Sarbanes-Oxley means no features in future software updates from publicly traded companies?

The claim is that Sarbanes-Oxley has the unintended consequence of making it illegal, or costly, to distribute ‘free’ software updates.

Oh, about that 802.11n card in your C2D Mac | iLounge

... I’m not going to claim to understand this next part, which really just makes no sense to me at all, but the claim Apple’s making is that it _can’t_ give you the 802.11n-unlocking software for free. The reason: the Core 2 Duo Macs weren’t advertised as 802.11n-ready, and a little law called the Sarbanes-Oxley Act supposedly prohibits Apple from giving away an unadvertised new feature for one of its products. Hence, said the Apple rep, the company’s not distributing new _features_ in Software Update any more, just _bug fixes._ Because of Sarbanes-Oxley. If this is an accurate statement of Apple’s position, which as an attorney (but not one with any Sarbanes background) I find at least plausible, this is really crazy. ...

Presumably this falls under the category of a publicly traded company cheating shareholders of revenue. It is certainly startling if true, but it does seem plausible. It may, of course, be something that vendors like. It would not apply to non-publicly traded companies, which produce most of the software I like.

Sarbanes-Oxley is due for a review by Congress. I’ll ask my Representative to take a look at this claim.

Update 1/18/07: It looks like this is genuine:

Apple's alleged 802.11n enabler fee: blame Enron etc. | Reg Hardware

... The reason: changing a product's functionality changes the timeframe in which the manufacturer can recognise revenue from the sale of that product.

If Apple begins selling a product at the start of, say, Q1 and then adds a previously unadvertised feature to it at the beginning of Q2, under Sarbanes-Oxley, it has to recognise revenues from the product from Q2 onwards. Revenues recognised in Q1 run contrary to the rules enshrined in the Act. Unless, of course, the extra feature is a 'new' product, attracting its own revenue stream.

Crazy, but that's accountancy for you. Had Apple actually said at their launch that its latest Macs would one day be upgradeable to 802.11n, it could have avoided the charge, it seems...

Microsoft Vista, it was announced today, will be installed with a comprehensive feature set which may be unlocked over time for a fee. I wonder if Sarbanes-Oxley determined that.

I'm not sure this is all bad. Companies now have a clear economic incentive to deliver incremental value to existing solutions. If and when I want 802.11n support I have no problem with paying $5.00 for a driver. Perhaps Apple will consider adding phone support to iSync for a similar fee; I'd be delighted to pay $5.00 for official iSync support of my Motorola V3M.

Update 3/10/07: I'd read some coverage that claimed Apple was interpreting Sarbanes-Oxley incorrectly. I'd written our representative to ask about this, and Betty McCollum's office replied "Apple has to account for the separate value of a software upgrade that allows for additional capabilities from the hardware.... a nominal fee ... establishes a reportable value for the upgrade." So Apple has interpreted the law as congress understands it. At least when it comes to enabling new hardware capabilities, SO means Apple must account for the value delivered. A nominal fee is one way to do that. I wonder if there's more wiggle room when no hardware capabilities change ...?

Amazon and the evil of cellphone companies

Tobacco companies are unequaled in the purity of their evil, but, in their defense, they have a certain dark style. American cell phone companies are evil in a sleazy, cowardly sort of way, a bit like Saruman's lackey Wormtongue.

I've been steeped in their vile juices as I balance my lust for the iPhone, my wife's need for a replacement for her beloved Samsung i500, and the vileness of Cingular. Amazon is a good weapon to expose Cingular's nature -- and Amazon's collusion. The Treo 680 seems a bargain at $50 with a $40/month plan, but watch what happens when one walks the billing trail at Amazon. The final shopping cart tells all ...

Amazon.com: palm Treo 680 Smartphone (Cingular): Cell Phones & Service

Cingular Nation 450 Rollover Minutes + palm Treo 680 Nitro Smartphone Product Bundle	$99.99	1
	+ Cingular Nation 450 Rollover Minutes (Monthly service charge of $39.99 billed by Cingular)		1
	+ Cingular 2 Year Contract (No Charge: Included with Cingular's Monthly Rate Plan)		1
	+ PDA Connect Unlimited (Browse the web and access e-mail.) (Monthly service charge of $39.99 billed by Cingular)		1
	+ Regulatory Cost Recovery Fee (Monthly service charge of $1.25 billed by Cingular)

The $40 mandatory "PDA plan" is where all the cost recovery occurs. Six months of this plan is exactly equal to the $250 Amazon chops off the phone price if you stay for 6 months ...

Oooooh, I hate the cell phone companies. My wife has commented on the resemblance to American auto manufacturers before Japan freed us from their rotting grasp. Who will save us from the cell companies? Not Apple, alas.

Update 1/11/07: Wow. My head spins. I spent about an hour today talking about phone price with 3 different Sprint business reps while also reviewing the web site. Here's the "secret sauce" to these discussion. Ask "What date does my contract expire?". When you learn that date, follow any question about rebates, credits, etc with the question "Does that change the date my contract expires?" The trick is that Sprint trains its reps to use different language, so they can answer "no" to questions for which any reasonable person would answer "yes".

The bottom line: If you don't want to change your contract expiry date, you go to a Sprint store and pay full price, or you buy a used phone on eBay or Craigslist. I'm told some Radio Shack stores will sell used phones, but I distrust the quality there. I have a visceral distrust for eBay, so it's Craigslist or list price.

Lastly, looking over the scam I first documented above, I'm thinking Amazon's a part of the deal too. In other words, they sold out. Well, it's not the first time.

The next time a politician hits me up for a donation, I won't ask them about healthcare reform or global warming, I'll ask them if they'll vote to require any cellphone vendor to accept a compatible unlocked phone.

The vengeance of the democrats

Many Republicans smoke. Few Democrats smoke. Nancy Pelosi demonstrates both good governance and mastery of the twisted knife...

Pelosi Bans Smoking Near House Floor

... House Minority Leader John Boehner, R-Ohio, is a heavy smoker, often found at the center of a group puffing away in a corner of the lobby. He had little to say Wednesday about Pelosi's move. Questioned at a news conference, Boehner described it as 'fine.' He did not elaborate...

A picture accompanying the Google News summaries showed Pelosi holding an ornate chair that closely resembled a whip. Nice choice...

Searching a 100 million stars for something like us

A pair of astrophysicists want to divert a new radio telescope to identify radio-emitting civilizations:

Eavesdropping on the Universe

...The MWA-LFD is a radio telescope designed to detect and characterize highly redshifted 21-centimeter emission from hydrogen molecules in the early universe. Its key scientific goal is to create a three-dimensional map of ionized "bubbles" that formed as the first quasars and galaxies flooded space with ultraviolet light billions of years ago. ...

.... Loeb and Zaldarriaga calculate that by staring at the sky for a month, the MWA-LFD could detect Earth-like radio signals from a distance of up to 30 light-years, which would encompass approximately 1,000 stars. More powerful broadcasts could be detected to even greater distances. Future observatories like the Square Kilometer Array could detect Earth-like broadcasts from 10 times farther away, which would encompass 100 million stars.

I't's hard to get too excited about surveillance of 1000 stars. It seems unlikely that civilizations would radio-emit like us for long, the odds of catching a 100 year slice of radio emission in the 3 billion year slice of a habitable planet is pretty low. A hundred million stars though ... That would be about the right order of magnitude. So maybe in forty years ...

TIME releases their pre-arranged introduction to my new Apple iPhone

Apple's New Calling: The iPhone. A few minutes after the conclusion of the Keynote, the TIME magazine article is online.

…Apple's new iPhone could do to the cell phone market what the iPod did to the portable music player market: crush it pitilessly beneath the weight of its own superiority. This is unfortunate for anybody else who makes cell phones, but it's good news for those of us who use them…

My wife will really enjoy my old Samsung i500 phone ....

Cannot resist. Must get Apple phone …

Macworld 2007 Keynote Liveblog - The Unofficial Apple Weblog (TUAW)

... . (Laurie notes: "I have a draw full of styluses.") It ignores unintended touches, multi-finger gestures and has patents. Or something like that. I think I jumbled things there a little bit. It is built on top of revolutionary interface with software that calls current mobile phones "baby software" and then mocks them. Yes, the iPhone runs OS X, children!!! W00t! ...

Who cares that it won’t work for two more revs. Who cares that I’ll have to dump Sprint (with a vengeance and bitter mocking laughter) for Cingular? Who cares that if I order it today it probably won’t show up for four months…

PS. The net appears to be combusting in some kind of nerd explosion. Blogger and Blogspot, in particular, have collapsed completely. Meanwhile Motorola is down .52%, Nokia is down 1.37% and Apple is up 2.21% (no, marke than 3.4%) and extremely volatile … Even Slashdot is laboring under the load, and they don’t allow non-subscribers to see the very latest articles …

Update 1/9/07: From Markoff in the NYT

One of the immediate questions that analysts and industry executives posed about Apple’s new product was why the designers eschewed the higher-speed Cingular digital cellular 3-G network. Mr. Jobs said later models would support additional networking standards.

Oh. Now the painful part. Cingular's EDGE network is very slow and their seems little hope that the phone can be upgraded to a 3-G network. There's a substantial risk the phone will become obsolete very quickly. OTOH, there is the WiFi support. Anyone buying this version of the phone should assume they'll use it primarily as a phone and messaging tool on Cingular's network, and as a computer only a WiFi network. Simple email may work on EDGE, but web browsing will be very painful.

Update 1/10/07: After the binge, the hangover sets in.

The Lord of the Rings and the Seige of Constantinople

My favorite radio/broadcast/podcast service is Sir Meyvyn Bragg’s In Our Time. It’s reason enough to buy an iPod all by itself, as well as being a scathing indictment of every other “talk” show in existence. The Seige of Constantinople is particularly good, and if one is a fan of a certain movie it comes with its own internal video stream … 

Telegraph | Entertainment | The day the world came to an end (Noel Malcolm)

... Even as a young schoolboy, I couldn't help noticing the uncanny resemblance between the siege of Minas Tirith in Tolkien's Lord of the Rings and the siege of Constantinople. On one side, the beautiful walled city with its ancient nobility and the few adventurers who had come to help in its defence; on the other, evil teeming hordes under a despotic ruler. You had only to look at the map in the end-papers, where the land of Mordor loomed to the east like Asia Minor, to get the point.

Tolkien even chose the name "Uruk-Hai" for some of his nastiest creations, fighting forces of Sauron who were a cross between orcs and goblins. This was surely borrowed from the "Yuruk", nomadic tribesmen used as auxiliary soldiers by the Ottomans. Few readers would have known that; but most would have got a whiff of something Asiatic here. For one thing Tolkien was outstandingly good at was tapping into the subconscious of our own, European, cultural history. ...

Alas, my working class education, though decent enough, was not the equal of Mr. Malcolm’s. On the other hand, it means there’s yet more to discover. The podcast is most highly recommended for those who, like myself, have a number of gaps in their cultural history. In addition to the terrible and wonderous story, it does give some valuable context to Cyprus, the European Union, Serbia, Turkey and Iraq. The thing about history, is that it isn’t.

More Dyer

2006 has a flurry of about 7 new articles online. I swear he's avoiding RSS simply to torment me.

There is snow in Minnesota

Rumors to the contrary, there's snow in Minnesota in January!

Trail snow depth: Koochiching State Forest - Tilson Creek Ski Trail
Local snow depth is 6-8".

Wow. The trail is even open -- with a 2" depth. All you need to do is drive a few hundred miles north of the twin cities and go east of International Falls, once known as the ice box of the nation.

Otherwise the state's beautiful web site for snow conditions shows brown everywhere, and almost every Nordic ski trail is closed. None of the non-refrigerated ice rinks in the metro area are open.

I read that this is an El Nino year, so maybe there's hope for something 3 years from now -- but by then the net warming and drying trends may make this year the norm. The new Minnesota climate feels to the casual observer to be dry throughout the winter and winter weather that feels about 5-8 degrees warmer than most of the 20th century. Sure, the state web site says the average temp is only up 1 degrees F, but that's the entire state and the year-round average. For example, the MSP summers seem milder than they used to be, which would mask the dramatic winter changes.

I'd like to see a fifty year chart of average January temperatures in the Twin City metro area. I'll keep looking ...

Update 1/8/07: This UMN climatology page is just what I was looking for. MSP residents live in a Missouri climate nowadays, but there there were warm Januarys between 1890 and 1940 -- if you believe the old temperature records.

Update 1/8/07: Several stores are sold out of replacement basketball backboards in the TCs. BB is one of the few outdoor activities that still works around here now ...

Credit score - forget it. You want your Security Score ...

I wonder what my score is ...

Schneier on Security: Automated Targeting System

If you've traveled abroad recently, you've been investigated. You've been assigned a score indicating what kind of terrorist threat you pose. That score is used by the government to determine the treatment you receive when you return to the U.S. and for other purposes as well.

Curious about your score? You can't see it. Interested in what information was used? You can't know that. Want to clear your name if you've been wrongly categorized? You can't challenge it. Want to know what kind of rules the computer is using to judge you? That's secret, too. So is when and how the score will be used...

As anyone who's done any public health or medical school should know, the vast majority of "hits" from this system will be on completely innocent people.

Pelosi delivers: maybe things will get better ....

DeLong is Proud of Our Congress. I'd forgotten what it was like to have leaders who were not craven, corrupt and stupid. The House did noble work today.

The fatal flaw in distributing encrypted media

The new HD-DVD encryption scheme has been partially, but not completely, broken.

Studios’ DVDs Face a Crack in Security - New York Times

...If the person who identified himself as Muslix64 is able to create a complete version of a decryption program, or if others extend the software so that consumers without technical expertise can readily make copies of movies, that would create a crisis for the HD-DVD camp. That system contains a “revocation” mechanism for shutting down HD-DVD players whose encryption system has been compromised. But industry analysts say that taking such a step would give the HD-DVD system a tremendous black eye, angering consumers and shaking the confidence of Hollywood studios in the system.

Today’s DVDs are protected using an earlier encryption technique known as Content Scramble System, or C.S.S. That system was undermined in 1999 by a small group of programmers, and movie studios have said that the new A.A.C.S. would not fall victim to the same kind of technological attack...

Interesting story, but it's not the fatal flaw in DVD encryption. The fatal flaw is that the media is physical, and thus out of control of the rights holders. Sooner or later, sometime in the next 20 years, the "old" keys are released or broken, and shortly thereafter every movie on every physical DVD will become shareable.

The movie industry presumably knows this; they must truly hate the entire idea of HD-DVD and any form of persistent distribution of movies.

They deserved better leadership ...

The NYT today profiled a few of the American soldiers who've died recently in Iraq. Sergeant Fry was the last story of the article:

A Grim Milestone in Iraq: 3,000 American Deaths - New York Times:

... A team leader, Sergeant Fry, who shipped out to Iraq in September 2005, disarmed 73 bombs, including one of the biggest car bombs found in Falluja. Once he helped defuse a suicide vest that insurgents had belted to a mentally handicapped Iraqi teenage boy. The boy had been beaten and chained to a wall. Another time, he spotted a bomb from the roof of a house. A little boy popped into the yard, hovering dangerously close to it. Sergeant Fry won his confidence by playing peekaboo, then got him to move away.

He was in 'very high spirits' in March, calling his wife to say that his duties were done, his paperwork filed and his anticipation impossible to stifle. 'He had made it,' she said. Then a mission came down, and commanders were preparing to send a team of mostly inexperienced men to defuse bombs along a road in Al Anbar province. He volunteered for the job, instead. 'That is how he led,' Mrs. Fry said.

Sergeant Fry found three bombs that night and defused them. But the insurgents had hidden a fourth bomb under the third one, a booby-trap. It blew up and killed him. An Army team stayed with his body for six hours, fending off enemy fire in the dark until soldiers with mortuary affairs arrived to take his body away.

They deserved great leaders, they got the Bush/GOP team. I hope the leadership, at least, is improving ...

Convergence: HDTV LCDs and Computer LCDs

One day we figured computer displays and TV displays would converge. Jeff Atwood says the day is now. I agree about the UI issues with hi res computer displays, which is why both Vista and OS X are moving away from bitmaps to resolution-independent UIs. HDTV is 1920x1080 (another weird aspect ratio btw), the Apple 30" is 2560x1600.

Gulf War II: The critic's view summarized

The New York Review of Books: Iraq: The War of the Imagination summarizes the Woodward, Suskind and Risen on the Bush administration's path to perdition with additional commentary and footnotes. Mark Danner promises a future article on the "third act", namely what comes now.

Bush/Cheney et al combined bad data with bad judgment and terrible execution to produce a strategic blunder an order of magnitude worse than the Soviet occupation of Afghanistan. America dutifully reelected them, so their voters share the blame.

Despite all that has gone before, I am cautiously optimistic. There is so much at stake in Iraq that many powerful forces, and immense numbers of less powerful people, will conspire to try to salvage the situation; albeit at an immense cost in lives and economic productivity. Perhaps, if there are enough of these forces, the colossal and catastrophic incompetence of George Bush and Dick Cheney can be managed and redirected, and these two men can retire to give speeches we can all ignore.