An Appointment With Kim Dotcom

Paul Spain is the host of the weekly NZ Tech Podcast, one of New Zealand’s leading locally produced podcasts and often appears on TV and video as a commentator on consumer and business technology topics.

AUCKLAND, NEW ZEALAND — It’s been said that Kim Dotcom is a villain. Many, particularly those in the film industry and law enforcement, believe it. To others, he is a hero standing up for the rights of Internet users everywhere.

[More from Mashable: Kim Dotcom’s Mega Begins Early Rollout]

I wanted to find out for myself where he stood.

I arrived at the Dotcom Mansion early Sunday afternoon New Zealand time. It was just a few hours after the launch of Kim Dotcom’s new website Mega.co.nz and one year since his mansion was raided and he was arrested by New Zealand police in conjunction with a U.S. request to extradite him.

[More from Mashable: Kim Dotcom’s Mega Loses Web Domain Before Debut]

A friendly Kim Dotcom greeted each of us in a small media gathering, before sitting at the head of the table flanked by Ira Rothken, his California-based attorney.

I expected a prepared statement. That wasn’t the case. Dotcom shared his excitement about the 250,000 Mega signups in the first two hours and soon led into Q&A session for the remaining 45-minutes. He proved to be extremely adept in the way he responded to questions, working effortlessly to position Mega as an innovator. He indicated a desire to help the film industry succeed in the world of digital downloads and streaming — rather than being just a company out to line its own pockets.

Dotcom’s opinions and arguments for his cause were strong and generally well thought out, though on occasion seemed less robust. For instance he suggested he’d found a great way films could be funded in the future. His concept involves studios signing up digital streaming distributors around the world to fund a movie ahead of its production.

He felt distributors might pay for streaming rights before production, thereby funding the production. Unfortunately, I feel revenues from streaming (now and for the foreseeable future) are typically so low this would only provide a small fraction of the funds needed to produce a movie. And who wants to risk paying up front for a movie that might be a flop?

When asked about whether he would stay in New Zealand if he succeeds in stopping his extradition to the U.S. later this year, he was non-committal. On one hand he said he loved the country but on another he was worried he’d be persecuted by authorities, and in that case he’d leave. He spoke of journalists, music and movie producers on their way to visit him being harassed by customs officials upon arrival in the country –- including strip searches and even a request to view the content of one visitor’s laptop. I’ve not been able to verify these rather extreme occurrences.

Dotcom has positioned Mega as a service that sits between Dropbox and his previous site Megaupload -– with the added benefits of end-to-end encryption. He and Rothken went to great lengths to highlight that Mega would operate entirely within the law.

Dotcom made little effort to suggest Mega would be less prone to being a haven to copyright materials than Megaupload was. It seems there will continue to be a game of cat and mouse afoot as Dotcom and authorities try to outwit each other.

(A full audio recording of the discussion will be available later today at NZ Tech Podcast.)

In a one-on-one setting with Dotcom, I tried to gain more understanding about the open source elements of the Mega service and his commitment to New Zealand. Interestingly he was reticent to provide solid answers to either question and provided what I felt were just pat answers aimed at fobbing me off.

As we left the compound mid-afternoon, we saw Kim on stage rehearsing for the evening performance he would lead, with the support of musicians, his co-accused and investors in the new Mega. That performance included a dramatization of the raid on his home one year before. It was a gathering filled with media from around the country and a few from abroad. In the public context he continued to sell Mega extremely well –- to the point where someone commented to me that the event at times felt like a religious or marketing conference.

Dotcom currently remains on bail until his extradition hearing due in September. Amongst those in attendance, it appeared widely accepted that the bid to extradite him from New Zealand to the U.S. is likely to fail because of mistakes made by law enforcement and New Zealand spy agency GCSB.

After my visit, I’m left with a number of fairly clear impressions about Kim Dotcom and Mega. How you take these will depend on which side of the fence you stand:

1. Mega’s management team is making every effort to operate in a manner that does not fall afoul of the law (though it could be argued they did the same with Megaupload).


2. Mega will be used to distribute copyrighted materials such as movies, TV shows and music -– though likely to a lesser extent than Megaupload did.


3. Kim Dotcom will continue to draw controversy and be outspoken about the rights of Internet users everywhere. He is not backing down.

Love him or hate him, Kim Dotcom is back in business and, if he’s to be believed, no fair court will be able to stop him.

Dotcom raid being re-enacted at the mansion.

Click here to view this gallery.

Photos by Paul Spain

This story originally published on Mashable here.

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Stars rub shoulders with politicos at inauguration

WASHINGTON (AP) — It's not exactly the Red Carpet ceremony, but President Barack Obama's second-term inauguration has an unmistakable Hollywood look.

There was a loud cheer for Beyonce and Jay-Z as they took their places at the Capitol Monday to watch Obama take the public oath of office for his second term. The two stopped to chat with Rev. Al Sharpton.

Actress Eva Longoria was seated on the platform outside the Capitol. Also seated in the crowd were singer Katy Perry, wearing an orange coat, and John Mayer.

Musicians Kelly Clarkson and James Taylor were present, as well, to perform at the inaugural ceremony.

And former Boston Celtics great Bill Russell was in the crowd, too.

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Recipes for Health: Lentil, Celery and Tomato Minestrone

Andrew Scrivani for The New York Times

If you did a lot of cooking over the Christmas and New Year’s holidays you may have some celery hearts lingering in your refrigerator. You needed a few branches for a stew, a stock, or a soup, so you bought a whole bunch, and here it is weeks later and the rest of the celery is wilting in the produce drawer.

This doesn’t have to happen if you think of this vegetable as something more than an aromatic. I’m a big fan of celery, both raw and cooked, as the main ingredient or as one of several featured ingredients in a dish. You can do the traditional thing with raw celery and dice it up and add it to a potato, tuna or egg salad, or you can make a celery salad, slicing the branches as thin as you can get them and tossing them with herbs, radishes, oil and vinegar, and blue cheese. If you are cooking with celery, don’t stop at one branch when you make soup. The celery contributes a wonderful herbal flavor dimension. It retains its texture for a long time when you cook it, so I used it as the main vegetable in a risotto and loved the way it stood up to the creamy rice.

You always see celery listed as an ingredient in tonic juices and blender drinks. It has long been used in Chinese medicine to help control high blood pressure, which makes sense because it contains phytochemicals called phthalides that reduce stress hormones and work to relax the muscle walls in arteries, increasing blood flow. The vegetable is an excellent source of Vitamins K and C, and a very good source of potassium, folate, dietary fiber, molybdenum, manganese, and Vitamin B6. Another bonus attribute – it is very low in calories. However, it is on the high side as far as sodium goes.

Lentil, Celery and Tomato Minestrone

I make minestrones like this all the time, but I hadn’t made a version with this much celery in it until I made this one, and I loved the dimension of flavor it contributes to the mix.

1 cup lentils, rinsed

1 onion, halved

A bouquet garni made with 2 sprigs each thyme and parsley, a bay leaf, and a Parmesan rind

1 1/2 quarts water

1 tablespoon extra virgin olive oil

1 medium carrot, diced

3 celery stalks, diced

2 garlic cloves, minced

Salt, preferably kosher salt, to taste

1 28-ounce can chopped tomatoes, with liquid

Pinch of sugar

2 tablespoons tomato paste

1/4 cup chopped fresh parsley

Very thinly sliced celery, from the inner heart, for garnish

Freshly grated Parmesan cheese for serving

1. Combine the lentils, 1/2 onion and the bouquet garni with 1 quart water in a saucepan and bring to a boil. Reduce the heat, add salt to taste, cover and simmer 30 minutes.

2. Chop the remaining onion. Heat the olive oil in a large, heavy soup pot or Dutch oven over medium heat and add the onion, carrot, and celery. Cook, stirring often, until the onion is tender, about 5 minutes, and add the garlic and a pinch of salt. Stir together until fragrant, about 1 minute, and add the canned tomatoes with their liquid and the sugar. Bring to a simmer and cook, stirring often, for about 10 minutes, until the tomatoes have cooked down somewhat and smell fragrant.

3. Add the lentils with their broth, the tomato paste, salt to taste, an additional 2 cups water, and bring to a boil. Reduce the heat, cover, and simmer 30 minutes. Taste and adjust seasonings. Season to taste with freshly ground pepper, stir in the parsley and serve, garnishing each bowl with thinly sliced celery heart if you want some crunch, and passing the Parmesan at the table.

Yield: Serves 4 to 6 (4 if there are teen-agers in your house)

Advance preparation: This will keep for three or four days in the refrigerator. It may require thinning out. It’s even better the day after you make it. I have a teenage son and he just about polished off the leftovers – which should have served 3 – the day after I tested the recipe.

Variation: Shortly before serving add 2 cups baby spinach and simmer just until wilted.

Nutritional information per serving (4 servings): 276 calories; 4 grams fat; 0 grams saturated fat; 1 gram polyunsaturated fat; 2 grams monounsaturated fat; 0 milligrams cholesterol; 49 grams carbohydrates; 12 grams dietary fiber; 392 milligrams sodium (does not include salt to taste); 17 grams protein

Nutritional information per serving (6 servings): 184 calories; 2 grams fat; 0 grams saturated fat; 0 grams polyunsaturated fat; 2 grams monounsaturated fat; 0 milligrams cholesterol; 32 grams carbohydrates; 8 grams dietary fiber; 261 milligrams sodium (does not include salt to taste); 11 grams protein

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

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Finance, banking the least-trusted industries, survey finds

Financial and banking firms were the least trusted industries last year, according to a PR firm's survey. (Andrew Gombert / EPA)

January 21, 2013, 8:21 a.m.

Financial services and banks were the least-trusted industries last year, according to a public relations firm's annual survey.

Only 46% of U.S. respondents said they trusted the financial services industry, and only 41% said they trusted banks in 2012, according to PR agency Edelman's annual survey of consumers' trust.

That's still an improvement, however. The perception of the financial and banking industries improved from 2011, when only 25% of U.S. respondents found them trustworthy, Edelman said. That year, those industries edged out the media, which only 22% of respondents said they trusted.

It's been five years since the financial crisis, but major banks nonetheless kept serving up scandals in 2012.

Last year, the public learned of widespread rigging of benchmark interest rates that are tied to just about every type of financial product, including mortgages and swaps. The scandal involving the manipulation of the London Inter-Bank Offered Rate, or Libor, continues to unfold.

Some major banks' reputations were also tarnished by government accusations that they essentially became money-laundering conduits for terrorists and drug cartels, or violated U.S. sanctions by doing business with rogue states like Iran.

And many institutions continue to get hammered by government lawsuits and settlements stemming from the mortgage meltdown and ensuing financial crisis.

The 2012 Edelman Trust Barometer had more than 30,000 online respondents around the world, the agency said.

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U.S., other nations await Algeria death toll

CAIRO—

The U.S., Britain and other countries sought to learn the fate of their citizens Sunday after Algeria announced that the death toll from a hostage crisis at a remote gas refinery was expected to rise beyond a previous estimate of 23.

It was another painstaking day for security officials trying to determine how a band of Islamist militants overran the gas complex last week, and for families and nations awaiting word of new deaths. Britain confirmed that three of its citizens were killed and three are unaccounted for.

Algerian officials said security teams defusing mines and explosive booby-traps at the Sahara Desert site had found “numerous” bodies, according to the Associated Press. Algerian communications minister Mohamed Said Belaid was quoted by the state news agency as saying: "I am afraid unfortunately to say that the death toll will go up."

As many as seven U.S. hostages are missing, along with about 14 Japanese. Other captives included Norwegians, Malaysians and French. Algerian officials said a final death count would be released in the coming hours.

Nearly 700 Algerians and 107 foreigners had been freed or had escaped from the gas field in eastern Algeria during the four-day, bloody ordeal that ended Saturday. Officials said at least 23 hostages and 32 militants had been killed. But discrepancies remained over the nationalities of the dead and the exact number of those who died.

“The priority now must be to get everybody home from Algeria," said British Prime Minister David Cameron. "This is a stark reminder once again of the threat we face from terrorism the world over. We have had successes in recent years in reducing the threat from some parts of the world, but the threat has grown particularly in northern Africa.”

Cameron, who had earlier appeared irritated that the Algerians did not inform foreign capitals before troops first stormed the refinery Thursday, tempered his criticism.

"People will ask questions about the Algerian response to these events,” he said. “But I would just say that the responsibility for these deaths lies squarely with the terrorists who launched this vicious and cowardly attack. And I'd also say that when you’re dealing with a terrorist incident on this scale, with up to 30 terrorists, it is extremely difficult to respond and to get this right in every respect.”

 The natural gas complex at In Amenas -- near the Libyan border -- is operated by BP, Statoil and Sonatrach, the Algerian national oil company. BP said four of its employees were missing.

Militants linked to Al Qaeda in the Islamic Maghreb raided the facility before dawn Wednesday. They claimed it was to avenge French airstrikes on Islamic rebels in neighboring Mali. But officials from the U.S. and other countries indicated the attack was planned ahead of this month’s French military action. 

Belaid said the militants were "nationals of Arab and African countries, and of non-African countries."

jeffrey.fleishman@latimes.com

(Times staff writer Henry Chu in London contributed to this report)     

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Google says Wall Street estimates need adjusting

SAN FRANCISCO (Reuters) – Google Inc issued a rare advisory to Wall Street on Friday that analyst estimates for its fourth quarter financial results are flawed.

The world’s No.1 search engine, which reports its quarterly results on Tuesday, said most analysts have not adjusted their estimates to reflect the pending $ 2.35 billion sale of the Motorola Home business.

The business must be presented separately from the results of Google’s continuing operations under U.S. accounting rules, Google Treasurer Brent Callinicos wrote in a post on Google’s investor relations Web page on Friday.

“As of this writing, a majority of Wall Street analysts who cover Google have not reflected the Home business as discontinued operations in their estimates,” Callinicos wrote.

The discrepancy means the fourth-quarter net revenue that Google reports on Tuesday could appear to be less than the $ 12.34 billion average that analysts polled by Thomson Reuters I/B/E/S are expecting.

Raymond James analyst Aaron Kessler says his fourth-quarter net revenue estimate includes nearly $ 900 million from the Motorola Home business.

“They’re saying that the headline number is going to be less than what most analysts have for Q4,” said Kessler.

The advisory is a rare move for Google, which does not provide financial forecasts and typically has limited interactions with analysts. The company has in the past provided accounting advisories to analysts about the Motorola Mobility business, which Google acquired for $ 12.5 billion in May.

Google bought Motorola Mobility primarily for its large portfolio of communications patents and its mobile phone business.

In December, Google agreed to sell the Motorola Home television set-top box business to Arris Group Inc for $ 2.35 billion in cash and stock.

Analysts expect Google to report adjusted earnings of $ 10.56 per share for the fourth quarter.

“It’s a little surprising that they’re doing this the Friday before the report,” said Kessler. “They should have put it out a week ago if they wanted analysts to change their numbers.”

(Reporting By Alexei Oreskovic. Editing by Andre Grenon)

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Former Secretary of State Rice joins CBS News

WASHINGTON (AP) — Former Secretary of State Condoleezza Rice has joined CBS News as a contributor.

CBS News Chairman Jeff Fager and president David Rhodes say Rice "will use her insight and vast experience to explore issues facing America at home and abroad."

Rice served as secretary of state during President George W. Bush's second term. She was the first African-American woman to hold the post.

Rice was Bush's national security adviser during his first term and worked on the National Security Council under President George H.W. Bush.

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The Five: Spotting garage sale treasures and reselling them

Can you make money buying hidden treasures at yard and garage sales, then reselling them? The experts say you can, but don't expect it to be easy. Some advice from the pros:

•Focus on a particular type of item. "Start with something you really like and have a strong interest in," recommended Aaron LaPedis, author of "The Garage Sale Millionaire." "This will ensure that the treasure-hunting process will be much more fulfilling, as well as more profitable for you." Research your specialty to see which items are most in demand.

•Check newspapers and Craigslist for sales listings, looking especially for neighborhood-wide sales where you can shop at multiple sites in a small area. "Plan your route to visit sales close together," advised Karen Harden, author of "Treasure Hunters' Guide to Yard Sales." "You do not want to run all over town backtracking and covering the same area over and over."

•Consider the neighborhood. "If it's a newer neighborhood with families, keep in mind the items for sale will be different than what you may find at a retirement community for empty-nesters," noted Lynda Hammond, the "Garage Sale Gal" of garagesalegal.com "So if you're looking for toys, go to the family sales. Is it antiques you're interested in? Check out older, more established areas and retirement communities."

•Shop early — or late. "If you want the best selection you have to get there before anyone else," Hammond said. "I've gone to sales at 7 a.m., asked for specific items and was told 'I just sold that.'" On the other hand, to get bargains, consider arriving late in the day, when homeowners just want to get rid of things, Harden said.

•When evaluating an item, consider condition, packaging and rarity, but don't assume something's valuable just because it's old. "Age is not the primary determining factor in assessing a collectible's level of value," LaPedis said.

scott.wilson@latimes.com

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7 hostages reported dead in 'final assault' on Algerian refinery

CAIRO — Algerian troops raided a remote natural gas refinery Saturday, killing 11 Islamic militants but not before extremists executed seven hostages who for days had been trapped in a deepening international crisis, according to media reports.

Algerian state media described the army mission as the “final assault” to end a hostage ordeal that began in the predawn Wednesday at a gas compound on the Algerian-Libyan border. It was not clear if the hostages killed were Algerians or foreigners.

"It is over now, the assault is over, and the military are inside the plant clearing it of mines," a local source familiar with the operation told Reuters.

The fate of as many as 30 foreign hostages, including an estimated seven Americans, remained unknown. Algerian forces discovered 15 burned bodies as they swept through the compound Saturday to rout heavily armed militants. The militants threatened to blow up the facility and a number of hostages were reported earlier to have been forced to wear explosive belts.  

The Algerian government had refused to negotiate with the extremists, who were linked to Al Qaeda in the Islamic Maghreb and appear to include Algerians, Libyans, Egyptians and at least one commander from Niger.

Algeria’s state-run media earlier reported that 12 refinery workers, including Algerians and foreigners, had been killed since a government operation to retake the plant began Thursday. Unconfirmed media reports suggested that as many as 35 foreign captives may have been killed, including some struck by gunfire from the Algerian military.

The militants, some dressed in fatigues, were armed with machine guns and rocket launchers. The compound is encircled by army tanks, troops and special forces. A Mauritanian news agency that has been in contact with the extremists said the captors were holding two American, three Belgians, one Japanese and one Briton.

The Algerian government on Friday said 573 Algerians and nearly 100 of an estimated 132 foreign hostages had been freed or had escaped. But the chaotic scene at the gas compound at In Amenas has frustrated international officials who complained they were not consulted about the Algerian military’s operations at the plant.   

The natural gas refinery at In Amenas is also jointly operated by BP; Statoil, a Norwegian firm; and Sonatrach, the Algerian national oil company.

ALSO:

Bolshoi artistic director attacked with acid

Pentagon planning to ferry more French troops, gear to Mali

Algeria: Accounts emerge as nearly 100 foreigners reported freed

jeffrey.fleishman@latimes.com

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Social media dispute resolution stumps some companies

(Reuters) – If HBO cuts out on you in the middle of the latest “Girls” episode, and you have Charter Communications Inc as your cable provider, don’t try tweeting your dismay to their customer service department. Nobody will hear your lament.

Charter, the fourth largest cable provider in the U.S. with 5.2 million customers across 25 states, closed up its social-media based customer service team in December. “Umatter2Charter,” as it was known, had been taking customer complaints over Twitter and Facebook and trying to resolve them, but the company says it is now done with working out customer service issues in social media forums.

The move, which might seem to conflict with the growth of social media, highlights the difficulty some businesses are having with free-flowing, round-the-clock social media, its public nature and the expectation of immediate responses.

With Facebook users numbering about a billion and Twitter drawing 200 million, it might be hard to believe that any retail enterprise would drop out of the fray, but Charter isn’t the only major company to announce such a move. Also in December, the largest single grocery store in New England – the Wegmans in Northborough, Massachusetts – shuttered its Facebook page despite having some 8,000 fans.

“It’s a tough sport,” says J.D. Peterson, vice president of product marketing for San Francisco-based Zendesk, which helps companies manage customer service. “The real-time nature of it – at times the volume that can come from it – it’s very new and different for businesses.”

While Peterson’s company recommends going where the customers are – and a big chunk are clearly on social media – Peterson says not all businesses share the same philosophy or have the ability to engage those consumers in these open forums. But any company that has a significant online presence doesn’t really have a choice, he says, working with consumers through social media is expected of them.

Advocates for the use social media say the challenge actually presents an opportunity for businesses – showing they are responsive to complaints and care about their customers can bring in revenue.

“I have seen this time and time again, and the end result is that the interaction often turns an irate customer into an advocate for the brand. And that is worth it’s weight in gold,” says Mike Rowan, chief marketing office for Atlanta-based Swarm, which manages social media for companies.

That’s certainly the way retailer Lands’ End, a division of Sears Holdings Corp, sees it.

“When we started using social media tools like Facebook and Twitter in early 2009, it gave us a new opportunity to do what we’ve done for 50 years, which is connect with our customers,” says Michele Casper, Lands’ End’s senior director of public relations. “Whether it is through social media, our call centers or online, we offer the same level of customer service through each channel.”

DIVERTING COURSE

Charter says it is not walking away completely from social media – just the idea of providing customer service via Twitter. The company says it has ample other avenues for consumers to get help – including telephone, customer service counters and live chat on its web page.

“We communicate with thousands of customers each day on the phone and in person, and that’s where we’ll focus our efforts,” says Charter spokeswoman Anita Lamont. “While social media is a method some consumers choose to seek help, Charter offers phone and web-based contact solutions where all customers can access resources to provide assistance.”

The abandonment of the Facebook page at the Massachusetts Wegmans store, which caused a great fuss among the store’s “fans,” was, in large part, due to the inability to respond quickly enough to consumers. Store personnel couldn’t break off enough time from their other roles to constantly monitor the page, Wegmans spokeswoman Jo Natale says, allowing comments to sit unanswered – a no-no in the world of social media.

“Our top priority has always been, and will continue to be, providing incredible service to customers who shop in our stores,” she says. “And it isn’t as though there aren’t other avenues for folks to connect with us if they have a question or concern.”

As much as customers expressed surprise and dissatisfaction at the decision, Natale says, it came down to a decision that if the store couldn’t serve the Facebook page at a level it felt was expected that it shouldn’t do it at all.

“They quickly discovered, once the store opened and got very, very busy, that it wasn’t so easy to stay on top of comments or to find the time to post,” Natale says. “In a retail operation like ours, there isn’t anyone sitting at a PC or checking a mobile device throughout the day. It’s a fast-paced business that requires our people to be on the floor serving customers.”

(The author is a Reuters contributor. The opinions expressed are his own)

(Follow us @ReutersMoney or at http://www.reuters.com/finance/personal-finance; Editing by Beth Pinsker and Tim Dobbyn)

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