Obama and Boehner get along fine; politics is the problem









WASHINGTON — In summer 2011, negotiations between President Obama and House Speaker John A. Boehner over raising the debt ceiling featured plenty of drama.

There were private grumbles, a very public round of golf, a phone call from the White House that went unreturned and, overall, a lost opportunity to secure a "grand bargain" on spending and taxes.

Now, as high-stakes talks between Obama and Boehner rev up again, the lessons of that summer appear to be producing a new steadiness and comfort level between the two men.

After weeks of private phone calls and public posturing, the Ohio Republican quietly ducked into the White House on Sunday for his first one-on-one meeting with the president since mid-2011. The goal this time: forging a deal to avoid $500 billion in tax increases and spending cuts set to take effect in early January.

The face-to-face session came and went without a flood of leaks or post-meeting spin by either camp. The two sides even issued identical brief statements saying "lines of communication remain open," a far cry from Boehner's public complaint last Friday that prospects for compromise were "nowhere."

Obama had greased Sunday's meeting by giving Boehner a bottle of fine Italian wine — a Brunello di Montalcino — for his birthday on Nov. 17. Red wine was the speaker's drink of choice during the tense talks last year to raise the federal debt ceiling.

Boehner, for his part, didn't just call the president to wish him happy birthday. The son of a barkeeper sang him the first verse of the "Boehner Birthday Song," a three-sentence chant that ends with a Polka-style "Hey!"

"Personality has never been a roadblock to an agreement," said Brendan Buck, a Boehner spokesman. "The two men get along very well."

White House spokesman Jay Carney returned the sentiment: "The president likes and respects Speaker Boehner and looks forward to continuing to work with him."

If a deal falls apart, it probably will be a matter of politics, not personalities.

Members of the Republican right flank are all but certain to revolt if Boehner agrees to the president's proposal to raise taxes on the wealthiest Americans. And Obama will take heavy flack from left-leaning Democrats if he agrees to spending cuts sought by the GOP in Medicare, Social Security and other popular entitlement programs.

For weeks, the president has tried to build public pressure on Republicans. He kept the campaign up on Monday at a diesel engine plant near Detroit, where he suggested he was the one seeking a middle ground.

"I've said I will work with Republicans on a plan for economic growth, job creation and reducing our deficits and that has some compromises between Democrats and Republicans," Obama said. "I understand people have a lot of different views."

But Obama has not tried to go around or embarrass Boehner by seeking support from other Republican lawmakers. Boehner, in turn, has made a concerted effort to tone down the conservative critics in his ranks.

Obama had little one-on-one contact with Boehner, then the House Republican leader, in the first two years of his presidency. As the debt ceiling battle escalated in June 2011, the two men staged their first notable meeting on neutral territory: the golf course at Andrews Air Force Base. Obama and Boehner played on the same team, beating Vice President Joe Biden and Ohio Gov. John Kasich.

"They really made an effort with the theatrics with the golf game, for example, to show a message of reassurance that these people were not blood enemies," said Ross Baker, a professor of American politics at Rutgers University.

The game was followed by secret meetings, and they began to hammer out a $4-trillion "grand bargain" deficit-cutting deal. The talks were torpedoed and resuscitated throughout July. They came to an acrimonious end on July 22, with Boehner accusing Obama of moving the goal posts on new tax revenue.

Obama, appearing on television, groused about being "left at the altar" for the second time that month. Aides said Boehner had not returned the president's phone call.

Instead of a historic bargain, Congress passed a smaller deficit reduction bill at the 11th hour, including automatic across-the-board spending cuts now at play in the "fiscal cliff" talks.

Neither man seems to be holding a grudge — for now.

kathleen.hennessey@latimes.com

melanie.mason@latimes.com

Lisa Mascaro and Michael A. Memoli in the Washington bureau contributed to this report.



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A Google-a-Day Puzzle for Dec. 11











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @wiredgeekdad on Twitter.



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“X Factor” castoff Cheryl Cole files $2.3 million lawsuit against producers






LOS ANGELES (TheWrap.com) – Cheryl Cole, who was originally hired as a judge for the American version of “The X Factor” but was replaced by Pussycat Doll Nicole Scherzinger before the show premiered, is now suing the producers of the show for $ 2.3 million dollars, according to court papers obtained by TheWrap.


In the complaint against Blue Orbit Productions, filed in Los Angeles Superior Court, Girls Aloud singer Cole claims that she entered a pay-or-play agreement with Blue Orbit Productions in April 22, 2011, that guaranteed her $ 1.8 million for the first season of the show, and $ 2 million for the second.






The suit also says that Cole was also due to receive other expenses for housing, wardrobe, styling and general living expenses.


Cole claims that she received the $ 1.8 million for the first season, but the producers didn’t pony up for the wardrobe/styling allowance, housing allowance (which, according to the suit, was $ 15,000 per month) or living allowance.


She also didn’t receive her guaranteed $ 2 million for the second season, the suit claims.


Now Cole wants damages “in excess of $ 2.3 million,” plus interest at the legal rate, and court costs.


TheWrap was unable to reach Blue Orbit Productions for comment.


(Pamela Chelin contributed to this report)


TV News Headlines – Yahoo! News


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Concussion Liability Issues Could Stretch Beyond N.F.L.


Paul Kitagaki Jr./The Sacramento Bee, via Associated Press


Insurers could raise premiums with a higher risk of lawsuits for concussions, like the one 49ers quarterback Alex Smith sustained a month ago.







As the N.F.L. confronts a raft of lawsuits brought by thousands of former players who accuse the league of hiding information about the dangers of concussions, a less visible battle that may have a more widespread effect in the sport is unfolding between the league and 32 of its current and former insurers.




The dispute revolves around how much money, if any, the insurers are obliged to pay for the league’s mounting legal bills and the hundreds of millions of dollars in potential damages that might stem from the cases brought by the retired players.


Regardless of how it is resolved, the dispute could hurt teams, leagues and schools at all levels if insurers raise premiums to compensate for the increased risk of lawsuits from the families of people who play hockey, lacrosse and other contact sports.


The N.F.L., which generates about $9 billion a year, may be equipped to handle these legal challenges. But colleges, high schools and club teams may be forced to consider severe measures in the face of liability issues, like raising fees to offset higher premiums; capping potential damages; and requiring players to sign away their right to sue coaches and schools. Some schools and leagues may even shut down teams because the expense and legal risk are too high.


“Insurers will be tightening up their own coverage and make sports more expensive,” said Robert Boland, who teaches sports law at New York University. “It could make the sustainability of certain sports a real issue.”


The N.F.L. contends that the insurers, some of whom wrote policies in the 1960s, have a duty to defend the league, which has paid them millions of dollars in premiums. The question for the N.F.L. is not whether the insurers are required to help the league, but rather what percent of the league’s expenses each insurer is obliged to cover.


The 32 insurance companies have varying arguments against the league. Some wrote policies for a limited number of years and contend their obligations should also be limited. Others contend they wrote policies for the N.F.L.’s marketing arm — for licensing disputes, for example — not the league itself.


A few of the companies went bankrupt or merged with rivals. Some insurers wrote primary policies that covered up to the first $1 million of claims; the rest insured obligations in excess of that amount.


Creating a formula for how to apportion liability will in some cases depend on the broader case between the league and its players now in federal court in Pennsylvania. If the N.F.L. persuades the judge to dismiss the case, the league will be left trying to recoup its legal costs from the insurers. If the judge allows the players’ case to proceed, the definitions of when, how and whether a player’s concussions led to his illness will become critical in shaping the insurers’ exposure, and could take years to sort out.


“This is baby step 1 in the process for everyone figuring how deep in the soup they are,” said Christopher Fusco, a lawyer who has worked on similar insurance cases but is not involved in the N.F.L. litigation. “Baby step 2 will be to figure out the facts.”


Fusco and other lawyers said the facts would largely come from the underlying suit between the league and the more than 3,000 retired players, including determining when the players sustained the head trauma and their injuries. This will probably be a long process because many of the retired players in the underlying suit, some of whom are now having memory loss, played decades ago, when concussions were often undiagnosed or not recorded.


Many of the insurance companies named in the suits declined to comment, citing the continuing litigation. The N.F.L. also did not comment.


The two-tiered battle between the league and its former players and insurers echoes the litigation stemming from asbestos claims because both cases center on long-tail claims, or injuries that could take years to manifest themselves.


One of the critical points of contention in those cases was how to define an occurrence to determine an insurer’s liability. In the context of the N.F.L. case, the question will be whether a player’s injuries should be treated as a single claim or a series of claims based on the number of concussions he received or the number of seasons he played.


“This is an issue that gets to the crux of asbestos and environmental litigation,” said William M. Wilt, the president of Assured Research, an insurance advisory firm. “If an occurrence is defined as each player and each season he played, you could hit the policy limits multiple times.”


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Study Predicts Future for U.S. as No. 2 Economy, but Energy Independent





WASHINGTON — A new intelligence assessment of global trends projects that China will outstrip the United States as the leading economic power before 2030, but that America will remain an indispensable world leader, bolstered in part by an era of energy independence.




Russia’s clout will wane, as will the economic strength of other countries reliant on oil for revenues, the assessment says.


“There will not be any hegemonic power,” the 166-page report says. “Power will shift to networks and coalitions in a multipolar world.”


The product of four years of intelligence-gathering and analysis, the study, by the National Intelligence Council, presents grounds for optimism and pessimism in nearly equal measure. The council reports to the director of national intelligence and has responsibilities for long-term strategic analysis.


One remarkable development it anticipates is a spreading affluence that leads to a larger global middle class that is better educated and has wider access to health care and communications technologies like the Internet and smartphones. “The growth of the global middle class constitutes a tectonic shift,” the study says, adding that billions of people will gain new individual power as they climb out of poverty. “For the first time, a majority of the world’s population will not be impoverished, and the middle classes will be the most important social and economic sector in the vast majority of countries around the world.”


At the same time, it warns, half of the world’s population will probably be living in areas that suffer from severe shortages of fresh water, meaning that management of natural resources will be a crucial component of global national security efforts.


The study also warns of the risk that terrorists could mount a computer-network attack in which the casualties would be measured not by the hundreds or thousands killed but by the millions severely affected by damaged infrastructure, like electrical grids being taken down.


At least 15 countries are “at high risk of state failure” by 2030, the report predicts, among them Afghanistan and Pakistan, but also Burundi, Rwanda, Somalia, Uganda and Yemen.


The study acknowledges that the future “is malleable,” and it lists important “game changers” that will most influence the global scene through 2030: a crisis-prone world economy, shortcomings in governance, conflicts within states and between them, the impact of new technologies and whether the United States can “work with new partners to reinvent the international system.”


The best-case situation for global security until 2030, according to the study, would be a growing political partnership between the United States and China. But it could take a crisis to bring Washington and Beijing together — something like a nuclear standoff between India and Pakistan resolved only by bold cooperation between the United States and China.


The worst-case situation envisions a stalling of economic globalization that would preclude advancement of financial well-being around the world. That would be a likely outcome after an outbreak of a health pandemic that, even if short-lived, would result in closed borders and economic isolationism.


The chief author and manager of the project, Mathew Burrows, who is counselor for the National Intelligence Council, said the findings had been presented in advance in more than 20 nations to groups of academic experts, business leaders and government officials, including local intelligence officers.


In an interview, Mr. Burrows noted that the audiences in China were far more accepting of the American intelligence assessments — both those predicting China’s economic ascendancy and those warning of political dangers if there was no reform of governance in Beijing — than were audiences in Russia.


To assess the validity of this study, the research and analysis team graded its past work on global trends, an effort undertaken every four years since 1996. Past studies, it found, underestimated the speed with which changes arrived on the global scene.


Concerns were raised that past reports may have suffered “blind spots and biases.” And while grand “isms” like fascism and communism might not be on the horizon, this study noted, previous assessments should have paid greater attention to ideology.


The risk of conflict within a state — like a civil war or an insurgency — is expected to decline in Latin America, but will remain high in sub-Saharan Africa, in parts of the Middle East and South Asia, and in some Asia-Pacific island hot spots, the study warns.


“A more fragmented international system increases the risks” of conflict between states, the study says. “Additionally, increased resource competition, spread of lethal technologies and spillover from regional conflicts increase the potential for interstate conflicts.”


Most worrisome — and already a part of the global security dynamic — is an assessment that future wars in Asia and the Middle East could include nuclear weapons.


Other important demographic trends will be aging populations in Europe, Japan, South Korea and Taiwan, which could slow their economies further. The report warns that Russia’s economy will join those places in experiencing “slow relative declines.” The United States will benefit from its domestic oil and natural gas supplies and new technologies to tap them, allowing the nation to become energy independent and even a net exporter of fuel.


In general, it found, “the health of the global economy increasingly will be linked to how well the developing world does — more so than the traditional West.”


In addition to China, the developing nations that “will become especially important to the global economy” include Brazil, Colombia, India, Indonesia, Nigeria, South Africa and Turkey.


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Rise in renewable energy will require more use of fossil fuels









The Delta Energy Center, a power plant about an hour outside San Francisco, was roaring at nearly full bore one day last month, its four gas and steam turbines churning out 880 megawatts of electricity to the California grid.


On the horizon, across an industrial shipping channel on the Sacramento-San Joaquin River Delta, scores of wind turbines stood dead still. The air was too calm to turn their blades — or many others across the state that day. Wind provided just 33 megawatts of power statewide in the midafternoon, less than 1% of the potential from wind farms capable of producing 4,000 megawatts of electricity.


As is true on many days in California when multibillion-dollar investments in wind and solar energy plants are thwarted by the weather, the void was filled by gas-fired plants like the Delta Energy Center.





One of the hidden costs of solar and wind power — and a problem the state is not yet prepared to meet — is that wind and solar energy must be backed up by other sources, typically gas-fired generators. As more solar and wind energy generators come online, fulfilling a legal mandate to produce one-third of California's electricity by 2020, the demand will rise for more backup power from fossil fuel plants.


"The public hears solar is free, wind is free," said Mitchell Weinberg, director of strategic development for Calpine Corp., which owns Delta Energy Center. "But it is a lot more complicated than that."


Wind and solar energy are called intermittent sources, because the power they produce can suddenly disappear when a cloud bank moves across the Mojave Desert or wind stops blowing through the Tehachapi Mountains. In just half an hour, a thousand megawatts of electricity — the output of a nuclear reactor — can disappear and threaten stability of the grid.


To avoid that calamity, fossil fuel plants have to be ready to generate electricity in mere seconds. That requires turbines to be hot and spinning, but not producing much electricity until complex data networks detect a sudden drop in the output of renewables. Then, computerized switches are thrown and the turbines roar to life, delivering power just in time to avoid potential blackouts.


The state's electricity system can handle the fluctuations from existing renewable output, but by 2020 vast wind and solar complexes will sprawl across the state, and the problem will become more severe.


Just how much added capacity will be needed from traditional sources is the subject of heated debate by utility officials, government regulators and policy experts. The concerns are expected to come to a head next year when the state must adopt a 10-year plan for its energy needs.


"This issue is someplace between a significant concern and a major problem," said electricity system expert Severin Borenstein, a professor at UC Berkeley's Haas School of Business. "There is definitely going to be a need for more reserves."


Borenstein said state legislators and the governor did not consider all of the details, such as unleashing this new demand for fossil fuel generators, when they set the 33% mandate for renewable energy. The state now gets 20% of its power from renewables, in part from older hydro and geothermal energy. Gov. Jerry Brown has advocated upping the goal to 40%.


The cost to consumers in the years ahead could be in the billions of dollars, according to industry experts. California's electricity prices are already among the highest in the nation and are projected to rise sharply in coming years. At the moment, the need for reserve power isn't considered a cost of renewable power, though consumers have to bear its costs as well.


The California Independent System Operator, the nonprofit company that runs the grid, estimates that by 2020 the state will need to double its reserve capacity. California now maintains a margin of 7% to 8% above projected daily demand, in case a nuclear power plant goes offline or outages occur. But when 33% of the state's power comes from renewables, that margin will have to rise to 15%, said Stephen Berberich, the firm's chief executive.


Nobody knows whether Berberich's estimate is right or how much the added capacity will cost. The California Energy Commission, which has responsibility for licensing new power plants and forecasting future power demand, said it doesn't have the analytical tools necessary to know how much reserve power will be needed.


"It is frankly in the development stage," said Mike Jaske, the commission's senior policy analyst for electricity supply.


The independent system operator is warning that by 2017 the state will be short by about 3,100 megawatts of flexible power that it can dedicate to meeting reserve needs — about what three nuclear reactors produce. The company is pushing the state Public Utility Commission to require that capacity. The commission has been noncommittal so far.


Solar and wind advocates reject those concerns. They say renewables can provide their own reserve cushion because solar and wind generators will be spread across vast areas of the state. If wind power is down in one region, it might be up in another. If wind power is down statewide, desert sunshine might boost solar.


On the day last month when wind energy provided just 33 megawatts of power statewide, a brilliant sun spiked solar plant output.


The independent system operator "likes to show these frightening graphs for shock value," said Nancy Rader, executive director of the California Wind Energy Assn.


Edward Randolph, director of the Public Utility Commission's energy division, said the independent system operator understandably wants more reserves because its primary focus is on the reliability of the system. The PUC is focused on cost. If there is an immediate problem with reserves, the PUC can order utilities to make more available. And in three to five years, batteries, flywheels or other new technology can provide storage that would make reserves much less necessary, he said.





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Wired Science Space Photo of the Day: Star Formation in Carina











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Alejandro González Iñárritu to direct “Birdman”






LOS ANGELES (TheWrap.com) – Alejandro González Iñárritu is set to direct “Birdman” from a script he co-wrote with Nicolas Giacobone, Alexander Dinelaris and Armando Bo, a person familiar with the project told TheWrap.


Known for more dramatic pieces like “Amores Perros,” “Babel” and “Biutiful,” Iñárritu will be tacking a comedic film for the first time.






“Birdman” tells the story of an actor who once played an iconic superhero but is now facing a crisis as he battles his ego and attempts to recover his family and career in the days leading up to the opening of a Broadway play.


Production is slated to begin in March 2013. The film will be produced by Iñárritu, Robert Graf and John Lesher. Iñárritu and the film are represented by CAA.


Iñárritu is also moving forward on another film, “The Revenant,” which was announced in 2011, a person with knowledge of that project told TheWrap.


Movies News Headlines – Yahoo! News


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A Breakthrough Against Leukemia Using Altered T-Cells





PHILIPSBURG, Pa. — Emma Whitehead has been bounding around the house lately, practicing somersaults and rugby-style tumbles that make her parents wince.




It is hard to believe, but last spring Emma, then 6, was near death from leukemia. She had relapsed twice after chemotherapy, and doctors had run out of options.


Desperate to save her, her parents sought an experimental treatment at the Children’s Hospital of Philadelphia, one that had never before been tried in a child, or in anyone with the type of leukemia Emma had. The experiment, in April, used a disabled form of the virus that causes AIDS to reprogram Emma’s immune system genetically to kill cancer cells.


The treatment very nearly killed her. But she emerged from it cancer-free, and about seven months later is still in complete remission. She is the first child and one of the first humans ever in whom new techniques have achieved a long-sought goal — giving a patient’s own immune system the lasting ability to fight cancer.


Emma had been ill with acute lymphoblastic leukemia since 2010, when she was 5, said her parents, Kari and Tom. She is their only child.


She is among just a dozen patients with advanced leukemia to have received the experimental treatment, which was developed at the University of Pennsylvania. Similar approaches are also being tried at other centers, including the National Cancer Institute and Memorial Sloan-Kettering Cancer Center in New York.


“Our goal is to have a cure, but we can’t say that word,” said Dr. Carl June, who leads the research team at the University of Pennsylvania. He hopes the new treatment will eventually replace bone-marrow transplantation, an even more arduous, risky and expensive procedure that is now the last hope when other treatments fail in leukemia and related diseases.


Three adults with chronic leukemia treated at the University of Pennsylvania have also had complete remissions, with no signs of disease; two of them have been well for more than two years, said Dr. David Porter. Four adults improved but did not have full remissions, and one was treated too recently to evaluate. A child improved and then relapsed. In two adults, the treatment did not work at all. The Pennsylvania researchers were presenting their results on Sunday and Monday in Atlanta at a meeting of the American Society of Hematology.


Despite the mixed results, cancer experts not involved with the research say it has tremendous promise, because even in this early phase of testing it has worked in seemingly hopeless cases. “I think this is a major breakthrough,” said Dr. Ivan Borrello, a cancer expert and associate professor of medicine at the Johns Hopkins University School of Medicine.


Dr. John Wagner, the director of pediatric blood and marrow transplantation at the University of Minnesota, called the Pennsylvania results “phenomenal” and said they were “what we’ve all been working and hoping for but not seeing to this extent.”


A major drug company, Novartis, is betting on the Pennsylvania team and has committed $20 million to building a research center on the university’s campus to bring the treatment to market.


Hervé Hoppenot, the president of Novartis Oncology, called the research “fantastic” and said it had the potential — if the early results held up — to revolutionize the treatment of leukemia and related blood cancers. Researchers say the same approach, reprogramming the patient’s immune system, may also eventually be used against tumors like breast and prostate cancer.


To perform the treatment, doctors remove millions of the patient’s T-cells — a type of white blood cell — and insert new genes that enable the T-cells to kill cancer cells. The technique employs a disabled form of H.I.V. because it is very good at carrying genetic material into T-cells. The new genes program the T-cells to attack B-cells, a normal part of the immune system that turn malignant in leukemia.


The altered T-cells — called chimeric antigen receptor cells — are then dripped back into the patient’s veins, and if all goes well they multiply and start destroying the cancer.


The T-cells home in on a protein called CD-19 that is found on the surface of most B-cells, whether they are healthy or malignant.


A sign that the treatment is working is that the patient becomes terribly ill, with raging fevers and chills — a reaction that oncologists call “shake and bake,” Dr. June said. Its medical name is cytokine-release syndrome, or cytokine storm, referring to the natural chemicals that pour out of cells in the immune system as they are being activated, causing fevers and other symptoms. The storm can also flood the lungs and cause perilous drops in blood pressure — effects that nearly killed Emma.


Steroids sometimes ease the reaction, but they did not help Emma. Her temperature hit 105. She wound up on a ventilator, unconscious and swollen almost beyond recognition, surrounded by friends and family who had come to say goodbye.


But at the 11th hour, a battery of blood tests gave the researchers a clue as to what might help save Emma: her level of one of the cytokines, interleukin-6 or IL-6, had shot up a thousandfold. Doctors had never seen such a spike before and thought it might be what was making her so sick.


Dr. June knew that a drug could lower IL-6 — his daughter takes it for rheumatoid arthritis. It had never been used for a crisis like Emma’s, but there was little to lose. Her oncologist, Dr. Stephan A. Grupp, ordered the drug. The response, he said, was “amazing.”


Within hours, Emma began to stabilize. She woke up a week later, on May 2, the day she turned 7; the intensive-care staff sang “Happy Birthday.”


Since then, the research team has used the same drug, tocilizumab, in several other patients.


In patients with lasting remissions after the treatment, the altered T-cells persist in the bloodstream, though in smaller numbers than when they were fighting the disease. Some patients have had the cells for years.


Dr. Michel Sadelain, who conducts similar studies at the Sloan-Kettering Institute, said: “These T-cells are living drugs. With a pill, you take it, it’s eliminated from your body and you have to take it again.” But T-cells, he said, “could potentially be given only once, maybe only once or twice or three times.”


The Pennsylvania researchers said they were surprised to find any big drug company interested in their work, because a new batch of T-cells must be created for each patient — a far cry from the familiar commercial strategy of developing products like Viagra or cholesterol medicines, in which millions of people take the same drug.


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You for Sale: Company Envisions ‘Vaults’ for Personal Data


Peter DaSilva for The New York Times


Michael Fertik, the founder and chief executive of Reputation.com, at its offices in Redwood City, Calif., where he has amassed a database of information collected on millions of consumers.





“YOU are walking around naked on the Internet and you need some clothes,” says Michael Fertik. “I am going to sell you some.”


Naked? Not exactly, but close.


Mr. Fertik, 34, is the chief executive of Reputation.com, a company that helps people manage their online reputations. From his perch here in Silicon Valley, he views the digital screens in our lives, the smartphones and the tablets, the desktops and the laptops, as windows of a house. People go about their lives on the inside, he says, while dozens of marketing and analytics companies watch through the windows, sizing them up like peeping Toms.


By now many Americans are learning that they are living in a surveillance economy. “Information resellers,” also known as “data brokers,” have collected hundreds to thousands of details — what we buy, our race or ethnicity, our finances and health concerns, our Web activities and social networks — on almost every American adult. Other companies that specialize in ranking consumers use computer algorithms to covertly score Internet users, identifying some as “high-value” consumers worthy of receiving pitches for premium credit cards and other offers, while dismissing others as a waste of time and marketing money. Yet another type of company, called an ad-trading platform, profiles Internet users and auctions off online access to them to marketers in a practice called “real-time bidding.”


As these practices have come to light, several members of Congress, and federal agencies, have opened investigations.


At least for now, however, these companies typically do not permit consumers to see the records or marketing scores that have been compiled about them. And that is perfectly legal.


Now, Mr. Fertik, the loquacious, lion-maned founder of Reputation.com, says he has the free-market solution. He calls it a “data vault,” or “a bank for other people’s data.”


Here at Reputation.com’s headquarters, a vast open-plan office decorated with industrial-looking metal struts and reclaimed wood — a discreet homage to the lab where Thomas Edison invented the light bulb — his company has amassed a database on millions of consumers. Mr. Fertik plans to use it to sell people on the idea of taking control of their own marketing profiles. To succeed, he will have to persuade people that they must take charge of their digital personas.


Pointing out the potential hazards posed by data brokers and the like is part of Mr. Fertik’s M.O. Covert online profiling and scoring, he says, may unfairly exclude certain Internet users from marketing offers that could affect their financial, educational or health opportunities — a practice Mr. Fertik calls “Weblining.” He plans to market Reputation.com’s data vault, scheduled to open for business early next year, as an antidote.


“A data privacy vault,” he says, “is a way to control yourself as a person.”


Reputation.com is at the forefront of a nascent industry called “personal identity management.” The company’s business model for its vault service involves collecting data about consumers’ marketing preferences and giving them the option to share the information on a limited basis with certain companies in exchange for coupons, say, or status upgrades. In turn, participating companies will get access both to potential customers who welcome their pitches and to details about the exact products and services those people are seeking. In theory, the data vault would earn money as a kind of authorization supervisor, managing the permissions that marketers would need to access information about Reputation.com’s clients.


To some, the idea seems a bit quixotic.


Reputation.com, with $67 million in venture capital, is not making a profit. Although the company’s “privacy” products, like removing clients’ personal information from list broker and marketing databases, are popular, its reputation management techniques can be controversial. For instance, it offers services meant to make negative commentary about individual or corporate clients less visible on the Web.


And there are other hurdles, like competition. A few companies, like Personal, have already introduced vault services. Also, a number of other enterprises have tried — and quickly failed — to sell consumers on data lockers.


Even so, Mr. Fertik contends Reputation.com has the answer. The company already has several hundred thousand paying customers, he says, and patents on software that can identify consumers’ information online and score their reputations. He intends to show clients their scores and advise them on how to improve them.


“You can’t just build a vault and wish that vendors cared enough about your data to pay for it,” Mr. Fertik says. “You have to build a business that gives you the lift to accumulate a data set and attract consumers, the science to create insights that are valuable to vendors, and the power to impose restrictions on the companies who consume your data.”


THE consumer data trade is large and largely unregulated.


Companies and organizations in the United States spend more than $2 billion a year on third-party data about individuals, according to a report last year on personal identity management from Forrester Research, a market research firm. They spend billions more on credit data, market research and customer data analytics, the report said.


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