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Seattle Daily TechFlash for April 09, 2010

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Seattle Daily TechFlash News For April 09, 2010
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Amazon patents security camera system with facial recognition
By Eric Engleman on Friday, April 9, 2010, 1:31pm PDT

Things are looking positively Big Brother-ish for Amazon.com's warehouse workers, if some recent patents from the online retail giant are any indication. Amazon this week was granted a patent for an "activity verification" system that envisions a network of cameras arrayed throughout the company's distribution centers and other facilities. The cameras would capture images of warehouse work flow in an effort to cut down on theft, misplaced items, and damage to inventory. It also includes a face recognition system to make sure that workers aren't anywhere they're not supposed to be.

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New study says 8.4% of jobs in Wash. state depend on Microsoft
By Todd Bishop on Friday, April 9, 2010, 1:28pm PDT

Microsoft's growth and the decline of other industries have pushed the Redmond company's economic impact in its home state to record levels, according to a University of Washington report released today.

The study, funded by Microsoft, says the company was directly (through employment) and indirectly (through spending by Microsoft and its workers) responsible for 8.4 percent of the state's employment as of 2008, or approximately 267,600 jobs. That was up from approximately 6 percent in 2005, 3.5 percent in 2000, and less than 1 percent in 1990, according to the study by UW economics professor Theo Eicher.

Those are some of the many statistics included in the study, all of them adding up to the assertion that the company's presence here has a greater impact on the state than ever before. The release of the study coincides with an ongoing debate in the Washington Legislature over the state budget deficit -- which has raised questions about whether the state is taxing Microsoft enough.

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Point Inside; Watchguard's new hire; Bay Partners; and more
By John Cook on Friday, April 9, 2010, 1:06pm PDT

Bay Partners appears to have hit hard times, with Matt Marshall at VentureBeat reporting that three of the Silicon Valley firm's partners resigned last month. Bay Partners is well known in Seattle since its founding partner, Neal Dempsey, is a big donor to the University of Washington. Bay also is a backer of Seattle area companies such as Yapta and Daptiv.

Headline of the day comes via Silicon Alley Insider: "The 10 sectors VCs are going crazy about right now."

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Chart: Yahoo up, Google down in comScore search numbers
By Todd Bishop on Friday, April 9, 2010, 10:57am PDT

New numbers from comScore Networks show Yahoo posting a slight gain in U.S. market share for the first time in more than a year, according to reports from Search Engine Land and other industry news sources today.

At the same time, the report shows Microsoft Bing continuing to climb, contradicting a report from Experian Hitwise earlier this week. Google declined slightly for the month, according to the comScore data.

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FDA rejects CTI's cancer drug
By John Cook on Friday, April 9, 2010, 10:46am PDT

Cell Therapeutics received an additional setback today when The U.S. Food and Drug Administration formally turned down its application for a new drug to treat non-Hodgkin's lymphoma, an anticipated decision which nonetheless sent shares of the Seattle company down more than four percent. The stock -- now trading at 61 cents -- has lost 46 percent of its value so far this year. Last month, an FDA oncology panel recommended that the company conduct an additional trial to demonstrate the safety and effectiveness of the drug.

The Seattle biotech company said it plans to request a meeting with the FDA on the design of a follow-on study and expanded access to the program. Meanwhile, in a press release issued today, the company offered a critical analysis of the FDA decision from Dr. Stanley M. Marks, Director of Clinical Services and Chief Medical Officer for the University of Pittsburgh Cancer Centers. He noted:

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'Family Guy' incident and other Microsoft ad mysteries explained
By Todd Bishop on Friday, April 9, 2010, 10:32am PDT

One of our most popular posts last month was a Q&A with David Webster, the chief strategy officer in Microsoft's central marketing group, in which he explained what the company was thinking when it aired those head-scratching ads starring Bill Gates and Jerry Seinfeld.

As a follow-up, we've put together these excerpts from the rest of our conversation, starting with another burning question: What was the deal with Microsoft's decision to pull its sponsorship of a "Family Guy" special episode last year? Considering the show, shouldn't the company have anticipated that the content might be a little raunchy?

Continue reading for Webster's answer to those and other questions.

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Unions criticize T-Mobile USA
By John Cook on Friday, April 9, 2010, 9:53am PDT

Bellevue-based T-Mobile USA is taking some heat today from union groups who claim that the fourth largest wireless operator in the U.S. intimidates and harasses workers who try to organize. At a press conference today in Bonn, Germany -- headquarters of T-Mobile USA parent company Deutsche Telekom -- union leaders from ver.di, the Communications Workers of America and UNI Global Union -- said that T-Mobile USA has taken an "anti-union" stance.

T-Mobile -- in a statement issued this morning -- said that the union groups are propagating "fallacious claims."

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Seattle's digital music revival
By Todd Bishop on Friday, April 9, 2010, 6:50am PDT

Seattle-based Rhapsody International, newly spun off from RealNetworks, this week took advantage of better licensing terms from music labels to drop the price of its subscription service, trying to boost its audience. Rhapsody also is capitalizing on the rise of mobile-phone applications to expand its reach.

Microsoft is likewise planning to broaden the potential market for its Zune music service by making it available on upcoming Windows Phone devices.

And Amazon.com has emerged as a challenger to Apple's iTunes business — using strategic discounting and a massive Twitter following to grab a respectable chunk of the market for MP3 music downloads.

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Zillow, other real estate firms hit with patent infringement suit
By John Cook on Friday, April 9, 2010, 12:30am PDT

Zillow.com and several other online real estate companies have been hit with a class-action lawsuit which alleges that they violated patents related to how consumers access real estate information on mobile devices. The suit was brought by Smarter Agent, a Camden, New Jersey-based company which allows people to search real estate listings on mobile devices.

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Sony's PlayStation Move: Very cool, but will it be cool enough?
By Todd Bishop on Thursday, April 8, 2010, 7:51pm PDT

I had a great time this afternoon in Seattle's Capitol Hill neighborhood, trying out Sony's PlayStation Move motion-based control system at a media event. I also shot the video above, showing very preliminary versions of games that use the PlayStation Move, including SOCOM 4 from Sony's Zipper Interactive in Redmond.

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Foodista gobbles up new cash
By John Cook on Thursday, April 8, 2010, 5:09pm PDT

Foodista has gobbled up another $750,000 in startup capital, money that co-founder Barnaby Dorfman said will be used for operating expenses and to fund some undisclosed projects that are in the works. Foodista describes itself as a "cooking encyclopedia everyone can edit." That's why it often gets compared to Wikipedia, but exclusively for chefs and food lovers.

Dorfman said that the latest round was provided by existing investors, which includes his former employer: Amazon.com. Total funding in the Seattle startup now stands at $1.3 million.

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Microsoft guys get girls; other Millionaire Matchmaker musings
By John Cook on Thursday, April 8, 2010, 2:08pm PDT

And then there's her description of Box.net co-founder Dylan Smith, who Patti says looks like he's in his early teen years. "I need to turn this geeky kid into a cool man," she says of the Mercer Island high school grad. The fun stuff with Smith -- whose company just scored $15 million in funding and moved to the Bay Area from Seattle a few years ago -- starts around minute three in the video below.

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