Friday, April 11, 2008

Copyright Law Under Siege

"As an artist, you have to read this article or you could lose everything you've ever created!

An Orphaned Work is any creative work of art where the artist or copyright owner has released their copyright, whether on purpose, by passage of time, or by lack of proper registration. In the same way that an orphaned child loses the protection of his or her parents, your creative work can become an orphan for others to use without your permission.

Currently, you don't have to register your artwork to own the copyright. You own a copyright as soon as you create something. International law also supports this. Right now, registration allows you to sue for damages, in addition to fair value.

What makes me so MAD about this new legislation is that it legalizes THEFT! The only people who benefit from this are those who want to make use of our creative works without paying for them and large companies who will run the new private copyright registries.

These registries are companies that you would be forced to pay in order to register every single image, photo, sketch or creative work.

It is currently against international law to coerce people to register their work for copyright because there are so many inherent problems with it. But because big business can push through laws in the United States, our country is about to break with the rest of the world, again, and take your rights away.

With the tens of millions of photos and pieces of artwork created each year, the bounty for forcing everyone to pay a registration fee would be enormous. We lose our rights and our creations, and someone else makes money at our expense.

This includes every sketch, painting, photo, sculpture, drawing, video, song and every other type of creative endeavor. All of it is at risk!"

To find out more, read the rest of Mark Simon's AWN article here.

Illustration by Jon Hofferman.

UPDATE: It's worth double-checking, but I've heard that this is old news - that the bill has been voted down already. Can anyone confirm that?

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Thursday, March 06, 2008

Disney Establishes Core Production Overseas?

REUTERS.COM: Disney to make animated films in Japan, paper says
Wed Mar 5, 2008 6:41pm EST

TOKYO (Reuters) - The Walt Disney Co. plans to make animated films in Japan to cater to Asian tastes, as it moves core production outside the United States for the first time, a business daily reported on Thursday.

Disney would team up with Toei Animation and other Japanese studios to tap talent and computer graphics technology, the Nikkei newspaper said.

A short animated film about a robot had already been made with Toei and was due to be aired in May, with two other projects in the works, the paper said.

While Disney sought partners it did not plan acquisitions at this point, it added.

(Reporting by Edwina Gibbs; Editing by Rodney Joyce)

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Disney's had a lot of satellite production houses in other countries before, so I'm assuming 'core production' is the key phrase here. Even so, is it true that Disney's never made a feature completely outside of Burbank? I think so, but with all of those other studios in the '90s, it makes me less certain.

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Thursday, February 28, 2008

New Line Merges With Warner Brothers

VARIETY.COM: Warner Bros. gobbles up New Line
Company ends 40-year run as indie studio
By VARIETY STAFF - Posted: Thurs., Feb. 28, 2008, 1:22pm PT

New Line’s 40-year run as an independent studio ended Thursday when Time Warner said it would fold the company into Warner Bros. New Line will become a unit of Warners, maintaining separate development, production, marketing, distribution and business affairs operations.

Co-toppers Bob Shaye and Michael Lynne are ankling but are in talks to continue some business relationship with Warners.

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I've been told that Warners bought New Line (Turner Entertainment) in 1996, so I'm not sure what folding the studio into Warners' film division will mean.

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Tuesday, December 18, 2007

David Gonzales: Beyond The Homies

LA TIMES: 'Homies' are where his art is
The barrio figurines left their creator rich but unfulfilled. Then he cast his brother as a model of mutual redemption.
By Hector Becerra, Los Angeles Times Staff Writer - December 18, 2007

HERCULES, CALIF. -- Ten years ago, David Gonzales created a hit with "The Homies," 2-inch plastic figurines depicting characters from the barrio, complete with bandannas and baggy pants. Inspired by the homeboys he grew up with, they were sold, quarter by quarter, in gum ball machines in mostly Latino neighborhoods.

Gonzales was lambasted by police and prosecutors, who said the impish images exploited gang life for profit. Naturally, they then sold better than ever: more than 120 million to date.

The 47-year-old Gonzales, now a father of three children in college, lives in an elegant two-story Spanish-style house overlooking San Francisco Bay, just down the road from the flinty central Richmond neighborhood where he grew up.

"I call this house 'the house that the Homies built,' " he said.

Gonzales has been featured in national magazines, including Rolling Stone, and rubbed shoulders with celebrities. His characters have adorned back-to-school folders, lunchboxes, breath mints and beach towels. The Pasadena Museum of California Art is hosting an exhibit on his Homies, and Nintendo will soon release a Homies video game.

Yet there has been a gnawing feeling of unfulfilled goals and unmet expectations. He wanted to hit the big time with an animated TV show -- something that would really leave his imprint. Oil paintings by Gonzales, often with religious themes, hang on the walls of his home -- a reminder that the artist created the toy maker, not the other way around.

He felt harried by a sense that time was slipping away, sounding curiously like someone stuck in his own plastic bubble. Sometimes, he bared his soul to a priest.

But not just any priest.

Gonzales, one of five boys in a family scraping by in a tough neighborhood, grew up intense, artistic and studious. He asked his parents to take him out of a Roman Catholic school and enroll him in a public school because the latter had an art program.

"I knew David was going to be an artist," said his mother, Agnes.

His brother Robert, younger by a year, hung out with a rougher crowd. He got into fights, burglarized homes with his friends and landed in jail. He dropped out of high school.

The brothers were close, but their paths kept diverging. David enrolled at California College of the Arts in Oakland. He drew a comic strip for Lowrider magazine with characters familiar -- for better or worse -- to just about anyone growing up in Mexican American barrios. Robert moved to Nevada to work in the Job Corps.

One day in 1980, David got an urgent call from a hospital in Reno.

Robert and some friends had scuffled with a group of young men on the side of a desert road. Someone had hopped into a car and gunned it in Robert's direction, pinning him between two cars. His right leg had to be amputated below the knee.

When David and their mother reached the hospital, a priest told her that Robert must have been pulled from the grave by a guardian angel. The priest also remarked that Robert was highly spiritual, a comment that surprised his family.

David went back to college and Robert returned to his parents in Richmond. But even in a wheelchair he was rebellious, blowing insurance money on a lowrider and partying harder than ever. He moved out but soon felt lonely, isolated and miserable. He drank a lot.

One day, Robert returned to Richmond and found David in their parents' garage. If anyone could understand him, Robert figured, it would be David.

Robert wept. He told his brother he wanted to come back home. But he felt ashamed. What Robert really seemed to crave, David thought, was forgiveness -- penance.

"The prodigal son spends his riches and comes home. He rejects his parents' love and direction," David said, recalling what he learned in church and Catholic school. "A lot of people screw up in their lives and leave, and their parents slam the door in their face when they come back."

But David knew that would not happen to Robert, even if his brother had doubts. "Just speak to Mom and Dad," he told him. "They'll understand."

So Robert spoke to them.And they welcomed him back.

In the ensuing years, David made money designing T-shirts and selling them at flea markets and liquor stores. One of his first bestsellers featured Barturo, a barrio version of Bart Simpson who asked: "¿Qué pasa, dude?" Another successful shirt featured the Virgin of Guadalupe.

He took a job as an artist with the Postal Service in Oakland to support his wife and children. He painted a huge mural titled "Journey of a Letter" in a post office lobby in Fremont but eventually quit so he could pursue the T-shirt business full time, refining his barrio creations.

Then a manufacturer called him about making plastic figurines of his comic strip characters.

Meanwhile, after his garage chat with David, Robert patched up things with his parents, enrolled in vocational school, graduated with honors and took a job at a savings and loan. But, as David would feel years later, Robert sensed something was missing in his life. There had to be, he decided, a reason he survived the attack. One day, he called his parents into the living room and announced that, at age 24, he wanted to become a priest.

"He was the last person I expected to be a priest," his mother said. "When you think of a priest, you think quiet and studious. Robert was so rebellious."

In 1989, the year the Homies figurines made their debut, Robert took his religious vows and a new name, Masseo, after one of St. Francis' followers. When Robert was ordained as a Franciscan priest seven years later, David read a speech.

"Knowing Father Masseo . . . I'm sure he'll be dealing with a lot of problems facing young people, such as drugs, gangs and teen pregnancy," David said. "He'll be an important part of a lot of baptisms, first communions and confirmations. Those will be his children."

Soon enough, David would need Masseo for his own talk-in-the garage moment.

He was making lots of money. By most accounts, Homies were the best-selling character brand in vending-machine history. But police and prosecutor complaints were wearing on him. Many stores stopped selling Homies, and lots of people thought he was glorifying gangbangers and profiting from it.

The Homies, with names such as Chuco, Joker and Poco Loco, were just his humorous tribute to a subculture of Latino life, he said. "I'm not going to stop gangs, and I didn't create them," David said, sounding slightly exasperated. "They exist. Just like they exist in the regular Hispanic community, they exist in the Homie world."

David fired off a frustrated e-mail to his brother, saying that he was thinking of going back to the Postal Service. He found it hard, David said, to accept that "God blessed me with all this . . . artistic talent for that job in life."

"God didn't give you this talent for nothing," his brother replied.

The priest also reminded him that even a toy maker had a larger responsibility. Not every Homie had to be vato, a dude in the barrio.

So David kept at it. He created El Paletero (the ice cream vendor), who works to bring his grandchildren from Mexico. And Officer Placa, a rotund, doughnut-loving cop who "worked the barrio for about 20 years and knows all the Homies by name."

Robert suggested he create a figurine of a homeboy in a wheelchair -- a common sight in gang-afflicted neighborhoods. Willy G. became the most popular Homie ever. Soon, David got calls from the Special Olympics and from people who coached youngsters with disabilities.

He also created a homeless man, a young student and an activist. But no character would have a life of its own, and bind the two brothers, so much as El Padrecito ("the little father") -- a Franciscan priest with robes, sandals and stylish sunglasses who "acts like a second father to many of the Homies" and looks a bit like Robert.

The Padrecito turned out to be more than just a figurine. Masseo adopted him as his personal logo and found that the Homie helped him reach young people in need. Robert created El Padrecito's Online Church, where he fields questions, offers upbeat advice, counsels the troubled and sometimes delivers a religious message in rap.

"My life would probably be a lot more boring without the Homies," the priest said.

Robert talks optimistically about his dream of opening a monastery in the town of Guadalupe and reaching ever more people through the cyber-church.

To help Robert along, David sold him the rights to El Padrecito for $1 and gave him permission to use all of the Homies in his religious efforts. And last year David created Santos, a line of figurines of saints and religious figures, such as Pope John Paul II. David also donated $20,000 to his brother's growing cyber-church.

Last year, a young woman from Houston e-mailed El Padrecito to say she was about to earn her college degree. She wanted to thank the father for helping her cope with the execution of a family member on death row years before.

"Crazy as it sounds," she wrote, "if I hadn't written to you so long ago, my life may have turned out differently and I could have been just another statistic, just another face on the welfare line."

Could the priest have reached out to the young woman without El Padrecito? Probably, but the Homies certainly made it easier, Robert said. And the priest brought the artist a measure of redemption as well. "He helped the Homie family stay on the right path," David said. "It was reaffirming for me, and it let me know that I had not gone too bad."

And who would have ever expected that from the creator of Chuco, Joker and Poco Loco?

hector.becerra@latimes.com

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Monday, November 12, 2007

'Dilbert' Becomes What He Mocks - The Boss

NY TIMES: The Tables Turn for Dilbert’s Creator
By BRAD STONE
Published: November 11, 2007
Photo by Thor Swift

THIS is yet another story about a clueless but obtrusive boss — the kind of meddlesome manager you might laugh at in the panels of “Dilbert,” the daily comic strip.

The boss in question operates an upscale restaurant serving California cuisine about an hour’s drive east of San Francisco. The restaurant, Stacey’s at Waterford, is in trouble — two decades of rapid population growth in the region has prompted an influx of national competitors like P. F. Chang’s China Bistro and the Cheesecake Factory.

While the chains have 30-minute waits for tables on weeknights, Stacey’s at Waterford has more jewel-tone microfiber chairs than diners, and is slowly but steadily losing money. To make matters worse, this befuddled manager has never run a restaurant before or even supervised another person’s work in more than 20 years. His greatest qualification for the job, one might say, is 17 years spent satirizing cubicle culture.

In other words, Scott Adams, the “Dilbert” creator and the progenitor of the multimillion-dollar Dilbert empire, is now a pointy-haired boss himself.

Mr. Adams had repeatedly vowed never to let it come to this, refusing for years even to hire a personal assistant to help with Dilbert-related projects. “I did a really good job not being a boss for a long time, and I was happy with that,” he said.

But never say never. A decade ago, flush with Dilbert riches, he and the restaurant veteran Stacey Belkin opened a restaurant called Stacey’s Cafe in downtown Pleasanton, Calif., a bedroom community of San Francisco. Five years later, they opened Stacey’s at Waterford in an unremarkable strip mall nearby, in Dublin, Calif.

Until this summer, Mr. Adams’s involvement consisted of signing checks, writing clever jokes for the menus and leaving big tips for the wait staff after his regular visits. Then a personal battle between Ms. Belkin and a former chef intensified just as the big feed chains began staking their claim on the booming exurbs — thrusting Dilbert’s creator into the middle of a managerial nightmare.

Stacey’s Cafe is smaller, in a better location and is regularly packed. But Stacey’s at Waterford, never profitable to begin with, was suddenly seeing a 10 percent decline in revenue. Ms. Belkin, who was running both restaurants, was overextended.

Mr. Adams, meanwhile, was dispatching his comic-strip responsibilities in just a few hours each morning. So, in July, he agreed to take over day-to-day operations of Stacey’s at Waterford, thus becoming what he has consistently ridiculed: a boss.

“I am highly experienced at making funny comics about managers,” he wrote at the time on his popular blog, dilbertblog.typepad.com. “How hard could it be to transition from mocking idiots to being one?”

Those in his 35-member staff at Stacey’s at Waterford can gladly answer that one. In interviews authorized by their generously self-deprecating boss, employees describe him as trusting and appreciative, full of off-the-wall ideas about how to turn around the business, and dramatically clueless about the harsh realities of the restaurant industry.

“I’ve been in this business 23 years, and I’ve seen a lot of things. He truly has no idea what he’s doing,” said Nathan Gillespie, the new, wise-cracking head chef, after discussing a recent dust-up with Mr. Adams over the grilled salmon filet. (Mr. Gillespie had experimented with what he called small changes to the dish; friends noticed them and told Mr. Adams, who admonished the chef that new dishes need to go through a formal review.)

Mr. Gillespie is still miffed. “He’s a really nice guy, but he relies on his friends’ opinions,” he said, lamenting that his boss’s friends probably think a chain restaurant has good pizza.

Emma Lewis, the lunch manager, describes Mr. Adams as someone who should be shielded from tough decisions the way a crawling infant needs to be protected from household hazards. “We laugh and say we’re not going to let him watch the Food Channel,” she said. “He’ll think he can run a restaurant.”

On the other hand, employees also say he knows his limitations and combines deep trust in them with an instinctive ability to motivate people. They understand that to survive in this age of dominant restaurant chains, they must embrace some of his more unusual ideas and obsessions — but more on those later.

No one is more critical of his management skills than the humorist himself. “I’m quite sure I’ve succumbed to the pigeon theory of management,” he said. “Flying in every so often and dumping on everything.”

“THE most ineffective workers are systematically moved to the place where they can do the least damage: management.”

— Scott Adams

“The Dilbert Principle”

Mr. Adams, who turned 50 in June, has closely cropped, receding hair, spectacles and an unsurprising resemblance to his ink-drawn alter-ego. He is quick to recognize how the cynical cubicle-worker wisdom that propelled “The Dilbert Principle” onto best-seller lists is at work in his role as restaurant boss.

“Certainly I’m an example of the Dilbert Principle,” he said. “I can’t cook. I can’t remember customers’ orders. I can’t do most of the jobs I pay people to do.”

But restaurants, he says, are in his DNA. Before he was born, his family owned and operated a diner called the Blue Moon in Windham, N.Y., in the 1950s. In high school and college, he bused tables at resorts in the Catskills.

“I have no interest in ever stepping onto a sailboat,” he said. “But I walk into a restaurant and all my senses and interests are activated in a single moment.”

Enriched by the 1990s success of Dilbert, he indulged his obsession. After investing in Stacey’s Cafe, he started a company, Scott Adams Food, in 1999. Its first and last product was the Dilberito, a vitamin-packed meatless burrito with a wheat-based meat substitute intended to give workaholics a full day’s worth of nourishment.

The company placed the Dilberito in national supermarkets, but Mr. Adams now complains that rival food makers surreptitiously sent agents into stores to bury it on the back of shelves. He closed the venture in 2003, though he licensed the protein substitute to a food conglomerate and continues to draw small royalties.

Two years later, he curtailed speaking engagements after contracting spasmodic dysphonia, a rare brain disorder that robbed him of his voice for a year. Gradually, he learned tricks like altering his speech patterns or talking in rhymes, which let him regain some speaking ability, though his voice remains halting and wispy.

Today, he is married and a stepfather to two young children. He still awakes at 5 a.m., drawing his strip and producing books like “Stick to Drawing Comics, Monkey Brain!” his most recent collection of entries from his blog. Cartooning now comes easily to Mr. Adams, who gets many ideas from readers via his Web site and draws strips in a few hours each morning on his computer. “I spend less time thinking about the strip than anything else I do,” he said.

So when the numbers on Stacey’s at Waterford started to go south, he had the free time to try to protect his investment. He declines to disclose exactly how much he has already spent or what the restaurant is losing. “The trajectory changed,” he said. “It was moving in the right direction and suddenly started moving rapidly in the wrong direction.”

“We needed a change in strategy.”

“THE purpose of a plan is to disguise the fact that you have no idea what you should be doing.”

— Scott Adams, “Dilbert’s Guide to the Rest of Your Life”

The linchpin of Mr. Adams’s strategy is the 50-person banquet room. “We are three banquets a week away from being on our way to riches and glory,” he said.

After taking over this summer, he hired an events coordinator who began attracting outings from local companies like Oracle, Chevron and Safeway, and introduced bonuses for employees who refer banquet business. He also turned to Dilbert fans for suggestions on how to use the party room, in a posting on his blog titled “Oh Great Blog Brain.”

The Dilbert faithful responded with more than 1,300 comments, mixing interesting ideas (interactive murder-mystery theater) with unlikely mischief (nude volleyball tournaments).

Mr. Adams asked his employees to read the comments and is now slowly trying some of them. The idea for Mommy Mojito Night, for example, originated on the blog and has met with initial enthusiasm from customers.

Along with such ideas, he also started indulging some odd, pointy-haired-boss-like obsessions.

He believes proper light is the primary factor in a restaurant’s success — not food, price, location, location or location. “With the right light, you look better and your date looks better,” he said. “That influences your impression of everything else.”

But when they designed their space, Mr. Adams and Ms. Belkin blundered by creating multiple, large floor-to-ceiling storefront windows that are now proving impossibly expensive to cover.

He always despised the light in the restaurant. So, skeptical employees in tow, he embarked on a surreal hunt for window coverings. One interior decorator after another suggested translucent curtains, or curtains that gather on the sides, or curtains designed to stay rolled up.

“Every meeting was the same conversation,” he said. “They couldn’t understand that the point was to have less light.” Roman shades would have done the trick, but they cost $50,000.

The project was temporarily shelved this fall, but not before it had become a source of comedy among the wait staff. “At this point, I’m sure he wouldn’t care if we put cardboard on windows,” said Kristina Jernigan, the bar manager.

More recently, Mr. Adams began plans to “Dilbertize” the restaurant. He hopes that adding more conspicuous references to his celebrity might create what marketers call a “purple cow” — that singular distinction that gets people talking.

The restaurant recently invited its bar patrons to draw on blank comic book panels; it will post the best efforts to its Web site, www.eatatstaceys.com. Mr. Adams also plans to add a flat-screen television to the bar and to run a constant loop of “Dilbert” strips on it. “For a fairly low investment, it becomes an automatic talking point,” he said.

But no one knows better than Dilbert’s creator that changes from above can stir fear and conspiracy among the troops. Converting the existing bar into a “Dilbar,” as employees called it, became the source of an uncomfortable rumor in the restaurant: that Mr. Adams would soon ask them to wear Dilbert-style white short-sleeved shirts and ties that curled upward.

“It is definitely not going to up our cool factor,” said a bartender, Brian Bundy, who believed that such a change was imminent.

Mr. Adams says he has no plans for such a requirement, and two employees deviously take credit for the starting the rumor. Still, many at the restaurant seem to think it’s a possibility.

“I bet you six months from now, you walk in here and see the ties,” said Ms. Lewis, the lunch manager.

Mr. Adams recognizes how such fears may have taken hold. “If you put that in context of my other bad ideas, it makes sense,” he said.

“LEADERSHIP is a flavor of evil. Obviously no one would need to lead you to do something you wanted to do anyway.”

— Scott Adams, “Dilbert’s Guide to the Rest of Your Life”

Mr. Adams tries to avoid the bad-boss stereotypes he mocks in ”Dilbert” and his best-selling books. Occasionally, he slips up. Trying to coordinate a conversation between a reporter and the dinner manager, Mr. Adams calls the employee on his off day and asks him to come in anyway. He agrees.

“I like to hire people with no life,” Mr. Adams said wickedly after the call.

That demanding streak is tempered by a more benevolent side: Mr. Adams generously tipped the entire staff after his 50th birthday party at the restaurant, though he’d spent part of the evening grousing that the lights were too bright.

In sizing up his own struggles as boss, he said: “The toughest thing is I have trouble being evil. I never punish mistakes, and it’s impossible for me to ask people to work harder. So my defense is to make sure people are happy about being here.”

Some employees, accustomed to hard-edged politics at other restaurants, think that this approach might further disadvantage Stacey’s in such a brutally competitive environment.

“He’s extremely loyal to people — in this business that can be deadly,” said Mr. Gillespie, the chef.

Mr. Adams shrugs off the possibility of failure at Stacey’s and said he has the money and willingness to keep trying new strategies until he finds one that works. “Any combination of things can help us,” he said. “If any of these new ideas take off, we’ll be fine, and if they won’t work, we can walk away from them and try something else.”

He adds that running a restaurant complements his life nicely. “It’s a source of stress, but it adds such richness and happiness to my life,” he says. “The problem with being a cartoonist is that if you don’t have someplace else to go, your life just gets so small.”

At the very least, Scott Adams is getting fresh insight into Dilbert’s pointy-haired boss.

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Sunday, October 14, 2007

A High School Classmate's Business Gets Press

BURLINGTON FREE PRESS: Amy's Granola is a home-baked success
By Gail Callahan, Correspondent October 6, 2007

FERRISBURGH -- In 2001, Amy Mailloux wanted to adopt a healthier diet, so she decided to create a nutritious product. The idea has turned into a growing food business that is quickly becoming a staple in diets.

"I was trying to lose weight, and our family likes granola," said Mailloux, 42. "After trying a number of different recipes, we decided to make our own."

Intrigued by the idea of starting her own company, she created Amy's Granola three years ago. Cooking is done in a commercial convection oven in Mailloux's kitchen. Her husband, Ernie Mailloux, 42, works full time cooking and packaging during the early part of the week. Friday, the boxes are packed up for distribution. Weekends are spent at store demonstrations and festivals. The couple are the only workers.

From start to finish, the process takes 30 minutes. Twenty-five pounds of the granola is made at a time, Mailloux said, noting sales have doubled every year since the company's inception.

The company's goal is simple. Make a product that boasts healthy and nutritious ingredients that are uniquely associated with Vermont, including maple syrup and the family's own honey. The product comes in 4- and 16-oz. bags.

The product is distributed in Vermont and New Hampshire with prices determined by retailers, Amy Mailloux said. The Shelburne Country Store, Shaw's Supermarkets and Harrington's in Shelburne stock the granola.

Deb Mayfield, owner of the Shelburne Country Store, added the granola to the store's shelves one month ago. The product is selling well, she said.

"It's very good," said Mayfield. "It's a quality product and it's locally made."

Harrington's in Shelburne started to offer the granola about two years ago. Its popularity has continued to grow, said manager Cheryl Young. "It's popular and it's good."

During the first year of operation, the business made 200 pounds of granola. This year, the company is expected to prepare 600 pounds monthly.

"I experimented with different recipes. I did research." Mailloux said. "We put an addition onto our house and built a community kitchen."

Locating the business in rural Ferrisburgh, with its convenient access to U.S. 7, makes sense to emphasize the company's homey roots, Mailloux said. A banking executive, she works full time outside the home. A driving force behind the business's startup stemmed from the desire to have one parent at home daily with the couple's four children.

"It's been a real blessing," Mailloux said.

The specialty food business is a unique industry in the state, and one that will continue to provide employment for Mailloux, despite the challenges of the marketplace.

"We're providing a quality product," Mailloux said. "We have time with our kids and we have a business."

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I've tried it, and it's good stuff! You can order some at her website.

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Tuesday, March 06, 2007

Goodbye, Premiere Magazine

VARIETY: Premiere folds
Magazine will continue online
By STEVEN ZEITCHIK
Posted: Mon., Mar. 5, 2007, 4:21pm PT

Hachette Filipacchi pulled the plug on Premiere on Monday, confirming widespread rumors that the embattled movie mag would be shuttered.

Many of the company's editorial staffers will leave the company, including editor-in-chief Peter Herbst.

The April issue, which features Will Ferrell on the cover for "Blades of Glory," will be mag's last. Staffers put the issue to bed about 10 days ago.

Premiere publisher Paul Turcotte could be named to another post within Hachette, though there was no official confirmation of a new role.

Magazine, published 10 times per year, will continue to exist online.

Specifics on how many staffers would migrate, how often content will be refreshed and how many of the mag's regular features will be maintained were undisclosed.

News of its print demise brings to an end what has been something of a media soap opera for the New York-based title, which employs five print editorial staffers in its Hollywood bureau and an estimated couple dozen in its flagship Gotham offices.

Hachette and parent company Lagardere were trying to sell the title earlier this year, but bidders were reportedly thin for the troubled pub. Mag saw its ad pages decline nearly 25% in 2006.

Announcement marks the closure of another pub for Hachette, which also shuttered Elle Girl and startup Shock.

The 20-year-old Premiere had its heyday in the 1990s, when the appetite for insider movie news grew.

Even today, mag publishes a Hollywood power list and industry scuttlebutt under sections like "Yes It's True: News You're Not Supposed to Know," alongside more consumer-friendly stories, such as a list of overrated movies.

But the trade-flavored pieces in which Premiere once specialized have become less relevant as consumer dailies have taken more of an interest in the biz, while sites like Defamer have proliferated to satisfy the demand for near-instantaneous industry gossip.

Premiere also faced the challenge of being a long-lead mag in a realm where news moves increasingly quickly. For example, Oscar predictions made months in advance now run the risk of becoming stale by the time the print edition hits newsstands.

And while interest in celeb news is by many indications stronger than ever, sites like TMZ and PerezHilton have proved more adept at breaking and keeping up with news.

Hachette's latest strategy is to move in a newsier direction, offering more timely items on Premiere.com and mobile platforms -- routes that would also be less costly.

"This step is consistent with our strategy to examine our portfolio of brands to determine the best business plan for each, based on its category and the marketplace," Hachette prexy-CEO Jack Kliger said in a statement.

Company will continue publishing international editions in territories such as France, where the mag started in the 1970s.

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I'm sorry to see Premiere go - I bought the first issue when it came out (The "Dragnet" film was on the cover), and subscribed for several years. I have to say, though, I think the magazine was best in its first incarnation - as a magazine for film buffs. Later, it evolved into an industry magazine, and I got disenchanted with its "power issues" - listing the 100 most powerful people in the industry, and so forth. These days, I sometimes read Sight And Sound - it's a pretty expensive subscription and a challenging read, but much more rewarding.

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Monday, February 26, 2007

Oscar Night: The Departed Leaves The Podium With Gold

NY TIMES: ‘The Departed’ Wins Best Picture, Scorsese Best Director
By DAVID M. HALBFINGER and SHARON WAXMAN
Published: February 26, 2007

HOLLYWOOD, Feb. 25 —Twenty-six years and seven snubs after his first Oscar nomination, for “Raging Bull,” Martin Scorsese finally felt the warm embrace of the Academy of Motion Picture Arts and Sciences on Sunday as he was named best director and his murderous mob thriller “The Departed” was named the best picture of 2006.

“Could you double-check the envelope?” Mr. Scorsese quipped after silencing a raucous standing ovation of whistling, whooping academy members.

“I’m so moved,” he said, accepting the directing prize. “So many people over the years have been wishing this for me. Strangers — I go into doctors’ offices, elevators, I go for an X-ray — they say, ‘You should win one.’ ”

Forest Whitaker won best actor for his performance as the cunning, seductive and savage Idi Amin in “The Last King of Scotland.”

“Receiving this honor tells me that it’s possible,” Mr. Whitaker said. “It is possible, for a kid from East Texas, raised in South Central L.A., and Carson, who believes in dreams, who believes them in his heart, to touch them and have them happen.”

Helen Mirren took best actress for her performance as a traditional monarch in a modern world in “The Queen.”

“For 50 years or more, Elizabeth Windsor has maintained her dignity, her sense of duty and her hairstyle,” Ms. Mirren said. “I salute her courage and her consistency, and I thank her, for if it wasn’t for her, I most certainly would not be here.”

Graham King, the only of three credited producers permitted to accept the best-picture award for “The Departed,” said, “To be standing here where Martin Scorsese won his Oscar is such a joy.” “Pan’s Labyrinth,” Guillermo Del Toro’s magical-realist fantasy set in 1944 Fascist Spain, received Oscars for cinematography, art direction and makeup at the 79th Academy Awards ceremony, but fell short of its ultimate prize, best foreign-language film, which went to “The Lives of Others,” from Germany.

Jennifer Hudson, the “American Idol” reject-turned-star of “Dreamgirls,” was named best supporting actress, giving two of the four acting awards to African-Americans. And Alan Arkin, the cranky, heroin-snorting grandfather in the bittersweet family comedy “Little Miss Sunshine,” won best supporting actor.

“Little Miss Sunshine” also won for its original screenplay by Michael Arndt, a former assistant to Matthew Broderick who had to wait seven years for his script to be produced. “When I was a kid my family drove 500 miles in a van with a broken clutch,” he said, explaining the source of his inspiration. “It ended up being one of the funnest things we did together.”

On a night in which several top awards came as no surprise, “An Inconvenient Truth,” the documentary featuring Al Gore on global warming, won best documentary feature.

“I made this movie for my children,” said the director, Davis Guggenheim, his arm on Mr. Gore’s shoulder. “We were moved to act by this man.”

Mr. Gore took his moment in the worldwide spotlight to underline the film’s message. “My fellow Americans, people all over the world, we need to solve the climate crisis,” he said, adding that the “will to act” was a renewable resource. “Let’s renew it,” he said.

That film also won best original song, for “I Need to Wake Up,” by Melissa Etheridge, upsetting “Dreamgirls,” which had three songs in contention. Holding her Oscar aloft backstage, Ms. Etheridge quipped that it would be “the only naked man who will ever be in my bedroom.”

In a twist, “The Lives of Others,” which examined the Orwellian police state that was East Germany, won in something of an upset. The German director, Florian Henckel von Donnersmarck, thanked Gov. Arnold Schwarzenegger of California “for teaching me that the words ‘I can’t’ should be stricken from my vocabulary.”

The awards for Mr. Del Toro’s movie came on a night in which his and two other films by Mexican directors were up for a total of 16 honors. One of them, “Babel,” won for its original score by Gustavo Santaolalla, who also won last year for “Brokeback Mountain.”

“Happy Feet” was named the year’s best animated feature.

Accepting for best supporting actor, Mr. Arkin said that “Little Miss Sunshine” was about “innocence, growth and connection.” His voice cracking, he praised his fellow actors, saying that acting was a “team sport.” He added, “I can’t work at all unless I feel the spirit of unity around me.”

William Monahan won best adapted screenplay for “The Departed,” his transplantation of the movie “Infernal Affairs” from Hong Kong to South Boston.

An Oscar also went to Thelma Schoonmaker, the longtime editor to Mr. Scorsese. She saluted Mr. Scorsese for being “tumultuous, passionate, funny” as a collaborator. “It’s like being in the best film school in the world,” she said.

“Dreamgirls,” nominated for eight awards, the most of any film, also won for sound mixing. But Mel Gibson’s “Apocalypto,” whose three nominations were caught up in the tempest caused by the director’s drunken, anti-Semitic rant last summer, was shut out.

Ellen DeGeneres made her first appearance as the host of the movie industry’s annual celebration of itself, on a night expected to have its share of pregnant moments. Three filmmaking titans — Steven Spielberg, George Lucas and Francis Ford Coppola — presentedthe award for best director.

Ms. DeGeneres said it had been a lifelong dream of hers to be host for the Oscars, rather than to win one. “Let that be a lesson to you kids out there: Aim lower,” she said, sounding a theme for the evening’s opening, which was designed to honor the many nominees, 177 in all, rather than focusing on the winners.

Ms. DeGeneres repeatedly ventured into the audience, at one point getting Mr. Spielberg to take a picture of her with Clint Eastwood, “for MySpace.”

And in a choice full of irony for industry insiders, Tom Cruise, who was thrown off the Paramount lot last summer by Viacom’s chairman, Sumner M. Redstone, gave the Jean Hersholt Humanitarian Award to Sherry Lansing, the former Paramount chairwoman who retired during a shake-up by Mr. Redstone two years earlier.

Backstage, Ms. Lansing said she had not known that Mr. Cruise was going to give her the award. “I saw him at an Oscar party a few days before, and he was sort of cold to me,” she said. Onstage, she said, he had whispered in her ear: “This is an honor. I really wanted to do this, you know how much I love you.” Ms. Lansing said she believed Mr. Cruise, who had a rough year before taking over management of United Artists, would be back to pick up an Oscar for directing or producing within five years.

Ennio Morricone, the Italian composer, received an honorary Oscar from Mr. Eastwood, who starred in the spaghetti westerns for which Mr. Morricone provided the unmistakable music.

The program began with a bouncy montage, directed by Errol Morris, of interview snippets with nominees reciting, among other things, the number of times they had come close to winning an Oscar. “Zilch,” said Peter O’Toole, of the number of times he had won.

Will Ferrell and Jack Black, leading members of Hollywood’s comedy rat pack, did a song-and-dance number bemoaning the paucity of comedic talent among the Oscar nominees. “I guess you don’t like laughter,” Mr. Ferrell sang. “A comedian at the Oscars is the saddest, bitterest, alcoholic clown.”

John C. Reilly, a past Oscar nominee, then stood up in the audience to remind them — in song — that he had been in both “Boogie and Talladega Nights.” All three then crooned that they hoped to go home with Helen Mirren, a best-actress nominee, who is in her 60s.

Breaking with tradition, the show’s producer, Laura Ziskin, best known for the “Spider-Man” franchise, rejiggered the lineup of awards to leave the marquee categories — best actor, actress, director and picture — for the end of the night. The first half of the show was front-loaded with technical and craft categories: art direction, makeup, sound editing and mixing, costume design and visual effects.

“Pirates of the Caribbean: Dead Man’s Chest” won for visual effects; “Letters From Iwo Jima” took sound editing; “Marie Antoinette” picked up costume design.

The director Ari Sandel won best live-action short film for “West Bank Story,” a spoof on “West Side Story” with feuding Palestinian and Israeli falafel stands. “This is a movie about peace and about hope,” Mr. Sandel said. “To get this award shows that there are so many out there who also support that notion.”

The award for animated short went to “The Danish Poet,” written and directed by Torill Kove.

Mr. Gore and Leonardo DiCaprio, a nominee for best actor (“Blood Diamond”), announced in the middle of the telecast that the program had offset its carbon emissions by buying energy credits. “This show has officially gone green,” Mr. DiCaprio said.

The Oscars adopted other conservation measures this year, such as using recycled paper for the Oscar ballots. “We have a long way to go, but all of us, in our lives, can do something to make a difference,” Mr. Gore said.

But Mr. Gore did not throw his hat in the ring, as the producers of his film, among others in Hollywood, had hoped he might. Asked if he had a major announcement to make, Mr. Gore said: “With a billion people watching, it’s as good a time as any. So my fellow Americans, I’m going to take this opportunity, here and now, to formally announce” — and the Oscars orchestra, right on cue, drowned him out as if he had droned on a second too long.

The Academy Awards capped a season in which the conventional wisdom has often been wrong, and actual wisdom has been in short supply. The big question before the nominations was how many Oscars “Dreamgirls” might win, and what film could compete with it for best picture. The only question after the nominations was, What happened to “Dreamgirls”?

Many theories were advanced, including misguided marketing and an abundance of hype, but the film’s director, Bill Condon, cut to the chase: “Maybe the Academy saw five films they liked better.” Whatever the reason, the film’s elimination left the race wide open to an array of films that took very different routes to the nomination.

“The Departed” rode a wave of box-office success and a plan to keep Oscar hype on the down-low, partly because many in the industry felt it was time to recognize the director Martin Scorsese’s lifetime of excellence. “Little Miss Sunshine,” a new take on the family road-trip movie, which won four Independent Spirit Awards on Saturday, was a film that no one in Hollywood seemed to want to make, but it connected with audiences to the tune of more than $94 million in worldwide box-office receipts. “Babel,” by contrast, left United States audiences cold while doing good business abroad, but connected with critics and was rewarded for a global, ambitious story by winning best dramatic feature at the Golden Globes.

“The Queen,” a small movie that managed to do everything right, managed to ride one of the year’s more remarkable performances — Ms. Mirren as a traditional monarch in a very modern world — to broad critical recognition. And after “Flags of Our Fathers,” another would-be Oscar hopeful, met with indifference, Mr. Eastwood and his studio, Warner Brothers, decided to release the film’s twin, “Letters From Iwo Jima,” before year’s end — and were rewarded with a best-picture nomination.

This appeared to be the most ethnically and linguistically diverse batch of film nominees yet, appropriate enough given that Hollywood’s foreign revenues now eclipse the domestic take by a significant margin. The Oscar slate included several films shot largely in languages other than English, most notably Mr. Eastwood’s “Letters From Iwo Jima,” in Japanese, and Mr. Gibson’s “Apocalypto,” in Maya dialects.

“Babel,” from the Mexican director Alejandro González Iñárritu, spanned three continents and five languages — Japanese, Berber, Spanish, English and sign — and two of its actresses, Rinko Kikuchi of Japan and Adriana Barraza of Mexico, received nominations. (Three films by Mexican directors were up for a total of 16 honors.)

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Sunday, February 25, 2007

Oscar And The Film Business

LA TIMES: Oscar isn't Hollywood's face
The academy honors the Helen Mirrens, but the industry is really all about the Adam Sandlers.
By Joe Queenan - February 25, 2007

OF ALL THE creatures on the face of the Earth, only humans would dream of nominating Ryan Gosling for a best actor award for his exemplary work in a film almost no one has seen.

Actually, the only humans who would make such an extravagant gesture are that tiny group of mysterious voters who make up the Academy of Motion Picture Arts and Sciences. Year in, year out, this largely unidentified group of voters — many of them quite advanced in years, some presumably dead — persist in honoring actors, actresses, directors and screenwriters for their superb work in films that are widely ignored and have almost nothing to do with the industry's raison d'etre.

Let's face it. The movie industry is not about "Half Nelson," Rinko Kikuchi, "Pan's Labyrinth," Jackie Earle Haley, "Little Children," Abigail Breslin or Ryan Gosling. The movie industry is about Will Ferrell, "King Kong," Owen Wilson, "Meet the Fockers XV" and, to a greater or lesser extent, all films that either are or resemble "Nacho Libre." Ryan Gosling and Rinko Kikuchi have nothing to do with it.

To bring into focus the extraordinary iconoclasm the academy exhibits each year in its determination to reward films that Americans do not care about, actors we usually ignore and directors we don't even like, one need only consider the very different mentality that prevails at the Grammys.

Two weeks ago, the music industry, as usual, went out of its way to honor insanely famous artists who sell lots of records. The music industry does not dole out its highest honors to gallant but obscure recordings made by gallant but obscure artists; it gives its awards to people such as Madonna. The music industry revels in the fact that it is in the revenue-generating sector; it is in the Justin Timberlake, Ludacris, John Mayer, Christina Aguilera and Red Hot Chili Peppers business. It is in the Mary J. Blige, Gnarls Barkley, John Legend and Dixie Chicks business.

It is not in the Kristin Hersh, Richard Thompson or Pierre-LaurentAimard-plays-Anton-Webern-pianotranscriptions business. True, it does give a limited number of awards to artists such as Chick Corea and Doc Watson, whose records do not sell and of whose existence the public is generally unaware. But it does not give major awards to these artists. If there is a music industry equivalent of Abigail Breslin (who played Olive in "Little Miss Sunshine"), then sorry, no Grammy for Parallel Abigail.

The academy has a different approach. The academy does not want to be confused with its craven, vulgar cousins in the music industry. Even though it is well aware that choosing a middling success such as "Crash" as best picture over any number of "Spider-Mans" is the equivalent of Major League Baseball giving the Cy Young Award to a pitcher who went 11-8, or its MVP award to a leftfielder who batted .268 with 13 home runs and 78 RBIs, the academy loves to honor films that make people in the movie business feel better about themselves.

And why not? No one really wants to think that they started out in the "Citizen Kane" line of trade and ended up working for Talladega Nights Inc. No one is really comfortable with the idea that the face of the industry is Adam Sandler and Ashton Kutcher rather than Daniel Day-Lewis and Ralph Fiennes. Nobody wants to go home after a hard day making Brittany Murphy movies when it would be so much more fulfilling to pretend that work was all about Helen Mirren, Judi Dench and Cate Blanchett.

This is what makes Oscar night so special. It's not so much a case of the industry presenting itself the way it would like to be seen; it's the night when the industry gets tanked up and forgets what it does for a living.

Is this a bad thing? I guess not. Hypocrisy and self-delusion are two of America's most revered traditions, without which none of us could function. More to the point, the academy's self-delusion reaps vast benefits for us all.

The current cover of Vanity Fair — the Hollywood issue — is graced by Ben Stiller, Chris Rock, Owen Wilson and Jack Black. Even for a magazine that once put the dopey, synthetic, rich-boy-discovers-poor-black-people Anderson Cooper on its cover, this is a sad moment.

If this motley crew is the best Hollywood can offer, then the age of radiant movie stars is over. For whatever else this quartet of glamour-challenged chaps may be, they are definitely not matinee idols.

Looking on the bright side, if Oscar night were run like the Grammys, or Major League Baseball, or any of the other organizations that love to hand out awards to people who don't really need them, then the movie stars stepping up to receive their fulsome homage tonight would be Ben Stiller, Chris Rock, Owen Wilson and Jack Black, with Adam Sandler not far behind. This would be a very bad thing.

Personally, I think that any organization that stubbornly refuses to honor Jack Black, even though he will earn more for his worst movie than Helen Mirren will earn in her entire career, is to be congratulated. And so, my hat is off to the academy. The Nobel Prize in literature never goes to a Stephen King or a Danielle Steel; the Oscar for best actor should never go to a Chris Rock or a Jack Black. Leave them on the cover of Vanity Fair where they belong.

Joe Queenan writes frequently for Barron's, the New York Times Book Review and the Guardian.

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Saturday, February 24, 2007

Apple, Cisco Come To Terms

NY TIMES: Settlement Lets Apple Use ‘iPhone’
By BRAD STONE
Published: February 22, 2007

SAN FRANCISCO, Feb. 21 — Apple and Cisco Systems have decided that a name is not worth fighting over.

On Wednesday, the companies settled their dispute over the iPhone trademark. Six weeks ago, Cisco filed a lawsuit in federal court in San Francisco over Apple’s planned use of the name for its much anticipated multimedia device, which combines the features of a mobile phone, an iPod and a BlackBerry.

Cisco claimed that it had owned the trademark since 2000 and was using it for a line of Internet-connected phones.

Wednesday night, in a short, ambiguously worded statement, the companies said they would dismiss all legal action against each other regarding the trademark and that Apple could use the name for its device, which it plans to start selling in June.

In addition, the companies said they would explore ways to make their identically named iPhone products work together “in the areas of security and consumer and enterprise communication.”

Representatives for Apple and Cisco said other terms of the deal would remain confidential. It is not known if Apple made a cash payment to Cisco, but intellectual property lawyers say some sort of payment is typical in these cases. It is also unclear whether Cisco had sold Apple the name iPhone outright and had then secured permission to use it itself.

But the deal appears to give a partial victory to both sides. Apple can begin selling its phone with the name that its strong-willed chief executive, Steven P. Jobs, seemed to prefer.

Cisco can also continue to use the name, and with the promise of interoperability, it might have some of the hype and magic surrounding Apple’s products rub off on its own less prominent offerings.

Hostilities broke out between the two companies last month, when Mr. Jobs announced the music phone at the annual Macworld convention in San Francisco.

Cisco, the networking company based in San Jose, Calif., was using the name to sell phones that can plug into a PC or connect with a wireless hot spot and make free calls over the Internet.

The two companies negotiated intensely over the trademark in early January. Executives had planned to make announcements concurrently at the Consumer Electronics Show in Las Vegas and at Macworld, proclaiming the links between their iPhone products.

After talks broke down and Mr. Jobs announced his iPhone anyway, Cisco filed a lawsuit, saying that Apple’s use of the iPhone name constituted a “willful and malicious” violation of Cisco’s intellectual property. In response, Apple called the lawsuit “silly” and noted publicly that several companies besides Cisco were using the iPhone name.

Cisco’s lawsuit described covert Apple attempts to obtain the rights to the iPhone name. In September 2006, a corporation calling itself Ocean Telecom Services filed an application for the trademark based on earlier filings in Trinidad and Tobago. In its complaint, Cisco asserted that Apple was behind the efforts.

But while they flung legal accusations at each other, both companies faced significant pressure to settle. Apple’s iPhone will be released in June and will be available to customers of the AT&T wireless network, which was formerly known as Cingular Wireless. If Apple had failed to settle with Cisco and subsequently lost the battle in court, it could have been liable for financial penalties for each unit that it sold.

But Cisco also faced a strong incentive to reach a deal.

“Cisco had to provide access to the trademark to Apple if it wanted to achieve the highest value for the name. There was no potential second buyer who would have equaled Apple’s desire for the iPhone mark,” said Alan Fisch, an intellectual-property lawyer at Kaye Scholer in Washington.

He added that Cisco also faced the reality that consumers associated the name more with Apple.

“The iPhone name has been informally synonymous with an anticipated Apple phone for years prior to the product’s formal announcement,” he said.

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Thursday, February 08, 2007

This One's For Anita

NY TIMES: A Story in Every Box
By ALEX KUCZYNSKI
Published: February 8, 2007

TIFFANY & Company has long enjoyed a gilded reputation, conferred by its association with the happy things in life: engagements, weddings, babies, trophies, retirements, anniversaries and romantic Hollywood movies. Most notable among the last category is “Breakfast at Tiffany’s,” the 1961 version of the 1958 Truman Capote novella. In the movie, Holly Golightly and the writer find the cat and decide to get married and live happily ever after.

But in the book, the cat is lost forever and Ms. Golightly ends up at some unsavory, unmentionable station in life. The ending is ambiguous, but I always thought we were supposed to think she becomes a hooker.

Capote hated the movie. In his version, life isn’t accompanied by a soppy Henry Mancini soundtrack but by a vacuum of sorrow, failure and self-deceit. Critical Shopper has long made a study of whether Tiffany, the store, and Tiffany, the embedded romantic image in the mind of the consumer, might be just as different.

Over the last decade, Tiffany has been the victim of its own success, first building up its inexpensive silver lines, like the Return to Tiffany bracelets and necklaces, to attract younger customers, then raising the prices when the store wound up attracting too many younger customers, devaluing the Tiffany name. (Maybe it was the scene in “Legally Blonde” with Elle Woods wearing nothing but a bikini and her Tiffany heart jewelry that pushed the store over the edge.)

Facing competition from high-end jewelers — not to mention the luxury designers getting into the jewelry business — Tiffany underwent something of a face-lift, both physical and ideological. The new message is bring on the bling.

Tiffany operates in more than 100 locations in 16 countries, but the celebrated Art Deco flagship is best for observing the human animal in its ritual courtship dance. On a recent weekend afternoon, the second floor was crowded with couples cautiously circling the counters of engagement rings. To me, they all looked too young to be getting married; some of the men were wearing varsity letter jackets.

I credit the store for its gentle displays here: the most inexpensive rings — prices start at $1,090 for a ring with a round .18 carat diamond — seem to be presented in the clearest, brightest lights. This is not intended to make these rings seem bigger; rather, it makes them appear to be just as important as the icebergs down the counter — say, the round 10.5 carat diamond ring that sells for $1.12 million.

The face-lift has entailed refreshing the wood paneling and adding some modern touches, like a wide staircase between the third and fourth floors, over which hangs a brushed-steel and crystal chandelier. Some new jewelry lines are now offered, like the pieces by Frank Gehry, hired by Tiffany in 2005, but those I found — squiggly bracelets, metal mesh bracelets and earrings studded randomly with pearls — would appeal to an artier crowd than Tiffany attracts.

There is some inexpensive silver jewelry, like that at the Charm Bar on the third floor. But the charms for the choose-it-yourself bracelets are limited to letters and Tiffany Roman numerals, which may explain why the place was deserted. The only other charm bracelets are prefabricated versions with dogs and golf clubs. It seems pointless to offer charm bracelets with such a tantalizing lack of variety.

On the third floor, I tried on some Paloma Picasso pearl earrings ($1,250) and a Cruella DeVille-esque pearl and black onyx necklace (also $1,250) and engaged in a lengthy conversation with the saleswoman about feeling empowered in one’s 40s. (Translation: you can wear pearls and not necessarily look like the elder Barbara Bush.)

The staff members are, as you would expect, unremittingly polite. On the fourth floor, I watched a young woman with a rumpled Bloomingdale’s bag pore over silver key chains for half an hour with a patient clerk. “No, he doesn’t have this many keys,” she said, passing over one, her chin in her hand. “We could engrave this one,” the clerk offered, showing her another.

While Tiffany has sold millions of diamond engagement rings, many of its customers would pay a surcharge for the blue box because it represents trust and quality. What most people want when they celebrate their marriage is the manufacture of perfect memories, and for them the blue box is as essential a part of the wedding tradition as a white veil. In the marriages I’ve observed that began with a blue box, there is a kind of assurance that buying your ring at Tiffany inures you from bad marital juju, as if the union were protected by the Good Housekeeping seal of approval. But if things don’t work out, those kinds of expectations in marriage make for the bitterest of ends.

Over the last 10 years, I’ve visited Tiffany possibly a dozen times and put the Web site through its paces. I registered there when I got married, and on that count, it fared beautifully. When my china pattern was to be discontinued, the company sent me three letters asking if I wanted to buy more before it was no longer available. But the best test, I thought, would be to see if an earring I left there for repair in 2002 was still at the store.

So much time had passed that Tiffany’s customer service department has moved to another floor. It had been so long that people I know have met, gotten engaged (with that little blue box), married, had a child and already divorced. It had been so long that I had lost all the paperwork stating my ownership of the earring.

On a Sunday afternoon last month, I sat waiting in the confessional-like carrels of the service department, expecting to be told that the small Schlumberger turquoise earring (a gift) had long been remanded to the bad, anonymous place where all unclaimed repaired earrings go. But after five minutes of gentle tapping at her computer, the attendant summoned me. It had been sent to an outlying warehouse, but they had it.

“This time, why don’t we send it to you?” she said. “I think we’d better not wait for you to come pick it up again.” And so they did, free of charge. A happy movie ending, to be sure.

Now, if only I can find the other earring.

*************************************************************************************
  • Tiffany & Company 727 Fifth Avenue (57th Street); (212) 755-8000
  • ATMOSPHERE: Depending on the day, either bank-vault quiet or carnival-esque. Between 5 p.m. and closing on Valentine’s Day is “a real hoot,” one clerk said. “The men come in sweating and screaming, ‘Do you have anything heart-shaped?’ ”
  • SERVICE: Reliable and gentle.
  • PRICES: A silver chain for a Tiffany charm, $50; 64-carat pear-shaped diamond earrings, $6.5 million.
  • OVERHEARD CONVERSATION: “Honey, I love you a lot, but not three-quarters of a million dollars’ worth.”

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Wednesday, February 07, 2007

Amazon Joins The Downloading Fray

VARIETY: Amazon to challenge Wal-Mart
Giants face off in vid biz
By BEN FRITZ
Posted: Tue., Feb. 6, 2007, 9:55am PT

The video download biz is getting a big shakeup courtesy of two of the country's biggest DVD retailers.

With Wal-Mart -- which sells about 40% of the country's DVDs -- entering the arena Tuesday, existing players face a monster competitor whose purchasing powers in homevideo could give it a leg up in the digital space, where insiders say it will be able to wrangle similar terms.

But Amazon.com, which launched its videostore in October, is trying to stay one step ahead of its new competitor. The e-tailer will today start a test of a partnership with TiVo that will allow users of the digital video recorder to watch downloaded movies and series on their TVs.

Since it's the first physical retailer to start selling digital downloads, Wal-Mart should gain an advantage from its sheer size (other physical DVD retailers have complained about its leverage for years).

Online competitors may face a disadvantage. Most notably, several sources confirmed that in order to sign its recent deal with Paramount, Apple had to agree to pay more for digital copies of library titles than bricks-and-mortar retailers do. That presents a very lucrative option to studios, which can get more money from Apple without having to manufacture and ship a DVD.

That's why at least some of the other majors, along with indies like MGM and Lionsgate that have deep catalogs, are expected to follow Par's lead and start selling library titles on iTunes soon.

Apple still wants better terms for new releases than retailers get for DVDs, however, which is why most studios are reluctant to put new movies on iTunes. Only Disney, in which Apple CEO Steve Jobs is the largest investor, has agreed.

Though Amazon is ahead for the moment, Wal-Mart is looking at various digital solutions for moving downloads to the TV and also has plans to launch the capability to burn DVDs later this year, as do other e-tailers. But for now, it's counting on its breadth of content, retail promotions and the quality of its service to help it stand out.

Wal-Mart also has the key advantage, thanks to its existing homevideo relationships, that it's the only vidstore to offer download-to-own movies from every major studio.

The company already has an online musicstore, which has done very poorly against iTunes. Wal-Mart is not only aiming to do better with video but to make it part of a broadly integrated digital and retail solution.

"Over time, it will evolve into a multiformat video experience in stores and online where the consumer can discover content and get it in whatever format they wish, whether download, DVD or a Blu-ray or HD DVD disc," said Kevin Swint, head of digital media for Wal-Mart.com.

Company is considering ways to highlight movie download availability in stores. It plans to repeat a promotion it offered earlier this year in which consumers who bought the "Superman Returns" DVD got to download the movie for just a few dollars. It is also offering very competitive prices. While all library titles on iTunes cost $9.99, Wal-Mart has some for as cheap as $7.50. Most new releases are priced at $14.88, 11¢ cheaper than the standard price on iTunes.

Downloads work on Windows PCs and portable devices but not on iPods.

For its part, Amazon will let Unbox buyers move their TV and movie downloads to their TiVo with a single click for the same price.

"It's no secret that people like to watch video, especially movies on their TV, and we're very happy to now give them an option," said Roy Price, product manager for Unbox.

Microsoft is currently the only moviestore to give users a simple way to watch downloads on their TV, via the Xbox 360, and has seen higher-than-expected demand. Amazon is hoping that its Unbox service, which hasn't gotten much traction since launching in October, will get a leg up by giving TiVo owners a simple way to watch downloads on the TV.

Service will only work with owners of TiVo series 2 or 3 standalone boxes, a relatively small market of fewer than 1.6 million consumers as of Oct. 31.

The inability to watch downloads on a TV is the No. 1 complaint of most consumers, industryites say. Amazon, which has a much wider selection of movies and TV shows than Microsoft's Xbox Live, will surely tout its early solution to that problem.

Deal could be more beneficial for TiVo, which is looking for added features to offer buyers of its standalone DVR, on which company makes significantly more money than through partnerships such as one soon to launch with Comcast. Though users won't be able to access Unbox directly through their TiVos yet, those who download a movie or TV show at Amazon.com will see it automatically show up on their TiVo boxes along with recorded TV shows.

TiVo previously had a deal to test Internet video-on-demand with Netflix, but that partnership was eventually canceled. Netflix now lets its subscribers stream movies on their computer but not download them.

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Wal-Mart Moves Into Video Downloads

NY TIMES: Wal - Mart Launches Video Download Service
By REUTERS
Published: February 7, 2007
Filed at 3:01 a.m. ET

LOS ANGELES (Hollywood Reporter) - Wal-Mart Stores Inc., already the nation's top seller of DVDs, said Tuesday that it has become the first major retailer to offer a digital download service that will feature movies from all the major studios.

The product, in beta, allows consumers to choose from more than 3,000 movie and television titles and download them to personal computers usually at a cost less than that of iTunes, the Apple Inc. online store that began selling video downloads more than a year ago.

The business of delivering popular video content on-demand over the Internet is a small but growing one, and becoming increasingly competitive and complicated, with such players as Netflix, CinemaNow and Movielink offering titles with differing rules attached, some for rent and some for sale.

The business got even more competitive Tuesday when Amazon.com said its service, Unbox, has teamed with TiVo Inc. so that downloaded movies can be viewed on TV screens.

According to PricewaterhouseCoopers, the Internet video download business is expected to be worth $3.7 billion in annual revenue in 2010, when DVD rentals and sales as a business will amount to about $29.5 billion.

While Amazon.com launched Unbox without movies from the Walt Disney Co., and iTunes offers only movies from Disney and Paramount, Wal-Mart boasts Disney and Pixar, Paramount, 20th Century Fox, Sony, Universal, Warner Bros. Pictures, Lionsgate and MGM, as well as TV shows from Fox, Fox Reality, 20th Century Fox Television Classics, Comedy Central, VH1, MTV, Nickelodeon, the CW, Warner Bros. and more. Wal-Mart initially will not offer shows from ABC, CBS or NBC.

The company is selling TV episodes for $1.96 and movies, depending on how new they are, at price points ranging from $7.50 to $19.88.

Wal-Mart also said it will bundle some titles, allowing consumers to buy the ``Superman Returns'' DVD and the digital download for a ``small additional price.''

According to estimates, Wal-Mart sells about 40 percent of all DVDs in the country. The company reportedly objected when iTunes began selling movie downloads, worried it might cut into its own DVD business.

Disney CEO Robert Iger disputed such reports, and Wal-Mart said Tuesday that many of its movie downloads will be made available the same day the DVD is released. Oscar-nominated ''The Departed'' and ``Babel'' will be ready for download February 13 and February 20, respectively.

``With thousands of movie and TV titles now available for download, coupled with the strength of our successful physical DVD business, this is an unprecedented offering of video content, features and capabilities currently unmatched in the market,'' said Kevin Swint, Wal-Mart divisional merchandise manager for digital media.

Reuters/Hollywood Reporter

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Monday, February 05, 2007

The Long And Litigious Road

VARIETY: Apple, Beatles resolve dispute
Trademark battle comes to an end
By PHIL GALLO
Posted: Mon., Feb. 5, 2007, 9:00am PT

After nearly two decades of discord, the Beatles and Apple computers are singing the same song: "We Can Work It Out."

Apple Corps, the record company the Beatles founded in 1968, and Apple, the Cupertino computer company, reached an accord that gives the latter ownership of the name and the apple logo.

Apple will license certain trademarks back to Apple Corps. Financial terms were not disclosed.

Deal naturally opens the door to make Beatles music -- the holy grail of pop -- available via Apple's online iTunes store. While members of the Beatles have OK'd the sale of solo work, the Beatles catalog has remained offline.

Apple CEO Steve Jobs said in a statement, "It has been painful being at odds with (the Beatles) over these trademarks." The resolution, he said, "should remove the potential of further disagreements."

Jobs had stirred the pot regarding a resolution to the conflict when he used the Beatles' "Sgt. Pepper" album cover and played "Lovely Rita" during the launch of the iPhone.

Now, Beatles fans worldwide may well read further into Jobs statement "Let the downloading begin."

But the Fab Four decisionmakers -- Paul McCartney; Ringo Starr; Yoko Ono, the widow of John Lennon; and the estate of George Harrison -- have been notoriously gun-shy about embracing new technology.

When compact discs were introduced to replace vinyl records, the Beatles were slow to come to the table. EMI, which releases the Beatles recordings, issued the British editions of the albums in blocks beginning in 1987, standardizing the catalog. In 2004, Capitol issued the first four American releases as a box set; last year, it issued the second block of four.

Since the band's breakup in 1970, there have been only about 20 Beatles releases of their recordings from the 1960s; by contrast, RCA and BMG have released more than 200 Elvis Presley packages since his death in 1977.

Evidence of the Beatles' extraordinary power at retail: In 2000, the hits compilation 'Beatles 1" performed so well that it was credited with salvaging the year from disaster.

Agreement replaces a 1991 pact between the two companies and puts an end to the trademark lawsuit Apple Corps filed against Apple in 2003 in London.

The two have had a tenuous relationship over the use of the apple logo in relationship to music commerce.

Apple Corps filed the suit, claiming the Apple iTunes store violated the 1991 deal. A court in London ruled in favor of Apple in May, and Apple Corps' appeal was scheduled to be heard later this month.

During the trial, Apple Corps manager Neil Aspinall disclosed that the catalog was being remastered.

In a statement issued Monday, he said, "The years ahead are going to be very exciting times for us. We ... look forward to many years of peaceful cooperation with (Apple)."

Apple's stock price closed Monday at $83.80, down 81¢.

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Friday, February 02, 2007

This Summer, The End Of The Harry Potter Series

NY TIMES: Harry Potter’s Final Act Is Set for July 21
By MOTOKO RICH and JULIE BOSMAN
Published: February 1, 2007

J. K. Rowling, the author of the record-setting Harry Potter series, announced today that the seventh — and last — book in the series, “Harry Potter and the Deathly Hallows,” will be published on July 21.

That will be just eight days after the release of the film version of the fifth volume in the series, “Harry Potter and the Order of the Phoenix,” portending a huge summer for fans of the young wizard.

Millions of fans around the world are fiercely anticipating this latest installment. But the end of the series, in which Ms. Rowling has hinted she may kill off one of the main characters, comes as a bittersweet finale not only for readers but also for the publishing companies, booksellers and licensees that have cashed in on the international phenomenon since it began more than nine years ago with “Harry Potter and the Sorcerer’s Stone.” It is hard to imagine how the publishing industry will ever replace the sensation that spawned midnight parties and all-night lines to get the books the moment they went on sale. When “Harry Potter and the Half-Blood Prince,” the sixth in the series, was published in July 2005, it sold 6.9 million copies in the first 24 hours.

For this final installment, the cover price will rise to $34.99, compared to $29.99 for the previous volume, although many retailers are offering substantial discounts, often as high as 40 percent.

Scholastic, Ms. Rowling’s American publisher, which represents about 37 percent of Harry’s global books in print, is clearly on the hot seat as it prepares for life after the boy magician. “It’s the question that everybody asks about,” said Frederick Searby at J. P. Morgan, an equity analyst who follows Scholastic’s stock. “What happens to Scholastic after Harry Potter?”

On its own, a new Harry Potter title has the power to juice up sales significantly, not just at Scholastic, but throughout the industry. On the London Stock Exchange, the announcement of the new book’s publication date by Bloomsbury, Ms. Rowling’s British publisher, sent its shares up 2.2 percent. In New York trading, the shares of Scholastic rose about 1 percent in the morning but fell back by afternoon. In a year without Harry, his absence becomes an excuse for falling sales.

In the fiscal year ending May 31, 2005, one in which Scholastic did not publish a new hardcover Harry title, for example, sales in its children’s book publishing division dropped 15 percent to $1.15 billion from $1.36 billion. Last year, several bookstore chains, including Barnes & Noble and Borders, mentioned the lack of a Harry Potter hardcover as a reason for declining sales in the second quarter.

Scholastic officials readily admit that there is no one book or series waiting in the wings to succeed the Harry Potter series, which has 120 million copies in print in the U.S. and 325 million worldwide. “If I suggested that I had in the pipeline the one thing that is going to replace what Harry has been to the company, that would be arrogant and ill-informed,” said Lisa Holton, president of Scholastic’s trade and book fairs division. Instead, she said, the company had a number of projects that it believed could generate a sizable chunk of revenue.

Richard Robinson, the company’s chairman and chief executive, is quick to emphasize that despite the outsize attention that Ms. Rowling and her series attracts, it is not the pillar upholding the company. He said that even in a record year like 2005, when sales of “Harry Potter and the Half-Blood Prince” generated about $175 million in revenues, that was about 13 percent of the company’s book sales and only 8 percent of Scholastic’s total revenues, which include income from educational publishing, children’s television programming, DVD’s, computer software and its international division.

He pointed out that pundits had questioned Scholastic’s survival after the decline of other wildly successful series from the publisher, like Goosebumps and The Babysitters Club. Each of those series have more books in print than all of the Harry Potter books combined. Coming projects include a new series by Ann Martin, author of “The Babysitters Club” titles, more books from Cornelia Funke, the best-selling German fantasy writer and a new sort of junior chick-lit series for 9 and 10-year old girls called “Candy Apple.”

When the company announced first quarter results in September, analysts noted that while sales in the book unit were down by half because of the absence of a new Harry Potter title this year, sales of other books were up 19 percent.

Ms. Holton added that the publication of the last Harry book does not signal the death of the series. “I don’t think there is an end to the Harry Potter franchise,” she said, because new generations of readers will continue to discover the books. Currently, she said, “Harry Potter and the Sorcerer’s Stone” sells about 500,000 copies a year.

Scholastic has signed a multi-book contract with Meg Cabot, the author of "The Princess Diaries" and "All-American Girl," Ms. Holton said on Thursday. Ms. Cabot is writing a series for younger girls that will be introduced in spring of 2008.

“Scholastic has dodged the big bullet twice,” said Al Greco, a professor of marketing at Fordham University and an analyst for the Book Industry Study Group, which produces “Book Industry Trends,” an annual study of book sales. “I think the company is essentially sound and will continue to be successful,” he added. “But they’re just not going to have that big cash flow and may have to go out into the marketplace and pay a lot of money to replace” Ms. Rowling.

In the years following the publication of the last Harry Potter title, Mr. Greco predicts that growth in revenues in children’s books will decline from double-digits in Harry years to the low single digits.

Stephen Riggio, chief executive of Barnes & Noble, said that while Harry had provided a strong boost to sales, he was not concerned about the end of the franchise. Like Ms. Holton, he said, “it will be with us for our entire lifetime and beyond.” What’s more, he said, even though sales of a new Harry title were significant in the month they came out, over all, they represented less than 1 per cent of total annual sales.

And it may be that some booksellers never made that much profit from Harry Potter anyway. “If we sell the book at 40 percent off, I don’t think we’re making that much money,” Mr. Riggio said.

Indeed, said Constance Sayre, principal of Market Partners International, a consultant to the publishing industry in New York, “The competing amongst the chain stores and the warehouse clubs for discount probably limited their profits enormously.”

And the end of the Harry Potter series is not the most pressing problem facing publishers of books for children and young adults; competition from other forms of entertainment is the real threat. “When you look now at an 8- or 10-year-old, they are truly online, they are IMing their friends, they are text-messaging, they have an iPod where they are watching and listening to music,” said Susan Miller, president of Mixed Media Group, which develops books, television shows and movies for children. “They have a lot of other ways to spend their time, media wise and, if you like to consume stories you can be watching something on the television. There are a lot of places for them to be entertained.”

Still, there’s always this possibility: Ms. Rowling could just write another series. “At some point she’ll come out of retirement and pull a Michael Jordan,” said Mr. Searby of J. P. Morgan.

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