Digital Smarts Everywhere: The Emergence of Ambient Intelligence

Image from Pixabay

Image from Pixabay

The Troggs were a legendary rock and roll band who were part of the British Invasion in the late 1960’s. They have always been best known for their iconic rocker Wild Thing. This was also the only Top 10 hit that ever had an ocarina solo. How cool is that! The band went on to have two other major hits, With a Girl Like You and Love is All Around.¹

The third of the band’s classic singles can be stretched a bit to be used as a helpful metaphor to describe an emerging form pervasive “all around”-edness, this time in a more technological context. Upon reading a fascinating recent article on TechCrunch.com entitled The Next Stop on the Road to Revolution is Ambient Intelligence, by Gary Grossman, on May 7, 2016, you will find a compelling (but not too rocking) analysis about how the rapidly expanding universe of digital intelligent systems wired into our daily routines is becoming more ubiquitous, unavoidable and ambient each day.

All around indeed. Just as romance can dramatically affect our actions and perspectives, studies now likewise indicate that the relentless global spread of smarter – – and soon thereafter still smarter – – technologies is comparably affecting people’s lives at many different levels.² 

We have followed just a sampling of developments and trends in the related technologies of artificial intelligence, machine learning, expert systems and swarm intelligence in these 15 Subway Fold posts. I believe this new article, adding “ambient intelligence” to the mix, provides a timely opportunity to bring these related domains closer together in terms of their common goals, implementations and benefits. I highly recommend reading Mr. Grossman’s piece it in its entirety.

I will summarize and annotate it, add some additional context, and then pose some of my own Trogg-inspired questions.

Internet of Experiences

Digital this, that and everything is everywhere in today’s world. There is a surging confluence of connected personal and business devices, the Internet, and the Internet of Things (I0T) ³. Woven closely together on a global scale, we have essentially built “a digital intelligence network that transcends all that has gone before”. In some cases, this quantum of advanced technologies gains the “ability to sense, predict and respond to our needs”, and is becoming part of everyone’s “natural behaviors”.

A forth industrial revolution might even manifest itself in the form of machine intelligence whereby we will interact with the “always-on, interconnected world of things”. As a result, the Internet may become characterized more by experiences where users will converse with ambient intelligent systems everywhere. The supporting planks of this new paradigm include:

A prediction of what more fully realized ambient intelligence might look like using travel as an example appeared in an article entitled Gearing Up for Ambient Intelligence, by Lisa Morgan, on InformationWeek.com on March 14, 2016. Upon leaving his or her plane, the traveler will receive a welcoming message and a request to proceed to the curb to retrieve their luggage. Upon reaching curbside, a self-driving car6 will be waiting with information about the hotel booked for the stay.

Listening

Another article about ambient intelligence entitled Towards a World of Ambient Computing, by Simon Bisson, posted on ZDNet.com on February 14, 2014, is briefly quoted for the line “We will talk, and the world will answer”, to illustrate the point that current technology will be morphing into something in the future that would be nearly unrecognizable today. Grossman’s article proceeds to survey a series of commercial technologies recently brought to market as components of a fuller ambient intelligence that will “understand what we are asking” and provide responsive information.

Starting with Amazon’s Echo, this new device can, among other things:

  • Answer certain types of questions
  • Track shopping lists
  • Place orders on Amazon.com
  • Schedule a ride with Uber
  • Operate a thermostat
  • Provide transit schedules
  • Commence short workouts
  • Review recipes
  • Perform math
  • Request a plumber
  • Provide medical advice

Will it be long before we begin to see similar smart devices everywhere in homes and businesses?

Kevin Kelly, the founding Executive Editor of WIRED and a renowned futurist7, believes that in the near future, digital intelligence will become available in the form of a utility8 and, as he puts it “IQ as a service”. This is already being done by Google, Amazon, IBM and Microsoft who are providing open access to sections of their AI coding.9 He believes that success for the next round of startups will go to those who enhance and transforms something already in existence with the addition of AI. The best example of this is once again self-driving cars.

As well, in a chapter on Ambient Computing from a report by Deloitte UK entitled Tech Trends 2015, it was noted that some products were engineering ambient intelligence into their products as a means to remain competitive.

Recommending

A great deal of AI is founded upon the collection of big data from online searching, the use of apps and the IoT. This universe of information supports neural networks learn from repeated behaviors including people’s responses and interests. In turn, it provides a basis for “deep learning-derived personalized information and services” that can, in turn, derive “increasingly educated guesses with any given content”.

An alternative perspective, that “AI is simply the outsourcing of cognition by machines”, has been expressed by Jason Silva, a technologist, philosopher and video blogger on Shots of Awe. He believes that this process is the “most powerful force in the universe”, that is, of intelligence. Nonetheless, he sees this as an evolutionary process which should not be feared. (See also the December 27, 2014 Subway Fold post entitled  Three New Perspectives on Whether Artificial Intelligence Threatens or Benefits the World.)

Bots are another contemporary manifestation of ambient intelligence. These are a form of software agent, driven by algorithms, that can independently perform a range of sophisticated tasks. Two examples include:

Speaking

Optimally, bots should also be able to listen and “speak” back in return much like a 2-way phone conversation. This would also add much-needed context, more natural interactions and “help to refine understanding” to these human/machine exchanges. Such conversations would “become an intelligent and ambient part” of daily life.

An example of this development path is evident in Google Now. This service combines voice search with predictive analytics to present users with information prior to searching. It is an attempt to create an “omniscient assistant” that can reply to any request for information “including those you haven’t thought of yet”.

Recently, the company created a Bluetooth-enable prototype of lapel pin based on this technology that operates just by tapping it much like the communicators on Star Trek. (For more details, see Google Made a Secret Prototype That Works Like the Star Trek Communicator, by Victor Luckerson, on Time.com, posted on November 22, 2015.)

The configurations and specs of AI-powered devices, be it lapel pins, some form of augmented reality10 headsets or something else altogether, supporting such pervasive and ambient intelligence are not exactly clear yet. Their development and introduction will take time but remain inevitable.

Will ambient intelligence make our lives any better? It remains to be seen, but it is probably a viable means to handle some of more our ordinary daily tasks. It will likely “fade into the fabric of daily life” and be readily accessible everywhere.

Quite possibly then, the world will truly become a better place to live upon the arrival of ambient intelligence-enabled ocarina solos.

My Questions

  • Does the emergence of ambient intelligence, in fact, signal the arrival of a genuine fourth industrial revolution or is this all just a semantic tool to characterize a broader spectrum of smarter technologies?
  • How might this trend affect overall employment in terms of increasing or decreasing jobs on an industry by industry basis and/or the entire workforce? (See also this June 4, 2015 Subway Fold post entitled How Robots and Computer Algorithms Are Challenging Jobs and the Economy.)
  • How might this trend also effect non-commercial spheres such as public interest causes and political movements?
  • As ambient intelligence insinuates itself deeper into our online worlds, will this become a principal driver of new entrepreneurial opportunities for startups? Will ambient intelligence itself provide new tools for startups to launch and thrive?

 


1.   Thanks to Little Steven (@StevieVanZandt) for keeping the band’s music in occasional rotation on The Underground Garage  (#UndergroundGarage.) Also, for an appreciation of this radio show see this August 14, 2014 Subway Fold post entitled The Spirit of Rock and Roll Lives on Little Steven’s Underground Garage.

2.  For a remarkably comprehensive report on the pervasiveness of this phenomenon, see the Pew Research Center report entitled U.S. Smartphone Use in 2015, by Aaron Smith, posted on April 1, 2015.

3These 10 Subway Fold posts touch upon the IoT.

4.  The Subway Fold category Big Data and Analytics contains 50 posts cover this topic in whole or in part.

5.  The Subway Fold category Telecommunications contains 12 posts cover this topic in whole or in part.

6These 5 Subway Fold posts contain references to self-driving cars.

7.   Mr. Kelly is also the author of a forthcoming book entitled The Inevitable: Understanding the 12 Technological Forces That Will Shape Our Future, to be published on June 7, 2016 by Viking.

8.  This September 1, 2014 Subway Fold post entitled Possible Futures for Artificial Intelligence in Law Practice, in part summarized an article by Steven Levy in the September 2014 issue of WIRED entitled Siri’s Inventors Are Building a Radical New AI That Does Anything You Ask. This covered a startup called Viv Labs whose objective was to transform AI into a form of utility. Fast forward to the Disrupt NY 2016 conference going on in New York last week. On May 9, 2016, the founder of Viv, Dag Kittlaus, gave his presentation about the Viv platform. This was reported in an article posted on TechCrunch.com entitled Siri-creator Shows Off First Public Demo of Viv, ‘the Intelligent Interface for Everything’, by Romain Dillet, on May 9, 2016. The video of this 28-minute presentation is embedded in this story.

9.  For the full details on this story see a recent article entitled The Race Is On to Control Artificial Intelligence, and Tech’s Future by John Markoff and Steve Lohr, published in the March 25, 2016 edition of The New York Times.

10These 10 Subway Fold posts cover some recent trends and development in augmented reality.

The Mediachain Project: Developing a Global Creative Rights Database Using Blockchain Technology

Image from Pixabay

Image from Pixabay

When people are dating it is often said that they are looking for “Mr. Right” or “Ms. Right”. That is, finding someone who is just the right romantic match for them.

In the case of today’s rapid development, experimentation and implementation of blockchain technology, if a startup’s new technology takes hold, it might soon find a highly productive (but maybe not so romantic) match in finding Mr. or Ms. [literal] Right by deploying the blockchain as a form of global registry of creative works ownership.

These 5 Subway Fold posts have followed just a few of the voluminous developments in bitcoin and blockchain technologies. Among them, the August 21, 2015 post entitled Two Startups’ Note-Worthy Efforts to Adapt Blockchain Technology for the Music Industry has drawn the most number of clicks. A new report on Coindesk.com on February 23, 2016 entitled Mediachain is Using Blockchain to Create a Global Rights Database by Pete Rizzo provides a most interesting and worthwhile follow on related to this topic. I recommend reading it in its entirety. I will summarize and annotate it to provide some additional context, and then pose several of my own questions.

Producing a New Protocol for Ownership, Protection and Monetization

Applications of blockchain technology for the potential management of economic and distribution benefits of “creative professions”, including writers, musicians and others, that have been significantly affected by prolific online file copying still remains relatively unexplored. As a result, they do not yet have the means to “prove and protect ownership” of their work. Moreover, they do have an adequate system to monetize their digital works. But the blockchain, by virtue of its structural and operational nature, can supply these creators with “provenance, identity and micropayments“. (See also the October 27, 2015 Subway Fold post entitled Summary of the Bitcoin Seminar Held at Kaye Scholer in New York on October 15, 2015 for some background on these three elements.)

Now on to the efforts of a startup called Mine ( @mine_labs ), co-founded by Jesse Walden and Denis Nazarov¹. They are preparing to launch a new metadata protocol called Mediachain that enables creators working in digital media to write data describing their work along with a timestamp directly onto the blockchain. (Yet another opportunity to go out on a sort of, well, date.)  This system is based upon the InterPlanetary File System (IPFS). Mine believes that IPSF is a “more readable format” than others presently available.

Walden thinks that Mediachain’s “decentralized nature”, rather than a more centralized model, is critical to its objectives. Previously, a very “high-profile” somewhat similar initiative to establish a similarly global “database of musical rights and works” called the Global Repertoire Database (GDR) had failed.

(Mine maintains this page of a dozen recent posts on Medium.com about their technology that provides some interesting perspectives and details about the Mediachain project.)

Mediachain’s Objectives

Walden and Nazarov have tried to innovate by means of changing how media businesses interact with the Internet, as opposed to trying to get them to work within its established standards. Thus, the Mediachain project has emerged with its focal point being the inclusion of descriptive data and attribution for image files by combining blockchain technology and machine learning². As well, it can accommodate reverse queries to identify the creators of images.

Nazarov views Mediachain “as a global rights database for images”. When used in conjunction with, among others, Instagram, he and Walden foresee a time when users of this technology can retrieve “historic information” about a file. By doing so, they intend to assist in “preserving identity”, given the present challenges of enforcing creator rights and “monetizing content”. In the future, they hope that Mediachain inspires the development of new platforms for music and movies that would permit ready access to “identifying information for creative works”. According to Walden, their objective is to “unbundle identity and distribution” and provide the means to build new and more modern platforms to distribute creative works.

Potential Applications for Public Institutions

Mine’s co-founders believe that there is further meaningful potential for Mediachain to be used by public organizations who provide “open data sets for images used in galleries, libraries and archives”. For example:

  • The Metropolitan Museum of Art (“The Met” as it is referred to on their website and by all of my fellow New York City residents), has a mandate to license the metadata about the contents of their collections. The museum might have a “metadata platform” of its own to host many such projects.
  • The New York Public Library has used their own historical images, that are available to the public to, among other things, create maps.³ Nazarov and Walden believe they could “bootstrap the effort” by promoting Mediachain’s expanded apps in “consumer-facing projects”.

Maintaining the Platform Security, Integrity and Extensibility

Prior to Mediachain’s pending launch, Walden and Nazarov are highly interested in protecting the platform’s legitimate users from “bad actors” who might wrongfully claim ownership of others’ rightfully owned works. As a result, to ensure the “trust of its users”, their strategy is to engage public institutions as a model upon which to base this. Specifically, Mine’s developers are adding key functionality to Mediachain that enables the annotation of images.

The new platform will also include a “reputation system” so that subsequent users will start to “trust the information on its platform”. In effect, their methodology empowers users “to vouch for a metadata’s correctness”. The co-founders also believe that the “Mediachain community” will increase or decrease trust in the long-term depending on how it operates as an “open access resource”. Nazarov pointed to the success of Wikipedia to characterize this.

Following the launch of Mediachain, the startup’s team believes this technology could be integrated into other existing social media sites such as the blogging platform Tumblr. Here they think it would enable users to search images including those that may have been subsequently altered for various purposes. As a result, Tumblr would then be able to improve its monetization efforts through the application of better web usage analytics.

The same level of potential, by virtue of using Mediachain, may likewise be found waiting on still other established social media platforms. Nazarov and Walden mentioned seeing Apple and Facebook as prospects for exploration. Nazarov said that, for instance, Coindesk.com could set its own terms for its usage and consumption on Facebook Instant Articles (a platform used by publishers to distribute their multimedia content on FB). Thereafter, Mediachain could possibly facilitate the emergence of entirely new innovative media services.

Nazarov and Walden temper their optimism because the underlying IPFS basis is so new and acceptance and adoption of it may take time. As well, they anticipate “subsequent issues” concerning the platform’s durability and the creation of “standards for metadata”. Overall though, they remain sanguine about Mediachain’s prospects and are presently seeking developers to embrace these challenges.

My Questions

  • How would new platforms and apps using Mediachain and IPSF be affected by the copyright and patent laws and procedures of the US and other nations?
  • How would applications built upon Mediachain affect or integrate with digital creative works distributed by means of a Creative Commons license?
  • What new entrepreneurial opportunities for startup services might arise if this technology eventually gains web-wide adoption and trust among creative communities?  For example, would lawyers and accountants, among many others, with clients in the arts need to develop and offer new forms of guidance and services to navigate a Mediachain-enabled marketplace?
  • How and by whom should standards for using Mediachain and other potential development path splits (also known as “forks“), be established and managed with a high level of transparency for all interested parties?
  • Does analogizing what Bitcoin is to the blockchain also hold equally true for what Mediachain is to the blockchain, or should alternative analogies and perspectives be developed to assist in the explanation, acceptance and usage of this new platform?

June 1, 2016 Update:  For an informative new report on Mediachain’s activities since this post was uploaded in March, I recommend clicking through and reading Mediachain Enivisions a Blockchain-based Tool for Identifying Artists’ Work Across the Internet, by Jonathan Shieber, posted today on TechCrunch.com.


1.   This link from Mine’s website is to an article entitled Introducing Mediachain by Denis Nazarov, originally published on Medium.com on January 2, 2016. He mentions in his text an earlier startup called Diaspora that ultimately failed in its attempt at creating something akin to the Mediachain project. This December 4, 2014 Subway Fold post entitled Book Review of “More Awesome Than Money” concerned a book that expertly explored the fascinating and ultimately tragic inside story of Diaspora.

2.   Many of the more than two dozen Subway Fold posts in the category of Smart Systems cover some of the recent news, trends and applications in machine learning.

3.  For details, see the January 5, 2016 posting on the NY Public Library’s website entitled Free for All: NYPL Enhances Public Domain Collections for Sharing and Reuse, by Shana Kimball and Steven A. Schwarzman.

New Startup’s Legal Research App is Driven by Watson’s AI Technology

"Supreme Court, 60 Centre Street, Lower Manhattan", Image by Jeffrey Zeldman

[New York] “Supreme Court, 60 Centre Street, Lower Manhattan”, Image by Jeffrey Zeldman

May 9, 2016: An update on this post appears below.


Casey Stengel had a very long, productive and colorful career in professional baseball as a player for five teams and later as a manager for four teams. He was also consistently quotable (although not to the extraordinary extent of his Yankee teammate Yogi Berra). Among the many things Casey said was his frequent use of the imperative “You could look it up”¹.

Transposing this gem of wisdom from baseball to law practice², looking something up has recently taken on an entirely new meaning. According to a fascinating article posted on Wired.com on August 8, 2015 entitled Your Lawyer May Soon Ask for This AI-Powered App for Legal Help by Davey Alba, a startup called ROSS Intelligence has created a unique new system for legal research. I will summarize, annotate and pose a few questions of my own.

One of the founders of ROSS, Jimoh Ovbiagele (@findingjimoh), was influenced by his childhood and adolescent experiences to pursue studying either law or computer science. He chose the latter and eventually ended up working on an artificial intelligence (AI) project at the University of Toronto. It occurred to him then that machine learning (a branch of AI), would be a helpful means to assist lawyers with their daily research requirements.

Mr. Ovbiagele joined with a group of co-founders from diverse fields including “law to computers to neuroscience” in order to launch ROSS Intelligence. The legal research app they have created is built upon the AI capabilities of IBM’s Watson as well as voice recognition. Since June, it has been tested in “small-scale pilot programs inside law firms”.

AI, machine learning, and IBM’s Watson technology have been variously taken up in these nine Subway Fold posts. Among them, the September 1, 2014 post entitled Possible Futures for Artificial Intelligence in Law Practice covered the possible legal applications of IBM’s Watson (prior to the advent of ROSS), and the technology of a startup called Viv Labs.

Essentially, the new ROSS app enables users to ask legal research questions in natural language. (See also the July 31, 2015 Subway Fold post entitled Watson, is That You? Yes, and I’ve Just Demo-ed My Analytics Skills at IBM’s New York Office.) Similar in operation to Apple’s Siri, when a question is verbally posed to ROSS, it searches through its data base of legal documents to provide an answer along with the source documents used to derive it. The reply is also assessed and assigned a “confidence rating”. The app further prompts the user to evaluate the response’s accuracy with an onscreen “thumbs up” or “thumbs down”. The latter will prompt ROSS to produce another result.

Andrew Arruda (@AndrewArruda), another co-founder of ROSS, described the development process as beginning with a “blank slate” version of Watson into which they uploaded “thousands of pages of legal documents”, and trained their system to make use of Watson’s “question-and-answer APIs³. Next, they added machine learning capabilities they called “LegalRank” (a reference to Google’s PageRank algorithm), which, among others things, designates preferential results depending upon the supporting documents’ numbers of citations and the deciding courts’ jurisdiction.

ROSS is currently concentrating on bankruptcy and insolvency issues. Mr. Ovbiagele and Mr. Arruda are sanguine about the possibilities of adding other practice areas to its capabilities. Furthermore, they believe that this would meaningfully reduce the $9.6 billion annually spent on legal research, some of which is presently being outsourced to other countries.

In another recent and unprecedented development, the global law firm Dentons has formed its own incubator for legal technology startups called NextLaw Labs. According to this August 7, 2015 news release on Denton’s website, the first company they have signed up for their portfolio is ROSS Intelligence.

Although it might be too early to exclaim “You could look it up” at this point, my own questions are as follows:

  • What pricing model(s) will ROSS use to determine the cost structure of their service?
  • Will ROSS consider making its app available to public interest attorneys and public defenders who might otherwise not have the resources to pay for access fees?
  • Will ROSS consider making their service available to the local, state and federal courts?
  • Should ROSS make their service available to law schools or might this somehow impair their traditional teaching of the fundamentals of legal research?
  • Will ROSS consider making their service available to non-lawyers in order to assist them in represent themselves on a pro se basis?
  • In addition to ROSS, what other entrepreneurial opportunities exist for other legal startups to deploy Watson technology?

Finally, for an excellent roundup of five recent articles and blog posts about the prospects of Watson for law practice, I highly recommend a click-through to read Five Solid Links to Get Smart on What Watson Means for Legal, by Frank Strong, posted on The Business of Law Blog on August 11, 2015.


May 9, 2016 Update:  The global law firm of Baker & Hostetler, headquartered in Cleveland, Ohio, has become the first US AmLaw 100 firm to announce that it has licensed the ROSS Intelligence’s AI product for its bankruptcy practice. The full details on this were covered in an article posted on May 6, 2016 entitled AI Pioneer ROSS Intelligence Lands Its First Big Law Clients by Susan Beck, on Law.com.

Some follow up questions:

  • Will other large law firms, as well as medium and smaller firms, and in-house corporate departments soon be following this lead?
  • Will they instead wait and see whether this produces tangible results for attorneys and their clients?
  • If so, what would these results look like in terms of the quality of legal services rendered, legal business development, client satisfaction, and/or the incentives for other legal startups to move into the legal AI space?

1.  This was also the title of one of his many biographies,  written by Maury Allen, published Times Books in 1979.

2.  For the best of both worlds, see the legendary law review article entitled The Common Law Origins of the Infield Fly Rule, by William S. Stevens, 123 U. Penn. L. Rev. 1474 (1975).

3For more details about APIs see the July 2, 2015 Subway Fold post entitled The Need for Specialized Application Programming Interfaces for Human Genomics R&D Initiatives

New Report Finds Ad Blockers are Quickly Spreading and Costing $Billions in Lost Revenue

"Stop Sign", Image by Kt Ann

“Stop Sign”, Image by Kt Ann

The global usage of ad blocking software is rapidly rising and the cost in 2015 so far has been $21.8 billion in lost revenue. This amount is projected to nearly double in 2016. These are the key conclusions of a new 17-page report entitled The Cost of Ad Blocking, co-authored by Adobe and PageFirst (a startup working to analyze and counter ad blocking technology). The report assesses the technological, economic and geographic impacts of this phenomenon.

A concise summary and analysis of this was posted on BusinessInsider.com on August 10, 2015 entitled Ad Blocking Has Grown 41% in the Past Year and It’s Costing Publishers Tens of Billions of Dollars by Lara O’Reilly. I will sum up, annotate, and add a few unblocked questions of my own.

I highly recommend clicking through reading both the actual report and Ms. O’Reilly’s article together for a fuller perspective on this subject.

Other leading data points among the report’s findings include:

  • Ad blocking software usage has increased 41% in the last year, now totaling 198 million active users each month.
  • While this represents only 6% of web-wide activity, it is the dollar equivalent of 14% of the “global ad spend”.
  • In 2016, the revenue lost to ad blocking is expected to reach $41.4 billion.
  • The usage of ad blockers began to rise significantly in 2013 (as shown in the chart on Page 4 of the report).
  • Ad blocker users tend to be “young, technically savvy, and more likely to be male”.
  • The rates of ad blocking varies widely within specific countries (as shown in the graphic on Page 5 of the report), and likewise from country to country (as shown on Page 6 displaying the countries in Europe).

Dr. Johnny Ryan, an executive at PageFirst, views the growth of ad blocking as being “viral” in its characteristics and anticipated continuance. As stated in the 2014 report on ad blocking, this software spreads both by word of mouth and users’ online research.

Currently, most ad blocking activity is on desktops. Despite the 38% of total web browsing occurring on mobile devices, ad blocking is now only present in 1.6% of this traffic. (See Page 10 of the report for the indicators of potential increases turning it into a “mainstream phenomenon”.)

As well, Apple’s pending release of its IOS9 mobile operating system will permit developers to create ad blocking apps. Both Apple and PageFirst stated this could be a “game changer” insofar as Apple’s deep and wide global reach of its mobile products. (See the bottom of Page 11 of the report.)

Regarding users’ motivations for using ad blockers, a survey of 400 US users, displayed on Page 12, found the leading reason was their concern over the handling of their personal data.

In another survey of UK users by the Internet Advertising Bureau, a majority found that ad blockers increased the speed and performance of their browsers (although this was not listed as one of the reasons in the Adobe and PageFirst report). Nonetheless, Mr. Ryan does not consider this to be an important factor is motivating the use of ad blockers.

My own questions are as follows:

  • Are the people motivated enough to install an ad blocker more than likely to not be uninterested in the ads and thus not potential consumers to the degree that the claims of huge lost revenues are not really all that lost?
  • The report’s underlying assumption is that if these blocked ads were otherwise viewed more sales would have been generated. Where’s the actual harm and where’s the real foul if these “lost” users are more unlikely to become paying consumers in the first place?
  • If ad blocking is so pervasive and growing at such a steep rate, are online advertisers now seeing this phenomenon as a just a cost of doing business to be factored into their accounting and reporting systems?
  • How can truly savvy and inventive e-commerce marketers and content strategists possibly use ad blocking their advantage? That is, can they somehow recast their web advertising content and formats to be less intrusive, more informative, and better protective of personal data to incentivize users enough to not use ad blockers?

For additional informative coverage of Adobe’s and PageFirst’s report with further links to useful references, I also suggest clicking through to read a report posted on the Wall Street Journal’s Digits blog  on August 10. 2015 entitled Ad-Blocking Software Will Cost the Ad Industry $22 Billion This Year by Elizabeth Dwoskin.

Google is Giving Away Certain Patents to 50 Startups In Their Latest Effort to Thwart Patent Trolls

"She Runs Neon Fraction of a Second", Image by Wonderlane

“She Runs Neon Fraction of a Second”, Image by Wonderlane

In the highly competitive world of creating, monetizing, defending and challenging tech-based intellectual property, “free” is neither a word often heard nor an offer frequently made.

However, Google has just begun a new program, for a limited time, to give away a certain types of patents they own to an initial group of 50 startups.  This is principally being done in an effort to resist time and resources devouring litigation with “patent trolls“, companies that purchase patents for no other purpose than to litigate infringement claims in their attempts to win monetary judgments. (We first visited this issue in an April 21, 2015 Subway Fold post entitled New Analytics Process Uses Patent Data to Predict Advancements in Specific Technologies.)

The details of this initiative were carried in a most interesting new article on TechCrunch.com posted on July 23, 2015 entitled Google Offers To Give Away Patents To Startups In Its Push Against Patent Trolls by Ingrid Lunden. I will summarize, annotate, and pose some free questions of my own.

In April 2015, Google successfully started a temporary program for companies to offer to sell them (Google) their patents. Then on July 23, 2015, they launched a reciprocal program to give away, at no cost, “non-organic” patents (that is, those purchased by Google from third parties), to startups.

The recipients of these giveaways are required to abide by two primary conditions:

  • They must join the LOT Network for two years.  This is a tech industry association of patent owners dedicated to reducing the volume of patent troll-driven litigation.
  • The patents can only be used defensively to “protect a company against another patent suit”. Thus, the patents cannot be used to bring a case “against another company” or else its ownership “reverts back to Google”.

Kurt Brasch, one of Google’s senior patent licensing managers who was interviewed for the TechCrunch story, expects other members of the LOT Network to start their own similar programs.

For any of the 50 startups to be eligible for Google’s program, another key requirement is that their 2014 revenues must fall between $500,000 and $20 million. Next, if eligibility is determined, within 30 days they will receive “a list of three to five families of patents”, from which they can make their selection. Still, Google “will retain a broad, nonexclusive license to all divested assets”, as these patents might still be important to the company.

For those startups that apply and are determined to be ineligible, Google will nonetheless provide them with access “to its own database of patents”. These are presumed to alas be categorized as “non-organic”. The unselected startups will be able to ask Google to consider “the potential purchase of any such assets”.

Back in April, when Google began their acquisitions of patents, they were approached by many operating companies and patent brokers. Both types of entities told Mr. Brasch about a “problem in the secondary market“. These businesses were looking for an alternative means to sell their patents to Google and Mr. Brasch was seeking a means to assist interested buyers and sellers.

Google eventually purchased 28% of the patents they were offered that the company felt could potentially be used in their own operations. As these patents were added to Google’s patent portfolio, a portion of them were categorized as “non-organic” and, as such, the company is now seeking to give them away.

Both sides of Google’s latest patent initiative demonstrate two important strategic points as the company is now:

  • Taking more action in enabling other tech firms to provide assistance against litigation brought by troll-driven lawsuits.
  • Presenting the company as a comprehensive “broker and portal” for patents matters.

Last week, as another part of this process, Google substantially upgraded the features on its Google Patents Search. This included the addition of search results from both Google Scholar and Google Prior Art Finder.  (For the full details and insights on the changes to these services see Google’s New, Simplified Patent Search Now Integrates Prior Art And Google Scholar, also by Ingrid Lunden, posted on TechCrunch.com on July 16, 2015.)

While both the purchasing and selling operations of Google’s effort to test new approaches to the dynamics of the patent marketplace appear to be limited, they might become more permanent later on depending on the  results achieved. Mr. Brasch also anticipates continuing development of this patent market going forward either from his company or a larger “group of organizations”.  Just as Google has moved into other commercial sector including, among others, “shopping, travel and media”, so too does he expect the appearance of more new and comparable marketplaces.

My own questions are as follows:

  • In addition to opposing patent troll litigation, what other policy, public relations, technical and economic benefits does Google get from their new testbed of marketplace services?
  • What other industries would benefit from Google’s new marketplace? What about pharmaceuticals and medical devices, materials science (see these four recent Subway Fold posts in this category),  and/or automotive and aerospace?
  • Should Google limit this project only to startups? Would they consider a more expansive multi-tiered approach to include different ranges of yearly revenue? If so, how might the selection of patents to be offered and other eligibility requirements be decided?
  • Might there be some instances where Google and perhaps other companies would consider giving away non-organic patents to the public domain and allowing further implementation and development of them to operate on an open source basis? (These 10 Subway Fold posts have variously touched upon open source projects and methods.)

Companies Are Forming Digital Advisory Panels To Help Keep Pace With Trending Technologies

"Empty Boardroom", Image by reynermedia

“Empty Boardroom”, Image by reynermedia

As a result of the lightening-fast rates of change in social media, big data and analytics, and online commerce¹, some large corporations have recently created digital advisory panels (also called  “boards”, “councils” and “groups” in place of “panels”), to assist executives in keeping pace with implementing some of the latest technologies. These panels are being patterned as less formal and scaled-down counterparts of traditional boards of directors.

This story was covered in a fascinating and very instructive article in the June 10, 2015 edition of The Wall Street Journal entitled “Companies Set Up Advisory Boards to Improve Digital Savvy” (subscription required, however, the article is fully available here on nasdaq.com). I will sum up, annotate and add a few questions of my own.

These digital advisory panels are often composed of “six outside experts under 50 years old”. In regularly scheduled meetings, their objective is to assist corporate managers in reaching diverse demographics and using new tools such as virtual reality² for marketing purposes. The executives whom the panels serve are appreciative of their “honest feedback”, access to entrepreneurs, and perspectives on these digital matters.

George L. Davis at the executive recruiting firm Egon Zehnder reports that approximately 50 companies in the Fortune 500 have already set up digital advisory panels. These include, among others, Target Corp. (details below) and American Express. However, not all such panels have not continued to stay in operation.

Here are the experiences of three major corporations with their digital advisory panels:

1. General Electric

GE’s digital advisory panel has met every quarter since its inception in 2011. Its members are drawn from a diversity of fields such as gaming and data visualization³. The youngest member of their 2014 panel was Christina Xu. She is a co-founder of a consulting company called PL Data. She found her experience with GE to be “an interesting window” into a corporate environment.

Ms. Xu played a key role in creating something new that has already drawn eight million downloads. It’s called the GE Sound Pack, a collection of factory sounds recorded at their own industrial facilities, intended for use by musicians4.  In effect, with projects like this the company is using the web in new ways to enhance its online presence and reputation.

GE’s panel also participated in the company’s remembrance of the 45th anniversary of the first moon landing. Back then, the company made the silicon rubber for the Apollo 11 astronauts’ boots. To commemorate in 2014, the panel convinced GE to create and market a limited edition line of “Moon Boot” sneakers online. They sold out in seven minutes. (For more details but, unfortunately, no more chances to get a pair of these way cool sneakers, see an article with photos of them entitled GE Modernizes Moon Boots and Sells Them as Sneakers, by Belinda Lanks, posted on Bloomberg.com on July 16, 2014 .)

2.  Target Corporation

On Target’s digital advisory council,  Ajay Agarwal, who is the Managing Director of Bain Capital Ventures in Palo Alto, California, is one of its four members. He was told by the company that “there were ‘no sacred cows’ “. Among the council’s recommendations was to increase Target’s staff of data scientists faster than originally planned, and to deploy new forms of in-store and online product displays.

Another council member, Sam Yagin, the CEO of Match.com,  viewed a “showcase” Target store and was concerned that it looked just like other locations. He had instead expected advanced and personalized features such as “smart” shopping carts linked to shoppers’ mobile phones that would serve to make shopping more individualized. Casey Carl, the chief strategy and innovation officer at Target, agreed with his assessment.

3.  Medtronic PLC

This medical device manufacturer’s product includes insulin pumps for people with diabetes.5 They have been working with their digital advisory board, founded in 2011, to establish a “rapport” on social media with this community. One of the board’s members, Kay Madati, who was previously an executive at Facebook, recommended a more streamlined approach using a Facebook page. The goal was to build patient loyalty. Today, this FB page (clickable here), has more than 230,000 followers. Another initiative was launched to expand Medtronics’ public perception beyond being a medical device manufacturer.

This digital advisory board was suspended following the company’s acquisition and re-incorporation in Ireland. Nonetheless, an executive expects the advisory board to be revived within six months.

My questions are as follows:

  • Would it be advisable for a member of a digital advisory panel to also sit on another company’s panel, given that it would not be a competitor? Would both the individual and both corporations benefit by the possible cross-pollination of ideas from different markets?
  • What guidelines should be established for choosing members of such panels in terms of their qualifications and then vetting them for any possible business or legal conflicts?
  • What forms of ethical rules and guidelines should be imposed panel members? If so, who should draft,  approve, and then implement them?
  • What other industries, marketplaces, government agencies, schools and public movements might likewise benefit from their own digital advisory panels? Would established tech companies and/or startups likewise find benefits from them?
  • Might finding and recruiting members for a digital advisory panel be a new market segment for executive search firms?
  • What new entrepreneurial opportunities might emerge when and if digital advisory panels continue to grow in acceptance and popularity?

 


1.   All of which are covered in dozens of Subway Fold posts in their respective categories here, here and here.

2.  There are six recent Subway Fold posts in the category of Virtual and Augmented Reality.

3.  There are 21 recent Subway Fold posts in the category of Visualization.

4.   When I first read this, it made me think of Factory by Bruce Springsteen on his brilliant Darkness on the Edge of Town album.

5.   X-ref to the October 3, 2014 Subway Fold post entitled New Startups, Hacks and Conferences Focused Upon Health Data and Analytics concerning Project Night Scout involving a group of engineers working independently to provide additional mobile technology integration and support for people using insulin pumps.

Advertisers Looking for New Opportunities in Virtual and Augmented Spaces

"P1030522.JPG", Image by Xebede

“P1030522.JPG”, Image by Xebede

Are virtual reality (VR) and augmented reality (AR) technologies about to start putting up “Place Your Ad Here” signs in their spaces?

Today’s advertising firms and their clients are constantly searching for new venues and the latest technologies with which to compete in evermore specialized global marketplaces. With so many current and emerging alternatives, investing their resources to reach their optimal audiences and targeted demographics requires highly nimble planning and anticipating risks. Effective strategies for both of these factors were recently explored in-depth in the March 22, 2015 Subway Fold post entitled What’s Succeeding Now in Multi-Level Digital Strategies for Companies.

Just such a new venue to add to the media buying mix might soon become virtual worlds. With VR is the early stages of going more mainstream in the news media (see the May 5, 2015 Subway Fold post entitled The New York Times Introduces Virtual Reality Tech into Their Reporting Operations), and even more so in film (see the March 26, 2015 Subway Fold post entitled Virtual Reality Movies Wow Audiences at 2015’s Sundance and SXSW Festivals), it seems inevitable that VR might turn out to be the next frontier for advertising.

This new marketplace will also include augmented reality, involving the projection of virtual/holographic images within a field of view of the real world. Microsoft recently introduced a very sleek-looking headset for this called the HoloLens, which will be part of their release of Windows 10 expected sometime later this year.

A fascinating report on three new startups in this nascent field entitled Augmented Advertising, by Rachel Metz, appeared in the May/June 2015 edition of MIT Technology Review. (Online, the same article is entitled “Virtual Reality Advertisements Get in Your Face”.) I will sum up, annotate and pose a few additional questions to this. As well, I highly recommend clicking through on the links below to these new companies to fully explore all of the resources on their truly innovative and imaginative sites.

As the VR and AR headsets are set to enter the consumer marketplace later in 2015, manufactured by companies including Oculus, Sony, Microsoft (see the above links), Magic Leap and Samsung, consumers will soon be above to experience video games and movie formatted for these new platforms.

The first company in the article working in this space is called Mediaspike. They develop apps and tools for mobile VR. The demo that the writer Metz viewed with a VR headset placed that her in a blimp flying over a city containing billboards for an amusement ride based on the successful movie franchise that began with Despicable Me. The company is developing product placement implementations within these environments using billboards, videos and other methods.

One of the billboards was showing a trailer for the next movie in this series called Minions. While Metz became a bit queasy during this experience (a still common concern for VR users), she nonetheless found it “a heck of a lot more interesting” than the current types of ads seen on websites and mobile.

The second new firm is called Airvertise. They are developing “virtual 3-D models that are integrated with real world locations”. It uses geographic data to create constructs where, as a virtual visitor, you can readily walk around in them. Their first platform will be smartphone apps followed by augmented reality viewers. At the SXSW Festival last March (please see the link again in the third paragraph above to the post about VR at SXSW), the company demo-ed an iPad app that, using the tablet’s motion sensors, produced and displayed a virtual drone “hovering above the air about 20 feet away” with a banner attached to it. As the user/viewer walks closer to it the relative size and spatial orientation of it correspondingly increases.

The third startup is called Blippar. Their AR-based app permits commercial content to be viewed on smartphones. Examples include seeing football players when the phone is held up to a can of Pepsi, and shades of nail polish from the cosmetics company Maybelline. The company is currently strategizing about how to create ads in this manner that will appropriately consumers engage consumers but not put them off in any way.

My questions are as follows:

  • Will VR and AR advertising agencies and sponsors open up this field to user-generated ads and commercial content which has already been successful in a number of ad campaigns for food and cars? Perhaps by open-sourcing their development platforms, crowdsourcing the ads, and providing assistance with such efforts this new advertising space can gain some additional attention and traction.
  • What is exactly about VR and AR experience that will provide the most leverage to advertising agencies and their clients? Is it only limited to the novelty of it – – that might well wear off after a while – – or is there something unique about these technologies that will inform and entertain consumers about goods and services in ways neither previously conceived of nor achieved? Is a critical must-have app or viral ad campaign going to be needed for this to reach a tipping point?
  • Might countering technologies also appear to block VR and AR advertising? For example, Ad Block Plus is a very popular browser add-on that enables users to filter out today’s banner ads and pop-ups online. How might advertisers positively reaction to such avoidance?
  • Just as the leading social media services such as, among others, Facebook (which now owns Oculus), Twitter and Intagram, where advertisers have major presences, do VR and AR similarly lend themselves to being populated by advertisers on such a web-wide scale?