf4
Autopilot Whopper entertaining with this schadenfreude around Tesla technology. And it also lands the message that the Burger King drive through is as good a place to stop as any.
YouTube announced the winners of its 2020 YouTube Works awards. I would strongly recommend that any brand planners bookmark this in their browser and dip in on a regular basis.
The one that really piqued my interest the most was Hulu’s campaign for live sports that tapped into a growing consumer cynicism around influencers. The sports linkage was using NBA basketball players as the influencers.
Public Enemy came back when we most need them. Flavor Flav seems to have patched up his beef with Chuck D. Public Enemy have partnered with DJ Premier to capture the zeitgeist. Black Lives Matter, COVID19 and chaotic leadership feature in State Of The Union (STFU). DJ Premier’s product references earlier Public Enemy works scratching in sounds of early Public Enemy vocals in this track. The beat is more laid back than what one would expect from the Bomb Squad production team. But the Public Enemy fire in the belly is still there.
The step chickens are a meme driven ‘cult’ that have sprung up on TikTok. More accurately they are a directed community. Here’s the founder on how they came about. Their heat has been parleyed in a community for a new app. From a product point-of-view, this means that something like TikTok could lose chunks of its user base IF the step chickens phenomenon was widely and successfully replicated. Given that it was a mix of smarts, happenstance and pure luck it isn’t likely: sorry brands.
German China-focused think-tank MERICS had a thoughtful presentation put together on the Hong Kong national security law. The presentation focused on the impact for the financial services sector. But there similar lessons to be drawn for professional services (accounting, management consultancy, legal firms). And only for a a slightly lesser effect on the strategy and planning functions of creative agencies, or counsel based PR functions.
On reflection, I would be concerned about how some of the creative briefs for China-focused campaigns that I have written would have faired against the Hong Kong national security law. Probably not that well.
What immediately becomes apparent is the implications for quality research into companies and economics won’t meet international standards. Which means more fodder for the likes of Muddy Waters Research LLC. It likely indicates a conscious effort for China to decouple from the international financial system.
The calculus behind the Hong Kong national security law seems to be that the Chinese government think yet another (internal) market for Chinese stocks will be a better deal than the traditional gateway to and from China Hong Kong has provided. I am not sure what this bet will mean. Shenzhen already has a robust stock market by Chinese standards; would China really need Hong Kong? Without the gateway role, Hong Kong would also find it harder to be the point of capital departure from China for high net worth citizens. Dampening capital flight would definitely hold some attraction to the Xi administration.
I guess where I should start this post in OSS is by going back. This time 20 years ago, we were in a time of economic irrational exuberance so large as to be like a fairy tale in comparison to Brexit and the coronavirus.
Irrational exuberance
Everyone believed that the future was going to be rebuilding the catalogue shopping business online. Consumers would have a raft of choice.
Advertisers were going to swap print and TV advertising for banner ads. Something that looked like small advertisements on the pages of newspapers at the time. Because of this, online display advertising was over-priced and everyone was happy.
In order to do these businesses, you needed a lot of servers and a lot of software. If you had the money you bought really good software and servers from Silicon Valley. Companies like Sun Microsystems, Silicon Graphics or Digital Equipment Corporation. These all ran variants of the Unix operating system.
If you were less fortunate you might be running on an Intel server running Windows NT, anything by IBM or repurposing a Mac from the design studio. The Mac made a surprisingly robust server solution mainly because the computer was so ‘dumb’. There wasn’t a lot that hackers could do to it at the time.
True hackers
People who were hackers in the truest sense realised that you didn’t have to pay for software to run on servers. If you knew where to go and had the right technical chops, you could have robust server software. You could end up paying good money to Microsoft and still need to use three times the amount of servers for a given load because Windows didn’t handle multiple threads as well. It couldn’t do as much ‘work’ as free software. You would get even more benefit if you were skilled enough to see how you could tweak it to meet your needs. Online communities also meant that you would find fellow travellers interested in similar tweaks and would collaborate with you.
A classic example of this would be Hotmail. Hotmail was founded on NetBSD servers and it took years for Microsoft to migrate away from it due to performance and scaling issues with Microsoft’s own software.
Yahoo! which used and contributed to various OSS projects including:
Debian Linux and later moved to an adapted version of Red Hat Linux
FreeBSD
PHP
A peer of Yahoo!’s founders David Filo and Jerry Yang, decided to make hacking together servers and web services easier for businesses and technologists. The founder was called Larry Augustin and the company he founded was VA Linux. VA Linux built workstations and servers for websites. VA Linux is now most famous for the largest opening day price increase on the NASDAQ; but they made seem really great computers.
For smaller businesses, a small start-up called Cobalt Networks came up with a relatively friendly server that could sit in the corner of an office called the Qube. This was popular in a number design offices as a file server and also ran numerous websites. As well as the cute form-factor, it made OSS more approachable for a lot of businesses and changed expectations about IT complexity.
Cobalt Qube
I was working on a mix of telecoms, enterprise and consumer technology clients. One of my clients . By the time I was working with VA Linux in April 2000, open source software (OSS) was a hot ticket. And both Cobalt Networks and VA Linux were at the forefront.
At this time OSS, in particular the Linux operating system was endorsed by IBM with a $1 billion investment in the community. This helped adoption by other large business technology companies including Oracle, SAP and Sun Microsystems.
Suddenly it was OSS everywhere. My client Palm was trying to move its photo-smartphone operating system to Linux underpinnings.
Where was Microsoft in all this?
Its hard to explain to someone under 30 how dominant Microsoft was a business at the time. They were steadily working towards a goal outlined by Bill Gates and Paul Allen in the mid-1970s
A computer on every desk, and in every home, running Microsoft software.
Paul Allen and Bill Gates, 1974 – 1975
Bill Gates wasn’t a cuddly billionaire who wanted to give the world toilets, but a dodgy looking technocrat who made Mark Zuckerberg seem human.
https://youtu.be/-hRUAdi3g5g
Microsoft had won the PC industry and was looking to extend itself into every aspect of business and home life. Microsoft injected investment into Apple at a time when the company was days away from bankruptcy. This made sense for a number of reasons:
The Apple Microsoft Office business was worth more than the investment into Apple
The deal allowed Microsoft to settle a number of patent disputes
It was a cheap distribution deal for the Microsoft Internet Explorer browser
The disappearance of Apple would have had serious issues in terms of antitrust regulation in the US into Microsoft’s core Windows business.
They’ve done a great job. They’re a company that’s done a great job. If you go back to 1997, when Steve came back, when they were almost bankrupt, we made an investment in Apple as part of settling a lawsuit. We, Microsoft made an investment. In a way, you could say it might have been the craziest thing we ever did. But, you know, they’ve taken the foundation of great innovation, some cash, and they’ve turned it into the most valuable company in the world.
Back then Bill Gates was the Mark Zuckerberg or the Sergei Brin of his day and even he almost missed the importance of the world wide web and the internet. Gates was paranoid about the next thing coming along and sweeping all his success away.
The internet represented one such threat.
Gates is as fearful as he is feared, and these days he worries most about the Internet, Usenetand the World Wide Web, which threaten his software monopoly by shifting the nexus of control from stand-alone computers to the network that connects them. The Internet, by design, has no central operating system that Microsoft or anybody else can patent and license. And its libertarian culture is devoted to open—that is to say, nonproprietary—standards, none of which were set by Microsoft. Gates moved quickly this year to embrace the Net, although it sometimes seemed he was trying to wrap Microsoft’s long arms around it.
Headliners: Bill Gates. – Time magazine. December 25, 1995
OSS represented a second such threat. Microsoft’s sales of enterprise software for businesses and other organisations was a high margin business. OSS was a threat to that business. Back in 2001, I started working with colleagues at an agency who were asked to deposition OSS products and the the underlying legal agreement (the GPL).
I was asked by my colleagues to write a briefing document of what OSS actually meant. It didn’t g0 down that well as it outlined the challenge of assailing an idea and a committed community. That didn’t stop our client Microsoft trying, mostly at the C-suite and policy level.
Decoding Xi Jinping’s Speech at the World Health Assembly – The Diplomat – The main target of Xi Jinping’s speech is the “global South” and, more specifically, the African continent. The terrain lost in Western democracies amid the pandemic will be hard to win back. However, in terms of global influence, the role of the global South and Africa is vital for China. There also, the image of China has been severely damaged. For the first time, African ambassadors to the PRC had to write a joint letter to protest how African residents were being treated in the PRC
Investigating China: COVID-19 and the CCP – The Diplomat – capitalizing on the growing crisis in the United States and Europe, the official media in China has been trumpeting China’s purported success in controlling the disease. China has also sent medical missions to countries such as Italy. Sending medical missions abroad had been a strategy the PRC used during the Cold War to promote a new international order: a “people’s revolutionary movement” against colonialism, imperialism, and hegemonism
Mixed reactions to current brand comms | YouGov – With the large number of brands clearly defaulting to the ‘all in this together’ message, it’s worth asking: ‘How well does this actually align with their brand values and how they are responding to the current crisis?’ Our research shows that 43% of Brits agree that brands/companies’ current messages and advertising are inauthentic. This figure increases to 52% of males (vs 35% of females). Furthermore, half of respondents (50%) disagree that brands/companies are putting their employees and their customers first and before the company and its profits.
The Crypto Price-Innovation Cycle – Andreessen Horowitz – crypto winters tend to indicate that like AI approaches before it, its not ready for adoption as a technology / use case. Success hasn’t really been in banking or logistics, where’s the adult entertainment play (which drove a lot of other technologies from 16mm cinema film to VHS and web video)
Thailand’s travel industry readies for relaunch | Financial Times – really interesting design hacks being deployed by the Thai tourism industry. It would be great if this positively moves the needle on Thailand’s reputation as a destination for miserly backpackers and adult entertainment
China’s ‘OK Boomer’: Generations Clash Over the Nation’s Future – The New York Times – China’s baby boomers, born in the 1960s and 70s, experienced a period of great opportunity, similar to American boomers post-WWII. After decades of political unrest and poor economic management under Mao Zedong, China was opening up, leading to abundant jobs and affordable housing. While the government maintained political control, society became more receptive to new ideas and access to information, including international websites, was available. This era offered a promising future.
In stark contrast, China today is very different, especially for Generation Z (those born after 1990). The economy recently experienced its first contraction since the Mao era due to the coronavirus pandemic, with unemployment estimated at 20%. Additionally, housing in major cities is now largely unaffordable for Gen Z, mirroring challenges faced by their counterparts in cities like New York and San Francisco.
Merkel cites ‘hard evidence’ Russian hackers targeted her | AFP.com – German Chancellor Angela Merkel expressed her deep distress over evidence of Russian cyberattacks against Germany, stating that these actions undermine her efforts to improve relations with Russia. She described the attacks as “more than uncomfortable” and warned that sanctions could be imposed if this malicious activity continues. Merkel also highlighted that German intelligence services have consistently reported Russian hackers attempting to spy on German lawmakers and politicians.
Troy Hunt: The Unattributable “db8151dd” Data Breach – interesting, looking at the headers, it looks like a wider scrape from multiple sources. It connects multiple social platform profile IDs alongside real world address data. Possibly a large CRM breach???
The report, confirmed by U.S. intelligence officials, claims that China threatened to withhold cooperation from the WHO’s coronavirus investigation if the agency declared a global health emergency. This is the second such report from a Western intelligence service, and it’s expected to worsen already strained relations between the United States and China concerning the pandemic, which has caused 280,000 deaths worldwide, with a quarter of those in the U.S.
Even if these allegations are not entirely accurate, their dissemination is negatively impacting the relationship between China and the U.S.
The VR winter — Benedict Evans – we haven’t worked out what you would do with a great VR device beyond games (or some very niche industrial application), and it’s not clear that we will. We’ve had five years of experimental projects and all sorts of content has been tried, and nothing other than games has really worked. Hell, even adult entertainment has worked as a driver
The meticulous design of Japanese environmental sounds – ‘kankyō ongaku’ – a strand of Japanese minimalism that emerged in the 1980s to soundtrack the architectural wonders and commercial advancements of the country’s economic boom years. In the west we put up with muzak; but the Japanese environmental sounds are highly engineered minimalistic experiences
The Internet Used to Make Us Smarter. Now, Not So Much. | Douglas Rushkoff – we too easily lose sight of what it is that’s truly revolutionary. By focusing on the shiny new toys and ignoring the human empowerment potentiated by these new media — the political and social capabilities they are retrieving — we end up surrendering them to the powers that be – I think this is as much about how is online as the online tools
Imagination Commits to Keeping U.K. HQ – For Now | EE Times – underlying this is very likely to be a worry for Imagination that a move to China could end up with its intellectual property owned by China. And that could worry its major customers, including Apple — a customer that the now former CEO Ron Black worked hard to win back
Luckin fraud admission leaves more questions than answers · TechNode – using part of his handsomely-valued Luckin shares as collateral to take out loans, Lu Zhengyao has made away with in excess of $500 million. That amount would have been much, much smaller if Luckin’s numbers were accurately reported. All this makes it hard to believe that COO Liu Jian would commit fraud without the actual or constructive knowledge Chairman Lu Zhengyao, CEO Qian Zhiya and CFO Reinout Hendrik Schakel. My present hypothesis is that Liu, as a long time errand boy for Chairman Lu Zhengyao, has taken the fall to buy time for Luckin’s management to work out their next move – interesting read. It does make you wonder about other Chinese firms
Booking Holdings to announce lay-offs after securing $4bn loan | Financial Times – (Glenn) Fogel told the 530 employees on the call, which was first reported by the Dutch newspaper NRC, that bookings on the travel company’s platforms had dropped 85 per cent year-on-year in the preceding week and that the loss in revenue because of reduced rates at hotels was even greater. – I’d imagine that’s going to blitz their Google advertising spend reputedly 10 billion dollars a year pre-COVID
Why China is losing the coronavirus narrative | Financial Times – just wow, it won’t affect public opinion that much, but will affect government and wonks : When Roger Roth received an email from the Chinese government asking him to sponsor a bill in the Wisconsin state legislature praising China’s response to coronavirus, he thought it must be a hoax. The sender had even appended a pre-written resolution full of Communist party talking points and dubious claims for the Wisconsin senate president to put to a vote. “I’ve never heard of a foreign government approaching a state legislature and asking them to pass a piece of legislation,” Sen Roth told me last week. “I thought this couldn’t be real.” Then he discovered it was indeed sent by China’s consul-general in Chicago. “I was astonished . . .[and] wrote a letter back: ‘dear consul general, NUTS’.”
HNA in chaos as internal divisions erupt in public | Financial Times – One investor who sought to buy a large real estate portfolio from HNA in late 2018 said that the deal fell through because it was no longer clear who was in control of the assets – this is interesting when you start about thinking allegations of all Chinese businesses (like Huawei) essentially being state-directed businesses. Especially when you consider it in the context
What really happens to the clothes you donate | Macleans – interesting complex supply chain for fibres and nothing. Also interesting how grading of garments stayed within the Asian diaspora formerly based in the British colonies of East Africa
