Startup Weekend Hits SXSW 2010

Startup Weekend and Piryx are working on the 2nd Annual Piryxtopia Charity Bash – this is your chance to donate 20 bucks and get tickets to meet up with Startup Weekend and Pyrix. This also ties into the idea of doing startup support in Haiti via We Hear Your Voice.

You need to go here http://314.piryx.com and register for the event. You will be asked for a donation. You also need to pick up a handy identification card that will be available at SXSW at supporter booths that will found throughout the SXSW event. You can hit their Facebook page to get a direct map of where all the booths and people are that will have one of the lodge cards for you to get involved. They state:

In order to attend this event, guests must pick-up a Piryx 314 card beforehand. These cards will be circulating during the first 2 days of SXSW and can be obtained through any Piryx, or Startup Weekend employee. Cards will be also available through supporters and booths scattered around SXSW. Join our Facebook Event Page to learn about who and where these folks are. The cards must be registered in advance, which will automatically put your name on the list for the party. A $20 donation to We Hear Your Voice is the suggested entry price for the event – there will be a $5 discount if you tweet out a message with the hashtag “Pi4Haiti”, and show it to the person giving out the cards. Source: Piryx.com

If you are going to SXSW, this is one event that has many benefits, meet the right people who sponsor startups like Startup Weekend, hook up with Piryx for corporate giving and help the folks in Haiti. Of course all of this is going to even cooler when Startup Weekend goes down to Haiti to help startups get off the ground once the internet is back up and running. Right now the main lines are still down as the major internet points were taken out during the earthquake. Right now everyone is on Sattelite communications, but there are teams down there now helping the country at least get the internet back up and running.

When Startup Weekend announces the event for Haiti – look for that news here. In the mean time help everyone get back up on their feet, do the donation and support Startup Weekend, Piryx and Haiti.

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Amazon sees renewed pressure to collect State Sales Tax

Amazon and other online retailers like EBay might not be able to dodge the tax collection business for much longer as States try increasingly to find new areas of revenue. Over the last couple of weeks, both Colorado and California have started passing legislation in one form or another that will mean that Amazon will have to seriously work on collecting sales tax.

Amazon, EBay and its myriad rivals have all had a very long free ticket about not collecting state sales tax. Although Washington State people who order off of Amazon pay Washington State Sales tax on a regular basis, Colorado, California and other states are back on the “collect state sales tax” bandwagon again this year. Last year Amazon and many other companies banded together to help stop the process. But as the recession drags on into its second year, cash strapped states are looking at online sales tax as one way of digging themselves out of a deficit or not have to cut back any further on critical support programs.

This is a double edged sword for many of the companies doing business online. For more than 10 years sales on internet purchased items have been free of many of the taxes that we pay when we go to the physical store. This has been a huge competitive advantage over the local corner bookshop or the larger brick and mortar operations like Barnes and Nobel as well as Boarders. Add to that the advent of market pricing on books down to a penny, it is often very easy to find a brand new hard cover book going for one cent on Amazon, that even with the 3.99 dollar postage that a person pays makes the entire sales tax argument moot. What is 8.5% of 1 penny? You would have to sell 100 penny books to make 8.5 cents in sales taxes. This is not the way to dig a state coffer out of a fiscal deficit, 8.5 cents does not go very far at all.

This does not include the regularly priced books, but competition is fierce on Amazon, EBay and other systems like Alibris who will all end up collecting sales tax on deeply discounted items. It would be interesting to see what this move actually adds to the state budget because odds are highly likely that when states go and do their price comparisons they are pulling the normal suggested retail price and not taking into account that almost everything on any ecommerce site is so deeply discounted that actual state revenues are going to be minimal at best.

Taxing the sales though online is fair and probably an idea well past its time. Although this might dent online sales, it will not for long because the long term damage is already done to the local marketplace. The corner bookstore is dead. Many of the Mom and Pop operations who did not or could not go onto the internet or did not start selling deeply discounted items on Amazon, EBay, Alibris, or the host of other sites is already gone. People have no place but Wall-mart for some items where they will pay state sales tax. Other items are only available online; they just are not available in the brick and mortar world. In the end, shoppers will still find deep discounts online; they just might have to pay tax on it for a change. At least the sales tax will be on the final value of the product, and not on the full price value that the states are probably basing their tax estimates on.

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When Bloggers Collide online

This is going to be one of the ever present dangers with team blogs, two bloggers rapid fire the same kind of article at nearly the same time, hitting the team server within seconds of each other. Sometimes blogger collisions happen, and when they do it might take a minute for folks to figure out what is going on.

Earlier today both Krishnan and myself over at Cloud Avenue covered the huge news today for Seattle Startups, that Picnik was acquired by Google. This is truly huge news in this town, and as Picnik is a huge success story. Not just on the general public accolades that they pick up from everyone, but their sweeping of the Seattle 2.0 awards in 2009. This is truly a startup success story with a huge payday for everyone who supported and funded the company. Odds are highly likely that Picnik would also have a resounding success in the 2010 Seattle 2.0 awards as well. They are a company that has managed to stay human throughout the process, but they also stayed small enough to keep the vision of the company alive. As far as startup successes go, Picnik was hitting on all cylinders, a great product, great people, and people who really cared about what they are doing. Of course we are going to celebrate, and both Krishnan and myself are from Seattle, so when something cool like this happens, we just have to blog about it.

It looks like though we submitted similar articles about 3 minutes apart from each other, and both of them were reposted on Cloud Avenue, our second home from our normal blogs. This caused a small stir amongst the folks who read Cloud Ave. Meaning that the small stir equated to an apology to readers of Cloud Ave who picked up similar news within minutes of each other.

This is one of the interesting aspects of remote team blogging, in that at times articles will collide, and in the absence of an overall editor or editorial process can lead to reader confusion. Both articles by Krishnan and me are equally good, and raise similar points that were also picked up by Read Write Web over how this will influence the outcomes of competition with Flickr and SmugMug. The question is then is how badly did this confuse Cloud Ave readers, and realistically something like this is going to happen again. It can happen anywhere there is team blogging going on and the final articles are posted semi-automatically. The only way to truly solve something like this is to either have a separation of things we write about, which will never happen. Or have some kind of editorial process where the quality of an article is judged and the best article is promoted on the team blog. That editorial process is also unlikely to happen as Cloud Ave is very democratic in how they operate.

Cloud Avenue has been very good for me, and my readers there are some of the coolest people in the world. But when bloggers collide on line, like Krishnan and me today, this ends up being more amusing than anything else. Cloud Avenue has a great team model that works, and sometimes things like this are going to happen.

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Picnik gets acquired by Google

In great news for Seattle Startups, Picnik gets picked up by Google in some interesting M&A activity, because everyone is going to be thinking of Flickr and SmugMug being right in the sights of Google. Online photo editing and storage just hit an air pocket.

Picnik was a clear winner in the Seattle 2.0 awards in 2009 (look for the 2010 awards as well, tickets are on sale here) because they are an awesome company with a cool software package suit that makes online photo editing and sharing very easy. With today’s acquisition by Google, it is looking like Google is taking a direct shot at Flickr and SmugMug which are the two best properties for storing pictures online (in the case of Flickr) and photo editing which SmugMug allows you to do in a limited fashion.

From the Picnik Blog today:

And all this leads us to today’s exciting news: we’ve just been acquired by Google! What does this mean for Picnik? It means we can think BIG. Google processes petabytes of data every day, and with their worldwide infrastructure and world-class team, it is truly the best home we could have found. Under the Google roof we’ll reach more people than ever before, impacting more lives and making more photos more awesome. Source: Picnik Blog

What happens from here should be interesting with Google’s ability to search and parse image data, adding to this the easy way to store and process and share images will give Google a leg up in the picture sharing and management space that they did not have before. While I will stick with SmugMug, and continue to use Flickr for the occasional pictures, Google just landed heavily in the picture sharing, storage, and processing market, with one of the coolest suites of software out in the market place today.

Good for Picnik, good for Google, this is going to be hard on Flickr and SmugMug in the future.

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Jesse Stay hits the Copyright Wall

Jesse Stay is one of the better people to follow on the internet and his writing is always interesting to read, plus he also owns Social Too and has written two books as well. Jesse is no stranger to generating content, startups, and some generally interesting reading on his blog. What has apparently happened is that Jessie has noticed that Google is stripping his ads off his RSS feed, shoving his full content into Buzz, and then monetizing the content without Jessie getting a dime. As he states on his blog today

To be clear, I’m fine with them either displaying the ads that I put there (and allowing me to monetize off the other ads that are on the page), or just summarizing the article and encouraging users to click through to my site. I’m not okay with Google scraping my content, stripping my ads, altering my content, and pushing it out for them to get 100% of the revenues off of something I spent time and money making. Source: Stayin’ Alive

What makes this interesting to me is that there seems to be two types of copyright, copyright for big corporations under the rule of Law like the DMCA, and the forthcoming ACTA (which should scare you if you read Micheal Geist), then there is copyright for the rest of us. Bloggers who deal with scrapers is a daily issue. What makes this more interesting is the number of headlines from such companies as the MPAA who had to remove the MPAA Toolkit for copyright infringement. There is the long drawn out battle between Shepard Fairey and the AP over a picture of Obama where copyright was clearly in dispute over who owned what. Pictures of Obama being used in Fashion Ads. There is a 15 year old Dallas student who without permission find their pictures ripped from Flickr and used in an advertising campaign in Australia. Or even big media companies like ESPN playing commercials that used pictures that did not belong to them and the owner was not compensated. Google is no new comer to this controversy – they are desperately trying to get a book settlement through the courts that allows them to scan books that are without findable owners and drop them into their search system.

Jessie, and indeed many bloggers and people who actually do create new content are at the rock and hard place. While it great to add a CC 2.0 share and share alike copyright, or even insist on full copyright of all materials on our blogs, the reality is that many people are trying to make money off of what creators write. It is not just limited to shady scrapers, it has permeated the entire culture, we scrape we make money. It is everywhere, my fair share notification each week shows me tens of sites that scrape every single article I write. I have only authorized two sites to use content from my two original blogs.

This is where things get interesting, and where it might be time for bloggers to take a deep look at what is happening to our content on the internet. How it is used, who uses it and who monetizes it. How we share monetization from the major advertising systems that use our content to make money. How we view full text feeds which are popular and in many cases necessary to keep readers. I do not recommend a RIAA/MPAA style pogrom, but a deep research project in how much money is really made by others monetizing content while the creators get little or nothing. We might find that we are ahead of the game or behind the game, but maybe it is time to seriously look at the blogging model we have now, and see if there is a way to ensure that the few copyrights we do have are respected and not subverted by a larger company.

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