Sony at greater risk than Panasonic in electronics downturn: Fitch












TOKYO (Reuters) – Panasonic Corp has a better chance than rival Sony Corp of surviving Japan‘s consumer electronics slump because of its unglamorous but stable appliance business of washing machines and fridges, credit rating agency Fitch said Friday.


Fitch cut Panasonic‘s rating by two notches to BB and Sony three notches to BB minus on Thursday, the first time one of the three major ratings agencies have put the creditworthiness of either company into junk-bond territory.












Rival agencies Moody’s and S&P rate both of Japan’s consumer electronic giants at the same level, just above junk status. Moody’s last cut its rating on Panasonic on Tuesday.


Panasonic “has the advantage of a relatively stable consumer appliance business that is still generating positive margins”, Matt Jamieson, Fitch’s head of Asia-Pacific, said in a conference call on Friday to explain its ratings downgrades.


But at Sony, he added, “most of their electronic business are loss making, they appear to be overstretched.”


Japan’s TV industry has been bested by cheaper, more innovative models from Samsung Electronics and other foreign rivals, while tablets and smartphones built by Apple Inc have become the dominant consumer electronics devices.


Investors are focusing on the fate of Sony and Panasonic after another struggling Japanese consumer electronics firm, Sharp Corp, maker of the Aquos TV, secured a $ 4.6 billion bail-out by banks including Mizuho Financial Group and Mitsubishi UFJ Financial Group.


Sony and Panasonic have chosen divergent survival paths.


Panasonic, maker of the Viera TV, is looking to expand its businesses in appliances, solar panels, lithium batteries and automotive components. Appliances amount to around only 6 percent of the company’s sales, but they generate margins of more than 6 percent and make up a big chunk of operating profit.


Sony, creator of the Walkman, is doubling down on consumer gadgets in a bid to regain ground from Samsung and Apple in mobile devices while bolstering digital cameras and gaming.


The latest downgrades will curtail the ability of both Japanese companies to raise money in credit markets to help fund restructurings of their business portfolios.


For now, however, that impact is limited, given the support Panasonic and Sony are receiving from their banks.


In October, Panasonic, which expects to lose $ 10 billion in the year to March 31, secured $ 7.6 billion of loan commitments from banks including Sumitomo Mitsui Financial Group and Mitsubishi UFJ, a financing backstop it says will help it avoid having to seek capital in credit markets.


Sony, which has forecast a full-year profit of $ 1.63 billion helped by the sale of a chemicals business to a Japanese state bank, announced plans to raise $ 1.9 billion through a convertible bond before the latest rating downgrade.


Thomson Reuters’ Starmine structural model, which evaluates market views of credit risk, debt levels and changes in asset values gives Panasonic and Sony an implied rating of BB minus. Sharp’s implied rating is three notches lower at B minus.


Standard & Poor’s rates Panasonic and Sony at BBB, the second lowest of the investment grade, while Moody’s Investors Service has them on Baa3, the lowest of its high-grade category. Moody’s has a negative outlook for both firms while S&P sees a stable outlook for Panasonic and a negative one for Sony.


Stock markets in Japan were closed on Friday for a national holiday.


(Reporting by Tim Kelly; Editing by Mark Bendeich)


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Rejected Beatles audition tape appears at auction












LONDON (Reuters) – The Beatles audition tape rejected by a record label executive in arguably the biggest blunder in pop history has resurfaced and will go on sale at a London auction next week.


Ted Owen of The Fame Bureau, an auction house specializing in pop memorabilia, said the 10-song tape was recorded on New Year’s Day, 1962, at label Decca‘s studios in north London.












Paul McCartney, John Lennon, George Harrison and Pete Best – who would later be replaced on drums by Ringo Starr – performed up to 15 songs at the session, 10 of which appear on the tape to be sold on November 27.


The band members had been driven from Liverpool to London the night before, and, despite getting lost on the way managed to get to the studios in time for the infamous session paid for by their manager Brian Epstein.


Decca’s senior A&R (artists and repertoire) representative Dick Rowe, who later became known as “the man who turned down the Beatles“, decided against signing them in favor of Brian Poole & The Tremeloes who also auditioned that day.


“Guitar groups are on their way out, Mr. Epstein,” he is widely quoted as saying.


Rowe did, however, sign the Rolling Stones, who went on to become one of the biggest acts in British rock, and experts dispute whether it was him or a more junior colleague who passed the Beatles over.


There are bootleg versions of the session in existence, but the “safety master”, or back-up tape, on offer at auction is unique, Owen said.


“The most important thing about this is the quality,” he told Reuters. “There are bootlegs out there, horrible bootlegs — some are at the wrong speed, others are crackily and taken from a cassette off an acetate (disc).


“This quality we have never heard.”


Despite its rarity, the tape has been estimated to fetch 18-20,000 pounds ($ 29-32,000), which Owen said had been set by the owner and was a “sensible” starting point.


He added that only a handful of collectors were likely to bid for the piece of pop history, and, given that the Beatles own the copyright through their company, a commercial record release based on the tape was extremely unlikely.


Marked as the “Silver Beatles”, which the “Fab Four” were briefly called, the tape comes with a hand-written track list and black-and-white photograph of the musicians posing in leather jackets that would be been used for the record sleeve.


Also on offer at the Popular Culture auction is a guitar used by Jimi Hendrix to play the bulk of his breakthrough set at the Monterey festival in California in 1967. The black Fender Stratocaster is expected to fetch 120-180,000 pounds.


(Reporting by Mike Collett-White, editing by Paul Casciato)


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Bullied, Institutionalized for Tourettes












From the age of 7, Frank Bonifas has endured the most severe form of Tourette syndrome, and it started long before the medical community even had a name for the neurological disorder.


Doctors convinced his parents that he could control his tics and outbursts, which had him grunting, jerking and swearing with impunity. They blamed his mother for coddling him and, in 1968, as a young teen, they sent him to a psychiatric hospital for 18 months.












Bonifas, now 58 and living in Coldwater, Ohio, experienced assaults by school bullies and was forced to take high-dose medications that made him so listless one year, he lost two months of school.


Even in hospital wards, he was tortured by staff members who thought his outbursts were deliberate. He even had to fight with Social Security to get disability payments because Tourette syndrome was not listed in the medical journals.


“I resented all psychiatrists, psychologists and social workers,” he said. “They had no idea what was wrong with me and blamed me, my mom, dad and sister for my problems.”


Now, in a self-published memoir, “Fu-Fu-Fu Frank,” he writes about his wrenching childhood and the determination he had to overcome the odds of living with a misunderstood disorder.


Bonifas prefaced his Thanksgiving day telephone interview with ABCNews.com in anticipation of his uncontrollable use of the “F word,” punctuated with grunts and screams.


“I am not a violent person,” he said. “I am a loving person who just has Tourette’s.”


Despite severe physical handicaps, Bonifas was able to write the book because of Marilyn Kanney, a former nurse and friend of his late mother who has loved and supported him since he was in high school. He calls her “a second mother.”


“She took my thoughts and put them into sentences and wrote them into paragraphs and chapters,” he said. “They were all my words, but she allowed me to make it a reality … It took us 15 years to finish it.”


Bonifas decided to go public with his story after friends encouraged him to write. His first goal was to educate others about Tourette syndrome. But the second was to be financially independent and get off disability assistance and Medicaid.


The turning point in his life was in 1973, when a husband-wife psychiatric team, Drs. Arthur and Elaine Shapiro of New York Hospital, gave his condition a name.


At 18, Bonifas was one of the first people in the United States to be diagnosed with Tourette syndrome.


“I taught my doctor everything he knows about Tourette,” said Bonifas. “Dr. Shapiro said to me at the time, ‘Frank, to your credit, you haven’t blown your brains out by now.


“I put my trust in doctors and nurses for the first time in my life,” he said.


According to the Tourette Syndrome Foundation, the disorder is defined by multiple motor and vocal tics lasting for more than one year. The verbal tics can include grunting, throat clearing, shouting and barking.


It was named for a French neuropsychiatrist, Gilles de la Tourette, who assessed the disorder in the late 1800s. But it wasn’t until the 1970s that it was widely recognized in the U.S., where it was thought to be exceptionally rare.


In 1980, the condition was broadened to include milder cases of tics. Fewer than 10 percent of all patients swear or use socially inappropriate words, which makes Bonifas’s condition so socially isolating.


The first symptoms, usually before the age of 18, are involuntary movements of the face, arms, limbs or trunk, such as kicking or stomping. They are frequent, repetitive and rapid. The patient cannot control these movements and they can involve the whole body.


ADD and OCD Can Accompany Tourette Syndrome


According to Dr. Jonathan Mink, chief of pediatric neurology at Rochester University, who sits on the board of the Tourette association, the disorder is still poorly understood and likely has a genetic link.


Many patients, like Bonifas, also have symptoms associated with attention deficit hyperactivity disorder and obsessive compulsive disorder.


“The majority of kids, even those bad enough to seek treatment, are likely to have their tics diminish or go away,” said Mink.


Habit reversal therapy — teaching a person with Tourette to hold his or her breath, for example, instead of saying the repeated word, can sometimes help. Antidepressants are used to treat associated anxiety.


Today, several medications have helped Bonifas manage his symptoms, but his early years were spent in torment, in and out of mental institutions, hospitals and experimental programs.


In the introduction to his memoir, doctors attest to the “exorcisms” that Bonifas underwent to rid him of his “demons.” He claims he was exploited and abused, even sexually, by many who were entrusted to care for him.


A devote Catholic and former altar boy, Bonifas once considered entering the seminary. Strangely, his first outburst of profanity occurred in the seventh grade when looking at a church spire.


The thought — “The Blessed Virgin Is a F***er” — just burst into his mind. He was convinced he would burn in hell.


But Bonifas had no control over that or other obsessive-compulsive habits, such as dressing, washing and brushing his teeth in a particular sequence.


His behavior in school was problematic, too. Teachers saw his outbursts as an attention-seeking device. He was “barking, snorting, sniffing, hissing and more.”


By high school, he was badly bullied. Seniors pulled down his pants, taunting: “Now we’ll see if he is a dog or a human being.”


Another time, he was pushed into a large garbage can and rolled down the steps to the first floor.


After being sent to a local hospital ward for treatment, he got “special care” more than a half dozen times. Orderlies confined Bonifas to a locked steel cell with a pillow and a pad. After that, he developed lifelong claustrophobia.


In exercise classes in a swimming pool, he claimed the leader seemed to enjoy dunking his head underwater until his lungs “nearly burst.”


But eventually, Bonifas found New York Hospital, where modern treatments and an educated and understanding medical team, gave him hope. He was the 35th patient Dr. Shapiro had ever treated.


His roommate was Dr. Orrin Palmer, a Maryland doctor who overcame Tourette and now practices psychiatry.


“Frank and I went through hell on these protocols,” Palmer wrote in one of the forwards in the book.


Doctors experimented with an array of high-dose medicines that caused side effects, such as insomnia, motor restlessness, mood swings and even Parkinson’s symptoms.


“I had to sign papers that I was a guinea pig,” said Bonifas. “If the medicine made me incompetent or I lost my mind or was comatose or died, they were not responsible.”


His response to his doctor’s orders was, “Just tell my small town that I am not the devil, not doing this on purpose and that I have a mind.”


After five months, his mother brought him home and things started to get better. Were it not for her, “they would have institutionalized me for life,” he said.


Today, Bonifas works as a part-time mail clerk at a local bank. He said life is still “incredibly difficult.”


But since the publishing his book, he said, “Many people have a better understanding of what I go through on a daily basis, and I have been treated much better.”


He takes a low dose of haldol, ativan, cogentin and many natural vitamins. Bonifas also has taken up yoga with a trainer.


Bonifas cares for his 88-year-old father who lives upstairs. His beloved mother died of Alzheimer’s disease in 2004.


“I just wish she were alive to read it, but my faith tells me that she is in Heaven and is proud of everything I’m trying to accomplish,” he said.


More recently, cultural attitudes toward those with Tourette syndrome have begun to change, according to Bonifas.


“Most people who have become familiar with it are more understanding,” he said. “However, many are not aware of how serious the disease is, still feel that anyone afflicted with it should be able to control all of its symptoms.”


Much still needs to be done, according to Bonifas.


“Parents and teachers can be more supportive and understanding of people who are different,” he said. “Children learn at a very early age how to treat others, and there are too many bullies today as a result of the prejudices of all who teach them.”


Bonifas volunteers in schools and organizations to help change attitudes.


With all the hurdles he has overcome, the dark shadow of growing up in a world ignorant of his needs still haunts Bonifas.


“I have tried to put my past behind me, but every day is challenging and difficult,” he said. “I’m working on it.”


“I think that all people should accept those who are different or handicapped,” he said. “They should have to spend one day in their shoes, and see how it feels.


His faith and the encouragement he has received from readers of his memoir keep him going.


“It just comes down to this: There is you and God,” he said. “I have a lot of faith and a lot of determination.”


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HP and UBS Hide Behind Their Scapegoats












The rogue is a perfect villain. This week we had two: Kweku Adoboli, the former UBS trader who got seven years in jail for rogue trades, and Mike Lynch, the rogue leader who allegedly tricked Hewlett-Packard into buying Autonomy with dodgy accounting. Both are being blamed for causing massive damage—a $ 2.3 billion loss for UBS (UBS) and an $ 8.8 billion writedown for HP (HPQ). Both are colorful characters who’d made their homes in London. Adoboli is a Ghanian-born son of privilege who was nurtured as a high-potential player at the bank; Lynch is the Irish-born mathematical genius and entrepreneur who’d built one of the U.K.’s greatest tech companies.


Whatever blame they may deserve for their actions—and Lynch has said several times this week that he deserves none—neither is a solo actor in these losses. The companies that are portraying themselves as victims deserve some blame, too.












Let’s start with UBS. On the surface, it’s a clear-cut case. Adoboli was found guilty of unauthorized trades and will spend years in jail. But UBS is also under scrutiny for failing to detect the trades. Ben Moshinsky and Lindsay Fortado of Bloomberg News report that UBS faces a fine of about £45 million from the U.K.’s Financial Services Authority. If so, that would be a welcome reminder that culture plays a role in many crimes. At the very least, UBS had a culture that enabled this young man to rack up stunning losses with relatively little oversight.


Adoboli himself goes further. In an e-mail to Bloomberg News, he says leaders such as JPMorgan Chase (JPM) Chief Executive Jamie Dimon and former Barclays (BCS) chief Bob Diamond were rewarded for taking big risks early in their career. Whether or not that’s true, neither was accused of committing fraud. But Adoboli makes an interesting point. Imagine if his behavior had resulted in a $ 2.3 billion gain for the bank. Would he have been hauled into court for those unauthorized trades? Would he even be fired? Think about the accolades that AIG (AIG) heaped on its London-based financial products unit when its credit default swaps boosted the bottom line. Then the housing market blew up and those exotic instruments essentially brought down the company, forcing a AAA-rated global giant to put itself in government hands. Suddenly, a role model unit was cast as a rogue.


The story behind HP and the culpability of Autonomy founder Mike Lynch continues to unfold. What we do know is that more than a dozen firms were involved in advising on the $ 11 billion acquisition last year. We know that HP chief Meg Whitman, who was on the board at the time of the deal, told investors on Nov. 20 that the company now needs to take a $ 8.8 billion charge on the deal because of a “willful sustained effort” to “inflate the underlying financial metrics” to “mislead investors and potential buyers.” And who inflated those numbers? “Some” Autonomy employees, according to Whitman, though she also blames accounting firm Deloitte for failing to catch it. (The FBI has opened an investigation.) What about the HP management or directors who voted to pay an 80 percent premium on top of what investors thought Autonomy was worth? Do they deserve any blame? Well, Apotheker and the former head of strategy are gone.


But let’s not ignore the environment in which this massive hit is taking place. HP is a company that’s battling a persistent decline in its revenue, net income, and market share. Last quarter, it took an $ 8 billion charge for another acquisition—Electronic Data Systems, which HP bought for $ 13.9 billion in 2008. HP’s stock has more than halved since Apotheker left. Lynch may have been a marketing genius in allegedly selling HP a bill of goods on his company, but even he can’t be blamed for that.


Businessweek.com — Top News


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Former Ivory Coast leader’s wife wanted by ICC
















THE HAGUE, Netherlands (AP) — The International Criminal Court unsealed an indictment Thursday against former Ivory Coast President Laurent Gbagbo‘s wife on charges including murder, rape and persecution. It was the first time in the court’s 10-year history it has charged a woman.


The world’s first permanent war crimes tribunal said the arrest warrant was issued on Feb. 29 for former first lady Simone Gbagbo for crimes against humanity.













Her husband, Laurent Gbagbo, is already in custody at the court’s detention unit in The Hague facing similar charges stemming from his fight to retain power after losing a 2010 presidential election. If his wife is extradited, they could face justice together in an unprecedented husband-wife trial.


But a senior member of Ivory Coast President Alassane Ouattara‘s government, who requested anonymity because he wasn’t authorized to speak to the media, said Ivory Coast has already informed the ICC that the nation will not let her go.


“We informed them of this a long time ago,” he said.


The court’s chief prosecutor, Fatou Bensouda, urged Ivory Coast to extradite Gbagbo.


“The type of crimes committed in the aftermath of the 2010 elections did not happen by chance — they were planned and coordinated at the highest political and military levels and all those bearing the greatest responsibility must be held to account,” Bensouda said in a statement.


She said prosecutors continue to investigate crimes committed by both sides in Ivory Coast’s bloody power struggle and expect to issue further arrest warrants in the future.


“The investigations are objective, impartial and independent, and are conducted in strict accordance with the law,” she said.


Ivory Coast officials are holding the 63 year old under house arrest in the northwest town of Odienne. Last week, Ivorian prosecutor Noel Dje Enrike Yahau said lawyers had questioned Simone Gbagbo there for two days and that the domestic charges against her remained the same: genocide, blood crimes and economic crimes.


Unsealing the ICC arrest warrant issued nearly nine months ago appears to be a tactic by the court to put pressure on Ouattara’s administration to hand over Ms. Gbagbo.


If authorities in Ivory Coast want to prosecute her, they have to convince judges at The Hague tribunal that their case involves the same crimes she is charged with at the ICC. It is a court of last resort, meaning it only takes cases from countries unwilling or unable to prosecute them.


The international court said in the warrant that there is evidence pro-Gbagbo forces deliberately attacked perceived supporters of Ouattara in the aftermath of the election.


Judges who reviewed evidence supporting the charges against Ms. Gbagbo said they found “there are reasonable grounds to believe that Ms. Gbagbo bears individual criminal responsibility for the crimes … as ‘an indirect co-perpetrator.’”


The warrant called Gbagbo an “alter ego for her husband” with the power to make state decisions. It said there is evidence to suggest she “instructed the pro-Gbagbo forces to commit crimes against individuals who posed a threat to her husband’s power.”


Her husband was the first former head of state to be taken into custody by the court when he was extradited to The Hague by the Ivory Coast government last year.


Prosecutors say about 3,000 people died in violence by both sides after Gbagbo refused to concede defeat following the election. Ouattara finally took power in April 2011 with the help of French and U.N. forces.


Ivory Coast is not a member state of the court, but has voluntarily accepted its jurisdiction.


It is very rare for a woman to be charged by an international war crimes court. In the past, the Yugoslav war crimes tribunal convicted former Bosnian Serb President Biljana Plavsic of persecution and sentenced her to 11 years imprisonment.


The announcement of the arrest warrant and Ivory Coast’s refusal to hand over Gbagbo appeared likely to raise tensions between supporters of her husband and those who back Ouattara.


Moussa Toure Zeguen, a leader of the Gbagbo allies in exile in Ghana, said by phone from Accra that the former president’s supporters had no faith in the Ivorian authorities to give Simone Gbagbo a fair trial.


“We don’t trust them. The only thing that Ouattara is doing is revenge,” Zeguen said. “He wants to try us without trying any of the fighters from his side who also committed crimes. It is not fair, and this cannot bring reconciliation.”


____


Associated Press writers Rukmini Callimachi in Dakar, Senegal, and Robbie Corey-Boulet in Abidjan, Ivory Coast, contributed to this report.


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Ex-’Price is Right’ model gets $8.5M in damages
















LOS ANGELES (AP) — The producers of “The Price is Right” owe a former model on the show more than $ 7.7 million in punitive damages for discriminating against her after a pregnancy, a jury determined Wednesday.


The judgment came one day after the panel determined the game show’s producers discriminated against Brandi Cochran. They awarded her nearly $ 777,000 in actual damages.













Cochran, 41, said she was rejected when she tried to return to work in early 2010 after taking maternity leave. The jury agreed and determined that FremantleMedia North America and The Price is Right Productions owed her more than $ 8.5 million in all.


“I’m humbled. I’m shocked,” Cochran said after the jury announced its verdict. “I’m happy that justice was served today not only for women in the entertainment industry, but women in the workplace.”


FremantleMedia said it was standing by its previous statement, which said it expected to be “fully vindicated” after an appeal.


“We believe the verdict in this case was the result of a flawed process in which the court, among other things, refused to allow the jury to hear and consider that 40 percent of our models have been pregnant,” and further “important” evidence, FremantleMedia said.


In their defense, producers said they were satisfied with the five models working on the show at the time Cochran sought to return.


Several other former models have sued the series and its longtime host, Bob Barker, who retired in 2007.


Most of the cases involving “Barker’s Beauties” — the nickname given the gown-wearing women who presented prizes to contestants — ended with out-of-court settlements.


Comedian-actor Drew Carey followed Barker as the show’s host.


___


Anthony McCartney can be reached at http://twitter.com/mccartneyAP .


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Do drunks have to go to the ER?
















NEW YORK (Reuters Health) – With the help of a checklist, ambulance workers may be able to safely reroute drunk patients to detoxification centers instead of emergency rooms, according to a new study.


Researchers in Colorado found no serious medical problems were reported after 138 people were sent to a detox center to sleep it off, instead of to an ER.













In 2004, according to the researchers, it’s estimated that 0.6 percent of all U.S. ER visits were made by people without any problems other than being drunk. Those visits ended up costing about $ 900 million.


“Part of the issue has been – as it is in many busy ER departments – there’s a lot of chronic alcoholics that are brought in by ambulance, police or just come in. Often they are brought in because they have not committed a crime or there is limited space in our detoxification center. So the majority were brought to the ER department,” said Dr. David Ross, the study’s lead author from Penrose-St. Francis Health Services in Colorado Springs.


Ross said the ambulance company where he serves as medical director created the checklist with the help of the local detox center, which provided limited medical care by a nurse, and the local hospitals to reduce the number of drunks without medical needs being sent to the local ERs.


They created a checklist with 29 yes-or-no questions, such as whether the patient is cooperating with the ambulance worker’s examination and if the patient is willing to go to the detox center.


The patient was sent to the ER if the ambulance worker checked “no” on any question.


The researchers then went back to look at the patients they transported between December 2003 and December 2005 to see whether or not any of them ended up having serious medical problems at the detox center.


During that two year period, the ambulance workers transported 718 drunks. The detox center received 138 and the local ERs got 580.


Overall, 11 of the patients who were taken to detox were turned away because there was no room, their blood alcohol level exceeded the limit, their family came to pick them up or they were combative.


Another four patients at the detox center were taken to the ER because of minor complications, including chest and knee pain. However, there were no serious complications reported.


“We really believe that we did not miss anybody with a serious illness and injury that didn’t go to the ER as they should have,” said Ross.


But the researchers write in the Annals of Emergency Medicine that their study did have some limitations.


Specifically, the researchers did not plan in advance to do a study when they were creating the checklist, which means their findings are limited to whatever information was collected at the detox center and ERs.


Also, the number of people who were sent to the detox center in their study is relatively small, so it’s hard to tell how many serious complications they’d see among a larger group of people.


“We tried to estimate how likely we would have been to encounter a serious event… We estimated at most we’d encounter three serious adverse events (in 748 patients),” Ross told Reuters Health.


SOURCE: http://bit.ly/QgPCT5 Annals of Emergency Medicine, online November 9, 2012.


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Serious About Free Markets? Prove It
















On Friday the Republican Study Committee, a policy shop for congressional Republicans, published a memo on how to fix copyright law. By Saturday afternoon the group’s executive director had pulled the memo, which had evidently failed to approach the subject with “all facts and viewpoints in hand.” This is Washington’s way of saying that an interest group hit the roof, and indeed, Ars Technica reports that lobbyists from the “content industry”—Hollywood and recording companies—pressured the group to renounce the memo.


Copyright being in fact broken, you can still read copies of the memo online. It lays out what copyright reform advocates have been saying for years. Copyright protections now extend 70 years past the life of the author; for a corporation, 95 years after publication. This, along with punitive laws on copyright violation, hinders creativity and innovation. These facts aren’t new. What’s new is the tone. Derek Khanna, the memo’s author, writes like an unashamed free marketeer, and in doing so manages to latch on to a larger point: Laws that help businesses often harm markets. From the memo:













Today’s legal regime of copyright law is seen by many as a form of corporate welfare that hurts innovation and hurts the consumer. It is a system that picks winners and losers, and the losers are new industries that could generate new wealth and added value. We frankly may have no idea how it actually hurts innovation, because we don’t know what isn’t able to be produced as a result of our current system. (Emphasis in the original.)


Radical stuff. There’s no one in Washington to lobby for industries that don’t exist yet, and ever so briefly, Khanna and the Republican Study Committee stepped into that breach. Then they stepped back, to gather more facts and viewpoints. Here’s one: Pro-business and pro-market are not the same thing. The most pleasant place for a business is not elbows-out in the middle of a free market, but sitting alone, atop a fat monopoly. Ask your local cable provider. The larger a business gets, the more it has to protect from the companies and industries that might follow it with something better or cheaper. And the best way to protect what you have is to have it written into law.


Real markets, with real competition, are most helpful to newcomers. Small businesses and new industries create new value. Once created, they, too, move to Washington to protect it. Witness the growth of Google (GOOG) and Facebook’s (FB) lobbying operations in the Capitol. Khanna describes extended copyright protection as rent-seeking—in his words, “non-productive behavior that sucks economic productivity and potential from the overall economy.” What’s true of Hollywood and the recording industry could be said of any established industry.


Luigi Zingales, a professor at the University of Chicago Booth School of Business and a regular contributor to Bloomberg View, points out that larger companies can lobby for special exemptions in the tax code. This creates complexity in the tax code, which punishes smaller businesses that can’t pay for tax lawyers and don’t have anyone’s buttonhole on Capitol Hill. Zingales prefers simple regulations and simple taxes, which are harder for lobbyists to game and easier for democracies to understand. He sees this as a bipartisan problem. The left is inclined toward more regulation, and the right is pro-business, rather than pro-markets.


The direction Khanna was headed—a defense of open, competitive markets at the expense of existing businesses—is still wide open space, claimed by no party. This summer, conservatives such as Timothy Carney at the Examiner and Yuval Levin at National Review urged Mitt Romney to back markets, not businesses. But he chose not to, even though he, in his day, disrupted existing markets of his own. Some enterprising Republican can still do it. Derek Khanna in 2016! He’s young. Maybe VP.


Businessweek.com — Top News



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Ivory Coast: New prime minister named
















ABIDJAN, Ivory Coast (AP) — President Alassane Ouattara has tapped Foreign Minister Daniel Kablan Duncan to serve as prime minister in a new government one week after the surprise dissolution of cabinet.


The appointment of Duncan, a member of the PDCI party of former President Henri Konan Bedie, was announced at a press conference Wednesday by Amadou Gon Coulibaly, general secretary of the presidency.













Ouattara dissolved the cabinet last week over a feud between his political party and the PDCI over proposed changes to the country’s marriage law.


The PDCI supported Ouattara in the November 2010 runoff election in exchange for the prime minister’s post, helping him defeat incumbent President Laurent Gbagbo. Gbagbo’s refusal to cede office led to five months of violence that claimed at least 3,000 lives before Ouattara’s forces won.


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Tom Hanks, Will Farrell offer custom recordings
















NEW YORK (AP) — Imagine having William Shatner supply your outgoing voicemail message. Or maybe you’d prefer Morgan Freeman coolly telling callers to wait for the beep. Or perhaps having Betty White joke around is more your speed.


All it takes is $ 299 and some luck.













The advocacy group Autism Speaks is offering custom-recorded messages from those celebrities as well as Will Ferrell, Carrie Fisher, Tom Hanks, Derek Jeter, Leonard Nimoy, Patrick Stewart and Ed Asner.


From Dec. 3 to Dec. 9, a limited number of 20-second long MP3 messages will be recorded by each celebrity on a first-come, first-served basis for fans to do with as they wish. All requests must be of the PG variety.


Asner, the curmudgeonly Emmy Award winner of “The Mary Tyler Moore Show” and “Lou Grant,” dreamed up the unusual fundraiser with his son Matt, who works for Autism Speaks.


“I think people will get a charge out of it,” says Asner, who is currently on Broadway in the play “Grace.” ”I’ll probably say, ‘What are you wearing?’ Or, ‘Take it off.’ Something like that.”


All proceeds will support autism research and advocacy efforts.


If he could get a message from one of the other stars participating, which would Asner want?


“I’m awfully stuck on Will Ferrell, having been subjected to him in ‘Elf,’” Asner says. “But they’re all such standouts — Patrick Stewart, Leonard Nimoy, Shatner. The list doesn’t stop. Even Betty White,” he adds about his “MTM” co-star. “She’s still got some good left in her.”


Entertainment News Headlines – Yahoo! News



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